January 8, 2010

Change to Finance Policy

Item D. of our finance policy was change to reflect our the approved motion of keeping mileage at .25 cents per mile. It's on page 7 of our Constitution, By-lay, Policies.

It now reads:
D.Officer and committee expenses may include mileage, postage, supplies, and telephone calls. Mileage reimbursement is set by the Executive board and is .25 cent/per mile (adopted 1-610). Meals are not reimbursed.

NEAFCS-MNAffiliateBy-Laws 1208.doc

December 22, 2009

Final Budget 2009-2010

Here is the final 2009-10 budget as amended at our annual meeting.
NEAFCS 09-10P Final Amended Budget10 08 09.xls

October 6, 2008

Questions-Answers Regarding Use of Proceeds

NEAFCS MN Affiliate Conference Call -- 10-3-08
Present: Rose Allen, Shirley Anderson-Porisch, Kim Asche, Roselyn Biermaier,
Deb Botzek-Linn, Carol Ann Burtness, Suzanne Driessen, Colleen Gengler,
Becky Hagen-Jokela, Rosi Heins, Kathy Olson, Cindy Petersen

Purpose: To review information/clarify options for using proceeds from the Tri State Committee - NEAFCS Annual Session 2007, St. Paul, MN:
Colleen reviewed options, timeline for developing options, clarifications of endowment terminology and steps taken by the Board to use member input and bylaw information related to budget for direction to develop options. Details would need to be worked through for either option. Matt Mussel, U of M Foundation, will attend MN-Affiliate Annual Meeting in Duluth on 10/22/08 to provide information on quasi-endowment.

Questions raised by caller participants:
1. Is there a penalty if the principal falls below $10,000?
No, not a penalty. Quasi implies long growth vs. a CD. Choice would be only to use interest. Option 2 - unclear if only use CD interest. There is no principal guarantee with quasi. Quasi can be maintained even with loss in principal.
Option 2 may take more time on part of MAEE treasurer. Colleen clarified management of quasi vs. short term options. MEWS (MN Extension Worker's Scholarship Fund through ESP - also set up as a quasi-endowment) needs a statement of use for using funds to expedite payment to end user. A 4-H quasi example was described - return has been positive but there is administrative cost that seems reasonable.

2. Will interest be used to maintain budget?
Will principal be used to maintain budget?
Current budget projections are based on current membership and current expense level which suggest our budget can continue to operate with carryover funds for the next 8-10 years. Funds from interest could be used to support things including that which may have been removed in the past i.e. PILD. For the short term option, the board would need to determine how much principal would be used.

3. Has there been MAEE discussion as to increasing support for PILD?
MAEE has been happy that Dean increased support from $0 to $500.

4. How do we get to a principal of $10,000?
Present funds have been put into a 10 month CD @ 3.25% interest which will bring balance to over $10,000 at maturity.

Board was thanked for putting together informative options for discussion

Colleen said that Dean Durgan and Karen Shirer are supportive of decision that will be made by MN-Affiliate membership.

Other Business
Cindy reported 23 members so far including 2 new members.

Congratulations were extended to Kathy Olson, NEAFCS Secretary, elected at Galaxy as well as to all award winners.

With no further discussion, conference call ended at 11:10 am.

Minutes prepared by Shirley Anderson-Porisch for Sara Croymans.

October 3, 2008

Comments on Options

Here are clarifications on the questions posted:

1. On option 1 - is it correct that we can decide how the money is used and if we so decided we could withdraw all of it at anytime?

Yes, the organization would establish some basic guidelines as part of the process in setting up a quasi-endowment. Expenses during the year would need to fall within those basic guidelines. It appears that generally, members are interested in supporting staff development which could include the workshop the president and president elect have attended (president is paid for through National), Public Issues Leadership Development Conference (Director's office give $500 per section in the last few years), scholarship to attend NEAFCS to present scholarly work, dollars for a yearly professional development day for members. Those are the main examples that have been suggested. The board would determine what will be covered as they look at the budget and then those expenses would be covered.

Yes, funds can be withdrawn at anytime.

2. Why/how does option 2 differ from l in the respect that "Money may be depleted in a few years." Is it because of the interest rate?

As members vote on these options, it is for a general direction: quasi-endowment or short-term investment plan. For the short-term investment plan, the board would need to determine what exactly that means. Do we only use the interest earned from whatever short term investment is used, ie CDs or is the principal used over a period of years?

So, if this is the option chose, the board through input from members, could decide for example, to use $1000 per year for the next few years. With that example, we earn less and less interest each year because the principal is less each year. Eventually, the money is depleted.

Again, it depends on the specifics that would need to be determined once an overall direction is set through the choice of one of the two options.