Minutes of the Regular Meeting of NMSBIC, September 23, 2019

A meeting of the New Mexico Small Business Investment Corporation was called to order on this date at 9:00 a.m. at WESST Enterprise Center, 609 Broadway Blvd., N.E., Albuquerque, New Mexico. A quorum was established after roll call.

Members Present:
Mr. Joseph H. Badal, Chair [by telephone]
The Hon. Tim Eichenberg, New Mexico State Treasurer [by telephone]
Mr. Alan Fowler, Secretary/Treasurer [by telephone]
Mr. Guadalupe Garcia [by telephone]

Members Excused:
Mr. Steven E. Morgan
Ms. Roxanna Meyers, Vice Chair

Financial Adviser to Board: Mr. Russell Cummins

Board Legal Counsel: None.

Recording Secretary: Ms. Charmaine Clair, for Judith Beatty

Guests Present:
Mr. Jake Dopson, Partner, Pulakos CPAS
Mr. Ryan Thorpe, Assurance Manager, Pulakos CPAS
Ms. Dee Brescia, NMSBIC Accounting Contractor [by telephone]

REVIEW AND ACCEPTANCE OF AGENDA

Mr. Eichenberg moved acceptance of the agenda, as published. The motion was seconded by Mr. Garcia and passed unanimously.

PULAKOS CPAS: JAKE DOPSON, PARTNER; RYAN THORPE, ASSURANCE MANAGER

Mr. Dopson reported that the conversion to GASB has happened effectively and correctly, and the financial statements are therefore presented in accordance with GASB.

Mr. Dopson stated that Pulakos received full and complete cooperation from everyone involved during the audit process. He said they did not come across any instances of what they would consider inappropriate or improper activity. In addition, there were no audit adjustments.

Mr. Dopson said Pulakos saw nothing that would rise to the level of a material weakness.

Mr. Dopson said the Auditor’s Report is an unmodified, or clean opinion on the financial statements themselves, which is the best opinion one can get.

Mr. Dopson said the auditor’s opinion does not extend to the management’s discussion and analysis, and that is noted within the audit report. Also included in the financials are the supplementary schedules for the debt and equity investments, and the audit opinion does extend to those schedules.

Chairman Badal reminded the board that it asks Pulakos to send the audit directly to the state rather than through the NMSBIC.

Mr. Cummins said that, as required by the legislation, copies of the report are sent to the Governor and the Chairman of the Legislative Finance Committee. As a courtesy, a copy is also sent to the State Investment Council.

Mr. Cummins suggested that the NMSBIC also have Pulakos CPAs transmit a copy to CliftonLarsonAllen, the state’s auditor, since they do routinely ask for a copy during the year. Mr. Eichenberg commented that the NMSBIC has always been transparent and upfront, and he commented that it should send the audit report to anybody who requests it.

NMSBIC DRAFT AUDITED FINANCIAL STATEMENTS

Mr. Eichenberg moved to accept the draft audited financial statements, as presented. Mr. Fowler seconded the motion, which passed unanimously.

NMSBIC DRAFT ANNUAL REPORT

Mr. Cummins said highlights of this report were included in a presentation he made on September 5 to the Investments and Pensions Oversight Committee of the New Mexico Legislature.

Chairman Badal commented that he thought this was the best report the NMSBIC has done to date, and he appreciated Mr. Cummins’ hard work on it.

Mr. Garcia moved to accept the draft annual report Mr. Eichenberg seconded the motion.

Mr. Cummins noted one change in the report. He said a picture of Smokey the Bear had been originally included, but was removed after Mr. McDonald pointed that the image is trademarked by the US Forest Service. Mr. Cummins said he can replace the picture of an historic marker, since those aren’t subject to the government’s trademark. Mr. Eichenberg suggested hot air balloons. Chairman Badal suggested Mr. Cummins pick something that is supportive of the NMSBIC’s mission.

The motion passed unanimously.

ADJOURNMENT

The meeting adjourned at 9:15 a.m.