Hoban Trust Fund Inc.

“The organization has adopted specific investment and spending policies for endowment assets that attempt to preserve the portfolio's purchasing power through asset growth in excess of the spending rate plus the rate of inflation. The long-term objective for the fund is that it will earn an average annual return of at least 7.89%. Actual returns in any given year may vary from this amount. The objective is to maximize the long-term return while assuming a reasonable and prudent level of risk. To satisfy its long-term rate-of-return objectives, the organization 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). In accordance with the hoban trust fund distribution policy, it has been determined a total of 5.00% of the average total value of the endowment fund based on the market value at december 31 immediately prior to the beginning of the school year and the last day of each of the eleven quarters prior to that december 31 plus the aggregate available undistributed amounts from the previous three years will be distributed. All unrestricted accounts are removed from this calculation. The funds distributed are board designated as unrestricted for archbishop hoban high school and are to be used for operations, scholarships, and financial aid for tuition during the school year in which they are distributed.”

“The high school and trust fund are exempt from federal income tax under section 501(c)(3) of the internal revenue code. The high school and trust fund have 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.”