Trust Fund Committee Report
2000 - 2001
The stock market was extremely volatile during the last half of 2000 and as a result our investments experienced significant reductions in value. This trend continued during the first half of 2001, and the value of our investments remain low as compared to past years. Rick Wolfe, our Financial Advisor with Scott & Stringfellow, met with the Board of Directors of NCACAA on April 6, 2001 to discuss the major reasons for this volatility and its impact on our investments. Although he was unable to predict a speedy recovery of the stock market, he did indicate that he felt the value of our investments would recover in time. He recommended that we not make any changes in the way we have our funds invested, or the methods we are currently using to withdraw funds to support our awards and professional development activities. He provided information about an alternative method of investment which would allow an investment agent to manage our funds on a day-to-day basis by making investments in selective stocks and mutual funds based on anticipated performance. This method is similar to investing in a mutual fund, but rather than selecting the most suitable mutual fund(s) the agent would develop a portfolio to specifically represent of the needs of the association. The Board of Directors elected to maintain our investments with Scott & Stringfellow as they currently are.
The funds invested with Scott & Stringfellow by NCACAA are maintained in two (2) separate accounts, each with specific purposes and goals. The bylaws of NCACAA provide that the three (3) immediate past presidents shall make up the Trust Fund Committee which shall be responsible for overseeing these investments, make recommendations as needed to the Board of Directors about the use of these monies, and counsel as necessary with financial advisors about the management of these investments. Everett Davis, 1993 Past President, was appointed by the Board of Directors as ongoing chair responsible for coordinating the activities of this committee and to provide continuity from year to year.
CHARLOTTE '88 TRUST FUNDS
Over $100,000 surplus from the Charlotte '88 National Meeting was invested to provide income stability for support of our association's awards programs, professional development of our members, and financial support for officers and eligible members to participate in official regional and national activities.
These funds are invested in mutual funds primarily for growth and secondarily for security. A small balance is maintained in a money market account. During the 2000 fiscal year, the value of these investments decreased by 18.89 percent.
On June 29, 2000 $10,000 was withdrawn from securities and transferred to Nancy Keith, NCACAA Treasurer, to support 2000 awards programs and other professional development activities approved by the Board of Directors. On June 7, 2001 $6,200 was withdrawn from securities and transferred to the NCACAA treasurer to provide funds needed to support the awards activities of our 2001 Annual Meeting.
NCACAA BOARD TRUST FUNDS
NCACAA, over time, has surplus funds resulting from earnings from state meetings, excesses from election campaigns, sponsorships, et cetera. These funds are invested similar to the Charlotte '88 funds and are also managed by the Trust Fund Committee. However, these funds are available to the Board of Directors to be used at their discretion.
These funds are invested in mutual funds primarily for security and secondarily for growth. A small balance is maintained in a money market account. During the 2000 fiscal year, the value of these investments decreased 4.77 percent.
On June 22, 2000 $5,000 was withdrawn from securities and transferred to Nancy Keith, NCACAA Treasurer, primarily to make up the shortage from the 2000 Annual Meeting in Fayetteville.
TAX REPORTING
All income statements and tax documents resulting from these accounts during 2000 were transferred to Alan Harper on February 16, 2001, for NCACAA accounting and income tax reporting.
FINANCIAL INFORMATION AVAILABLE TO MEMBERS
Due to the sensitivity of financial information, detailed financial reports and information will not be printed in the NCACAA Annual Report. Any member requesting it will be provided detailed financial and investment information by the Trust Fund Chairman.
Everett Davis 6/22/01
Everett Davis, Trust Fund Chairman
Rett Davis, Past President, 2000
Billy Dunham, Past President, 1999
Bill Skelton, Past President, 1998