San Francisco Day School

“The school's endowment consists of 20 individual funds established for a variety of purposes, some of which include donor-restricted funds. As required by us 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. Interpretation of relevant law: the board of trustees has interpreted california's enacted version of uniform prudent management of investment funds act (upmifa) as requiring the preservation of the fair value of the original gift as of the gift date, 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 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. 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. The school aspires its endowment funds, over time, to provide a moderate rate of return, consistent with the investment policy. 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 a greater emphasis on equity-based investments to achieve its long-term return objectives within prudent risk constraints. Spending policy and how the investment objective relates to spending policy: the school has a policy of appropriating for distribution each year 4.50% of its endowment fund's average fair value over the prior twelve quarters. On individual endowment funds where the market value has decreased below cost, the school's policy is to distribute only investment earnings. In establishing this policy, the school considered the long-term expected return on its endowment. Accordingly, over the long term, the school expects the current spending policy to allow its endowment to grow at an average of 2% annually, consistent with the investment policy. 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 to provide additional real growth through new gifts and investment return.”

“Income taxes the school is a qualified organization exempt from federal and state income taxes under 501(c)(3) of the internal revenue code (irc) and 23701d of the california revenue and taxation code, respectively. The school has adopted the accounting standard on accounting for uncertainty in income taxes, which prescribes a recognition threshold and measurement attribute for the consolidated financial statement recognition and measurement of a tax position taken, or expected to be taken, in a tax return and requires the affirmative evaluation that is more-likely-than-not, based on the technical merits of a tax position, that an organization is entitled to economic benefits resulting from tax positions taken in income tax returns. For tax-exempt entities, favorable tax status itself is deemed to be an uncertainty, as events could potentially occur to jeopardize their tax-exempt status. If a tax position does not meet the more-likely-than-not recognition threshold, the benefit of that position is not recognized in the consolidated financial statements. The school's evaluation on june 30, 2015, revealed no tax positions that would have a material impact on the consolidated financial statements. The 2011 through 2014 tax years remain subject to examination by the internal revenue service. In addition, the 2010 through 2014 tax years remain subject to examination by the california franchise tax board. The school does not believe that any reasonably possible changes will occur within the next twelve months that will have a material impact on the consolidated financial statements.”

“Financial aid 1,709,519. Aftercare expenses, shown net on financial statements 428,874.”

“Financial aid 1,709,519. Aftercare expenses, shown net on financial statements 428,872.”