Table of Contents Message from the Chair Message from the President 2005 Grants List Financial Reports Program Guidelines Staff Board of Trustees  

NOTES TO FINANCIAL STATEMENT
  NOTE 1 > ORGANIZATION
    The Beldon II Fund (the fund) was established in 1988 as a private foundation organized to distribute monies to public charities involved in environmental preservation.
       
  NOTE 2 > SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
    BASIS OF ACCOUNTING
    The Fund's financial statements are presented on the accrual basis of accounting.Revenue is recognized when earned and expenses are recognized when incurred.
    ACCOUNTING ESTIMATES
    The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make astimates and assumptions which affect the reported amounts of assets and liabilities and the disclosure of contingencies, if any, at the date of financial statements and revenue and expenses during the reporting period. Actual results could differ from these estimates.
    INVESTMENTS
    Investments are reported at their value. Fair value is determined using quoted market prices for marketable securities and at the values reported by the Fund for alternative investments. Realized gains and losses on sale are determined by comparison of purchase cost to proceeds. For donated investments, cost is the donor's cost.
    FIXED ASSETS, DEPRECIATION AND AMORTIZATION
    Fixed assets are stated at cost. Depreciation is computed using the straight-line method over the estimated useful life of the assets as follow
   
Equipment
 3-7 years
    Furniture and fixtures 7 years
    Leasehold improvements 10 years
    CASH AND CASH EQUIVALENTS
    Cash and cash equivalents are checking accounts and operating money market funds.
             
  NOTE 3 > INVESTMENTS
    The Fund's investments consist of the foloowing as of December 31, 2005 and 2004:
       
     
2006
2007
     
COST
FAIR VALUE
COST
FAIR VALUE
  Invested cash
$ (228, 781)
$ (228, 781)
$ 1, 025, 646
$ 1, 025, 646
  U.S. government securities
-
-
5,609,133
5,701,274
  Corparate bonds
-
-
3,004,590
3,019,702
  Comman stocks
4,849,524
6,690,986
8,744,503
11,869,939
  Assets backed securities
-
-
6,143,236
6,083,766
  Bond fund
9,496,862
9,328,515
-
-
  Stock fund
169,667
188,024
-
-
  Alternative inveestments
22,632,761
29,154,449
24,702,300
30,231,514
     
$ 36,920,033
$ 45,133,193
$ 49,229,408
$ 57,931,841
             
    The Fund's gain on sale of investments and change in urealized gain was comprise of the following:
         
2006
2005
      Realized Gains
$ 2,534,966
$ 4,229,347
      Change in unrealized appreciation, net of change in deferred Federal excise tax
(484,378
(250,409)
         
2,050,588
3,978,938
             
  NOTE 4> FEDERAL EXCISE TAXES
   

The Fund's investment income, reduced by certain allowable expenses, is subject to federal excise tax at a rate of either 1% or 2%. The Fund was required to pay excise tax at the 1% rate for 2006 and 2005.

The Fund is also required to make minimum annual charitable distributions within certain time periods. The required distributions is 5% of the average fair market value of investment assets, less the excise tax on investment income. The Fund has satisfied this requiremnt.

Deferred excise taxes are recorded on the unrealized appreciation on investments using the Fund's normal 1% excise tax rate.
             
  NOTE 5> LEASE COMMITMENTS
    The Fund is subject to a 10-year lease for office space at 99 Madison Avenue, New York, NY that commenced June 1, 2999. A security depost of $33,750 was required under the terms of the lease. Minimum lease payments required by the lease are $135,000 per year, terminating May 31, 2009.
             
  NOTE 6>
RETIREMENT PLAN
    the Fund Maintains a defined contribution plan. All full-time, permanent employees are eligible to participate after three months of service. Effective January 1, 2002, the plan was amended to provide improved benefits. Full vesting occurs after two years of service instead of graduated vesting over six years. Each year the Fund contributes 10% of participant's gross salary to the plan. In addition, the fund will match elective contributions by employees up to %5 of salary. Contributions for the years ended December 31, 2005 and 2004 were $144,338 and $131,140, respectively.
             
  NOTE 7> LONG TERM GRANTS PAYABLE
   

The Foundation estimates its long term grant commitments will be paid as follows:

               2007    $50,000
             
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