Trust Fund Committee Report
2001 - 2002
The value of our investments in both the Charlotte '88 Trust Fund Account and the Board Savings Account continued to decline during 2001 due to the continued decline of the stock market. For the first time since 1989 the current value of our investments has dropped below the amount of our initial investment.
In November 2001 Mr. Rick Wolfe, our Financial Advisor for many years, advised that he would leave Scott & Stringfellow and begin work with Raymond James Financial Services. Scott & Stringfellow advised that Mr. Joseph Perry was assigned our account. As Chairman of the Trust Account I made arrangements for Mr. Wolfe and Mr. Perry,to meet with the NCACAA Board of Directors in Raleigh on Friday, March 1, 2002. The purpose of this meeting was to allow the Board of Directors to determine if they wished to transfer our investments to Raymond James Financial and allow Mr. Wolfe to continue as our advisor, or to leave the funds with Scott & Stringfellow and allow Mr. Perry to become our advisor. In addition, the Board of Directors had the opportunity to hear a presentation from both individuals about management strategies. The decision of the Board of Directors was to transfer our investments to Raymond James Financial, allow Mr. Wolfe to continue as our advisor, and to maintain our investments in the same mutual funds we are currently invested in with hopes that the stock market will recover within a reasonable period of time. These funds were transferred as instructed on April 3, 2002.
NCACAA maintains two (2) separate accounts, each with specific purposes and goals. The Bylaws and Policies 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 funds, 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. When appropriate a small balance is maintained in a money market account. During the 2001 fiscal year, the value of these investments decreased by 25.40 percent.
On June 7, 2001 $6,200, was withdrawn from securities and transferred to Nancy Keith, NCACAA Treasurer, to support 2001 professional development activities as approved by the Board of Directors and to provide funds needed to support the awards program of our state meeting. On August 13, 2001 $13,000 was withdrawn from securities and transferred to the NCACAA treasurer to provide funds needed to support awards and other commitments for the NACAA National Meeting and Professional Improvement Conference.
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. As appropriate, a small balance is maintained in a money market account. During the 2001 fiscal year, the value of these investments decreased 23.89 percent.
On August 13, 2002 $3,500 was withdrawn from securities and transferred to Nancy Keith, NCACAA Treasurer, to make up the shortage from the 2001 Annual Meeting in Asheville. On December 2, 2002 $6,800 was withdrawn and transferred to NCACAA to cover the expense of tax preparation for the past several years.
On June 13, 2002 $5,000 was transferred to Lenny Rogers, NCACAA Treasurer, to cover expenses related to the NACAA National Meeting which will be held in Savannah, Georgia.
TAX REPORTING
All income statements and tax documents resulting from these accounts during 2001 were properly transferred to Gayle Smith, CPA, for accounting and income tax reporting.
CAUTION FROM TRUST FUND COMMITTEE
The Trust Fund Committee encourages the NCACAA Board of Directors to be cautious and conservative in the use of Charlotte '88 funds. We have grown accustomed to funding a variety of things and providing support at relatively high levels. Because of large withdrawals and an unkind stock market during the past 2 years our current balance is now below our initial investments in 1989. There are some hard decisions to be made by the Board of Directors, and the general membership is encouraged to support these actions. It may be necessary to return to pre-1989 operations and look for other creative methods of funding the current needs of our association. Even if the stock market does rebound significantly, efforts should be made to replace some of the large amounts that have been withdrawn from these funds recently or we will never return to the comfort level we enjoyed several years ago.
FINANCIAL INFORMATION AVAILABLE TO MEMBERSM
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.
Submitted on 6/25/02 by Everett Davis.
Everett Davis, Trust Fund Chairman
James Cochran, Past President, 2001
Rett Davis, Pasty President, 2000
Billy Dunham, Past President, 1999