Page 38 - 2022 November Report

November Report 2022
Audit and Risk Committee meeting minutes (draft)
November 1, 2022
Members Present: Hugh Brown, Bea Awoniyi, David Blaikie, Bobby Krause, Bill Corwin, Sherry Salway Black and Sanford Howard
Others Present: Malcolm Macleod, Dick Krause and Sharon Wood
Walt Maxwell (Audit Partner), John Chenoweth (Tax Manager), Jonathan
Lockmiller (Audit Manager) from Templeton & Company Hugh chaired the meeting.
1. Approval of Minutes of September 12, 2022
Approved as submitted.
2. CFO
Resignation letter attached and sent to Templeton.
3. 2021 Draft Tax Returns
A. John Chenoweth who has worked with us for 7 years took us through the Draft 990-PF.
In Part I the first 12 lines report the realized gains from the K1s received from each investment manager. It equaled $25,217,306 of net investment income. This number does not include any unrealized gains or losses.
Bea noted that the Audit was $1 different in Note 3 than the tax return which was probably due to rounding. Templeton agreed to change it in the 990PF.
Lines 13 through 26 are more familiar to us since most of them show up all year on our monthly financial reports with the exception of lines 18 and 23 which come primarily from the K1 reports. John stated that the same percentage breakdown between column (b) and column (d) were used as in prior years which still seems conservative and reasonable.
On page 3, Part V our excise tax for 2021 is 1.39% of our net investment income or $350,521. John has contacted Prime Buchholz and requested their assistance in acquiring estimated 2022 K1s for Templeton to more accurately assess our 2022 tax liability or we may be forced to pay in an additional $350,000 as an estimate. Bobby asked what the penalty is for not paying estimates and John replied 1 to 3% on the unpaid amount based on which quarter it was due.
Part XII, column (d), line 6f we must distribute in 2022 $13,123,210 in grants, grant-related expenses and taxes.
John explained Expenditure Equivalency detail which we are including this year for all Canadian and/or Foreign Grants to confirm they meet the IRS requirements as Grants.
B. John Chenoweth explained the Draft 990-T.
We had a loss of $107,970 for 2021 for Unrelated Trade or Business Income as shown on Part 1, line 5. Our NOL is now at $196,000 for future years.
No tax is due for 2021 and there is an overpayment of $20,000 which we will apply to 2022 estimate.
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