Becker College

“The college's endowment consists of individual donor restricted funds established for a variety of purposes. Its endowment includes donor restricted endowment funds. As required by generally accepted accounting principles, net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed or legal restrictions. Endowment funds include invested gifts and cash. As required by generally accepted accounting principles, the college classifies as donor restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment funds is classified as expendable net assets with donor restrictions until those amounts are appropriated for expenditure by the college in a manner consistent with the standard of prudence prescribed by state law. In accordance with the uniform prudent management of institutional funds act, the college may consider the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds: the duration and preservation of the fund; the purposes of the college and the donor-restricted endowment fund; general economic conditions; the possible effect of inflation and deflation; the expected total return from income and the appreciation of investments; other resources of the college; and the investment policies of the college. The college has adopted investment and spending policies for its endowment assets that attempt to provide a predictable stream of funding for its programs while seeking to maintain the purchasing power of the endowment assets. Under this policy, as approved by the board, the endowment assets are invested in a portfolio of debt and equity securities with the objective of achieving long-term capital appreciation while moderating the level of investment risk. Actual returns in any given year may vary from this amount. To satisfy its long-term rate-of-return objectives, the college relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest, dividends and net rental income). The college has invested in debt and equity securities that target a diversified asset allocation that places a greater emphasis on equity-based investments to achieve its long-term return objectives within prudent risk constraints. The college has a policy of appropriating for distribution, as needed, amounts for the purposes of scholarships and financial aid, capital projects, and special programs. In establishing this policy, the college considered the long-term expected return on its endowment. This is consistent with the college's objective to maintain the purchasing power of its endowment. From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the level that the donor imposed restrictions require the college to retain as a fund of perpetual duration. The college may appropriate for expenditure from these underwater endowment funds in accordance with the prudent measures prescribed by state law. As of june 30, 2021, funds with an original gift value of $2,000 were underwater by $426.”

“Unrealized gain on interest rate swap agreement 183,036.”

“Financial aid 26,731,897.”

“Loss on liquidation 3,224,056.”

“Financial aid 26,731,897.”