Catholic Schools Foundation Board of Trustees

Meeting October 27, 2016

3:00 to 5:00 PM

Wilmer Hale

60 State Street Boston, MA

Agenda

I. Welcome Bill Mosakowski

II. Opening Prayer Fr. Marc Bishop

III. Approval of Minutes from June 16, 2016 (Tab 1) Mike Rogers

IV. Committee on Trustees (Tab2) Jack Regan

V. FY17 Management Goals and Staffing Mike Reardon

VI. FY17 Board Goals (Tab 3) Bill Mosakowski

VII. Committee Goals and Reports Committee Chairs

a. Allocations (Tab 4)

b. Advancement (Tab 5)

c. Finance, Investments and Audit – (Tab 6) MOTION

VIII. 3-5 Year Priorities Mike Reardon

IX. Executive Session Trustees

Next Scheduled Meeting

March 23, 2017

St. Julia Parish Hall

Weston, MA

2PM – 4PM

Pastor Principal Reception 4PM-6PM

Tab 1

Catholic Schools Foundation, Inc.

Minutes of the Board of Trustees Meeting

June 15, 2016

MINUTES

Members of the Board of Trustees in Attendance: Miceal Chamberlain, Rob Cunjak, R.J. Dourney,

Kathryn Everett, Brian Gallagher, Richard Henken, Christine Komola, Peter Lynch, William Mosakowski,

Rev. Paul O’Brien, Jack O’Connor (phone), Steve Principe, Jack Regan, John Remondi, Natalie Sanders

(phone), Eileen Shapiro, Craig Tateronis and Tim Tully.

Others Attending: Megan Adzima, Noel Dixon, David Foley, Susan Gartside, Amy Iseppi, Hillary Laggis,

Kathleen Mears, Rob Morrissey, Michael Reardon, Gina Rindfleisch.

I. Welcome

Bill Mosakowski thanked everyone for attending the meeting and thanked Jack Regan for hosting at Wilmer

Hale.

II. Opening Prayer

Mr. Mosakowski introduced Fr. O’Brien to open the meeting with a prayer.

III. Nominating Report

The agenda was amended to begin with the Nominating Committee as three of the five candidates for election

were present for the meeting.

Mr. Mosakowski thanked Jack Regan for his leadership of the Nominating Committee and the members of

the committee for an excellent process. He went on to recognize the retiring trustees, Katie Everett,

Monsignor Kelley and John Erikson for their service, dedication and commitment to the students and to the

CSF Board. He also thanked Brian Gallagher and Rick Henken for their many years of service as the officers.

Christine Komola is being nominated to be Treasurer and Mike Rogers nominated to be Clerk.

Katie Everett told the Trustees it has been a wonderful opportunity for her to serve as a Trustee of CSF. She

said CSF is well positioned to help more students. Ms. Everett indicated she would continue to support the

work of CSF and be a resource.

Mr. Regan outlined the Nominating Committee process and commented on the quality of the approach taken.

He then summarized the five nominees; full bios were also included in the materials.

Mr. Regan motioned to elect the following candidates to the Board of Trustees for a term of 3 years:

Mrs. Tchintcia Barros

Rev. Marc Bishop

Mr. Noel Dixon

Mr. David Foley

Mr. Rob Morrissey

There was a second to the motion and all were in favor of approving all five nominees as Trustees for a three-

year term. The Trustees-elect present were invited to join the rest of the meeting and asked to say a few

words about their background and the reason they want to be involved with the Catholic Schools Foundation.

Mr. Regan also moved that the following Trustees be elected as officers of the Catholic Schools Foundation:

William Mosakowski, President

James Mooney, III, Vice President

Christine Komola, Treasurer

Mike Rogers, Clerk

There was a second to the motion and all were in favor of approving the slate of officers presented above for

terms of one-year.

IV. Approval of Minutes from March 31, 2016

Mr. Henken asked for any comments or questions relative to the minutes from the March 31, 2016 Board

meeting. With no comments, those minutes were unanimously approved.

Mr. Henken noted that he will be stepping down as the Clerk and expressed his gratitude for the opportunity

to serve and affirmed his continued passion for this work.

V. Executive Director’s Report

Before proceeding with his report, Mr. Reardon invited Hillary Laggis to review the Trustee Portal features

on the website. Trustees were encouraged to make use of this portal to access meeting and other Board

materials. A brief video with highlights from the year followed.

The complete report contained in the materials was referenced. Mr. Reardon noted that a lot had been

accomplished in the past year but there is still a lot more to do. The significant shift in the Elementary

Scholarship Allocations process was the biggest change during the past year and the new process continues to

help ensure good planning. He thanked the Board for their support of this one to one scholarship plan and

indicated that one year later a lot has been learned and will be learned to help inform best practices.

The FY17 draft goals were reviewed. It was noted that these goals were drawn from the mission statement

and operating principles and informed by the visioning meetings held with each trustee. Mr. Reardon said

that FY17 draft goals have more emphasis on fundraising and long term financial planning and the ability to

protect current grants while looking for opportunities to make measurable impacts. The Committee and

Board goals are aligned and create a strong and cohesive base from which to build.

Mr. Mosakowski expressed his appreciation for the efforts of the committees and their alignment towards the

organizational goals. A more focused review of progress against goals will be undertaken during the Board

meetings in FY17 to demonstrate progress or challenges during the year.

The report concluded with a short video created by Hill Holiday with outtakes from the Dinner video.

VI. Other Committee Reports Committee Chairs

Board Officers

Mr. Mosakowski motioned to affirm the mission statement and operating principles as presented with no

recommended changes. The motion was seconded and unanimously approved.

Allocations Committee

Mike Rogers the Allocations Committee chair was unable to attend and Megan Adzima was asked to give the

Allocations report.

Ms. Adzima began her report by thanking the Allocations Committee and said the Committee had two great

successes:

A more defined grant review process which was very beneficial to the schools

A strong set of data to with which to work

She referred to the FY16 detailed summary of the elementary and high school scholarship grants and non-

scholarship support presented in the Board materials. The Allocations committee had a successful year with

the new grant evaluation process and review of consistent demographic data, which will provide a base to

measure growth and change moving forward.

The first full year of one to one scholarship programs at the elementary school level, was completed and

received positive feedback from schools because better stability and planning for the schools. Clearly defined

processes and communications have led to a solid, stable, and clearly defined scholarship program.

Data on the 8th grade graduates and the graduating seniors is included in the materials. Stronger student

tracking and data will allow for a better understanding of the K-12 continuum. The plan is to engage and

track high school graduates through email and social media and coordinate with the Catholic Schools Office

as they are work with the National Clearinghouse for student data and the implementation of their student

information system.

The priority for the committee next year will focus on building a K-12 continuum and the Foundation’s

funding guidelines and priorities. The Allocations Committee is requesting that the Board vote on the

funding guidelines as presented with no changes at this time. Mr. Mosakowski motioned for the approval of

the current funding guidelines as presented. The motion was seconded and with no objections raised the

motion was approved.

Finance Committee

Christine Komola gave the report from the Finance Committee. The operating budget through April 30, 2016

was presented, it was reported that the May numbers were not completed in time for the meeting. It was

reported that things are in line and there are no concerns.

A new operating performance measure was presented. This document will become the base for long range-

planning and provides a better look at performance relative to intent. This new performance measure will

replace the current financial presentation in use at Board meetings. This new report does not replace the

GAAP reporting that the Finance Committee reviews, but intends to better match intent with outcome on a

fiscal year basis while creating a baseline for modeling.

The Investment report through of May 31st was also reviewed. CSF investment pool is ahead of the S&P 500

by 10 basis points. The Investment Committee is working to restructure its reporting and meetings to better

focus on questions of asset allocation and performance. The draft goals for the Investment Committee were

included in the back of the packet.

The proposed FY 17 budget which was included in the material was presented. It was noted that the

scholarship budget was approved in the fall and the operating budget process begun in December. The budget

is project based and the Finance Committee is kept informed as the process moves along.

Ms Komola moved that the FY17 budget be accepted as presented. This motion was seconded and

unanimously approved.

Before moving to authorize the use of any calculated surplus, Ms. Komola indicated that this exercise should

be undertaken, but it should be done in the context of the long range financial planning exercise and a larger

conversation at the October Board meeting

Ms. Komola moved to authorize the Finance Committee to reserve any portion of the operating surplus in

excess of $100K for use in FY17 provided the following financial metrics are reviewed and an update will be

provided at the October Board meeting.

Current year performance against budget (operating surplus/deficit)

Current year GAAP performance (to avoid spending reserve funds which would

increase expenses during an economic downturn)

The motion was seconded and unanimously approved.

Advancement Committee

Mr. Craig Tateronis, the chair of the Advancement committee asked Gina Rindfleisch to give the current

Advancement update.

Fundraising

Mrs. Rindfleisch told the members that the Development Staff is working diligently to collect outstanding

pledges and renewed gifts from individuals before the close of the fiscal year. She said on a cash basis, total

income is up 6% year over year. On a commitment value, total income is up 2% and 3% in the ICSF. The

ICSF is at 111% of budget.

A decision was made not to hold the Back to School Cup Golf Tournament this year. Instead, the focus will

be heavily on building relationships and bringing in key new donors. She noted Board support is necessary for

this to be successful.

CSF is looking at the staffing needs and assessing the value of hiring a new development person in order to

mitigate the risks identified at the last Board of Trustees meeting and in determining how CSF can increase

growth in the future.

The Advancement Committee is looking to grow and there are several candidates we hope will join the

Committee for FY17. Mrs. Rindfleisch said to please let her know if you know of anyone who would be

interested in joining this important committee and who would be a good fit for the Foundation.

Events

The School’s Out Summer Celebration was held on Thursday, June 9th at the John Hancock building. It was

attended by ~115 young professionals. The event raised $20,000 and recruited an additional 8 individuals for

monthly giving that night. There are currently is 31 Scholarship Angels with a yearly impact of $20,804.

The Annual ICSF dinner with ~1,000 guests, was held on April 14th, and raised a record-breaking $3.2M.

Marketing

A print newsletter was mailed out on June 6, 2016 to all donors. The new website has been a success and the

phone volume has significantly decreased due to improved resources on the website. The website has helped

to streamline processes and website traffic has more than tripled since the launch of the website in February,

to more than 2,000 visits per month.

Volunteer Engagement

The Young Leaders Council is focusing on growing corporate partnerships. Each member has agreed to help

set up meetings with people they know at corporations with whom CSF would like to form new or stronger

partnerships. The council is sponsoring one high school student this year, and for the next 3 years, to attend

Cathedral High School. Some of recent volunteer fundraising events included:

Staples young professionals hosted a 5K race and a silent auction that collectively raised more than

$15K and qualified for our matching grant, for a total of $30K

In partnership with Cradles to Crayons, Staples stuffed and donated 200 backpacks for our scholars at

St. Pius V School and Sacred Heart School in Lynn

Staples donated all printing materials for the ICSF Dinner, amounting to $15K in savings.

Young professionals at Staples nominated CSF for a grant through the 2 Million & Change program.

Mike Swanson of Staples received the Volunteer of the Year Award at the School’s Out Summer

Celebration for his role in growing the partnership.

Mr. Tateronis said it would be a great move to add to the development staff. This additional resource will be

extremely valuable in the year of Development for FY17 and beyond. He said the Advancement Committee

needs help and to please forward any candidate names along to him or Gina Rindfleisch.

VII. CSO and CSF Alignment Presentation

Before introducing Kathy Mears and Mr. Reardon for an update, Mr. Mosakowski reminded the Board of the

CSF operating principles declaration of a desire for a strong central schools office and supporting access to

high quality catholic schools for low-income students. To make this happen the relationship with the schools

office is critical. Last year at this time, CSF made some significant investments to show support for the CSO

and help drive some strategic change as well made some operational changes to help support a central vision

for Catholic education.

Mr. Reardon began by thanking the Board for their support and sharing that the relationship with the CSO and

Supt. Kathy Mears is strong and communication quite good. This has been critically important during the

significant shifts during the year with the elementary scholarship process. It was also reported that the

Museum of Science (MOS) partnership has been handed over to the CSO for management and due to their

expertise the program has expanded, is scalable and has become a model for the MOS. A similar hand-off is

in process for the admissions collaborative (CSAC) and Hispanic recruitment (NRI/NIS) efforts and a similar

outcome is anticipated.

Mr. Reardon also shared how good communication with the CSO has generated better data for both

organizations and this trend should continue. He also noted that by working with the CSO during the

allocation process, CSF can act as a change agent and gave the examples of St. Jude, St. Patrick and East

Boston Central. All three schools are now engaged with the CSO in addressing sustainability issues as a result

of collaboration with the CSO during the allocations process. The need for CSF to continue to shift from

operator to collaborator is critical and will require the shift with CSAC, HRI and City Connects.

The effort to support the CSO was tangible last year with CSF distributing ~$800,000 to the CSO for

programmatic and operational investments indicated as priorities by the Supt. Kathy Mears. Mrs. Mears was

introduced to offer an update on the alignment from the CSO perspective and to provide an update on the use

of the resources granted last year.

Mrs. Mears began by thanking CSF for their financial support and shared planning. She indicated that CSF,

CSO and the Lynch Foundation have been working well together to plan. She went on to update everyone on

the work being done by her and her staff at the CSO.

She indicated that the Student Information System was the largest frustration of the year and just did not meet

the needs of the CSO. Legal action is underway to void the contract. In addition the student communication

system implementation was delayed but will be ready to go for fall 2016.

Mrs. Mears indicated that the educational assessment tool that was implemented has been extremely

successful and informative and will help guide future investments in professional development. It will also

provide significantly better benchmarking data.

Leadership development and the ability to attract and retained differentiated learners is priority moving

forward and the investment last year has helped create a mentoring program and to pilot some special

education programs.

VIII. Executive Session All

With no further business Mr. Mosakowski motioned to have all Trustees present to go to Executive Session

for the purpose of discussing the performance of the Executive Director. The motion passed unanimously and

all non-Trustees exited.

Respectfully submitted,

Michael Rogers

Clerk

Tab 2

ActiveUS 158585987v.3

Committee on Trustees FY 17

Charge

The Committee on Trustees shall ensure that the CSF Board of Trustees has the necessary membership to

carry out its mission and achieve its goals. The Committee shall recommend new trustees and officers for

the Board and ensure that all trustees act in accordance with CSF’s charter and by-laws. The Committee

shall also act to address any issues of trustee performance, conflicts-of-interest or other Board governance

matters, and make recommendations on such matters to the Board and its officers.

Goals

Define and carry out a comprehensive nominating process.

Nominate trustee candidates who fit agreed upon trustee profiles, with an emphasis on increasing gender,

racial and industry diversity and on succession planning.

Create and implement a trustee self-evaluation to assess trustee perspectives and surface opportunities for

deeper Board engagement.

Actions

Annually present to the Board on the current trustee profiles, terms, and obligations, and the

conflict of interest policy

Review the target membership of 24 trustees to determine if that number is appropriate relative to

current needs of the Board

Identify areas of deficiency in representation, including such factors as industries, expertise, and

demographics

Recommend trustees for appointment or renewal by the June Board meeting

Determine a succession plan for officers and trustees with future expiring terms

Nominating Committee Meeting Dates and Topics

November/December February

Review Committee’s goals Finalize target profile for trustees

Review trustee profiles and retiring members Review initial candidates for trustees

Decision about adding new trustees and target profiles Review retiring trustees

Trustee invitation process Candidate review and prioritization

Initial discussion about officers for FY 17 Board self-evaluation follow-up

Follow up on conflict of interest compliance

Board self-evaluation discussion

May

Update on retiring trustees

Discuss FY18 goals and process for Committee

Vote on officers and new and renewing trustees

Board self-evaluation follow-up

Terms and Areas of Expertise of Elected Board Members

Trustee Expertise

Initial

Appoint Expires

Years as

Officer

Year Rolled

Off

Mr. Miceal Chamberlain Finance 2014 2017 0

Mr. Brendan McCarthy Investments 2014 2017 0

Mrs. Natalie Sanders+ Private Investor 2014 2017 0

Mr. James F. Mooney, III* Investments 2009 2017 6

Mr. John J. Remondi* Finance 1992 2017 7

Ms. Christine T. Komola Business 2011 2017 0

Mr. Craig M. Tateronis Law 2011 2017 0

Ms. Eileen C. Shapiro Business 2011 2017 0

Trustee Expertise

Initial

Appoint Expires

Years as

Officer

Mr. John J. Regan* Law 1994 2018 12

Mr. Richard J. Henken* Real Estate 2006 2018 7

Mr. Mike Rogers Finance 2012 2015 0

Mr. R.J. Dourney Business 2012 2018 0

Mr. William Mosakowski* Consulting 2012 2018 3

Trustee Expertise

Initial

Appoint Expires

Years as

Officer

Mr. Brian J. Gallagher* Accounting 2004 2019 9

Mr. Jack D. O'Connor Business 2004 2019 0

Mr. Rob Cunjak Finance 2013 2016 0

Fr. Paul O'Brien Pastor 2013 2019 0

Mr. Steven Principe Finance 2013 2019 0

Tchintcia Barros Investments 2016 2019 0

Fr. Marc Bishop Clergy 2016 2019 0

Noel Dixon Investments 2016 2019 0

David Foley Investments 2016 2019 0

Rob Morrissey Law 2016 2019 0

Tim Tully Finance 2016 2019 0

Trustee Expertise

Initial

Appoint Expires

Years as

Officer

*Serve or served as officers.

Time as officer does not count towards 9 years of continous service

+ resigned effective 11.1.16

Service time of

Officer and any

Trustees who

completed 9 years of

service and rolled off

the Board need to be

reviewed and the

chart updated.

CSF Committee Assignments

2016/2017

Allocations Audit Advancement Board Officers Finance Investment On TrusteesMike Rogers Dick Dubois + Craig Tateronis William Mosakowski Christine Komola Fergus Shiel + Mr. Jack Regan

Msgr. Francis H. Kelley + Brian J. Gallagher Mr. Jack D. O'Connor Mike Rogers Mr. Brian J. Gallagher Gerry Curtis + Rob Cunjak

Paul Birmingham Christine Komola Eileen Shapiro Jim Mooney III Todd Cozzens + John Fantozzi + Rick Henken

Rob Cunjak Bill Mosakowski Tim McBride + Christine Komola RJ Dourney Greg Fraser + Craig Tateronis

Fr. Paul O'Brien Peter Pound + Dick Dubois + Ms. Linda H. Lynch+ Eileen Shapiro

William Mosakowski Not yet final Ryan Connolly + John Mahoney + Peter Lynch Miceal Chamberlain

Tim Tully Dan DiBartolomeo + Steve Principe Brendan McCarthy

Liz Fennell + Bob Reynolds + Chris McConnell+

Kevin O'Leary + Paul Sullivan + Meg Reynolds+ Not yet Final

Noel Dixon Tim Tully Jack Sommers+

Fr. Marc Bishop Dave Foley

Tchintcia Barros

Rob Morrissey

Bold = Chairs

+ Non- Trustees

& Appointed by Cardinal

Bold = Chairs ^ Pending confirmation

May be joining committee

+ Non- Trustees

& Appointed by Cardinal

Sub committees:

Not Assigned

Revised Criteria (October 24, 2016)

Criteria for Membership as a Trustee of the Catholic Schools Foundation

In order to exercise their fiduciary responsibilities and to oversee the performance of the

Corporation in conformity with its Article of Organization and By-Laws, Trustees will be

expected to do the following:

1. Attend Meetings

Regular attendance at Board and Committee meeting is expected of CSF Board members.

Through regular attendance, Board members will be able to provide the continuity

essential for orderly deliberations and systematic formulation of policy. If members miss

two or more consecutive meetings without good reason, they may be retired from the

Board.

2. Committee Involvement and Willingness to Accept Assignments

Board members with specific talents or expertise may be called upon to assist in

particular tasks or projects promoting CSF’s mission. The majority of the work of the

CSF Board takes place in the Standing and Ad Hoc Committees. Active involvement by

each Board member in one or two committees expedites the work of the Board. A Board

member’s willingness to assume these responsibilities is highly valued. Members must

become active in a committee within twelve months.

3. Donations/Fundraising for CSF

CSF Trustees may choose to fulfill this responsibility to increase the organization’s

financial resources in three ways: a) make direct contributions themselves; b) attract

other donors and donations; and c) provide or solicit in-kind services. Members are

expected to attend the Inner-City Scholarship Fund dinner.

4. New Members

Once a prospective Board member has been indentified, a trustee or someone close to the

prospect must review the criteria with him/her to qualify their interest.

5. All members must annually submit a conflict of interest disclosure.

CSF Board of Trustees Current Profile Fiscal Year End 2016

Number of Trustees

Giving Level

4 $100K+

3 $50,000 - $99,000

1 $25,000 - $49,999

7 $10,000 - $24,999

3 $5,000 - $9,999

6 $500 - $4,999

Fundraising and Public Relations Expectations Include:

• Provide annual financial contribution to the Catholic Schools Foundation according to Trustee’s means. • Join in supporting the Catholic Schools Foundation by participating in events when possible, including the Annual Dinner Celebration, Annual Bus Tour, and other events throughout the year. • Periodically review the staff’s list of prospects to assist in offering contacts and /or make introductions. • Enhance public image of the Catholic Schools Foundation when opportunities arise. • Make an effort to promote the work of the Catholic Schools Foundation among friends, family, and colleagues. Consider hosting an event at home or another venue.

Catholic Schools Foundation, Inc.

Disclosure of Substantial Interests

Trustee Name: ____________________________ Date: ____________

Do you, directly or indirectly, have a Substantial Interest in a business entity that in the prior fiscal year (July 1–

June 30) had, or now has or seeks in the coming fiscal year to have, a financial or other business relationship

with Catholic Schools Foundation? NO [_] YES [_]

If yes, please provide the information below:

Nature of

Name & Name of Nature of Financial

Identity of Owner Business Entity Ownership Interest Relationship

Substantial Interest means (i) ownership by you of an interest of 5% or more in a business entity; (ii)

annual income or payment, or expected annual income or payment, by you of more than $10,000 from a

business entity; or (iii) service by you as an officer, manager, trustee, director, agent or employee of a business

entity (except that uncompensated service as a director of a not-for-profit corporation is not a Substantial

Interest)

I have read, understand and agree to the Foundation’s Corporate By-Law on Conflict of Interest.

Signature:

2

ARTICLE XXXX CONFLICT OF INTEREST

A trustee shall be considered to have a conflict of interest if he or she (1) has existing or

potential financial or other interests that impair or appear to impair his or her

independent, unbiased judgment in the discharge of his or her responsibilities to the

foundation; or (2) is aware that a member of his or her family has financial or other

interest that would impair or appear to impair the trustee’s independent judgment in the

discharge of his or her responsibilities to the Foundation. For the purposes of this

provision, a family member is defined as a spouse, parent, sibling, child, or any other

relative residing in the same household as the trustee.

All trustees shall disclose to the board any possible conflict of interest at the earliest

practical time. Further, the trustee shall absent him or herself from discussions of, and

abstain from voting on, such matters under consideration by the board of trustees or its

committees. The minutes of such meeting shall reflect that a disclosure was made and

that the trustee with a conflict or possible conflict abstained from voting. Any trustee who

is uncertain as to whether a conflict of interest may exist in any matter may request that

the board or committee resolve the question in his or her absence by majority vote. Each

trustee shall complete and sign a disclosure form provided annually by the clerk of the

board of trustees.

Tab 3

BOARD OF TRUSTEES FY 17

Charge

The Board of Trustees is elected by the members of the corporation to oversee the operations of the Catholic Schools

Foundation. In doing so, the Board maintains a fiduciary obligation to ensure effective management of the organization

and its assets at the service of the mission.

Goals

Oversee work of Board Committees with regular and consistent reporting against goals to ensure

operational effectiveness.

Realign staffing to ensure focused growth in fundraising and corporate relations in support of

clearly defined objectives while ensuring that the allocations and student tracking are sustainable.

Implement the long range financial planning tool that unifies vision for the future with clarity

around reserve requirements and providing a simple management report to more accurately report

on performance against clearly defined goals.

Pilot a K-12 scholarship continuum while establishing strategic non-scholarship investment

priorities and moving away from operational responsibility for non-scholarship programs.

Actions Regular review on progress of stated goals of the Board Committees to ensure effective operational oversight.

Define and agree upon scholarship and non-scholarship priorities for the next 3-5 years

Review of fundraising data and goals necessary to fulfill mission

More actively engage alumni in fundraising, prospect identification and cultivation

Move to new financial management reporting and projection document

Review scholarship and school data in context of CSO vision

Meeting Dates and Topics

October 27, 2016

Review of Board Goals and Meeting Topics

Conflict of Interest, term review and giving expectations

Staffing review and FY17 Goals

Preliminary Scholarship Budget

New financial report and model review

3-5 Year priority presentation and current program investments

Executive Session – Finalize FY16 ED review

March 23, 2017

Update Committee progress against goals

Update on strategic priorities and cost

Annual Report from the Investment Committee

FY18 Budget and distribution discussion

Executive Session – FY17 ED review process

June 15, 2017

Election of Trustees and Officers

Catholic Schools Council presentation

Committee progress against goals

Elementary process, evaluation, budget

recommendation

Program budget recommendation

Executive Session – Finalize FY17 ED review

Tab 4

Allocations Committee FY 17

Charge The Allocations Committee of the Catholic Schools Foundation (CSF) shall monitor the distribution of all funds granted by

CSF. They shall work with CSF staff to set and review policies and practices governing the distribution of all grants and

recommend funding guidelines. They shall also assist with the grant review process and site visits as appropriate.

Goals

Monitor a comprehensive allocation process to ensure compliance with CSF funding guidelines and operating principles.

Review and, if appropriate, recommend changes to high school and elementary school scholarship processes to better align with operating principles and student and school need, considering all financial impacts on schools including fundraising and real estate.

Suggest and review strategies to strengthen a continuum of pre-k to 12 Catholic school education.

Review purpose and processes for non-scholarship funding to better align with operating principles and student and school need.

Review and recommend funding guidelines to the Board of Trustees.

Provide feedback on the development of strategies to increase engagement of scholarship recipients and alumni.

Actions: Review and discuss

Grant timelines, applications and school evaluation materials

School audit materials and results

Scholarship recipient data, including retention rate and demographic information

Re-allocation process and data

Benchmarks to measure future growth of scholarship and non-scholarship programs

Strategies and practices to strengthen elementary and high school partnerships

Recommendations on high school and elementary school scholarship processes and budgets

Processes for student tracking at CSF and after graduation

Meeting Dates and Topics

September 23, 2016 Update on re-allocation process Review Allocations timeline, Grant applications, rubrics Review School audit Review Scholarship data FY18 Budget recommendation Review of non-scholarship funding December 2, 2016 High school scholarship grant recommendations Elementary process, evaluation, budget recommendation Program budget recommendation

February 3, 2017 Elementary scholarship grant recommendations Program grant recommendations High school process and evaluation May 5, 2017 FY17 Allocation summary FY18 Final budget recommendation Review funding guidelines Allocations Benchmarks Graduate and alumni data and engagement

Allocations FY17 Scholarship Overview

Elementary School Guaranteed Scholarship Program The first full year of CSF’s one-to-one scholarship program was the 2015-2016 school year. The program guarantees that

elementary school students receiving aid in the previous school year will continue to receive the same amount of aid

until they graduate from their elementary school provided they remained enrolled in their schools and continue to

demonstrate financial need every year through FACTS Grant & Aid.

If a student withdraws from his or her school or does not re-enroll at the school, those scholarship funds are not

available to the student or the school. These funds are returned to the CSF scholarship pool.

A new additional aid application process to re-allocate funds from withdrawn students and students not receiving

awards in FY17 was implemented in August, 2016.

All elementary schools in the Archdiocese of Boston were invited to apply for additional aid

Schools with total CSF scholarship grants equaling less than $65,000 were eligible to apply for aid for individual

newly enrolled students with no limit to the number of applications.

Schools with total CSF scholarship grants equaling greater than $65,000 were invited to apply for block grants

with all aid to be assigned to newly enrolled student by September 30, 2016.

Outcomes and Successes:

Schools report increased early and on-time registration of returning students

More accurate reporting on withdrawn students

Streamlined and clearer verification process for schools

Students not receiving an award from the previous year decreased by 5%;

Families not applying for their guaranteed scholarship award decreased by 5%;

$546,400 was granted for additional aid to 27 elementary schools through the re-allocations process

o $116,400 was granted for 73 students to 15 schools for individual applications.

o $430,000 was granted to 12 schools for the block grant application.

Next Steps:

The Allocations Committee will discuss the opportunities to leverage approximately $400,000 or 5% of the

scholarship budget that is available in unassigned scholarships since the August 9th re-allocation process due to

withdrawn students or students not assigned awards.

Analyze schools’ applying on behalf of individual families as part of a large scholarship process review.

K-12 Continuum Scholarships and High School Process In FY16 CSF and the Allocations Committee reviewed its processes in the context of strengthening a K-12 Catholic school

continuum in the Archdiocese of Boston. Through the high school advisory committee and conversations with key school

partners, CSF has prioritized understanding high schools’ scholarships and financial aid programs, their relationships and

collaborations with Catholic grade schools, and different communities’ needs and demographics.

Based on feedback and its current practices, CSF proposes the following actions to help strengthen its high school

scholarship programs. These actions and their impact need to be evaluated regularly in the context of all of CSF’s

scholarship programs.

School Feedback Proposed Action Timeline Rationale

1. Schools need more flexibility to meet the needs of their families.

Provide a range of CSF Scholars to be named with the new grant notifications (i.e. $20,000 for 3-5 scholars)

September 2016 CSF Scholar budget approved by the Allocations Committee December 2016 CSF Scholar Class of 2021 notifications May 2017 Review new CSF Scholars’ demographics and award amounts

Schools will have flexibility and fewer restrictions to build their scholarship programs and meet the needs of families with varying financial needs. Additionally, schools with larger tuitions will not necessarily receive larger grants (historically CSF Scholars grants were 33% tuition x number of students).

2. Catholic elementary school and Catholic high schools feel a disconnect and a lack of opportunity regarding admissions.

Provide five Continuum scholarships for 7

th grade

students currently enrolled in a Catholic grade school with demonstrated financial need ($5,000 or full tuition if less than $5,000). Scholarships are guaranteed for 7

th-8

th

grade at the elementary school. Scholarships transfer to the students’ Catholic high school of choice.

September 2016 Continuum Scholarships presented in the FY18 high school budget May 2017 Application process for current 6

th

graders 2017-2018 7

th Grade students receive

continuum scholarship

Recognizing the impact of grade 7-12 Catholic high schools on all schools’ admissions and enrollment, this scholarship program allows grade schools to retain students in the 7

th and 8

th grade, provides more

high school options for students, encourages partnerships between elementary schools and high schools, and allows CSF to explore the impact of portable scholarships.

Outcomes and Successes:

Responsive to schools’ needs while balancing current processes, funding priorities, and the greater Catholic

school landscape in the Archdiocese of Boston

Positively received from high school and elementary school advisory committees

Pragmatically promotes of a K-12 Catholic school continuum

Empowers schools to meet the needs of their families

Encourages communication and collaboration among schools, school leaders, students, and families.

Next Steps:

CSF Scholar grants will provide a range of scholars instead of an appointed number in grant notifications

Implementation of a Continuum Scholarship Program in spring 2017

Addition of a portable scholarship for 7th grade students for the FY18 high school budget

Careful evaluation and adjustment of practices in order to best serve all constituents

Leveraged Scholarship Funding at Priority Schools To ensure the most students possible have access to high quality Catholic schools, CSF, along with the Catholic Schools

Office, began collaboration with three elementary schools with bright futures that face significant challenges around

leadership, governance, enrollment, and parent engagement in the fall of 2015.

These schools require transformative change. In addressing the challenges, the schools, CSF, and the CSO have

partnered to help secure Catholic education for three crucial: East Boston Central Catholic School, Saint Jude School,

Waltham, and Saint Patrick School, Roxbury.

Because CSF does not have personnel to adequately provide the necessary expertise and support for schools, the CSO

has taken a leadership role empowers the CSO and is in line with CSF’s missions to support a strong central Catholic

Schools Office. Additionally, requiring schools to collaborate with the CSO provides the additional resources school

leaders need to strengthen their schools and to be the excellent education institution that students deserve now and in

the future.

Through this program of leveraged scholarship funding, CSF:

Made FY17 scholarship funding contingent on collaboration with the CSO to make progress on focus areas

Met with school and parish leaders to discuss identified challenges and CSF’s goals and role

Received completed goals and strategies template by June, 2016

Direct schools to collaborate with the CSO

Drive accountability and leadership to the CSO

Serve as convener and facilitator as appropriate

Continue to monitor progress on goals and strategies

Outcomes and Successes:

Active collaboration with the Catholic Schools Office, which has empowered the CSO

Succession plan for leadership and clear vision for school moving forward

Additional support and action strengthens the schools in the long-term

Implementation of vice principals participating in the Lynch Leadership Academy

Hire of bilingual front-office administrator in East Boston

Next Steps:

Continue to foster collaboration and partnership with schools, the CSO, and CSF

Monitor progress on goals

Develop and strengthen a pipeline for Catholic school leadership

Identify future opportunities to partner with priority schools for focused change and long- term impact

Scholarship Type Level Grant Type

Additional Aid Awards Elementary School Bulk Grant and Individual Student Awards

CSF Scholars Awards High School Bulk Grant

Emergency Fund Both Individual Student Awards

HRI/NIS Awards Elementary School Bulk Grant

Retention and Recruitment Awards

Elementary School Bulk Grant

Scholarship Process Review Scholarships are the core of CSF’s funding. Following the implementation of the elementary school one-to-one

scholarship program and the alignment of its scholarship awards and processes, CSF will review the current process in

FY17 for adjustment in FY18. The review will take into consideration its current scholarship application processes.

CSF currently offers five grant application processes for new scholarships:

With the exception of the emergency fund and the new additional aid process, schools at the same level (elementary or

high school) complete the same application and participate in the same review process regardless of the schools’

student and community demographics and current CSF grant size.

The emergency fund and the new additional aid process (in part) review student applicants on a individual basis based

on information provided by the schools and the FACTS grant and aid application.

In addition to these application structures, the current scholarship process will also be reviewed considering:

Current funding guidelines

Size of CSF grant

Current number of students with CSF awards

Community demographics

Schools’ student population

Continuum and portable scholarships

Bulk grants and individual student awards

Outcomes and Successes:

Additional aid application demonstrated the value in reviewing requests for aid based on schools’ needs and

level of support

Changing demographics in communities will be considered and parameters for support will not be narrowly or

prohibitively defined

Thoughtful approach to serving both needy communities and needy students will be designed and a focus for

scholarship support will be determined

Next Steps:

Careful review of data from scholarship processes

Solicit input from advisory and board committees

Draft a methodical roll-out of any changes for schools for FY18 for review with Allocations Committee and BOT

Lessons Learned from Scholarship Program Deeper understanding of schools, school leaders, and their communities through scholarship funding

Continued recognition of each school’s uniqueness and diverse community

Value of serve both needy communities and needy families

Necessity of balancing change that is neither too local nor too global

Ability to use scholarship funding to enact change and promote goals

Importance of supporting current leaders during succession planning

Need for a pipeline for Catholic school leadership

Significance of school leadership to move schools forward

10/24/2016

1

Preliminary FY17 Allocations

Student and School Data

October 27, 2016

• FY16 Elementary School Scholarship Recipients with No Award FY17

– 647 Students or 23% of Eligible Students

• Reasons for No Award FY17

– Not Approved (2%)

– Did Not Qualify (15%)

– Did Not Apply (22%)

– Not Enrolled (61%)

FY16 Scholarship Recipients with No Award FY17

10/24/2016

2

• Budgeted Scholarship Awards

– $7,732,384

• Assigned Scholarship Awards

– $7,342,719

• Difference

– 5%

*Does not include Emergency Fund or Lynn Collaborative

Budgeted Scholarship Awards vs. Assigned Scholarship Awards

School Data FY17

• 86 Schools

– 29 High Schools

– 57 Elementary Schools

• 3,541 Scholarship Recipients

– 638 High School Students

– 2,903 Elementary School Students

*Does not include Emergency Fund or Lynn Collaborative

10/24/2016

3

School Data FY17

• Range of Scholarship Recipients

– 1 to 67 High School

– 4 to 541 Elementary School

• Average Scholarship Recipients per School

– 25 High School

– 53 Elementary School

*Does not include Emergency Fund

School Data FY17

• Range of Scholarship Support by School – $9,417 to $250,534 High School

– $3,187 to $964,434 Elementary School

• Range of Student Scholarship Amount – $400 to $13,332 High School

– $100 to $8,000 Elementary School

• Average Award – $3,689 High School

– $1,458 Elementary School

*Does not include Emergency Fund

10/24/2016

4

Scholarship Recipient Data FY17

• Median Total Family Income

– $42,074 High School

– $37,349 Elementary School

• Median Total Family Income per Capita

– $12,017 High School

– $11,953 Elementary School

*Does not include Emergency Fund

Scholarship Recipient Data FY17

• Student Ethnicity – 31% Hispanic – 27% Multiracial or Other Ethnicity – 21% Caucasian – 16% African American – 5% Asian

• Student Religion – 75% Catholic – 21% Other Christian – 4% Other Non-Christian

• Single-Parent Family – 62%

*Does not include Emergency Fund

FY16 and FY17 Elementary School Withdrawn Student and No Award Data*

FY17 Aid available from No Awards = $X

FY17

Withdrawn Students – 392

FY16 Award Amount for Withdrawn Students - $595,112

Students Assigned no Award FY16 – 255

FY16 Award Amount for No Award Students - $425,251

Reason for Withdrawals

Number of

Students

Percent of Withdrawals

Academic 6 2%

Behavior 8 2%

Commute 12 3%

Financial 150 38%

Moved 82 21%

Special Services 27 7%

Stronger Academics 8 2%

Unhappy 7 2%

Unknown 92 23%

Total 392

*As of October 20, 2016

FY16 FY17

Previous Year Scholarship Recipients with No Award

711 647

Percent of Eligible Students 28% 23%

Reasons for No Award

Did Not Apply 27% 22%

Did Not Qualify 14% 15%

Assigned Other Aid 10% 0%

Not Approved 2%

Not Enrolled 49% 61%

Fund Number of Withdrawn

Students

Total Award

Amount

HRI/NIS 26 $69,673

Recruitment 71 $106,785

Retention 82 $99,398

General 200 $299,306

General + Retention 13 $19,950

Total 392 $595,112

Eligible Schools Completing the

Individual Application

Eligible Schools NOT completing the

Individual Application

Eligible Schools Completing the Bulk Applicable

Eligible Schools NOT Completing

the Bulk Applicable

Total Number of Schools 15 24 7 12

Average Total CSF Support $31,400 $23,300 $251,300 144,175

Average Withdrawn Students per School

3 1 12 7

- Average Award Amount for Withdrawn Students

$1,098 $982 $1,832 $1,365

- Percent of Withdrawn Students for Financial Reasons

48% 32% 33% 32%

Average Number of Students Not Receiving an Award in FY17

3 2 10 3

- Percent of No Award Students who Did Not Apply

47% 44% 67% 58%

- Percent of No Award Students who Did Not Qualify

53% 33% 27% 29%

Additional Aid Application Data

Individual Application Summary

39* schools

15 Elementary Schools applied

Total requested: $158,875 for 76 students

Total approved $116,400 (73% of request) for 72 students o Average total family income of applications: $40,944.29 o Average family size: 3.9 o Average Award Requested: $2,103.62

Bulk Grant Summary

19* schools

12 Elementary Schools applied

Total requested: $577,400 for potentially 370 students

Total approved: $430,000 (74% of request) o Average total family income of school’s applications: $42,076.85 o Average family size: 3.4

*Currently funded schools; all elementary schools in the Archdiocese of Boston were invited to apply via five email announcements from April 2016-August 2016.

School Students Request Total

Approved Guaranteed Approved

Emergency Approved

Archbishop Williams High School, Braintree 6 $0.00 $0.00

Cardinal Spellman High School, Brockton 6 $5,305.00 $5,304.00 $5,304.00

Cathedral High School, Boston 12 $8,700.00 $6,200.00 $6,200.00

Cristo Rey High School, Boston 5 $2,500.00 $2,500.00 $2,500.00

Fontbonne Academy, Milton 9 $31,419.00 $30,219.00 $11,519.00 $18,700.00

Matignon High School, Cambridge 1 $2,000.00 $2,000.00 $2,000.00

Mount Alvernia High School, Newton 4 $18,725.00 $10,500.00 $10,500.00

Notre Dame Academy, Hingham 4 $12,000.00 $6,000.00 $6,000.00

Pope John XXIII High School, Everett 1 $3,500.00 $3,500.00 $3,500.00

Saint Joseph Preparatory School, Brighton 6 $2,462.00 $2,462.00 $2,462.00

Ursuline Academy, Dedham 4 $0.00 $0.00

Total 58* $86,611.00 $68,685.00 $30,985.00 $37,700.00

*Some students were included in more than one school request

Elizabeth Seton Academy Update

Background

Elizabeth Seton Academy closed in August, 2016. The Catholic Schools Office assisted students during

this transition to help enroll the students in other Catholic high schools for the 2016-2017 school year.

Following allocation of their own aid, including unfunded aid to fill empty seats, high schools were

invited to request additional aid from the Catholic Schools Foundation to support the enrollment of

Elizabeth Seton Academy students at their school. Additional funding was made available from

withdrawn students’ awards and the emergency fund.

Request for Additional Aid

42 Students; 11 Current CSF scholarship recipients

11 High Schools

Requested: $84,111

Approved: $68,685

o Guaranteed Scholarship Fund: $30,985

o Emergency Fund: $37,700

Confirmed Enrollment and FY17 CSF Scholarships

86% of ESA students have enrolled in a Catholic School for the 2016-2017 school year

$91,713 will be allocated for ESA students

o $43,044 will be allocated to current CSF Scholars

o $15,969 will be allocated in additional guaranteed awards

o $32,700 will be allocated in emergency fund awards

Tab 5

FY17 Advancement Committee Goals

Members: Craig Tateronis, Chair; Jack O’Connor, Eileen Shapiro, Ryan Connolly, Dan diBartolomeo, Timothy McBride, Peter Pound

Charge The Advancement Committee is accountable for promoting and engaging in fundraising and marketing activities that build and strengthens CSF’s base of support with new prospects and existing supporters. This will be accomplished by assisting CSF staff in identifying and cultivating prospects for funding our operations and programs. Additionally, Advancement Committee members will ensure that CSF has fundraising and marketing processes in place for the successful fulfillment of the foundation's mission. They will monitor the processes and results on a quarterly basis and ensure transparency to the full Board of Trustees.

Goals

Promote a mission-driven fundraising program that works to connect donors with the various CSF programs, while

maintaining or exceeding budgeted goals and tracking progress with clearly defined metrics.

Reinvigorate the committee by adding a minimum of five new members in fiscal year 2017.

Strengthen and broaden CSF’s corporate partnerships.

Help CSF staff make connections to influential members who understand, promote and enthusiastically pursue the

fundraising needs of the CSF. Activities can include, personalizing appeal letters, providing access to potential donors,

making thank you calls, inviting friends and colleagues to events, hosting an event at your home or other venue, provide

help and insight to a CSF recognition event.

Align CSF’s Advancement Committee and 2017 Dinner Committee in order to strengthen outreach and fundraising activities.

Encourage and promote Board participation at events and as ambassadors in carrying out the CSF mission.

First Quarter Meeting (September 28)

Review FY16 End of Year Financials

Evaluate FY17 Goals and YTD Funds Raised

Discuss merits of a recognition event

Review Prospect List/letters to prospects

Outstanding items/set AC dates for FY17 Third Quarter Meeting (March 29)

Review YTD Funds Raised and action items

Annual Fund Campaign Check –in where are we?

Review Funding Opportunities and Prospecting Plan with create actions

Second Quarter Meeting (January 19)

Review YTD Funds Raised

Examine Annual Dinner Fundraising

Annual Fund Campaign Check –in where are we?

Review Funding Opportunities and Prospecting plan with action items

Fourth Quarter Meeting (June 21)

Review YTD Funds Raised

Review FY18 Development Budget

Review Funding Opportunities and Prospecting Plan with action items

Board of Trustees Meeting

October 27, 2016

Advancement Committee Report

General

Staffing

o CSF restructured the development department. Kate Rota has been hired as the

new Development Associate who will be charged with administrative

development tasks, coordinating events, marketing initiatives, and creating a CSF

scholar alumni program. Hillary Laggis, as the Director of Corporate Partnerships

will now focus on strengthening existing corporate relationships and forming new

partnerships. She will still manage the Young Leaders program and the annual

dinner gala. Gina Rindfleisch as the Director of Development will continue to

focus on individual and foundation gifts.

o CSF will pay particular attention to building a Planned Giving program. Staff will

work on various marketing initiatives and creating and naming a formal Legacy

Society.

Fundraising

FY17 Annual Campaign

o The Annual Campaign is in full swing and staff is working hard to secure

renewed support as well recapturing lapsed donors and adding new individuals to

our base.

o Commitment value is down slightly, but this is purely due to timing at this point

in the year.

o Year over year, donor to donor CSF is trending up by 6%.

Advancement Committee update

o Development staff is looking to reinvigorate the Advancement Committee by

adding five new members to the committee this year. We currently have two new

members, Peter Pound of Morgan Lewis and Tim McBride of Bessemer. The

focus of the committee this year is to help make connections to new donors and

other individuals CSF has identified as a priority.

CSF is asking Board members to help recommend additional members to the

Advancement Committee. Areas of interest: Biotech, Commercial Real Estate,

and Technology.

Events:

Christmas for the Kids Cocktail Party- Wednesday, November 30th

from 6-9pm

o 250 expected guests

ICSF Dinner-Thursday, April 6th

from 6-9pm

2017 ICSF Bus Tour – Wednesday, May 3rd

from 11-2pm

o Saint Patrick School in Roxbury

Marketing/PR

Social Media

o Social media campaign to recognize corporations that donate over 10K.

Schools have been sent signs and will be notified when to post thank you

messages to these donors.

o Holiday campaign, #ICSFHope, is underway. Students have been asked to

create videos that give their definition of hope, a story of a time they had

hope, or an example of someone who has hope.

o CSF Scholar Seniors will be recognized on our social media pages for the

great things they have accomplished throughout their four years of high

school.

Catholic Space

o Catholic TV- Blink segment planning process is underway.

o Catholic Radio is running an ad about Christmas for the Kids in their

upcoming events segment.

o CSF is sponsoring a bi-weekly article in The Pilot about catholic education.

o Starting in November, CSF will be running an ad in the church bulletin in

over 25 parishes in the Archdiocese of Boston.

Annual Report –due in mailboxes week of November 14th

Corporate Partnerships

Corporate Volunteer Day – Wednesday, August 17th

- Cathedral High School

o Attended by over 50 young professionals from eight companies

Hill Holliday

o Internship: expanded to 3 interns per year with possibility of increasing to 6 (2

per session) with ultimate goal of hiring them in college and post college

o Quarterly employee engagement events: focus on advertising and media

workshops

Thursday, October 13th

–first event at Mission Grammar in Roxbury.

HH employees made videos with students for school website

o New Hire Materials: HH will be including information about ICSF

involvement in all new hire training packets beginning Nov 1st.

Staples

o $2M & Change- young professionals at Staples nominated CSF to receive

funding through their associate grant program. We received $5K this year, and

have the potential to receive $25K in the future now that we are in the

program.

o Printing – Staples will continue to print our dinner materials pro bono (~15K

value)

PwC

o “Earn Your Future” Day—PwC will partner with one of our high schools this

spring to provide financial literacy workshops. Goal is to provide quarterly

events in 2017.

Morgan Lewis

o Peter Lynch event –Thursday, November 10th

PL will speak to attorneys about markets and then he and Roger

Joseph will pitch ICSF involvement to all employees

o Roger Joseph and Peter Pound nominated a young professional attorney to

join the Young Leaders Council. She is working to further young professional

involvement at the firm.

Corporate Advisory Group

o Working to put together an advisory committee of corporate citizenship

professionals to further inform corporate engagement programs moving

forward.

Young Leader Program growth

o Before 2012: no formal engagement program.

o 2013: young leader dinner committee formed.

o 2013-2015: number of young leaders quadrupled in size to 100.

o 2015—Young Leader Council established to provide continuity in

programming throughout the year (8 young professionals representing 5

companies).

o 2016—six young professional events each year, 200+ young leaders, 10 long-

term corporate engagement partnerships, comprehensive programming, more

than $100K raised each year.

CSF Board of Trustees Current Profile Fiscal Year End 2016

Number of Trustees

Giving Level

4 $100K+

3 $50,000 - $99,000

1 $25,000 - $49,999

7 $10,000 - $24,999

3 $5,000 - $9,999

6 $500 - $4,999

Fundraising and Public Relations Expectations Include:

• Provide annual financial contribution to the Catholic Schools Foundation according to Trustee’s means. • Join in supporting the Catholic Schools Foundation by participating in events when possible, including the Annual Dinner Celebration, Annual Bus Tour, and other events throughout the year. • Periodically review the staff’s list of prospects to assist in offering contacts and /or make introductions. • Enhance public image of the Catholic Schools Foundation when opportunities arise. • Make an effort to promote the work of the Catholic Schools Foundation among friends, family, and colleagues. Consider hosting an event at home or another venue.

Tab 6

Finance Committee FY 17

Charge

The Finance Committee of The Catholic Schools Foundation (CSF) shall advise, make policy recommendations and

recommend operating procedures to the Board of Trustees and Executive Director on all aspects of CSF's finances, including

annual operating budget, general financial management and long range fiscal planning.

Goals

Approve and monitor a comprehensive budget process and make a recommendation to the Board on the FY 17

Budget, in collaboration with development and allocations committees.

Review and monitor on-going operations;

Monitor the work of the audit and investment committees

Develop three year operating model to facilitate planning that to maximizes mission impact while factoring

cash reserve needs

Actions

Consider budget impact of any adjustments to scholarship timeline

Regular review of financial statements and reports of the audit and investment committees

Regularly review the long range cash flow

Analyze various scenarios to maximize impact and purpose of Investment Pool

Monitor relationship with Catholic Community Fund

Meeting Dates and Topics

All meetings will have review of financials and investment performance

8/16/16 2/14/2017

Review of FY16 Financials Review of FY 18 Budget

Review of CSF goals Update on 2016 Audit

Finalize draft committee goals FY 17 Auditor Recommendation

Surplus/Deficit/Reserve Discussion Review of CCF assets

Update on 3 year model

Initial high school scholarship budget review

11/15/2016 5/16/17

Initial elementary scholarship budget review FY 18 Goals discussion

Report on FY 16 Audit progress Review and setting of Payout Policy

Review of investment pool model Finalization of Budget

Update on 3 year model Review of Insource Insurance Coverage

Review of open accounts –signers/access

Review of LRP Model

Audit Committee FY 17

Charge

The Audit Committee makes a recommendation on the appointment of an auditor; reviews the audit

process; presents the results of the audit to the Finance Committee. The committee should also

understand and provide insight regarding internal controls.

Goals

Make a recommendation to the Board on the appointment of an independent auditor.

Monitor and review the annual audit and make a report to the Finance Committee with a goal of having

the audit completed by 2/1/17

Monitor and review CSF compliance with new financial reporting standards and FLSA impact

Ensure compliance with Federal and State filings.

Actions

Oversee audit process and findings

Review changes to new financial reporting standards and FLSA impact

Review of any changes to internal controls and banking relationships

Recommend auditor for 2017 Audit

Executive Session with auditor

Meeting Dates and Topics

Meeting dates TBD based on audit schedule

Investment Committee FY 17

Charge

The Investment Committee recommends investment policies to the Catholic Schools Foundation Board pertaining to

the Foundation’s funds and any other funds under the investment stewardship of the Foundation. Such policies include

the approval of asset classes, permitted ranges, and the spending policy. The Board has delegated the implementation

of the investment policies, including without limitation the selection, monitoring, and termination of investment

managers, to the Committee.

Goals

Establish annual performance goal

Approve policies and guidelines for CSF Investment Funds

Monitor and advise on fund selection towards agreed upon performance goal

Review and provide feedback on recommended annual distribution rate as set forth in the preliminary

budget and maintain adequate cash reserve

Actions

Regular review of investment performance against performance goal

Establishment of standing agenda and meeting topics

Annual Report to the Board of Trustees

Regular review of managers

Meeting Dates and Topics

(Quarters based on June 30th

fiscal year)

Q1(8/9/2016) Q2 (11/8/16)

Review of CSF goals and cash needs Investment Reporting Review

Finalize draft committee goals Performance Goal for next calendar year

Outside Manager Review Review fees and return

Conflict of Interest Disclosure Annual Report on Foundation activity

Q3 (2/14/17) Q4(5/9/17)

Annual Performance Review Policy and Guideline Review

Review of Draft Budget Update on CSF Budget and Distribution rate Investment Pool

Distribution Recommendation Standing Agenda Review

Annual Report to the CSF Board

Updated 8.5.16

䄐ｾ�

Revenue (accrual)

YTD Actual

through

6/30/16

Full FY16

Budget

Variance from

Budget

% of

Budget

Raised/S

pent

YTD Actual

through

6/30/16

YTD Actual

through

6/30/15

Variance

from the prior

FY

Appeal & Dinner (excludes perm. rest.) 8,675,176 8,080,000 595,176 107% 8,675,176 9,332,170 (656,994)

BTSC 54,865 80,000 (25,135) 69% 54,865 29,442 25,423

YPP Event 28,837 40,000 (11,163) 72% 28,837 29,442 (605)

Total Income 8,758,878 8,200,000 558,878 107% 8,758,878 9,391,054 (632,176)

Expenses:

School Allocations (cash)

Scholarships 7,536,970 7,757,778 220,808 97% 7,536,970 6,841,413 695,557

Program & Other (directed) 890,102 1,210,469 320,367 74% 890,102 2,490,086 (1,599,984)

Total School Allocations 8,427,072 8,968,246 541,175 94% 8,427,072 9,331,499 (904,427)

Operating Expenses (accrual)

Management (incl depreciation) 444,919 444,556 (363) 100% 444,919 387,590 57,329

Allocations 325,458 420,609 95,151 77% 325,458 413,795 (88,337)

Development (incl events) 683,973 764,648 80,674 89% 683,973 674,147 9,826

Total Operating Expenses 1,454,350 1,629,813 175,463 89% 1,454,350 1,475,531 (21,182)

Total Expenses 9,881,422 1,629,813 716,637 606% 9,881,422 10,807,030 (925,609)

Net from Operations (1,122,544) (2,398,059) 1,275,515 47% (1,122,544) (1,415,977) 293,433

plus investment pool distribution 1,550,000 2,473,821 923,821 63% 1,550,000 1,000,000 550,000

Operating Surplus/Deficit 427,456 75,762 427,456 (415,977) 843,433

Operating Cash Required for Future Commitments 1,435,269

FY16 budgeted investment pool distribution not used (operating cash used) 923,821

Notes:

- The purpose of this report is to show performance in a format consistent with the original expectations for the year (budget)

- The investment pool distribution is budgeted at 4% of the trailing 12 quarters for the entire pool

YTD actual represents actual cash withdrawn from the pooled investment fund

- The continued development of this metric is intended to further drive discussions around: full year & multi-year forecasting,

developing a more comprehensive cash management policy (operating & investments) and the overall budgeting process

Catholic Schools Foundation

Operating Performance Metric - DRAFT

Revenue (accrual)

YTD Actual through 9/30/16

Full FY17 Budget

Variance from Budget

% of Budget

Raised/Spent

YTD Actual through 9/30/16

YTD Actual through 9/30/15

Variance from the prior

FY Appeal & Dinner (excludes perm. rest.) 517,956 8,115,400 (7,597,444) 6% 517,956 354,323 163,633 BTSC - - - - 49,365 (49,365) YPP Event 450 40,000 (39,550) 1% 450 320 130 Total Income 518,406 8,155,400 (7,636,994) 6% 518,406 404,008 114,398

Expenses:School Allocations (cash) Scholarships - 7,793,384 7,793,384 0% - - - Program & Other (directed) 12,963 1,201,900 1,188,937 1% 12,963 256 12,707 Total School Allocations 12,963 8,995,284 8,982,321 0% 12,963 256 12,707 Operating Expenses (accrual) Management (incl depreciation) 107,029 440,585 333,557 24% 107,029 125,592 (18,564) Allocations 71,292 420,302 349,010 17% 71,292 72,460 (1,168) Development (incl events) 92,009 785,187 693,178 12% 92,009 110,771 (18,761) Total Operating Expenses 270,330 1,646,075 1,375,745 16% 270,330 308,823 (38,493) Total Expenses 283,293 10,641,358 10,358,065 3% 283,293 309,079 (25,786)

Net from Operations 235,113 (2,485,958) 2,721,071 -9% 235,113 94,929 140,184

plus investment pool distribution - 2,501,229 2,501,229 0% - - -

Operating Surplus/Deficit 235,113 15,271 235,113 94,929 140,184

Operating Cash Required for Future Commitments 1,426,306 FY17 budgeted investment pool distribution not used (operating cash used) -

Notes: - The purpose of this report is to show performance in a format consistent with the original expectations for the year (budget) - The investment pool distribution is budgeted at 4% of the trailing 12 quarters for the entire pool YTD actual represents actual cash withdrawn from the pooled investment fund - The continued development of this metric is intended to further drive discussions around: full year & multi-year forecasting, developing a more comprehensive cash management policy (operating & investments) and the overall budgeting process

Catholic Schools FoundationOperating Performance Metric - DRAFT

1) Asset Allocation

CSF Spending

Program vs Benchmark

2) Program Performance Attribution

Asset Allocation vs Manager Selection

3) Manager Allocation

Manager Selection

New Ideas

4) Manager Performance

Active vs Passive

Track Buys/Sells

TBD

5) Manager Position Overlap

Index Overlap

Manager Overlap

Concentrated Portfolios

Tracking Error

1) Asset Allocation - Actual Versus Benchmark

Normal Range Over/Under

Equities Current + / - 10% Median Range

Domestic

Large Cap 18.3% 30.0% -11.7%

Small Cap 11.3% 10.0% 1.3%

All Cap 11.0% 0.0% 11.0%

Total US 40.7% 40.0% 0.7%

International

Global 3.9% 15.0% -11.1%

Asia 5.0% 5.0%

Europe 1.9% 1.9%

Emerging 5.4% 5.4%

Total Int'l 16.2% 15.0% 1.2%

Sectors / Other

Sector/Other 7.8% 5.0% 2.8%

Total Equities 64.7% 60.0% 4.7%

Normal Range Over/Under

Bonds Current + / - 10% Median Range

Corporate / HY 9.5% 20.0% -10.5%

Treasuries 5.8% 10.0% -4.2%

Non-US 1.0% 5.0% -4.0%

Total Bonds 16.3% 35.0% -18.7%

Cash Cash Equivalents 19.0% 5.0% 14.0%

Total 100.0% 100.0% 0.0%

4) Manager Performance 33 69 117

Shaded green = Full Year CSF Investment Invest 30-Sep

Date 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2 yrs 5 yrs 9 yrs

EQUITIES 9 Mos 9 Mos 9 Mos

Domestic

Large Cap

T Rowe Price Growth Stock Fund (6/05) PRGFX Jun-05 10.4% -42.3% 43.3% 16.9% -1.0% 18.9% 39.2% 8.8% 10.9% 1.3% 7.6% 12.8% 8.1%

Vanguard Value Index Investor (8/15) VIVAX Aug-15 0.1% -36.0% 19.6% 14.3% 1.0% 15.0% 32.9% 13.1% -1.0% 8.6% 7.3% 11.6% 5.2%

Vanguard Growth Index VIGRX 12.5% -38.2% 36.0% 16.8% 1.7% 16.9% 32.0% 13.4% 3.2% 6.5% 8.3% 12.4% 8.2%

Fidelity Advisor Insight FINSX 20.6% -37.6% 29.3% 16.3% -0.7% 16.1% 32.1% 9.3% 2.6% 6.7% 6.7% 11.0% 7.7%

Fidelity 500 Index Institutional Class (6/16)FXSIX Jun-16 5.5% -37.0% 26.6% 15.0% 2.1% 16.0% 32.3% 13.6% 1.4% 7.8% 8.2% 12.3% 6.7%

Small Cap

MA Weatherbie and Co Dec-05 13.9% -38.2% 39.0% 28.5% 1.2% 11.3% 50.5% -4.0% 1.7% 7.7% 1.9% 10.6% 8.6%

Frontier Research Fund Dec-05 17.3% -37.9% 33.8% 21.8% -10.0% 20.8% 35.7% 10.6% -1.6% 6.5% 5.5% 9.8% 7.5%

Dimensional U.S. Small Cap Value DFSVX Dec-15 -10.8% -36.8% 33.6% 30.9% -7.6% 21.7% 42.4% 3.5% -7.8% 11.5% 2.3% 9.7% 5.5%

Russell 2000 ETF IWO 6.9% -38.4% 34.5% 29.3% -3.0% 14.8% 43.2% 5.8% -1.3% 7.7% 4.4% 10.7% 7.7%

All Cap

Lateef Investments Oct-06 7.9% -35.6% 23.7% 15.1% 0.2% 19.2% 32.0% 5.0% 3.0% 1.6% 3.5% 10.0% 5.7%

Scharf Investments Core Equity Fund Oct-06 5.0% -28.4% 27.7% 12.9% 3.3% 12.6% 31.8% 15.8% 1.9% 4.9% 8.1% 11.8% 7.7%

International

Global

Morgan Stanley Inst. Intl Equities, Class A (12/03)MSIQX Dec-03 9.8% -33.1% 21.6% 6.1% -7.6% 19.6% 20.4% -6.1% 0.4% 0.4% -2.0% 4.1% 1.8%

Asia

Matthews Japan (2/11) MJFOX Feb-11 -11.0% -28.4% 10.1% 19.6% -7.7% 8.3% 34.0% -2.6% 20.8% 9.9% 9.8% 10.0% 3.9%

Ishares MSCI Japan Small Cap Index Fund (5/10)SCJ May-10 na -19.6% 2.2% 19.1% -4.9% 5.5% 24.7% -2.7% 14.9% 11.5% 8.3% 8.0% na

Europe

Vanguard FTSE Europe (3/15) VGK Mar-15 13.2% -44.7% 31.3% 6.0% -11.6% 21.6% 24.4% -7.1% -1.9% 0.8% -3.0% 3.6% 0.7%

Emerging Markets

Vanguard FTSE Emerging Markets (3/15) VWO Mar-15 37.3% -52.5% 76.3% 19.5% -18.8% 19.2% -4.9% -0.1% -15.4% 17.5% -0.2% -1.5% 2.4%

Sectors / Other

Amex Energy Select Spdr Fd (6/05) XLE Jun-05 36.9% -38.9% 21.8% 21.8% 2.8% 5.2% 26.2% -8.7% -21.5% 19.6% -5.4% 2.8% 3.9%

Market Vectors Gold Miners (8/11) GDX Aug-11 16.8% -26.1% 36.7% 33.9% -16.1% -8.9% -54.0% -12.4% -24.9% 92.6% 9.0% -13.1% -3.5%

Financial Select Sector SPDR® ETF (2/16)XLF Feb-16 -18.9% -54.1% 17.0% 11.9% -17.1% 28.3% 35.3% 14.9% -1.7% 1.3% 5.0% 9.1% -2.2%

ISHare US Healthcare ETF IYH 8.0% -22.8% 20.7% 4.1% 11.2% 17.3% 41.2% 25.1% 6.2% 1.1% 11.3% 17.1% 10.3%

Select Sector SPDR Real Estate (9/16) XLRE 7.5%

BONDS

Corporate / HY

Vanguard Short TTM Corp Fund (3/09) VFSTX Mar-09 5.9% -4.7% 14.0% 5.2% 1.9% 4.5% 1.0% 1.8% 1.0% 3.6% 2.3% 2.4% 3.4%

Fidelity Capital & Income (2/15) FAGIX Feb-15 3.8% -31.9% 72.1% 17.1% -1.9% 16.4% 9.7% 6.1% -1.0% 9.1% 5.1% 6.5% 7.6%

Third Avenue Focused Credit Fund (2/15) TFCIX Feb-15 na na na 15.6% -4.6% 17.2% 16.8% -6.0% -30.1% -1.4% -14.6% -2.9% na

High Yield Index ETF (HYG) na -17.6% 28.6% 11.8% 6.7% 11.6% 5.7% 1.9% -5.0% 12.4% 3.1% 5.6% na

Non-US

Morgan Stanley Emerging Markets (2/14) -29.0% 42.0% 27.3% -5.4% 27.3% -13.0% -11.9% 1.7% -28.2% 26.9% -2.7% -1.7% 1.0%

CSF Return 9.2% -30.5% 27.4% 14.3% -0.9% 11.1% 17.5% 4.5% -0.5% 5.9% 3.6% 6.4% 4.8%

Benchmark (45% S&P 500/EAFE 15%/35% Barclays Agg/Tbills 5%) 6.0%

CSF Market Value (MM) 49.2 34.9 43.9 50.0 49.0 53.7 61.6 63.5 61.6 65.3

3) Manager Allocations

9/30/2016 30-Sep Expense

Date Cost Market Percent YTD 2015 Ratio

Equities

Domestic

Large Cap

T Rowe Price Growth Stock Fund (6/05) Jun-05 667,020 1,073,456 1.6% -0.4% 10.9% 0.70%

Vanguard Value Index Investor (8/15) Aug-15 5,851,052 6,083,996 9.3% 9.1% -1.0% 0.23%

Fidelity 500 Index Institutional Class (6/16) Jun-16 4,165,722 4,818,416 7.4% 7.8% 1.4% 0.06%

Total Large US 10,683,793 11,975,867 18.3%

Small Cap

MA Weatherbee and Co (12/05) Dec-05 1,340,000 2,351,891 3.6% 4.8% 1.7% 1.00%

Frontier Research Fund (12/05) Dec-05 1,945,000 4,598,476 7.0% 6.2% -1.6% 1.10%

Dimensional U.S. Small Cap Value Dec-15 400,000 436,579 0.7% 10.1% -7.8% 0.52%

Total Small US 3,685,000 7,386,946 11.3%

All Cap

Lateef Investments (10/06) Oct-06 1,000,000 2,314,111 3.5% 2.5% 3.0% 1.00%

Sharf Investments Core Equity Fund (10/06) Oct-06 3,000,000 4,889,999 7.5% 5.6% 1.9% 1.00%

Total All Cap 4,000,000 7,204,110 11.0%

Total US 18,368,793 26,566,923 40.7%

International

Global

Morgan Stanley Inst. Intl Equities, Class A (12/03) Dec-03 2,857,705 2,536,646 3.9% 0.6% 0.4% 0.95%

Total Int'l Large 2,857,705 2,536,646 3.9%

Asia

Matthews Japan (2/11) Feb-11 627,377 1,019,960 1.6% 3.2% 20.8% 1.30%

Ishares MSCI Japan Small Cap Index Fund (5/10) May-10 1,386,817 1,658,086 2.5% 4.0% 14.9% 0.50%

Ishares MSCI South Korea Capped ETF (8/16) Aug-16 599,959 605,424 0.9% 13.2% -8.3% 0.63%

Total Asia 2,614,153 3,283,469 5.0%

Europe

Vanguard FTSE Europe (3/15) Mar-15 749,857 653,323 1.0% -0.1% -1.9% 0.12%

Ishares trust MSCI Europe Financials (8/16) Aug-16 598,938 609,266 0.9% -13.3% 5.7% 0.48%

Total Europe 1,348,794 1,262,589 1.9%

Emerging Markets

Vanguard FTSE Emerging Markets (3/15) Mar-15 2,732,800 2,460,174 3.8% 14.7% -15.4% 0.15%

BMO Emerging Markets (5/16) May-16 1,000,050 1,075,252 1.6% 19.6% -11.3% 1.15%

Total EM 3,732,850 3,535,426 5.4%

Total Int'l 10,553,503 10,618,130 16.2%

Sectors / Other

Amex Energy Select Spdr Fd (6/05) XLE 826,980 956,977 1.5% 15.8% -21.5% 0.17%

Market Vectors Gold Miners (8/11) Aug-11 2,076,087 1,585,562 2.4% 85.6% -24.9% 0.53%

Financial Select Sector SPDR® ETF (2/16) Feb-16 1,400,497 1,184,904 1.8% 4.1% -1.7% 0.14%

iShares US Oil&Gas Explor&Prodtn (5/16) May-16 499,567 545,409 0.8% 11.6% -24.6% 0.43%

Ishares TR US Home Cons ETF (8/16) Aug-16 600,487 567,530 0.9% 0.4% 5.7% 0.44%

Select Sector SPDR Real Estate (9/16) Sep-16 272,785 279,921 0.4% 7.5% 0.14%

Sector/Other 5,676,403 5,120,304 7.8%

Total Equities 34,598,699 42,305,357 64.7%

Bonds

Corporate / HY

Vanguard Short TTM Corp Fund (3/09) Mar-09 4,829,079 4,947,561 7.6% 3.5% 1.0% 0.20%

Fidelity Capital & Income (2/15) Feb-15 741,393 754,816 1.2% 8.5% -1.0% 0.71%

Third Avenue Focused Credit Fund (2/15) Feb-15 790,771 490,362 0.8% -1.4% -22.4% 0.88%

Total Corp / HY 6,361,243 6,192,739 9.5%

Treasuries

United States Treasury Bond due 02/15/2018 1,848,703 1,856,938 2.8%

United States Treasury Bond TIPS due04/15/2018 1,941,197 1,947,009 3.0%

Total Tsy's 3,789,900 3,803,947 5.8%

Non-US

Morgan Stanley Emerging Markets (2/14) Feb-14 723,290 651,635 1.0% 22.9% -28.2% 2.10%

Total Non-US 723,290 651,635 1.0%

Total Bonds 10,874,433 10,648,320 16.3%

Cash Cash Equivalents

Fidelity Account Money Market 93,214 93,214 0.1%

United States Treasury bill due 8/25/16 12,293,358 12,297,417 18.8%

Total Cash 12,386,572 12,390,631 19.0%

TOTAL 57,859,705 65,344,308 100.0%

Period: YTD ending 8.31.16

YTD 9/30/2016

Bench Return

US 45% S&P 500 7.8% S&P 500 3.5%

Int'l 15% EAFE 2.8% EAFE 0.4%

Bonds 35% Barclays Agg 6.0% Barclays Agg 2.1%

Cash/Other 0% Tbills 0.0% Cash/Other 0.0%

Other* 5% Tbills 0.0% Tbills 0.0%

total 100% total 6.0%

*asset return x normal allocation

*Assumes "other" is supposed to be absolute return and so Tbills used as bench

G/L

o/u 9 Mos asset manager/sector/style

Actual Normal Actual 9 Mos allocation*

US 47% 2% US 8.8% US 4.2% 0.2%

Int'l 14% -1% Int'l 8.3% Int'l 1.2% 0.0%

Bonds 17% -18% Bonds 4.6% Bonds 0.8% -1.1%

Cash 22% 22% Cash 0.2% Cash 0.0% 0.0%

Other 0% -5% Other 0.0% Other 0.0% 0.0%

total 100% ^total 6.2%

vs. Bench 0.1% -0.9%

* Average over period * over/under % allocation x index return

^ Flows and averaging can result in minor distortion from actual peformance presented on month end # actual return - asset alloc - normal return

1.0%

selection #

0.5%

0.8%

-0.2%

0.0%

0.0%

CSF Actual Portfolio

Allocations* Returns Attribution

% G/L

Benchmark

AllocationsReturns Attribution*

Normal AllocationYTD 9/30/2016

Category Level Type of Support

FY16 Budget FY17 Budget FY18

Recommend.* Difference

Directed Funds

ABLE HS Scholarship $102,500.00 $102,500.00 $102,500.00 $ -

Corporate Work Study Program

HS Scholarship $91,800.00 $91,800.00 $91,800.00 $ -

K-12 Continuum Scholarship

HS Scholarship

$25,000.00 $25,000.00

CSF Scholar HS Scholarship $2,092,960.00 $2,140,594.00 $2,150,000.00 $9,406.00

General Scholarship - High

HS Scholarship $147,634.00 $100,000.00 $100,000.00 $ -

Gerstner HS Scholarship $30,000.00 $60,000.00 $92,500.00 $32,500.00 Directed

South Boston Boys and Girls Club

HS Scholarship $15,000.00 $15,000.00 $15,000.00 $ -

TOTAL

$2,479,894.00 $2,509,894.00 $2,576,800.00 $66,906.00

*Does not include $100,000 Lynn Collaborative or Emergency Fund

High School FY18 Grant Recommendation

FY18 High School Budget Recommendations

It is recommended that the FY17 High School Scholarship Budget be set at $2,576,800.00. In doing so, CSF would:

o Allocate $450,000 from new funding and graduating CSF Scholars to a new class of CSF scholars;

o Provide $25,000 for the Continuum Scholarship pilot program;

o Guarantee $15,969 for Elizabeth Seton Academy students enrolling at new Catholic high schools;

o Continue to fund three Corporate Work Student Programs at the Cristo Rey schools;

o Maintain general scholarship funding at Cathedral High School

o Maintain scholarship amounts for ABLE and SBBGC scholarships;

o Increase the Gerstner Scholarships by $32,500 for a new class of scholars per donor agreement.

Rationale

The outlined budget would allow CSF to maintain current scholarship programs, including the CSF Scholars and ABLE

program, while providing schools with more flexibility to assign awards to scholarship recipients. This will help schools

to meet the needs of families with varying financial needs.

The amount for the Continuum Scholarship pilot will allow for a methodical and purposeful roll-out of the program as

CSF prioritizes K-12 Catholic school continuum and considers the impact of merit aid and financial aid practices at high

schools in the archdiocese of Boston.

The increase in the CSF Scholarship amount and guaranteed awards for ESA will allow for stability for families during

school transitions, including the closure of Elizabeth Seton Academy and the change of St. Clement School from a K-12

school (previously considered an elementary school) to a grade 7-12 high school.

FY 16

Surplus Recommendation

Background:

The process for determining any calculated operating surplus was presented at the June

Board meeting. The Board voted to authorize the Finance Committee to reserve any

portion of a calculated operating surplus in excess of $100K for use provided a

satisfactory review of:

o Current year performance against budget

o Current year GAAP performance

o Further discussion at the October Board meeting in context of longer

range financial planning

*Performance Summary:

Calculated Operating Surplus/(Deficit): $427,456

GAAP Surplus/ (Deficit) ($3,242,568)

*unaudited

Analysis:

As is demonstrated by the comparison between the GAAP surplus/deficit in FY13, FY14

FY15 and FY16, wide swings can occur due to market and have a significant impact on

the GAAP surplus deficit.

During FY16 Management and the Finance Committee updated the measurement tool to

better align with the budgeting process. This new metric allows us to more accurately

measure the Foundation’s performance against its goals but is more of a hybrid

cash/accrual accounting method. In addition, we also began tracking how much

potentially encumbered cash is being kept in the operating accounts: this is cash that is

temporarily restricted by purpose and could be called to fulfill future purposes. At June

30, 2016 this amount is $1.4M.

In addition to the new methodology for calculating the operating surplus/deficit, the

Finance Committee and Management have also worked to develop a modeling tool that

will allow it to better assess the longer-term impacts of funding decisions and

commitments while also considering encumbered cash.

Recommendation: .

That the Board defer on making any decision on the FY16 calculated surplus/deficit at

this time while the Board and Allocations Committee determine future funding priorities

and direction. If additional support is determined as being necessary, the Finance

Committee is now better poised to determine the longer-term impact of the additional

funding needs.