Adolescent Counseling Services

“The organization has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment funds while seeking to maintain the purchasing power of the endowment assets. Endowment assets include board designated funds. The primary objective for board-designated funds shall also be protection of capital, but with a higher tolerance for risk and a higher emphasis on return. Liquidity is not a priority since the organization does not expect to expend these board-designated funds on short-notice. The organization invests these board-designated funds in securities and mutual funds such as diversified stock and bond portfolios but not in highly speculative investments. When investing all endowment funds, management of the organization bears in mind the "prudent investor rule". Under the "prudent investor rule", the organization has a fiduciary responsibility to donor-restricted funds similar to that of a trustee to a beneficiary. Accordingly, the organization is subject to the trust law concept that a trustee should invest a beneficiary's funds as a prudent investor would invest their own funds. If there are donor-specific investment guidelines, those guidelines supersede the investment policy of the organization and the organization shall adhere to those guidelines. Historically, under the board of directors and finance committee guidelines, the annual distribution from the endowment is targeted at 5% of the beginning of the year balance of the endowment. The organization reserves the right to modify the spending policy. To achieve the organization's distribution policy, the endowment assets are invested in a portfolio comprised of cash equivalents, equity securities, fixed income securities, and mutual funds. The portfolio is designed to maximize long-term total investment return while maximally supporting the organization's endowment project.”

“As required by generally accepted accounting principles, acs recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. Acs considered all tax positions for which the statute of limitations remained open and determined there were no unrecognized tax benefits as of june 30, 2021 and 2020. The fiscal years ended june 30, 2018, 2019, and 2020 are still open to audit for both federal and state purposes.”