Tuesday Musical Association

“The association is the custodian of funds and financial manager for the city of akron for the heinz poll summer dance festival. The association is also the custodian of funds and financial manager for the ohio arts council for the poetry out loud and artful aging ohio programs. The association handles all of the administration functions under each agreement and separate checking accounts are maintained for this purpose. Since these funds do not belong to the association, the income and expense transactions that relate to these accounts are not included in the statement of activities. Additionally, an equal and offsetting liability is maintained to remove the value of these assets from the net assets of the association.”

“The primary objective for the investments of the association's portfolio is to provide a stable and growing source of income to support the needs of the association while preserving and enhancing its capital. This is accomplished by utilizing a mix of equities, fixed income, and cash equivalent securities conducive to participation in a long-term market, while allowing adequate protection of income and assets under current market conditions. As part of a total return investment objective, the association utilizes a spending policy to allocate appropriate income from the endowment fund. The current spending policy makes available on an annual basis up to 5% of the 12 quarter rolling average market value of the endowment fund. The average is re-calculated in january each year. The finance committee will recommend to the budget committee the amount available for the operating budget in the coming fiscal year. The finance committee will also recommend to the scholarship committee the amount available for scholarships from the scholarship fund in the coming fiscal year. The executive board of directors adopts the operating budget for the next fiscal year. After the budget is adopted the finance committee will advise the investment manager of the required allocations and establish a payment schedule. The endowment fund includes funds whose use is restricted by the donor and board designated funds. In the event of special needs or opportunities the finance committee will recommend to the board steps that can be taken using board designated funds. The scholarship fund may also include funds whose use is restricted by the donor.”

“The association has adopted the accounting for uncertainty in income taxes topic of the fasb accounting standards codification. Management has determined the effects of the adoption of this topic to be insignificant; therefore, no adjustments have been recorded and no further disclosures are required.”