Worcester State Foundation Inc.

“The foundation's endowment consists of numerous individual funds established by donor contributions for a variety of purposes. As required by generally accepted accounting principles, net assets associated with endowment funds, including funds designated by the board to function as endowments, are classified and reported based on the existence or absence of donor-imposed or legal restrictions. As required by generally accepted accounting principles, the foundation classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the foundation in a manner consistent with the standard of prudence prescribed by state law. In acordance with upmifa, the foundation may consider the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds: - the duration and preservation of the fund - the purposes of the organization and the donor-restricted endowment fund - general economic conditions - the possible effect of inflation and deflation - the expected total return from income and the appreciation of investments - other resources of the foundation - the investment policies of the foundation the foundation has adopted investment and spending policies for its endowment assets that attempt to provide a predictable stream of funding for its programs while seeking to maintain the purchasing power of the endowment assets. Under this policy, as approved by the board, the foundation shall seek to invest the endowment funds in such a manner that the investments will provide a spendable return consistent with a long-term goal of preserving the funds in real terms. Actual returns in any given year may vary from this amount. To satisfy its long-term rate-of-return objectives, the foundation relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). The foundation has invested in debt and equity securities that target a diversified asset allocation that places a greater emphasis on equity-based investments to achieve its long-term return objectives within prudent risk constraints. During periods of unstable market conditions, the board may place new monies received in short term certificates of deposit as a temporary measure until market conditions show signs of stabilizing. The foundation has a policy of appropriateing for distribution quarterly, as needed, amounts to worcester state university for the purpose of scholarships, awards, and other general expenses. In establishing this policy, the foundation considered the long-term expected return on its endowment. This is consistent with the foundation's objected to maintain the purchasing power of its endowment. From time to time, the fair value of assets associated with individual donor-restricted funds may fall below the level that the donor imposed restrictions require the foundation to retain as a fund of perpetual duration. In accordance with generally accepted accounting principles, deficiencies of this nature are reported in unrestricted net assets. There were no such deficiencies at june 30, 2017 or june 30, 2016.”

“Management annually reviews for uncertain tax positions that would have a material adverse effect, individually or in the aggregate upon the foundation's statements of financial position, or the related statements of activities, or cash flows.”

“Change in fair value of beneficial in remainder trust 9,288. Cutler investment fund lp income 4,489.”