BHEF FY21, Q2 Board Of Directors Meeting Materials

BHEF Board of Directors Meeting, FY21, Q2, March 5, 2021 BHEF Board of Directors Meeting March 5, 2021 12 :00 p.m. – 2:00 p.m. EST Please join the video conference using this link . Meeting ID: 981 7718 2802 Password: 939203 You may also dial in using your phone. (See next page) AGENDA 12:00 p.m. Business Meeting 1.Welcome and Overview – Mike King 2.Approval of the FY21 Q1, Meeting 2 Board of Directors Meeting Minutes – Mike Ki ng (Tab 1) 3.Chief Executive Officer’s Report – Brian Fitzgerald (Tab 2) 4.Membership Committee Report – Jeff Armstrong (Tab 3) 5.Finance and Audit Report – Brian Fitzgerald (Tab 4) 6.BHEF Business Model Development Ad Hoc Committee Presentation – Jennifer Thornton (Tab 5) 7.Closing Remarks – Mike King 1:30 p.m. Executive Session BHEF Board of Directors Meeting, FY21, Q2, March 5, 2021 BHEF Board of Directors Meeting Zoom Board Meeting Details March 5, 2021 Topic: BHEF Board of Directors Meeting Time: Mar 5, 2021 12:00 PM Eastern Time (US and Canada) Join Zoom Meeting https://zoom.us/j/98177182802?pwd=MFpYWnQxR1AwbkI1dHFrQnlGditNdz09 Meeting ID: 981 7718 2802 Passcode: 939203 One tap mobile +13126266799,,98177182802#,,,,,,0#,,939203# US (Chicago) +16465588656,,98177182802#,,,,,,0#,,939203# 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: 981 7718 2802 Passcode: 939203 Find your local number: https://zoom.us/u/axqktbccQ Tab 1 – FY21 Q1, Meeting 2 Board of Directors Meeting Minutes BHEF FY2021, Q1, Meeting 2 - December 11 Board of Directors Meeting Minutes | 1 BHEF Board of Directors Meeting December 11, 2020 12:00 P.M. EST Board of Directors Meeting Minutes Attendees Board Members: Joseph Aoun, Jack DeGioia, Nariman Farvardin, Brian Fitzgerald (ex officio), Laura Ipsen, Mike King, Marty Martin, Brian Napack, Ryan Oakes, Judy Olian, Mary Papazian, Brian Roach, Tim Sands, and Randy Woodson. BHEF Staff: Suzanne Amoonarquah, Steve Barkanic, Stephanie Blochinger, Stacey Brown, Janet Chen, Ursula Gross, Amanda Pumphrey, Lauryn Robinson, Jennifer Thornton, and Danielle Troyan. Welcome and Overview Board Chair Mike King opened the meeting at 12:00 p.m. He welcomed members and provided an overview of the agenda focused on productizing BHEF market intelligence and skills to create an alternative revenue stream and define BHEF's core value proposition. Through the Ad Hoc Committee, individuals from member organizations worked with BHEF s taff to develop a presentation to obtain the board's input on the direction of the Ad Hoc Committee, emphasizing where the board saw BHEF's potential, missed opportunities, and ways BHEF can improve for the benefit of its members and the global community. Approval of the FY21 Q1 Board of Directors Meeting Minutes King asked for a motion to approve the FY21 Q1 Board of Directors Meeting Minutes. The motion was made and seconded. The minutes were unanimously approved. Chief Executive Officer's Report During the preceding board meeting on October 29, 2020, Brian Fitzgerald presented the below framework for BHEF's response to the COVID-19 crisis: •Enhance. BHEF's national leadership role in deploying digital-reskilling solutions that develop robust ecosystems by capturing BHEF's proven methods in more polished publications. •Expand. BHEF as a national thought leader in diversity, equity, and inclusion. •Use. BHEF's national leadership in talent development. BHEF FY2021, Q1, Meeting 2 - December 11 Board of Directors Meeting Minutes | 2 • Partner. Partner with Ellucian to lead a national coalition of companies providing COVID aid to undergraduates in need. • Communicate. Continue to build new external and member communications capabilities. • Strengthen. Strengthen member value by observing the massive shift to online-learning and providing members with market intelligence, strategies, and tools to lead the post-academic recovery. • Shift. BHEF's fundraising strategy to mitigate the effects of the pandemic on under and unemployed adults. FY20 COVID Leadership Success Fitzgerald reiterated that continued grant funding positioned BHEF as a national thought leader in talent ecosystem development: • BHEF served as a member of the Strada COVID Impact Coalition, in which the coalition released its Big Bets made up of 6 projects to address problems presented by COVID. • Advanced a partnership with Ellucian to engage companies in a coalition providing undergraduate scholarships to mitigate the financial impact of the COVID crisis. Fitzgerald invited Laura Ipsen to provide updates to the board on the Ellucian PATH program. Ipsen reported that the program already utilized around $500,000 of the $1M raised, allowing a foundation to attract other funders and investors outside of Ellucian. Ellucian prepared to distribute the remaining $500,000 in 2021 and raised an additional $100,000 for the program. Initial targets for receiving the PATH funds were community colleges. One hundred and sixty-six applications were reviewed by an independent partner and review board. Ipsen planned to share further developments on testimonials from grant recipients to the board at a later time. Ellucian hopes to expand beyond the community colleges into all higher education institutions where there is a need starting within the United States and moving globally with the support of BHEF. Supporting Strada's Equity Cities Network At the October board meeting, Fitzgerald shared the vetting process for Strada's Equity Cities Network (ECN) sites. BHEF submitted the final deliverable on November 13, showcasing a rigorous research risk assessment profile for each of the seven proposed ECN sites and integrating employment and workforce interviews of more than seventy individuals. A vital component of the final deliverable, a risk assessment dashboard, provided Strada with a multi-data sourced integrated graphic that visually depicted each of the proposed ECN regions' investment potential. Fitzgerald walked the board through the site assessment dashboard as an example of the kind of work BHEF can do for its members through its access to the Emsi analytics platform. BHEF presented the board with the St. Louis portion of the ECN labor market data analysis, providing a visual representation of the work BHEF was prepared to embark on for its members. Fitzgerald further explained the proposed investment strategy for Strada through ECN and long-term funding needs for the project. BHEF FY2021, Q1, Meeting 2 - December 11 Board of Directors Meeting Minutes | 3 Various Board members began a dialogue around BHEF's regional work and expressed a need to ensure that BHEF focuses on working with outside partners and providing its members with ROI. Board members specifically discussed building pathways from community colleges to four-year institutions and incentivizing students to continue into the four-year degree while also engaging those institutions to facilitate a greater outreach and continuity of the associates into the more extensive degree programs. Fitzgerald emphasized the necessity of Emsi and others' analytics to drive change across the nation and fill gaps along with the community college–four-year institution and employment pathways starting in high school. Additionally, members requested that BHEF simultaneously focus on providing community college graduates with bridges from employer to four-year degrees in underserved communities, providing increased senior leadership diversity. Deploying Digital Credentials to Reskill Adults BHEF submitted a multi-state proposal to Strada, its soft launch being the CT digital credentials project with community colleges and universities. However, BHEF did not secure the funding, and the COVID crisis forced a switch in priorities for its funders. BHEF made additional attempts; however, ECMC's internal policies placed limits on funding to community colleges. BHEF intended to create digital credentials within pathways that gave adult learners in community colleges opportunities for work and continued education and noted interest from several companies in this area. Even though funding attempts failed, BHEF considered this issue essential and beneficial for its members and member communities. Steve Barkanic added that through the ECMC grant project in Connecticut, BHEF worked closely with the Connecticut College of Technology, which itself is a conglomerate that cut across 23 in- state institutions, including twelve community colleges. Fitzgerald shared the ECN Hartford Snapshot, reviewing the varying data analysis provided to Strada that helped inform the ECMC project. Armstrong asked what the job makeup of degrees required for the jobs available would look like and Fitzgerald walked him through how the Emsi data allowed BHEF to look at how specific degrees cuts across industries. Ryan Oakes, a participant in the ECMC project, shared that the data BHEF gathered strikingly presented how heavily equity comes into play with a lack of opportunities and job displacements by tech. Oakes described how Accenture's strategic investments in different cities countrywide are part of a larger push towards equity and investment issues in minority areas. King commended BHEF's work with Strada and its potential for an all-member benefit through future funding and grant partnerships and draw for recruiting new members. NSF Spectrum Innovation Initiative Texas A&M University (TAMU) participated in an NSF planning grant on wireless spectrum innovation. TAMU provided BHEF with a $75,000 sub-award to lead the project’s education and workforce area. The NSF grant's end goal coalesced into a single, $25M award over five years for creating a spectrum center. Fitzgerald likened TAMU's work to a previous project with NBCUniversal and Steven's Institute of Technology. BHEF led outreach to experts, potential partners, and membership prospects. BHEF FY2021, Q1, Meeting 2 - December 11 Board of Directors Meeting Minutes | 4 Diversity, Equity, and Inclusion BHEF partnered with PwC in a working group developing a thought leadership report. The report's anticipated release date is the spring member meeting on March 29, where BHEF will call on its members to focus on DEI. Enhancing Member Value Fitzgerald laid out BHEF's plans to present BHEF members with a robust member benefits portfolio to include: •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 for members; •exclusive market intelligence delivered through BHEF publications and monthly insights; •tailored analysis - Members can access Emsi analytics with integrated data on education, customary 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; and •BHEF staff expertise. Staff is available to members for: ospeaking to students, facul ty, employees, and executives on various topics, such as the future of work. Recent 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; and oproducing timely webinars and panels on member-driven topics. Fitzgerald noted BHEF's engagement with six pairs of business and higher education member prospects and hoped to offset member losses due to COVID in 2021. BHEF Communications & Ensuring BHEF's FY21 Financial Stability Fitzgerald pointed the board to review the provided slides on the communications and the finance and audit report on their own time. Spring 2021 Member Meeting CEOs Tim Ryan, PwC, and Eric Kelly, OverlandTandberg, are confirmed participants for session one of the spring 2021 member meeting. Fitzgerald asked the board to help recruit more CEOs for the session one roundtable and reported presidents Irma Becerra, Marymount University, and Adela de la Torre, San Diego State Uni versity are confirmed panelists for session two. BHEF FY2021, Q1, Meeting 2 - December 11 Board of Directors Meeting Minutes | 5 The board reaffirmed its commitment to DEI and can help convey a sense of urgency in taking action to support DEI. Business Model Development Ad Hoc Committee Member Discussion Jennifer Thornton, Vice President of Programs, provided the objective, timeline, and members of the Business Model Development Ad Hoc Committee and shared her appreciation for having the opportunity to work with such a thoughtful team. Thornton facilitated a question and answer session to provide input to the ad hoc committee on the most critical areas for elevating BHEF's impact. Objective: To create a framework and strategies that maximizes value to our members, our capabilities, and thought leadership and strengthens our financial position and brand recognition. What is BHEF's unique value proposition? Does COVID influence it? Responses focused on: •thought leadership; •business-higher education relationships, particularly the ability to bring together leaders from two interdependent sectors to identify common issues bridging the gap of understanding of need across sectors (e.g., identify the need to build a curriculum in data analytics); •scalability due to BHEF's regional and national footprints; •a proven, repeatable methodology to build data-driven pathways identifying skills gaps to develop credentials that lead to employment; and •analytics related to regional workforce and employer needs. The COVID-19 pandemic enhanced BHEF value because of the increased demand for digital skills and the forum's ability to anticipate, identify, and provide a scalable and repeatable methodology for implementing efficient solutions in a digital space at the intersection of business and academia. What is most important for increasing BHEF's real and perceived value? Responses focused on: •Strategic Marketing Strategies. Improved strategies to market BHEF’s proof of concepts as a reference point for BHEF impact interventions both regionally and nationally; •Brand Recognition. Increasing brand recognition through the development of a signature product, such as a "State of the X" through: oProject Umbrella. Clustering all of BHEF's projects under one umbrella having an impact on both business and higher education; BHEF FY2021, Q1, Meeting 2 - December 11 Board of Directors Meeting Minutes | 6 o Strategic Projects. Creating a strategic selection process for future projects with a focus on compelling economic business pursuits; o Proof of Concept Initiatives. Investing in visible 'proof of concept' initiatives and ensure these pilots get high PR returns, ensuring member ROI and overall meaningful impact; o Strategic Partnerships. Productizing the strategic partnership methodology; o Regional and National Intersectionality. Elevating the intersection between regional specifics and national strategies; o DEI. Incorporating DEI into the BHEF brand to strengthen its core values and practical reasoning for business and higher education with adaptive and creative support on preparing learners with the necessary tools for a complex and inclusive work environment; o Adaptive Guidance. Bringing together BHEF's work on digital skilling to respond to the shift to virtual and hybrid work environments. What are the capabilities BHEF should maintain or develop? Responses focused on: • Business-Higher Education Partnerships. Maintaining the development of business- higher education partnerships; • Membership Development. Increasing capabilities for maintaining and improving BHEF's membership development processes; • National Scaling. Reaching scale through gainful national memberships and projects; • Collective Value Proposition. Developing a crisper way to articulate BHEF's mission and collective value proposition to generate a stronger BHEF brand, particularly for attracting business prospects – higher education achieves its mission if there are more business elements; • Attracting Senior Business Leadership. Providing the business community with thought leadership and education on labor market development and education pathways for its employees will help these leaders develop the lexicon to make the business-higher education ecosystem function better. Closing Remarks The meeting went into the executive session at 1:30 PM. These minutes were certified on: __________________, 2020. BHEF FY2021, Q1, Meeting 2 - December 11 Board of Directors Meeting Minutes | 7 By: Brian K. Fitzgerald BHEF Secretary __________________________________ Tab 2 – Chief Executive Officer’s Report Rising to the Challenge: Responding to the COVID-19 Crisis through Diversity and Inclusion Solutions CEO Report BHEF Board of Directors Meeting March 5, 2021 Rising to the COVID-19 Challenge Strengthen BHEF’s brand as a leader in digital upskilling/reskilling by partnering with companies and funders to deploy digital credentials in response to COVID-19. Enhance BHEF’s position as a leader in deploying digital-reskilling solutions that develop robust ecosystems by capturing BHEF’s proven methods in publications that 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 COVID-19 recovery and emerging innovation and national security talent needs. Use Partner with PwC and other members to lead a national coalition of companies and universities dedicated to increasing diversity, equity, and inclusion. 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 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 form strategic partnerships with aligned organizations with access to additional funding sources to advance BHEF’s vision. Shift ©2020 BHEF 2 FY20 COVID-19 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 to promote equitable and inclusive economic and workforce growth. BHEF submitted a proposal to support the final stage of strategy development in launch of the initial region, St. Louis. •Secured COVID-19 response grant from the ECMC Foundation for digital- reskilling credentials replication in New England with the New England Board of Higher Education and other partners. •Part of a Texas A&M team drafting a proposal for the $25M NSF National Center on Wireless Spectrum Innovation and its Education and Workforce Institute. •Published a BHEF-Business Roundtable Workforce Partnership Initiative replication guide and five case studies to enable business and higher education to proactively address surge in demand for reskilling in the wake of the pandemic. Secured short-term funding from JPMorgan Chase Foundation and seeking long-term support from funders. ©2020 BHEF 3 Supporting Strada’s Equity Cities Network Advancing BHEF’s role as a thought leader in building the capacity of regional intermediaries to drive equitable, inclusive post-COVID-19 economic and workforce growth. •With the support of a planning grant from Strada, BHEF created an analytical model that generates exhaustive workforce, educational attainment gap, and labor market analyses that identifies structural inequalities and potential high-growth sectors with entry-level, living-wage jobs in regions. •BHEF used these analyses to rank the suitability of regions for multi-year Strada investments in pandemic-response inclusive growth initiatives through its Equity Cities Network (ECN). •BHEF supported Strada in vetting of St. Louis as the initial ECN site and Strada is moving ahead on a capacity-building grant to a new business intermediary. •BHEF has submitted a $450K one-year grant to support Strada and Greater St. Louis, Inc. Funding expected NLT early Q2. 4©2020 BHEF Digital Credentials to Reskill Adults and Promote Degree Attainment BHEF is executing a grant from the ECMC Foundation Career Readiness unit to reskill under-and unemployed adults in Connecticut with BHEF member Stanley Black & Decker as lead employer. Approaching ECMC for a community college-university transfer pathway grant. •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. •During the 18-month grant, BHEF is partnering with the Stanley Black & Decker, the New England Board of Higher Education (NEBHE), Connecticut Community College System, companies, government agencies, and other stakeholders in designing and launching academic pathways leading to credentials in high-demand areas. •BHEF is working closely with the Connecticut State Colleges and Universities’ College of Technology to develop digital credentials delivered by community colleges and align the pathways with growing economic sectors, particularly advanced manufacturing, healthcare, financial services, and technology. •BHEF will expand the project and engage universities through NEBHE’s Teagle Foundation grant in Connecticut focused on transfers to private institutions. ©2020 BHEF 5 NSF Spectrum Innovation Initiative Former BHEF member Linda Katehi, dean of engineering at Texas A&M, invited BHEF to partner in a planning grant for the National Center for Wireless Spectrum Research last spring. •BHEF received a $75,000 subaward to co-lead the Education and Workforce Working Group to better understand Spectrum-related careers and skill needs and to write the education and workforce section of the implementation proposal. •BHEF led outreach to experts and potential partners including BHEF members GlobalFoundries, Stanley Black & Decker, and Howard University, as well as prospective members NC A&T, and Morgan State University. •Proposal for center development is due to NSF NLT April 30. One $25M grant is available. •Proposal development is underway. If funded, BHEF will play a leading role in in the Education and Workforce Institute, conducting workforce analysis, engaging Spectrum employers around credentials and hybrid work/learning models, and mapping industry skill needs against curriculum in various disciplines and at different educational levels. ©2020 BHEF 6 Diversity, Equity, and Inclusion (DEI) BHEF and its members—individually and collectively—have adopted DEI as a priority and taken steps to advance DEI nationally and within each organization. •BHEF is partnering with PwC on a thought leadership report on DEI. •BHEF CEO signed the CEO Action for Diversity and Inclusion pledge and BHEF has implemented key actions suggested in the pledge agreement. •BHEF will focus its Spring 2021 Member Meeting on DEI and will highlightthe joint PwC-BHEF report at that meeting with Tim Ryan, founder of the CEO Action for Diversity and Inclusion pledge. •This joint PwC-BHEF report will examine how leaders in business and higher education are equipping employees, students, and society with the skills and knowledge required to secure their future, create new pathways to enter the workforce, and promote greater diversity and inclusion in the workforce. •The report will also describe how COVID-19 has accelerated workforce trends and provide recommendations for how the business and higher education communities can collaboratively build an adaptive, inclusive, and sustainable workforce for the 21st century innovation economy. ©2020 BHEF 7 Providing Unique and Exceptional Member Value •Increasing membership and diversity: BHEF has deepened its capabilities to expand its prospect reach and build a diverse and vibrant membership base. •Expanding member benefits: BHEF is examining service options that engage members through meaningful convenings, research, and innovations that anticipate future trends and opportunities. •Gearing up for in-person member meetings: BHEF members value the serendipitous moments that can only happen at an in-person BHEF member meeting. As we prepare for 2022, we welcome your input on how to structure these gatherings to maximize member value. ©2020 BHEF 8 BHEF is positioned to welcome new members and offer services that reflect the organization’s role as the singular organization of business and higher education leaders. BHEF Communications BHEF created five case studies based on Workforce Partnership Initiative (WPI) sites. ©2020 BHEF 9 This document is part of a series of case studies on the WPI projects, which covers five of the nine partnerships: Chicago, D.C.-Maryland-Virginia, New York City, North Carolina, and the Southeast. Each initiative is tailored to its region’s unique needs and assets, and each case study offers an in-depth examination of the particular challengethe regional effort is addressing, the solutions developed, the partners involved, and the outcomes achieved. 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 $100K Strada Planning Grant and $341K grant from the ECMC Foundation to develop digital pathways to upskill pandemic-impacted adults in Hartford—a Workforce Partnership Initiative site—and other parts of Connecticut. •Seeking to supplement a multi-year grant from the JPMorgan Chase Foundation (JPMC) for the Workforce Partnership Initiative, e.g., CT (Q2). Will pursue funding from one or more JPMC funding partners to support WPI V 2.0 and additional regional projects (Q4). •Submit with Texas A&M team a five-year, $25M proposal for the National Center for Wireless Spectrum Innovation with BHEF co-leading the Center for Education and Workforce. Estimated revenue over $1.75M if successful. Q4 Q3 Q2Q1 JPMorgan Chase follow-on grant in support of WPI Strada Education Network—Support for Strada’s Equity Cities Network FY21 Fundraising targets by quarter ©2020 BHEF 10 NSF Spectrum Innovation proposal Proposal to JPMC funding partners for WPI support Spring 2021 Member Meeting Monday, March 29, 2021 12:00 p.m.Welcome and Opening Remarks Mike King, BHEF Chair 12:05 p.m.Keynote and CEO Roundtable on Implementing the CEO Action Pledge Tim Ryan will 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, and inclusion (DEI), hearing from business executives across 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 DEI. 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. Moderator Speakers Eric Kelly, chairman and CEO, Overland Tandberg •Mohamad Ali, CEO, IDG •Leanne Caret, executive vice president and CEO, Defense, Space & Security, Boeing •Tim Ryan, US chairman and senior partner, PwC Continued onnext slide ©2021 BHEF 11 Spring 2021 Member Meeting 12:55 p.m. Putting Commitment into Practice We will start with a roundtable discussion led by a DEI expert to engage members in best and worst practices for DEI initiatives, including higher education’s role in creating an environment that nurtures these values in their students. It will examine 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 DEI in conjunction with business and government (e.g., through research, training programs, etc.). Moderator Speakers Kelsey Bush,interim chief diversity officer, St. Mary’s College of Maryland •Irma Becerra, president, Marymount University •Donna Diederich, chief human resources officer, LMI •Adela de la Torre, president, San Diego State University •Magda Yrizarry, chief diversity officer and SVP, Verizon Communications ©2020 BHEF 12 1:50 p.m.Closing Remarks Mike King, BHEF Chair 2:00 p.m. Adjourn Discussion Tab 3 – Membership Report BHEF Membership Committee Report, March 5, 2021 1 MEMBERSHIP COMMITTEE REPORT March 5, 2021 I. DASHBOARD Date Total Corporate Academic Gov’t Emeritus Mar 2021 45 18 24 0 3 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. FY21 REVENUE AS OF FEBRUARY 16, 2021 A FY21 revenue target $2,000,000 B FY21 Q2 adjusted revenue target (Q1B-G) $1,780,000 C Invoiced 1 $1,570,000 D Pending/Off-schedule invoices $175,000 E Booked $875,000 F Outstanding $400,000 G Non-renewals in Q2 2 ($ 95,000) H Revised expected (D+E+F-G) $1,355,000 I Anticipated $ to projected (H-B) $425,000 J Delta $ to target (B-E) $905,000 1 Does not include ACE FY21 invoice, which may be exchanged for in-kind support, such as rent credit 2 ONR was invoiced $20k dues per contract III. FY21 Q2 NON-RENEWALS • Clemson University: Jim Clements, president • Guardian: Andrew McMahon, CEO • Office of Naval Research: RADM Lorin Selby, Chief of Naval Research BHEF Membership Committee Report, March 5, 2021 2 IV. FY21 TRANSITIONS • AAU: Barbara R. Snyder, president (fall 2020) • Case Western Reserve University: Scott Cowen, interim president • LMI: Doug Wagoner, CEO • The Ohio State University: Kristina Johnson, president Tab 4 – Finance and Audit Report BHEF Board of Directors Meeting, March 5, 2021 To: BHEF Board of Directors From: Brian Fitzgerald Date: March 5, 2021 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 FY2021 Forecast and Financials through January 31, 2021 • BHEF Cash Position Update • Investment Fund Report • FY2020 IRS Form 990 Filing Update on FY20 Forecast and Financials through January 31, 2021 1 As of January 31, 2021, the date of the last financials available, BHEF received $987,698 in revenue, which included $850,000 in membership dues, and $137,698 in grants and donations. Expenses on January 31, 2021 totaled $777,726. 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 (SBA) via SunTrust/Truist Bank in the amount of $249,800. BHEF has completed and submitted the loan forgiveness application with the SBA via SunTrust/Truist Bank and is currently awaiting final approval for full forgiveness. These funds are currently reflected on the financial statements as a loan and not included in the revenue numbers above. Once final SBA notification is received, these funds will be reallocated to revenue. Cash Position Update As of January 31, 2021, BHEF’s operating cash balance in SunTrust/Truist Bank was $1,079,489.40 and $54,095.22 in Sandy Springs Bank savings account. Investment Fund Report The value of the BHEF Investment Fund as of December 31, 2020 was $1,126,058. This represents an increase of 9 percent compared to December 31, 2019 when funds were $1,031,895. BHEF’s investment portfolio included $1,126,058 in Vanguard self-managed 1 Unaudited cash-basis statements from BHEF’s accountants. BHEF Board of Directors Meeting, March 5, 2021 LifeStrategy Income Fund, with 80 percent of the managed portfolio in bonds and 20 percent in stocks. FY20 Audit and IRS Form 990 Filing BHEF’s auditors, Rubino & Company Chartered, began the FY20 audit and Form 990 on December 7, 2020. It is expected that the audit of the financial statements and Single Audit will be complete by the end of February. Please find attached the initial draft for your preview. It is expected that the firm will complete BHEF’s form 990 and file by March 15, 2021. The Board will be provided a draft of that document once complete. ATTACHMENT A Business-Higher Education Forum Projected Q2 - FY21 at January 31, 2021 Approved FY2021 Actuals at 01-31-2021 YE Projection 09-30-2021 Operating Net Assets Unrestricted Revenue: 200 Membership - Revenue2,000,000$ 850,000$ 1,500,000$ 300 Conferences -Revenue-$ -$ -$ 520 JPMC - Revenue-$ -$ 195,000$ 521 WPI - Revenue100,000$ 100,000$ 100,000$ 525 Google - Revenue-$ -$ -$ 530 ECMC Revenue341,000$ -$ 525 STRADA Revenue-$ -$ 450,000$ 555 Texas A&M Revenue-$ 29,739$ 75,337$ 565 Georgia Tech Revenue-$ -$ 57,877$ HEWI Revenue:450,000$ 7,959$ 107,959$ -$ ------------------------------------------------------ TOTAL OPERATING NET ASSETS2,891,000$ 987,698$ 2,486,173$ -------------------------------------------------------------------------------------------------- Expenses 110 Administration - Expenses607,250$ 225,335$ 541,005$ 200 Membership - Expenses335,079$ 83,101$ 257,303$ 250 Grants - Expenses57,695$ 2,642$ 27,926$ 300 Conferences - Expenses233,040$ 7,133$ 21,399$ 500 Communications - Expenses212,760$ 21,544$ 84,632$ 520 JPMC - Expenses167,565$ 193,076$ 388,076$ 521 WPI - Expenses135,077$ 6,832$ 70,496$ 525 Google - Expenses56,750$ 406$ 1,218$ 530 ECMC - Expenses-$ 33,633$ 167,566$ 525 STRADA - Expenses-$ 71,834$ 296,834$ 555 Texas A&M - Expenses-$ 30,456$ 75,337$ 565 Georgia Tech - Expenses-$ -$ 57,877$ HEWI Summary - Expenses893,302$ 101,736$ 269,788$ ------------------------------------------------------ Total Expenses2,698,518$ 777,728$ 2,259,456$ -------------------------------------------------------------------------------------------------- NET CHANGE IN NET OPERATING ASSETS192,482$ 209,970$ 226,716$ -------------------------------------------------------------------------------------------------- Non-Operating Net Assets Revenue: 900 BHEF Investment Fund - Revenue40,000$ 39,863$ 50,000$ Total Revenue40,000$ 39,863$ 50,000$ Expenses: 900 BHEF Investment Fund - Expenses10,000$ -$ (10,000)$ Total Expenses10,000$ -$ (10,000)$ -------------------------------------------------------------------------------------------------- Net Change in Non-Operating Net Assets30,000$ 39,863$ 40,000$ -------------------------------------------------------------------------------------------------- NET CHANGE IN NET ASSETS222,482$ 249,833$ 266,716$ ============================================================================== ============================================================================== Beginning Balance FY21 Balance at 10-31- 2020 Projected FY21YE Balance Temporarily Restricted Net Assets699,193$ 305,781$ 131,746$ -$ -$ -$ 520-JPMC193,076$ 193,076$ -$ 521-WPI/Northrup131,258$ 6,832$ 60,762$ 525-Google64,475$ 406$ -$ 530-ECMC238,550$ 33,633$ 70,984$ 535-STRADA71,834$ 71,834$ -$ ============================================================================== BALANCE OF TEMPORARY RESTRICTED131,746$ TOTAL NET CHANGE IN NET ASSETS 398,463$ ============================================================================== BUSINESSHIGHER EDUCATION FORUM ______________ FINANCIAL STATEMENTS AND SINGLE AUDIT UNDER THE UNIFORM GUIDANCE Years Ended September 30, 2020and 2019 DRAFT TABLE OF CONTENTS DescriptionPage Independent Auditors’ Report 1 – 2 Statements of Financial Position 3 Statements of Activities 4 Statement of Functional Expenses (September 30, 2020) 5 Statement of Functional Expenses (September 30, 2019) 6 Statements of Cash Flows 7 Notes to Financial Statements 8 – 1 6 SupplementalInformation Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards17 – 1 8 Independent Auditors’ Report on Compliance for Each Major Federal Program and on Internal Control Over Compliance Required by the Uniform Guidance 1 9 – 20 Schedule of Expenditures of Federal Awards2 1 Notes to Schedule of Expenditures of Federal Awards22 Schedule of Findings and Questioned Costs 23 – 2 4 Summary Schedule of Prior Audit Findings 25 DRAFT INDEPENDENT AUDITORS’ REPORT The Executive Committee Business Higher Education Forum Report on the Financial Statements We have audited the accompanyingfinancial statementsof Business Higher Education Forum, which comprise the statements of financial positionas of September 30, 2020 and 2019 , and the related statements of activities, functional expensesand cash flowsfor the years then ended, and the related notes to the financial statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation offinancial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of Americaand the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The proceduresselected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well asevaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. DRAFT 2 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Business Higher Education Forum, as of September 30, 2020and 2019, and the changes in its net assets, functional expenses and cash flowsfor the years then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 2 to the financial statements, the Forumadopted Accounting Standards Update No. 2018-08, Not-for-Profit Entities: Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made (Topic 958), during the year ended September30, 2020. Our opinion is not modifiedwith respect to this matter. Other Matters Our audit was conducted for the purpose of forming an opinionon the financial statements as a whole.The accompanying schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal RegulationsPart 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards,is presented for purposes of additional analysis and is not a required part of the financial statements.Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States o f America. In our opinion, the information is fairly stated, in all material respects, in relation to thefinancial statements as a whole. Other Reporting Required byGovernment Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February__ , 20 21, on our consideration of Business Higher Education Forum’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standardsin considering Business Higher Education Forum’s internal control over financial reporting and compliance. Bethesda, Maryland February __, 20 21 DRAFT BUSINESS HIGHER EDUCATION FORUM STATEMENTS OF FINANCIAL POSITION September 30, 2020 and 2019 ____________ 20202019 ASSETS Current assets Cash and cash equivalents 985,376$ 840,256$ Investments 1,086,204 1,016,859 Accounts receivable 175,000 653,202 Grants receivable 8,750 528,450 Prepaid expenses51,706 4,806 Total current assets2,307,0363,043,573 Property and equipment, net (Note 10)18,597 - Deposits11,517 - Total assets2,337,150$ 3,043,573$ LIABILITIES AND NET ASSETS Current liabilities Note payable - Paycheck Protection Program249,800$ -$ Accounts payable 66,865 506,912 Deferred revenue 300,000 850,000 Total current liabilities 616,665 1,356,912 Deferred rent30,259 - Total liabilities646,924 1,356,912 Net assets Without donor restrictions1,186,768 1,070,571 With donor restrictions503,458 616,090 Total net assets1,690,226 1,686,661 Total liabilities and net assets2,337,150$ 3,043,573$ The accompanying notes are an integral part of these financial statements. 3 DRAFT BUSINESS HIGHER EDUCATION FORUM STATEMENTS OF ACTIVITIES Years Ended September 30, 2020 and 2019 ____________ 20202019 Revenue and support Membership dues1,600,000$ 1,690,000$ Grants and contributions1,203,3951,691,868 Sponsorship- 5,000 Miscellaneous- 3,206 Net assets released from donor restrictions464,124 630,287 Total revenue and support 3,267,519 4,020,361 Expenses Program services Higher education workforces 1,307,4321,548,516 Chase program 376,252500,380 Conferences 161,939 369,063 Membership 262,981256,996 Communications 175,786 239,412 Google 85,10962,416 DMV Projects 48,32820,415 Market Intelligence- 10,894 ECMC 12,943- Strada 28,166- Texas A&M 670 - Total program services 2,459,606 3,008,092 Supporting services Management and general621,857 650,301 Grant development 139,463 105,440 Total supporting services761,320 755,741 Total expenses 3,220,926 3,763,833 Change in net assets without donor restrictions46,593 256,528 Non-operating activity Investment income, net (Note 3)69,604 83,398 Net assets with donor restrictions Grants and contributions 351,492600,000 Net assets released from donor restrictions(464,124) (630,287) Change in net assets with donor restrictions(112,632) (30,287) Change in net assets 3,565 309,639 Net assets, beginning of year 1,686,661 1,377,022 Net assets, end of year 1,690,226$ 1,686,661$ The accompanying notes are an integral part of these financial statements. 4 DRAFT BUSINESS HIGHER EDUCATION FORUM STATEMENT OF FUNCTIONAL EXPENSES Year Ended September 30, 2020 ____________ HEWIChaseConferencesMembershipCommunicationsGoogle DMV Projects ECMC Strada Texas A&M Total Management and General Grant Development Total Expenses Labor Costs 515,786$ 325,744$ 99,658$ 238,407$ 85,116$ 66,393$ 46,685 11,766$ 20,325$ 670$ 1,410,550$ 408,433$ 129,390$ 1,948,373$ Consultants 349,340 19,618 - 500 80,543 - - - - - 450,001 23,304 - 473,305 Registration Services - 610 - - - - - - - - 610 - - 610 Sub-Award Payments 311,492 - - - - - - - - - 311,492 - - 311,492 Support Services Fees 3,062 - 2,695 5,985 2,076 - 1,546 - - - 15,364 165,846 2,517 183,727 Temporary Services 8,082 - - - - - - - - - 8,082 25,735 - 33,817 Travel 15,490 8,862 6,951 1,841 21 1,694 97 - - - 34,956 1,816 676 37,448 Meeting Expense 2,361 - 37,198 - - - - - - - 39,559 1,294 - 40,853 Miscellaneous 98 29 - 9 16 - - - - - 152 14,435 13 14,600 Telephone - 77 172 519 - - - - - - 768 27,015 107 27,890 Office Supplies - - 337 265 - - - - - - 602 4,364 - 4,966 Bank and Investment Fees - - - - - - - - - - - 46 - 46 Printing and Photocopies 5,988 395 2,330 249 - - - - - - 8,962 - - 8,962 Insurance - - - - - - - - - - - 6,570 - 6,570 Books and Subscriptions 7,500 30 - 2,154 - - - - 4,167 - 13,851 4,717 - 18,568 Postage and Delivery 58 - 31 597 - - - - - - 686 1,409 6,760 8,855 Rent 7,492 - 5,207 12,455 4,447 - - - - - 29,601 22,877 - 52,478 Fringe Benefits - - - - - - - - - - - 22,195 - 22,195 Design and Editing 11,760 2,970 7,360 - 3,000 - - - - - 25,090 - - 25,090 Website - - - - 567 - - - - - 567 514 - 1,081 Indirect Cost Allocation 68,923 17,917 - - - 17,022 - 1,177 3,674 - 108,713 (108,713) - - Total1,307,432$ 376,252$ 161,939$ 262,981$ 175,786$ 85,109$ 48,328$ 12,943$ 28,166$ 670$ 2,459,606$ 621,857$ 139,463$ 3,220,926$ Supporting ServicesProgram Services The accompanying notes are an integral part of these financial statements. 5 DRAFT BUSINESS HIGHER EDUCATION FORUM STATEMENT OF FUNCTIONAL EXPENSES Year Ended September 30, 2019 ____________ HEWIChaseConferencesMembershipCommunicationsGoogle DMV Projects Market Intelligence Total Management and General Grant Development Total Expenses Labor Costs 366,529$ 450,725$ 184,172$ 216,391$ 89,735$ 17,630$ 17,589$ 7,704$ 1,350,475$ 487,469$ 93,676$ 1,931,620 Consultants 211,168 450 - - 138,089 32,303 - - 382,010 - - 382,010 Sub-Award Payments 864,727 - - - - - - - 864,727 - - 864,727 Support Services Fees 6,899 - 16,945 22,572 9,133 - 1,962 817 58,328 170,278 9,526 238,132 Temporary Services 4,212 322 - - - - - 1,515 6,049 43,606 - 49,655 Travel 6,962 23,708 29,817 9,013 35 - 624 - 70,159 2,623 972 73,754 Meeting Expense 7,161 - 119,924 261 - - - - 127,346 350 - 127,696 Miscellaneous 10,093 - 2,505 144 - - - - 12,742 4,015 29 16,786 Telephone 579 217 2,179 3,718 1,102 - 234 106 8,135 20,621 1,154 29,910 Office Supplies 5,498 1,054 1,102 442 100 - 6 2 8,204 1,859 83 10,146 Bank and Investment Fees - - - - - - - - - 253 - 253 Printing and Publications 7,313 62 2,051 1,367 298 - - - 11,091 - - 11,091 Insurance - - - - - - - - - 5,673 - 5,673 Books and Subscriptions 712 19 - 2,355 - - - - 3,086 2,989 - 6,075 Postage and Delivery 128 - 414 733 - - - - 1,275 406 - 1,681 Design and Editing 3,000 - 9,954 - 400 - - 750 14,104 - - 14,104 Website - - - - 520 - - - 520 - - 520 Indirect Cost Allocation 53,535 23,823 - - - 12,483 - - 89,841 (89,841) - - Total1,548,516$ 500,380$ 369,063$ 256,996$ 239,412$ 62,416$ 20,415$ 10,894$ 3,008,092$ 650,301$ 105,440$ 3,763,833$ Program ServicesSupporting Services The accompanying notes are an integral part of these financial statements. 6 DRAFT BUSINESS HIGHER EDUCATION FORUM STATEMENTS OF CASH FLOWS Years Ended September 30, 2020 and 2019 ____________ 20202019 Cash flows from operating activities Change in net assets3,565$ 309,639$ Reconciling adjustments Depreciation2,325 - Net realized and unrealized investment gains(43,880) (56,200) Changes in operating assets and liabilities: Accounts receivable478,202 (555,202) Grants receivable519,700 71,261 Prepaid expenses(46,900) 7,037 Deposits(11,517) - Accounts payable (440,047) (1,202) Deferred revenue (550,000) 110,000 Deferred rent 30,259 - Net cash used by operating activities(58,293) (114,667) Cash flows from investing activities Purchase of property and equipment(20,922) - Purchase of investments(25,465) (26,803) Net cash used by investing activities(46,387) (26,803) Cash flows from financing activities Proceeds from Paycheck Protection Program249,800 - Net increase (decrease) in cash and cash equivalents145,120 (141,470) Cash and cash equivalents, beginning of year840,256 981,726 Cash and cash equivalents, end of year985,376$ 840,256$ Supplemental cash flow information: Cash paid for interest:-$ -$ Cash paid for taxes:-$ -$ The accompanying notes are an integral part of these financial statements. 7 DRAFT BUSINESS HIGHER EDUCATION FORUM NOTESTO FINANCIAL STATEMENTS Years Ended September 30, 2020 and 2019 ______________ 8 1.Organization Business Higher Education Forum (the Forum) i s an organization of Fortune 500 CEOs, prominent college and university presidents,