Centracare Health Foundation

“Benefactors entrust the centracare health foundation with charitable funds. The board by policy and at its discretion desires to effectively secure, manage and distribute these charitable funds of the foundation. This policy governs the distribution from all component funds of the foundation. Staff shall adopt procedures to carry out the stated fund distribution policy. A benefactor or the board of directors may choose to create either a growth or expendable fund. A. Growth fund - the principal is endowed or available, but intended to be held on a long-term basis to produce income. The foundation board of directors has established a "spending policy" for growth funds. The spending policy outlines the percentage that will be transferred annually from the growth fund. B. Expendable fund - the principal is intended to be spent for the stated charitable purpose. Funds for distribution are available under four primary categories: 1.) unrestricted, 2.) field of interest, 3.) advised and 4.) designated. These categories of funds are either growth or expendable. A definition of each fund category is provided: 1. Unrestricted: centracare health foundation board of directors has complete discretion to make charitable grants to meet the greatest needs that the foundation identifies. 2. Field of interest: distributions are restricted to a charitable purpose specified by the benefactor (for example, a fund for medical mission work or a pediatric fund to help all children who are ill). 3. Advised fund: the benefactor (or person or committee designated by the benefactor) can advise centracare health foundation on charitable distributions). The recommendations are only advisory. The board of directors of the foundation has legal control over all distributions. 4. Designated: distributions are restricted to a specific program, service or purpose that was named by the benefactor at the time the contribution was made to the foundation (for example, the central minnesota heart center fund or breast center fund).”

“The foundation is subject to the accounting standard on accounting for uncertainty in income taxes, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under this guidance, the foundation may recognize the tax benefit from an uncertain tax position only if it is more-likely-than-not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The guidance on accounting for uncertainty in income taxes also addresses de-recognition, classification, interest and penalties on income taxes, and accounting in interim periods. Management evaluated the tax positions for the foundation and concluded that the foundation had taken no uncertain income tax positions that require adjustments to the financial statements to comply with the provisions of this guidance.”

“Change in value of trusts -1,025.”