Shuyong Jiang (Chair)
IS THIS AN Interim or annual
REPORT? _ _ Interim X__Annual
Charge of the Task Force on Liao Jing Fund
task force will work closely with the Constitution and Bylaws committee, the
Handbook of CALA Officer's Task Force, and in consultation with the CALA
Treasurer, to work out the financial issues regarding the establishment of the
Jing Liao Fund. You will also work out the management issues regarding the
fund, and the process of selecting recipients for awards. The task force will discuss with the donor
and seek legal advice if necessary to draft a binding document, the MOU, which
will satisfy both the intention of the donor and the mission and principles of
to the charges of the TF, there are three basic tasks：
The TF reviewed existing funds as reference
from the following key elements.
Summary of the findings and tasks the TF has
The donor has suggested that any
index funds will be fine to invest, and probably better to find a company that
CALA has already had investment. The TF evaluated the situation and looked into
the CALA accounts. The current CALA
award funds are mainly invested in two companies: one is Janus
(Shela Lai Fund) and the other Vanguard (Huang Tso-ping & Wu Yao-yu
Scholarship, C.C. Seetoo fund, and Sally C. Tseng fund all invested in its
Vanguard Total International Stock Fund). While Janus account is gaining values over time, the Vanguard
funds have lost some value over the years due to economic crisis.
The TF checked "morning
star mutual fund rankings" to find good funds and came up with a list of six funds from
Janus and Vanguard. Among the six, three of them are the ones that CALA already
has invested, and the other three were browsed in the Morningstar and have good
Based on the information provided
by the TF, the donor picked the Fidelity Capital and
Income Fund as his preference to invest the
The TF reviewed CALA existing funds and the
efforts of sustaining the funds are different from fund to fund. The Shelai Lai Fund is
self-sustained as the Janus fund is doing well and has gained value over time. There
are fundraising efforts, especially during the years of 2008-2010, made by the
CALA Financial Committee to solicit donations for Sally C. Tseng Professional Development Grant, and this is the fund that is still sufficient. The other
two funds are actually running very low in value. With this information, the TF
suggested that 1) CALA should find a good fund account to invest as suggested
in the point #1 above; 2) CALA will make fundraising efforts, 3)the donor can consider further
contributions should it become necessary to replenish or enhance the fund in
the years to come.
The existing CALA funds are also differently
managed in terms of involvement of the donor in selecting the finalist of the
receipt of the award. The Sally
C. Tseng Professional Development Grant has the donor Sally Tseng involved in the selection process as
the Chair of the award committee, and others are run by CALA Award Committee.
The TF reviewed the pros and cons of the different model, and suggested that
the selection will be done by an appointed award committee, the committee will
recommend 2-3 candidates to the donor, and donor will pick the final candidate.
TF believes this is the best model to ensure the fairness.
TF also discussed the criteria for the
selection process. This document will be posted on the CALA web page, so it is
clear and accessible to all CALA members.
The TF also prepared the draft of the MOU. CALA
currently does not have any records or MOU for the existing 4 funds, so the TF
has to start from scratch. However, the donor's proposal laid out some basic
principles for the fund and the TF members also met with the Donor to discuss
details, so the draft of MOU reflects the CALA's mission and principle as well
as the intention of the Donor.
The MOU was approved by the Board and now
signed by both the CALA president, Zhijia Shen and the Donor, Prof. Zongqi Cai.
Before the MOU was signed by the Donor, the TF also asked the CALA Executive
Director, Haipeng Li to sign the MOU, but Haipeng failed to respond to the TF
in the timeframe provided by the TF. There are two originals, one for the Donor
and one for CALA. The signed copy was also scanned, and the scanned copy was
shared with the CALA President, CALA Executive Director, CALA treasurer and TF
The TF also drafted a Thank You letter to all
the people who donated to the fund. The Letter and the list of names are posted
on the CALA web. The checks are to be sent to the CALA Treasurer to make the deposit
for investment. The CALA Treasurer will send a receipt along with a thank you
letter to each donor.