Albuquerque Rotary Charitable Foundation Inc.

“The foundation is a nonprofit organization that is exempt from income taxes under section 501(c)(3) of the internal revenue code and is not considered a private foundation. Therefore, no provision for income taxes has been included in these financial statements. The foundation's income tax filings are subject to audit by various taxing authorities. The foundation's open audit periods are 2010 to 2014. The foundation believes that it has appropriate support for any tax position taken and as such, does not have any uncertain tax positions that are material to the financial statements.”

“The foundation's investment policy goal is that investment returns provide adequate income to fund the foundation's spending policy while preserving corpus. The spending policy is as follows: a) honor existing annual financial commitments related to temporarily restricted net assets and b) the current percentage to be spent each year is not to exceed 5% of the general unrestricted fund as measured on december 31 of the preceding calendar year. Volatility and risk will be mitigated by maintaining a diversified portfolio of stocks, bonds, government securities, cash and/or alternative investments within defined parameters. The investment committee, subject to the overall responsibility and direction of the board of directors, will supervise the investment of the various funds of the foundation and report to the board of directors. The investment committee will develop investment objectives and communicate such investment objectives and appropriate guidelines to the investment financial advisors and manager engaged by the foundation.”