USPS EDUCATIONAL FUND
EDUCATIONAL FUND TRUSTEES’ MEETING
2 September 2010
Hyatt Regency Bellevue, WA
Chairman Spencer Anderson called the meeting to order at 1000. The following trustees and guests were present:
Spencer Anderson – Trustee, Chairman
Kenneth Griffing – Trustee, Secretary
Wayne Spraggins – Treasurer
David Drummond – Trustee
Richard Kyle – Trustee, Vice Chairman – part time via telephone
Barbara Spraggins – Administrative Assistant
Robert Sweet – NEO, Guest
Joe Messenberg ‐ Guest
Tom Butler – Guest
Spencer Anderson indicated he had a written proxy from trustee Dick Kyle who was unable to attend the meeting
because of health reasons. Minutes of the 4 February 2010 meeting at Disney Coronado Springs Resort were
approved as distributed. Actions by the Trustees since the February 2010 meeting were reviewed and approved.
This involved the extension of Grant 198 to the Fall Governing Board Trustees meeting.
By way of discussion of the trust fund results a report by Riazzi Asset Management dated 30 July 2010 had been
distributed to the Trustees prior to the meeting. Dave questioned our holding assets of Freddie Mac and Fannie
Mae when problems with these organizations have been well discussed for some time. He asked if Riazzi had given
any recommendations regarding these holdings, and if we had the right asset manager. Joe Messenberg
commented that we should be looking at the bottom line results of our manager and not individual items. John
Riazzi had been a part of a group that advised USPS when he broke away from the group and formed his own
organization. He had been our advisor and offered us a more favorable rate than the prior organization so we chose
to go with his firm and to use Schwab as our custodian. Joe has some question about our use of Schwab and their
rates but said through using Riazzi he should be able to negotiate a better rate from Schwab than we are getting.
Riazzi’s distribution of our assets should be in accord with our goals. The fees and commissions should be a minor
concern but bottom line results are what is critical, particularly with respect to comparison with something like
Standard & Poor. Joe offered to look over Riazzi’s report and offer comments, if appropriate. He was encouraged to
Joe also indicated he had had a meeting with Wayne and Barbara Spraggins per our request in anticipation of a
formal audit of the Educational Fund records. He indicated that we are in much better shape than he expected and
that the spreadsheets created by Spraggins are in excellent shape. He suggested that Barbara and Wayne pick a
small CPA firm in their area to do the audit and give them a schedule for completion. He suggested they interview
two or three firms with low rates and that he would be happy to work with them to select one. Spraggins were
asked to provide a recommendation to the Chairman for Trustee concurrence prior to 30 November so that the
audit could be completed during December 2010 prior to our next Annual meeting in February 2011.
Treasurers Report – Wayne distributed reports of our Checking, Income, and Grant Account for 2010 as well as
deposits made to our bank account and expenditures, all through 20 July 2010. He commented that the Riazzi and
Schwab numbers are not in agreement and that he will ask Riazzi about that. The HQAB numbers are not yet
current, but contributions received year to date from both HQAB and directly through the Administrative Assistant
The Chairman has received a report from Connie Beckman on Grant 202. A summary report of all Grants to the
Educational Department was received from Bob Sweet but to date no detailed report as required 30 days before the
meeting. Bob pointed out that part of the purpose for his summary report was to identify benefits of the
Educational Fund. He also indicated that he hoped to add a grants coordinator at Headquarters to provide support
for keeping grant related items current and accurate.
Sweet indicated that the Squadrons are leaning heavily on partnering arrangements like the new Brunswick MOU
and on BOC. He is looking at using professional individuals from the partners and capable USPS people coordinating
the projects, such as writing press releases. He wants to initially push ABC‐3 (classroom) with the next step being
on‐the‐water training. Bob requested that Grant 198 remain open through 30 September to allow the NEO to get
the completed billing in. The request was approved. Basis for extending Grant 198 through 30 Sept is to include
award shipping costs.
The Educational Department is establishing a new Outreach Committee (Hugli) to do outreach within the
Department. As a part of Grant 199 Bob will at least have a plan in this regard for our Feb 2011 meeting.
Grant 200 regarding Trailer Boat Magazine ads is closed.
Education Outreach Grant 201 for work with outside organizations is progressing and Sweet is getting regular calls to
work together from big players including ABYC and Boat US.
The ABC‐3 web site has been improved (Grant 204) and the Fire Extinguisher demonstration has also been very
successful (Grant 205).
Bob provided two new Grant Proposals, one to update the ABC‐3 course and one to provide a phase 2 to the course
stimulus (awards) program.
Spencer distributed a report prepared by Vice Chairman Richard Kyle on his activities since February. These included
squadron contribution tracking update, expense form update, grant request form update, ongoing review of
expense reports from Headquarters, and development of an investment policy statement.
The Secretary reported on web site update activities since February including audit and update of the Honor Roll
report, inclusion of the new Grant Request form (EFGR), addition of some recent Grant Requests as examples,
update to the Grant History, an updated Expense Voucher form (EF‐01), data regarding the Trustees, updates for Ed
Fund meeting agendas, minutes and investments and a revision to the grant submittal process. The reports for
Honor Roll (squadrons and districts), Grant History, and meeting reports are intended to be updated after each
annual and governing board meeting.
The Trustees adjourned to executive session to review new grant proposals and any other appropriate business
Wayne provided a copy of a grant request from Sea Scout Ship Neptune in the amount of $10,000 to assist in the
refitting of a training vessel and dock improvements for this ship of the Sacramento (CA) Delta Youth Maritime (sic)
Association. The request was discussed and it was determined that the project was outside the purpose of the
Educational Fund grants. Denied. Wayne agreed to notify the requester.
The request by Bob Sweet for $30,000 to assist in the update of the ABC‐3 internet course was discussed. It was
Moved, Seconded, and Carried (MSC) to approve this grant (Grant 207). It is intended that this effort will be
coordinated by Pablo Prieto under the direction of Gene Molteni.
The request by Bob Sweet for $4500 to provide a Phase 2 Course Stimulus program was discussed. It was MSC to
amend the amount to $4000 and the request was also MSC. (Grant 206)
Grant Request No. 206 – Course Stimulus Phase 2 APPROVED $4,000
Grant Request No. 207 – ABC‐3 Internet Course Update APPROVED $35,000
Grant Request– Sac. Delta Youth Maritine (sic) Assoc. Refit DENIED
Wayne commented that approval of these two items could be done within our available funds but we will be close
to our limit.
There was no New or Old business.
Suggestions for future Trustees were requested in the coming weeks.
The meeting was adjourned at 1215.
Kenneth L Griffing, Secretary