California State University, Los Angeles Foundation

Transcription

1 California State University, Los Angeles Foundation BOARD OF TRUSTEES MEETING Thursday, January 28, :30 a.m. California State University, Los Angeles Golden Eagle, 3 rd Floor Raquel Soriano Board Room AGENDA Omel Nieves, Presiding 11:30 a.m. Call to Order Omel Nieves, President Welcome Omel Nieves 1. President s Report Omel Nieves 1a. Approval of draft September 24, 2015 meeting minutes Action Item: Approve the September 24, 2015 Board Minutes 2. Cal State LA President s Reports President William A. Covino 2a. Introductions (1) Mike Garrett, Executive Director for Intercollegiate Athletics (2) Daniel Garrett, Assistant Director for Intercollegiate Athletics 2b. Directive to bar investments in private prisons Action Item: Direct the Foundation s investment management consultant, The Stone-Beck Group, to eliminate and bar Foundation investments in private prison corporations 3. Committee Reports 3a. Audit Report Dwight Nakata (1) 2014 Exempt Organization Returns (Form 990, CA Form 199, CA Form RRF-1) Action Item: Approve the Foundation s 2014 Exempt Organization Returns (Form 990, CA Form 199, CA Form RRF-1) from July 1, 2014 to June 30, b. Development and Gift Acceptance Committee Jorge Ramirez (1) Fundraising Report Ending December 31, c. Governance Committee William Lewis (1) Nominations for new board members 3d. Investment and Finance Committee (1) Portfolio Update (2) Projected Distribution Options for Action Item: Approve Projected Fiscal Year Distribution to Account Holders 4. Treasurer s Report Mae Santos 4a. Unaudited Financial Statements Ending December 31, 2015

2 5. Executive Director s Report Janet S. Dial 5a. Personnel Updates 5b. Annual Chancellor s Report: University Advancement Plan 5c. Auxiliary Organizations Association Conference Debrief Susana Moreno 6. Next Meeting 6a. Thursday, April 28, :30 a.m. / Cal State LA Golden Eagle Raquel Soriano Board Room 7. Adjournment Action Item: Approval to Adjourn Upcoming Events 1/28/ 2016: U.S. Poet Laureate, Juan Felipe Herrera, 2016 Jean Burden Poetry Reading Series 2/12/16: Date Night at Cal State LA 3/3/16: City Hall Alumni Event 3/11/16: Donor Recognition 3/12/16: President s Council 3/14/16: CSU New York/Tri-State Alumni Reception 3/16/16: CSU Congressional Delegation day (Hill Day), D.C. 4/21/16: Pat Brown Institute Annual Dinner 4/29/16: Honors Convocation 5/12-14/16: Eagle Con 6/10-12/16: Commencement 10/22/16: Billie Jean King and Friends Gala Foundation Board of Trustees Meeting January 28, 2016 Page 2

3 California State University, Los Angeles Foundation BOARD OF TRUSTEES Meeting Minutes - DRAFT Thursday, September 24, :00 a.m. University-Student Union, Room 102 Alumni Association and Office of Annual Giving 11:30 a.m. Raquel Soriano Board Room, Golden Eagle Present: Absent: Staff: Guest: Lisa Chavez, William A. Covino, Janet Dial, Yoshiko Fong, Jeanette Gordon, Michael Hagerthy, John Paul Isaacson, Dwight Nakata, Omel Nieves, Jorge Ramirez, Frank Saito, Mae Santos, Nancy Warter-Perez, Mongwei Wee, Tony Wong William Lewis, Leila Ricci, Molly Talcott Thomas Leung, University Controller Susana Moreno, Fiscal Coordinator, University Advancement Mario A. Perez, Associate Vice President for University Advancement Jane Rhee, Administrative Assistant, University Advancement Eduardo Ramirez 11:00 a.m. Maria Ubago, Executive Director of Alumni Association and Jill Boline, Director of Annual Giving provided a departmental tour of their offices, programs and staff in University-Student Union 102. John Paul Isaacson called the meeting to order at 11:44 a.m. President s Report John Paul Isaacson Mr. Isaacson announced he will be moving out of state before the end of the year, and this September meeting will be his last board meeting attendance. Meanwhile, he explained that there will be transition in leadership facilitated by management. Approval of Minutes The draft of the June 25, 2015 Board of Trustees meeting minutes was presented for review and approval. Michael Hagerthy presented a correction that he was not present at the June minutes, but was recorded seconding a motion on page 3. With the addition of correcting this error found on page 3 as presented, a motion to approve the minutes of June 25, 2015 Board of Trustees meeting was made by Nancy Warter-Perez and seconded by Yoshi Fong. University President s Report President William A. Covino President Covino welcomed the Trustees to the first day of the last fall quarter at Cal State LA. This year s fall quarter experienced the highest enrollment of incoming freshman, as well as, transfer students. He also reported that in measuring 6-year graduation rates, Cal State LA has increased from 37% to 45%. This is due to academic advisement improvements, average course load increases, and the scheduling of classes more effectively through the day, as well as, throughout the week. As this is the last quarter system academic year, the Fall academic year 2016 will begin in August. Page 1 of 4

4 California State University, Los Angeles Foundation President Covino presented the new branding video that was shared at Monday s University Convocation. The new theme accompanying the new brand is Pushing Boundaries. He elaborated on the design and creation of the new brand. He reported that the new downtown campus on 8 th Street and Grand Avenue will be ready to hold courses beginning winter quarter in January. The classes offered will be from the College of Professional and Global Education, catering to the downtown business community and residents. Non-certificated/ degree courses will be offered at a later date. Committee Reports Audit Committee GAAP Audit Report Macias Gini & O Connell, LLP advisor, James Godsey, presented the annual Independent Auditor s Report, Financial Statements and Supplementary Information, from July 1, 2014, ending June 30, Mr. Godsey reported they had reviewed the financial statements in depth with the committee members. He highlighted Note 7 ( Fair Value Measurements ), Note 8 ( Endowment Funds ), and Note 9 ( Related Party Transactions ). Mr. Godsey also explained the definition and purpose of the Management Representation Letter. Mr. Godsey complimented Thomas Leung and his staff in providing all the necessary materials and data for this audit in a timely and efficient manner. A motion to approve the Foundation s audited financial statements ending June 30, 2015 as presented by Macias Gini & O Connell, LLP was made by Jeanette Gordon and seconded by Yoshi Fong. Chancellor s Office Scholarship Audit Lisa Chavez reported that Cal State LA, along with four other sister universities was randomly selected by the Chancellor s Office. This audit will review and assess how the university operates and manages scholarships. These are conducted periodically by the Chancellor s Office. There have not been any findings at this time and the audit will conclude by October 21, If there are any findings, they will be presented to management during the exit interview. Management can share the results of this audit with the Trustees at the next board meeting. Governance Committee Tony Wong ASI Representative for Student Trustee On behalf of the committee, Mr. Wong presented Eduardo Ramirez to serve as the Foundation s Student Representative. The committee has reviewed Eduardo Ramirez resume, whom the ASI Board of Directors has presented. It is the committee s recommendation for board approval of Mr. Ramirez to serve on the Foundation Trustee for FY Mr. Ramirez was excused from the meeting room. There was a brief discussion on the procedure of the Foundation Student Trustee. Motion for Eduardo Ramirez to serve as the Foundation Student Representative for FY , commencing September 24, 2015, was made by Lisa Chavez and seconded by Jorge Ramirez. Foundation President Nomination and Election On behalf of the committee, Mr. Wong presented Omel Nieves to serve as the Foundation President. It is the committee s recommendation for board approval of Mr. Nieves to serve as the Foundation President, commencing September 25, 2015 as part of Mr. Isaacson s leave from office. Mr. Nieves was excused from the meeting room. Motion to approve the committee s recommendation to approve Omel Nieves as the Foundation President, effective September 25, 2015, was made by Mae Santos and seconded by Nancy Warter-Perez. Page 2 of 4

5 California State University, Los Angeles Foundation President Covino shared Mr. Nieves previous successful fundraising efforts with another sister CSU foundation (Fresno State), and how Mr. Nieves expressed his interest in being involved with Cal State LA s Foundation when President Covino took office at Cal State LA. Audit Committee Chair for FY The board was provided an updated list of the committee assignments that included Dwight Nakata as chairperson for the Audit committee. This updated assignment reflects a followup discussion from the June meeting when Mr. Nakata joined the board. It is the committee s recommendation for board approval of this nomination. Motion to approve Dwight Nakata to serve as chairperson for the Audit committee for FY was made by Michael Hagerthy and seconded by Mongwei Wee. Updated Committee Assignments Mr. Wong asked the Trustees to review the updated committee assignment for any edits or corrections. This list was compiled based on the board s preferences to serve for FY Motion to approve the updated committee assignments was made by Yoshi Fong and seconded by Jeanette Gordon. There was an inquiry of who will serve as chairperson for the Investment and Finance committee and Mr. Isaacson responded that this nomination and election has been deferred at this time, as he will still be participatory in committee meetings through the end of December. Development and Gift Acceptance Committee Jorge Ramirez Fundraising Report Mr. Ramirez deferred to Dr. Dial who reported on a record $9.2M in philanthropic support for fiscal year ending June 30, She highlighted some major gifts, such as the $1.6M gift from Erika Glazer which comprised of her gift to the Erika Glazer Dreamers Resource Center, representing only one of two privately funded dreamers resource centers throughout the state of California. The Sikand Foundation gifted $1M, which established an endowed fund for faculty research in the area of urban sustainability, which will be enhanced through the College of Engineering, Computer Science and Technology. Cal State LA also received significant gifts towards the Rosie Casals and Pancho Gonzalez Tennis Center, notably a half million dollar gift to name the Learning Center after Tam O Shaugnessy and Sally Ride. Lastly, there were five significant estate gifts which the university received $1M, ending June 30, Dr. Dial reported that the new fiscal year is already at $1.3M in new pledges to the university. Investment and Finance Committee John Paul Isaacson Investment Report Mr. Isaacson reported that this past year experienced a volatile financial environment, and the endowment fund is currently at $28.5M, which is half a million (1.8%) decrease from the beginning of the calendar year, but also noted that the S&P 500 has experienced a 2.9% decrease and the Dow nearly a 5% decrease in a comparable timeframe. Overall, the portfolio has performed well. Mr. Isaacson also reported to the board of a manager replacement within the portfolio due to lack of expected performance. Wells Large Cap Growth has been consistently performing below the benchmark, thus the committee agreed with The Stone-Beck Group s recommendation to replace Wells with Alliance Bernstein. Investment Manager Request for Proposals Mr. Isaacson stated the contract with The Stone-Beck Group terminates June 30, They were provided only a 3 year contract at the time due to anticipated leadership transitions. On behalf of the committee, Mr. Isaacson reported that the committee will further discuss whether they would like to offer The Stone-Beck Group an additional 2 years at this time, which would expire their Page 3 of 4

6 California State University, Los Angeles Foundation services June 30, 2018, and further discuss the request for proposal procedures. The committee discussed creating an investment statement of the Foundation goals, or a document of guiding principles. The committee will return to the board with next action steps after further discussions. Treasurer s Report No Report. Executive Director s Report Janet S. Dial Dr. Dial thanked John Isaacson for his years of service on the Board and active participation in the university, and acknowledged his guidance and support during his years of service. She shared with the board an illustration of the collaborative effort between the different departments when stewarding a donor and securing a gift. Recently, there was a gift that was secured accompanied by a signed agreement in the Advancement Office within a week, and that was due to the quick and efficient collaboration and communications between the annual fund, alumni office, and major gift development team. She also reported on changes in personnel, noting that in late July, there were two staff members who decided to leave the university, and these two positions are now open and are under active recruitment. Under the management of Mario Perez, the Associate Vice President, the new development team has been able to secure the highest productivity in its history in major giving here at Cal State LA and we look forward to FY Upcoming Events/ Save the Dates Dr. Dial announced fall Advancement upcoming events, one of which is a new relationship with the Women s Heart Alliance and the Clinton Foundation for a pilot launch program for women s heart health and wellness. In partnership with Mind Matters, our campus initiative, there are events throughout the weekend of Oct. 2 nd through Oct. 5 th, including a code-a-thon, an awards ceremony, and then a panel discussion, including the U.S. Surgeon General. There will be wellness screenings on the walkway and other activities on campus. The first reunion event will be held on Friday, Oct. 23rd for the Class of 1965, with a luncheon and induction into the Half-Century Club. This will become an annual event, celebrating alumnus of 50 years and there are plans to create a 25-year alumni event, to eventually create a reunion weekend event. The morning on Oct. 24 th is the annual Billie Jean King Tennis Clinic, and in the evening will be the annual Billie Jean King & Friends Gala at the Langham Huntington Hotel in Pasadena. In between the tennis clinic and the dinner gala, there will be a President s Council meeting Saturday afternoon, Oct. 24 th and on the agenda will be a faculty panel joining the Council for discussion. This year s men s basketball exhibition game is scheduled for October 30 th against UCLA men s basketball team at the Pauley Pavilion. If anyone is interested in attending, please contact the Advancement office. Lastly, on November 1 st, the Alumni Association will be recognizing past lifetime members with a reception followed by a show event at the Luckman Theatre. Trustees were invited to attend this event, as well. The next board meeting is scheduled in the following year, Thursday, January 28, There was no other business. Motion to Adjourn Motion to adjourn was made by Michael Hagerthy and was seconded by Mongwei Wee. Page 4 of 4

7 California State University, Los Angeles Foundation Projection Fiscal Year 2016/17 Distributions as of 12/31/2015 Endow Investment Policy, Section: Spending Policy # of outstanding Month Ended Units Ave/unit 12/31/ ,750, $ /31/ ,707, $ /31/ ,146, $ Overall average per unit $ Target at 3.00% 3.50% 3.75% 4.00% 4.50% Distribution per unit $ $ $ $ $ Projected distribution $ 887, $ 1,046, $ 1,114, $ 1,183, $ 1,342, Current Fiscal Year Activities as December 2015 Income carry forward from PY (6/30/15) 3,478, ,478, ,478, ,478, ,478, FY 2015/16 distributions (924,749.00) (924,749.00) (924,749.00) (924,749.00) (924,749.00) FY 2015/16 operating cost (292,733.00) (292,733.00) (292,733.00) (292,733.00) (292,733.00) 2,260, ,260, ,260, ,260, ,260, CY Investment earning as of December 2015 (1,107,492.00) (1,107,492.00) (1,107,492.00) (1,107,492.00) (1,107,492.00) CY Investment fee as of December 2015 (81,990.00) (81,990.00) (81,990.00) (81,990.00) (81,990.00) Income available for distribution as 12/31/2015 1,071, ,071, ,071, ,071, ,071, Projected distribution for FY 16/17 Eligible Donors $ 887, $ 1,046, $ 1,114, $ 1,183, $ 1,342, Projected Remaining Balance $ 183, $ 24, $ (43,695.27) $ (111,946.20) $ (271,198.38)

8 California State University, C Los Angeles Foundation Detail Statement of Activities - Unrestricted General Fund For Six Months Ended December 31, /31/15 Budget Available Budget Revenue and Support Board authorized operation funding 558, ,509 - Transfer (300) (300) 558, ,509 (300) Expenses Accounting Service 36,980 73,960 36,980 Administrative Service 50, ,872 50,436 Auditing 4,116 17,102 12,986 Audit Fees(Internal) 7,559 7,000 (559) Banking Fees 7,020 11,000 3,980 Dues and Membership 1,100 1,100 Hospitality and Special Event 5,148 15,000 9,852 Legal Expenses 1,752 5,000 3,248 Liability Insurance 4,349 4, Payroll Deduction Planned Giving 11,134 39,000 27,866 Postage Supplies and Services 7,702 15,000 7,298 Travel 2,867 8,000 5,133 University Projects Staff 110, ,000 University Advancement Operations 76, ,000 73, , , ,431 - Revenue and Support over Expense 342, ,131 4

9 California State University, Los Angeles Foundation Financial Summary For Six Months Ended 12/31/2015 Inflows Investment Earnings (1,107,492) Gifts and Contributions 2,449,403 Total Inflows 1,341,911 Outflows Operating Activities: General Fund Operating 216,078 Annual Fund Operating 41,821 Non-endowed Investment 26,338 Investment Activities: Investment Fees 81,990 Scholarship Activities: Scholarship Disbursed Directly 579,787 Agency Distribution 75,748 Others: Campus Program Distribution 131,660 Total Outflow 1,153,422 Net Flow 188,489 Opening Fund Balance 37,102,703 Ending Fund Balance 37,291,192 2

10 California State University, Los Angeles Foundation Statements of Activities For Six Months Ended December 31, 2015 (unaudited) Unrestricted Fund Temporarily Restricted Fund Permanently Restricted Fund General Non-endowed Annual Board Award/Quasi Non-Scholarship Endowment Endowed Total Fund Investment Fund Designated Sub-total Fund Fund Sub-total Fund Investment Fund Sub-total Fund Revenue & support Investment earnings 12,020 (73,069) (61,049) (168,693) (8,213) (176,906) (869,538) (869,538) (1,107,492) Gifts & contributions 154, , , , ,795 1,716,932 1,716,932 2,449,403 Board authorized operation funding 558,509 (265,776) 292,733 0 (292,733) (292,733) 0 Board authorized scholarship funding 0 906,538 2, ,606 16,143 (924,749) (908,606) 0 Administrative fee 66,169 (7,734) 58,434 (8,000) (13,662) (21,662) (36,772) (36,772) 0 Temporarily restricted fund trnsf (300) (74,576) 71,645 (3,230) 14, ,673 (11,443) (11,443) (0) Total revenue and supports 558,209 (187,587) 72,366 (1,424) 441,564 1,184, ,436 1,302,506 1,684,860 (2,087,019) (402,159) 1,341,911 Expenses Scholarship Scholarship distribution 163, , , , ,787 Agency distribution 0 75,748 75, ,748 Personnel expenses 28,642 28, ,642 Campus program distribution 0 138,687 (7,027) 131, ,660 Investment management fee ,990 81,990 81,990 Operating expenses 216,078 26,338 13, , ,595 Total expenses 216,078 26,338 41, , , ,407 (7,027) 623, ,990 81,990 1,153,422 Change in net assets 342,131 (213,925) 30,545 (165,239) (6,488) 553, , ,127 1,684,860 (2,169,009) (484,150) 188,489 Beginning balance at 7/1/15 0 1,158,020 14, ,664 2,098,344 5,196,689 2,075,745 7,272,434 24,253,891 3,478,034 27,731,925 37,102,703 Ending balance at 12/31/ , ,095 45, ,425 2,091,856 5,750,353 2,201,208 7,951,561 25,938,751 1,309,025 27,247,775 37,291,192 3

11 California State University, Los Angeles Foundation Statements of Financial Position For Six Months Ended December 31, 2015 (unaudited) Unrestricted Fund Temporarily Restricted Fund Permanently Restricted Fund General Non-endowed Annual Board Award/Quasi Non-Scholarship Endowment Endowed Total Total Fund Investment Fund Designated Sub-total Fund Fund Sub-total Fund Investment Sub-total 2015/ /2015 Assets Cash 347, ,419 2, , ,603 52, , , , , ,534 Accounts receivable ,152 26, ,261 28,042 Pledge receivable 0 108, , ,500 1,758,500 1,758,500 2,242,000 1,400,000 Prepaid Endowed Investments 850, ,159 2,430,542 2,430,542 23,954,791 1,309,025 25,263,816 28,544,517 29,737,805 Non-endowed Investments 2, ,987 (0) 946,619 3,287,453 1,830,625 5,118, ,064,697 5,934,388 Total assets 349, ,095 55, ,595 2,201,975 5,978,097 2,283,836 8,261,934 25,938,751 1,309,025 27,247,776 37,711,684 37,493,019 Liabilities & Fund Balance Accounts payable & other liab 7,735 10,214 92, , ,745 8, , ,132 74,076 Deposits held for others 0 74,360 74, , ,240 Net assets 342, ,095 45, ,425 2,091,855 5,750,353 2,201,208 7,951,561 25,938,751 1,309,025 27,247,776 37,291,192 37,102,703 Total liabilities & net assets 349, ,095 55, ,595 2,201,975 5,978,097 2,283,836 8,261,934 25,938,751 1,309,025 27,247,776 37,711,684 37,493,019 1). Pledge/Other Receivables 2). Investments 3).Deposits held for others (calsoap) Pledge Other Total Non endowed Endowed Total 74,360 Interest/Others LAIF 123, ,638 Alison Dundes Renteln 9,500 9,500 Marshall Gellar Fn 194, ,573 C.O. Charitable 26,152 26,152 CD 5,154,503 5,154,503 CA Assoc Professional Em 5,000 5,000 LaKretz 508, ,716 Charon & David Sandoval 58,000 58,000 Wallis Annenberg 83,266 83,266 Cunniham Masonic 10,000 10,000 Blackrock Hi Yield Fund 794, ,351 Engineering Family Suppo 5,000 5,000 Cambiar Lr 1,757,276 1,757,276 Jose Gonzales Jr. 676, ,500 Congress 625, ,056 Lisa Oconnor Scholarship 1,000 1,000 Delaware Lg cap 1,745,343 1,745,343 Olga S Orloff Nursing Sch 30,000 30,000 Delaware SM 553, ,857 Orloff II 40,000 40,000 Invesco Intl 2,461,057 2,461,057 Orloff III 20,000 20,000 Lazard Emerging Markets 1,282,549 1,282,549 Pla Latino Forum 1,000,000 1,000,000 Montag Caldwell 1,707,411 1,707,411 Richard & Kay Schellhase 10,500 10,500 RBC SM GR 291, ,930 Robert L Douglass Scholar 1,000 1,000 SBA Commodities 447, ,105 Tennis -Tam O'Shaughnes 375, ,000 Global Tactical 3,492,078 3,492,078 Vito & Jeanette Covino SBA Tips 837, ,101 2,242,000 26,261 2,268,261 SBA Reits 621, ,173 Sys Fin Mgmt 826, ,652 Templeton Global Bond Fund 359, ,656 Thornburg 2,325,511 2,325,511 Wells Lrg 1,933,473 1,933,473 Wells SM/MID 595, ,622 Western Asset-Cor 1,308,395 1,308,395 Core/Fixed Income 1,304,721 1,304,721 Short Duration/Fixed Income 3,274,200 3,274,200 6,064,697 28,544,517 34,609,213 2