THE TOBACCO TRUST FUND COMMISSION’S ANNUAL REPORT … · 2003-10-31 · Commission Highlights...

THE TOBACCO TRUST FUNDCOMMISSION’S ANNUAL REPORT TO

THE JOINT LEGISLATIVE COMMISSIONON GOVERNMENTAL OPERATIONS

AND THE CHAIRS OF THE HOUSE ANDSENATE APPROPRIATIONS

COMMITTEES

November 1, 2003

CONTENTS

Contents page 2

Letter to the Co-Chairs of theJoint Legislative Commission on Governmental Operations page 3

Letter to the Co-Chairs of the Natural & Economic Resources Subcommittee of the Joint Legislative Commission on Governmental Operations page 4

Letter to the Chairman and Co-Chairs of the SenateAppropriations/Base Budget Committee page 5

Letter to the Co-Chairs of the House AppropriationsCommittee page 6

Letter from the Chairman page 7

Commission Members page 8

Commission History page 9

Commission Highlights page 11

2001-2002 Grants page 12



Operating Statement (FY 03) page 33

Operating Statement (FY 04) page 34

Fiscal Control Audit Report page 35

Contact Information page 36

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November 1, 2003

1080 Mail Service Center, Raleigh, North Carolina, 27699-1080 Phone (919) 733-2160 Fax (919) [email protected] www.tobaccotrustfund.org

The Honorable Marc BasnightCo-Chair, Joint Legislative Commission on Governmental Operations2007 Legislative BuildingRaleigh, NC 27601-2808

The Honorable Jim BlackCo-Chair, Joint Legislative Commission on Governmental Operations2304 Legislative BuildingRaleigh, NC 27601-1096

The Honorable Richard MorganCo-Chair, Joint Legislative Commission on Governmental Operations301 Legislative Office BuildingRaleigh, NC 27603-5925

Dear Senator Basnight and Representative Black and Representative Morgan:

Pursuant to North Carolina General Statute 143-722(a), the Tobacco Trust FundCommission hereby presents a report to the Joint Legislative Commission onGovernmental Operations from the Chairman, J.W. “Billy” Carter, III. As specified inthe legislation, this report contains an update on grant activity and operatingexpenditures.

If we can provide any further information or answer any questions, please do not hesitateto contact us.

Respectfully,

J.W. “Billy” Carter, IIIChairman

November 1, 2003


The Honorable Rex BakerCo-Chair, Natural & Economic Resources Subcommittee of the Joint Legislative Commission on Governmental Operations302-C Legislative Office BuildingRaleigh, NC 27603-5925

The Honorable David HoyleCo-Chair, Natural & Economic Resources Subcommittee of the Joint Legislative Commission on Governmental Operations300-A Legislative Office BuildingRaleigh, NC 27603-5925

The Honorable William OwensCo-Chair, Natural & Economic Resources Subcommittee of the Joint Legislative Commission on Governmental Operations635 Legislative Office BuildingRaleigh, NC 27603-5925

Dear Representative Baker and Senator Hoyle and Representative Owens:

Pursuant to North Carolina General Statute 143-722(a), the Tobacco Trust FundCommission hereby presents a report to the Natural & Economic ResourcesSubcommittee of the Joint Legislative Commission on Governmental Operations fromthe Chairman, J.W. “Billy” Carter, III. As specified in the legislation, this report containsan update on grant activity and operating expenditures.


Respectfully,


November 1, 2003


The Honorable Linda GarrouChairman, Senate Appropriations/ Base Budget Committee627 Legislative Office BuildingRaleigh, NC 27603-5925

The Honorable Walter DaltonCo-Chair, Senate Appropriations/ Base Budget Committee523 Legislative Office BuildingRaleigh, NC 27603-5925

The Honorable Kay HaganCo-Chair, Senate Appropriations/ Base Budget Committee411 Legislative Office BuildingRaleigh, NC 27603-5925

Dear Senator Garrou and Senator Dalton and Senator Hagan:

Pursuant to North Carolina General Statute 143-722(a), the Tobacco Trust FundCommission hereby presents a report to the Chairman and Co-Chairs of the SenateAppropriations/Base Budget Committee from the Chairman, J.W. “Billy” Carter, III. Asspecified in the legislation, this report contains an update on grant activity and operatingexpenditures.


Respectfully,


November 1, 2003


The Honorable Rex Baker The Honorable Debbie ClaryCo-Chair, House Appropriations Committee Co-Chair, House Appropriations Committee302-C Legislative Office Building 302-B Legislative Office BuildingRaleigh, NC 27603-5925 Raleigh, NC 27603-5925

The Honorable James Crawford The Honorable Beverly EarleCo-Chair, House Appropriations Committee Co-Chair, House Appropriations Committee1301 Legislative Building 634 Legislative Office BuildingRaleigh, NC 27601-1096 Raleigh, NC 27603-5925

The Honorable Robert Grady The Honorable William OwensCo-Chair, House Appropriations Committee Co-Chair, House Appropriations Committee302-A Legislative Office Building 635 Legislative Office BuildingRaleigh, NC 27603-5925 Raleigh, NC 27603-5925

The Honorable Wilma Sherrill The Honorable Thomas WrightCo-Chair, House Appropriations Committee Co-Chair, House Appropriations Committee302-D Legislative Office Building 528 Legislative Office BuildingRaleigh, NC 27603-5925 Raleigh, NC 27603-5925

Dear Representative Baker and Representative Clary and Representative Crawford andRepresentative Earle and Representative Grady and Representative Owens andRepresentative Sherrill and Representative Wright:

Pursuant to North Carolina General Statute 143-722(a), the Tobacco Trust Fund Commissionhereby presents a report to the Chairs of the House Appropriations Committee from theChairman, J.W. “Billy” Carter, III. As specified in the legislation, this report contains anupdate on grant activity and operating expenditures.

If we can provide any further information or answer any questions, please do not hesitate tocontact us.

Respectfully,


November 1, 2003


TO: THE JOINT LEGISLATIVE COMMISSION ON GOVERNMENTALOPERATIONS AND THE CHAIRS OF THE HOUSE AND SENATEAPPROPRIATIONS COMMITTEES

The past year has been challenging for all the people of North Carolina as events beyondour control have dramatically changed our lives and our economy. As members of thetobacco family stand-by cautiously, but optimistically awaiting a potential tobaccobuyout, North Carolina’s tobacco economy continues its struggles to survive. Because ofthe vast needs out there, the Tobacco Trust Fund Commission is proud to be helpingfarmers and others develop new crops, new markets and new skills.

This report contains detailed information about our grant making since November 1,2002. We believe that these investments will be important in helping farmers and othereligible workers across the state survive and thrive in a new economy. We regret that,because of the state’s budget shortfall and the resultant loss of $120 million from theTobacco Trust Funds, with a projected loss of $80 million over the next two fiscal years,we were not able to fully realize the mission for which we were established. We arehopeful that in future years the Commission will have the opportunity to play a greaterrole in the redevelopment of our state’s rural economy.

The members of the N.C. Tobacco Trust Fund Commission are grateful for the support ofthe members of the N.C. General Assembly, and are always ready to work with them forthe betterment of North Carolina’s agricultural economy.

Sincerely,

J. W. “Billy” Carter, III Chairman

COMMISSION MEMBERS

BARNES, John C.Spring Hope, NC County-Nash Appointee Officer-President Pro Tem

BOWERS, Lynda G.Sanford, NC County-LeeAppointee Officer-Governor

BOYD, Robert B.Waynesville, NC County-HaywoodAppointee Officer-President Pro Tem

BRITT, Lois G.Mt. Olive, NC County-DuplinAppointee Officer-Speaker of the House

CARTER, J.W. (Billy)III - CHAIRMANEagle Springs, NC County-MooreAppointee Officer-Speaker of the House

HINNANT, David J.Kenly, NC County-WilsonAppointee Officer-Governor

JACOBS, Larry E.Lumberton, NC County-RobesonAppointee Officer-Speaker of the House

JENKINS, William B. VICE-CHAIRMANCreedmoor, NC County-GranvilleAppointee Officer-Governor

JONES, Kenneth W.Pink Hill, NC County-LenoirAppointee Officer-President Pro Tem

KING, Lyle RayAsh, NC County-BrunswickAppointee Officer-Speaker of the House

MCLAWHORN, JohnB. Jr.Hookerton, NC County-GreeneAppointee Officer-Governor

OWENBY, Larry W.Brevard, NC County-TransylvaniaAppointee Officer-Governor

PERRY, Norman Jr.Colerain, NC County-BertieAppointee Officer-President Pro Tem

SMALL, WillardFair Bluff, NC County-ColumbusAppointee Officer-President Pro Tem

SPAULDING, Eric V.Selma, NC County-JohnstonAppointee Officer-Governor

TEAGUE, William H.“Bill”Leicester, NC County-BuncombeAppointee Officer-President Pro Tem

WARD, George W.Jr.Providence, NC County-CaswellAppointee Officer-Speaker of the House

WISE, EarleMarshall, NC County-MadisonAppointee Officer-Speaker of the House

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COMMISSION HISTORY

North Carolina’s share of the Master Settlement Agreement (MSA) was divided intothree different parts. Under the terms of the consent decree in North Carolina, 50% of thefunds are directed to a non-profit corporation, Golden LEAF, to be used for economicdevelopment in tobacco-dependent communities. By statute the remaining 50% isequally divided between two state Commissions. The Health and Wellness Trust FundCommission utilizes their portion for health-related needs. The final portion is allocatedto the Tobacco Trust Fund Commission.

The Tobacco Trust Fund Commission was created on August 2, 2000 by the approval ofHouse Bill 1431. The purpose of the Commission is to assist tobacco farmers, tobaccoquota holders, persons engaged in tobacco-related businesses, individuals displaced fromtobacco-related employment, and tobacco product component businesses in this State dueto the adverse effects of the MSA. Funds can be disbursed through compensatoryprograms and qualified agricultural programs.

Commission membership is made up of 18 people, six appointed by the Governor, six bythe Speaker of the House and six by the President Pro Tem of the Senate. TheCommission met for the first time February 15, 2001 at which the members were giventheir charges and sworn in.

Since November 1, 2002

The Commission had a progressively good year despite setbacks created by the budgetshortfall. The Commission continued the process of monitoring previous grants whileplanning and implementing a grant cycle for the 2003-2004 fiscal year. Another hurdlewas cleared with the adoption and implementation of the Tobacco Trust FundCommission’s permanent rules. For a, the second year in a row, the Commission wasaudited by the State Auditor’s Office without any exceptions being noted.

During the 2001-2002 fiscal year, the Commission had $82 million of its MasterSettlement Agreement funds diverted to the General Fund for use with the budgetshortfall. The following fiscal year an additional $38.9 million was transferred for thebudget shortfall. Currently, the General Assembly is planning on an additional $80million to be taken in 2003-2004 and 2004-2005. All told, approximately $200.9 millionwill have been lost from the Commission’s Fund to meet statutory responsibilities.

The Commission had $4 million available for the 2003-2004 granting cycle. A total of67 grant applications were received, asking for approximately $18 million in grants.Each application was carefully screened by at least three outside reviewers. After acareful process of review, obtaining additional information, and discussion, theCommission voted on September 30, 2003 to approve 22 grants for $4 million aimed atstimulating the economy in parts of the state where tobacco farmers and tobacco workershave lost jobs and are facing economic difficulty. These grants represented agri-

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economic development, diversification initiatives, workforce development andconservation of natural resources.

While the Commission is proud of the selections it made, numerous other good projectshad to be turned away due to lack of funds. The Commission hopes that some additionalfunding will come available in 2004 so that other worthy projects will have anopportunity to assist North Carolina’s struggling agricultural economy.

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COMMISSION HIGHLIGHTS

Since November 1, 2002

• The Commission has met six times with the following actions:• Received and took action from Subcommittee reports.• Listened to presentations by our grantees.• Authorized the 2003-2004 granting cycle.• Approved 22 projects for $4 million in the 2003-2004 granting cycle.• Adopted permanent rules, which included a public hearing.• Adopted policies and procedures.

• The Marketing Center Subcommittee has met one time with the following actions:• Recommended to the Commission approval for a request from the N.C. Rural

Center to fund the Burley Marketing Center a third year for up to $420,000.

• The Grant Review Subcommittee has met four times with the following actions:• Determined the amount of funds, timeline, guidelines and application for the

2003-2004 granting cycle.• Reviewed and recommended to the Commission a list of 22 projects to be funded

for $4 million.

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NC TOBACCO TRUST FUND COMMISSION 2001 - 2002GRANTS

UPDATE

Project: Flue-Cured Tobacco Barn Retrofit Grant

Contact: Flue-Cured Tobacco Cooperative Stabilization Corp.1304 Annapolis DriveRaleigh, NC 27608919-821-4560

Grant Amount: $41.1 million

Help was needed to assist tobacco producers with the retrofit of their flue-curedbulk barns from direct-fired burners to heat exchangers after research revealedthat traditional direct-fired curing methods were increasing nitrosamine levels inthe tobacco. Tobacco-specific nitrosamines are potential carcinogens in cigarettesand tobacco companies wanted tobacco lower in nitrosamines. USDA’sCommodity Credit Corporation determined that, beginning in 2002, the pricesupport loan differentials for flue-cured tobacco cured in barns with direct heatwould be adjusted to a rate half that for tobacco cured in barns with an indirectheat source. Tobacco farmers faced a considerable cut in income. Additionally,the diminished tax value of the non-retrofitted barns would have eroded local taxbases. The Commission recognized that a Qualified Agricultural Program grantallowing the retrofitting of the barns would go a long way to stabilize tobacco-dependent economies and preserve local tax bases. This project benefited 64counties and converted 24,377 barns. The Commission’s initial investmentbenefited the local economies by approximately $62 - 82 million, based onestimated economic impacts of invested dollars provided by Dr. Blake Brown atN.C. State University.

Area Served: Eastern & Piedmont North Carolina – Flue-Cured

Project: NCDA&CS/NCSU Research Stations Barn Retrofit Grant

Contact: Research Stations DivisionNCDA&CSP.O. Box 27647Raleigh, NC 27611919-733-3236

Grant Amount: $168,254

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The funding provided for tobacco barn retrofits of Research Station curing unitsallowed for these units to operate under identical conditions as NC producers.This would not have been possible without this funding as dollars necessary toretrofit the barns through normal appropriated channels was not and has not beenavailable. Forty-three barns were converted at six Stations.

These upgrades have allowed the units on the Stations to be used to continuallymonitor the effectiveness of this retrofit process as it relates to curing and to thereduced accumulation of nitrosamines in cured tobacco.

Research and profitability do not always go hand-in-hand, which is why researchis important. Farmers can’t afford to do research and research can’t afford tofarm. While farmers tend to adopt practices that are deemed necessary as a resultof profit, research requires years of data to substantiate adoptive practices andrecommend these for adoption. While this curing process is the accepted andrecommended practice, the implementation of the retrofits and the subsequentmonitoring of the system and concurrent data collection will be instrumental indetermining the health and fiscal benefits of retrofitting barns.

Area Served: Six Research Stations – Flue-Cured

Project: Burley Marketing Center Grant

Contact: N.C. Rural Economic Development Center& The Agricultural Advancement Consortium4021 Carya DriveRaleigh, NC 27610919-250-4314

Grant Amount: $2.47 million over (3) years

This grant was used to create a pilot marketing center for burley tobacco inAsheville. North Carolina had only two burley auction warehouses left this pastseason. Due to the current tobacco situation, both of these warehouses werelooking at closing prior to the 2002 season. This would have forced our burleyproducers to travel out-of-state to market their crop. At the same time, no tobaccocompany burley receiving stations for contract purposes are located in the state.To help our burley producers save money and put more finances in Western NorthCarolina’s Agricultural Economy; the Commission established this grant as aQualified Agricultural Program. Both of the remaining burley auctionwarehouses in the state are participating in this grant, which has prevented theirclosing and thus prevented the need for N.C. burley farmers to carry their productout of state to market it.

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Last season, the Center auctioned approximately 5 million pounds that accountedfor approximately 65 to 70 percent of North Carolina’s burley tobacco. TheTobacco Trust Fund grant increased tobacco farmer income by $1.4 millionduring the first two years and benefited local economies by approximately $3 – 4million. The average price at the Center was $1.93 per pound and a significantlysmaller percentage of North Carolina burley went to the stabilization pool than forthe overall burley belt (22 percent for North Carolina versus 32 percent belt–wide). The Asheville market was the third largest market in the burley beltfollowing only Lexington and Mt. Sterling in Kentucky. This is a testament to thequality of North Carolina burley tobacco during a very difficult season.

Area Served: Western North Carolina – Burley

Project: Flue-Cured Tobacco Container Corporation Grant

Contact: Flue Cured Tobacco Container CorporationP.O. Box 12004Raleigh, NC 27605919-828-8988

Grant Amount: $2.050 million

To cut handling costs, tobacco manufacturers transitioned from the traditionalburlap sheet wrapping to tobacco baled with cardboard slip-sheet and wire.Historically, the buyer, the warehouseman and the grower had shared the cost ofthe burlap sheet equally, with each paying $.30. The new system placed the entirecost on the grower at a time of rising production costs and sharp tobacco revenuedecline. Growers’ cost-cutting measures placed a further strain on the flaggingeconomic stability of the community. The FCTCC used money from a QualifiedAgricultural Program grant to reimburse farmers up to a half-cent per pound oftobacco marketed in 2002 to help defray packaging supplies. Farmers applied fortheir reimbursement and requests were cross-checked with warehouse and USDA-FSA data. Final data will be available in late fall 2003.

Area Served: Eastern & Piedmont North Carolina – Flue-Cured

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UPDATE**

Project: Tobacco Communities Reinvestment Project

Contact: Betty BaileyExecutive DirectorRAFI-USAPO Box 640Pittsboro, NC 27312919-542-1396


Project will generate up to 40 individual and community cost-share initiatives innine target counties across NC. The objective is to test farm-based initiatives toreplace or supplement tobacco income by diversifying their crops. The projectwill involve approximately 640 individuals.

Area Served: Ashe, Allegheny, Bertie, Edgecombe, Halifax, Martin,Northampton, Pitt, and Columbus

Update: In May, RAFI and TTFC conducted award announcements for 15producer awards and 5 community awards. Some examples of theproducer projects included sheep production, herbs, floralproducts, strawberry transplants, and value added pecans. Someexamples of the community projects included a farmer’s market,by-products into energy, web marketing, and shiitake mushroomproduction. During the summer, RAFI has been conducting sitevisits on those projects. Currently $230,000 of cost shareinvestment has leveraged $550,000 of investment of alternativeagricultural enterprises. Early projections look at 40 new full-timejobs being created with many additional part-time and seasonalpositions becoming available.

Project: Building a Permanent Structure for the Columbus Community Farmer’sMarket

Contact: Irvin Brown Mr. Billy J. Farmer612 Arthur Collier Road County AdministratorBladenboro, NC 28320 Columbus County910-648-4575 111 Washington Street

Whiteville NC 28472910-640-6600

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Project will construct a new, permanent farmer's market. The farmer's market willgive the small farmer supplemental income and diversification opportunities Itwill give consumers an opportunity to buy local produce from the area,stimulating the agricultural economy.

Area Served: Columbus, Robeson, Brunswick, and Bladen

Update: Columbus County has purchased the structure and is in the processof site drawings, permits and site prep work. An additional grantthis year will assist them in completing the project.

Project: Advancing the Stokes Agricultural Community

Contact: County ManagerStokes CountyPO Box 20Danbury, NC 27016336-593-2811


Project will assist tobacco growers and workers in growing and marketingalternative crops. Organization will provide training, financial counseling, andmental health counseling. Pilot project at the county level.

Area Served: Stokes County

Update: In April of this year, the Grantee ended up losing two localproduce contracts with Food Lion and Lowes Foods. The loss wasdue to a business change by the companies on how they purchaseproduce. The Grantee was able to secure two new buyers forStokes County farm products. The Grantee experienced the sameweather setbacks as other farmers in the area. The Grantee iscurrently in the process of working with the new contracts andsecuring additional equipment resources.

Project: North Carolina Hazardous Materials Carrier Authentication Pilot Project

Contact: Stan Crowe Rick WatsonChairperson Executive DirectorMartin Co. Economic Development Northeast Partnershipc/o N.C. Telecenter 119 West Water St.P.O. Box 310 Edenton, NC 27932

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Williamston, NC 27892 1-888-872-8562252-792-2044


Project will help support the location of Transforming Technologies, Inc. toMartin County. Company provides training for hazardous materials truckers andwill provide training and alternate employment for displaced tobacco workers. InMartin County more than 22 percent of families are at poverty level. The projectis expected to create 50 jobs initially and 200 jobs at build-out and provide acapital investment of over $10 million.

Area Served: Statewide including Chowan, Martin, Pitt, and Beaufort

Update: Phase One of the project involved research, development, andlaboratory testing of the technologies and devices to be involved.Phase Two of the project will incorporate actual field testing atselected driver's license issuance stations across the state. Thiswill include utilization of the actual biometric drivers' license byselected freight carriers' drivers with commercial HAZMATlicenses. The implementation of these additional phases will createthe opportunity for new jobs.

Project: Tobacco Transitions: Community Based Economic Renewal, AppalachianSustainable Agriculture Project

Contact: Gary Gumz, DirectorASAP564 Indigo Bunting LaneMarshall, NC 28753828-649-9452


Project will provide direct assistance to 25 burley tobacco growers to helptransition to organic food production systems and develop new local and regionalmarket opportunities for these growers. Also, the project will direct financialassistance to the newly established Mountain Tailgate Market Association thatserves 100 area farmers (including 30 tobacco farmers). Project will also providesupport to Carolina Organic Growers, Inc. to provide marketing opportunities totransitioned organic farmers.

Area Served: Madison and Buncombe

Update: ASAP is continuing their Tobacco Transitions work in the areas ofpreservation, production and promotion. They have been working

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on farmland protection programs, completing site visits for thefarmers selected for the first year of a two-year program forproduction alternatives and distribution of promotional materials toencourage purchasing of local products.

Project: Re-Tooling for Alternative Agricultural Enterprises

Contact: Keith BaldwinNC A&T State UniversityPO Box 21928Greensboro, NC 27420336-334-7957


Project will provide instruction, evidence, and experience in crop productiontechniques by providing training in alternative and specialty crops for tobaccogrowers. The project will provide training on using plastic mulch and irrigationsystems as well as providing a subsidy to 64 growers each year over two years. Itis anticipated that this type of cultivation will yield five times as much as bareground crops.

Area Served: Statewide

Update: Four plastic mulch layers, media filtration system and water wheeltransplanters have been positioned and used in all four designatedregions. In addition, NCA&T staff and extension personnel haveprovided technical assistance. Currently, plans are being made toconduct some workshops on plastic/drip irrigation set-ups. Someplans are being made to utilize the equipment to put in falltransplant beds for some of the participants.

Project: Recovery of Growers Self-Assessment Funds to the NC TobaccoFoundation for the NC Tobacco Research Commission

Contact: Keith OakleyAssistant SecretaryNC Agricultural FoundationNCSUCampus Box 7645Raleigh, NC 27695-7645919-515-2000


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Project will provide research and educational programs to support a competitiveand profitable position for tobacco markets. Research will be directed atimmediate and pressing needs to assist North Carolina’s rural economy. It isestimated that the project will assist 12,000 tobacco growers and related agri-businesses.


Update: The Tobacco Research Commission has authorized the use of thefirst $175,000 to be dedicated to several research projects tocontrol the Tomato Spotted Wilt Virus. The research is ongoing atthis time.

Project: Support for the Transition to Value-Added Agribusiness

Contact: Keith OakleyAssistant SecretaryNC Agricultural FoundationNCSUCampus Box 7645Raleigh, NC 27695-7645919-515-2000


Project will work with farmers to provide agricultural and economic strategiesand transfer technologies such as on-farm diversification and entrepreneurshipthrough hands-on consultation. The project will conduct community meetings toidentify needs and participants, conduct technical and business educationworkshops, and provide individual guidance to farmers piloting the program. Theproject will target 200 families.


Update: Third quarter project efforts have been directed toward identifyingtobacco farmers interested in exploring alternative agribusinessopportunities, finding available resources, and planninginformation sessions for the tobacco segment. These activitieshave been guided by a Steering Committee that includes fourtobacco farmers.

Project: Johnston County Farmer’s Market and Craft Center

Contact: Leroy MooreOwner/Manager 3901 Swift Creek Road

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Smithfield, NC 27577919-934-3657


Project will convert an unused tobacco warehouse to a farmer's market and craftcenter. The project will provide stalls for up to 106 vendors. From a list of 950potential suppliers, 35 have already reserved 55 booths, which would createpotentially 105 full-time jobs. Provides opportunity for area farmers to diversifytheir operation and sell their products. Pilot diversification project for unusedtobacco warehouses.

Area Served: Johnston, Wake, Wilson, Harnett, and Wayne

Update: The project has completed receiving funds from the TTFC and hasthe operations underway. The structure has numerous vendorsselling anything from fresh farm products to arts and crafts. Thefacility initially opened during Memorial Day weekend withapproximately 6,000 customers in attendance. The market iscurrently operating Friday - Sunday. Since opening, the center hasgenerated approximately $220,000 to the local economy inaddition to the benefit of the initial grant and matching funds inconstruction/supply expenditures. Leroy Moore (Manager) hasmet with NCDA&CS Marketing Division specialists to increaseproduct offerings and customer participation. Contracts with theGrantee preserve the Commission’s ability to monitor performanceof the Grant.

Project: Expanding Markets for Organic Tobacco Growers

Contact: Tony KleeseExecutive DirectorCarolina Farm Stewardship AssociationPO Box 448Pittsboro, NC 27312919-542-2402


Project will develop and deliver a workshop series to organic tobacco growers onorganic production and certification with a focus on crops that can be rotated withorganic tobacco, and assist in the development of a grower-owned marketingcooperative for organic farm products. The project will target 20 tobacco growerswho currently grow organic tobacco.

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Area Served: Caswell, Person, Granville, Vance, Alamance, Orange, andDurham

Update: On average, the organic growers represented in the grant wereutilizing less than 20% of their certified organic acres. The 1st Qfocused on jump-starting the process through introductions withgrowers, organic crop production workshops, market research, andmarketing relationship facilitation. The 2nd Q has continued withfollow-through in all of these capacities while also witnessing thebeginning of cultivation of new organic crops.

Project: Equipping Conservation Districts Through Automation and Outreach forGreater Service to Farmers Facing New Environmental Standards andRegulations

Contact: Cecil SettleExecutive DirectorNC Foundation for Soil and Water Conservation Districts2012 Lodestar Dr.Raleigh, NC 27615919-873-2158


Project will minimize impact of farming on natural resources, particularly waterresources, by installing computers in conservation districts, conducting outreachinitiatives to targeted farmers, raising capacity of staff to provide high-techservices, and helping farmers determine nutrient losses on their farms and plan fornutrient management and thus mitigate the effect of farm run off on NorthCarolina water resources. The project will be implemented in at least 75 counties.


Update: The Foundation has ordered 58 Gateway E-4100 desktopcomputers and five Gateway 450E laptop computers with deliveryto district offices targeted at mid-October. The new computers,purchased by the Foundation, will be placed in district offices mostaffected by the coming nutrient management workload. Theoutreach effort, endorsed by the NC Food & Agriculture Council,will include posters, brochures, and other means to inform farmersof technical services available for doing nutrient managementplans. It will be done in partnership with the localDistrict/NRCS/CES team in place to help the agriculturalcommunity. Work is now under way to create hard copy materialsto be used in conducting the outreach initiative.

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Project: Tobacco Grower Communication Assistance

Contact: Graham BoydExecutive Vice PresidentTobacco Growers Association of NC3700 National Drive, Suite 212Raleigh, NC 27612919-781-2307


Project will help provide timely information to tobacco farm families aboutbeneficial opportunities for diversification and grower support, by assisting withpostage costs of 10,000 bi-monthly Tobacco Grower Newsletters and the printingand distribution of the Tobacco Grower Resource Guide.


Update: TGANC has completed the resource guide and membershipportion of the project. The on-going newsletters have successfullyprovided a route to farmers to showcase grants by the TobaccoTrust Fund Commission and the Golden LEAF to educate onpotential alternative crops and other agribusiness opportunities.The publication has also been a very good tool to keep tobaccofarmers aware of activities directly affecting their livelihood likethe critical tobacco buyout.

Project: Hay Relief Grant

Contact: NCDA&CSP.O. Box 27647Raleigh, NC 27611919-733-7125


The purpose of this grant was to assist farmers in North Carolina with locating andobtaining hay as a result of the severe drought. The project was a partnershipbetween the Tobacco Trust Fund Commission, NCDA&CS, NC Farm Bureau, NCState Grange, Carolina Farm Credit, DENR, DOC, DOT and State EmergencyManagement. Over 10,000 round bales were transported over 90,000 deliverymiles assisting 250 farmers to bring much needed feed for their livestock.

http://www.ncagr.com/paffairs/release/2003/2-03hayalert.htm

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Update: see above

** The majority of these grants are still underway.

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Project: Establishing a Life Sciences Revenue Bond Authority

Contact: Charles HamnerNC Association for Biomedical Research1304 Salem LaneChapel Hill, NC 27516(919) 968-1270


Project will assist in establishing a revolving loan program to bring biotechcompanies into the state and create jobs for those no longer employed in tobaccomanufacturing jobs. This project will create a minimum of 20 jobs over five yearsand generate $20 million in capital investment.


Project: Helping NC Farmers Improve Water Quality on their Farms

Contact: Cecil SettleNC Foundation for Soil and Water Conservation Districts2012 Lodestar DriveRaleigh, NC 27615(919) 873-2158


Project will provide cost-share assistance to farmers transitioning from tobaccoproduction or diversifying to additional income-producing agriculturalenterprises. Project will provide up to 75% of the farmers’ cost to implementwater-quality best management practices that prevent pollutants from enteringstreams within the boundaries of their farms.

Area Served: 80 tobacco-producing counties statewide

Project: Tobacco Communities Reinvestment

Contact: Betty BaileyRural Advancement Foundation International–USA (RAFI)PO Box 640

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Pittsboro, NC 27312(919) 542-1396


Project will provide up to 40 individual (up to $10,000) and community (up to$30,000) cost-share initiatives in 14 tobacco-producing counties in order to testfarm-based initiatives to supplement lost tobacco income.

Area Served: Alleghany, Ashe, Bertie, Bladen, Columbus, Gate, Halifax,Hertford, Lee, Moore, Northampton, Robeson, Surry, Yadkin

Project: Further Development of Columbus County Community Farmers Market

Contact: Irvin and Shirley BrownColumbus County Community Farmers Market612 Arthur Collier RoadBladenboro, NC 28320(910) 648-4575


Project will assist with building a new farmer’s market, including parking,vendors spaces, electricity and restrooms, creating 12 to 24 jobs, generating$2,500 to $3,000 in additional vendor sales and providing a centralized locationfor farmers to bring their commodities to sale.

Area Served: Columbus, Bladen, Robeson, Brunswick

Project: Self-Help Screening of Tobacco-Curing Barns for Carbon Dioxide Leaks

Contact: Kenneth BatemanJohnston County Center of the NC Cooperative Extension Service806 North StreetSmithfield, NC 27577(919) 989-5380


Project will educate farmers to use a carbon dioxide meter to screen 1,000 barnsfor combustible gas leaks and check-retrofitted barns for cracked heat exchangers,providing a cost saving of $25,000 to farmers.

Area Served: Johnston (possible pilot)

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Project: Growing the NC Medicinal Herb Industry

Contact: Jeanine DavisNC State University455 Research DriveFletcher, NC 28732(828) 684-3562


Project will provide 10 to 20 tobacco farmers with incentives from $5,000 to$10,000 to grow medicinal herbs, generating gross sales equal to or higher thantraditional tobacco revenues per acre.


Project: Old North State Wine State Business Incubator Winery

Contact: Fred JonesOld North State Winegrowers Cooperative AssociationPO Box 344Mount Airy, NC 27030(336) 789-8200


Project will provide equipment and building renovation funds for the productionof wine. Grapes will be purchased from 50 farmers, including tobacco farmers,with 200 jobs created in the vineyards.

Area Served: Surry, Stokes, Wilkes, Yadkin, Forsyth, Guilford, Davie, Rowan,Nash, Henderson, Alamance, Chatham, Orange

Project: Protecting Providers and the Public

Contact: Norman HarrellNC Cooperative Extension1806 South Goldsboro StreetWilson, NC 27893(252) 237-0111


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Project will conduct training and provide resources to assist farmers and workersabout agricultural machinery highway safety issues to help reduce the more than300 per year farm-related highway accidents.

Area Served: Wilson, Edgecombe, Pitt, Greene, Wayne, Johnston, Nash

Project: Northeast Technology and Business Center Expansion Project

Contact: Stan L. CroweMartin County Economic Development CorporationPO Box 310Williamston, NC 27982(252) 792-2044


Project will renovate and upfit 50,000 square feet of the Northeast Technologyand Business Center to facilitate the growth and expansion of two companiescurrently operating in the NC TeleCenter. The project will help create 250 jobsand leverage $3 million in capital investment.

Area Served: Martin and 16 northeast counties

Project: Northeast Economic Development Diversification Initiatives

Contact: Rick WatsonNC’s Northeast Partnership119 West Water StreetEdenton, NC 279321-888-872-8562


Project will establish the Existing Business and Industry Service Program (todevelop relationships with employers), the NorthEast Region Buyer-SupplierNetwork (to facilitate the purchase of local goods and services), and theNorthEast Tourism Web Portal (to develop an online welcome and informationcenter promoting the Northeast Region).

Area Served: 16 Northeast counties

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Project: Nash Area Farmer’s Market-Permanent Structure

Contact: Wayne MooreNash County120 West Washington Street, Suite 3072Nashville, NC 27856(252) 459-9804


Project will assist with the construction of a permanent building to increasevendor spaces to 22 for area farmers to successfully market produce and products.

Area Served: Nash, Edgecombe, Wilson, Halifax

Project: Tobacco Growers Communication Assistance

Contact: Graham BoydTobacco Growers Association of NC3700 National Drive, Suite 212Raleigh, NC 27612(919) 781-2307


Project will sustain the services of communication information via TGANC’snewsletter, website and resource guide, as well as, develop a study with NCSU onthe impacts of the pending tobacco buyout and distribute the results.


Project: Tar River Tobacco Farmland Preservation

Contact: Jeffrey A. FisherTar River Land Conservancy211 North Main Street, Suite ALouisburg, NC 27549(919) 496-5902


Project will protect 4,000 acres of land valued at $12 million and 24 miles ofstreams by providing an alternative to tobacco farmers wanting to protect their

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farm from development by maintaining their land in an agricultural land base thatpurchases the development rights.

Area Served: Upper Tar River Basin, Granville, Franklin, Nash

Project: “New Generation” Cooperatives – A New Twist on an Old Model

Contact: Charles HallNC Rural Economic Development Center4021 Carya DriveRaleigh, NC 27610(919) 250-4314


Project will fund improvements in the business environment for "new generation"Cooperatives which will lead to new opportunities for producer-owned, value-added businesses. "New generation" cooperatives provide farmers the opportunityto raise the capital to own and operate innovative, value-added businesses whileallowing them to retain control of processing and marketing.


Project: New Start: Successful Transitions for Dislocated Workers throughCommunity-based Solutions

Contact: Anne ScharffNC Rural Economic Development Center4021 Carya DriveRaleigh, NC 27610(919) 250-4314


Project will provide assistance in finding jobs for 440 displaced workers inVance, Wilson and Transylvania counties and build momentum for action througha conference, with hopes to employ 75% of workers within six months.

Area Served: Vance, Wilson, Transylvania, Warren, Franklin, Granville,Buncombe, Henderson; Statewide

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Project: NC Farm Transition Network

Contact: Stephen A. WoodsonNC Farm Bureau Legal Foundation5301 Glenwood AvenueRaleigh, NC 27612(919) 782-1705


Project will connect retired farmers with new farmers by establishing a list serveand provide apprenticeship/mentoring programs for new farmers; as well asprovide business and estate-planning services to retiring farmers and develop alist of professionals who can assist in farm transitions.


Project: Expanded Planning, Production and Marketing Assistance for Organicand Conventional Tobacco Growers

Contact: Tony KleeseCarolina Farm Stewardship AssociationPO Box 448Pittsboro, NC 27312(919) 542-2402


Project will expand the current program to help existing participants improveproduction and marketing of organic crops while recruiting 15 to 19 additionalgrowers.

Area Served: Caswell, Person, Granville, Vance, Alamance, Orange, Durham,Columbus, Moore; Statewide

Project: Water Supply Preservation and Development

Contact: Wayne D. MaloneNeuse Regional Water and Sewer Authority1609-A West Vernon AvenueKinston, NC 28503(252) 527-4800


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Project will design a surface water treatment plant and distribution system topreserve capacity of ground water sources in Lenoir, Greene and Pitt counties.Project will protect and create jobs in water-dependent enterprises and helpmaintain and improve sales in the agricultural sector.

Area Served: Lenoir, Greene, Pitt

Project: Sustaining Far Western NC Farms through Financial Education

Contact: Tammara ColeNC Cooperative ExtensionPO Box 456Cherokee, NC 28719(828) 497-3521


Project will provide 25 farmers in western NC with non-formal training inbusiness financial management, including planning, to give them skills to sustaintheir occupation and families.

Area Served: Cherokee, Cherokee Reservation, Clay, Graham, Jackson, Macon,and Swain

Project: Equipment Upgrade of Tobacco Literature Service

Contact: Keith OakleyNC Tobacco FoundationNCSU Box 7645Raleigh, NC 27695(919) 515-9262


Project will increase the publishing efficiency of Tobacco Abstracts by upgradingthe software and equipment and by moving from print to an electronic format.


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Project: Alternative Mushroom Industry (Black Truffles)

Contact: Keith OakleyNC Agricultural Foundation/Garland TrufflesNCSU Box 7645Raleigh, NC 27695(919) 515-9262


Project will supply 50 farms currently growing one to 20 acres of tobacco with thestock, supplies and expertise to each plant 200 inoculated truffle-bearing trees.


Project: Agriculture Tourism and Crop Diversification Demonstration Program forTobacco-Dependent Communities, Tobacco Farmers and Other Farmers

Contact: Keith OakelyNC Cooperative Extension Service FoundationNCSU Box 7645Raleigh, NC 27695(919) 515-9262


Project will provide seed money to aide western NC farmers with cropdiversification and/or agri-tourism by creating a Mini-Grant DemonstrationProgram to help with financial aid, education, training and marketing. Project willconduct 25 workshops for 200 to 300 farmers and award 50 farmers each a $2,500grant.

Area Served: Western Counties including the Cherokee Reservation

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Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03 Total AmountsCash Carried Forward $8,217,057.92INTEREST INCOME* $113,705.46 $35,126.49 $32,791.32 $31,860.41 $30,445.57 $28,131.81 $27,183.09 $23,848.45 $22,154.46 $21,301.86 $24,856.71 $31,617.34 $423,022.97

TOBACCO SETTLEMENT* {1} {2} $4,300,172.06 $4,300,172.06Total Revenue $113,705.46 $35,126.49 $32,791.32 $31,860.41 $30,445.57 $28,131.81 $27,183.09 $23,848.45 $22,154.46 $4,321,473.92 $24,856.71 $31,617.34 $4,723,195.03

{3}EXPENSES

Personnel ExpensesPer Diem-BD MEM $60.00 $45.00 $120.00 $180.00 $135.00 $240.00 $150.00 $0.00 $390.00 $45.00 $255.00 $15.00 $1,635.00Trans-BD MEM $106.00 $66.50 $376.00 $709.50 $406.50 $261.50 $248.00 $0.00 $824.50 $211.50 $526.50 $10.00 $3,746.50Subsistence-BD MEM $118.00 $88.50 $423.86 $442.26 $327.94 $332.94 $210.22 $0.00 $583.50 $171.85 $499.09 $29.50 $3,227.66Other-BD MEM $0.00 $0.00 $0.00 $210.16 $0.00 $0.00 $27.58 $0.00 $0.00 $24.21 $0.00 $0.00 $261.95

$284.00 $200.00 $919.86 $1,541.92 $869.44 $834.44 $635.80 $0.00 $1,798.00 $452.56 $1,280.59 $54.50 $8,871.11Staff Personnel ExpensesSal, Ins, Ret, SS Bene.** $10,502.27 $6,515.79 $8,830.91 $8,642.53 $8,398.15 $8,715.65 $12,066.75 $11,909.15 $11,225.80 $10,737.04 $10,737.04 $10,248.28 $118,529.36Travel, Exp Acts, Reg Fees, Train. $5.84 $96.68 $135.06 $6.57 $0.00 $619.88 $261.89 $940.98 $159.01 $284.48 $113.68 $327.12 $2,951.19

$10,508.11 $6,612.47 $8,965.97 $8,649.10 $8,398.15 $9,335.53 $12,328.64 $12,850.13 $11,384.81 $11,021.52 $10,850.72 $10,575.40 $121,480.55Office ExpensesRepairs $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Postage Freight & Del*** $359.34 $471.74 $244.11 $422.18 $486.91 $432.74 $65.79 $46.92 $98.21 $63.92 $338.42 $323.37 $3,353.65General Office Supplies $57.17 $73.49 $0.00 $0.00 $10.99 $202.47 $62.05 $0.00 $485.16 $19.21 $7.23 $87.82 $1,005.59Furniture $0.00 $0.00 $0.00 $446.18 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $387.58 $0.00 $833.76Computer Equipment $0.00 $0.00 $74.12 $0.00 $17.76 $5.75 $0.00 $0.00 $0.00 $0.00 $1,776.26 $107.00 $1,980.89Communication/Office Equipment $19.50 $0.00 $1,077.91 $0.00 $30.06 $0.00 $0.00 $0.00 $4.50 $0.00 $4.50 $0.00 $1,136.47Other Administrative Expenses $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $675.00 $0.00 $0.00 $201.60 $0.00 $876.60Telephone Services**** $231.57 $11.05 $203.50 $186.74 $187.58 $138.47 $11.38 $184.63 $460.79 $178.60 $183.08 $401.56 $2,378.95

$667.58 $556.28 $1,599.64 $1,055.10 $733.30 $779.43 $139.22 $906.55 $1,048.66 $261.73 $2,898.67 $919.75 $11,565.91Professional ServicesLegal Services/Office Equip.-DOJ $28,166.90 $0.00 $0.00 $25,870.89 $0.00 $960.68 $24,888.35 $768.45 $0.00 $26,637.72 $0.00 $0.00 $107,292.99Contract Services $5,575.00 $1,803.75 $3,532.50 $12,992.50 $0.00 $440.00 $0.00 $0.00 $0.00 $0.00 $3,545.00 $1,669.00 $29,557.75Misc. $0.00 $8,750.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $8,750.00

$33,741.90 $10,553.75 $3,532.50 $38,863.39 $0.00 $1,400.68 $24,888.35 $768.45 $0.00 $26,637.72 $3,545.00 $1,669.00 $145,600.74Year 2002-2003 Expenses $287,518.31

2002 Granting Cycle $1,359,807.04 $9,440.00 $8,217,057.92Flue-Cured Tobacco Container Corp $184,648.00 $49,500.00 $4,723,195.03Burley Marketing Center $420,000.00 $87,500.00 $287,518.312003 Granting Cycle $4,000,000.00 $147,500.00 $12,652,734.64Out-of-Cycle Grants $627,362.06 $44,090.00 $4,059,460.96TOTAL $6,591,817.10 $175,000.00 $8,593,273.68

$350,000.00 $6,591,817.10FY 02 Designated Interceptions $82,004,511.11 $10,000.00 $2,001,456.58FY 03 Designated Interceptions $38,000,000.00 $112,472.96

{1} December 31, 2002 $9,356,017.67 $250,000.00{2} January 10, 2003 $3,122,649.75 $175,000.00{3} April 16 and 23, 2003 $25,521,332.58 $32,500.00FY 04 Planned Interceptions $40,900,000.00FY 05 Planned Interceptions $40,000,000.00 $5,000.00TOTAL $200,904,511.11 $1,448,002.96

*Interest Income- May vary due to adjusting interest rates & date of deposit.Barn Retrofit $41,090,228.00 **Sal, Ins, Ret, SS Bene.-Some data was not availabe at the time of this report.

Burley Marketing Center $2,050,000.00 $750,000.00 ***Postage Freight & Delv-NCDA&CS keys USPS fees for TTFC. NCDA/NCSU Barn Retrofit $168,254.00 $1,865,352.00 Several months are accumulated before data is entered into NCAS.Hay Relief $5,000.00 $4,063,354.96FCTCC $1,865,352.00 $3,894.002002 Granting Cycle $1,443,002.96 $4,059,460.96TOTAL $46,621,836.96

Carolina Farm Stewardship

Flue-Cured Tob Container Corp.Burley Marketing Center

Other Grants Paid Out

Columbus Co. Farmers Market

Tobacco Trust Fund Commission Operating Statement July 1, 2002 - June 30, 2003 (2002-2003 Fiscal Year)

Cash Carried Forward

Total Grants Paid Out (-)

Encumbered Funds (-)

Stokes County NC Tobacco Foundation

2002 Granting Cycle Paid Out

Current Cash Balance

NC A&T

NC Agricultural Foundation

Data pulled 7/1/02-6/30/03 for this report.

Budget Shortfall Transfers

NC NEP/Martin Co. EDC

Johnston Co. Farmers Market

GRANTS PAID OUT 02-03Barn Retrofit Refund (7/02)

Hay Relief

TOTAL GRANTS PAID OUT

SUBTOTAL

****Telephone Services-Due to billing dates, some data was unavaiable for this report.

Total Revenue 02-03

TOTALGrant Mgmt/Admin

Total Grants Paid Out Since Inception

Encumbered Funds

Total Cash on HandTotal Expenses 02-03 (-)

Tobacco Growers Assoc. of NCNC Foundation for Soil & Water

Appalachian Sustainable Ag.RAFI

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Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Total AmountsCash Carried Forward $8,593,273.68INTEREST INCOME* $31,033.08 $27,657.49 $24,939.71 $83,630.28

TOBACCO SETTLEMENT* $113,767.14 $113,767.14Total Revenue $144,800.22 $27,657.49 $24,939.71 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $197,397.42

{1}EXPENSES

Personnel ExpensesPer Diem-BD MEM $15.00 $0.00 $105.00 $120.00Trans-BD MEM $14.25 $0.00 $265.25 $279.50Subsistence-BD MEM $29.50 $0.00 $244.00 $273.50Other-BD MEM $0.00 $0.00 $0.00 $0.00

$58.75 $0.00 $614.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $673.00Staff Personnel ExpensesSal, Ins, Ret, SS Bene.** $11,261.92 $10,378.68 $10,773.16 $32,413.76Travel, Exp Acts, Reg Fees, Train. $919.36 $80.88 $100.54 $1,100.78

$12,181.28 $10,459.56 $10,873.70 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $33,514.54Office ExpensesRepairs $0.00 $0.00 $0.00 $0.00

Postage Freight & Del*** $60.87 $50.89 $1,156.02 $1,267.78General Office Supplies $0.00 $0.00 $46.55 $46.55Furniture $0.00 $0.00 $507.18 $507.18Computer Equipment $0.00 $124.12 $0.00 $124.12Communication/Office Equipment $0.00 $0.00 $1,063.46 $1,063.46Other Administrative Expenses $5.15 $0.00 $0.00 $5.15Telephone Services**** $11.05 $170.16 $192.24 $373.45

$77.07 $345.17 $2,965.45 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $3,387.69Professional ServicesLegal Services/Office Equip.-DOJ $108.07 $22,290.57 $86.38 $22,485.02Contract Services $4,177.50 $506.25 $0.00 $4,683.75Misc. $0.00 $0.00 $0.00 $0.00

$4,285.57 $22,796.82 $86.38 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $27,168.77Fiscal Year 2003-2004 Expenses $64,744.00

2002 Granting Cycle $1,250,947.65 FY 02-03 FY 03-04 $8,593,273.68Flue-Cured Tobacco Container Corp $175,678.16 $9,440.00 $54,609.39 $197,397.42Burley Marketing Center $420,000.00 $49,500.00 $64,744.002003 Granting Cycle $4,000,000.00 NC Tobacco Foundation $87,500.00 $8,725,927.10Out-of-Cycle Grants $627,362.06 NC Agricultural Foundation $147,500.00 $117,829.23TOTAL $6,473,987.87 Tobacco Growers Assoc. of NC $44,090.00 $8,608,097.87

NC Foundation for Soil & Water $175,000.00 $6,473,987.87FY 02 Designated Interceptions $82,004,511.11 Johnston Co. Farmers Market $350,000.00 $2,134,110.00FY 03 Designated Interceptions $38,000,000.00 Carolina Farm Stewardship $10,000.00FY 04 Designated Interception {1} $900,000.00 Appalachian Sustainable Ag. $112,472.96FY 04 Planned Interceptions $40,000,000.00 $250,000.00 $25,000.00FY 05 Planned Interceptions $40,000,000.00 NC NEP/Martin Co. EDC $175,000.00

TOTAL $200,904,511.11 Columbus Co. Farmers Market $32,500.00 $29,250.00$108,859.39

Flue-Cured Tob Container Corp. $1,865,352.00 $8,969.84$117,829.23

Barn Retrofit $41,090,228.00

Burley Marketing Center $2,050,000.00 *Interest Income- May vary due to adjusting interest rates & date of deposit.NCDA/NCSU Barn Retrofit $168,254.00 **Sal, Ins, Ret, SS Bene.-Some data was not availabe at the time of this report. Hay Relief $5,000.00 ***Postage Freight & Delv-NCDA&CS keys USPS fees for TTFC. FCTCC $1,874,321.84 Several months are accumulated before data is entered into NCAS.2002 Granting Cycle $1,551,862.35 ****Telephone Services-Due to billing dates, some data was unavailable for this report.TOTAL $46,739,666.19

SUBTOTAL

TOTAL

TOTALGrant Mgmt/Admin

Total Expenses 03-04 (-) Stokes County

Tobacco Trust Fund Commission Operating Statement July 1, 2003 - June 30, 2004 (2003-2004 Fiscal Year)

Cash Carried Forward

Total Grants Paid Out (-)

Encumbered Funds (-)Current Cash Balance

NC A&T

Budget Shortfall Transfers

Encumbered Funds

Total

Total Revenue 03-04

2002 Granting Cycle Paid Out

Data pulled 7/1/03-9/30/03 for this report.

Total Grants Paid Out Since Inception

RAFI

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STATE OF NORTH CAROLINAOffice of the State Auditor

Ralph Campbell, Jr.State Auditor

2 S. Salisbury Street20601 Mail Service CenterRaleigh, NC 27699-0601

Telephone: (919) 807-7500Fax: (919) 807-7647

Internet http://www.osa.state.nc.us

AUDITOR’S TRANSMITTAL

The Honorable Michael F. Easley, Governor The General Assembly of North Carolina Members of the Commission, Tobacco Trust Fund William B. Upchurch, Executive Director

This report presents the results of our fiscal control audit of Tobacco Trust Fund for theperiod March 1, 2002 through January 31, 2003. Our work was performed by authority ofArticle 5A of Chapter 147 of the General Statutes and was conducted in accordance withthe standards contained in Government Auditing Standards issued by the ComptrollerGeneral of the United States. The objective of the audit was to gather and evaluateevidence about selected internal control policies and procedures designed to ensurereliable financial accounting and reporting and compliance with finance-related laws,regulations, and contract provisions.

The results of our tests disclosed no significant weaknesses in internal control orsignificant instances of noncompliance or abuse, which require disclosure underGovernment Auditing Standards.

North Carolina General Statutes require the State Auditor to make audit reports availableto the public. Copies of audit reports issued by the Office of the State Auditor may beobtained through one of the options listed in the back of this report.

Ralph Campbell, Jr. State Auditor

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Additional information can be obtained from contacting the staff:

William UpchurchExecutive Director

Amy BissetteAdministrative Officer

1080 Mail Service CenterRaleigh, NC 27699-1080

919.733.2160Fax 919.733.2510

[email protected]

www.tobaccotrustfund.org

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THE TOBACCO TRUST FUND COMMISSION’S ANNUAL REPORT … · 2003-10-31 · Commission Highlights...

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