Page 35 - 2023 February Report

Horizons
Executive & Finance Committee minutes (draft)
February 6, 2023
Members Present: Sherry Salway Black, Bill Corwin, Bea Awoniyi, Robert Krause Other Present: Dick Krause, Sharon Wood
Sherry chaired the meeting.
1. Approval of Minutes of September 12, 2022 meeting
Minutes were approved as presented.
2. Matters arising from the Minutes
Bobby said that he and Dick have a couple of interviews today for the new financial position. Bobby had reached out to people in Palm Beach County who might know people who are qualified and might be potentially interested. He said he had spoken with about 12 people and those conversations yielded 9 names. He has narrowed that list down to 3 he thinks are well qualified candidates. He has spoken with all 3 plus had extensive conversations with the people he does know and trust regarding the individuals’ qualifications. Bobby’s goal is to have someone selected before the March meetings with plans to have that person in place by May 1st.
This person will not be Chief Financial Officer. Bobby is currently describing the position as Financial Controller. Because much of the financial work is now being handled by Prime Buchholtz and through BILL for all payments, Bobby plans to structure a salary that is less than Dick’s. He noted that Dick’s role has been far more than just financial as he has contributed greatly to grantmaking as well. Dick as agreed to serve as a Financial Consultant.
3. Draft 2023 budget
Bobby explained that Dick had started the process of creating this budget in December. It has been through many iterations with input from the staff. Malcolm has seen this proposed budget and had no suggested revisions. Overall, this budget reflects an 8.7% increase over last year. As shown on Line 164 of the Summary of Increases, the majority of the increases are in travel.
Dick then reviewed the budget and answered questions: Line 21 is Dick’s salary, pro-rated for 4 months
Line 22 (New Financial Controller salary) is based on $175,000 and pro-rated. The actual salary will be a part of the negotiations with the new person.
Line 55 is Dick as a consultant at the same rate as Hugh, pro-rated for 8 months.
Line 55 is for a governance consultant yet to be identified who will assist in strategic planning as Maridel Moulton had done prior to her retirement.
A question was raised regarding the Line 2 note that the 2023 Budget is based on 7.5% portfolio return. In 2022, we had used 7.6% as that was 5% plus the average of the cost of living rate for the past 5 years. Mike Miller had asked what Prime Buchholtz recommended. They suggested 5% plus 2.5%, so that is the number being used.
There was a request for clarification of Line 26 which shows the 401(k) remittances at 4% and 8%. Dick explained that the Plan calls for a match of up to 4% of a staff member’s salary plus an annual contribution by the Foundation of 8%.
Meeting materials included an analysis of how the operating budgets have compared to the grant distribution since 2018. Dick was asked to research why the 2019 budget was a higher percentage. When asked if we have any comparisons to other foundations, Dick pointed to the footnote on the Statement of Revenue which is published in the Monthly Reports. JSF continues to compare very favorably in operational expense efficiency to other foundations of similar asset size.
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