As a cooperative, our finances are public. Annually, the Co-op releases two pieces of information about its financial health. One is the Balance Sheet, the other is the Profit and Loss statement from the current year. Previous year is typically included in annual reports for context.
Finances for the store are prepared by staff and reviewed monthly by the Board’s Finance and Audit Committee (FAC). Maryland State Cooperative laws dictate that the Board authorize a financial audit once every two years and a financial review annually. Finances are reviewed or audited at the end of each financial year (July 1 through June 30), and these financial documents are released post-audit, typically around September as a part of the Annual Report.
Budget - A budget is prepared annually by the General Manager to account for profit and loss of the store, governed by policy L5 in the Policy Register. The Board votes to accept this budget, which becomes the basis for monthly FAC reports on annual progress.
Profit and Loss Statement - Shows annual revenue and expenses for the store, resulting in net income or loss at the end of each year.
Balance Sheet - Shows the assets of the Co-op on one particular day, typically the end of a financial period. Includes cash, member equity, physical assets along with debts and liabilities.