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April 24, 2020 Minutes SSE Finance Committee

Minutes

Sonoma State Enterprises Inc. Finance Committee
Friday, April 24, 2020- Zoom Meeting

MEMBERS PRESENT:

Ms. Amanda Visser, Mr. Neil Markley, Ms. Megan Varnadore, Mr. Arden Childers, Dr. Jeffery Reeder

MEMBERS ABSENT:

None

OTHERS PRESENT:

Ms. Olivia Tighe

  1. Call to Order
    This meeting was called to order at 9:06 a.m.
     
  2. Approval of March 24, 2020 Minutes
    The minutes were approved without any objections.
     
  3. Financial Statement Review
    Ms. Visser reviewed the financial statement as of March 31, 2020, explaining that there is a decline in revenue and investment income. There was little revenue earned after March 17, due to COVID-19 and the campus going virtual. Ms. Visser also explained that there was an unrealized loss in the long term investment fund. She has seen some recovery in April that will hopefully continue into and through June.
     
  4. ACTION ITEM: 2020/2021 Budget
    Ms. Visser went over two budget scenarios. The first budget reflects a 9% decline in enrollment as well as 10% for a melt from Fall semester to Spring semester. She also explained that the percentage for cost of goods sold decreased from 21% to 19% of sales.

    The second budget is based on the Budget Office request to plan for a 9% decline in enrollment and then an additional 25% decline due to COVID-19 impacts. Both scenarios involved pulling from reserves to cover significant losses.

    The committee unanimously decided not to bring the 2020/2021 budget as an action item to the Board meeting May 7, 2020, but both options will be presented to the board along with any new information that we have at that time. The decision was made in an effort to be transparent while we gather more information to build a more complete and accurate budget in this fluid environment.
     
  5. Other Non-Action Items
    It was noted by Ms. Visser and Mr. Markley that SSE applied for a PPP loan through Exchange Bank (SBA loan as part of the CARES Act). We have initial confirmation that SSE has been approved but we haven’t received loan documentation. The loan would be just under $1 million and is meant to cover payroll and rent, if the money is spent in accordance with the SBA guidelines the loan should be forgiven essentially turning it into a grant.

    There was some discussion about the Alternate Care Site (ACS) on campus and if that would provide any income to SSE, SSE has contracted to provide food for the health care workers if the site gets utilized. Currently the site isn’t planned to start receiving patients until early May but that date is very fluid.

This meeting was adjourned at 9:52 a.m.