Page 21 - April Report2022

Resilience
Executive Committee meeting minutes
March 21, 2022
Members Present: Bea Awoniyi, Sherry Salway Black, Hugh Brown, Robert Krause, Malcolm Macleod Others Present: Richard Krause, Sharon Wood
Malcolm chaired the meeting.
1. Approval of Minutes of February 22, 2022 meeting
The minutes were approved as circulated.
2. Matters arising from the Minutes.
There were no matters arising.
3. Draft 2022 budget
Dick explained that all items highlighted in green are ones that have been changed since the Committee saw the draft budget in January.
The entire Income section at the top is new. Dick pointed out the use of 7.76% as the base rather than the 5% we have used in the past. This more accurately reflects the goal in the Investment Policy of 5% plus the rate of inflation. Rather than use the rate of inflation for just the previous year, it was decided to use the 5 year average (2017-2021) as that will remain more stable. The $44,169.32 in Line 3 is the final amount from the CRUT. It was received in late January. The anticipated interest on the money being held by U.S. Bank (~$50/month) is reflected here because it is reflected in QuickBooks generated reports.
Lines 13 and 18 separate Bobby’s Director compensation from his salary.
The medical insurance premiums have been finalized so this change is simply a reflection of the actual numbers rather than the estimates.
Line 49 includes Hugh Brown’s consultant fee plus an additional amount to serve as the Chair of the Audit Committee. This is the same amount as King, who chairs the Compensation Committee, but starting April 1 as opposed to January 1.
The actual invoice for the last annual report has been paid and that amount is shown on Line 84.
Line 100 will be increased to $30,000 when this budget is presented to the Board as that is a more realistic estimate of moving costs. Also, there will be an additional line for the lease on a telephone system for the new office.
Line 138 shows the most recent estimate of the required grant distributions for 2022.
It was noted that the amount shown on Line 16 for Malcolm’s deferred compensation in 2022 is a firm number as it was determined based on 2021 numbers. The amount for payment in December 2023 will be based on the numbers for this year.
The overall budget is an increase of nearly 15% over 2021 actuals. There are some “discretionary” funding items in the budget, but much of it is focused on programing and the need to be able to make the minimum grant distributions for the coming years. It is primarily because Bobby and staff can travel again, our PACKS Program, 5% COL increase for staff and consultants, expected increase in Prime Buchholz fees, deferred compensation fees, Center for Effective Philanthropy and furniture and moving expenses. Grants are much higher, but this is due to the CRUT’s additional investments. If we compare 2022 with pre-Covid years, the increase is not as dramatic and that point was made in the meeting.
The Committee unanimously agreed to recommend the budget to the Board for approval.
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