September 30, 2014: Cash and Cash Equivalents Short-Term Investments Total Carrying Value Total Fair Value Demand Deposit Account $5,586,537 $— $5,586,537 $5,586,537 Money Market Accounts 9,526,058 — 9,526,058 9,526,058 Certificates of Deposit — 10,452,000 10,452,000 10,441,727 Less — Outstanding Checks (2,983,296) — (2,983,296) (2,983,296) Totals for 2014 $12,129,999 $10,452,000 $22 ,581,299 $22,571,026 Cash and Cash Equivalents Short-Term Investments Total Carrying Value Total Fair Value Demand Deposit Account $4,366,288 $— $4,366,288 $4,366,288 Money Market Accounts 9,988,277 — 9,988,277 9,988,277 Certificates of Deposit — 6,969,002 6,969,002 6,963,363 (559,297) — (559,297) (559,297) $13,795,268 $6,969,002 $20,764,270 $20,758,631 September 30, 2013: Less — Outstanding Checks Totals for 2013 (5) UNRESTRICTED NET ASSETS Unrestricted net assets represent amounts currently available for the use in the Board’s operation in accordance with the Act and those resources invested in fixed assets. Designated net asset balances represent tentative plans of the Board for future use of financial resources, as follows: Designated for Future Expenses This balance relates to unexpended program appropriations. Designated – Board Reserve On October 6, 2010, the Board has approved the establishment of a reserve in the amount of $4,350,000 to be used, as the Board may deem necessary, with the approval of the Secretary. Undesignated As of September 30, 2014 and 2013, $4,089,927 and $2,943,910, respectively, of the net assets had not been designated by the Board and is available for budgeting to the various program areas. Of these amounts, $10,531 and $20,234 represent net assets invested in fixed assets as of September 30, 2014 and 2013, respectively. (6) INCOME TAX STATUS The Board has received a ruling from the Internal Revenue Service stating that it is classified as a tax‐exempt entity that engages in activities under the aegis of the United States Department of Agriculture. In accordance with the Board’s policy, the demand deposit accounts, the money market accounts and the certificates of deposit are insured by the Federal Deposit Insurance Corporation and/or fully collateralized by U.S. Government securities held at the Federal Reserve Bank in the Board’s name. (7) PENSION PLAN The Board provides a defined contribution plan for all of its employees under which annual contributions are provided based on a percentage of each employee’s salary. Contributions required and funded by the Board were approximately $112,000 and $111,000 in 2014 and 2013, respectively. (4) ADMINISTRATION EXPENSE The Act limits expenses for the administration of the program to 5% or less of projected revenues. Projected revenues were $39,000,000 for 2014 and $39,400,000 for 2013. Accordingly, the administrative expenses incurred by the Board were limited to $1,950,000 in 2014 and $1,970,000 in 2013. Administrative expenses incurred by the Board on the accrual basis (versus modified cash basis amounts reflected in the accompanying statements of revenues, expenses and changes in unrestricted net assets) were approximately $1,640,000 (4.2% of projected revenues) in 2014 and $1,547,000 (3.9% of projected revenues) in 2013. Expressed as a percentage of actual revenues, the Board’s administrative expenses were 4.0% in 2014 and 3.9% in 2013. (8) SUBSEQUENT EVENT Management evaluated subsequent events through November 20, 2014, the date the audited financial statements were available to be issued. Events or transactions occurring after September 30, 2014, but prior to November 20, 2014, that provided additional evidence about conditions that existed at September 30, 2014 have been recognized in the financial statements for the year ended September 30, 2014. Events or transactions that provided evidence about conditions that did not exist at September 30, 2014, but arose before the financial statements were available to be issued, have not been recognized in the financial statements for the year ended September 30, 2014. The Board has entered into an Administrative Services Agreement with NCBA whereby NCBA agreed to provide certain administrative services to the Board in return for reimbursement of all direct and indirect costs related to the provided services. During 2014 and 2013, respectively, the Board paid NCBA approximately $32,000 and $31,000 related to this agreement. The Board leases office facilities and equipment from outside third‐parties under operating leases. Payments required under the leases were approximately $93,000 during 2014 and $92,000 during 2013. Future annual payments related to the leases are approximately $95,000 in 2015, $96,000 in 2016, $93,000 in 2017, $96,000 in 2018, $98,000 in 2019 and $50,000 thereafter. 18 In October 2014, the Board and the Secretary approved $2,977,573 of the September 30, 2014 net asset balance as designated for expenditures in 2015.