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FINANCE COMMITTEEMEETINGNotes of January 10,2008

Attendees:. .- .- . . .. - , , - --- , ., , . , . . . . . . . . . . . . . - . - - - - . . .. - . . .. -. . - . - . .. . . .

Louise P. Hoblitzell - ChairIsaac M arksCarolyn PeoplesPeter J, BassoBeverley Swaim-S aleyRonald L. FreelandAlison WilliamsAllen GarrnanJoyce DiepoldJay AydGeoff Kol bergChris ThompsonDeborah DonohueGary BetzingMarcus BrownDan McMullenDavid ChapinDennis SimpsonPeter Kessenich - PFMJamie Traudt -Davenport & Co., Inc.Paul Shelton -McICennon Shelton & Henn LLPEd Hanis - Counsel to the State Highway Administration (by phone)

Member Hoblitzell called the meeting to order at 9:30 am. No revisions weremade to the notes of Decem ber 13,2007,Police Incentive Program

Chief Brown brought before the comm ittee a police incentive program. A total ofseven incentive programs have been proposed. There will be no fiscal impact to the FY2008 operating budget but there will be an increase inFY 009 and will be included inthe FY 2009 budget request when presented in May 2008.ACTION: Member Peoples recommended approval of the program to the funAuthority, with Member Basso seconding.

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Consultan t TechnicalServicesJay Ayd presented this task order (which is part of CATS contract) for

recomm endation for approval to m aintain, enhance and upgrade Solom on (financialsoftware system). Proposals were evaluated by an evaluation committee whichrecomm ends award to Nortel Government Solutions. Funds are available in the operating- .d g . . . . -- . . . . . . - . . . - . , . . - . . - - . . . . -- , . , , - - . . .- - . . ..- . .- . . '.. . . ..

ACTION: Member Marlcs recommended approval of the task order to thefullAuthority, with Member Basso seconding.ICC Cash Flow -Update

David Chapin presented the ICC Cash flow and stated that no changes have beenmade to the overall cost, and that the contracts are on track. EdHarris described theappeal of the Sierra Club/Environmental Defense action to the U.S. Court of A ppeals forthe 4thCircuit. No scheduling order has been issued .Series2008RevenueBonds

David Chapin, Jamie Traud t and Peter Kessenich discussed the upcoming bondsale to be held in March 2008. The committee reviewed a preliminary term shee t andschedule. The amount of the bond sale will not exceed $765 million. Presented forrecomm endation for approval was Resolution 08-02 reclassifying the IC C as a TollFacilities Project under the Trust Agreement.ACTION: Members Marks recommended approval of Resolution 08-02 to the fullAuthority, with Member Basso seconding.

Presented next for recommendation for approval was Resolution 08-01 ratifyingthe declaration of the o fficial intent of the Authority to reimburse expenditure s to beincurred with respect to certain project from certain funds with the proceeds of tax-exempt debt obligations.ACTION; Member M arks recommend ed approval of Resolution 08-01 to the fullAuthority, with Member Basso seconding.

Resolution 08-03 was presented for recomm endation for approval for the purposeof financing the acquisition, construction and equipping of certain transportationfacilities, and to begin to prepare the transactional documents.ACTION: Member Marks recomm ended approval of Resolution 08-03 to thofullAuthority, with Member Basso seconding.

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Status of FY 2008 Budget by DivisionsChris Thompson presented the operating budget by divisions for the month

ending December 2007. MemberBasso questioned as to why there seems to be a patternof under-spending and would like a report show ing the positive and negative variances ofactual vs. budget. Chris also explained that pension co sts may overrun in some areasbecause civilian pension was budgeted at 6.85% of salaries. We are being charged thenew actuarial estimated rate of 8.86% set by the Department of Budget and Management.FOLLOW-UP ITEM: Reporting of variances in actual vs. budget to be submittedregularly.

The meeting adjourned at 11:15 a.m. The next scheduled meeting is February 14,2008 at 9;30 a.m.

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Deb Shaipless explained that revenue for the month of Docember declined$307,000 or -1.4% compared toDecen~ber,007 and $7.3 million 01- -5% behind fiscalyear to date. Tom Gugel stated that monthly transactions are u p 150,000 or 1.6% andd m ,20 1,Q00 iscal year to date.

Memhe~~oblitzell commenclcdDeb, Tom nnd s nff for providing revcnu-esan dtransactions to get he^. for cpmpwison porposes.Cash.Balances ahd Spending

Deb Shaspless stated tltat capital spending fo r tha month ofDecember was $89.3mill ion cornpaved toprojacted $95.2 n~illion.Due to the GARVEE boric1 proceeds, therewad a $336.8 milllon increase in the visb hdauces. Based 011 apital expenditt~~eprojectians, bond proceeds consistir1.gof thc Series2008 GARVEEs and Series 2008Revenue Bonds should support expenditures through July 2009.Follorv up: Committee recommended that cash balances ahould compare to currentnmnth actual spcnding to projectad spending and year to date actual spending vsprojectecl,

Deb Sllmpless presented estimated rate ccovanniltcharts f o ~Y 009 based onactual revenues through December. Sinca toll revenuesme down nlraost596, fo rcalculatiitionpurposes i t isexpected to hold througliout the fiscal year. ForFY 2010through 2016, lnte covenant estimates presented weTe based on the Pro Fo~nln 008-69woclel which incorporates the latest projectio~lsnchding c n h m c e d ~ e v e ~ ~ u e slll-ough hecost recovery prngranl, Ii~corporatinghe c o s ~ecovcly program causes n cushion togrow significantly in FY 2010 and 2011 even with flat to modest increases in trafficvolume,o w um~~i~tecrecomn~endec~tl~-nttheRnteCwenanti~~fu~atiancoi~tii~uetobe reported monthly incorporating the cost recovery program, Pro Forms 2008-69.Invw tment Report

Allen G n ~ m e n xp'lained that due to theGARWE bond issue, investmentholdings increased $376 million in December and as reported earlier spending from thecapi-tlalaccounts totaled $89.3 mill io~~. .heQeneral and Operating Rcserve accounts areinvested primarily in government agencies; .As of November30,200S all inveshnentsand portfolios were inl'inewith investment policy I imitntioirs.F u l l p : Committee recommended cuthuing7Fornlnt ~nd old any unusual orsignificant items.

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FinanciaIReport-It was recommended thntrepostinginfoimtion bemorecurrent if possible, i.e. wvcnuc, clisbur~emmts nd outstanding deb-t hould beonly one month in meus since this information is includedhl otllersections.

Budget vs . Actual - It was idecoinmcndedhat this information be presentedq~~artcrl,At. this time discussion followed or1 the CostRecovery Initiative. Themeetingadjourned at 10:30 followed by tl~e udit Committee. The nextmmnceCommitteemeeting is scheduled fo r Thursday, February 1.2,2009at 9 om.

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FINANCE COMMITTEE MEETINGNotes of February 14,2008

Attendees:Louise P. Hoblitzell, ChairCarolyn PeoplesJack BassoIsaacMarksBeverley Swaim-Staley (via hone)Ronald L, reelandCurtis EspositoJoyce D iepoldJohn Magness- Canton RailroadMarcus BrownDanielle Bradshaw-LeePaul Shelton -McKennon Shelton & Henn U PDavid GreeneAllen GarmanGeoff IcolbergAlisonWilliamsChris ThompsonSam TriandosJoeMason -Davenport& Co., Inc.David ChapinPeter Kessenich - PFMKaren Belinko - Real Property ConsultantsGloria DolanDeborah DonohueCindy Taylor

Member Hoblitzell called the meeting to order at 9:30am.No evisions weremade to the notes of January 10,2008.

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ACTION: The general consensus of the Finance Committee W Q Srecomm end approval of the proposal to the full Authority.Canton Railroad Assets Appraisal

David Greene and John Magness presented an update of the valuation of theCanton Railroad assets. An appraisal was conducted by Real Property Consultants andwas composed of three separate binders. The report totals the asset value at over $20million, based on an over-the-fence appraisal. John stated that he is working on astrategic plan and will review again w ith the full Authority.SelectionPanel for Independent Auditor

Ron Preeland asked for members to sit on an evaluation panel to select anindependent auditor to begin in FY 2008. The timeline for the RFP is fast-paced and acontract start date is July 1,2008. Member Marla agreed to serve on the panel.Series 2008Toll Revenue Bonds

David Chapin presented draft documents pertaining to the sale of bonds. Theissuance amo unt has been adjusted from $712million to $685 million. David asked theCom mittee for approval on the method of sale - retail/competitive or competitive. Thedocuments presented were based on a competitive sale. Alison Williams stated that thesale will take place on March 12 and that a conference call with the Members to approvethe best bidder will be needed on that day. March 25will be the pre-closing with theclosing on March 26. D vid stated at once bonds are issued we will definitely have toraise the to"" &&ACTION: The general codhnsus of the Finance Committee was granted torecommend a competitive sale to the f i l l Authority.

Deborah Donohue presented Resolution 08-05 for approval. This resolutionwould approve the draft documents and bond structure and would delegate authority tothe Executive Secretary to finalize and distribute the documents.ACTION: Members Peoples recommended approval of Resolution 08-05 to the fullA uthority, w with Member Marks seconding.

Ron Freeland asked Peter Kessen ich to give the Committee an update on thefinancial market, Peter stated in a few words, "it's a mess." Discussion followed andMem ber Hoblitzell asked Peter to send e-mail updates to the Members fo r the next coupleof weeks on the status of the market,

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ICC CashFlow -UpdateDavid Chapin gave an overview of the Monthly Budget & Cash Flow Report forthe month ending December 31,2007. Nothing was out of the ordinary to report; no

changes have been made and everything is on track. There was no update to report on thelegal issues.- . FinancialReport . . , . . . . . - . . . . - . - - . .

Alison Williams stated that the January 2008 operating budget spending guidelineis 50% and that the actual percentage of the budget spent is 44%. The ETL capitalpercentage spent is 79%; the other CTP spending is 50% and the ICC spending is 74%.Issues with seasonality and contracts (procurement) are causes for cash flow delays.Alison reported that bond insurers FGIC 's and Ambac's ratings were recentlydowngraded. FGIC insured the Series 1992 toll revenue bonds, and Arnbac insured the

WMATA parking garage bonds and the BW I parking garage bonds. The appropriatedisclosures have been made ,Status of FY 2008Budget bv Divisions

Chris Thompson presented the operating budget by divisions for the monthending January 31,2008. Currently, 46 % of the operating budget has been spent,excluding equipment and 44% has been spent, including equipment. Chris noted thoughthat only 7months of the payroll has been posted. Variances averaging plus or minu s 5%were reported to the Committee. Ron stated that he is holding quarterly budget reviewmeetings and that it looks as though the Authority will be able to hold to the cost-contained budget.I~nvestmentGroupReport

Member Hoblitzell explained to the Committee that an investment group has beenmeeting to review issues regarding the Authority's m anagement process, led by AllenGarman , Issues discussed included: communication with the State Treasurer's Office,policy limits and target allocations, money market fund re-investment, custodialagreements, dealer trade allocation, total return performance, outsourcing inves tmentmanagem ent, and investment policy revisions. Allen proposed that the Trust Agreementbe amended so that the maturity limitation for the Operating Account be changed fromone year to extend for five years. This change could bemade at this point because of thesize of the upcoming bond sale.ACTION: Member Basso recommended approval of the change to the TrustAgreement to thefull Authority, with Mernher Peoples seconding,

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The meeting adjourned at 11 10am. Staff remained for a work session to discussthe toll revenue study.

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FINANCE COMMITTEE MEETINGNotes of March 17,2008

Attendees:. . . . - - . . - - , , -. , . - . - . . - . ,.- . - . . . . -. . . , . . . . . . . . . . . . . - . . - . . .

Louise P. Hoblitzell,ChairJack BassoIsaac MarksMike Lewin (via phone)Beverley Swaim-S aley (via phone)Ronald L.FreelandAllen GarmanAlison W illiamsCurt EspositoGeoff KolbergSam TriandosRandy BrownJoyce D iepoldRichard JarmilloDennis SimpsonSuhair AlkatibDavid ChapinChris ThompsonMelinda Peters - SH ABetty Conners -SIX4Jamie Traudt -Daven port & Co.Deborah DonohueCindy Taylor

Member H oblitzell called the meeting to order at 9:30 a.m. in the FinanceDivision, 2400Broening Highway. Mem ber Basso made minor corrections to the notesof February 14,2008.ICC Cash Flow Report

Melinda Peters reviewed the most recent cash flow chart and noted the reductionin estimated expenditures during Fiscal Year 2008. She indicated that this was due to alower rate of expenditu res by the contractor for C ontract A as well as lower expenditureson right-of-way costs. The overall project cost estimates are the same.

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Review of Bond SaleJamie Traudt explained that the bond sale was very successful, especially

considering the volatility of the bond market, and that the issue was uninsured. Five bidswere received, Merrill Lynch & Co. as the winning bidder with an interest cost under 5%.Jamie also stated that it would cost approxim ately$1.1million for the premium for the. - - - . . surety~o. . fUnn~-the-debt .erViCeTeSeTV~fUnd.;~-.- . .. . - . . - . . . .- , . - . . - - - - . .. . - -.. - . - .

ACTION: Member Basso recommended the acquisition of a suretyfor the debtservice reserve fund in the amount of $1.1million to the full Authority, with MemberMarks seconding.Review of Rating:Agencies9Reports

Jamie Traudt stated that the rating agency reports for the Authority's toll revenuebonds were favorable. Major concerns were liquidity, opera ting cost growth outpacingrevenue growth, and no transfer of funds to MDOT.TrafficVolumeReport

Randy Brown presented a summary of raw traffic data with graphs and statisticsby axles for EY 2007 and FY 2008. According to S tantec, traffic is on track. Thenational traffic trend is now flat,POLL0W-UP TEM,. Member Lewin requested a study of previous traficvolumes during recessionary periods.FOLLOW-UP ITEM: Member Hoblitzell requested that Stantec attend theFinance Cornminee either in April or May.FOLLOW-UP ITEM: Member Hob1 tzell requested that the traffic volume reportbe provided on a monthly basis.Toll Rate Adjustment

Ron Freeland stated that Curt Espo sito has done work on the toll rate adjustmentstudy and will present to the Com mittee in April.Long Range Capital Needs Study (''LRCNS")

Dennis Simpson and Richard Jm m il lo presented the LRCNS as information.This program has been reduced significantly. Discussion followed as to the inflationfactor as to why the Authority uses the standard 3% and not current construction costs. ItFinance Committee NotesMarch 17,2008Page 2

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should be noted that a toll rate adjustment is needed for projects in the curren t capitalprogram.FOLLOW-UP TEM: Member Hoblitzcll requested a report on the cashJlowsforall facilities (unfruuled or FY 2008 -FY 2013 is $1.3 billion).HQ FacilitiesManagementContractNo. 10431234. . - ... .. . - . - . ... - - - - .. - , - .. . . - - . -

Ron Freeland presented this contract for recommended approval to exercise thefirst of two, one-year renewal options to Manekin LLC for the management of the PointBreeze facility in a reduced amount of $4,079,746. The scope of work w ould eliminateth e tenant services provisions.ACTION: Member Basso recommended approval to thefulZAuthority withMember Marks seconding.FOLLOW-UP ITEM: Memb er Hoblitzell requested u acilities map showingwhere staf is located.Financial Report

Alison W illiams stated that the budget spending guideline for February was 58%.Exp enditure s for the month were $105,792,963. Capital disbursements through themonth were $341.7 million.FY 008 Budget by Divisions

Chris Thompson explained that as of February 2gth,54%of the budget has beenspent ex cluding equipment with a target of 58%. Note that 51% was spent includingequipment.Investment Report

Allen Garman presented the investment summary for the month of February. Themarket is continuing to deteriorate. Allen explained that he believes th e time has come todecide w hether the Authority should proceed with theRFP or an investment manager, orleave things as they are. Allen stated that communication lines have opened with SHA,Capital Planning, Treasurer's Office, etc. PFM has provided con sultation regardinginvestment decisions. Discussion followed and it was decided to go ahead and put theRFP out for investment management services. Beverley Swaim-Staley concurred withthe approach.Z~OLLOW- PITEM: Review of the Investment Policy to be on the agenda forApril.

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Themeeting adjourned at 11:50a.m. The next scheduled meeting is April 10,2008 at 9:30 am,

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FINANCE COMMITTEEMEETINGNotes ofApril 10,2008

Louise P. Hoblitzell, ChairJack BassoIsaac MarksMikeLewinBeverley Swaim-StaleyRonald L.FreelandJamie Traudt -Davenport & Co. (via phone)Peter Kessenich -PFM (via phone)Allen GarrnanAlison WilliamsJoyce DiepoldChris ThompsonGeoff KolbergMajor William O'Rei llyCurt EspositoDavid ChapinSimela TriandosJackie SeneschalLouis Luglio - StantecDeborah Donohu eCindy Taylor

Member Hoblitzell called the meeting to order at 9:35 a.m,with a moment ofsilence f o r aintenance Worker at JFK who was killed while performinghis duties yesterday, April 9,2008. Mr. Freeland gave an update to the comm ittee on thesurviving family and what will be done to help the f a m i l y .Beverley Swaim -Staley gave an overview of the items passed during thelegisla tive session affecting the Authority. The positive outcome was the transfer of

moneys from theGeneral Fund in FY 2009, payment of the balance of the General Fundmoneys in three years for the Intercounty Connector, and the increase in th e debt limit toincrease.

No corrections were made to the note: of March 17,2008.

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need to consider all options in responding to decreases in traffic levels and revenues,including cutting back pn the operating and capital budgets, increasing tolls, andreviewing ratings policies.FOLLOW-UP TEM: Committee requested to track trafficmonth to month.FinancialAuditor Evaluation

Joyce Diepold requested approval from the Committee to recommend the awardof the Financial Audit Services contract to Clifton Gunderson LLP. Joyce, Greg Brown,Chris Egner, Chris Thompson and Member Marks served on the evaluation panel.A C T . : Member Basso recommended approval to thefullAuthority, withMember Marks seconding.Review of Investment Policy

Allen Garman presented the investm ent policy and recommended minor revisions.Discussion follow ed regarding some of the changes and Member Marlts suggested thatthe Authority use the S tate Treasurer's policy as a "guide." Allen will review therecommended changes with Deb Donohue and Fred Rappe.FOLLOW U P Member Hoblitzell requested that the policy be brought backbefore the Committee in May,with recommended changes.Investment R eport

Allen stated that the economy may already be in recession. As of March 31,2008, the market value of Authority Trust Funds and ICC -related accounts was $1.18billion, a $494 million increase due to the $573 million toll revenu e bond issuance inMarch.

The meeting adjourned at 11:45 a.m., in order fo r the Com mittee members tomeet without staff. The next meeting is scheduled for Thursday, M ay 8,2008 at 9:30a.m. in Su ite 160at the 2310Point Breeze complex.

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FINANCE COMMITTEE MEETINGNotes of May 8,2008

Attendees:Louise P. Hoblitzell, ChairIsaac MarksMike LewinRonald L. FreelandAllen GarmanJay EllisJay AydChris Thomp sonSam TriandosDoug H utchesonDavid ChapinJamie Traudt, Davenport & Co,Peter Kessenich (via phone), Public Pinancia1ManagementMajor O'ReillyDavid GreeneGreg BrownSharon PiesingerJoyce DiepoldKurt Krauss, PBAlison WilliamsSuhair AlkhatibPaul Shelton, McKennon Shelton &Henn, U PDeborah DonohueCindy Taylor

Member Hoblitzell called the meeting to order at 9:30 am. A minor clarificationwas made to the notes of April 10,2008.NextGenCutover

Jay Ayd and JayEllis explained that in April, the last of the major systemsconversions (major database that supports E-Z Pass@)was completed. Mr. Ellis gave abrief overview of the major elements. Primarily, the system that was replaced was 10

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years old and now gives the Authority access to the ACS database and will also supportOpen Road Tolling. Discussion followed on the open road tolling as to where/when itwill be implemented. Mem ber Hoblitzell requested that the committee be kept apprisedof the situation,FOLLOW UP TEM.. Committee requested ull presentation on Open RoadTolling in June and also to the full Authori* to include details and schedules.. . . . .. . . .Major ProjectCapital Cost Estimate Update (Executive Summarv)

Ron F reeland explained that the Authority has three m ajor construction projectsunderway, i.e., Section 100of the Exp ress Toll ~ a n e s ' ~ ,atem Bridge redecking andChesapeake Bay Bridge deck replacement fo r a total of $174 million. For the past threemonths, Gayle Seward and Kurt Krauss have been taking a look at what the Authority'sfinancial status is on these projects. Most likely, the projects will be over budget. Ronstated that the Authority has gone through an extensive process of setting up a sys temthat is being used to monitor projects, which is basically like the system K urt set up forthe ICC. Staff is currently looking for ways to o ffset these increasesby either deleting,deferring or slowing down som e projects. The Capital Committee was fully briefed onthese issues.FOLLOW UP TEM: Comm itfee requestedfull presentation for June meeting.Potential Impact of Recession on Revenues

Dav id Chapin summ arized that this agenda items and the following one are aprogression of analysis that takes into consideration the costs on the 3 major constructionprojects and incorporates it into the draft FY 2009-FY 2014Capital Program. Davidexplained that Stantec did an analys is on the impact of a recession on revenues thatshows a very modest dec line in projected revenues over the next 6 years, with an annualcompounded rate of growth of 1.2. A worse case scenario analysis was com pleted on a0.5%growth rate which show s $53million less in revenues. These worse caseassumptions were the basis for the following agenda items.

David Chapin handed out a summ ary of analysis wherein there would be nosystem-wide toll increase until FT 012. The summary is based on additional revenu e of$10 million in Fr'2009, $20million in FY 010 and $30million in FY 011,based onrevenue enhancements that would not amount to rate increases. Discussion followed onwhich year it would be appropriate to hav e a system-wide toll increase.POLL0W UP TEM: Committee requested a presentation on the draft FY 2009 -2014 CTP and fiaancial forecast.

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FOLLOW UP TEM: Committee requested a presentation on, andrecommendations concerning, revenue enhancements in June.FOLLOW UP TEM: Committee requested an Update d Report in June assuminga September I toll increase using a 0.5%growth rate.

Deb Donohue advised that following the last eoup le of meetings regard ing aninvestment manager that she did research. The Maryland State Retirement Agency doeshave external managers to invest their money wherein it is specifically authorized bystatute. According to the Authority's T rust Agreement and a Resolution passed in 1985,theDirector and Deputy Director of Finance direct the investments of money held by thedepository. Paul Shelton also advised that the Authority could not give its money to theState Treasurer's Office to manage o r to a third party. A third party could assist inproviding some direction. Allen Garman explained that he does work with PFM, BarbaraFava. Paul advised that he amended the draft RFP document to reflect slightly differentservices such as to adv ise not to execute the trades.FOLLOW UP ITEM: Member Hoblitzell requested that RFP be forwarded to herfor review.

At 11:15a.m., Member H oblitzell left the meeting andMember Marks assumedthe Chair.Ron Freeland explained to the Com mittee that the Chief Financial Officerposition vacancy will be readvertised.

FY 2009Final Operating BudgetThis item was deferred until the June 12" meeting but Chris Thompson gave afew highlights. The FY 2009 operating budget has an increase of $8 million or 3.9%over the amended budg et, the smallest percentage increase in years. Also, budget reviewmeetings are being held quarterly with Divis ion Directors.

Traffic& RevenueUpdateRon stated that a report came in late yesterday afternoon and gave a briefsummary. Basically traffic has declined in the two-axle vehicles especially at the JFKwhich could be related to custom ers adjusting their driving habits because of the price offuel,

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Draft FY 009 - FY 2014 CTP UpdateSam Triandos explained that the draftFY 2009-2014 CTP will be broughtbefore the Capita1 Com mittee in June and gave a summ ary of how the program is

developed. The Draft FY 2009 -PY 20 14 CTPwill be presented at the June 1 2 ~inanceCom mittee meeting. Basically there is a $101,864,000 increase.- FOLLOW UP PTEM: . Committee -requested10bring- tzmback,k&une with adeJnite number.

Investment Considerations/Investment ReportAllen Garman stated that, because of the timing of the monthly investmentreporting , this report will now be one month in arrears to more accurately reflectinvestment earnings. Total holdings dropped by about $24 million which was due toCapital spending in the amount of $34million offset by investment and operating

incomes. Overall, money is going out and we're not losing much .FOLLOW UP TEM: Allen will regularly report the spread data on CommercialPaper versus Agencies and TreasuriesInvestment Policy Review

Allen explained that he met with Deb D onohue and discussed the InvestmentPolicy with PFM. Some language will be added and the reference to the Annotated Codeof Maryland will remain.FOLLOW UP TEM: Committee requested that Investment Policy be broughtback in Junefor approval.OtherBusiness

FinancialReport-- lison Williams explained that, because of the timing of themonthly finan cial reporting closeout, the financial report will be one month behind inorder to give the Committee accurate numbers.Statusof FY 2008 Budget bv Divisions - Chris Thompson stated that the FY

2008 budget is in good shape, an d that quarterly budget meetings are scheduled for theend of the month. With the aid of the monitoring and tracking enhancements, it appearsthat expenses should come in under the cost containment budget.

ICCCashFlow Report -David C hapin explained that the chart shows nosubstantial chang e as of the end of March.

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The meeting adjourned at 12:lOp.m. The next Finance Committee Meeting isscheduled for Thursday, June 12at 9:30 a.m.

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