WEST HILLS COMMUNITY COLLEGE FOUNDATION
9900 Cody St.
Coalinga, CA 93210
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MINUTES OF THE INVESTMENT AND FINANCE COMMITTEE
August 21, 2012
Call to Order
Investment and Finance Committee Present:
Ken Stoppenbrink, Chief Financial Officer, West Hills Community College District
Ernest Drewry, Community Director
Leonard Falter, Chief Financial Officer, West Hills Community College Foundation
Nina Oxborrow, Community Director
David Silviera, Community Director
Don Warkentin, President, WHCL
Others Present:
Frances Squire, Executive Director, West Hills Community College Foundation
Olga Keough, Accounting Technician
Don Forth, Foundation President
Frank Gornick, Chancellor
Steve Zeiser, Renovatio Asset Management
Peter J. de Marigny, DITMo Portfolio Manager
Matthew Zeiser, Renovatio Asset Management
Mike Urner-Wells Fargo Advisors
Dave Ivarie-Morgan Stanley
Public Comments
There were no public comments.
Presentations
Presentations were made by two financial groups interested in serving as the foundation’s financial advisors. Each group was allowed 45 minutes of time on the foundation agenda, which included time for questions and answers. The presenters were:
10-10:45 a.m.--Steve Zeiser, Renovatio Asset Management and Peter J. de Marigny, DITMo Portfolio Manager
11-11:45 a.m.-- Mike Urner-Wells Fargo Advisors and Dave Ivarie-Morgan Stanley
Action Items:
A. Minutes of the July 12, 2012, meeting of the Investment and Finance Committee of the WHCC Foundation were approved on a motion by Don Forth seconded by Nina Oxborrow.
B. Consideration of recommendation on next action for foundation financial advisors—After the two presentations, consensus was reached that a third presentation should be heard by the Commonfund representative at an investment committee meeting at 8:30 a.m., prior to the Sept. 12, 2012, Board of Directors meeting. Frances Squire will contact the Commonfund representative to schedule the appearance.
C. Statement of Investment Policy, Objectives and Guidelines, WHCC Foundation—
a. Len Falter and Frances Squire noted that the proposed change will bring the investment guidelines into alignment with the Uniform Prudent Management of Institutional Funds Act Policy that has been recommended by the foundation’s accounting firm of Vavrinek, Trine, Day & Co., LLP. The changes recommend an annual review of the investment policy and a distribution rate of 5% for endowments. It provides for the discretion of not awarding scholarships in years in which the endowment principle would be eroded. Based on a motion by Don Forth, seconded by Ken Stoppenbrink, the investment committee voted to recommend to the full WHCC Foundation Board of Directors the following change:
The Statement of Investment Policy is required to be reviewed annually by the Foundation’s Board of Directors.
SCOPE OF THIS INVESTMENT POLICY
This statement of investment policy reflects the investment policy, objectives, and constraints of the entire WHCC Foundation.
Furthermore for the purpose of this investment policy it is understood that endowment accounts are invested in the same manner as general foundation funds but are tracked separately for accounting purposes. Additionally the foundation has a policy (the spending policy) of distributing to beneficiaries each year a percentage of the endowments funds average fair value over the prior 12 quarters through the year-end preceding the year in which the expenditure is planned. In establishing the percentage for distribution, the foundation considers the long-term projected return on its endowment. The foundation has established a distribution rate of 5% and expects over the long term the current spending policy will allow its endowment to grow at an average of 3% annually. Actual returns in any given year will vary from the amount distributed. This spending policy supports the foundation's objective to maintain the purchasing power of endowment assets.
The endowment spending policy is reviewed annually by the Foundation’s Board of Directors, which has the discretion of not awarding scholarships in years where the endowment principle would be eroded.
D. Uniform Prudent Management of Institutional Funds Act Policy—
a. The foundations accountants, Vavrinek, Trine, Day & Co., LLP, have recommended that the foundation implement a UPMIFA policy. Draft language was provided that allowed for WHCC Foundation personalization. On a motion by Ernie Drewry, seconded by Ken Stoppenbrink, the finance committee voted to recommend to the WHCC Foundation Board of Directors the policy as presented for consideration at the Sept. 12, 2012, meeting of the WHCC Foundation Board of Directors.
E. 2012-2013 Budget
a. Frances Squire noted that the budget has not been previously approved but was reviewed earlier. Current changes reflect the reduction in foundation funding from the MAA accounts and from the fees it charges on the international student consortium accounts. In the past, fees on the international accounts were charged based on their proposed budget. The consortium has requested a change to have the fee based on actual expenditures. On a motion by Ken Stoppenbrink, seconded by Nina Oxborrow, the proposed 2012-2013 foundation budget was approved by the finance committee for recommendation of approval by the WHCC Foundation Board of Directors at its Sept. 12, 2012, meeting.
Adjourned: 12:35 p.m.