Boston Lyric Opera Company Inc.

“Blo accounts for uncertainty in income taxes in accordance with asc topic, income taxes. This standard clarifies the accounting for uncertainty in tax positions and prescribes a recognition threshold and measurement attribute for the financial statements regarding a tax position taken or expected to be taken in a tax return. Blo has determined that there are no uncertain tax positions which qualify for either recognition or disclosure in the financial statements at june 30, 2016. However, blo's information returns are subject to examination by the appropriate jurisdictions.”

“Direct special events expense netted with revenues on 990 318,037.”

“Direct special events expense netted with revenues on 990 318,037.”

“Part v, #4 - blo has adopted investment and spending policies for endowment assets. Endowment assets include those assets of donor restricted funds that the organization must hold in perpetuity. Under this policy, as approved by the board of directors, the primary long-term financial objective is to preserve the real (i.e. Inflation adjusted) value of the endowment investment portfolio. This objective is measured on an intermediate and long-term basis (three, five and ten years). The secondary financial objectives are to provide within the parameters of moderate risk; 1) annual income, defined as total return from interest, dividends and appreciation in excess of inflation and; 2) long-term growth of the assets. To satisfy its objectives, blo relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized gains) and current yield (interest and dividends). Blo targets a diversified asset allocation that includes equities and fixed income investments within prudent risk constraints. Blo has adopted an investment spending policy related to its endowment assets that incorporates the transfer of a portion of the value of endowment assets to the operating budget subject to various factors. The spending policy is calculated as follows: in the fourth quarter of each fiscal year (or a ratable amount each fiscal quarter) blo may, under the advisement of the finance committee, transfer to the operating budget an amount equal to the sum of the following: 70 percent of the prior fiscal year's draw 30 percent of 5 percent of the prior fiscal year's average quarterly market value of the endowment fund, inclusive of the endowment fund's pro rata share of investment management and custodial fees, but exclusive of prior years' new gifts 5 percent of the cash contributions (1.25 percent per quarter) for four consecutive quarters beginning with the quarter of receipt in accordance with current state law - the uniform prudent management of institutional funds act, known as upmifa,(adopted by the commonwealth of massachusetts on june 30, 2009) - blo considers the following standards of prudence as it annually reviews the effects of the spending policy detailed above: 1) the policy and preservation of the endowment fund 2) the purposes of blo and the endowment fund 3) general economic conditions 4) the possible effect of inflation or deflation 5) the expected total return from income and appreciation of investments 6) other resources of blo 7) the investment policy of blo”