BHEF FY21 Q1 Board Of Directors Meeting Materials FINAL Email Campaign

BHEF Board of Directors Meeting, FY21, Q1, October 29, 2020 BHEF Board of Directors Meeting October 29, 2020 2:00 p.m. – 4:00 p.m. EST Please join the video conference using this link. Meeting ID: 951 4862 7080 Password: 327557 You may also dial in using your phone. (See next page) AGENDA 2:0 0 p.m. Business Meeting 1. Welcome and Overview – Mike King 2. Approval of the FY20 Q4 Board of Directors Meeting Minutes – Mike King (Tab 1) 3. Chief Executive Officer’s Report – Brian Fitzgerald (Tab 2) 4. Committee Reports – Mike King a. Membership – Jeff Armstrong (Tab 3) b. Finance and Audit – Brian Fitzgerald (Tab 4) 5. Closing Remarks – Mike King 3:30 p.m. Executive Session BHEF Board of Directors Meeting, FY21, Q1, October 29, 2020 BHEF Board of Directors Meeting Zoom Board Meeting Details October 29, 2020 Topic: BHEF Board of Directors Meeting Time: Oct 29, 2020 02:00 PM Eastern Time (US and Canada) Join Zoom Meeting https://zoom.us/j/95148627080?pwd=eFlZYjdwWDBwVVdUSFRMbTNQdHJEZz09 Meeting ID: 951 4862 7080 Passcode: 327557 One tap mobile +13126266799,,95148627080#,,,,,,0#,,327557# US (Chicago) +16465588656,,95148627080#,,,,,,0#,,327557# US (New York) Dial by your location +1 312 626 6799 US (Chicago) +1 646 558 8656 US (New York) +1 301 715 8592 US (Germantown) +1 346 248 7799 US (Houston) +1 669 900 9128 US (San Jose) +1 253 215 8782 US (Tacoma) Meeting ID: 951 4862 7080 Passcode: 327557 Find your local number: https://zoom.us/u/aeHvq69WPG Tab 1 – FY20 Q4 Board of Directors Meeting Minutes BHEF FY2020, Q4 Board of Directors Meeting Minutes | 1 BHEF Board of Directors Meeting (virtual) June 15, 2020 1:0 0 PM EST Board of Directors Meeting Minutes Attendees Board Members: John DeGioia, 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 12:00 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. The U.S. was three months into the COVID lockdown, this created further strain on existing social and economic challenges throughout the United States. BHEF’s work, specifically with upskilling and reskilling the workforce, will aid BHEF members and become a key part of the transformative environment surrounding the pandemic. BHEF will be a source for solutions in the post-COVID workforce. BHEF will announce a partnership with Ellucian on a $10 million scholarship initiative for students who are at risk of not completing their degrees due to COVID, loss of employment, or their role in the community as first responders. If successful, this will build upon the five NSF grant sites to broaden STEM opportunities for people of color. Woodson asked the Board to share the challenges their respective businesses faced due to the pandemic and in what ways they felt BHEF could respond effectively to find solutions to those challenges. Sands described the reliance on the digital economy coming out of the pandemic and the urgent rethinking of the ways that Virginia Tech addresses equity and access. BHEF’s work was seen as key to the solution, specifically for May 2021 graduates who are predicted to graduate in historically lower numbers due to the pandemic. Papazian noted that the pandemic raised the digital divide and the disparities in digital access across both rural and urban communities, with a heavier impact on communities of color and BHEF FY2020, Q4 Board of Directors Meeting Minutes | 2 rural white communities to a point where urgent effective solutions were a primary concern. Investments in addressing the digital divide will provide the infrastructure San José needs to work with students to help them become a part of the digital economy workforce. Papazian emphasized the importance of reaching out to communities of color and using virtual learning as a tool to train students to work in the digital space as the business sector moves to a majority digital workforce. DeGioia discussed the importance of having entrepreneurial scholars and noted that educators need the experience and expertise of entrepreneurs to explore the intersection between entrepreneurship, racial equity, and social justice. Approval of the FY20 Q3 Board of Directors Meeting Minutes Woodson asked for a motion to approve the FY20 Q3 Board of Directors Meeting Minutes. The motion was seconded, and the minutes were unanimously approved. Chief Executive Officer’s Report Before taking the Board through the CEO Report, Brian Fitzgerald reflected on the environment pre-COVID. Although it was the greatest period of economic expansion on record, it produced a period of economic inequality by increased automation and lack of investment in skills, particularly digital skills. Crises like COVID accelerate trends and determine winners and losers—and the losers of COVID are clear: low-wage workers and communities of color experiencing income inequality. BHEF’s initial COVID response focused on the impact of higher education, but recent grant submissions provided an opportunity to broaden BHEF’s response to focus on students and unemployed workers in underserved communities. Rising to the COVID-19 Challenge Fitzgerald went on to describe BHEF’s strategy and leadership in response to COVID. The pandemic altered the process and the focus of the NSF C-Accel Phase II implementation grant, requiring all teams competing to provide a response component. BHEF initially focused exclusively on employees, but later added a challenge to skill unemployed workers. A partnership with Ellucian was underway to lead a national coalition of companies providing COVID aid to undergraduates from underserved communities. Discussions held with funding prospects, including Strada, focused on the opportunity to exploit BHEF’s decade-long experience in regional workforce development in service of educational and economic opportunity. Strada provided an opportunity to receive support on replicating BHEF’s regional workforce development model to work with mayors in under-resourced cities. FY20 National COVID Leadership Opportunities Fitzgerald listed the opportunities to position BHEF as the national leader in talent ecosystem development to mitigate education, economic, and social impacts of COVID through collective BHEF FY2020, Q4 Board of Directors Meeting Minutes | 3 action. Fitzgerald served on the Strada COVID-19 Impact Coalition, and briefed members and leaders on how the upskilling solutions marketplace can serve as a national solution. BHEF communicated with JPMorgan Chase and ECMC foundations about support for BHEF’s COVID response strategy. • ECMC: submitted a draft proposal for a pilot CT digital reskilling for reemployment with five community and career institutions, expanding to seventeen institutions in year two. • Strada: proposed a New England COVID response plan with a pilot of ten community colleges in underserved communities in ME, MA, CT, and RI, providing free digital credentials to unemployed workers. • JPMorgan Chase: examined the impact of COVID on twelve sites and added COVID response to select sites focused on economic opportunity. C-Accel Phase II: The Upskilling Solutions Marketplace BHEF’s Phase II proposal to NSF included a deep and diverse set of business and higher education partners to address a complex, multifaceted problem. The complexity and number of partners required a strong grant management function and Fitzgerald asked the Board to focus on the executive steering committee added to ensure performance and requested approval from the Board. Fitzgerald called on Mike King to provide clarity and understanding around the composition. King noted that BHEF intended to ensure appropriate visibility from senior levels of the sponsoring organizations to all of the activity, and to charter a management group that could ensure that milestones are clearly defined and met on a regular basis to then provide input to BHEF FY2020, Q4 Board of Directors Meeting Minutes | 4 the executive steering committee to oversee all activities. An unusual request for BHEF, but the funding risk required comprehensive oversight. Woodson asked the Board for a motion to approve the NSF grant oversight structure, King motioned, and it was seconded. The Board unanimously approved. Fitzgerald detailed the design imperatives, projected outcomes, and the infrastructure of the Upskilling Solutions Marketplace as an interoperable, blockchain-based open source platform. King noted that IBM supported the NSF grant with its Learner Credential Network and IBM hoped to scale globally to anyone who wants to adopt a blockchain network for the management of credentials. IBM will use the early phase piloting to scale globally through BHEF’s framework and additional services. BHEF members responded well to the proposal and several member institutions volunteered to become a part of Phase II. Fitzgerald described a few scaling partners and their experience, and how their expertise will help BHEF meet challenges in the workforce due to the pandemic and explained the proposed timeline of the grant, contingent on a phase II award. Affirming Member Value BHEF will focus on using the discussed technologies and funding opportunities to gain deployable, actionable market intelligence to help gain insights and provide solutions to the challenges faced by the shift to a digital environment for employers, educators, and learners. Further details provided in the Membership Report. BHEF Communications BHEF looked ahead to new grants, video collateral and PR opportunities with partners. Live Wire developed a video for submission for the NSF C-Accel pitch, the video included interviews with members and key staff. Website redesign plans halted while BHEF focused on COVID response development and key NSF preparations. Woodson requested BHEF share the NSF C- Accel pitch video with the Board. Fitzgerald explained that BHEF planned a post-member meeting memo including a link to the pitch video. Ensuring BH EF’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). BHEF submitted the C-Accel $5M Phase II digital upskilling credential marketplace grant proposal. BHEF seeks to supplement its multi-year grant from the JPMorgan Chase Foundation for COVID response and find a funding partner to support additional regional projects for the Workforce Partnership Initiative (Q4). FY20-21 fundraising targets by quarter include: BHEF FY2020, Q4 Board of Directors Meeting Minutes | 5 • Submitting a planning grant in July with members focused on reskilling African American and Latinx unemployed workers to increase racial and gender diversity in STEM. • FY20, Q3: Strada Education Network – New England Digital Credential Ecosystems; ECMC Foundation – Connecticut Digital Credential Ecosystem Phase I COVID Response. • FY20, Q4: New York City Workforce Fund; Carrol and Milton Petrie Foundation; Alfred P. Sloan Foundation; Abell Foundation; Arnold Ventures LLC. • FY21, Q1: Lumina Foundation; James Irvine Foundation; Gordon and Betty Moore Foundation; W.M. Keck Foundation. BHEF’s New Org anizational Infrastructure BHEF successfully transitioned out of SmithBucklin and is a fully independent and regulated nonprofit in DC. SmithBucklin’s Financial Management Services will remain contracted through FY20 audit/December 2020, and BHEF will bring financial management in-house in 2021. The Board thanked the BHEF team for the hard work and its response to the challenges of the pandemic. Fitzgerald concluded his CEO report. Finance and Audit Committee Report Fitzgerald indicated that he added a cash flow update to the report. As of May 31, 2020, BHEF’s operating cash balance in SunTrust Bank was $1,022,161.57 and $54,030.71 in the Sandy Springs Bank savings account. It is projected that BHEF will have approximately $1,266,079 in the bank at fiscal year-end close on September 30, 2020. BHEF did not meet the forecasted FY20 membership revenue target of approved $2.1 million. Dues collected to date are $1.425 million, and BHEF anticipates collecting close to $1.7 million total by year-end. BHEF received $600,000 in JPMorgan Chase revenue in 2020 and expects to obtain the second tranche in 2021 There is nearly $3 million in revenue forecasted by year-end and close to the same amount in expenses with a slight net change in operating assets at ($97,084). The forecast report did not include potential NSF grant funds. FY21 proposed budget: Membership revenue proposed at $2 million, $791,000 in HEWI grant funding, and $100,000 in Northrop Grumman grant funding. $791,000 in proposed minimal grant revenue did not include potential winnings from unsubmitted grant proposals. Estimated $2.7 million in expenses, leaving a surplus potential of approximately $200,000. Woodson asked the Board for a motion to approve the budget. The motion was moved seconded. The Board unanimously approved the FY21 Budget. Fitzgerald concluded his Finance and Audit Report. Membership Committee Report Armstrong reported three new members participating in the proceeding member meeting: Jay A. Perman, chancellor, University System of Maryland; David Harris, president, Union College; BHEF FY2020, Q4 Board of Directors Meeting Minutes | 6 and Tom Caulfield, chief executive officer, GlobalFoundries. Rolando Montoya, president, Miami Dade College and Eduardo Padrόn, president emeritus, Miami Dade College will also join the member meeting. Armstrong proposed the Board invite Eduardo Padrόn to become an emeritus member of BHEF. Woodson asked for a second, DeGioia seconded the motion, and the Board unanimously approved Eduardo Padrόn as a BHEF emeritus member. Armstrong stressed more business members were required, and that BHEF’s work provided an opportune recruitment platform for new members. The 35 parity goal stood, and Armstrong iterated the importance of reaching parity amongst the membership. He emphasized the need to not only engage with those who were familiar with BHEF’s ROI, but also to reach out and educate those who are unfamiliar with it as well. Internal investment was the focus for BHEF going forward. The challenges COVID presented to member retention and will continue to present is an imperative focal point. Armstrong requested that the Board assist with retention of BHEF members who were unengaged, particularly Notre Dame, Washington University in St. Louis, and University of Virginia. Sands committed to working on Jim Ryan at University of Virginia. Armstrong asked the Board to provide Danielle Troyan with any ideas and concluded his Membership Committee report. Woodson commented that BHEF was in a wonderful position to show its value in workforce development and answer the calls for racial and socio-economic solutions as ways to provide value to its members. Closing Remarks The meeting went into executive session at 2:00 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 Reskilling Crisis CEO Report Board of Directors Meeting October 29, 2020 Rising to the COVID-19 Challenge Strengthen BHEF’s brand as a national leader in digital reskilling and partner with private funders to deploy digital credentials as a means of responding to COVID-19. Enhance BHEF’s position as a national leader in deploying digital-reskilling solutions that develop robust ecosystems by capturing BHEF’s proven methods in more polished materials and publications to synthesize methods and impacts. Enhance Expand BHEF’s national thought leadership in diversity, equity, and inclusion through its meetings, publications, and projects. Expand Use BHEF’s national leadership in talent development to coalesce a response to emerging innovation and national security talent needs. Use Partner with Ellucian to lead a national coalition of companies providing COVID aid to undergraduates in need. Partner 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. Communicate Strengthen member value by observing the massive shift to online learning and providing members with market intelligence, strategies, and tools to lead the post-pandemic economic recovery. Strengthen Shift BHEF’s fundraising strategy to mitigate the effects of the pandemic on under-and unemployed adults and enter into strategic partnerships with aligned organizations with access to additional funding sources to advance BHEF’s strategic vision. Shift ©2020 BHEF 2 FY20 COVID Leadership Successes Continued grant funding will position BHEF as a national leader in talent ecosystem development: •Engaged Strada as a thought partner in support of one of the COVID-19 Impact Coalition’s “Big Bets,” the “Equity Cities Network,” which will promote equitable and inclusive economic and workforce growth. •Advanced 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-reskilling credentials replication in New England with the New England Board of Higher Education, other partners, and regions. •Co-authored, with BHEF staff member, journal article highlighting BHEF’s market intelligence and research on barriers to reskilling and skills-based hiring. •Published a BHEF-Business Roundtable (BRT) Workforce Partnership Initiative replication guide and case studies to enable business and higher education to proactively address surge in demand for reskilling in the wake of COVID. ©2020 BHEF 3 Supporting Strada’s Equity Cities Network Securing BHEF’s role as a national thought leader in building the capacity of regional intermediaries to drive equitable, inclusive post-COVID economic and workforce growth: •BHEF secured a planning grant to assess the suitability of regions for multi-year Strada investments in COVID-response inclusive growth initiatives. •Proposed and assessed 15 regions—including BHEF member-led BRT Workforce Partnership Initiative sites--from which the Strada team selected seven for in- depth research and identified 10 as possible substitutions (one such substitution was recommended and accepted—Ft. Collins in place of Detroit). •Semifinalist cities included: Atlanta, Ft. Collins (CSU); Hartford (SBD; Quinnipiac); Houston; Milwaukee (UWM); St. Louis (Wash U; Boeing); San José (SJSU). •Conducted a mid-point briefing for Strada team leader; full team briefing on final assessments at the end of October with BHEF recommending finalist cities. •Strada team will select finalist regions and vet internally with selections finalized in 2020. •Strada team lead indicated they envisioned funding two national intermediaries, including BHEF and UNCF. •In its implementation role, BHEF would provide technical assistance to build capacity of regional intermediaries in selected regions, enabling us to maximize the impact of Strada’s investments. •Multi-year proposal planned for submission to Strada in Q2. ©2020 BHEF 4 Deploying Digital Credentials to Reskill Adults The ECMC Foundation awarded BHEF a grant to reskill under- and unemployed adults in Connecticut with BHEF member Stanley Black & Decker as lead employer. •In September 2020, the ECMC Foundation awarded BHEF a $341K grant to develop credentialed digital pathways to reskill workers displaced by COVID-19 in Connecticut. •Over an 18-month period, BHEF will partner with the New England Board of Higher Education, Connecticut Community College System, companies, government agencies, and other stakeholders in designing and launching academic pathways leading to credentials in high-demand areas. •BHEF will work closely with the Connecticut Workforce Council in aligning the pathways with growing economic sectors, particularly advanced manufacturing, health care, financial services, and technology. •This project will be included among the regional sites in BRT’s Workforce Partnership Initiative with Stanley Black & Decker in the lead and will afford opportunities for BHEF to grow its membership with participating companies and academic institutions. ©2020 BHEF 5 Responding to Innovation and National Security Talent Needs Tectonic shifts in graduate enrollment due to immigration policies and COVID has made US preeminence in training talent critical to US innovation and has put national security at risk. •BHEF can play a unique leadership role to coalesce its business and academic members around both federal policy initiatives to incentivize more U.S. STEM graduates to undertake Ph.D. programs and innovative new models for accelerated Ph.D. education in STEM and other high- demand fields. •This new focus builds on a decade of success in partnership-building and innovative, industry-aligned credential development in digital fields: certificates; concentrations; minors and majors; as well as professional science master’s programs. •Response will have resonance with Congress, White House/OSTP, NSF, NIH, DoD, ONR, National Academies, AAU as well as certain private funders. •Academic board members consulted validate that this is an important issue in which BHEF can play a unique leadership role. ©2020 BHEF 6 Diversity, Equity, and Inclusion (DEI) BHEF Board and its members—individually and collectively—have adopted DEI as a priority and taken steps to advance DEI nationally and within each organization. •BHEF first addressed its DEI agenda with a white paper released at the BHEF Summer 2019 Member Meeting, at which it conducted a roundtable discussion among members and guests. •BHEF will focus its Spring 2021 Member Meeting on DEI and will release a through leadership report with PwC at that meeting with Tim Ryan, founder of the CEO Action for Diversity and Inclusion pledge. •In the wake of the deaths of George Floyd and others, and the demonstrations which followed, BHEF adopted new polices, including: •additional PTO to volunteer for organizations addressing DEI, matching donations to these organizations, staff training and workshops on systemic racism and unconscious bias; •BHEF’s CEO will recommend to the Board that he sign the CEO Action for Diversity and Inclusion pledge. ©2020 BHEF 7 Enhancing Member Value BHEF members receive a robust member benefit portfolio with access to: •An unparalleled peer network of like-minded leaders in an organization that provides national leadership on pressing issues, catalyzes regional talent ecosystems, and fosters organic collaborations on proposals and other initiatives. •Semi-annual member meetings that provide new insights and networking opportunities. •Exclusive market intelligence delivered through BHEF publications and monthly insights. •Tailored Analysis.Members can access Emsi analytics with integrated data on education, traditional labor market information, job postings, and professional profiles. Emsi analytics offers unique insights on the relationship between jobs and skills, providing more nuanced and contextualized market intelligence. •BHEF Staff Expertise. Staff are available to members for: oSpeaking to students, faculty, employees, and executives on an array of topics, such as the future of work. They are uniquely positioned to provide insights on the relationship between education and industry. Upcoming conversations include Virginia Tech and Stanley Black & Decker TechStars. oServing on advisory and review panels for universities and business, such as Ellucian’s PATH Campaign and Scholarship Fund. oFacilitating conversations between business subject matter experts and higher education faculty to design and launch industry-aligned credentials. oProducing timely webinars and panels on member-driven topics. ©2020 BHEF 8 BHEF Communications BHEF released publications focused on the Workforce Partnership Initiative and increased its LinkedIn presence with testimonial videos. Increasing Workforce Skills and Diversity: A Guide for Leveraging Multicompany Partnerships This report offers a playbook for developing multicompany partnerships with higher education. Based on the early successes of the Workforce Partnership Initiative, it offers business leaders and their staff insights and practical steps in four phases: Laying the Groundwork; Partnering with Peer Employers; Engaging Higher Education; and Implementing the Program. Workforce Partnership Initiative: 2020 Insights Guide This guide identified insights that have influenced the speed and impact of Workforce Partnership Initiative projects, and it synthesized the results and achievements from each of the nine sites. The insights are followed by site summaries, detailing the strategic partnerships that lead to new and revised curricula, work-based learning experiences, and industry- recognized credentials. BHEF Testimonial Videos With the help of its PR firm, BHEF created a number of videos for social media and member-recruitment materials, including testimonial videos from BHEF members. ©2020 BHEF 9 Ensuring BHEF’s FY21 Financial Stability BHEF reduced non-essential activities, accessed the CARES Act, and used fundraising momentum to pursue new revenue. •Awarded a $341K grant from the ECMC Foundation to develop digital pathways to upskill COVID-impacted adults in Hartford—a Workforce Partnership Initiative site—and other parts of Connecticut. •Seeking to supplement its multi-year grant from the JPMorgan Chase Foundation or a funding partner to support additional regional projects for the Workforce Partnership Initiative, e.g., CT (Q2). •Shift BHEF’s fundraising strategy to mitigate the effects of the pandemic on under- and unemployed adults and build new revenue streams such as offering fee-for-service programming and entering into strategic partnerships with aligned organizations with access to additional funding sources. Q4Q3Q2Q1 Strada Education Network—Support for Strada’s Equity Cities Network NY City Workforce Fund;Carrol and Milton Petrie Foundation; Alfred P. Sloan Foundation; Abell Foundation Lumina Foundation; James Irvine Foundation; Gordon and Betty Moore Foundation; W.M. Keck Foundation FY21 Fundraising targets by quarter include: ©2020 BHEF 10 Spring 2021 Member Meeting Monday, March 29, 2021 12:00 p.m.Welcome and Opening Remarks •Mike King, BHEF Vice Chair 12:05 p.m.Keynote and CEO Roundtable on Implementing the CEO Action Pledge BHEF will ask Tim Ryan to open the meeting with a presentation on the PWC Report and CEO Action Pledge. We will delve deeper into the issue of corporate social responsibility in diversity, equity, inclusion, and belonging (DEIB), hearing from business executives across an array of industries. CEOs will speak about their personal visions and corporate commitments, why they made them, and what changes, if any, they have seen already. Member CEOs will then be led into a facilitated discussion on their commitment to DEIB. Members will have the opportunity to ask questions and learn how they can incorporate different strategies into their respective businesses/institutions. We will explore what has and has not worked from those actively engaged in the process. Potential Moderator Potential Speakers Roger Ferguson, CEO, TIAA •MellodyHobson, co-CEO and President, Ariel Investments, LLC •Kenneth Lin, CEO, Credit Karma •Eric Kelly, chairman and CEO, Overland Tandberg •Tim Ryan, US chairman and senior partner, PwC Continued on next slide ©2020 BHEF 11 Spring 2021 Member Meeting 12:55 p.m. Putting Commitment into Practice We will start with a roundtable discussion led by a DEIB expert to engage members in best and worst practices for DEIB initiatives, including higher education’s role in creating an environment that nurtures these values in their students. This sessionwill look at how higher education can lead in implementing successful career pathways and community and business partnerships to benefit socially and economically disadvantaged minority students. We will discuss how, specifically, learning institutions can advance DEIB in conjunction with business and government (ex. through research, training programs, etc.). Potential Moderator Potential Speakers •Rashad Robinson, president, Color of Change •Michelle Kim, CEO and co- founder, Vision Awaken •Irma Becerra, president, Marymount University •Maria Martinez, EVP and chief customer experience officer, Cisco •Adela de la Torre,president, San Diego State University ©2020 BHEF 12 1:50 p.m.Closing Remarks •Mike King, BHEF Vice Chair 2:00 p.m. Adjourn Tab 3 – Membership Report BHEF Membership Committee Report, October 29, 2020 1 MEMBERSHIP COMMITTEE REPORT October 29, 2020 I. DASHBOARD Date Total Corporate Academic Government Emeritus Oct 2020 48 19 25 1 3 Jun 2020 51 21 27 0 3 Feb 2020 50 21 26 0 3 Oct 2019 55 23 29 0 3 II. FY20 REVENUE AS OF OCTOBER 7, 2020 A FY20 revenue target $2,100,000 B FY20 year-end projected (A-H) 1,800,000 C Invoiced 1,975,000 D Pending/Off-schedule invoices $0 E Booked 1 $1,575,000 F Outstanding 2 $50,000 G Non-renewals (Q4) ($ 75,000) H Non-renewals (FY20 overall) ($300,000) I Revised expected (D+E+F-G) $1,650,000 J FY20 year-end delta $ to projected (I-B) ($150,000) 1 In addition to FY20 dues, Boeing paid its outstanding FY19 dues and committed to FY21. In lieu of FY20 dues, ACE credited $11,517 (one month’s rent) on September 1. 2 Bloomberg. III. FY20 Q4 NON-RENEWALS • Qualcomm: Anthony Schwarz, senior vice president, Engineering • Tufts University: Anthony Monaco, president BHEF Membership Committee Report, October 29, 2020 2 IV. FY21 Q1 NEW MEMBERS • GlobalFoundries: Tom Caulfield, CEO • Office of Naval Research: RADM Lorin Selby, chief of Naval Research • San Diego State University: Adela de la Torre, president • Union College: David Harris, president V. FY21 REVENUE AS OF OCTOBER 14, 2020 A FY21 revenue target $2,000,000 B FY21 projected revenue 1,875,000 C Invoiced 3 1,345,000 D Pending/Off-schedule invoices $450,000 E Booked $325,000 F Outstanding $970,000 G Non-renewals (Q1) 4, 5 ($ 125,000) H Revised expected (D+E+F-G) $1,620,000 I Anticipated $ to projected (H-B) $255,000 J Booked $ to target (B-E) $1,550,000 3 ACE has yet to be invoiced for FY21; but in-kind support, such as rent credit, will be requested in lieu of dues. If this happens, Line Item C will be adjusted. 4 California State University System, KPMG, and PepsiCo. 5 California State University System is introducing BHEF to three CSU campuses; one, San Diego State University is a new BHEF member. VI. FY21 NON-RENEWALS • California State University System: Tim White, chancellor • KPMG: Lynne Doughtie, chairman and CEO • PepsiCo: Vikram Somaya, chief data officer VII. FY21 TRANSITIONS • AAU: Barbara R. Snyder, president (fall 2020) • Case Western Reserve University: Scott Cowen, interim president • Guardian Life Insurance Company: Deanna Mulligan (retiring 2021) • LMI: Doug Wagoner, CEO (effective August 3) FY21 PROSPECTS COUNT SOURCE PROSPECT NAME COMPANY/INSTITUTION TITLE STATUS STAGE 1: Prospect identification 1 BHEF Dwayne Nellis Ohio University President Call March 18. Understands needs corporate partner and will regroup with BHEF post COVID ‐ 19 1 BHEF Gregory Washington George Mason Universit y President Determining best approach 1 BHEF Clarence Armbriste r Johnson C. Smith University President Connecting through Duke Foundation 1 BHEF Ángel Cabrera Georgia Tech President Working through connection at Univ of GA System 1 BHEF/Roach TBD Microsoft TBD BHEF Programs speaking with Lucas Hernandez, director of US Corp Partnerships; coordinating follow up 1 BHEF TBD SAS TBD Membership on hold for FY20. Keeping SAS engaged through programmatic work 1 BHEF/Armstrong TBD Deloitte TBD Executives identified; requesting intro through internal connection Allan Ludgate 1 BHEF/SBD Chris Calio Pratt & Whitney President Engage through SBD/Connecticut work 1 BHEF/SBD John Ciulla Webster Ban k President and CEO Engage through SBD/Connecticut work 1 BHEF/SBD Kevin Graney General Dynamics Electric Boat President Engage through SBD/Connecticut work 1 BHEF/SBD Darrell Harvey The Ashforth Company Co ‐ CEO and Principal Engage through SBD/Connecticut work 1 BHEF/SBD Peter Hoecklin Trumpf Laser USA President and CEO Engage through SBD/Connecticut work 1 BHEF/Papazian John Sobrato Philanthropist Philanthropist He will check out BHEF.com; Discussing options to engage philanthropists in BHEF 1 Armstrong Jay Akridge Purdue Provost and EVP, Academic Affairs Likely successor; will engage when time comes 1 Papazian TBD Nvidia TBD Determining best approach and prospec t 1 Papazian TBD Pixar TBD Determining best approach and prospec t 16 STAGE 2: Vetting and outreach materials 1 BHEF/Olian Marc Lautenbach Pitney Bowes President and CEO Replication Guide and email copy provided 1 Armstrong Doug Baker, Jr. Ecolab Chairman and CEO Replication Guide and email copy provided 1 Armstrong Lloyd Dean Dignity Health Co ‐ CEO Replication Guide and email copy provided 1 Armstrong George Lee II Goldman Sachs CIO, Investment Banking Group Replication Guide and email copy provided 1 Armstrong Doug Merritt Splunk President and CEO Replication Guide and email copy provided 1 Armstrong Dan Phillips Hulu CTO Replication Guide and email copy provided 1 Armstrong TBD Symantec TBD Replication Guide and email copy provided 1 Armstrong George Hearst III Philanthropist Philanthropist Discussing options to engage philanthropists in BHEF 1 Armstrong Havidán Rodríguez SUNY ‐ Albany President Engage with Rodríguez to connect with Hearst 1 Papazian Phillip Mazzie EY Managing Director, SF Office Replication Guide and email copy provided 1 Roach Mike Harrington EY Head of Public Sector Practice Replication Guide and email copy provided BHEF Board of Directors Meeting, FY21, Q1, October 29, 2020 CONFIDENTIAL: NOT FOR DISTRIBUTION As of 10/21/2020 FY21 PROSPECTS 1 STAGE 3: Member speaks with prospect 1 BHEF/SBD Christopher Swift The Hartford Chairman and CEO Engage through SBD/Connecticut work 1 BHEF/Weinberg Charles Lowery Prudential Chairman and CEO Reconnect with Peter RE next step s 1 BHEF/Weinberg Alan Schnitze r Travelers Chairman and CEO Reconnect with Peter RE next step s 1 BHEF/White Joseph Castro CSU ‐ Fresno President Tim White will make introduction 1 BHEF/White Fram Virjee CSU ‐ Fullerton President Tim White will make introduction 1 BHEF/White Jane Close Conoley CSU ‐ Long Beach President Tim White will make introduction 1 Armstrong/Papazian Chuck Robbins Cisco Systems Chairman and CEO Cisco new Silicon Valley site lead ‐‐ W21 speaker? 1 King/Papazian Eric Yuan Zoom CEO Mike will connect BHEF with Anne Keehn, Zoom Education lead who would champion BHEF with Yuan. 1 Martin Wendy Wintersteen Iowa State Universit y President Awaiting response to Marty's introduction 1 Martin/Armstrong/ Papazian TBD Wells Fargo TBD Determining best approach 1 Papazian Allen Blue LinkedIn Co ‐ founder and VP, Product Management Determining next steps ‐‐ webinar or March 2021 speaker 1 Papazian Tim Cook Apple CEO Determining best approach 1 Papazian Pat Gelsinger VMware CEO Determining best approach 1 Snyder Scott Cohen Case Western Reserve Universit y Interim President Requesting introduction to Cowen 15 BHEF/Katehi Michael Young Texas A&M Univ (College Station) President Requesting introduction to Young 1 STAGE 4: Prospect speaks with BHEF 1 BHEF Lou Von Thaer Battelle President and CEO Opportunity to re ‐ engage through OSU PhD upskilling 1 BHEF Blake Moret Rockwell Automation Chairman and CEO Connect through SBD 1 BHEF Michael Drake Univ of CA System President Follow up with Tim White once CSU intros in play 1 BHEF Kristina Johnson OSU President Working with OSU internal champion 1 BHEF/NEBHE/Olian Mohamed Ali IDG CEO Discussion agenda sent for potential November call 1 Armstrong Meredith Schmidt Salesforce EVP, CEO Essentials SMB Awaiting membership decision 1 Armstrong Ronnie Green University of Nebraska President Scheduling call 1 Gee/Olian Scott Cowen Case Western Reserve University Interim President Gordon reached out w/c 10/12 with link to BHEF Case report 9 Papazian Eric Kelly Overland Tandberg Chairman and CEO Coordinating call/Possible W21 speaker 1 STAGE 5: Prospect F2F with BHEF 1 BHEF Heather Wilson UTEP President Follow up with replication/insights guides 1 BHEF/SBD/Olian Ravi Kumar Infosys President and Deputy COO Engage through Strada work in CT 1 BHEF/Woodson Harold Martin NC A&T University Chancellor Call with Erin Hart on 10/26 4 Papazian Joyce McConnell Colorado State Universit y President Zoom pending 1 STAGE 6: BHEF welcomes new member 1 BHEF Adela de la Torre San Diego State Universit y President Coordinating engagement call with her office 0 STAGE 7: New members registered for Mar21 BHEF Board of Directors Meeting, FY21, Q1, October 29, 2020 CONFIDENTIAL: NOT FOR DISTRIBUTION As of 10/21/2020 Tab 4 – Finance and Audit Report BHEF Board of Directors Meeting, FY21, Q1, October 29, 2020 To: BHEF Board of Directors From: Brian Fitzgerald Date: October 29, 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 September 30, 2020  BHEF Cash Position Update  Investment Fund Report  FY2020 IRS Form 990 Filing Update on FY20 Forecast and Financials through September 30, 2020 1 As of September 30, 2020, the date of the last financials available, BHEF received $3,155,558 in revenue, which included $1,600,000 in membership dues, and $1,555,558 in grants and donations. Expenses on September 30, 2020 totaled $3,217,400. Overall, BHEF ended FY20 with a ($61,842) in operations and a net change in total assets of $668,460. 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 reflected on the financial statements as a loan and not included in the revenue numbers reflected above, BHEF is prepared to submit the documents needed to convert that loan into a forgivable grant once the bank opens the loan forgiveness portal. BHEF has expended the funds in accordance with the SBA guidelines. Once approved, those funds will be reallocated to revenue. Cash Flow Update As of September 30, 2020, BHEF’s operating cash balance in SunTrust Bank was $1,015,914.84 and $54,086.21 in Sandy Springs Bank savings account. These balances do not include the $100,000 deposit from Strada which was deposited on October 8, 2020. 1 Unaudited cash-basis statements from BHEF’s accountants. BHEF Board of Directors Meeting, FY21, Q1, October 29, 2020 Investment Fund Report The value of the BHEF Investment Fund as of June 30, 2020 was $1,062,431. This represents an increase of six percent compared to March 31, 2020 when funds were $1,000,949. BHEF’s investment portfolio included $1,062,431in Vanguard self-managed LifeStrategy Income Fund, with 80 percent of the managed portfolio in bonds and 20 percent in stocks. FY20 Audit and IRS Form 990 Filing BHEF’s auditors, Rubino & Company Chartered, will begin the FY20 audit and Form 990 on December 7, 2020. It is expected that the audit of the financial statements and A-133 will be complete by mid-February 2021. It is also expected that the firm will complete BHEF’s form 990 and file by March 15, 2021. The Board will be provided drafts of those documents once complete. ATTACHMENT A Business-Higher Education Forum FY20 Financials at September 30, 2020 UNAUDITED Approved FY2020 FY2020 Actuals At 9-30-2020 Variences Operating Net Assets Unrestricted Revenue: 200 Membership - Revenue2,100,000$ 1,600,000$ (500,000)$ 300 Conferences -Revenue-$ -$ -$ 510 Market Intelligence - Revenue-$ -$ -$ 520 JPMC - Revenue600,000$ -$ (600,000)$ 521 WPI - Revenue-$ 100,000$ 100,000$ 525 Google - Revenue122,500$ -$ (122,500)$ 530 ECMC - Revenue-$ 251,492$ 251,492$ 535 Strada - Revenue-$ 100,000$ 100,000$ 555 Texas A&M - Revenue-$ 670$ 670$ HEWI Revenue:508,029$ 1,103,396$ 595,367$ NSF C-Accel - $1,000,000 NSF Year V - $138,513 NSF Supplemental - $10,431 ------------------------------------------------ TOTAL OPERATING NET ASSETS3,330,529$ 3,155,558$ (174,971)$ ----------------------------------------------------------------------------------------------------- Expenses 110 Administration - Expenses584,786$ 626,991$ (42,205)$ 200 Membership - Expenses345,218$ 262,765$ 82,453$ 250 Grants - Expenses70,038$ 139,411$ (69,373)$ 300 Conferences - Expenses329,863$ 161,939$ 167,924$ 500 Communications - Expenses268,577$ 175,785$ 92,792$ 510 Market Intelligence - Expenses130,000$ -$ 130,000$ 520 JPMC - Expenses588,000$ 367,813$ 220,187$ 521 WPI - Expenses70,000$ 48,327$ 21,673$ 525 Google - Expenses284,500$ 85,108$ 199,392$ 530 - ECMC - Expenses-$ 12,942$ (12,942)$ 535 Strada - Expenses-$ 28,166$ (28,166)$ 555 Texas A&M - Expenses-$ 670$ (670)$ HEWI Summary - Expenses612,742$ 1,307,483$ (694,741)$ ------------------------------------------------ Total Expenses3,283,723$ 3,217,400$ 66,323$ ----------------------------------------------------------------------------------------------------- NET CHANGE IN NET OPERATING ASSETS46,806$ (61,842)$ (108,648)$ ----------------------------------------------------------------------------------------------------- Non-Operating Net Assets Revenue: 900 BHEF Investment Fund - Revenue40,000$ 45,829$ 5,829$ Total Revenue40,000$ 45,829$ Expenses: 900 BHEF Investment Fund - Expenses-$ 2,325$ (2,325)$ Total Expenses-$ 2,325$ ---------------------------------------------------------------------------- Net Change in Non-Operating Net Assets40,000$ 43,504$ 3,504$ ----------------------------------------------------------------------------------------------------- NET CHANGE IN NET ASSETS86,806$ (18,338)$ 69,827$ ================================================================================= ================================================================================ Beginning Balance 2020 Additions 2020 Subtractions Ending Balance at 9- 30-2020 Temporarily Restricted Net Assets877,731$ 451,492$ (642,425)$ 686,798$ -$ -$ -$ -$ 520-JPMC569,327$ -$ (367,813)$ 201,514$ 521-WPI/Northrup79,585$ 100,000$ (48,327)$ 131,258$ 525-Google149,583$ -$ (85,108)$ 64,475$ 530-ECMC-$ 251,492$ (12,942)$ 238,550$ 535-STRADA-$ 100,000$ (48,999)$ 51,001$ 782-CIT II Smart Cities79,236$ -$ (79,236)$ -$ ================================================================================ BALANCE OF TEMPORARY RESTRICTED877,731$ 451,492$ (642,425)$ 686,798$ TOTAL NET CHANGE IN NET ASSETS668,460$ ================================================================================