JEWISH FEDERATION OF SILICON VALLEY FINANCIAL … · Jews in the Silicon Valley; the Rabbi also serves as the community liaison to interfaith groups and local public servants. •

JEWISH FEDERATION OF SILICON VALLEY

FINANCIAL STATEMENTS

AND

SUPPLEMENTARY INFORMATION

YEARS ENDED JUNE 30, 2015 AND 2014

WITH

INDEPENDENT AUDITORS' REPORT

JEWISH FEDERATION OF SILICON VALLEY

TABLE OF CONTENTS

Independent Auditors' Report 1 - 2

Financial Statements

Statement of Financial Position 3 - 4

Statement of Activities 5

Statement of Functional Expenses 6

Statement of Cash Flows 7

Notes to Financial Statements 8 - 17

Supplement to Financial Statements

Independent Auditors' Report on Supplementary Information 19

Schedule of Levy Family Campus Operations 20

JOHANSON &YAU ACCOUNTANCY CORPORATION

DAVID R. DAVIS

FREDERICK U. LEONARD

SHERYL L. [HINSHAW

BYRON J. ISHIWATA

SARA E. KELLEY

ANTHONY S. C. YAU

INDEPENDENT AUDITORS' REPORT Of Counsel

The Board of Directors Jewish Federation of Silicon Valley Los Gatos, California

We have audited the accompanying financial statements of Jewish Federation of Silicon Valley (a California nonprofit organization), which comprise the statement of financial position as of June 30, 2015, 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.

Auditors' 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 auditors' 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 of accounting 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.

CERTIFIED PUBLIC ACCOUNTANTS

160 WEST SANTA CLARA STREET, SUITE 900

SAN JOSE, CALIFORNIA 95113-1700

PHONE: 408/288-5111 FAX: 408/288-7174

WWW.JYAC.COM

AN INDEPENDENT MEMBER

OF BKR INTERNATIONAL

WITH OFFICES IN PRINCIPAL

CITIES AROUND THE WORLD

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Jewish Federation of Silicon Valley as of June 30, 2015, 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.

Report on Summarized Comparative Information

We have previously audited the Jewish Federation of Silicon Valley's 2014 financial statements and our report dated February 16, 2015 expressed an unmodified opinion on those audited financial statements. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2014, is consistent, in all material respects, with the audited financial statements from which it has been derived.

San Jose, California March 8, 2016

2 _ _

JEWISH FEDERATION OF SILICON VALLEY STATEMENT OF FINANCIAL POSITION

JUNE 30, 2015 (With Comparative Totals as of June 30, 2014)

ASSETS

2015 2014* Current assets

Cash $ 760,702 $ 2,432,251 Investments

Certificates of deposit 1,281,569 1,270,254 Marketable securities - Note 5 12,948,473 5,500,810

Pledges receivable, net of allowance for doubtful pledges of $52,766 -Note 3 1,026,993 935,006

Other receivables 119,374 180,444 Loan receivable, current maturities - Note 4 25,029 24,209 Deposits - 15,309 Prepaid expenses 6,183 797

Total current assets

Property and equipment, net - Note 6 Loan receivable, less current maturities - Note 4

16,168,323 10,359,080

17,370,792 17,909,037

1,100,053 1,125,082

$ 34,639,168 $ 29,393,199

See accompanying notes to financial statements

* Derived from 2014 audited financial statements

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JEWISH FEDERATION OF SILICON VALLEY STATEMENT OF FINANCIAL POSITION

JUNE 30, 2015 (With Comparative Totals as of June 30, 2014)

LIABILITIES AND NET ASSETS

2015 2014* Current liabilities

Accounts payable and accrued expenses $ 212,037 $ 327,181 Allocations payable from campaign 121,491 73,848 Loans payable, current maturities - Note 8 54,230 52,452 Endowment held for another organization 148,611 140,000 Donor designated funds payable 5,256 5,756

Total current liabilities

541,625 599,237

2,367,566 2,421,772 Loans payable, less current maturities - Note 8

2,909,191 3,021,009 Net assets

Unrestricted - Note 9

27 097,152

21,922,096 Temporarily restricted - Note 10

2,037,284

1,828,142 Permanently restricted - Note 10

2,595,541

2,621,952

31 729,977 26,372,190

$ 34 639,168 $ 29,393,199



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JEWISH FEDERATION OF SILICON VALLEY STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2015

(With Comparative Totals For The Year Ended June 30, 2014)

2015 2014*

Temporarily Permanently Unrestricted Restricted Restricted Total Total

Revenues and support from operations Service revenue:

Levy Family Campus occupancy revenue $ 3,411,306 $ $ $ 3,411,306 $ 3,200,225 Investment income

Dividends and interest 253,921 1,606 27,381 282,908 170,214 Net realized gains 949,287 11,337 193,433 1,154,057 223,146 Unrealized gain (loss) (1,000,421) (10,491) (178,868) (1,189,780) 430,963

JValley.news advertising and subscriptions 54,283 - 54,283 57,128 Program revenue 291,349 - - 291,349 271,901

Total service revenue 3,959,725 2,452 41,946 4,004,123 4,353,577

Public support, net of direct costs 6,677,612 1,794,534 - 8,472,146 3,607,309

10,637,337 1,796,986 41,946 12,476,269 7,960,886

Satisfaction of restriction 1,585,649 (1,585,649)

_

Total support and revenue 12,222,986 211,337 41,946 12,476,269 7,960,886

Operating expenses Supporting services:

General and administrative

452,958 _ 452,958 384,963 Fundraising costs

315,134 - - 315,134 284,346

Total supporting services 768,092 768,092 669,309

Program services: Allocations to beneficiary agencies

3,539,491

2,195

68,357 3,610,043

2,849,619 Other expenses

2,740,347 _ 2,740,347

2,638,675

Total program services 6,279,838 2,195 68,357 6,350,390 5,488,294

Total support service and program services 7,047,930 2,195 68,357 7,118,482 6,157,603

Change in net assets 5,175,056 209,142 (26,411) 5,357,787 1,803,283

Net assets, beginning of year 21,922,096 1,828,142 2,621,952 26,372,190 24,568,907

Net assets, end of year $ 27,097,152 $ 2,037,284 $ 2,595,541 $ 31,729,977 $ 26,372,190



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42,000 13,888

5,181 1,923 6,113 1,548 3,628

12,848 29,265

213 20,837 11,243

865 1,605 3,870

20,741 48,665

2,676 48,803

1,312

1,170

2,947 2,068 1,408

46 95,379

72

4,292 8,531

24

450,025 315,134 2,933

JEWISH FEDERATION OF SILICON VALLEY STATEMENT OF FUNCTIONAL EXPENSES

YEAR ENDED JUNE 30, 2015 (With Comparative Totals For The Year Ended June 30, 2014)

2015 2014*

Total Program Services

General and Administrative

Fundraising Costs Total

Salaries Payroll taxes & benefits

$ 533,583 140,694

$ 137,783 36,330

$ 156,594 41,291

$ 827,960 218,315

$ 823,989 202,792

Total salaries and related expenses 674,277 174,113 197,885 1,046,275 1,026,781

Allocations to beneficiary agencies Audit, legal and accounting fees Insurance Supplies Telephone Repair and maintenance Postage and mailing Meetings Conferences and travel Computer Campaign programs Miscellaneous Outside labor and consulting Printing and composition Advertising and publicity Dues and subscriptions Credit card and bank service fees Bad debt expense Levy Family Campus

operations expense Investment expenses, net Interest expense

Total expenses before depreciation and amortization

Depreciation and amortization

3,610,043 7,802

33,362 61,071 27,485

232,713 13,658

972 9,377

190 237,411

545 9,890

19,756 9,413

45,726

771,173 39

50,175

5,815,078 535,312

3,610,043 51,114 47,250 67,422 29,408

238,826 18,153 6,668

23,633 29,501

333,003 21,454 21,133 24,913 19,549 49,620 20,741 48,665

773,849 48,842 50,175

6,580,237 538,245

2,849,619 47,251 46,450 73,806 25,234

174,888 17,263 5,429

30,644 25,032

285,562 11,832 12,147 21,876 14,869 33,213 19,502 43,071

764,079 42,675 51,708

5,622,931 534,672

Total functional expenses $ 6,350,390 $ 452,958 $ 315,134 $ 7,118,482 $ 6,157,603



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JEWISH FEDERATION OF SILICON VALLEY STATEMENT OF CASH FLOWS

YEAR ENDED JUNE 30, 2015 (With Comparative Totals For The Year Ended June 30, 2014)

2015 2014*

Cash flows from operating activities Change in net assets $ 5,357,787 $ 1,803,283 Adjustments to reconcile change in net assets to net

cash provided by operating activities Depreciation and amortization 538,245 534,672 Change in allowance for doubtful pledges 19,723 (84,391) Realized and unrealized net (gains) losses on investments 35,723 (654,109) (Increase) decrease in assets

Pledges receivable (111,710) (40,300) Other receivables 61,070 (5,344) Prepaid and deposits 9,923 (797)

Increase (decrease) in liabilities Accounts payable and accrued expenses (115,144) 159,865 Allocations payable from campaign 47,643 4,154 Donor designated funds payable (500) 3,489 Endowment held for another organization 8,611 88,711

Net cash provided by operating activities 5,851,371 1,809,233

Cash flows from investing activities Collections of loans receivable 24,209 23,159 Purchase of property and equipment - (86,935) Purchase of investments (19,257,078) (2,251,338) Sale of investments 11,762,377 1,970,183

Net cash used for investing activities (7,470,492) (344,931)

Cash flows from financing activities Repayment of debt (52,428) (50,265)

Net cash used for financing activities (52,428) (50,265)

Net increase (decrease) in cash (1,671,549) 1,414,037

Cash, beginning of year 2,432,251 1,018,214

Cash, end of year $ 760,702 $ 2,432,251

Supplemental cash flow information Interest paid during year $ 93,137 $ 94,693



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JEWISH FEDERATION OF SILICON VALLEY NOTES TO FINANCIAL STATEMENTS

YEAR ENDED JUNE 30, 2015

NOTE 1- SUMMARY OF ACTIVITIES

The Jewish Federation of Silicon Valley (the Federation) was established in 1930 and is a not-for-profit organization dedicated to strengthening and enriching the Jewish community locally, in Israel and throughout the world. The Federation supports educational, social service and charitable programs that exemplify the Jewish values of ICIal Yisrael (taking responsibility for one another), Tzedakah (charity and righteousness), and Tikkun Olam (repairing the world). The Federation's activities are detailed as follows:

• Fundraising through annual, capital and endowment campaigns and designated giving.

• Funding and supporting beneficiary agencies and programs which serve Jews in both the local community and throughout the world.

• Nalley.news - a periodic local Jewish community newspaper.

• Endowment development - to develop and implement solicitation programs to increase the Endowment Fund.

• Affinity Groups - programs for the Jewish community specifically geared to young families, health care, women, young adults, legal and high tech professionals.

• Community Chaplain - Rabbinic services and counseling for hospitalized and marginalized Jews in the Silicon Valley; the Rabbi also serves as the community liaison to interfaith groups and local public servants.

• Levy Family Campus fundraising, development and operations - efforts are made to ensure the funding and prompt repayment of loans taken to build the facility at 14855 Oka Road, Los Gatos, California as well as overseeing the operations and maintenance of the facility.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Federation follows standards of accounting and financial reporting for not-for-profit organizations as prescribed by the American Institute of Certified Public Accountants and the Financial Accounting Standards Board. The Federation reports its financial position and operational activities in three classes of net assets: unrestricted net assets, temporarily restricted net assets and permanently restricted net assets which have restrictive covenants set by the donor.

• Unrestricted net assets are those assets over which the Board of Directors (the Board) has discretionary control in carrying out the operations of the Federation. Under this category, the Federation maintains philanthropic funds plus any net assets designated by the Board for specific purposes. The Federation reports as an increase in unrestricted net assets any restricted support received in the same period for which the restrictions are met.

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NOTE 2- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

• Temporarily restricted net assets are pledges and unconditional promises which are subject to donor restrictions usually released with the passage of time or a use requirement being met.

• Permanently restricted net assets are those assets which are subject to donor restrictions which never expire nor can ever be removed. Such permanent restrictions generally represent endowments for which the original principal may never be reduced except by investment losses in certain cases.

Revenue recognition - The Federation recognizes public support, as well as program revenue, interest income and JValley.news advertising and subscription revenue on the accrual basis of accounting. Public support is recordable on a net realizable value basis. Program revenue is recognized in the period in which services are provided.

Contributions are recognized when the donor makes an unconditional promise to give. Contributions are recorded as unrestricted, temporarily restricted or permanently restricted depending on the nature of donor restrictions and depending on whether the restrictions are met in the current period. Restricted contributions are reported as increases in unrestricted net assets if the restrictions have been met in the current fiscal period. If the restriction has not been met by fiscal year end, the amount is reported as an increase in temporarily or permanently restricted net assets. When the restriction is met on a contribution received in a prior fiscal period, the amount is shown as a reclassification of restricted net assets to unrestricted net assets.

Unconditional promises to give that are expected to be collected within one year are recorded at net realizable value. Installments are allowed for campus pledges of $5,000 or more. Unconditional promises to give that are expected to be collected in future years are recorded at the present value of their estimated future cash flows based upon installment periods as advised by the donor. The discounts on those amounts are computed using current borrowing rates. Amortization of the discounts is included in contribution revenue.

Conditional promises to give are not included as support until the conditions are substantially met.

The allowance for doubtful pledges receivable is based upon historical collection experience, age of pledges receivable and current economic conditions that may affect a donor's ability to pay. In addition, specific allowances are provided for any pledge receivable which management determines in its judgment to be impaired beyond the level of general allowance.

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Contributions-in-kind - Donated equipment and other donated goods are recorded at their estimated value at the date of donation. Contributed services, which require a specialized skill and which the Federation would have paid for if not donated, are recorded at the estimated fair value at the time of services rendered. The Federation also receives donated services that do not require specific expertise but which are nonetheless central to the Federation's operations. These contributed services are not reflected in the financial statements.

Cash - Cash consists of deposits with a bank which often exceed federally insured limits.

Investments - Investments in marketable securities with readily determinable fair value and debt securities are stated at market value. Dividends and interest are accrued as earned and recorded as unrestricted revenue unless income is restricted by the donor.

Generally accepted accounting principles establish a hierarchy to prioritize the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets (Level 1) and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). Observable inputs are those that market participants would use in pricing the assets based on market data obtained from sources independent of the Federation. Unobservable inputs reflect the Federation's assumption about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

The fair value hierarchy is categorized into three levels based on the inputs as follows:

Level 1 - Values are unadjusted quoted prices for identical assets or liabilities in active markets accessible at the measurement date.

Level 2 - Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices from those willing to trade in markets that are not active, or other inputs that are observable or can be corroborated by market data for the term of the instrument. Such inputs include market interest rates and volatilities, spreads and yield curves.

Level 3 - Certain inputs are unobservable (supported by little or no market activity) and significant to the fair value measurement. Unobservable inputs reflect the Federation's best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date.

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Property and equipment - Property and equipment are recorded at cost, or if contributed, at the estimated fair value when donated. Depreciation and amortization are computed using the straight-line method over estimated useful lives of three to thirty-five years. Depreciation is recorded as a decrease in unrestricted net assets and the expense is charged to the activity benefiting from the use of the facilities or equipment.

Long-lived assets - The Federation reviews long lived assets for impairment whenever events or changes in circumstances indicate that the can-ying amount of an asset may not be recoverable. No such impairments have been identified to date.

Indirect expense allocations - Indirect expense allocations are based on actual salaries allocated to an applicable program and supporting activity.

Income taxes - The Federation is exempt from federal and state income taxes under provisions of Section 501(c)(3) of the Internal Revenue Code and similar state provisions and has been determined to be an organization which is not a private foundation.

The Federation's tax filings are subject to audit by various taxing authorities. As of June 30, 2015 the Federation is no longer subject to federal or state examinations by tax authorities for years ended before 2011.

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 at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Concentration of credit risk - Financial instruments that potentially subject the Federation to concentration of credit risk consist principally of cash, pledges receivable, grants receivable, investments and loans payable. Cash is deposited in local reputable banks and marketable securities are in the custody of a large financial institution. The credit risk in the pledges and grants receivable is mitigated by the fact that pledges are made by predominately local, repeat donors and are evaluated by the Federation based on personal contact and knowledge of the donors. The credit risk in investments described in Note 5 is mitigated by the fact that the Federation regularly reviews the investments and uses an outside investment manager. The line of credit and majority of loans payable as described in Note 8 are with one reputable financial institution.

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NOTE 3- PLEDGES RECEIVABLE

Pledges receivable consisted of the following at June 30, 2015:

General Campaign 2015 $ 844,445 2014 127,612 2013 25,260 2012 26,066 2011 and prior 23,486

Total General Campaign

Levy Family Campus Campaign

1,046,869

35,651

1,082,520

Less: discount at 3.75%, based on approximate current borrowing rates

Less: allowance for doubtful pledges (2,761)

(52,766)

Total pledges receivable $ 1,026,993

NOTE 4- LOAN RECEIVABLE

In 2011, the Federation loaned $860,000 to Yavneh Day School (Yavneh), a beneficiary agency, as part of an overall $1,200,000 line of credit available to Yavneh. The proceeds were used for working capital and to repay the existing outstanding indebtedness to the Federation of approximately $460,000. In 2012 and 2013, the Federation loaned Yavneh the remaining $340,000 of the line of credit which was also used for working capital requirements. Any unpaid principal balance is due in October 2016. The Yavneh board of directors and two other individuals have guaranteed up to $750,000 of this loan.

Yavneh is required to make monthly principal and interest payments to the Federation on the identical repayment terms as the Federation's obligation to First Republic Bank (see Note 8).

Loan receivable consisted of the following at June 30, 2015:

Yavneh Day School, a beneficiary agency, monthly principal and interest receivable at the rate charged by First Republic Bank on the Federation's long-term debt (currently 3.75%), due October 2016.

Less current maturities

$ 1,125,082

(25,029)

Long-term maturities $ 1,100,053

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NOTE 5- INVESTMENTS IN MARKETABLE SECURITIES

The cost and fair market value of the Federation's investments in marketable securities consisted of the following at June 30, 2015:

Unrealized Fair market gains

Cost

Value (losses)

Fixed income securities:

Domestic mutual funds

3,037,534

3,003,656

(33,878) International mutual funds

752,920

741,230

(11,690)

Publicly traded equity securities: Domestic mutual funds 6,261,625 6,128,798 (132,827) International equities 2,690,039 2,590,670 (99,369) Real asset funds 196,853 173,937 (22,916) Hedge investments 300,000 310,182 10,182

Total investments $ 13,238,971 $ 12,948,473 $ (290,498)

The fair market value of marketable securities is based upon quoted market prices for identical assets (Level 1 input).

Investment gain included in the statement of activities for the year ended June 30, 2015 consisted of the following:

Dividends and interest income $ 282,908

Net realized gain

Net unrealized gain 1,154,057

(1,189,780)

Net realized and unrealized

gain on investments (35,723)

Total investment gain $ 247,185

Investment expenses for the year ended June 30, 2015 were $48,842.

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NOTE 6- PROPERTY AND EQUIPMENT

The components of property and equipment are as follows for the year ended June 30, 2015:

Real estate and improvements: Levy Family Campus $ 18,293,106 Land 4,200,000

Office equipment, furniture and computer software 502,447

Less accumulated depreciation and amortization

22,995,553

(5,624,761)

$ 17,370,792

NOTE 7- LEVY FAMILY CAMPUS

The Federation provides and maintains facilities at the Levy Family Campus for the benefit of itself and certain beneficiary agencies. For any occupants who are Jewish not-for-profit agencies, the Federation will not charge rent in excess of common area operating expenses. Operating expenses for the property, grounds and management and reasonable reserves are prorated among the Federation and the tenants based on square footage. Total operating expenses collected from tenants was approximately $1,283,731 for the year ended June 30, 2015. The Federation has recognized $2,127,575 of rental income for the year ended June 30, 2015 to reflect the market value of reduced rent provided to tenants of the building. This rent is based upon the fair market value of comparable commercial space in the area, and is also reported as additional program service expense in the statement of activities.

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NOTE 8 - FINANCING ARRANGEMENTS

Line of credit - The Federation has a line of credit agreement with First Republic Bank (the Bank) to provide working capital. The credit limit is $1,500,000 with interest at the bank's index rate, but not less than 4% per year (rate was 4% at June 30, 2015). The line is subject to certain financial covenants. As of June 30, 2015 the Federation is unaware of any violation of its loan covenants. Borrowings are secured by cash, securities, receivables, real and personal property and by tenant leases. There was no outstanding balance at June 30, 2015.

Long-term debt - Long-term debt as of June 30, 2015, is summarized as follows:

Note payable to the Bank, secured by cash, securities, receivables, real and personal property and lease income, monthly payments totalling $12,132, interest at the bank's rate (currently 3.75%), due October 2016. $ 2,421,796

Less current maturities (54,230)

Long-term maturities $ 2,367,566

Maturities of long-term debt for the next two years are as follows:

Year ended June 30, 2016 $ 54,230 2017 2,367,566

$ 2,421,796

Total interest incurred under these loans for the year ended June 30, 2015 was $50,175, net of $42,986 collected from the Yavneh loan receivable. See Note 4.

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NOTE 9- UNRESTRICTED NET ASSETS

Unrestricted net assets consisted of the following at June 30, 2015:

Undesignated funds Federation $ 2,522,298 Investment in property and equipment, net of related debt 14,948,996

Total undesignated assets 17,471,294

Designated by Board of Directors Maintenance reserve for Levy Family Campus 702,891 Contingency reserve for Levy Family Campus 313,319 PJ Library 46,323 Leadership development 20,851 Other (less than $10,000 each) 19,441

Total designated by board 1,102,825

Philanthropic funds 8,523,033

Total $ 27,097,152

NOTE 10- RESTRICTED NET ASSETS

Temporarily restricted net assets consisted of the following at June 30, 2015:

2015 Annual Campaign Endowment for Art Gallery Gift of Israel

2016 Annual Campaign

Cowans Endowment investment income for

Congregation Sinai Teen Fellows

$ 1,815,053

131,626

52,891

25,050

7,664

5,000

Total $ 2,037,284

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NOTE 10 - RESTRICTED NET ASSETS (Continued)

Permanently restricted net assets consisted of the following at June 30, 2015:

Mel Cotton Endowment Fund

Weinberg Endowment for Jewish Family Services Lion of Judah Endowment (LOJE)

Cowans Endowment for Congregation Sinai

$ 1,173,757

999,686 375,000

47,098

Total $ 2,595,541

NOTE 11- RELATED PARTY TRANSACTIONS

Donations from Federation board members totaled $90,055 for the year ended June 30, 2015. Two board members have also guaranteed up to $500,000 of the Yavneh note receivable previously described in Note 4.

NOTE 12- COMMITMENTS AND CONTINGENCIES

The Federation has elected to be self-insured for California unemployment insurance. Amounts contingently payable under this arrangement are deemed immaterial.

The Federation also agreed to either provide or guarantee a revolving debt facility to the Addison-Penzak Jewish Community Center (APJCC) in the amount of $500,000 based on current commercial borrowing rates. There was no balance as of June 30, 2015.

The Federation is prohibited from pledging any of its assets on future loan transactions without the permission of its lender, First Republic Bank.

NOTE 13- RETIREMENT PLANS

The Federation maintains a defined contribution retirement plan covering substantially all employees meeting minimum age and service requirements. The plan allows for discretionary employer contributions up to 7% of eligible compensation. The amount contributed by the Federation for the year ended June 30, 2015 was $51,282. The Federation also maintains a 401(k) plan which provides for employee contributions without matching contributions from the Federation.

NOTE 14- SUBSEQUENT EVENTS

Subsequent events were evaluated through March 8, 2016, the date the financial statements were available to be issued.

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SUPPLEMENTARY INFORMATION

JOHANSON &YAU ACCOUNTANCY CORPORATION

DAVID R. DAVIS

FREDERICK U. LEONARD

SHERYL L. HINSHAW

BYRON J. ISHIWATA

SARA E. KELLEY

ANTHONY S. C. YAU

Of Counsel

INDEPENDENT AUDITORS' REPORT ON SUPPLEMENTARY INFORMATION

Board of Directors Jewish Federation of Silicon Valley Los Gatos, California

Our report of the basic financial statements of Jewish Federation of Silicon Valley as of June 30, 2015 and the year then ended appears on pages 1-2. That audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 20 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

494 -

March 8, 2016

CERTIFIED CERTIFIED PUBLIC ACCOUNTANTS

160 WEST SANTA CLARA STREET, SUITE 900

SAN JOSE, CALIFORNIA 95113-1700

PHONE: 408/288-5111 FAX: 408/288-7174

WWW.JYAC.COM -19-

AN INDEPENDENT MEMBER

OF BKR INTERNATIONAL

WITH OFFICES IN PRINCIPAL

CITIES AROUND THE WORLD

JEWISH FEDERATION OF SILICON VALLEY SCHEDULE OF LEVY FAMILY CAMPUS OPERATIONS


Income

Revenue at fair market value CAM reimbursements Reimbursements paid by the Federation

$ 2,127,575 1,327,111

(43,380)

3,411,306

Expenses Rent reductions as in-kind donation to beneficiary agencies 2,127,575 Security 326,000 Utilities-facilities 323,425 Professional staff salaries 219,058 Repairs and maintenance 215,040 Cleaning 99,784 Supplies 54,281 Telephone 27,485 Insurance 33,261 Property taxes 19,214 Pest control service 2,750 Miscellaneous 9,079

Total expenses before depreciation

Loss before depreciation

Depreciation and amortization

Net loss

3,456,952

(45,646)

(535,312)

$ (580,958)

As of June 30, 2015, the total maintenance reserve balance was $702,891.

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Documents

JEWISH FEDERATION OF SILICON VALLEY FINANCIAL … · Jews in the Silicon Valley; the Rabbi also serves as the community liaison to interfaith groups and local public servants. •