The value of our investments in both the Charlotte '88 Trust Fund Account and the NCACAA Board Savings Account continued to recover during 2004. Hopefully, this trend will continue during the coming years.
NCACAA maintains two (2) separate trust 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 advisers 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. Johnny Hensley, Past President, 2002, has retired and is no longer an active member of this association. James Cochran, Past President, 2001, continued to serve during this year to fill Johnny Hensley's vacancy.
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.
On June 14, 2004 $5,000 was withdrawn from this account and transferred to Barry Foushee, NCACAA Treasurer, to support 2004 professional development activities as approved by the Board of Directors and to provide funds needed to support the awards program of our state meeting. During the 2004 fiscal year, the value of all investments in this account increased in value by 10.43 percent.
At the Winter Board Meeting in Raleigh on January 7, 2005, Rick Wolfe, Financial Adviser for Raymond James Financial Services met with the Board of Directors at which time the board instructed him to reinvest all Charlotte '88 funds into investments that would provide some protection against drastic weakening of the stock market. Mr. Wolfe made these changes with several transactions during the month of January.
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 2004 fiscal year, the value of these investments increased 14.74 percent.
On June 14, 2004 $1,000 was withdrawn from this account and transferred to Barry Foushee, NCACAA Treasurer, to provide funds for the association to carry out activities approved by the Board of Directors.
All income statements and tax documents resulting from these accounts during 2003 were properly transferred to Gayle Smith, CPA, on February 8, 2005 for accounting and income tax reporting.
The Trust Fund Committee continues to encourage the NCACAA Board of Directors to reconsider its current policies of allocating Charlotte '88 funds as have been done in past years. Committing financial support based on what has been done in recent years for awards, recognition, and professional development during times the stock market is doing poorly will continue to deplete significant funds from this account.
We also encourage the NCACAA Board of Directors to aggressively develop strategies that will either fund or partially fund anticipated expenses; and to restructure the amount of funding for awards and recognition programs. Efforts should be made to replace some of the funds that have been withdrawn from the Charlotte '88 Trust Account and the NCACAA Board Trust Account.
Due to the sensitivity of financial information, detailed financial reports and information will not be posted to the NCACAA Annual Report web pages. Any member requesting it will be provided detailed financial and investment information by the Trust Fund Chairman.
Everett Davis, Trust Fund Chairman
Marjorie Rayburn, Past President, 2004
Walter Earle, Past President, 2003
James Cochran, Past President, 2001
Last updated on 06/14/05.
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