Online Services | Commonwealth Sites | Help | Governor

Welcome to the Virginia Department Of Forestry

Meeting of the Board Of Trustees of the
Foundation for Virginia's Natural Resources

Minutes

July 26, 2007, 3:30 p.m.
Virginia Department of Forestry
Board Room, Charlottesville

Board of Trustees Members Present

VDOF Staff Members Present

Recorder of the Minutes

The meeting/teleconference convened at 3:30 p.m.

Chair Gilliam stated that there are three main issues open for discussion. Following is a description and results of those discussions.

1. Explore the possibility of adding an item to the DOF budget request that will be submitted to the Department of Planning and Budget (DPB) in Richmond. Funds would be used to support Board of Trustees meeting expenses for food and travel and other expenses incurred by VDOF (staff time, telephone calls).

Ron Jenkins stated that he has spoken with Secretary Bloxom and staff at DPB. There is a process in place for non-state agencies submitting budget amendments which is distinctively separate from state agency submissions. This would be an independent effort by the FVNR.

New instructions are not yet available; however, Faye DiFazio distributed a copy of last year's instructions for reference. Ms. DiFazio stated that usually only minor changes are made from year-to-year, and the old instructions could be used to begin the process of requesting funds this year. Approval from the Office of Attorney General (OAG) and DPB is required.

Ms. DiFazio stated that another option would be for a patron to submit a budget amendment to the 2008 General Assembly on behalf of the Foundation. She also suggested that both methods be used to request funds or decide what the best strategy would be.

In December, the Governor will make a public announcement regarding approval of state agency budget submissions.

Chair Gilliam stated that he is confident that Senator Hanger would be a patron for a budget amendment for FVNR. David Larimer, Board member and legislative aide to Senator Puckett, has also expressed his interest in helping with this. Eleanor Brown stated that Del. Lewis may also be willing to support a budget amendment.

The deadline for submitting a budget request through DPB is earlier than submitting a request for a budget amendment through a legislative patron.

Ms. DiFazio will notify Chair Gilliam of the deadline for this year and will submit the new instructions to him when they become available.

Mr. Jenkins stated that the DPB instructions and forms are on DPB's web site. All submittals for budget requests are done electronically and instructions are given for where the request is to be submitted.

Jim Garner stated that Secretary Bloxom and Secretary Bryant should be made aware of this budget request/amendment and that they should get copies of the paperwork since they will be involved at some point.

Ms. Brown asked how the Board could have an influence in this decision, to which Mr. Garner stated that Secretary Bloxom and Secretary Bryant would be the behind-the-scene key in this process.

Mr. Jenkins stated that he has no experience with the non-state agency process but that VDOF would be happy to provide any assistance possible in making direct appeals to DPB. He also warned that there is a $300 million budget shortfall the Governor is dealing with this year.

Chair Gilliam suggested that, once the amount of funds and the process has been determined, Ms. Brown, Mr. Stephens and he should make personal visits to Secretary Bloxom and Secretary Bryant to inform them of how much the Foundation is asking for and why. Contacts with legislative appropriations committee members may be helpful also.

Ms. Brown and Mr. Stephens questioned whether the Foundation is being guided in the right direction being labeled as "non-state agency" vs. a "political subdivision of the Commonwealth" as referred to in the Code of Virginia § 2.2-1505. Non-state agencies must qualify under 501(c)(3) of the Internal Revenue Code, which the Foundation does not. Mr. Jenkins stated that staff of DPB gave this direction and they were aware of the Foundation name and Code section. Chair Gilliam will contact Flora Hezel at the OAG and ask for clarification. Mr. Garner suggested that more than one opinion should be requested.

Discussion ensued regarding budgets for the Virginia Outdoors Foundation and the Virginia Land Conservation Foundation (associated with DCR). Ms. Brown recommended contacting DPB to find out how other Foundations have handled budget requests. Mr. Stephens stated that FVNR does not have language in the Code ("general fund moneys") as other Foundations have regarding budgets. Mr. Garner questioned the amount of funds to request, whether FVNR should request the minimum to get by or what it will take to operate legitimately with part-time help, etc.

Chair Gilliam stated that he would calculate an amount it would take to operate with a full Board and that this discussion will be continued. Chair Gilliam will contact the OAG, and Mr. Jenkins will re-contact DPB.

Mr. Jenkins stated that wording in the existing Code will determine what can be done and that legislation may be needed to accomplish the end result. He summarized, stating that he will:

2. Begin the development of a specific protocol for receipts and disbursements from the fund. Obtain external assistance to help with accounting (in coordination with VDOF).

Chair Gilliam stated that most donations to the Trust Fund to date are unrestricted. He makes calls every day to potential donors for 100 scholarships for educators ($500 each) to attend the NAAEE Conference in November. These donations will have to be tracked and disbursed. Brenda Taylor has agreed to maintain a log of donations whether unrestricted or restricted for a specific purpose.

Ms. DiFazio stated that there are fiscal procedures in place to handle this accounting. She expressed a concern that if restricted donations are received and the entire amount is not used for the purpose intended, there needs to be an agreement with the donor that the excess can be used for other purposes.

Mr. Garner questioned who will authorize disbursements. Ms. DiFazio stated that VDOF has designated Carl Garrison and Brenda Taylor to authorize disbursements from the Trust Fund with approval by the Board. Chair Gilliam stated that by Code a specific Board member would have that primary responsibility and asked Ms. Brown as Treasurer to see to this duty. Ms. DiFazio agreed to send Ms. Brown a set of fiscal instructions for authorizing expenditures as well as a monthly printout of the Trust Fund budget. Mr. Garner asked that Board members be kept informed of disbursements.

Ms. DiFazio reminded everyone that any amounts over $5,000 have to be bid according to state policy and that eVA procedures must be adhered to. Mr. Jenkins stated that there is a 30-day policy for payouts and disbursements are not posted until bills are paid.

Ms. Brown stated that there is incentive in asking for lots of money to get separate from VDOF. Mr. Jenkins reminded the group that there is no enabling clause in the legislature for receiving general funds. Mr. Garner stated that Senator Hanger's help is needed to get this fixed. Mr. Stephens stated that it has been confirmed that FVNR has passed the sunset clause, and he will send Chair Gilliam and Mr. Jenkins a copy of this confirmation by email.

Chair Gilliam asked for Mr. Jenkins' and Ms. DiFazio's help with language using the Code section from the Outdoor Foundation regarding open space (10.1-1801.1 and 10.1-1020) as a sample.

Chair Gilliam, Ms. Brown and Ms. Taylor will continue discussion regarding the contribution system for donations and disbursements.

3. Discuss the need to move forward on establishing the parallel non-profit and the advantages and disadvantages of that action.

Ms. Brown suggested creating the parallel non-profit status before asking for money. Ms. DiFazio stated that the application process could take up to four months or longer. Until then, money will need to be accessed from other sources. Mr. Stephens stated that application could be made to the IRS for recognition under Section 501(c)(3) as late as 27 months after formation of a subsidiary corporation, and donations would be deductible back to the date of formation.

The meeting/teleconference adjourned at 4:45 p.m.

Last modified: Friday, 07-Mar-2008 14:13:37 EST