Volume X, May 2016

Calendar of Upcoming Events

5/26- Important Audit and Tax Updates 6/7- SEPCHE and PAISBOA: Exploring Opportunities for Collaboration 6/28- Small Schools Symposium

PAISBOA Announces Incoming Executive Director

Dear PAISBOA Members,

On behalf of the Board of Trustees of the Philadelphia Area Independent School Business Officers Association (PAISBOA), I am pleased to announce that Mary Agnes "Aggie" Malter, Director of Accreditation at Pennsylvania Association of Independent Schools (PAIS), has accepted appointment as our next executive director effective July 1, 2016, succeeding Emily Miller who has been at the helm for eight years.

Aggie Malter resides in Devon, PA, and graduated from Widener University, Magna Cum Laude with a degree in

Incoming Executive Director Aggie history and Spanish. She holds a master's degree in Education Malter from Penn State University and a Doctor of Education from Widener University. Prior to her work with PAIS, Aggie spent twenty-one years working in Independent Schools. These years were spread between The Agnes Irwin School, where she held various positions ranging from Director of Summer Session, teacher in the Computer Science Department, to Director of Information Services, and The Episcopal Academy, where she was Director of External Programs. She has worked with PAISBOA on the Blackboard Consortium, and for over twenty-five years, she has served on the Board of Directors of the Phi Sigma Fraternity and Foundation. Aggie has also given presentations for PAIS on Effective Communication and for NAIS on using Accreditation as a Transformative Process.

The PAISBOA Board is thrilled to have found a candidate of Aggie's energy and knowledge of Independent Schools. The Search Committee (Mike Noonan, chair, Steve Feld, Mark Gibbon, Carolyn Hapeman and Mark Murray) worked since last fall, and pared down a wide-ranging list of candidates to four semi-finalist candidates. The semi-finalist candidate group was invited for interviews to the PAISBOA Radnor offices, which included interviews with the Search Committee, Andy Mozenter (PAISBOA Strategic Plan Consultant) and PAISBOA staff. Following that process it was evident to all that Aggie Malter would be an outstanding match for PAISBOA.

After a complete review of her qualifications, the interview process (which included a 30-minute presentation by each candidate on an issue affecting independent schools), an analysis report to the Search Committee on her "Predictive Index" (by Springside Chestnut Hill Academy HR Director Liane Faermann), and a check on references, the Search Committee recommended to the PAISBOA Board that Aggie Malter be appointed next executive director. Upon meeting and interviewing the candidate, the board unanimously approved this recommendation on March 21, with the confidence that knowing that the continued development of the PAISBOA mission is in good hands with Aggie.

In her initial letter to the Search Committee, Aggie said, "My countenance and performance will always reflect positively on the association, and my goal is to work congenially and effectively with all stakeholders, as well as with the larger business and educational community in an effort to further the mission and goals of PAISBOA." As she prepares to leave PAIS, she plans to share her strengths in her work at PAISBOA, which colleagues describe as "an optimistic, entrepreneurial leader, strategic thinker, problem-solver, organizer and excellent communicator."

Please join me in welcoming Mary Agnes "Aggie" Malter to PAISBOA. In the coming months, I will be communicating more on the smooth transition from Emily Miller's exemplary leadership to the start of Aggie Malter's tenure.

Sincerely,

Hal Davidow Chair, PAISBOA Board of Trustees

Health Benefit Trust Members Meet to Discuss Self-Funded Health Plan Proposal Bob Mueller, PAISBOA and John Manion, Armstrong, Doyle and Carroll

The PAISBOA Health Benefit Trust Membership met in General Session on Wednesday, May 11 to review its Board of Trustees proposal for a Self-Funded health plan, effective November 2016. The meeting was extremely well attended by over 100 school representatives onsite and 60 more online.

Martha Scache, the PAISBOA HBT Chair from Abington Friends School opened the meeting with a welcome and introduction of the sitting Trustees. HBT Trustee and Board

Secretary Carol Lerner of The Philadelphia School HBT Chair Martha Scache and HBT Executive Director Bob Mueller presented three slates of nominees: for election to three year terms as new Trustees, Cindy Nichols of The Episcopal Academy, Alan Joffe of Perelman Jewish Day School, Elena Pike of AIM Academy, and Jayme Karolyi of The Shipley School; for re- election to three-year terms, Joan Barone of Waldron Mercy Academy and Carol Lerner of The Philadelphia School; and for election to two-year terms on the Executive Committee, Martha Scache as Chair, Joan Barone as Treasurer, and Carol Lerner as Secretary.

Bob Mueller, Executive Director of the Trust, Ms. Lerner, and John Manion of Armstrong Doyle Carroll presented the Trustee's decision to convert from a Fully Insured to a Self-Funded medical plan. In summary, the Trustees proposed a three-year commitment to Self-Funding with a first year rate increase of 11.3% and a backup Plan B to remain Fully Insured for one year with a 14.1% rate increase. The Trustees are convinced that Self-Funding will produce improved delivery of health care to participants at more sustainable rates.

The presenters fielded many questions and heard opinions from HBT members. Robust conversation was had for 75 minutes on the benefits and concerns about Self-Funding. Such notable PAISBOA HBT members as Tom Taft (Germantown Academy), Adam Wojtelwicz (Shipley School), Mark Gibbons (LaSalle College High School), Carolyn Hapeman (Westtown School) and Frank Aloise (SCH Academy) added thoughtful points to the dialogue.

Great care was taken to hear all points of view and answer all questions submitted at or after the meeting. The institutional members were asked to complete a non-binding opinion poll on the Trustee proposal and also submit completed Participation Agreements as quickly as possible.

The meeting was a culmination of more than a year's effort to collect data, obtain cost quotes, analyze results, and determine best paths forward. At the conclusion of the meeting, the Trust is positioned to continue to deliver strong benefit plans for its 19,000 participants.

Retirement Planning Dinners Draw Significant Interest Emily Miller, PAISBOA

Employees of PAISBOA schools were invited to attend two back-to-back Retirement Planning Dinners held on May 9 and 10 at Germantown and Episcopal Academies. Over 150 veteran faculty, staff and administrators heard from a panel of experts about the often misunderstood aspects of the following topics:

 Medicare  Social Security  Wills and Estates  Retirement Funds

Moderated by Mina Fader, CFO at Germantown From Left: Casimir Seweryn, TIAA, Grant Friends School and Chair of PAISBOA's Retirement Holdren, Allied Financial Consultants LLP., Bernice McFadden, Bachmeier, Gudis & Committee, the panelists stressed that making the Associates, and David Conver, Dischell, Bartle right decisions on these aspects of retirement is & Dooley. critical to long-term financial security. They pointed out how inter-related these decisions can be and that there are experts who are trained and credentialed who can help one through the decision making process. Emily Miller, Executive Director of PAISBOA, advised the audience that each person's situation is unique and rather than seeking advice from friends and neighbors, it is important to make an appointment to speak to the professionals.

A packet of excellent information on these topics was compiled and distributed to the attendees as well as the contact information of the panelists. If you would like to have a packet - either for yourself or to keep in your office - contact Colleen Atwood [email protected]. If you would like to view the presenter's PowerPoint slides, visit the PAISBOA Library under "General Programs".

First Meeting with SEPCHE Scheduled for June 7 Al Greenough, PAISBOA

PAISBOA recently announced an initiative to explore possibilities for collaboration with members of the Southeastern Pennsylvania Consortium for Higher Education (SEPCHE) college network. SEPCHE Executive Director Beth Moy has assisted in organizing the first meeting between area Independent Schools and Colleges on June 7

at the PAISBOA offices.

32 PAISBOA schools located in close proximity to the 8 SEPCHE colleges and universities have been invited to explore collaborative opportunities between the two associations. SEPCHE member institutions are: Arcadia University, Cabrini College, Chestnut Hill College, Gwynedd Mercy University, Holy Family University, Immaculata University, Neumann University, and Rosemont College.

The attending SEPCHE representatives include:

1. Denise Falconi, Director, Teacher Education, Rosemont College 2. Melissa Reed, Chair, Education Department, Immaculata University 3. Jeff Gingerich, Provost and VPAA, Cabrini College 4. Barbara Hanes, Chair, Education Department, Neumann University 5. Kevin Zook, Dean of Education, Holy Family University 6. Heather Pfleger, Dean of Education, Gwynedd Mercy University 7. Angela Tekely, Dean of Lifelong Learning, Immaculata University The partnership between PAISBOA and SEPCHE is based on the belief that collaboration contributes to academic excellence and long term financial sustainability. The goal is to find ways for schools and colleges to work together in a way that is mutually beneficial and productive.

Please address any questions about this initiative to Al Greenough.

Collaboration Grant Applications Flood in at 11th Hour Emily Miller, PAISBOA

It looked like the Collaborative Grant Application Committee would have very few applications to read as late as Wednesday before the May 1 deadline. But, due in large part from coaxing by Al Greenough, a total of 15 applications reached the PAISBOA offices in time to be considered for a grant.

An ad hoc committee has been formed and is comprised of:

Mark Gibbons, Vice Chair, PAISBOA - CFO, LaSalle College High School Barbara Kraus- Blackney - President, ADVIS Bob Gagliardi - CFO, Gesu School Deb Engell - CFO, Holy Child Academy Emily Miller, Al Greenough, and Colleen Atwood - PAISBOA

A rubric was developed outlining the criteria to score when reviewing the applications. The committee members are now reading all of the applications and completing their scorecard and will meet on Wednesday, May 18 to deliberate and grant the awards. $25,000 has been earmarked to fund this first year's effort.

The applications covered a wide variety of interests and topics with funding requests ranging from $2000 to $7500. The requirements include a written report and presentation at this time next year. Business Officers of the schools winning the awards will make up next year's committee.

Stay tuned to see which schools are granted an award and what they will be doing with the funds.

Program on Important Audit and Tax Updates

Join us for a program on May 26 from 10:30 am-12:30 pm at the PAISBOA offices to learn and leverage new ideas to better impact the schools you serve. Bruce W. Braunewell, CPA at CliftonLarsonAllen LLP will present on financial issues shaping independent schools. He will address accounting, reporting, and auditing updates, tax issues, and new revenue recognition standards that can impact your financial statements. This program qualifies for 2 CPE credits.

At the end of this session, you will be able to: Bruce W. Braunewell

 Explain effective and pending standards that are upcoming  Identify key tax questions facing independent schools and how you might answer them  Recognize the key factors that help determine revenue recognition for various types of gifts/contributions that your school might receive Who should attend:

Chief financial officers, controllers, directors of business and finance, and senior accountants of independent schools.

Click here to register.

Preparation for Small Schools Symposium Al Greenough, PAISBOA

With 14 schools signed up for this year's Small Schools Symposium on June 28, the event is close to full capacity. Participants will take part in the Innovation Lab designed and led by Scott Barron of School Growth, which will be condensed from Barron's typical two-day session to just one 7-hour day. To achieve the goals in the shortened time, participants will do "homework" in preparation, which will include watching three short videos created by Scott Barron. These videos will give important background information about topics to be discussed the day of the symposium.

It is strongly encouraged that schools attend with a team of administrators and a Board member, or a similar team with energy and commitment. The

Scott Barron to Present main value of the symposium is the opportunity for each group to establish at SSS common ground and understanding, so they can work together to create a short range plan to implement over the summer.

The investment in the Symposium is $300/school for a team of up to 5 people. It will be held at The Montessori School in Dresher. Click here to register.

PAISBIG Board Activity - Upcoming Annual Claims Review Robert Pallini, Willis Towers Watson

The PAISBIG Board is set to perform their annual review of the Group's Package and Workers Compensation claims on May 26. The Board has invited Genevieve Cahill, Claims Manager, and Diane Servello, Claims Supervisor, from Utica National Insurance Group to discuss the details of all currently open claims that have a total loss incurred amount over $10,000.

The annual claims review is an extremely important process for the PAISBIG Group. By reviewing the current claims affecting the group, we are better equipped to identify emerging trends that are impacting member schools, and it gives us the ability to provide effective loss control advice which can aid in preventing similar losses from happening in the future.

The reduction in the number of claims, as well as total claims payments, has a significant impact on the stability and the sustainability of the group. By proactively managing the claims experience of the group as a whole, we are able to keep overall insurance costs down, while maximizing the potential for returns to the group by way of dividends.

Expect a follow-up article that will include Case Studies detailing a few of the more interesting claims scenarios as a result of the claims review.

What Factors Impact a School's Decision to Offer Digital Payments? Andrea Chilkott, Diamond Mind

Payment acceptance is one of the most critical business functions at independent schools to ensure financial viability and success, and over 90% of schools offer families some form of electronic payment acceptance.

What are a school's priorities when deciding to accept payments electronically? It goes without saying, of course, that convenience for families is important, and so is the cost to the school for payment processing. But are there other factors to consider?

Diamond Mind surveyed 3,000 K-12 independent schools nationwide and received responses from over 250, a sample size large enough to reflect the trends of the entire market. Specifically, convenience for parents (80%), ease of payment tracking and reporting for school staff (57%) and the cost of payment acceptance and processing (41%) are the three top reasons schools offer payment options. Lowering costs (39%), improved accuracy (31%) and faster time to receipt of payments (22) were also listed as priorities.

When choosing a payment processor for your school, be sure to ensure they can provide a good balance of these top priorities. For more information on payment trends at independent schools, download the Payment Survey Report here.

How to Encourage Positive Retirement Outcomes in Tax Exempt Plans Marcie Carroll, Carroll Consultants

One of the major trends right now in retirement plans is the use of automatic plan design features to encourage plan participation and retirement participation. We have seen a steady increase in adoption of automatic plan design features, at large, in the past few years; however, tax exempt organizations seem to have a different attitude towards the implementation of these strategies. Compared to the general retirement plan population, tax exempt organizations seem to be a bit more split when it comes to measures that would force their employees into retirement contributions. A look at the chart below tells

us that, in summation, only 27 percent of tax exempt plan sponsors currently include some type of automatic plan design feature.¹ Plan sponsors of tax exempt organizations generally view retirement plans as another component of their employee benefits offering; putting the decision-making control in the hands of their employees. In addition, tax exempt organizations tend to be more wary of fiduciary liability; so they prefer to be more hands off.

Tax exempt plan sponsors attitude towards automatic features to encourage retirement plan contributions¹

Retirement Outcome Checklist

- Entice participants to stay Research shows us that the implementation of a company match can actually triple the odds of plan participation.² Because of budget constraints and the rise in healthcare costs, plan sponsors may be hesitant to implement a matching contribution to encourage plan participation.

- Make investment selection easy Make investment decisions easy on participants. Investment decisions can be overwhelming as most participants have little to no investment experience. Be careful not to over inundate them with a large menu of investment options. Instead, offer a limited menu of individual investment options that cover the main asset classes. In addition, offer an off-the- shelf target-date fund to provide participants with a pre-allocated mix of investments based on their anticipated retirement year. Lastly, take it a step further and offer a managed account option in the plan. This provides the greatest degree of direction for participants and allows an experienced third party investment manager to create and manage a pool of investments that most closely aligns with the participant's risk tolerance, expected year of retirement and personal preferences.

Click here to read full article.

Bulletin Board

PAISBOA Website Tip of the Week

Looking for a vendor? Trying to find a vendor for your next campus project? Before you ask the listserv, be sure to check the Vendor Referrals page. Vendors are listed by name and trade, and have been recommended by PAISBOA members. Visit www.paisboa.org/vendorreferrals. Make sure to log in with your username and password. For assistance contact Colleen Atwood.

Westtown School to Present at National Farm to Cafeteria Conference

The National Farm to Cafeteria Conference is in Madison, Wisconsin from June 2-4. Those interested in attending and seeing our friends at Westtown School present are welcome to use the

friends and family discount link to register.

Click here to learn more about the conference.

Suggestion for Summer Reading

SAIS periodically publishes book reviews on timely topics and subjects for Independent Schools and recently suggested "The Art of Coaching Teams," Building Resilient Communities that Transform Schools", by Elena Aguilar.

Team is a popular word, concept and operational unit used in our schools, but the meaning of being on the team is rarely defined. The Art of Coaching Teams is a manual for building effective teams, and according to the review is a must-read.

Click here to read the review by Josh Lutkus, Dean of Students, Gaston Day School, Gastonia, NC.