BHEF FY21, Q1 December Board Of Directors Meeting Materials 1

BHEF Board of Directors Meeting, FY21, Q1, December 11, 2020 BHEF Board of Directors Meeting December 11, 2020 12 :00 p.m. – 2:00 p.m. EST Please join the video conference using this link. Meeting ID: 981 6322 0598 Password: 735649 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 Board of Directors Meeting Minutes – Mike King 3.Chief Executive Officer’s Report – Brian Fitzgerald 4.Discussion a. BHEF Business Model Development Ad Hoc Committee Task Force Update b.Defining Value, Stakeholders, and Goals c. Next Steps 5.Closing Remarks – Mike King 1:30 p.m. Executive Session BHEF Board of Directors Meeting, FY21, Q1, December 11, 2020 BHEF Board of Directors Meeting Zoom Board Meeting Details December 11, 2020 Topic: BHEF Board of Directors Meeting - 2/4 Time: Dec 11, 2020 12:00 PM Eastern Time (US and Canada) Join Zoom Meeting https://zoom.us/j/98163220598?pwd=dnhmaDBleXhUeDAyNG5Ud2VTdW9kdz0 9 Meeting ID: 981 6322 0598 Passcode: 735649 One tap mobile +13126266799,,98163220598#,,,,,,0#,,735649# US (Chicago) +16465588656,,98163220598#,,,,,,0#,,735649# 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 6322 0598 Passcode: 735649 Find your local number: https://zoom.us/u/ach5mOMJZ Tab 1 – FY21 Q1 Board of Directors Meeting Minutes BHEF FY2021, Q1 Board of Directors Meeting Minutes | 1 BHEF Board of Directors Meeting October 29, 2020 2:0 0 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 2:00 p.m. He welcomed members and provided an overview of the agenda focused on productizing BHEF market intelligence and digital skills to create an alternative revenue stream, congratulated BHEF on winning the award for the ECMC grant, and noted the parity between membership dues and grants and donations. King mentioned a new BHEF business model subcommittee created to address the productizing concept and noted their findings will be presented at the December 11, 2020 Board meeting. Approval of the FY20 Q4 Board of Directors Meeting Minutes Woodson asked for a motion to approve the FY20 Q4 Board of Directors Meeting Minutes. The motion was made and seconded. The Board unanimously approved the minutes. Chief Executive Officer’s Report Before taking the Board through the CEO’s Report, Brian Fitzgerald reminded the Board that BHEF used Rising to the COVID-19 Challenge to further solidify BHEF as a national leader in digital reskilling and to find new ways to partner with funders. The BHEF action plan consisted of the following: • 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. BHEF FY2021, Q1 Board of Directors Meeting Minutes | 2 • Expand. BHEF’s national thought leadership in diversity, equity, and inclusion. • Use. BHEF’s national leadership in talent development. • 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 reported on BHEF’s FY20 COVID leadership success and how continued funding positioned BHEF as a national 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 six projects to address problems presented by COVID. o One of the six Big Bets was the Equity Cities Network, which will promote equitable and inclusive economic and workforce growth. o Emsi market analysis and the Strada presentation executive summary were critical components to the productizing discussion with IBM. • Advanced a partnership with Ellucian to engage companies in a coalition providing undergraduate scholarships to mitigate the financial impact of the COVID crisis. • BHEF submitted COVID response proposals to Strada and ECMC for digital reskilling credentials replication in New England. • With BHEF staff, Fitzgerald co-authored a journal article highlighting BHEF's market intelligence and research on barriers to reskilling and skills-based hiring. • BHEF published a BHEF-Business Roundtable (BRT) Workforce Partnership Initiative replication guide and case studies to enable business and higher education to proactively address the surge in demand for reskilling in the wake of COVID. Laura Ipsen briefed the Board further on the BHEF-Ellucian partnership. Supporting Strada’s Equity Cities Network Brian dove further into the details of BHEF’s work on Strada’s Equity Cities Network. BHEF secured a planning grant to assess regions' suitability for multi-year Strada investments in COVID-response inclusive growth initiatives. BHEF helped Strada vet and prepare risk assessments of the six potential investment sites: Atlanta, Ft. Collins, Hartford, Houston, Milwaukee, St. Louis, and San José. BHEF FY2021, Q1 Board of Directors Meeting Minutes | 3 Strada team lead indicated they envisioned funding two national intermediaries, including BHEF. In the proposed role, BHEF would provide technical assistance to build regional intermediaries' capacity in selected regions, enabling BHEF to maximize the impact of Strada's investments. BHEF prepared a multi-year proposal for submission in Q2. Fitzgerald walked the Board through a series of Emsi analytic data for one of the potential Strada site to show the Board an example of the quality of information BHEF obtained from Emsi. Fitzgerald proposed that Emsi analytics would aid BHEF in providing an additional tool for monetizing BHEF’s market intelligence. Deploying Digital Credentials to Reskill Adults In September 2020, The ECMC Foundation awarded BHEF a $341,000 grant to develop credentialed digital pathways to reskill workers displaced by COVID-19 in Connecticut, with BHEF members Stanley Black & Decker as a lead employer. Over 18 months, BHEF partnered with various institutions in business, higher ed, and government in Connecticut to design and launch academic pathways leading to credentials in high-demand areas. BHEF worked closely with the Connecticut Workforce Council aligning the tracks with growing economic sectors. Responding to Innovation and National Security Talent Needs Fitzgerald reported that a BHEF member expressed concerns about graduate enrollment due to shifting immigration laws and COVID travel restrictions. BHEF could play a unique leadership role to coalesce its business and academic members around both federal policy initiatives to incentivize more U.S. STEM graduates to undertake Ph.D. programs and innovative new models for accelerated Ph.D. education in STEM and other high-demand fields. Academic board members validated the issue's critical status and agreed that BHEF could play a key leadership role. Diversity, Equity, and Inclusion BHEF Board and its members, individually and collectively, adopted DEI as a priority and took steps to advance DEI with its work. A planned Spring 2020 Member Meeting focused on DEI will host the release of a thought leadership report with PwC’s Tim Ryan, founder of the CEO Action for Diversity and Inclusion pledge. Fitzgerald noted the steps BHEF implemented internally, including additional PTO to volunteer for organizations addressing DEI, matching donations to these organizations, staff training, and workshops on systemic racism and unconscious bias. Fitzgerald then asked for a motion from the Board to approve his signature to the CEO Action for Diversity and Inclusion pledge and allow BHEF to execute the pledge components with assistance from PwC staff. Marty Martin moved. It was seconded and unanimously approved. BHEF FY2021, Q1 Board of Directors Meeting Minutes | 4 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 • Semi-annual member meetings • Exclusive market intelligence • Tailored analysis through Emsi analytics • BHEF staff expertise to assist members outside of the larger projects at BHEF BHEF Communications BHEF increased its LinkedIn presence with testimonial videos and released publications focused on the Workforce Partnership Initiative. Ensuring BHEF’s FY21 Financial Stability Fitzgerald reviewed the quarterly fundraising targets timeline and described the ways BHEF cut down on spending internally to help alleviate the cash flow issues presented by COVID. Spring 2021 Member Meeting Fitzgerald turned it over to Danielle Troyan to discuss the spring 2020 member meeting. The meeting focused on DEI. Troyan described the first session’s design and purpose focused on the business sector's pledges and actions that potentially led to effective change and provided BHEF members with the opportunity to learn from DEI leaders and discuss ways their institutions virtually met the call to change. Session II, planned to start with a roundtable discussion led by a DEI expert to educate members on best and worst practices from a different lens. The conversation focused on how higher education could help implement successful career pathways and community and business partnerships to benefit socially and economically disadvantaged minority students. The Board reaffirmed its commitment to DEI. Membership Troyan reported on behalf of Jeff Armstrong, who was unable to attend. BHEF has 48 members; eight members opted not to renew because of COVID budget cuts. BHEF’s dues revenue target drastically decreased for FY21. However, BHEF gained four new members who are actively engaged. Troyan reiterated the benefits BHEF provides its members and reminded the Board that actively engaged members continue to receive value from BHEF’s offerings to make the dues worthwhile. Troyan thanked the Board for their valued input and member nominations. BHEF FY2021, Q1 Board of Directors Meeting Minutes | 5 Finance and Audit Committee Report As of September 30, Fitzgerald reported $3.155m with $1.6m in membership revenue and about $1.55m in grants. Operational total expenses were $3.217m. BHEF took rigorous cost- cutting measures. BHEF accessed a $250,000 loan from the Paycheck Protection Program. This loan will be converted into a forgivable grant once the bank opens the applications for loan forgiveness. This will shift the $250,000 to 2020 revenue or possibly 2021 revenue. Closing Remarks The meeting went into executive session at 4:30 p.m. These minutes were certified on: __________________, 2020. By: Brian K. Fitzgerald BHEF Secretary __________________________________ Tab 2 – Chief Executive Officer’s Report Rising to the Challenge: Demonstrating National Leadership in Response to the COVID-19 Education and Reskilling Crisis CEO Report Board of Directors Meeting December 11, 2020 Rising to the COVID-19 Challenge Strengthen BHEF’s brand as a national leader in digital reskilling and partner with private funders to deploy digital credentials as a means of responding to COVID-19. Enhance BHEF’s position as a national leader in deploying digital-reskilling solutions that develop robust ecosystems by capturing BHEF’s proven methods in more polished materials and 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 recovery and emerging innovation and national security talent needs. Use Partner with Ellucian to lead a national coalition of companies providing COVID aid to undergraduates in need. 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 enter intostrategic partnerships with aligned organizations with access to additional funding sources to advance BHEF’s strategic vision. Shift ©2020 BHEF 2 FY20 COVID 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,” which will promote equitable and inclusive economic and workforce growth. •Advanced a partnership with Ellucian to engage companies in a coalition providing undergraduate scholarships to mitigate the financial impact of the COVID crisis. •Submitted COVID response proposals to Strada and the ECMC Foundation for digital-reskilling credentials replication in New England with the New England Board of Higher Education, other partners, and regions. •Co-authored a journal article highlighting BHEF’s market intelligence and research on barriers to reskilling and skills-based hiring. •Published a BHEF-Business Roundtable (BRT) Workforce Partnership Initiative replication guide and case studies to enable business and higher education to proactively address surge in demand for reskilling in the wake of COVID. ©2020 BHEF 3 Supporting Strada’s Equity Cities Network Securing BHEF’s role as a national thought leader in building the capacity of regional intermediaries to drive equitable, inclusive post-COVID economic and workforce growth: •On Nov. 13, BHEF submitted final deliverable on a Strada planning grant to assess the suitability of regions for multi-year Strada investments in COVID-response inclusive growth initiatives. •BHEF conducted a rigorous quantitative and qualitative assessment of seven regions, integrating employment and workforce data with interviews of more than 70 individuals. •The deliverable provided aRegional Assessment Dashboard that integrates multiple data sources into a single graphic that captures each region’s “goodness of fit” on each assessment criterion for simple comparisons or differential weighting. •Regional snapshots provided synopses of each region highlighting opportunities and risks, and more comprehensive regional summaries with exhaustive workforce, educational attainment gap, and labor market analyses that identify structural inequalities and potential high growth sectors with entry-level, living-wage jobs. ©2020 BHEF 4 Continued onnext slide Supporting Strada’s Equity Cities Network (continued) Securing BHEF’s role as a national thought leader in building the capacity of regional intermediaries to drive equitable, inclusive post-COVID economic and workforce growth: •BHEF Strada team will select initial region and BHEF is supporting the team to vet regions internally with selections finalized in 2020. •BHEF is in discussion with the Strada team regarding a role in implementation, potentially providing technical assistance to build capacity of regional intermediaries in selected regions, enabling Strada to maximize the impact of its investments. •Submission of a proposal to Strada is planned for Q2, though the scope and duration are yet to be determined. ©2020 BHEF 5 Deploying Digital Credentials to Reskill Adults The ECMC Foundation awarded BHEF a grant to reskill under- and unemployed adults in Connecticut with BHEF member Stanley Black & Decker as lead employer. •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. •Over an 18-month period, BHEF will partner with the New England Board of Higher Education, 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 aligning the pathways with growing economic sectors, particularly advanced manufacturing, health care, financial services, and technology. •This project will be included among the regional sites in BRT’s Workforce Partnership Initiative with Stanley Black & Decker in the lead and will afford opportunities for BHEF to grow its membership with participating companies and academic institutions. ©2020 BHEF 6 NSF Spectrum Innovation Initiative Former BHEF member Linda Katehi, Dean of Engineering at TAMU, 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 that will propose a research agenda and process for using market intelligence to create innovative new Spectrum curricula and credentials for specialists (scientists and engineers), enabled professionals (policy, legal, business, economics), and technical staff (technicians, installers). •Research and planning have been underway since early fall. Spectrum is rapidly growing, but no literature or occupational codes exist for Spectrum jobs, so research involves creating new knowledge and frameworks. •BHEF has led outreach to experts and potential partners including BHEF members GlobalFoundries, Stanley Black & Decker, and UVA, as well as prospective member NC A&T. •Implementation proposal for Center development is due to NSF at the end of March. One $25M grant is available. •If funded, BHEF will play a leading role in 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 7 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 joint thought leadership report on DEI. •BHEF will focus its Spring 2021 Member Meeting on DEI and will release a thought leadership report with PwC 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 taking actions to equip 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 the COVID pandemic has accelerated these workforce trends and call for re-envisioning American workforce development strategies to address employers’ imperatives for a diverse and inclusive workforce for the 21 st century. ©2020 BHEF 8 Enhancing Member Value BHEF members receive a robust member benefit portfolio with access to: •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. •Exclusive market intelligence delivered through BHEF publications and monthly insights. •Tailored Analysis.Members can access Emsi analytics with integrated data on education, traditional 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. •BHEF Staff Expertise. Staff are available to members for: oSpeaking to students, faculty, employees, and executives on an array of topics, such as the future of work. They are uniquely positioned to provide insights on the relationship between education and industry. 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. oProducing timely webinars and panels on member-driven topics. ©2020 BHEF 9 BHEF Communications BHEF created four case studies based on Workforce Partnership Initiative (WPI) sites. ©2020 BHEF 10 This document is part of a series of case studies on the WPI projects, which will eventually cover six of the nine partnerships: Chicago, D.C.-Maryland-Virginia, Milwaukee, North Carolina, New York City, and the Southeast. The case studies developed this quarter focused on Chicago, 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 COVID-impacted adults in Hartford—a Workforce Partnership Initiative site—and other parts of Connecticut. •Seeking to supplement its multi-year grant from the JPMorgan Chase Foundation or a funding partner to support additional regional projects for the Workforce Partnership Initiative, e.g., CT (Q2). •Shift BHEF’s fundraising strategy to mitigate the effects of the pandemic on under- and unemployed adults and build new revenue streams such as offering fee-for-service programming and partnerships with aligned organizations with access to additional funding sources. Q4Q3Q2Q1 JPMorgan Chase follow-on grant in support of WPI Strada Education Network—Support for Strada’s Equity Cities Network Lumina Foundation; James Irvine Foundation; Gordon and Betty Moore Foundation; W.M. Keck Foundation FY21 Fundraising targets by quarter include: ©2020 BHEF 11 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 an array of 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 Potential Speakers Eric Kelly, chairman and CEO, Overland Tandberg •Mohamad Ali, CEO, IDG •Leanne Caret, Executive Vice President and CEO, Defense, Space & Security •MellodyHobson, co-CEO and President, Ariel Investments, LLC •Kenneth Lin, CEO, Credit Karma •Tim Ryan, US chairman and senior partner, PwC (confirmed) Continued onnext slide ©2020 BHEF 12 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. This sessionwill look at 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.). Potential Moderator Potential Speakers Rashad Robinson,president, Color of Change •Irma Becerra, president, Marymount University (confirmed) •Maria Martinez, EVP and chief customer experience officer, Cisco •Adela de la Torre,president, San Diego State University (confirmed) ©2020 BHEF 13 1:50 p.m.Closing Remarks •Mike King, BHEF Chair 2:00 p.m. Adjourn Business Model Development Ad Hoc Committee and Member Discussion Objective ©2020 BHEF 15 To create a framework and strategies for BHEF that maximizes value to our members, enhances our capabilities and thought leadership, and strengthens our financial position and brand recognition. Timeline ©2020 BHEF 16 Kick-Off Meeting November 24, 2020 Board Presentation March 29, 2021 Draft Framework February 28, 2021 Board Discussion December 11, 2020 Committee Meetings & Strategy Development Committee Members ©2020 BHEF 17 Membership •Steven McKnight, Vice President of Strategic Alliances, Virginia Tech •David Metnick, Managing Director, Health & Public Service, Accenture •Mick Slivecko, Global Market Development & Alliances Executive, Government, Education & Learning Industry, IBM •Andrew Tein, Vice President, Government Affairs, Wiley Lead Staff •Jennifer Thornton, Vice President of Programs, BHEF As BHEF considers new opportunities to expand stakeholder value, the ad hoc committee and staff seek input from the board on the following: •What is BHEF’s unique value proposition and is it influenced by COVID? What’s most important for increasing BHEF’s real and perceived value? •Examples: thought leadership, convening, talent ecosystem development •Who are BHEF’s most important customers beyond our members? How do these stakeholders influence BHEF’s value proposition? •Examples: funders, partners, etc. •What are the capabilities BHEF should develop (or maintain)? •Examples: facilitating business-education partnerships, credential design, identification of high growth fields, publications •What are the small, medium, and large opportunities to which BHEF should aspire? •Examples: productization, strategic partnerships, membership growth Discussion Questions ©2020 BHEF 18 Discussion Tab 3 – Finance and Audit Report BHEF Board of Directors Meeting, FY21, Q1, December 11, 2020 To: BHEF Board of Directors From: Brian Fitzgerald Date: December 11, 2020 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 FY21 Forecast and Financials through October 31, 2020 • BHEF Cash Position Update • Investment Fund Report • FY2020 IRS Form 990 Filing Update on FY21 Forecast and Financials through October 31, 2020 1 As of October 31, 2020, the date of the last financials available, BHEF received $ 508,934 in revenue, which included $500,000 in membership dues, and $8,934 in grants and donations. Expenses on October 31, 2020 totaled $ 204,312. 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 via SunTrust/Truist Bank in the amount of $249,800. While these funds are reflected on the financial statements as a loan and not included in the revenue numbers reflected above, BHEF is prepared to submit the documents needed to convert that loan into a forgivable grant once the bank opens the loan forgiveness portal. BHEF has expended the funds in accordance with the SBA guidelines. Once approved, those funds will be reallocated to revenue. Cash Position Update As of October 3 1, 2020, BHEF’s operating cash balance in SunTrust/Truist Bank was $1,170,624.59 and $54,090.72 in Sandy Springs Bank savings account. Investment Fund Report The value of the BHEF Investment Fund as of September 30, 2020 was $ 1,086,204. This represents an increase of three percent compared to June 30, 2020 when funds were $1,062,431. BHEF’s investment portfolio included $1,086,204 in Vanguard self-managed LifeStrategy Income Fund, with 80 percent of the managed portfolio in bonds and 20 percent in stocks. 1 Unaudited cash-basis statements from BHEF’s accountants. BHEF Board of Directors Meeting, FY21, Q1, December 11, 2020 FY20 Audit and IRS Form 990 Filing BHEF’s auditors, Rubino & Company Chartered, will begin the FY20 audit and Form 990 on December 7, 2020. It is expected that the audit of the financial statements and A-133 will be complete by mid-February 2021. It is also expected that the firm will complete BHEF’s form 990 and file by March 15, 2021. The Board will be provided with drafts of those documents once complete. ATTACHMENT A Business-Higher Education Forum Projected Q1 - FY21 at October 31, 2020 Approved FY2021 Actual at October 30, 2020 YE Projection 9-30-2021 Operating Net Assets Unrestricted Revenue: 200 Membership - Revenue2,000,000$ 500,000$ 1,500,000$ 300 Conferences -Revenue-$ -$ -$ 520 JPMC - Revenue-$ -$ -$ 521 WPI - Revenue100,000$ -$ 100,000$ 525 Google - Revenue-$ -$ -$ 530 ECMC Revenue341,000$ -$ 525 STRADA Revenue-$ -$ 555 Texas A&M Revenue-$ 975$ 75,337$ 565 Georgia Tech Revenue-$ -$ 32,879$ HEWI Revenue:450,000$ 7,959$ 107,959$ New Project - STRADA - $250,000-$ New Project - OTHER - 200,000 ------------------------------------------------------ TOTAL OPERATING NET ASSETS2,891,000$ 508,934$ 1,816,175$ -------------------------------------------------------------------------------- Expenses 110 Administration - Expenses607,250$ 35,076$ 607,250$ 200 Membership - Expenses335,079$ 21,620$ 298,561$ 250 Grants - Expenses57,695$ -$ 57,695$ 300 Conferences - Expenses233,040$ 961$ 133,040$ 500 Communications - Expenses212,760$ 6,873$ 187,542$ 520 JPMC - Expenses167,565$ 24,439$ 201,514$ 521 WPI - Expenses135,077$ 2,594$ 135,077$ 525 Google - Expenses56,750$ 6,075$ 56,750$ 530 ECMC - Expenses-$ 8,216$ 164,550$ 525 STRADA - Expenses-$ 66,440$ 100,000$ 555 Texas A&M - Expenses-$ 975$ 75,337$ 565 Georgia Tech - Expenses-$ -$ 32,879$ HEWI Summary - Expenses893,302$ 31,043$ 185,000$ ------------------------------------------------------ Total Expenses2,698,518$ 204,312$ 2,235,195$ -------------------------------------------------------------------------------- NET CHANGE IN NET OPERATING ASSETS192,482$ 304,622$ (419,020)$ -------------------------------------------------------------------------------- Non-Operating Net Assets Revenue: 900 BHEF Investment Fund - Revenue40,000$ 2$ 40,000$ Total Revenue40,000$ 2$ 40,000$ Expenses: 900 BHEF Investment Fund - Expenses10,000$ 581$ (10,000)$ Total Expenses10,000$ 581$ (10,000)$ -------------------------------------------------------------------------------- Net Change in Non-Operating Net Assets30,000$ (579)$ 30,000$ -------------------------------------------------------------------------------- NET CHANGE IN NET ASSETS222,482$ 304,043$ (389,020)$ ===================================================================== ====================================================================== Beginning Balance FY21 Balance at 10-31-2020 Projected FY21YE Balance Temporarily Restricted Net Assets710,947$ 107,764$ 162,000$ -$ -$ -$ 520-JPMC201,514$ 24,439$ -$ 521-WPI/Northrup131,258$ 2,594$ 62,000$ 525-Google66,675$ 6,075$ 26,000$ 530-ECMC238,550$ 8,216$ 74,000$ 535-STRADA72,950$ 66,440$ -$ ====================================================================== BALANCE OF TEMPORARY RESTRICTED162,000$ TOTAL NET CHANGE IN NET ASSETS(227,020)$ ======================================================================