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MINUTES NO. 124

 CENTRAL VIRGINIA COMMUNITY COLLEGE
EDUCATIONAL FOUNDATION, INC.
BOARD OF DIRECTORS MEETING
Merritt Hall, Room 5118
May 10, 2017
 
The Central Virginia Community College Educational Foundation Board of Directors met at 8:00 AM on Wednesday, May 10, 2017.
 

X

Fred Armstrong

X

Larry Jackson

 

David Scott

 

Anthony Andrews

X

Bif Johnson

 

Mike Shadler

 

Sandy Baker

 

John Kenney

 

Karen Simonton

 

Alton Brown

 

Ryan McEntire

 

Georgeann Snead

X

Vivian Brown

 

Chet McPhatter

X

John Watts

X

Lewis Bryant

X

Jim Mercadante

 

Ben Witt

X

John Capps

X

Robert O’Brian

 

Cathy Woody

X

Kingsley Chukwu

X

Tulane Patterson

X

Mike Bradford

 

John Doyle

 

Kim Payne

X

Catherine Rice

X

Amy Gallagher

X

Kathryn Pumphrey

X

Wil Perez

 

Greg Graham

 

Mitch Reaves

X

Kris Ogden

           X = in attendance

 

CALL TO ORDER

Fred Armstrong, president of the Foundation, called the meeting to order.
 

APPROVAL OF MINUTES

On a motion from John Watts and seconded by Robert O’Brian, the minutes of the February 14, 2017 were approved by the Board.
 

COLLEGE REPORT

Dr. Capps asked Mike Bradford to present the new website to the board.   Mr. Bradford had the website projected onto the screen and along with Kris Ogden and Wil Perez pointed out the new design features and the rationale behind them.
·       The home page and the next level pages were all designed with the prospective student in mind to immediately connect them to CVCC.
·       The photos are intentionally large and engaging (and he recognized CVCC media specialist Jill Markwood for her work in this regard), the copy is less verbose and attempts to avoid jargon in providing answers to likely questions a new student or parent might ask.
·       The website presentation adapts to the screen used by the viewer, be it a phone, tablet or laptop.
·       The navigation tries to be concise and intuitive, and the pages present an overview of each topic that cuts across department lines. For instance, the “Paying for College” page includes information from Financial Aid, the Foundation, Accounting and Admissions, where before the website organization was based on each internal department rather than the needs of the viewer.
·       The Programs and Classes section is a centerpiece that allows students to explore various guided pathways to careers that interest them, while showing them all of the various credentials offered by CVCC in those career fields. At the program level, it shows the full list of classes required, the preferred order, and the intermediate credentials that are earned on the way to the ultimate credential.
·       When exploring career interests and the related programs, students will be shown all credentials and classes available, both credit and non-credit. CVCC is the first of the VCCS colleges to move to this “one door” method of presenting alternatives to students that include both Workforce Division and Academic Division alternatives in one place.
·       Lastly, the directors were given a preview of the next feature to be added which will allow students exploring various careers to see current local data on what these jobs earn, and how many job listings have been advertised within the last six months. It is anticipated that the guided pathways and the detailed career information will be become a widely used local resource for K-12 guidance counselors as well as for various non-profits and governmental entities who work with individuals seeking career advice and planning.
 
Dr. Capps noted that CVCC’s new website has received much praise from the staff at Virginia’s community colleges, from the VCCS Chancellor and the state board, and from other local educators and community leaders. He recognized and thanked all of the members of the committee that worked on this project. Jim Mercadante asked where the wages came from that were presented in the career pages.  Dr. Capps stated it came from recent job postings in Region 2000, which come from a national database driven by zip codes. Bif Johnson asked how long it took to create the site and Mr. Bradford informed him 12-15 months. 
 
Dr. Capps informed the board that the college would be conferring 1,265 certificates and degrees to 932 students at the May 11, 2017 graduation.  He noted that CVCC continues to lead the state in credentials this year, and as of April 30, 2017 CVCC has 1,372.
 
TREASURER’S REPORT
Lewis Bryant presented the board with the third quarter foundation financial statements. On the Summary page, he pointed out that the market value of the investments was $2,764,561, up from $2,733,961 at the last quarter. He stated that quarterly dividends were $9,482 and investment fees were $3,203, and noted the drop in manager fees showing in the quarterly numbers. Total revenues were $711,471, while total expenses were $857,898.  Of total expenses, program services, which includes scholarships awarded to students, equipment purchased for the college and various grants totaled $829,902.
 
A motion to approve the quarterly report was made by Tulane Patterson, seconded by Bif Johnson, was approved by the board.
 

FINANCE AND AUDIT COMMITTEE REPORT

Amy Gallagher presented items that came before the Finance Committee at their meeting on April 25, 2017. 
 
Ms. Gallagher informed the committee that Jim Beckett and Ellen Spong from Wells Fargo made a presentation at the finance committee meeting for the first quarter.  She stated that the foundation is in good shape and it was a good decision to switch.  Mr. Bradford informed the board that it would be some time before the quarterly reporting from Wells Fargo will have enough history to be fully useful, but it was good to have them here to review their reporting format with the committee, review their asset allocation rationale within the target ranges, and to explain their use Separately Managed Accounts (SMAs) for various equity segments instead of mutual funds. They are used because they are less expensive, have daily transparency as to equity holdings, and are not subject to disruptions caused by large inflows or outflows of investor dollars.
 
Ms. Gallagher next informed the board of a recommendation from Mr. Bradford to consolidate 29 funds with small balances on the CVCC Educational Foundation’s March 31, 2017 trial balance in category 040 (restricted scholarships). She noted that managing so many small accounts is inefficient for the foundation and accounting staff.
 
The committee’s recommendation is that funds on the Foundation’s March 31, 2017 trail balance in category 040-restricted scholarships which:
·       Have no new donor gifts made to the fund during the last 20 quarters, and have a March 31, 2017 balance of cash and investments of $575 or less, or
·       Have a March 31, 2017 balance of cash and investments of $250 or less, and no further gifts are expected,
Will be transferred and consolidated, as appropriate based on donor instructions or past usage, into either:
·       Fund 040-4600 if for general scholarships for tuition and fees, or
·       Fund 040-4286 if for scholarships for books only.
 
The board approved the recommendation from the Finance Committee of consolidating the 040-restricted scholarship accounts as stated above.
 
She then directed the board’s attention to the audit proposal letter from Brockman, Drinkard & Pennington for the year ending June 30, 2017.  The board approved the committee’s recommendation for Brockman, Drinkard & Pennington to be engaged as the auditors for the foundation for year ending June 30, 2017.
 
Lastly, Mr. Bradford informed the board that the Finance committee had an information item to bring to their attention, which could lead to a decision at the July finance committee.  He referenced a spreadsheet in the board package showing the history since FY12 of donations and expenditures from the World Class Workforce Fund, which originated during the foundation’s $4 million campaign in 2001 and 2002 to equip the new AREVA Technology Center project.  He informed the board that this is not an endowed fund. It can be spent entirely and can be used for any of the original purposes of the campaign (machining, welding, electronics, engineering technology and HVAC programs).  Over the years, he has targeted annual usage to average in the 4% range, which mimics the spending rate of the endowed funds.  Because repairing, replacing and maintaining the equipment in the machining center is getting more expensive as the number and complexity of the machines grows, the spending rate in the current year FY17 could be as high as 9.85%.  Even at this rate, the average over the last six years is still just 3.90% and the ending balance in the account will be higher than the balance six years ago.  He wanted the board to know that the college’s budget is under such stress for the upcoming FY18 that they may need assistance from the foundation at an elevated level again for the machining and welding programs. Larry Jackson remarked that we have to keep the machines working if we are going to successfully teach the students.
 

RESOURCE DEVELOPMENT COMMITTEE REPORT

John Watts presented items that the Resource Development Committee discussed at their meeting on April 26, 2017
 
Mr. Watts informed the committee that 142 invitations were mailed and approximately 50% responded to the Donor Appreciation Reception at Poplar Forest.  Out of 262 people invited, 62 attended.  Poplar Forest allowed the Foundation to move the party into the lower level of the house at the last minute, which made for a wonderful event.  He recognized the $2,500 sponsors:  Southern Air, BWX Technologies and Wells Fargo who made it possible for us to have such a first class party. The committee had discussed how often to have these donor events, and thought every other year would be appropriate. This generated some board member comments that every year might be better. Tulane Patterson remarked that donors don’t yet know CVCC’s needs and should be reminded annually, and Larry Jackson agreed. Kathryn Pumphrey also agreed and thought it would be good to bring donors onto the campus for the event on alternate years.
 
Mr. Bradford presented the Fund Raising Report for the third quarter. He informed the board that total contributions are at 64% of annual budget.  He stated that several larger donors give in the fourth quarter, and with those, he hopes to meet budget.  He will be focusing more on fundraising during the fourth quarter.  He informed the board that the employee campaign raised $22,865, a new record.   He informed the board that he will be meeting with Banker Steel next week concerning a gift to the Great Expectation fund. 
 
SCHOLARSHIP COMMITTEE REPORT
Mr. Bradford informed the board that the scholarship committee did not meet this quarter, but will be meeting in May and June as they review and approve scholarship applications.  They would normally meet in April to decide on Honors Scholarship applications, but there were no choices to be made as there were only one qualified applicant from each school that applied.
 

GOVERNANCE COMMITTEE REPORT

Mr. Bradford informed the board that the governance committee members all ended up with conflicts for the meeting date and did not meet this quarter.  He did inform them that included in the board packet was the updated 2017 listing of the members with the terms and expiration dates.  He also pointed to the revised Board Feedback Form which the committee worked on at its January meeting. He will be sending that out via email soon. A new section invites directors to make suggestions for new board members, which the governance committee will be begin reviewing at their late July meeting for terms to start in January 2018.   
 
FOUNDATION REPORT
Mr. Bradford stated that he appreciates all the help from the members, whether in signing letters and/or contacting donors or helping with event.  It is appreciated and is working.  He also reminded the members to take their CVCC 50th Anniversary magazine with them.  This was a year-long Project between Jill Markwood (photos and graphic design) and Irene Wheeler (copy) and has turned out very impressively.
 
He let them know that he is trying to wrap up the board member campaign over the next two months and depending on their past giving they could be getting solicitation letters at home and at work.
 

OLD BUSINESS

Mr. Armstrong thanked the staff for all their work.
 

NEW BUSINESS

There was no new business to report.
 

ADJOURNMENT

There being no further business, the meeting adjourned at 8:56 AM.  The next meeting is scheduled for Tuesday, August 15, 2017.

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