Page 17 - 2024 October

AUDIT & RISK COMMITTEE MINUTES (DRAFT)
September 9, 2024
Members Present: Bea Awoniyi, Sherry Salway Black, David Blaikie, Hugh Brown (virtually), Bill Corwin, Bobby Krause (non-voting), and Sanford Howard
Others Present: Lisa Loomis, Tommy Pence, and Sharon Wood Hugh chaired the meeting.
1. Minutes of March 18, 2024 Meeting and June 14, 2024 Mailout.
The minutes of the Committee’s March 18, 2024, meeting had been circulated and were approved as circulated. The mailout of June 14, 2024, was also approved as circulated.
2. Business Arising from the Minutes
Malcolm’s Visa was approved by the US government through September 2026. There should be no need to pursue any additional Visa’s in the future; nor should there be any additional legal fees associated with this matter.
Tommy will be meeting with John Chenoweth of Templeton & Company on Tuesday, September 17, regarding the remaining issues surrounding Malcolm’s deferred compensation reporting. Templeton & Company is proposing a 60% Canadian and 40% US reporting of his payments. They will be preparing the amended Foundation payroll tax returns for prior years (2020 through 2023). The next deferred compensation payment will be made in December 2024 with a minor remaining payment to be made in December 2025.
Earlier this year, all Canadian consultants and directors completed the necessary paperwork so we could properly report their payments to the IRS. We will request this information annually so we can properly report these payments going forward.
The remaining funds from Cat Rock have been received.
The Wall Street Journal subscription is now online, and the monthly charge has been reduced significantly.
3.
Financial Reports
a. Investment Activity – April 1, 2024 to August 21, 2024.
Tommy indicated there were two sales for $2 million each (Vanguard Total Stock Fund and GQG) to generate cash flow for operating budget items, including our charitable grants.
Hugh commented that capital calls continue to outpace distributions. Our prior anticipated budget shortfall was approximately $100,000 per month, but the current shortfall is significantly greater than the budgeted amount. Also, we do have some new private equity investments coming online. Prime Buchholz believes private equity will generate a better return than the overall stock market in the coming years. Our commitment to private equity investments has been $6 to $12 million in past years, but Prime Buchholz expects that to increase to $12 to $18 million.
Hugh mentioned we sold our interest in Gaoling during July 2024, as recommended by Prime Buchholz. Gaoling was an investor in the Chinese equity markets. Tommy mentioned we will not receive the remaining holdback funds until Spring 2025.
It was suggested that Tommy maintain a schedule of our commitments to assist with cash flow needs in the coming year. Tommy will prepare this schedule for future meetings.
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