THE RICHARD STOCKTON COLLEGE OF NEW JERSEY FOUNDATION (A COMPONENT UNIT OF THE RICHARD STOCKTON COLLEGE OF NEW JERSEY) FINANCIAL STATEMENTS

(A COMPONENT UNIT OF THE RICHARD STOCKTON COLLEGE OF NEW JERSEY) FINANCIAL STATEMENTS YEARS ENDED

TABLE OF CONTENTS YEARS ENDED INDEPENDENT AUDITORS REPORT 1 FINANCIAL STATEMENTS STATEMENTS OF FINANCIAL POSITION 3 STATEMENTS OF ACTIVITIES 4 STATEMENTS OF CASH FLOWS 6 7

CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS REPORT Board of Directors The Richard Stockton College of New Jersey Foundation (A Component Unit of The Richard Stockton College of New Jersey) We have audited the accompanying financial statements of The Richard Stockton College of New Jersey Foundation (the Foundation ), a Component Unit of The Richard Stockton College of New Jersey, which comprise the statement of financial position as of June 30, 2014, and the related statements of activities and cash flows for the year then ended, and the related notes to the financial statements. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. An independent member of Nexia International (1)

Board of Directors The Richard Stockton College of New Jersey Foundation (A Component Unit of The Richard Stockton College of New Jersey) Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The Richard Stockton College of New Jersey Foundation as of June 30, 2014, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matter The financial statements of The Richard Stockton College of New Jersey Foundation as of June 30, 2013 were audited by other auditors whose report dated November 1, 2013 expressed an unmodified opinion on those statements. CliftonLarsonAllen LLP Plymouth Meeting, Pennsylvania October 31, 2014 (2)

STATEMENTS OF FINANCIAL POSITION ASSETS 2014 2013 Cash and Cash Equivalents $ 90,813 $ 148,805 Contributions Receivable 85,279 10,682 Due from College 16,109 2,993 Pledges Receivable (Less Allowance of $130,182 in 2014 and $308,099 in 2013 994,890 1,206,123 Other Receivables 7,414 8,184 Investments, at Fair Value 26,847,149 23,109,188 Capital Assets, Net 579 2,894 Other Assets 1,173 2,068 Total Assets $ 28,043,406 $ 24,490,937 LIABILITIES AND NET ASSETS LIABILITIES Accounts Payable and Accrued Expenses $ 19,901 $ 13,408 Due to College 96,577 18,791 Total Liabilities 116,478 32,199 NET ASSETS Unrestricted: Designated by the Board for "General Scholarship" Endowment" Purposes 2,025,182 1,788,902 Undesignated 251,956 273,267 Total Unrestricted 2,277,138 2,062,169 Temporarily Restricted 8,582,945 5,978,943 Permanently Restricted 17,066,845 16,417,626 Total Net Assets 27,926,928 24,458,738 Total Liabilities and Net Assets $ 28,043,406 $ 24,490,937 See accompanying Notes to Financial Statements. (3)

STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2014 Temporarily Permanently Unrestricted Restricted Restricted Total REVENUES Contributions $ 19,790 $ 444,979 $ 465,782 $ 930,551 Special Events: Revenues 157,123 370,720 145,765 673,608 In Kind Contributions (Special Events) 10,436 40,815 51,251 Direct Expenses (82,608) (82,608) Special Events, Net 167,559 328,927 145,765 642,251 In Kind Contributions 264,008 264,008 Net Realized and Unrealized Gains on Investments 281,552 2,867,511 29,048 3,178,111 Investment Income, Net 42,259 469,984 8,624 520,867 Net Assets Released from Restrictions: Scholarships 461,252 (461,252) Program Expenses 1,046,147 (1,046,147) Total Revenues 2,282,567 2,604,002 649,219 5,535,788 EXPENSES Program: Scholarships and Awards 520,752 520,752 Academic Support 325,448 325,448 Facilities Support 383,924 383,924 Other Direct Support 46,788 46,788 Faculty Support 30,201 30,201 Supporting: Official Representation 20,463 20,463 General and Administrative 58,735 58,735 Depreciation 2,315 2,315 Fundraising 360,128 360,128 Loss on Uncollectible Pledges 3,585 3,585 In Kind Expense 315,259 315,259 Total Expenses 2,067,598 2,067,598 INCREASE IN NET ASSETS 214,969 2,604,002 649,219 3,468,190 Net Assets Beginning of Year 2,062,169 5,978,943 16,417,626 24,458,738 NET ASSETS END OF YEAR $ 2,277,138 $ 8,582,945 $ 17,066,845 $ 27,926,928 See accompanying Notes to Financial Statements. (4)

STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2013 Temporarily Permanently Unrestricted Restricted Restricted Total REVENUES Contributions $ 31,803 $ 714,241 $ 461,718 $ 1,207,762 Special Events: Revenues 140,433 150,080 363,509 654,022 In Kind Contributions (Special Events) 139,195 139,195 Direct Expenses (102,241) (102,241) Special Events, Net 140,433 187,034 363,509 690,976 In Kind Contributions 199,014 199,014 Net Realized and Unrealized Gains on Investments 165,958 1,681,072 24,861 1,871,891 Investment Income, Net 35,346 380,585 9,594 425,525 Net Assets Released from Restrictions: Scholarships 327,165 (327,165) Program Expenses 953,994 (953,994) Total Revenues 1,853,713 1,681,773 859,682 4,395,168 EXPENSES Program: Scholarships and Awards 396,265 396,265 Academic Support 381,157 381,157 Facilities Support 322,533 322,533 Other Direct Support 17,408 17,408 Faculty Support 11,474 11,474 Supporting: Official Representation 24,828 24,828 General and Administrative 61,941 61,941 Depreciation 2,315 2,315 Fundraising 204,342 204,342 Loss on Uncollectible Pledges 1,354 54,246 242,602 298,202 In Kind Expense 338,209 338,209 Total Expenses 1,761,826 54,246 242,602 2,058,674 INCREASE IN NET ASSETS 91,887 1,627,527 617,080 2,336,494 Net Assets Beginning of Year 1,970,282 4,351,416 15,800,546 22,122,244 NET ASSETS END OF YEAR $ 2,062,169 $ 5,978,943 $ 16,417,626 $ 24,458,738 See accompanying Notes to Financial Statements. (5)

STATEMENTS OF CASH FLOWS YEARS ENDED 2014 2013 CASH FLOWS FROM OPERATING ACTIVITIES Increase in Net Assets $ 3,468,190 $ 2,336,494 Adjustments to Reconcile Increase in Net Assets to Net Cash Used by Operating Activities: Depreciation Expense 2,315 2,315 Loss on Uncollectible Pledges (3,191) 298,202 Contributions Restricted for Investment in Endowment (611,547) (825,227) Net Realized and Unrealized Gain on Investments (3,178,111) (1,871,892) Effect of Changes in Operating Assets and Liabilities: Other Assets 895 (1,169) Contributions Receivable (74,597) 18,220 Due from college/component unit (13,116) (1,140) Pledges Receivable 214,425 48,377 Other Receivables 770 12,070 Accounts Payable and Accrued Expenses 6,493 (20,817) Due to college/component unit 77,786 (6,453) Net Cash Used in Operating Activities (109,688) (11,020) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds on Sales of Investments 2,053,002 4,661,007 Purchases of Investments (2,612,853) (5,398,932) Net Cash Used in Investing Activities (559,851) (737,925) CASH FLOWS FROM FINANCING ACTIVITIES Contributions Restricted for Investment in Endowment 611,547 825,227 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (57,992) 76,282 Cash and Cash Equivalents Beginning of Year 148,805 72,523 CASH AND CASH EQUIVALENTS END OF YEAR $ 90,813 $ 148,805 See accompanying Notes to Financial Statements. (6)

NOTE 1 ORGANIZATION The Richard Stockton College of New Jersey Foundation (the "Foundation") was formed and incorporated within the state of New Jersey in April 1972, to receive gifts, grants and bequests from the community to support, complement and extend the programs and goals of The Richard Stockton College of New Jersey (the "College"). The mission of the Foundation is to act in partnership with the Board of Trustees of the College to develop resources and secure private contributions for the enhancement of educational opportunities and services at the College. The Foundation is considered a component unit of The Richard Stockton College of New Jersey for financial reporting purposes. Accordingly, the Foundation's financial statements are included in the College's basic financial statements. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The financial statements of the Foundation have been prepared using the accrual basis of accounting. Income Taxes The Internal Revenue Service has ruled the Foundation is tax exempt as a not for profit organization under Section 501(c)(3) of the Internal Revenue Code. The Foundation follows the Financial Accounting Standards Board ( FASB ) guidance that requires a tax position to be recognized or derecognized based on a more likely than not threshold. The Foundation does not believe its financial statements include any uncertain tax positions. The Foundation s policy is to recognize interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. No interest or penalties were recognized in 2014 or 2013. The Foundation s federal Exempt Organization Business Income Tax Returns for 2013, 2012 and 2011 remain subject to examination by the Internal Revenue Service. Classification of Net Assets The Foundation s net assets and revenues, gains, and losses are classified in the financial statements based on existence or absence of donor imposed restrictions and the nature of donor imposed restrictions as follows: Unrestricted net assets net assets not subject to any donor imposed stipulations. Temporarily restricted net assets net assets subject to donor imposed stipulations that will be met by actions of the Foundation or by the passage of time. Permanently restricted net assets net assets subject to donor imposed stipulations that they may be maintained permanently by the Foundation. Investment income earned from these funds is included in unrestricted or temporarily restricted net assets unless the donor specifies otherwise. Certain donors have specified that a portion of investment income be added to permanently restricted net assets. (7)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Classification of Net Assets (Continued) Expiration of temporary restrictions on net assets (i.e. the donor stipulated purposes have been fulfilled and/or the stipulated time period has elapsed) is reported as reclassifications between applicable classes of net assets. Component Unit The Foundation is presented as a component unit in the financial statements of the College since for economic resources received or held by the Foundation are entirely or almost entirely for the direct benefit of the College. Contributions Contributions, including unconditional promises to give, are recognized as revenue in the period received. Conditional promises to give are not recognized until they become unconditional, that is, when the conditions on which they depend are substantially met. Unconditional promises to give which will be received after one year are recorded after discounting to the present value of expected future cash flows at a discount rate commensurate with the risks involved. Amortization of discount is recorded as contribution revenue in accordance with donor imposed restrictions. Noncash contributions are recorded at the estimated fair value on the date of donation. Contributions are reported as temporarily restricted operating revenue if the contributions are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is when a stipulated time restriction ends or purpose for restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Cash Equivalents Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash with a maturity of 3 months or less at the time of purchase, and include money market funds except for those included in investments. Property and Equipment Property and equipment are stated at cost, or, if donated, at the estimated fair value at the date of donation. Depreciation of property and equipment is recorded using the straight line method based upon the estimated useful lives of the assets, which is five years. The capitalization threshold is set at $5,000. When assets are sold, retired or disposed of, the cost and related accumulated depreciation are removed from the accounts and the difference is included in the statement of activities. (8)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Functional Allocation of Expense The costs of providing the program, supporting, and fund raising services of the Foundation have been reported on a functional basis in the accompanying statement of activities. Accordingly, certain costs have been allocated among the program, supporting, and fund raising services based upon the function benefited. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Reclassification Certain reclassifications have been made to the 2013 financial statements to conform to the 2014 reporting format. The reclassification did not affect net assets or changes therein. Investments Investments include money market funds, mutual funds, fixed income and equity securities donated to, or purchased by, the Foundation, which are recorded at fair value using dealer or exchange quoted market prices. Interest and dividend income and net realized and unrealized gain in fair value of investments is included in the statement of activities. The Foundation s investments are comprised of a variety of financial instruments and are managed by investment advisors. The investments reported in the statement of net assets are exposed to various risks including changes in the equity markets, the interest rate environment, and general economic conditions. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in their fair value, it is reasonably possible that the amounts reported in the accompanying financial statements could change materially in the near term. The Foundation has adopted a total return investment policy. The primary investment objective is to maximize long term return through a combination of income and capital appreciation achieved in a prudent manner. NOTE 3 CONCENTRATIONS OF CREDIT RISK The Foundation maintains its cash in bank deposits, which at times may exceed federally insured limits. The Foundation has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on its cash and cash equivalents. (9)

NOTE 4 PLEDGES RECEIVABLE Pledges receivable consists of unconditional promises to give made by individuals and businesses located primarily in New Jersey. The allowance for doubtful pledges is based on management s estimates and historical collections on pledges. Pledges receivable as June 30, 2014 and 2013 are as follows: 2014 2013 Receivable is Less Than One Year $ 419,842 $ 485,206 Receivable is One to Five Years 685,883 984,322 Receivable is More Than Five Years 50,000 100,000 Total 1,155,725 1,569,528 Less Discount to Net Present Value (30,653) (55,306) Less Allowance for Doubtful Pledges (130,182) (308,099) Pledges Receivable, Net $ 994,890 $ 1,206,123 Pledges receivable which are receivable in more than one year are discounted at a rate of return appropriate for the expected term of the promise ranging from 0.62% to 4.5%. Conditional promises to give for 2014 and 2013, which are not reflected in the statement of financial position, are as follows: Bequests in Wills $ 400,000 Life Insurance Contracts 100,000 Total $ 500,000 NOTE 5 INVESTMENTS/FAIR VALUE MEASUREMENTS Fair value measurements and disclosures provide the framework for measuring fair value. Fair value is defined as the price that would be received to sell an asset or the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The framework established for measuring fair value includes a hierarchy used to classify the inputs used in measuring fair value. The hierarchy prioritizes the inputs used in determining valuations into three levels. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant of the fair value measurement. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Valuation techniques need to maximize the use of observable inputs and minimize the use of unobservable inputs. The levels of the fair value hierarchy are as follows: (10)

NOTE 5 INVESTMENTS/FAIR VALUE MEASUREMENTS (CONTINUED) Level 1 Level 2 Level 3 Quoted prices for identical instruments in active market. Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model driven valuations whose inputs are observable or whose significant value drivers are observable. Significant unobservable inputs. The financial instruments level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following tables set forth, by level, the Foundation's investments at fair value, within the fair value hierarchy: Assets at Fair Value as of June 30, 2014 Level 1 Level 2 Level 3 Total Money Market Funds $ 1,297,614 $ $ $ 1,297,614 Equity Mutual Funds: International 2,963,738 2,963,738 Large Cap 11,797,865 11,797,865 Mid Cap 1,706,880 1,706,880 Small Cap 831,670 831,670 Fixed Income Mutual Funds: Intermediate 3,211,230 3,211,230 High Yield 1,007,081 1,007,081 Short Term 1,489,958 1,489,958 International 2,541,113 2,541,113 Total $ 26,847,149 $ $ $ 26,847,149 (11)

NOTE 5 INVESTMENTS/FAIR VALUE MEASUREMENTS (CONTINUED) Assets at Fair Value as of June 30, 2013 Level 1 Level 2 Level 3 Total Money Market Funds $ 848,668 $ $ $ 848,668 Equity Mutual Funds: International 2,255,064 2,255,064 Large Cap 10,172,810 10,172,810 Mid Cap 1,363,845 1,363,845 Small Cap 582,000 582,000 Other 239,800 239,800 Fixed Income Mutual Funds: Intermediate 3,180,350 3,180,350 High Yield 800,000 800,000 Short Term 1,485,713 1,485,713 International 2,180,938 2,180,938 Total $ 23,109,188 $ $ $ 23,109,188 The Foundation used quoted market process to determine fair value of investment securities. Such investments are included in Level 1. When quoted market prices are not readily available or representative of fair value, pricing determinations are made based on the results of valuation models using observable market data as recently reported trades, bid and offer information and benchmark securities. There have been no changes in methodologies used at June 30, 2014 and 2013. Investments consist of the following: 2014 2013 Cost Fair Value Cost Fair Value Money Market Funds $ 1,297,614 $ 1,297,614 $ 848,668 $ 848,668 Equity Mutual Funds: International 2,547,497 2,963,738 2,174,620 2,255,064 Large Cap 7,706,085 11,797,865 8,186,383 10,172,810 Mid Cap 1,154,252 1,706,880 1,124,170 1,363,845 Small Cap 576,572 831,670 472,265 582,000 Other 311,727 239,800 Fixed Income Mutual Funds: Intermediate 3,265,761 3,211,230 3,265,761 3,180,350 High Yield 1,000,075 1,007,081 800,025 800,000 Short Term 1,505,999 1,489,958 1,505,999 1,485,713 International 2,525,450 2,541,113 2,225,400 2,180,938 Total $ 21,579,305 $ 26,847,149 $ 20,915,018 $ 23,109,188 (12)

NOTE 5 INVESTMENTS/FAIR VALUE MEASUREMENTS (CONTINUED) Net realized and unrealized gains and investment income on investments are as follows for the years ended June 30, 2014 and 2013: 2014 2013 Realized Gains (Losses) on Investments $ 104,437 $ 172,843 Unrealized Gain on Investments 3,073,674 1,699,048 Investment Income, Net 520,867 425,525 Total $ 3,698,978 $ 2,297,416 Investment fees amounted to $99,487 and $86,985 for 2014 and 2013, respectively. The fees are included as a charge to net investment income in the statement of activities. NOTE 6 PROPERTY AND EQUIPMENT Property and equipment consist of the following: 2014 2013 Vehicle $ 11,575 $ 11,575 Less Accumulated Depreciation (10,996) (8,681) Property and Equipment, Net $ 579 $ 2,894 NOTE 7 TEMPORARILY RESTRICTED NET ASSETS Temporarily restricted net assets consist of the following: 2014 2013 Scholarships and Awards $ 3,852,612 $ 2,779,120 Academic Support 2,563,948 2,078,739 Facilities Support 1,555,581 641,861 Other Direct Support 83,202 91,786 Faculty Support 22,008 16,000 Official Representation 84,561 62,548 Fundraising Scholarships 421,033 308,889 Total $ 8,582,945 $ 5,978,943 (13)

NOTE 7 TEMPORARILY RESTRICTED NET ASSETS (CONTINUED) Net assets released from restrictions were for the following purposes: 2014 2013 Scholarships and Awards $ 461,252 $ 327,165 Academic Support 325,448 378,157 Facilities Support 383,924 322,533 Fundraising 274,418 210,386 Other Direct Support 23,410 16,408 Faculty Support 30,201 11,474 Official Representation 8,746 15,036 Total $ 1,507,399 $ 1,281,159 NOTE 8 RELATED PARTY TRANSACTIONS The Foundation is located on the campus of the College. College personnel and facilities are used at varying times during the years for which the College is normally reimbursed. SASI is a component unit of the College. It is a separately incorporated 501(c)3 that was established to manage auxiliary operations on behalf of the college. 2014 2013 Foundation's Contributions to the College Scholarships $ 520,752 $ 396,265 Academic Support 325,448 381,157 Facilities Support Holocaust Resource Center 50,000 50,000 Kramer Hall 46,820 50,000 Other 76,519 11,948 $ 1,019,539 $ 889,370 2014 2013 Foundation's Contributions to SASI Sam Azeez Museum $ 210,585 $ 210,585 During fiscal years 2014 and 2013, the College provided $264,008 and $199,014, respectively, inkind finance and administration services. During fiscal years 2014 and 2013, SASI provided support for the Foundation s mission in the amount of $57,500 and $7,500, respectively (14)

NOTE 9 IN KIND CONTRIBUTIONS The value of services donated to the Foundation by unrelated parties is recognized in the period that services are provided to the Foundation. In fiscal years 2014 and 2013, the Foundation received $51,251 and $139,195, respectively, from in kind services for advertising, catering, and entertainment. NOTE 10 ENDOWMENTS AND SIMILAR FUNDS Endowment funds are comprised of donor restricted endowment funds, and funds designated by the Board of Directors to function as endowments. As required by generally accepted accounting principles, net assets associated with endowment funds, including Board designated funds, are classified and reported based upon the existence or absence of donor imposed restrictions. The Foundation has interpreted the Uniform Prudent Management of Institutional Funds Act ( UPMIFA ) as requiring the preservation of fair value of the original gift as of the gift date to the donor restricted endowment funds, absent explicit donor stipulations to the contrary. As a result of this interpretation, the Foundation classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulation and decrements to the permanent endowment made in accordance with the direction of the applicable donor gift instrument. The remaining portion of the donor restricted endowment funds that are not classified in permanently restricted net assets are classified as temporarily restricted net assets, until those amounts are appropriated for expenditure by the Foundation in a manner consistent with the standard of prudence prescribed by UPMIFA. In accordance with UPMIFA, the Foundation considers the following factors in making a determination to appropriate or accumulate donor restricted endowment funds. (1) the duration and preservation of the fund; (2) the purposes of the Foundation and the donor restricted endowment fund; (3) general economic conditions; (4) the possible effect of inflation and deflation; (5) the expected total return from income and appreciation of investments; (6) other resources of the Foundation; and (7) the investment policies of the Foundation (15)

NOTE 10 ENDOWMENTS AND SIMILAR FUNDS (CONTINUED) The Foundation's endowment and similar net assets had the following activity for the year ended June 30, 2014: Changes in Endowment and Similar Net Assets for Fiscal Year Ended June 30, 2014 Temporarily Permanently Unrestricted Restricted Restricted Total Endowment and Similar Net Assets Beginning of Year $ 1,788,902 $ 2,669,082 $ 16,417,626 $ 20,875,610 Investment Return: Investment Income 41,532 397,917 8,624 448,073 Net Realized and Unrealized 251,748 2,431,786 30,193 2,713,727 Total Investment Return 293,280 2,829,703 38,817 3,161,800 Contributions 2,500 3,000 465,782 471,282 Special Events Contributions 145,765 145,765 Deficiencies in Historical Value (1,611) (1,145) (2,756) Loss on Uncollectible Pledges Net Assets Released from Restrictions (59,500) (604,662) (664,162) Changes in Net Assets 236,280 2,226,430 649,219 3,111,929 Endowment and Similar Net Assets End of Year $ 2,025,182 $ 4,895,512 $ 17,066,845 $ 23,987,539 The Foundation's endowment and similar net assets had the following net asset compositions at June 30, 2014: Temporarily Permanently Unrestricted Restricted Restricted Total Donor Restricted Endowment Funds $ $ 4,895,512 $ 17,066,845 $ 21,962,357 Board Designated Endowment Funds 2,025,182 2,025,182 Endowment and Similar Net Assets End of Year $ 2,025,182 $ 4,895,512 $ 17,066,845 $ 23,987,539 (16)

NOTE 10 ENDOWMENTS AND SIMILAR FUNDS (CONTINUED) The Foundation's endowment and similar net assets had the following activity for the year ended June 30, 2013: Changes in Endowment and Similar Net Assets for Fiscal Year Ended June 30, 2013 Temporarily Permanently Unrestricted Restricted Restricted Total Endowment and Similar Net Assets Beginning of Year $ 1,652,064 $ 1,353,065 $ 15,800,546 $ 18,805,675 Investment Return: Investment Income 33,343 325,931 9,594 368,868 Net Realized and Unrealized 146,495 1,434,222 26,330 1,607,047 Total Investment Return 179,838 1,760,153 35,924 1,975,915 Contributions 6,000 70 461,718 467,788 Special Events Contributions 363,509 363,509 Deficiencies in Historical Value 2,066 (1,469) 597 Loss on Uncollectible Pledges (242,602) (242,602) Net Assets Released from Restrictions (49,000) (446,272) (495,272) Changes in Net Assets 136,838 1,316,017 617,080 2,069,935 Endowment and Similar Net Assets End of Year $ 1,788,902 $ 2,669,082 $ 16,417,626 $ 20,875,610 The Foundation's endowment and similar net assets had the following net asset compositions at June 30, 2013: Temporarily Permanently Unrestricted Restricted Restricted Total Donor Restricted Endowment Funds $ $ 2,669,082 $ 16,417,626 $ 19,086,708 Board Designated Endowment Funds 1,788,902 1,788,902 Endowment and Similar Net Assets End of Year $ 1,788,902 $ 2,669,082 $ 16,417,626 $ 20,875,610 (17)

NOTE 10 ENDOWMENTS AND SIMILAR FUNDS (CONTINUED) Funds with Deficiencies From time to time, the fair value of assets associated with an individual donor restricted endowment fund may fall below the level that the donor or state law requires the Foundation to retain as a fund of perpetual duration. Accordingly, deficiencies of this nature that are reported in unrestricted net assets were $1,079 and $3,835 as of June 30, 2014 and 2013, respectively. These deficiencies resulted from unfavorable market fluctuations and continued appropriation for certain programs that was deemed prudent by the Board of Directors. Return Objectives and Risk Parameters The Foundation has adopted investment and spending policies for endowment assets that attempt to provide a relatively predictable and growing stream of annual distributions in support of the institution while preserving the long term, real purchasing power of the related assets. An additional purpose of the fund is to provide a source of funds for a time when the Foundation may face a financial emergency, subject to any funds being utilized in such a manner which are consistent with the original donor restrictions. Endowment assets include those assets of donor restricted funds that the Foundation must hold in perpetuity as well as board designated funds. Strategies Employed for Achieving Objectives The overall financial goal of the endowment is to maintain or enhance its fair value while providing the Foundation's operating budget with a relatively predictable and growing stream of revenue targeted at approximately 4% of the endowment. Therefore, the financial objective is to earn a total return (net of all fees and expenses) equal to or exceeding the spending rate plus the inflation rate as measured by the Consumer Price Index. For an endowment to maintain its inflation adjusted level of support, it must earn an investment return equal to the spending rate plus the inflation rate. NOTE 11 SUBSEQUENT EVENTS The Foundation evaluated subsequent events through October 31, 2014, which is the date the financial statements were available to be issued. (18)