BHEF Board Of Directors Meeting Packet FINAL

BHEF Board of Directors Meeting, FY20, Q4, June 15, 2020 BHEF Board of Directors Meeting June 15, 2020 12:00 p.m. – 2:00 p.m. EST Please join the video conference using this link. Meeting ID: 977 6132 6791 Password: 957669 You may also dial in using your phone. (See next page) AGENDA 12:00 p.m. Business Meeting 1.Welcome and Overview – Randy Woodson 2.Approval of the FY20 Q3 Board of Directors Meeting Minutes – Randy Woodson (Tab 1) 3.Chief Executive Officer’s Report – Brian Fitzgerald (Tab 2) 4.Committee Reports – Randy Woodson a.Finance and Audit – Brian Fitzgerald (Tab 3) b.Membership – Jeff Armstrong (Tab 4) 5.Nomination of Vice Chair and Review of the Class of 2023 Board Slate – Randy Woodson (Tab 5) 6.Closing Remarks – Randy Woodson 1:30 p.m. Executive Session BHEF Member Meeting, FY20, Q4, June 15, 2020 BHEF Board of Directors Meeting Zoom Board Meeting Details June 15, 2020 Topic: BHEF Board Meeting FY20, Q4 Time: Jun 15, 2020 12:00 PM Eastern Time (US and Canada) Join Zoom Meeting https://zoom.us/j/97761326791?pwd=UWFxTW02b3djSm5BRjFKdDBzSnh2QT09 Meeting ID: 977 6132 6791 Password: 957669 One tap mobile +16465588656,,97761326791#,,1#,957669# US (New York) +13017158592,,97761326791#,,1#,957669# US (Germantown) Dial by your location +1 646 558 8656 US (New York) +1 301 715 8592 US (Germantown) +1 312 626 6799 US (Chicago) +1 669 900 9128 US (San Jose) +1 253 215 8782 US (Tacoma) +1 346 248 7799 US (Houston) Meeting ID: 977 6132 6791 Password: 957669 Find your local number: https://zoom.us/u/aHToW7J72 Tab 1 – FY20, Q3 Board of Directors Meeting Minutes BHEF FY2020, Q3 Board of Directors Meeting Minutes | 1 BHEF Board of Directors Meeting April 20, 2020 1:00 PM EST Board of Directors Meeting Minutes Attendees Board Members: Nariman Farvardin, Brian Fitzgerald (ex officio), Mike King, Mary Papazian, Brian Roach, Tim Sands, Randy Woodson. BHEF Staff: Suzanne Amoonarquah, Steve Barkanic, Stephanie Blochinger, Stacey Brown, Janet Chen, Ursula Gross, Amanda Pumphrey, Terah Speigner, Jennifer Thornton, Danielle Troyan. Welcome and Overview Board Chair Randy Woodson opened the meeting at 1:00 p.m. He welcomed members and provided an overview of the agenda, offering appreciation for the Board joining the meeting during the COVID-19 crisis – an unprecedented time for BHEF and the world. Approval of the FY20 Q2 Board of Directors Meeting Minutes Woodson asked for a motion to approve the FY20, Q2 Board of Directors Meeting Minutes. The motion was made and seconded. The minutes were unanimously approved. Chief Executive Officer’s Report Before taking the Board through the CEO’s Report, Brian Fitzgerald reflected on BHEF’s capability and willingness to rise to the challenges presented by the ever-changing dynamics surrounding BHEF and the country during the COVID-19 crisis which began taking hold in March 2020. The crisis affected BHEF’s academic and business members differently, and, due to the urgency in which its membership needed to act to respond effectively to the needs of their students, employees, and customers, BHEF shifted its focus presented to the Board at the winter member meeting to one that positioned its members to be an integral part to the recovery efforts post-COVID. Rising to the COVID-19 Challenge BHEF planned to execute a strategy in the coming months to strengthen its brand as a national leader in digital upskilling by building and deploying a digital upskilling credentials marketplace BHEF FY2020, Q3 Board of Directors Meeting Minutes | 2 in the DMV. BHEF will propose national scaling to private funders as a means of responding to the COVID-19 pandemic. To do this, BHEF will deploy digital upskilling solutions through NSF C-Accel Phase II implementation funding that develops the DMV upskilling ecosystem and scales ecosystems with BHEF members and partners nationally. BHEF will build on this grant and seek other grants to secure new, multi-year streams of revenue to ensure sustainability of BHEF’s strategic vision. Throughout and beyond the crisis BHEF will continue to build new external and member communications capabilities to improve brand recognition, increase visibility of market intelligence (MI) publications, thought leadership (TL) events, and member value. BHEF will strengthen member value by observing the massive shift to online learning and will provide members with MI, strategies, and tools to help lead the post-pandemic economic recovery. FY20 National COVID Leadership Opportunities BHEF’s leadership and fundraising strategy shifted towards mitigating the effects of the pandemic on higher education and supporting industry-recognized online digital credentials. BHEF planned to seek significant grant funding to position the organization as the national leader in talent ecosystem development. BHEF’s strategy included: representing BHEF on Strada’s COVID-19 Impact Coalition and proposing a national upskilling credential marketplace; adding a COVID-19 response component to the digital upskilling credentials replication in New England with the New England Board of Higher Education, other partners, and other regions; co-authoring op-eds with its members and partners on higher education’s response to the pandemic and its positioning for the predictable enrollment surge for reskilling; and publishing a Workforce Partnership Initiative (WPI) replication guide and case studies to enable business and higher education to address the surge in demand for upskilling. C-Accel Phase II: The Upskilling Solutions Marketplace Fitzgerald noted that BHEF briefed the Board on the key findings from Phase I of the NSF C-Accel grant during the winter member meeting in February 2020. Many BHEF members and partners helped support and mold the upcoming grant submission to NSF for Phase II with considerations for the COVID-19 pandemic. BHEF, its participating members, and partners saw a technology solution that will connect employers with employees, education providers, labor market data, and app developers to generate clearer skills-demand signaling to build a transparent ecosystem of upskilling credentials that increase ROI for employers and employees. BHEF anticipated that this process will accelerate the development of modular upskilling credentials delivered by universities in response to employer needs. Fitzgerald reviewed a graphical representation of the proposed BHEF marketplace to give the Board a better understanding of how this platform will operate. BHEF FY2020, Q3 Board of Directors Meeting Minutes | 3 Affirming Member Value BHEF will leverage technology to rapidly advance its work and gain the deployable, actionable MI members expect. With an eye to retention, BHEF will expand its lens to gain insights borne from the challenges and opportunities the tectonic shift to online learning and remote work presented to employers, educators, and learners. Fitzgerald reassured the Board that BHEF’s recruiting strategy was fluid and linked to member retention. BHEF’s deployable marketplace solutions – tailored for today’s rapidly changing environment – stem from member engagement in BHEF’s work and will be a determining factor in the FY21 retention and growth model. BHEF will continue to provide members with monthly insights briefs, spotlighting various members. BHEF released its second quarterly missive in March, which shared unpublished insights on Building Bridges for Success: Regional Business-Higher Education Partnerships to Grow and Diversify the STEM Workforce. Fitzgerald urged Board members to participate in the C-Accel Phase II $5 million grant opportunity. The two-part model will map a region’s digital technology upskilling opportunities, identify the credentials that mirror employer-recognized KSAs and in-demand characteristics, and transparently communicate the credential’s value to the employee. BHEF Communications Fitzgerald reported that BHEF planned to invest in WPI and COVID related publications to build a new web presence, build shorter executive summaries from recent reports and case studies to make it more accessible, and edit to include COVID-19 response strategy language. This will help position BHEF favorably to respond and educate in a post-COVID world while using these products in communicating with members and prospects. Ensuring BHE’s Financial Stability BHEF reduced non-essential activities, accessed the CARES Act, and used fundraising momentum to pursue new revenue. BHEF applied to its lender for a Paycheck Protection Program loan in the amount of $250,000 and will qualify for up to $200,000 in forgiveness. In quarter three, BHEF planned to submit the proposal for an NSF C-Accel Phase II grant. Additionally, BHEF sought to supplement its multi-year grant from the JPMorgan Chase Foundation or a funding partner to support additional regional projects for WPI. BHEF’s New Organizational Structure BHEF will end its 15-year infrastructure relationship with SmithBucklin on May 31, 2020 and will relocate into new office space and onto the cloud. BHEF will become fully independent operating entity licensed in DC on June 1, 2020. BHEF signed a multi-year lease at One Dupont Circle, and anticipated to move in mid-May. BHEF completed the task of choosing its new payroll and benefits, insurance, technology, and telecommunications providers. BHEF will BHEF FY2020, Q3 Board of Directors Meeting Minutes | 4 continue to contract with SmithBucklin’s Financial Management Services, at least through the FY19 audit. BHEF Summer 2020 Member Meeting BHEF plans to host the summer 2020 member meeting virtually to comply with social distancing regulations, and to protect its staff and members during the COVID-19 pandemic. BHEF expected to deliver progressive, actionable MI, and peer interaction at the meeting. A draft agenda anticipated that the meeting would focus on its members’ and prospects’ responses and challenges to the COVID-19 pandemic. Fitzgerald hoped to blend upskilling and the COVID-19 pandemic over a fireside chat with member discussion. The meeting will close with a briefing on the C-Accel Phase II proposal. Members expressed support for adapting the summer meeting to the crisis, and how universities are relying on business to help them respond to the massive shift to the online learning environment. Finance and Audit Committee Report As of February 29, 2020, BHEF received $2,140,248 in new revenue, which included $1,425,000 in membership dues and $715,248 (cash-in) in grants. Temporarily restricted assets equaled $757,552. The forecast included $3,061,013 in total revenue including an estimated $1,700,000 in membership revenue (down from $2,100,000), $1,361,013 in grant revenue, and the release of approximately $602,360 from Temporarily Restricted Net Assets – grants to be spent in 2020. Forecast expenses total $3,602,899. The forecast reflects a net change in net assets of $366,694. In December 31, 2019, BHEF’s investment fund was $1,031,894.95. An 11% increase over the December 31, 2018 fund balance of $920,940.96. At the time of this report, BHEF had not yet received its March 31, 2020 statement. BHEF’s investment portfolio is a Life Strategy Fund comprised of 80 percent of the managed portfolio in bonds and 20 percent in stocks. BHEF was hedged against the fall in securities in the past month in the markets. BHEF anticipated that its planned aggressive fundraising strategy will provide a surplus in some way by end of year. Challenges posed by potential losses and membership revenue concerns will hopefully be mitigated by this strategy. Membership Committee Report Troyan reported that the decrease in membership revenue reported to the Board was partially due to dropping Principal, The Boeing Company, and The Dow Chemical Company for non- payment of dues. BHEF welcomed two new members, Félix V. Matos Rodriguez, chancellor, The City University of New York and Jay A. Perman, chancellor, University System of Maryland. BHEF FY2020, Q3 Board of Directors Meeting Minutes | 5 BHEF continued to its attempts to increase its membership and bring it closer to parity by seeking out new members with the help of introductions by BHEF members. BHEF scheduled multiple upcoming calls with member prospects to engage and brief them on BHEF and its value to their organizations. BHEF anticipated that there would be positive outcomes to the calls. The Membership Committee developed a new membership criteria for academic members. Troyan briefed the Board on the details of the proposed criteria and asked for a motion to approve. Papazian asked for a motion, Woodson seconded. The Board unanimously approved the new academic criteria. Nomination of BHEF Officers Mike King was nominated for Chair. His nomination was accepted and approved. Mary Papazian was nominated for Vice-Chair. Her nomination was accepted and approved. The Board of Directors slate was approved. Closing Remarks The meeting went into executive session at 2:22 pm. These minutes were certified on: __________________, 2020. By: Brian K. Fitzgerald BHEF Secretary __________________________________ Tab 2 – Chief Executive Officer’s Report Rising to the Challenge: Demonstrating National Leadership in Response to the COVID-19 Education And Upskilling Crisis CEO Report Board of Directors Meeting June 15, 2020 “In the Midst of Every Crisis, Lies Great Opportunity” Albert Einstein © 2020 BHEF 2 Rising to the COVID-19 Challenge Strengthen BHEF ’s brand as a national leader in digital upskillin g by building and deploying a digital-upskilling credentials marketplace in the DMV with $5M in NSF funding and propose national scaling to private funders as a means of responding to COVID-19. •Enhance BHEF’s position as a national leader in deploying digital-upskilling solutions with Phase II implementation funding ($5M) that develops the DMV upskilling ecosystem and then scales that ecosystem with BHEF members and partners nationally. •Partner with Ellucian to lead a national coalition of companies providing COVID aid to undergraduates. •Expand BHEF’s national thought leadership by engaging funders to scale BHEF’s upskilling solutions. •Continue to build new external and member communications capabilities to improve brand recognition, increase visibility of market intelligence publications, thought leadership events, and member value. •Strengthen member value by observing the massive shift to online learning and provide members with market intelligence, strategies, and tools to lead the post-pandemic economic recovery. •Shift BHEF’s fundraising strategy to mitigating the effects of the pandemic on higher education in order to secure new, multi-year streams of revenue to ensure BHEF’s strategic vision. © 2020 BHEF 3 FY20 COVID Leadership Opportunities Significant grant funding will position BHEF as the national leader in talent ecosystem development: •Engage Strada as a thought partner in support of the COVID-19 Impact Coalition and propose national upskilling credential marketplace. •Announce a partnership with Ellucian to engage companies in a coalition providing undergraduate scholarships to mitigate the financial impact of the COVID crisis. •Submitted COVID response proposals to Strada and the ECMC Foundation for digital-upskilling credentials replication in New England with the New England Board of Higher Education, other partners, and regions. •Coauthor with BHEF members and partners op-eds on higher education’s response to the pandemic and positioning for the predictable enrollment surge for upskilling. •Publish a replication guide and case studies to enable business and higher education to address surge in demand for upskilling. © 2020 BHEF 4 ©2020 BHEF 5 The Upskilling Solutions Marketplace An employer-focused technology platform efficiently connecting employers, employees, app developers, LMI data feeds, and education/training providers. Design imperatives ➢Scalable ➢Employer-focused ➢Support for current and unemployed workers ➢Grow university micro-credentials in critical 21st-century digital fields ➢Address current disconnects in upskilling ecosystem Outcomes ➢New jobs for workers displaced by COVID-19 ➢Retention/tenure/upward mobility for current workers ➢Enhanced worker skillsets and marketability ➢Increased employer competitiveness ➢Improved alignment between higher education and business ➢Increases ROI on employer education benefits ©2020 BHEF 6 Supports employers, employees, and job-seekers with: ➢Data on skills gaps and needs ➢Transparent career pathway information ➢Upskilling tools and resources ➢Micro-credential upskilling opportunities Facilitates alignment between industry skill needs and higher education syllabi Utilizes open source design and an interoperable, blockchain-based platform Allows for connections to higher education and human resources systems UPSKILLING SOLUTIONS MARKETPLACE Tools and Training Affirming Member Value BHEF is leveraging technology to gain the deployable, actionable market intelligence members expect. In addition, with an eye to retention, BHEF is broadening its lens to gain insights from the challenges and opportunities this tectonic shift to online learning and remote work presents to employers, educators, and learners. •Retention and growth.As companies and institutions adapt, BHEF’s recruiting strategy is fluid and linked to member retention. BHEF’s deployable marketplace solutions―tailored for today’s changing environment―stem from member engagement in BHEF’s work and will be a determining factor in FY21 retention and growth model. •Exclusive market intelligence. BHEF continues its monthly insights, spotlighting members Drake, San JoséState University, and in May, AWS and University of Maryland Global Campus. BHEF released its second quarterly missive in March, which shared unpublished insights on Building Bridges for Success: Regional Business-Higher Education Partnerships to Grow and Diversify the STEM Workforce. •Member ROI from NSF Phase II: BHEF urges its members to participate in this $5M grant opportunity, which will build an upskilling-solutions marketplace and modular higher-ed upskilling credentials. The two-part model will map a region’s digital upskilling opportunities, identify the credentials that mirror employer-recognized KSAs and in-demand characteristics, and communicate transparently the credential’s value to the employee. © 2020 BHEF 7 BHEF Communications BHEF looks ahead to new grants, video collateral, and PR opportunities with partners. COVID-19 put BHEF’s communication plans f or the last quarter on hold, and eff orts were directed to upcoming projects. NSF C-Accel Pitch BHEF utilized our PR firm, Live Wire Strategic Communications, for presentation training and pitch practice for key BHEF staff members in advance of the NSF C-Accel pitch in June. NSF C-Accel Video NSF asked that all potential grantees submit a short video pitch that will be shared with the public. BHEF asked Live Wire to also develop the video along with the presentation training. This short piece will focus on the need for BHEF’s proposed upskilling marketplace, as well as testimonials from stakeholders. Ellucian/BHEF Partnership In response to COVID-19, BHEF anticipates a partnership with Ellucian that creates a coalition of companies and foundations to provide scholarships and other forms of support to low-income students from underserved communities. BHEF is prepared to support this coalition on a programmatic level and from a PR standpoint as the details are confirmed. BHEF Website Plans for a new website, but work on this is on pause as BHEF responds to COVID-19 and focuses on key NSF preparations. © 2020 BHEF 8 © 2020 BHEF 9 Ensuring BHEF’s Financial Stability BHEF reduced non-essential activities, accessed the CARES Act, and used fundraising momentum to pursue new revenue. •BHEF secured a Paycheck Protection Program loan in the amount of $250,000 and will qualify for up to $200,000 in forgiveness (Q3). •Submitted BHEF’s C-Accel $5M Phase II digital upskilling credential marketplace grant proposal. •BHEF seeks to supplement to its multi-year grant from the JP Morgan Chase Foundation or a funding partner to support additional regional projects for WPI, e.g., CT (Q4). FY20/21 Fundraising targets by quarter include: •Q3: Strada Education Network—New England Digital Credential Ecosystem; ECMC Foundation—Connecticut Digital Credential Ecosystem-Phase I CT COVID Response •Q4: NY City Workforce Fund; Carrol and Milton Petrie Foundation; Alfred P. Sloan Foundation; Abell Foundation; Arnold Ventures LLC •Q 1/21: Lumina Foundation; James Irvine Foundation; Gordon and Betty Moore Foundation; W.M. Keck Foundation BHEF’s New Organizational Infrastructure BHEF is a fully independent operating entity as of June 1, 2020. •BHEF became a fully independent operating entity licensed in DC on June 1, 2020. •BHEF signed a multi-year lease in January 2020 to relocate to One DuPont Circle (the ACE building); moved into custom-built space on May 15. •BHEF began operating with new payroll and benefits, insurance, technology and telecommunications providers on June 1. •BHEF will continue to contract with SmithBucklin’sFinancial Management Services through the FY19 audit/December 2020 and will bring financial management in-house in 2021. •BHEF will explore providing financial management services for other small nonprofits. © 2020 BHEF 10 Discussion Finance and Audit Membership Tab 3 – Finance and Audit Report BHEF Board of Directors Meeting, FY20, Q4, June 15, 2020 1 To: BHEF Board From: Brian Fitzgerald Date: June 11, 2020 Re: Finance and Audit Report On behalf of the BHEF Finance and Audit Committee, we are pleased to report on the status of BHEF’s finances and update you on BHEF’s compliance with reporting requirements. This report includes: •Update on FY20 Forecast and Financials through April 30, 2020 •FY21 Proposed Budget •BHEF Cash Position Update •Investment Fund Report •FY2019 IRS Form 990 Filing Update on FY20 Forecast and Financials through April 30, 2020 1 As of April 30, 2020, the date of the last financials available, BHEF received $2,269,264 in revenue, which included $1,425,000 in membership dues, and $844,264 in grants and donations. Expenses at April 30, 2020 totaled $1,912,819. As we prepare to close out the third quarter of FY20, we anticipate the final year-end revenue will total $2,923,944 and the expenses will total $3,046,028, which will result in a ($97,084) in operations and a net change in total assets of $262,307. It should be noted that on May 7, 2020 BHEF was approved for and received the Paycheck Protection Program (PPP) loan from the Small Business Administration via SunTrust/Truist Bank in the amount of $249,800. While these funds are currently considered a loan and not included in the revenue numbers reflected above, BHEF is diligently working on the documents needed to convert that loan into a grant. Once approved, FY20 revenues will increase by that amount. FY21 Proposed Budget The proposed FY21 operating budget (see Attachment B) includes revenue of $2,000,000 in member dues, $791,000 in HEWI grants, and $100,000 in other grant revenue. It also includes expenses of $2,698,518, yielding an operating surplus of $222,482. BHEF has submitted the Phase II proposal to the National Science Foundation for $5,000,000 over two years. Notification of awards is expected in late July 2020. 1 Unaudited cash-basis statements from BHEF’s accountants. BHEF Board of Directors Meeting, FY20, Q4, June 15, 2020 2 Cash Flow Update As of May 31, 2020, BHEF’s operating cash balance in SunTrust Bank was $1,022,161.57 and $54,030.71 in Sandy Springs Bank savings account. The SunTrust balance does include the previously mentioned PPP funding. It is projected that BHEF will have approximately $1,266,079 in the bank at fiscal year-end close on September 30, 2020. Investment Fund Report The value of the BHEF Investment Fund as of March 31, 2020 was $1,000,848. This represents a decrease of three percent compared to December 31, 2019 when funds were $1,031,895. BHEF’s investment portfolio included $1,000,848 in Vanguard self-managed LifeStrategy Income Fund, with 80 percent of the managed portfolio in bonds and 20 percent in stocks. FY19 IRS Form 990 Filing BHEF’s auditors completed our FY19 audit and Form 990. Form 990 was filed with the IRS February 15, 2020. This submission completes the FY19 audit/reporting cycle. BHEF had no audit findings. BHEFs FY20 audit is expected to begin in December 2020. ATTACHMENT A Business-Higher Education Forum FY20 Financials at April 30, 2020 & YE Forecast Approved FY2020 FY2020 As of 4-30-2020 FY2020 YE Forecast Operating Net Assets Unrestricted Revenue: 200 Membership - Revenue2,100,000$ 1,425,000$ 1,675,000$ 300 Conferences -Revenue-$ -$ -$ 510 Market Intelligence - Revenue-$ -$ -$ 520 JPMC - Revenue600,000$ -$ -$ 521 WPI - Revenue-$ 100,000$ 100,000$ 525 Google - Revenue122,500$ -$ -$ HEWI Revenue:508,029$ 744,264$ 1,148,944$ NSF C-Accel - $1,000,000 NSF Year V - $138,513 NSF Supplemental - $10,431 ------------------------------------------------ TOTAL OPERATING NET ASSETS3,330,529$ 2,269,264$ 2,923,944$ Expenses 110 Administration - Expenses584,786$ 316,336$ 584,786$ 200 Membership - Expenses345,218$ 152,708$ 229,062$ 250 Grants - Expenses70,038$ 39,947$ 89,921$ 300 Conferences - Expenses329,863$ 136,868$ 181,868$ 500 Communications - Expenses268,577$ 124,339$ 216,509$ 510 Market Intelligence - Expenses130,000$ -$ -$ 520 JPMC - Expenses588,000$ 171,240$ 281,860$ 521 WPI - Expenses70,000$ 35,323$ 52,985$ 525 Google - Expenses284,500$ 58,390$ 87,585$ HEWI Summary - Expenses612,742$ 877,668$ 1,321,454$ ------------------------------------------------ Total Expenses3,283,723$ 1,912,819$ 3,046,028$ NET CHANGE IN NET OPERATING ASSETS46,806$ 356,445$ (122,084)$ Non-Operating Net Assets Revenue: 900 BHEF Investment Fund - Revenue40,000$ (15,777)$ 25,000$ Total Revenue40,000$ (15,777)$ 25,000$ Expenses: 900 BHEF Investment Fund - Expenses-$ -$ -$ Total Expenses-$ -$ -$ ----------------------------------------------------------------------------- Net Change in Non-Operating Net Assets40,000$ (15,777)$ 25,000$ NET CHANGE IN NET ASSETS86,806$ 340,668$ (97,084)$ ============================================================================================ Beginning Balance 2020 Additions 2020 Subtractions Ending Balance at 4-30-2020 Projected FY20 YE Balance at 9-30-2020 Temporarily Restricted Net Assets877,731$ 100,000$ (344,189)$ 633,542$ 359,392$ -$ -$ -$ -$ -$ 520-JPMC569,327$ -$ (171,240)$ 398,087$ 167,565$ 521-WPI/Northrup79,585$ 100,000$ (35,323)$ 144,262$ 135,077$ 525-Google149,583$ -$ (58,390)$ 91,193$ 56,750$ 782-CIT II Smart Cities79,236$ -$ (79,236)$ -$ -$ ============================================================================================ BALANCE OF TEMPORARY RESTRICTED633,542$ (344,189)$ 633,542$ 359,392$ TOTAL NET CHANGE IN NET ASSETS974,210$ 262,307$ ============================================================================================ BHEF Board Directors Meeting, FY20, Q4, June 15, 2020 1 ATTACHMENT B Business-Higher Education Forum PROPOSED FY2021 Budget Approved FY2020 FY2020 YE Forecast Proposed FY2021 Operating Net Assets Unrestricted Revenue: 200 Membership - Revenue2,100,000$ 1,675,000$ 2,000,000$ 300 Conferences -Revenue-$ -$ -$ 510 Market Intelligence - Revenue-$ -$ -$ 520 JPMC - Revenue600,000$ -$ -$ 521 WPI - Revenue-$ 100,000$ 100,000$ 525 Google - Revenue122,500$ -$ -$ HEWI Revenue:508,029$ 1,148,944$ 791,000$ New Project - ECMC $341,000-$ New Project - STRADA - $250,000-$ New Project - OTHER - 200,000 ------------------------------------------------------ TOTAL OPERATING NET ASSETS3,330,529$ 2,923,944$ 2,891,000$ ---------------------------------------------------------------------------- Expenses 110 Administration - Expenses584,786$ 584,786$ 607,250$ 200 Membership - Expenses345,218$ 229,062$ 335,079$ 250 Grants - Expenses70,038$ 89,921$ 57,695$ 300 Conferences - Expenses329,863$ 181,868$ 233,040$ 500 Communications - Expenses268,577$ 216,509$ 212,760$ 510 Market Intelligence - Expenses130,000$ -$ -$ 520 JPMC - Expenses588,000$ 281,860$ 167,565$ 521 WPI - Expenses70,000$ 52,985$ 135,077$ 525 Google - Expenses284,500$ 87,585$ 56,750$ HEWI Summary - Expenses612,742$ 1,321,454$ 893,302$ ------------------------------------------------------ Total Expenses3,283,723$ 3,046,028$ 2,698,518$ ---------------------------------------------------------------------------- NET CHANGE IN NET OPERATING ASSETS46,806$ (122,084)$ 192,482$ ---------------------------------------------------------------------------- Non-Operating Net Assets Revenue: 900 BHEF Investment Fund - Revenue40,000$ 25,000$ 40,000$ Total Revenue40,000$ 25,000$ 40,000$ Expenses: 900 BHEF Investment Fund - Expenses-$ -$ -$ Total Expenses-$ -$ -$ ---------------------------------------------------------------------------- Net Change in Non-Operating Net Assets40,000$ 25,000$ 30,000$ ---------------------------------------------------------------------------- NET CHANGE IN NET ASSETS86,806$ (97,084)$ 222,482$ ===================================================================== ===================================================================== Beginning Balance FY20 Balance at 4-30-1010 Projected FY20 YE Balance Temporarily Restricted Net Assets877,731$ 633,542$ 359,392$ -$ -$ -$ 520-JPMC569,327$ 398,087$ 167,565$ 521-WPI/Northrup79,585$ 144,262$ 135,077$ 525-Google149,583$ 91,193$ 56,750$ 782-CIT II Smart Cities79,236$ -$ -$ ===================================================================== BALANCE OF TEMPORARY RESTRICTED359,392$ TOTAL NET CHANGE IN NET ASSETS 262,307$ ===================================================================== BHEF Board of Directors Meeting, FY20, Q4, June 15, 2020 1 Tab 4 – Membership Report BHEF Board of Directors Meeting, FY20, Q4 June 15, 2020 1 MEMBERSHIP COMMITTEE REPORT June 15, 2020 I.DASHBOARD Date Total Corporate Academic Emeritus Jun 2020 51 21 27 3 Feb 2020 50 21 26 3 Oct 2019 55 23 29 3 Jun 2019 58 25 30 3 Mar 2019 58 25 30 3 II.FY20 REVENUE AS OF JUNE 1, 2020 A FY20 revenue target $2,100,000 B FY20 projected revenue (as of 04/20/2020) $1,700,000 C Invoiced $1,900,000 D Pending/Off-schedule invoices $0 E Booked (as of 06/01/2020) $1,450,000 F Outstanding $125,000 G Non-renewals/Other ($325,000) H Revised expected (D+E+F) $1,575,000 I Anticipated $ to projected (H-B) $125,000 J Current $ to target (B-E) $250,000 III.NEW MEMBERS •Miami Dade College: Rolando Montoya, interim president (transition) •Union College: David Harris, president •University System of Maryland: Jay Perman, chancellor (transition) BHEF Board of Directors Meeting, June 15, 2020 2 IV. TRANSITIONS • AAU: Barbara R. Snyder, president (fall 2020) • California State University System: TBD V. FY20 Q3 NON-RENEWALS: NONE FY20 PROSPECTS COUNTSOURCEPROSPECT NAMECOMPANY/INSTITUTIONTITLESTATUS STAGE 1: Prospect identification 1BHEFDwayne NellisOhio UniversityPresident Call March 18. Understands needs corporate partner and will regroup with BHEF post COVID-19 1BHEF Gregory WashingtonGeorge Mason UniversityIncoming President Becomes GMU president July 1; currently dean of UC Irvine engineering school 1BHEFClarence ArmbristerJohnson C. Smith UniversityPresidentConnecting through contact at Duke Foundation 1BHEFMarge MagnerBrysam Global PartnersCo-founder and Managing PartnerDetermining best approach 1BHEFTBDDeloitteTBDConnecting through internal champion 1BHEFTBDSASTBD Membership on hold for FY20. Keeping SAS engaged through programmatic work 1BHEF/SBD Chris Calio/ Mark Scheinberg Pratt & Whitney/ Goodwyn College President/ PresidentEngage through SBD/Connecticut work 1BHEF/SBDJohn CiullaWebster BankPresident and CEOEngage through SBD/Connecticut work 1BHEF/SBD Kevin Graney General Dynamics Electric BoatPresidentEngage through SBD/Connecticut work 1BHEF/SBDDarrell HarveyThe Ashforth CompanyCo-CEO and PrincipalEngage through SBD/Connecticut work 1BHEF/SBDPeter HoecklinTrumpf Laser USAPresident and CEOEngage through SBD/Connecticut work 1ArmstrongJay AkridgePurdueProvost and EVP, Academic Affairs Likely successor; will engage when time comes 1PapazianTBDNvidiaTBDDetermining best approach and prospect 1PapazianTBDPixarTBDDetermining best approach and prospect 14 STAGE 2: Vetting and outreach materials 1ArmstrongDoug Baker, Jr. EcolabChairman and CEODetermining best approach 1ArmstrongLloyd DeanDignity HealthCo-CEOConnect through staff 1ArmstrongGeorge Lee IIGoldman SachsCIO, Investment Banking GroupAwaiting membership decision 1ArmstrongDoug MerrittSplunkPresident and CEODetermining best approach 1ArmstrongDan PhillipsHuluCTODetermining next steps 1ArmstrongAdela de la TorreSan Diego State UniversityPresidentS20 invitation and additional info sent 1ArmstrongTBDSymantecTBDDetermining best approach and prospect 1KingGreg AdamsKaiser PermanenteChairman and CEODetermining best approach 8 BHEF Board of Directors Meeting, FY20, Q4, June 15, 2020 CONFIDENTIAL: NOT FOR DISTRIBUTIONAs of 6/9/2020 FY20 PROSPECTS STAGE 3: Member speaks with prospect 1BHEF/SBDChristopher SwiftThe HartfordChairman and CEOEngage through SBD/Connecticut work 1BHEF/SBD/OlianRavi KumarInfosysPresident and Deputy COOS20 invitation and additional info sent 1BHEF/WeinbergCharles LoweryPrudential Chairman and CEO Determining best approach; may not be the partner for UTEP as focus is New Jersey/Newark 1BHEF/WeinbergAlan SchnitzerTravelersChairman and CEOPeter speaking with Alan in coming weeks 1ArmstrongRonnie GreenUniversity of NebraskaPresidentRegistered for S20 1Armstrong/PapazianTBDCiscoTBD Determining best approach; Cisco new Silicon Valley site lead 1Martin Wendy WintersteenIowa State UniversityPresidentS20 invitation and additional info sent 1 Martin/Armstrong/ PapazianTBDWells FargoTBDDetermining best approach 1PapazianAllen BlueLinkedIn Co-founder and VP, Product Management S20 speaker 1PapazianTim CookAppleCEODetermining best approach 1PapazianMark KennedyUniversity of ColoradoPresidentPotential transition from Tony Frank 1PapazianDavid WilsonMorgan State UniversityPresidentDetermining best approach 1PapazianEric YuanZoomCEOHold until cycle balances out 1PapazianPat Gelsinger VMwareCEOMeeting TBD 1WoodsonJohn SharpTexas A&M UniversityChancellorS20 invitation and additional info sent 15 STAGE 4: Prospect speaks with BHEF 1BHEFLori Dickerson FouchéTIAACEO, TIAA Financial SolutionsTransition; TBD 1BHEFHeather WilsonUTEPPresident Seeking corporate partner; Prudential may not be best bet, as their focus is New Jersey/Newark 1BHEF/NEBHE/OlianMohamed AliIDGCEOPreparing discussion outline to secure meeting 1BHEF/WoodsonHarold MartinNC A&T UniversityChancellor Working through internal conversations; invited to S20 1ArmstrongMeredith SchmidtSalesforceEVP, CEO Essentials SMBAwaiting membership decision 1PapazianEric KellyOverland TandbergChairman and CEOAwaiting response for call; Invited to S20 6 STAGE 5: Prospect F2F with BHEF 1BHEFTom CaulfieldGlobalFoundriesCEO S20 CEO panelist and will remain for balance of meeting 1 STAGE 6: BHEF welcomes new member 1BHEFJay PermanUSMChancellorTransition 1BHEFRolando MontoyaMiami Dade College Interim President5/22: BHEF briefing 1LoreeDavid HarrisUnion CollegePresidentTom Caulfield will likely join as business partner 3 STAGE 7: New members registered for S20 1BHEFJay PermanUSMChancellorSee Stage 6 1BHEFRolando MontoyaMiami Dade College Interim PresidentSee Stage 6 1LoreeDavid HarrisUnion CollegePresidentSee Stage 6 BHEF Board of Directors Meeting, FY20, Q4, June 15, 2020 CONFIDENTIAL: NOT FOR DISTRIBUTIONAs of 6/9/2020 Tab 5 – Class of 2023 Board Slate BHEF Member Business Meeting, June 15, 2020 BHEF Board of Directors Slate June 15, 2020 Class of 2023 Nariman Farvardin Stevens Institute of Technology Laura Ipsen Ellucian, Inc. Marty Martin Drake University Brian Napack John Wiley & Sons, Inc. Judy Olian Quinnipiac University Jay Perman University System of Maryland