Reformed Presbyterian Minutes of Synod 1995 - Rparchives.org

116 MINUTES OF THE SYNOD OF THEthe years then ended. Use of actuarially determined costs as of the most recentvaluation (January 1, 1987) for Plan "A" would have resulted in an increase inpension liability and a decrease in the unrestricted-designated fund balance ofapproximately $225,000. Investments with a cost of approximately $1 35,000and market value of approximately $ 1 41,000 at December 31,1994, includedin the financialstatements of the Trustees, are available to satisfy a portion of thePlan "A" pension liability. A 9% assumed rate of return was used in determiningthe present value of accumulated vested benefits. There are no nonvestedaccumulated benefits.Plan "B" Plan "B" is a defined contribution plan and covers substantially allministers, missionaries and employees of the Synod who are not covered underPlan "A". Total pension expense for the years ended December 31, 1994 and1993 was $159,096 and $142,220, respectively, which includes amortizationof past service cost over an average period of approximately 25 years, and isrecorded under restricted-designated. The Trustees' policy is to fund pensioncosts accrued. Plan "B" is administered and the funds are invested by the PensionTrustees of the Synod of the Reformed Presbyterian Church of North America.The estimated amount of vested benefits as of December 31, 1994 is less thanthe amount of the net assets of Plan "B".Comprehensive actuarial reports and valuations are not available for Plan "B".Accordingly, the information necessary to provide the disclosures required byStatements of Financial Accounting Standards 87 and 88 has material effect onthe accompany financialstatements.NOTE 7 - CONTINGENT ASSETSAt December 31, 1994 and December 31, 1993, respectively, approximately$99,000 and $149,000 of cash (based on the prevailing exchange rates) wereheld in blocked accounts in Cyprus. Because of the restrictions imposed on theseassets and the uncertainty with regard to their realization, they are not recordedby the Trustees until funds are recovered. Approximately $36,400 and$52,300 were received in 1994 and 1993, respectively.NOTE 8 - U.S. DEPARTMENT OF EDUCATION NOTICEDuring April 1994, the Seminary received notice from the U.S. Department ofEducation requesting that $38,600 be reimbursed to lending institutions and$28,245 be reimbursed to the U.S. Department of Education as a result offindings in an audit of the Title IV Student Financial Assistance Programs for thesix-year period Ended June 30, 1991.As a result of the Seminary's response to this notice, the Seminary received noticeduring October 1994, that it was relieved of both potential liabilities.NOTE 9 - CONCENTRATION OF CREDIT RISKThe Trustees maintains its cash balances in one financial institution located inPittsburgh, Pennsylvania. The balances are insured by the Federal DepositInsurance Corporation up to $100,000. At December 31, 1994, the Trustee'suninsured cash balances total $21,367.