EXHIBIT (h)(2)
FUND ACCOUNTING SERVICING AGREEMENT
This contract between AHA Investment Funds, Inc., currently comprised of the
Limited Maturity Fixed Income Portfolio, Full Maturity Fixed Income Portfolio,
Diversified Equity Portfolio, and Balanced Portfolio, hereinafter called the
"Funds," and Firstar Trust Company, a Wisconsin corporation, hereinafter called
"FTC," is entered into on this 1 day of Sept., 1994.
WITNESSETH:
WHEREAS, AHA Investment Funds, Inc., is a financial services company
providing investment opportunities through mutual funds to various investors;
and
WHEREAS, the manager has entered into an Investment Advisory Agreement with
the Fund (the "Investment Advisory Agreement") whereby manager has agreed to
make certain payments and pay certain expenses on behalf of the Fund and
portfolios;
WHEREAS, Firstar Trust Company ("FTC") is in the business of providing,
among other things, mutual fund accounting services to investment companies;
NOW, THEREFORE, the parties do mutually promise and agree as follows:
1. SERVICES. FTC agrees to provide the following mutual fund accounting
services to the Funds:
A. Portfolio Accounting Services:
(1) Maintain portfolio records on a trade date + 1 basis using
security trade information communicated from the investment manager on
a timely basis.
(2) For each valuation date, obtain prices from a pricing source
approved by the Board of Directors and apply those prices to the
portfolio positions. For those securities where market quotations are
not readily available, the Board of Directors shall approve, in good
faith, the method for determining the fair value for such securities.
(3) Identify interest and dividend accrual balances as of each
valuation date and calculate gross earnings on investments for the
accounting period.
(4) Determine gain/loss on security sales and identify them as to
short-short, short- or long-term status; account for periodic
distributions of gains or losses to shareholders and maintain
undistributed gain or loss balances as of each valuation date.
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B. Expense Accrual and Payment Services:
(1) For each valuation date, calculate the expense accrual
amounts as directed by the Funds as to methodology, rate or dollar
amount.
(2) Record payments for Fund expenses upon receipt of written
authorization from the Funds.
(3) Account for fund expenditures and maintain expense accrual
balances at the level of accounting detail, as agreed upon by FTC and
the Funds.
(4) Provide expense accrual and payment reporting.
C. Fund Valuation and Financial Reporting Services:
(1) Account for fund share purchases, sales, exchanges,
transfers, dividend reinvestments, and other fund share activity as
reported by the transfer agent on a timely basis.
(2) Apply equalization accounting as directed by the Funds.
(3) Determine net investment income (earnings) for the Funds as
of each valuation date. Account for periodic distributions of earnings
to shareholders and maintain undistributed net investment income
balances as of each valuation date.
(4) Maintain a general ledger for the Funds in the form as agreed
upon.
(5) For each day the Funds are open as defined in the
prospectuses, determine the net asset value of the according to the
accounting policies and procedures set forth in the prospectuses.
(6) Calculate per share net asset value, per share net earnings,
and other per share amounts reflective of fund operation at such time
as required by the nature and characteristics of the Funds.
(7) Communicate, at an agreed upon time, the per share price for
each valuation date to parties as agreed upon from time to time.
(8) Prepare monthly reports which document the adequacy of
accounting detail to support month-end ledger balances.
D. Tax Accounting Services:
(1) Maintain tax accounting records for the investment portfolios
of the Funds to support the tax reporting required for IRS-defined
regulated investment companies.
(2) Maintain tax lot detail for the investment portfolio.
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(3) Calculate taxable gain/loss on security sales using the tax
cost basis designated by the Funds.
(4) Provide the necessary financial information to support the
taxable components of income and capital gains distributions to the
transfer agent to support tax reporting to the shareholders.
E. Compliance Control Services:
(1) Support reporting to regulatory bodies and support financial
statement preparation by making the fund accounting records available
to AHA Investment Funds, Inc., the Securities and Exchange
Commission, and the outside auditors.
(2) Maintain accounting records according to the Investment
Company Act of 1940 and regulations provided thereunder.
2. CHANGES IN ACCOUNTING PROCEDURES. Any resolution passed by the Board
of Directors that affects accounting practices and procedures under this
agreement shall be effective upon written receipt and acceptance by the FTC.
3. CHANGES IN EQUIPMENT, SYSTEMS, SERVICE, ETC. FTC reserves the right
to make changes from time to time, as it deems advisable, relating to its
services, systems, programs, rules, operating schedules and equipment, so long
as such changes do not adversely affect the service provided to the Funds under
this Agreement.
4. COMPENSATION. FTC shall be compensated for providing the services set
forth in this Agreement in accordance with the Fee Schedule attached hereto as
Exhibit A and as mutually agreed upon and amended from time to time.
5. PERFORMANCE OF SERVICE. FTC shall exercise reasonable care in the
performance of its duties under the Agreement. The AHA Investment Funds, Inc.
agrees to reimburse and make FTC whole for any loss or damages (including
reasonable fees and expenses of legal counsel) arising out of or in connection
with its actions under this Agreement so long as FTC acts in good faith and is
not negligent or guilty of any willful misconduct.
FTC shall not be liable or responsible for delays or errors occurring
by reason of circumstances beyond its control, including acts of civil or
military authority, natural or state emergencies, fire, mechanical breakdown,
flood or catastrophe, acts of God, insurrection, war, riots or failure of
transportation, communication or power supply.
In the event of a mechanical breakdown beyond its control, FTC shall
take all reasonable steps to minimize service interruptions for any period that
such interruption continues beyond FTC's control. FTC will make every reasonable
effort to restore any lost or damaged data and the correcting of any errors
resulting from such a breakdown will be at the expense of FTC. FTC agrees that
it shall at all times have reasonable contingency plans with appropriate
parties, making reasonable provision for emergency use of electrical data
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processing equipment to the extent appropriate equipment is available.
Representatives of the Funds shall be entitled to inspect FTC's premises and
operating capabilities at any time during regular business hours of FTC, upon
reasonable notice to FTC.
This indemnification includes any act, omission to act, or delay by FTC
in reliance upon, or in accordance with, any written or oral instruction it
receives from any duly authorized officer of the Funds.
Regardless of the above, FTC reserves the right to reprocess and correct
administrative errors at its own expense.
6. NO AGENCY RELATIONSHIP. Nothing herein contained shall be deemed to
authorize or empower FTC to act as agent for any other party to this
Agreement, or to conduct business in the name of, or for the account of, any
other party to this Agreement.
7. OWNERSHIP OF RECORDS. All records prepared or maintained by FTC on
behalf of the Funds remain the property of the Funds and will be surrendered
promptly on the written request of an authorized officer of the Funds.
8. CONFIDENTIALITY. FTC shall handle in confidence all information
relating to the Funds' business, which is received by FTC during the course
of rendering any service hereunder.
9. DATA NECESSARY TO PERFORM SERVICES. The Funds or its agent, which may
be FTC, shall furnish to FTC the data necessary to perform the services
described herein at times and in such form as mutually agreed upon.
10. NOTIFICATION OF ERROR. The Funds will notify FTC of any balancing
or control error caused by FTC within three (3) business days after receipt
of any reports rendered by FTC to the Funds, or within three (3) business
days after discovery of any error or omission not covered in the balancing or
control procedure, or within three (3) business days of receiving notice from
any shareholder.
11. ADDITIONAL SERIES. In the event that the AHA Investment Funds, Inc.
establishes one or more series of shares with respect to which it desires to
have FTC render accounting services, under the terms hereof, it shall so
notify FTC in writing, and if FTC agrees in writing to provide such services,
such series will be subject to the terms and conditions of this Agreement, and
shall be maintained and accounted for by FTC on a discrete basis.
12. TERM OF AGREEMENT. This Agreement may be terminated by either party
upon giving ninety (90) days prior written notice to the other party or such
shorter period as is mutually agreed upon by the parties. However, this
Agreement may be replaced or modified by a subsequent agreement between the
parties.
13. DUTIES IN THE EVENT OF TERMINATION. In the event that in connection
with termination a Successor to any of FTC's duties or responsibilities
hereunder is designated by AHA Investment Funds, Inc. by written notice to
FTC, FTC will promptly, upon such termination and at the expense of AHA
Investment Funds, Inc., transfer to such Successor
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all relevant books, records, correspondence and other data established or
maintained by FTC under this Agreement in a form reasonably acceptable to AHA
Investment Funds, Inc. (if such form differs from the form in which FTC has
maintained the same, AHA Investment Funds, Inc. shall pay any expenses
associated with transferring the same to such form), and will cooperate in
the transfer of such duties and responsibilities, including provision for
assistance from FTC's personnel in the establishment of books, records and
other data by such successor.
14. CHOICE OF LAW. This Agreement shall be construed in accordance with
the laws of the State of Wisconsin.
IN WITNESS WHEREOF, the due execution hereof on the date first above
written.
ATTEST: Firstar Trust Company
/S/ Xxxxxx Xxxxx By /S/ Xxxxx X. Xxxxx
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ATTEST: AHA Investment Funds, Inc.
/S/ Xxxxx X. Xxx by /S/ X.X. Xxxx, Secty.
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