Board of Trustees Meeting Minutes Present: Absent With Excuse: Staff: Guest: Yoshiko Fong, Jeanette Gordon, Michael Hagerthy, John Paul Isaacson, William Lewis, Jorge Ramirez, Leila Ricci, Frank Saito, Mae Santos, Molly Talcott, Shane Vera, Nancy Warter-Perez, Mongwei Wee, Tony Wong, Lisa Chavez, William Covino, Janet Dial Marlene Carney, Morris Jones, Omel Nieves Jose Gomez, Senior Vice President and Chief Operating Officer Thomas Leung, University Controller Mario A. Perez, Associate Vice President for University Advancement Jane Rhee, Administrative Assistant, University Advancement Maria Ubago, Executive Director, Alumni Association Sasha Perez, ASI Vice President of External Affairs and Advancement John Paul Isaacson called the meeting to order at 11:31 a.m. President s Report Approval of Minutes The draft minutes of the June 26, 2014 Board of Trustees meeting was presented for review and approval. Motion to approve the minutes of the June 26, 2014 Board of Trustee meeting, as presented, was moved by Dr. Leila Ricci and seconded by Ms. Yoshiko Fong. Sub-Committee Assignments If any Trustee would like printouts of their elected committee roles and responsibilities, printouts are available for reference. 2015 Calendar of Meetings Schedule The meeting schedule for calendar year 2015 was presented to the Board. Dr. Dial noted that the 2015 fall meeting will convene on September 24, 2015, and not on October 1, 2015, as proposed on the schedule. The Board approved annual audited financial statements are due to the CSU Chancellor s Office every year on October 1 st, thus the Board will continue to meet on the last Thursday of every September to ensure that this deadline is met. An updated meeting schedule with the correct meeting date of September 24, 2015 will be resent to the Board.
Page 2 Cal State L.A. President Covino s Report Today marks the first day of the academic calendar year. President Covino reported that the 2014-15 enrollment admitted 1,500 more students than 2013-14, about approximately 24,500 students. President Covino continued to report on some university highlights, such as the new 24/7 accessible computer lab, as well as, the opening of the Dreamers Resource Center, a much needed resource and support system for undocumented students on campus. He also reported that he just received news that the Charter College of Education was awarded a competitive federal grant of $11M that will focus on a residential teacher program. Year 2 of the Quarter to Semester (Q2S) conversion vigorously continues with curricular review and redesign, with reportedly 4,500 courses and programs having been converted to a semester course, thus far. Proactive academic advisement for students who are completing their degree after the semester conversion will begin this fall to ensure successful unit conversion and timely graduation. A new branding initiative is in progress in hopes to bring more visibility to the campus from the surrounding community and Los Angeles region. Feedback from various stakeholders, including the Board, is scheduled for this quarter, so please anticipate being contacted to participate in focus groups. Two upcoming notable events mentioned was the exhibition men s basketball game between Cal State L.A. Eagles and the USC Trojans on November 8 th at the USC Galen Center, and the annual Billie Jean King & Friends Gala dinner is October 11 th at the Langham Pasadena Hotel. Lastly, President Covino reported that all seven (7) commencement ceremonies this past June were successful, and we anticipate hosting seven ceremonies for continuing graduating classes. Committee Reports Audit Committee Mongwei Wee referred to Macias Gini & O Connell (MGO) Audited Financial Statements FY 2013-14 Jim Godsey and Lana Dich from MGO Certified Public Accountants Mr. Godsey reported on the Fiscal Year 2013-14 Audited Financial Statements, providing an overview of all pertinent documents, including the Independent Auditor s Report cover letter, and the required SAS 114 letter, which communicates the roles and responsibilities of the auditor and any significant audit findings. Mr. Godsey reviewed the Statement of Financial Position, State of Cash Flows, and provided a brief overview of Notes 1 through 10, located on pages 7 through 16. On behalf of the Audit Committee, Ms. Wee recommends Board approval of the audited financial statements as presented. Motion to approve the CSULA Foundation Independent Auditor s Report, Financial Statements and Supplementary Information, June 30, 2014, as presented by MGO was made by Mr. Frank Saito and seconded by Jeanette Gordon. Development and Gift Acceptance Committee Jorge Ramirez Fundraising Report Janet Dial presented the Fundraising Report, which included an update on FY13-14 fund raising totals, first quarter highlights, recent donation highlights, and a list of upcoming events with dates.
Page 3 Dr. Dial reported that we anticipate private giving receivables to reach over $5.9M, an increase from last year s $4.4M. Of the $5.9M, $4.8M is earmarked for CSULA Foundation accounts. Providing an overview, Dr. Dial confirmed that the Foundation has received another gift from the Dermody Estate, reporting that this estate is anticipated to reach approximately $1M. She mentioned two exciting new gifts to the Tennis Center, also stating that all members of the Billie Jean King Sports Complex Campaign Committee have made a financial commitment towards this campaign. Dr. Dial reported that several Trustees are table sponsors and/or have purchased seats for the October 11 th dinner gala and encouraged all Trustees to attend this annual fundraiser. If there are any silent auction items the Board are able to procure, please contact her and her staff. There was mention of the Presidential Reception for the Board of Trustees at President Covino s residence on Saturday, October 25 th. Please be sure to RSVP to James Cuaresma via the email invite. Dr. Dial elaborated on the exhibition men s basketball game between USC and Cal State L.A. on November 8 th, informing the Board of the pre-game mixer in the 1880 Room at the Radisson, across the street from the Galen Center. She encouraged the Trustees to all attend and cheer on the Golden Eagles. A new upcoming event is the first 50 th Reunion Event for the graduating Class of 1965 sometime next year. This class has approximately 2500 members and Dr. Dial hopes that this will launch the university s Half-Century Club. Eventually, the plan is to add a 25 th Reunion Event, as well, and there will be more details to follow. Lastly, Dr. Dial introduced Dr. Mario Perez, the new Associate Vice President for University Advancement, who has joined this meeting on Day 4 of his appointment. As the AVP for the division, he will be responsible for the frontline fundraising team and he has already met with potential candidates for Director of Development. We are seeking to fill several positions for the college based development directors and look forward to divisional growth. Governance Committee John Paul Isaacson Board Acknowledgements Mr. Isaacson presented to the Trustees Sasha Perez, the ASI Student Representative who will serve on the Board of Trustees for FY 2014-15. Ms. Perez introduced herself to the Trustees and the Trustees asked Ms. Perez to briefly excuse herself from the Board. The Trustees had no concerns. Motion to acknowledge and approve Sasha Perez to serve as the Foundation Student Representative for Fiscal Year 2014-15, commencing September 25, 2014, was made by Molly Talcott and seconded by Nancy Warter- Perez. Investment and Finance Committee John Paul Isaacson Manager Change/Update On behalf of the committee, Mr. Isaacson reported that the committee reviewed two managers within the Foundation portfolio. Under review and consideration are three other managers, and we can anticipate manager changes in the coming months. The Stone-Beck Group will provide more information at a future date with options for the committee to consider in changing managers and the committee will report to the Board at the following meeting. Mr. Isaacson also reported that asset management has passed the $25M threshold and that the portfolio is currently a little over $26M. Treasurer s Report No Report.
Page 4 Executive Director s Report University Advancement Personnel Dr. Dial reported organizational infrastructure changes, such as the move for one of the senior directors to a position and role better suited within the division, opening a vacancy for the Foundation and Corporate Relations Director of Development. She shared an update on the development director search of 46 applicants, of which strong candidates have been identified, and they will be proceeding with interviews shortly. Dr. Dial also shared other positions in the division of University Advancement, and reported on the anticipated expansion for the Annual Fund and Alumni Relations departments. Campaigns Some notable campaigns that are in progress are the Billie Jean King Sports Complex minicampaigns of approximately $5M, target goal for January 2016. Already in motion is the Honors College Early Entrance Program Learning Lab mini-campaign to raise funds towards a more robust computer lab and resource center for the Honors College students. Pat Brown Institute has various potential mini-campaigns in progress, and the Dreamers Resource Center campaign will be underway shortly. College based programs on campus such as the Simulation Lab and Nursing Lab are other fundraising opportunities that will be set aside for future campaigns as the division begins to bring onboard college based development directors who can take lead on these college specific fundraising campaigns. Each dean from the academic colleges, including the University Library, Honors College, and the College of Professional and Global Education (extended education), has been asked to propose their short- and long-term fundraising goals for their college. Working closely with the colleges, we will help them create a customized fundraising strategy specific to their college to support their programs. Dermody Estate Dr. Dial reported to the Board that although the Dermody Estate gift received through Planned Giving is for student scholarship funds, it does not specify whether the gift is to be spent outright as annual scholarships or invested over time as an endowment with the earnings to support student scholarships. It is the recommendation of staff that this gift be managed as an endowment due to its gift size (estimated at $1M). If invested in perpetuity, the returns to the University will support more students over time. Discussion to clarify endowment designation followed. Motion to approve the Dermody Estate gift as a quasi-endowment was made by Frank Saito and seconded by Leila Ricci. Other Business Mr. Isaacson shared with the other Trustees an upcoming event hosted by The Stone-Beck Group at Morgan Stanley on October 8 th at the Oakmont Country Club. They will be discussing sustainability and impact investing. Staff will forward the flyer invite to the Board for any Trustees who would like to attend. Next Meeting The next CSULA Foundation Board of Trustees meeting will convene Thursday, January 29, 2015, at Cal State L.A., Raquel Soriano Board Room. With no other business, a motion to adjourn was made by Tony Wong and seconded by Michael Hagerthy. The meeting was adjourned at 12:30 p.m.