Page 24 - 2022 Feb Report

February Report 2022
Audit Committee Meeting Minutes
January 26, 2022
Members Present: Hugh Brown, Sherry Salway Black, Bea Awoniyi, David Blaikie, Bill Corwin, Bobby Krause (non-voting) and Sanford Howard
Others Present: Dick Krause and Sharon Wood Hugh chaired the meeting.
1. Minutes of November 1, 2021 meeting.
Minutes were approved as circulated.
2. Matters arising from the minutes.
Hugh asked if Dick had heard back from Templeton on how they came up with 48% of our investments are subject to foreign currency risk. Dick did not recall hearing back from Templeton. After further checking into it, Dick found that John Templeton that same evening of November 1, 2021 had sent him their schedule of investments subject to foreign currency risk which totaled 48%. Dick sent that schedule to Hugh Brown to determine if we wanted to follow up with Prime Buchholz. Dick has requested Prime Buchholz to review this subject at our next investment/finance committee meeting on March 8, 2022.
Hugh also pointed out that on pages 3 and 4 of the November 1, 2021 minutes we need to the correct spelling for JSF.
3. Financial Reports.
A. Investment Activity –July 1, 2021 to September 30, 2021 and October 1, 2021 to December 31, 2021.
Hugh noted that we need to correct the 9/30/21 entry for Junto for $3,000,000 and classify it as an investment rather than a capital call. He explained the difference between an investment and a capital call. That will give us an excess of distributions over capital calls of $712,226 for the 3rd quarter of 2021. The 4th quarter of 2021 will also have an excess of distributions over capital calls of $525,895. Buzz asked if that was expected to change. Hugh said he expected that to continue. Hugh explained the increase in inflows for the past 3 years. He said outflows have also gone up but not in the same proportion. Bill noted the sale of certain assets to provide cash for the Junto investment. Dick noted that we are selling Mangrove this month to raise $1,800,000 to add to Junto. That will show up on our next report. Hugh asked if we were totally redeemed out of MAP 2012. Dick responded that we still have some value, $408,177 as of 12/31/21. (After the meeting, Dick was notified from MAP that Hugh was correct. As of 12/31/21 MAP 1999, MAP 2000 and MAP 2012 were all at 0 value as of 12/31/21 and we were now in the new MAP Heritage Fund with a base capital amount of $4,154,040.17. New fair value reports would be posted in late March for this new account.) Hugh said JSF’s Private Capital portfolio is doing well and now totals about 24% of total assets, which is within our allowable range of 10-30%.
B. SunTrust Bank Statements and Reconciliations – August, September, October, November & December, 2021.
Hugh asked Buzz if he saw anything in the bank reconciliations he would question. Buzz did have a few questions. His first question had to do with why there was no bank reconciliation attached to the December bank reconciliation. Dick agreed to include the December statement with the bank reconciliation attached, along with the January and February bank reconciliations for the March Audit Committee meeting. Dick later discovered Lady had omitted the bank reconciliation from the other December bank reconciliation reports and Dick had failed to notice that. Dick also announced that he has completed switching almost all vendors over to Bill.com
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