FINANCIAL STATEMENTS WITH SUPPLEMENTAL INFORMATION …€¦ · Opinion Report on Supplemental...

WITH

SUPPLEMENTAL INFORMATION

30 JUNE 2014 AND 2013

FINANCIAL STATEMENTS

Independent auditor's report 1

Financial statements:Statements of financial position 4Statements of activities 5Statements of cash flows 7Notes to financial statements 9

Supplemental information:Schedule of temporarily restricted funds - non-endowment 31Schedule of temporarily restricted funds - restricted endowment 37Schedule of permanently restricted funds 39

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

Report on the Financial Statements

Management's Responsibility for the Financial Statements

Auditor's Responsibility

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion.

INDEPENDENT AUDITOR'S REPORT

We have audited the accompanying statements of financial position of the Association of Graduatesof the United States Air Force Academy (a nonprofit corporation) as of 30 June 2014 and 2013, andthe related statements of activities and cash flows for the years then ended, and the related notes tothe financial statements.

Management is responsible for the preparation and fair presentation of these financial statements inaccordance with accounting principles generally accepted in the United States of America; thisincludes the design, implementation, and maintenance of internal control relevant to the preparationand fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Our responsibility is to express an opinion on these financial statements based on our audits. Weconducted our audits in accordance with auditing standards generally accepted in the United Statesof 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 audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements. The procedures selected depend on the auditor's judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal control relevant to the entity'spreparation and fair presentation of the financials statements in order to design audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonableness ofsignificant accounting estimates made by management, as well as evaluating the overallpresentation of the financial statements.

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

Opinion

Report on Supplemental Information

BiggsKofford, P.C.Colorado Springs, ColoradoNovember 4, 2014

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 2014 and 2013, 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 as listed in the table of contents are presented for purposes ofadditional analysis and are not a required part of the financial statements. Such information is theresponsibility 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 underlyingaccounting and other records used to prepare the financial statements or to the financial statementsthemselves, and other additional procedures in accordance with auditing standards generallyaccepted in the United States of America. In our opinion, the information is fairly stated in allmaterial respects in relation 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

2014 2013ASSETS

Cash and cash equivalents 245,913$ 1,666,391$ Accounts receivable 158,753 331,529 Contributions receivable, net 245,527 214,176 Investments 37,615,727 28,149,263 Investments - agency 1,123,416 1,017,844 Assets held in trust 7,953,475 - Inventory and prepaid expenses 196,819 175,800 Property and equipment, net 4,364,893 4,351,001 Other assets 378,493 483,558

Total assets 52,283,016$ 36,389,562$

LIABILITIES

Accounts payable and accrued expenses 240,004$ 274,976$ Agency deposits 1,123,416 1,017,844 Deferred revenue:

Life memberships 8,555,571 8,319,690 Royalties and dues 65,319 77,314

Other liabilities 266,550 192,387

Total liabilities 10,250,860 9,882,211

NET ASSETS

Unrestricted:Unrestricted - undesignated 8,046,761 5,072,653 Unrestricted - equity in property and equipment

and construction in progress 4,492,893 4,642,172Unrestricted - designated - AOG Reserve 1,393,058 1,054,045

Total unrestricted 13,932,712 10,768,870 Temporarily restricted 22,739,264 11,453,942 Permanently restricted 5,360,180 4,284,539

Total net assets 42,032,156 26,507,351

Total liabilities and net assets 52,283,016$ 36,389,562$

ASSOCIATION OF GRADUATES OF THE

STATEMENTS OF FINANCIAL POSITION30 JUNE 2014 AND 2013

UNITED STATES AIR FORCE ACADEMY

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 422,653$ 10,587,645$ 1,082,041$ 12,092,339$ Investment income 3,342,539 2,043,793 - 5,386,332 Membership dues 753,836 - - 753,836 Merchandising, net 214,723 - - 214,723 Publication and advertising 340,709 - - 340,709 Homecoming and reunions 258,715 - - 258,715 Royalties 465,389 - - 465,389 Other revenue 1,098,120 - - 1,098,120

6,896,684 12,631,438 1,082,041 20,610,163 NET ASSETS RELEASED

Satisfaction of restrictions 1,327,220 (1,327,220) - -

Total support and revenue 8,223,904 11,304,218 1,082,041 20,610,163

EXPENSES

Program services 3,978,292 - - 3,978,292 Support services:

Management and general 924,689 - - 924,689 Fund raising 174,587 - - 174,587

Total expenses 5,077,568 - - 5,077,568

OTHER INCOME

Recovery (provision) of uncollectible pledges, net 210 (1,600) (6,400) (7,790)

CHANGE IN NET ASSETS 3,146,546 11,302,618 1,075,641 15,524,805

RECLASSIFICATIONS 17,296 (17,296) - -

BEGINNING NET ASSETS 10,768,870 11,453,942 4,284,539 26,507,351

ENDING NET ASSETS 13,932,712$ 22,739,264$ 5,360,180$ 42,032,156$


STATEMENT OF ACTIVITIESYEAR ENDED 30 JUNE 2014


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

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Unrestricted Temporarily Restricted

Permanently Restricted Total

SUPPORT AND REVENUE

Contributions 160,334$ 2,845,372$ 140,707$ 3,146,413$ Investment loss 2,196,125 1,293,539 - 3,489,664 Membership dues 641,175 - - 641,175 Merchandising, net 124,366 - - 124,366 Publication and advertising 303,365 - - 303,365 Homecoming and reunions 218,013 - - 218,013 Royalties 395,294 - - 395,294 Other revenue 1,139,363 - - 1,139,363

5,178,035 4,138,911 140,707 9,457,653 NET ASSETS RELEASED

Satisfaction of restrictions 4,937,436 (4,937,417) (19) -

Total support and revenue 10,115,471 (798,506) 140,688 9,457,653

EXPENSES

Program services 7,285,389 - - 7,285,389 Support services:

Management and general 739,178 - - 739,178 Fund raising 179,142 - - 179,142

Total expenses 8,203,709 - - 8,203,709

OTHER INCOME

Recovery (provision) of uncollectible pledges, net 4,000 - - 4,000

CHANGE IN NET ASSETS 1,915,762 (798,506) 140,688 1,257,944

RECLASSIFICATIONS (5,250) 5,250 - -

BEGINNING NET ASSETS 8,858,358 12,247,198 4,143,851 25,249,407

ENDING NET ASSETS 10,768,870$ 11,453,942$ 4,284,539$ 26,507,351$


STATEMENT OF ACTIVITIESYEAR ENDED 30 JUNE 2013

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

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2014 2013CASH FLOWS FROM OPERATING ACTIVITIES

Change in net assets 15,524,805$ 1,257,944$ Adjustments to reconcile change in net assets to net cash provided by (used in) operating activities:

Non-cash (income) expenses:Depreciation 366,080 338,171 Unrealized gains on investments (4,992,740) (3,259,656)

Realized (gains) losses on investments (16,097) 157,339 Permanently restricted contributions (1,082,041) (140,707) Assets held in trust (7,595,868) - Changes in operating assets and liabilities:

Accounts receivable 172,776 (55,808) Contributions receivable, net 58,451 120,553Inventory and prepaid expenses (21,019) 36,562 Other assets 105,065 (315,077) Accounts payable and accrued expenses (34,972) 53,228 Deferred revenue:

Life memberships 235,881 462,868 Royalties and dues (11,995) 11,983

Other liabilities 74,163 58,886

Net cash provided by (used in) operating activities 2,782,489 (1,273,714)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of investments (4,941,896) (1,550,480) Proceeds from the sale of investments 126,662 3,183,182 Purchases of property and equipment (379,972) (121,691)

Net cash provided by (used in) investing activities (5,195,206) 1,511,011


STATEMENTS OF CASH FLOWSYEARS ENDED 30 JUNE 2014 AND 2013



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2014 2013CASH FLOWS FROM FINANCING ACTIVITIES

Receipt of permanently restricted contributions 992,239$ 3,309$

Net cash provided by financing activities 992,239 3,309

Net increase (decrease) in cash and cash equivalents (1,420,478) 240,606

Cash and cash equivalents, beginning of year 1,666,391 1,425,785

Cash and cash equivalents, end of year 245,913$ 1,666,391$

STATEMENTS OF CASH FLOWSYEARS ENDED 30 JUNE 2014 AND 2013



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1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


NOTES TO FINANCIAL STATEMENTS30 JUNE 2014 AND 2013


The Association of Graduates of the United States Air Force Academy ("Association" or "AOG")is an organization serving the youngest of the service academies and its graduates. TheAssociation is chartered to support the ideals, values, and heritage of the United States Air ForceAcademy ("Academy"); to encourage exceptional candidates to attend the Academy; toencourage and support fund raising for use in furthering the objectives of the Academy and theAssociation; to foster camaraderie; and to provide a wide variety of services to graduates, cadetsand their parents. The Association is an important conduit for the support that exists throughoutthe country for the Academy and its mission. It provides the "extra margin of excellence,"supporting worthy programs not supported by federal funds.

To ensure observance of any limitations or restrictions placed on the use of resources availableto the 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.

On 1 January 2014, the AOG entered into a Memorandum of Understanding (“2014 MOU”) andOperating Agreement ("Agreement") with the USAFA Endowment, Inc. (“Endowment”) toestablish a collaborative, comprehensive friendraising and fundraising process designed to raiseincreasing levels of charitable support for the Academy and to better serve the needs of thegraduate community. The 2014 MOU replaced the previous Memorandum of Understanding thatexpired on 31 December 2013. The 2014 MOU remains in effect for a minimum of four years. Inthe event that the Association and the Endowment do not enter into another Memorandum ofUnderstanding by 31 December 2017 the baseline and split of annual unrestricted Air ForceAcademy Annual Fund and Sabre Society contributions will be 21% to the Academy, 31% to theAOG, and 48% to the Endowment. All other conditions in the 2014 MOU remain in effect until anew MOU is negotiated. Either party may terminate the 2014 MOU with 60 days written notice.

See independent auditor's report.

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

Basis of accounting

Basis of presentation

A.

B.

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")for specific purposes. These funds are not subject to donor restrictions and may be expendedat the Board's discretion.

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

In connection with the 2014 MOU, effective 1 January 2014, the AOG and the Endowmententered into an Operating Support Contract (the “Contract”). The AOG will receive $92,688 peryear from the Endowment for services provided, to include rent of office space, furniture andequipment, data entry services, information technology support for hardware and softwaresystem and utilities. Payment is to be made in equal monthly installments, payable on or beforethe fifth business day each month. This agreement terminates on 31 December 2014.

The 2014 MOU also provides for a Joint Coordinating Committee ("JCC") comprised of six votingmembers, three members each from the respective Boards of Directors of the AOG and theEndowment. Additionally, the Academy's Superintendent will be invited to appoint an individualfrom the Academy senior staff to act as a non-voting advisor to the JCC. A Joint FinanceCommittee (the "JFC") has been established and will report directly to the JCC. The JFC iscomprised of the Treasurers of both Boards and the Chief Executive Officers and Chief FinancialOfficer/Controller of the AOG and the Endowment.

The financial statement presentation follows accounting principals generally accepted in theUnited States of America ("US GAAP"). Under US GAAP, the Association is required to reportinformation regarding its financial position and activities according to three classes of net assets:unrestricted net assets, temporarily restricted net assets and permanently restricted net assets.The various classes of net assets consist of the following fund groups:


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Basis of presentation (continued)

C.

D.

Use of estimates

Cash and cash equivalents

For purposes of the statements of cash flows, management considers all highly liquidinvestments with initial maturities of three months or less to be cash equivalents.

The preparation of financial statements in conformity with US GAAP requires management tomake estimates and assumptions that affect the reported balances of assets and liabilities anddisclosure of contingent assets and liabilities at the date of the financial statements and thereported amounts of revenues and expenses during the reporting period. Actual results coulddiffer from those estimates. The significant accounting estimates used in the preparation of theAssociation's financial statements relate to the provision for uncollectible pledges, estimateduseful lives of property and equipment, functional allocation of expenses to program and supportservices, and actuarial estimates used to ensure that the life membership funds are adequate tomeet related obligations.

Temporarily restricted net assets consist of those accounts for which contributions arerestricted by the donor. When a donor restriction expires, temporarily restricted net assets arereclassified to unrestricted net assets and reported in the statement of activities as net assetsreleased from restrictions. Donor-restricted contributions are recorded in the temporarilyrestricted class and then reclassified to the unrestricted class as the donor restrictions aremet. Included in this class 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.

The Association maintains its cash and cash equivalents in bank deposit accounts in which thedeposits are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000.Topic 825 of the FASB Accounting Standards Codification (“FASB ASC”), Financial Instruments,identifies these accounts as a concentration of credit risk requiring disclosure regardless of thedegree of risk. This risk is managed by maintaining deposits with high quality financialinstitutions. The Association does not anticipate nonperformance by these financial institutions.


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Accounts receivable

Contributions receivable

Investments

Investments - agency

Accounts receivable are stated at the balance that the Association expects to collect. TheAssociation performs periodic reviews of accounts receivable to determine collectability.Accounts are written off once management determines the balance to be uncollectible. As of 30June 2014 and 2013, management considers accounts receivable to be fully collectible.Accordingly, no allowance for doubtful accounts has been recorded.

Contributions receivable expected to be collected within one year are reported at their netrealizable value. Contributions receivable expected to be collected in future years are reported atthe present value of estimated future cash flows using a discount rate of 3.1% for the yearsended 30 June 2014 and 2013, respectively. The resulting discount is amortized and is reportedas contribution revenue as amortized.

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

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.

Investments in marketable securities with readily determinable fair market values are presentedat fair 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 andlosses are included in the change in net assets in the accompanying statements of activities.

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 asagency deposits.


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Assets held in trust

Inventory

Property and equipment

Other assets

Deferred revenue - life memberships

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

The Association is the beneficiary of a certain trust held and administered by the Association andconsists of equity investments and mutual funds. The estimated fair values of the trust assets arerecognized as assets and as contribution revenue when the Trust was established or whenreported to the Association. Subsequent changes to the fair values of the trust assets arerecognized as investment income.

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 of3 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.

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 overthe average life of participants in the program. Current life membership fees are treated asadditions to deferred revenue. The LMF fees are amortized over an assumed average lifeexpectancy of 55 years after graduation.

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.

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.


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Deferred revenue - royalties and dues

Contribution revenue

Donated goods and services

Expense allocation

Financial instruments

Contributions received are reported as unrestricted, temporarily restricted or permanentlyrestricted support depending on the existence or nature of any donor restrictions. Unconditionalpromises to give with due dates in excess of one year are reported at net present value. When arestriction expires (when a stipulated time restriction ends or purpose restriction is accomplished),temporarily restricted net assets are reclassified to unrestricted net assets and reported in thestatement of activities as net assets released from restrictions.

The Association's financial instruments consist of cash and cash equivalents, accountsreceivable, contributions receivable, investments, accounts payable and accrued expenses.Investments are stated at fair value and all other financial instruments approximate fair valuebased on their short-term nature.

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 havebeen allocated among programs and supporting services benefited based on management's

Donated marketable securities and noncash donations of property and equipment are recordedas contributions at estimated fair value at the date of donation. Donated services are reportedwhen those services create or enhance nonfinancial assets or require specialized skills providedby individuals possessing those skills and would typically be purchased if not provided bydonation. Donated goods and services are reflected as contributions in the accompanyingstatements of activities at their estimated values at the date of receipt. They are recorded asunrestricted support unless donor restrictions apply.

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


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Income taxes

Reclassifications

Subsequent events

Management evaluated subsequent events through the date of the attached independentauditor's report, the date these financial statements were issued. There were no materialsubsequent events that required recognition or additional disclosure in these financial statements.

The Association is organized as a not-for-profit entity in the state of Colorado. The InternalRevenue Service has determined that the Association is exempt from federal income tax underSection 501(c)(3) of the Internal Revenue Code. As a qualified tax-exempt organization, TheAssociation must operate in conformity with the Internal Revenue Code in order to maintain itstax-exempt status. The Association is also exempt from state corporate income tax.

The Association received advertising income during the years ended 30 June 2014 and 2013,which is considered unrelated business income. Due to offsetting expense items, no unrelatedbusiness income tax is due for the years ended 30 June 2014 or 2013.

The Association follows the guidance contained in ASC Topic 740-10-25, Accounting forUncertainty in Income Taxes . ASC Topic 740-10-25 prescribes a recognition threshold andmeasurement attribute for financial statement recognition and measurement of a tax positiontaken or expected to be taken. Based on its evaluation, The Association concluded that there areno uncertain tax positions that qualify for recognition or disclosure in the financial statements. Taxyears that remain subject to examination include 2010 through the current period.

Certain accounts in the prior year financial statements have been reclassified to conform with thecurrent year presentation.


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2. CONTRIBUTIONS RECEIVABLE

Contributions receivable consist of the following as of 30 June: 2014 2013

Unrestricted 21,720$ 43,869$ Restricted to program and support services 244,207 187,007

Gross contributions receivable 265,927 230,876 Unamortized discount (10,900) (10,200)

Discounted contributions receivable 255,027 220,676 Allowance for uncollectible pledges (9,500) (6,500)

Contributions receivable, net 245,527$ 214,176$

Amounts due in:Less than one year 80,129$ 76,728$ One to five years 165,398 137,448

Total contributions receivable 245,527$ 214,176$

3. INVESTMENTS

Investments consist of the following at 30 June 2014:Unrealized Fair

Cost Gain (Loss) Value

Mutual funds - equity 14,907,975$ 7,658,266$ 22,566,241$ Mutual funds - fixed income 10,479,431 139,691 10,619,122 Limited partnerships 5,760,031 (206,251) 5,553,780

Total investments 31,147,437$ 7,591,706$ 38,739,143$


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3. INVESTMENTS (CONTINUED)

Investment income consists of the following for the year ended 30 June 2014:

Temporarily AgencyUnrestricted Restricted Total Deposits

Interest and dividends 265,287$ 119,000$ 384,287$ 10,277$ Realized gains, net 11,782 4,315 16,097 2,041 Investment fees (4,473) (2,319) (6,792) (199)

Investment income 272,596 120,996 393,592 12,119

Unrealized gains, net 3,069,943 1,922,797 4,992,740 133,641

Total investment return 3,342,539$ 2,043,793$ 5,386,332$ 145,760$

Investments consist of the following at 30 June 2013:

Unrealized FairCost Gain (Loss) Value

Mutual funds - equity 14,669,129$ 3,261,684$ 17,930,813$ Mutual funds - fixed income 5,797,160 55,497 5,852,657 Limited partnerships 5,902,941 (519,304) 5,383,637

Total investments 26,369,230$ 2,797,877$ 29,167,107$

Investment income consists of the following for the year ended 30 June 2013:

Temporarily AgencyUnrestricted Restricted Total Deposits

Interest and dividends 267,687$ 138,196$ 405,883$ 16,083$ Realized losses, net (77,114) (80,225) (157,339) 8,236 Investment fees (11,975) (6,561) (18,536) (1,199)

Investment income 178,598 51,410 230,008 23,120 Unrealized gains (losses) 2,017,527 1,242,129 3,259,656 161,948

Total investment return 2,196,125$ 1,293,539$ 3,489,664$ 185,068$


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3. INVESTMENTS (CONTINUED)

4. CHANGES IN AGENCY DEPOSITS

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

2014 2013

Beginning balance 1,017,844$ 1,988,111

Additions:Revenue 522,920 588,488Earnings 145,760 185,068

668,680 773,556 Deductions:

Expenditures 563,108 1,743,823

Ending balance 1,123,416$ 1,017,844$

5. PROPERTY AND EQUIPMENT

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

EstimatedUseful Lives 2014 2013

Buildings and improvements 31.5 years 8,215,843$ 8,194,348$ Equipment 3 - 7 years 2,165,622 1,807,146

10,381,465 10,001,494 Less accumulated depreciation (6,016,572) (5,650,493)

Net property and equipment 4,364,893$ 4,351,001$

Depreciation expense for the years ended 30 June 2014 and 2013, was $366,080 and $338,171,respectively.

Included in total investments, are investments of $240,231 and $398,910 that were in liquidationas of 30 June 2014 and 2013, respectively. Final liquidation of these investments is expected nolater than 2016. Accordingly, these amounts may not be readily redeemable for cash and maynot be fully recoverable.


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6. CHANGES IN DEFERRED REVENUE - LIFE MEMBERSHIP FUNDS

LifeLife Membership Corporate

Memberships at Graduation Memberships Total

Beginning balance 7,399,972$ 845,805$ 73,913$ 8,319,690$

Additions:Fees from new members 189,383 250,115 - 439,498

Deductions:Transfers to operations (203,617) - - (203,617)

Transfers 280,769 (280,769) - -

Ending balance 7,666,507$ 815,151$ 73,913$ 8,555,571$

LifeLife Membership Corporate

Memberships at Graduation Memberships Total

Beginning balance 7,024,862$ 758,046$ 73,913$ 7,856,821$

Additions:Fees from new members 242,249 418,751 - 661,000

Deductions:Transfers to operations (198,131) - - (198,131)

Transfers 330,992 (330,992) - -

Ending balance 7,399,972$ 845,805$ 73,913$ 8,319,690$

Changes in deferred revenue - life membership funds for the year ended 30 June 2013 were asfollows:

Changes in deferred revenue - life membership funds for the year ended 30 June 2014 were asfollows:


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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 assetsor liabilities; quoted prices in markets that are not active; or other inputs that are observable orcan be 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 valuation methodologies used for assets measured at fair value are as follows:

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 notbe indicative of net realizable value or reflective of future fair values. Furthermore, although theAssociation's management believes its valuation methods are appropriate and consistent withother market participants, the use of different methodologies or assumptions to determine the fairvalue of certain financial instruments could result in different fair value measurements at thereporting date. There have been no changes in the methodologies used between 30 June 2014and 2013.

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 certainpercentage of the book value of the partnerships, these securities are classified within Level 3of the valuation hierarchy.


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7. FAIR VALUE OF ASSETS AND LIABILITIES (CONTINUED)

Level 1 Level 2 Level 3 Total

Mutual funds 33,185,363$ -$ -$ 33,185,363$ Partnership interests - - 5,553,780 5,553,780 Assets held in trust 7,953,475 - - 7,953,475

Total 41,138,838$ -$ 5,553,780$ 46,692,618$

Level 1 Level 2 Level 3 Total

Mutual funds 23,783,470$ -$ -$ 23,783,470$ Partnership interests - - 5,383,637 5,383,637

Total 23,783,470$ -$ 5,383,637$ 29,167,107$

2014 2013

Balance, beginning of the year 5,383,637$ 5,283,395$

Disposal of partnership interests (36,108) (260,797) Unrealized gains (losses) recognized 206,251 361,039

Balance, end of the year 5,553,780$ 5,383,637$

2014

2013

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

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:


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8. OPERATING LEASE

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

YEARS ENDING30 JUNE

2015 27,315$ 2016 22,395 2017 7,635 2018 7,635 2019 5,090

Total 70,068$

9. UNRESTRICTED-DESIGNATED NET ASSETS

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

2014 2013Board designated:

AOG Reserve 1,393,058$ 1,054,045$

10. TEMPORARILY RESTRICTED NET ASSETS

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

2014 2013Available for expenditure for the following purposes:

Program and support services 22,175,532$ 10,990,110$ Building maintenance and improvements 542,811 423,063

Time - unrestricted pledges receivable 20,921 40,769

Total temporarily restricted net assets 22,739,264$ 11,453,942$

The Board of Directors of AOG has targeted growth of the AOG Reserve to not less than$1,500,000 by 30 June 2015.

The Association leases office equipment under operating lease agreements for amounts rangingfrom $636 to $1,640 per month from unrelated parties. These agreements expire on variousdates through 7 February 2019. Lease expense under these lease agreements totaled $19,659and $20,055, respectively, for the years ended 30 June 2014 and 2013.


22




11. PERMANENTLY RESTRICTED NET ASSETS

2014 2013

Program and support services 3,572,374$ 2,496,733$ Building and maintenance 1,787,806 1,787,806

Total permanently restricted net assets 5,360,180$ 4,284,539$

12. ENDOWMENTS

Interpretation of current law

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-restricted endowment funds, absent explicit donor stipulations to the contrary. As a result of thisinterpretation, the Association classifies as permanently restricted net assets (a) the originalvalue of gifts donated to the permanent endowment, (b) the original value of subsequent gifts tothe permanent endowment and (c) accumulations to the permanent endowment made inaccordance with the direction of the applicable donor gift instrument at the time the accumulationis added to the fund. The remaining portion of the donor-restricted endowment fund that is notclassified in permanently restricted net assets is classified as temporarily restricted net assetsuntil those amounts are appropriated for expenditure by the organization in a manner consistentwith the standard of prudence prescribed by UPMIFA.

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.


23




12. ENDOWMENTS (CONTINUED)

Interpretation of current law (continued)

Endowment net assets consisted of the following at 30 June 2014:

Temporarily PermanentlyRestricted Restricted Total

Donor-restricted 1,792,773$ 5,360,180$ 7,152,953$

Changes in endowment assets consist of the following for the year ended 30 June 2014:


Beginning of the year 1,232,720$ 4,284,539$ 5,517,259$

Investment returns:Interest and dividends 61,700 - 61,700 Realized and unrealized losses 800,800 - 800,800

Contributions - 1,082,041 1,082,041

Payouts (302,447) (6,400) (308,847)

End of the year 1,792,773$ 5,360,180$ 7,152,953$

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

(2) The purposes of the Association and the donor-restricted endowment fund (1) The duration and preservation of the fund

(3) General economic conditions

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

(4) The possible effect of inflation and deflation

(7) The investment policies of the Association


24





Endowment net assets consisted of the following at 30 June 2013:


Donor-restricted 1,232,720$ 4,284,539$ 5,517,259$

Changes in endowment assets consist of the following for the year ended 30 June 2013:


Beginning of the year 824,102$ 4,143,851$ 4,967,953$

Investment returns:Interest and dividends 69,211 - 69,211 Realized and unrealized gains 579,385 - 579,385

Contributions - 140,707 140,707

Payouts (239,978) (19) (239,997)

End of the year 1,232,720$ 4,284,539$ 5,517,259$

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 afund of perpetual duration. In accordance with US GAAP, there were no deficiencies of thisnature that are reported as of 30 June 2014 and 2013.


25





Return objectives and risk parameters

Strategies employed for achieving objectives

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

To satisfy its long-term rate-of-return objectives, the Association relies on a total return strategyin which investment returns are achieved through both capital appreciation (realized andunrealized) and current yield (interest and dividends). The Association targets a diversified assetallocation that places a greater emphasis on equity-based investments to achieve its long-termreturn objectives within prudent risk constraints.

The Association has adopted investment and spending policies for endowment assets thatattempt to provide a predictable stream of funding to programs supported by its endowment whileseeking to maintain the original fair value of the endowment assets, absent explicit donorstipulations to the contrary. Endowment assets include those assets of donor-restricted funds thatthe organization must hold in perpetuity or for a donor-specified period(s) as well as board-designated funds. Under this policy, as approved by the Board, the endowment assets areinvested in a manner that is intended to produce results that exceed the price and yield results ofspecific indices for each type of security while assuming a moderate level of investment risk. TheAssociation expects its endowment funds to beat each benchmark as measured over a three tofive year horizon. There are no specific tracking error constraints. Actual returns in any given yearmay vary from this expectation.

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.


26




13. MERCHANDISING

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

2014 2013

Merchandising revenue 588,604$ 460,977$ Merchandising costs (373,881) (336,611)

Merchandising revenue, net 214,723$ 124,366$

14. EXPENSES - PROGRAM SERVICES

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

2014 2013

Academy and other services 1,908,342$ 5,395,032$ Cost of publications 1,064,297 975,147 Member services 292,966 239,147 Special events and chapter support 409,678 405,620 Reunions 200,887 189,940 Special functions 69,308 49,340 Career opportunities 32,814 31,163

Total expenses - program services 3,978,292$ 7,285,389$

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 tothe Plan. The Plan provides for full vesting of matching and discretionary contributions after sixyears of service. The Association made contributions of $66,931 and $68,741 for the yearsended 30 June 2014 and 2013, respectively.


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15. EMPLOYEE RETIREMENT PLAN (CONTINUED)

16. SIGNIFICANT ESTIMATES AND CONCENTRATIONS

Contribution revenues

Credit risk

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 $3,965 and $11,375 for the yearsended 30 June 2014 and 2013, respectively.

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

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 theamount of credit exposure to any one entity or in any one industry.

********

During the years ended 30 June 2014 and 2013, the Association received approximately 84%and 86%, respectively, of the total contributions from three and one donor, respectively.


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THIS PAGE INTENTIONALLY LEFT BLANK

SUPPLEMENTAL INFORMATION

Beginningbalance

Campaign Fund:

Academics 73,040$ Jannetta - War, Literature & Art 220 Academic Research 1,600 Center for Space and Defense Policy 180 Athletics 95,106 Hall of Excellence Display 27,225 Character 90,087 Leadership 5,538 Cadet Clubs 5,700

Air Force Academy Fund for Cadet Emergencies 14,119 Nutter Scholarship Fund 221,347 Superintendent's Discretionary Fund 59,977 Superintendent's Other Discretionary Fund 2,532,222 Humanitarian / Terminally Ill Graduates 35,741 Wings of Blue Fund 1,520 Lacrosse Fund 8,594 Men's Rugby Fund 2,663 DFAS (Astronautics Department) 113,924 DFEM (Mechanical Engineering Department) 520 Wing Open Boxing 1,368 Comprehensive Campaign Fund for the Superintendent 52,981 Roth Fund for the Department of Management 2 Friends of Basketball 122,325 Tony M. Johnson Math Teaching Award 3,348 William Stern Memorial Benches Fund 100 Olmsted Foundation - Cultural Immerse 1,994 Olmsted Foundation - ROTC Cultural Immerse 34,402 Olmsted Foundation - Historical Symposium and Academy Assembly 500 Fencing 5,786 Zoomie Rugby Football Club 700 Academics General - License Plates 31,975 AOG SEA Plaques and Memorials - Unspecified donor restricted funds 1,406 Assets held in trust - Bennett Trust - Class of '60 Class Gift 468

Carried forward 3,546,678$

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

YEAR ENDED 30 JUNE 2014NON-ENDOWMENT


31

Total support Expenditures EndingContributions Revenue and revenue and releases Reclassification balance

-$ -$ -$ -$ -$ 73,040$ - - - - - 220 - - - 1,600 - - - - - - - 180 - - - 9,500 - 85,606 - - - - - 27,225 - - - 10,000 - 80,087 - - - 2,000 - 3,538 - - - 4,400 - 1,300 - - - - (14,119) -

12,648 - 12,648 16,000 - 217,995 53,273 - 53,273 83,877 - 29,373

2,610,377 - 2,610,377 308,000 - 4,834,599 - - - - (35,741) - - - - - - 1,520 - - - - - 8,594 800 - 800 2,415 - 1,048

9,457 - 9,457 - 2,114 125,495 - - - - - 520 - - - - - 1,368 - - - - - 52,981 - - - - - 2

28,795 - 28,795 25,173 - 125,947 - - - 60 - 3,288 - - - - - 100 - - - 1,994 - - - - - - - 34,402 - - - - - 500 - - - - - 5,786 - - - 700 - -

2,300 - 2,300 59 - 34,216 35,935 - 35,935 25,475 27,000 37,460

- - - (100) - 1,506 7,595,868 357,607 7,953,475 - - 7,953,475

1,000 - 1,000 34 - 1,434

10,350,453$ 357,607$ 10,708,060$ 491,187$ (20,746)$ 13,742,805$


32

Beginningbalance



Balance forward 3,546,678$

Class of '61 Class Gift 2,951 Class of '62 Class Gift 14,530 Class of '63 Class Gift 1,185 Class of '64 Class Gift 84,748 Class of '65 Class Gift 378 Class of '66 Class Gift 134,719 Class of '67 Class Gift 2,618 Class of '68 Class Gift 21,713 Class of '69 Class Gift 5,879 Class of '70 Class Gift 37,951 Class of '71 Class Gift 28,461 Class of '72 Class Gift 5,921 Class of '73 Class Gift 210,605 Class of '74 Class Gift 57,911 Class of '75 Class Gift 73,860 Class of '76 Class Gift 13,274 Class of '77 Class Gift 10,506 Class of '78 Class Gift 8,053 Class of '80 Class Gift 50 Class of '81 Class Gift 69,762 Class of '82 Class Gift 138,884 Class of '83 Class Gift 1,837 Class of '84 Class Gift 16,723 Class of '85 Class Gift 20,732 Class of '87 Class Gift 1,564 Class of '88 Class Gift 14,753 Class of '89 Class Gift 5,159 Class of '90 Class Gift 20,195 Class of '91 Class Gift 101,251 Class of '92 Class Gift 92,702 Class of '94 Class Gift 1,000 Class of '95 Class Gift 163 Class of '96 Class Gift 850 Class of '02 Class Gift 51 Class of '10 Class Gift 89,745

Carried forward 4,837,362$


33


10,350,453$ 357,607$ 10,708,060$ 491,187$ (20,746)$ 13,742,805$

(250) - (250) 18 - 2,683 - - - 107 - 14,423 319 - 319 - - 1,504 - - - 7,101 - 77,647 - - - - - 378 - - - (69) - 134,788 500 - 500 (34) - 3,152

5 - 5 33 - 21,685 - - - - - 5,879

165,405 - 165,405 133,226 - 70,130 - - - - - 28,461 - - - - - 5,921 475 - 475 50,790 - 160,290 - - - 76 - 57,835 912 - 912 (3,238) - 78,010 - - - (200) - 13,474 - - - - - 10,506 - - - - - 8,053 - - - (96) - 146

1,000 - 1,000 (100) - 70,862 - - - - - 138,884 - - - - - 1,837 30 - 30 - - 16,753

- - - - - 20,732 - - - (100) - 1,664 - - - - - 14,753 - - - 6 - 5,153 - - - - - 20,195 698 - 698 - - 101,949 - - - - - 92,702 100 - 100 - - 1,100 - - - - - 163 - - - - - 850 - - - - - 51

26,898 - 26,898 - - 116,643

10,546,545$ 357,607$ 10,904,152$ 678,707$ (20,746)$ 15,042,061$


34

Beginningbalance



Balance forward 4,837,362$

Quasi-endowments:Visiting Lecturer - Systems Engineering 606,618 McConn Scholarship 1,267,249 Academic Research 43,510 Defense Policy 21,926 Falcon Foundation 219,777 Falcon Foundation - Ackerman 424,462 Admissions 50,017 Football 51,653 LaCrosse and Fencing 15,959 Warrior Remembrance 531,920 Storyteller Exhibit Maintenance Endowment 44,459 Falcon Heritage Forum 291 Falcon Heritage Forum Keynote Speaker 89,352 Falcon Heritage Forum Travel 44,925 Class of '65 Endowment 110,261 Character - Legasey 168,861 Character - Schlossberg 254,402 Character - Moore 56,204 Character - West 149,273 ACES Program 44,191 Honor Education - Class of '75 307,226 Roslyn Schulte Character/Leadership 66,289 Class of '80 Excellence in Ethics 139,281 Joseph D. Helton Memorial Award 5,766 O'Malley Award 25,182 Character - AOG 126,942 Class of '80 Oral History/Cadet CLD Fund 189,977 Chuck Bush Memorial Fund 5,473 Friends of Boxing 75,987 AOG Classs of 2023 Legacy Program - CGA - Coleman 16,133 AOG Heritage Preservation Fund 199,625

Discount on temporarily and permanently restricted pledges receivable (10,100) Time restricted unrestricted pledges receivable 40,769

Total 10,221,222$


35


10,546,545$ 357,607$ 10,904,152$ 678,707$ (20,746)$ 15,042,061$

- 94,319 94,319 26,274 - 674,663 - 190,842 190,842 137,977 - 1,320,114 - 6,855 6,855 370 - 49,995 - 3,384 3,384 930 - 24,380 - 33,584 33,584 9,604 - 243,757 - 64,886 64,886 18,342 - 471,006 - 7,715 7,715 2,161 - 55,571 - 8,138 8,138 439 - 59,352 - 2,514 2,514 136 - 18,337 - 81,248 81,248 38,500 - 574,668 - 7,005 7,005 378 - 51,086 - 46 46 2 - 335 - 13,662 13,662 3,834 - 99,180 - 6,870 6,870 1,919 - 49,876 - 17,371 17,371 938 - 126,694 - 25,814 25,814 7,287 - 187,388 - 38,897 38,897 10,940 - 282,359 - 8,594 8,594 2,412 - 62,386 - 22,822 22,822 6,426 - 165,669 - 6,762 6,762 1,863 - 49,090 - 47,836 47,836 13,279 - 341,783 - 10,280 10,280 3,325 - 73,244 - 21,409 21,409 10,200 - 150,490 - 908 908 53 - 6,621 - 3,968 3,968 214 - 28,936 - 19,411 19,411 5,443 - 140,910 - 29,469 29,469 10,290 - 209,156 - 862 862 47 - 6,288

1,800 9,650 11,450 647 - 86,790 40,000 2,364 42,364 - - 42,364

- 4,822 4,822 - - 20,955 100 31,379 31,479 13,588 3,450 220,966

(800) - (800) - - (10,900) - - - 19,848 - 20,921

10,587,645$ 1,181,293$ 11,768,938$ 1,026,373$ (17,296)$ 20,946,491$


36

Beginningbalance

General Ira C. Eaker Endowment for Defense Policy Lecture Series 24,502$ Frank E. & H. E. Hedrick Endowment for Cadet and Faculty Enrichment 57,192 Dr. Henry Kissinger Endowment for National Security Studies 9,898 John K. Gerhart Scholarship for French Study 102,952 Donald R. Backlund Endowment for USAFA Military Symposium 4,863 Roger Stringer Award for Outstanding Cadet in Intercollegiate Speech 6,395 Henry S. Walker Endowment for POW Museum 21,396 Col. Franklin C. Wolfe Humanities Scholarship 11,479 WWI Overseas Flyers - American Aviation in WWI 26,788 Cadet Leadership Enrichment 131,337 A.J. Mione Cadet Award for Outstanding Physics Research 9,877 Graduate Dependent Scholarship 21,580 Joseph A. Reich, Sr. Lecture Series 23,995 305th Bombardment Group Memorial Association - Leadership Education 46,382 Richard Lawson - Award for Outstanding Cadet in Communications 49,151 Jerry C. Lindh - Cadet Honor Awards 5,537 Ross A. LaTorra - Men's Rugby 2,989 Computer Science Department Awards 1,984 Warren Sneed - Wings of Blue Jump Team 9,069 General Kenneth L. Tallman - Liaison Officer Service Awards 492 General & Mrs. L.I. Davis - Astronautics Community Projects 14,592 Graduate and Non-Graduate Awards 22,193 Laura A. Piper - Squadron Award 1,730 Class of '62 - Academy and AOG Projects 12,965 Robert B. Spear - Men's Basketball Player Award 5,989 William R. Grace - Maintenance of the Sand Volleyball Court 11,722 William F. Goodner - Biology Teaching Excellence 4,600 Pace Weber - Outstanding Men's Lacrosse Player Award 2,394 Kenneth Thiele - Graduate History Scholarship 8,392 William Heiser - Senior Faculty Teaching Award 5,677 Q.C. Snyder - Management Department Support 790 Richard Buschmann - Graduate Dependent Scholarship 3,198 Class of '74 - Award for Character Development 6,094 Class of '59 - NCLS Keynote Speaker 28,567 Cadet Chapel 3,176 Tober Family - Astronautics Programs 75,147 Peter Brown - Summer Research Institute 5,594 Harold Gilbert Character/Leadership Endowment 24,601 Building Operations and Maintenance 423,063 Long Blue Line Endowment 4,378

Total 1,232,720$

YEAR ENDED 30 JUNE 2014


RESTRICTED ENDOWMENT


37


-$ 14,274$ 14,274$ 3,955$ -$ 34,821$ - 32,199 32,199 8,966 - 80,425 - 4,720 4,720 255 - 14,363 - 59,892 59,892 4,480 - 158,364 - 2,613 2,613 141 - 7,335 - 2,809 2,809 725 - 8,479 - 5,529 5,529 298 - 26,627 - 8,484 8,484 2,352 - 17,611 - 6,419 6,419 349 - 32,858 - 85,421 85,421 4,610 - 212,148 - 4,616 4,616 316 - 14,177 - 26,181 26,181 6,986 - 40,775 - 17,719 17,719 4,950 - 36,764 - 16,676 16,676 929 - 62,129 - 41,135 41,135 12,068 - 78,218 - 2,274 2,274 123 - 7,688 - 2,133 2,133 590 - 4,532 - 1,617 1,617 387 - 3,214 - 5,612 5,612 2,107 - 12,574 - 1,759 1,759 750 - 1,501 - 7,396 7,396 2,046 - 19,942 - 12,424 12,424 2,812 - 31,805 - 625 625 34 - 2,321 - 5,775 5,775 1,608 - 17,132 - 2,287 2,287 168 - 8,108 - 4,668 4,668 254 - 16,136 - 2,258 2,258 322 - 6,536 - 1,145 1,145 202 - 3,337 - 3,465 3,465 336 - 11,521 - 3,991 3,991 1,134 - 8,534 - 542 542 154 - 1,178 - 2,127 2,127 613 - 4,712 - 4,297 4,297 1,177 - 9,214 - 19,811 19,811 5,564 - 42,814 - 2,033 2,033 558 - 4,651 - 48,855 48,855 13,533 - 110,469 - 3,244 3,244 175 - 8,663 - 23,464 23,464 1,266 - 46,799 - 334,899 334,899 215,151 - 542,811 - 37,112 37,112 3 - 41,487

-$ 862,500$ 862,500$ 302,447$ -$ 1,792,773$


38

General Ira C. Eaker Endowment for Defense Policy Lecture SeriesFrank E. & H. E. Hedrick Endowment for Cadet and Faculty EnrichmentDr. Henry Kissinger Endowment for National Security StudiesJohn K. Gerhart Scholarship for French StudyDonald R. Backlund Endowment for USAFA Military SymposiumRoger Stringer Award for Outstanding Cadet in Intercollegiate SpeechHenry S. Walker Endowment for POW MuseumCol. Franklin C. Wolfe Humanities ScholarshipWWI Overseas Flyers - American Aviation in WWICadet Leadership EnrichmentA.J. Mione Cadet Award for Outstanding Physics ResearchGraduate Dependent ScholarshipJoseph A. Reich, Sr. Lecture Series305th Bombardment Group Memorial Association - Leadership EducationRichard Lawson - Award for Outstanding Cadet in CommunicationsJerry C. Lindh - Cadet Honor AwardsRoss A. LaTorra - Men's RugbyComputer Science Department AwardsWarren Sneed - Wings of Blue Jump TeamGeneral Kenneth L. Tallman - Liaison Officer Service AwardsGeneral & Mrs. L.I. Davis - Astronautics Community ProjectsGraduate and Non-Graduate AwardsLaura A. Piper - Squadron AwardClass of '62 - Academy and AOG ProjectsRobert B. Spear - Men's Basketball Player AwardWilliam R. Grace - Maintenance of the Sand Volleyball CourtWilliam F. Goodner - Biology Teaching ExcellencePace Weber - Outstanding Men's Lacrosse Player AwardKenneth Thiele - Graduate History ScholarshipWilliam Heiser - Senior Faculty Teaching AwardQ.C. Snyder - Management Department SupportRichard Buschmann - Graduate Dependent ScholarshipClass of '74 - Award for Character DevelopmentClass of '59 - NCLS Keynote SpeakerCadet ChapelTober Family - Astronautics ProgramsPeter Brown EndowmentHarold Gilbert Character/Leadership EndowmentBuilding Operations and MaintenanceLong Blue Line Endowment

Total

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

YEAR ENDED 30 JUNE 2014


39

Beginning Endingbalance Contributions Expenses Reclassification Balance

67,168$ -$ -$ -$ 67,168$ 151,524 - - - 151,524 20,058 - - - 20,058

278,158 - - - 278,158 11,725 - - - 11,725 11,550 - - - 11,550 13,695 - - - 13,695 43,511 - - - 43,511 13,957 - - - 13,957

410,853 - - - 410,853 19,435 - - - 19,435

143,782 1,999 - - 145,781 91,557 - - - 91,557 52,438 22,582 - - 75,020

217,500 500 - - 218,000 8,898 - - - 8,898

10,953 - - - 10,953 8,338 - - - 8,338

27,142 100 - - 27,242 13,308 200 - - 13,508 32,676 - - - 32,676 57,084 - - - 57,084 2,235 - - - 2,235

24,470 - - - 24,470 8,535 - - - 8,535

17,741 500 - - 18,241 9,805 - - - 9,805 4,900 - - - 4,900

13,628 - - - 13,628 20,000 - - - 20,000 2,700 - - - 2,700

10,345 - - - 10,345 21,500 - - - 21,500

101,000 - - - 101,000 10,000 - - - 10,000

238,615 - - - 238,615 15,000 - - - 15,000

124,328 - - - 124,328 1,787,806 - - - 1,787,806

166,621 1,056,160 6,400 - 1,216,381

4,284,539$ 1,082,041$ 6,400$ -$ 5,360,180$


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