Page 37 - 2024 October

BOARD OF DIRECTORS MINUTES (4)
When asked about integrating AI into office operations, Bobby said the staff has used it moderately. He had been thinking about the value of AI for meeting minutes, but after Erik Daubert stressed in his Continuing Education session that information provided to AI is public, it just doesn’t feel like a safe use of AI technology. Malcolm sees real potential for helping find grantees. Bobby suggested that our first action should be to draft a policy for AI usage.
6. Committee Reports and Business A. Audit & Risk Committee
Hugh reported that the Foundation financial controls continue to be strong and top tier. The Committee finds Tommy, Templeton & Company, Prime Buchholz, and our outside consultant to be excellent. Tommy has spent a lot of time on risk assessment issues. He is still working on questions about deferred compensation, health insurance reimbursements and cell phone allowances. Tommy hopes to have all of these settled in the coming months.
B. Compensation Committee
Sherry reported that the Committee’s only action was to approve the updated health insurance
expenses.
C. Executive & Finance Committee
Malcolm reported there had been little Committee activity this year, which continues to be a good
thing.
D. Governance & Nominating Committee
Bill reported that most of the Committee discussion had been regarding succession planning. The Committee will be looking at some considerations and bring those findings to the Board in December.
E. Investment Committee
Dick noted the August meeting minutes written by Hugh were in the pre-meeting materials.
F. Financial Reports
1) 5-year financial report
Tommy pointed out that investment returns, other than 2022, have been good.
2) Standard monthly reports
These reports are sent to Buzz, Bobby, Hugh and Bea for review prior to being published in the Monthly Reports.
We are on track with operating expenses, understanding that there will be a rather large amount in the last quarter due to these meetings, the meetings in Scottsdale, and the December meetings.
Line 19 (Federal & State Taxes) of the Statement of Revenue & Expenses is significantly higher because of realized gains reported by Adage.
Tommy noted that the Balance Sheet shows assets are up for the year. Malcolm pointed out that when adjusted for inflation, JSF actually has less purchasing power than three and a half years ago. Hugh added that, again due to inflation, we actually have to earn more than 10% per year to stay even. Malcolm expressed that the Foundation is doing everything that it reasonably can to achieve a sustainable return.
Education / A Powerful force for change Page 35