North Carolina Public Health Association

Part V, Line 4: Intended uses of the endowment fund.

“The Association is the beneficiary of annual distributions from four funds held by the North Carolina Community Foundation. In accounting for and reporting the value of the funds, the Association follows FASB ASC topic 958, subtopic 605-15, Transfers of Assets to a Not-for-Profit Entity or Charitable Trust that Raises or Holds Contributions for Others. Under this guidance, the Association has determined that three of the four funds held by the Community Foundation were established by the Association itself and the Association is the sole beneficiary. As such, the fair value of these funds as of June 30 fiscal year-end appears on the organization's balance sheet. The fiscal year activity within the funds (contributions, investment earnings, distributions) are considered the Community Foundations investment activity and therefore only the net change in the fund appears within the investment income on page 9, Part VIII, line 3 of Form 990. The activity is shown in Part V of Schedule D for user's information. The funds are considered permanently restricted until a distribution is made because variance power was granted to the Community Foundation and as such, the Association has no control over the amount of annual distributions or access to the principal balance of the funds.The NCPHA Foundation for a Healthy Future endowment was established in 2004 to provide operating support to the Association. The NC Public Health Association Scholarship endowment was established in 1998 to award scholarships through the NCPHA to current or prospective workers in public health in North Carolina for public health training.The Wood Endowment was established in 1994 to establish a permanent funding source for lectures and conferences of the Association. Additionally, the Association is a beneficiary of an annual distribution from the Dr. Ann F. Wolfe Endowment of the North Carolina Community Foundation. This endowment fund is an asset of the Community Foundation and therefore does not appear on the organization's balance sheet.”