Executive Committee TCB Council Conference Call
September 29, 2004 12:30 PM Eastern time
PARTICIPANTS:
Chair, Barbara JudgeCompliance Certification Services
Sid SandersTimco Engineering
Bill GraffAmerican TCB (did not attend call)
Greg KiemelNorthwest EMC
Tim DwyerTUV Rheinland
Nick CobbRFI Ltd. UK
Dan LawlessBroadcom Commuications
Secretariat, Chris HarveyChris HarveyEMC Consultants
Agenda:
Review minutes of previous meeting7/28/04, accepted unanimously.
Review finances
Review agenda for Workshop
Speakers for Awards Luncheon
TCBC Meeting Agenda
February Workshop
ANSI fee complaint from Timco
Next ExCo Conf. call
Opening Remarks:
Re-send web site links to the Ex Com
Web site theoretically by end of October should be running and live.
Tim Dwyer would like the web site link sent again.
Greg Kiemel, Financial statements:
Quarterly statements should be coming out mid-October. We have transferred the $100k funds into the Raymond James Account, has been there for about 3 weeks in a low interest account. We need to sign up to an investment policy and then decide on some investments. Greg sent out some recommendation from Alan Ray, for 3-5 year investment timeframe. The investment policy should not have a loss of principle, and probably not have large growth during good times. Greg feels we don’t have the bandwidth to micro-manage and switch investments ourselves, but leave it to the expertise of Alan Ray with a minimal annual or semi-annual review. Greg opened up for discussion of this situation. The investment policy pretty much is ready to go with some blanks to fill in. After several conversations Greg and Alan have come up with the following:
20% floating rate fund, not interest rate sensitive
80% Equities
fixed yearly 1.6% fee for investment
most mid or small cap funds
Discussions: about purchasing individual stocks, but Greg wanted to lean toward funds. Barbara asked if we were supposed to select from the list, or was he recommending all the funds. Alan made allocation recommendations, so he recommended all funds listed. Greg, for the Eaton Vance Floating Rate 2-star fund, wants more justification from Alan as to why it was selected.
Greg asked for questions. Tim recommended a statement that we need to avoid (or not choose) funds heavily tied to the wireless or telecommunication industry (conflict of interest).
Barbara, if we add that statement and fill-in-the-blanks can Greg send to Alan. There is no estimate of withdrawals (no withdrawals are anticipated at this time), and estimate adding $20k/year.
Unanimously agreed. Greg to complete the policy and send to Alan.
Chris sent e-mail to Alan asking who is supposed to sign the Investment Policy.
Greg to ask Alan why the Eaton Floating Rate Fund.
Alan joined the conference-call. Greg indicated that the Ex Com is satisfied with the document but asked for justification for the selection of floating Rate fund. The committee is concerned with the 2-star Morningstar fund rating. Alan’s office spent quite a while on deciding, after 60-days we have full liquidity of funds, the structure and approach, fairly stable net asset value. Greg had indicated a little more conservative approach, Alan feels keeping 30% in the floating rate and drop the small-cap fund. The Eaton fund is relatively new (1.5 years) and some funds have had problems with stability of funds. 1.09% fee over small income seemed low. Fixed income could be looked at again in 6 months, but with Interest Rates being what they are this is not recommended now.
The current Money Market fund is about 1%.
Value of dollar continue to fall, large cap area of market, international provides more
Energy, is a pretty solid growth in the next few years.
First Eagle has a great record, and one of the better funds around.
Greg has question about wording about conflict-of-interest concern:
Most mutual funds are very diversified, and therefore we will diversify using funds, and avoid investing in individual stocks.
Barbara and Alan agree that limiting to avoiding individual stocks provides sufficient protection from conflict of interest.
Who is supposed to Sign the Investment Policy? Barbara is one of them. Alan to
Alan left the call…
Barbara asked if we go with the proposed Investment Policy… Motion by Sid, seconded by Dan, unanimously approved.
Awards Luncheon 10/15/04 speaker from TIA from industry to speak about the impact of the TCB’s on industry.
Photos of awards have been sent again by Barbara for comments. Tim and Nick did not receive last time, but did just get the e-mail. The prevailing winds have us getting the Octagonal thing. Tim agreed.
Discussion of TCB Council Meeting agenda for morning of Friday 10/15
Web site
Finances
ANSI to discuss stuff
Sid discuss cost of assessments
Barbara has to leave the call. Since November 24th is the day before Thanksgiving, shall we change the meeting to December 1st?
Barbara left the call.
Sid sent the latest bill from ANSI, 12.5 man days for an assessment is absolutely ludicrous, but we can complain to NIST but nobody really cares.
Tim agrees, the costs are high, the responsiveness (there is none), and how can they justify the amount of time.
Sid agrees that ANSI needs some competition. In the original TCB Docket, was there any discussion about who would assess? Tim, There was a small window of opportunity to apply to be the assessor, and A2LA or NVLAP were not assessors of accreditation programs. What about Standards Council of Canada, but Tim feels that they can not come here because they are blocked. And they (SCC) are reasonable and already accrediting Certification Bodies.
Tim motioned to adjourn. Sid seconded. Unanimous vote. Meeting adjourned.
Attachments distributed for call:
Conference call concluded at 1:45 PM. Next conference call will be on December 1st, 2004, 12:30 PM eastern US time.