HomeMy WebLinkAbout23 SBVC Foundation - 2 of 2 - Visual Art/ArchitectureApplicant / Organization
San Bernardino Valley College Foundation
701 S. Mt. Vernon Ave.
San Bernardino, CA 92410
(909) 394 -8987 (office)
(
Non - Profit ID No. 23- 7321533
www.sbvcfoundation.org
Number of years in existence: 43
Contact Person
Program:
Judy Zak
Associate Professor, Architecture &
Environmental Design
(909) 387 -1609 office
(
yasiorgensen @yahoo.com
iiorgens @sbccd.cc.ca.us
RECEIVED -CITY CI-ER,
2017 FEB 15 PM 3: SFr
Fiscal / Foundation:
Karen Childers
5n
Executive Director, SBVC Foundation
(909) 384 -8987 office
(
kchilder@valleycollege.edu
Program Category Under which Support is Requested:
Visual Art
IV. Period of Support Requested:
From July 1, 2017 through June 30, 2018
Amount of Grant Requested: $7,050
Total Organizational Budget for current fiscal year: $627,500
Percent of total Organizational Budget Requested: 1.1%
V. Project Description / Need Statement
The San Bernardino Valley College Foundation proposes the design, printing and distribution of 5,500
Activity Books to be provided to third graders in the San Bernardino City Unified School District
(SBCUSD) and service area, as well as to patrons of the San Bernardino Symphony.
The activity book will be 24 pages, 8 % x 11, with color covers and black and white interactive pages
featuring arts and cultural resources within San Bernardino. Funds will be used for production and
printing costs. The intent of this project is to strengthen awareness by local youth of music, arts,
architecture, culture, and beautiful physical features of their community.
Activity pages will include but are not limited to:
• Stub Hub — features the ticket booth at the California Theater— activity coloring by numbers and
solving math problems presented on tickets
Tic — Tac Tower— features a graphic on the interior box seating area and line abstractions from
the architectural columns and rail — activity includes coloring page and interactive games for
students
Connect the Dots — features a Harp with strings an instrument used in the San Bernardino
Symphony — the activity connects numbers from 1 to 81 in a specific sequence
• Chandelier - features the architectural detail of the California Theater main chandelier — the
activity involves students linking graphics of bulbs to replace broken bulbs in the chandelier
• Principal Cellist - Ana Maria Maldonado — is featured with a musical pattern of notes that need
to be drawn in as a part of the activity
• Frank Fetta — San Bernardino Symphony Orchestra Maestro is featured with a unscramble the
letters activity complementing his distinctive profile
• Orchestra Organization — The graphic layout of the orchestra instruments is presented, the
activity is a letter unscramble to identify the instruments
• Percussion - a graphic of a drum is presented framing a group of hidden words for the student
to identify
• Trumpet —a maze of tubing with brass facts of length of tubing and relation to car is available
for coloring and tracking by the student
• Keyboard Crossword — a musical vocabulary of words and phrases are presented to deciphered
by the student and placed in the crossword puzzle
• Artistic hand tiles — an architectural feature of the San Bernardino Community College
Auditorium are featured in this activity where students are asked to investigate and identify the
differences between two very similar tiles.
• Geometry of Designs — ceiling details of the SBVC Auditorium are presented and students are
asked to search out and identify the geographic shapes
• Arch Details — historic auditorium lobby arches are presented in a color by number activity
• Autographs — a page framed with baroque elements is presented to encourage students who
visit the California Theater performance of the San Bernardino Symphony or when artists visit
the school sites they may acquire autographs
Additional pages will be designed by students of San Bernardino Community College District
Architecture and Environmental Design program under the assistance of Judy Zak Jorgensen. Students
have already met with Dr. Anne Viricel, Executive Director of the San Bernardino Symphony, and have
her endorsement and support of the project. From the SBCUSD Department of Visual and Performing
Arts (Elementary Instruction), Bonnie Schaab emailed Judy Zak in January 2017 to request activity books
for all third grade students in the district. Professor Zak has also spoken with one private elementary
school in San Bernardino that has requested activity books for their students.
The key players involved in the success of this project are:
Students of San Bernardino Valley College — Architecture & Environmental Design Program
• Six (6) SBVC Architecture & Environmental Design students will benefit from the investigation of
community to identify and select additional cultural features of the San Bernardino community.
These students will take these selections and develop them into age level appropriate activities
for the third grade audience. They will be designing these with intent of developing the arts and
cultural awareness of the students as well as their families. The six SBVC students will also
benefit from the ability to include this 'project' as a part of their portfolio and accomplishment
of a community contribution.
San Bernardino Symphony Association
• The activity books will directly support the outreach and community awareness of musical arts
and the resources within the community.
San Bernardino Unified School District
2
• The students and faculty of all schools will benefit from activity book as a resource to support
arts education which are severely underfunded. This resource can be used in and out of the
classroom and is open to a great many applications. The teachers will be able to integrate this
into the curriculum of community, math, and English through the diverse activities provided.
The emphasis of the additional pages will be to encourage educational advancement. One of the
activities may be a branching of many alternative educational pathways available in the San Bernardino
region. The awareness of government by featuring the architecture of the San Bernardino City Hall, the
Historic Post Office and the many other resources within the area.
NEEDS within our area. This project supports and encourages education and strengthens awareness and
knowledge of the many branches of the arts. In addition, the project highlights the architectural, artistic,
and musical treasures in our community. The best place to start is with the youth as a target group.
The core of this project is education.
VI. Realistic number of persons expected to benefit from this program: 5,500
Number of persons paid by attendance: 0
Number of persons admitted by no fee: 5,500
Number of classes and /or performances scheduled / length of display: Six (6)
Architecture & Design students contribute their work to activity book which will be
distributed to 4,500 SBCUSD third graders, 500 San Bernardino Symphony patrons, and
500 private school students /community youth in San Bernardino.
Total attending classes / performances / displays / exhibits: 5,500
VII. Intended Results
Target Group
Elementary students in San
SBVC students
San Bernardino
Bernardino
Symphony patrons
Time Frame
Some foundational work
Some foundational
7/1/17 — 6/30/18
has already started. The
work has already
primary focus period will be
started. The primary
July 2017 through June
focus period will be
2018
July 2017 through June
2018
Number of
4,500 activity books will be
6 SBVC students in
500 activity books will
Performances,
distributed to SBCUSD third
Architecture &
be given to the San
Classes, Exhibits
grade students. 500 activity
Environmental Design
Bernardino Symphony
etc.
books will be distributed to
will create activities,
for distribution to their
elementary students in
draw, design, and help
patrons
private schools in San
put together the
Bernardino.
activity book.
Anticipated
Participants would include
6 SBVC students
500 San Bernardino
maximum
5,000 elementary students
preparing the activity
Symphony patrons
audience,
receiving the activity book
book
participants etc.
at their school. Teachers,
families, and others within
the system will also benefit.
VIII. Project Budget
Project expenses
Line Item
Brief Description of each line item
Total Budget per
Total amount
Expenses
$352.50
line -item for this
requested from FAC
project
FTES (full -time
Cost to provide instruction to
6 students @ $1,150
$0
equivalent
SBVC students is $4,600 for 1 full-
for 3 units = $6,900
student) Cost
time student (12 units)
Salary / Wages
Stipend for SBVC students working
$200 -$600 to up to
$3,000
on this project. $200 -$600
6 students
depending on volume of work
contributed. If the full stipend
amounts are not awarded,
remaining funds will be used to
print more books.
Printing
Set up and printing for 5,500
5,500 books @
$ 4,000
activity books.
$0.73 per book =
• Color cover inside and out
$4,015
printed on 11 x 17 high gloss
heavy weight cover stock = 4
finished pages
• Black and white printed on 11
x17 standard weight paper =
20 finished pages
• Finished Activity will consist of
24 pages measuring 8 % x 11
folded and center stapled.
Supplies and
High quality flash drives for data
$50
$50
Materials
storage.
Travel
Mileage from one project site to
Estimated 100 miles
$0
add to activity book
@$0.535 per mile =
$53.50
Administrative
Cost to manage grant funds and
$352.50
$0
expenses
reporting
TOTAL
$14,371
$7,050
EXPENSES AND
AMOUNT
REQUESTED
Other sources of funding for this project
Name of funding source
Amount committed to this project
SBVC general fund
$6,968.50
SBVC Foundation
$352.50
TOTAL AMOUNT $7,321.00
IX. Future Objectives
The activity book project is an efficient and effective way to reach out to the youth of San
Bernardino. It also helps local college students and shares a fun resource with the public.
Future objectives include continuing to make the book available to elementary students in
San Bernardino, and continuing to provide the opportunity to SBVC students to update and
enhance the content of the book. Professor Zak will continue to work with the San
Bernardino Symphony and SBCUSD to make the book relevant to its intended target
audience. Professor Zak will also continue to use local architecture as a learning tool with
SBVC students. The overarching goals of the project are to increase awareness of art in San
Bernardino, and to inspire future college students who may decide to study music, art, or
architecture and design.
If funding is not received, Professor Zak will continue to teach college students as previously
stated, but new editions of the activity book may not be able to be printed. The San
Bernardino Symphony, San Bernardino City Unified School District, and San Bernardino
Valley College economic resources are very limited, and funding alternatives are not known
at this time.
X. Provide a brief history / background of your organization / school project(s). (What you have
done before in this category of the arts.)
This project originated as a thank you to the San Bernardino Symphony who has generously
provided cultural opportunities to SBVC students to experience the historic theater at an
actual performance event. Dr. Anne L. Viricel has approved the minor modifications and
the expansion of the book content and scope of purpose.
The first activity book featured architectural details and abstractions from the California
Theater and the Valley College Auditorium as well as other historically significant structures
in San Bernardino. The San Bernardino Symphony Orchestra was featured via artists,
organization and instruments. The book itself was the creation of a visual art abstracted
from the physical features of the cultural location. The organization and provision of the
activities encouraged students to pursue and apply artistic enhancements to the pages
provided.
San Bernardino Valley College has an active and ongoing presence in the area for over 90
years. The Architecture and Environmental Design program has been an important part of
this presence. Architectural History is one of the courses offered as a part of the program as
well meeting a humanities course for the associate of arts degree and associate of science
degrees. Developing community awareness and the ability of students to connect and apply
their learning is a desired outcome of the Architectural History course. While San
Bernardino area and region is not directly mentioned in the texts, the faculty of these
courses require site visits. It is very difficult to get students to the same place at the same
time out of 'class' especially with online courses. The California Theater is one of our
special gems within the City. Touring an empty theater is a little interesting, but
experiencing an architecturally and historically significant location in action is truly the best.
The San Bernardino Symphony has made this possible over the last 10 years to SBVC
Architecture & Environmental Design students at a cost they can afford.
5
The original activity book prepared two years ago was done as a thank you to the San
Bernardino Symphony who has provided students with thousands of opportunities. The
book was produced and well received by the community. The San Bernardino City Unified
School District asked if they could get additional copies of this document. There are some
minor printing errors that should be corrected, and with a request for this many copies we
want to improve. Adding a few additional pages will broaden and enrich this activity book
as an educational tool and resource focused on the San Bernardino Arts and Culture.
In January 2017, Bonnie Shaab of SBCUSD reached out via email on behalf of teachers and
administrators who were interested in providing the activity book to all SBCUSD third
graders. Professor Judy Zak has been in communication with SBCUSD since that time.
Established in March 1973, the San Bernardino Valley College Foundation ( "Foundation ") is
a nonprofit, 501(c)(3) organization whose purpose is to support San Bernardino Valley
College. The Foundation's mission and vision are as follows:
Vision: The San Bernardino Valley College Foundation sustains and promotes the legacy of
San Bernardino Valley College in our community.
Mission: The San Bernardino Valley College Foundation is a fundraising organization
committed to the stewardship of assets and the development of relationships to advance
the vision of San Bernardino Valley College.
The Foundation is governed by a Board of 27 Directors and has assets of approximately $3.7
million. The Foundation has experience managing grant- funded projects from SoCal Gas,
Edison International, the San Manuel Band of Mission Indians, the Foundation for California
Community Colleges, Walmart, and others.
XI. Attach a copy of your last fiscal year report, audited or unaudited. This does not apply to
schools or parks. Failure to submit this will result in rejection of your application.
Audited financial statements for the 2015 -2016 fiscal year are attached at the end of this
grant application packet.
CERTIFICATION:
Project Officer:
Telephone No: Email Address: Address: r,) .4 r
Title:
Cell Phone No.: Date: ]. ! a$
0
List Board of Directors and Officers (does not apply to parks and schools). Include names addresses and
telephone numbers.
Directors and Officers are listed below. Officers consist of the Foundation President, Vice President,
Secretary, and Treasurer.
NOTE: The majority of SBVC Foundation Directors are alumni of San Bernardino Valley College. Alumni
are noted with the names of the Directors below.
Mr. Richard (Rich) Beemer (SBVC alumnus)
Foundation President
Mr. Brian Townsend
Foundation Vice - President
Mr. Scott Stark
Foundation Treasurer
Ms. Diana Rodriguez
Foundation Secretary
President, San Bernardino Valley College
701 South Mt. Vernon Avenue
San Bernardino, CA 92410
Office: (909) 384 -8298
Mr. Dennis Baxter (SBVC alumnus)
Ms. Lois J. Carson (SBVC alumna)
Mr. Nick DePasquale
Ms. Eloise Gomez Reyes (SBVC alumna)
Assemblymember, CA 47
Ms. Gloria Macias Harrison (SBVC alumna)
SBCCD Trustee
Ms. Patricia Hinojosa (SBVC alumna)
Ms. Barbara McGee
City Clerk
City of Rialto
290 W. Rialto Avenue
Rialto, CA 92376
Office: (909) 820 -2519
Sheriff John McMahon (SBVC alumnus)
San Bernardino County Sheriff
655 East Third Street
San Bernardino, CA 92415
Office: (909) 387 -3636
Mr. Gary Miller (SBVC alumnus)
The Honorable Phillip Morris (SBVC alumnus)
Ms. Faye Pointer Mr. Edward Szumski (SBVC alumnus)
Mr. Gary Saenz
Mr. Danny Tillman (SBVC alumnus)
Mr. Rod Torres (SBVC alumnus)
Dr. Ruth Sandlin (SBVC alumna)
Mr. Bruce Baron (Ex Officio)
Ms. Lynda K. Savage (SBVC alumna)
Ms. Kristine Scott
Office: (909) 384 -8987
Dr. Donald L. Singer (SBVC alumnus)
Dr. Celia Huston (Ex- Officio)
0
SAM BERNARDINO VALLEY
COLLEGE FOUNDATION
(A California Nonprofit Public Benefit Corporation)
Financial Statements
with
Independent Auditors' Report
For the Year Ended
June 30, 8016
TABLE OF CONTENTS
Independent Auditors' Report
Financial Statements
Statement of Financial Position
Statement of Activities
Statement of Functional Expenses
Statement of Cash Flows
Notes to Financial Statements
Page
JJ1 • rf�jy
t J J
Independent Auditors' Report
To the Board of Directors
San Bernardino Valley College Foundation
San Bernardino, CA
C. CFA
Rdri1:f_ [ SI1r ,(11,1.:-1, CPA
6.,,,In.1ili,6..Ir..,11i II „I I;, A........�., „�.
We have audited the accompanying financial statements of San Bernardino Valley College Foundation (a
California nonprofit public benefit corporation) (the Foundation), which comprise the statement of financial
position as ofJune 30, 2016, and the related statements of activities, functional expenses and cash flows for the
year then ended, and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation
of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we
express no such opinion. An audit also includes evaluating the appropriateness ofaccounting policies used and
the reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
-1-
:147 NIL,
curi Lour - -1 ° Pedlcn,ds, CA -9-2373 ° P-O. B.x 8847 ° Pedknds. CA 9 ?375
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of San Bernardino Valley College Foundation as of June 30, 2016, and the changes in its net assets
and its cash flows for the year then ended in accordance with accounting principles generally accepted in the
United States of America.
Prior Period Adjustment
As discussed in Note 7 to the financial statements the prior year financial statements were adjusted to correct
certain accounting errors. Our opinion is not modified with respect to the prior period adjustment.
November 3, 2016
-2-
® /R,
!1
SAN BERNARDINO VALLEY COLLEGE FOUNDATI ®N
(A California Nonprofit Public Benefit Corporation)
Statement of Financial Position
.tune 30, 2016
ASSETS
Current Assets
Unrestricted cash and cash equivalents
Restricted cash and cash equivalents
Promise to give
Total current assets
Noncurrnet Assets
Investments - restricted
Beneficial interest in assets held at the Foundation for CA Community Colleges
Total assets
LIABILITIES AND NET ASSETS
Liabilities
Accounts payable
Net assets
Unrestricted
Temporarily restricted
Permanently restricted
Total net assets
Total liabilities and net assets
The accompanying notes are an integral part of these financial statements.
-3-
$ 243,322
1,007,189
15,000
1,265,511
2,184,605
1412 nQrl
2,512,691
$ 3,778,202
$ 25,719
232,603
1,892,285
1,627,595
3,752,483
$ 3,778,202
SAN BERNARDINO VALLEY COLLEGE FOUNDATION
(A California Nonprofit Public Benefit Corporation)
Statement of Activities
For the Year Ended .tune 30, 2016
Support and revenues
Contributions
Contributions - San Bernardino Community College
Investment income /loss, net
Net assets released from restrictions
Satisfaction of purpose restrictions
Total support and revenues
Expenses
Program services
Management and general
Fundraising
Total expenses
Change in net assets
Net assets
Balance, beginning of year as previously stated
Prior period adjustment
Balance, beginning of year as restated
Balance, end of year
Temporarily Permanently
Unrestricted Restricted Restricted Total
$ 49,583 $ 455,105 $ 177,000 $ 681,688
105,526 - - 105,526
(31,683) (57,263) - (88,946)
442,419 (442,419)
565,845 (44,577)
399,974
141,603
18,786
560,363
5,482
177,000 698,268
- 399,974
141,603
- - 18,786
(44,577)
560,363
177,000 137,905
177,484
1,991,301
1,519,884
3,688,669
49,637
(54,439)
(69,289)
(74,091)
227,121
1,936,862
1,450,595
3,614,578
$ 232,603 $
1,892,285 $
1,627,595 $
3,752,483
The accompanying notes are an integral part of these financial statements_
-4-
SAINT BERNARDINO VALLEY COLLEGE FGUIBATION
(A California Nonprofit Public Benefit Corporation)
Statement of Functional Expenses
For the Year Ended June 30, 2016
Program Management
Services and General Fundraising Total
Scholarships $ 148,866 $ - $ - $ 148,866
Valley Bound books and tuition 235,564 - - 235,564
In -kind salaries and benefits 10,553 94,973 - 105,526
Supplies for community relations 4,991 - - 4,991
Administrative supplies and expenses - 46,630 - 46,630
Fundraising supplies and event expenses - - 18,786 18,786
Total functional expenses $ 399,974 $ 141,603 $ 18,786 $ 560,363
The accompanying notes are an integral part of these financial statements.
-5-
SAN BERNARDINO VALLEY COLLEGE FOUNDATION
(A California Nonprofit Public Benefit Corporation)
Statement of Cash Flows
For the Year Ended .Lune 30, 2016
Cash flows from operating activities
Change in net assets
Adjustments to reconcile change in net assets
to net cash provided by operating activities:
Contributions restricted for long -term purposes
Donation of artwork
Net realized/unrealized (gain) loss on investments
(Increase) decrease in:
Increase (decrease) in:
Accounts payable
Net cash provided by operating activities
Cash flows from investing activities
Proceeds from sale of investments
Purchase of investments
Net cash provided by investing activities
Cash flows from financing activities
Collections of contributions restricted for long -term purposes
Net cash provided by (used in) financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents
Balance, beginning of year
Balance, end of year
Supplemental cash flow information
Donation of artwork held for investment
The accompanying notes are an integral part of these financial statements.
10
$ 137,905
(177,000)
(50,000)
121,424
(9,514)
22,815
1,507,635
(499,335)
1,008,300
177,000
177 nnn
1,208,115
42,396
$ 1,250,511
$ 50,000
SAN BERNARDINO VALLEY COLLEGE FOUNIDATION
(A California Nonprofit Public Benefit Corporation)
Notes to Financial Statements
1. Summary of Significant Accounting Policies
Organization
San Bernardino Valley College Foundation (the Foundation), located in San Bernardino County, was formed
as a California nonprofit public benefit corporation on March 6, 1973, The Foundation supports the San
Bernardino Community College District (the District) by fundraising for and administering the payment of
student scholarships and support for other educational programs of San Bernardino Valley College (the
College). In addition, the Foundation oversees the Valley Bound Commitment program, which serves to
remove economic barriers and improve ach ievement for low income students from the San Bernardino Valley
area. The Foundation is supported primarily through public donations, grants, and investment income.
Basis of Accounting
The financial statements of the Foundation have been prepared on the accrual basis of accounting and,
accordingly, reflect all significant receivables, payables, and other liabilities.
Basis of Presentation
The accompanying financial statements are presented in accordance with Financial Accounting Standards
Board (FASB) Accounting Standards Codification (ASC) 958- 210 -50. Under ASC 958- 210 -50, the
Foundation is required to report information regarding its financial position and activities according to three
classes of net assets: unrestricted, temporarily restricted, and permanently restricted. In addition, the
Foundation is required to present a statement of cash flows. Revenues are recognized when earned, and
expenses are recognized when incurred in accordance with the accrual basis of accounting.
The Foundation and the District are financially interrelated organizations as defined by ASC Topic 958 -605
Transfers ofAssets to a Nonprofit or Charitable Trust that Holds Contributions for Others. The Foundation
reflects contributions received for the benefit ofthe District as revenue in its financial statements. The expenses
related to these contributions are accounted for under program and supporting services.
Support and Expenses
Contributions are measured at their fair value at the date of contribution and are reported as an increase in net
assets. The Foundation reports gifts of cash or other assets in the category designated by the donor. The
Foundation reports gifts of goods and equipment as unrestricted support unless explicit donor stipulations
specify how the donated assets must be used. Absent explicit donor stipulation about where the contributions
are to be spent, the Foundation reports these contributions as unrestricted.
Cash and Cash Equivalents
Cash and cash equivalents for the purposes of the statement of cash flows consist of cash held in checking and
money market accounts and certificates of deposit with maturities of less than 90 days, when purchased and
available for current operations.
-7-
SAN BERNARIDINO VALLEY COLLEGE FOUNDATION
(A California Nonprofit Public Benefit Corporation)
Notes to Financial Statements
Summary of Significant Accounting Policies (Continued)
Cash and Cash Equivalents (Continued)
The Foundation maintains cash balances in financial institutions which are insured up to $250,000. At June
30, 2016, $947,720 of the cash balances was in excess of the FDIC insurance limit.
Investments
Investments in marketable securities with readily determinable fair values and all investments in debt securities
are reported at their fair values in the statement of financial position. Unrealized gains and losses are included
in the change in net assets. Investment income and gains restricted by a donor are recorded in the appropriate
classification of net assets. Investments are classified as short or long term based upon the Foundation's intent
to use for current operations.
Contributions and Promises to Give
Contributions are recognized when the donor makes a promise to give to the Foundation that is, in substance,
unconditional. Contributions that are restricted by the donor are reported as increases in the appropriate
classification of net assets as temporarily or permanently restricted. When a restriction expires through either
the passage of time or use, the assets are reclassified as assets released from restrictions in the statement of
activities.
Contributions received are recorded as unrestricted, temporarily restricted. or permanently restricted net assets
depending on the existence or nature of any donor restrictions.
Donated Services, Goods, and Facilities
A substantial number of volunteers have donated their time and experience to the Foundation's program
services and fundraising campaigns during the year. However, these donated services are not reflected in the
financial statements since there is no readily determined method of valuing the services. The Foundation
utilizes certain employees employed by the District and District office space; the cost of the facilities has not
been determined and is not reflected in these financial statements.
Income Taxes
The Foundation is a non - profit public benefit corporation that is exempt from income taxes under Section
501(c)(3) of the Internal Revenue Code (IRC) and classified by the Internal Revenue Service (IRS) as other
than a private organization. Contributions received qualify as tax deductible gifts as provided in Section
170(b)(1)(A)(vi). The Foundation is also exempt from California State franchise and income taxes under
Section 23701(d) of the California Revenue and "taxation Code. Accordingly, no provision for income taxes
has been reflected in these financial statements.
-8-
SAN BERNAR LINO VALLEY COLLEGE FOUNDATION
(A California Nonprofit Public Benefit Corporation)
Notes to Financial Statements
1. Summary of Significant Accounting Policies (Continued)
Income Taxes (Continued)
The Foundation's Federal Form 990, Return of Organzation Exempt From Income Tax, and State Form 109,
California,Exempt Organization Business Income Tax Return, are subject to examination by the IRS for three
years, and by the State Franchise Tax Board for four years, after they were filed. The Foundation is not aware
of any such examinations at this time. The Foundation has adopted FASB ASC Topic 740 that clarifies the
accounting for uncertainty in tax positions taken or expected to be taken on a tax return and provides that the
tax effects from an uncertain tax position can be recognized in the financial statements only if, based on its
merits, the position is more likely than not to be sustained on audit by the taxing authorities. Management
believes that all tax positions taken to date are highly certain, and, accordingly, no accounting adjustment has
been made to the financial statements.
Allocation of Functional Expenses
The costs of providing the various programs, fundraising, and other activities have been summarized on a
functional basis in the statement of functional expenses. Accordingly, certain costs have been allocated among
the program, operating, and fundraising activities benefited.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting periods. Actual results
could differ from those estimates.
2. Investments
Investments are recorded at fair value on the statement of financial position. The following table summarizes
the investment returns which are recorded in the statement of activities:
Realized gains (losses) on investments
$ (33,861)
Unrealized gains (losses) on investments
(87,563)
Interest and dividends
55,195
Total investment income
(66,229)
Investment expenses
(22,717)
Total
$ (88,946)
in
SAM BERNARDINO VALLEY COLLEGE FOUNDATION
(A California Nonprofit Public Benefit Corporation)
Motes to Financial Statements
2. Investments (Continued)
Investment Policies
Return Objectives and Risk Parameters
The Foundation has adopted investment and spending policies for endowment assets that attempt to provide a
predictable stream of funding for programs supported by its endowment while seeking to maintain the
purchasing power of the endowment assets. In order to meet its needs, the investment strategy of the
Foundation is to emphasize total return; that is, the aggregate return fi•om capital appreciation and dividend and
interest income. Endowment assets include those assets of donor - restricted funds that the Foundation must
hold in perpetuity. Under this policy, as approved by the Board of Directors, the endowment assets are
invested to meet or exceed the market index, or blended market index, selected and agreed upon by the Finance
Committee that most closely corresponds to the style of investment management.
Strategies Employed for Achieving Objectives
To satisfy its long -term rate -of- return objectives, the Foundation relies on a total return strategy in which
investment return is achieved through both capital appreciation (realized and unrealized) and current yield
(interest and dividends). The Foundation 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 Objectives Relate to Spending Policy
The Foundation may not exceed five percent of the average net assets over the past three years ending June 30
of the preceding fiscal year. In establishing this policy, the Foundation considered the long -term expected
return on its endowment and the need to maintain some investment income in reserve to plan for the potential
of scholarship awards exceeding investment income.
3. Market Value of Financial Assets and Liabilities
The Foundation determines the fair market values of certain financial instruments based on the fair value
hierarchy established in FASB ASC 820- 10 -50, which requires an entity to maximize the use of observable
inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three
levels of inputs that may be used to measure fair value.
The following provides a summary of the hierarchical levels used to measure fair value:
Level I - Quoted prices in active markets for identical assets or liabilities that the reporting entity has
the ability to access at the measurement date. Level I assets and liabilities may include debt and equity
securities that are traded in an active exchange market and that are highly liquid and are actively
traded in over -the counter markets.
sm
SAN BERNARDINO VALLEY COLLEGE FOUNDATION
(A California Nonprofit Public Benefit Corporation)
Notes to Financial Statements
3. Market Value of Financial Assets and Liabilities (Continued)
Level II - Observable inputs other than Level I prices such as quoted prices for similar assets or
liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be
corroborated by observable market data for substantially the full term of the assets or liabilities.
Level III - Unobservable inputs that are supported by little or no market activity and that are significant
to the fair value ofthe assets or liabilities. Level III assets include financial instruments whose value is
determined using pricing models, discounted cash flow methodologies, or similar techniques, as well
as instruments for which the determination of fair value requires significant management judgment or
estimation.
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
The following table presents the balances of the assets measured at fair value on a recurring basis as of June
30, 2016. The Foundation did not have any liabilities measured at fair value on a recurring basis as ofJune 30,
2016.
Investment Assets
Common stock
Certificates of deposit
Artwork
Funds held with the Foundation for
CA Community Colleges
Total investments
Level Level III Total
$ 1,972,621 $ - $ 1,972,621
161,984 - 161,984
50,000 50,000
- 328,086 328,086
$ 2,134,605 $ 378,086 $ 2,512,691
The following table summarizes the Foundation's Level III reconciliation as of June 30, 2016:
Level III
Investments, at Fair Value
Balance, at June 30, 2015 $ 328,086
Donation of artwork 50,000
Changes in the value of the investments -
Balance, at June 30, 2016 $ 378,086
SAN BIERNARDINO VALLEY COLLEGE FOUNDATION
(A California Nonprofit Public Benefit Corporation)
Notes to Financial Statements
3. Market Value of Financial Assets and Liabilities (Continued)
Assets and Liabilities Recorded at Fair Value on a Recurring Basis (Continued)
The Foundation's promise to give in the amount of $15,000 was recorded at fair value on a non - recurring basis
on the date received. The Foundation has no liabilities recorded at fair value on a non - recurring basis.
4. Beneficial Interest in Assets held by the Foundation for California Community Colleges
The Foundation participated in The Foundation for California Community Colleges (The FCCC) Osher
Scholarship Challenge. This program challenged community colleges and their related foundations to raise
additional contributions to be designated as part of a permanent endowment for The FCCC's Osher Scholarship
Endowment. Foundations participating in this challenge campaign are guaranteed scholarship monies for
qualifying students of their community college districts. The funds are held by The FCCC and are included as
permanently restricted net assets of the Foundation.
The Foundation receives no additional interest or dividends on the balance held at The FCCC, and the
Foundation does not participate in the investment management of the funds.
5. Net Assets
At June 30, 2016, net assets are categorized as follows:
Unrestricted net assets:
Board designated - operating reserves $ 77,492
Unrestricted 155,111
232,603
Temporarily restricted for:
Scholarships
179,717
Programs
279,071
Endowment earnings
1,433,497
1,892,285
Permanently restricted for:
Endowments for scholarships
1,299,509
Assets held at Foundation for CA Community Colleges
328,086
1,627,595
Total net assets $ 3,752,483
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SAN BERNARDINO VALLEY COLLEGE FOUNDATION
(A California Nonprofit Public Benefit Corporation)
Notes to Financial Statements
5. Net Assets (Continued)
PermanentlyIZeslricted Net - Assets
The Foundation's permanently restricted net assets consist of individual funds established for a variety of
purposes. Its endowment includes donor - restricted endowment funds. As required by GAAP, net assets
associated with endowment funds are classified and reported based on the existence or absence of donor -
imposed restrictions.
Endowment Funds
Interpretation of Relevant Law
The Board of Directors of the Foundation has interpreted the State Prudent Management ofInstitutional Funds
Act (SPMIFA) 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 ofthis interpretation,
the Foundation 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 organization in a manner consistent with
the standard of prudence prescribed by SPMIFA. In accordance with SPMIFA, the organization 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 organization 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 organization and,
(7) the investment policies of the organization.
The changes in endowment net assets for the year ended June 30, 2016 are as follows:
$ 1,433,497 $ 1,627,595 $ 3,061,092
-13-
Temporarily
Permanently
Restricted
Restricted
Total
Endowment net assets, beginning of year
$ 1,499,793
$ 1,450,595
$ 2,950,388
Contributions
177,000
177,000
Investment return:
Investment income (loss)
(57,263)
-
(57,263)
Appropriation of endowment assets for
expenditure
(9,033)
-
(9,033)
$ 1,433,497 $ 1,627,595 $ 3,061,092
-13-
SAN BERNARDINO VALLEY COLLEGE FOUNDATION
(A California Nonprofit Public Benefit Corporation)
Notes to Financial Statements
5. Net Assets (Continued)
Endowment Funds (Continued)
The portion ofperpetual endowment funds that is required to be retained permanently either by explicit donor
stipulation or by SPMIFA is $1,627,595 as of June 30, 2016. The portion of perpetual endowment funds
subject to a time restriction with a purpose under SPMIFA is $1,433,497 as of June 30, 2016.
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 SPMIFA requires the Foundation to retain as a fund ofperpetual duration.
In accordance with GAAP, deficiencies of this nature are reported in unrestricted net assets, when applicable.
6. Related Party Transactions
As discussed in Note 1, the San Bernardino Community College District provides administrative services to the
Foundation. These services consist of salaries and benefits for the Executive Director, administrative staff, and
other services. For the year ended June 30, 2016, these services were valued at $105,526.
7. Prior Period Adjustment
During the year ended June 30, 2016 the Foundation corrected certain errors for prior years as follows:
Misclassification of net assets:
Temporarily restricted net assets to permanent
Temporarily restricted net assets to unrestricted
Incorrect accounting treatment for the CCCS Endowment fund
Understatement in temporarily restricted funds
Overstatement in permanently restricted funds
Understatement of stock investment in temporarily restricted funds
Promise to give not properly reported during the prior year end
Accounts payable not properly reported during the prior year end
$ 5,836
49,637
$ 55,473
$ 6,506
(75,115)
14,751
15,000
(35,233)
$ (74,091)
The effect of the above prior period adjustments was to reduce change in net assets by $20,233 on the
statement of activities for the year ended June 30, 2015.
SEE
SAN BERNARDINO VALLEY COLLEGE FOUNDAITON
(A California Nonprofit Public Benefit Corporation)
Notes to Financial Statements
8. Subsequent Events
The Foundation's management has evaluated events or transactions that may occur for potential recognition or
disclosure in the financial statements through November 3, 2016 which is the date the financial statements
were available to be issued. Management has determined that there were no subsequent events or transactions
that would have a material impact on the current year financial statements.
-15-