Page 34 - 2018 MHT Annual Report

The Trust Land Office activities earned a total of $11.3 million in FY 2018. Of that, $4.6 million was spendable income used to support beneficiary programs and services, with the remainder invested for
future growth.
Annual Expenditure Amount
To ensure stable funding and program continuity, annual trust expenditures are funded by a combination of the
following sources:
• Annual trust withdrawal (4.25 percent of the four-year average value of financial assets)
• Spendable income generated from TLO activities
• Interest income earned on cash balances
• Unexpended funds from prior fiscal years
Trust Budgeting and Spending
As a part of each budgeting cycle, trustees engage in a robust stakeholder-driven process to help determine funding priorities. Each area of expenditure is also reviewed and carefully considered during the process.
Trustees understand that trust funds play an important part in sustaining programs and services for beneficiaries across Alaska. As such, in FY 2018 trustees approved $18.9 million in combined Authority Grants, and MHTAAR grants to state agencies to deliver services to beneficiaries.
Separate from the beneficiary activities,
the Trust spends money administering
the settlement lands and operating the organization. For the 12-month period ending
Because the Trust wants to
ensure it has resources to support beneficiaries today as well as 100 years from today, it must prudently manage and strive to grow the corpus of the trust.
June 30, 2018, the non-grant expenses
were $7.5 million. The trustees continue to emphasize deploying financial resources to enhance services to beneficiaries and limiting expenses, and anticipate no growth in administrative spending for FY 2019.
It is important to note that the Trust supports all of its activities and grants with self- generated income; there are no state General Fund dollars required by the Trust.
This thoughtful approach to deploying Trust financial resources balances the current needs for programs and services with stewardship of the Trust lands and investments that will benefit future generations.
FY 2018 TRUST LAND OFFICE REVENUE SUMMARY
33
Total
Coal
Oil & Gas
Minerals $1,536,931 Materials $38,468
Timber Land
REMP
Real Estate
$6,075 $5,393,744 $1,806,800 $705,899
Total
$11,280,270
Actual $39,853 $1,752,500