The Felicia Penzell Weber Jewish Community High School Inc.

“The school's endowment consists of four individual funds established for a variety of purposes. Its endowment includes both donor-restricted endowment funds and funds designated by the school to function as endowments.the school's board of directors has interpreted the uniform prudent management of institutional funds act (upmifa) as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment finds absent explicit donor stipulations to the contrary. As a result of this interpretation, the school classifies as permanently restricted net assets (1) the original value of gifts donated to the permanent endowment, (2) the original value of subsequent gifts to the permanent endowment, and (3) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument. The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the school in a manner consistent with applicable laws. In accordance with upmifa, the school considers the following factors in making a determination to appropriate or accumulated donor-restricted endowment funds: 1)the duration and preservation of the fund 2)the purpose of the school and the donor-restricted edndowment 3)general economic conditions 4)the possible effect of inflation and deflation 5)the expected unrealized appreciation/depreciation of the investments 6)other resources of the school 7)the investment policy of the schoolthe school has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by the endowment funds while seeking to maintain the purchasing power of the endowment assets. Endowment assets included those assets of donor-restricted funds that the school must hold in perpetuity or for donor-specified periods as well as school designated funds. Under this policy, as approved by the board of directors, the endowment assets are invested in a portfolio comprised of mutual funds. To satisfy its long-term objectives, the school relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). The school targets a diversified asset allocation that places more emphasis on fixed income securities than equity securities to achieve its long-term return objectives within prudent risk constraints.endowment net asset composition by type at june 30, 2015: temporarily permanently unrestricted restricted restricted totaldonor-restricted $76,036 $1,611,670 $1,687,706school-restricted total funds $76,036 $1,611,670 $1,687,706the changes in endowment net assets are as follows for the year ended june 30, 2015: temporarily permanently unrestricted restricted restricted totalbeginning of year $144,651 $50,572 $496,064 $791,287prior period adjustment (144,651) 124,651 ( 20,000)contributions 1,016,437 1,016,437 unrealized gains 25,464 (22,082) 3,382investment fees (3,400) (3,400)end of year $76,036 $1,611,670 $1,787,706”

“The school has been recognized as exempt from federal and state income taxes under internal revenue code section 501(c)(3) and similar state statutes. It has open tax years from 2012 through 2015.”

“Change in value of derivative $154220 change in value of split interest agreem $136938”