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PROCEEDINGS OF THE

2015

Funds with deficiencies: From time to time, the fair value of assets associated with individual donor­ restricted endowment funds may fall below the level that the donor or the Board of Director’s interpretation of UPMIFA requires the Home to retain as a fund of perpetual duration. Because the po1tion of an endowment that is deemed to be pennanently restricted for financial rep01ting purposes cannot be decreased by such decreases in fair value, deficiencies of this nature are rep01ted in unrestricted net assets. Deficiencies of $38,643 and $39,279 existed as of June 30, 2015 and 2014, respectively, which were the result of unfavorable market fluctuations. Return objectives and risk parameters: The Home has adopted investment and spending policies for endowment assets that attempt to provide a stream of funding to programs suppotied by its endowments while allowing for growth within the endowment funds. Endowment assets include those assets of donorrestricted funds that the organization must hold in perpetuity or for a donorspecified period(s). Under this policy, as approved by the Board of Directors, the endowment assets are invested in a conservative manner through a balanced approach, unless otherwise specified by the donor, that is intended to produce income to be used tocany out the purposes and objectives of the Home in accordance with Board directive and donor restriction, as well as allow for growth within the endowment funds. The Home expects its endowment funds, over time, to provide an average rate of return of approximately 7 percent annually. Actual returns in any given year may vary from this amount. Strategies employedfor achieving objective: To satisfy its long-term rateof-return objectives, the Home relies on a total return strategy in which investment returns are achieved through capital appreciation (realized and unrealized). The Home targets a diversified asset allocation through the use of moderate growth and income pmtfolios, which are structured to favor assets that provide a combination of long-term capital appreciation and income production. Moderate Growth and Income potifolios offer a combination of assets with meaningful exposure to both equity securities and fixed income assets. Occasionally, the pmtfolio may fall out of compliance with the asset allocation limits set within the investment policy statement. It is the practice of the Board of Directors to review the cause and make a determination regarding correction of the non-compliance. Spending policy and hmv the investment objectives relate to spending policy: The Home has a policy of appropriating for distribution each month 100 percent of its endowment funds’ investment income, net of fees, to cover operating expenses. The Home has a policy which requires the reinvestment of any and all realized gains, as well as the retention of all appreciation within the endowment funds. The Home will only appropriate a pmtion of the endowment funds accumulated appreciation that is classified as temporarily restricted in the event of a catastrophic need. In establishing its policy, the Home considered the long-term expected return on its endowments, as well as the expected income needs to continue operations. Accordingly, over the long tenn, the Home expects the current spending policy to allow its endowment to grow at an average of five percent annually. This is consistent with the Home’s objective to produce income, while allowing for growth within the endowments through new gifts and investment return.

Profile for Missouri Freemasons

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

Profile for momason
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