EXECUTIVE & FINANCE Committee Meeting Agenda – February 7, 2023 – 8:30 – 9:30 AM
Virtual Meeting
Zoom Link: https://us02web.zoom.us/j/87143799899?pwd=T3psbndGVkNrVlRMcXJsb2FVRzFtQT09
Meeting Call-In Number: 1-929-205-6099 Meeting ID: 879 4138 6881 Passcode: 438301
Directors are reminded that all Able Trust Board and Committee meeting are open and publicly noticed. Under Florida Sunshine Law, any meeting of 2 or more Able Trust Directors must be publicly noticed. Directors are prohibited from discussing Able Trust business outside of official meetings of the organization.
Directors are reminded of conflict of interest provisions. In declaring a conflict, please refrain from voting or discussion and declare the following information: 1) Your name and position on the Board, 2) The nature of the conflict, and 3) Who will gain or lose as a result of the conflict.
I. Call to Order and Roll Call
II. Consent Agenda - Action
a. Meeting Agenda
b. November Executive & Finance Committee Minutes
c. Financial Reports
i. Profit & Loss Sheet
ii. Balance Sheet
III. Regular Business
a. Wells Fargo Investments Update
b. FY24 Spending Rate (6%) and Budget Planning
c. Legislative & FDOE/VR Update
d. OIG Audit Report & Response
e. BOD Retreat
i. VR Workshop
ii. Strategic Planning & Fundraising Sessions
iii. Project Venture Event
IV. Unfinished Business New Business
Public Comment
Next Executive & Finance Committee Meeting: May 2, 2023, 8:30 – 9:30 AM
Adjourn
Laurie Sallarulo, Board Chair
Laurie Sallarulo, Board Chair
Scott Hilton, Wells Fargo
Doug Hilliard, Treasurer
Allison Chase, President & CEO
Laurie Sallarulo, Board Chair
Laurie Sallarulo, Board Chair
Please Note: Agenda subject to revisions and additions per the discretion of the Chair of the Board of Directors. Notification will be sent of any such revisions or changes.
Members of the Public: Please notify Arnaldo Ramos at Arnaldo@abletrust.org if you wish to make public comment on particular agenda items no later than 1-hour prior to beginning of the meeting.
Board of Directors – Annual Retreat
February 28, 2023 – 1:00 – 5:00 PM
Margaritaville Resort, Orlando, FL
What Makes Us Good? What Can Make Us Great?
Laurie Sallarulo, Board Chair & Allison Chase, President & CEO
Board Introductions
Why Is Our Work Important to You?
VR Workshop
Brent McNeal, VR Director
DSO Proposed Engagement Plan
Joey D’Souza, VP External Engagement
Engagement Roundtables
What Makes Us Good? What Would Make Us Great?
Homework
For Dinner
What makes you hopeful about our work as the VR Direct Support Organization? Tell Us Two Truths and a Lie
For
Being a Board Ambassador – Donna Wright VP, Marketing & Development
Tomorrow
Evening Activities 5:30 – 6:30 HSHT Annual Awards Reception – Margaritaville Pool Deck 7:00 – 9:00 Annual Board Dinner, Estefan Kitchen Within Walking Distance or Shuttle Service Available
Florida Endowment Foundation for Vocational Rehabilitation, dba The Able Trust DRAFT Executive & Finance Committee Meeting Minutes
Executive/Finance Committee Meeting – November 2, 2022 – 8:30 AM
Virtual Meeting
Members in Attendance Doug Hilliard; Mavara Mirza-Agrawal, Laurie Sallarulo
Members Absent Chip Byers
Staff in Attendance Allison Chase, President & CEO; Arnaldo Ramos, Executive Assistant
Item
Action/Discussion
Call to Order and Roll Call Laurie Sallarulo called the meeting to order at 9:30am. A quorum was confirmed.
EXECUTIVE COMMITTEE CONSENT AGENDA
a. Meeting Agenda
b. August Executive & Finance Committee Minutes
REGULAR BUSINESS
a. FY22 Annual Audit
b. BOD Retreat
i. Project Venture Event
ii. BOD SelfAssessment Process
c. Slates for Bylaws and Nominating Committees
Mavara made a motion to accept the consent agenda, seconded by Doug. The consent agenda was unanimously approved.
Allison updated the committee that the auditors are expected to deliver a draft for our review by mid-November. It is expected that the audit will be without modification again this year. The final draft will be presented to the full board in December and copy of which will accompany our annual DSO report to the Governor, Legislature, and Commissioner of Education.
Laurie and Allison reminded the committee that this year’s board retreat will be in conjunction with the HSHT conference and Project Venture competition at the end of February. The board will spend time during the retreat reviewing the results of a self-assessment completed by the full board.
Allison presented names for the Bylaws and Nominating Committees which were unanimously accepted by the committee.
Bylaws Committee: Alexis Doyle, Lori Fahey, Doug Hilliard, Todd Jennings
Nominating: Chip Byers, Alexis Doyle, Todd Jennings
UNFINISHED BUSINESS There was no discussion.
PUBLIC COMMENT No public comment was offered.
NEXT MEETING July 12, 2022, 9:00 – 9:30 AM
ADJOURN The meeting adjourned at 9:40am.
Respectfully submitted, Laurie Sallarulo, Committee Chair
Page 1 of 1
The Able Trust Balance Sheet
As of November 30, 2022
UNRESTRICTED November 31, 2021 November 31, 2022 UNRESTRICTED RESTRICTED PARTIALLY RESTRICTED Current Assets/Bank Accounts 108.000 · The First Reserve 581,828.75 909,640.72 909,640.72 109.000 · The First Operating 29,933.13 (7,095.53) (7,095.53) 109.200 · The First Admin Sinking 421,294.07 301,275.60 301,275.60 109.001 · Petty Cash 63.81 78.81 78.81 110.061 · Morgan Stanley Smith Barney (2) 239,592.34 188,622.63 188,622.63 110.200 · Wells Fargo 40,915.57 20,487.35 20,487.35 Total Current Assets/Bank Accounts 1,313,627.67 1,413,009.58 1,203,899.60 209,109.98Current Assets/Accounts Receivable 12000 · Undeposited Funds 614.27 -120.001 · Accounts Rec - General 30.00 5,000.00 5,000.00 120.006 · Accounts Rec - Comm/DEAM - 7,500.00 7,500.00 120.007 · Accounts Rec - SOF/DOE/VR 137,455.75 -120.008 · Accounts Rec - Endowment Admin Fees - 5,288.62 5,288.62 128.000 · Prepaid Expense 6,875.00 -Total Current Assets/Accounts Receivable 144,975.02 17,788.62 17,788.62 -State Endowments 110.061 · Morgan Stanley Smith Barney (2) 10,931,502.97 9,101,483.93 9,101,483.93 110.200 · Wells Fargo 11,262,200.70 9,284,013.84 9,284,013.84 Total Other Current Assets 22,193,703.67 18,385,497.77 - 18,385,497.77Long Term Assets 260.000 · Present Value-Deferred Contrib. 658,311.99 684,216.99 684,216.99 Total Long Term Assets 658,311.99 684,216.99 - 684,216.99Fixed Assets 205.000 · Computers 33,438.24 19,829.88 19,829.88 208.100 · Leaseholder Improv (T'ville Rd) 164,921.13 -211.000 · Furniture & Fixtures 132,880.79 94,079.70 94,079.70 230.000 · Accumulated Depreciation (210,977.51) (110,489.03) (110,489.03) Total Fixed Assets 120,262.65 3,420.55 3,420.55 -Other Assets 250.100 · Security Deposit 8,200.00 4,200.00 4,200.00 255.000 · Rec. re: Griffith Ins. Policy Estimated 97,750.00 97,750.00 97,750.00 257.000 · PFG Stock (273 shares @ $59.96) 16,369.08 16,369.08 16,369.08 258.000 · Lease Asset - 153,279.19 258.100 · Accumulated Amortization - (25,546.53) Total Other Assets 122,319.08 246,051.74 118,319.08 -TOTAL UNRESTRICTED ASSETS 24,553,200.08 20,749,985.25 1,343,427.85 19,278,824.74Page 1 of 2 Unaudited for Management Purposes Only
ASSETS
The Able Trust Balance Sheet
As of November 30, 2022
November 31, 2021 November 31, 2022 UNRESTRICTED RESTRICTED PARTIALLY RESTRICTED Private Endowments 110.020 · Pettengill Ability Fund 5.30 5.30 5.30 110.216 · McKeon Ability Fund 783,248.84 658,866.97 658,866.97 110.217 · Ward Ability Fund 616,434.92 445,556.86 445,556.86 110.215 · Hibbard Ability Fund 366,848.82 323,006.42 323,006.42 110.231 · Gallimore Ability Fund 632,017.20 577,035.35 577,035.35 110.232 · Thomas Ability Fund 874,706.43 798,326.95 798,326.95 110.233 · Pettengill Ability Fund 29,224.78 27,379.90 27,379.90 27,379.90 110.234 · LeRoy Ability Fund 166,312.70 150,255.39 150,255.39 Total Endowments 3,468,798.99 2,980,433.14 - 2,980,427.84 27,385.20 TOTAL ASSETS AND ENDOWMENTS 28,021,999.07 23,730,418.39 1,343,427.85 22,259,252.58 27,385.20 Managed Funds - as fiduciary 106.000 · FSA - Employee PreTax Acct - -Total Managed Funds - as fiduciary - - - -28,021,999.07 23,730,418.39 1,343,427.85 22,259,252.58 27,385.20 LIABILITIES & EQUITY Current Liabilities 320.000 · Accounts Payable 7,929.09 84,587.46 84,587.462110 · Direct Deposit Liabilities - (1,606.83) 320.993-999 · Payroll Liabilities 335.77 164.35 164.35 329.000 · Accrued Leave 20,950.00 10,628.00 10,628.00 321.000 · Unearned Revenue - 50,000.00 330.100 · Current Lease Liability - 50,223.00 50,223.00 Total Current Liabilities 29,214.86 193,995.98 84,587.46 61,015.35Long Term Liabilities 330.000 · Lease Liability - 74,378.67 Total Long Term Liabilities - 74,378.67 84,587.46 121,866.35Deferred Inflow of Resources 270.000 · Deferred Inflow of Resources 658,312.21 684,217.21 684,217.21 Total Deferred Inflow of Resources 658,312.21 684,217.21 - 684,217.21Managed Funds for Distribution 320.106 · Employee PreTax Managed Funds - -Total Managed Funds for Distribution - - - -TOTAL LIABILITIES AND DEFERRED INFLOW OF RESOURCES 687,527.07 952,591.86 84,587.46 745,232.56Equity Retained Earnings 5,098,171.20 (30,351.14) 690.000 · Fund Balance 22,860,187.63 22,860,187.63 Net Revenue (623,886.83) (52,009.96) Total Equity 27,334,472.00 22,777,826.53 - -TOTAL LIABILITIES & EQUITY 28,021,999.07 23,730,418.39 TOTAL MANAGED FUNDS AND ASSETS RESTRICTED AND UNRESTRICTED Page 2 of 2 Unaudited for Management Purposes Only
The Able Trust
Profit & Loss Budget vs. Actual
July 2022 through June 2023
Accrual Basis
TOTAL Actual Budget Ordinary Income/Expense Income 600.101 · Cash on Hand 600.100 · Cash on Hand prior FY @ 6/30 0.00 710,066.00 600.116 · Cash-Public Invest Prior @ 6/30 0.00 222,061.62 Total 600.101 · Cash on Hand 0.00 932,127.62 603.016 · Fees Earned-Manage Family Funds 600.300 · Endowment Admin Fees 10,162.49 603.016 · Fees Earned-Manage Family Funds - Other 0.00 51,470.00 Total 603.016 · Fees Earned-Manage Family Funds 10,162.49 51,470.00 600.102 · Grants 603.017 · New Grants 0.00 100,000.00 Total 600.102 · Grants 0.00 100,000.00 600.105 · Project Based Revenue Sources 606.000 · Annual Fund Raiser 0.00 606.800 · DEAM/DMD Income 31,500.00 600.105 · Project Based Revenue Sources - Other 0.00 150,000.00 Total 600.105 · Project Based Revenue Sources 31,500.00 150,000.00 603.003 · Sponsorships & Unrestr Gifts 603.005 · Sponsorships 0.00 150,000.00 603.101 · Corp./Ind. Gifts - Unrestricted 27,291.47 603.003 · Sponsorships & Unrestr Gifts - Other 0.00 150,000.00 Total 603.003 · Sponsorships & Unrestr Gifts 27,291.47 300,000.00 603.006 · State Appropriations/Other Govt 606.700 · HS/HT DOE-VR Funds 137,455.75 603.006 · State Appropriations/Other Govt - Other 0.00 799,823.00 Total 603.006 · State Appropriations/Other Govt 137,455.75 799,823.00 603.008 · Investment Income 603.009 · Bank Accounts 610.001 · Interest/Dividends 610.025 · Interest/Div Bank Accts Current 610.018 · Interest The First Sinking Fund 252.37 421,354.30 Total 610.025 · Interest/Div Bank Accts Current 252.37 421,354.30 610.001 · Interest/Dividends - Other 9.32 Total 610.001 · Interest/Dividends 261.69 421,354.30 Total 603.009 · Bank Accounts 261.69 421,354.30 603.011 · Investments State Endowment 610.026 · Int/Div Invest Accts Current 610.021 · Interest/Dividend MSSB(2) 54,371.24 610.031 · Interest/Dividend Wells Fargo 47,504.97 Total 610.026 · Int/Div Invest Accts Current 101,876.21 603.011 · Investments State Endowment - Other 0.00 1,555,483.00 Total 603.011 · Investments State Endowment 101,876.21 1,555,483.00 603.014 · Gain/Loss on Investments Page 4 of 13 Unaudited for Management Purposes Only
The Able Trust
Profit & Loss Budget vs. Actual
July 2022 through June 2023
Accrual Basis
TOTAL Actual Budget 662.000 · Realized Loss/Gain Invest-State -177,860.90 Total 603.014 · Gain/Loss on Investments -177,860.90 Total 603.008 · Investment Income -75,723.00 1,976,837.30 610.016 · Income Principal Stock 524.16 603.013 · Other Income 615.000 · Miscellaneous Income 10,864.19 Total 603.013 · Other Income 10,864.19 Total Income 142,075.06 4,310,257.92 Gross Profit 142,075.06 4,310,257.92 Expense 791.000 · Grant Writing 18,500.00 30,000.00 731.000 · Interest Expense 2.24 772.000 · Late Fees 0.00 808.600 · Able IF 2025 808.607 · Able IF 2023 Summit Planning 0.00 20,000.00 808.606 · Able IF Trainings & Events 0.00 20,000.00 808.605 · Able IF Think Tank 0.00 20,000.00 808.604 · Able IF Content Experts 10,000.00 50,000.00 808.603 · Able IF Innovation Grants & Pro 0.00 250,000.00 808.602 · Able IF Travel 1,425.53 20,000.00 808.601 · Data/Economic Analysis 44,260.50 100,000.00 808.600 · Able IF 2025 - Other 1,814.76 Total 808.600 · Able IF 2025 57,500.79 480,000.00 701.002 · Compensation 701.000 · Salaries 282,115.78 730,000.00 701.220 · Severance Pay 425.48 701.230 · Cell Phone Reimbursement 2,546.00 Total 701.002 · Compensation 285,087.26 730,000.00 Payroll Expenses 48.63 701.200 · Payroll Processing/Reports Fee 145.25 1,200.00 701.250 · Finance, HR & Record Keeping 32,345.00 70,000.00 702.000 · Payroll & Unemployment Taxes 21,525.46 66,927.84 703.000 · Employee Health/Dental Ins. 703.001 · Employee Health Insurance 21,267.35 64,497.64 703.002 · Employee Dental Insurance 703.57 4,569.21 Total 703.000 · Employee Health/Dental Ins. 21,970.92 69,066.85 703.100 · STD/LTD/Life Insurance 703.101 · Employee STD/LTD 632.02 7,120.85 703.102 · Employee Life Insurance 99.00 1,294.70 Total 703.100 · STD/LTD/Life Insurance 731.02 8,415.55 704.000 · 401(k) Match & Expenses 9,698.56 36,455.52 710.000 · Staff Membership Dues 5,890.28 15,000.00 710.500 · Staff Training & Development 1,951.05 8,000.00 711.000 · Staff Travel & Outreach 11,314.51 30,000.00 Page 5 of 13 Unaudited for Management Purposes Only
The Able Trust
Profit & Loss Budget vs. Actual
July 2022 through June 2023
Accrual Basis
TOTAL Actual Budget 712.000 · Webinars 0.00 3,000.00 713.000 · Research/Data Collection Projec 372.00 730.000 · Invest & Bank Account Charges 44,303.77 203,201.04 750.000 · Computers & Equipment 2,243.98 6,000.00 750.100 · Software & Licenses 17,635.06 18,500.00 755.000 · Endowment Funds/Invest Mgmt 755.625 · Endow-Griffith Holdings Fees 2,087.93 Total 755.000 · Endowment Funds/Invest Mgmt 2,087.93 758.000 · Insurances - non-health 758.100 · Insurance - BOP,Auto,Event Canc 2,473.15 6,567.87 758.200 · Insurance - Liability Umbrella 693.32 2,145.83 758.300 · Insurance Directors & Officers 2,003.28 2,575.00 758.400 · Insurance Worker's Compensatio 0.00 2,279.39 Total 758.000 · Insurances - non-health 5,169.75 13,568.09 765.000 · Legal 53.00 2,500.00 765.200 · Lobbying 28,173.12 50,000.00 766.000 · Audit & Tax 766.001 · Auditor Fee 20,453.00 766.000 · Audit & Tax - Other 0.00 29,950.00 Total 766.000 · Audit & Tax 20,453.00 29,950.00 770.000 · Office Supplies 5,017.80 3,000.00 774.000 · Postage 413.86 775.000 · Printing 0.00 2,000.00 776.100 · Rent - Office Space 21,000.00 60,000.00 776.101 · State Storage Document Destruct 36.72 1,000.00 776.104 · Copier maintenance & ovrg fee 1,656.83 3,000.00 790.000 · Telephone/Internet 1,365.73 9,000.00 790.100 · IT Support 2,717.50 12,000.00 790.101 · IT Support - Form 1099-NEC 0.00 793.000 · Board Related Expenses 793.050 · Quarterly Meetings 0.00 793.003 · Committee Meetings 0.00 5,000.00 793.001 · Board Retreats 0.00 12,000.00 Total 793.000 · Board Related Expenses 0.00 17,000.00 794.000 · CEO Program Management/Research 794.010 · CEO Meetings/Travel/Misc Exp. 7,160.06 15,000.00 794.030 · CEO Memberships 3,215.00 2,000.00 Total 794.000 · CEO Program Management/Research 10,375.06 17,000.00 780.000 · DVR/Staff Events 18,958.24 48,000.00 781.000 · Other Support to DVR 390.11 70,000.00 802.010 · Donor Directed Grants 26,575.90 50,000.00 802.100 · Grant Obligations - HS/HT AT/VR 802.200 · Grants - HS/HT Continuation AT 191,116.89 802.300 · Grants - HS/HT VR Funded 240,000.00 Page 6 of 13 Unaudited for Management Purposes Only
The Able Trust
Profit & Loss Budget vs. Actual
July 2022 through June 2023
Accrual Basis
TOTAL Actual Budget 802.100 · Grant Obligations - HS/HT AT/VR - Other 0.00 946,000.00 Total 802.100 · Grant Obligations - HS/HT AT/VR 431,116.89 946,000.00 803.303 · Grants - Sponsorsips 10,500.00 20,000.00 805.000 · Advertising 805.135 · Website Maint. & Updates 4,500.00 8,500.00 805.000 · Advertising - Other 3,170.00 3,500.00 Total 805.000 · Advertising 7,670.00 12,000.00 805.110 · Collateral Material/Printing 371.68 805.122 · Solicitation License Renewal 0.00 805.300 · Fundraising & Donor Development 805.109 · Software/Credit Processing Fees 2.87 805.161 · Fundraising-Printing & Supplies 0.00 805.300 · Fundraising & Donor Development - Other 0.00 250.00 Total 805.300 · Fundraising & Donor Development 2.87 250.00 807.100 · HSHT The Able Trust 807.146 · HS/HT Other 1,500.00 807.121 · HSHT Travel 807.160 · Travel-Vice President 6,953.72 807.121 · HSHT Travel - Other 2,826.07 15,000.00 Total 807.121 · HSHT Travel 9,779.79 15,000.00 807.140 · HSHT Educational Materials 0.00 1,000.00 807.145 · HSHT Supplies & Postage 0.00 1,000.00 807.150 · HSHT Annual Training 1,649.25 30,000.00 807.200 · HSHT Student Initiatives 25.00 25,000.00 807.100 · HSHT The Able Trust - Other 67.87 Total 807.100 · HSHT The Able Trust 13,021.91 72,000.00 807.600 · Disability Empl Awareness-DEAM 807.601 · DEAM Events 22,691.27 807.604 · DEAM-Printing & Supplies 76.70 807.600 · Disability Empl Awareness-DEAM - Other 5,324.10 25,000.00 Total 807.600 · Disability Empl Awareness-DEAM 28,092.07 25,000.00 808.500 · ABLE Network 808.510 · Support to Regional Networks 75.10 808.515 · Projects & Consultants 15,000.00 808.520 · Resources & Supplies 1,372.10 808.500 · ABLE Network - Other 2,866.15 Total 808.500 · ABLE Network 19,313.35 810.310 · Miscellaneous Expense 39.44 738.000 · Depreciation 0.00 4,500.00 Total Expense 1,185,838.54 3,243,534.89 Net Ordinary Income -1,043,763.48 1,066,723.03 Other Income/Expense Other Income 603.015 · Gain/Loss Investments-Private Page 7 of 13 Unaudited for Management Purposes Only
The Able Trust
Profit & Loss Budget vs. Actual July 2022 through June 2023
Accrual Basis
TOTAL Actual Budget 662.001 · Realized Gain/Loss Invest-Priva 16,307.62 661.001 · Unrealized Gain/Loss Inv Privat 96,287.33 Total 603.015 · Gain/Loss Investments-Private 112,594.95 602.001 · Endowments & Bequests 602.101 · Endowment Contrib-Private Accts 602.196 · Account Contribution McKeon 0.00 602.197 · Account Contribution Pettengill 0.00 Total 602.101 · Endowment Contrib-Private Accts 0.00 Total 602.001 · Endowments & Bequests 0.00 661.000 · Endow. Unrealized Loss/Gain 880,427.69 663.001 · Invest Private Endow Int/Div 663.194 · Invest Private-Int/Div-Gallimor 3,413.13 663.195 · Invest Private Int/Div-Hibbard 2,031.31 663.196 · Invest Private Int/Div-McKeon 4,209.56 663.197 · Invest Private Int/Div-Petteng 24.21 663.198 · Invest Private Int/Div-Thomas 4,726.25 663.199 · Invest Private Int/Div-Ward 2,832.67 663.192 · Invest Private Int/Div-LeRoy 898.59 663.001 · Invest Private Endow Int/Div - Other 0.00 235,388.00 Total 663.001 · Invest Private Endow Int/Div 18,135.72 235,388.00 Total Other Income 1,011,158.36 235,388.00 Other Expense 730.501 · Managed Account Fees 9,242.35 730.502 · Managed Acct Able Trust Adm Fee 10,162.49 Total Other Expense 19,404.84 Net Other Income 991,753.52 235,388.00 Net Income -52,009.96 1,302,111.03 Page 8 of 13 Unaudited for Management Purposes Only
Profit
Budget vs.
Accrual Basis
The Able Trust
TOTAL Ordinary Income/Expense Income 600.101 · Cash on Hand 600.100 · Cash on Hand prior FY @ 6/30 600.116 · Cash-Public Invest Prior @ 6/30 Total 600.101 · Cash on Hand 603.016 · Fees Earned-Manage Family Funds 600.300 · Endowment Admin Fees 603.016 · Fees Earned-Manage Family Funds - Other Total 603.016 · Fees Earned-Manage Family Funds 600.102 · Grants 603.017 · New Grants Total 600.102 · Grants 600.105 · Project Based Revenue Sources 606.000 · Annual Fund Raiser 606.800 · DEAM/DMD Income 600.105 · Project Based Revenue Sources - Other Total 600.105 · Project Based Revenue Sources 603.003 · Sponsorships & Unrestr Gifts 603.005 · Sponsorships 603.101 · Corp./Ind. Gifts - Unrestricted 603.003 · Sponsorships & Unrestr Gifts - Other Total 603.003 · Sponsorships & Unrestr Gifts 603.006 · State Appropriations/Other Govt 606.700 · HS/HT DOE-VR Funds 603.006 · State Appropriations/Other Govt - Other Total 603.006 · State Appropriations/Other Govt 603.008 · Investment Income 603.009 · Bank Accounts 610.001 · Interest/Dividends 610.025 · Interest/Div Bank Accts Current 610.018 · Interest The First Sinking Fund Total 610.025 · Interest/Div Bank Accts Current 610.001 · Interest/Dividends - Other Total 610.001 · Interest/Dividends Total 603.009 · Bank Accounts 603.011 · Investments State Endowment 610.026 · Int/Div Invest Accts Current 610.021 · Interest/Dividend MSSB(2) 610.031 · Interest/Dividend Wells Fargo Total 610.026 · Int/Div Invest Accts Current 603.011 · Investments State Endowment - Other Total 603.011 · Investments State Endowment 603.014 · Gain/Loss on Investments TOTAL $ Over Budget % of Budget -710,066.00 0.0% -222,061.62 0.0% -932,127.62 0.0% -51,470.00 0.0% -41,307.51 19.74% -100,000.00 0.0% -100,000.00 0.0% -150,000.00 0.0% -118,500.00 21.0% -150,000.00 0.0% -150,000.00 0.0% -272,708.53 9.1% -799,823.00 0.0% -662,367.25 17.19% -421,101.93 0.06% -421,101.93 0.06% -421,092.61 0.06% -421,092.61 0.06% -1,555,483.00 0.0% -1,453,606.79 6.55% Page 9 of 13 Unaudited for Management Purposes Only
& Loss
Actual July 2022 through June 2023
Profit & Loss Budget vs. Actual
Accrual Basis
The Able Trust
TOTAL Ordinary Income/Expense662.000 · Realized Loss/Gain Invest-State Total 603.014 · Gain/Loss on Investments Total 603.008 · Investment Income 610.016 · Income Principal Stock 603.013 · Other Income 615.000 · Miscellaneous Income Total 603.013 · Other Income Total Income Gross Profit Expense 791.000 · Grant Writing 731.000 · Interest Expense 772.000 · Late Fees 808.600 · Able IF 2025 808.607 · Able IF 2023 Summit Planning 808.606 · Able IF Trainings & Events 808.605 · Able IF Think Tank 808.604 · Able IF Content Experts 808.603 · Able IF Innovation Grants & Pro 808.602 · Able IF Travel 808.601 · Data/Economic Analysis 808.600 · Able IF 2025 - Other Total 808.600 · Able IF 2025 701.002 · Compensation 701.000 · Salaries 701.220 · Severance Pay 701.230 · Cell Phone Reimbursement Total 701.002 · Compensation Payroll Expenses 701.200 · Payroll Processing/Reports Fee 701.250 · Finance, HR & Record Keeping 702.000 · Payroll & Unemployment Taxes 703.000 · Employee Health/Dental Ins. 703.001 · Employee Health Insurance 703.002 · Employee Dental Insurance Total 703.000 · Employee Health/Dental Ins. 703.100 · STD/LTD/Life Insurance 703.101 · Employee STD/LTD 703.102 · Employee Life Insurance Total 703.100 · STD/LTD/Life Insurance 704.000 · 401(k) Match & Expenses 710.000 · Staff Membership Dues 710.500 · Staff Training & Development 711.000 · Staff Travel & Outreach TOTAL $ Over Budget % of Budget -2,052,560.30 -3.83% -4,168,182.86 3.3% -4,168,182.86 3.3% -11,500.00 61.67% -20,000.00 0.0% -20,000.00 0.0% -20,000.00 0.0% -40,000.00 20.0% -250,000.00 0.0% -18,574.47 7.13% -55,739.50 44.26% -422,499.21 11.98% -447,884.22 38.65% -444,912.74 39.05% -1,054.75 12.1% -37,655.00 46.21% -45,402.38 32.16% -43,230.29 32.97% -3,865.64 15.4% -47,095.93 31.81% -6,488.83 8.88% -1,195.70 7.65% -7,684.53 8.69% -26,756.96 26.6% -9,109.72 39.27% -6,048.95 24.39% -18,685.49 37.72% Page 10 of 13 Unaudited for Management Purposes Only
July 2022 through June 2023
Profit & Loss Budget vs. Actual
Accrual Basis
The Able Trust
TOTAL Ordinary Income/Expense 712.000 · Webinars 713.000 · Research/Data Collection Projec 730.000 · Invest & Bank Account Charges 750.000 · Computers & Equipment 750.100 · Software & Licenses 755.000 · Endowment Funds/Invest Mgmt 755.625 · Endow-Griffith Holdings Fees Total 755.000 · Endowment Funds/Invest Mgmt 758.000 · Insurances - non-health 758.100 · Insurance - BOP,Auto,Event Canc 758.200 · Insurance - Liability Umbrella 758.300 · Insurance Directors & Officers 758.400 · Insurance Worker's Compensatio Total 758.000 · Insurances - non-health 765.000 · Legal 765.200 · Lobbying 766.000 · Audit & Tax 766.001 · Auditor Fee 766.000 · Audit & Tax - Other Total 766.000 · Audit & Tax 770.000 · Office Supplies 774.000 · Postage 775.000 · Printing 776.100 · Rent - Office Space 776.101 · State Storage Document Destruct 776.104 · Copier maintenance & ovrg fee 790.000 · Telephone/Internet 790.100 · IT Support 790.101 · IT Support - Form 1099-NEC 793.000 · Board Related Expenses 793.050 · Quarterly Meetings 793.003 · Committee Meetings 793.001 · Board Retreats Total 793.000 · Board Related Expenses 794.000 · CEO Program Management/Research 794.010 · CEO Meetings/Travel/Misc Exp. 794.030 · CEO Memberships Total 794.000 · CEO Program Management/Research 780.000 · DVR/Staff Events 781.000 · Other Support to DVR 802.010 · Donor Directed Grants 802.100 · Grant Obligations - HS/HT AT/VR 802.200 · Grants - HS/HT Continuation AT 802.300 · Grants - HS/HT VR Funded TOTAL $ Over Budget % of Budget -3,000.00 0.0% -158,897.27 21.8% -3,756.02 37.4% -864.94 95.33% -4,094.72 37.66% -1,452.51 32.31% -571.72 77.8% -2,279.39 0.0% -8,398.34 38.1% -2,447.00 2.12% -21,826.88 56.35% -29,950.00 0.0% -9,497.00 68.29% 2,017.80 167.26% -2,000.00 0.0% -39,000.00 35.0% -963.28 3.67% -1,343.17 55.23% -7,634.27 15.18% -9,282.50 22.65% -5,000.00 0.0% -12,000.00 0.0% -17,000.00 0.0% -7,839.94 47.73% 1,215.00 160.75% -6,624.94 61.03% -29,041.76 39.5% -69,609.89 0.56% -23,424.10 53.15% Page 11 of 13 Unaudited for Management Purposes Only
July 2022 through June 2023
The Able Trust
Profit & Loss Budget vs. Actual
Accrual Basis
TOTAL Ordinary Income/Expense 802.100 · Grant Obligations - HS/HT AT/VR - Other Total 802.100 · Grant Obligations - HS/HT AT/VR 803.303 · Grants - Sponsorsips 805.000 · Advertising 805.135 · Website Maint. & Updates 805.000 · Advertising - Other Total 805.000 · Advertising 805.110 · Collateral Material/Printing 805.122 · Solicitation License Renewal 805.300 · Fundraising & Donor Development 805.109 · Software/Credit Processing Fees 805.161 · Fundraising-Printing & Supplies 805.300 · Fundraising & Donor Development - Other Total 805.300 · Fundraising & Donor Development 807.100 · HSHT The Able Trust 807.146 · HS/HT Other 807.121 · HSHT Travel 807.160 · Travel-Vice President 807.121 · HSHT Travel - Other Total 807.121 · HSHT Travel 807.140 · HSHT Educational Materials 807.145 · HSHT Supplies & Postage 807.150 · HSHT Annual Training 807.200 · HSHT Student Initiatives 807.100 · HSHT The Able Trust - Other Total 807.100 · HSHT The Able Trust 807.600 · Disability Empl Awareness-DEAM 807.601 · DEAM Events 807.604 · DEAM-Printing & Supplies 807.600 · Disability Empl Awareness-DEAM - Other Total 807.600 · Disability Empl Awareness-DEAM 808.500 · ABLE Network 808.510 · Support to Regional Networks 808.515 · Projects & Consultants 808.520 · Resources & Supplies 808.500 · ABLE Network - Other Total 808.500 · ABLE Network 810.310 · Miscellaneous Expense 738.000 · Depreciation Total Expense Net Ordinary Income Other Income/Expense Other Income 603.015 · Gain/Loss Investments-Private TOTAL $ Over Budget % of Budget -946,000.00 0.0% -514,883.11 45.57% -9,500.00 52.5% -4,000.00 52.94% -330.00 90.57% -4,330.00 63.92% -250.00 0.0% -247.13 1.15% -12,173.93 18.84% -5,220.21 65.2% -1,000.00 0.0% -1,000.00 0.0% -28,350.75 5.5% -24,975.00 0.1% -58,978.09 18.09% -19,675.90 21.3% 3,092.07 112.37% -4,500.00 0.0% -2,057,696.35 36.56% -2,110,486.51 -97.85% Page 12 of 13 Unaudited for Management Purposes Only
July 2022 through June 2023
The Able Trust
Profit & Loss Budget vs. Actual
Accrual Basis
June
TOTAL Ordinary Income/Expense 662.001 · Realized Gain/Loss Invest-Priva 661.001 · Unrealized Gain/Loss Inv Privat Total 603.015 · Gain/Loss Investments-Private 602.001 · Endowments & Bequests 602.101 · Endowment Contrib-Private Accts 602.196 · Account Contribution McKeon 602.197 · Account Contribution Pettengill Total 602.101 · Endowment Contrib-Private Accts Total 602.001 · Endowments & Bequests 661.000 · Endow. Unrealized Loss/Gain 663.001 · Invest Private Endow Int/Div 663.194 · Invest Private-Int/Div-Gallimor 663.195 · Invest Private Int/Div-Hibbard 663.196 · Invest Private Int/Div-McKeon 663.197 · Invest Private Int/Div-Petteng 663.198 · Invest Private Int/Div-Thomas 663.199 · Invest Private Int/Div-Ward 663.192 · Invest Private Int/Div-LeRoy 663.001 · Invest Private Endow Int/Div - Other Total 663.001 · Invest Private Endow Int/Div Total Other Income Other Expense 730.501 · Managed Account Fees 730.502 · Managed Acct Able Trust Adm Fee Total Other Expense Net Other Income Net Income TOTAL $ Over Budget % of Budget -235,388.00 0.0% -217,252.28 7.71% 775,770.36 429.57% 756,365.52 421.33% -1,354,120.99 -3.99% Page 13 of 13 Unaudited for Management Purposes Only
July 2022 through
2023
FLORIDA ENDOWMENT FOUNDATION FOR VOCATIONAL REHABILITATION SPENDING POLICY STATEMENT
May 19, 2022
PURPOSE
The Florida Endowment Foundation for Vocational Rehabilitation (dba The Able Trust) is created by the Florida legislature as a direct-support organization of the Division of Vocational Rehabilitation, to encourage public and private support and as a long-term, stable, and growing source of revenue for the purpose of enhancing vocational rehabilitation and employment of Floridians who are disabled. It is the mission of The Able Trust to be a key leader in providing successful employment opportunities for Floridians with disabilities.
The purpose of a spending policy is to resolve the tension between the competing goals of preservation of an endowment and stability in budgetary support. The Able Trust Finance Committee has a fiduciary responsibility to review this policy each year and, if necessary, make recommendations for change to the full board of directors for approval.
SCOPE OF THIS INVESTMENT POLICY
This policy applies to all endowment funds and endowment spending accounts. Exceptions to this policy may only be made when adhering to specific requirements of donor advised funds.
Any unused funds at the end of the fiscal year will remain in the operating account unless the donor agreement stipulates otherwise. The Board of Directors may direct that the unused spending be transferred back to the endowment investment fund.
SPENDING POLICY RATE
The policy spending rate for the endowment funds will be as follows:
FY22 – 8% of assets determined on December 31, 2020
FY23 – 7% of assets determined on December 31, 2021
FY24 – 6% of assets determined on December 31, 2022
FY25 and henceforth – 5% of assets determined on December 31, 2023, and each December 31st of future years.
ADOPTION
The Board adopted this Spending Policy Statement on the 19th day of May, 2022.
Page 1 of 1
Office of the Inspector General
The Florida Endowment Foundation for Vocational Rehabilitation, Inc., dba The Able Trust
Report # A-2223DOE-001
Executive Summary
February 2023
In accordance with the Department of Education’s fiscal year (FY) 2022-2023 audit plan, the Office of the Inspector General (OIG) conducted an audit of the Memorandums of Understanding, SA-519 and IA-865, between the Division of Vocational Rehabilitation (DVR) and the Florida Endowment Foundation for Vocational Rehabilitation, dba The Able Trust. The purpose of this audit was to determine compliance with the MOUs; Section 413.615, Florida Statutes; and any other policies or procedures established by the Division. During this audit we noted that The Able Trust generally operated within statutory compliance and adhered to the MOUs with the Division However, we noted that The Able Trust Board of Directors has not conducted annual formalized evaluations of its funded programs as required by statute, although it has conducted extensive monitoring for its High School High Tech program. The Audit Results section below provides details of the instances noted during our audit.
Scope, Objectives, and Methodology
The scope of our audit included a review of the Memorandums of Understanding (MOUs) and amendments in order to determine the compliance with the MOUs; Section 413.615, Florida Statutes; and other policies established by the Division from July 1, 2021, through the end of fieldwork. We established the following objectives for our audit:
1. Determine if The Florida Endowment Foundation for Vocational Rehabilitation, Inc., dba The Able Trust is complying with Section 413.615, Florida Statutes, and Memorandums of Understanding (MOUs) SA-519 and IA-865; and
2. Determine if The Florida Endowment Foundation for Vocational Rehabilitation, Inc., dba The Able Trust is providing direct support to the Division of Vocational Rehabilitation (DVR) to enhance vocational rehabilitation activities.
To accomplish our objectives we reviewed applicable laws, rules, and regulations; reviewed Memorandums of Understanding SA-519 and IA-865; reviewed Section 413.615, Florida Statutes; interviewed appropriate department and Able Trust staff; reviewed policies, procedures, and related documentation; reviewed the Able Trust bylaws; and reviewed the goals of the threeyear Strategic Plan of The Able Trust. Our methodology also included:
1
• Reviewing published information on The Able Trust’s website to determine if the information is in compliance with requirements specified in s. 413.615(9)(k) F.S.;
• Reviewing Board and committee meeting minutes for discussion of monitoring of funded programs;
• Reviewing expenditures from the operating account, direct support funding levels, and budget requirements;
• Reviewing grants and contracts the Board entered into for fiscal year 2021-22;
• Reviewing gifts and donations made and received by the board for fiscal year 2021-22;
• Reviewing program support outlined in The Able Trust’s strategic plan established to assist persons with disabilities; and
• Reviewing the calculated percentage of administrative costs, as a component of the total Able Trust operating expenses, to confirm statutory compliance.
Background
The Able Trust was created as a direct support organization for the Division of Vocational Rehabilitation, to encourage public and private support to enhance vocational rehabilitation and employment for citizens with disabilities Section 413.615(b) F.S., stipulates that an endowment fund account is established within the Florida Endowment Foundation for the Division of Vocational Rehabilitation (DVR) within the Department of Education (DOE) to provide a continuing and growing source of revenue for vocational rehabilitation efforts. According to The Able Trust’s annual report summarizing fiscal year 2021-2022, the endowment fund amounted to $18,334,925 as of June 30, 2022, given a loss of 15 percent during the year due to “volatile market conditions.” The annual report from the previous year – fiscal year 2020-2021
illustrates a value of $22,846,320 as of June 30, 2021. Despite its large endowment fund, The Able Trust serves a limited number of Floridians with disabilities through its grant programs.
The Able Trust’s mission is to provide opportunities for gainful employment for Floridians with disabilities. Section 413.615(9)(b), F.S., states the Able Trust board may solicit and receive grants. The statute further stipulates, in s. 413.615(9)(e) F.S., that the board may make gifts or grants to various parties including “any public agency of state or local government” or “any citizen who has a documented disability ” Section 413.615(9)(f) F.S., states, “The board may advertise and solicit applications for funding and shall evaluate applications and program proposals submitted thereto.” The Able Trust offers few grant programs that serve Floridians with disabilities beyond the High School High Tech program. Per its annual report for fiscal year 2020-2021, The Able Trust provided general training and support services “to thousands of Floridians across the state and helped 263 individuals with disabilities participate in established grants programs that provided targeted employment skills development and training…” For fiscal year 2021-2022, The Able Trust served 1,076 total students through HSHT and 226 individuals with disabilities per the annual report.
The Able Trust’s Memorandum of Understanding with the Division of Vocational Rehabilitation states the purpose of The Able Trust is to encourage public and private support to enhance vocational rehabilitation and employment of citizens who are disabled. The latter stipulation could include assisting Floridians with disabilities through grant programs. The Able Trust has determined not to offer new grants in the near future as they work to implement a three- year strategic planning process aimed at developing impact models and programming. The fiscal year
Report # A-2223DOE-001 February 2023 2
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2020-2021 Able Trust annual report states that, “new grants were not issued for Fiscal Year 2021 as its new board was appointed in the second quarter of the year and felt it prudent to go through the 3-year strategic planning process prior to issuing new grants.” Aside from the contract for High School High Tech, The Able Trust served a limited number of students with disabilities in both FY 2020-2021 and FY 2021-2022.
Direct contributions to the Division of Vocational Rehabilitation from The Able Trust in fiscal year 2021-2022 amounted to $87,566 for staff training and development for DOE/DVR staff This is more than double the $38,281 contributed to DVR in fiscal year 2020-2021. However, this represents less than three percent of their total expenditures. We recommend DVR provide greater guidance to The Able Trust to enhance the opportunities to provided increased direct support to DVR.
Fundraising activities and revenue has accelerated through The Able Trust’s efforts from just over $383,736 for fiscal year 2021-2022 to a projected figure of $600,000 for fiscal year 20222023. This represents a small portion of The Able Trust’s total endowment, and DVR could provide additional guidance to The Able Trust regarding specific fund raising programs and opportunities.
Finally, as required by statute, Able Trust’s administrative costs cannot exceed 15 percent of its total operating expenses. Since its last review by the FDOE Office of the Inspector General, The Able Trust has lowered this percentage through reductions in three expenditure areas that include officer salaries and related payroll costs, legislative consultant costs, and board-related expenditures Administrative costs from our review fell just below the statutory limit of 15% Finding opportunities for additional direct support spending would further reduce the percentage of administrative expenses.
Audit Results
Finding 1: The Able Trust Board of Directors did not provide effective annual evaluations of funded programs pursuant to statutory requirements.
Section 413.615(9)(g), Florida Statutes states, “The Board shall monitor, review, and annually evaluate funded programs to determine whether funding should be continued, terminated, reduced, or increased.” While we observed evidence of monitoring of the High School High Tech (HSHT) program through quarterly reporting submitted to the Division, we found no formal annual evaluation by the Board of Directors for Able Trust funded programs. The Able Trust has included summary information on its grant programs in its required annual reports for both fiscal years 2020-2021 and 2021-2022, but they have not provided a comprehensive evaluation, by the Board, of all of its funded programs There was no particular reason provided, for the absence of an annual evaluation of funded programs.
While Able Trust’s HSHT monitoring sufficiently documents the number of persons served through this program, there is no formalized reporting of this program’s full impact for assisting high school youth in obtaining relevant job skills and experiences and replicating program outcomes toward serving other individuals with disabilities. Information on strategic outcomes,
Report # A-2223DOE-001 February 2023 3
made by recipients of its programs, becomes limited absent an annual evaluation Not performing the required annual evaluation hinders The Able Trust’s ability to make decisions on how funding should be allocated in order to provide direct support to the Division of Vocational Rehabilitation and individuals with disabilities. Further, the annual program evaluation should provide a means of determining the best impact models that would serve Florida’s individuals with disabilities seeking gainful employment. The Able Trust is currently developing models for programming aimed at assisting Floridians with disabilities and is developing this through contracts with private consultants and through its strategic plan
Recommendation
We recommend The Able Trust Board of Directors conduct an annual evaluation of funded programs pursuant to Section 413.615(9)(g), Florida Statutes
Able Trust Management Response
Concur. The Able Trust Board of Directors will address this finding in the following ways:
1. Establish a formalized process with the Board Grant Committee for providing effective annual evaluations of funded programs pursuant to statutory requirements. This process will include a means of determining the best impact models that would serve Florida’s individuals with disabilities seeking gainful employment. The anticipated completion date is February 28, 2023.
2. Conduct annual evaluations of funded programs for FY 2022 – 2023. Use the evaluation data to select/award grants for FY 2023- 2024. The anticipated completion date is June 30, 2023, and ongoing for future fiscal years. 1
Closing Comments
The Office of the Inspector General would like to recognize and acknowledge The Able Trust and Division of Vocational Rehabilitation for their assistance during the course of this audit. Our fieldwork was facilitated by the cooperation and assistance extended by all personnel involved.
To promote accountability, integrity, and efficiency in state government, the OIG completes audits and reviews of agency programs, activities, and functions. Our audit was conducted under the authority of section 20.055, F.S., and in accordance with the International Standards for the Professional Practice of Internal Auditing, published by the Institute of Internal Auditors, and Principles and Standards for Offices of Inspector General, published by the Association of Inspectors General. The audit was conducted by James Russell and supervised by Bradley Rich, Audit Director.
Please address inquiries regarding this report to the OIG’s Audit Director by telephone at 850-245-0403. Copies of final reports may be viewed and downloaded via the internet at https://www.fldoe.org/about-us/office-of-the-inspector-general/audit-reporting-products.stml. Copies may also be requested by telephone at 850-245-0403, by fax at 850-245-9419, and in person or by mail at the Department of Education, Office of the Inspector General, 325 West Gaines Street, Suite 1201, Tallahassee, FL 32399.
1 The Able Trust included a cover letter to their management response. Please see Attachment A.
Report # A-2223DOE-001 February 2023 4
Ability Week
Margaritaville Resort Orlando
Board Activities At-A-Glance
Tuesday, February 28th
• 1:00 – 5:00 PM Board Retreat, Continental Drifter
• 5:30 – 6:30 PM High School High Tech Awards Reception, On Vacation Terrace
• 7:00 – 9:00 PM Board Dinner, Estefan Kitchen (Walking Distance or Hotel Shuttle)
Wednesday, March 1st
• 8:00 – 9:00 AM Project Venture Networking Breakfast, Compass North
• 9:00 – 11:00 AM Project Venture Competition, Compass North
• 11:30 AM – 2:00 PM Board Business Meeting (lunch included), Continental Drifter
Special Notes
• Dress for Tuesday activities is business casual.
• Dress for Wednesday activities is business attire.
• We encourage you to mingle with the Project Venture teams and guests on Wednesday morning. Many guests are current or prospective donors. We will give you some notes at the end of Tuesday on those we’d like for you to seek out with a word of welcome/thank you.
• You are welcome to store luggage in the board meeting room, Continental Drifter, on Wednesday morning.
• The Able Trust Travel Reimbursement Form and Travel Policy are included in your board meeting materials. Please return the reimbursement form with your signature to Arnaldo Ramos for any allowable expenses exclusive of your hotel room and meals provided during our events (i.e., mileage, airfare, bellman and maid tips, etc.)
