Ecole Bilingue DBA Ecole Bilingue De Berkeley

“the school holds funds for the parents' association and student council.”

“The School's endowment consist of two funds. The Ecole Bilingue Endowment Fund (previously known as Silver Jubilee Endowment Fund) and the Fund for Excellence, both established to provide support to the School in perpetuity. The endowments include donor resitrcted endowment funds only. The School will be entitled to receive a distribution of 4% above the inflation rate over the previous 36 month period provided that the distribution is greater than $10,000 per year and does not invade principal. If the distribution is less than $10,000, the investment income will be reinvested to principal. There were no distributions made from the inception of the gift through the year ended June 30, 2017. As required by U.S. GAAP, net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed restrictions. INTERPRETATION OF RELEVANT LAW The Board of Trustees of the School has interpreted California's enacted version of 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 funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the School classifies as permanently 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 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 the standard of prudence prescribed by UPMIFA. In accordance with UPMIFA, the School considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds: (1) The duration and preservation of the fund (2) The purposes of the School and the donor-restricted endowment fund (3) General economic conditions (4) The possible effect of inflation and deflation (5) The expected total return from income and the appreciation of investments (6) Other resources of the School (7) The investment policies of the School RETURN OBJECTIVES AND RISK PARAMETERS The School has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasing power of the endowment assets. The School expects its endowment funds, over time, to achieve a rate of return better than or equal to a net 4% over and above the rate of inflation, as measured by the Consumer Price Index (CPI), of the average market value of the fund computed over the most recent 36 months. Actual returns in any given year may vary from this amount. STRATEGIES EMPLOYED FOR ACHIEVING OBJECTIVES To satisfy its long-term rate-of-return 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 emphasis on fixed income and equity-based investments to achieve its long-term return objectives within prudent risk constraints. SPENDING POLICY AND HOW THE INVESTMENT OBJECTIVES RELATE TO SPENDING POLICY The School has a policy of appropriating for distribution each year as described in the first paragraph. In establishing this policy, the School considered the long-term expected return on its endowment. This is consistent with the School's objective to maintain the purchasing power of the endowment assets held in perpetuity or for a specified term as well as”

“The School is a qualified organization exempt from federal and state income taxes under Section 501(c)(3) of the Internal Revenue Code and Section 23701d of the California Revenue and Taxation Code, respectively. Management evaluated the School's tax position and concluded it maintained its tax exempt status and had taken no uncertain tax positions that would require adjustment to the financial statements. Therefore, no provision or liability for income taxes has been included in the financial statements. The 2013 through 2016 tax years remain subject to examination by the Internal Revenue Service. In addition, the 2012 through 2016 tax years remain subject to examination by the California Franchise Tax Board. However, management is unaware of any pending examinations nor are there any in progress.”

“FINANCIAL AID 3,103,872. net unrealized gain on foreign holdings -1,110.”

“FINANCIAL AID 3,103,872.”