,,,AM]ICAN BRO!RHOOD = ! BL T_/A AM]ICAN AC;N FUND = BL *N & ADULTS & T_/A BL *N & ADULTS AC;N FUND ( AM]ICA F9ANCIAL /ATE;TS DECEMB],' #CA1 #BJAH @.<,LOGO ( ,ROS51 ,SAPP]/E9 @& ,FRI$L&]4 ,BUSI;S ,3SULTANTS @& ,C]TIFI$ ,PUBLIC ,A3.TANTS4@.> ,TABLE ( ,3T5TS ,9DEP5D5T ,AUDITOR'S ,REPORT """""" #A ,F9ANCIAL ,/ATE;TS ,/ATE;T ( ,F9ANCIAL ,POSI;N """"" #B ,/ATE;TS ( ,ACTIVITIES """""""""" #C ,/ATE;TS ( ,FUNC;NAL ,EXP5SES """ #D ,/ATE;T ( ,CA% ,FL[S """""""""""" #E ,NOTES TO ,F9ANCIAL ,/ATE;TS #F-#AF P#A P#B ,ROS51 ,SAPP]/E9 @& ,FRI$L&]1 #A ;,,LLC #DJE ,YORK ,ROAD1 ,T[SON1 ,,MD #BABJD ,PH"O3 #DAJ1EHA1JHJJ ,FAX3 #DAJ1ECA1BBFH ,EMAIL3 9FO@ARS&F4COM WWW4RS&F4COM ,,,BALTIMORE _4 ANNAPOLIS _4 COLUMBIA _4 DELRAY B1* " @.<,LOGO ( ,ROS51 ,SAPP]/E9 @& ,FRI$L&] "<,,RS@&,F">4 ,BUSI;S ,3SULTANTS @& ,C]TIFI$ ,PUBLIC ,A3.TANTS4@.> ,AM]ICAN ,9/ITUTE ( ,C]TIFI$ ,PUBLIC ,A3.TANTS ,M>YL& ,ASSOCIA;N ( ,C]TIFI$ ,PUBLIC ,A3.TANTS ,,AICPA ,C5T] = ,AUDIT ,QUAL;Y ,,AICPA ,GOV]N;TAL ,AUDIT ,QUAL;Y ,C5T] ,,AICPA ,EMPLOYEE ,B5EFIT ,PLAN ,AUDIT ,QUAL;Y ,C5T] ,A ,MEMB] ( ,PRIME,GLOBAL - ,AN ,ASSOCIA;N ( ,9DEP5D5T ,A3.T+ ,FIRMS #A ,9DEP5D5T ,AUDITOR'S A#A ,REPORT ,TO ! ,BO>D ( ,DIRECTORS & ,(FIC]S ( ,AM]ICAN ,BRO!RHOOD = ! ,BL ,T_/,A ,AM]ICAN ,AC;N ,FUND = ,BL ,*N & ,ADULTS & ,T_/,A ,BL ,*N & ,ADULTS ,AC;N ,FUND ( ,AM]ICA ,WE H AUDIT$ ! A3OMPANY+ F9ANCIAL /ATE;TS ( ,AM]ICAN ,BRO!RHOOD = ! ,BL "1 : COMPRISE ! /ATE;T ( F9ANCIAL POSI;N Z ( ,DECEMB] #CA1 #BJAH1 & ! RELAT$ /ATE;TS ( ACTIVITIES1 FUNC;NAL EXP5SES & CA% FL[S = ! YE> !N 5D$1 & ! RELAT$ NOTES TO ! F9ANCIAL /ATE;TS4 ,MANAGE;T'S ,RESPONSIBIL;Y = ! ,F9ANCIAL ,/ATE;TS ,MANAGE;T IS RESPONSIBLE = ! PREP>A;N & FAIR PRES5TA;N ( ^! F9ANCIAL /ATE;TS 9 A3ORD.E ) A3.T+ PR9CIPLES G5]ALLY A3EPT$ 9 ! ,UNIT$ ,/ATES ( ,AM]ICA2 ? 9CLUDES ! DESIGN1 IMPLE;TA;N & MA9T5.E ( 9T]NAL #B 3TROL RELEVANT TO ! PREP>A;N & B#A FAIR PRES5TA;N ( F9ANCIAL /ATE;TS T >E FREE F MAT]IAL MIS/ATE;T1 :E!R DUE TO FRAUD OR ]ROR4 ,AUDITOR'S ,RESPONSIBIL;Y ,\R RESPONSIBIL;Y IS TO EXPRESS AN OP9ION ON ^! F9ANCIAL /ATE;TS BAS$ ON \R AUDIT4 ,WE 3DUCT$ \R AUDIT 9 A3ORD.E ) AUDIT+ /&>DS G5]ALLY A3EPT$ 9 ! ,UNIT$ ,/ATES ( ,AM]ICA4 ,^? /&>DS REQUIRE T WE PLAN & P]=M ! AUDIT TO OBTA9 R1SONABLE ASSUR.E AB :E!R ! F9ANCIAL /ATE;TS >E FREE F MAT]IAL MIS/ATE;T4 ,AN AUDIT 9VOLVES P]=M+ PROC$URES TO OBTA9 AUDIT EVID;E AB ! AM.TS & 4CLOSURES 9 ! F9ANCIAL /ATE;TS4 ,! PROC$URES SELECT$ DEP5D ON ! AUDITOR'S JUDG;T1 9CLUD+ ! ASSESS;T ( ! RISKS ( MAT]IAL MIS/ATE;T ( ! F9ANCIAL /ATE;TS1 :E!R DUE TO FRAUD OR ]ROR4 ,9 MAK+ ^? RISK ASSESS;TS1 ! AUDITOR 3SID]S 9T]NAL 3TROL RELEVANT TO ! 5T;Y'S PREP>A;N & FAIR PRES5TA;N #C ( ! F9ANCIAL /ATE;TS 9 ORD] TO C#A DESIGN AUDIT PROC$URES T >E APPROPRIATE 9 ! CIRCUM/.ES1 B N = ! PURPOSE ( EXPRESS+ AN OP9ION ON ! E6ECTIVE;S ( ! 5T;Y'S 9T]NAL 3TROL4 ,ACLY1 WE EXPRESS NO S* OP9ION4 ,AN AUDIT AL 9CLUDES EVALUAT+ ! APPROPRIATE;S ( A3.T+ POLICIES US$ & ! R1SONABLE;S ( SIGNIFICANT A3.T+ E/IMATES MADE BY MANAGE;T1 Z WELL Z EVALUAT+ ! OV]ALL PRES5TA;N ( ! F9ANCIAL /ATE;TS4 ,WE 2LIEVE T ! AUDIT EVID;E WE H OBTA9$ IS SU6ICI5T & APPROPRIATE TO PROVIDE A BASIS = \R AUDIT OP9ION4 ,OP9ION ,9 \R OP9ION1 ! F9ANCIAL /ATE;TS REF]R$ TO ABV PRES5T FAIRLY1 9 ALL MAT]IAL RESPECTS1 ! F9ANCIAL POSI;N ( ,AM]ICAN ,BRO!RHOOD = ! ,BL Z ( ,DECEMB] #CA1 #BJAH1 & ! *ANGES 9 XS NET ASSETS & XS CA% FL[S = ! YE> !N 5D$ 9 A3ORD.E ) A3.T+ PR9CIPLES G5]ALLY A3EPT$ 9 ! ,UNIT$ ,/ATES #D ( ,AM]ICA4 D#A @.<,SIGNATURE ( ,ROS51 ,SAPP]/E9 @& ,FRI$L&]1 ;,,LLC@.> ,ROS51 ,SAPP]/E9 @& ,FRI$L&]1 ;,,LLC ,BALTIMORE1 ,M>YL& ,M>* #F1 #BJAI ------------------------------------#B ,,,/ATE;T ( F9ANCIAL POSI;N,' ,DECEMB] #CA1 #BJAH ,,ASSETS ,CA% & CA% EQUIVAL5TS3 @S#B1CGB1JCJ ,PREPD EXP5SES #AAC1FCH ,NOTES RECEIVABLES3 #DB1JFJ ,9VE/;TS3 #BC1ICD1JDJ ,9VE/;TS,-,TRU/ #CAC1CCC ,O!R 9VE/;TS,-LIFE 9SUR.E3 #A1HAE1HHG ,PROP]TY & EQUIP;T,-NET3 #BAH1ECB ,,TOTAL ,,ASSETS3 @S#BH1HJI1EBJ ,,,LIABILITIES & NET ASSETS,' ,,LIABILITIES ,A3.TS PAYABLE & A3RU$ EXP5SES3 #E @S#GC1ABC A#B ,A3RU$ ANNU;Y B5EFIT3 #AJI1IJB ,,TOTAL ,,LIABILITIES3 #AHC1JBE ,,NET ,,ASSETS ,)\T DONOR RE/RIC;NS3 #BH1CBC1JFD ,) DONOR RE/RIC;NS3 #CJC1DCA ,,,TOTAL NET ASSETS3,' #BH1FBF1DIE2 ,,,TOTAL LIABILITIES & NET ASSETS3,' @S#BH1HJI1EBJ ------------------------------------#C ,,,/ATE;TS ( ACTIVITIES,' ,= ! ,YE> ,5D$ ,DECEMB] #CA1 #BJAH2 @.<,! =MAT ( ! FOLL[+ TABLE HAS BE5 MODIFI$4 ,COLUMN H1D+S3 ,)\T ,DONOR ,RE/RIC;NS2 ,) ,DONOR ,RE/RIC;NS2 ,TOTAL@.> ,,,REV5UES1 GA9S & O!R SUPPORT,' ,PUBLIC SUPPORT ,3TRIBU;NS3 @S#C1DJG1FFI2 @S#A1IBG2 @S#C1DJI1EIF ,DONAT$ S]VICES3 #A1FJI1BFF2 #F .-2 #A1FJI1BFF A#C ,TOTAL PUBLIC SUPPORT3 #E1JAF1ICE2 #A1IBG2 #E1JAH1HFB ,NET 9VE/;T 9COME "3 "<#B1AFD1GIC">2 "<#DD1EGC">2 "<#B1BJI1CFF"> ,,,TOTAL REV5UES1 GA9S & O!R SUPPORT3,' #B1HEB1ADB2 "<#DB1FDF">2 #B1HJI1DIF ,,EXP5SES ,PROGRAM S]VICES ,BRL PUBLICA;NS & LIBR>Y2 #CGF1FJC2 .-2 #CGF1FJC ,ADVOCACY & PROTEC;N ( CIVIL "RS3 #A1CEF1FJA2 .-2 #A1CEF1FJA ,SPECIALIZ$ PROGRAMS & S]VICES3 #B1GBE1BCG2 .-2 #B1GBE1BCG ,TOTAL PROGRAM S]VICES3 #D1DEH1DDA2 .-2 #D1DEH1DDA ,SUPPORT+ S]VICES ,MANAGE;T & G5]AL3 #AJG1CHE2 .-2 #AJG1CHE ,FUNDRAIS+3 #GAC1BAE2 .-2 #GAC1BAE ,TOTAL SUPPORT+ S]VICES3 #G #HBJ1FJJ2 .-2 #HBJ1FJJ B#C ,,TOTAL ,,EXP5SES3 #E1BGI1JDA2 .-2 #E1BGI1JDA ,,,*ANGES 9 NET ASSETS3,' "<#B1DBF1HII">2 "<#DB1FDF">2 "<#B1DFI1EDE"> ,,,NET ASSETS,-2G9N+ ( YE>3,' #CJ1GDI1IFC2 #CDF1JGG2 #CA1JIF1JDJ ,,,NET ASSETS,-5D ( YE>3,' @S#BH1CBC1JFD2 @S#CJC1DCA2 @S#BH1FBF1DIE ,SEE ,A3OMPANY+ ,NOTES TO ,F9ANCIAL ,/ATE;TS ------------------------------------#D ,,,/ATE;TS ( FUNC;NAL EXP5SES,' ,= ! ,YE> ,5D$ ,DECEMB] #CA1 #BJAH @.<,! =MAT ( ! FOLL[+ TABLE HAS BE5 MODIFI$4 ,! F/ F\R COLUMNS >E CATEGORIZ$ "U ,,PROGRAM ,,S]VICES1 & ! NEXT ?REE >E "U ,,SUPPORT+ ,,S]VICES4 ,COLUMN H1D+S3 #H ,BRL ,PUBLICA;NS & ,LIBR>Y2 A#D ,ADVOCACY & ,PROTEC;N ( ,CIVIL ,"RS2 ,SPECIALIZ$ ,PROGRAMS & ,S]VICES2 ,TOTAL2 ,MANAGE;T & ,G5]AL2 ,FUNDRAIS+2 ,TOTAL2 ,,GR& ,,TOTAL@.> ,VOLUNTE] S]VICES3 @S#BDA1CIJ2 @S#FGE1HIB2 @S#FIA1IHD2 @S#A1FJI1BFF2 @S.-2 @S.-2 @S.-2 @S#A1FJI1BFF ,SAL>IES3 #BH1IEI2 #AEE1FEG2 #AEI1BGG2 #CDC1HIC2 #AJ1HFJ2 #G1BDJ2 #AH1AJJ2 #CFA1IIC ,PAYROLL RELAT$ EXP5SES3 #D1IEC2 #BF1FBB2 #BG1BDA2 #EH1HAF2 #A1HEG2 #A1BCH2 #C1JIE2 #FA1IAA ,TOTAL SAL>IES & RELAT$ EXP5SES3 #BGE1CJB2 #HEH1AGA2 #HGH1EJB2 #B1JAA1IGE2 #AB1GAG2 #H1DGH2 #BA1AIE2 #B1JCC1AGJ ,SUPPLIES3 #B1FDA2 #AA1AFB2 #AJI1DHA2 #ABC1BHD2 #D1BBE2 .-2 #D1BBE2 #ABG1EJI ,PO/AGE & %IPP+3 #D1JDH2 #B1JGA2 #I #CEG1GAA2 #CFC1HCJ2 #BCJ2 B#D #CFI1AEB2 #CFI1CHB2 #GCC1BAB ,PR9T+ & PUBLICA;NS3 #FCA2 #C1HJJ2 #A1AEG1EBI2 #A1AFA1IFJ2 #A1HDH2 #CCE1EFG2 #CCG1DAE2 #A1DII1CGE ,TRAVEL3 #B1CJG2 #BC1FGD2 #H1EDB2 #CD1EBC2 #AJ1JEJ2 .-2 #AJ1JEJ2 #DD1EGC ,3F];ES & 3V5;NS3 #A1BBB2 #A1HGD2 #A1GEH2 #D1HED2 #B1JFC2 .-2 #B1JFC2 #F1IAG ,PR(ES.NAL FEES3 #FJ1FJJ2 #EIJ2 #FF1BEF2 #ABG1DDF2 #DI1JFD2 .-2 #DI1JFD2 #AGF1EAJ ,TELEPH"O3 #C1DBB2 #FGH2 #GHI2 #D1HHI2 #ABJ2 #AH2 #ACH2 #E1JBG ,O3UPANCY3 #BF1CFD2 #C1GIG2 #C1GIG2 #CC1IEH2 #AAE2 .-2 #AAE2 #CD1JGC ,AW>DS & GRANTS3 .-2 #DEJ1JJJ2 #IB1CDE2 #EDB1CDE2 .-2 .-2 .-2 #EDB1CDE ,9=MA;N TE*NOLOGY3 #FF2 #FF2 #FFF2 #GIH2 #DFB2 .-2 #DFB2 #A1BFJ ,EQUIP;T ,,IBTC3 .-2 .-2 #BE1JJJ2 #BE1JJJ2 .-2 .-2 .-2 #BE1JJJ #AJ ,DATA PROCESS+3 .-2 .-2 #BB1JFC2 C#D #BB1JFC2 #BB1JFC2 .-2 #BB1JFC2 #DD1ABF ,O!R3 .-2 .-2 .-2 .-2 #D1CDH2 .-2 #D1CDH2 #D1CDH ,TOTAL EXP5SES 2F DEPRECIA;N3 #CGF1FJC2 #A1CEE1HHC2 #B1GBD1DCI2 #D1DEF1IBE2 #AJG1CJE2 #GAC1BAE2 #HBJ1EBJ2 #E1BGG1DDE ,DEPRECIA;N3 .-2 #GAH2 #GIH2 #A1EAF2 #HJ2 .-2 #HJ2 #A1EIF ,,TOTAL ,,EXP5SES3 @S#CGF1FJC2 @S#A1CEF1FJA2 @S#B1GBE1BCG2 @S#D1DEH1DDA2 @S#AJG1CHE2 @S#GAC1BAE2 @S#HBJ1FJJ2 @S#E1BGI1JDA ,SEE ,A3OMPANY+ ,NOTES TO ,F9ANCIAL ,/ATE;TS #AA ,,,/ATE;T ( CA% FL[S,' #E ,= ! ,YE> ,5D$ ,DECEMB] #CA1 #BJAH ,,,CA% FL[S F OP]AT+ ACTIVITIES,' ,*ANGES 9 NET ASSETS3 @S"<#B1DFI1EDE"> ,ADJU/;TS TO RECONCILE *ANGES 9 NET ASSETS TO NET CA% PROVID$ BY OP]AT+ ACTIVITIES3 ,DEPRECIA;N3 #A1EIF ,UNR1LIZ$ LOSS ON 9VE/;TS3 #D1JFD1BBI ,R1LIZ$ GA9 ON 9VE/;TS "<#CGJ1IDF"> ,*ANGE 9 A3RU$ ANNU;Y B5EFIT3 "<#A1IBG"> ,DECR1SE "<9CR1SE"> 9 OP]AT+ ASSETS3 ,PREPD EXP5SES3 "<#HD1IJF"> ,9CR1SE " 9 OP]AT+ LIABILITIES3 ,A3.TS PAYABLE & A3RU$ EXP5SES3 #EAB ,,,NET CA% PROVID$ BY OP]AT+ ACTIVITIES3,' #A1ACI1JAC ,,,CA% FL[S F 9VE/+ ACTIVITIES,' ,CA% PD = 9VE/;TS3 "<#D1AIE1CII"> ,PROCE$S F SALE ( 9VE/;TS3 #AB #C1BDJ1BJB A#E ,CA% RCVD ON PR9CIPAL AM.T ( NOTES RECEIVABLE #AB1DCA ,CA% PD = ISSU.E ( NOTES RECEIVABLE3 "<#CB1ICG"> ,,,NET CA% US$ BY 9VE/+ ACTIVITIES,' "<#IGE1GJC"> ,,,NET *ANGE 9 CA% & CA% EQUIVAL5TS #AFC1CAJ2 CA% & CA% EQUIVAL5TS - 2G9N+ ( YE> #B1BJH1GBJ2 CA% & CA% EQUIVAL5TS - 5D ( YE>,' @S#B1CGB1JCJ ,SEE ,A3OMPANY+ ,NOTES TO ,F9ANCIAL ,/ATE;TS #AC ,,,NOTES TO F9ANCIAL #F /ATE;TS,' ,DECEMB] #CA1 #BJAH ,,,NOTE #A ,- NATURE ( ! ORGANIZA;N & SUMM>Y ( SIGNIFICANT A3.T+ POLICIES,' ,NATURE ( ! ,ORGANIZA;N ,AM]ICAN ,BRO!RHOOD = ! ,BL ,T_/,A ,AM]ICAN ,AC;N ,FUND = ,BL ,*N & ,ADULTS & ,T_/,A ,BL ,*N & ,ADULTS ,AC;N ,FUND ( ,AM]ICA "<,AC;N ,FUND">1 H1DQU>T]$ 9 ,BALTIMORE1 ,M>YL&1 IS A NONPR(IT CORPORA;N E/ABLI%$ = ! PURPOSE ( 9TEGRAT+ ! BL 9TO SOCIETY ON ! BASIS ( EQUAL;Y4 ,BASIS ( ,PRES5TA;N ,! ,AC;N ,FUND FOLL[S ! ,PRES5TA;N ( ,F9ANCIAL ,/ATE;TS = ,N-=-,PR(IT ,5TITIES TOPIC ( ! ,F9ANCIAL ,A3.T+ ,/&>DS ,BO>D "<,,FASB"> ,A3.T+ ,/&>DS ,CODIFICA;N4 ,? PRON\NCE;T SETS /&>DS = ! F9ANCIAL /ATE;T PRES5TA;N = #AD N-=-PR(IT ORGANIZA;NS4 ,! ,AC;N A#F ,FUND IS REQUIR$ TO REPORT 9=MA;N REG>D+ XS F9ANCIAL POSI;N & ACTIVITIES AC TO TWO "<#B"> CLASSES ( NET ASSETS3 )\T DONOR RE/RIC;NS & ) DONOR RE/RIC;NS BAS$ ON ! EXI/;E OR ABS;E ( DONOR IMPOS$ RE/RIC;NS4 ,NET ASSETS ) DONOR RE/RIC;NS 3SI/ ( ASSETS ^: USE IS LIMIT$ BY DONOR IMPOS$ "T &_/OR PURPOSE RE/RIC;NS4 ,DONOR RE/RICT$ NET ASSETS 9CLUDE ASSETS HELD 9 TRU/ "? ! DONOR'S LIFE"T1 & S*OL>%IP & BOOK FUNDS1 ": ! DONOR HAS RE/RICT$ T ONLY ! 9COME MAY 2 US$ = XS /AT$ PURPOSE & T ! CORPUS MAY N 2 9VAD$4 ,DONOR RE/RICT$ 3TRIBU;NS ^: RE/RIC;NS >E MET 9 ! SAME REPORT+ P]IOD >E REPORT$ Z REV5UE )9 NET ASSETS )\T DONOR RE/RIC;NS4 ,REV5UE ,RECOGNI;N ,! ,AC;N ,FUND HAS ADOPT$ ! ,REV5UE ,RECOGNI;N = ,N-=-,PR(IT ,5TITIES TOPIC ( ! ,,FASB ,A3.T+ ,/&>DS ,CODIFICA;N4 ,9 A3ORD.E ) ? #AE /&>D1 3TRIBU;NS RCVD >E RECORD$ B#F Z )\T DONOR RE/RIC;NS OR ) DONOR RE/RIC;NS4 ,ALL 3TRIBU;NS >E 3SID]$ TO 2 AVAILABLE )\T RE/RIC;NS UN.S SPECIFICALLY RE/RICT$ BY ! DONOR4 ,USE ( ,E/IMATES ,! PREP>A;N ( F9ANCIAL /ATE;TS 9 3=M;Y ) A3.T+ PR9CIPLES G5]ALLY A3EPT$ 9 ! ,UNIT$ ,/ATES ( ,AM]ICA REQUIRES MANAGE;T TO MAKE E/IMATES & ASSUMP;NS T A6ECT ! REPORT$ AM.TS ( ASSETS & LIABILITIES & 4CLOSURE ( 3T+5T ASSETS & LIABILITIES AT ! DATE ( ! F9ANCIAL /ATE;TS & ! REPORT$ AM.TS ( REV5UE & EXP5SES DUR+ ! REPORT+ P]IOD4 ,ACTUAL RESULTS CD DI6] F ^? E/IMATES4 ,CA% & ,CA% ,EQUIVAL5TS ,= PURPOSES ( REPORT+ CA% FL[S1 ! ,AC;N ,FUND 3SID]S ALL HI MON?S OR LESS TO 2 A CA% EQUIVAL5T4 #AF ,F9ANCIAL ,CR$IT ,RISK #G ,! ,AC;N ,FUND MA9TA9S XS CA% BAL.ES AT S"EAL F9ANCIAL 9/ITU;NS4 ,! BAL.ES >E 9SUR$ BY ! ,F$]AL ,DEPOSIT ,9SUR.E ,CORPORA;N "<,,FDIC"> UP TO 9SUR$ LIMITS4 ,Z ( ,DECEMB] #CA1 #BJAH1 ! ,AC;N ,FUND'S CA% BAL.ES 7 9 EXCESS ( ^! 9SUR$ LIMITS4 ,MANAGE;T 2LIEVES T ! ,AC;N ,FUND IS N EXPOS$ TO ANY SIGNIFICANT CR$IT RISK ) RESPECT TO XS CA% BAL.ES4 ,9 ADDI;N1 ! ,AC;N ,FUND G5]ALLY MA9TA9S 9VE/;T BAL.ES 9 EXCESS ( ! ,SECURITIES ,9VE/OR ,PROTEC;N ,CORPORA;N "<,,SIPC"> LIMITS4 ,! ,AC;N ,FUND 9VE/S 9 V>I\S 9VE/;T SECURITIES4 ,9VE/;T SECURITIES >E EXPOS$ TO V>I\S RISKS S* Z 9T]E/ RATE1 M>KET & CR$IT RISKS4 ,DUE TO ! LEVEL ( RISK ASSOCIAT$ ) C]TA9 9VE/;T SECURITIES1 X IS AT L1/ R1SONABLY POSSIBLE T *ANGES 9 ! VALUES ( 9VE/;T SECURITIES W O3UR 9 ! NE> T]M & ^? *ANGES CD MAT]IALLY A6ECT ! VALUE REPORT$ 9 ! F9ANCIAL /ATE;TS4 #AG ,NOTES & ,O!R ,RECEIVABLES A#G ,NOTES RECEIVABLE 3SI/ ( PROGRAM-RELAT$ LOANS TO ORGANIZA;NS & 9DIVIDUALS :O SUPPORT ! ,AC;N ,FUND'S MIS.N ( 5C\RAG+ 9DEP5D;E & SUPPORT+ 5TREPR5EUR%IP AM;G ! BL4 ,MANAGE;T EVALUATES ! CR$ITWOR?I;S ( EA* BORR[] PRIOR TO ! ISSU.E ( ^! LOANS4 ,O!R RECEIVABLES 9CLUDE MONIES DUE F ?IRD "PIES4 ,! ,AC;N ,FUND 3SID]S V>I\S FACTORS Z ( ! DATE ( ! F9ANCIAL /ATE;TS 9 EVALUAT+ ! CR$IT QUAL;Y ( ^! BAL.ES1 9CLUD+ HI/ORICAL COLLEC;N EXP]I;E & ASSESS;T ( ! C.T]"PIES' ABIL;Y TO REPAY _! OBLIGA;NS4 ,PA/ DUE A3.TS >E DET]M9$ BY MANAGE;T BAS$ ON HI/ORICAL EXP]I;E & O!R RELEVANT FACTORS4 ,ON A P]IODIC BASIS1 ! ,AC;N ,FUND WRITES (F UNCOLLECTIBLE BAL.ES1 AF EXHAU/+ R1SONABLE COLLEC;N EF=TS4 ,BAS$ ON MANAGE;T'S HI/ORICAL EXP]I;E1 MANAGE;T 3SID]S ALL NOTES & O!R RECEIVABLES TO 2 FULLY COLLECTIBLE2 "!=E1 NO ALL[.E = D\BT;L A3.TS HAS BE5 REFLECT$ 9 #AH ! F9ANCIAL /ATE;TS4 B#G ,9VE/;TS ,! ,AC;N ,FUND'S 9VE/;T PORTFOLIO IS CLASSIFI$ Z TRAD+ & IS REPORT$ AT XS FAIR VALUE1 BAS$ ON QUOT$ M>KET PRICES AT ,DECEMB] #CA1 #BJAH4 ,R1LIZ$ & UNR1LIZ$ HOLD+ GA9S & LOSSES ON TRAD+ SECURITIES ) R1DILY DET]M9ABLE M>KET VALUES >E 9CLUD$ 9 9VE/;T 9COME 9 ! /ATE;TS ( ACTIVITIES4 ,O!R ,9VE/;TS,-,LIFE ,9SUR.E ,! ,AC;N ,FUND 9VE/S 9 LIFE 9SUR.E POLICIES ON MEMB]S ( MANAGE;T4 ,A POLICY IS ISSU$ ON ! 9SUR$ "PY1 ! ,AC;N ,FUND IS ! [N] & B5EFICI>Y ( ! POLICY & Z S* PAYS ALL PREMIUMS4 ------------------------------------#H ,PROP]TY & ,EQUIP;T ,PROP]TY & EQUIP;T IS RECORD$ AT CO/1 NET ( A3UMULAT$ DEPRECIA;N4 ,MAJOR ADDI;NS & BETT];TS >E *>G$ TO ! ASSET A3.TS :ILE MA9T5.E & #AI REPAIRS : D N IMPROVE OR EXT5D ! A#H LIVES ( ! ASSETS >E EXP5S$ :5 9CURR$4 ,3TRIBUT$ PROP]TY IS RECORD$ AT FAIR VALUE AT ! DATE ( DONA;N4 ,^U ! SALE OR O!R 4POSI;N ( ASSETS1 ! CO/ & RELAT$ A3UMULAT$ DEPRECIA;N >E REMOV$ F ! RESPECTIVE A3.TS1 & ANY RESULT+ GA9 OR LOSS >E 9CLUD$ 9 OP]A;NS4 ,DEPRECIA;N EXP5SE IS CALCULAT$ US+ ! /RAIDS ,CODIFICA;N4 ,L;G-LIV$ ASSETS1 S* Z PROP]TY & EQUIP;T & PUR*AS$ 9TANGIBLES SUBJECT TO AMORTIZA;N1 >E REVIEW$ = IMPAIR;T :5"E EV5TS OR *ANGES 9 CIRCUM/.ES 9DICATE T ! C>RY+ AM.T ( AN ASSET MAY N 2 RECOV]ABLE1 & EVALUAT$ AT L1/ ANNUALLY4 ,RECOV]ABIL;Y ( ASSETS TO 2 HELD & US$ IS M1SUR$ BY COMP>+ ! #BJ C>RY+ AM.T ( AN ASSET TO E/IMAT$ B#H UNDISC.T$ FUTURE CA% FL[S EXPECT$ TO 2 G5]AT$ BY ! ASSET4 ,IF ! C>RY+ AM.T ( AN ASSET EXCE$S XS E/IMAT$ FUTURE CA% FL[S1 AN IMPAIR;T *>GE IS RECOGNIZ$ 9 ! AM.T BY : ! C>RY+ AM.T ( ! ASSET EXCE$S ! FAIR VALUE ( ! ASSET4 ,ASSETS TO 2 4POS$ ( WD 2 SEP>ATELY PRES5T$ 9 ! /ATE;T ( F9ANCIAL POSI;N & REPORT$ AT ! L[] ( ! C>RY+ AM.T OR FAIR VALUE LESS CO/S TO SELL1 & >E NO L;G] DEPRECIAT$4 ,! ASSETS & LIABILITIES ( A 4POS$ GR\P CLASSIFI$ Z HELD = SALE WD 2 PRES5T$ SEP>ATELY 9 ! APPROPRIATE ASSET & LIABIL;Y SEC;NS ( ! /ATE;T ( F9ANCIAL POSI;N4 ,MANAGE;T 2LIEVES ! VALUE ( L;G-LIV$ ASSETS EXCE$ ! C>RY+ VALUE Z ( ,DECEMB] #CA1 #BJAH4 ,A3RU$ ,ANNU;Y ,B5EFIT ,! ,AC;N ,FUND _H E/ABLI%$ A *>ITABLE GIFT ANNU;Y PROGRAM ": DONORS MAY 3TRIBUTE ASSETS TO ! ,AC;N ,FUND & 9 RETURN RCV A GU>ANTE$ FIX$ 9COME = LIFE4 ,! ,AC;N ,FUND MA9TA9S A #BA SEGREGAT$ 9VE/;T A3.T TO HOLD C#H RES]VES REQUIR$ = GIFT ANNU;Y 9/RU;TS4 ,! 9VE/;T RES]VE BAL.E RELAT$ TO ? PROGRAM AM.T$ TO @S#CAC1CCC4 ,! ,AC;N ,FUND RECOGNIZES 3TRIBU;N REV5UE = ! DI6];E 2T ! FAIR VALUE ( ! ASSETS RCVD & ! ANNU;Y LIABIL;Y4 ,! GIFT ANNU;Y LIABIL;Y REPRES5TS MONIES TEMPOR>ILY RE/RICT$ UNTIL ! ANNU;Y IS SATISFI$4 ,ANNU;Y B5EFIT LIABILITIES >E RECORD$ = ! REQUIR$ LIFE ANNU;Y PAY;TS AT ! PRES5T VALUE ( EXPECT$ FUTURE CA% PAY;TS 4C.T$ US+ 9T]E/ RATES AT ! DATE ( GIFT & ACTU>IAL ASSUMP;NS4 ,! CALCULA;N ( ! LIABIL;Y 9CLUDES ! DONOR'S E/IMAT$ LIFE EXPECTANCY4 ,! ANNU;Y OBLIGA;NS >E ADJU/$ EA* YE> = *ANGES 9 ! LIFE EXPECTANCY ( ! B5EFICI>IES & >E R$UC$ Z PAY;TS >E MADE TO ! DONOR4 ,? PROGRAM HAS S9CE BE5 4CONT9U$4 ,! ANNU;Y B5EFIT LIABIL;Y AT ,DECEMB] #CA1 #BJAH 9CLUDES FUTURE PAY;TS = B5EFICI>IES :O 5T]$ ! PROGRAM PRIOR TO XS T]M9A;N "4 #BB ,9COME ,TAXES #I ,! ,AC;N ,FUND IS EXEMPT F F$]AL 9COME TAXES "U ,9T]NAL ,REV5UE ,CODE ,SEC;N #EJA""<#C">4 ,"! 7 NO 9COME TAXES PD ON UNRELAT$ BUSI;S ACTIVITIES = ! YE> 5D$ ,DECEMB] #CA1 #BJAH4 ,A3.T+ = ,UNC]TA9TY 9 ,9COME ,TAXES ,! ,AC;N ,FUND ADOPT$ ! ,A3.T+ = ,UNC]TA9TY 9 ,9COME ,TAXES TOPIC ( ! ,,FASB ,A3.T+ ,/&>DS ,CODIFICA;N4 ,! /&>D REQUIRES ! RECOGNI;N & M1SURE;T ( UNC]TA9 TAX POSI;NS TAK5 OR EXPECT$ TO 2 TAK5 BY ! ,AC;N ,FUND 9 ! PREP>A;N ( XS TAX RETURNS4 ,! ,AC;N ,FUND DET]M9ES :E!R X IS M-LIKELY-?AN-N T A C]TA9 TAX POSI;N W 2 SU/A9$ ^U EXAM9A;N BY A TAX+ AU?OR;Y4 ,IF AN UNC]TA9 TAX POSI;N IS M-LIKELY-?AN-N TO 2 SU/A9$1 AN E/IMATE ( ! POT5TIAL E6ECT IS RECOGNIZ$ 9 ! F9ANCIAL /ATE;TS & ! UNC]TA9 TAX POSI;N IS REQUIR$ TO 2 4CLOS$4 ,P] ! ,AC;N ,FUND'S EVALUA;N Z ( ,DECEMB] #BC #CA1 #BJAH1 9CLUD+ ALL PRIOR TAX A#I YE>S SUBJECT TO EXAM9A;N1 X 0 DET]M9$ T NO MAT]IAL ADJU/;TS 7 REQUIR$ 9 ! F9ANCIAL /ATE;TS = TAX POSI;NS M-LIKELY-?AN-N TO 2 SU/A9$ ^U EXAM9A;N BY A TAX+ AU?OR;Y4 ,! ,AC;N ,FUND 2LIEVES X IS NO L;G] SUBJECT TO 9COME TAX EXAM9A;NS = YE>S PRIOR TO #BJAE4 ,DONAT$ ,S]VICES ,! ,AC;N ,FUND HAS ADOPT$ ! ,REV5UE ,RECOGNI;N = ,N-=-,PR(IT ,5TITIES TOPIC ( ! ,,FASB ,A3.T+ ,/&>DS ,CODIFICA;N 9 ! RECOGNI;N ( DONAT$ S]VICES4 ,DONAT$ S]VICES >E RECOGNIZ$ AT FAIR VALUE IF ! S]VICES RCVD " CR1TE OR 5H.E L;G-LIV$ ASSETS OR "<;B"> REQUIRE SPECIALIZ$ SKILLS1 >E PROVID$ BY 9DIVIDUALS POSSESS+ ^? SKILLS1 & WD TYPICALLY NE$ TO 2 PUR*AS$ IF N PROVID$ BY DONA;N4 ,DONAT$ S]VICES 3SI/ ( VOLUNTE] S]VICES4 ,VOLUNTE] S]VICES >E RECORD$ ON ! BASIS ( "T SP5T AT RATES PD #BD BY O!R ORGANIZA;NS = COMP>ABLE B#I S]VICES4 ,! VOLUNTE] S]VICES PRIM>ILY 3SI/ ( S]VICES = ! ORI5TA;N & ADJU/;T TO BL;S & BL;S ADVOCACY1 Z WELL Z A3.T+ & ADM9I/RATIVE S]VICES4 ,! VOLUNTE] S]VICES >E RECORD$ Z BO? PUBLIC SUPPORT & PROGRAM S]VICES2 "!=E1 "! IS NO E6ECT ON ! *ANGE 9 NET ASSETS4 ,NO AM.TS H BE5 REFLECT$ 9 ! F9ANCIAL /ATE;TS = ! VOLUNTE] A3.T+ & ADM9I/RATIVE S]VICES S9CE !Y D N MEET ! CRIT]IA = RECOGNI;N4 ,FUNC;NAL ,EXP5SE ,ALLOCA;NS ,! F9ANCIAL /ATE;TS REPORT C]TA9 CO/S T >E ATTRIBUTABLE EI TO M ?AN "O PROGRAM FUNC;N & _/ OR TO "O OR M PROGRAM FUNC;N 9 3JUNC;N ) "O OR M SUPPORT+ FUNC;N4 ,S* CO/S >E REPORT$ AC TO _! NATURAL EXP5SE CATEGORY & !N ALLOCAT$ TO ! APPROPRIATE FUNC;NAL CATEGORY ON A R1SONABLE BASIS T IS 3SI/5TLY APPLI$4 ,SAL>IES >E ALLOCAT$ ON ! BASIS ( E/IMATES ( "T & EF=T2 O3UPANCY CO/S >E ALLOCAT$ ON ! #BE BASIS ( SQU>E FOOTAGE2 O!R C#I NATURAL CO/S >E ALLOCAT$ ON ! BASIS ( MANAGE;T ID5TIFICA;N BAS$ ON OBS]VA;N & PR(ES.NAL EVALUA;N ( ! DIRECT B5EFIT ( ! CO/ TO A "PICUL> PROGRAM FUNC;N OR SUPPORT+ FUNC;N4 -----------------------------------#AJ ,IF A JO9T CO/ IS 9CURR$ = AN ACTIV;Y T 9CLUDES BO? 9=MA;NAL MESSAGES & FUNDRAIS+ APP1LS1 T CO/ IS AL EVALUAT$ ON ! BASIS ( ! 3T5T ( ! MESSAGES1 R1SONS = 4TRIBUT+ ! MESSAGES1 & ! AUDI;E TO :OM ! MESSAGE IS 4TRIBUT$4 ,NEW ,A3.T+ ,/&>D ,ADOPT$ ,9 ,AUGU/ #BJAF1 ! ,,FASB ISSU$ ,A3.T+ ,/&>DS ,UPDATE "<,,ASU"> #BJAF-#AD1 ,N-=-,PR(IT ,5TITIES3 ,PRES5TA;N ( ,F9ANCIAL ,/ATE;TS ( ,N-=-,PR(IT ,5TITIES4 ,! ,,ASU AM5DS ! CURR5T REPORT+ MODEL = N-=-PR(IT ORGANIZA;NS & 5H.ES _! REQUIR$ 4CLOSURES4 ,! ,AC;N ,FUND HAS ADOPT$ ? ,,ASU Z ( & = ! YE> 5D$ ,DECEMB] #BF #CA1 #BJAH4 ,! MAJOR *ANGES A#AJ 9CLUDE " REQUIR+ ! PRES5TA;N ( ONLY TWO CLASSES ( NET ASSETS N[ 5TITL$ 8NET ASSETS )\T DONOR RE/RIC;NS0 & 8NET ASSETS ) DONOR RE/RIC;NS01 "<;B"> MODIFY+ ! PRES5TA;N ( "UWAT] 5D[;T FUNDS & RELAT$ 4CLOSURES1 "<;C"> REQUIR+ T ALL NONPR(ITS PRES5T AN ANALYSIS ( EXP5SES BY FUNC;N & NATURE1 & 4CLOSE A SUMM>Y ( ! ALLOCA;N ME?ODS US$ TO ALLOCATE CO/S1 "<;D"> REQUIR+ ! 4CLOSURE ( QUALITATIVE & QUALITATIVE 9=MA;N REG>D+ LIQUID;Y & AVAILABIL;Y ( RES\RCES1 "<;E"> PRES5T+ 9VE/;T RETURN NET ( EXT]NAL & DIRECT 9T]NAL 9VE/;T EXP5SES1 & "<;F"> MODIFY+ O!R F9ANCIAL /ATE;T REPORT+ REQUIRE;TS & 4CLOSURES 9T5D$ TO 9CR1SE ! USE;L;S ( NONPR(IT F9ANCIAL /ATE;TS4 ,Z A RESULT1 ! ,AC;N ,FUND *ANG$ XS PRES5TA;N ( XS NET ASSET CLASSES & EXP&$ ! 4CLOSURES Z REQUIR$ BY ! ,,ASU4 #BG ,SUBSEQU5T ,EV5TS B#AJ ,EV5TS T O3URR$ SUBSEQU5T TO ,DECEMB] #CA1 #BJAH H BE5 EVALUAT$ BY ! ,AC;N ,FUND'S MANAGE;T = POT5TIAL RECOGNI;N OR 4CLOSURE 9 ! F9ANCIAL /ATE;TS "? ! DATE ( ! 9DEP5D5T AUDITOR'S REPORT1 : IS ! DATE ! F9ANCIAL /ATE;TS 7 AVAILABLE TO 2 ISSU$4 ,! ,AC;N ,FUND DID N H ANY MAT]IAL RECOGNIZABLE SUBSEQU5T EV5TS DUR+ ? P]IOD4 ,,,NOTE #B ,- NOTES RECEIVABLES,' ,NOTES RECEIVABLE AT ,DECEMB] #CA1 #BJAH 3SI/S ( ! FOLL[+3 ,TRI,PLAY1 ,9C4 - ,UNSECUR$ NOTE RECEIVABLE DUE F AN UNRELAT$ ?IRD "PY4 ,! NOTE BE>S 9T]E/ AT #4DC.0 & ! MATUR;Y DATE ( ! NOTE HAS BE5 EXT5D$ 9TO #BJAI4 @S#AA1AGH ,LOANS - ,L[ 9T]E/ LOAN PROGRAM = BUSI;S OR JOB RELAT$ PURPOSES4 #BH ,! LOANS BE> 9T]E/ AT #C.0 P] C#AJ ANNUM1 3TA9S V>I\S REPAY;T T]MS & >E UNSECUR$4 ,! LOANS MATURE AT V>I\S DATES "? ,JULY #BJBD4 #CJ1HHB ,TOTAL ,NOTES ,RECEIVABLE3 @S#DB1JFJ -----------------------------------#AA ,,,NOTE #C ,- 9VE/;T ,- TRU/,' ,AN IRREVOCABLE TRU/ 0 CR1T$ = ! EV5TUAL B5EFIT ( ! ,AC;N ,FUND4 ,! T]MS ( ! ,TRU/ /ATE T ^U ! D1? ( ,RAMONA ,WALH(1 ! PROP]TY HELD BY ! ,TRU/ 2COMES ! UNRE/RICT$ PROP]TY ( ! ,AC;N ,FUND4 ,! 3TRIBU;N 0 RECOGNIZ$ Z 9COME 9 ! YE> ( ! DONA;N4 ,! ,AC;N ,FUND HAS AGRE$ TO MAKE ANNU;Y PAY;TS ( APPROXIMATELY @S#BD1JJJ P] YE> TO ,MRS4 ,WALH(4 ,! PRES5T VALUE ( ^! PAY;TS OV] ,MRS4 ,WALH('S REMA9+ LIFE"T IS CURR5TLY E/IMAT$ AT @S#AJI1IJB Z ( ,DECEMB] #CA1 #BJAH4 ,ALL PROVI.NS ( ! ,TRU/ ,AGREE;T REMA9 UN*ANG$4 #BI ,,,NOTE #D ,- PROP]TY & A#AA EQUIP;T,' ,PROP]TY & EQUIP;T Z ( ,DECEMB] #CA1 #BJAH 3SI/S ( ! FOLL[+3 ,BRL LIBR>Y - COLLECT$ "WS3 @S#BAD1JDE ,(FICE FURNITURE & EQUIP;T3 #AI1EEA ,BRL PRESS EQUIP;T3 #IH1EIH ,BRL L5D+ LIBR>Y3 #ADI1BGJ2 #DHA1DFD2 ,LESS3 ,A3UMULAT$ DEPRECIA;N "<#BFB1ICB"> ,PROP]TY & EQUIP;T - NET3 @S#BAH1ECB ,DEPRECIA;N EXP5SE = ! YE> 5D$ ,DECEMB] #CA1 #BJAH AM.T$ TO @S#A1EIF4 ,PROP]TY & EQUIP;T 9CLUDES A ,BRL LIBR>Y ,- COLLECT$ "WS T IS 3SID]$ HI/ORICAL TR1SURES & Z S*1 NO DEPRECIA;N IS RECOGNIZ$ ON ? ASSET4 ,,,NOTE #E ,- FAIR VALUE M1SURE;TS,' ,! ,AC;N ,FUND A3.TS = ! FAIR #CJ VALUE ( XS 9VE/;TS "U ! ,FAIR B#AA ,VALUE ,M1SURE;T & ,4CLOSURE TOPIC ( ! ,,FASB ,A3.T+ ,/&>DS ,CODIFICA;N1 : PROVIDES ! FRAME"W = M1SUR+ FAIR VALUE4 ,T FRAME"W PROVIDES A FAIR VALUE HI]>*Y T PRIORITIZES ! 9PUTS TO VALUA;N TE*NIQUES US$ TO M1SURE FAIR VALUE4 ,! HI]>*Y GIVES ! HIKETS = ID5TICAL ASSETS OR LIABILITIES " & ! L[E/ PRIOR;Y TO UNOBS]VABLE 9PUTS "4 ,! ?REE "<#C"> LEVELS ( ! FAIR VALUE HI]>*Y "U ? GUID.E >E DESCRIB$ Z FOLL[S3 ,LEVEL #A ,9PUTS TO ! VALUA;N ME?ODOLOGY >E UNADJU/$ QUOT$ PRICES = ID5TICAL ASSETS OR LIABILITIES 9 ACTIVE M>KETS T ! ,AC;N ,FUND HAS ! ABIL;Y TO A3ESS4 -----------------------------------#AB ,LEVEL #B ,9PUTS TO ! VALUA;N ME?ODOLOGY #CA 9CLUDE3 A#AB _4 QUOT$ PRICES = SIMIL> ASSETS OR LIABILITIES 9 ACTIVE M>KETS2 _4 QUOT$ PRICES = ID5TICAL OR SIMIL> ASSETS OR LIABILITIES 9 9ACTIVE M>KETS2 _4 9PUTS O!R ?AN QUOT$ PRICES T >E OBS]VABLE = ! ASSET OR LIABIL;Y2 & _4 9PUTS T >E D]IV$ PR9CIPALLY F OR CORROBORAT$ BY OBS]VABLE M>KET DATA BY CORRELA;N OR O!R M1NS4 ,IF ! ASSET OR LIABIL;Y HAS A SPECIFI$ "<3TRACTUAL"> T]M1 ! LEVEL #B 9PUT M/ 2 OBS]VABLE = SUB/ANTIALLY ! FULL T]M ( ! ASSET OR LIABIL;Y4 ,LEVEL #C ,9PUTS TO ! VALUA;N ME?ODOLOGY >E UNOBS]VABLE & SIGNIFICANT TO ! FAIR VALUE M1SURE;T4 ,! ASSET OR LIABIL;Y'S FAIR VALUE M1SURE;T LEVEL )9 ! FAIR VALUE HI]>*Y IS BAS$ ON ! L[E/ LEVEL ( ANY #CB 9PUT T IS SIGNIFICANT TO ! FAIR B#AB VALUE M1SURE;T4 ,VALUA;N TE*NIQUES US$ NE$ TO MAXIMIZE ! USE ( OBS]VABLE 9PUTS & M9IMIZE ! USE ( UNOBS]VABLE 9PUTS4 ,! FOLL[+ IS A DESCRIP;N ( ! VALUA;N ME?ODOLOGIES US$ = ASSETS & LIABILITIES M1SUR$ AT FAIR VALUE3 ,A3RU$ ANNU;Y B5EFITS3 ,VALU$ AT ! PRES5T VALUE ( EXPECT$ FUTURE CA% PAY;TS 4C.T$ US+ ! 9T]E/ RATES AT ! "T ( ! GIFT & ACTU>IAL ASSUMP;NS4 ,ANNUITIES3 ,VALU$ AT A3UMULAT$ VALUE1 NET ( SURR5D] *>GES4 ,COMMON & PREF]R$ /OCKS & MUTUAL FUNDS3 ,VALU$ AT QUOT$ PRICES = ID5TICAL ASSETS F ACTIVE M>KETS4 ,CORPORATE BONDS3 ,VALU$ AT QUOT$ PRICES = ID5TICAL ASSETS F ACTIVE M>KETS4 ,ALT]NATIVE 9VE/;TS3 ,3SI/S ( MUTUAL FUNDS : >E ILLIQUID & VALU$ AT NET ASSET VALUE "<,,NAV"> US+ DAILY1 MON?LY & QU>T]LY VALUA;NS4 #CC ,9VE/;TS 9 LIFE 9SUR.E3 ,VALU$ C#AB AT A3UMULAT$ VALUE1 NET ( SURR5D] *>GES4 ,! PREC$+ ME?ODS DESCRIB$ MAY PRODUCE A FAIR VALUE CALCULA;N T MAY N 2 9DICATIVE ( NET R1LIZABLE VALUE OR REFLECTIVE ( FUTURE FAIR VALUES4 ,FUR!RMORE1 AL? ! ,AC;N ,FUND 2LIEVES XS VALUA;N ME?ODS >E APPROPRIATE & 3SI/5T ) O!R M>KET "PICIPANTS1 ! USE ( DI6]5T ME?ODOLOGIES OR ASSUMP;NS TO DET]M9E ! FAIR VALUE ( C]TA9 F9ANCIAL 9/RU;TS CD RESULT 9 A DI6]5T FAIR VALUE M1SURE;T AT ! REPORT+ DATE4 -----------------------------------#AC ,"! H BE5 NO *ANGES 9 ! ME?ODOLOGIES US$ AT ,DECEMB] #CA1 #BJAH4 ,S* 9=MA;N IS ! RESPONSIBIL;Y ( MANAGE;T & 0 D]IV$ F & RELATES DIRECTLY TO ! "ULY+ A3.T+ & O!R RECORDS US$ TO PREP>E ! F9ANCIAL /ATE;TS4 ,! FOLL[+ TABLE SETS =? BY LEVEL1 )9 ! FAIR VALUE HI]>*Y1 ! ,AC;N #CD ,FUND'S ASSETS & LIABILITIES AT A#AC FAIR VALUE AT ,DECEMB] #CA1 #BJAH3 @.<,! =MAT ( ! TABLE HAS BE5 MODIFI$4 ,COLUMN H1D+S3 ,PAYOR ,CLASS2 ,LEVEL #A2 ,LEVEL #B2 ,LEVEL #C2 ,FAIR ,VALUE@.> ,ASSETS3 ,ANNUITIES3 @S.-2 @S.-2 @S#EGJ1HBI2 @S#EGJ1HBI ,CORPORATE BONDS3 #BFJ1JEC2 .-2 .-2 #BFJ1JEC ,COMMON & PREF]R$ /OCKS3 #GJC1AIA2 .-2 .-2 #GJC1AIA ,ALT]NATIVE 9VE/;TS3 .-2 #A1EJE1EJG2 #GJ1JJJ2 #A1EGE1EJG ,MUTUAL FUNDS3 #BA1ACG1GIC2 .-2 .-2 #BA1ACG1GIC ,9VE/;TS SUBTOTAL3 #BB1AJA1JCG2 #A1EJE1EJG2 #FDJ1HBI2 #BD1BDG1CGC ,O!R 9VE/;TS,-LIFE 9SUR.E3 .-2 .-2 #A1HAE1HHG2 #A1HAE1HHG ,ASSETS AT ,FAIR ,VALUE3 @S#BB1AJA1JCG2 @S#A1EJE1EJG2 @S#B1DEF1GAF2 @S#BF1JFC1BFJ #CE ,LIABILITIES3 B#AC ,A3RU$ ANNU;Y B5EFITS3 @S.-2 @S.-2 @S#AJI1IJB2 @S#AJI1IJB ,! FOLL[+ TABLE SETS =? A SUMM>Y ( *ANGES 9 ! FAIR VALUE ( ,AC;N ,FUND'S LEVEL #C ASSETS & LIABILITIES DUR+ ! YE> 5D$ ,DECEMB] #CA1 #BJAH3 @.<,! =MAT ( ! TABLE HAS BE5 MODIFI$4 COLUMN H1D+S3 ,LEVEL #C ,ASSETS2 ,LEVEL #C ,LIABILITIES@.> ,BAL.E,-2G9N+ ( YE>3 @S#B1AGD1GHF2 @S#AAA1HBI ,A3RU$ ANNU;Y B5EFIT ADJU/;T3 .-2 "<#A1IBG"> ,9VE/;T PUR*ASES3 #GJ1JJJ2 ,RETURN ON ANNU;Y 9VE/;T3 #AJ1AAB2 .- ,9CR1SE 9 CA% SURR5D] VALUE3 #BJA1HAH2 - ,BAL.E,-5D ( YE>3 @S#B1DEF1GAF2 @S#AJI1IJB -----------------------------------#AD ,! ,AC;N ,FUND'S RETURN ON #CF 9VE/;TS = ! YE> 5D$ ,DECEMB] A#AD #CA1 #BJAH 3SI/$ ( ! FOLL[+ COMPON5TS3 @.<,! =MAT ( ! TABLE HAS BE5 MODIFI$4 ,COLUMN H1D+S3 ,)\T DONOR RE/RIC;NS2 ,) DONOR RE/RIC;NS2 ,TOTAL@.> ,9T]E/ & DIVID5DS3 @S#A1GED1DGB2 @S#BF1DJA2 @S#A1GHJ1HGC ,NET R1LIZ$ GA9S3 #CGJ1IDF2 .-2 #CGJ1IDF ,NET *ANGE 9 UNR1LIZ$ LOSSES3 "<#D1JJC1GCE">2 "<#DF1IGD">2 "<#D1JEJ1GJI"> ,LIFE 9SUR.E,-NET ( PREMIUMS3 "<#AC1EBJ">2 .-2 "<#AC1EBJ"> ,9VE/;T EXP5SE3 "<#BGB1IEF">2 "<#BD1JJJ">2 "<#BIF1IEF"> ,TOTAL RETURN ON 9VE/;TS3 @S"<#B1AFD1GIC">2 @S"<#DD1EGC">2 @S"<#B1BJI1CFF"> #CG ,,,NOTE #F,-NET ASSETS B#AD )\T DONOR RE/RIC;NS,' ,NET ASSETS )\T DONOR RE/RIC;NS AT ,DECEMB] #CA1 #BJAH >E Z FOLL[S3 ,9VE/;T 9 PROP]TY & EQUIP;T3 @S#BAH1ECB2 ,UNDESIGNAT$ #BH1AJD1ECB2 ,TOTAL NET ASSETS )\T DONOR RE/RIC;NS3 @S#BH1CBC1JFD ,,,NOTE #G ,- NET ASSETS ) DONOR RE/RIC;NS,' ,NET ASSETS ) DONOR RE/RIC;NS AT ,DECEMB] #CA1 #BJAH >E Z FOLL[S3 ,S*OL>%IP FUND3 @S#EJ1JJJ2 ,BOOK FUND #EJ1JJJ2 ,ASSETS HELD 9 TRU/ #BJC1DCA2 ,TOTAL NET ASSETS ) DONOR RE/RIC;NS3 @S#CJC1DCA #CH ,,,NOTE #H ,- ALLOCA;N ( C#AD JO9T CO/S,' ,! ,AC;N ,FUND 9CURR$ JO9T CO/S ( @S#A1CHA1HJB = 9=MA;N MAT]IALS & ACTIVITIES T 9CLUD$ FUND RAIS+ APP1LS4 ,( ^? CO/S1 @S#GJD1GAI2 0 ALLOCAT$ TO FUNDRAIS+ EXP5SE & @S#FGG1JHC 0 ALLOCAT$ TO SPECIALIZ$ PROGRAMS & S]VICES4 ,MANAGE;T BAS$ ^! ALLOCA;NS ON AN ANALYSIS ( ! 3T5T ( ! MAT]IALS1 R1SONS = 4TRIBUT+ ! MAT]IALS & ! AUDI;E TO :OM ! MAT]IALS 7 4TRIBUT$4 -----------------------------------#AE ,,NOTE #I,-,,PREMISES ,! ,AC;N ,FUND HAS A FACIL;Y 9 ,BALTIMORE1 ,M>YL&4 ,! ,BALTIMORE FACIL;Y IS LOCAT$ AT ! ,NA;NAL ,C5T] = ! ,BL : ALL[S FREE USAGE ( FACILITIES = ORGANIZA;NS T S]VE ! BL4 ,9 ,M>* #BJAH1 ! ,AC;N ,FUND CLOS$ ! FACIL;Y X L1S$ 9 ,CALI=NIA & ! PROP]TY & EQUIP;T 0 RELOCAT$ TO ,BALTIMORE4 ,R5T #CI EXP5SE RELAT$ TO ? L1SE = ! YE> A#AE 5D$ ,DECEMB] #CA1 #BJAH AM.T$ TO APPROXIMATELY @S#AG1JJJ & IS 9CLUD$ 9 ! /ATE;T ( FUNC;NAL EXP5SES Z O3UPANCY4 ,,,NOTE #AJ ,- RETIRE;T PLAN,' ,! ,AC;N ,FUND HAS A QUALIFI$ #DJC" RETIRE;T PLAN = ! B5EFIT ( ALL ELIGIBLE EMPLOYEES4 ,ELIGIBLE EMPLOYEES MAY MAKE VOLUNT>Y 3TRIBU;NS TO ! PLAN N TO EXCE$ ! ,9T]NAL ,REV5UE ,S]VICE LIMITS4 ,! ,AC;N ,FUND DOES N MAKE ANY 3TRIBU;NS TO ! PLAN4 ,,,NOTE #AA ,- LIQUID;Y & AVAILABIL;Y ( F9ANCIAL ASSETS,' ,! ,AC;N ,FUND'S F9ANCIAL ASSETS AVAILABLE TO MEET CA% NE$S = G5]AL EXP5DITURES )9 "O YE> ( ,DECEMB] #CA1 #BJAH >E Z FOLL[S3 ,CA% & CA% EQUIVAL5TS3 #DJ @S#B1CGB1JCJ B#AE ,NOTES RECEIVABLES3 #DB1JFJ ,9VE/;TS3 #BC1ICD1JDJ ,9VE/;T - ,TRU/1 NET ( LIABILITIES #BJC1DCA ,O!R 9VE/;TS,-LIFE 9SUR.E3 #A1HAE1HHG ,TOTAL F9ANCIAL ASSETS3 #BH1CFG1DDH ,DONOR IMPOS$ RE/RIC;NS ,S*OL>%IP FUND3 "<#EJ1JJJ"> ,BOOK FUND3 "<#EJ1JJJ"> ,ASSETS HELD 9 TRU/3 "<#BJC1DCA"> ,F9ANCIAL ASSETS AVAILABLE TO MEET CA% NE$S = G5]AL EXP5DITURES )9 "O YE>3 @S#BH1JFD1JAG ,Z "P ( ! ,AC;N ,FUND'S LIQUID;Y MANAGE;T1 X HAS A POLICY TO /RUCTURE XS F9ANCIAL ASSETS TO 2 AVAILABLE Z XS G5]AL EXP5DITURES1 LIABILITIES & O!R OBLIGA;NS COME DUE4 ,9 ADDI;N1 ! ,AC;N ,FUND 9VE/S CA% 9 EXCESS ( DAILY REQUIRE;TS 9 %ORT T]M 9VE/;TS4 ,G5]AL EXP5DITURES >E EXP5SES ! ,AC;N ,FUND EXPECTS TO 4BURSE = PROGRAM & SUPPORT+ S]VICES4 #DA ,,,NOTE #AB ,- E6ECT ( #AF *ANGE 9 A3.T+ PR9CIPLE,' ,Z 4CUSS$ 9 ,NOTE #A1 ! ,AC;N ,FUND ADOPT$ ,,ASU #BJAF-#AD Z ( & = ! YE> 5D$ ,DECEMB] #CA1 #BJAH4 ,9 A3ORD.E ) ! ,,ASU1 NET ASSETS >E CLASSIFI$ Z NET ASSET )\T DONOR RE/RIC;NS & NET ASSETS ) DONOR RE/RIC;NS4 ,*ANGES 9 NET ASSETS Z A RESULT ( ADOPT+ ! ,,ASU >E Z FOLL[S3 @.<,! =MAT ( ! TABLE HAS BE5 MODIFI$4 ,COLUMN H1D+S3 ,PREVI\SLY REPORT$2 ,,ASU #BJAF-#AD IMPLE;TA;N2 ,Z ADJU/$@.> ,UNRE/RICT$ NET ASSETS Z ( ,DECEMB] #CA1 #BJAG3 @S#CJ1GDI1IFC2 @S"<#CJ1GDI1IFC">2 @S.- ,TEMPOR>ILY RE/RICT$ NET ASSETS Z ( ,DECEMB] #CA1 #BJAG3 #BDF1JGG2 "<#BDF1JGG">2 - ,P]MAN5TLY RE/RICT$ NET ASSETS Z ( ,DECEMB] #CA1 #BJAG3 #AJJ1JJJ2 "<#AJJ1JJJ">2 - #DB ,)\T DONOR RE/RIC;NS Z ( A#AF ,JANU>Y #A1 #BJAH3 .-2 #CJ1GDI1IFC2 #CJ1GDI1IFC ,) DONOR RE/RIC;NS Z ( ,JANU>Y #A1 #BJAH3 .-2 #CDF1JGG2 #CDF1JGG ,TOTAL ,NET ,ASSETS Z ( ,JANU>Y #A1 #BJAH3 @S#CA1JIF1JDJ2 @S.-2 @S#CA1JIF1JDJ #DC