MINUTES NO. 109
CENTRAL VIRGINIA COMMUNITY COLLEGE
EDUCATIONAL FOUNDATION, INC.
BOARD OF DIRECTORS MEETING
August 15, 2013
The Central Virginia Community College Educational Foundation Board of Directors met at 8:00 AM on Thursday, August 15, 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, CVCC Business Manager
Clyde Clark Lorenza Davis Ryan McEntire Mitch Reaves
Michael Syrek Bill Blevins
John Doyle Larry Jackson
Karen Kinnier Zoe Myers
CALL TO ORDER
The meeting was called to order by the president.
APPROVAL OF MINUTES
On a motion from Ryan McEntire and seconded by John Doyle, the minutes of the May 14, 2013 meeting were unanimously approved by the Board.
John Poole presented the corporation’s FY13 Fourth Quarter Financial Statements.
The cash and cash equivalent balances reported are $635,693. This amount is broken down between $354,134 in cash and $281,559 invested with SunTrust in a Short Term Money Market Account. Dividends and interest for the fourth quarter were $172.
The investment balance is reported at a tax cost basis of $2,211,372. The market value of the long-term investments at the end of the fourth quarter was $2,416,556. Dividends and interest for the fourth quarter were $48,771 and investment fees were $21,459.
The total Foundation revenue from July 1, 2012 through June 30, 2013 was $550,017. Donations made to the College represent $212,477. The total Foundation expenses from July 1, 2012 through June 30, 2013 were $294,903, including $267,320 for Program Services.
On a motion by John Doyle and seconded by Fred Armstrong, the board approved the Treasurer’s Report.
FINANCE COMMITTEE REPORT
Mr. McEntire presented items that had come before the Finance Committee at their meeting on July 23, 2013.
He informed the board of the SunTrust investment portfolio reports. The asset allocation shows equity holdings at 67.86% and within policy. The performance of the equity and fixed income components was reviewed over various timeframes. Mr. McEntire reported that several committee members noted that the equity portfolio is underperforming versus the S&P 500; and would underperform more once the management fee of 0.92% is subtracted from our portfolio performance. The committee decided to invite Kathy Graves and Oscarlyn Elder from SunTrust to the next finance committee meeting.
The Fourth Quarter FY13 Operating Budget was presented. Year-to-date expenditures for FY13 are $24,140.71; less than the budgeted amount of $26,350.00. Mr. Bradford informed the committee that a new, more all-encompassing format for the budget would be used for FY14.
Mr. McEntire informed the board of the Foundation Budget for FY14, presented in a new expanded format that shows all revenues and all expenses. The proposed revenue for FY14 is $850,312, which is an increase of $300,295 from FY13 revenues. The proposed total expenses for FY14 are $793,860, which is an increase of $498,957 from FY13 expenses. On a motion from Clyde Clark, seconded by Zoe Myers, the proposed budget for FY14 was approved.
Mr. McEntire presented to the board a revised Spending Policy for the Foundation. Whereas the existing Spending Policy addresses only the rate of spending from endowment funds, the expanded Spending Policy outlines spending policy and approvals for each part of the foundation’s assets (including the endowment), the budgeting process and schedule, the approval process for disbursements and the signing of checks. On a motion by Mitch Reaves, seconded by John Doyle, the revised Spending Policy was approved.
Mr. McEntire presented the corporation’s annual Memorandum of Understanding between the CVCC Educational Foundation and the College for FY14. On a motion by Larry Jackson, seconded by Zoe Myers, the Memorandum of Understanding was approved.
Mr. McEntire reported that the FY14 invoice for the Commonwealth of Virginia’s coverage for Public Officials Liability insurance through which the Foundation’s board members are protected during their service.
It was reported that Brockman, Drinkard and Pennington had completed the audit of the Foundation.
SCHOLARSHIP COMMITTEE REPORT
Clyde Clark presented items that the Scholarship Committee discussed at their two meetings on June 4, 2013 and July 18, 2013.
Mr. Clark reported that the scholarship committee met twice to award the Foundation Scholarships for the upcoming academic year. At these meetings, the committee proceeded to review and discuss applicant’s files and awarded a total of 36 scholarships for the 2013-2014 academic year totaling $115,991.
Mr. Jackson informed the board that he appreciated seeing the thank you notes from the students that were included in the board meeting materials.
RESOURCE DEVELOPMENT COMMITTEE REPORT
Larry Jackson presented items that the Resource Development Committee discussed at their meeting on July 24, 2013.
Mr. Jackson 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.
Mr. Jackson referred to the year-end June 30,,
2013 foundation revenue report and noted the increase from the prior year, and also directed the members’ attention to the 2014 Plan that had been handed out which showed the anticipated revenues for the new year. He stated that the luncheons with Dr. Capps and Mr. Bradford were successful and that the board needs to promote CVCC’s successes.
He thanked the board for their 100% participation in giving for FY13.
NOMINATING COMMITTEE REPORT
Zoe Myers presented items that the Nominating Committee discussed at their meeting on May 28, 2013.
Ms. Myers stated the need for the Nominating Committee to be reclassified as the Governance Committee. This committee would periodically review the Foundation’s Articles of Incorporation, By-laws and Policies. Mr. Bradford informed the board that he will develop a proposal for this change and bring it back to the committee for approval. In its expanded role, he foresees the Governance Committee being responsible for board member orientation, ongoing education, and an annual input survey. In addition, it would be responsible for keeping the foundation’s policies up to date.
Mr. Bradford stated that since this is year-end, he would like to thank the board for all its help during the year and for their time spent on Foundation business.
Winfred Nash stated that the board thanks and appreciates Mr. Bradford’s leadership.
COLLEGE PRESIDENT’S REPORT
Dr. Capps informed the board that SACSCOC Board had confirmed CVCC as “in compliance” with Comprehensive Standard 18.104.22.168—Institutional Effectiveness: Educational Programs at its June meeting. He stated that this endeavor showed a true test of the college community.
Dr. Capps informed the Board of the STEM Academy ribbon cutting on Monday. Governor McDonnell was present. He noted that this has been a cooperative effort and that this STEM Academy is unique in that it is located on our campus and serves all school divisions in Region 2000.
He stated that the STEM Academy ribbon cutting was listed in USA Today.
Dr. Capps reported that the Chancellor has new challenges for the community colleges:
1. Need for community colleges be more military friendly. CVCC has accomplished this with the new Veteran’s Resource Center.
2. Need for high school to college readiness. CVCC has accomplished this by having Developmental English and Math classes.
3. Need for STEM curriculum. CVCC has accomplished this by partnering with AREVA and Harris Corporation to develop curriculum.
4. Need for more funding for performance based funding not on enrollment.
5. By 2025, every Virginia family will have at least one member who has a college credential.
Dr. Capps thanked the board for all it has given to the CVCC Educational Foundation and to CVCC.
There was no old business to report.
There was no new business to report.
There being no further business, the meeting adjourned at 9:06 AM. The next meeting is scheduled for Tuesday, November 12, 2013 in the Johnnie E. Merritt Hall.