here, such as interest expense and fees; capital expenditures attributable to personnel
costs or materials that must be expensed under audit standards; endowment payout; and
Capital Campaign and other gifts (subject to
accounting recognition rules).9 Some other
unrestricted revenues and expenses arise
from activity in designated funds outside the
Academy’s operating or capital budgets.
gifts or pledges that may be recorded under
accounting rules and other gifts are included
in private gifts and grants under Operating
Revenue and in contributions under Endowment and Other Non-Operating Revenue.
The combined total for 2013 was $7.3 million.
• The approximately $4.3 million decrease in
the net retiree obligations (i.e., pension-related items) are reflected in Endowment and
Other Non-Operating Revenues.
• Investment income ($9.3 million) under
Operating Revenue consists mainly of NCIF
payout used for the operating budget and for
other designated purposes. Net realized and
unrealized gain ($11.4 million) under Endowment and Other Non-Operating Revenue
primarily reflects a market increase during
the year. We mark our investments to market
each quarter, recording capital appreciation or decline as investment income or loss.
Combining the gain with investment income
represents the true positive investment return for the year ($20.7 million).
• The bottom line of the Statement shows the
overall increase in net assets of $10.4 million.
The Statement of Cash Flows, page 48, shows
a positive cash flow for the year of approximately
$205 thousand. Cash was expended for operating
activities ($3.3 million) and financing activities
($3.1 million) and provided from investing activities ($6.5 million).
• Annual fund gifts, new Capital Campaign
9
Other receipts or expenditures in the Capital Items report
only affect our balance sheet: for example, debt proceeds or
principal payments and capital expenditures that add to our
property, plant and equipment.
37