The Commission used the following methods and significant assumptions to estimate fair value for assets recorded at fair value:
Equity and fixed-income mutual funds and money market funds—Valued at the net asset value (NAV) of shares held at year-end and based on quoted prices in active markets.
Certificates of deposit—Valued at fair value by discounting the related cash flows based on current yields of similar instruments with comparable durations, considering the creditworthiness of the issuer. Exchange-traded products—Valued using quoted prices in active markets.
7. RETIREMENT PLAN
The Commission sponsors a defined-contribution retirement plan in the form of a 403(b) annuity for all full-time staff. The Commission contributes 15% of each employee’s base compensation, beginning with the first full month of employment. Employees are fully vested in the plan after one year of service. The plan permits additional voluntary contributions by each employee. Retirement expense totaled $193,992 for the year ended December 31, 2013.
8. INCOME TAXES
The Commission is exempt from the payment of taxes on income other than net unrelated business income under Section 501(c)(3) of the Internal Revenue Code. No provision for income taxes is required for the year ended December 31, 2013, as the Commission had no net unrelated business income.
The Commission adopted the authoritative guidance relating to accounting for uncertainty in income taxes included in ASC Topic Income Taxes. These provisions provide consistent guidance for the accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribe a threshold of “more likely than not” for recognition and derecognition of tax positions taken or expected to be taken in a tax return. The Commission performed an evaluation of uncertain tax positions for the year ended December 31, 2013, and determined that there were no matters that would require recognition in the financial statements or that may have any effect on its tax-exempt status. As of December 31, 2013, the statute of limitations for tax years 2010 through 2012 remains open with the U.S. federal jurisdiction or the various states and local jurisdictions in which the Commission files tax returns. It is the Commission’s policy to recognize interest and/or penalties related to uncertain tax positions, if any, in income tax expense. As of December 31, 2013, the Com- mission had no accrual for interest and/or penalties.
9. SUBSEQUENT EVENTS
In preparing these financial statements, the Commission has evaluated events and transactions for potential recognition or disclosure through March 14, 2014, the date the financial statements were available to be issued. There were no subsequent events identified that require recognition of, or disclosure in, these financial statements.
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