The Phillips Brooks School

“The school's endowment consists of five individual funds established for a variety of purposes, including both donor-restricted endowment funds and funds designated by the board of trustees to function as endowments. As required by u.s. Gaap, net assets associated with endowment funds, including funds designated by the board of trustees to function as endowments, are classified and reported based on the existence or absence of donor-imposed restrictions. The board of trustees have 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 permanent net assets with donor restrictions (a) the original value of gifts donated to the endowment, (b) the original value of subsequent gifts to the endowment, and (c) accumulations to the 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 required to be retained by donor is classified as expendable net assets with donor restriction 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 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 school to retain as a fund of perpetual duration. The school 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 as of june 30, 2022. 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. Endowment assets include those assets of donor-restricted funds that the school must hold in perpetuity or for a donor-specified period(s) as well as board-designated funds. Under this policy, as approved by the board of trustees, the endowment assets are invested in a manner that is intended to produce results that exceed a benchmark comprised of appropriately weighted standard industry indices as determined by the finance and investment committee. Actual returns in the endowment are expected to vary from year to year. 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 a greater emphasis on equity-based investments to achieve its long-term return objectives within prudent risk constraints. Allowable ranges for asset classes are: equities (50-80%), fixed income (20-50%) and alternative investments (0-10%). The school has a policy of appropriating for distribution each year 4% of its endowment fund's average fair value over the prior 12 quarters through the fiscal year-end proceeding the fiscal year in which th”

“The school is a qualified organization exempt from federal income taxes and state franchise taxes under section 501(c)(3) of the internal revenue code ("irc") and section 23701d of the california revenue and taxation code, respectively. Accordingly, the school is exempt from federal and california income taxes and is not liable for federal unemployment taxes. U.s. Gaap requires management to evaluate the tax positions taken and recognize a tax liability (or asset) if the school has taken an uncertain tax position that more-likely-than-not would not be sustained upon examination by taxing authorities. Management has evaluated the school's tax positions taken and concluded that 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 unknown income taxes has been included in the financial statements. The school's tax returns are subject to examination by federal and state tax authorities. However, there are no examinations in progress nor are there any pending.”

“Financial aid awards netted on audited financial statements 978,978.”

“Financial aid awards netted on audited financial statements 978,978.”