Foundation Actions on May 8, 2012

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.

Also in attendance were our investment advisor(s): Ann Wengronowitz, CFP, Emily Nelson, RR, and Gary Thompson, Special Advisor to the Foundation Board of Trustees, and Jerry Brecke, member of the Rotary Club of Excelsior.

Action Item: The agenda was reviewed and approved with the single change that the Treasurers report would be moved to new business so it could be reviewed in conjunction with the discussion regarding “Budgetary Distinctions.”

 Secretary’s Report

The Secretary’s Report of the minutes for the March 22, 2012 meeting was presented for approval by Secretary Dave Peterka.  It was moved by Dean Friesen and seconded by Carl Zinn to approve the minutes as presented.  The motion carried unanimously.  Also presented for approval were the minutes for the April 7, 2012 “un-official” meeting.  It was moved by Steve Frazier and seconded by Don Draayer to approve the minutes as presented.  The motion carried unanimously.

Old Business:

Don Draayer present for approval, Draft #9 of The Excelsior Rotary Foundation Policy #5: Lee Paris Fund and Endowment Fund Investment Policy Statement.  After considerable discussion and input from Ann Wengronowitz, CFP and Emily Nelson RR, this final policy statement was brought to a vote.  It was moved by Carl Zinn and seconded by Dave Peterka to approve the final policy statement as presented.  The motion carried unanimously. 

Additionally, Don Draayer led a discussion regarding the recommendation on Placement of “Leftover Funds” from the Presidential Accounts (Policy #3) from year to year.  This topic caused considerable conversation at the previous joint “un-official” board meeting between the Rotary Club of Excelsior and the Excelsior Rotary Foundation held on April 7, 2012.  After considerable discussion by all, including comments from Joe Froehling, Special Advisor to the Foundation Board of Trustees, (delivered by Don Draayer), it was moved by Carl Zinn and seconded by Steve Frazier to continue with the current language, that is that any funds not expended from the Foundation’s sub-account of the Rotary Club president during his or her term of office will be transferred to the next president’s annual sub-account, therefore making no procedural change in the language of Policy #3.  The motion carried unanimously. 

New Business:

Investment Advisor Ann Wengronowitz, CFP led the Board of Trustees through her proposed investment recommendations for the long term investment of the initial $75,000 unrestricted endowment fund of Rotarian Lee Paris.  The proposal consisted of a blend of fixed income bonds (46%), equity investments (31%), tactical investments (20%), and cash (3%).  It was moved by Carl Zinn and seconded by Dean Friesen to approve Ann’s recommendation as presented.  The motion carried unanimously.

With our investment advisor in place and her investment recommendations approved, it was moved by Steve Frazier and seconded by Carl Zinn to approve the transfer of $75,000 to North Star Resource Group via Ann Wengronowitz.  The motion carried unanimously.

For discussion, Don Draayer presented the One Page Budgetary Distinction which attempts to distinguish between funds held for the Rotary Club of Excelsior from those held for The Excelsior Rotary Foundation.  After much discussion, we agreed that this format could be a very helpful document for both club and foundation use.  Dean Friesen noted that the title, “Paul Harris Fellows Fund,” on the “club side” isn’t quite true, because club member donations go directly to the Rotary International Foundation.  It was suggested that the reference to Paul Harris be included as a footnote on the club side of the page. Don Draayer will further develop this document.  

 Treasurer’s Report

 The Treasurer’s Report for month-end April 30, 2012 was presented by Treasurer Dean Friesen.  Internally prepared financial statements covering YTD April 30, 2012 activity reflect total revenues of $19,506.54 less total expenses of $15,832.02 (consisting largely of charitable contributions) yielding a YTD net income of $3,674.52.  The corresponding balance sheet for the same period reflects total equity of $118,785.39 supporting total assets of $118,785.39.  This Foundation has no liabilities.

The question was raised by Don Draayer regarding how Foundation operating expenses are covered.  He noted that there is no explicit budget category shown on the spread sheets which cites and records such expenses and that complete transparency of Foundation activities would be more complete with this addition.  He said that past foundation chair, Joe Froehling, answered this question for him by saying such expenses, which have been very small, have been withdrawn from the Annual Fund (Presidential Accounts).  Dean Friesen confirmed this practice.  

A careful review of the Foundation Fund Analysis, consisting of the Annual Fund, the General Fund, and the Endowment Fund (including the Lee Paris Unrestricted Account) followed.  It was moved by Carl Zinn, seconded by Steve Frazier, and carried to approve the Treasurer’s report.  The motion carried unanimously.

Adjournment:

There being no further business, it was moved by Dave Peterka and seconded by Carl Zinn to adjourn the meeting.  The motion carried unanimously.

 Respectfully Submitted,

 Dave Peterka, Secretary of the Rotary Foundation Board of Trustees