Spring 2020 FAMU Foundation Board of Directors Meeting

Thursday, May 21, 2020 |Virtual Meeting

Thursday, May 21, 2020

10:25 a.m. – 11:25 a.m. EDT

Connect by Telephone: 877-884-1929 | Conference ID: 8662998

Agenda

I. Call to Order

II. Roll Call

III. Conflict of Interest Disclosure

IV. Approval of Minutes

a. April 7, 2020, Finance & Investment Committees Teleconference

V. Status of Action Items

a. November 22, 2019, Finance Committee Meeting

1. Breakdown of Salary Expenses at 09/30/2019

2. Interest bearing account for funds due to the University

3. Analysis of Budget

4. Task Force to assist Athletics

5. Presentation of Athletics' revenue growth

6. Discretionary fund for annual budget

7. Life Insurance policies follows Generally Accepted Accounting Principles

b. April 7, 2020, Finance Committee Meeting

8. Clarity of funds violates contingency reserves policy

9. Total funds provided by Foundation to support Athletics

10. Whether a reserve is needed for future support of Athletics

VI. New Business

a. Quarterly Finance Reports Review

b. Proposed Fiscal Year 2020-2021 Operating Budget

VII. Other Items

VIII. Adjournment

FINANCE COMMITTEE

FLORIDA A&M UNIVERSITY FOUNDATION, INC.

Finance Committee

Status of Action Items

No. Topic Committee

Liaison

Status

V.a.1. Provide a breakdown of the salary expense to the

Budget.

Shawnta Friday-Stroud

Juanita Johnson

Completed

V.a.2.

Review the possibility and advise of the interest

gained from having a separate, interest bearing

account to fund quarterly funds to the University.

Shawnta Friday-Stroud

Juanita Johnson

Completed

V.a.3.

Put on the table an analysis of the Budget, so that

Board is aware of all that is going on with the

Budget.

Shawnta Friday-Stroud

Juanita Johnson

Budget

Workshop

V.a.4. Director Whittley’s interest in he and other Board

members serving on a task force to assist Athletics. Shawnta Friday-Stroud

Juanita Johnson

Pending

V.a.5.

Director Crossman’s request to review a simple

presentation on Athletics’ revenue growth plan,

potential Foundation Board’s assistance.

Shawnta Friday-Stroud

Juanita Johnson

Pending

V.a.6.

Director Crossman’s request of the Board to

consider budgeting yearly to include a

discretionary fund for available funds in

preparation for end of the year requests.

Shawnta Friday-Stroud

Juanita Johnson

Budget

Workshop

V.a.7.

Staff to follow generally accepted accounting

principles (GAAP) for recording life insurance

policies.

Shawnta Friday-Stroud

Juanita Johnson

Completed

V.b.8.

Provide clarity as to whether the use of funds

violates the contingency reserves policy. Shawnta Friday-Stroud

Juanita Johnson

Completed

V.b.9.

Provide the amount of funds that the Foundation

has supported FAMU Athletics with over the past

three years.

Shawnta Friday-Stroud

Juanita Johnson

Completed

V.b.10.

Discussion is needed regarding whether a reserve

is needed for any future claims that may come out

of Athletics.

Shawnta Friday-Stroud

Juanita Johnson

Contingency

Workshop

FINANCE & INVESTMENT COMMITTEES MEETING MINUTES Florida A&M University Foundation Board of Directors

Tuesday, April 7, 2020 | 4:30 p.m. – 5 p.m.

Teleconference

Finance Committee Members Present

Dir. Twuanna Munroe Ward, Chair

Dir. Kenneth Neighbors, Vice Chair

Dir. Hosetta Coleman

Dir. Clifton Goins, IV

Dir. Monica Williams Harris

Dir. Lenetra King

Dir. Alan Robertson

Dir. Tirrell D. Whittley

Finance Committee Members Not Present

Dir. John Crossman

Dir. John Green

Dir. Laurence Humphries

Dir. Thomas Jones, Jr.

Investment Committee Members Present

Dir. Clifton Goins, IV, Chair

Dir. Marcelia Freeman, Vice Chair

Dir. Gregory Clark

Dir. Lorin Crenshaw

Dir. Lisa LaBoo

Dir. Kenneth Neighbors

Dir. Larry Robinson

Dir. T.J. Rose

Dir. G. Scott Uzzell

Investment Committee Members Not Present

Dir. William Bryant

Dir. John Crossman

Guests Present

Dir. Alfreda Blackshear

Dir. Jemal Gibson

Dir. Akunna Olumba

Dir. Belvin Perry, Jr.

Mr. David Self, University Attorney

Staff Present

Ms. Kim Hankerson

Ms. Juanita Johnson

Ms. Kristen Florence

Mrs. Audrey Simmons-Smith

Ms. Brandi Tatum-Fedrick

Ms. Angie Wiggins

Call to Order and Roll Calls

The meeting was called to order at 4:32 p.m. by Chair Twuanna Munroe Ward. Ms. Angie Wiggins

called the rolls and confirmed quorums for both the Finance and Investment Committees.

Conflict of Interest Disclosure

Chair Munroe Ward and Chair Clifton Goins requested that Committee members disclose any

conflict of interest with items on the Agenda; none were disclosed.

Approval of Minutes

February 20, 2020, Finance Committee Teleconference

Director Kenneth Neighbors moved to approve the minutes; Director Lenetra King seconded the

motion. The minutes were approved, unanimously.

Finance & Investment Committees Meeting Minutes

April 7, 2020

Page 2 of 2

Approval of Support to University

FAMU Board of Trustees (BOT) Settlement Agreement

Chair Munroe Ward informed the Committee that the meeting today is to follow up on the $400K

request from the FAMU BOT to satisfy the amount in a recently negotiated settlement agreement.

This financial request was discussed in great length during the February 20, 2020, Finance

Committee Teleconference, followed by a request for the Investment Committee to be involved in

the decision-making process. Staff was given directions to prepare options and provide responses

to the questions from the Finance Committee members and guest Directors on the call. Staff

advised that the previous request for $400K has been reduced to$338K, then proposed the

following resolution:

• President Larry Robinson will provide $62,000 from his available funds.

• There is a balance of $438K that has not been drawn down in the current Contingency Revenue.

The $338K can be provided to satisfy the settlement agreement, leaving a balance of $100K.

The following motion was made:

Motion: To approve the revised request of $338K toward satisfying the FAMU

BOT’s recently negotiated settlement agreement.

Moved By: Director Kenneth Neighbors

Seconded By: Director Alan Robertson

The comments during the discussion are listed below.

• Clarification was requested regarding the guidelines and governing principles around uses of

contingency funds.

o Staff advised that the funds can be used for University support; no exclusion for legal fees.

• Staff to provide clarity as to whether or not the use of funds violates the contingency

reserves policy.

• Staff was requested to provide the amount of funds that the Foundation has supported

FAMU Athletics with over the past three years.

• A discussion is needed regarding future claims that may come out of Athletics.

o A suggestion was made to establish a settlement account fund for lawsuits that the

Foundation has to pay, budget for it, and roll it over to the next year based upon prior years.

After discussion, the following friendly motion was made:

Motion: To approve the revised request of $338K toward satisfying the FAMU

BOT’s recently negotiated settlement agreement provided that it does

not violate any policies.

Moved By: Director Kenneth Neighbors

Seconded By: Director Alan Robertson

The motion passed with one opposition to the vote.

Other Items/Adjournment

None were presented. The meeting was adjourned at 5:21 p.m. by Chair Twuanna Munroe Ward.

Minutes Prepared By

Ms. Angie Wiggins

V. a.1.

Breakdown of

Salary Expense

July 2019 thru

Description Annual September 2019

Staff Salaries (Filled positions) per University Budget Office $644,879 $161,220

President Salary (Foundation) per University Budget Office $269,210 $67,303

As reported on 09/30/2019 Budgetary Comparison $228,522

FAMU Foundation

Salary Expense Breakdown at 09/30/2019

V. a.2.

Separate,

Interest Bearing Account

(Regions Bank)

RE: Separate Account at Regions

Travis Yelverton <travis.yelverton@regions.com>

Thu 5/7/2020 2:30 PM

To: Johnson, Juanita <juanita.johnson@famu.edu>

Juanita,

We certainly can provide an interest bearing account for this purpose.

Interest rates are very low at present due to the COVID environment and the economic steps the Federal

Reserve has taken last couple of months.

If the $1.5 million remained through one year it would yield $1,500 per the below chart, but earn less with

monies drafted for budget expense during the fiscal year.

One item to note, in the operating account those funds currently earn 0.25% in earnings credit against monthly

service fees, so the current 0.10% in a money market account would be a reduction. But I understand this

discussion also is an element of separation of funds between operating and reserves.

For these type accounts, three withdrawals are allowed per month. Each electronic transaction costs $0.30, and

there is no monthly maintenance fee.

An account like this could also see interest rates rise if the Fed restores rates toward pre-COVID levels, where

earnings credit rates are more static.

Happy to discuss further as needed as these discussions continue.

Best,

Travis

Travis Yelverton | Commercial RM | VP Regions Bank

Office: 850.701.8431 | Mobile/Text: 850.322.5792

2000 Capital Circle NE, Tallahassee, FL 32308

travis.yelverton@regions.com | www.regions.com

V. b.8.

Legal Opinion –

Utilization of Funds

M-E-M-O-R-A-N-D-U-M

TO: Dr. Shawnta Friday-Stroud

Florida Agricultural and Mechanical University Foundation, Inc.

FROM: Andrea V. Nelson, Esq.

Nelson Law Firm, PLC

DATE: April 27, 2020

RE: Potential Utilization of FAMU Foundation Funds for University Lawsuit

Settlement

Issue

Whether the FAMU Foundation (“Foundation”) is authorized to utilize funds from operating

and/or contingency to pay a lawsuit settlement on behalf of Florida A&M University

(“University”) and remain compliant with its governing documents.

Governing Documents

A review and analysis of the following Foundation governing documents are relevant to the issue

presented above:

1. Sec. 1004.28, Fla. Stat.

2. Board of Trustees Policy Number 2018-01, adopted June 7, 2018

3. Amended and Restated Articles of Incorporation, dated November 18, 2006

4. First Restatement of the Bylaws of the FAMU Foundation, adopted January 9, 2019

Analysis

No provision within the above-referenced governing documents prohibits the Foundation from

utilizing operating and/or contingency funds to pay a lawsuit settlement on behalf of the

University. The governing documents grant broad powers. As long as the Foundation adheres to

endowment restrictions and budgetary guidelines and procedures, it remains compliant.

The relevant Florida law grants broad powers to organizations such as the Foundation. The

Foundation derives its legal authority from sec. 1004.28, Fla. Stat., which defines “university

direct-support organizations” (“DSOs”) as not-for-profit entities organized for the benefit of the

university and consistent with the goals of the university in which it supports. See Sec. 1004.28(1),

Fla. Stat.

Sec. 1004.28 directs the FAMU Board of Trustees (BOT) to develop guidelines to regulate

University DSOs. The BOT Policy Number 2018-01 regulates University DSOs, in general, and

requires DSOs to adopt articles of incorporation and bylaws that comply with sec. 1004.28, Fla.

Stat. The powers granted in the policy are broad and general. It has some prohibitions but none

prohibiting the use of Foundation funds to pay University lawsuit settlements.

Memorandum to Dr. Shawnta Friday-Stroud

FAMU Foundation

The Foundation is identified specifically as a DSO in its Amended and Restated Articles of

Incorporation, dated November 18, 2006. Broad powers are granted to expend Foundation funds

“in any manner which its Board of Directors shall determine to be beneficial to education and the

University.” See Article III.2 and 5.

Upon review of the First Restatement of the Bylaws of the Foundation, adopted January 9, 2019,

it identifies the primary responsibility of the Foundation is to “make expenditures to and for the

benefit of the University and to operate in the best interest of the University consistent with the

University’s goals and mission.” See Article I, Section 1. The bylaws also contain provisions

relating to budgets, the budget process, and expenditures plans. See XIII. The bylaws along with

internal Foundation investment and budget policies and procedures would dictate the manner of

expenditures. There is no express prohibition using Foundation funds to pay a University lawsuit

settlement.

Conclusion

The Foundation’s governing documents do not contain prohibitions against the use of operating or

contingency funds to pay a lawsuit settlement on behalf of the University. As long as the

Foundation does not use restricted funds (e.g., endowed funds) to make the payment and it

complies with the internal fiscal/budgetary guidelines, such an expenditure would not violate the

Foundation’s governing documents.

VI. a.

Quarterly

Finance Reports Review

Unaudited Unaudited Audited

3/31/2020 3/31/2019 % Variance 6/30/2019

Assets

Current assets

Cash and cash equivalents 2,568,571$ 509,961$ 404% 1,455,463$

Investments 3,984,348 4,207,767 -5% 3,468,501

Accounts receivable 6,200 147,302 -96% 76,645

Prepaid expenses 428,547 854,315 -50% 216,115

Total current assets 6,987,666 5,719,345 22% 5,216,724

Noncurrent assets

Restricted assets

Pledges receivable, net 488,884 1,047,553 -53% 748,875

Investments, net of current portion 106,185,939 122,483,547 -13% 123,584,808

Capital Assets

Nondepreciable assets, primarily land 27,000 27,000 0% 27,000

Depreciable property and equipment, net 164,241 138,813 18% 168,228

Total noncurrent assets 106,866,064 123,696,913 -14% 124,528,911

Total assets 113,853,730 129,416,258 -12% 129,745,635

Liabilities

Current liabilities

Accounts payable and accrued expenses 277,544 322,926 -14% 704,495

Scholarships payable 2,017,482 1,774,670 14% 1,542,828

Salaries payable 241,711 - 24171000% 1,262

Agency funds 2,606,122 2,264,125 15% 2,557,135

Other current liabilities - - 0% -

Total current liabilities 5,142,859 4,361,721 18% 4,805,720

Noncurrent liabilities

Scholarships payable, net of current portion 2,143,666 1,780,573 20% 1,780,573

Deposits 5,825 4,000 0% 4,000

Total noncurrent liabilities 2,149,491 1,784,573 20% 1,784,573

Total liabilities 7,292,350 6,146,294 19% 6,590,293

Net Position

Net investment in capital assets 191,241 165,813 15% 195,229

Restricted

Expendable 14,362,140 31,825,039 -55% 33,831,522

Nonexpendable endowments 87,562,895 87,661,363 0% 86,164,453

Unrestricted net assets 4,445,104 3,617,749 23% 2,964,138

Total net position 106,561,380$ 123,269,964$ -14% 123,155,342$

STATEMENTS OF NET POSITION

For the Quarters Ended March 31, 2020 and 2019, and the Year Ended June 30, 2019

FLORIDA AGRICULTURAL AND MECHANICAL UNIVERISTY

FOUNDATION, INC.

(A Discrete Component Unit of Florida Agricultural and Mechanical University)

Unaudited Unaudited Audited

7/1/2019 - 3/31/2020 7/1/2018 - 3/31/2019 % Variance 6/30/2019

Operating revenues

Contributions, net 3,633,877$ 2,951,627$ 23% 4,276,807$

Net realized and unrealized gain/(loss) (15,454,694) 1,469,850 -1151% 4,737,786

Interest and dividends 637,514 989,535 -36% 1,336,557

Miscellaneous income 1,274,732 1,174,626 9% 1,693,983

Dues and subscriptions 81,630 48,216 69% 87,229

Total operating revenues (9,826,941) 6,633,854 -248% 12,132,362

Operating expenses

University support expenditures 4,418,895 5,827,783 -24% 9,106,237

Scholarships and grants 1,953,736 1,768,373 10% 2,559,029

Fundraising 856,907 900,478 -5% 1,887,836

Management and general 935,925 715,045 31% 1,504,441

Total operating expenses 8,165,463 9,211,679 -11% 15,057,543

Operating income/(loss) (17,992,404) (2,577,825) 598% (2,925,181)

Income (loss) before other revenues (17,992,404) (2,577,825) 598% (2,925,181)

Contributions to permanent endowments 1,398,442 986,479 42% 1,219,213

Change in net position (16,593,962) (1,591,346) 943% (1,705,968)

Net position, beginning of year 123,155,342 124,861,310 -1% 124,861,310

Prior period adjustments - - -

Net position, beginning of year, as restated 123,155,342 124,861,310 -1% 124,861,310

Net position, end of year 106,561,380$ 123,269,964$ -14% 123,155,342$

STATEMENTS OF REVENUES, EXPENSES AND

CHANGES IN NET POSITION

For the Quarters Ended March 31, 2020 and 2019, and the Year Ended June 30, 2019

FLORIDA AGRICULTURAL AND MECHANICAL UNIVERISTY

FOUNDATION, INC.

(A Discrete Component Unit of Florida Agricultural and Mechanical University)

University Scholarships Management & University Scholarships Management &Support and Grants Fundraising General Total Support and Grants Fundraising General Total

Scholarships and grants -$ 1,953,736$ -$ -$ 1,953,736$ -$ 1,768,373$ -$ -$ 1,768,373$ Salaries and fringe benefits 1,023,188 - - 474,530 1,497,718 1,073,547 - - 322,253 1,395,800Contract services 418,352 - - 29,680 448,032 1,162,484 - - 46,588 1,209,072Equipment purchases 245,870 - - 98,124 343,994 320,037 - - 25,085 345,122Travel and meetings 260,756 - 111,753 46,538 419,047 314,331 - 134,713 37,611 486,655Materials and supplies 328,455 - 140,767 23,283 492,505 201,722 - 86,453 9,602 297,777Professional fees 219,971 - 94,273 20,530 334,774 293,193 - 124,583 57,500 475,276Entertainment and dinners 476,511 - 204,219 75,191 755,921 604,444 - 259,047 57,263 920,754Repairs and maintenance 143,605 - - 63,096 206,701 7,055 - - 66,986 74,041Postage 5,732 - - - 5,732 7,455 - - 684 8,139Dues and subscriptions 48,509 - - 298 48,807 97,012 - - 460.00 97,472Insurance 18,452 - - 13,351 31,803 7,177 - - 12,544 19,721Equipment rental 130,799 - - 2,174 132,973 175,582 - - 2,166 177,748Printing and advertising 46,886 - 20,094 726 67,706 54,864 - 23,514 530 78,908Telephone 402 - - 1,160 1,562 96 - - 476 572Rent 29,440 - - - 29,440 90,562 - - - 90,562Depreciation - - - 12,630 12,630 - - - 12,214 12,214Utilities 4,766 - - 36,339 41,105 4,572 - - 30,052 34,624Training and seminars 75,005 - 26,510 12,237 113,752 75,041 - 27,456 15,237 117,734Taxes and licenses 23,287 - - 1,722 25,009 16,226 - - 1,204 17,430Bank charges 33,124 - - 5,110 38,234 27,396 - - 1,813 29,209Contributions 151,972 - 65,131 19,206 236,309 115,722 - 49,595 14,777 180,094Other university support 700,000 - - - 700,000 1,218,805 - - - 1,218,805 Provision for uncollectible pledges - - 179,775 - 179,775 - - 213,267 - 213,267Interest 249 - - - 249 565 - - - 565 Miscellaneous 33,564 - 14,385 - 47,949 (40,105) - (18,150) - (58,255)

Total 4,418,895$ 1,953,736$ 856,907$ 935,925$ 8,165,463$ 5,827,783$ 1,768,373$ 900,478$ 715,045$ 9,211,679$

Program Services Program Services

Florida Agricultural and Mechanical University Foundation, Inc.

STATEMENTS OF FUNCTIONAL EXPENSESFor the Quarters Ended March 31, 2020 and 2019

March 31, 2020 March 31, 2019

Unaudited Unaudited Audited

3/31/2020 3/31/2019 % Variance 6/30/2019

Assets

Current assets

Cash and cash equivalents 2,568,571$ 509,961$ 404% 1,455,463$

Increase of $2M due to increase in revenues received of $1M

and $1M draw down from Investment funds for Scholarships.

Scholarships paid in May.

Investments 3,984,348 4,207,767 -5% 3,468,501

Increase of $910K primarily due to $630K transfers to Restricted

fund for Operating Budget various University Support expenses.

Accounts receivable 6,200 147,302 -96% 76,645

Decrease of $106K is due to write off of rents for Orange Ave.

properties in June 2019.

Prepaid expenses 428,547 854,315 -50% 216,115

Decrease of $425K is due to decrease of $325K in Contract

Services for CAFS 2019 Assoc. Research Conf. Deposit.

Total current assets 6,987,666 5,719,345 22% 5,216,724

Noncurrent assets

Restricted assets

Pledges receivable, net 488,884 1,047,553 -53% 748,875

Decrease of $559K is due primarily to receipt of pledge

payments of $538K.

Investments, net of current portion 106,185,939 122,483,547 -13% 123,584,808

Decrease of $17M is due to decrease in realized and unrealized

gains/investment performance due to COVID 19 pandemic.

Capital Assets

Nondepreciable assets, primarily land 27,000 27,000 0% 27,000

Depreciable property and equipment, net 164,241 138,813 18% 168,228

Increase of $24K is due to purchases for Foundation roof

replacement and improvements of $9K, van purchase at $33K

and $18K in depreciation.

Total noncurrent assets 106,866,064 123,696,913 -14% 124,528,911

Total assets 113,853,730 129,416,258 -12% 129,745,635

Decrease of $15.5M in total assets is primarily due to decrease in

investment performance as a result of COVID 19 pandemic.

Liabilities

Current liabilities

Accounts payable and accrued expenses 277,544 322,926 -14% 704,495

Scholarships payable 2,017,482 1,774,670 14% 1,542,828 Increase of $242K in scholarships awarded.

Salaries payable 241,711 - 24171000% 1,262

Increase of $242K is due to FY19-20 accrual for Jan-March

salaries. FY18-19 salaries were paid in full on 1/10/19.

Agency funds 2,606,122 2,264,125 15% 2,557,135

Other current liabilities - - 0% -

Total current liabilities 5,142,859 4,361,721 18% 4,805,720

Noncurrent liabilities

Scholarships payable, net of current portion 2,143,666 1,780,573 20% 1,780,573

Increase of $363K in noncurrent scholarships payable is due to

additional Life Gets Better scholarships awarded.

Deposits 5,825 4,000 0% 4,000

Total noncurrent liabilities 2,149,491 1,784,573 20% 1,784,573

Total liabilities 7,292,350 6,146,294 19% 6,590,293

Increase of $1.1M in total liabilities is primarily due to increase

in scholarships and salaries payable.

Net Position

Net investment in capital assets 191,241 165,813 15% 195,229

Increase of $24K is due to purchases for Foundation roof

replacement and improvements of $9K, van purchase at $33K

and $18K in depreciation.

Restricted

Expendable 14,362,140 31,825,039 -55% 33,831,522

Decrease of $17M is primarily due to an decrease in investment

performance over prior fiscal year.

Nonexpendable endowments 87,562,895 87,661,363 0% 86,164,453

Unrestricted net assets 4,445,104 3,617,749 23% 2,964,138

Increase of $827K is primarily due to$630K transfers to

Restricted fund for Operating Budget various University Support

expenses.

Total net position 106,561,380$ 123,269,964$ -14% 123,155,342$

Decrease of $16.7M in total net position is primarily due to

decrease in investment performance as a result of COVID 19

pandemic.

(A Discrete Component Unit of Florida Agricultural and Mechanical University)

STATEMENTS OF NET POSITION

For the Quarters Ended March 31, 2020 and 2019, and the Year Ended June 30, 2019

FLORIDA AGRICULTURAL AND MECHANICAL UNIVERISTY

FOUNDATION, INC.

Unaudited Unaudited Audited

7/1/2019 - 3/31/2020 7/1/2018 - 3/31/2019 % Variance 6/30/2019

Operating revenues

Contributions, net 3,633,877$ 2,951,627$ 23% 4,276,807$

$682K increase is primarily due to increase in cash gifts

and pledges.

Net realized and unrealized gain/loss (15,454,694) 1,469,850 -1151% 4,737,786

$16.9M decrease is due to an decrease in performance in

all asset categories from COVID 19 pandemic.

Interest and dividends 637,514 989,535-36%

1,336,557

$352K decrease is due to an decrease in performance in all

asset categories from COVID 19 pandemic.

Miscellaneous income 1,274,732 1,174,626 9% 1,693,983

Dues and subscriptions 81,630 48,216 69% 87,229

$33K increase due to increase in NAA and Booster

member dues.

Total operating revenues (9,826,941) 6,633,854 -248% 12,132,362

Total operating revenues decrease of $16.4M is primarily

due to decrease in investment performance.

Operating expenses

University support expenditures 4,418,895 5,827,783 -24% 9,106,237

$(744)K decrease in Contract Services. $(518)K decrease

in other University Support.

Scholarships and grants 1,953,736 1,768,373 10% 2,559,029 $1.3M increase in scholarships awarded.

Fundraising 856,907 900,478 -5% 1,887,836

Management and general 935,925 715,045 31% 1,504,441

Increase of $221K. $18K increase in entertainment &

dinners (Various Football game tickets), $14K increase in

materials, $(36)K professional services decrease, $73K

increase in computer software, $152K increase in

salaries/benefits for filled scholarship position and staff

bonuses $12.7K.

Total operating expenses 8,165,463 9,211,679 -11% 15,057,543

Operating income/(loss) (17,992,404) (2,577,825) 598% (2,925,181)

Income (loss) before other revenues (17,992,404) (2,577,825) 598% (2,925,181)

Total operating loss decrease of $16.5M is primarily due

to decrease in investment performance.

Contributions to permanent endowments1,398,442 986,479 42% 1,219,213

Increase of $412K due to increase in giving over prior

year.

Change in net position (16,593,962) (1,591,346) 943% (1,705,968)

The overall decrease of $16.1M in Change in Net Position

is primarily due to decrease in investment performance

over prior year.

Net position, beginning of year 123,155,342 124,861,310 -1% 124,861,310

Prior period adjustments - - -

Net position, beginning of year, as restated 123,155,342 124,861,310 -1% 124,861,310

Net position, end of year 106,561,380$ 123,269,964$ -14% 123,155,342$

STATEMENTS OF REVENUES, EXPENSES AND

CHANGES IN NET POSITION

For the Quarters Ended March 31, 2020 and 2019, and the Year Ended June 30, 2019

FLORIDA AGRICULTURAL AND MECHANICAL UNIVERISTY

FOUNDATION, INC.

(A Discrete Component Unit of Florida Agricultural and Mechanical University)

5/12/2020

Approved % Approved

Revised Actual at Budget Projected at Revised Actual at

Budget* 3/31/2020 vs Actual 6/30/2020 Budget 3/31/2018

REVENUE AND SUPPORT

Operating Revenue $2,902,938 $2,819,774 97.14% $2,902,938 $2,355,051 $2,334,945

Endowment Administrative Fees and Operating Fees $2,536,938 $2,539,029 100.08% $2,539,029 ~ $1,879,051 $1,879,051

Incoming Gifts Fees [7%, 5% or 3%] $300,000 $201,545 67.18% $275,000 ~ $400,000 $409,831

Administrative Fees on Miscellaneous Revenue (7%) $60,000 $74,990 124.98% $80,000 ~ $70,000 $41,705

Administrative Fees on Disbursements [$2.50] $6,000 $4,210 70.17% $6,000 $6,000 $4,358

License Tags Revenue $450,000 $346,110 76.91% $450,000 $450,000 $340,339

Rents and Fees 625 East Tennessee Street $60,000 $47,316 78.86% $60,000 $75,000 $34,450

Contingency Revenue $438,000 $0 0.00% $438,000 $75,000 $0

TOTAL REVENUE AND SUPPORT $3,850,938 $3,213,200 83.44% $3,848,029 $2,955,051 $2,709,734

EXPENDITURES

Foundation Operations

Staff Salaries and Benefits $725,000 $717,000 98.90% $722,091 ~ $725,000 $533,336

Contractual Services $25,000 $21,539 86.16% $25,000 $25,000 $18,526

General Counsel and Legal Services $60,000 $0 0.00% $60,000 $50,000 $25,000

Auditing and Accounting Services $75,000 $29,530 39.37% $75,000 $100,000 $32,500

Foundation Board Support $90,000 $72,580 80.64% $90,000 $90,000 $78,015

Travel, Registration, Training and Seminars $50,000 $12,932 25.86% $50,000 $30,000 $12,644

Memberships and Subscriptions $5,000 $298 5.96% $5,000 $5,000 $2,315

Insurance $30,000 $18,410 61.37% $30,000 $22,000 $16,863

Janitorial Services $30,000 $22,050 73.50% $30,000 $30,000 $22,050

Office Security Monitoring $12,000 $4,623 38.53% $12,000 $10,000 $7,713

Office Utilities $50,000 $40,154 80.31% $50,000 $50,000 $30,052

Pest Control $4,000 $1,283 32.08% $4,000 $4,000 $1,080

Grounds Maintenance $14,000 $5,625 40.18% $14,000 $12,000 $7,325

Software Maintenance $160,000 $145,314 90.82% $160,000 $50,000 $42,421

Telephone $2,500 $0 0.00% $2,500 $2,500 $0

Office Equipment/Furniture $23,319 $16,932 72.61% $23,319 $10,645 $4,210

Materials, Printing & Postage $20,000 $22,825 114.13% $30,000 ~ $20,000 $7,824

625 E TN Street Renovations $100,000 $83,432 83.43% $100,000 $100,000 $72,388

Bank Fees $5,000 $5,073 101.46% $5,000 $5,000 $1,812

Donor Outreach Support and Other $75,000 $56,400 75.20% $75,000 $25,000 $23,555

Operating Contingency $12,171 $0 0.00% $2,171 ~ $12,171 $0

Transportation Maintenance $2,500 $48 1.92% $2,500 $0 $0

Total Foundation Operations $1,570,490 $1,276,048 81.25% $1,567,581 $1,378,316 $939,629

Office of University Advancement

Advancement Operations/Development Support $135,000 $135,000 100.00% $135,000 $80,000 $80,000

Fundraising Activities [75% License Tags Revenue] $337,500 $259,583 76.91% $337,500 $337,500 $255,254

Total Office of University Advancement $472,500 $394,583 83.51% $472,500 $417,500 $335,254

University Support

University President Compensation $388,562 $355,955 91.61% $388,562 $310,750 $310,750

Univ. President Salary Increase, Benefits, & Performance Bonus $0 $0 0.00% $0 $83,500 $79,011

Office of the President $100,000 $100,000 100.00% $100,000 $100,000 $100,000

University Auxiliary Support $298,485 $298,485 100.00% $298,485 $298,485 $298,485

Board of Trustees Assessment $36,000 $36,000 100.00% $36,000 $36,000 $36,000

Board of Governors Assessment $14,000 $13,706 97.90% $14,000 $14,000 $12,777

Lobbying Expenses $70,000 $70,000 100.00% $70,000 $70,000 $70,000

License Tags Scholarships [25% License Tags Revenue] $112,500 $86,528 76.91% $112,500 $112,500 $85,085

Athletics Salary Support $134,000 $130,000 97.01% $134,000 $134,000 $134,000

Athletics Scholarships Support $300,000 $300,000 100.00% $300,000 $0 $0

University Executive Support $16,401 $16,401 100.00% $16,401 $0 $0

Athletics Legal Support $338,000 $0 0.00% $338,000 $0 $0

Total University Support $1,807,948 $1,407,075 77.83% $1,807,948 $1,159,235 $1,126,108

TOTAL EXPENDITURES $3,850,938 $3,077,705 79.92% $3,848,029 $2,955,051 $2,400,991

REVENUE LESS EXPENDITURES $0 $135,495 $0 $0 $308,743

FAMU FOUNDATION, INC.

FISCAL YEAR 2019-2020 BUDGETARY COMPARISON AT 03/31/2020 and 03/31/2019

2019-2020 2018-2019

* Revised Fiscal Year 2019-2020 Operating Budget was approved by FAMU Board of Directors on 04/07/2020 and FAMU Board of Trustees on 04/28/2020.

VI. b.

Proposed

FY 2020-2021

Operating Budget

5/14/2020

FY 2020-2021

APPROVED

PROPOSED REVISED ACTUAL

BUDGET BUDGET* 3/31/2020

REVENUE AND SUPPORT

Operating Revenue $2,834,085 $2,902,938 $2,819,774

Endowment Administrative Fees and Operating Fees $2,493,085 $2,536,938 $2,539,029

Incoming Gifts Fees [7%, 5% or 3%] $275,000 $300,000 $201,545

Administrative Fees on Miscellaneous Revenue (7%) $60,000 $60,000 $74,990

Administrative Fees on Disbursements [$2.50] $6,000 $6,000 $4,210

License Tags Revenue $450,000 $450,000 $346,110

Rents and Fees 625 East Tennessee Street $70,000 $60,000 $47,316

Contingency Revenue $0 $438,000 $0

TOTAL REVENUE AND SUPPORT $3,354,085 $3,850,938 $3,213,200

EXPENDITURES

Foundation Operations

Staff Salaries and Benefits $725,000 $725,000 $717,000

Contractual Services $25,000 $25,000 $21,539

General Counsel and Legal Services $60,000 $60,000 $0

Auditing and Accounting Services $75,000 $75,000 $29,530

Foundation Board Support $90,000 $90,000 $72,580

Travel, Registration, Training and Seminars $50,000 $50,000 $12,932

Memberships and Subscriptions $5,000 $5,000 $298

Insurance $30,000 $30,000 $18,410

Janitorial Services $30,000 $30,000 $22,050

Office Security Monitoring $12,000 $12,000 $4,623

Office Utilities $50,000 $50,000 $40,154

Pest Control $4,000 $4,000 $1,283

Grounds Maintenance $14,000 $14,000 $5,625

Software Maintenance $200,000 $160,000 $145,314

Telephone $2,500 $2,500 $0

Office Equipment/Furniture $23,319 $23,319 $16,932

Materials, Printing & Postage $30,000 $20,000 $22,825

625 E TN Street Renovations $100,000 $100,000 $83,432

Bank Fees $5,000 $5,000 $5,073

Donor Outreach Support and Other $75,000 $75,000 $56,400

Operating Contingency $12,318 $12,171 $0

Transportation Maintenance $2,500 $2,500 $48

Total Foundation Operations $1,620,637 $1,570,490 $1,276,048

Office of University Advancement

Advancement Operations/Development Support $126,000 $135,000 $135,000

Fundraising Activities [75% License Tags Revenue] $337,500 $337,500 $259,583

Total Office of University Advancement $463,500 $472,500 $394,583

University Support

University President Compensation $388,562 $388,562 $355,955

Office of the President $100,000 $100,000 $100,000

University Auxiliary Support $298,485 $298,485 $298,485

Board of Trustees Assessment $36,000 $36,000 $36,000

Board of Governors Assessment $14,000 $14,000 $13,706

Lobbying Expenses $70,000 $70,000 $70,000

License Tags Scholarships [25% License Tags Revenue] $112,500 $112,500 $86,528

Athletics Salary Support $134,000 $134,000 $130,000

Athletics Scholarships Support $0 $300,000 $300,000

University Executive Support $16,401 $16,401 $16,401

Board of Trustees Support $100,000 $338,000 $0

Total University Support $1,269,948 $1,807,948 $1,407,075

TOTAL EXPENDITURES $3,354,085 $3,850,938 $3,077,705

REVENUE LESS EXPENDITURES $0 $0 $135,495

FAMU FOUNDATION, INC

FISCAL YEAR 2020-2021 PROPOSED OPERATING BUDGET

* Revised Fiscal Year 2019-2020 Operating Budget was approved by FAMU Board of Directors on 04/07/2020 and FAMU Board of Trustees on 04/28/2020.

FY 2019-2020

DRAFT