Sengekontacket Community Corporation38th Annual Mernbers Meeting

Saturday - Jufy 11, 2009

LOGISTICSMeeting was called to order at 9:15 am at the Clubhouse and adjourned at 1 1:45 am.

ATTENDANCEBoard of Directors: Betsy Gildroy, Donna Golaski, Gail Howe, John Kronholm and Gary Shriver.Absent: Ute Kuerschner and Kris VroomanOfficers: C.L. Gildroy, Treasurer and Roger Thayer, SecretarySCC Members: Bob & lrma Bachman, Dick Barbieri, Milton Britton, Sandra Cournoyer, McKennaDaly, Bob DiClerico, Bob & Lois Dwartz, Bill& Marion Foster, Les & CarolGoldstein, John & NilaGray, Jim Hart, Alan Hobart, David & Susan Hobart, CarolJackson, Dale Liebach, Tom McGill&Cherisse Lillie, Sarah & John Lolley, John & Caroline Medgyesy, Else & Denis Membreno, SteveNeamtz & Rosemary Walsh, Rhoda Nussbaum, Thom Phiebig, David & Ellen Richardson, EllieRider, Karol Rose, Anne Saar, Bob Schiffman & Laura Malo, Jennifer Smith-Turner, Paul &Louise Swartz, AliceJo Taylor, Jane Thayer, and BillVrooman

AGENDAMinute Approval

Minutes for the July 10, 2008 Annual Members Meeting were read by Donna and unanimouslyapproved by the membership.

QuorumThe meeting began with perhaps the largest number of members in attendance (at least 53) andwell above the required 29 member quorum with proxies and ballots from 81 of the 87 members.

DISCUSSION TOPICSWelcome Members

Donna opened the meeting by welcoming all members and thanking everyone for taking the timeto attend. She asked that any member still holding a ballot please submit it at this time. Donnaalso invited members to collect a copy of the Meeting Agenda, FY'09 Financial Summary and2009 Member Directory documents provided. She then reviewed the agenda noting a change insequence due to the delayed arrival of a presenter.

Financial UpdateC.L. provided a review summary of the SCC Annual Report emailed and mailed to members thelast week in June.. C.L. explained SCC expenditures have held nearly constant for the past three years

although the allocation and distribution has been different. He provided a briefcomparison of the year's expenditures with those of previous years.o C.L. responded to various member questions regarding various parts of the report duringhis fifteen minute presentation. (The report is attached as an exhibit to these minutes.). C.L. placed the financial summary in the context of the SCC community and members'property, which are assessed at $72M by the Town. Resulting realestate taxes of$ 430,000 are about 5o/o of totaltown realestate tax receipts. As a community, we

S e n g eko nta c ket Co m m u n ity Co rpo rati o nRR#l Box 475Y

Edgartown, MA 02539

Sengekontacket Community Corporation38th Annual Members Meeting

Saturday - July 11, 2009

contribute approximately $7M 'GDP' to the local economy by way of town taxes, propertymaintenance, living expenses, etc.. Lois Dwartz complemented C.L. and the Board for a job well done. Members expressedappreciation for the work behind the creation of the Annual Report and level of detail.

Open ItemsDonna continued the meeting by providing members with updates on on-going projects andasking members if they had additional questions.. Donna asked for volunteers to sign up for painting the Clubhouse interior or speak with

Gail Howe and for any volunteers interested in the vacancy on the ArchitecturalCommittee with John Wyman's passing to speak with Gary Shriver.o Donna responded to why the evergreens were cut around the Clubhouse and TennisCourts stating that it was done as part of the overall maintenance and enhancement tothe area. The evergreens were over 30 years old and had significant rot and dead limbs.She also mentioned how the overgrown shrubs decreased safety and security around theClubhouse. (Someone was arrested this winter hiding behind the shrubs in front of theClubhouse doing drugs.)o Member discussion pursued about the overall appearance of the community with AnneSaar wanting a more natural appearance and hoping we are not making it look suburban.Rho Nussbaum commented during her real estate transaction in SCC last year that herReal Estate Broker comment brokers were staying away from SCC because it hadbecome overgrown and not maintained over the past 10 years. She further commentedthat these same Brokers now have a renewed interest as they are encouraged by thenew, more maintained appearance throughout the community.. In response to future plans, Donna said the pruning of road shoulders throughout thecommunity is a safety priority. Work will begin over the next few weeks to prune all roadsat least 3 feet on both sides. In addition, community greenbelts will be cleared whereneeded, especially all walking paths of which many have not been done for years.. Bill Foster made a motion which passed by the membership to eliminate lawnmower andweed whacker noise before 9 AM. Members are asked to communicate this change toany landscapers and to abide by it accordingly.. April Hamel reminded members to pump/clean their septic systems every five years,more if used year-round or by more people.o Dick Barbieri asked that we check on the cost of adding recycling to the services offeredby SCC. Donna responded that the cost is unknown at this time and it can be a topic forthe next Board to pursue. Free recycling is available at the town dump with an annualsticker.o Jane Thayer proposed a motion to limit the dollars any Board could spend withoutmember approval. After much discussion about the need for Board transparency,communication and SCC's undefined capital expenditure policy the motion was neverseconded.o Bill Vrooman challenged the allocation of capital monies being spent on the street signs.Donna reiterated that the signs are being absorbed by operating expense keeping theintegrity of the capital account whole at $17,400 for the year.o Les Goldstein suggested the implementation of a Blog to reduce the volume of emailtraffic that occurred this spring. Email should be used for SCC Board specific materialand not general member "blogging". Members agreed and Donna promised to work withthe Communication Chairs of the next Board. She asked and Les agreed to participate inthis discussion and any website re-design.

Sengekonfa cket Comm unity CorporationRR#l Box475Y

Edgartown, MA 02539

Sengekontacket Comm u nity Gorporation38tn Annual Members Meeting

Saturday * July 11, 2009

New Business - Pond Aeration ProiectBefore introducing John Lolley, Donna updated members of the years in discussion topic of apond aeration system. She said the Board collectively decided to allot John time to present at hisrequest to the entire community to decide once and for all the interesUfeasibility of this project.Donna turned the discussion over to John for the next 45 minutes.o John introduced Bill Wilcox, lsland water expert, who reviewed his assessment of

Wiggy's Pond's condition. Highlights included the buildup of algae in the hot summerweeks, which shades the sun, reduces oxygen and promotes weed growth in the water.Other perceived issues are septic systems, geese population and artificial fertilizer. All

are controllable, though the geese population and pollution are difficult.. Small Turtle pond is believed shallow enough and in a healthy state.. lt is currently believed that aeration is the cheapest, fastest treatment for Wiggy's Pond;dredging and chemical treatment is significantly more expensive as calculated by LesGoldstein and/or less effective; the condition of the pond, though not yet as bad as someon the lsland, may get worse.o Keith Gazelle, a representative of the aeration vendor presented a two page proposal:two - half horsepower electric motor driven air compressors (about the size of a room airconditioner) located adjacent to the Clubhouse would supply air through rubber tubes tofour pod bubblers located near the centerline length of the pond creating micro-bubblescausing water convection to reduce temperature and oxygen stratification. No electricitywould enter the water. Cost estimates for equipment and installation is g8K;recommended to run 24 hrslday except for winter weeks; annual electricity cost areunknown and can only be estimated; solar electric power technology currently is notsufficient.o Case studies of similar ponds so treated are available; both presenters believed it wouldhelp reduce algae in our pond, but NO GUARANTEE. They feel it is possible thataeration alone would solve the problem; however a combined approach is likely needed.. David Hobart and other SCC members suggested the geese problem might be reducedby treating their eggs or using dogs (controlled) around the pond. That raised theproblem of dog waste, which all dog owners need to clean up after your dog. MiltonBritton also mentioned his concern with the amount of dog waste left behind by ownersthroughout our community.o Donna called for a motion to form a committee of Non-Board member to review theproposed aeration system, contact the abutters, study the possible causes of algae andmake a recommendation to the next Board. The motion was seconded and approved bythe membership.

Election ResultsSecretary Roger Thayer and Treasurer CL Gildroy validated all proxies and ballots submittedinside the Clubhouse prior to the beginning of the meeting. When completed Roger and C. L.withdrew to allow the tellers to conduct the count in private.o To maintain control, ballots were placed in sealed envelopes with a control count

determined by Roger and CL and delivered to the tellers.. Else Membreno observed and John Medgesy acted as Head Teller.. John Medgesy confirmed the control counts and handed the envelopes over to TellersBob Dwartz and Scott Fudenberg for counting.

After a nearly 2.5 hour of counting and tallying Head Teller John Medgsey announced theelection results:

Sengelronfa cket Com m u n ity CorporationRR#1 Box t{75Y

Edgartown, MA 02539

Sengekontacket Corn m u n ity Corporation38th Annual Members M6eting

Saturday - July 11,2009

Ballot Question 1 - Set the number of SGC Board of Directors to be elected for thefollowing year to seven (7)

Passed (74 out of 75 votes - 99%)

Ballot Question 2 - Newly Elected Directors: (alphabetically)Betsy Gildroy,Donna GolaskiGailHoweUte KuerschnerLaura MaloThom PhiebigGary Shriver

Ballot Question 3 - Newly Elected Treasurer:C.L. Gildroy

Newly Elected Secretary:Susan Hobaft

Ballot Question 4 A - To provide that no house, lot or condominium unit shall have morethan one voting seat on the SGC Board of Directors:

Passed (49 out of 52 votes or g4o/o). However 52 votes do not

T;:::!:;::#';"2!;T;il1!,';*:#:mbership(67votes)Ballot Question 4 B - To provide that the minimum age to serve on the SGC Board of

Directors is 18 years of age at the time of election or assignment:Passed (51 out of 52 votes or g8%). However 52 votes do notmeet the voting requirement of % the membership (67 votes).Therefore, the measure rs NOIpassed.

MEETING CTOSURE

Moment of SilenceDonna recognized Lois Dwartz who called for a moment of silence in memory of John Wyman.John, a long time, active member of our community passed away on June 3, 2009. John tookpride in traditionally thanking the Board for its efforts over the past year and making the Motion forAdjournment at the end of each Annual Meeting. In his honor, Loii Dwartz calledlor the meetingto adjourn. After the moment of silence the motion was applauded with unanimous membersupport.

AdiournmentDonna called the 38th Annual Members Meeting to a close. She congratulated the new Directorsand Officers and asked that they convene for a brief meeting in the Clubhouse. Members offeredcongratulations and applause to the Board and Officers for a iob well done.

S e n g eko nta c ket Co m m u n ity Co rpo ratio nRR#1 Box475Y

Edgartown, MA 02539

Sengekontacket Community Corporation

Results of Financial Operations

For Fiseal Year EndingJune 30, 2009

C. L GildroyTreasurer

tl:03 AM

06129t09Aecrual Basis

$engekontacket Comm unity CorporationProfit & Loss

July 2008 through June 2009

Jul'llE - Jun {Xl

Ordinary Income/ExpenselnEorne

Annual Dues Revenuelntsr€st Income - CDSeruices

Member ReimbueementTotal Services

Total Income

ExpenseBad DebtFacilitias

ClubhouseDock E:eense

Toal Facilitieslnsurance Expense

General LiabiliQr InsuranceProfessidlal Liability

Total Insurcnc€ ExperEeLandscapig and Groundskeeplng

GreenbeltLawn CarePrject Maintenence

Tolal Landscaping and GroundskeepqgMiscellianeous

Interest ExpeneeMiscellaneous ExpenseSmall Tools and Equipment

Total Miscellaneous

Offi:e ExpensesComputer and lntem€t ExpensesOffice SuppliesPostage ard DeliveryPrintiry and Reprodnc'tionTelephone Expeme

Total Office ExpensesPrcfessional FeesReconciliation DkcrepanciesRoad tainhnanceSmw Rsmoval

SandingSnow

Total Snow RemovalTaxes

Taxes - IncomeTaxes - ProFrty

Tota! TaregTrash & Rubbish

Garhage contractsTrash Disposal FeesTrash Hanling

Total Traeh & Rubbish

73,100.0083.58

-75.00

-75.00

73,r 08.58

999.66

't ,994.431,849.50

3,843.93

5,534.88_ 1,e75 _09

7,509.88

2,993.282,800.00

14,51!620,31)4.34

55.fl)893.7815.9

1,024.70

171.97359.27276.33

75.r 049.41

932.08

95.000.00

3,045.00

1,275.iO!,79:oo

4,S75.00

131 .693IS.88

14,326.57

2,E48.524,287.17

_j,s65.0014,100.6S

Page 1

11:03 Atrl

06f4,0{Amnnl Basis

$engekontacket Communrty CorporationProfit & Lose

July 2008 firorgh June 20ll0

Jrd'll8 -Jun00Uti$tieg

ElectrlcttyW#rCharyer

Tdtal t tilitre3

Tofirl Expense

llet Odinary InwreOlher lnconelErpqts€

OfterhcomeFingnce Charge krcomehrasthrcomp

Total Otherhcome

Net Olfter hcorpf{et lnoome

389.95358.00

747.*5

71.906.80

I,201-7E

t,t90.0737.09

1,n7.16

1,t27.16

Page 2

l1:05 Aill

06,:egfl,sAccrual Basie

$engekontacket Community CorporationBalance $heetAs of June 30, 2009

Jun 30,09ASSETS

CurEntA3sEtsCheckinglSav-ngs

EtlB . SengekontacketENB - Corporeie CheckingENB .l$trlKT 80tSS5t

Totel EHB - Sengekontacket

Toial Checkiqg/$avingsAccounb Receivable

Accounts ReceivableTotal Accounts ReceivaHeOlher Currcd Ass€G

Accrued lilterest-GD1Capital Fundco.10/08r2(m s.z1%CO -S/02r20ltC 0.8S/6

Total O{her Cuneht A$sets

Total Current AssetsFixed Assets

Tennas CourtsTotel Fired ArseisOther Ass,ets

0ther Opening AssetsTotal O[ter AsseG

TOTALASSETSUABILITIES & EOUITY

LiabilitiesCur|ent Liatilities

Accounts PayableAccounts Payabb

Total Accotlrrts Payabla

Total Gurrent Liabilities

ToEl LiabimiesEqufy

Openmg Balanc-e EquityRetained EarnirpsNel lncorne

Total Equity

TOTAL IIABIM|ES & EAUITY

63,232.39r.984,30

65,216.69

65,216.69

46,964.05-+6,964.05

,0.44400.00

3,9E6.971!1t11117,6S5.69

35,948.33

3,3,q14 75

33,014.75

2,232.97

2,232.97

7r,19€.0F

8.81

8_81

9'!18.81

38,1 83.3230,574.48

_,,2,428.947118747't,196.05

Page 1

1l:06 Altll

06/tsros

$engekontacket Commun ity CorporationStatement of Cash Flows

July 20t18 through June 2fl19

OPERATING ACT|VITIESillet lncomeAdiuetnenB to reconcile nlet lrcometo net cash provided by operations:

Accour$s ReceivahleAccrued Interc+t4DlCapital FundcD - 100812009 3.21%cD - 9}0lru009 0.8506cll s/26r2009 2.47%Accourfro Payable

Net ca$h provlded by Operating ActivitiesINVESTING ACTn/|NES

Tennis CourtgQter Opening Assets

Itlet cash prcvkled by lnvesting AcniviticgFINAi{Clt'lc ACTIVITIES

Opening Balance EguityRetain€d Earnings

Net cash provil€d by Financilg Ac{ivatie;

N€t cash increase for period

Cash at beginning of period

Cash at end of period

.r{'0.4.- !1n !0_

2,428.94

it8,524.E4'213.70-200.00

-33.43-14,109,1'l

4,233.668.81

40,646.00

-33,014,75_ Ji9-33,009.95

11,418.22-13:l!6.1q

1,31 1.76

8,947.80

55,26S.89

65,21S.69

Page I

11:08 AM

06/23r09Accrual Basis

Ordinary lncome/Expenselncome

Annual Oues Revenuelnbr€st Incorns - CDSeruices

Member ReimbumementTotal Services

Total Income

ExpenseEad DebtFacilities

GlubhouseDock Expense

Total Facilitieslnsurance Erpense

$engeltontacket Community CorporationProfit & Loss Budget v$. Actual

July 2008 through June 2009

Jul'08 - Jsn 09 Budget $ Over Budget % of Budget

73,100.00€3.58

-75.00

-75.00

73.950.00 98.97o

73,1 08 58

999 66

1,934"431,849.50

3,843.93

5,534.8Er,975.00

73,950.@

2,300,001:9!919

3,300.00

7.700.00

-84't.42

-305.57E49.50

98.9o/o

86.7%185.0%

543.93

-2.1€5.1?

'| 16.5%

t1.9%General Liahility InsurancePrcfessional Liability

Totsl f n$urincc ExpenseLandscaping and Groundskecping

GreenbeftLawn CareProiect Mainbnance

Total Landscaping and GroundskeepingMascellaneoug

lnierest ExpenseMiscellsneous ExpenseSmall Tools and Equipmenr

Totrl MiscellEn€oug

Oftice ExpensegComputer and lntemet ExpensesOtfice SuppliesPosbge and DeliveryPrintang and ReproductionTelephone Expense

Total Office Exp€flsesProfussional FecsReconci liatien DiscrrpanciesRoad filaintenanceSnow Removal

SandingSnow$now Removal - Oflrer

Total Snow RemovalTaxes

Taxes * lnconrcTaxes - Property

Tolal TaresTrash & Rubbish

Garbage contractsTrash Oisposel FeesTrash Hauling

Total Trash & Rubbigh

7,509.88

2,993.282,800.00

14,51 L0620,304.34

55.00893,78

73.9?

7,700.00

9,000.003,500.00

| 0,500.00

23,000.00

878.00

-190.12

€,006.72-700.00

4,011.06

97.$e/o

33.3%80.0olo

138.2%

883%

101.8%

-2.695.66

15.78

1.024.70

171 .97359.27276.33

75 1049.41

878.00

s00.00210.00200.00

146.70

-540.7366.33

-124.S0

116.7r/o

39.9%131.5%

37.60lo

932.98

s5.000.00

3,045.00

1,275.003,700.00

0.00

1 ,310.0046E.59

-377 -52

-373.50

-5,000.00

-25.00

-568.31-988.'15

-1 ,556_46

8S8.521 ,487.17s65.00

71.2n/q

?o3%

0.00/o

99.5%

18.8%93.5%

9O.2o/"

146.1%153.1%

91.7Vo

5.000.00

4,S75.00

131 .69141.T:8q

11,328.57

2,848.524,287.176,965,00

5,000.00

700.00

- - !5Je!:9315,EEs.03

1,950.002,800.00

_ -_.7,630.0012,380.00 113.9%14,100.69 t,720.69

Page 1

11:0S AM

06/2910s

Aocrual Basb

UtilitiesElec'tricityWaier Gharges

Toral lJtilithe

Total Expenae

Net Ordinary IncomeOter IncomelExp€nse

Other lncqneFinance Gharge krcornelntercst lncome

Total 0*rer lnconreOther Expense

Contingency ReserveTotal Otlrer Expense

filet Other Incorne

Het lncome

$engekontacket Comm u nity CorporationProfit & Loss Budget vs. Actual

July ?008 through June 2009

Jul '08 - Jun 09 Budg6t I Over Brdget 7o of Budget

389.95358.00

5S0.00358.00

-200.050.00

66.104100.0%

78.94/o747.93

71 ,gffi.80

1201.74

1 ,190.0737.0S

'I,?27-16

- --oroo0.00

1227.16

2,428.51

948.00 -200.05

70,89s 53

3,080.47

3,000.00

3,000.00

-3,000.00

8C-17

1,037.27 10t.5%

-1,878.69

-3,000.00

:1_49004,2?7.16

39.0%

0.0%

0.0%

4g.s%

2.3tt8.Cl 3,018.4%

Page g

Profit & Loss Prev Year ComparisonJuly 2008 through June 2009

Jul '08 - Jun 09

11;59 AM

06I29t0SAccrual Basis

Ordinary Incorne/Expenselncome

Annual Dues Revenuelnteresl Incorn€ - GDServices

Sengekontacket Commu nity Go rporation

Jul '07 - Jun 0E $ Ghange

-11 ,?52-5883-58

-75.00

% Change

-13.3n/or00.0%

-100.0%Member ReimbursemantTotal Services

Total lncomeErp€nse

Bad DebtF6cilities

GlubhouseDock Expense

Total FacilitieE

Insurance ExpenseGeneral Liability InsuranceProfessional Liabil ity

Total Insurance ExpenseLandscaping and Groundskeeping

GrEenb€ltLawn GareProiect Maint€nance

Total Landscaping and GrourdskeepangMiscellaneous

Interest ExpenseMiscellanequs ExpenseSmall Tools and Equip,rnent

Total Miscellaneous

Office ExpensesComputer and Intemet ExpensesOfiice EupplbsPo*tage and DeliveryPrinting and ReproductionTelephone Erpense

Total Ofiice ExpensesPrbf€ssional Fe€sReconciliation Discrepanc iesRoad MaintenanceSnow Removal

SandingSnow

Total Snow RemovalTaxes

Taxes - lncomeTaxes - Prap€rty

Total TaxesTrash & Rubbish

Garbage contrastgTrash Disposal FeesTrash Hauling

Total Trash & Rubbish

73,100.0043.58

-75.00,75.00

84,352.580.00

0.00

0.00 -100.0%- 15:oo

-11,244.00

ges.66

73,106.58

999.66

1,994.431,849.50

3,843.93

5,534.881.975.00

7,509.84

?,993.282,800.00

't4,51 1 .06

20,304.34

s5"00893.78

75.52

1,024.70

171 .97359.27zl o.JJ

75.1049,41

84,352.58

0.00

498.00500.00

998.00

7,67?j20.00

1,0t4,.t4,

E,70E.7E2,250.003.902-50

1,496.43't,349.50

2,845.93

-2,137.241,975,00

-162.24

-5,715.50550,00

10,608.56

-'t3.3%

100.0%

300_5%269.9%

285.?%

-27.9b/o100.0%

-2.14/,

€5.6%24.44/o

271.8e/"

36.6%

100.00/o0.8%

100.00/o

15.5%

100.0%42.4o/o88.2o/o90.2%

100.0%

14,861 .28

0.00887,10

0.00

887.10

0.00623.26146.85

39.480.00

5,443.06

55,006.6E

75.52't37.60

171.97-263.99129.48t3.bl49.41

932.08

95.000.00

3,045.00

1,275.003,70i qo

4,975.00

't31 .6914, tS6.88

809.59

468.500.000.00

0.002,800.00

?,E00.00

2,412"0613,247.41

122.49

-373.500.00

3,045.00

1:75.00900.00

2,175.00

-?,310.37949.47

15.1o/o

-79.7o/o0.0%

100.0%

t00.0%32.1o/"

77.7o/o

-94.60/o7.2o/o

14,328.57

?,846.524,287 _176,965.00

14,100.69

15,689.47

0"0011,745.54E,617.50

?o,363.O4

-1,360.90

2,848.52-7,458.37-1r652.q9

4,262.35

100.0o/os3.5%-19.?o/o

-30.80/"

Page 1

11:5t AM

08r29tmAccrual Bss'ts

t tilitiegElectricityWater Gharges

Total Utilities

Total Expense

Het Ordinary IncomeClther Incorn€/Exp€nse

Other lncomeFinance Chargc Incomelnter*t hcome

Tntal Olher Income

Net Other Ineome

Nel Income

Sengekontacket Comm unity CorporationProfit & Loss Prev Year Gomparison

July 2008 through June Zfil9

Jul TB - Jun 09 Jul '07 - Jun O8 $ Change % Change

389.95358.00

410.21358.00

-29-26o:s

-20.26

-4.9%0.0Yo

747.9$

_ _ 71,90€.80

I,201.78

1,190.0737.09

65,317.3r

768.21

6,589"49 10.1%

15,O35.27

0.00158.67

-r7,833-49

1,190.07-121 -58

-93.7t/o

100.00/6-76.60/o

1,227 .16 158.67

158.67

1.068,49

1,n7.16

673.470

673.4%JI|9814e

-16,765.002,428-94 19,193.94 47.4Va

Page 2

11:4{ AM

05u29/00Gaeh Basis

Sengekontacket Commu nity CorporationExpenses by Vendor Summary

July 2008 through June 2009

Allied Warte SeryicesAquamarine Dock BuildersBctsy GildroyBizsano ll\faste Disposal lncC. L. GildroyGommonwealth of llassachus€dsDavid RichardsonDonna GolasliEdganourn District CourtFroaty Hollow Orcfr*lsGail Alexander-HoweGordon SeryicesHagerty TrroHaftCompany, Inc.Intemal Revenue ServiceKris VroomanLocust Strect Sigm CoMar{ra's Vineyard lneurance Agency, Inc.NSTAROak Blufis Water DistrictRoger ThalerSarah LolleySourati Ellgincering G roupTo*m of Oak BlufrsUnited States TreasuryVineyard G€dar Wod(sVineyard O€corator€Wendy MarinerVlll$te - LyncfiWilliamVloomsn

TOTAL

Jul '0E - Jun 09,|,546.021,650.00

t53.631,332.50

648./1415.00

t48.91199,5080.00

?50.0023.30

31,070.752,650.00

324.66114.69159.9888.75

7,509.88430.55358.00175.45200.00600.00

14.251 .8817.00

2,149.921,756.44

620.992,665.00

1or r5171,292.t5:

Page I

1.2.3.4,5.

Sengeko ntacket C o mmunity CorporationNotes Accompanlng Financial Results

Fiscal Year 2009

General:

The Corporation's fiscal year ends on June 30, 2009,The Corporation (SCC) presents its results using the accrual basis ofaccounEing.Results for previous years were accounted for on the cash basis.Complete records for years prior to FY 2008 are missing.Prior to FY 2009 no attemp[ was made to maintain a e omplete set of books as req uired bythe By-Laws of the Corporation. fArticle lll, Section 3.4 Books and Recerds]All statements are prepared frorn internal documenfation. The Board of Directors has votedto require an independentreview ofthe financial reporlIndividual notes for each slatement follow.

Profit & Loss:

SCC is organieed as a non-profit corporation in the Commonwealth of Massachusetts. fusuch, SCC has limited tax liabilities under Commonwealth and Federal statutes.SCC's principal revenue source is annual assessments to the rnembers. In FY 2009, theassessment was $ 850 for each voting member. In addition, a fourth year of a five yearcapital assessment program of$200 was assessed.No provision for FY 2009 income taxes has been made. FY 2008 taxes of$13L payable bySeptember 30, 2009 are reflected in this statement and not matched with the earlier fiscalyear.A bad debt provision $ 1,000 related to lostrevenue from a ioreclosed property is reflectedin the statement.

Balance Sheet:

1. SCC maintains a general checking accounL a money market account and various certificatesof deposit at Edgartown National Bank. The balances are fully insured by the FDIC.

2. The negative balance of $ 46954 in Accounts Receivable reflects member payments for FY2010 made prior to f uly 1, 2009,

3, Opening Balance Equity of $ 38,1.84 and Retained Earnings of $30,574 roughiy reflect thecash balances on fune 30, 2008. Retained Earnings, however, is overstated by unpaidaccounts payable not reflected in the prior cash basis system,

Statement of Cash Flows:

The indirect method reconciles net income, operating activities, investing activities, andfinancing activifies to ending cash balances.Certificates of deposit activity is reflecled in Financing Activities and Cash Provided byOperations. This anomaly results from the difficutty of establishing an ending FY 2008Balance Sheet since none existed.Actual checking cash balances on June 30, 2008 were $ 14,313 and CD balances wereS 3L,277, for a total of $ 44,590. The previous treasurer collected FY 2009 funds anddeposited them in the first ten days of the new fiscal year. This accounts for the $ 10,679difference in the cash shown at the beginning of rhe period of $ 56,269.

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Profit & Loss Budgetvs. Achral:

1. The Corporation prepared a formal budget for FY 2009. Some expenditure categories werenot obvious from FY 2008 data and therefore nor budgeted.

2. A reserve account of$ 3,000 balanced out the FY ?009 receipts with budgeted expenditures.3, Capital it€ms are not budgeted in the operating accounl

Profit & Loss Previous Year Comparison:

1, The check register for FY 2008 was analyzed, copies of bills were reviewed, and the elevenaccounts maintained in the cash basis system were reallocated, where possible, into the newchart ofaccounts.

2. fY 2009 receipts do not include capital assessments.3. Revenues for FY 2008 include capital assessment receipts, some FY 2007 receipts, and some

FY ?OAg receipts. FY 2009 prepayments were properly allocated to FY 2009.+. lf the capital assessment receipts for FY 2008 of $ 17,400 are removed. comparable net

income for FY 2008 would be $ L,794 [$ 19,194 - $ 17,400) compared to FY 2009 of $ 2,429.

Expense by Vendor Summary:

1. This statement is the only statement presented on the cash basis. Members expressed aninterest in reviewing more detailed expenditure categories.