Page 15 - 2020 October Report

Resilience
Audit & Risk Committee minutes (draft) (2)
were $8,402.10 and $8,414.52 respectively.) He did point out that our new landlord billed us each month for base rent, common area rent (CAM), parking and electric whereas we were previously paying base rent, CAM and parking only. CAM previously included actual electric and cleaning expenses. Previous lease had CAM adjustment which was suppose to be adjusted annually. This CAM adjustment will also be adjusted annually.
D. Mastercard and Chase detail for June and July, 2022
Buzz noted that the full Mastercard bill was not attached. Because the hotel St. Regis required a $34,000+ deposit we were required to get a second credit card. Our Capital One Mastercard is limited to $20,000. We obtained a second Chase Visa card with a $50,000 limit and made the deposit with this card. We will continue to use both cards. (Following the meeting, Dick researched the Capital One credit charges on the website, printed up the full statements and had Sharon prepare her usual Capital One Credit Card Reports for June and July). They do not match the monthly statements exactly because on June 21 we tried to pay all charges to date against the Capital One balance to free that card up in order to make a partial payment on the St. Regis required deposit of $34,000+. The CEO stepped in and suggested we needed a second credit card to cover all our charges at which time we acquired the Chase Visa with a $50,000 limit and put the entire St. Regis required deposit of $34,000+ on that card.
E. Statements of revenue, expense and changes in fund balance – Seven Months Ending July 31, 2022
Hugh pointed out that we are starting 2022 with a large loss-asset values are down 12% from 12/31/21. The Financial Consulting line includes both Prime Buchholz and U.S. Bank. Hugh asked why they are so high with our assets dropping in value. Dick pointed out that they bill based on the previous quarter values. Our last billing in July was based on 3/31/22 values which was the first with lower values. Questions arose as to why were Employee Benefits down in 2022 as well as Office & Grant Making Support being forecast at over double the 2021 actual. Dick will check and report back. (Dick checked and found that Employee Benefits was understated and should be $105,341 which is more in line with the forecast. He also checked Office & Grant Making Support Budget for 2022 and was reminded why we budgeted over twice what we spent in 2021-new computer equipment/ software is up nearly $15,000 of which half of that includes Foundant our grants software package for $7,000 which we pay each 2 years and Moving expense of $30,000 which should be a 1 year item- these two items account for $45,000 of our increased budget amount. Dick also noted that Office & Grant Making Support was misstated and should have been $60,582 for 7/31/22. Hugh asked why we did not expense Malcolm’s Deferred Compensation monthly? Dick reminded him we are on a cash basis and only expense when we pay. Malcolm’s Deferred Compensation is set up to pay in 5 annual payments in December of each year with December, 2022 being the 2nd of 5 annual payments. David questioned Note 2. Hugh had previously questioned that footnote and Dick confirmed it was incorrect. The 17.85% should be 1.26% includes all grantmaking (like us) and operating foundations which include foundations with many more employees who get involved with the work of their beneficiaries. They therefore spend more money on administrative overhead. We are lower than but more comparable to grant making foundations less than $300,000,000 but with smaller staffs and therefore lower administrative overhead. Dick has just completed the 2021 FFOG Administrative Survey so in the next month we will be adjusting footnote 2 from 2020 to 2021. Hugh pointed out that some funds like Valar have dropped significantly in the first seven months while others like MAP Heritage have increased. Dick said that we took another drop in August going down to $251,000,000+. Hugh is expecting further drops as private investments revalue in the coming months.
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