The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of The Golden L.E.A.F. (Long-term Economic Advancement Foundation), Inc. (the “Foundation”) under programs of the federal government for the year ended June 30, 2025. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the Foundation, it is not intended to and does not present the net position or changes in fund balance of the Foundation.
Federal funding received to be disbursed to an eligible subrecipient or contractor to support the North Carolina COVID-19 Rapid Recovery Loan Program. The grant agreement allows the Foundation’s program to make loans to the latest date allowed by Federal law, which was December 31, 2021. As of June 30, 2021, all Coronavirus Relief Fund loans awarded to the Foundation were disbursed to the Foundation’s sole subrecipient and are therefore now in the repayment phase. Amounts presented on the SEFA represent outstanding loan balances. As loans payments are made by the borrowers and collected by the Foundation’s sole subrecipient, the Foundation is then required to return the net loan funds back to the North Carolina Pandemic Recovery Office beginning on the date the authority to award new loans ceases and every six months thereafter. Year Ended June 30, 2025 Amount Outstanding Coronavirus Relief Fund loan balance at June 30, 2024 $ 72,696,136 Value of new loans made or received - Interest subsidy, cash, or other administrative cost allowances received - Total expenditures of Federal awards $ 72,696,136 Total North Carolina COVID-19 Rapid Recovery Loan Program expenditures were as follows: The total Coronavirus Relief Fund loans outstanding as of June 30, 2025 was $65.5 million. Of the balance outstanding as of June 30, 2025, $50.5 million in Coronavirus Relief Fund loans were not due to the Foundation, but rather these loans are due from the borrowers to the lenders. The remaining $15.0 million pertains to repayments received from borrowers in prior periods and due to the State.
The federal financial assistance amounts received are subject to audit and adjustment. If any expenditures are disallowed by the applicable cognizant agency as a result of such an audit, any claim for reimbursement to the cognizant agencies could become a liability of the Foundation. In the opinion of management, all federal expenditures are in compliance with the terms of the agreements and applicable federal and state laws and regulations.
The Foundation’s investments are recorded at fair value at June 30, 2025 and 2024. GASB Statement No. 72, Fair Value Measurement and Application (“GASB 72”), defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This statement establishes a hierarchy of valuation inputs based on the extent to which the inputs are observable in the marketplace. Inputs are used in applying the various valuation techniques and take into account the assumptions that market participants use to make valuation decisions. Inputs may include price information, credit data, interest and yield curve data, and other factors specific to the financial instrument. Observable inputs reflect market data obtained from independent sources. In contrast, unobservable inputs reflect the entity’s assumptions about how market participants would value the financial instrument. Valuation techniques should maximize the use of observable inputs to the extent available. A financial instrument’s 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 describes the hierarchy of inputs used to measure fair value and the primary valuation methodologies used for financial instruments measured at fair value on a recurring basis: Level 1 Investments whose values are based on quoted prices for identical assets in active markets that a government can access at the measurement date. Level 2 Investments with inputs – other than quoted prices included within Level 1 – that are observable for an asset, either directly or indirectly Level 3 Investments classified as Level 3 have unobservable inputs and may require a degree of professional judgment. The following table summarizes the Foundation’s investments within the fair value hierarchy at June 30, 2025 and 2024, exclusive of cash and cash equivalents, investments in money market funds, and certificates of deposit (which are valued at amortized cost): Fair Value Measurements Using June 30, 2025 Fair Value Level 1 Level 2 Level 3 Investments by fair value level: U.S. Treasuries $ 42,001,640 $ 42,001,640 $ - $ - Fixed income funds 65,312,219 65,312,219 - - Domestic stocks and equity funds 229,785,400 229,785,400 - - International equity fund 160,708,620 160,708,620 - - Real estate fund 70,233,758 70,233,758 - - Total investments by fair value level $ 568,041,638 $ 568,041,638 $ - $ - Investments measured at net asset value (“NAV”): International equity funds $ 380,340,941 Absolute return funds 246,750,585 Private equity limited partnerships 155,444,887 Real estate and other real asset limited partnerships 103,001,974 Total investments measured at NAV 885,538,387 Total investments measured at fair value $ 1,453,580,025 Fair Value Measurements Using June 30, 2024 Fair Value Level 1 Level 2 Level 3 Investments by fair value level: U.S. Treasuries $ 46,335,715 $ 46,335,715 $ - $ - Fixed income funds 67,703,500 67,703,500 - - Domestic stocks and equity funds 198,447,497 198,447,497 - - International equity fund 140,700,084 140,700,084 - - Real estate fund 66,110,724 66,110,724 - - Total investments by fair value level $ 519,297,520 $ 519,297,520 $ - $ - Investments measured at net asset value (“NAV”): International equity funds $ 372,124,806 Absolute return funds 218,467,172 Private equity limited partnerships 134,960,676 Real estate and other real asset limited partnerships 91,869,331 Total investments measured at NAV 817,421,985 Total investments measured at fair value $ 1,336,719,505 The valuation of investments measured at NAV per share, or its equivalent, is presented on the following tables: Redemption Redemption Unfunded Frequency (if Notice June 30, 2025 Fair Value Commitments Currently Available) Period International equity funds(A) $ 380,340,941 $ - Weekly-quarterly 9-60 days Absolute return funds(B) 246,750,585 - Monthly-semi-annually 45-90 days Private equity limited partnerships(C) 155,444,887 125,823,408 N/A N/A Real estate and other real asset limited partnerships(D) 103,001,974 74,926,769 N/A N/A Total investments measured at NAV $ 885,538,387 $ 200,750,177 A. International equity funds include five funds, including investments in four commingled funds that hold approximately 56 percent of the funds’ investments in publicly traded non-U.S. stocks and 44 percent in publicly traded U.S. stocks and cash. The fair values of the investments in this type have been determined using the NAV per share of the investments. B. Absolute return funds are comprised of 11 hedge funds, including four stub positions, that employ long/short equity, long/short credit, event-driven, distressed, special situations, relative value and macro strategies. The funds are valued monthly based on the NAV per share. Approximately one percent of the value of investments in this type is held in non-marketable securities and is illiquid. Investments representing approximately 15 percent of the value of the investments in this type cannot be redeemed because the investments have lock-up periods of 12 months. The remaining restriction period for these investments was 12 months at June 30, 2025. C. Private equity limited partnerships are comprised of 28 private equity funds that utilize buyout, distressed, special situations, growth capital, mezzanine and venture capital strategies. The underlying companies within the limited partnerships span all the Global Industry Classification Standard (“GICS”) economic sectors. These investments can never be redeemed with the funds. Instead, the nature of the investments in this type is that distributions are received through the liquidation of the underlying assets of the fund. If these investments were held, it is expected that the underlying assets of the fund would be liquidated over a period of approximately 10 years. D. Real estate and other real assets limited partnerships include 23 private limited partnerships. Ten of the private limited partnerships invest in real estate and 13 invest in natural resources. These investments can never be redeemed with the funds. Instead, the nature of the private limited partnerships in this type is that distributions are received through the liquidation of the underlying assets of the fund. If these investments were held, it is expected that the underlying assets of the fund would be liquidated over a period of approximately 10 years. Redemption Redemption Unfunded Frequency (if Notice June 30, 2024 Fair Value Commitments Currently Available) Period International equity funds(A) $ 372,124,806 $ - Daily-quarterly 10-60 days Absolute return funds(B) 218,467,172 - Monthly-biannually 30-90 days Private equity limited partnerships(C) 134,960,676 126,058,365 N/A N/A Real estate and other real asset limited partnerships(D) 91,869,331 84,875,019 N/A N/A Total investments measured at NAV $ 817,421,985 $ 210,933,384 A. International equity funds include five funds, including investments in four commingled funds that hold approximately 58 percent of the funds’ investments in publicly traded non-U.S. stocks and 42 percent in publicly traded U.S. stocks and cash. The fair values of the investments in this type have been determined using the NAV per share of the investments. B. Absolute return funds are comprised of 12 hedge funds, including four stub positions, that employ long/short equity, long/short credit, event-driven, distressed, special situations, relative value and macro strategies. The funds are valued monthly based on the NAV per share. Approximately one percent of the value of investments in this type is held in non-marketable securities and is illiquid. There are no lock-up periods remaining on these funds. The remaining restriction period for these investments was 13 months at June 30, 2024. C. Private equity limited partnerships are comprised of 28 private equity funds that utilize buyout, distressed, special situations, growth capital, mezzanine and venture capital strategies. The underlying companies within the limited partnerships span all the Global Industry Classification Standard (“GICS”) economic sectors. These investments can never be redeemed with the funds. Instead, the nature of the investments in this type is that distributions are received through the liquidation of the underlying assets of the fund. If these investments were held, it is expected that the underlying assets of the fund would be liquidated over a period of approximately 10 years. D. Real estate and other real assets limited partnerships include 22 private limited partnerships. Nine of the private limited partnerships invest in real estate and 13 invest in natural resources. These investments can never be redeemed with the funds. Instead, the nature of the private limited partnerships in this type is that distributions are received through the liquidation of the underlying assets of the fund. If these investments were held, it is expected that the underlying assets of the fund would be liquidated over a period of approximately 10 years.
The Foundation considers highly liquid temporary cash investments with a maturity of three months or less when purchased to be cash equivalents. However, cash investments with a maturity of three months or less that were purchased with the intent to be maintained as an investment are classified as investments. According to the Foundation’s investment policy adopted by the Board of Directors, the Foundation may invest in any of the following broad asset classes: domestic equities; real estate; mutual funds; foreign equities; fixed income securities; cash equivalents; and alternatives. The Foundation maintained no direct investments in derivatives at June 30, 2025 and 2024. Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The Foundation has no policy that contains requirements that would limit the exposure to custodial credit risk for deposits. At June 30, 2025 and 2024, respectively, the carrying amount of the Foundation’s deposits was $869,284 and $596,297 and the bank balance, excluding in-transit items, was $869,284 and $621,371. Of the bank balances, $728,519 and $503,013 was covered by the Federal Deposit Insurance Corporation (“FDIC”) and $140,765 and $118,358 was uninsured and uncollateralized at June 30, 2025 and 2024, respectively. At June 30, 2025, the Foundation holds a portfolio of $2.1 million in nine certificate of deposit accounts at various community banks in North Carolina, with denominations ranging from $225,000 to $248,000. At June 30, 2024, the Foundation held $1.6 million in eight certificate of deposit accounts. There is no custodial credit risk for these accounts as they are fully insured by the FDIC. Financial instruments that potentially subject the Foundation to concentration of credit risk consist principally of cash deposits. Accounts at each institution are insured by the FDIC up to $250,000. At June 30, 2025 and 2024, the Foundation had $140,765 and $118,358 in excess of the FDIC insured limit, respectively. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The Foundation monitors the interest rate risk inherent in its portfolio by measuring the effective duration of its portfolio. The Foundation has no specific limitations with respect to duration. At June 30, 2025 and 2024, respectively, the Foundation had investments in U.S. Treasuries with an average duration of 5.0 years and 4.7 years and fair value of $42.0 million and $46.4 million and investments in two fixed income security funds with an average duration of 6.1 years and 6.3 years and fair value of $65.9 million and $67.7 million. The Foundation also had investments in a short-term bond fund with an average duration of 0.7 years and 0.6 years and fair value of $14.2 million and $13.4 million at June 30, 2025 and 2024, respectively, and a money market fund with a fair value of $51.8 million and $58.9 million and duration of 0.3 years and 0.2 years at June 30, 2025 and 2024, respectively. Credit risk is the risk that an issuer of an investment will not fulfill its obligations. Credit risk is measured by the assignment of a rating by a nationally recognized statistical rating organization. The Foundation’s investment policy has no specific limitations with respect to credit quality. At June 30, 2025 and 2024, respectively, the Foundation had investments in two unrated fixed income funds with a fair value of $65.9 million and $67.7 million. At June 30, 2025 and 2024, respectively, the Foundation had an investment in an unrated short-term bond fund with a fair value of $14.2 million and $13.4 million. At June 30, 2025 and 2024, respectively, the Foundation had an investment in a money market fund rated AAA with a fair value of $51.8 million and $58.9 million. The concentration of credit risk is the risk of loss that may be caused by the Foundation’s investment in a single issuer. The Foundation’s investment policy limits the amount of the portfolio that can be invested in any one single, active fund manager to no more than 10% of the fair value of the portfolio. For an investment, the custodial risk is the risk that in the event of the failure of the counterparty, the Foundation will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Foundation has no written policy on custodial credit risk; however, based on the nature of the investments the Foundation currently holds, management does not consider custodial risk to be significant. Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an investment or a deposit. The Foundation’s investment policy does not limit the amount invested in foreign currency-denominated investments. The Foundation’s investments are summarized below: June 30, 2025 % 2024 % U.S. Treasuries $ 42,001,640 2.76 $ 46,335,715 3.31 Fixed income funds 65,312,219 4.29 67,703,500 4.83 Domestic stocks and equity funds 229,785,400 15.08 198,447,497 14.17 International equity funds 541,049,562 35.50 512,824,889 36.61 Absolute return funds 246,750,585 16.19 218,467,172 15.60 Private equity limited partnerships 155,444,887 10.20 134,960,676 9.63 Real estate and other real asset funds 173,235,732 11.37 157,980,055 11.28 Money market funds 66,039,341 4.33 58,942,853 4.21 Certificates of deposit 2,124,166 0.14 1,632,823 0.12 Cash and equivalents 2,086,844 0.14 3,422,402 0.24 Total investments $ 1,523,830,376 100.00 $ 1,400,717,582 100.00 The following summarizes the investment return and its classification in the accompanying Statements of Activities and Governmental Fund Revenues, Expenditures, and Changes in Fund Balance: Year ended June 30, 2025 2024 Dividends and interest $ 27,667,284 $ 22,232,757 Net realized gains 62,051,862 16,776,750 Net unrealized gains 91,611,483 122,372,470 Management fees (3,254,481) (1,749,146) Net investment income $ 178,076,148 $ 159,632,831 The calculation of realized gains and losses is independent of a calculation of the net change in the fair value of investments. Realized gains and losses on investments that have been held in more than one fiscal year and sold in the current year were included as a change in the fair value of investments reported in the prior years and current year.