More importantly, however, the adoption of such a practice should be 

 preceded by a detailed line-by-line evaluation of such papers to 

 determine if the rules should be changed to conform with actual op- 

 erations, or if operations should be changed to comply with the rules-. 

 This should be done by the directors and hired management, not by an 

 attorney or outside consultant. We believe an educational and eye- 

 opening session would be had by all. 



Seventh, we discussed with managers the kind of information they 

 generate internally to enable them to carry out their responsibilities 

 and, in turn, the kind of information they provide to their boards 

 to enable them to carry out their board responsibilities. The 

 responses varied from a "cash activities report," a "trial balance," 

 a "list of receivables," to "monthly balance sheet" and "operating 

 statements" along with schedules of properly aged receivables. 



In one case, the manager provided the board with a daily diary 

 briefly summarizing each day's significant events, patrons contacted 

 and the like. Ideally, boards should not only receive reports that 

 provide basic current information, but also should answer such 

 questions as: 



How are we doing? 



Are we doing better or worse than last year? 

 Better or worse than expected? Why? 

 Where does the responsibility lie? 



If the New Jersey associations are really serious about adopting a 

 policy of strengthening their business organizations they should, 

 as an important first step, adopt some form of budgetary control » 

 Why? Because preparation of operating and financial budgets forces 

 the board to plan. 



Budgets channel and direct the association toward the kind of services 

 growers want. Their preparation provides the realistic basis for a 

 board to clearly see its policymaking responsibilities and hired 

 management its operating and policy implementation duties „ In prac- 

 tically all the associations there are examples of the confusion 

 between the board of directors and hired management about their 

 respective duties and responsibilities „ 



