FINANCIAL STATEMENTS WITH SUPPLEMENTAL INFORMATION …€¦ · Board of Directors Association of...

WITH

SUPPLEMENTAL INFORMATION

30 JUNE 2011 AND 2010

FINANCIAL STATEMENTS

Independent auditor's report 1

Financial statements:Statements of financial position 3Statements of activities 4Statements of cash flows 6Notes to financial statements 8

Supplemental information:Schedule of temporarily restricted funds - non-endowment 30Schedule of temporarily restricted funds - restricted endowment 38Schedule of permanently restricted funds 42

ASSOCIATION OF GRADUATES OF THE UNITED STATES AIR FORCE ACADEMY

TABLE OF CONTENTS

Board of DirectorsAssociation of Graduates

of the United States Air Force AcademyUSAF Academy, Colorado

INDEPENDENT AUDITOR'S REPORT

We have audited the accompanying statements of financial position of the Association of Graduates ofthe United States Air Force Academy (a nonprofit corporation) as of 30 June 2011 and 2010, and therelated statements of activities and cash flows for the years then ended. These financial statementsare the responsibility of the management of the Association of Graduates of the United States AirForce Academy. Our responsibility is to express an opinion on these financial statements based onour audits.

We conducted our audits in accordance with auditing standards generally accepted in the UnitedStates of America. Those standards require that we plan and perform the audits to obtain reasonableassurance about whether the financial statements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used and significant estimatesmade by management, as well as evaluating the overall financial statement presentation. We believethat our audits provide a reasonable basis for our opinion.

Colorado springs, ColoradoNovember 28, 2011

In our opinion, the financial statements referred to above present fairly, in all material respects, thefinancial position of the Association of Graduates of the United States Air Force Academy as of 30June 2011 and 2010, and the changes in its net assets and its cash flows for the years then ended inconformity with accounting principles generally accepted in the United States of America.

Our audits were conducted for the purpose of forming an opinion on the financial statements as awhole. The supplemental schedules of temporarily restricted funds - non-endowment, temporarilyrestricted funds - restricted endowment, and permanently restricted funds are presented for purposesof additional analysis and are not a required part of the financial statements. Such information is theresponsbility of management and was derived from and relates directly to the underlying accountingand other records used to prepare the financial statements. The information has been subjected tothe auditing procedures applied in the audits of the financial statements and certain additionalprocedures, including comparing and reconciling such information directly to the underlying accountingand other records used to prepare the financial statements or to the financial statements themselves,and other additional procedures in accordance with auditing standards generally accepted in theUnited States of America. In our opinion, the information is fairly stated in all material respects inrelation to the financial statements as a whole.

BiggsKofford, P.C. • Member AICPA630 Southpointe Court, Suite 200 • Colorado Springs, CO 80906 • Phone: 719.579.9090 • Fax: 719.576.0126 • www.biggskofford.com

THIS PAGE INTENTIONALLY LEFT BLANK

2011 2010ASSETS

Cash and cash equivalents 2,556,950$ 2,026,982$ Accounts receivable 276,558 229,732 Contributions receivable, net 660,225 1,302,737 Investments 26,060,879 23,220,325 Investments - agency 2,236,890 2,032,271 Inventory and prepaid expenses 142,630 131,719 Property and equipment, net 4,562,529 3,812,393 Other assets 845,642 871,994

Total assets 37,342,303$ 33,628,153$

LIABILITIES

Accounts payable and accrued expenses 204,973$ 241,978$ Agency deposits 2,236,890 2,032,271 Deferred revenue:

Life memberships 7,446,239 6,924,094 R lti d d 154 219 480 687

ASSOCIATION OF GRADUATES OF THE

STATEMENTS OF FINANCIAL POSITION30 JUNE

UNITED STATES AIR FORCE ACADEMY

Royalties and dues 154,219 480,687 Other liabilities 103,848 61,678

Total liabilities 10,146,169 9,740,708

NET ASSETS

Unrestricted:Unrestricted - undesignated 3,932,828 2,133,949 Unrestricted - equity in property and equipment

and construction in progress 5,304,323 4,622,709Unrestricted - designated - AOG Reserve 994,799 333,364

Total unrestricted 10,231,950 7,090,022 Temporarily restricted 12,841,302 12,679,420 Permanently restricted 4,122,882 4,118,003

Total net assets 27,196,134 23,887,445

Total liabilities and net assets 37,342,303$ 33,628,153$

The accompanying notes and independent auditor's reportshould be read with these financial statements.

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Unrestricted Temporarily Restricted

Permanently Restricted Total

SUPPORT AND REVENUE

Contributions 249,207$ 3,363,245$ 3,974$ 3,616,426$ Investment income 2,916,951 1,711,662 - 4,628,613 Membership dues 490,356 - - 490,356 Merchandising 89,704 - - 89,704 Publication and advertising 316,269 - - 316,269 Homecoming and reunions 207,980 - - 207,980 Royalties 292,251 - - 292,251 Other revenue 447,206 - - 447,206

5,009,924 5,074,907 3,974 10,088,805 NET ASSETS RELEASED

Satisfaction of restrictions 4,913,025 (4,913,025) - -

Total support and revenue 9,922,949 161,882 3,974 10,088,805

EXPENSES

P i 6 046 635 6 046 635


STATEMENT OF ACTIVITIESYEAR ENDED 30 JUNE 2011


The accompanying notes and independent auditor's reportshould be read with this financial statement.

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Program services 6,046,635 - - 6,046,635 Support services:

Management and general 616,035 - - 616,035 Fund raising 189,114 - - 189,114

Total expenses 6,851,784 - - 6,851,784

OTHER INCOME

Recovery of uncollectible pledges, net 71,668 - - 71,668

CHANGE IN NET ASSETS 3,142,833 161,882 3,974 3,308,689

RECLASSIFICATIONS (905) - 905 -

BEGINNING NET ASSETS 7,090,022 12,679,420 4,118,003 23,887,445

ENDING NET ASSETS 10,231,950$ 12,841,302$ 4,122,882$ 27,196,134$


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Unrestricted Temporarily Restricted

Permanently Restricted Total

SUPPORT AND REVENUE

Contributions 1,198,865$ 3,321,837$ 8,796$ 4,529,498$ Investment income 1,585,694 664,558 - 2,250,252 Membership dues 452,246 - - 452,246 Merchandising 93,262 - - 93,262 Publication and advertising 234,555 - - 234,555 Homecoming and reunions 179,021 - - 179,021 Royalties 268,676 - - 268,676 Other revenue 413,926 - - 413,926

4,426,245 3,986,395 8,796 8,421,436 NET ASSETS RELEASED

Satisfaction of restrictions 7,542,491 (7,542,491) - -

Total support and revenue 11,968,736 (3,556,096) 8,796 8,421,436

EXPENSES

P i 8 446 354 8 446 354


STATEMENT OF ACTIVITIESYEAR ENDED 30 JUNE 2010


5

Program services 8,446,354 - - 8,446,354 Support services:

Management and general 810,532 - - 810,532 Fund raising 617,704 - - 617,704

Total expenses 9,874,590 - - 9,874,590

OTHER LOSSES

Uncollectible pledges (708,652) - - (708,652)

CHANGE IN NET ASSETS 1,385,494 (3,556,096) 8,796 (2,161,806)

RECLASSIFICATIONS 800 (124,328) 123,528 -

BEGINNING NET ASSETS 5,703,728 16,359,844 3,985,679 26,049,251

ENDING NET ASSETS 7,090,022$ 12,679,420$ 4,118,003$ 23,887,445$


5

2011 2010CASH FLOWS FROM OPERATING ACTIVITIES

Change in net assets 3,308,689$ (2,161,806)$ Adjustments to reconcile change in net assets to net cash used in operating activities:

Non-cash (income) expenses:Depreciation 327,422 318,171 Unrealized gains on investments (4,156,837) (1,801,450)

Realized gains on investments (159,002) (70,750) Permanently restricted contributions (3,981) (8,796) Changes in operating assets and liabilities:

Accounts receivable (46,826) (61,726) Contributions receivable, net 642,512 1,618,316 Inventory and prepaid expenses (10,911) (20,999) Other assets 26,352 (171,739) Accounts payable and accrued expenses (37,005) 53,770 Agency deposits (159,288) 14,092 Deferred revenue:

Life memberships 522,145 300,223 Royalties and dues (326,468) 248,340


STATEMENTS OF CASH FLOWSYEARS ENDED 30 JUNE,



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Royalties and dues (326,468) 248,340 Other liabilities 42,170 17,868

Net cash used in operating activities (31,028) (1,726,486)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of investments (612,695) (1,835,680) Proceeds from the sale of investments 2,247,268 1,051,972 Purchases of property and equipment (1,077,558) (83,676)

Net cash provided by (used in) investing activities 557,015 (867,384)


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2011 2010CASH FLOWS FROM FINANCING ACTIVITIES

Receipt of permanently restricted contributions 3,981$ 8,796$

Net cash provided by financing activities 3,981 8,796

Net increase (decrease) in cash and cash equivalents 529,968 (2,585,074)

Cash and cash equivalents, beginning of year 2,026,982 4,612,056

Cash and cash equivalents, end of year 2,556,950$ 2,026,982$

STATEMENTS OF CASH FLOWSYEARS ENDED 30 JUNE,



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1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


NOTES TO FINANCIAL STATEMENTS30 JUNE 2011 AND 2010


The Association of Graduates of the United States Air Force Academy ("Association" or "AOG") isan organization serving the youngest of the service academies and its graduates. The Associationis chartered to support the ideals, values, and heritage of the United States Air Force Academy("Academy"); to encourage exceptional candidates to attend the Academy; to encourage andsupport fund raising for use in furthering the objectives of the Academy and the Association; tofoster camaraderie; and to provide a wide variety of services to graduates, cadets and theirparents. The Association is an important conduit for the support that exists throughout the countryfor the Academy and its mission. It provides the "extra margin of excellence," supporting worthyprograms not supported by federal funds.

To ensure observance of any limitations or restrictions placed on the use of resources available tothe Association, the financial records of the Association are maintained in accordance with theprinciples of fund accounting. This is the procedure by which resources for various purposes areclassified for accounting purposes into funds established according to their nature and purpose.Separate accounts are maintained for each fund.

Beginning January 1, 2010, the AOG entered into a Memorandum of Understanding (“MOU”) andOperating Agreement ("Agreement") with the USAFA Endowment, Inc. (“Endowment”) thatprovides for the Endowment to be the fund raising organization and the AOG to be the friend-raising organization for the Academy. The MOU covers a two-year period through December 31,2011 d ifi th t th AOG ill i i i $600 000 b id f th E d t

Basis of accounting

The financial statements of the Association have been prepared on the accrual basis of accountingand, accordingly, reflect all significant receivables, payables and other liabilities.

2011 and specifies that the AOG will receive a minimum $600,000 subsidy from the Endowmenteach year for operations. There will, however, be a dollar-for-dollar reduction of the subsidy for theunrestricted Air Force Academy Annual Fund and Sabre Society contributions that the AOGreceives. The Endowment rents office space in Doolittle Hall and receives operating support fromthe AOG at a slightly below market-level rate. The MOU and Agreement also provide for a sharingarrangement when total Air Force Academy Annual Fund and Sabre Society receipts between thetwo organizations exceed $1.9 million each year.

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1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of presentation

A.

B.

C.

The financial statement presentation follows accounting principals generally accepted in the UnitedStates of America ("US GAAP"). Under US GAAP, the Association is required to report informationregarding its financial position and activities according to three classes of net assets: unrestrictednet assets, temporarily restricted net assets and permanently restricted net assets. The variousclasses of net assets consist of the following fund groups:

Unrestricted - undesignated net assets are available for use in the current operations of theAssociation and equity in property and equipment and construction in progress. Unrestrictedrevenues are available to meet any Association expenditures.

Unrestricted - designated net assets are funds designated by the board of directors ("Board") forspecific purposes. These funds are not subject to donor restrictions and may be expended atthe Board's discretion.

Temporarily restricted net assets consist of those accounts for which contributions are restrictedby the donor. When a donor restriction expires, temporarily restricted net assets are reclassifiedto unrestricted net assets and reported in the statement of activities as net assets released from

t i ti D t i t d t ib ti d d i th t il t i t d l d

D.

Use of estimates

The preparation of financial statements in conformity with US GAAP requires management to makeestimates and assumptions that affect the reported balances of assets and liabilities and disclosureof contingent assets and liabilities at the date of the financial statements and the reported amountsof revenues and expenses during the reporting period. Actual results could differ from thoseestimates. The significant accounting estimates used in the preparation of the Association'sfinancial statements relate to the provision for uncollectable pledges, estimated useful lives ofproperty and equipment, functional allocation of expenses to program and support services, andactuarial estimates used to ensure that the life membership funds are adequate to meet relatedobligations.

restrictions. Donor-restricted contributions are recorded in the temporarily restricted class andthen reclassified to the unrestricted class as the donor restrictions are met. Included in thisclass are restricted earnings on the endowment funds.

Permanently restricted net assets consist of the principal amounts of gifts accepted with thedonor stipulation that the principal be maintained intact in perpetuity.

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Cash and cash equivalents

Accounts receivable

For purposes of the statements of cash flows, management considers all highly liquid investmentswith initial maturities of three months or less to be cash equivalents (with the exception of moneymarket funds held in investment accounts expected to be reinvested).

The Association maintains its cash and cash equivalents in bank deposit accounts in which thedeposits are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”). The operatingaccounts of the Association are held at an institution that is provided unlimited coverage by theFDIC for non-interesting bearing transaction accounts as part of the Dodd-Frank Wall StreetReform and Consumer Protection Act. As of the date of this report, this program is effectivethrough 31 December 2012. Topic 825 of the FASB Accounting Standards Codification (“FASBASC”), Financial Instruments, identifies these accounts as a concentration of credit risk requiringdisclosure regardless of the degree of risk. This risk is managed by maintaining deposits with highquality financial institutions. In addition, management does not believe that the Association isexposed to any significant risk related to financial institutions holding the Association’s cash andcash equivalents.

Contributions receivable

Accounts receivable are stated at the balance that the Association expects to collect. TheAssociation performs periodic reviews of accounts receivable to determine collectability. Accountsare written off once management determines the balance to be uncollectable. As of 30 June 2011and 2010, management considers accounts receivable to be fully collectable. Accordingly, noallowance for doubtful accounts has been recorded.

Contributions receivable are recognized when the donor makes a promise to give to theAssociation that is, in substance, unconditional. Donor restricted contributions are reported asincreases in temporarily or permanently restricted net assets depending on the nature of therestriction. When a restriction expires, temporarily restricted net assets are reclassified tounrestricted net assets.

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Contributions receivable (continued)

Investments

Investments - agency

Contributions receivable expected to be collected within one year are reported at their net realizablevalue. Contributions receivable expected to be collected in future years are reported at the presentvalue of estimated future cash flows using a discount rate of 5% for the years ended 30 June 2011and 2010, respectively. The resulting discount is amortized and is reported as contribution revenueas amortized.

Investments in marketable securities with readily determinable fair market values are presented atfair market value. Fair market values are based upon quoted market prices provided by theAssociation's brokers. All other investments are carried at fair value. Unrealized gains and lossesare included in the change in net assets in the accompanying statements of activities.

The Association uses the allowance method to determine uncollectable contributions receivable.The allowance is based upon prior years' experience and management's analysis of promisesmade.

Investments - agency

Inventory

Property and equipment

Inventory is valued at the lower of cost or fair value using the first in, first out method and consistsof retail merchandise available for sale.

The Association holds and invests monies for certain graduate classes of the Academy for thoseclasses' activities at future dates and for other organizations. These funds are classified as agencydeposits.

Property and equipment are recorded at cost for assets purchased by the Association and atestimated fair value at the date of donation for contributed assets. Depreciation of property andequipment is recorded using straight-line and accelerated methods over estimated useful lives ofthree to 31.5 years. The Association's policy is to capitalize assets costing $1,000 or more with auseful life of one year or more.

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Other assets

Deferred revenue - life memberships

Deferred revenue - royalties and dues

Other assets consist primarily of construction in progress. Upon completion, the projects will begifted to the Academy from the Association and its donors. Accordingly, the assets are notconsidered to be in service and are not being depreciated.

The Life Membership Fund ("LMF") contains the accounts used to invest, monitor and control feesreceived as a result of the Association's agreement to provide lifetime services to members whohave chosen this membership option.

The LMF and the current life membership fees are maintained and determined on a basis that isdesigned to ensure that the original fee is adequate to fund the annual cost of membership over theaverage life of participants in the program. Current life membership fees are treated as additions todeferred revenue. The LMF fees are amortized over an assumed average life expectancy of 55years after graduation.

Contribution revenue

Contributions received are reported as unrestricted, temporarily restricted or permanently restrictedsupport depending on the existence or nature of any donor restrictions. Unconditional promises togive with due dates in excess of one year are reported at net present value.

Royalties and dues collected in periods before being earned are presented on the financialstatements as deferred revenue.

Contributions that are restricted by the donor are reported as increases in unrestricted net assets ifthe restrictions expire in the fiscal year in which the contributions are recognized. All other donor-restricted contributions are reported as increases in temporarily or permanently restricted netassets depending on the nature of the restrictions. When a restriction expires (when a stipulatedtime restriction ends or purpose restriction is accomplished), temporarily restricted net assets arereclassified to unrestricted net assets and reported in the statement of activities as net assetsreleased from restrictions.

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Donated goods and services

Expense allocation

Financial instruments

The costs of providing the various programs and other activities have been summarized on afunctional basis in the statements of activities. Accordingly, certain operating expenses have beenallocated among programs and supporting services benefited based on management's estimation.

The Association's financial instruments consist of cash and cash equivalents, accounts receivable,t ib ti i bl i t t t bl d d I t t

Donated marketable securities and noncash donations of property and equipment are recorded ascontributions at estimated fair value at the date of donation. Donated services are reported whenthose services create or enhance nonfinancial assets or require specialized skills provided byindividuals possessing those skills and would typically be purchased if not provided by donation.Donated goods and services are reflected as contributions in the accompanying statements ofactivities at their estimated values at the date of receipt. They are recorded as unrestricted supportunless donor restrictions apply.

Income taxes

The Association is a nonprofit corporation exempt under Section 501(c)(3) of the Internal RevenueCode from federal and state income tax on net income earned in furtherance of its exemptpurpose. The Association received advertising income during the years ended 30 June 2011 and2010, which is considered unrelated business income. Due to offsetting expense items, nounrelated business income tax is due for the years ended 30 June 2011 or 2010.

contributions receivable, investments, accounts payable and accrued expenses. Investments arestated at fair value and all other financial instruments approximate fair value based on their short-term nature.

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Income taxes (continued)

Reclassifications

Subsequent events

Management evaluated subsequent events through November 28, 2011, the date these financialstatements were issued. There were no material subsequent events that required recognition oradditional disclosure in these financial statements.

The Association evaluates the effect of uncertain tax positions, if any, and provides for thosepositions in accordance with the provisions of FASB ASC Topic 450, Contingencies . TheAssociation is required to disclose any material adjustments as a result of tax examinations. TheAssociation reports interest and penalties resulting from these adjustments as interest expenseand other expenses, as applicable. There were no tax examinations or adjustments during theyears ended 30 June 2011 or 2010. Tax returns for the years 2008 through 2010 are subject toaudit by applicable taxing jurisdictions.

Certain prior year amounts have been reclassified to conform with the current year presentation.

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2. CONTRIBUTIONS RECEIVABLE

Contributions receivable consist of the following as of 30 June: 2011 2010

Unrestricted 279,777$ 760,292$ Restricted to program and support services 476,448 890,345 Permanently restricted - 4,500

Gross contributions receivable 756,225 1,655,137 Unamortized discount (13,900) (39,600)

Discounted contributions receivable 742,325 1,615,537 Allowance for uncollectible pledges (82,100) (312,800)

Contributions receivable, net 660,225$ 1,302,737$

Amounts due in:Less than one year 489,342$ 923,785$ One to five years 170,291 378,218 More than five years 592 734

Total contributions receivable 660,225$ 1,302,737$

3. INVESTMENTS

Investments consist of the following at 30 June 2011:

Unrealized Fair MarketCost Gain (Loss) Value

Mutual funds - equity 16,650,470$ 1,023,601$ 17,674,071$ Mutual funds - fixed income 4,610,681 249,523 4,860,204 Limited partnerships 6,444,566 (681,072) 5,763,494

Total investments 27,705,717$ 592,052$ 28,297,769$

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3. INVESTMENTS (CONTINUED)

Investment income consists of the following for the year ended 30 June 2011:

Temporarily AgencyUnrestricted Restricted Total Deposits

Interest and dividends 215,195$ 125,889$ 341,084$ 27,202$ Realized gains, net 99,330 59,672 159,002 12,793Investment fees (20,639) (7,671) (28,310) (1,689)

Investment income 293,886 177,890 471,776 38,306 Unrealized gains, net 2,623,065 1,533,772 4,156,837 351,114

Total investment return 2,916,951$ 1,711,662$ 4,628,613$ 389,420$

Investments consist of the following at 30 June 2010:

Unrealized Fair MarketCost Loss Value

Mutual funds - equity 16,535,988$ (3,040,245)$ 13,495,743$ Mutual funds - fixed income 5,424,264 503,916 5,928,180 Limited partnerships 6,834,212 (1,008,853) 5,825,359 Stock 3,314 - 3,314

Total investments 28,797,778$ (3,545,182)$ 25,252,596$

Investment income consists of the following for the year ended 30 June 2010:

Temporarily AgencyUnrestricted Restricted Total Deposits

Interest and dividends 289,516$ 116,442$ 405,958$ 24,441$ Realized gains, net 47,348 23,402 70,750 4,928 Investment fees (18,063) (9,843) (27,906) (2,094)

Investment income 318,801 130,001 448,802 27,275 Unrealized gains (losses) 1,266,893 534,557 1,801,450 125,156

Total investment return 1,585,694$ 664,558$ 2,250,252$ 152,431$

Included in total investments, are investments of $880,893 that were in liquidation as of 30 June2011. Final liquidation of these investments is expected no later than 2016. Accordingly, theseamounts may not be readily redeemable for cash and may not be fully recoverable.

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4. PROPERTY AND EQUIPMENT

Property and equipment consist of the following as of 30 June:

EstimatedUseful Lives 2011 2010

Buildings and improvements 31.5 years 7,895,148$ 6,882,166$ Equipment 3 - 7 years 1,660,416 1,595,840

9,555,564 8,478,006 Less accumulated depreciation (4,993,035) (4,665,613)

Net property and equipment 4,562,529$ 3,812,393$

5. CHANGES IN AGENCY DEPOSITS

Changes in agency deposits were as follows for the years ended 30 June:

2011 2010

Depreciation expense for the years ended 30 June 2011 and 2010, was $327,422 and $318,171,respectively.

Beginning balance 2,032,271$ 1,888,095$

Additions:Revenue 539,331 643,936 Earnings 389,420 152,431

928,751 796,367 Deductions:

Expenditures 724,132 652,191

Ending balance 2,236,890$ 2,032,271$

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6. CHANGES IN DEFERRED REVENUE - LIFE MEMBERSHIP FUNDS

LifeLife Membership Corporate

Memberships at Graduation Memberships Total

Beginning balance 6,454,790$ 395,391$ 73,913$ 6,924,094$

Additions:Fees from new members 390,788 318,644 - 709,432

Deductions:Transfers to operations (187,287) - - (187,287)

Transfers 88,315 (88,315) - -

Ending balance 6,746,606$ 625,720$ 73,913$ 7,446,239$

Changes in deferred revenue - life membership funds for the year ended 30 June 2011 were asfollows:

Changes in deferred revenue - life membership funds for the year ended 30 June 2010 were asfollows:

LifeLife Membership Corporate

Memberships at Graduation Memberships Total

Beginning balance 6,262,673$ 287,285$ 73,913$ 6,623,871$

Additions:Fees from new members 411,888 - - 411,888

Deductions:Transfers to operations (111,665) - - (111,665)

Transfers (108,106) 108,106 - -

Ending balance 6,454,790$ 395,391$ 73,913$ 6,924,094$

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7. FAIR VALUE OF ASSETS AND LIABILITIES

Level 1 - quoted prices in active markets for identical assets or liabilities

The fair value measurement accounting literature establishes a fair value hierarchy that prioritizesthe inputs to valuation techniques used to measure fair value. This hierarchy consists of threelevels:

Level 2 - observable inputs other than Level 1 prices, such as quoted prices for similar assets orliabilities; quoted prices in markets that are not active; or other inputs that are observable or canbe corroborated by observable market data for substantially the full term of the assets orliabilities

Level 3 - unobservable inputs that are supported by little or no market activity and that aresignificant to the fair value of the assets or liabilities

The Association's investments are reported at fair value in the accompanying statements offinancial position. The methods used to measure fair value may produce amounts that may not beindicative of net realizable value or reflective of future fair values. Furthermore, although theAssociation's management believes its valuation methods are appropriate and consistent with othermarket participants, the use of different methodologies or assumptions to determine the fair valueof certain financial instruments could result in different fair value measurements at the reportingdate. There have been no changes in the methodologies used between 30 June 2011 and 2010.

The valuation methodologies used for assets measured at fair value are as follows:

Mutual funds and stock - quoted market prices are available for identical securities in an activemarket, so these securities are classified within Level 1 of the valuation hierarchy.

Partnership interests - the estimated fair value of the interests is based on a certain percentageof the book value of the partnerships, these securities are classified within Level 3 of thevaluation hierarchy.

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7. FAIR VALUE OF ASSETS AND LIABILITIES (CONTINUED)

Level 1 Level 2 Level 3 Total

Mutual funds 22,534,275$ -$ -$ 22,534,275$ Partnership interests - - 5,763,494 5,763,494

Total 22,534,275$ -$ 5,763,494$ 28,297,769$

Level 1 Level 2 Level 3 Total

Mutual funds 19,423,923$ -$ -$ 19,423,923$ Partnership interests - - 5,825,359 5,825,359 Stock 3,314 - - 3,314

Total 19,427,237$ -$ 5,825,359$ 25,252,596$

A f th h i f i l f th A i ti ' L l 3 t i f ll f th

Fair value measurements of assets recognized in the accompanying financial statements,measured at fair value on a recurring basis, consist of the following as of 30 June:

2011

2010

2011 2010

Balance, beginning of the year 5,825,359$ 6,536,667$

Disposal of partnership interests (404,867) (704,712) Purchase of partnership interests - 1,000,000 Rebalancing of partnership interests - (1,238,550) Unrealized gains (losses) recognized 343,002 231,954

Balance, end of the year 5,763,494$ 5,825,359$

A summary of the changes in fair value of the Association's Level 3 assets is as follows for theyears ended 30 June:

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8. OPERATING LEASE

The future minimum lease commitments under the operating lease are as follows:

YEARS ENDING30 JUNE

2012 19,680$ 2013 19,680 2014 19,680 2015 19,680 2016 14,760

Total 93,480$

9. UNRESTRICTED-DESIGNATED NET ASSETS

Unrestricted-designated net assets consists of the following as of 30 June:

The Association signed an operating lease for copiers on 31 March 2011. The lease requiresmonthly payments of $1,640 and expires 31 March 2016. Rent under this lease agreement totaled$4,920 for the year ended 30 June 2011.

2011 2010Board designated:

AOG reserve 994,799$ 333,364$

10. TEMPORARILY RESTRICTED NET ASSETS

Temporarily restricted net assets consist of the following as of 30 June:

2011 2010

Available for expenditure for the following purposes:Program and support services 12,035,715$ 11,769,323$ Building maintenance and improvements 570,010 333,006

Time - unrestricted pledges receivable 235,577 577,091

Total temporarily restricted net assets 12,841,302$ 12,679,420$

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11. PERMANENTLY RESTRICTED NET ASSETS

2011 2010

Program and support services 2,335,076$ 2,330,197$ Building and maintenance 1,787,806 1,787,806

Total permanently restricted net assets 4,122,882$ 4,118,003$

12. ENDOWMENTS

Interpretation of current law

Th B d f th A i ti h i t t d th U if P d t M t f I tit ti l

The Association's endowments consists of approximately 40 individual funds established for avariety of purposes. The endowments include both donor-restricted endowment funds and fundsdesignated by the Board to function as endowments. As required by US GAAP, net assetsassociated with endowment funds, including funds designated by the Board to function asendowments, are classified and reported based on the existence or absence of donor-imposedrestrictions.

Permanently restricted net assets consist of the following as of 30 June:

The Board of the Association has interpreted the Uniform Prudent Management of InstitutionalFunds Act ("UPMIFA") as requiring the preservation of the original fair value of the donor-restrictedendowment funds, absent explicit donor stipulations to the contrary. As a result of thisinterpretation, the Association classifies as permanently restricted net assets (a) the original valueof gifts donated to the permanent endowment, (b) the original value of subsequent gifts to thepermanent endowment and (c) accumulations to the permanent endowment made in accordancewith the direction of the applicable donor gift instrument at the time the accumulation is added tothe fund. The remaining portion of the donor-restricted endowment fund that is not classified inpermanently restricted net assets is classified as temporarily restricted net assets until thoseamounts are appropriated for expenditure by the organization in a manner consistent with thestandard of prudence prescribed by UPMIFA.

22




12. ENDOWMENTS (CONTINUED)

Interpretation of current law (continued)

Endowment net assets consisted of the following at 30 June 2011:

Temporarily PermanentlyRestricted Restricted Total

Donor-restricted 1,306,096$ 4,122,882$ 5,428,978$

Ch i d t t i t f th f ll i f th d d 30 J 2011

In accordance with UPMIFA, the Association considers the following factors in making adetermination to appropriate or accumulate donor-restricted endowment funds:

(5) The expected total return from income and the appreciation of investments (6) Other resources of the Association (7) The investment policies of the Association

(2) The purposes of the Association and the donor-restricted endowment fund (3) General economic conditions (4) The possible effect of inflation and deflation

(1) The duration and preservation of the fund

Changes in endowment assets consist of the following for the year ended 30 June 2011:


Beginning of the year 663,622$ 4,118,003$ 4,781,625$

Investment returns:Interest and dividends 64,281 - 64,281 Realized and unrealized gains 811,613 - 811,613

Contributions - 3,974 3,974

Payouts (233,420) - (233,420)

Reclassifications - 905 905

End of the year 1,306,096$ 4,122,882$ 5,428,978$

23





Endowment net assets consisted of the following at 30 June 2010:


Donor-restricted 663,622$ 4,118,003$ 4,781,625$

Changes in endowment assets consist of the following for the year ended 30 June 2010:


Beginning of the year 580,067$ 3,985,679$ 4,565,746$

Investment returns:Interest and dividends 56,839 - 56,839 Realized and unrealized gains 270,370 - 270,370

Contributions - 8,796 8,796

Payouts (243,654) (800) (244,454)

Reclassifications - 124,328 124,328

End of the year 663,622$ 4,118,003$ 4,781,625$

Funds with deficiencies

From time to time, the fair value of assets associated with individual donor-restricted endowmentfunds may fall below the level that the donor or UPMIFA requires the Association to retain as a fundof perpetual duration. In accordance with US GAAP, there were no deficiencies of this nature thatare reported as of 30 June 2011 and 2010.

24





Return objectives and risk parameters

Strategies employed for achieving objectives

The Association has adopted investment and spending policies for endowment assets that attemptto provide a predictable stream of funding to programs supported by its endowment while seekingto maintain the original fair value of the endowment assets, absent explicit donor stipulations to thecontrary. Endowment assets include those assets of donor-restricted funds that the organizationmust hold in perpetuity or for a donor-specified period(s) as well as board-designated funds. Underthis policy, as approved by the Board, the endowment assets are invested in a manner that isintended to produce results that exceed the price and yield results of specific indices for each typeof security while assuming a moderate level of investment risk. The Association expects itsendowment funds to beat each benchmark as measured over a three to five year horizon. Thereare no specific tracking error constraints. Actual returns in any given year may vary from thisexpectation.

To satisfy its long-term rate-of-return objectives, the Association relies on a total return strategy inwhich investment returns are achieved through both capital appreciation (realized and unrealized)and current yield (interest and dividends). The Association targets a diversified asset allocation thatplaces a greater emphasis on equity-based investments to achieve its long-term return objectives

ithi d t i k t i t

Spending policy and how the investment objectives relate to the spending policy

within prudent risk constraints.

The Association has a policy of appropriating for distribution each year 3.5% of its endowmentfund’s average fair value over the prior 12 quarters through the calendar year-end preceding thefiscal year in which the distribution is planned. In establishing this policy, the Associationconsidered the long-term expected return on its endowment. Accordingly, over the long-term, theAssociation expects the current spending policy to allow its endowment to outperform inflation aswell as to provide additional real growth through new gifts and investment returns.

25




13. MERCHANDISING

Merchandising revenues consist of the following for the year ended 30 June:

2011 2010

Merchandising revenue 291,944$ 253,628$ Merchandising costs (202,240) (160,366)

Merchandising revenue, net 89,704$ 93,262$

14. EXPENSES - PROGRAM SERVICES

Expenses for program services consist of the following for the year ended 30 June:

2011 2010

Academy and other services 4,268,042$ 6,934,089$ Cost of publications 959,272 834,351 Member services 200,049 178,010 Special events and chapter support 351,100 277,599 Reunions 200,263 145,714 S i l f ti 38 153 37 126Special functions 38,153 37,126 Career opportunities 29,756 39,465

Total expenses - program services 6,046,635$ 8,446,354$

15. EMPLOYEE RETIREMENT PLAN

The Association established a qualified 401(k) profit sharing plan ("Plan"), effective 1 April 2003,covering all employees who are twenty-one years of age or older, have completed one year ofservice, and are not covered by a collective bargaining agreement. The employees may makeelective contributions of up to 100% of compensation, subject to statutory limitations, and theAssociation will make matching contributions equal to 25% of the employee's elective deferrals ofup to 5% of compensation. In addition, the Association may make discretionary contributions to thePlan. The Plan provides for full vesting of matching and discretionary contributions after six yearsof service. The Association made contributions of $55,917 and $57,428 for the years ended 30June 2011 and 2010, respectively.

26




15. EMPLOYEE RETIREMENT PLAN (CONTINUED)

16. SIGNIFICANT ESTIMATES AND CONCENTRATIONS

Contribution revenues

C dit i k

During the years ended 30 June 2011 and 2010, the Association received approximately 73% and53%, respectively, of the total contributions from one donor.

During the year ended 30 June 2009, the Association established a qualified 457(b) deferredcompensation plan (“Deferred Compensation Plan”). The Deferred Compensation Plan excludedall employees with the exception of a select group of highly compensated employees and allowedthose employees to make voluntary salary reduction contributions with no limitations. Under theDeferred Compensation Plan, the employer is allowed to make discretionary non-electivecontributions to each participant’s account. Contributions to the Plan are immediately vestedwithout regard to additional service by the participant. The Association made discretionary non-elective contributions to the Deferred Compensation Plan of $8,250 and $6,661 for the years ended30 June 2011 and 2010, respectively.

US GAAP requires disclosure of certain significant estimates and current vulnerabilities due tocertain concentrations. Those matters include the following:

Credit risk

Current economic conditions

The current economic environment presents nonprofit organizations with unprecedentedcircumstances and challenges, which in some cases have resulted in large declines in the fairvalue of investments and other assets, and constraints on liquidity. The financial statements havebeen prepared using values and information currently available to the Association.

In addition, given the volatility of current economic conditions, the values of assets and liabilitiesrecorded in the financial statements could change rapidly, resulting in material future adjustmentsin investment values that could negatively impact the Association's ability to maintain sufficientliquidity.

* * * * * * *

Certain financial instruments potentially subject the Association to concentrations of credit risk.These financial instruments consist primarily of investments. The Association invests in whatmanagement considers to be high quality investment instruments and attempts to limit the amountof credit exposure to any one entity or in any one industry.

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THIS PAGE INTENTIONALLY LEFT BLANK

SUPPLEMENTAL INFORMATION

Beginningbalance Contributions

Campaign Fund:

General 133,313$ -$ Academics 78,040 - Jannetta - War, Literature & Art 220 - Academic Research 6,230 - Center for Space and Defense Policy 308,977 - Admissions 8,200 - Athletics 165,602 - Hall of Excellance Display 27,225 - Character 95,557 - Memorial Pavillion 242,341 - Leadership 12,537 - Cadet Clubs 15,000 - Buddhist chapel - 10,000 CF - Memorials 7,751 -

Air Force Academy Fund for Cadet Emergencies 14,119 - Nutter Scholarship Fund 192,103 12,819 Superintendent's Discretionary Fund 42,899 52,635 Superintendent's Other Discretionary Fund 1,300,480 2,579,115 Humanitarian / Terminally Ill Graduates 35,548 - Wings of Blue Fund 1 400 70

ASSOCIATION OF GRADUATES OF THE UNITED STATES AIR FORCE ACADEMYSCHEDULE OF TEMPORARILY RESTRICTED FUNDS

YEAR ENDED 30 JUNE 2011NON-ENDOWMENT

Wings of Blue Fund 1,400 70 Lacrosse Fund 8,595 - Men's Rugby Fund 5,507 - DFAS (Astronautics Department) 47,787 26,384 DFEM (Mechanical Engineering Department) 520 - Wing Open Boxing 1,318 - Comprehensive Campaign Fund for the Superintendent 52,981 - Roth Fund for the Department of Management 2 - Friends of Basketball 101,629 36,751 AOG Pavers 15,139 13,820 Tony M. Johnson Math Teaching Award 3,428 - William Stern Fund for Cemetery Bench Maintenance 1,885 - Memorial Maintenance Fund 25,770 - Olmsted Foundation - Cultural Immerse 1,994 - Olmsted Foundation - ROTC Cultural Immerse 5,376 -

Carried forward 2,959,473$ 2,731,595$

See independent auditor's report.

30

Total support Expenditures Re- EndingRevenue and revenue and releases classification balance

-$ -$ 7,500$ -$ 125,813$ - - 5,000 - 73,040 - - - - 220 - - 3,000 - 3,230 - - 145,197 - 163,780 - - 8,200 - - - - 65,676 - 99,926 - - - - 27,225 - - 5,541 - 90,016 - - 157,241 - 85,100 - - 3,000 - 9,537 - - 6,100 - 8,900 - 10,000 - - 10,000 - - 6,712 - 1,039 - - - - 14,119 - 12,819 5,000 - 199,922 - 52,635 4,673 - 90,861 - 2,579,115 2,550,960 - 1,328,635 - - - - 35,548 - 70 - - 1 470- 70 - - 1,470 - - - - 8,595 - - 1,500 - 4,007 44 26,429 4,697 - 69,519

- - - - 520 - - - - 1,318 - - - - 52,981 - - - - 2 - 36,751 25,209 - 113,172 - 13,820 10,340 - 18,619 - - 60 - 3,368 - - 1,885 - - - - 25,770 - - - - - - 1,994 - - - - 5,376

44$ 2,731,639$ 3,043,262$ -$ 2,647,850$


31




Balance forward 2,959,473$ 2,731,595$

Olmsted Foundation - Historical Symposium and Academy Assembly 500 - Friends of Boxing 71,403 1,000 Fencing 5,786 - Zoomie Rugby Football Club 700 - Academics General - License Plates 23,442 2,200 Unspecified donor restricted funds - 10,025 Class of '59 Class Gift 2,237 4,000 Class of '60 Class Gift 99,704 4,863 Class of '61 Class Gift 118,326 166,383 Class of '62 Class Gift 10,838 7,201 Class of '63 Class Gift 1,185 - Class of '64 Class Gift 235,987 1,025 Class of '65 Class Gift 190 189 Class of '66 Class Gift 142,348 3,038 Class of '67 Class Gift 184,224 23,220 Class of '68 Class Gift 24,181 2,183 Class of '69 Class Gift 1,209,030 497 Class of '70 Class Gift 500,044 236,462 Class of '71 Class Gift 50 727 -Class of 71 Class Gift 50,727 - Class of '72 Class Gift 921 - Class of '73 Class Gift 328,192 1,313 Class of '74 Class Gift 75,177 16,626 Class of '75 Class Gift 96,750 1,010 Class of '76 Class Gift 12,874 - Class of '77 Class Gift 10,506 - Class of '78 Class Gift 8,053 - Class of '80 Class Gift 188,616 2,075 Class of '81 Class Gift 64,979 835 Class of '82 Class Gift 138,584 - Class of '83 Class Gift 2,019 100 Class of '84 Class Gift 16,645 125 Class of '85 Class Gift 20,272 70

Carried forward 6,603,909$ 3,216,033$


32


44$ 2,731,639$ 3,043,262$ -$ 2,647,850$

- - - - 500 - 1,000 - - 72,403 - - - - 5,786 - - - - 700 - 2,200 42 - 25,599 - 10,025 8,355 - 1,670 - 4,000 6,237 - - - 4,863 82,217 - 22,349 - 166,383 92,725 - 191,984 - 7,201 3,609 - 14,430 - - - - 1,185 - 1,025 126,928 - 110,084 - 189 - - 378 - 3,038 (13,291) - 158,677 - 23,220 42,900 - 164,545 - 2,183 4,078 - 22,286 - 497 3,518 - 1,206,009

(272) 236,190 654,465 - 81,769 - - - - 50 727- - - - 50,727 - - 5,000 - (4,079) - 1,313 28,415 - 301,090 - 16,626 41,251 - 50,552 - 1,010 21,212 - 76,549 - - (300) - 13,174 - - - - 10,506 - - - - 8,053 - 2,075 8,241 - 182,450 - 835 (3,190) - 69,003 - - - - 138,584 - 100 278 - 1,840 - 125 97 - 16,673 - 70 (90) - 20,432

(228)$ 3,215,806$ 4,155,960$ -$ 5,663,755$


33




Balance forward 6,603,909$ 3,216,033$

Class of '87 Class Gift 49,741 374 Class of '88 Class Gift 14,753 - Class of '89 Class Gift 32,458 500 Class of '90 Class Gift 20,120 75 Class of '91 Class Gift 99,151 1,240 Class of '92 Class Gift 92,402 300 Class of '94 Class Gift 1,000 - Class of '95 Class Gift 163 - Class of '96 Class Gift 850 - Class of '02 Class Gift 36 - Class of '10 Class Gift - 30,444 Quasi-endowments:

Visiting Lecturer - Systems Engineering 514,945 - McConn Scholarship 1,337,044 - Academic Research 34,621 - Defense Policy 17,446 - Falcon Foundation 204,466 350 Falcon Foundation - Ackerman 375,413 (75) Admissions 42 396 -Admissions 42,396 - Athletic Director 1 - Football 42,396 - LaCrosse and Fencing 12,699 - Warrior Remembrance 490,213 - Storyteller Exhibit Maintenance Endowment 40,158 - Falcon Heritage Forum 232 - Falcon Heritage Forum Keynote Speaker 75,894 - Falcon Heritage Forum Travel 38,145 - Class of '65 Endowment 133,022 - Character - Legasey 143,503 - Character - Schlossberg 216,184 - Character - Moore 47,746 - Character - West 126,859 - ACES Program 38,772 - Honor Education - Class of '75 261,604 -

Carried forward 11,108,342$ 3,249,242$


34


(228)$ 3,215,806$ 4,155,960$ -$ 5,663,755$

- 374 (389) - 50,504 - - - - 14,753 - 500 27,104 - 5,854 - 75 - - 20,195 - 1,240 - - 100,391 - 300 - - 92,702 - - - - 1,000 - - - - 163 - - - - 850 - - - - 36 - 30,444 - - 30,444

96,011 96,011 4,411 - 606,545 240,852 240,852 145,736 - 1,432,161

6,455 6,455 297 - 40,779 3,253 3,253 149 - 20,549

35,756 36,106 18,932 - 221,640 69,070 68,995 16,254 - 428,154 7 905 7 905 363 - 49 9387,905 7,905 363 - 49,938

- - - - 1 7,891 7,891 1,877 - 48,410 2,368 2,368 109 - 14,958

91,472 91,472 9,500 - 572,185 7,114 7,114 5,603 - 41,669

43 43 2 - 273 13,890 13,890 3,329 - 86,455 6,982 6,982 1,666 - 43,461

23,999 23,999 6,098 - 150,923 26,258 26,258 6,339 - 163,423 39,558 39,558 9,541 - 246,202 8,738 8,738 2,096 - 54,388

23,213 23,213 5,601 - 144,471 7,099 7,099 1,671 - 44,199

48,714 48,714 2,881 - 307,437

766,412$ 4,015,654$ 4,425,128$ -$ 10,698,868$


35




Balance forward 11,108,342$ 3,249,242$

Character - Prep School - - Roslyn Schulte Character/Leadership 56,385 903 Class of '80 Excellence in Ethics 135,326 - Joesph D. Helton Memorial Award 4,497 100 O'Malley Award 22,075 - Character - AOG 104,318 - CGA - Coleman 7,764 - AOG Heritage Preservation Fund - 102,300

Time restricted unrestricted pledges receivable 577,091 10,700

Total 12,015,798$ 3,363,245$


36


766,412$ 4,015,654$ 4,425,128$ -$ 10,698,868$

- - - - - 10,458 11,361 3,703 - 64,043 24,639 24,639 9,499 - 150,465

846 946 39 - 5,404 4,103 4,103 640 - 25,539

19,450 19,450 894 - 122,874 5,995 5,995 - - 13,759 3,864 106,164 (112,512) - 218,677

- 10,700 352,214 - 235,577

835,768$ 4,199,013$ 4,679,606$ -$ 11,535,205$


37

Beginningbalance

General Ira C. Eaker Endowment for Defense Policy Lecture Series 10,803 Frank E. & H. E. Hedrick Endowment for Cadet and Faculty Enrichment 19,060 Dr. Henry Kissinger Endowment for National Security Studies 4,560 John K. Gerhart Scholarship for French Study 33,963 Donald R. Backlund Endowment for USAFA Military Symposium 1,474 Roger Stringer Award for Outstanding Cadet in Intercollegiate Speech 3,980 Henry S. Walker Endowment for POW Museum 14,227 Col. Franklin C. Wolfe Humanities Scholarship 5,108 WWI Overseas Flyers - American Aviation in WWI 18,463 Cadet Leadership Enrichment 50,046 A.J. Mione Cadet Award for Outstanding Physics Research 4,238 Graduate Dependent Scholarship (2,799) Joseph A. Reich, Sr. Lecture Series 10,888 305th Bombardment Group Memorial Association - Leadership Education 26,191 306th Bombardment Group Historical Association - History of the 306th 9,479 Richard Lawson - Award for Outstanding Cadet in Communications 19,429 J C Li dh C d t H A d 2 950

YEAR ENDED 30 JUNE 2011


RESTRICTED ENDOWMENT

Jerry C. Lindh - Cadet Honor Awards 2,950 Ross A. LaTorra - Men's Rugby 1,307 Computer Science Department Awards 626 Warren Sneed - Wings of Blue Jump Team 6,432 General Kenneth L. Tallman - Liaison Officer Service Awards 606 General & Mrs. L.I. Davis - Astronautics Community Projects 6,198 Graduate and Non-Graduate Awards 10,704 Laura A. Piper - Squadron Award 920 Class of '62 - Academy and AOG Projects 6,415 Robert B. Spear - Men's Basketball Player Award 3,021 William R. Grace - Maintenance of the Sand Volleyball Court 5,869 William F. Goodner - Biology Teaching Excellence 2,515 Pace Weber - Outstanding Men's Lacrosse Player Award 1,223 Kenneth Thiele - Graduate History Scholarship 4,231 William Heiser - Senior Faculty Teaching Award 2,436 Q.C. Snyder - Management Department Support 330 Richard Buschmann - Graduate Dependent Scholarship 1,695 Class of '74 - Award for Character Development 2,673 Class of '59 - NCLS Keynote Speaker 13,063

Carried forward 302,324$


38

Total support Expenditures EndingContributions Revenue and revenue and releases balance

-$ 14,634$ 14,634$ 669$ 24,769$ - 31,453 31,453 6,423 44,090 - 4,565 4,565 1,107 8,017 - 57,470 57,470 10,115 81,318 - 2,461 2,461 113 3,822 - 2,891 2,891 631 6,240 - 5,206 5,206 239 19,193 - 8,896 8,896 2,153 11,851 - 6,045 6,045 278 24,230 - 84,767 84,767 20,371 114,442 - 4,413 4,413 336 8,314 - 24,740 24,740 1,592 20,349 - 18,515 18,515 4,497 24,906 - 14,661 14,661 674 40,178 - 3,297 3,297 151 12,624 - 43,350 43,350 10,961 51,818

2 209 2 209 102 5 058- 2,209 2,209 102 5,058 - 2,237 2,237 551 2,993 - 1,669 1,669 376 1,919 - 5,990 5,990 1,984 10,438 - 2,307 2,307 1,003 1,910 - 7,149 7,149 1,722 11,625 - 12,622 12,622 2,501 20,825 - 588 588 27 1,481 - 5,498 5,498 1,298 10,615 - 2,155 2,155 99 5,077 - 4,161 4,161 193 9,836 - 2,266 2,266 502 4,279 - 1,141 1,141 180 2,184 - 3,240 3,240 274 7,196 - 4,122 4,122 986 5,572 - 557 557 125 762 - 2,249 2,249 601 3,343 - 4,442 4,442 1,050 6,064 - 20,978 20,978 5,045 28,996

-$ 412,943$ 412,943$ 78,929$ 636,338$


39

Beginningbalance



RESTRICTED ENDOWMENT

Balance forward 302,324$

Cadet Chapel 1,078 Tober Family - Astronautics Programs 31,150 Peter Brown - Summer Research Institute 1,891 Harold Gilbert Character/Leadership Endowment (5,827) Building Operations and Maintenance 333,006 Long Blue Line Endowment Fund -

Total 663,622$


40

Total support Expenditures EndingContributions Revenue and revenue and releases balance

-$ 412,943$ 412,943$ 78,929$ 636,338$

- 2,044 2,044 393 2,730 - 50,134 50,134 4,610 76,674 - 3,149 3,149 145 4,896 - 22,094 22,094 1,015 15,252 - 385,332 385,332 148,328 570,010

197 197 - 197

-$ 875,894$ 875,894$ 233,419$ 1,306,096$


41

Beginningbalance

General Ira C. Eaker Endowment for Defense Policy Lecture Series 67,169$ Frank E. & H. E. Hedrick Endowment for Cadet and Faculty Enrichment 151,524 Dr. Henry Kissinger Endowment for National Security Studies 20,058 John K. Gerhart Scholarship for French Study 278,158 Donald R. Backlund Endowment for USAFA Military Symposium 11,725 Roger Stringer Award for Outstanding Cadet in Intercollegiate Speech 11,551 Henry S. Walker Endowment for POW Museum 13,695 Col. Franklin C. Wolfe Humanities Scholarship 43,511 WWI Overseas Flyers - American Aviation in WWI 13,957 Cadet Leadership Enrichment 410,851 A.J. Mione Cadet Award for Outstanding Physics Research 19,435 Graduate Dependent Scholarship 138,587 Joseph A. Reich, Sr. Lecture Series 91,557 305th Bombardment Group Memorial Association - Leadership Education 52,439 306th Bombardment Group Historical Association - History of the 306th 8,202 Richard Lawson - Award for Outstanding Cadet in Communications 217,500 Jerry C. Lindh - Cadet Honor Awards 8,898 Ross A LaTorra Men's R gb 10 854

ASSOCIATION OF GRADUATES OF THE UNITED STATES AIR FORCE ACADEMYSCHEDULE OF PERMANENTLY RESTRICTED FUNDS


Ross A. LaTorra - Men's Rugby 10,854 Computer Science Department Awards 8,338 Warren Sneed - Wings of Blue Jump Team 26,367 General Kenneth L. Tallman - Liaison Officer Service Awards 13,258 General & Mrs. L.I. Davis - Astronautics Community Projects 32,677 Graduate and Non-Graduate Awards 57,084 Laura A. Piper - Squadron Award 2,235 Class of '62 - Academy and AOG Projects 23,470 Robert B. Spear - Men's Basketball Player Award 8,535 William R. Grace - Maintenance of the Sand Volleyball Court 16,241 William F. Goodner - Biology Teaching Excellence 9,805 Pace Weber - Outstanding Men's Lacrosse Player Award 4,900 Kenneth Thiele - Graduate History Scholarship 13,128 William Heiser - Senior Faculty Teaching Award 20,000 Q.C. Snyder - Management Department Support 2,700 Richard Buschmann - Graduate Dependent Scholarship 10,345 Class of '74 - Award for Character Development 21,500 Class of '59 - NCLS Keynote Speaker 101,000 Cadet Chapel 10,000

Carried forward 1,951,254$


42

EndingContributions Expenses Reclassification Balance

- -$ - 67,169$ - - - 151,524 - - - 20,058 - - - 278,158 - - - 11,725 - - - 11,551 - - - 13,695 - - - 43,511 - - - 13,957 - - - 410,851 - - - 19,435

2,021 - 905 141,513 - - - 91,557 - - - 52,439 - - - 8,202 - - - 217,500 - - - 8,898 100 10 954100 - - 10,954 - - - 8,338 575 - - 26,942 - - - 13,258 - - - 32,677 - - - 57,084 - - - 2,235 - - - 23,470 - - - 8,535 500 - - 16,741 - - - 9,805 - - - 4,900 500 - - 13,628 - - - 20,000 - - - 2,700 - - - 10,345 - - - 21,500 - - - 101,000 - - - 10,000

3,696$ -$ 905$ 1,955,855$


43

Beginningbalance

ASSOCIATION OF GRADUATES OF THE UNITED STATES AIR FORCE ACADEMYSCHEDULE OF PERMANENTLY RESTRICTED FUNDS


Balance forward 1,951,254$

Tober Family - Astronautics Programs 238,615 Peter Brown Endowment 15,000 Harold Gilbert Character/Leadership Endowment 124,328 Building Operations and Maintenance 1,787,806 Long Blue Line Endowment Fund 1,000

Total 4,118,003$


44

EndingContributions Expenses Reclassification Balance

3,696$ -$ 905$ 1,955,855$

- - - 238,615 - - - 15,000 - - - 124,328 - - - 1,787,806 278 - - 1,278

3,974$ -$ 905$ 4,122,882$


45

FINANCIAL STATEMENTS WITH SUPPLEMENTAL INFORMATION …€¦ · Board of Directors Association of...

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