Utah-Idaho Teamsters Security Fund

Part X : FIN48 Footnote

“The Fund follows the recommendations of Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 820 Fair Value Measurements and Disclosures for financial assets and liabilities measured on a recurring basis. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received upon the sale of an asset, or the amount paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability.ASC 820 established a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements).The three levels of the fair value hierarchy under ASC 820 are described below:Level 1Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Trust has the ability to access.Level 2Inputs to the valuation methodology include: - Quoted prices for similar assets or liabilities in active markets; - Quoted prices for identical or similar assets or liabilities in inactive markets; - Inputs other than quoted prices that are observable for the asset or liability; - Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.Level 3Inputs to the valuation methodology are unobservable and significant to the fair value measurement.The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Trust believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at April 30, 2014 and 2013.Corporate BondsValued using pricing models maximizing the use of observable inputs for similar securities. This includes basing values on yields currently available on comparable securities. U.S. Treasury ObligationsValued using pricing models maximizing the use of observable inputs. Assets itemized below were measured at fair value during the years ended April 30, 2014 and 2013 using the market approach.The following tables set forth by level, within the fair value hierarchy, the trust's assets at fair value as of April 30, 2014 and 2013:4-30-14US TREASURY OBLIGATIONS $758,492 LEVEL 1CORPORATE BONDS $17,885681 LEVEL 2TOTAL $18,644,1734-30-13US TREASURY OBLIGATIONS $630,735 LEVEL 1CORPORATE BONDS $18,530,682 LEVEL 2TOTAL $19,161,417 The following schedule summarizes unrestricted marketable U.S. Treasury Obligations and Corporate Bond investment returns and the classification included in the Statement of Activities for the fiscal years ended April 30, 2014 and 2013:4-30-14 INTEREST AND DIVIDENDS $848,770REALIZED/UNREALIZED GAIN ($413,950)4-30-13INTEREST AND DIVIDENDS $741,366REALIZED/UNREALIZED GAIN $6”