Endowment funds represent funds that are subject to restrictions of gift instruments. The Executive Committee has maintained the designation of the funds as an endowment. The FTE considers all investments with original maturities of less than three months to be cash equivalents. Depreciation Depreciation on furniture and equipment is computed using the straight-line method over estimated useful lives of five years. Endowment Fund Investments Investments in equity securities with readily determinable fair values and all investments in debt securities are measured at fair value in the financial statements with the related gains and losses reported in current year activities.
Fair value is determined using quotes obtained from publicly reported exchanges.
Endowment fund investments consist of common stock, equity investments, mutual fund interests, and limited partnership interests. The common stock and limited partnership units are of two companies for which there is no public market. The contributed stock and limited partnership units were recorded at their fair market value as of the contribution date. They are currently recorded at historical cost less adjustments for stock and limited partnership units redeemed. Dividends received from the investments are recorded as investment income.