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PROCEEDINGS OF THE

2015

7. ENDOWMENT The Home’s endowment consists of several individual donor-restricted funds established for a variety of purposes, as well as a general endowment pool. Interpretation of relevant law: A version of the Uniform Prudent Management ofinstitutional Funds Act(UPMIFA) governs the management of donor-restricted endowment funds in Missouri. The objective of UPMIFA is to provide guidance for investment management and the expenditure decisions related to endowment funds. Under the policy established by the Board of Directors for donor-restricted endowment funds, the Home classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) any additional amounts requ ired to be permanently restricted by the terms of the donor’s gift. Prior to a policy change in 2011, endowment net gains on investment funds were also included in permanently restricted net assets. The policy change resulted in an increase of $15,533 ,932 in temporarily restricted net assets and a corresponding decrease in permanently restricted net assets. Endowment Fund net assets: The portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the Home in a manner consistent with the standard of prudence prescribed by UPMIFA. In accordance with UPMIFA, the }Iome considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds: the duration and preservation of the fund; the purposes of the Horne and the endowment fund; general economic conditions; the possible effect of inflation and deflation; the expected total return from income and the appreciation of investments; other resources of the Home; and the investment policies of the Home. Endowment net asset composition was as follows at June 30, 2015 and 2014: Temporarily Permanently 2015 Unrestricted Restricted Restricted Total Donor-restricted endowment funds $ $ 24,954,557 $ 30,954,608 $ 55,909,165 Other (38,643) (38,643) Total endowment funds $ (38,643) $ 24,954,557 $ 30,954,608 $ 55,870,522 Temporarily Permanently 2014 Unrestricted Restricted Restricted Total Donor-restricted endowment funds $ $ 25,448,599 $ 30,928,398 $ 56,376,997 Board-designated and other (47,876) (47,876) $ (47,876) $ 25,448,599 $ 30,928,398 $ 56,329,121 Total endowment funds

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Official Proceedings - Grand Lodge MO Communication 2015  

Official proceedings of the One Hundred Ninety-Fourth Annual Communication Columbia Sept 28-29 A.D. 2015 A.L. 6015

Official Proceedings - Grand Lodge MO Communication 2015  

Official proceedings of the One Hundred Ninety-Fourth Annual Communication Columbia Sept 28-29 A.D. 2015 A.L. 6015

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