Excelsior Rotary Foundation Minutes of 1-19-2012

Posted by Steve Frazier 
on Feb 01, 2012
 
Excelsior Rotary Foundation Board of Trustees
Minutes: January 19, 2012
Location:  Hosted by Carl Zinn
 
 
 
The meeting was called to order by Chairman Don Draayer.  Trustees present were: Don Draayer, Dean Friesen, Steve Frazier, Dave Peterka and Carl Zinn.  No trustees were absent.
 
The following Action Items were reviewed and approved:
1.      The agenda for the 01.19.12 meeting was reviewed and accepted with no changes.
 
The Secretary’s Report of the minutes for the November 11, 2011 meeting was presented by Secretary Dave Peterka for approval.  It was moved by Steve Frazier and seconded by Carl Zinn to approve the minutes as presented.  The motion carried unanimously.  Additionally, Dave Peterka presented the minutes for the November 22, 2011 meeting for approval.  It was moved by Carl Zinn and seconded by Steve Frazier to approve the minutes as presented.  The motion carried unanimously. 
 
The Treasurer’s Report for month-end December 31, 2011 was presented by Treasurer Dean Friesen as follows: 
1.      Internally prepared financial statements covering YTD activity reflect total revenues of $19,368.39, less total expenses of $7,557.02 (consisting largely of charitable contributions) yielding a YTD net income of $11,811.37.  The corresponding balance sheet for the same period reflects total equity of $126,922.24 supporting total assets of $126,922.24.  This Foundation has no liabilities.  A careful review of the Foundation Fund Analysis, consisting of the Annual Fund, the General Fund, and the Lee Paris Fund, followed.  It was moved by Steve Frazier and seconded by Carl Zinn to approve the Treasurer’s report as presented.  The motion carried unanimously.
2.       Dean Friesen presented for approval, the External Fiscal Review Committee’s report for the 2010-2011 Budget Year.  The committee consists of Excelsior Rotary Club members: Jerry Brecke, Dick Osgood, and Hugh Gilmore.  The committee’s findings revealed two areas of concern described below:
·         The Foundation’s internal controls for handling accounts receivable
Concern exists around the lack of dual control throughout the process, commencing with creation of the invoice, billing, receipt of payment, and finally deposit of the funds and application to the appropriate general ledger account.  Considerable discussion evolved with agreement by all committee members that action needs to be taken.  All committee members will bring points of discussion to our next meeting to resolve this concern.  
 
 
·         The management of our investments accounts
Concern exists around the management of our investment accounts.  Specifically, the recommendation was made that the Board of Trustees investigate any alternative institution where a safe and better return could be received on investments.  The Foundation Board agreed with this concern.  Consequently, action had already been started to interview funds management firms.  Further, Don Draayer has agreed to formulate the first draft of an investment policy.  This endeavor has our commitment to resolve by the end of this Board’s year of service. 
It was moved by Carl Zinn and seconded by Steve Frazier to approve and accept the External Fiscal Review Committee’s report as presented.  The motion carried unanimously.
3.      There were no “action required” on funding requests.
 
Old Business:
  1. Rebecca Hopf, AWMA, Investment Counselor with Waddell & Reed Financial Advisors gave a presentation on her firm’s ability to provide investment services to our Excelsior Rotary Foundation.  Considerable discussion followed including opinion’s expressed by each trustee relative to their risk appetite for foundation investments.  All trustees were very similar in their opinions.  Rebecca was very supportive of the creation of an investment policy as a starting point to drive our investment opportunities.  We further agreed that the next step is to interview additional investment counselors from other companies for comparison purposes. The Trustees were favorably impressed with Rebecca’s presentation, level of knowledge, and personality.  Carl Zinn will continue to research additional investment firms for our Board of Trustees to interview.
  2. A very brief discussion ensued on the policy elements relating to the newly established Endowment Fund.  Further discussion will follow at our next meeting.
 
New Business:
  1. Don Draayer asked the Trustees for their reaction to the forms Woody Love submitted earlier for the Trustees feedback.  The Trustees appreciated the courtesy invitation to react.  The Trustees determined that the full-disclosure-nature of the forms for projects would yield primary benefit to The Rotary Club Board of Directors who make the initial determination to recommend (or not to recommend) funding of a charity proposal.   Thus, the structure and content of the forms should fall most heavily to the Rotary Club Board, and no formal action was taken by the Trustees.  On the other hand, the Trustees acknowledged that their own decision-making will be enhanced if the information on the forms is attached to a request for Foundation payment. 
 
 
Adjournment:
The next meeting of the Excelsior Rotary Foundation Board of Trustees will be held on Wednesday, February 8, 2012 @ 1:00 PM at the office of Carl Zinn.  That meeting will be a shortened meeting primarily to facilitate the presentation by John Hinz, Investment Counselor from Ameriprise Financial.
 
There being no further business, it was moved by Dave Peterka and seconded by Dean Friesen to adjourn the meeting.  The motion carried unanimously.
 
Respectfully Submitted,
 
 
____________________
Dave Peterka,
Secretary
Rotary Foundation Board of Trustees