Biola University Inc.

“Biola (or it's designated individual) is named as administrator or successor trustee on testamentary gifts (estates or revocable living trusts). When the agreement matures upon the death of the grantor, Biola assumes its fiduciary role to marshal assets, pay expenses, and distribute beneficiary payments. The administration of each arrangement may last several years until all distributions are made and the accounts are closed.”

“The endowment earnings are used to underwrite the programs and administration of the University, with specific appropriations made to student aid, academic programs, and facility maintenance. Schedule D, Part V, Lines 2a-2c: In accordance with the principles of FASB ASU 2016-14 (ASC 958), the organization has implemented required changes to its audited financial statements for the period ended 06/30/2020. To date, Schedule D has not been updated to reflect changes made by this standard. Thus, we have reported the revised net asset categories from the audited financial statements as follows on Form 990, Schedule D, Part V, Lines 2a-2c: Line 2a - Without donor restrictions Line 2b - With donor restrictions”

“The University follows guidance that clarifies the accounting for uncertainty in tax positions taken or expected to be taken in a tax return, including issues relating to financial statement recognition and measurement. This guidance provides that the tax effects from an uncertain tax position can only be recognized in the financial statements if the position is more-likely-than-not to be sustained if the position were to be challenged by a taxing authority. The assessment of the tax position is based solely on the technical merits of the position, without regard to the likelihood that the tax position may be challenged. The University is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code, though it is subject to tax on income unrelated to its exempt purpose, unless that income is otherwise excluded by the Code. The University has also been recognized by the California Franchise Tax Board as exempt from California franchise and income taxes under Section 23701d of the California Revenue and Taxation Code. The University has processes presently in place to ensure the maintenance of its tax-exempt status; to identify and report unrelated income; to determine its filing and tax obligations in jurisdictions for which is has nexus; and to identify and evaluate other matters that may be considered tax positions. The University has determined that there are no material uncertain tax positions that require recognition or disclosure in the financial statements.”

“Student financial aid netted with tuition revenue -65,844,714. Additional expenses netted against investment income -574,778.”

“Additional rent expense -4,959. Special event expense -3,055. Other -35,846.”

“Rent expense 4,959. Special event expense 3,055. Other 35,846.”

“Student financial aid netted with tuition revenue 65,844,714. Other rental expenses netted against revenue 574,777. Asset Retirement Obligation amortization 84,357.”