Page 14 - 2020 October Report

October Report 2022
Audit & Risk Committee minutes (draft)
September 12, 2022
Members Present: Hugh Brown (by Zoom), Sherry Salway Black (by Zoom), Bea Awoniyi, David Blaikie, Bill Corwin (by Zoom), Bobby Krause (non-voting) and Sanford Howard
Others Present: Dick Krause and Sharon Wood Hugh chaired the meeting.
1. Minutes of March 21, 2022 meeting and June 15, 2022 Mailout.
Both were approved as circulated. Hugh mentioned that he and Buzz had several questions on the Mailout but Dick was responsive in answering their questions to their satisfaction.
2. Matters arising from the minutes.
Hugh mentioned that the topic of foreign currency risk was discussed at the August 18 meeting of the Investment Committee. Dick will request Prime Buchholz to review this subject (48% of our assets subject to foreign currency risk) when the 2021 Audit is available for review later this month and get the corrected percentage available for 2021. (Templeton issued the first draft of their 2021 Audit on 9/14 which showed that again for 12/31/21 48% of our assets were subject to foreign currency risk. Dick sent a copy to Prime and on 9/19 Prime and Templeton discussed the issue. Jonathan, our Templeton auditor, wrote “the percentages were updated to read as 27% foreign currency risk, and the remaining 73% being invested in U.S. dollar-denominated investments.”)
3. Financial Reports.
A. Investment Activity –April 1, 2022 to June 30, 2022 and July 1, 2022 to July 31, 2022
Hugh commented there was nothing unusual with capital calls exceeding distributions. He noted there was an additional distribution in July from MAP Heritage which had replaced MAP 1999, MAP 2000 and MAP 2012 in January and was one of our energy funds which had been returning about 20% per year. He pointed out a large $10,000,000 investment in Baxter. Sold some of Silchester ($5,000,000) our second largest investment to buy Baxter. David Blaikie asked about Baxter Street Offshore Fund, a non US Equity Fund which Prime Buchholz has been recommending for some time but was not open to new purchasers until recently. Our Investment Committee has been very happy with new managers Prime Buchholz has been bringing to us.
B. Bank Reconciliations-June and July 2022
Buzz had no questions on tying in the Bill.com reports with the bank reconciliations. Dick also announced that he has completed switching almost all vendors over to Bill.com.
C. Truist Bank Register report–June 1, 2022 to July 31, 2022
Buzz asked why 6/26 rent was $6,668 and 7/28 rent was $8,402. (Dick checked and saw that Colonnade’s gave us a rental concession of $1,693.55 for the fact that we were late by 10 days (from April1 as promised to April 11) in being able to move in which was offset by $80.88 for the electric bill from 5/16 to 6/15 and $121.10 for the electric bill from 6/16 to 7/15. 8/1 and 9/1 rental bills
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