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Notes to Financial Statements
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1. |
Investments |
Investments
are carried at fair market value and at December 31, 1999 and 1998 consists
of the following: |
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1999
(Unaudited) |
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1998 |
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Equity securities |
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$75,586,099 |
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$75,315,467 |
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U.S. Treasury securities |
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24,847,863 |
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30,227,092 |
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Money market funds |
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37,329,951 |
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623,480 |
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Total |
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$137,763,913 |
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$106,166,039 |
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Investment
fees totaled $279,043 and $206,660 for the years ended December 31, 1999 and
1998, respectively and were deducted from the money market fund. |
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The following schedule
represents the investment return: |
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1999
(Unaudited) |
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1998 |
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Unrealized gains (losses) |
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$ 3,931,554 |
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$(15,551,984) |
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Dividends and interest |
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5,679,188 |
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4,475,519 |
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Realized gains |
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22,355,992 |
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1,083,124 |
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Total
investment return (loss) |
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$31,966,734 |
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$ (9,993,341) |
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See accompanying independent accountants' review report.
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2. |
Note Receivable |
Note
receivable relates to an uncollateralized loan to a third party. The loan has
a progressive rate of interest ranging from 1% to 7% over five years. The term of the loan includes, among
other things, a series of loans to be made by the Fund through April 2000.
The total of the Fund’s loans to the third party will be $2,300,000. The
maturity date of the loan is October 2003. Interest is due on a monthly basis
and principal payments commence on November 15, 2001. All unpaid principal
and accrued interest is due on the maturity date. |
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3. |
FederalExcise Taxes |
In
accordance with the applicable provisions of IRC Section 4940, the Fund is
subject to an excise tax on net investment income, including realized gains,
as defined. In 1999, the Fund
paid $1,354,050 for estimated taxes.
Actual tax expense totaled $1,346,764 and $107,005 for the years ended
December 31, 1999 and 1998, respectively, and is included in management and
general expense in the accompanying statement of activities. |
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4. |
Leases |
In
May 1997, the Fund entered into a ten year non-cancelable operating lease for
its office facility requiring rent of $75,697 annually. Under the current leasing
arrangement, the Fund shares space and general office expenses with another
private foundation. |
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| 5. |
Pension Plans |
The
Fund has two pension plans, a money purchase defined contribution plan
covering all employees and a tax-deferred annuity plan. Under the money purchase plan,
pension costs representing 7% of salaries are funded on a monthly basis. For the year ended December 31,
1999 and 1998, employer contributions amounted to $30,940 and $28,618,
respectively. Under the
tax-deferred annuity plan, employees may opt for salary deductions not to
exceed 10% of their salary within limits as defined by IRC section
403(b). In addition, the Fund
offers a 25% match on salary deductions subject to the same IRC
limitations. These matching
contributions totaled $8,530 and $8,146 for the years ended December 31, 1999
and 1998, respectively. |
See accompanying independent accountants' review report.
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