Catholic Schools Foundation Board of Trustees Meeting October 27, 2016
3:00 to 5:00 PM
Wilmer Hale 60 State Street Boston, MA
Agenda
I. Welcome Bill Mosakowski
II. Opening Prayer Fr. Marc Bishop
III. Approval of Minutes from June 16, 2016 (Tab 1) Mike Rogers
IV. Committee on Trustees (Tab2) Jack Regan
V. FY17 Management Goals and Staffing Mike Reardon
VI. FY17 Board Goals (Tab 3) Bill Mosakowski
VII. Committee Goals and Reports Committee Chairs a. Allocations (Tab 4) b. Advancement (Tab 5) c. Finance, Investments and Audit – (Tab 6) MOTION
VIII. 3-5 Year Priorities Mike Reardon
IX. Executive Session Trustees
Next Scheduled Meeting March 23, 2017 St. Julia Parish Hall Weston, MA 2PM – 4PM Pastor Principal Reception 4PM-6PM
Tab 1
Catholic Schools Foundation, Inc. Minutes of the Board of Trustees Meeting
June 15, 2016
MINUTES
Members of the Board of Trustees in Attendance: Miceal Chamberlain, Rob Cunjak, R.J. Dourney, Kathryn Everett, Brian Gallagher, Richard Henken, Christine Komola, Peter Lynch, William Mosakowski, Rev. Paul O’Brien, Jack O’Connor (phone), Steve Principe, Jack Regan, John Remondi, Natalie Sanders (phone), Eileen Shapiro, Craig Tateronis and Tim Tully.
Others Attending: Megan Adzima, Noel Dixon, David Foley, Susan Gartside, Amy Iseppi, Hillary Laggis, Kathleen Mears, Rob Morrissey, Michael Reardon, Gina Rindfleisch.
I. Welcome
Bill Mosakowski thanked everyone for attending the meeting and thanked Jack Regan for hosting at Wilmer Hale.
II. Opening Prayer
Mr. Mosakowski introduced Fr. O’Brien to open the meeting with a prayer.
III. Nominating Report
The agenda was amended to begin with the Nominating Committee as three of the five candidates for election were present for the meeting.
Mr. Mosakowski thanked Jack Regan for his leadership of the Nominating Committee and the members of the committee for an excellent process. He went on to recognize the retiring trustees, Katie Everett, Monsignor Kelley and John Erikson for their service, dedication and commitment to the students and to the CSF Board. He also thanked Brian Gallagher and Rick Henken for their many years of service as the officers. Christine Komola is being nominated to be Treasurer and Mike Rogers nominated to be Clerk.
Katie Everett told the Trustees it has been a wonderful opportunity for her to serve as a Trustee of CSF. She said CSF is well positioned to help more students. Ms. Everett indicated she would continue to support the work of CSF and be a resource.
Mr. Regan outlined the Nominating Committee process and commented on the quality of the approach taken. He then summarized the five nominees; full bios were also included in the materials.
Mr. Regan motioned to elect the following candidates to the Board of Trustees for a term of 3 years: Mrs. Tchintcia Barros Rev. Marc Bishop Mr. Noel Dixon Mr. David Foley Mr. Rob Morrissey
There was a second to the motion and all were in favor of approving all five nominees as Trustees for a three- year term. The Trustees-elect present were invited to join the rest of the meeting and asked to say a few words about their background and the reason they want to be involved with the Catholic Schools Foundation.
Mr. Regan also moved that the following Trustees be elected as officers of the Catholic Schools Foundation:
William Mosakowski, President James Mooney, III, Vice President Christine Komola, Treasurer Mike Rogers, Clerk
There was a second to the motion and all were in favor of approving the slate of officers presented above for terms of one-year.
IV. Approval of Minutes from March 31, 2016
Mr. Henken asked for any comments or questions relative to the minutes from the March 31, 2016 Board meeting. With no comments, those minutes were unanimously approved.
Mr. Henken noted that he will be stepping down as the Clerk and expressed his gratitude for the opportunity to serve and affirmed his continued passion for this work.
V. Executive Director’s Report
Before proceeding with his report, Mr. Reardon invited Hillary Laggis to review the Trustee Portal features on the website. Trustees were encouraged to make use of this portal to access meeting and other Board materials. A brief video with highlights from the year followed.
The complete report contained in the materials was referenced. Mr. Reardon noted that a lot had been accomplished in the past year but there is still a lot more to do. The significant shift in the Elementary Scholarship Allocations process was the biggest change during the past year and the new process continues to help ensure good planning. He thanked the Board for their support of this one to one scholarship plan and indicated that one year later a lot has been learned and will be learned to help inform best practices.
The FY17 draft goals were reviewed. It was noted that these goals were drawn from the mission statement and operating principles and informed by the visioning meetings held with each trustee. Mr. Reardon said that FY17 draft goals have more emphasis on fundraising and long term financial planning and the ability to protect current grants while looking for opportunities to make measurable impacts. The Committee and Board goals are aligned and create a strong and cohesive base from which to build.
Mr. Mosakowski expressed his appreciation for the efforts of the committees and their alignment towards the organizational goals. A more focused review of progress against goals will be undertaken during the Board meetings in FY17 to demonstrate progress or challenges during the year.
The report concluded with a short video created by Hill Holiday with outtakes from the Dinner video.
VI. Other Committee Reports Committee Chairs
Board Officers
Mr. Mosakowski motioned to affirm the mission statement and operating principles as presented with no recommended changes. The motion was seconded and unanimously approved.
Allocations Committee
Mike Rogers the Allocations Committee chair was unable to attend and Megan Adzima was asked to give the Allocations report. Ms. Adzima began her report by thanking the Allocations Committee and said the Committee had two great successes:
A more defined grant review process which was very beneficial to the schools A strong set of data to with which to work
She referred to the FY16 detailed summary of the elementary and high school scholarship grants and non- scholarship support presented in the Board materials. The Allocations committee had a successful year with the new grant evaluation process and review of consistent demographic data, which will provide a base to measure growth and change moving forward.
The first full year of one to one scholarship programs at the elementary school level, was completed and received positive feedback from schools because better stability and planning for the schools. Clearly defined processes and communications have led to a solid, stable, and clearly defined scholarship program.
Data on the 8th grade graduates and the graduating seniors is included in the materials. Stronger student tracking and data will allow for a better understanding of the K-12 continuum. The plan is to engage and track high school graduates through email and social media and coordinate with the Catholic Schools Office as they are work with the National Clearinghouse for student data and the implementation of their student information system.
The priority for the committee next year will focus on building a K-12 continuum and the Foundation’s funding guidelines and priorities. The Allocations Committee is requesting that the Board vote on the funding guidelines as presented with no changes at this time. Mr. Mosakowski motioned for the approval of the current funding guidelines as presented. The motion was seconded and with no objections raised the motion was approved.
Finance Committee
Christine Komola gave the report from the Finance Committee. The operating budget through April 30, 2016 was presented, it was reported that the May numbers were not completed in time for the meeting. It was reported that things are in line and there are no concerns.
A new operating performance measure was presented. This document will become the base for long range- planning and provides a better look at performance relative to intent. This new performance measure will replace the current financial presentation in use at Board meetings. This new report does not replace the GAAP reporting that the Finance Committee reviews, but intends to better match intent with outcome on a fiscal year basis while creating a baseline for modeling.
The Investment report through of May 31st was also reviewed. CSF investment pool is ahead of the S&P 500 by 10 basis points. The Investment Committee is working to restructure its reporting and meetings to better focus on questions of asset allocation and performance. The draft goals for the Investment Committee were included in the back of the packet.
The proposed FY 17 budget which was included in the material was presented. It was noted that the scholarship budget was approved in the fall and the operating budget process begun in December. The budget is project based and the Finance Committee is kept informed as the process moves along.
Ms Komola moved that the FY17 budget be accepted as presented. This motion was seconded and unanimously approved.
Before moving to authorize the use of any calculated surplus, Ms. Komola indicated that this exercise should be undertaken, but it should be done in the context of the long range financial planning exercise and a larger conversation at the October Board meeting
Ms. Komola moved to authorize the Finance Committee to reserve any portion of the operating surplus in excess of $100K for use in FY17 provided the following financial metrics are reviewed and an update will be provided at the October Board meeting. Current year performance against budget (operating surplus/deficit) Current year GAAP performance (to avoid spending reserve funds which would increase expenses during an economic downturn)
The motion was seconded and unanimously approved.
Advancement Committee
Mr. Craig Tateronis, the chair of the Advancement committee asked Gina Rindfleisch to give the current Advancement update.
Fundraising
Mrs. Rindfleisch told the members that the Development Staff is working diligently to collect outstanding pledges and renewed gifts from individuals before the close of the fiscal year. She said on a cash basis, total income is up 6% year over year. On a commitment value, total income is up 2% and 3% in the ICSF. The ICSF is at 111% of budget.
A decision was made not to hold the Back to School Cup Golf Tournament this year. Instead, the focus will be heavily on building relationships and bringing in key new donors. She noted Board support is necessary for this to be successful.
CSF is looking at the staffing needs and assessing the value of hiring a new development person in order to mitigate the risks identified at the last Board of Trustees meeting and in determining how CSF can increase growth in the future.
The Advancement Committee is looking to grow and there are several candidates we hope will join the Committee for FY17. Mrs. Rindfleisch said to please let her know if you know of anyone who would be interested in joining this important committee and who would be a good fit for the Foundation.
Events
The School’s Out Summer Celebration was held on Thursday, June 9th at the John Hancock building. It was attended by ~115 young professionals. The event raised $20,000 and recruited an additional 8 individuals for monthly giving that night. There are currently is 31 Scholarship Angels with a yearly impact of $20,804.
The Annual ICSF dinner with ~1,000 guests, was held on April 14th, and raised a record-breaking $3.2M.
Marketing
A print newsletter was mailed out on June 6, 2016 to all donors. The new website has been a success and the phone volume has significantly decreased due to improved resources on the website. The website has helped to streamline processes and website traffic has more than tripled since the launch of the website in February, to more than 2,000 visits per month.
Volunteer Engagement
The Young Leaders Council is focusing on growing corporate partnerships. Each member has agreed to help set up meetings with people they know at corporations with whom CSF would like to form new or stronger partnerships. The council is sponsoring one high school student this year, and for the next 3 years, to attend Cathedral High School. Some of recent volunteer fundraising events included:
Staples young professionals hosted a 5K race and a silent auction that collectively raised more than $15K and qualified for our matching grant, for a total of $30K In partnership with Cradles to Crayons, Staples stuffed and donated 200 backpacks for our scholars at St. Pius V School and Sacred Heart School in Lynn Staples donated all printing materials for the ICSF Dinner, amounting to $15K in savings. Young professionals at Staples nominated CSF for a grant through the 2 Million & Change program. Mike Swanson of Staples received the Volunteer of the Year Award at the School’s Out Summer Celebration for his role in growing the partnership.
Mr. Tateronis said it would be a great move to add to the development staff. This additional resource will be extremely valuable in the year of Development for FY17 and beyond. He said the Advancement Committee needs help and to please forward any candidate names along to him or Gina Rindfleisch.
VII. CSO and CSF Alignment Presentation
Before introducing Kathy Mears and Mr. Reardon for an update, Mr. Mosakowski reminded the Board of the CSF operating principles declaration of a desire for a strong central schools office and supporting access to high quality catholic schools for low-income students. To make this happen the relationship with the schools office is critical. Last year at this time, CSF made some significant investments to show support for the CSO and help drive some strategic change as well made some operational changes to help support a central vision for Catholic education.
Mr. Reardon began by thanking the Board for their support and sharing that the relationship with the CSO and Supt. Kathy Mears is strong and communication quite good. This has been critically important during the significant shifts during the year with the elementary scholarship process. It was also reported that the Museum of Science (MOS) partnership has been handed over to the CSO for management and due to their expertise the program has expanded, is scalable and has become a model for the MOS. A similar hand-off is in process for the admissions collaborative (CSAC) and Hispanic recruitment (NRI/NIS) efforts and a similar outcome is anticipated.
Mr. Reardon also shared how good communication with the CSO has generated better data for both organizations and this trend should continue. He also noted that by working with the CSO during the allocation process, CSF can act as a change agent and gave the examples of St. Jude, St. Patrick and East Boston Central. All three schools are now engaged with the CSO in addressing sustainability issues as a result of collaboration with the CSO during the allocations process. The need for CSF to continue to shift from operator to collaborator is critical and will require the shift with CSAC, HRI and City Connects.
The effort to support the CSO was tangible last year with CSF distributing ~$800,000 to the CSO for programmatic and operational investments indicated as priorities by the Supt. Kathy Mears. Mrs. Mears was introduced to offer an update on the alignment from the CSO perspective and to provide an update on the use of the resources granted last year.
Mrs. Mears began by thanking CSF for their financial support and shared planning. She indicated that CSF, CSO and the Lynch Foundation have been working well together to plan. She went on to update everyone on the work being done by her and her staff at the CSO.
She indicated that the Student Information System was the largest frustration of the year and just did not meet the needs of the CSO. Legal action is underway to void the contract. In addition the student communication system implementation was delayed but will be ready to go for fall 2016. Mrs. Mears indicated that the educational assessment tool that was implemented has been extremely successful and informative and will help guide future investments in professional development. It will also provide significantly better benchmarking data.
Leadership development and the ability to attract and retained differentiated learners is priority moving forward and the investment last year has helped create a mentoring program and to pilot some special education programs.
VIII. Executive Session All
With no further business Mr. Mosakowski motioned to have all Trustees present to go to Executive Session for the purpose of discussing the performance of the Executive Director. The motion passed unanimously and all non-Trustees exited.
Respectfully submitted,
Michael Rogers Clerk
Tab 2
Committee on Trustees FY 17 Charge
The Committee on Trustees shall ensure that the CSF Board of Trustees has the necessary membership to carry out its mission and achieve its goals. The Committee shall recommend new trustees and officers for the Board and ensure that all trustees act in accordance with CSF’s charter and by-laws. The Committee shall also act to address any issues of trustee performance, conflicts-of-interest or other Board governance matters, and make recommendations on such matters to the Board and its officers.
Goals
Define and carry out a comprehensive nominating process.
Nominate trustee candidates who fit agreed upon trustee profiles, with an emphasis on increasing gender, racial and industry diversity and on succession planning.
Create and implement a trustee self-evaluation to assess trustee perspectives and surface opportunities for deeper Board engagement.
Actions
Annually present to the Board on the current trustee profiles, terms, and obligations, and the conflict of interest policy Review the target membership of 24 trustees to determine if that number is appropriate relative to current needs of the Board Identify areas of deficiency in representation, including such factors as industries, expertise, and demographics Recommend trustees for appointment or renewal by the June Board meeting Determine a succession plan for officers and trustees with future expiring terms
Nominating Committee Meeting Dates and Topics
November/December February
Review Committee’s goals Finalize target profile for trustees Review trustee profiles and retiring members Review initial candidates for trustees Decision about adding new trustees and target profiles Review retiring trustees Trustee invitation process Candidate review and prioritization Initial discussion about officers for FY 17 Board self-evaluation follow-up Follow up on conflict of interest compliance Board self-evaluation discussion
May
Update on retiring trustees Discuss FY18 goals and process for Committee Vote on officers and new and renewing trustees Board self-evaluation follow-up ActiveUS 158585987v.3 Terms and Areas of Expertise of Elected Board Members
Initial Years as Year Rolled Trustee Expertise Appoint Expires Officer Off Mr. Miceal Chamberlain Finance 2014 2017 0 Mr. Brendan McCarthy Investments 2014 2017 0 Mrs. Natalie Sanders+ Private Investor 2014 2017 0 Mr. James F. Mooney, III* Investments 2009 2017 6 Mr. John J. Remondi* Finance 1992 2017 7 Service time of Ms. Christine T. Komola Business 2011 2017 0 Officer and any Mr. Craig M. Tateronis Law 2011 2017 0 Trustees who Ms. Eileen C. Shapiro Business 2011 2017 0 completed 9 years of service and rolled off Initial Years as the Board need to be Trustee Expertise Appoint Expires Officer reviewed and the Mr. John J. Regan* Law 1994 2018 12 chart updated. Mr. Richard J. Henken* Real Estate 2006 2018 7 Mr. Mike Rogers Finance 2012 2015 0 Mr. R.J. Dourney Business 2012 2018 0 Mr. William Mosakowski* Consulting 2012 2018 3
Initial Years as Trustee Expertise Appoint Expires Officer Mr. Brian J. Gallagher* Accounting 2004 2019 9 Mr. Jack D. O'Connor Business 2004 2019 0 Mr. Rob Cunjak Finance 2013 2016 0 Fr. Paul O'Brien Pastor 2013 2019 0 Mr. Steven Principe Finance 2013 2019 0 Tchintcia Barros Investments 2016 2019 0 Fr. Marc Bishop Clergy 2016 2019 0 Noel Dixon Investments 2016 2019 0 David Foley Investments 2016 2019 0 Rob Morrissey Law 2016 2019 0 Tim Tully Finance 2016 2019 0
Initial Years as Trustee Expertise Appoint Expires Officer *Serve or served as officers. Time as officer does not count towards 9 years of continous service + resigned effective 11.1.16 CSF Committee Assignments 2016/2017
Allocations Audit Advancement Board Officers Finance Investment On Trustees Mike Rogers Dick Dubois + Craig Tateronis William Mosakowski Christine Komola Fergus Shiel + Mr. Jack Regan Msgr. Francis H. Kelley + Brian J. Gallagher Mr. Jack D. O'Connor Mike Rogers Mr. Brian J. Gallagher Gerry Curtis + Rob Cunjak Paul Birmingham Christine Komola Eileen Shapiro Jim Mooney III Todd Cozzens + John Fantozzi + Rick Henken Rob Cunjak Bill Mosakowski Tim McBride + Christine Komola RJ Dourney Greg Fraser + Craig Tateronis Fr. Paul O'Brien Peter Pound + Dick Dubois + Ms. Linda H. Lynch+ Eileen Shapiro William Mosakowski Not yet final Ryan Connolly + John Mahoney + Peter Lynch Miceal Chamberlain Tim Tully Dan DiBartolomeo + Steve Principe Brendan McCarthy Liz Fennell + Bob Reynolds + Chris McConnell+ Kevin O'Leary + Paul Sullivan + Meg Reynolds+ Not yet Final Noel Dixon Tim Tully Jack Sommers+ Fr. Marc Bishop Dave Foley Tchintcia Barros Rob Morrissey
Bold = Chairs + Non- Trustees & Appointed by Cardinal Bold = Chairs ^ Pending confirmation May be joining committee + Non- Trustees & Appointed by Cardinal Sub committees:
Not Assigned CSF Committee Assignments 2016/2017
Corporators Dinner Committee Cardinal Sean Karen Kaplan Paul Birmingham Chuck Clough + Bishop Uglietto Dick Connolly + John Straub Jack Connors + name only JoAnn McGrath John Fish + John Remondi Ted Kelly + name only Robert Kraft + Peter Lynch Thomas May + Carol Meyrowitz + name only Brian Moynihan + name only Bob Reynolds + Ron Sargent + Tom Stemberg + Joe Tucci + Jay Hooley name only Barry Nearhos Joseph Petrowski Robert Popeo Mike Rogers William Teuber Bob Atchinson Digger Donahue Rick Henken Micho Spring
to be edited for FY17
Revised Criteria (October 24, 2016)
Criteria for Membership as a Trustee of the Catholic Schools Foundation
In order to exercise their fiduciary responsibilities and to oversee the performance of the Corporation in conformity with its Article of Organization and By-Laws, Trustees will be expected to do the following:
1. Attend Meetings
Regular attendance at Board and Committee meeting is expected of CSF Board members. Through regular attendance, Board members will be able to provide the continuity essential for orderly deliberations and systematic formulation of policy. If members miss two or more consecutive meetings without good reason, they may be retired from the Board.
2. Committee Involvement and Willingness to Accept Assignments
Board members with specific talents or expertise may be called upon to assist in particular tasks or projects promoting CSF’s mission. The majority of the work of the CSF Board takes place in the Standing and Ad Hoc Committees. Active involvement by each Board member in one or two committees expedites the work of the Board. A Board member’s willingness to assume these responsibilities is highly valued. Members must become active in a committee within twelve months.
3. Donations/Fundraising for CSF
CSF Trustees may choose to fulfill this responsibility to increase the organization’s financial resources in three ways: a) make direct contributions themselves; b) attract other donors and donations; and c) provide or solicit in-kind services. Members are expected to attend the Inner-City Scholarship Fund dinner.
4. New Members
Once a prospective Board member has been indentified, a trustee or someone close to the prospect must review the criteria with him/her to qualify their interest.
5. All members must annually submit a conflict of interest disclosure.
CSF Board of Trustees Current Profile Fiscal Year End 2016
Number of Trustees Giving Level
4 $100K+
3 $50,000 - $99,000
1 $25,000 - $49,999
7 $10,000 - $24,999
3 $5,000 - $9,999
6 $500 - $4,999
Fundraising and Public Relations Expectations Include:
• Provide annual financial contribution to the Catholic Schools Foundation according to Trustee’s means.
• Join in supporting the Catholic Schools Foundation by participating in events when possible, including the Annual Dinner Celebration, Annual Bus Tour, and other events throughout the year.
• Periodically review the staff’s list of prospects to assist in offering contacts and /or make introductions.
• Enhance public image of the Catholic Schools Foundation when opportunities arise.
• Make an effort to promote the work of the Catholic Schools Foundation among friends, family, and colleagues. Consider hosting an event at home or another venue. Catholic Schools Foundation, Inc.
Disclosure of Substantial Interests
Trustee Name: ______Date: ______
Do you, directly or indirectly, have a Substantial Interest in a business entity that in the prior fiscal year (July 1– June 30) had, or now has or seeks in the coming fiscal year to have, a financial or other business relationship with Catholic Schools Foundation? NO [_] YES [_] If yes, please provide the information below: Nature of Name & Name of Nature of Financial Identity of Owner Business Entity Ownership Interest Relationship
Substantial Interest means (i) ownership by you of an interest of 5% or more in a business entity; (ii) annual income or payment, or expected annual income or payment, by you of more than $10,000 from a business entity; or (iii) service by you as an officer, manager, trustee, director, agent or employee of a business entity (except that uncompensated service as a director of a not-for-profit corporation is not a Substantial Interest)
I have read, understand and agree to the Foundation’s Corporate By-Law on Conflict of Interest.
Signature:
ARTICLE XXXX CONFLICT OF INTEREST A trustee shall be considered to have a conflict of interest if he or she (1) has existing or potential financial or other interests that impair or appear to impair his or her independent, unbiased judgment in the discharge of his or her responsibilities to the foundation; or (2) is aware that a member of his or her family has financial or other interest that would impair or appear to impair the trustee’s independent judgment in the discharge of his or her responsibilities to the Foundation. For the purposes of this provision, a family member is defined as a spouse, parent, sibling, child, or any other relative residing in the same household as the trustee. All trustees shall disclose to the board any possible conflict of interest at the earliest practical time. Further, the trustee shall absent him or herself from discussions of, and abstain from voting on, such matters under consideration by the board of trustees or its committees. The minutes of such meeting shall reflect that a disclosure was made and that the trustee with a conflict or possible conflict abstained from voting. Any trustee who is uncertain as to whether a conflict of interest may exist in any matter may request that the board or committee resolve the question in his or her absence by majority vote. Each trustee shall complete and sign a disclosure form provided annually by the clerk of the board of trustees.
2
Tab 3
BOARD OF TRUSTEES FY 17 Charge
The Board of Trustees is elected by the members of the corporation to oversee the operations of the Catholic Schools Foundation. In doing so, the Board maintains a fiduciary obligation to ensure effective management of the organization and its assets at the service of the mission.
Goals Oversee work of Board Committees with regular and consistent reporting against goals to ensure operational effectiveness. Realign staffing to ensure focused growth in fundraising and corporate relations in support of clearly defined objectives while ensuring that the allocations and student tracking are sustainable. Implement the long range financial planning tool that unifies vision for the future with clarity around reserve requirements and providing a simple management report to more accurately report on performance against clearly defined goals. Pilot a K-12 scholarship continuum while establishing strategic non-scholarship investment priorities and moving away from operational responsibility for non-scholarship programs.
Actions Regular review on progress of stated goals of the Board Committees to ensure effective operational oversight. Define and agree upon scholarship and non-scholarship priorities for the next 3-5 years Review of fundraising data and goals necessary to fulfill mission More actively engage alumni in fundraising, prospect identification and cultivation Move to new financial management reporting and projection document Review scholarship and school data in context of CSO vision
Meeting Dates and Topics
October 27, 2016 Review of Board Goals and Meeting Topics Conflict of Interest, term review and giving expectations Staffing review and FY17 Goals Preliminary Scholarship Budget New financial report and model review 3-5 Year priority presentation and current program investments Executive Session – Finalize FY16 ED review
March 23, 2017 June 15, 2017 Update Committee progress against goals Election of Trustees and Officers Update on strategic priorities and cost Catholic Schools Council presentation Annual Report from the Investment Committee Committee progress against goals FY18 Budget and distribution discussion Elementary process, evaluation, budget Executive Session – FY17 ED review process recommendation Program budget recommendation Executive Session – Finalize FY17 ED review
Tab 4
Allocations Committee FY 17 Charge The Allocations Committee of the Catholic Schools Foundation (CSF) shall monitor the distribution of all funds granted by CSF. They shall work with CSF staff to set and review policies and practices governing the distribution of all grants and recommend funding guidelines. They shall also assist with the grant review process and site visits as appropriate.
Goals Monitor a comprehensive allocation process to ensure compliance with CSF funding guidelines and operating principles. Review and, if appropriate, recommend changes to high school and elementary school scholarship processes to better align with operating principles and student and school need, considering all financial impacts on schools including fundraising and real estate. Suggest and review strategies to strengthen a continuum of pre-k to 12 Catholic school education.
Review purpose and processes for non-scholarship funding to better align with operating principles and student and school need.
Review and recommend funding guidelines to the Board of Trustees.
Provide feedback on the development of strategies to increase engagement of scholarship recipients and alumni.
Actions: Review and discuss Grant timelines, applications and school evaluation materials School audit materials and results Scholarship recipient data, including retention rate and demographic information Re-allocation process and data Benchmarks to measure future growth of scholarship and non-scholarship programs Strategies and practices to strengthen elementary and high school partnerships Recommendations on high school and elementary school scholarship processes and budgets Processes for student tracking at CSF and after graduation
Meeting Dates and Topics
September 23, 2016 February 3, 2017 Update on re-allocation process Elementary scholarship grant recommendations Review Allocations timeline, Grant applications, rubrics Program grant recommendations Review School audit High school process and evaluation Review Scholarship data FY18 Budget recommendation May 5, 2017 Review of non-scholarship funding FY17 Allocation summary FY18 Final budget recommendation December 2, 2016 Review funding guidelines High school scholarship grant recommendations Allocations Benchmarks Elementary process, evaluation, budget recommendation Graduate and alumni data and engagement Program budget recommendation
Allocations FY17 Scholarship Overview
Elementary School Guaranteed Scholarship Program The first full year of CSF’s one-to-one scholarship program was the 2015-2016 school year. The program guarantees that elementary school students receiving aid in the previous school year will continue to receive the same amount of aid until they graduate from their elementary school provided they remained enrolled in their schools and continue to demonstrate financial need every year through FACTS Grant & Aid.
If a student withdraws from his or her school or does not re-enroll at the school, those scholarship funds are not available to the student or the school. These funds are returned to the CSF scholarship pool.
A new additional aid application process to re-allocate funds from withdrawn students and students not receiving awards in FY17 was implemented in August, 2016.
All elementary schools in the Archdiocese of Boston were invited to apply for additional aid Schools with total CSF scholarship grants equaling less than $65,000 were eligible to apply for aid for individual newly enrolled students with no limit to the number of applications. Schools with total CSF scholarship grants equaling greater than $65,000 were invited to apply for block grants with all aid to be assigned to newly enrolled student by September 30, 2016.
Outcomes and Successes:
Schools report increased early and on-time registration of returning students More accurate reporting on withdrawn students Streamlined and clearer verification process for schools Students not receiving an award from the previous year decreased by 5%; Families not applying for their guaranteed scholarship award decreased by 5%; $546,400 was granted for additional aid to 27 elementary schools through the re-allocations process o $116,400 was granted for 73 students to 15 schools for individual applications. o $430,000 was granted to 12 schools for the block grant application.
Next Steps:
The Allocations Committee will discuss the opportunities to leverage approximately $400,000 or 5% of the scholarship budget that is available in unassigned scholarships since the August 9th re-allocation process due to withdrawn students or students not assigned awards. Analyze schools’ applying on behalf of individual families as part of a large scholarship process review.
K-12 Continuum Scholarships and High School Process In FY16 CSF and the Allocations Committee reviewed its processes in the context of strengthening a K-12 Catholic school continuum in the Archdiocese of Boston. Through the high school advisory committee and conversations with key school partners, CSF has prioritized understanding high schools’ scholarships and financial aid programs, their relationships and collaborations with Catholic grade schools, and different communities’ needs and demographics.
Based on feedback and its current practices, CSF proposes the following actions to help strengthen its high school scholarship programs. These actions and their impact need to be evaluated regularly in the context of all of CSF’s scholarship programs.
School Feedback Proposed Action Timeline Rationale Schools will have flexibility and September 2016 fewer restrictions to build their CSF Scholar budget approved by the scholarship programs and meet the Provide a range of CSF Allocations Committee 1. Schools need more needs of families with varying Scholars to be named with December 2016 flexibility to meet the financial needs. Additionally, the new grant notifications CSF Scholar Class of 2021 needs of their schools with larger tuitions will not (i.e. $20,000 for 3-5 notifications families. necessarily receive larger grants scholars) May 2017 (historically CSF Scholars grants Review new CSF Scholars’ were 33% tuition x number of demographics and award amounts students). Provide five Continuum scholarships for 7th grade Recognizing the impact of grade 7- students currently enrolled September 2016 12 Catholic high schools on all in a Catholic grade school 2. Catholic Continuum Scholarships presented schools’ admissions and enrollment, with demonstrated elementary school in the FY18 high school budget this scholarship program allows financial need ($5,000 or and Catholic high May 2017 grade schools to retain students in full tuition if less than schools feel a Application process for current 6th the 7th and 8th grade, provides more $5,000). Scholarships are disconnect and a lack graders high school options for students, guaranteed for 7th-8th of opportunity 2017-2018 encourages partnerships between grade at the elementary regarding admissions. 7th Grade students receive elementary schools and high school. Scholarships continuum scholarship schools, and allows CSF to explore transfer to the students’ the impact of portable scholarships. Catholic high school of choice.
Outcomes and Successes:
Responsive to schools’ needs while balancing current processes, funding priorities, and the greater Catholic school landscape in the Archdiocese of Boston Positively received from high school and elementary school advisory committees Pragmatically promotes of a K-12 Catholic school continuum Empowers schools to meet the needs of their families Encourages communication and collaboration among schools, school leaders, students, and families.
Next Steps:
CSF Scholar grants will provide a range of scholars instead of an appointed number in grant notifications Implementation of a Continuum Scholarship Program in spring 2017 Addition of a portable scholarship for 7th grade students for the FY18 high school budget Careful evaluation and adjustment of practices in order to best serve all constituents
Leveraged Scholarship Funding at Priority Schools To ensure the most students possible have access to high quality Catholic schools, CSF, along with the Catholic Schools Office, began collaboration with three elementary schools with bright futures that face significant challenges around leadership, governance, enrollment, and parent engagement in the fall of 2015.
These schools require transformative change. In addressing the challenges, the schools, CSF, and the CSO have partnered to help secure Catholic education for three crucial: East Boston Central Catholic School, Saint Jude School, Waltham, and Saint Patrick School, Roxbury.
Because CSF does not have personnel to adequately provide the necessary expertise and support for schools, the CSO has taken a leadership role empowers the CSO and is in line with CSF’s missions to support a strong central Catholic Schools Office. Additionally, requiring schools to collaborate with the CSO provides the additional resources school leaders need to strengthen their schools and to be the excellent education institution that students deserve now and in the future.
Through this program of leveraged scholarship funding, CSF:
Made FY17 scholarship funding contingent on collaboration with the CSO to make progress on focus areas Met with school and parish leaders to discuss identified challenges and CSF’s goals and role Received completed goals and strategies template by June, 2016 Direct schools to collaborate with the CSO Drive accountability and leadership to the CSO Serve as convener and facilitator as appropriate Continue to monitor progress on goals and strategies
Outcomes and Successes:
Active collaboration with the Catholic Schools Office, which has empowered the CSO Succession plan for leadership and clear vision for school moving forward Additional support and action strengthens the schools in the long-term Implementation of vice principals participating in the Lynch Leadership Academy Hire of bilingual front-office administrator in East Boston
Next Steps:
Continue to foster collaboration and partnership with schools, the CSO, and CSF Monitor progress on goals Develop and strengthen a pipeline for Catholic school leadership Identify future opportunities to partner with priority schools for focused change and long- term impact
Scholarship Process Review Scholarships are the core of CSF’s funding. Following the implementation of the elementary school one-to-one scholarship program and the alignment of its scholarship awards and processes, CSF will review the current process in FY17 for adjustment in FY18. The review will take into consideration its current scholarship application processes.
CSF currently offers five grant application processes for new scholarships:
Scholarship Type Level Grant Type Bulk Grant and Individual Additional Aid Awards Elementary School Student Awards CSF Scholars Awards High School Bulk Grant
Emergency Fund Both Individual Student Awards
HRI/NIS Awards Elementary School Bulk Grant Retention and Recruitment Elementary School Bulk Grant Awards
With the exception of the emergency fund and the new additional aid process, schools at the same level (elementary or high school) complete the same application and participate in the same review process regardless of the schools’ student and community demographics and current CSF grant size.
The emergency fund and the new additional aid process (in part) review student applicants on a individual basis based on information provided by the schools and the FACTS grant and aid application.
In addition to these application structures, the current scholarship process will also be reviewed considering:
Current funding guidelines Size of CSF grant Current number of students with CSF awards Community demographics Schools’ student population Continuum and portable scholarships Bulk grants and individual student awards
Outcomes and Successes:
Additional aid application demonstrated the value in reviewing requests for aid based on schools’ needs and level of support Changing demographics in communities will be considered and parameters for support will not be narrowly or prohibitively defined Thoughtful approach to serving both needy communities and needy students will be designed and a focus for scholarship support will be determined
Next Steps:
Careful review of data from scholarship processes Solicit input from advisory and board committees Draft a methodical roll-out of any changes for schools for FY18 for review with Allocations Committee and BOT Lessons Learned from Scholarship Program Deeper understanding of schools, school leaders, and their communities through scholarship funding Continued recognition of each school’s uniqueness and diverse community Value of serve both needy communities and needy families Necessity of balancing change that is neither too local nor too global Ability to use scholarship funding to enact change and promote goals Importance of supporting current leaders during succession planning Need for a pipeline for Catholic school leadership Significance of school leadership to move schools forward
10/24/2016
Preliminary FY17 Allocations Student and School Data
October 27, 2016
FY16 Scholarship Recipients with No Award FY17 • FY16 Elementary School Scholarship Recipients with No Award FY17 – 647 Students or 23% of Eligible Students • Reasons for No Award FY17 – Not Approved (2%) – Did Not Qualify (15%) – Did Not Apply (22%) – Not Enrolled (61%)
1 10/24/2016
Budgeted Scholarship Awards vs. Assigned Scholarship Awards • Budgeted Scholarship Awards – $7,732,384 • Assigned Scholarship Awards – $7,342,719 • Difference – 5%
*Does not include Emergency Fund or Lynn Collaborative
School Data FY17
• 86 Schools – 29 High Schools – 57 Elementary Schools • 3,541 Scholarship Recipients – 638 High School Students – 2,903 Elementary School Students
*Does not include Emergency Fund or Lynn Collaborative
2 10/24/2016
School Data FY17
• Range of Scholarship Recipients – 1 to 67 High School – 4 to 541 Elementary School • Average Scholarship Recipients per School – 25 High School – 53 Elementary School
*Does not include Emergency Fund
School Data FY17
• Range of Scholarship Support by School – $9,417 to $250,534 High School – $3,187 to $964,434 Elementary School • Range of Student Scholarship Amount – $400 to $13,332 High School – $100 to $8,000 Elementary School • Average Award – $3,689 High School – $1,458 Elementary School
*Does not include Emergency Fund
3 10/24/2016
Scholarship Recipient Data FY17
• Median Total Family Income – $42,074 High School – $37,349 Elementary School • Median Total Family Income per Capita – $12,017 High School – $11,953 Elementary School
*Does not include Emergency Fund
Scholarship Recipient Data FY17
• Student Ethnicity – 31% Hispanic – 27% Multiracial or Other Ethnicity – 21% Caucasian – 16% African American – 5% Asian • Student Religion – 75% Catholic – 21% Other Christian – 4% Other Non-Christian • Single-Parent Family – 62%
*Does not include Emergency Fund
4
FY16 and FY17 Elementary School Withdrawn Student and No Award Data*
FY16 FY17 Previous Year Scholarship 711 647 Recipients with No Award Percent of Eligible Students 28% 23%
Reasons for No Award
Did Not Apply 27% 22% Did Not Qualify 14% 15%
Assigned Other Aid 10% 0%
Not Approved 2%
Not Enrolled 49% 61% FY17 Aid available from No Awards = $X
FY17
Withdrawn Students – 392 FY16 Award Amount for Withdrawn Students - $595,112 Students Assigned no Award FY16 – 255 FY16 Award Amount for No Award Students - $425,251
Number Number of Total Reason for Percent of of Fund Withdrawn Award Withdrawals Withdrawals Students Students Amount Academic 6 2% HRI/NIS 26 $69,673 Behavior 8 2% Recruitment 71 $106,785 Commute 12 3% Retention 82 $99,398 Financial 150 38% General 200 $299,306 Moved 82 21% General + Retention 13 $19,950 Special Services 27 7% Total 392 $595,112 Stronger Academics 8 2% Unhappy 7 2% Unknown 92 23% Total 392
*As of October 20, 2016
Additional Aid Application Data
Individual Application Summary 39* schools 15 Elementary Schools applied Total requested: $158,875 for 76 students Total approved $116,400 (73% of request) for 72 students o Average total family income of applications: $40,944.29 o Average family size: 3.9 o Average Award Requested: $2,103.62
Bulk Grant Summary 19* schools 12 Elementary Schools applied Total requested: $577,400 for potentially 370 students Total approved: $430,000 (74% of request) o Average total family income of school’s applications: $42,076.85 o Average family size: 3.4
*Currently funded schools; all elementary schools in the Archdiocese of Boston were invited to apply via five email announcements from April 2016-August 2016. Eligible Schools Eligible Schools Eligible Schools Eligible Schools Completing the NOT completing the Completing the NOT Completing Individual Individual Bulk Applicable the Bulk Applicable Application Application
Total Number of Schools 15 24 7 12
Average Total CSF Support $31,400 $23,300 $251,300 144,175
Average Withdrawn Students 3 1 12 7 per School - Average Award Amount for $1,098 $982 $1,832 $1,365 Withdrawn Students - Percent of Withdrawn Students 48% 32% 33% 32% for Financial Reasons Average Number of Students Not Receiving an Award in 3 2 10 3 FY17 - Percent of No Award Students who Did 47% 44% 67% 58% Not Apply - Percent of No Award Students who Did 53% 33% 27% 29% Not Qualify
Elizabeth Seton Academy Update
Background
Elizabeth Seton Academy closed in August, 2016. The Catholic Schools Office assisted students during this transition to help enroll the students in other Catholic high schools for the 2016-2017 school year.
Following allocation of their own aid, including unfunded aid to fill empty seats, high schools were invited to request additional aid from the Catholic Schools Foundation to support the enrollment of Elizabeth Seton Academy students at their school. Additional funding was made available from withdrawn students’ awards and the emergency fund.
Request for Additional Aid
42 Students; 11 Current CSF scholarship recipients 11 High Schools Requested: $84,111 Approved: $68,685 o Guaranteed Scholarship Fund: $30,985 o Emergency Fund: $37,700
Total Guaranteed Emergency School Students Request Approved Approved Approved Archbishop Williams High School, Braintree 6 $0.00 $0.00 Cardinal Spellman High School, Brockton 6 $5,305.00 $5,304.00 $5,304.00 Cathedral High School, Boston 12 $8,700.00 $6,200.00 $6,200.00 Cristo Rey High School, Boston 5 $2,500.00 $2,500.00 $2,500.00
Fontbonne Academy, Milton 9 $31,419.00 $30,219.00 $11,519.00 $18,700.00 Matignon High School, Cambridge 1 $2,000.00 $2,000.00 $2,000.00
Mount Alvernia High School, Newton 4 $18,725.00 $10,500.00 $10,500.00 Notre Dame Academy, Hingham 4 $12,000.00 $6,000.00 $6,000.00 Pope John XXIII High School, Everett 1 $3,500.00 $3,500.00 $3,500.00 Saint Joseph Preparatory School, Brighton 6 $2,462.00 $2,462.00 $2,462.00 Ursuline Academy, Dedham 4 $0.00 $0.00 Total 58* $86,611.00 $68,685.00 $30,985.00 $37,700.00 *Some students were included in more than one school request
Confirmed Enrollment and FY17 CSF Scholarships
86% of ESA students have enrolled in a Catholic School for the 2016-2017 school year $91,713 will be allocated for ESA students o $43,044 will be allocated to current CSF Scholars o $15,969 will be allocated in additional guaranteed awards o $32,700 will be allocated in emergency fund awards
Tab 5
FY17 Advancement Committee Goals Members: Craig Tateronis, Chair; Jack O’Connor, Eileen Shapiro, Ryan Connolly, Dan diBartolomeo, Timothy McBride, Peter Pound
Charge The Advancement Committee is accountable for promoting and engaging in fundraising and marketing activities that build and strengthens CSF’s base of support with new prospects and existing supporters. This will be accomplished by assisting CSF staff in identifying and cultivating prospects for funding our operations and programs. Additionally, Advancement Committee members will ensure that CSF has fundraising and marketing processes in place for the successful fulfillment of the foundation's mission. They will monitor the processes and results on a quarterly basis and ensure transparency to the full Board of Trustees.
Goals
Promote a mission-driven fundraising program that works to connect donors with the various CSF programs, while maintaining or exceeding budgeted goals and tracking progress with clearly defined metrics.
Reinvigorate the committee by adding a minimum of five new members in fiscal year 2017.
Strengthen and broaden CSF’s corporate partnerships.
Help CSF staff make connections to influential members who understand, promote and enthusiastically pursue the fundraising needs of the CSF. Activities can include, personalizing appeal letters, providing access to potential donors, making thank you calls, inviting friends and colleagues to events, hosting an event at your home or other venue, provide help and insight to a CSF recognition event.
Align CSF’s Advancement Committee and 2017 Dinner Committee in order to strengthen outreach and fundraising activities.
Encourage and promote Board participation at events and as ambassadors in carrying out the CSF mission.
First Quarter Meeting (September 28) Second Quarter Meeting (January 19) Review FY16 End of Year Financials Review YTD Funds Raised Evaluate FY17 Goals and YTD Funds Raised Examine Annual Dinner Fundraising Discuss merits of a recognition event Annual Fund Campaign Check –in where Review Prospect List/letters to prospects are we? Outstanding items/set AC dates for FY17 Review Funding Opportunities and Prospecting plan with action items Third Quarter Meeting (March 29) Review YTD Funds Raised and action items Fourth Quarter Meeting (June 21) Annual Fund Campaign Check –in where Review YTD Funds Raised are we? Review FY18 Development Budget Review Funding Opportunities and Review Funding Opportunities and Prospecting Plan with create actions Prospecting Plan with action items
Board of Trustees Meeting October 27, 2016 Advancement Committee Report General
Staffing o CSF restructured the development department. Kate Rota has been hired as the new Development Associate who will be charged with administrative development tasks, coordinating events, marketing initiatives, and creating a CSF scholar alumni program. Hillary Laggis, as the Director of Corporate Partnerships will now focus on strengthening existing corporate relationships and forming new partnerships. She will still manage the Young Leaders program and the annual dinner gala. Gina Rindfleisch as the Director of Development will continue to focus on individual and foundation gifts. o CSF will pay particular attention to building a Planned Giving program. Staff will work on various marketing initiatives and creating and naming a formal Legacy Society. Fundraising
FY17 Annual Campaign o The Annual Campaign is in full swing and staff is working hard to secure renewed support as well recapturing lapsed donors and adding new individuals to our base. o Commitment value is down slightly, but this is purely due to timing at this point in the year. o Year over year, donor to donor CSF is trending up by 6%.
Advancement Committee update o Development staff is looking to reinvigorate the Advancement Committee by adding five new members to the committee this year. We currently have two new members, Peter Pound of Morgan Lewis and Tim McBride of Bessemer. The focus of the committee this year is to help make connections to new donors and other individuals CSF has identified as a priority.
CSF is asking Board members to help recommend additional members to the Advancement Committee. Areas of interest: Biotech, Commercial Real Estate, and Technology.
Events: Christmas for the Kids Cocktail Party- Wednesday, November 30th from 6-9pm o 250 expected guests
ICSF Dinner-Thursday, April 6th from 6-9pm
2017 ICSF Bus Tour – Wednesday, May 3rd from 11-2pm o Saint Patrick School in Roxbury
Marketing/PR Social Media o Social media campaign to recognize corporations that donate over 10K. Schools have been sent signs and will be notified when to post thank you messages to these donors. o Holiday campaign, #ICSFHope, is underway. Students have been asked to create videos that give their definition of hope, a story of a time they had hope, or an example of someone who has hope. o CSF Scholar Seniors will be recognized on our social media pages for the great things they have accomplished throughout their four years of high school. Catholic Space o Catholic TV- Blink segment planning process is underway. o Catholic Radio is running an ad about Christmas for the Kids in their upcoming events segment. o CSF is sponsoring a bi-weekly article in The Pilot about catholic education. o Starting in November, CSF will be running an ad in the church bulletin in over 25 parishes in the Archdiocese of Boston. Annual Report –due in mailboxes week of November 14th
Corporate Partnerships Corporate Volunteer Day – Wednesday, August 17th - Cathedral High School o Attended by over 50 young professionals from eight companies Hill Holliday o Internship: expanded to 3 interns per year with possibility of increasing to 6 (2 per session) with ultimate goal of hiring them in college and post college o Quarterly employee engagement events: focus on advertising and media workshops Thursday, October 13th –first event at Mission Grammar in Roxbury. HH employees made videos with students for school website o New Hire Materials: HH will be including information about ICSF involvement in all new hire training packets beginning Nov 1st. Staples o $2M & Change- young professionals at Staples nominated CSF to receive funding through their associate grant program. We received $5K this year, and have the potential to receive $25K in the future now that we are in the program. o Printing – Staples will continue to print our dinner materials pro bono (~15K value) PwC o “Earn Your Future” Day—PwC will partner with one of our high schools this spring to provide financial literacy workshops. Goal is to provide quarterly events in 2017. Morgan Lewis o Peter Lynch event –Thursday, November 10th PL will speak to attorneys about markets and then he and Roger Joseph will pitch ICSF involvement to all employees o Roger Joseph and Peter Pound nominated a young professional attorney to join the Young Leaders Council. She is working to further young professional involvement at the firm. Corporate Advisory Group o Working to put together an advisory committee of corporate citizenship professionals to further inform corporate engagement programs moving forward. Young Leader Program growth o Before 2012: no formal engagement program. o 2013: young leader dinner committee formed. o 2013-2015: number of young leaders quadrupled in size to 100. o 2015—Young Leader Council established to provide continuity in programming throughout the year (8 young professionals representing 5 companies). o 2016—six young professional events each year, 200+ young leaders, 10 long- term corporate engagement partnerships, comprehensive programming, more than $100K raised each year.
CSF Board of Trustees Current Profile Fiscal Year End 2016
Number of Trustees Giving Level
4 $100K+
3 $50,000 - $99,000
1 $25,000 - $49,999
7 $10,000 - $24,999
3 $5,000 - $9,999
6 $500 - $4,999
Fundraising and Public Relations Expectations Include:
• Provide annual financial contribution to the Catholic Schools Foundation according to Trustee’s means.
• Join in supporting the Catholic Schools Foundation by participating in events when possible, including the Annual Dinner Celebration, Annual Bus Tour, and other events throughout the year.
• Periodically review the staff’s list of prospects to assist in offering contacts and /or make introductions.
• Enhance public image of the Catholic Schools Foundation when opportunities arise.
• Make an effort to promote the work of the Catholic Schools Foundation among friends, family, and colleagues. Consider hosting an event at home or another venue.
Tab 6
Finance Committee FY 17 Charge
The Finance Committee of The Catholic Schools Foundation (CSF) shall advise, make policy recommendations and recommend operating procedures to the Board of Trustees and Executive Director on all aspects of CSF's finances, including annual operating budget, general financial management and long range fiscal planning.
Goals
Approve and monitor a comprehensive budget process and make a recommendation to the Board on the FY 17 Budget, in collaboration with development and allocations committees.
Review and monitor on-going operations;
Monitor the work of the audit and investment committees
Develop three year operating model to facilitate planning that to maximizes mission impact while factoring cash reserve needs
Actions
Consider budget impact of any adjustments to scholarship timeline Regular review of financial statements and reports of the audit and investment committees Regularly review the long range cash flow Analyze various scenarios to maximize impact and purpose of Investment Pool Monitor relationship with Catholic Community Fund
Meeting Dates and Topics
All meetings will have review of financials and investment performance
8/16/16 2/14/2017
Review of FY16 Financials Review of FY 18 Budget Review of CSF goals Update on 2016 Audit Finalize draft committee goals FY 17 Auditor Recommendation Surplus/Deficit/Reserve Discussion Review of CCF assets Update on 3 year model Initial high school scholarship budget review
11/15/2016 5/16/17
Initial elementary scholarship budget review FY 18 Goals discussion Report on FY 16 Audit progress Review and setting of Payout Policy Review of investment pool model Finalization of Budget Update on 3 year model Review of Insource Insurance Coverage Review of open accounts –signers/access Review of LRP Model
Audit Committee FY 17
Charge
The Audit Committee makes a recommendation on the appointment of an auditor; reviews the audit process; presents the results of the audit to the Finance Committee. The committee should also understand and provide insight regarding internal controls.
Goals
Make a recommendation to the Board on the appointment of an independent auditor.
Monitor and review the annual audit and make a report to the Finance Committee with a goal of having the audit completed by 2/1/17
Monitor and review CSF compliance with new financial reporting standards and FLSA impact
Ensure compliance with Federal and State filings.
Actions
Oversee audit process and findings Review changes to new financial reporting standards and FLSA impact Review of any changes to internal controls and banking relationships Recommend auditor for 2017 Audit Executive Session with auditor
Meeting Dates and Topics
Meeting dates TBD based on audit schedule
Investment Committee FY 17 Charge
The Investment Committee recommends investment policies to the Catholic Schools Foundation Board pertaining to the Foundation’s funds and any other funds under the investment stewardship of the Foundation. Such policies include the approval of asset classes, permitted ranges, and the spending policy. The Board has delegated the implementation of the investment policies, including without limitation the selection, monitoring, and termination of investment managers, to the Committee.
Goals Establish annual performance goal Approve policies and guidelines for CSF Investment Funds Monitor and advise on fund selection towards agreed upon performance goal Review and provide feedback on recommended annual distribution rate as set forth in the preliminary budget and maintain adequate cash reserve
Actions Regular review of investment performance against performance goal Establishment of standing agenda and meeting topics Annual Report to the Board of Trustees Regular review of managers
Meeting Dates and Topics (Quarters based on June 30th fiscal year)
Q1(8/9/2016) Q2 (11/8/16) Review of CSF goals and cash needs Investment Reporting Review Finalize draft committee goals Performance Goal for next calendar year Outside Manager Review Review fees and return Conflict of Interest Disclosure Annual Report on Foundation activity
Q3 (2/14/17) Q4(5/9/17) Annual Performance Review Policy and Guideline Review Review of Draft Budget Update on CSF Budget and Distribution rate Investment Pool Distribution Recommendation Standing Agenda Review Annual Report to the CSF Board
Updated 8.5.16 Catholic Schools Foundation Operating Performance Metric - DRAFT
% of YTD Actual Budget YTD Actual YTD Actual Variance through Full FY16 Variance from Raised/S through through from the prior Revenue (accrual) 6/30/16 Budget Budget pent 6/30/16 6/30/15 FY Appeal & Dinner (excludes perm. rest.) 8,675,176 8,080,000 595,176 107% 8,675,176 9,332,170 (656,994) BTSC 54,865 80,000 (25,135) 69% 54,865 29,442 25,423 YPP Event 28,837 40,000 (11,163) 72% 28,837 29,442 (605) Total Income 8,758,878 8,200,000 558,878 107% 8,758,878 9,391,054 (632,176)
Expenses: School Allocations (cash) Scholarships 7,536,970 7,757,778 220,808 97% 7,536,970 6,841,413 695,557 Program & Other (directed) 890,102 1,210,469 320,367 74% 890,102 2,490,086 (1,599,984) Total School Allocations 8,427,072 8,968,246 541,175 94% 8,427,072 9,331,499 (904,427) Operating Expenses (accrual) Management (incl depreciation) 444,919 444,556 (363) 100% 444,919 387,590 57,329 Allocations 325,458 420,609 95,151 77% 325,458 413,795 (88,337) Development (incl events) 683,973 764,648 80,674 89% 683,973 674,147 9,826 Total Operating Expenses 1,454,350 1,629,813䄐ｾ 175,463 89% 1,454,350 1,475,531 (21,182) Total Expenses 9,881,422 1,629,813 716,637 606% 9,881,422 10,807,030 (925,609)
Net from Operations (1,122,544) (2,398,059) 1,275,515 47% (1,122,544) (1,415,977) 293,433 plus investment pool distribution 1,550,000 2,473,821 923,821 63% 1,550,000 1,000,000 550,000
Operating Surplus/Deficit 427,456 75,762 427,456 (415,977) 843,433
Operating Cash Required for Future Commitments 1,435,269 FY16 budgeted investment pool distribution not used (operating cash used) 923,821
Notes: - The purpose of this report is to show performance in a format consistent with the original expectations for the year (budget) - The investment pool distribution is budgeted at 4% of the trailing 12 quarters for the entire pool YTD actual represents actual cash withdrawn from the pooled investment fund - The continued development of this metric is intended to further drive discussions around: full year & multi-year forecasting, developing a more comprehensive cash management policy (operating & investments) and the overall budgeting process Catholic Schools Foundation Operating Performance Metric - DRAFT
% of YTD Actual Budget YTD Actual YTD Actual Variance through Full FY17 Variance from Raised/S through through from the prior Revenue (accrual) 9/30/16 Budget Budget pent 9/30/16 9/30/15 FY Appeal & Dinner (excludes perm. rest.) 517,956 8,115,400 (7,597,444) 6% 517,956 354,323 163,633 BTSC - - - - 49,365 (49,365) YPP Event 450 40,000 (39,550) 1% 450 320 130 Total Income 518,406 8,155,400 (7,636,994) 6% 518,406 404,008 114,398
Expenses: School Allocations (cash) Scholarships - 7,793,384 7,793,384 0% - - - Program & Other (directed) 12,963 1,201,900 1,188,937 1% 12,963 256 12,707 Total School Allocations 12,963 8,995,284 8,982,321 0% 12,963 256 12,707 Operating Expenses (accrual) Management (incl depreciation) 107,029 440,585 333,557 24% 107,029 125,592 (18,564) Allocations 71,292 420,302 349,010 17% 71,292 72,460 (1,168) Development (incl events) 92,009 785,187 693,178 12% 92,009 110,771 (18,761) Total Operating Expenses 270,330 1,646,075 1,375,745 16% 270,330 308,823 (38,493) Total Expenses 283,293 10,641,358 10,358,065 3% 283,293 309,079 (25,786)
Net from Operations 235,113 (2,485,958) 2,721,071 -9% 235,113 94,929 140,184 plus investment pool distribution - 2,501,229 2,501,229 0% - - -
Operating Surplus/Deficit 235,113 15,271 235,113 94,929 140,184
Operating Cash Required for Future Commitments 1,426,306 FY17 budgeted investment pool distribution not used (operating cash used) -
Notes: - The purpose of this report is to show performance in a format consistent with the original expectations for the year (budget) - The investment pool distribution is budgeted at 4% of the trailing 12 quarters for the entire pool YTD actual represents actual cash withdrawn from the pooled investment fund - The continued development of this metric is intended to further drive discussions around: full year & multi-year forecasting, developing a more comprehensive cash management policy (operating & investments) and the overall budgeting process 1) Asset Allocation CSF Spending Program vs Benchmark
2) Program Performance Attribution Asset Allocation vs Manager Selection
3) Manager Allocation Manager Selection New Ideas
4) Manager Performance Active vs Passive Track Buys/Sells
TBD
5) Manager Position Overlap Index Overlap Manager Overlap Concentrated Portfolios Tracking Error 1) Asset Allocation - Actual Versus Benchmark
Normal Range Over/Under Equities Current + / - 10% Median Range Domestic Large Cap 18.3% 30.0% -11.7% Small Cap 11.3% 10.0% 1.3% All Cap 11.0% 0.0% 11.0% Total US 40.7% 40.0% 0.7%
International Global 3.9% 15.0% -11.1% Asia 5.0% 5.0% Europe 1.9% 1.9% Emerging 5.4% 5.4% Total Int'l 16.2% 15.0% 1.2%
Sectors / Other Sector/Other 7.8% 5.0% 2.8%
Total Equities 64.7% 60.0% 4.7%
Normal Range Over/Under Bonds Current + / - 10% Median Range
Corporate / HY 9.5% 20.0% -10.5% Treasuries 5.8% 10.0% -4.2% Non-US 1.0% 5.0% -4.0%
Total Bonds 16.3% 35.0% -18.7%
Cash Cash Equivalents 19.0% 5.0% 14.0%
Total 100.0% 100.0% 0.0% 4) Manager Performance 33 69 117 Shaded green = Full Year CSF Investment Invest 30-Sep Date 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2 yrs 5 yrs 9 yrs EQUITIES 9 Mos 9 Mos 9 Mos Domestic Large Cap T Rowe Price Growth Stock Fund (6/05) PRGFX Jun-05 10.4% -42.3% 43.3% 16.9% -1.0% 18.9% 39.2% 8.8% 10.9% 1.3% 7.6% 12.8% 8.1% Vanguard Value Index Investor (8/15) VIVAX Aug-15 0.1% -36.0% 19.6% 14.3% 1.0% 15.0% 32.9% 13.1% -1.0% 8.6% 7.3% 11.6% 5.2% Vanguard Growth Index VIGRX 12.5% -38.2% 36.0% 16.8% 1.7% 16.9% 32.0% 13.4% 3.2% 6.5% 8.3% 12.4% 8.2% Fidelity Advisor Insight FINSX 20.6% -37.6% 29.3% 16.3% -0.7% 16.1% 32.1% 9.3% 2.6% 6.7% 6.7% 11.0% 7.7% Fidelity 500 Index Institutional Class (6/16)FXSIX Jun-16 5.5% -37.0% 26.6% 15.0% 2.1% 16.0% 32.3% 13.6% 1.4% 7.8% 8.2% 12.3% 6.7% Small Cap MA Weatherbie and Co Dec-05 13.9% -38.2% 39.0% 28.5% 1.2% 11.3% 50.5% -4.0% 1.7% 7.7% 1.9% 10.6% 8.6% Frontier Research Fund Dec-05 17.3% -37.9% 33.8% 21.8% -10.0% 20.8% 35.7% 10.6% -1.6% 6.5% 5.5% 9.8% 7.5% Dimensional U.S. Small Cap Value DFSVX Dec-15 -10.8% -36.8% 33.6% 30.9% -7.6% 21.7% 42.4% 3.5% -7.8% 11.5% 2.3% 9.7% 5.5% Russell 2000 ETF IWO 6.9% -38.4% 34.5% 29.3% -3.0% 14.8% 43.2% 5.8% -1.3% 7.7% 4.4% 10.7% 7.7% All Cap Lateef Investments Oct-06 7.9% -35.6% 23.7% 15.1% 0.2% 19.2% 32.0% 5.0% 3.0% 1.6% 3.5% 10.0% 5.7% Scharf Investments Core Equity Fund Oct-06 5.0% -28.4% 27.7% 12.9% 3.3% 12.6% 31.8% 15.8% 1.9% 4.9% 8.1% 11.8% 7.7%
International Global Morgan Stanley Inst. Intl Equities, Class A MSIQX(12/03) Dec-03 9.8% -33.1% 21.6% 6.1% -7.6% 19.6% 20.4% -6.1% 0.4% 0.4% -2.0% 4.1% 1.8% Asia Matthews Japan (2/11) MJFOX Feb-11 -11.0% -28.4% 10.1% 19.6% -7.7% 8.3% 34.0% -2.6% 20.8% 9.9% 9.8% 10.0% 3.9% Ishares MSCI Japan Small Cap Index Fund SCJ(5/10) May-10 na -19.6% 2.2% 19.1% -4.9% 5.5% 24.7% -2.7% 14.9% 11.5% 8.3% 8.0% na Europe Vanguard FTSE Europe (3/15) VGK Mar-15 13.2% -44.7% 31.3% 6.0% -11.6% 21.6% 24.4% -7.1% -1.9% 0.8% -3.0% 3.6% 0.7% Emerging Markets Vanguard FTSE Emerging Markets (3/15) VWO Mar-15 37.3% -52.5% 76.3% 19.5% -18.8% 19.2% -4.9% -0.1% -15.4% 17.5% -0.2% -1.5% 2.4%
Sectors / Other Amex Energy Select Spdr Fd (6/05) XLE Jun-05 36.9% -38.9% 21.8% 21.8% 2.8% 5.2% 26.2% -8.7% -21.5% 19.6% -5.4% 2.8% 3.9% Market Vectors Gold Miners (8/11) GDX Aug-11 16.8% -26.1% 36.7% 33.9% -16.1% -8.9% -54.0% -12.4% -24.9% 92.6% 9.0% -13.1% -3.5% Financial Select Sector SPDR® ETF (2/16)XLF Feb-16 -18.9% -54.1% 17.0% 11.9% -17.1% 28.3% 35.3% 14.9% -1.7% 1.3% 5.0% 9.1% -2.2% ISHare US Healthcare ETF IYH 8.0% -22.8% 20.7% 4.1% 11.2% 17.3% 41.2% 25.1% 6.2% 1.1% 11.3% 17.1% 10.3% Select Sector SPDR Real Estate (9/16) XLRE 7.5%
BONDS Corporate / HY Vanguard Short TTM Corp Fund (3/09) VFSTX Mar-09 5.9% -4.7% 14.0% 5.2% 1.9% 4.5% 1.0% 1.8% 1.0% 3.6% 2.3% 2.4% 3.4% Fidelity Capital & Income (2/15) FAGIX Feb-15 3.8% -31.9% 72.1% 17.1% -1.9% 16.4% 9.7% 6.1% -1.0% 9.1% 5.1% 6.5% 7.6% Third Avenue Focused Credit Fund (2/15) TFCIX Feb-15 na na na 15.6% -4.6% 17.2% 16.8% -6.0% -30.1% -1.4% -14.6% -2.9% na High Yield Index ETF (HYG) na -17.6% 28.6% 11.8% 6.7% 11.6% 5.7% 1.9% -5.0% 12.4% 3.1% 5.6% na Non-US Morgan Stanley Emerging Markets (2/14) -29.0% 42.0% 27.3% -5.4% 27.3% -13.0% -11.9% 1.7% -28.2% 26.9% -2.7% -1.7% 1.0%
CSF Return 9.2% -30.5% 27.4% 14.3% -0.9% 11.1% 17.5% 4.5% -0.5% 5.9% 3.6% 6.4% 4.8% Benchmark (45% S&P 500/EAFE 15%/35% Barclays Agg/Tbills 5%) 6.0%
CSF Market Value (MM) 49.2 34.9 43.9 50.0 49.0 53.7 61.6 63.5 61.6 65.3 3) Manager Allocations 9/30/2016 30-Sep Expense Date Cost Market Percent YTD 2015 Ratio Equities Domestic Large Cap T Rowe Price Growth Stock Fund (6/05) Jun-05 667,020 1,073,456 1.6% -0.4% 10.9% 0.70% Vanguard Value Index Investor (8/15) Aug-15 5,851,052 6,083,996 9.3% 9.1% -1.0% 0.23% Fidelity 500 Index Institutional Class (6/16) Jun-16 4,165,722 4,818,416 7.4% 7.8% 1.4% 0.06% Total Large US 10,683,793 11,975,867 18.3%
Small Cap MA Weatherbee and Co (12/05) Dec-05 1,340,000 2,351,891 3.6% 4.8% 1.7% 1.00% Frontier Research Fund (12/05) Dec-05 1,945,000 4,598,476 7.0% 6.2% -1.6% 1.10% Dimensional U.S. Small Cap Value Dec-15 400,000 436,579 0.7% 10.1% -7.8% 0.52% Total Small US 3,685,000 7,386,946 11.3%
All Cap Lateef Investments (10/06) Oct-06 1,000,000 2,314,111 3.5% 2.5% 3.0% 1.00% Sharf Investments Core Equity Fund (10/06) Oct-06 3,000,000 4,889,999 7.5% 5.6% 1.9% 1.00% Total All Cap 4,000,000 7,204,110 11.0%
Total US 18,368,793 26,566,923 40.7%
International Global Morgan Stanley Inst. Intl Equities, Class A (12/03) Dec-03 2,857,705 2,536,646 3.9% 0.6% 0.4% 0.95% Total Int'l Large 2,857,705 2,536,646 3.9%
Asia Matthews Japan (2/11) Feb-11 627,377 1,019,960 1.6% 3.2% 20.8% 1.30% Ishares MSCI Japan Small Cap Index Fund (5/10) May-10 1,386,817 1,658,086 2.5% 4.0% 14.9% 0.50% Ishares MSCI South Korea Capped ETF (8/16) Aug-16 599,959 605,424 0.9% 13.2% -8.3% 0.63% Total Asia 2,614,153 3,283,469 5.0% Europe Vanguard FTSE Europe (3/15) Mar-15 749,857 653,323 1.0% -0.1% -1.9% 0.12% Ishares trust MSCI Europe Financials (8/16) Aug-16 598,938 609,266 0.9% -13.3% 5.7% 0.48% Total Europe 1,348,794 1,262,589 1.9%
Emerging Markets Vanguard FTSE Emerging Markets (3/15) Mar-15 2,732,800 2,460,174 3.8% 14.7% -15.4% 0.15% BMO Emerging Markets (5/16) May-16 1,000,050 1,075,252 1.6% 19.6% -11.3% 1.15% Total EM 3,732,850 3,535,426 5.4%
Total Int'l 10,553,503 10,618,130 16.2%
Sectors / Other Amex Energy Select Spdr Fd (6/05) XLE 826,980 956,977 1.5% 15.8% -21.5% 0.17% Market Vectors Gold Miners (8/11) Aug-11 2,076,087 1,585,562 2.4% 85.6% -24.9% 0.53% Financial Select Sector SPDR® ETF (2/16) Feb-16 1,400,497 1,184,904 1.8% 4.1% -1.7% 0.14% iShares US Oil&Gas Explor&Prodtn (5/16) May-16 499,567 545,409 0.8% 11.6% -24.6% 0.43% Ishares TR US Home Cons ETF (8/16) Aug-16 600,487 567,530 0.9% 0.4% 5.7% 0.44% Select Sector SPDR Real Estate (9/16) Sep-16 272,785 279,921 0.4% 7.5% 0.14% Sector/Other 5,676,403 5,120,304 7.8%
Total Equities 34,598,699 42,305,357 64.7%
Bonds
Corporate / HY Vanguard Short TTM Corp Fund (3/09) Mar-09 4,829,079 4,947,561 7.6% 3.5% 1.0% 0.20% Fidelity Capital & Income (2/15) Feb-15 741,393 754,816 1.2% 8.5% -1.0% 0.71% Third Avenue Focused Credit Fund (2/15) Feb-15 790,771 490,362 0.8% -1.4% -22.4% 0.88% Total Corp / HY 6,361,243 6,192,739 9.5%
Treasuries United States Treasury Bond due 02/15/2018 1,848,703 1,856,938 2.8% United States Treasury Bond TIPS due04/15/2018 1,941,197 1,947,009 3.0% Total Tsy's 3,789,900 3,803,947 5.8% Non-US Morgan Stanley Emerging Markets (2/14) Feb-14 723,290 651,635 1.0% 22.9% -28.2% 2.10% Total Non-US 723,290 651,635 1.0%
Total Bonds 10,874,433 10,648,320 16.3%
Cash Cash Equivalents Fidelity Account Money Market 93,214 93,214 0.1% United States Treasury bill due 8/25/16 12,293,358 12,297,417 18.8% Total Cash 12,386,572 12,390,631 19.0%
TOTAL 57,859,705 65,344,308 100.0% Period: YTD ending 8.31.16
Benchmark
Returns Attribution* Allocations YTD 9/30/2016 YTD 9/30/2016 Normal Allocation Bench Return US 45% S&P 500 7.8% S&P 500 3.5% Int'l 15% EAFE 2.8% EAFE 0.4% Bonds 35% Barclays Agg 6.0% Barclays Agg 2.1% Cash/Other 0% Tbills 0.0% Cash/Other 0.0% Other* 5% Tbills 0.0% Tbills 0.0% total 100% total 6.0%
*asset return x normal allocation *Assumes "other" is supposed to be absolute return and so Tbills used as bench
CSF Actual Portfolio
Allocations* Returns Attribution % G/L G/L o/u 9 Mos asset manager/sector/style Actual Normal Actual 9 Mos allocation* selection # US 47% 2% US 8.8% US 4.2% 0.2% 0.5% Int'l 14% -1% Int'l 8.3% Int'l 1.2% 0.0% 0.8% Bonds 17% -18% Bonds 4.6% Bonds 0.8% -1.1% -0.2% Cash 22% 22% Cash 0.2% Cash 0.0% 0.0% 0.0% Other 0% -5% Other 0.0% Other 0.0% 0.0% 0.0% total 100% ^total 6.2%
vs. Bench 0.1% -0.9% 1.0%
* Average over period * over/under % allocation x index return ^ Flows and averaging can result in minor distortion from actual peformance presented on month end # actual return - asset alloc - normal return
High School FY18 Grant Recommendation
FY18 High School Budget Recommendations
It is recommended that the FY17 High School Scholarship Budget be set at $2,576,800.00. In doing so, CSF would:
o Allocate $450,000 from new funding and graduating CSF Scholars to a new class of CSF scholars; o Provide $25,000 for the Continuum Scholarship pilot program; o Guarantee $15,969 for Elizabeth Seton Academy students enrolling at new Catholic high schools; o Continue to fund three Corporate Work Student Programs at the Cristo Rey schools; o Maintain general scholarship funding at Cathedral High School o Maintain scholarship amounts for ABLE and SBBGC scholarships; o Increase the Gerstner Scholarships by $32,500 for a new class of scholars per donor agreement.
Rationale
The outlined budget would allow CSF to maintain current scholarship programs, including the CSF Scholars and ABLE program, while providing schools with more flexibility to assign awards to scholarship recipients. This will help schools to meet the needs of families with varying financial needs.
The amount for the Continuum Scholarship pilot will allow for a methodical and purposeful roll-out of the program as CSF prioritizes K-12 Catholic school continuum and considers the impact of merit aid and financial aid practices at high schools in the archdiocese of Boston.
The increase in the CSF Scholarship amount and guaranteed awards for ESA will allow for stability for families during school transitions, including the closure of Elizabeth Seton Academy and the change of St. Clement School from a K-12 school (previously considered an elementary school) to a grade 7-12 high school.
Type of FY18 Directed Category Level FY16 Budget FY17 Budget Difference Support Recommend.* Funds ABLE HS Scholarship $102,500.00 $102,500.00 $102,500.00 $ -
Corporate Work HS Scholarship $91,800.00 $91,800.00 $91,800.00 $ - Study Program K-12 Continuum HS Scholarship $25,000.00 $25,000.00 Scholarship
CSF Scholar HS Scholarship $2,092,960.00 $2,140,594.00 $2,150,000.00 $9,406.00
General HS Scholarship $147,634.00 $100,000.00 $100,000.00 $ - Scholarship - High
Gerstner HS Scholarship $30,000.00 $60,000.00 $92,500.00 $32,500.00 Directed
South Boston Boys HS Scholarship $15,000.00 $15,000.00 $15,000.00 $ - and Girls Club
TOTAL $2,479,894.00 $2,509,894.00 $2,576,800.00 $66,906.00
*Does not include $100,000 Lynn Collaborative or Emergency Fund
FY 16 Surplus Recommendation
Background:
The process for determining any calculated operating surplus was presented at the June Board meeting. The Board voted to authorize the Finance Committee to reserve any portion of a calculated operating surplus in excess of $100K for use provided a satisfactory review of: o Current year performance against budget o Current year GAAP performance o Further discussion at the October Board meeting in context of longer range financial planning
*Performance Summary:
Calculated Operating Surplus/(Deficit): $427,456 GAAP Surplus/ (Deficit) ($3,242,568) *unaudited
Analysis:
As is demonstrated by the comparison between the GAAP surplus/deficit in FY13, FY14 FY15 and FY16, wide swings can occur due to market and have a significant impact on the GAAP surplus deficit.
During FY16 Management and the Finance Committee updated the measurement tool to better align with the budgeting process. This new metric allows us to more accurately measure the Foundation’s performance against its goals but is more of a hybrid cash/accrual accounting method. In addition, we also began tracking how much potentially encumbered cash is being kept in the operating accounts: this is cash that is temporarily restricted by purpose and could be called to fulfill future purposes. At June 30, 2016 this amount is $1.4M.
In addition to the new methodology for calculating the operating surplus/deficit, the Finance Committee and Management have also worked to develop a modeling tool that will allow it to better assess the longer-term impacts of funding decisions and commitments while also considering encumbered cash.
Recommendation: . That the Board defer on making any decision on the FY16 calculated surplus/deficit at this time while the Board and Allocations Committee determine future funding priorities and direction. If additional support is determined as being necessary, the Finance Committee is now better poised to determine the longer-term impact of the additional funding needs.