BHEF Summer 2019 Board Of Directors Meeting Materials

BHEF Board of Directors Meeting, June 25, 2019 BHEF Board of Directors Meeting June 25, 2019 1:00 p.m. EST Wendell Phillips Room Four Seasons Hotel Boston 200 Boylston Street Boston, MA 02116 Conference Number: 1-877-366-0711 • Participant Code: 19815967 AGENDA 1:00 p.m. Business Meeting 1. Welcome and Overview – Ryan Oakes 2. Approval of the FY19 Q3 Board of Directors Meeting Minutes – Ryan Oakes (Tab 1) 3. Chief Executive Officer’s Report – Brian Fitzgerald (Tab 2) 4. Committee Reports – Ryan Oakes a. Finance and Audit – Brian Fitzgerald (Tab 3) b. Membership – Brian Fitzgerald (Tab 4) 5. Nomination of Vice Chair and Approval of the Class of 2022 Board Slate – Ryan Oakes (Tab 5) 6. Closing Remarks – Ryan Oakes 2:30 p.m. Executive Session 3:00 p.m. Board Photo Tab 1 – FY19 Q3 Board of Directors Meeting Minutes BHEF FY2019, Q3 Board of Directors Meeting Minutes | 1 BHEF Board of Directors Meeting April 4, 2019 1:00 p.m. EST BOARD OF DIRECTORS MEETING MINUTES ATTENDEES Board Members: Jeff Armstrong, Wes Bush, Robert Caret, Jim Clements, Jack DeGioia, Brian Fitzgerald, Mike King, Ryan Oakes, Brian Roach, Tim Sands, Randy Woodson, Mark Wrighton. BHEF Staff: Suzanne Amoonarquah, Steve Barkanic, Stephanie Blochinger, Stacey Brown, Isabel Cardenas-Navia, Janet Chen, Ursula Gross, Amanda Pumphrey, Terah Speigner, and Danielle Troyan WELCOME Board Chair Ryan Oakes opened the meeting at 1:00 p.m. He welcomed members and provided an overview of the agenda. Approval of the FY19 Q2 Board of Directors Meeting Minutes Oakes asked for a motion to approve the FY19 Q2 Board of Directors Meeting Minutes. The motion was made and seconded. The minutes were unanimously approved. CHIEF EXECUTIVE OFFICER’S REPORT Before diving in to the CEO’s Report, Brian Fitzgerald reflected on BHEF’s progress in 2018. In the past year, BHEF continued to execute the strategic vision, focus on increasing member value, and work to deliver measurable outcomes. In 2018, BHEF added nearly $1 million in revenue, making for an excellent year on all fronts. Strategic Opportunities in 2019-2020 In 2019-2020 BHEF will execute a strategy to strengthen BHEF’s brand as a national thought leader in actionable intelligence for foundational skills for the digital economy, strategic business partnerships, and innovative digital workforce solutions. Key elements of this strategy include enhancing BHEF’s position as a national thought leader in innovative workforce solutions through the Business Roundtable (BRT) partnership, market intelligence reports, and thought leadership events. BHEF plans to release a new publication in conjunction with PwC focused on digital reskilling and diversity, conduct a reskilling roundtable in Boston, and host multiple thought leadership events. BHEF FY2019, Q3 Board of Directors Meeting Minutes | 2 BHEF-BRT Workforce Partnership Initiative BHEF’s goal is to leverage the BHEF-BRT Workforce Partnership Initiative (WPI) to position BHEF as a national leader in workforce solutions. WPI uses BHEF’s partnership model to support development of innovative digital talent ecosystems. With funding support from the JPMorgan Chase Foundation, BHEF and BRT have launched projects in ten geographically diverse regions. Examples include:  The Washington, DC, Maryland, and Virginia region (DMV) project, where multiple universities in the DMV region are launching digital technology credentials.  The Chicago Apprentice Network, where nineteen Chicago-area companies have committed to provide 1,000 digital apprenticeships by 2020. These are for students enrolled in community colleges who work toward earning their associate degree while gaining real-world experience as apprentices. BHEF will publish case studies and reports capturing insights across the regions and will bring together the WPI companies to share best practices and accelerate the pace of implementation. Enhance BHEF Thought Leadership and Communications BHEF plans to work with BRT to publish reports and conduct national and local thought leadership events. BHEF has released a well-received CEO playbook on workforce development, which describes BHEF’s rigorous methodology in creating regional talent ecosystems. BHEF partnered with the National Science Foundation (NSF) on a convening of business and higher education representatives to explore how NSF’s research investments can promote workforce development in emerging fields. The collaboration with NSF resulted in a national report. BHEF will host a second convening of NSF sub-awardees in July. BHEF will work with PwC to develop a new thought leadership report on digital reskilling and diversity. BHEF collaborated with PR firm, Live Wire Strategic Communications (Live Wire), to sharpen BHEF’s brand, messaging, and media positioning. BHEF staff have participated in a messaging summit, and together have developed a BHEF elevator pitch. Live Wire is working to achieve bylined article placement and speaking opportunities. Since beginning the contract with Live Wire, BHEF’s media placements are increasing, as are desk side briefings with press and thought leaders. Live Wire will continue to facilitate collaboration opportunities for BHEF with leading think tanks. Fundraising BHEF will continue its fundraising activities to pursue new sources of non-dues revenue. BHEF is seeking supplement to its multi-year grant from the JPMorgan Chase Foundation or a funding partner to support additional regional projects for the WPI. BHEF submitted a $6 million multi-year NSF grant proposal to support eight WPI-DMV universities in implementing specialist digital credentials. This grant would also support working on development of a credential bank. BHEF will submit letters of interest in April in response to NSF’s Dear Colleague on the BHEF FY2019, Q3 Board of Directors Meeting Minutes | 3 impact of AI on the future of work, potentially supporting the DMV and NYC BRT WPI projects with $1 million in planning grants. In addition, BHEF is seeking support from members and prospects for market intelligence and for programmatic activities. BHEF completed the first stage in a grants competition announced by the Bill & Melinda Gates Foundation, and is seeking grant support from the Joyce Foundation, the Pritzker Traubert Foundation, Strada Education Network, and other foundations to support knowledge capture and case studies on the regional partnerships developed through the WPI. Summer 2019 Member Meeting BHEF’s Summer 2019 Member Meeting will explore the action agenda for high-skill workforce development in the digital economy. Summer meeting sessions will spotlight BHEF members, national thought leaders, and policymakers who will discuss the actions that government, business, and higher education are taking to build the workforce needed for the digital economy and how key sectors are responding to these challenges. The meeting will be hosted in Boston, MA at the Four Seasons Hotel Boston and the Edward M. Kennedy Institute for the United States Senate. FINANCE AND AUDIT REPORT As of February 28, 2019, BHEF received $1,693,175 in revenue, which included $1,380,000 in membership dues, $15,000 in market intelligence revenue, $293,175 in grants and $5,000 in administrative revenue. Expenses totaled $1,168,904. We are forecasting $3,840,060 in revenue and $3,610,448 in expenses for the year, which will result in a surplus of $229,612 in operations. We are projecting a surplus of $29,990 in non-operations. The total for operations and non-operations results in a net change in net assets of $259,602. The value of the BHEF Investment Fund as of December 31, 2019 was $920,941. BHEF’s investment portfolio included $920,941 in Vanguard self-managed LifeStrategy Income Fund, with 80 percent of the managed portfolio in bonds and 20 percent in stocks. As of the first quarter of 2019, the approved budget was for revenue of $4,319,649 and expenses are budgeted at $4,269,754. The accounting firm of Rubino & Company has completed BHEF’s FY18 financial and federal audit and submitted to the Federal Clearinghouse for compliance. NSF reviewed the submission for federal compliance and gave notice that the BHEF audit reporting package met federal reporting requirements. Form 990 was approved by the board and will be filed with the IRS before May 15, 2019. This submission completes the FY18 audit/reporting cycle. BHEF had no audit findings. MEMBERSHIP REPORT Armstrong reported that BHEF had fifty-eight members: twenty-five corporate, thirty academic, three emeriti. BHEF will work to achieve even representation of thirty-five corporate members and thirty-five academic members in 2020. Achieving this goal will take significant work, as there are currently twenty- five corporate and thirty academic members. In 2019, the goal is to add at least five new corporate members. Taking into account possible attrition, the actual goal is eight new corporate members. BHEF FY2019, Q3 Board of Directors Meeting Minutes | 4 University of Virginia, president, Jim Ryan recently joined and BHEF continues to make strides in increasing membership. BHEF has numerous prospect opportunities that can potentially increase membership on the West Coast. CLOSING REMARKS The meeting went into executive session at 2:00 pm. Tab 2 – Chief Executive Officer’s Report Implementing BHEF’s Strategic Vision: Demonstrating Leadership in Digital Skills and Innovating Talent Solutions at Scale CEO Report Board of Directors Meeting June 25, 2019 Strategic Opportunities in 2019-2020 Execute a strategy in 2019-2020 to strengthen BHEF’s brand as a national thought leader in actionable intelligence for foundational skills for the digital economy, strategic business partnerships, and innovative digital workforce solutions in order to attract new members and increase member value. •Enhance BHEF’s position as a national leader in implementing digital workforce solutions through a multi-state partnership, new market intelligence (MI), and thought leadership (TL). •Break new ground in TL by releasing a publication with PwC focused on digital reskilling and diversity, conduct a Reskilling Roundtable in Boston, and hold regular TL events throughout FY19 and FY20. •Utilize Business Roundtable (BRT) partnership to engage CEOs and companies through digital workforce projects, regional CEO convenings, and publications. •Engage members on reskilling and develop projects as proof points for new talent development strategiesthat aid in attracting new business members. •Continue to build new communications capabilities to improve brand recognition and increase visibility of MI publications and TL events. •Secure new, multi-year streams of revenue to advance BHEF’s strategic vision. © 2019 BHEF 2 BHEF-BRT Workforce Partnership Initiative © 2019 BHEF 3 Leverage the BHEF-BRT Workforce Partnership Initiative (WPI) to position BHEF as a national leader in implementing workforce solutions at scale. •BHEF will continue to advance WPI projects in five key regions in 2019 to serve as proof-points for digital skill ecosystems development at scale, including: Columbus (OH), New York City, Milwaukee, North Carolina, and the Washington, DC-Maryland-Virginia (DMV) region. •The DMV project launched its first digital technology credentials in January 2019 at George Mason University and Virginia Commonwealth University; six more universities in the region are expected to launch credentials in fall 2019. BHEF has sought NSF funding for the implementation of specialist credentials at eight universities ($6M) and planning funds for reskilling incumbent employees ($1M). •BHEF’s 2019 summer member meeting provides a catalyst to deploy the DMV model in New England in partnership with region-wide organizations, businesses intermediary organizations in several states, and networks of business and universities to achieve impact at scale over time. BHEF-NEBHE Workforce Partnership © 2019 BHEF 4 Leverage timely regional workforce reports and BHEF-BRT members committed to replicating WPI in new regions at scale. •First deployed in NYC through the Sloan-funded NYC Data Science Task Force and the Financial Services Industry Workforce Initiative, the DMV model of linking networks of employers and universities through a business intermediary represents a proven solution that can be replicated in New England. •The New England Board of Higher Education’s Commission on Higher Education and Employability organized government, business and higher education to create a singular consensus across the six-state region on workforce priorities with the support of the governors. •With BHEF’s support, Jim Loreehas committed Stanley Black and Decker to lead a WPI replication through the Connecticut Economic Development Center and is seeking the support of the CEOs of the Connecticut Business Roundtable to partner with universities in the state to deploy new digital credentials. •BHEF’s 2019 summer member meeting provides an opportunity to expose the region-wide organizations, business intermediary organizations in several states, and business and university leaders to BHEF’s partnerships and workforce solutions. Enhance BHEF’s Thought Leadership With the support of BHEF’s PR firm, BHEF will partner with members and with BRT to publish TL reports and conduct national and regional TL events. •Work with BHEF’s PR firm Live Wire Strategic Communications to have editorial board briefings and speaking opportunities that leverage BHEF’s existing and forthcoming MI and TL reports. •Elevate BHEF’s presence in the media with focused articles and expert commentary in high-profile news outlets. Select placements to date have included outlets such as The New York Times, The Washington Post, and Forbes. •Develop a new white paper on digital reskilling and diversity with PwC, featured at this member meeting. Forthcoming research with Burning Glass Technologies will result in additional market intelligence and a joint report with PwC on the topic. •Continue to craft thought leadership reports on the insights from BHEF-led partnership sites in the DMV and elsewhere. © 2019 BHEF 5 BHEF 2019-2020 Fundraising © 2019 BHEF 6 BHEF continues its fundraising efforts to pursue new sources of revenue and seek support for its program portfolio, MI, and TL. •BHEF is seeking a supplement to its multi-year grant from the JPMorgan Chase Foundation or a funding partner to support additional regional projects for the WPI. •BHEF has submitted a $6 million multi-year NSF grant proposal that will provide funding to BHEF through FY2021 and support eight WPI DMV universities, including many BHEF members, to implement specialist digital credentials. (Submitted January 2019) •NSF invited BHEF to submit a proposal for a nine-month $1 million planning grant to develop an implementation plan for aligning existing pathways and creating new pathways to meet the DMV’s digital technology skills needs. (Submitted June 2019) •BHEF is seeking support from the following members/prospects for MI and programmatic activities, including regional and national convenings and publications: Stanley Black & Decker, State Farm Mutual Automobile Insurance Company, and Santander Bank. •BHEF is seeking grant support from the Joyce Foundation, StradaEducation Network, Trellis Company, ECMC and other foundations to support convenings, knowledge capture and case studies on the regional partnerships developed through the WPI. BHEF Summer 2019 Member Meeting © 2019 BHEF 7 We will utilize the BHEF summer member meeting to explore the action agenda for high-skill workforce development in the New England digital economy. Summer meeting sessions will spotlight BHEF members, national thought leaders, and policymakers who will discuss the actions that government, business, and higher education are taking to build the workforce needed for the digital economy and how key sectors are responding to these challenges. Tuesday, June 25 Four Seasons Hotel Boston Boston, MA 12:15 p.m.Board Lunch 1:00 p.m.Board Meeting 2:30 p.m.Executive Session 3:00 p.m.Board Photo 4:00 p.m.Reskilling Roundtable Reskilling for Diversity and Inclusion 5:30 p.m.Break 6:00 p.m.Chair’s Reception 7:00 p.m.Dinner BHEF Summer 2019 Member Meeting © 2019 BHEF 8 Wednesday, June 26 Edward M. Kennedy Institute for the United States Senate Boston, MA 7:15 a.m.Shuttles from hotel to Edward M. Kennedy Institute 8:00 a.m.Breakfast 8:40 a.m. Business Meeting 9:10 a.m.Welcome Welcoming Remarks: Mary Grant, president, Edward M. Kennedy Institute for the United States Senate Framing Remarks: Ryan Oakes, managing director, North America Public Sector, Accenture 9:25 a.m.Session I Facilitated Discussion with New-England Workforce Leaders Facilitator: Ryan Oakes, managing director, North America Public Sector, Accenture BHEF Summer 2019 Member Meeting © 2019 BHEF 9 Wednesday, June 26 Edward M. Kennedy Institute for the United States Senate Boston, MA 9:25 a.m.Session I (continued) Speaker: •RosalinAcosta, secretary of Labor and Workforce Development, Commonwealth of Massachusetts 10:20 a.m.Session II Facilitated Discussion with New England Workforce Leaders Facilitator: Peter Weinberg, founding partner and chief executive officer, Perella Weinberg Partners Panelists: •Mohamad Ali,president and CEO, Carbonite •Jim Loree, president and CEO, Stanley Black and Decker •Russ Ramsey, chair and co-founder, The Greater Washington Partnership BHEF Summer 2019 Member Meeting © 2019 BHEF 10 Wednesday, June 26 Edward M. Kennedy Institute for the United States Senate Boston, MA 11:20 a.m.Break 11:35 a.m.Session III Facilitated Discussion with Leaders of Workforce Projects Facilitator: Marty Martin, president, Drake University Panelists: •Sandy Arnold, senior vice president, State Farm Mutual Automobile Insurance Company •Robert Caret, chancellor, University System of Maryland •Michael Fenlon, chief people officer, PwC 12:35 p.m.Closing Remarks Brian Fitzgerald, CEO, Business-Higher Education Forum Ryan Oakes, managing director, North America Public Sector, Accenture BHEF Summer 2019 Member Meeting © 2019 BHEF 11 Wednesday, June 26 Edward M. Kennedy Institute for the United States Senate Boston, MA 12:50 p.m.Lunch 2:00 p.m.Departure Optional Tour of the John F. Kennedy Presidential Library and Museum 3:00 p.m.Adjourn Discussion Finance and Audit Membership Nomination of Vice Chair and Approval of the Class of 2022 Board Slate Tab 3 – Finance and Audit Report BHEF Board of Directors Meeting, June 25, 2019 To: BHEF Board of Directors From: Brian Fitzgerald Date: June 25, 2019 Re: Finance and Audit Report I am 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 FY19 Forecast and Financials through May 31, 2019  FY20 Proposed Budget  Investment Fund Report  FY2018 IRS Form 990 Filing Update on FY19 Forecast and Financials through May 31, 2019 1 As of May 31, 2019, the date of the last financials available, BHEF received $2,107,407 in revenue, which included $1,590,000 in membership dues, $15,000 in market intelligence revenue, $397,307 in HEWI grants, $100,000 from Northrup Grumman for the WPI project, and $5,000 in administrative revenue. Expenses at May 31, 2018 totaled $2,005,103. As BHEF prepares to close out the third quarter of FY19, we are forecasting $3,465,559 in revenue and $3,806,890 in expenses for the year, which will result in ($341,331) in operations. There is a projected surplus of $40,358 in non-operations (BHEF Investment Fund) and BHEF is projecting an ending balance of $226,843 in temporary restricted net assets. The total for operations, non-operations, and net assets results in a net change in net assets of ($74,488). Please note that BHEF that the negative net assets are due in most part to the timing of the second JPMC payment. Originally slated for FY19, the next $600,000 payment may not be received until October 2019. In addition, at time of this report, BHEF is awaiting NSF approval on two proposals submitted. The first, a 3-year award for $6,000,000 and a 9-month award for $1,000,000. FY20 Proposed Budget The proposed FY20 operating budget (see Attachment B) includes revenue of $2,100,000 in member dues, $508,029 in HEWI grants ($208,029 from NSF and $300,000 in new projects), $600,000 from JPMC, and $122,500 from Google for a total of $3,330,529 in expected revenue. The proposed budget includes expenses of $3,283,723, yielding an operating surplus of $46,806. For non-operating net assets, the proposed budget for the BHEF Investment Fund is $40,000, yielding a non-operating surplus of $86,806. 1 Unaudited cash-basis statements from BHEF’s accountants. BHEF Board of Directors Meeting, June 25, 2019 Investment Fund Report The value of the BHEF Investment Fund as of March 31, 2019 was $965,755.22. This represents an increase of 5 percent compared to June 30, 2018. BHEF’s investment portfolio included $965,755 in Vanguard self-managed LifeStrategy Income Fund, with 80 percent of the managed portfolio in bonds and 20 percent in stocks. FY18 IRS Form 990 Filing BHEF’s auditors completed our FY18 audit and Form 990. Form 990 was filed with the IRS March 12, 2019. This submission completes the FY18 audit reporting cycle. BHEF had no audit findings. ATTACHMENT A Business-Higher Education Forum FY2019 Financials At May 31, 2019 Approved FY2019 Actuals at 5-31-2019 Year End Projection Variance Operating Net Assets Unrestricted Revenue: 200 Membership - Revenue1,870,000$ 1,590,000$ 1,800,000$ (70,000)$ 300 Conferences -Revenue-$ 5,000$ 5,000$ 5,000$ 510 Market Intelligence - Revenue165,000$ 15,000$ 15,000$ (150,000)$ 520 JPMC - Revenue454,892$ -$ -$ (454,892)$ 521 WPI - Revenue-$ 100,000$ 100,000$ 100,000$ 525 Google - Revenue-$ -$ 212,000$ 212,000$ HEWI Summary - Revenue1,829,757$ 397,407$ 1,333,559$ (496,198)$ ---------------------------------------------------------------------------------- TOTAL OPERATING NET ASSETS4,319,649$ 2,107,407$ 3,465,559$ (669,892)$ ------------------------------------------------------------------------------------- Expenses 110 Administration - Expenses477,098$ 477,944$ 581,716$ (104,618)$ 200 Membership - Expenses362,492$ 166,630$ 285,663$ 76,829$ 250 Grants - Expenses139,183$ 75,983$ 93,086$ 46,097$ 300 Conferences - Expenses350,087$ 229,543$ 335,073$ 15,014$ 500 Communications - Expenses257,493$ 163,768$ 290,336$ (32,843)$ 510 Market Intelligence - Expenses151,552$ 10,894$ 13,444$ 138,108$ 520 JPMC - Expenses711,431$ 370,579$ 482,346$ 229,085$ 521 WPI - Expenses-$ 10,128$ 20,509$ (20,509)$ 525 Google - Expenses-$ 5,091$ 91,250$ (91,250)$ HEWI Summary - Expenses1,820,726$ 494,543$ 1,613,466$ 207,260$ ---------------------------------------------------------------------------------- Total Expenses4,270,062$ 2,005,103$ 3,806,890$ 463,172$ ------------------------------------------------------------------------------------- NET CHANGE IN NET OPERATING ASSETS49,587$ 102,304$ (341,331)$ (206,720)$ ------------------------------------------------------------------------------------- Non-Operating Net Assets Revenue: 900 BHEF Investment Fund - Revenue30,000$ 32,170$ 40,000$ 10,000$ Total Revenue30,000$ 32,170$ 40,000$ 10,000$ Expenses: 900 BHEF Investment Fund - Expenses-$ -$ -$ -$ Total Expenses-$ -$ -$ -$ ------------------------------------------------------------------------------------- Net Change in Non-Operating Net Assets30,000$ 32,170$ 40,000$ 10,000$ ------------------------------------------------------------------------------------- NET CHANGE IN NET ASSETS79,587$ 134,474$ (301,331)$ (196,720)$ ======================================================================= Beginning Balance 2019 Additions 2019 Subtractions Ending Balance Temporarily Restricted Net Assets660,682$ 312,000$ (745,839)$ 226,843$ -$ -$ -$ -$ 520-JPMC469,708$ -$ (482,346)$ (12,638)$ 521-WPI/Northrup-$ 100,000$ (20,509)$ 79,491$ 525-Google-$ 212,000$ (91,250)$ 120,750$ 743-Sloan DataScience90,974$ -$ (90,974)$ (0)$ 782-CIT II Smart Cities100,000$ -$ (60,760)$ 39,240$ ======================================================================= TOTAL NET CHANGE IN NET ASSETS(74,488)$ ATTACHMENT B Business-Higher Education Forum PROPOSED FY2020 Budget Approved FY2019 FY2019 YE Forecast Proposed FY2020 Operating Net Assets Unrestricted Revenue: 200 Membership - Revenue1,870,000$ 1,800,000$ 2,100,000$ 300 Conferences -Revenue-$ 5,000$ -$ 510 Market Intelligence - Revenue165,000$ 15,000$ -$ 520 JPMC - Revenue454,892$ -$ 600,000$ 521 WPI - Revenue-$ 100,000$ -$ 525 Google - Revenue-$ 212,000$ 122,500$ HEWI Revenue:1,829,757$ 1,333,559$ NSF Year V to 12-31-19 208,029$ New Projects300,000$ ------------------------------------------------------ TOTAL OPERATING NET ASSETS4,319,649$ 3,465,559$ 3,330,529$ --------------------------------------------------------------------------------- Expenses 110 Administration - Expenses477,098$ 581,716$ 584,786$ 200 Membership - Expenses362,492$ 285,663$ 345,218$ 250 Grants - Expenses139,183$ 93,086$ 70,038$ 300 Conferences - Expenses350,087$ 335,073$ 329,863$ 500 Communications - Expenses257,493$ 290,336$ 268,577$ 510 Market Intelligence - Expenses151,552$ 13,444$ 130,000$ 520 JPMC - Expenses711,431$ 482,346$ 588,000$ 521 WPI - Expenses-$ 20,509$ 70,000$ 525 Google - Expenses-$ 91,250$ 284,500$ HEWI Summary - Expenses1,820,726$ 1,613,466$ 612,742$ ------------------------------------------------------ Total Expenses4,270,062$ 3,806,890$ 3,283,723$ --------------------------------------------------------------------------------- NET CHANGE IN NET OPERATING ASSETS49,587$ (341,331)$ 46,806$ --------------------------------------------------------------------------------- Non-Operating Net Assets Revenue: 900 BHEF Investment Fund - Revenue30,000$ 40,000$ 40,000$ Total Revenue30,000$ 40,000$ 40,000$ Expenses: 900 BHEF Investment Fund - Expenses-$ -$ -$ Total Expenses-$ -$ -$ --------------------------------------------------------------------------------- Net Change in Non-Operating Net Assets30,000$ 40,000$ 40,000$ --------------------------------------------------------------------------------- NET CHANGE IN NET ASSETS79,587$ (301,331)$ 86,806$ ======================================================================= ======================================================================= Beginning Balance Adjustments FY20 Balance Temporarily Restricted Net Assets660,682$ (433,839)$ 226,843$ -$ -$ -$ 520-JPMC469,708$ (482,346)$ (12,638)$ 521-WPI/Northrup-$ 79,491$ 79,491$ 525-Google-$ 120,750$ 120,750$ 743-Sloan DataScience90,974$ (90,974)$ -$ 782-CIT II Smart Cities100,000$ (60,760)$ 39,240$ ======================================================================= BALANCE OF TEMPORARY RESTRICTED226,843$ 226,843$ TOTAL NET CHANGE IN NET ASSETS(74,488)$ 313,649$ ======================================================================= Tab 4 – Membership Report BHEF Membership Committee Report, June 25, 2019 MEMBERSHIP COMMITTEE REPORT June 25, 2019 I. FY19 DASHBOARD Date Total Corporate Academic Gov’t Emeritus* Jun 2019 58 25 30 0 3 Mar 2019 58 25 30 0 3 Oct 2018 54 22 28 1 3 Jun 2018 57 24 29 1 3 *Emeriti members do not pay dues II. FY19 GOALS  Retain seven transitioning or retiring members  Gain eight business members (status: three secured) III. REVENUE AS OF JUNE 6, 2019 A FY19 membership revenue target $1,870,000 B Invoiced $1,940,000 C Pending/Off-schedule invoices $50,000 D Booked (as of 06/06/2019) $1,600,000 E Outstanding $200,000 F Lost ($140,000) G Revised expected (C+D+E) $1,850,000 H Anticipated $ to target (G-A) $20,000 I Current $ to target (A-D) $270,000 2 BHEF Membership Committee Report, June 25, 2019 IV. TRANSITIONS  City University of New York: Félix Rodríguez, chancellor  Dow*: TBD  Miami Dade College: TBD  Michigan State University: Samuel L. Stanley, Jr., M.D., president-designee (August 1)  PepsiCo*: TBD  University of Tennessee, Knoxville: Donde Plowman, chancellor (July 1)  Washington University in St. Louis**: Andrew Martin, chancellor *FY19 unpaid **FY20 paid FY19 PROSPECTS CONFIDENTIAL: NOT FOR DISTRIBUTIONAs of 6/13/2019 SOURCEPROSPECT NAMEORGANIZATIONTITLESTATUSNOTES STAGE 1: Prospect identification Jeff ArmstrongTBDCiscoTBD Jeff will connect with Sheri Slate, VP Inclusion and chief collaboration officer Jeff ArmstrongTBDWells FargoTBD Jeff will speak with board member Suzanne "Zan" Vautrinot BHEFTBDAppleTBD No response from Andrea Jung; BHEF will continue to reach out BHEFMartha E. PollackCornellPresident BHEF contacted Barbara Snyder for introduction; Tony Monaco may also be able to assist BHEFTBDGoogleTBD Membership is element of pending proposal, which is with Google legal team for review BHEFTBDPepsiCoTBD 6/13: BHEF meeting with Sergio Ezama, chief talent officer and CHRO Global Groups Transition Jim Loree/Tony MonacoDavid HarrisUnion CollegePresident Loree's alma mater--FYI for now; understands needs corporate partner Union alumni include CEOs of Texas Instruments and eBay Randy WoodsonOliver SchabenbergerSASCOO and CTOLynn Letukas invited to S19 Letukas is direct report to Goodnight STAGE 2: Vetting and talking points Eduardo PadrónArnold DonaldCarnival CorporationCEOOutreach package to come Eduardo PadrónRobert SanchezRyder System, Inc. Chairman and CEOOutreach package to come STAGE 3: Member speaks with prospect Jeff ArmstrongLloyd DeanDignity HealthCo-CEOOutreach package and intro email sent Jeff ArmstrongDoug Baker, Jr.EcolabCEOOutreach package sent Jeff ArmstrongJim HackettFord Motor CompanyPresident and CEO Jeff spoke with Ed Krause, Ford global university relations lead; possible meeting this summer Jeff ArmstrongGeorge Lee IIGoldman Sachs CIO, Investment Banking Group Outreach package sent Jeff ArmstrongJeff WeinerLinkedInCEOOutreach package sent Jeff ArmstrongSam Stanley, Jr., M.D.Michigan State UnivPresident-designeeConnect through Mark Wrighton/Satish Udpa Transition; begins Aug 1 Jeff ArmstrongDoug MerrittSplunkCEOOutreach package sent Jeff ArmstrongGreg ClarkSymantecCEOOutreach package sent Wes BushTBDDowDuPontTBDWes will discuss BHEF at next board meeting Nariman FarvardinPaul von AutenriedBristol Myers SquibbSVP and CIOHold for now (medical) Ryan OakesThomas KurianGoogle CloudCEOTBD Ryan OakesSteve HansonWorkday Group VP, Education and Government Recommended by Phil Wilmington, Vice Chair Tim SandsDave CalhounBlackstone Senior Managing Director, Head of Private Equity Portfolio OperationsTim spoke with Dave; next steps TBD Tim SandsSteven MollenkophQualcommCEOTim scheduling call Peter WeinbergRob KapitoBlackRockChairman and CEO Peter spoke with Managing Director Deborah Winshel, follow up information provided Peter WeinbergCharles LoweryPrudential CEO and ChairmanNeeds to settle in; re-approach in early fall Peter WeinbergPat Gelsinger VMwareCEO BHEF preparing engagement plan with input from SJSU Randy Woodson/Jeff Armstrong Ravi Kumar InfosysPresident and Deputy COOEngage through CT Business Roundtable Randy WoodsonGregg LoweCree LEDCEOHold for now (company reorg) FY19 PROSPECTS CONFIDENTIAL: NOT FOR DISTRIBUTIONAs of 6/13/2019 STAGE 4: Prospect speaks with BHEF Jeff Armstrong Bret Taylor OR Sarah FranklinSalesforce President and Chief Product Officer; EVP and GM, Trailhead and Developer RelationsBHEF working with Meredith Schmidt on next steps BHEFLewis Von ThaerBattelleCEOSchedule with future OSU meeting BHEFMohamed AliCarboniteCEOInvited to S19 BHEFLarry BacowHarvard UniversityPresidentInvited to S19 BHEFCharles PhillipsInforCEOEAP Director Carol Wright plans to attend S19 BHEFPeter ScherJPMorgan Chase Chair, Mid-Atlantic and Global Head, CSR Scheduling meeting BHEFBlake MoretRockwell AutomationCEOEngage through WI WPI site BHEF/Jim LoreeChris SwiftThe HartfordCEOEngage through CT Business Roundtable BHEF/Jim LoreeAlan SchnitzerTravelersCEOEngage through CT Business Roundtable BHEF/Jim Loree John Ciulla Webster Financial CorpPresident and CEOEngage through CT Business Roundtable BHEF/Eduardo PadrónFelíx RodríguezCUNYChancellor Introduction provided by CUNY faculty; scheduling call Transition Tony MonacoJames FosterCharles River Labs, Int'l Chairman of the Board, President, and CEO Requesting meeting Tony MonacoAbigail JohnsonFidelity InvestmentsChairman and CEORequesting meeting Tony Monaco Marianne Harrison John Hancock President and Chief Executive Officer Requesting meeting Tony MonacoGerald (Jerry) ColellaMKS InstrumentsCEORequesting meeting Tony MonacoScott PowellSantander USCEORequesting meeting Tony MonacoJohn FishSuffolk ConstructionChairman and CEORequesting meeting Tony MonacoErnie HerrmanTJXCEO and PresidentRequesting meeting Tony MonacoNiraj ShahWayfair CEO, Co-founder, and Co- chairman Requesting meeting Mary Papazian Safra CatzOracleCEO BHEF scheduling call with Oracle Foundation Executive Director Colleen Cassity STAGE 5: Prospect F2F with BHEF Bob CaretRoger CrandallMassMutual Chairman, President, and CEO Expressed interest; BHEF requesting meeting BHEFRuss Ramsey Ramsey Asset Management Founder, Chairman, and CEOS19 panelist; close him at meeting STAGE 6: BHEF welcomes new member STAGE 7: New members registered for S19 Tab 5 – Board of Directors Class of 2022 Slate BHEF Board of Directors Slate June 25, 2019 Class of 2022 Joseph Aoun President Northeastern University Jeff Armstrong President California Polytechnic State University Mike King Vice President IBM, Global Education Industry Mary A. Papazian President San José State University Randy Woodson Chancellor North Carolina State