Annual Report 2018 - Page 41

  Changes in the value of pension benefits. The change in value of the pension benefits is defined as the change in the vested portion of the present value of the accumulated benefit obligation from December 31 of the prior year to December 31 of the most recent year for the District-wide Pension Plan as disclosed in Note 9 to the Consolidated Financial Statements in this Annual Report. This change in value does not represent cash payments made by the Association during the year, but rather is an estimate of the change in the Association’s future obligations under the pension plan. The change in the value of the pension benefits is highly sensitive to discount rates used to value the plan liabilities to participants. Amounts related to a senior officer retirement in 2016. No tax reimbursements are made to the CEO and senior officers. The value of the pension benefits from December 31, 2017 to December 31, 2018, changed primarily due to interest cost, accumulation of an additional year of credited service by plan participants, and changes in actuarial assumptions. Members may request information on the compensation to the individuals included in the preceding table during 2018. Pension Benefits Attributable to the Senior Officers (dollars in thousands) 2018 Name Years of Credited Service Plan Aggregate Number of Senior Officers Three AgriBank District Retirement Plan 32.6 $ Present Value of Accumulated Benefits 4,714 Payments Made During the Reporting Period $ -- The change in composition of the aggregate senior officer can have a significant impact on the calculation of the accumulated pension benefits. Effective January 1, 2007, the AgriBank District Retirement Plan was closed to new employees. Therefore, any employee starting employment with the AgriBank District after that date is not eligible to be in the plan. Transactions with Senior Officers and Directors Information regarding related party transactions is discussed in Note 10 to the Consolidated Financial Statements in this Annual Report. Travel, Subsistence, and Other Related Expenses Directors and senior officers are reimbursed for reasonable travel, subsistence, and other related expenses associated with business functions. A copy of our policy for reimbursing these costs is available by contacting us at: 1934 East Miller Street Jefferson City, MO 65101 (573) 635-7956 www.myfcsfinancial.com jeffersoncitymo@myfcsfinancial.com The total directors’ travel, subsistence, and other related expenses were $120 thousand, $98 thousand, and $122 thousand in 2018, 2017, and 2016, respectively. Involvement in Certain Legal Proceedings No events occurred during the past five years that are material to evaluating the ability or integrity of any person who served as a director or senior officer on January 1, 2019, or at any time during 2018. Member Privacy The FCA Regulations protect members’ nonpublic personal financial information. Our directors and employees are restricted from disclosing information about our Association or our members not normally contained in published reports or press releases. Relationship with Qualified Public Accountant There were no changes in independent auditors since the last Annual Report to members and we are in agreement with the opinion expressed by the independent auditors. The total financial statement audit fees paid during 2018 were $63 thousand. Our engagement letter commits to reimbursing the external auditor for reasonable out-of-pocket expenses as incurred for travel. Financial Statements The Report of Management, Report on Internal Control Over Financial Reporting, Report of Audit Committee, Report of Independent Auditors, Consolidated Financial Statements, and Notes to Consolidated Financial Statements are presented prior to this portion of the Consolidated Financial Statements in this Annual Report. Young, Beginning, and Small Farmers and Ranchers Information regarding credit and services to young, beginning, and small farmers and ranchers, and producers or harvesters of aquatic products is discussed in an addendum to this Annual Report. 38