A N N UA L R E P O R T

Transcription

1 2017 ANNUAL REPORT

2 CONTENTS / INTRODUCTION Contents / Introduction Message from the Chairman.. 3 Board Members First Year Statistics Financial Summary Performance SAVE FOR A BETTER LIFE EXPERIENCE ABLE United, Florida s qualified ABLE program, allows individuals with disabilities to save up to $14,000 per year for future qualified disability expenses ($15,000 in 2018). ABLE United can help grow assets with tax-free earnings, save money without fear of losing benefits, and allow caregivers and family members to contribute and help financially prepare for their loved one s future. Perhaps even more importantly, ABLE United offers an opportunity for financial independence for individuals with disabilities. ADVANTAGES Save tax-free for future expenses Save while maintaining federal benefits Save with the help of family and friends ELIGIBILITY Qualifying disability Onset prior to age 26 Florida resident GOVERNMENT BENEFITS An ABLE United account is generally disregarded when determining federal and state benefit eligibility. Medicaid: Funds in an ABLE United account are disregarded for the purposes of determining Medicaid eligibility. Supplemental Security Income (SSI): Save up to $100,000 without impacting SSI. PHOTO As a parent, if I m not protecting my child s financial independence, I can really hurt her future. As an advocate for the disability community, I m thrilled that ABLE United is a service offered in our state. - SARAH SEQUENZIA, disability advocate and parent of a special needs child 2

3 MESSAGE FROM THE CHAIRMAN An ABLE United account offers Floridians with disabilities a tax-free way to save while maintaining government benefits. Previously, many individuals with disabilities who rely on government assistance programs to meet their needs were limited to $2,000 in assets or risked jeopardizing these important benefits. This made it difficult for them to save and plan for their financial future. But as of July 1, 2016, Floridians with disabilities had a new option ABLE United. In our first year, we heard from countless individuals and families about the difference ABLE United made in their lives, since they are now able to save funds for daily living expenses, specific long-term goals and even for expenses they can t yet predict. By the end of our fiscal year, more than 1,000 Floridians with disabilities opened accounts, and that number is growing every day. This is thanks to the dedication of advocacy group leaders, businesses, families, and selfadvocates across the state. As the new chair of ABLE United, I look forward to continuing to encourage the disability community to take advantage of the opportunity to save through ABLE United accounts, enhancing financial freedom and building independence. By working together, we can improve the overall quality of life for individuals with a disability and help them achieve a better life experience. Sincerly, JOHN D. ROOD Chairman The future looks bright for individuals with disabilities who wish to fulfill their dreams of working, saving and making a better future for themselves, thanks to ABLE United. DEBORAH LINTON, Executive Director of the Arc of Florida and ABLE United Board Member 3

4 BOARD MEMBERS JOHN D. ROOD, Chairman Ambassador John D. Rood was appointed to the Florida Prepaid College Board by Governor Rick Scott in 2016 and is the current Chairman of the Board. Mr. Rood is the founder and chairman of The Vestcor Companies. He served as United States Ambassador to the Commonwealth of the Bahamas from 2004 until Mr. Rood previously served as a member of the Florida Fish and Wildlife Conservation Commission and the Board of Governors of the State University System. He is on the Board of Trustees of Flagler College and previously served as a board member for Episcopal High School and Teach for America. Mr. Rood received his bachelor s degree from the University of Montana. ANDER CRENSHAW Former Congressman Ander Crenshaw was elected to the U.S. Congress in 2000 and represented Florida in the U.S. House of Representatives for sixteen years. His signature legislation was the passage of the ABLE Act. Prior to serving in Congress, Mr. Crenshaw spent nearly 20 years as an investment banker. He also served as an elected official in the Florida State Legislature, ultimately serving as President of the Florida Senate. Mr. Crenshaw was appointed to Florida ABLE, Inc. Board in 2017 by the Florida Prepaid College Board. He received his Bachelor of Arts degree from the University of Georgia and his Juris Doctorate degree from the University of Florida. PATRICK T. HOGAN Patrick T. Hogan was appointed to the Florida ABLE, Inc. Board by Governor Rick Scott in Mr. Hogan is a Florida attorney and Managing Shareholder of Hogan Legal Services, P.A. In addition to practicing law throughout Florida state courts, Mr. Hogan is a member of the Bars of both the United States District Court for the Southern District of Florida and the United States District Court for the Middle District of Florida and has experience with Social Security Disability (SSDI) cases. He is an IL Registered Certified Public Accountant, as well as a member of the American Institute of CPAs and the Florida Institute of CPAs. Mr. Hogan received a Bachelor s Degree in Business Administration at the University of Notre Dame and graduated from Notre Dame Law School. DEBORAH LINTON Deborah Linton is the Chief Executive Officer of The Arc of Florida, a statewide advocacy and service association for persons with intellectual and developmental disabilities. Ms. Linton has served as the CEO for The Arc of Florida since Prior to her current position, she served as the Assistant Director for The Arc of Florida for 8 years, was previously the Executive Director of Leon ARC for 12 years and served as the Executive Director for Taylor ARC for 5 years. Ms. Linton has 35 years of experience in the field of developmental disabilities. RAY RODRIGUES Ray Rodrigues was appointed to the Florida ABLE, Inc. Board of Directors in Mr. Rodrigues currently works as a Budget Manager for the College of Arts and Sciences at Florida Gulf Coast University as well as a Florida State Legislator for District 76. Mr. Rodrigues previously worked a decade for a corporate component of General Electric where he managed their U.S. Import Compliance program. Mr. Rodrigues has served as an appointee of Governor Jeb Bush on the Lee County Housing Authority, held elected office on the Stoney Brook Community Development District, and served as the Vice- Chair of the Lee County Republican Executive Committee. Mr. Rodrigues earned a Bachelor s Degree from Berry College in Rome, Georgia. I don t know what the future holds for Shaun after college. That s why we opened an ABLE United account. Now, he can save money to buy his own car, get an apartment and become a productive member of society. BRIDGET HAWK, Director of Special Olympics Leon County and parent of a child with cerebral palsy 4

5 FIRST YEAR STATISTICS AVERAGE AGE OF BENEFICIARY: 28 NUMBER OF ACCOUNTS: 1,056 TOTAL CONTRIBUTIONS: $4,032,161 TOTAL WITHDRAWALS: $527,051 ASSETS UNDER MANAGEMENT: $3,659,185 AVERAGE ACCOUNT BALANCE: $3,465 ELIGIBILITY: 4% 23% 41% 32% DISABILITY TYPE: 1% SSI 41% Self-Certify 32% SSDI 23% List of Compassionate Allowances 4% 6% 7% 43% SERVICE PROVIDERS: PROGRAM ADMINISTRATOR BANKING SERVICES 8% 10% Developmental Disability 43% 25% Nervous Disorder 7% Florida ABLE, Inc. (d/b/a ABLE United) RECORDS ADMINISTRATOR Intuition ABLE Solutions, LLC INVESTMENT CONSULTANT Callan, LLC INVESTMENT MANAGERS Wells Fargo CUSTODIAN The Northern Trust Company AUDITOR Carr, Riggs & Ingram, LLC COMMUNICATIONS AND ADVERTISING Intellectual Disability 25% Congenital Anomalies 10% Other 8% Psychiatric Disorder 6% Respiratory Disorder 1% BlackRock, Inc. Florida PRIME The Vanguard Group, Inc. Moore Communications Group St. John & Partners 5

6 FINANCIAL SUMMARY FINANCIAL POSITION YEAR ENDED JUNE CHANGE Assets Current assets $3,329,115 $2,137, % Restricted assets $3,659, Total assets $6,988,300 $2,137, % Liabilities Current liabilities $505,908 $601, % Long-term liabilities Total liabilities $505,908 $601, % ABLE United is a tremendous asset to our families. It opens up a whole world of flexibility and lessens the burden on our state government. I wish it was around 20 years ago. JOHN LANGAN, father to an adult son with an intellectual disorder and ABLE United account holder Net position Net assets unrestricted $2,823,207 $1,536, % Held in trust for individuals $3,659, Total net position $6,482,392 $1,536, % STATEMENT OF ACTIVITIES YEAR ENDED JUNE CHANGE Additions $3,182,939 $3,389, % Deductions ($1,895,921) ($1,853,038) 2.31% Increase in net position $1,287,018 $1,536, % Net position, beginning $1,536, Net position, ending $2,823,207 $1,536, % 6

7 PERFORMANCE INVESTMENT RETURNS (NET OF FEES) INVESTMENT OPTIONS SINCE INCEPTION ASSET DISTRIBUTION ACROSS INVESTMENT OPTIONS: 2.70% 3.04% PREDESIGNED PORTFOLIO OPTIONS Conservative 4.92% Moderate 7.73% Growth 10.85% FUND OPTIONS Money Market Fund 0.89% U.S. Bond Fund -1.29% U.S. Stock Fund 13.59% International Stock Fund 14.64% The investment returns provided were calculated by Callan LLC, the Program s investment consultant, by computing the percentage change in the trust unit value of each Investment Option. The unit values were provided to Callan for computing the investment returns. Under no circumstances is the information contained herein to be used or considered as an offer to sell or a solicitation of an offer to buy a particular investment. The net investment returns are provided for general information only and are not intended to provide investment or other advice. Past performance is no guarantee of future performance. Actual results for future periods could differ significantly from past performance. For more information about the investment options and current Investment Administrative Fees, please review the Program Description and Participation Agreement at % 8.97% US Stock Fund 8.97% International Stock Fund 2.70% US Bond Fund 3.04% Money Market Fund 23.63% 17.62% 23.63% 25.72% Conservative Portfolio 25.72% Moderate Portfolio 17.62% Growth Portfolio 18.32% 7

8 CONNECT WITH US: ABLE (2253) ableunited.com