Approved Pearsall: y Brewer: Miller: * McKeller: um  MINUTES BREVARD ABC BOARD October 24, 2024  JA  The Brevard ABC Board met in regular session on Thursday, October 24, 2024 at 8:30 a.m. in the  Administration Conference Room at City Hall.  Members Present:  Lisa Conner Frank Pearsall Ron Brewer Susan Miller Paula McKeller  Staff Present: Guest:  Jackie Jarvis, Interim General Manager Paxton McAbee, Asst. General Manager  Trish Cheek, CPA  A. Welcome & Call to Order  B. Quorum  Board Member Frank Pearsall welcomed new Board Members Susan Miller and Paula McKeller. He called the meeting to order at 8:30 a.m. and a quorum was noted.  - Approval of Agenda  Motion by Ms. Miller, seconded by Ms. Connor to approve the agenda as presented. The  motion carried unanimously. D. Approval of Minutes  1. Minutes from Regular Session - August 22, 2024  Ms. Conner moved, seconded by Mr. Brewer to approve the minutes of the Regular Session meeting on August 22, 2024, as amended. The motion carried unanimously.  E. New Business  1. Manager's Report/'s Sales Update  Ms. Jarvis reported that the auditor has completed the annual audit and there were some discrepancies in inventory numbers. She introduced Accountant Trish Cheek    who prepares the ABC Store's financial reports and asked her to explain the discrepancy. Ms. Cheek explained that she began doing the books for the Brevard ABC Store in July 2023. She reviewed the services she provides, which include QuickBooks support, monthly bank reconciliations and preparing monthly financials based on the numbers that are in the accounting system. She said when she first ran the reports in July 2023 we had inventory of $1.1M and cost of goods sold was $29,000. Former General Manager Mark Balding took that to the Board and he came backa and said this is not going to work! because our profit margin is off. They discussed the options of adjusting to inventory or to cost of goods sold. Mr. Balding elected to adjust to cost of goods sold and we continued to do that adjustment each month. At the end of the year when the auditor was doing the audit, they do not audit cost of goods sold, they audit inventory and said our inventory should be $600,000. But because of the entries we had been doing each month, our books showed $300,000. She said it is an easy fix on paper by taking it out of cost of goods sold and putting it in inventory, and then the books match inventory and the audit report. She then discussed with Ms. Jarvis, since they are auditing the inventory number, instead of adjusting the books each month to the cost of goods sold, we are going to adjust to Ms. Cheek said we have not done the city and county calculations, which is always done at the end of the year during the audit. When we were adjusting the cost of goods sold to the BOS report, overt the yeari it was $300,000 higher than what it would have been had we been adjusting toi inventory. You will see an audit adjustment for about $300,000 out of cost of goods sold, which is going to decrease our expenses and increase our income. The distribution calculation and the law enforcement calculation is based on profit. Our profit is income minus expenses, so when we reduce our expenses, our profit goes up, thus the distributions and the law Ms.. Jarvis said she currently pays $60,000 to the city and $20,0001 to the county every quarter. Ms. Cheek said we will make that adjustment with the expectation that next year the large balance due is already going to have been paid throughout the year. When the audit adjustment came through, they adjusted for the balance thati is going to be due to the city and the county for the year, which is $152,677 to the city and $10,994 to the County, and $19,163 for law enforcement. In July Jackie started prepaying these amounts toi the citya and countyin preparation for the audit next year, soin July she wrote a check to the county for $20,000 and tot the city for $60,000. My question to you is do you want to pay the full balance from the audit currently and Following discussion, Ms. Miller moved, seconded by Ms. Conner to keep the current year'spayments: as acurrent prepaybyo quarter, and that we paywhateveradpustment  the inventory because we know the inventory is what they audit.  enforcement calculations will go up.  then this be a prepayment of next year?  Minutes - BrevardA ABCE Board- - October 24, 2024  Page 2of4    is due under the audit as a separate and distinct check tol be paid immediately to clear Ms. Cheek informed the Board that she willl have the revised financials for. July, August and September within the week and Ms. Jarvis will send them out to the Board. Ms. Jarvis reported on impacts to sales as a result of the storm. She said sales will be down due to loss of internet in the downtown store for a few days as we could only Ms. Jarvis informed the Board that Auditor Terry Carland will be at the next meeting  that obligation off the books. The motion carried unanimously.  do cash sales and could not do restaurant orders.  to give the audit report. 2. Nominate New Chair  Mr. Pearsall nominated Lisa Conner for serve as Board Chair until July, 2025; Mr. Brewer seconded the nomination, and vote was unanimously in favor.  3. Discuss Bonus Checks for 2024  Ms. Jarvis explained that employees have always received performance bonus checks in! November. She recommended that employees receive 6% oftheir annual pay asa bonus this year. Ms. McKeller recommended that the board consider giving all employees an extra bonus for performance during the storm. Ms. Conner moved, seconded by Ms. Miller to give employees a $300 storm bonus immediately, in addition to a 6% performance bonus to be paid in November. The motion carried  unanimously. F. Next Meeting  1. Discuss Meeting Dates for November and December due to Holidays  The Board decided to cancel the November regular meeting and to holdi its December  regular meeting on December 5th at 8:30 am.  G. Review and Approve Financial Reports from August and September, 2024  Trish Cheek will provide updated financial reports within the week, and they will be  forwarded to the Board for review.  H. Closed Session  At 9:21 a.m. Ms. Conner moved, seconded by Ms. Miller to goi into closed session to  Minutes - Brevard/ ABCE Board- October 24, 2024  Page 3of4    discuss a personnel matter. The motion carried unanimously. City Clerk Denise Hodsdon Board Returned to Regular Session At 9:26 a.m. the Board resumed the meeting in regular session. No official action was taken in closed session and the minutes of the In open session, Ms. Conner moved, seconded by Ms. Miller to give Acting General Manager. Jackie. Jarvis a $300 storm bonus, and a performance bonus ofe 6% of her current  was authorized to remain for the closed session.  closed session are authorized to be sealed.  annual gross salary. The motion carried unanimously.  - Adjourn  There being no further business the meeting adjourned at 9:31AM.  Manager  Conner, Chair  pl  6  Minutes Approved: Duembers 2024  Bunibtan Denise Hodsdoh, City Clerk  Minutes - Brevard ABCE Board- - October 24, 2024  Page 4of4