Boston Public Library
Trustees' Finance and Audit Committee

Board of Trustees
March 7, 2012



RESCHEDULED MEETING
Agenda for Trustees Finance and Audit Committee Meeting
March 7, 2012 Johnson Trustees Room 8 am to 9 am
Chairman Evelyn Arana-Ortiz

  • Welcome/Introductions
    Chairman Evelyn Arana-Ortiz
     
  • Review and Approval of Minutes from February 9, 2012
    Chairman Evelyn Arana-Ortiz
     
  • Investment Policy Discussion and Prep for March 13th Full Board Meeting
    New England Pension Consultants
     
  • IRS Form 990 Update
    Sean Monahan, Director of Accounting
     
  • Management Letter Discussion and Prioritization
    O'Connor and Drew
    Sean Nelson, Chief Financial Officer
    Sean Monahan, Director of Accounting
     
  • Approved Schedule for Upcoming Meetings
    Chairman Evelyn Arana-Ortiz
    • April 19, 2012 (precedes May 8 full board meeting)
       
  • Other Business
    Chairman, Evelyn Arana-Ortiz
     
  • Adjournment
    Chairman, Evelyn Arana-Ortiz

Future meeting agenda items: Auditing Contract, Security Contract


Minutes of the Trustees Finance and Audit Committee Meeting
March 7, 2012 Johnson Trustees Room 8am to 9am

Chairman Evelyn Arana-Ortiz

A meeting of the Trustees Finance and Audit Committee was held at the Boston Public Library, Trustees Room, Johnson Building, 700 Boylston Street, Boston, MA 02116 on Wednesday, March 7, 2012 at 8:00 a.m. This meeting originally scheduled for March 1, 2012 was re-scheduled due to the prediction of inclement weather.

Present at the meeting were: Chairman Evelyn Arana-Ortiz; Trustee Donna M. DePrisco; Boston Public Library staff: Chief Financial Officer, Sean Nelson, Budget and Procurement Manager, Edward Maheigan, Supervisor of Accounting, Sean Monahan, and Clerk of the Board, Nancy Grilk; Ms. Krista DeNofrio, City of Boston Budget Office; Michael Black, New England Pension Consultants LLC; David DiIulis, O’Connor and Drew; and from the public Citywide Friends David Vieira.

The Chair noted that she received apologies from Trustees Zamawa Arenas and Byron Rushing, Mr. Ray Sullivan and Mr. Anthony Jordan who were unable to attend due to prior commitments.

Ms. Arana-Ortiz, Chairman of the Trustees Finance and Audit Committee (Committee) presiding.

The Chair reviewed the agenda.

The Chair addressed the first item of business, pertaining to the Minutes of the Trustees Finance and Audit Committee Meeting held on Thursday, February 9, 2012. On a motion made and duly seconded, the Minutes of the Trustees Finance and Audit Committee meeting held on February 9, 2012 were approved and subsequently posted on the Boston Public Library’s web site at www.bpl.org.

The Chair addressed the agenda item of discussion of the BPL Investment Policy Statement. CFO Sean Nelson introduced Mr. Michael Black of New England Pension Fund to review the Board meeting presentation and obtain Committee feedback. The key components are to approve the Investment Policy Statement, and to review the asset allocations from 60% equities and 40% bonds to a more diversified approach. Following the Committee’s review and comments, the updated presentation will be sent to the Trustees in advance of the March 13th Board meeting. Mr. Black reviewed the portfolio overview and emphasized that the Investment Policy Statement changes are based on and consistent with the City of Boston’s Investment Policy Statement. The proposed draft BPL Investment Policy Statement details the investment guidelines, delineates responsibilities, provides a framework for future investment decisions, and includes an implementation timeline.

Mr. Black reported that an optimal asset allocation would broaden the allocation of 60% equities to add a number of diversified classes. He reviewed the steps toward these goals which include adding a global asset manager to increase agility amongst assets. Mr. Black will incorporate the Committee’s comments to the presentation for the March 13th Board meeting.

At the Trustees Board meeting, Chairman Arana-Ortiz will first call for a vote on the re-drafted Investment Policy Statement as vetted by the Committee, and then call for a second vote to set the targets for the asset allocation rebalancing.

The Chair re-ordered the agenda and called for the June 30, 2011 Management Letter (Management Letter) discussion. Mr. David DiIulis of O’Connor and Drew reported on significant actions by the BPL to address comments for items in the June 30, 2010 Management Letter. Mr. DiIulis reviewed the Management Letter and discussion followed. The Chair will present highlights of the Management Letter and the BPL’s progress at the March 13th Board meeting.

Sean Monahan reported on the IRS Form 990. Within a few weeks the Trustees will receive an email from the Clerk requesting disclosure of any applicable business relationship with the Boston Public Library.

The Committee approved the next meeting date of Thursday, April 19, 2012 at 8:00 a.m. in the Johnson Trustees Room.

Respectfully submitted,

Nancy Grilk
Clerk of the Board