<HTML><BODY style="word-wrap: break-word; -khtml-nbsp-mode: space; -khtml-line-break: after-white-space; "><DIV>Hello again, Albacore sailors.</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>First, let me start by thanking all of you who took the time to respond to my first e-mail on this subject. I appreciate the kind words, and the open sharing of opinions.</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>I would like to update you on the progress of these discussions over the past week or so.</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>There has been a 4th suggestion made by several members, one which I believe bears additional scrutiny.</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>In lieu of an audit (or a review) by an external accounting firm, some not-for-profit organizations use a "finance committee" to do such a review (and more).</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>The finance committee would be separate from the executive. Other than the treasurer, no one from the executive will be allowed to sit on the Finance Committee. The treasurer would be an ex-officio member of the finance committee. There would be (at least) 2 members of the finance committee elected from the membership by the members at an AGM.</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>The role of the finance committee would be to examine the books and records of the association to ensure that the financial goals of the association are being maintained - that the investment decisions are in line with maintaining the safety of the reserve funds, and that the executive is spending the association's money wisely.</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>The finance committee would provide a draft report to the executive, and full report to the members at least once per year.</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>The finance committee would also be asked to evaluate if there are opportunities for improvements in the operation of the CAA, and would be requested to include any such opportunities in their annual report.</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>I am 100% in favour of this approach, as I feel it offers the membership at least some measure of security as to the accuracy of the financial statements. In addition, it adds more value than an audit by not just ensuring the financial statements are accurate, but also that the (financial) goals of the CAA are being maintained.</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>So, I will be recommending the following motions at the AGM:</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>1) That the members accept the 2005 Unaudited Financial Statements as presented and reported on at the AGM (this is as it has been for the past few years, except that the statements are not being audited for the 2005 year).</DIV><DIV>2) That the members approve the creation of a Finance Committee, and that the Finance Committee be requested to examine the books and records of the CAA and report back to the members at least once per year.</DIV><DIV>3) That 2 members in good standing of the CAA be elected to the Finance Committee at the AGM.</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>I have had one member already volunteer to be nominated to that committee (thanks Alan!). If anyone else is interested, please let me know and I will ensure that your name(s) are included at the AGM for acceptance by the members.</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>If you are strongly opposed to the above motions, please let me know by e-mail at your earliest convenience. This is not a "speak now or forever hold your peace" request - this matter can only be properly accepted by the members (one way or the other) at the AGM. I ask you to voice your opposition now so that we can all hear your concerns, and so that they can be discussed, and hopefully resolved, prior to the meeting.</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>In all honesty, I'm trying to save myself 12 hours of driving in one day. I will not be able to sail at the Canadians this year due to other commitments on the Saturday and Sunday - and will only drive up for the AGM if there remains significant resistance to this matter. If people are generally accepting of the above approach, I will provide my report in writing for one of the (attending!) executive members to present on my behalf. </DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>Thanks again for your consideration of these important matters.</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>I wish you all happy sailing.</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>Kind regards,</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>Jason</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV> </DIV><DIV><BR class="khtml-block-placeholder"></DIV><BR><DIV><DIV>On 23-Aug-06, at 8:48 PM, Jason Roth wrote:</DIV><BR class="Apple-interchange-newline"><BLOCKQUOTE type="cite"><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">Dear Albacore sailors:</SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;"> </SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">As you are likely aware, KPMG has completed an audit of our financial statements for the past 6 or 7 years. As a result of my past tenure with KPMG, I was able to obtain this audit for a cost of about $500.00 (which rose to $750.00 in the past couple of years).</SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;"> </SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">Over the past year or so, there have been changes within KPMG, and all of my former colleagues have now either left the firm, or have retired. I am no longer able to obtain the audit “as a favour”, and KPMG would like to introduce a price which is more in line with the market rate for an audit of an organization our size. The fees for a “market rate” audit would be somewhere between $3,000 and $5,000.</SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;"> </SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">We have three options, as far as I can tell.</SPAN></FONT><O:P></O:P></SPAN></DIV><P class="MsoNormal" style="text-indent: -24px;margin-left: 0.5in; "><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">1)</SPAN></FONT><SPAN style="font:7.0pt " times="" new="" roman""=""> </SPAN></SPAN><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">Continue with KPMG, paying market rates for an audit.</SPAN></FONT><O:P></O:P></SPAN></P><P class="MsoNormal" style="text-indent: -24px;margin-left: 0.5in; "><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">2)</SPAN></FONT><SPAN style="font:7.0pt " times="" new="" roman""=""> </SPAN></SPAN><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">Present unaudited financial statements and increase the transparency with additional reporting.</SPAN></FONT><O:P></O:P></SPAN></P><P class="MsoNormal" style="text-indent: -24px;margin-left: 0.5in; "><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">3)</SPAN></FONT><SPAN style="font:7.0pt " times="" new="" roman""=""> </SPAN></SPAN><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">Search for an alternative accounting firm to perform the audit on a free or nearly free basis</SPAN></FONT><O:P></O:P></SPAN></P><DIV class="MsoNormal" style="text-indent: 0px;"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;"> </SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">We have discussed this matter as an executive, and believe that this is an issue which the membership should have input on. Since this is a fairly major issue, we decided to share the information with you now, well in advance of the AGM, so that a reasonable discussion can be completed before the need to vote on motions.</SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;"> </SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">Here are the pros/cons of each of the three options, followed by my recommendation.</SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;"> </SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">If we continue with KPMG, we are receiving an audit opinion from one of the world’s leading accounting firms. However, in Canada, an audit is an audit, regardless of which accounting firm completes the work and signs the financial statements. We would be faced with having to increase fees by approximately $20.00 per member in order to cover the cost of this audit work. In my opinion there is really no sense in spending that kind of money, given that our total assets are less than $50,000.</SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;"> </SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><FONT class="Apple-style-span" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">However, c</SPAN></FONT><SPAN class="Apple-style-span" style="font-size: 16px;">ompleting an audit ensured that the financial statements presented to you at the AGM each year were accurate – that the statements reflected the transactions we actually completed. It was still up to the members and the executive to determine if those transactions were appropriate. Basically, the audit ensured that the executive (and especially me, as treasurer) wasn’t spending your money on personal activities and hiding it elsewhere in the financial statements. If we no longer complete an audit, I would recommend that you, through a motion at the AGM, ask the executive to provide interim reporting on all investment transactions and any significant expenditure that is out of the ordinary course of running the association. This would be <B>additional</B></SPAN></FONT></SPAN><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;"> reporting. The treasurer would still be expected to present financial statements at the AGM each year.</SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;"> </SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">The third option would be the best of both worlds – we wouldn’t have to increase fees, and you would have the assurance that an audit provides. However, to pursue this approach would require your assistance to talk to friends, family, neighbours, crew, etc. to find a small accounting firm (or a sole practitioner) who would be willing to provide the CAA with an audit of the financial statements for little or no cost to the association.</SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;"> </SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">I propose the following:</SPAN></FONT><O:P></O:P></SPAN></DIV><P class="MsoNormal" style="text-indent: -24px;margin-left: 0.75in; "><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">a)</SPAN></FONT><SPAN style="font:7.0pt " times="" new="" roman""=""> </SPAN></SPAN><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">That the membership accept the <B>UNAUDITED</B></SPAN></FONT></SPAN><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;"> financial statements for the year ended October 31, 2005; (they haven’t been audited by anyone yet). They will be presented at the AGM at the Canadian Championships in September.</SPAN></FONT></SPAN></P><P class="MsoNormal" style="text-indent: -24px;margin-left: 0.75in; "><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">b)</SPAN></FONT><SPAN style="font:7.0pt " times="" new="" roman""=""> </SPAN></SPAN><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">That the membership agrees to forgo an audit of the 2005 and 2006 financial statements</SPAN></FONT><O:P></O:P></SPAN></P><P class="MsoNormal" style="text-indent: -24px;margin-left: 0.75in; "><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">c)</SPAN></FONT><SPAN style="font:7.0pt " times="" new="" roman""=""> </SPAN></SPAN><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">That the membership requests the executive provide interim reporting <B>at least every 6 months</B></SPAN></FONT></SPAN><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">, and that this reporting must include details of all investment transactions</SPAN></FONT><O:P></O:P></SPAN></P><P class="MsoNormal" style="text-indent: -24px;margin-left: 0.75in; "><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">d)</SPAN></FONT><SPAN style="font:7.0pt " times="" new="" roman""=""> </SPAN></SPAN><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">That the membership insists that the above arrangements are in effect only for the next year, and need to be renewed or changed annually.</SPAN></FONT><O:P></O:P></SPAN></P><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;"> </SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">Unless there is significant disagreement with the above, I intend to introduce motions at the AGM to make this happen.</SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;"> </SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">If, in the meantime, someone knows a Chartered Accountant who is willing to take on the CAA as a client (annual fee for the audit = $500 to $750), please contact me as soon as possible.</SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;"> </SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">I suggest that we make use of the albacore mailing list for comments on this matter (mail to: </SPAN></FONT><A href="mailto:albacore@myfleet.org"><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">albacore@myfleet.org</SPAN></FONT></A><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">). If you wish to mail me directly, please use my CAA account: </SPAN></FONT><A href="mailto:money@albacore.ca"><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">money@albacore.ca</SPAN></FONT></A><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">. </SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;"> </SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;"> </SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">Sincerely yours,</SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;"> </SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">CANADIAN ALBACORE ASSOCIATION</SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;"> </SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;"> </SPAN></FONT><O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">Jason Roth, CA</SPAN></FONT><O:P></O:P></SPAN></DIV><SPAN lang="EN-GB" style=""><FONT class="Apple-style-span" face="Tahoma" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">Treasurer</SPAN></FONT></SPAN> </BLOCKQUOTE></DIV><BR></BODY></HTML>