Board of Trustees Meeting Minutes

Transcription

1 Present: Absent With Excuse: Guests: Kyle Button, Lisa Chavez, Yoshiko Fong, Jeanette Gordon, John Isaacson, Carol Jackson, Morris Jones, William Lewis, Frank Saito, Mae Santos, Mongwei Wee, Tony Wong Kevin Baaske, Elaine Draper, Hector Escobar, Michael Hagerthy, Carlos Illingworth, Jorge Ramirez, Leila Ricci Nancy Hunt, Faculty, Division of Special Education and Counseling, Toni L. Beck, Investment Management Specialist, Mr. Gene Chip Stone, CIMA, Senior Investment Management Consultant, Thomas Leung, University Controller, Susana Moreno, Administrative Analyst/Specialist, Institutional Advancement Ms. Jackson called the meeting to order at 11:18 a.m. President s Report Ms. Jackson welcomed the Trustees and guests. The minutes of the April 25, 2013 Board of Trustees meeting were presented for approval. A motion was made by Judge Jones and seconded by Mr. Wong to approve the April 25, 2013 Board minutes as presented. A verbal vote was conducted and the motion was passed. Annual Certifications Ms. Jackson mentioned that the Conflict of Interest Statement and Volunteer Appointment forms were distributed to Trustees. Trustees were reminded that this was consistent with the CSULA Foundation policy and audit requirements. Committee Reports Investment and Finance Committee Mr. Isaacson provided the following information. Investment Manager Change the Investment and Finance Committee narrowed the RFP selection to

2 Page 2 four firms after a thorough review of each manager s style and qualifications. The firms selected as finalists were invited to a 30-minute question/answer interview - with each firm to discuss their programs and styles, and the Foundation s expectations. In considering each of the firm s presentations, the selection was narrowed to two firms, the Commonfund Securities Inc., and The Stone-Beck Group at Morgan Stanley Wealth Management. After clarifying specific areas of the two finalist s presentations, it is the Committee s recommendation that the Board approve The Stone-Beck Group at Morgan Stanley Wealth Management for a three-year agreement with an option to renew. Mr. Isaacson proceeded to explain that the Committee did not want to lock-in a five-year agreement due to the imminent arrival of CSULA s new president, providing some flexibility for changes he may wish to make. A motion was made by Mr. Wong and seconded by Judge Jones to approve a three-year agreement for the continuous service of The Stone-Beck Group as investment counsel for the CSULA Foundation. With no further comments or questions, a verbal vote was conducted and the motion passed. Mr. Gene Chip Stone, CIMA, Senior Investment Management Consultant and Ms. Toni L. Beck, Investment Management Specialist were introduced. Mr. Stone and Ms. Beck conveyed their appreciation of being selected to continue to provide consulting services to the CSULA Foundation. Portfolio Performance As of May 31, 2013 the ending market value of the portfolio was a positive $21,662 million. For the trailing three years, the investment returns were a positive 9.7%, and up 6% for the current year. Manager performance and due diligence 11 out of 18 mangers are beating their index since inception. Investment policy monitor/target returns quarterly, year-to-date, trailing 12 months, trailing 3 years all above target, and since inception below target. Asset Allocation all broad asset and sub-styles are within set parameters, the portfolio is currently overweight in domestic stock as opposed to international stocks. Mr. Isaacson also reported that with the European Euro at a low, investment counsel is suggesting raising the international allocation in the portfolio. Investment counsel also suggested reducing the amount of funds invested in Bonds with a shorter duration. Operating Budget for Fiscal Year Mr. Button referred the Trustees to the detail Proposed Operating Budget document included in their packets.

3 Page 3 Mr. Button proceeded to report on the following significant line-item variances: (1) Request to roll-forward funds - University Development Operations Scholarship Automation, an automation project for private scholarship administration, which did not move forward this year. (2) A one-time Annual Giving Capital fund upgrade required to stay current with technology (not to exceed $7500). (3) A $4,000 increase to support the promotion of marketing the Planned Giving Program. With no further discussion, a motion was made by Ms. Fong and seconded by Ms. Gordon to approve the CSULA Foundation Operating Budget for Fiscal Year as presented. A verbal vote was conducted and the motion was approved Projected Distribution to Account Holders - Mr. Button explained the distribution and recommendation process and reported that the Investment and Finance Committee agreed that the 4% distribution to account holders should be maintained. With no further discussion, a motion was made by Ms. Gordon and seconded by Mr. Isaacson to approve a 4% allocation to account holders for fiscal year A verbal vote was conducted and the motion was approved. Audit Committee As an informational item, Ms. Wee reported that the Chancellor s Office Auxiliary Audit was completed and that there were no significant deficiencies noted. An un-official report will be available for the Board s review at the next meeting. GAAP Update Ms. Wee reported that a kick-off meeting was held to prepare the initial work/documentation required for the annual financial audit. The Audit Committee will provide additional information at September 27, 2013 meeting. Governance Committee Judge Jones acknowledged the following Trustees: Carol Jackson ( ) On behalf of the Board of Trustees Judge Jones acknowledged and honored Ms. Jackson with a plaque for her 9 years of service on the Board and Ms. Jackson s involvement as a member of the executive committee and chair of the Investment and Finance Committee.

4 Page 4 Elaine Draper, Faculty Representative ( ) Carlos Illingworth, Alumni Association Representative ( ) Hector Escobar, Student Representative ( ) Judge Jones also acknowledged and expressed his appreciation for the service of the continuing trustees. Proposed Slate of Officers the Governance Committee s recommendations for the Proposed Slate of Officers are: President: John Paul Isaacson Vice President: Morris Jones Secretary: Jeanette Gordon Treasurer: Mae Santos Ms. Jackson moved to approve the slate of officers as presented and Mr. Wong seconded the motion. A verbal vote was conducted and the motion was passed. Election of Officers The Governance Committee is proposing the approved slate of officers for an additional one-year term. A motion was made by Ms. Fong and seconded by Judge Jones to accept the Slate of Officers as presented. A verbal vote was conducted and the motion passed. Student Representative Mr. Button announced that Mr. Hector Jacinto newly elected ASI President and by virtue of that position will serve as CSULA Foundation s Student Representative. A motion was made by Mr. Wong and seconded by Mr. Saito to accept Mr. Hector Jacinto as the CSULA Foundation Student Representative for a one-year term commencing September 27, A verbal vote was conducted and the motion was passed. Principles of Practice/Donor Bill of Rights The Board was referred to the CASE Principles of Practice for Fund-Raising Professionals at Educational Institutions included in their packets. Mr. Button reiterated that these principles represent the integrity of the institution and of the fundraising profession. Page 5

5 A motion was made by Judge Jones and seconded by Mr. Wong to re-endorse the Principles of Practice/Donor Bill of Rights. A verbal vote as conducted and the motion passed. CSU Executive Order Recommended change to Articles of Incorporation Mr. Button reported that a CSU Executive Order was distributed in January 2013 reflecting a change to the Education Code in California dissolution of assets on any of the officially recognized auxiliaries in the CSU. The articles of incorporation of an auxiliary organization shall contain a provision that upon dissolution of the organization, net assets, other than trust funds, shall be distributed to a successor approved by the president of the campus and by the Chancellor. The amended Articles of Incorporation and CSULA Foundation By-laws reflecting this change will be brought forward at the September 2013 Trustees meeting for approval. Development and Gift Acceptance Committee In Mr. Ramirez s absence Mr. Button made the following report. Fourth Quarter Foundation Highlights The Foundation received additional receivables in the amount of $131,932 to both endowed and un-endowed accounts. This brings up the year-to-date totals to over $ 2,658,254 in receivables and over $ 824,406 in pledges for a total of $ 3,482,660. Recent Donations - A new pledge of $145,000 to be paid over three years was received in honor of Rosie Casals to enhance the Tennis Center of the Billie Jean King Sports Complex. A new endowed scholarship fund was established with a donation of $10,500 from an alumnus of the psychology department. He established this scholarship in his wife s honor. The scholarship will support students majoring in psychology and social work. Renewing scholarship support was received from a local community foundation to provide scholarships to child development students and from Edison International to support the CSU Edison Transfer Scholarships to support students studying in STEM related disciplines and majors. First Lipton/Modares Fellowship Awards - The first Lipton/Modares Fellowship has been awarded to three members of the faculty. The awards were made through a competitive proposal process. Awards recognize programs that promote student-centered innovation. Treasurer s Report Mr. Leung reviewed the financial statements for the eleven months ended May 31, Page 6

6 Total Inflows were $5,368,304 with outflows at $2,167,637 generating a net flow of $3,200,667 and an ending fund balance of $27,124,158. The Statement of Financial Position and the Statement of Activities were reviewed. Executive Director s Report CSULA s President Mr. Button reported that the Trustees of the CSU have announced the new CSULA President - William A. Covino. Dr. Covino is presently the provost at CSU Fresno. Mr. Button also thanked and acknowledged Mr. John Isaacson for representing the CSULA Foundation Board and the University on the Advisory Committee to the Trustees Committee for the Selection of the President. President-designate Covino is planning a series of visits to campus between now and September 1. President-designate Covino comes with strong recommendations and an impeccable background and active involvement in Advancement. President-designate Covino has also expressed an interest in engaging the community and volunteers actively in the life of the institution. CSULA Commencement - The Cal State L.A. community celebrated the achievements of more than 5,700 graduates during its 66th Commencement on June 14 and 15, Terrence James Roberts of the Little Rock Nine was the Friday Commencement speaker and James M. Rosser, president of CSULA, addressed Saturday s Commencement. Other Business As an informational item Ms. Chavez reported the Governor signed the California State Budget Next Meeting The next CSULA Foundation Board of Trustees meeting is scheduled for Thursday, September 26, 2013 at Cal State L.A., Raquel Soriano Board Room. With no further business, a motion was made by Mr. Wong and seconded by Judge Jones to adjourn. A verbal vote as conducted and the motion passed. Meeting adjourned at 12:16 p.m.

7