MINUTES NO. 108
CENTRAL VIRGINIA COMMUNITY COLLEGE
EDUCATIONAL FOUNDATION, INC.
BOARD OF DIRECTORS MEETING
May 14, 2013
The Central Virginia Community College Educational Foundation Board of Directors met at 8:00 AM on Tuesday, May 14, 2013.
FOUNDATION OFFICERS ALSO PRESENT
Winfred Nash, President Mike Bradford, Executive Director
Fred Armstrong, Vice President Catherine Rice
John Capps, Secretary, ex-officio
Peggy Samuels, Foundation Accountant
John Poole, Treasurer, ex-officio
Cat Mobley, Business Manager
Clyde Clark Lorenza Davis Doyle Allen Greg Graham
Ryan McEntire Mitch Reaves
Michael Syrek Patti Jurkus
John Mastroianni Steve McElroy
CALL TO ORDER
The meeting was called to order by the president.
APPROVAL OF MINUTES
On a motion from Doyle Allen and seconded by Steve McElroy, the minutes of the February 12, 2013 meeting were unanimously approved by the Board.
FINANCE COMMITTEE REPORT
Mr. McEntire presented items that had come before the Finance Committee at their meeting on April 25, 2013.
He informed the board that the Foundation has opened a new money market account which will pay .015%, and is opening a new checking account which will pay 0.12%, both still at SunTrust and both significant improvements from the current accounts that were paying 0.01%. He indicated that Mr. Bradford will speak to the other two banks that provide financial support to the Foundation to see what money market rate options they can offer.
Mr. McEntire reviewed the SunTrust investment portfolio statements. The asset allocation shows equity at 65.76% and within policy after adjusting for the Wasatch Fund as discussed in the January 2013 minutes. It was noted that two equity benchmarks were listed: the S&P 500 which our policy requires and the MSCI AC World Index which SunTrust believes is more comparable to how they are investing the Foundation’s funds.
On the fixed income side, Mr. McEntire informed the board that SunTrust uses the Barclays U.S. Aggregate index for performance comparison because the index required by the Foundation’s Investment Policy, the “Barclay’s Bond Index”, does not exist. On a motion by John Mastroianni, seconded by Clyde Clark, the board approved a change in the Investment Policy to correct the index name to Barclays U.S. Aggregate.
The Third Quarter FY13 Operating Budget was presented. Year-to-date expenditures for FY13 are $23,200.65 after third quarter expenditures of $764.88. The remaining budget balance totals $3,149.35.
Mr. McEntire stated that the board needed to consider and vote on the accounting firm to be engaged for the upcoming June 30, 2013 foundation audit. On a motion by Mr. Mastroianni, seconded by Fred Armstrong, it was approved that the accounting firm of Brockman, Drinkard and Pennington be engaged for the Foundation audit.
Mr. McEntire reported that the Finance Committee engaged in a lengthy discussion of how the budgeting and reporting is done for the Foundation’s spending on scholarships and other expenses. He pointed out the differing ways that UPMIFA, GAAP and CVCC use the terms restricted, unrestricted and endowment. Although the word “endowment” is used in the Foundation’s spending policy, this is open to interpretation in various ways given the language differences. At the next Finance Committee and Board meetings he stated that Mr. Bradford will provide a more comprehensive budgeting process that would look at total Foundation spending, which is not how budgeting has been shown in the past.
John Poole presented the corporation’s FY13 Third Quarter Financial Statements.
The cash and cash equivalent balances reported are $620,597. This amount is broken down between $339,102 in cash and $281,495 invested with SunTrust in a Short Term Money Market Account. Dividends and interest for the third quarter were $45.
The investment balance is reported at a tax cost basis of $2,210,826. The market value of the long-term investments at the end of the third quarter was $2,410,965. Dividends and interest for the third quarter were $42,639 and investment fees were $15,872.
The total Foundation revenue from July 1, 2012 through March 31, 2013 was $383,005. Donations made to the College represent $117,339 and $58,003 represents donations to the unrestricted Annual Fund. The total Foundation expenses from July 1, 2012 through March 31, 2013 were $226,018, including $210,146 for Program Services.
On a motion by Mitch Reaves and seconded by John Mastroianni, the board approved the Treasurer’s Report.
SCHOLARSHIP COMMITTEE REPORT
Clyde Clark presented items that the Scholarship Committee discussed at their meeting on April 18, 2013.
Mr. Clark reported that the scholarship committee met to award the Honor’s Scholarships for the upcoming academic year. Six new Honors Scholarships were awarded for a total of $23,310 and eight honors scholars were eligible for a renewal second year totaling $31,080. It was noted that no applications were received from Amherst, William Campbell or Brookville high schools, and the only applications received from Heritage, E.C. Glass and New Vistas high schools were incomplete and/or ineligible. The Honors Scholarship application had been sent to all local and private high schools.
The committee reviewed the competing applicant’s files from each school and then ranked the other applications from each school so that scholarships could be offered to other applicants in the event the first student from that school declined.
RESOURCE DEVELOPMENT COMMITTEE REPORT
In Larry Jackson’s absence, Mr. Bradford presented items that the Resource Development Committee discussed at their meeting on April 24, 2013.
Mr. Bradford informed the board that Dr. Muriel Mickles, Dean of Humanities and Social Sciences, made a presentation at the committee meeting on dual enrollment and early college.
Mr. Bradford presented information on the FY13 YTD Contribution and Grant Revenues which showed the total restricted gifts and grants increasing from $155,764 last year to $289,828 this year, primarily due to larger Tobacco Grant drawdowns. Unrestricted gifts and grants showed a decrease from $113,205 last year to $56,134, with the major difference being the Patricia Davis estate gift of $62,004 received last year.
Mr. Bradford and Dr. Capps have hosted two lunches on campus with company leaders to give them a CVCC overview and an appeal for support. Additional lunches will be planned for September, October and November of this year.
He then reported on recent changes announced by the Tobacco Commission. Most significantly the Commission is going to increase the minimum matching funds requirement for non-scholarship education grants to 50% from 10% of the overall project.
COLLEGE PRESIDENT’S REPORT
Dr. Capps thanked the Foundation Board for its continued support of CVCC. He discussed the news that Liberty University was interested in purchasing CVCC. Dr. Capps states that the College is using a commercial real estate appraiser to value the college property, and that the discussions are very preliminary.
Dr. Capps informed the board that SACSCOC Special Committee visited the College campus for three days and will recommend to the SACSCOC Board that the College be confirmed as “in compliance” with Comprehensive Standard 188.8.131.52—Institutional Effectiveness: Educational Programs at its June meeting. He stated that this endeavor showed a true test of the college community.
On a motion by Mr. Mastroianni and seconded by Clyde Clark, it was approved for the Foundation board to send a letter of support and congratulations to CVCC.
Dr. Capps stated that he thanked the board for the difference that is made. He informed the board that 650 graduates were confirmed at graduation and at rehearsal he told the graduates that he didn’t think he could do what they do – successfully balance school, work and family life. He stated that sometimes it is easy for us to take for granted what our students go through to receive their degree. Sometimes, the opportunities for students just do not exist, but we can help to change that.
There was no old business to report.
There was no new business to report.
There being no further business, the meeting adjourned at 9:07 AM. The next meeting is scheduled for Tuesday, August 13, 2013 in the Johnnie E. Merritt Hall.