Sea Crest School Inc.

“The school's endowment consists of four individual funds established to further the mission and vision of the school. Its endowment includes 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. Interpretation of relevant law 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 absent explicit donor stipulations to the contrary. As a result of this interpretation, the school 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 as permanent endowment is classified as expendable net assets with restrictions 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 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 attain a rate of return approximating that of a combination of worldwide public equity and bond markets while being sufficiently diversified to minimize the risk of significant permanent impairment of capital. 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 investment objectives all interest, dividends, and capital gains shall be reinvested in the endowment and no distributions shall be made unless the total value of the endowment exceeds $500,000 at the end of a fiscal year. The first fiscal year following the achievement of the threshold, the endowment payout shall be 4% of the value of the endowment as determined at the end of the previous fiscal year. This payout shall be made in two equal payments; the first to be made on september 1 and the second on february 1. Each following year, the endowment payout shall equal the prior year's payout amount plus 5%; provided however, that the payout will in no event be less than 3% or more than 5% of the endowment's value on the prior fiscal year. From t”

“The school is a qualified organization exempt from federal 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 position that more-likely-than-not would not be sustained upon examination by taxing authorities. Management evaluated the school's tax positions 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 taxing authorities. However, there are no examinations in progress nor are there any pending.”

“Ppp loan forgiveness 498,000.”

“Tuition assistance netted against tuition revenue on audit report 736,891.”

“Tuition assistance netted against tuition revenue on audit report 736,891.”