Page 33 - 2023 February Report

Horizons
Audit & Risk Committee minutes (draft)
February 8, 2023
Members Present: Hugh Brown, Sherry Salway Black, Bea Awoniyi, David Blaikie, Bill Corwin, Bobby Krause (non-voting) and Sanford Howard
Others Present: Dick Krause and Sharon Wood Hugh chaired the meeting.
1. Minutes of November 1, 2022 meeting.
Approved as circulated.
2. Matters arising from the minutes.
We have now converted 100% to QuickBooks for 2022. All Audits and Tax Returns will be prepared by Templeton using QuickBooks for 2022.
Bobby has now talked to 6 potential candidates for the Financial Controller job. Dick and Bobby interviewed 2 of the 6 on Monday. All 6 are very qualified. Problem comes down to relationships, how will they work with the team. Goal is to have person identified by our March Board meeting and in place by May 1. Could be a professional issue that may delay a bit.
3. Financial Reports.
A. Investment Activity-July 1, 2022 to September 30, 2022 and October 1, 2022 to December 31, 2022.
Hugh commented that distributions exceeded capital calls with ARCM distributing most of its assets. All proceeds are kept at U.S. Bank with Truist holding a minimum of funds needed for upcoming Grants and operating expenses. Sherry asked about the sale of Semper. Hugh explained we held that for about 10 years before selling it and deposit in funds in Vanguard Emerging Markets, a passive investment. Our Vanguard accounts are all passive and can be liquidated with one day notice. Prime determines when we need to liquidate a portion. December is a high cash outflow month with large Grant payments and making sure we pay out our Required Minimum Distribution required by the IRS. Hugh asked and Dick confirmed that we are out of Mangrove completely.
B. Bank Reconciliations-August through December, 2022
Buzz had only one question on the November, 2022 bank statement they listed on 11/4/22 an ACH payment to Philadelphia Insurance for $2,397.00 and then a group ACH from Bill.com for $111,801.43. On the Bill.com report they combined the two entries for $114,198.43. Why did Truist list them separately? I explained that it depends on when Dick instructs Bill.com to make the payment during the day that Truist will combine or separate the entries. When Bill.com prepares their report they combine them by days.
C. Truist Bank Register report-August 1, 2022 to December 31, 2022.
Hugh asked if we are now paying everything through Bill.com? Dick replied we are now paying 99% through Bill (formerly Bill.com). We do have some one-time payments by check. Sherry asked if The Connection was Angie Francalancia and Sharon confirmed it was. Buzz asked about R&Y Cleaning who cleans our office and why they were paid on 8/2 and 8/31. Dick checked and confirmed that they were for 2 different months. iSolved is our HRA provider.
4. Mastercard and Chase detail for August through December, 2022
Sherry asked who Arabella is? Dick explained that Arabella based in Washington, D.C. has now bought out Kiwi who we use for QuickBooks and Bill. Buzz asked why Bobby’s payroll figure varies between 9/30 payroll and 10/15 payroll. Dick responded that the 9/30 payroll included
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