Page 20 - October 2023

AUDIT & RISK COMMITTEE MINUTES (DRAFT)
SEPTEMBER 11, 2023
Members Present:
Hugh Brown (Zoom), Sherry Salway Black (Zoom), Bea Awoniyi, David Blaikie, Bill Corwin, Bobby Krause (non-voting) and Sanford Howard
Others Present: Dick Krause, Tommy Pence and Sharon Wood Hugh chaired the meeting.
1. Minutes of March 8, 2023 meeting. Approved as circulated.
2. Matters arising from the minutes.
Bobby hired a Financial Controller who began June 19th. Beginning August 1, 2023 Dick stepped down as CFO and started up as Financial Consultant serving the CEO, Chairman of the Audit & Risk Committee and Financial Controller. Sherry stated that the IRS may still consider Dick as an employee and we should run his consulting agreement by Templeton. Bobby confirmed that Templeton was in agreement with Dick’s consulting agreement. Cyber insurance was purchased and its details are in the Summary.
3. Financial Reports.
A. Investment Activity - January 1, 2023 to March 31, 2023 and April 1, 2023 to August 14, 2023.
Dick commented that work flows continue to vary with distributions being larger than capital calls and vice versa. Dick commented all distributions go to U.S. Bank and we request cash as required be wire transferred to Truist to pay for expenses and grants. Wire transfers are overnight. Sold Cat Rock and received final distribution on 7/1/23 and reinvested in Junto to bring our investment in Junto on 7/31/23 to $5,000,000+. Junto is a conservative hedge fund recommended by Prime Buchholz. Prime is planning to invest $5-10 million dollars per year in private investments over which they have complete discretion. Prime is pleased with our current investment managers and sees little reason for additional changes.
B. Truist Bank Register report - June 1, 2023 to August 21, 2023.
Tommy has copied a column to the far right indicating how we pay so everyone can see what is paid through Bill. We quit processing through Bill for the first few days after SVB shut down. After Bill announced they had pulled all of their funds out of SVB, we returned to processing. When we initiate a payment, they pull the money out of Truist and send it a few days later to vendor. Hugh asked about the payment on 6/22 to CEP for $31,250. Bobby explained that was for their conference sponsorship ($20,000) and purchase of Malcolm’s book ($11,250) to put in participants bags. Question arose as to who will this benefit? Bobby explained we have an agreement with Malcolm that he receives all benefits from book sales which we consider to be minimal. It was suggested we should run this by Templeton to get a clear outside opinion on its legality. Tommy already has questioned Templeton about it but is awaiting an answer. Hugh also questioned payment 7/10 to Gunster for $480.81. That was for Malcolm’s continuing O-1 visa which the visa people decide if it is for 1 year or longer. David had a few questions. On 6/6 we paid Empower $6,873.64 for retirement. Tommy explained that is our employee deductions from payroll plus the 4% match from the foundation plus the 8% contribution from the foundation to Empower which formerly went to Mass Mutual for our 401K Plan. David also asked about the 6/29 payment to Robert Krause for $58.26 for Travel-Investment. Sharon explained that was for travel to Boston for Investment Committee meeting with Prime Buchholz. Buzz asked about the 6/23 payment to United Healthcare for $9,069.09 for Insurance-Bobby and Lady. Sharon explained that was for 2 months. Bobby further explained that on 6/21 he reimbursed the foundation $4,458.86 for Susan’s medical insurance premium for the first quarter of 2023. Buzz also asked about 8/4 payment to Gunster for $379.00 for Malcolm’s continuing O-1 visa which was earlier discussed.
C. Mastercard and Chase detail for March through August, 2023.
No comments.
Page 18 October Report