Albuquerque Rotary Charitable Foundation Inc.

“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 31st 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 definded 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.”

“The foundation is recognized as tax-exempt under section 501(c)(3) of the internal revenue code and is not classified as a private foundation. The foundation has adopted accounting principles generally accepted in the united states of america as they relate to uncertain tax positions and has evaluated its tax positions taken for open tax years. Currently, the 2014, 2015, and 2016 tax years are open and subject to examination by the internal revenue service and new mexico taxation and revenue department. Management believes that the activities of the foundation are within their tax-exempt purpose, and that there are no uncertain tax positions. Any interest and penalties recognized associated with a tax position are classified as current in the foundation's financial statements. There were no interest or penalties recorded as of june 30, 2018 and 2017, respectively.”