Meeting of the Board 1:00 PM, February 9, 2013

Adoba Hotel, Dearborn

I. Call to Order The meeting was called to order by President Wostyn at 1:01PM

II. Roll Call LeBlanc

Karl Mark Pall, Brett Irick, Bill Anderson, John Chirco, Steve Friedman, Al Bobrofsky, Brian Malnar, Tom Klunziger, Dany Rothfeld, Steve Garvin, Joe Peruski, Joe LeBlanc, Julianna Wostyn, Ron Sirna. Arriving at 1:09pm: Dr. Andrew Parks. 1:31pm: Steve Marzilli thus completing a full board.

III. Introduction of visitors Wostyn

Ann Bobrofsky, Brian Tideswell, Mike Strub

IV. Invocation LeBlanc lead the board in a prayer.

V. Minutes of Nov. 24, 2012 LeBlanc

Motion to approve minutes as mailed to the board, by Irick, 2nd Pall, Approved on a voice vote.

VI. Additions to Agenda Board

Consider nomination to ANA board of Gary Adkins – under new business item G

VII. Approve agenda as amended Board

Rothfeld moved, Garvin 2nd, Approved

VIII. Director Absences LeBlanc

(Absences – none to report)

IX Appointments (If any) Wostyn

a. Recording Secretary - Mike Strub Klunzinger moved, Pall 2nd, Approved

b. Committee Creation/Appointments Klunzinger moved, Pall 2nd, Approved

c. Ron Sirna as legal counsel Klunzinger moved, Pall 2nd, Approved

X. Membership Comments Wostyn

None heard at this time

XI. Officer Reports

A. President Wostyn

Welcome to the new board. My intention is to work diligently with you. I have a long-range plan for this organization. This board needs to decide where this organization is headed, to have a goal. As a 501c3 organization, our main goal is education, on which we need to work diligently. Our education committee has done a good job, but we need to expand, and to work with all of our membership. Classes need to be reinstated before the conventions. We need to carry on an education program throughout the state. We need to reach out to our out-state clubs. I have created 2-3 new committees – one will be reviewing by-laws and the convention manual to bring them up to 2013 standards – another is the planning committee. We’ve grown stagnant. I am trying to pull people from outside of our board for our committees. Looking at the numbers – though we’ve adjusted – in 2011 we were spending tens of thousands on MichMatist and Exhibits, and very little on YNs. We need to change our direction of thinking. We now have passive education. The Macomb convention opened my eyes – people said they liked our “museum” (which meant exhibits). We need to be expanding our educational program - $500 is not enough to do that. Another new committee – just for brainstorming – is called the “Adventure event committee”. There are things going on in local clubs that WE should be doing – e.g. – Flint had a day seminar (60 or so were in attendance) – we need to learn to be more active like them. We should be a family, get people involved in MSNS. The YOUNG people are nearing 50 in this club. So step out of the cozy box you – we – are in.

Klunzinger comment – some years ago, I was an ANA regional representative – the complaint at nationals was that no one was utilizing these resources. We need local active members to take in what we offer. Wostyn – we are reaching out to individuals, not just clubs.

B. Vice President Malnar

If you want to talk to me, pick up the phone and call. Prefers a call over email.

C. Secretary-Treasurer LeBlanc

1. Review Current Financials. a. Regular Checking Account (Jan 29, 2013) $28280. Approx.

b. Life CD $50K 3.4% Matures, 12/14

CD $25K 1% Matures 11/19/13; Savings Account $4853

$1000 Face Silver (Bought at $28600). LeBlanc notes earlier motion, board has ordered the silver sold if silver spot price goes to $48 before November 2013 convention.

c. Cash Reserve Flagstar Bank Demand Savings .2% $10K

d. Restricted Funds $4764

A motion to approve the financial report was made, 2nd, and approved

2. Membership Report a. RM 782, YN 113, CLUBS 28, HLM 22, LM 379 Totals of 1324

A dues reminder was recently sent to all in arrears – members will be dropped March 31st if not paid by then.

A motion was made by Pall and 2nd by Garvin to approve the membership report, which was approved.

3. Property Report LeBlanc notes no major changes to property.

4. Fall 2012 Budget LeBlanc reports:

We’d projected $16,690 profit, instead made about $10,450 profit Reasons:

- spent $4k more in advertising than in the past.

- spent $1k more in hospitality

- security $1950 more – a Macomb CC police officer was there during public hours.

- table rental was more

- premium of $2000 to be open Wednesday evening.

- hotel and dealer dinner expenses were actually minor

- we received about $600 commission from the hotel on rooms rented by members

Compliments from Klunzinger. Irick felt the profit was understated based on donations for exhibit awards. Another complimented the team on convention success.

5. 2012 Budget LeBlanc

Lost $3900 over course of the year based on this worksheet.

Klunzinger – most of the deficit came from the increase in insurance for liability, and the increased fee for tax preparation.

LeBlanc – review of 2011 finances was $5k, half paid in 2012 (rest in 2013). For liability insurance – we had issues with our agent – the increase is now under control. See previous minutes for details. The agent who had handled our insurance two years ago had license problems. Underwriter didn’t like structure, repriced our insurance. We changed agent and carrier. Budget for 2013 shows more detail.

Sirna – deficit causes misstated. Pointed out many declining income amounts, and that Strub’s MichMatist savings prevented us from much worse deficits.

Wostyn – CPA who did the review will address board at 2PM.

LeBlanc – note that scholarships are liabilities that aren’t recognized until expended by the recipient.

6. 2012 P & L LeBlanc (actually a statement of operations, as we are a non-profit)

The loss shown, $18,562 is because we are on a cash basis of accounting – we don’t declare income until we receive it. In the fall convention, we usually receive advance payments for Spring 2013 bourse fees. Since we didn’t then know our venue, we did not receive these payments. Off the cuff, that amount would have been around $15000. Going forward, LeBlanc will hold such monies and not put them on the books until January of the year for which they apply.

Irick – May we have a line item called prepaid convention fees? LeBlanc – no need.

Sirna – accept the money, but create the line item as Irick mentioned. LeBlanc – okay, if needed.

Chirco – difference in co-host fees from Spring to Fall is because of the size of the show? Yes. We had two co-host clubs? Yes, though we sometimes have 3. Spring we pay $2500 each to two clubs, Fall we pay $3000 each to two clubs. There was discussion of the $8000 that Strub has saved with the new MichMatist printer.

CPA is now present – LeBlanc asked that we take a break – he will speak at 2.

***** 1:55 Recess for 5 minutes *****

***** 2:05 Re-convened *****

CPA Steve Eddy came to address us on his review of our 2011 finances. He explained that there are three levels of service:

1) Audits are the highest level of service, and are not a guarantee.

2) Reviews are the intermediate level of service - that is what we’re doing.

3) A lower level called “Compilation” (taking treasurer’s numbers and regurgitating them) is also available.

At the end of year 2011, our organization had $167,000 net assets. Does he verify claims of assets? No. In an audit, he would send a confirmation letter to the bank. However, he did look at actual bank statements as of December 31, 2011. The value of our investment income had a negative value, due to the drop in the value of silver for our bag of silver coin. We have no fundraising expenses. (This is highly scrutinized when above zero).

Notes: We had no promises of future contributions at the end of the year.

Fair value of investments – Silver bag & other coins valued by 1/6/12 CDN. Not a “trading account”.

Donated services are valued at normal cost of same, but balanced by expense so as to have no net effect on valuation. We have a Form 990 that we are required to file. This differed from our P&L. Part of reason is that our previous accountant valued the silver coins differently. Eddy then left meeting.

7. 2013 Spring Budget LeBlanc

LeBlanc proposed a budget. This was based on the previous year and then adjusted.

Wostyn: We have in the past required pre-approval of all amounts beyond $500. It should be understood that those who have to spend these budgeted amounts are PRE-APPROVED by the actions of this board, when the board approves this budget.

Klunzinger moved, and Pall 2nd, that approval of this Spring budget constitutes pre-approval to expend up to $48,150 for the Spring Convention.

Marzilli asked an amendment that the amounts may vary by up to 10%. Irick suggested that overruns could be balanced against underruns, and only exceeding the total amount should require additional approval.

Pall suggested that our approval should be of every line item in the budget. Overruns could be approved online by the board and not made automatic as Marzilli had suggested.

Wostyn noted that expenses are grouped so that Irick’s idea is already accommodated.

Klunzinger noted that his motion was to approve the overall maximum, not individual line items.

Overall spending budgeted is $48,150.

90 tables for Spring sold already. We are behind because of not having apps for Spring available last November.

There was a call for the vote, which passed ending debate.

Original Motion then Approved.

Pall re-stated that increases in needed moneys should be approved over the phone.

Friedman – wants us not to open the annex because we are running against two major shows.

8. 2013 Year Budget LeBlanc

LeBlanc proposed a 2013 budget. Klunzinger moved, and Irick 2nd, that approval of this 2013 program budget constitutes pre-approval to expend up to $55,235 for the Full Year, contingent on income meeting budgeted expectations.

Al Bobrofsky asked that a previous year’s comparison be shown as an additional column going forward.

Motion Approved.

Klunzinger moved, and Pall 2nd, to amend the previous motion, regarding Spring 2013 Convention Budget, to append the clause “contingent on income meeting budgeted expectations.”

LeBlanc said it is not possible to manage the convention expenses in this manner. Expenses occur before revenue is known.

Irick said LeBlanc can only try to monitor expenses and income as best he can.

Sirna said LeBlanc has to notify the board that resources outside projected revenue may have to be drawn upon, if so, proactively.

Motion Approved.

Parks asked that Wostyn’s multi-year financial analysis be distributed to all new board members.

9. Correspondence LeBlanc

NWDCC thanks for the co-hosting opportunity last Fall, and asks to cohost the next available Fall convention.

Email from a school in Wisconsin thanked us for the resources on our web page.

XII. Committee Reports

A. Past Presidents Parks None

B. Exhibits Frank Passic

Report read by Wostyn on behalf of the absent Passic. We have $38 left from past sponsorship and $300 in hand, thus have $4338 available for spring awards. If we receive no more contributions, we will adjust the prize values downward accordingly. We are therefore considering 1/10 oz. gold for first, proof eagle for second, silver eagle for third. If more contributions are received in time, we will do the same prize level as last Fall. Only two exhibits have been applied for at this early stage.

C. Outreach/Communications Chuck Sharpe

Anderson was not provided info from Sharpe. No report.

D. Auctions Joe Peruski None – but sure to have something at next meeting.

E. Education Karl Mark Pall Avenues to pursue at every education program at every show:

1) Encourage a youth or beginner program. Includes YNs, Boy Scout Merit Badges, History Class students. More aggressive approach to get into the schools to get young people here. Work with history teachers.

2) Future Education Shows. Two parts:

a) On the Wed or Thur before a show, we can put on special programs that would assist dealers, assist want-to-be dealers, assist people who want to get involved with shows, and sponsorship of shows; how to start a local club (to fill the void where clubs no longer exist)

b) Basic education courses, e.g. Numismatics I and Numismatics II. Brett Irick could do a beginning Canadian Numismatics Program. We should consider what kinds of expertise we can find, and get volunteers to present them.

3) We have speakers with unbelievable knowledge who have prepared programs in the past. He will contact them and the board members here and Ron Sirna. Open to suggestions and to get help.

4) Need a class on how to put together a great exhibit.

5) We didn’t do a treasure box in the Fall. Suggests we do it again. Pall will donate two rolls of Indian Head Cents for this. Need someone to mind the box, and to award memberships to kids. Wostyn will ask sponsoring club Marysville, of which she is a member, to pony up a volunteer.

Wostyn asked Pall to write this up and send it to everyone.

Spring Thursday program plans: George Harrison has agreed to do an authenticating class. Larry Briggs would like to be the second part of that. Wostyn: Time is of the essence, we need approval, advertising, a room, and a fee to be set.

Friedman: How about, as he has seen done elsewhere, having a contest for children with questions based on the exhibits. An award of silver dollars to first and second place answerers. He will send this info to Pall. Friedman would donate a silver eagle for this. Wostyn wants this info sent to Ewald and LeBlanc, who run the YN program, as well as to Pall.

Irick wants names of experts who may be speaking at local clubs, to come forward for programs at our conventions. We’d like to put together a list of short topic talks too.

F. Mich-Matist Al Bobrofsky

Like to get about two more issues from new printer, then re-discuss how it is going.

G. Dealer Steve Friedman

Sirna said there was a dealer at the last show who had shared with another dealer for many years. He was told he was like a brand-new dealer. Shared tables are not permitted. But Sirna thinks that since ANA and CSNS do this means we should to. Friedman – our point system is outdated. We need to revise the point system. Dealers who share a table should not each get the points otherwise allocated to a single table. Marzilli said he does a show which has half-tables, where these are sold at more than 50% of a full table. Wostyn directed Marzilli to provide data to Friedman. Klunzinger – you get a point for everything, and you could get a half point for half-compliance.

H. Publicity John Chirco

Again in contact with Dearborn city council – to put up signs – asking for 20 signs instead of the 5 last requested of them. Signs will be bigger. Council says they welcome us and want to see us, so we are not wearing out our welcome with them. Rothfeld asked Chirco to ask for water bill advertising like was done in Macomb. Chirco will do so, and will ask for more police presence also.

I. Adventure/Event John Chirco

This is a new committee. Ripe and ready to move forward. Efforts of Klunzinger and his great deal of experience have been a help. Similar to bus excursion to Monroe a few years ago – which was well-received. Ready to make a proposal: In conjunction with Lansing Coin Club: bus trip to Rosemont, Illinois ANA Convention on August 16. ONLY asking for MSNS advertising in MichMatist and for MSNS to provide up to $100 for refreshments for those on the trip.

Chirco, Anderson Motion: That MSNS provide up to $100 for refreshments for the August 16, 2013 bus trip to the ANA convention. A receipt shall be presented by Lansing Coin Club to LeBlanc, and payment will be made as a reimbursement to the Lansing Coin Club.

Strub noted that this would automatically be promoted in the MichMatist and on the website.

Motion Passed.

Other new committees – have not met yet. So there is no report yet.

By-Laws – revised version has been gone over many times. Goal is to get out 2-3 weeks before the Spring convention.

Convention committee – Wostyn – Macomb convention center will move speed bumps to fewer locations and better chairs would be obtained. This is because we’re talking to all possible venues about where our Fall convention will be held.

Tideswell reports 90 tables applied for, thus far, for our Spring show. Advertising is underway – working with Publicity committee. Make sure to mention “Adoba, formerly Hyatt“. Has talked to co-host clubs.

XIII. Old Business

A. Schlag Memorial Update Al Bobrofsky

April 1 we may re-apply. We will be ready to go and hope to get through in the 6 months after that. B. Financial Review 2011 by CPA (which occured at 2 p.m.) occurred earlier

XIV. New Business

A. ICTA Renewal (2012 $300 Membership) LeBlanc

Does board wish to renew? There is already a line item in our budget. Friedman moved, Garvin 2nd that we renew our ICTA membership for 2013 with payment of $300 dues. Approved.

B. Co-Host Awards (If any) Board

LeBlanc advises no action at this time.

C. Jarvais Life Membership Issue LeBlanc

An elderly gentleman in Florida claims to be a life member. We have lost touch with him, and he with us. There are holes in our records, thus we cannot substantiate this claim either way. LeBlanc asks that we add him (back?) as a life member. Pall moved, Irick 2nd that Mr. Jarvais be reinstantiated as a life member. Discussion. Pall withdrew motion.

Changed to – Pall moved, Irick 2nd that LeBlanc add this man to the membership rolls for the next 3 years.

Some suggested we ask him for more evidence. Much discussion about who has responsibility to prove this matter either way.

A motion for this to be tabled was made by Friedman, 2nd by Klunzinger. Motion carried 10-1 by hand vote.

D. Charge $25 Web Advert. for non MichMatist Irick Member clubs get advertising on our web page.

Irick moved, Pall 2nd that we make commercial shows pay $25 for the privilege, per advertisement, to have an advertisement on our web page’s coin show listing, unless they advertise in the MichMatist. Debate.

Klunzinger, Pall called the question. Passed ending debate.

Motion failed 6 to 6 with two abstentions.

Friedman then suggested a new motion.

Freidman moved, Irick 2nd that we make commercial shows pay $25 for the privilege, per advertisement, to have an advertisement on our web page’s coin show listing, unless they advertise in the MichMatist or are a member of MSNS. Passed 10-2.

E. Software Purchase (~$200) LeBlanc

LeBlanc asks to update accounting software, at cost not to exceed $200. This is in within budget. Currently using a 2004 version.. Sirna suggested that a multi-user license be purchased instead.

Irick moved, Al Bobrofsky 2nd that up to $250 be spent for purchase of a 3 user license for QuickBooks for the use of our Treasurer. Passed unanimously.

F. Dealer Share Table Discussed earlier, given to Dealer committee for review.

G. Nominate Gary Adkins for office of Governor for ANA.

Klunzinger, Al Bobrofsky moved that we nominate Gary Adkins for governor of ANA.

Long time member of MSNS, has been coming to our show since we were in Detroit. LeBlanc said that these nominations are automatic per previous board motion. Motion passed.

H. Sirna – things we can do as a board that will give us a comfort level on our oversight of finance and review:

1) Obtaining Quickbooks multi-user license

2) Send bank statements to the President (Already being done)

3) Come up with a plan / procedure for quarterly reviews.

XV. Board Member Comments

Rothfeld – question – do we have insurance for if a show is cancelled (business interruption insurance)? No.

we voted on program of sending recognition to departing board members – status of? Not completed yet, Pall did not prepare, Parks did not write.

Klunzinger – very quiet at this hotel (The Adoba) – wonders about viability, especially for this fall.

Marzilli – seems that nothing changes on this board. Still a long meeting. Thanks the Macomb Community College people for Fall 12.

Friedman – we proved what we can do as a board by how we turned the venue change into a positive. If we can do that, we can do just about

anything. Let’s consider moving back and forth between these two venues, Adoba and MCC

Parks – LeBlanc always kept me apprised financially as President. I will prepare the certificates to past BOD members.

Pall – Let’s send a letter to every affiliate club asking them to circulate applications for MSNS membership. Some such clubs may be able

to subsidize some of their members’ joining us.

The Macomb show – glowing reports have come to him. Mark Hackel wrote him a nice letter. Al Lorenzo, past president of MCC is Hackel’s deputy. Lorenzo promises, if we return in the fall, to go county-wide on advertising assistance.

Sirna – last show shows us that a concerted effort to advertise and deal with the dealer and collector community can do. This was 3-4 times

the normal, auto-pilot level of effort. Advertising is important – it has been on the light side in the past. We got a lot of bang for our

buck. More advertising would justify a bourse fee increase of $25 more per table.

Wostyn – wants ALL committee reports, and ALL proposals for motions, in writing IN ADVANCE.

Sirna – 15 years of board memberships have taught him: spontaneous motions are the worst mistakes – not well thought out and wind up

costing us.

XVI. General Membership Comments

None are heard.

XVII. Klunzinger, Peruski moved to Adjourn at 5:04pm Passed.