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2013-11-12

MINUTES NO. 110

 
CENTRAL VIRGINIA COMMUNITY COLLEGE
EDUCATIONAL FOUNDATION, INC.
BOARD OF DIRECTORS MEETING
November 12, 2013
 
The Central Virginia Community College Educational Foundation Board of Directors met at 8:00 AM on Tuesday, November 12, 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

 

FOUNDATION DIRECTORS

Clyde Clark                                 Lorenza Davis                                       Ryan McEntire                             Steve McElroy
John Doyle                                  Larry Jackson
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 August 13, 2013 meeting were unanimously approved by the Board.
 
TREASURER’S REPORT
John Poole presented the corporation’s FY14 First Quarter Financial Statements. 
 
The cash and cash equivalent balances reported are $712,214.  This amount is broken down between $430,566 in checking and $281,648 in the money market account, both with SunTrust.  Interest for the first quarter was $207.
 
The market value of the long-term investments at the end of the first quarter was $2,542,888.  Dividends and interest for the first quarter were $6,982 and investment fees were $5,623. 
 
The total Foundation revenue from July 1, 2013 through September 30, 2013 was $90,614.  Donations made to the College represent $51,653.  The total Foundation expenses from July 1, 2013 through September 30, 2013 were $38,131, including $32,507 for Program Services.
 
Mike Bradford informed the board that scholarships have not been paid to the college as of September 30, 2013, but should be expensed during the next quarter.
 
On a motion by Clyde Clark and seconded by Zoe Myers, 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 October 23, 2013.
 
He informed the board that SunTrust made a presentation at the Finance Committee meeting (see excerpts) and he had a complete copy if any of the board members would like to see it.  Mr. McEntire reported on the key things that concerned the investment policy.
 
The committee reviewed the portfolio’s composition and noted that it is within the Investment Policy’s required equity allocation range once you adjust the equity holdings to include two funds from the Non-Traditional list – the Aberdeen and the Wasatch, which SunTrust believe are sufficiently similar in their holdings of equity to be reasonably counted as such.  With these included in equity, the allocation is 69.25%.
 
On the fixed income side, he said that SunTrust noted that there had been an increase in rates which negatively affected bond valuations, and that there were likely to be further rate increases in the coming quarters.  For this reason they were still keeping the duration of the fixed income portfolio short.  At September 30, 2013 it was 3.7 years, which is below the lower end of the range required by the Investment Policy of within plus or minus 25% of the duration of the Barclays U.S. Aggregate index.  This has been the case all year, and the committee has been in agreement with SunTrust’s recommendation to keep the duration short. In January it had approved this exception to the Investment Policy for the December 31, 2013, March 31, 2013 and June 30, 2013 quarters. Mr. McEntire noted that the Finance Committee approved the duration exception again for the September 30, 2013 and December 31, 2013 quarters and was recommending it to the Board.  The board approved this recommendation from the Finance Committee.
 
Mr. McEntire reported the foundation’s Audit Committee met with the CPA and that the FY13 audit produced no material exceptions in the management report, only positive and complimentary comments.  Mr. McEntire proceeded to review the FY13 Audit and Tax Return.  On a motion from John Doyle and seconded by Steve McElroy, the audit report and tax returns for FY13 were unanimously approved by the Board.
 
Mr. McEntire presented information on the FY14 First Quarter Foundation Budget, noting that revenues were $129,623 and expenses were $40,205. Scholarship expenses will be paid to the college in the second quarter. On a motion by John Doyle and seconded by Zoe Myers, the approval of the first quarter FY14 budget was unanimously approved by the board.
 
Mr. McEntire asked Mr. Bradford to present the next agenda item which was coming with the approval and recommendation of the Finance Committee. Mr. Bradford then presented a proposal to establish a new Faculty & Staff Grant Program.  This program would be phased in this year and would be fully in place next school year, and would replace two programs which the foundation has funded for several years – the Web Course Development program and the Faculty & Staff Development program.  He explained that both web course development and faculty & staff development requests could still be funded under the new program, but so could a much wider array of projects which could benefit students and the college.  On a motion by Mitch Reaves, seconded by John Doyle, the New Faculty & Staff Grant Program was unanimously approved.
 
SCHOLARSHIP COMMITTEE REPORT
Clyde Clark presented items that the Scholarship Committee discussed at their meeting on October 15, 2013.
 
Mr. Clark informed the board that the foundation has revised the scholarship application in order to capture more information about the applicant’s work and/or military history, their previously earned educational credentials, and to add the FAFSA documentation requirements on the application itself.  The foundation will be requiring a copy of the FAFSA application and the confirmation sheet.  These will show the committee the estimated EFC for the application and help guide us as we develop a target EFC range for our scholarship awards. 
 
Mr. Bradford discussed the new Tobacco Commission scholarship grant that was awarded to the foundation on September 26, 2013.  The new grant is for $170,000 for the 2014-2015 school year, plus we have received permission to carry over $250,000 of the 2013-2014 scholarship grant.  Consequently, we will have $420,000 which will need to be awarded to students in 2014-2015, as all of the Commission’s scholarship grants now have to be used in one year.  In addition, the $420,000 will contain three programs - $220,000 for STEM-H, $25,000 for Tobacco Family, and $175,000 for a new program called Tobacco Region Academic Award (TRAA) which will be for students who graduated from a Tobacco Region high school with a 3.0 or better GPA on a 4.0 scale.  TRAA will allow the foundation to be much more flexible in helping students who are studying in any of our programs, who are studying in any of our programs and not just STEM-H ones.
 
Larry Jackson asked Mr. Bradford about the Finish Line and Veterans scholarships.  Mr. Bradford explained that the foundation has marketed those scholarship options to the intended audiences, but have received no responses. In addition, they have reviewed all scholarship applications as they have come in for opportunities to use these scholarships, but to no avail.  He pointed out that there have been a few veterans who have applied and who have received foundation scholarships, but they did not live in the appropriate counties to receive the Tobacco scholarships.
 
The board then discussed scholarships for early college and dual enrollment.  Mr. Bradford noted that the foundation has very limited funding specifically for these purposes, and to date has chosen not to use its unrestricted funds for these high school students.
 

RESOURCE DEVELOPMENT COMMITTEE REPORT

Larry Jackson presented items that the Resource Development Committee discussed at their meeting on October 15, 2013.
 
The board was shown the video that had been produced to promote the Employee Campaign.  It was reported that the employee campaign had doubled so far this year.  This shows how the energy is flowing at the College for the Foundation.
 
Mr. Bradford informed the board that the Radiology equipment grant campaign to raise the foundation’s matching 50% ($23,471) was well underway.  To date $10,000 had been received with commitments of another $10,000 hopefully soon to be received.  The Machine Tool equipment grant award of $206,972 was just received on September 26, 2013, so that campaign will soon get underway to raise the matching ($147,292 plus $59,680 to come from the STEM Academy’s fundraising).
 
The board was informed of the next business luncheon to be held on December 4, 2013.
 

NOMINATING COMMITTEE REPORT

Zoe Myers noted that the committee was polled by email from Mr. Bradford to review the list of candidates for the officer positions of the foundation for 2014, and also review the list of committee chairs for 2014. The following slates were approved by the committee members and are recommended for approval.
 
The officers proposed for 2014 were:
          President                Winfred Nash
          Vice President         Fred Armstrong
          Treasurer                John Poole
          Secretary                John Capps
 
The committee chairs proposed were:
          Finance                             Ryan McEntire
          Nominating                        Zoe Myers
          Resource Development      Larry Jackson
          Scholarship                       Clyde Clark
 
On a motion by Ryan McEntire, seconded by Steve McElroy, the board approved unanimously the candidates for foundation officers and committee chairs.
 
Lastly, Ms. Myers and Mr. Bradford informed the board that the committee was recommending that the Nominating Committee’s name be changed to the Governance Committee, and that its charter be expanded to include oversight of board governing documents and policies.  A proposal was distributed (copy attached), and after discussion it was approved by the Board.
 
FOUNDATION REPORT
No report.
 

COLLEGE PRESIDENT’S REPORT

Dr. Capps stated there is far more going on at the college that can be spoke of at this time, so he directed the board members to a copy placed at each seat of a recent speech he had delivered to the Estate Planning Council which included an update on the many notable achievements at the college (copy attached).
 
He stated that this has been a challenging year with SACs, but it has been a triumph for both the college and its students.
 
Dr. Capps thanked the board for all it has given to the CVCC Educational Foundation and to CVCC.
 

OLD BUSINESS

There was no old business to report.
 

NEW BUSINESS

There was no new business to report.
 

ADJOURNMENT

There being no further business, the meeting adjourned at 9:14 AM.  The next meeting is scheduled for Tuesday, February 11, 2014 in the Johnnie E. Merritt Hall. 
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