Page 16 - 2024 April report

AUDIT & RISK COMMITTEE MINUTES (DRAFT) (2) E. Monthly Financial Reports - Two Months Ending February 29, 2024.
The Statement of Revenue & Expenses uses the draft budget which is yet to be approved by the Board. Most accounts are on budget.
The draft budget is a comparison of what was budgeted for 2023, not the 2023 actuals. This reflects about a 7% increase. However, about 2% of this is in corrective, non-repeating actions. Grants have decreased due to losses in 2022.
Historic returns show the portfolio is at $258,109,362.
4. Review risk assessment issues. A. Deferred Compensation
Tommy, Bobby and Hugh spoke with John Chenoweth of Templeton & Company. JSF has not withheld and submitted payroll taxes on the deferred compensation payments to Malcolm since they started in 2020. We need to amend our prior payroll tax returns. As an employer, we owe back taxes of approximately $80,000 (worst case scenario), cumulative, for the years 2020 through 2023. Malcolm will reimburse JSF for his share of the taxes, which will be approximately $40,000 (worst case scenario). JSF will submit the payroll taxes to the IRS with the filing of the amended payroll tax returns. Templeton & Company will handle the preparation of the amended payroll tax returns. We will not need to amend our prior 990-PF filings. Since JSF is paying the payroll taxes late, we will likely receive notices from the IRS assessing additional late payment penalties and interest. Tommy noted that we are hopeful to have the penalties abated. JSF will also need to register the Deferred Compensation Plan with the Department of Labor and pay a nominal fee.
B. Payments to Canadian Directors and Consultants
JSF should be reporting on Form 1042-S an allocated portion of the Canadian directors’ fees and consulting fees based on the days each director/consultant was working in the U.S. vs. their total workdays for the Foundation. The Canadian Directors and Consultants need to document their time and provide that to JSF. Unless an exemption is elected by the director/consulant, JSF is obligated to withhold 30% of their US compensation.
5. Consideration of Audit Firms
Dick & Tommy recommended that we retain Templeton & Company for the 2024 audit. It was unanimously agreed.
6. Schedule of Upcoming Meetings
June 14, 2024 - Diligent Board posting in lieu of in-person meeting September 9, 2024 - Spokane, Washington
November 1, 2024 - 8:00 a.m. EST Zoom
January 23, 2025 - 8:00 a.m. EST Zoo.
The meeting concluded at 3:10 p.m.
Respectfully submitted this 27th day of March, 2024.
Richard A. Krause Sherry Salway Black Financial Consultant Acting Committee Chair
Page 14 April Report