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Trust Fund Committee Report

2005 - 2006


The value of investments in both the Charlotte '88 Trust Fund Account and the NCACAA Board Savings Account continued to recover slightly during 2005. Withdrawals to support the awards and professional development programs of the association offset virtually all gains in both accounts.

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.

CHARLOTTE '88 TRUST FUNDS

Over $100,000 surplus from the Charlotte '88 National Meeting was invested to provide income stability for support of the association's awards programs, professional development of its 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. As appropriate, a small balance is maintained in a money market account. During the 2005 fiscal year, the value of all investments in this account increased in value by 7.02 percent.

On July 12, 2005, $7,000 was withdrawn from this account and transferred to Barry Foushee, NCACAA Treasurer, to support 2005 professional development activities as approved by the Board of Directors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 February 2006, certain under performing mutual funds were sold and reinvested into more attractive mutual funds, some of which are classified as Alternative Investments. A portion of funds maintained in the Money Market Account were used to complete this transaction.

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 at any time 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 2005 fiscal year, the value of all investments in this account increased increased in value by 12.27 percent.

On July 12, 2005, $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.

TAX REPORTING

All income statements and tax documents resulting from these accounts during 2005 were properly transferred to Gayle Smith, CPA, on March 3, 2006 for accounting and income tax reporting.

RECOMMENDATIONS FROM TRUST FUND COMMITTEE

The Trust Fund Committee continues to encourage the NCACAA Board of Directors to provide leadership to the members of the association to develop and implement fund raising and budgeting strategies that will properly support the desired activities of the association with minimum use of remaining trust funds. A weak stock market during the past five (5) years, and withdrawals from the accounts in excess of increasing values, have caused investments to fall below the level needed to support routine activities. Until the stock market rebounds considerably, continued annual withdrawals in excess of $5,000 from the Charlotte '88 Trust, and $1,000 from Board Savings, will quickly deplete remaining funds.

The primary purpose of the Charlotte '88 Trust Fund is to provide an investment base that will generate funds to support activities of the association. Wise and diligent management of the money in these funds is necessary to ensure that funds remain available for this purpose in the future. In addition, this account now serves as an emergency account in preparation for another national meeting in 2008.

We encourage the NCACAA Board of Directors to restructure the amount of funding for awards and recognition programs so the remaining balance in the Charlotte '88 Trust Account does not fall below $100,000. Efforts should also be made to replace some of the funds that have been withdrawn from the Charlotte '88 Trust Account and the NCACAA Board Trust Account.

FINANCIAL INFORMATION AVAILABLE TO MEMBERS

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 may review the financial reports maintained by this committee, and will be provided detailed financial and investment information by the Trust Fund Chairman.

Everett Davis, Trust Fund Chairman
Mark Tucker, Past President, 2005
Marjorie Rayburn, Past President, 2004
Walter Earle, Past President, 2003



Last updated on 06/27/06.

Please send comments and suggestions to John Dorner.