2011-2012 Trust Fund Report

NCACAA maintains three (3) separate trust accounts and one (1) money market account, each with specific purposes and goals. The Bylaws and Policies 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. Lenny Rogers, 2008 Past National Meeting Treasurer, was appointed by the Board of Directors as ongoing chair responsible for coordinating the activities of this 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 have been invested and are managed by the Trust Fund Committee. These funds are invested in mutual funds managed by Williams Financial Group for primarily for growth and secondarily for security. During the 2011 fiscal year, the value of all investments in this account decreased in value by 3.07 percent. However for the first half of 2012, they have increased by 2.79 percent.

THE NORTH CAROLINA ASSOCIATION OF COUNTY AGRICULTURAL AGENTS PROGRAM AND AWARDS ENDOWMENT

In 2009 this ENDOWMENT was funded by a transfer gift of $45,000 by the NCACAA Board of Directors from its National Meeting Restricted Fund which was held in the North Carolina Cooperative Extension Service Foundation. An additional $5,000 was placed in the Endowment Income Account to provide immediate funding for the programs and awards of the NCACAA.

These funds shall be used to provide program funds for the North Carolina Association of County Agricultural Agents and funding for awards as designated by the Board of Directors or its Awards Committee.

THE NORTH CAROLINA ASSOCIATION OF COUNTY AGRICULTURAL AGENTS YOUTH SCHOLARSHIP ENDOWMENT

In 2009 this ENDOWMENT was funded by a transfer gift of $70,000 by the NCACAA Board of Directors from its National Meeting Restricted Fund which was held in the North Carolina Cooperative Extension Service Foundation. An additional $5,000 was placed into the Endowment’s Income Account to make those funds available for use by the NCACAA for purposes identified in this agreement.

These funds shall be used to provide educational scholarships for children or grandchildren of the members and Life Members of the North Carolina Association of County Agricultural Agents. The policy for selecting scholarship recipients is now in place and functioning.

MONEY MARKET ACCOUNT

After settling up with National after the 2008 National Meeting, a portion of the funds was just placed in a money market account with the State Employees Credit Union. Most of these funds still remain here for easy access by the State Board for use for officer travel, JCEP, PILD, state meeting or other expenses.

A total of $6,000 was withdrawn from this account during the 2010 year by the NCACAA Treasurer, to support 2010 professional development activities as approved by the Board of Directors and to provide funds needed to support the awards program of our state meeting.

TAX REPORTING

All income statements and tax documents resulting from these accounts during 2011 were properly transferred to Gayle Smith, CPA, for accounting and income tax reporting.

RECOMMENDATIONS FROM TRUST FUND COMMITTEE

The Trust Fund Committee continues to encourage the NCACAA Board of Directors to develop and implement state meeting sponsorship and budgeting strategies that will properly support the desired activities of the association with wise use of money market and trust funds. With the stock market falling significantly during 2008 and early 2009, this along with withdrawals, have majorly decreased values of investments. Gradual improvement was seen in 2010. Then a bumpy 2011 ended with a slight decrease in value. However things are on a decent improvement this first half of 2012.

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.

The surplus funds generated from the 2008 national meeting should be used wisely. The Board of Directors wisely invested some of the profits from this meeting, with the Agricultural Foundation. With the annual profits from the Greensboro ‘08 endowment, plus profits of the Charlotte ’88 Trust Account and with use of the money market account; annual state meeting, award and other expenses should be adequately covered.

FINANCIAL INFORMATION AVAILABLE TO MEMBERS

Due to the sensitivity of financial information, detailed financial reports and information will not be posted to the NCACCA 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.

Lenny Rogers, Trust Fund Chairman

Mitch Smith, Past President 2010

Kelly Groves, Past President 2009

Stanley Holloway, Past President, 2008