Page 18 - April JSF Report

AUDIT & RISK COMMITTEE MINUTES (DRAFT) MARCH 20, 2023
Members Present: Hugh Brown (Zoom), Sherry Salway Black, Bea Awoniyi, David Blaikie, Bill Corwin, Bobby Krause
(non-voting) and Sanford Howard
Others Present: Dick Krause, Sharon Wood Hugh chaired the meeting.
1. Minutes of February 8, 2023 meeting.
Approved as circulated.
2. Matters arising from the minutes.
Bobby has hired a Financial Controller who will begin June 20th. He is giving notice today to his firm, so Bobby is still not free to give his name. Dick will stay on as full time CFO through the end of July to begin his training. Beginning August 1, 2023 Dick will step down as CFO and start up as Financial Consultant serving the CEO, Chairman of the Audit & Risk Committee and Financial Controller subject to Board approval. Sharon will be leaving on vacation June 29th. Sherry stated that the IRS may still consider Dick as an employee, especially if he receives medical benefits, and we should run his consulting agreement by Templeton.
3. Financial Reports.
A. Investment Activity - January 1, 2023 to February 28, 2023.
Hugh commented that we continue to receive net inflows as we liquidate select investments such as ARCM IV on 2/1/23 for $747,063 and True Green on 2/21/23 for $787,419, 2 energy related investments. 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.
B. Bank Reconciliations - January through February, 2023
Buzz had only one question on the February, 2023 bank statement. He asked why the bank statement gives a closing balance of $365,658.64 and the Reconciliation Report give a closing balance of $365,574.64, a difference of $84.00 which is the first item under checks reconciled dated 12/23/22. Lady Hereford, who reconciles our bank statement, should have recognized that difference. Dick explained that Kiwi has access to our QuickBooks and helped us with the reconciliation by removing that item which never should have been recorded in Truist and then checking it off as reconciled before Lady went in to a zero balance reconciliation and clicked on reconcile.
C. Truist Bank Register report - January 1, 2023 to March 12, 2023.
Dick has added a column to the far right indicating how we pay so everyone can see what is paid through Bill. The CEO of Bill has guaranteed all funds going 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. They had 12% of their funds with SVB. Need to know where they keep funds. Dick has requested that info from Kiwi. Hugh asked how do they make money? Dick replied they charge us $.49 per transaction, $10.00 for wires to Canada and interest on floats. When we initiate a payment, they pull the money out of Truist and send it a few days later to vendor. Hugh asked about 1/25/23 Minnesota Diversified Industries. Sharon answered they hire people with disabilities. Hugh noted we paid rent to Colonnades on 1/4/23, 1/30/23, and 2/27/23. Dick checked after the meeting and the 1/4/23 payment was for December, 2022, the 1/30/23 payment was for January, 2023, and the 2/27/23 payment was for February, 2023. Sherry asked about the 2 payments to College for Kids on 2/16/23 and 2/17/23. Sharon explained that the first was for Scholarships and the second was for administrative expenses. On 1/26/23 Hugh asked about the wind policy refund from Starkweather & Shepley, our insurance broker. We received a refund for our wind policy since our wind insurance provider pulled out of the Florida market. We have since taken out wind insurance with Citizens at a cost of $1,260 per year. Buzz asked about the State University System of Florida Grant on 2/7/23 for $20,000 which had been sent earlier in December, 2022. They claimed they had not received it and by the way they moved and did not notify us. Before we sent the new payment, they received the first one but did not and will not cash it.
Page 16 April Report