The financial statements and schedules of the Foundation for 2006 and 2005 have been audited by KPMG LLP. They include the balance sheets, statements of activities and cash flows, and schedules of management and investment expenses.
Investment income for 2006 was $24,163,628, an increase of $4,721,661 from $19,441,967 in 2005. After the deduction of investment expenses and provision for taxes, net investment income was $10,045,383 in 2006 as compared to $9,310,904 for the prior year. Investment expenses during 2006 totaled $9,693,245 of which $6,609,901 represented investment management fees. The provision for taxes amounted to $4,425,000. The total of these deductions from investment income in 2006 was $14,118,245 versus $10,131,063 in 2005. Total investment gains for 2006 were $285,488,801 as compared with $132,776,637 in 2005.
Grants authorized (net of grant refunds) and management expenses during 2006 totaled $76,002,520, which was $65,957,137 greater than 2006 net investment income. Of this total, grants authorized (net of refunds) amounted to $69,408,995 while management expenses were $6,593,525. Since the Foundation's inception in 1934, the cumulative excess of grants and expenses over the Foundation's net investment income has amounted to $506.9 million.
Grant payments in 2006 were $66,465,559 compared to $61,165,933 for the prior year. Together with management expenses, investment expenses, taxes paid and other charges, the total of cash expenditures net of grant refunds in 2006 was $87,388,430 while in 2005 the amount was $76,817,922.
Grants authorized and payments made during the year ended December 31, 2006 are summarized in the following table:
| Grants unpaid at December 31, 2005 | $ | 68,951,758) |
| Authorized during 2006 | 69,920,894) | |
| Payments during 2006 | (66,465,559) | |
| Grants unpaid at December 31, 2006 | $ | 72,407,093) |
The fair value of the Foundation's total assets was $1,807,499,949 at December 31, 2006 including investments valued at $1,805,501,204 as compared with total assets of $1,581,350,875 at December 31, 2005.