Meeting of the Board of Directors
November 10, 2012

The 190th meeting of the Board of Directors of the Capital District Kiwanis Foundation was held on Saturday, November 10, 2012 at the Fredericksburg hospitality House.

President H.L.Marks opened the meeting at 10”00 AM, Roy Sheets led the Pledge of Allegiance and Brian Bell gave the invocation.

The following members were in attendance:

H. L Marks Ron Reynolds Roy Sheets
Marion Allen Charles Adams Tom Varner
John Fox Don Jones Jon Rife
Fred Nugent Brian Bell Rosemary Cummings
Joe Maranto Floyd Brown Stan Miller
Tim Wesling Robert Reilly Harry Kriemelmeyer

Approval of the Amended Agenda: Motion by Charles Adams and seconded by Tim Wesling to accept the amended agenda. Motion passed.

Minutes of the August Meeting: Motion to approve the amended minutes as circulated was made by Ron Reynolds and seconded by Rosemary Cummings. Motion passed.

Treasurer Report: Marion Allen presented the Treasurer’s report to the Board for the period ending September 30, 2012.Total Assets were reported as $700,450.54. Investments at market are $684,570.74. Marketable CD’s at $212,920.15. Total equities are $131,410.75. Our mutual funds value at $430, 024.96. The Lombard regular funds are $2008.12 and the Kopeland fund at $8206.76. Total cash balance is $10,214.88. Total net assets are $674,834.54. Total revenue, gains and other are $50,750. Total Expenses and losses are $6,666.76. Net Assets are $674, 834.34. The complete treasurer’s report is made a permanent part of the minutes. Ron Reynolds moved to accept the report. Seconded by Rosemary Cummings. Motion passed.

Life Membership: Secretary Charles Adams reported that there 2786 Life memberships at this time and they are recognized on the CDKF web site.

Caring Corner: Ron Reynolds reported that we need to start getting hand crafted items for the August DCON.

Ducky Derby: Joe Maranto reported that we generated $11,000 at this year’s derby.

Teenager of the Year: Roger Diehl will be sending out requests for nominations.

Founder’s Society – No recent Founder’s Society applications have been received since the last board meeting. Chairman Bob Cressy reminded members that over $109,000 has been raised with this program which is 1/6th of the CDKF assets. Funds stay in the District supporting our Capital District Kiwanis Sponsored Leadership Programs. Marketing this program is the prime responsibility of CDKF Board members to educate/sell the merits to their Divisions and clubs. We can still build this program.

Finance Committee – Stan Miller moved that we roll over the maturing 1/29/2013 Certificate of Deposit for $25,000 for another 12 months. Second by Ron Reynolds. Motion passed. The Finance Committee reviewed the 2012-2013 budget which will be presented later.
A motion was made by Brian Bell that on any purchases, all fees, commissions, any discounts or other charges shall be broken out in our CDKF financial report. Seconded by Joe Maranto. The vote was 9 yes, 7 no. The motion passed. A motion was made by Marion Allen, Treasurer, to put the above passed motion as footnotes to the report. Second by Ron Reynolds. Vote was 12 yes, 2 no – motion passed.
Chairman Stan presented securities transaction costs from Lombard Securities, Inc. (Advisor Bob Cressy’s firm) for year 2012 to November 2012. Those MFS approved previously were:
1. 2/8/2012 – No cost to sell $15,000 of Alliance NFJ Dividend Value Dividend Fund (PNEAX) for relative performance reasons.
2. 2/9/2012 – a Buy of $15,000 of American Funds Small Cap World Growth & Income (SMWCX) to ‘Add to Position’ at a cost of $373.50. All American Funds MFs receive a Rights of Accumulation (ROA) discount level of $250K, a cost of 2.5% vs. 5.75%. Reason: better performance.
3. 2/8/2012 – Exchange at no cost, $10,000 of Amer. Fds. Capital Income Builder (CAIBX) into Amer. Fds. Small Cap World G & I (SMWCX)
4. 2//9/2012 – Exchange at no cost, $10,000 of Amer. Fds. Capital World G&I (CWGIX) into Amer. Fds. Small Cap World G& I (SMWCX)
5. 2/9/2012 – a Buy of $15,998 of JP Morgan Mid Cap Fund (JCMAX) at a cost of $841.49 at 5.26% purchase cost.

Total equity MF costs for 2012: $1,214.99. Approved at the February meeting.
Total CD Costs for 2012
1. 2/15/2012 - CD for $50,000 matured 2/15/12. No cost.
2. 2/27/2012 - CD for $25,000 matured 2/27/12. No cost.
3. 3/16/2012 - CD for $75,000 purchased with maturity of 3/21/2013. Cost $2.50.
4. 9/14/2012 - CD for $25,000 matured 9/14/12. No cost.
5. 9/21/2012 - CD for $25,000 purchased with maturity of 9/26/2013. Cost $2.50.

There were no other charges. There is no “asset management percent fee” on CDKF total assets.

Financial Advisor’s Report – Bob Cressy presented a complete report to the Financial Committee as an attachment to the CDKF minutes. He highlighted items from that report including performance of assets compared to industry benchmarks, total values, dividends & interest, costs, and general market & economic conditions. Total annual income estimate is $11,557 from investments. Asset class market value summaries are:
Fixed Income (CD’s) is $201,496
Equity Mutual Funds $396,422
Bond Mutual Funds $ 63,997
Total Investment Assets $661,365

There also is the Kopeland CDKF Fund which is restricted. Assets are one CD at $12,996 and $8,207 in FDIC money market for a total of $21,203. Bob Cressy reported that CDKF assets have recovered very well since the market lows of 2009.

New Business

CDKF Budget
Total income of $40,600. Total expenditures of $42, 200. Deficit of $1,600. Approved budget is made a permanent part of the minutes. Rosemary Cummings moved to accept the budget. Second by Brian Bell. Amendment by Ron Reynolds to take $1,600 from the Kopeland fund to balance the budget Second by Stan Miller. Motion passed. Budget as amended passed.

Grant Requests- Don Jones reported one application had been received from Boys and girls Club which was denied due to a lack of CDKF Funds. Stan Miller moved that we temporarily suspend grants due to economic conditions. Second by Ron Reynolds. Motion passed.

Bylaws and Policy Committee- Joe Maranto reported that Ron Reynold’s committee
Made changes recommended by Diana O’Brien of KI to bring the bylaws in compliance with what the KI Board will Approve. The CDKF Board approved the new bylaws and policies which will be sent to the District board for approval. If approved by the District Board, they will be sent to KI for final approval.

President’s Comments:
H.L. Marks passed out “Talking Points” from the Member Benefits Committee for use by the Directors of CDKF.

There being no further business to come before the Board, A motion to adjourn was made by Charles Adams, Second by Stan Miller. Motion passed. President H.L. Marks adjourned the meeting.

The next Board meeting will be on February 9, 2013 at 10:00 AM in the Patrick Henry Room at the Fredericksburg Hospitality House. The Finance Committee will meet at 9:00 AM in the same room.

Respectfully submitted,
Charles Adams, Executive Secretary
Capital District Kiwanis Foundation