Page 39 - 2022 November Report

Resilience
Audit and Risk Committee meeting minutes (draft) (2)
C. John Chenoweth explained the eight Draft State Returns. 1) Florida – no payment is required.
2) Illinois – no payment is required.
3) Minnesota – a $75.00 payment will be made for the 2021 Annual Report. 4) New York - no payment is required.
5) North Carolina - no payment is required.
6) Utah - no payment is required.
7) Virginia - payment is required of $112.
8) West Virginia - no payment is required
D. John mentioned the Form 720 filed in June and begun under Obama where we pay a total of $10.64 for medical purposes each year.
4. 2021 Draft Audit
Walt Maxwell, our new partner in charge replacing John Templeton at our request, began by making some general comments about the audit which started in June and has been reviewed by staff and outside consultant. He began with the 2021 Audit by saying it was an unqualified opinion with no exceptions noted and under their new format that opinion is stated at the beginning rather than the end. It is on a modified cash basis rather than GAAP basis.
In Note 1 under Program Related Investments, Sherry said it sounds like we are just starting this. May need to take out “in recent years.”
On Page 8, Note 1 under Risks and uncertainties Hugh questioned whether the estimates were 100% accurate or just estimates. Walt confirmed that the estimates of foreign currency risk are just estimates.
Also on Page 8 under New accounting pronouncement Sherry questioned why FASB set a new standard in 2016 but it does not go into effect until after December 15, 2022. Walt explained they give auditors plenty of time to react to it and he does not think it will have a substantial effect on JSF. It will require substantial disclosure in the 2023 Audit.
On Page 11, Walt noted there are 3 levels of Fair Value Measurement. There was discussion on whether we need to disclose that Prime Buchholz has complete discretion over Private equity, venture capital and inflation protection managers. It was agreed that disclosure should be noted.
On Page 17, Note 10 is a description of the pandemic and it’s potential threat.
The Audit Committee approved the 2021 Audit with suggested revisions and instructed Templeton to finalize the audit
5. Walt reviewed the Report To The Audit And Risk Committee dated November 1, 2022.
6. The Committee unanimously approved all tax returns as corrected and authorized the CFO to sign
the returns and file them with the IRS prior to the extended due date of November 15 and for the CEO and CFO to sign the Minnesota Annual Report.
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