A QCS Board of Directors meeting was held by telephone conference call on August 20, 2001.

Greg Marrs, Chairman, called the meeting to order at 12:00 noon EDT. The directors participating included:

Ken Crandall and Dennis Funk were unable to participate in the call. Michael Rector, President of QCS and Paul Miller, Secretary and Treasurer of QCS also participated in the call.

Michael Rector reviewed the status of 2001 audits in progress, as outlined in a report sent to directors on August 20th.

Michael Rector reported that the Central Valley Dairy Laboratory has agreed to accept the remedy proposed by the QCS Directors. The Directors agreed that staff should notify California DHIA in writing that the proposed resolution will become final unless CDHIA objects in writing before a deadline to be established by QCS.

The expense budget for 2002 was reviewed and approved as presented at the July 18 meeting.

Following a discussion of the fee structure for auditing services, a consensus emerged that the proposed income budget for field services was too complicated and caused unacceptable increases for some customers. There was consensus that the fees should be based upon the real cost of performing the audit and fair shares of the overhead and margin.

Michael Rector volunteered to build a spreadsheet for field service auditing fees incorporating a four-tiered fee based on size of the field service organization and a base fee plus a charge per machine line for laboratories.

Discussion was held concerning strategy for developing the proposal for bidding the CDCB audit contract renewal. It was agreed that the proposal should be fair to all concerned and should include total costs and fee structure.

Another conference call was scheduled for 12:00 noon Eastern time September 10, 2001 for the purpose of finalizing the fee structure and preparing for the CDCB contract renewal bid.

The meeting was adjourned at 1:15 PM.

Respectfully Submitted,
Paul Miller
Secretary

Back To Top