- Two items of note for today’s minutes:
- Operating performance for the month of May 2023 was acceptable – especially given the dynamics at play
- The audit was completed in May 2023
- Overall, total revenue was down in the month of May with e-tab sales of $93K, which was the second lowest total of FRYS’ fiscal year ($90K in November 2022 = lowest)
- However, luck was on FRYS side with a robust gross profit margin at 20.11% (average = 15.51%), delivering $19K in gross profits to the organization
- Paper tab sales were also softer at $52K for the second lowest monthly total of the 2022 – 2023 campaign ($37K in November 2022 = lowest) but like e-tabs, the gross profit margin was favorable at 19.71% (average = 17.02%) for gross profits of $10K
- Similarly, bingo sales were also down at $10K (lowest total in 4 months) but the payouts were in FRYS’ favor with a gross profit margin of 20.08% for $2K in gross profit income
- To summarize, even though revenue was the second lowest monthly total, luck/probability played out for FYRS’ with the strongest gross profit margin averages across pull-tabs at 19.91% (monthly average = 16.25%)
- Heightened gross profit margins were enough to offset income taxes of $12K for a monthly net income of $2K
- Looking forward, May’s soft sales & favorable margins put FRYS in good position for June as income taxes for the monthly decline to $11K; however, the income statement for June will also realize the $10K fee for the charitable giving audit
- As discussed over the last couple months, FRYS hired Schlenner, Wenner & Company to conduct the inaugural charitable gambling audit, which is required for organizations that have charitable gambling sales greater than $750K (FRYS = $2.1 million)
- The audit was the first-time external eyes have taken a look into FRYS’ charitable gambling practices and operations that were built from the ground up when FRYS embarked on charitable gambling in October 2021 à thus, there was a little anxiousness about what the feedback from the audit might be given the lack of prior experience.
- Having said that, I am extremely proud and honored to report that the FRYS charitable gambling team is performing at an exceptional level!
- Findings from the audit were minor and FRYS can easily make the changes so that those findings are resolved
- For example, Amy Amundson is the Treasurer of charitable gambling, which is a title FRYS crafted for her and not one required by the Gambling Control Board (only gambling manager & CEO are required titles), so there was slight confusion around check signing duties of the Treasurer, which we classified as Amy but really referred to Dave Beranek who is the Treasurer of FRYS à thus, a simple change to Amy’s title will resolve all confusion on that front
The following expenses were approved for the month of July - CG MadeEasy = $250
- Inventory = $3,500
- Charitable Gambling Team Comp = $2,800
- Bingo Team Comp = $2,800
- MPeters = $10,000
- City of Faribault = $1,000
- Boxers = $7,000
- Misc. = $2,500
- Total Expenses = $29,850
- On a motion by David Connelly & second by Grant Wilson, FRYS membership approved the expenses for July 2023
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