Minutes of the Trustees Finance and Audit Committee Meeting
August 25, 2011 Johnson Trustees Room 8am to 9am
Chairman Evelyn Arana-Ortiz
A meeting of the Trustees Finance and Audit Committee was held at the Boston Public Library, Trustees Room, Johnson Building, on Thursday, August 25, 2011 at 8:00 a.m.
Present at the meeting were: Chairman Evelyn Arana-Ortiz; Trustee Zamawa Arenas; Boston Public Library Chief Financial Officer, Sean P. Nelson; Budget and Procurement Manager, Edward Maheigan; Supervisor of Accounting, Sean Monahan; Assistant Corporation Counsel, David Waterfall; New England Pension Consultant’s, Michael Black; and Clerk of the Board, Nancy Grilk.
The Chair noted that she received apologies from Trustees Donna M. DePrisco and Byron Rushing, as well as Mr. Ray Sullivan and Mr. Anthony Jordan who were unable to attend due to prior commitments.
Ms. Arana-Ortiz, Chairman of the Finance and Audit Committee (Committee) presiding.
The Chair reviewed the agenda and addressed the first item on the order of business pertaining to the Minutes of the Trustees Finance and Audit Committee Meeting held on May 5, 2011. On a motion made and duly seconded, the Minutes of the Trustees Finance and Audit Committee meeting held on May 5, 2011 were approved and subsequently posted on the Boston Public Library’s web site at www.bpl.org.
The Chair introduced Mr. Michael Black of New England Pension Consultants to review Boston Public Library’s market and performance, and distributed a document titled “Investment Market Update as of August 19, 2011”. Mr. Black put some global context on the current state of the investment market relative to the United States economy. He then reviewed each page of the document detailing the Boston Public Library’s position over time relative to the overall investment market. The New England Pension Fund Consultant’s position to clients is to maintain a disciplined approach to investing, and not to react to the current volatility of the market. Mr. Black reviewed some options to improve the efficiency of the Boston Public Library’s portfolio. Mr. Black went through the Flash Report as of July 31, 2011 to examine the performance of the Boston Public Library’s portfolio’s annualized returns over time. The Committee members agreed it would be beneficial for each of the investment managers meet with Committee members regarding the current asset allocation. Discussion followed on the current and long term asset management. It was agreed that Mr. Black will prepare a memo for the Committee with an overview of The Boston Company’s strategy and performance, and they will be invited to attend the September 22nd Committee meeting to discuss these topics.
The Chair moved to the next agenda item concerning the proposed Award of Contract for the relocation of the Norwood storage facility. Mr. Ed Maheigan, Budget and Procurement Manager noted that the agenda item has been revised as the Award of Contract has not been made. Mr. Maheigan further reported that the Request for Proposals for the relocation contract yielded one bid which is undergoing a full review of the viability of the technical proposal. If the proposal is not viable, the Request for Proposals would be re-bid. The Chief Financial Officer is working with the city’s Law Department on this process. The target for the Award of Contract is for the Committee to make a recommendation to the Trustees at the November 15, 2011 Trustees Board meeting. Mr. Maheigan reported that the city funding for this project is secure. Discussion followed.
Mr. Sean Nelson provided an update on the FY 2012 Operating Budget, reporting that the final state budget added $350,000 for a total of approximately $2.75 million and is the same level of funding from the state to the Boston Public Library in FY 2011. As a result, the Trustees voted to re-instate Sunday hours at Copley.
Mr. Sean Monahan reported on the new O’Connor & Drew PC audit team. They are on target to have the FY 2011 Draft Audit ready for review at the September Committee meeting. Following the audit, staff will begin review of several Boston Public Library policies contained in the Form 990.
The new Boston Public Library billing system is fully implemented and working very well. The city will upgrade the PeopleSoft system in July 2012 to create a more streamlined and efficient reporting system.
The next meeting of the Finance and Audit Committee is scheduled for Thursday, September 22, 2011 at 8:00 a.m. in the Johnson Trustees Room. A meeting was scheduled for Thursday, October 20, 2011 at 8 a.m. in the Johnson Trustees Room.
There being no other business, the Trustees Finance and Audit Committee adjourned at 8:55 a.m.
Clerk of the Board
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