SAM Investment/Finance Committee
Meeting
Wednesday, October 19, 2016
9:15 am – 10:00 am
MCEL 2016
Billings Red Lion Hotel & Convention Center, Jefferson/Gallatin Room
MINUTES
Present:
Rick Duncan, Paul Furthmyre, Laurie Barron, Jon Konen, Rich Lawrence
(remote), Kirk Miller, Pat Audet, Gary Wagner, Dan Kimzey (9:40)
Absent:
Chris Bilant
Call to Order
Paul opened the meeting at 9:20 with introductions
Deletions/Additions
to Agenda
None
Policy (pp. 40-47) Approved by the SAM Board June 16, 2016 – Kirk described the meeting and the
history of the Investment/Finance Committee and how it came to be.
Kirk went briefly went through the Investment – Finance Policy. This is the first policy of this kind for
SAM. He also described the Responsibilities of the Investment/Finance Committee
Kirk then described the Review of Financial Statements:
 Reviewed each of these reports with the committee: SAM 15-16 Actual and 16-17 First
Quarter
– Revenue, Expenditure, Net Profit; 15-16 Profit Loss for LPLP, MCEL, Youth Endowment, AI; SAM
Youth Endowment Distribution
 Kirk and Gary described the budget explaining journal entries and line items as per quarter (example
LPLP, membership dues)
 Reviewed the MCEL Profit Loss – SAM makes 38% of the profits – focus is exhibitors -2014 –
increased vendors fee from 250 to 800.
 Reviewed the LPLP Profit – Loss.
 Reviewed the SAM Youth Endowment – described the distribution also – 75% goes to out to needy
students and their families through applications submitted by SAM members and approved by the
SAM Board at their April meeting.
 SAM Administrators Institute 2015 Profit-Loss was next in discussion – Net $12,766
Description of policy indicating when SAM or an Affiliate can vote to invest funds available -- SAM is a
$500,000 annual operation (12 months operating costs – available in checking, savings and non-invested
funds). When funds available exceed $750,000 (18 months operating costs), then the SAM Board can
seek investing the funds in excess of the 18 months operating costs. Right now SAM has $212,000 in
funds available. We will need to have revenue exceed expenditures for a period of time to insure the
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available funds are within the policy recommendation of needing 12 months or $500,000 for SAM. Each
Affiliate will operate the review of 12 months to 18 months available funds to determine if Boards can
seek investments.
Kirk then briefly described each of the affiliate budgets of five.
Kirk reviewed the Investment Reports for 1st quarter 16-17 and end of fiscal year for 15-16. He went
through each affiliate checking balance for end of 15-16. He then showed and described the portfolios
describing the various investments for each affiliate (MACSS, MCASE, and META are currently not
involved in investments). There is approximately $500,000 in investments so in sum, SAM Net Worth is
basically around $1 million – $500,000 in operating funds and $500,000 in investments.
Kirk then described the checking and investments of SAM, rolled together – net worth $212,000 – 44%
of where it needs to be ($500,000 annual operating costs) and would need to be at that 18 months mark
($750,000) by policy before investing further. He then went through each affiliate as each is governed
by the policy.
Investment Strategy – Managed fund portfolio by DA Davidson – Brent Reum and Cody Kirk are our
Investment Adivisors
 DA Davidson recommends using a Managed Fund Portfolio – watched by professional investors
at DA Davidson
 This item will be considered by the Investment/Finance Committee at their next meeting
Next Meeting: January 13 – 8:30 a.m.
Adjourned at 10:10 am
Respectfully Submitted,
Pat Audet
SAM Associate Director
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