Final 2013 results and investment options

Source scan page 2

2013 Final To Fite
From: grceman <grceman@aol.com>
To: grceman <grceman@aol.com>; robert.luthardt < robert.luthardt@verizon.net?; cc.Law5on
cc. Lawson@verizon.net>; Lilulu57 < Lillulu57@aol.com>; koss.gab <koss.gab@verizon.net=; gillian. 2020
<gillian.2020@yahoo.com>; dndyost <dndyost@verizon.net>
Cc: grceman <grceman@aol.com>; hermosabeachfol <hermosabeachfol@gmail.com>
Subject: HB FOL 2013 Final Financials and 2014 Planning Budget
Date: Wed, Jan 8, 2014 12:24 am
Attachments: HB_FOL_Financials_Report_ 2013_Final_ 20140106.x/s (597K)
I will be out of town for the January Board meeting so the Treasurer information is being provided as part of this email.
Attached please find the Excel workbook with tabs representing the Operations_Status_2013 (Final Financials Summary)
and the Plan_Budget_2014 (Planning Budget)
With regard to a Treasurer's report, please note the following: Year-End Financials
1. Total year-end revenue was essentially equal to the 2013 Plan/Budget estimate.
Total year-end expenses exceeded the plan/budget by~$1000, primarily as a result of the $2700 expenditure for
the new Bookstore roof Skylites (unplanned). As predicted, there was a significant catch-up in the fourth quarter,
particularly wrt Library Books. The 2013 Plan was a reasonably accurate estimate of overall expenses for the year.
3. A 2014 Plan/Budget was generated based on an assessment of 2013 Financials (and preceding years, Individual
revenue and expense line items are included in the workbook
Other
1. November Board Meeting Action re: Investment Accounts: Our Morgan Stanley account representative (Daniel
Correa was contacted and the current situation with regard to our asset accounts was discussed. Mr Correa
agreed completely that keeping the collective FOL investment assets in bond funds (and some cash) was not
recommended in the current and expected near term economic environment. I requested recommendations for a
path forward. Subsequently, he preparred and forwarded a package describing a financial management team and
an investment approach. His email with attacments was shared with several board members After reviewing the
package, I contacted Mr Correa and asked for further information about the process, the fees, etc. The process is
straightforward - tell him what we want to do and it will be executed forthwith The fees are a flat rate of 1.5% for
the professional management services (a 50% reduction to the normal 3% fee because we're a non-profit
organization). He recommended three investment vehicles: a) for the long term (3-7 years), a Large Cap Core
Stock Grouping (not a fund); b) for the mid term (2-3 years), a structured Product Portfolio (managed downside
risk; and for the short term, a money market fund. For discussion purposes, we talked about the following
allocations: a) ~$80K, b) ~$40K, c) balance, ~$10K. If anyone has thoughts or comments, please let me know via
email. I will be out of town until the first week in February.
2. The FOL Liability Insurance premiums were paid and the policy renewed for 2014. The policy is in the 2nd drawer
of the file cabinet.
If I think of anything else noteworthy, I'll send a follow-up email.
Cheers
George PS Carol - could you please print out a copy of the first two tabs in the workbook so that can be reviewed/ discussed at
the board meeting? Thanks
----Original Message----
From: George <grceman@aol.com>
To: <robert. luthardt@verizon.net < obert.luthardt@verizon.net; Carol <cc.Lawson@verizon.net>; Dianne
<Lillulu57@aol.coms; Gabor Kossuth <koss.gab@verizon.neD; < gillian.2020@yahoo.com><gillian.2020@yahoo.com>
Cc: George Ceman <grceman@aol.com>
Sent: Thu, Dec 19, 2013 8:31 pm
Subject: Fwd: HB FOL 2013 Final (Prelim) and 2014 Prelim Budget