The Excelsior Rotary Foundation Board of Trustees Meeting of September 25, 2012 at Bayview Event Center

The Meeting was called to order by Chair Don Draayer at 1:11PM at the Bayview Event Center on Tuesday, September 25, 2012.  In attendance were trustees Don Draayer, Dave Peterka, Terry Roeser, Jim Olds, Steve Frazier, Financial Audit Representative Jerry Brecke and Excelsior Rotary Club President Tim Litfin. (1.0)

The Proposed Agenda was accepted with the inclusion of the Band Shell Update by Terry Roeser. (2.0)

The Minutes of the July 24, 2012 were accepted as written by unanimous consent. (3.0)

Chair Draayer deviated from the printed agenda to allow Jerry Brecke to give the Audit Committee’s Report.  Brecke reported that the Committee had completed its work and had no recommendations for the Foundation resulting from their review.  They found the transfer of the $75,000 to the Lee Paris Investment Fund to be consistent with approved accounting practices and all the filings with the State and Federal Agencies to be in order.  The conclusion of the Audit Committee was that of a clean audit for the Foundation.  Brecke noted that the Audit Committee would meet in the next week and submit its’ signed report to the Foundation in writing.  Chair Draayer thank Jerry and the Audit Review Committee (Dick Osgood and Hugh Gilmore) for their work and the importance of having a “clean audit” in gaining the acceptance and trust of the Excelsior Rotary Club Membership.  The Audit Report was accepted by acclamation. (4.0)

Terry Roeser was called upon to give the Foundation Trustees an update on the Band Shell Feasibility Study.  She reported that the study had been suspended and that the portion of the original payment of $4,000 from each club that is not yet spent ($1,500) would be returned to the respective Foundation accounts.  The $1,500 to the Excelsior Foundation will be put back into the Lee Paris Interest Fund.  The entire Band Shell Project will now be handled by the City of Excelsior and not the multi-community philanthropic committee as originally envisioned. 

Next Jim Olds was called upon to give the Financial Report (4.0).   Olds reviewed the Bank Report (4.1) with the Directors and circulated a copy for members review.  The Balance Sheet was reviewed and shows Total Current Assets to be $28,050.03.  In turn the Profit & Loss Detail was handed out to members covering July 1 through September 25th.  Olds indicated that he had not received any investment reports to be included in the Bank Report. (4.3)  Chair Draayer commented that Ann Wengronowitz will speak at the Oct. 23rd meeting about the Investment Policy and our current investment profile.

Olds indicated that the outlays to colleges had been made that were previously approved and that there had not been any new requests for scholarship payments or any other funding requests (4.4). 

Olds’ requested that the Directors also review the situation with the Scholarship for Megan McCrady.  Megan’s father had requested that the scholarship to her be made to her personally for books and a computer and not to go through the Normandale Registrar as this would reduce her financial aid.  To this end the Club Board had voted to make payment to Megan under these circumstances and she would be required to submit receipts for the expenditures and that it would be taken out of the Happy Bucks Education Fund for later consideration of the Foundation at its fall meeting.  Treasurer Olds affirmed that Megan had submitted the appropriate receipts and paper work for the $1,500.  The Directors discussed the circumstances and decided that this was not a violation of the Foundation’s non-profit status and could be explained to the IRS if it came under review.  To this end Terry Roeser made the Motion and Seconded by Dave Peterka to reimburse the Happy Bucks Education Fund $1,500.  Motion passed unanimously.

Dave Peterka made the motion and seconded by Terry Roeser to accept the Treasurers report and the motion was passed unanimously (4.0).

Under Old Business (5.0) Chair Draayer reported that all of the Foundation Advisors that were nominated at the July 24th meeting have affirmed their commitment to serve for the 2012-13 fiscal year.  Joe Froehling and Dean Friesen as Financial Advisors, and Gary Thompson as Legal and Policy Advisor (5.1).

Chair Draayer reported that the Budgetary Distinction Overview Sheet that summarizes both the Club and Foundation funding distinctions has been reviewed and accepted by the Club’s Board of Directors for subsequent use at the October 23rd Foundation Annual Report meeting(5.2).

Chair Draayer also reported that Ann Wengronowitz will address the members about the Foundations Investment Policy and give an investment update as part of the Foundation annual Report on October 23rd (5.3)

Steve Frazier reported that a site page for the Foundation has been set-up for Foundation matters.  Scott Zerby and Frazier have set it up but it currently has limited ability for the storage of Foundation documents.  Steve will approach Club Runner to expand the site’s capabilities and allow for electronic storage of important documents such as Foundation Bylaws, Minutes, Financial Reports and Investment Policies.  Frazier will update the progress at the next meeting.  Frazier also reported that currently the Minutes of the Foundation are reported on the Home Page after acceptance and that will continue until site update occurs (5.4)

New Business (6.0) was a brainstorming session on the program for the Foundation Annual Report on October 23rd.   Chair Draayer distributed a handout that included a Five Year Perspective sheet of Foundation Leadership, Infrastructure, Advisors and supporting overview documents (i.e., Budgetary Overview Sheet and a Presidents Fund Analysis sheet of the Foundations distribution of charity dollars).

A lengthy discussion transpired over the Presidential Fund Analysis sheet that shows the funding allocations for each of the last six Presidents and their fund carryover to the next President.  Chair Draayer commented that he did not have an updated version of the Fund Analysis sheet.  Treasurer Olds indicated that there was some confusion about the consortium grant enacted when Tom Anderson was Rotary President and that clarification would was needed to determine the correct expenditures from the Love and Litfin Presidential Funding Accounts.  Director Peterka suggested a meeting be set-up with former Treasurer Dean Friesen, Treasurer Olds, Chair Draayer and President Litfin to determine the expenditures to each of the succeeding presidential accounts.  He further emphasized the usefulness and importance of this Presidential Fund Analysis summary sheet for both members review and that of the role of the Foundation in funding projects.  Treasurer Olds volunteered to set-up the meeting and to get the Presidential Fund Analysis sheet updated for the October 23rd Foundation Report.

The entire Board agreed that the Five Year Perspective outline and supporting documents as prepared by Chair Draayer was right on point and would make for an excellent Foundation Report to the Club Membership.  Members also affirmed the desirability of having Ann Wengronowitz there to gain visibility and trust with the members.

Chair Draayer requested that Secretary Frazier take Minutes of the Foundation Annual Report on October 23rd for the permanent record and fulfillment of the bylaws.

The next Board of Trustees Meeting will be held on Tuesday, November 27th at 1:00pm at the Bayview Event Center.  Topics for future meetings will focus on Record Retention and policy formation on Conflict of Interest as it relates to the Foundation.

Chair Draayer thanked everyone for their participation and ideas and entertained a motion for adjournment (10.0).  Peterka moved and Frazier seconded a motion for Adjournment until November 27, 2012 at 1:00PM at Bayview Event Center.  The motion carried unanimously. 

Respectfully submitted by Steve Frazier, Excelsior Rotary Foundation Secretary