Policy on Borrowing of Temporarily Restricted Net Assets: The board
chairman reported that $[Amount] of temporarily restricted net assets have been
borrowed and expended in the unrestricted net asset class as of [Date]. It does not
appear that any of this borrowing can be repaid by the organization’s year-end,
2005-37. ACTION: After discussing the impropriety of borrowing temporarily
restricted net assets, other than on a short-term basis, the motion was made
and seconded to adopt the following policy (this new policy will be identified as
Policy 48-0 3): Temporarily restricted net assets shall not be borrowed for
operational purposes. In the event some temporarily restricted net assets are
borrowed for operational purposes, the funds shall be repaid within 12 months.
2005-38. ACTION: With respect to the $[Amount] that has been borrowed from
temporarily restricted net assets, the motion was made and seconded that the
approximate $[Amount] balance as of [Date] which has been borrowed from
temporarily restricted net assets for operational purposes shall be repaid during
[Year]. Motion carried.
Leadership Succession: The board discus sed the executive director’s announcement
of his plan to retire in three years, and expressed appreciation to the executive director
for providing advance notice.
2005-39. ACTION: The motion was made and seconded to appoint a committee
of three board members to be named by the board chairman, who will begin t he
search process for an individual to succeed the current executive director.
Annual Budget: The CFO presented the [Year] budget (see exhibit F). This version of
the budget incorporates the changes to the version of the [Year] budget reviewed by the
board in the [Date] board meeting.
2005-40. ACTION: After a brief discussion of the guidelines used to construct
the budget, the motion was made and seconded to approve the [Year] budget
as presented. Motion carried.
Audit Committee: The audit committee reported on its recent meeting with
representatives of the audit firm at which the planning for the audit for the year ended
[Date] was discussed. The audit committee asked the auditors to focus especially on
the four management letter recommendations made by the auditors at the conclusion
of the [Year] audit, with a view to determining if staff had adequately made the changes
in accounting practices and procedures to address the concerns of the auditors. The
board received this report as information.