FRONTIER PROJECT FOUN DATION BOARD OF DIRECTORS ANN UAL M EETING AG EN DA

Transcription

1 FRONTIER PROJECT FOUN DATION BOARD OF DIRECTORS ANN UAL M EETING AG EN DA F p thefronti erproject June 12, 2018-<} 5:30 PM CVWD Board Room l 0440 Ashford Street; Rancho Cucamonga I. CALL TO ORDER I PLEDG E OF ALLEGIANCE 2. PUBLIC COMMENT [Members of the public may address the Board of Directors. Comments are limited to five (5) minutes per individual. State Law (Brown Act) prohibits the Board from addressing any issue not previously included on the agenda; however, the Board may receive testimony and set the matter for a subsequent meeting]. 3. APPROVE MINUTES FROM THE JUNE 13, 2017 ANNUAL MEETING 4. ELECT OFFI CERS O F THE FOUNDATION FOR FISCAL YEAR Proposed Officers of the Foundation are: President Martin E. Zvirbulis Vice President Carrie Corder Treasurer Chad Brantley Secretary Cindy Cisneros 5. ELECT OFFICERS O F THE BOARD FOR FISCAL YEAR Proposed Officers of the Board are: Chairman James V. Curatalo, Jr. Vice Chairman Luis Cetina Posted June 7, 2018

2 6. COMMITTEE ASSIGNMENTS A) Executive Committee - Members set per bylaws Chairman Vice Chairman President Treasurer James V. Curatalo, Jr. Luis Cetina Martin E. Zvirbulis Chad Brantley B) Development Committee Committee Member Committee Member 7. RECEIVE AND FILE THE AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDING JUNE 30, 2017 Agnes Boros, Interim Finance Manager 8. RECEIVE AND FILE THE FINANCIAL REPORT ENDING MAY 31, 2018 Agnes Boros, Interim Finance Manager 9. ADOPT ANNUAL OPERATING BUDGET FOR FISCAL YEAR 2019 Agnes Boros, Interim Finance Manager I 0. DIRECTORS' COMMUNICATION & CHAIRMAN'S REPORT I I. OTHER BUSINESS 12. ADJOURN In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Board Secretary (909) , 48 hours prior to the scheduled meeting so that the District can make reasonable arrangements Pursuant to Government Code Section , any writing that: (I) is a public record; (2) relates to an agenda item for an open session of a regular meeting of the Board of Directors; and (3) is distributed less than 72 hours prior to that meeting, will be made available for public inspection at the time the writing is distributed to the Board of Directors. Any such writing will be available for public inspection at the District offices (I 0440 Ashford Street, Rancho Cucamonga, CA 91730). Posted June 7, 2018

3 MINUTES OF THE ANNUAL MEETING of the FRONTIER PROJECT FOUNDATION BOARD OF DIRECTORS June 13, 2017 CALL TO ORDER The meeting was called to order at 5:35 p.m. Chairman Curatalo led attendees in the Pledge of Allegiance. ATTENDANCE Directors Present: Legal Counsel: James V. Curatalo, Jr, Chairman Luis Cetina, Vice Chairman Oscar Gonzalez Randall J. Reed Kathleen J. Tiegs Jeff Ferre, Best Best & Krieger Officers & Staff Present: Martin E. Zvirbulis, President Jo Lynne Russo-Pereyra, Vice President Carrie Corder, Treasurer Cindy Cisneros, Secretary Agnes Boros, Accounting Supervisor John Bosler, Chief Operating Officer Chad Brantley, Finance Officer Taya Victorino, Executive Assistant/Board of Directors PUBLIC COMMENT There were no members of the public present. APPROVE MINUTES On a motion by Director Tiegs and seconded by Director Reed, the Minutes of the June 14, 2016 Annual Meeting were unanimously approved. Passed 5-0. ELECT OFFICERS OF THE FOUNDATION FOR FY On a motion by Vice Chairman Cetina and seconded by Director Gonzalez, the following slate of Officers were elected to the Frontier Project Foundation for the Fiscal Year were approved. Passed 5-0. President Vice President Treasurer Secretary Martin E. Zvirbulis Jo Lynne Russo-Pereyra Carrie Corder Cindy Cisneros

4 Frontier Project Foundation Minutes - Board Meeting of June 13, 2017 Page 2 of 3 ELECT OFFICERS OF THE BOARD FOR FY On a motion by Director Reed and seconded by Director Tiegs, the following slate of Officers were elected to the Frontier Project Foundation's Board for the Fiscal Year Passed 5-0. Chairman Vice Chairman Director Director Director James V. Curatalo, Jr. Luis Cetina Oscar Gonzalez Randall Reed Kathleen J. Tiegs COMMITTEE ASSIGNMENTS It was announced to the Board that the Frontier Project's Executive Committee is set per the Frontier Project Foundation by-laws. On a motion by On a motion by Vice Chairman Cetina and seconded by Director Reed, the following individuals were appointed to serve on the Executive Committee. Passed 5-0. Executive Committee Chairman Vice Chairman President Treasurer James V. Curatalo, Jr. Luis Cetina Martin E. Zvirbulis Carrie Corder On a motion by Director Tiegs and seconded by Director Gonzalez, the following individuals were appointed to serve on the Development Committee. Passed 5-0. Development Committee Committee Member James V. Curatalo, Jr. Committee Member Luis Cetina RECEIVE AND FILE THE AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDING JUNE Mr. Brantley gave a presentation on the Audited Financial Statements for the year ending June 30, On a motion by Vice Chairman Cetina and seconded by Director Tiegs, to Receive and File the Audited Financial Statements for the year ending June 30, Passed 5-0. RECEIVE AND FILE FINANCIAL REPORT FOR 5 MONTHS ENDING MAY Mr. Brantley gave a presentation on the Financial Report ending May 31, On a motion by Director Gonzalez and seconded by Director Reed, to Receive and File the Financial Report for five months ending May 31, Passed 5-0.

5 Frontier Project Foundation Minutes- Board Meeting of June 13, 2017 Page 3 of 3 ADOPT ANNUAL BUDGET FOR FY 2018 Mr. Brantley gave a presentation on the Adoption of the Annual Budget for Fiscal Year On a motion by Director Reed and seconded by Vice Chair Cetina, to adopt the Annual Budget for Fiscal Year 2018 as presented. Passed 5-0. DIRECTORS' COMMUNICATION & CHAIRMANS REPORT No reports were given. OTHER BUSINESS None. ADJOURN There being no further business to conduct, the meeting was adjourned at 5:45 p.m. Martin E. Zvirbulis President

6 F p tllefrontierproj ect STAFF REPORT Frontier Project Foundation STAFF REPORT To: From: Agenda Title: Board of Directors [\ _ / Martin E. Zvirbulis, General Manager/CEO / YY J Audited Financial Report - June 30, 2017 Date: June 12, 2018 Purpose The Frontier Project Foundation's Audited Financial Report as of June 30, 2017 is presented for the Board's review. Background/ Analysis The District's auditors, Davis Farr, LLP, have completed their audit work of the Frontier Project Foundation's financial statements for the fiscal year ended June 30, 2017 on October 25, 2017, and issued an unqualified (clean) opinion. Staff has prepared the Financial Statements to help the Board evaluate the Foundation's financial performance. Although it is not legally required, the statements may assist the Foundation in obtaining donations and grant funding. Also, financial reporting by the Foundation is more transparent. The report has been prepared in accordance with generally accepted accounting principles, including the accrual basis of accounting. The data represented in the financial report reflect the results of operations for the year ended June 30, The total revenue for the year received from grants and donations is $71, 727. Revenue for display rental is $1,000. Expenses incurred for the year amount to $88,298 (including $6,221 depreciation expense) which resulted in a decrease in net assets of $16,571. Alignment with Strategic Goals A key element to the District's vision is to promote stewardship of financial resources. Fiscal Impact None Recommendation It is recommended that the Board of Directors receive and file the audited financial statements for the year ended June 30, 2017 as presented. Attachment: Submitted by: Prepared by: Summary Operating Statement as of June 30, 2017 Audited Financial Report as of June 30, 2017 ocsy~ Carrie Corder, Treasurer Agnes Boros, Interim Finance Manager

7 F p thefrontierpro1ec t FRONTIER PROJECT FOUNDATION Budget vs Actual for Fiscal Year As of June 30, 2017 Attachment Revenues Operating Statement Budget Actual Edison Grant $ 10,000 Other Grants 71,000 Donations 21,000 Display Rent Total Revenues 102,000 $ 42,000 28,727 1,000 71,727 Expenses Program Expenses Marketing $ 23,000 Outside Services 11,000 Outside.Labor 20,000 Materials and Supplies 15,000 Equipment Rentals 14,000 Other Donated materials & supplies 15,000 Printing & copying 2,500 Other expenses 1,500 Depreciation Total Expenses 102,000 $ 14,930 8,234 8,253 24,628 9,007 16, ,221 88,298 Net Revenues $ $ (16,571)

8 thefronti erproject Annual Financial Report For the Year Ended June 30, 2017

9 Vision Statement "The Frontier Project will show how sustainable design can be economical, efficient, and inviting by demonstrating innovations for Southern California living and working environments." Director James V. Curatalo, Jr. Luis Cetina Oscar Gonzalez Randall James Reed Kathleen Tiegs Title Chairman Vice Chairman Director Director Director Martin Zvirbulis, President Jo Lynne Russo-Pereya, Vice President Carrie Corder, Treasurer Cindy Cisneros, Secretary Frontier Project Foundation Ashford Street Rancho Cucamonga, CA (909)

10 Frontier Project Foundation AnnualRnancialReport For the Year Ended June 30, 2017

11 Frontier Project Foundation Annual Financial Report For the Year Ended lune 30, 2017 Table of Contents Page No. Table of Contents Financial Section Independent Auditor's Report Basic Financial Statements: Statement of Net Position Statement of Activities Statement of Cash Flows Notes to the Basic Financial Statements i-

12 Davis Farr LLP 2301 Dupont Drive I Suite 200 I Irvine, CA Mc1in: I Fax: Board of Directors Frontier Project Foundation Rancho Cucamonga, California Report on the Financial Statements Independent Auditor's Report We have audited the accompanying financial statements of the Frontier Project Foundation (Foundation), a component unit of the Cucamonga Valley Water District, as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the Foundation's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

13 Board of Directors Frontier Project Foundation Page Two Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the Foundation as of June 30, 2017, and the respective changes in financial position and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of the financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not effected by this missing information Other Reporting Requi red by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 25, 2017 on our consideration of the Foundation's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Foundation's internal control over financial reporting and compliance. Irvine, California October 25, 2017

14 Basic Financial Statements

15 FRONTIER PROJECT FOUNDATION Statement of Net Position June 30, 2017 ASSETS Current Assets: Cash and cash equivalents Accounts receivable Total Current Assets Noncurrent Assets: Capital assets, net (note 2) Total Assets $ 3, ,666 3,084 6,750 LIABILmES AND NET POSmON Current Liabilities: Accounts payable Accrued expenses Total Liabilities Net Position: Investment in capital assets Unrestricted (note 3) Total Net Position , $ See accompanying notes to the basic financial statements F p Statement of Net Position 3

16 Frontier Project Foundation Statement of Activities For the Year Ended lune 30, 2017 Operating Expenses: Program expenses $ 81,294 General and administrative 783 Depreciation 6,221 Total operating expenses 88,298 Operating loss (88,298) Non-Operating Revenue: Display rental 1,000 Donations Total non-operating revenue Change in net position (16,571) Net Position - Beginning of Year 22,727 Net Position - End of Year $ 6,156 See accompanying notes to the basic financial statements F Statement of Activities 4

17 Frontier Project Foundation Statement of Cash Flows For the Year Ended June 30, 2017 cash Flows from Operating Activities: Payments to suppliers $ (100,050) Net cash used by operating activities (100,050) Cash Flows from Noncapital Financing Activities: Receipts from donations and display rental 75,592 Net cash provided by noncapital financing activities 75,592 Net Decrease in Cash and Cash Equivalents (24,458) Cash and cash Equivalents - Beginning of Year 27,614 Cash and Cash Equivalents - End of Year $ 3,156 Reconciliation of Operating Loss to Net Cash Used by Operating Activities: Operating loss $ (88,298) Depreciation 6,221 Decrease in accounts payable (18,114) Increase in accrued expenses 141 Net cash used by operating activities $ {100,050~ There were no significant noncash investing, capital and financing related activities for the year ended June 30, See accompanying notes to the basic financial statements F p Statement of cash Flows 5

18 FRONTIER PROJECT FOUNDATION Notes to the Basic Financial Statements June 30, 2017 (1) Reporting Entity and Summary of Significant Accounting Policies A. Organization and Operations of the Reporting Entity The Frontier Project Foundation ("Foundation'') is an IRC 501(c)(3) nonprofit public benefit corporation formed for the purposes of (i) creating an interactive indoor and outdoor educational center to demonstrate current and future building design methods and techniques that promote resource conservation, (ii) aiding, promoting and advancing the principles of sustainable design in california living and working environments, (iii) educating residents and business owners of the surrounding communities on how to incorporate sustainable design standards in their residence and businesses, (iv) engaging in other activities in furtherance of the purposes for which the Foundation was formed, and (v) receiving, investing and utilizing funds and property acquired through solicitation of contributions, donations, grants, gifts, bequests and the like for the purposes for which the Foundation was formed. The Foundation is governed by an eight member Board of Directors. The Foundation's Board of Directors consists of the five members of the Cucamonga Valley Water District's ("District'') Board of Directors and three additional members appointed by the Foundation's board. As a result, the Foundation meets the provisions of Governmental Accounting Standards Board Statement No. 14 and No. 61 for inclusion in the financial statements of the District as a blended component unit. Nonprofit corporations controlled by units of local government are required to conform to the accounting and financial reporting requirements of the Governmental Accounting Standards Board. These financial statements present the operations and activities of the Foundation only. The financial statements of the District may be obtained from the District's administrative offices at Ashford Street, Rancho Cucamonga, CA B. Basis of Accounting The Foundation reports its activities as an enterprise fund, which is used to account for operations that are financed and operated in a manner similar to a private business enterprise, Where the intent of the Foundation is that the costs (including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through donations. Revenues and expenses are recognized on the accrual basis. Revenues are recognized in the accounting period in which they are earned and expenses are recognized in the period incurred, regardless of when the related cash flow takes place. Nonoperating revenues, such as donations and display rental income, result from nonexchange transactions or ancillary activities in which the Foundation gives (receives) value without directly receiving (giving) equal value in exchange. When both restricted and unrestricted resources are available for use, the Foundation uses restricted resources and then unrestricted resources. C. Financial Reporting and Presentation The Foundation's basic financial statements are presented in conformance with the provisions of Governmental Accounting Standards Board (GASB) Statement No. 34, "Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments" (GASB No. 34). This statement established revised financial reporting requirements for state and local governments throughout the United States for the purpose of enhancing the understandability and usefulness of financial reports. Notes to the Basic Financial Statements 6

19 FRONTIER PROJECT FOUNDATION Notes to the Basic Financial Statements, continued lune 30, 2017 (1) Reporting Entity and Summary of Significant Accounting Policies, continued C. Financial Reporting and Presentation, continued The Foundation has not presented Management's Discussion and Analysis (MD&A) as required by the provisions of GASB No GASB No. 34 and its related GASB pronouncements provide for a revised view of financial information and restructure the format of financial information provided prior to its adoption. A statement of net assets replaces the balance sheet and reports assets, liabilities, and the difference between them as net position. A statement of revenues, expenses and changes in net position replaces both the income statement and the statement of activities and contributed capital. GASB No. 34 also requires that the statement of cash flows be prepared using the direct method. Under the direct method, cash flows from operating activities are presented by major categories. D. Assets, Liabilities and Net Position 1. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported changes in Foundation net position during the reporting period. Actual results could differ from those estimates. 2. Cash and Cash Equivalents For the purpose of reporting cash flows, the Foundation considers all highly liquid debt instruments, including money market funds, purchased with original maturities of three months or less to be cash equivalents. The carrying amount of cash and cash equivalents approximates fair value due to the short-term nature of these financial instruments. 3. Capital Assets capital assets are recorded at cost if purchased or at acquisition value at date of donation. Depreciation is provided using the straight-line method of depreciation over the estimated useful lives of the assets, ranging from three to ten years. capital assets are capitalized if the cost or donated acquisition value of an asset is greater than, or equal to $2, Income Taxes As a publicly supported organization, the Foundation is exempt from federal income taxes under Internal Revenue Code Section 501(c) and the corresponding provisions of the california Revenue and Taxation Code. Accordingly, no provision for income taxes has been reflected in the financial statements. F p Notes to the Basic Financial Statements 7

20 FRONTIER PROJECT FOUNDATION Notes to the Basic Financial Statements, continued June 30, 2017 (2) Capital Assets Depreciable Assets: Furniture and equipment Less: accumulated depreciation Furniture and equipment Total depreciable assets, net Total capital assets, net Balance July 1, 2016 $ 105,274 $ (95,969) 9,305 $ 9,305 $ Additions/ Retirements/ Balance Transfers Transfers June 30, 2017 $ $ 105,274 (6,221) (102,190) (6,221) {6,221~ $ ~ 3,084 (3) Net Position - Unrestricted Board Designated The Board of Directors designates net position for certain activities of the Foundation. As of June 30, 2017, the designation was $3,072. F Notes to the Basic Financial Statements 8

21 F p tllefrontierpro1ect STAFF REPORT Frontier Project Foundation STAFF REPORT To: From: Agenda Title: Board of Directors Martin E. Zvirbulis, General Manager/CEO Financial Report - May 31, 2018 Date: June 12, 2018 ~ Purpose The Frontier Project's Financial Report with budget comparison as of May 3 I, 2018 is presented for the Board's review. Background/ Analysis Staff has prepared a Financial Report, comparing actual results to the annual budget to help the Board evaluate the Frontier Project's financial performance. The unaudited report has been prepared by staff in accordance with generally accepted accounting principles, including the accrual basis of accounting. The data represented in the financial report reflects the results of operations for the eleven-month period ended May 3 I, The total revenue for the period received from grants, and donations is $74,012. Expenses incurred for the period amount to $58, 132 which resulted in net revenues of $15,880. Alignment with Strategic Goals A key element to the District's vision is to promote good stewardship of financial resources. Fiscal Impact None Recommendation Staff recommends the Board of Directors receive and file the report. Attachment: Submitted by: Prepared by: Financial Report as of May 3 I, 20 I y Carrie Corder, Treasurer cc. ft Agnes Boros, Interim Finance Manager

22 F p thefronti e rproject FRONTIER PROJECT FOUNDATION Budget vs Actual for Fiscal Year As of May 31, 2018 Attachment Revenues Operating Statement Budget Actual Edison Grant $ 10,000 Other Grants 35,000 Donations 21,000 Total Revenues 66,000 $ 5,000 36,074 32,938 74,012 Expenses Program Expenses Marketing $ 17,000 Outside Services 9,000 Materials and Supplies 15,000 Equipment Rentals 7,000 Other Donated materials & supplies 15,000 Printing & copying 1,500 Other expenses 1,500 $ 8,153 9,089 13,992 2,420 24, Total Expenses 66,000 58,132 Net Revenues $ $ 15,880

23 F p tllefrontierpro1ect STAFF REPORT Frontier Project Foundation STAFF REPORT To: From: Agenda Title: D e:june 12, 2018 Board of Directors Martin E. Zvirbulis, General Manager/CEO fe Annual Operating Budget - Fiscal Year 2019 Purpose The Frontier Project Foundation's Annual Operating Budget for fiscal year 2019 is presented for the Board's review and approval. Background/ Analysis Staff has prepared an Annual Operating Budget as a means of projecting and estimating revenues, as well as identifying and planning expenses for the fiscal year. Staff is currently proposing a budget of $73,000 which includes costs for programming that would only be implemented when there is a corresponding grant or sponsorship funding identified. The Foundation's Operating expense budget will pay for Earth Day, Poster contest, Environmental Learning Center Garden and related student bussing costs. Alignment with Strategic Goals A key element to the District's vision is to promote good stewardship of financial resources. Setting and continual monitoring of the budget is consistent with this goal. Fiscal Impact The proposed operating budget is funded from anticipated grants and donations. Expenses will be incurred only if related grant/donation funding is received. Recommendation Staff recommends the Board of Directors adopt the Annual Operating Budget for fiscal year Attachment: Annual Operating Budget - Fiscal Year 2019 Submitted by: Prepared by: Carrie Corder, Treasurer ~avj' Agnes Boros, Interim Finance Manager

24 F p FRONTIER PROJECT FOUNDATION Budget for Fiscal Year June 12, 2018 Attachment tl1efrontie rpro jec t Revenues Operating Budget FY Budget Edison Grant Other Grants Donations $ 35,000 7,000 31,000 Total Revenues 73,000 Expenses Program Expenses Marketing Outside Services Outside Labor Materials and Supplies Equipment Rentals Other Donated materials & supplies Printing & copying Other expenses $ 7,500 12,000 25,000 4,500 22,500 1, Total Expenses 73,000 Net Revenues $ Note: Expenses will be incurred only if related grants and donations are received.