Page 35 - 2020 Annual Report

NOTE 2: INVESTMENTS NOTE 3: PROPERTY AND EQUIPMENT
The Foundation’s investments are as follows: The Foundation’s property and equipment are as follows:
2020 2019
COST FAIR VALUE COST FAIR VALUE 2020 2019
U.S. Government and U.S. Buildings and improvements $561,027 $561,027
Government agency securities $21,537,882 $23,706,830 $28,176,779 $29,318,507
Furnishings and equipment $202,936 $202,936
Equities $128,155,613 $167,015,301 $119,998,636 $159,491,366 Construction in progress $76,819 —
Corporate and municipal bonds $14,736,137 $15,136,616 $17,280,579 $17,507,205
$840,782 $763,963
Nonmarketable securities $33,188,106 $42,072,542 $30,080,462 $40,228,478 Accumulated depreciation ($669,703) ($658,195)
TOTAL $197,617,738 $247,931,289 $195,536,456 $246,545,556 TOTAL $171,079 $105,768
The fair value is based on quoted prices in active markets, if available. NONMARKETABLE INVESTMENTS
In the absence of readily determinable fair values, the fair value of The fair value of nonmarketable investments have been estimated
alternative investments is based on the net asset value of the fund using the net asset value per share (or its equivalent) as a practical NOTE 4: EMPLOYEE BENEFITS
either provided by the investment’s fund manager or general partner expedient. This category includes investments in private equity
or estimated by management based on audited financial statements funds that pursue multiple strategies and investment options to
received from the respective investment’s fund manager or general maximize return while diversifying risks and reducing volatility. The Foundation maintains a 403(b) defined-contribution plan for the bene-
partner. Investment securities, in general, are exposed to various The nature of these investments is that distributions are received fit of substantially all of its employees, which allows for both employee and
risks, such as interest rate, credit and overall market volatility. Due to through liquidation of the underlying assets of the fund in accor- employer contributions. The Foundation’s contribution consists of a discre-
the level of risk associated with certain investment securities, it is rea- dance with the planned life cycle of the fund and its investment tionary contribution of 10 percent of eligible compensation, and a matching
sonably possible that changes in the values of investment securities strategy. The amount of unfunded capital commitments is approxi- contribution of 100 percent of employee contributions, up to 5 percent of
will occur in the near term and such changes could materially affect mately $8,732,000 and $9,974,000 at August 31, 2020 and 2019, eligible employee compensation. The Foundation’s contribution to the plan
the amounts reported in the notes to the financial statements. respectively. was $86,587 and $84,338 for 2020 and 2019, respectively.

NOTE 5: RELATED PARTY TRANSACTIONS NOTE 6: LIQUIDITY AND AVAILABILITY
Financial assets available for general expenditure, that is, without donor or
other restrictions limiting their use, within one year of August 31, 2020 and
During 2020 and 2019, a portion of the Foundation’s investments were 2019, comprise the following:
managed by an investment advisor who is a related party of the Foundation
in the amount (cost basis) of $40,962,581 and $37,843,259 as of August 2020 2019
31, 2020 and 2019, respectively. The investment advisory fee (which was
paid to the brokerage firm, not the related party advisory firm) was $231,128 Cash $4,931,868 $5,249,202
and $230,907 for the years ended August 31, 2020 and 2019, respectively. Investments $189,165,802 $187,590,653
Financial assets available to meet cash needs
for general expenditures within one year $194,097,670 $192,839,855
NOTE 7: SUBSEQUENT EVENTS While the Organization does not anticipate liquidity concerns, the Organization does have a highly involved Board of Directors who
monitors liquidity throughout the year. The entity’s primary expenses are grant disbursements that are decided upon by the Board
of Directors. If liquidity concerns were to appear, the Board of Directors would be able to limit disbursements on an as needed basis
Subsequent events have been evaluated through November 16, 2020, and maintain sufficient levels of liquidity.
which is the date the financial statements were available to be issued.
Cash is monitored daily and a monthly review is performed at the management level.
35