San Mateo County Historical

“The association's endowment consists of two funds established for a variety of purposes. Its endowment includes both donor-restricted endowment funds and funds designated by the board of directors to function as endowments. As required by u.s. Gaap, net assets associated with endowment funds, including funds designated by the board of directors to function as endowments, are classified and reported based on the existence or absence of donor-imposed restrictions. In accordance with uniform prudent management of institutional funds act ("upmifa"), the association considers the duration and preservation of the fund, donor restrictions and the association's investment policy in making a determination to appropriate or accumulate donor-restricted endowment funds. The board of directors of the association has interpreted california's enacted version of upmifa as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the association classifies as permanent endowment (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 fund that is not classified in permanent endowment is classified as expendable net assets with donor restrictions until those amounts are appropriated for expenditure by the association in a manner consistent with the standard of prudence prescribed by upmifa. From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the level that the donor or upmifa requires the association to retain as a fund of perpetual duration. The association has a policy that permits spending from underwater endowment funds depending on the degree to which the fund is underwater, unless otherwise precluded by donor intent or relevant laws and regulations. There were no such deficiencies for the fiscal year. The association has a policy of annually appropriating the endowment earnings at a rate of 5% of the average investment balance over a one-year period to be made available for operations. In establishing this policy, the association considered the preservation of the endowment assets. Accordingly, the association expects to preserve the endowment assets. This is consistent with the association's objective of the endowment assets held inperpetuity.”

“Us gaap requires management to evaluate the tax positions taken and recognize a tax liability or asset for uncertain positions. Management has concluded there were no such positions. There are currently no audits in progress by federal or state authorities.”