silicon valley community foundation · 2016-06-16 · silicon valley community foundation...

Report of Independent Auditors and Consolidated Financial Statements

Silicon Valley Community Foundation

December 31, 2015 and 2014

CONTENTS

PAGE

REPORTOFINDEPENDENTAUDITORS..........................................................................................................................................................................................1

CONSOLIDATEDFINANCIALSTATEMENTS

Statementsoffinancialposition....................................................................................................................................................................................................3

Statementsofactivities.....................................................................................................................................................................................................................4

Statementsofcashflows..................................................................................................................................................................................................................5

Notestofinancialstatements.........................................................................................................................................................................................................6

REPORTOFINDEPENDENTAUDITORSONINTERNALCONTROLOVERFINANCIALREPORTINGANDONCOMPLIANCEANDOTHERMATTERSBASEDONANAUDITOFFINANCIALSTATEMENTSPERFORMEDINACCORDANCEWITHGOVERNMENTAUDITINGSTANDARDS......................................................21‐22

REPORTOFINDEPENDENTAUDITORSONCOMPLIANCEFORTHEMAJORFEDERALPROGRAMANDREPORTONINTERNALCONTROLOVERCOMPLIANCEASREQUIREDBYTHEUNIFORMGUIDANCE…………................................................................................................................................................................................................................23‐24

SCHEDULEOFFINDINGSANDQUESTIONEDCOSTS..........................................................................................................................................................25

SUPPLEMENTARYINFORMATION

Scheduleofexpendituresoffederalawards......................................................................................................................................................................26

Notestoscheduleofexpendituresoffederalawards....................................................................................................................................................27

REPORTOFINDEPENDENTAUDITORSTheAuditCommitteeofSiliconValleyCommunityFoundation

ReportontheFinancialStatements

We have audited the accompanying consolidated financial statements of Silicon Valley CommunityFoundation(aCaliforniapublicbenefitcorporation)anditsaffiliatedandsupportingorganizations,whichcomprise the consolidated statement of financial position as of December31, 2015, and the relatedconsolidatedstatementsofactivitiesandcashflowsfortheyearthenended,andtherelatednotestothefinancialstatements.

Management’sResponsibilityfortheFinancialStatements

Management is responsible for the preparation and fair presentation of these consolidated financialstatementsinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica;thisincludesthedesign,implementation,andmaintenanceofinternalcontrolrelevanttothepreparationand fairpresentationof financial statements thatare free frommaterialmisstatement,whetherdue tofraudorerror.

Auditor’sResponsibility

Ourresponsibilityistoexpressanopinionontheseconsolidatedfinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmerica and the standards applicable to financial audits contained inGovernmentAuditing Standards,issuedbytheComptrollerGeneraloftheUnitedStates.Thosestandardsrequirethatweplanandperformthe audit to obtain reasonable assurance aboutwhether the consolidated financial statements are freefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthe consolidated financial statements. The procedures selected depend on the auditor’s judgment,includingtheassessmentoftherisksofmaterialmisstatementoftheconsolidatedfinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheentity’spreparationandfairpresentationoftheconsolidatedfinancialstatementsinorderto design audit procedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on the effectiveness of the entity’s internal control. Accordingly,we express nosuchopinion.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonableness of significant accounting estimates made by management, as well as evaluating theoverallpresentationoftheconsolidatedfinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all materialrespects,thefinancialpositionofSiliconValleyCommunityFoundationanditsaffiliatedandsupportingorganizationsasofDecember31,2015,andthechanges intheirnetassetsandtheircash flowsfortheyear then ended in accordance with accounting principles generally accepted in the United States ofAmerica.

OtherMatters

ReportonSummarizedComparativeInformation

We have previously audited Silicon Valley Community Foundation and its affiliated and supportingorganizations’2014consolidated financialstatements,andweexpressedanunmodifiedauditopiniononthose audited consolidated financial statements in our report dated June 4, 2015. In our opinion, thesummarizedcomparativeinformationpresentedhereinasofandfortheyearendedDecember31,2014,isconsistent, in allmaterial respects,with the audited consolidated financial statements fromwhich it hasbeenderived.

OtherInformation

Ourauditwasconductedforthepurposeofforminganopinionontheconsolidatedfinancialstatementsasawhole.ThescheduleofexpendituresoffederalawardsasrequiredbyTitle2U.S.CodeofFederalRegulations(CFR)Part200,UniformAdministrativeRequirements,CostPrinciples,andAuditRequirements forFederalAwards is presented for purposes of additional analysis and is not a required part of the consolidatedfinancial statements. Such information is the responsibility of management and was derived from andrelatesdirectlytotheunderlyingaccountingandotherrecordsusedtopreparetheconsolidatedfinancialstatements. The information has been subjected to the auditing procedures applied in the audit of theconsolidatedfinancialstatementsandcertainadditionalprocedures, includingcomparingandreconcilingsuchinformationdirectlytotheunderlyingaccountingandotherrecordsusedtopreparetheconsolidatedfinancial statements or to the consolidated financial statements themselves, and other additionalprocedures inaccordancewithauditing standardsgenerallyaccepted in theUnitedStatesofAmerica. Inouropinion,theinformationisfairlystated,inallmaterialrespects,inrelationtotheconsolidatedfinancialstatementsasawhole.

OtherReportingRequiredbyGovernmentAuditingStandards

InaccordancewithGovernmentAuditingStandards,wehavealsoissuedourreportdatedJune2,2016onourconsiderationofSiliconValleyCommunityFoundation's internalcontrolover financial reportingandonourtestsofitscompliancewithcertainprovisionsoflaws,regulations,contracts,andgrantagreementsandothermatters.Thepurposeofthatreportistodescribethescopeofourtestingofinternalcontroloverfinancialreportingandcomplianceandtheresultsofthattesting,andnottoprovideanopiniononinternalcontroloverfinancialreportingoroncompliance.Thatreportisanintegralpartofanauditperformedinaccordance with Government Auditing Standards in considering Silicon Valley Community Foundation'sinternalcontroloverfinancialreportingandcompliance.

SanFrancisco,CaliforniaJune2,2016

CONSOLIDATEDFINANCIALSTATEMENTS

__________

SILICONVALLEYCOMMUNITYFOUNDATION

Seeaccompanyingnotes.Page3

CONSOLIDATEDSTATEMENTSOFFINANCIALPOSITIONDecember31,2015and2014(inthousands)

2015 2014

ASSETSCashandcashequivalents 111,733$ 121,857$Investments 7,143,565 6,366,045Contributionsandgrantsreceivable 12,277 4,244Notesandotherreceivables,net 7,212 5,493Beneficialinterestincharitableremaindertrusts 2,853 2,918Propertyandequipment,net 27,807 27,788Otherassets 1,105 1,202

Totalassets 7,306,552$ 6,529,547$

LIABILITIESGrantspayable 231,030$ 110,735$Accountspayableandaccruedliabilities 3,425 3,977Liabilitiestobeneficiariesfromsplitinterestagreements 33,412 36,594Depositsheldforothers 99,246 99,068

Totalliabilities 367,113 250,374

NETASSETSUnrestricted 6,772,697 6,122,082Temporarilyrestricted 65,133 55,680Permanentlyrestricted 101,609 101,411

Totalnetassets 6,939,439 6,279,173

Totalliabilitiesandnetassets 7,306,552$ 6,529,547$

ASSETS

LIABILITIESANDNETASSETS



CONSOLIDATEDSTATEMENTSOFACTIVITIESYearEndedDecember31,2015(withcomparativetotalsfortheyearendedDecember31,2014)

(inthousands)

2014Temporarily Permanently

Unrestricted Restricted Restricted Total TotalREVENUESANDSUPPORTContributions 1,217,766$ 13,992$ 487$ 1,232,245$ 1,970,996$Investmentincome,netofinvestmentfeesof$17,271and$9,414in2015and2014,respectively 32,899 ‐ ‐ 32,899 23,060

Netrealizedgainoninvestments 493,864 ‐ ‐ 493,864 448,138Changeinvalueofsplitinterestagreements ‐ (244) (272) (516) 724Otherincome 7,612 ‐ ‐ 7,612 5,988Netassetsreleasedfromrestrictionsandreclassifications 5,572 (5,555) (17) ‐ ‐

1,757,713 8,193 198 1,766,104 2,448,906

Unrealizedgains(losses)oninvestments,net (231,332) 1,260 ‐ (230,072) 348,709

TOTALREVENUESANDSUPPORT 1,526,381 9,453 198 1,536,032 2,797,615

EXPENSESGrantsawarded 821,119 ‐ ‐ 821,119 956,834OperatingexpensesProgram 37,608 ‐ ‐ 37,608 27,172Generalandadministrative 13,158 ‐ ‐ 13,158 11,602Development 3,881 ‐ ‐ 3,881 3,914

TOTALEXPENSES 875,766 ‐ ‐ 875,766 999,522

CHANGEINNETASSETS 650,615 9,453 198 660,266 1,798,093

NETASSETS,beginningofyear 6,122,082 55,680 101,411 6,279,173 4,481,080

NETASSETS,endofyear 6,772,697$ 65,133$ 101,609$ 6,939,439$ 6,279,173$

2015



CONSOLIDATEDSTATEMENTSOFCASHFLOWSYearsEndedDecember31,2015and2014(inthousands)

2015 2014

CASHFLOWSFROMOPERATINGACTIVITIESChangeinnetassets 660,266$ 1,798,093$Adjustmentstoreconcilechangeinnetassetstocashflowsfromoperatingactivities:

Loss(gain)ondisposalofpropertyandequipment 3 (4)Depreciationandamortization 1,730 1,602Noncashcontributions (72,595) (523,772)Contributionsreceivedforlong‐termpurposes (487) (3,518)Netrealizedandunrealized(gains)from

changesinfairvalueofinvestments (263,792) (796,847)Changesinassetsandliabilities

Contributionsandgrantsreceivable (8,033) (725)Otherreceivables (132) (39)Fairvalueofcharitable

remaindertrustsandrelatedaccounts (3,117) 1,988Otherassets 97 (159)Grantspayable 120,295 9,048Accountspayableandaccruedliabilities (552) 1,148

Cashflowsfromoperatingactivities 433,683 486,815

CASHFLOWSFROMINVESTINGACTIVITIESProceedsfromsalesofinvestments 2,866,584 3,055,084Purchasesofinvestments (3,307,717) (3,503,235)Paymentsreceivedonnotesreceivable (1,587) (1,542)Purchasesoffixedassets (1,752) (1,078)Depositsheldforothers 178 (3,101)

Cashflowsusedininvestingactivities (444,294) (453,872)

CASHFLOWSFROMFINANCINGACTIVITIESContributionsreceivedforlong‐termpurposes 487 3,518

Cashflowsfromfinancingactivities 487 3,518

NETCHANGESINCASHANDCASHEQUIVALENTS (10,124) 36,461

CASHANDCASHEQUIVALENTS,beginningofyear 121,857 85,396

CASHANDCASHEQUIVALENTS,endofyear 111,733$ 121,857$

SILICONVALLEYCOMMUNITYFOUNDATIONNOTESTOCONSOLIDATEDFINANCIALSTATEMENTS

Page6

NOTE1–DESCRIPTIONOFTHEFOUNDATION

SiliconValleyCommunityFoundation(“SVCF”) isapubliclysupported,nonprofitpublicbenefit corporation,whichreceived its IRSexemption inNovember 2006 and officially launched in January 2007. Silicon Valley Community Foundation advances innovativephilanthropic solutions to challenging problems. As the largest community foundation in the world, we engage donors andcorporationsfromSiliconValley,acrossthecountryandaroundtheglobetomakeourregionandworldbetterforall.Ourpassionforhelpingpeopleandorganizationsachievetheirphilanthropicdreamshascreatedaglobalphilanthropicenterprisecommittedtothebeliefthatpossibilitiesstarthere.

Mission:

SiliconValleyCommunityFoundationisacomprehensivecenterofphilanthropy.Throughvisionaryleadership,strategicgrantmakingandworldclassexperience,wepartnerwithdonorstostrengthenthecommongoodlocallyandthroughouttheworld.

Programs:

Advisedfunds–SVCFoffersseveraltypesoffundsthatenabledonorstoidentifyfundingopportunitiesalignedwiththeirvaluesandcharitableinterests.Donoradvisedfundsallowdonorstorecommendgrantrecipients,subjecttoSVCF’sduediligenceandapproval.Collectively,thesefundsgrantedapproximately$573,000,000and$814,000,000tocharitableorganizationsduringtheyearsendedDecember31,2015and2014,respectively.

Corporateadvised–SVCFmanagesoneofthelargestcorporateadvisedfundprogramsamongallU.S.basedcommunityfoundations.SVCFassists in thegrantmakingprocess,workswithemployeecontributioncommittees,builds community‐widepartnershipsandworkswith corporate fundholderson community relationsactivities.These fundsmadegrantsofapproximately$52,000,000and$35,000,000duringtheyearsendedDecember31,2015and2014,respectively.

Communityendowmentand fieldof interest funds – Through theCommunity Endowment Fund or named endowment funds,donors can contribute funds to address community needs. These funds are a permanent charitable resource. They grow throughcommunity support and provide much‐needed funding for local programs and services. They allow SVCF to act strategically toimprovethecommunitybyaddressingthemosturgentneedswithone‐timeormulti‐yeargrants.

Fieldof interestfundsenabledonorstoidentifyabroadcharitablepurposeoracategoryof interest(e.g.,arts,educationorhumanservices)and/orgeographicareaortargetpopulation(e.g.,seniorcitizens,childrenandyouthorimmigrants).

Together, thecommunityendowmentandfieldof interest fundsgrantedapproximately$14,000,000and$9,000,000tocharities inSanMateoandSantaClaracountiesduringtheyearsendedDecember31,2015and2014.

Scholarshipfunds–SVCFadministers50scholarshipprograms.ThemajorityaredesignatedforcurrentorformerresidentsofSanMateo and Santa Clara counties. During the years ended December31, 2015 and 2014, SVCF awarded 515 and 577 scholarshipstotalingapproximately$2,250,000and$2,328,000,respectively.

Supportingorganizations–SVCFworkswithanumberofsupportingorganizations.SVCFappointsamajorityofthemembersofthegoverningboardsofthesupportingorganizations.Eachgoverningboardmaycreateitsowninvestmentpolicyandgrantguidelines.In2015, the following supporting organizationswere effectively under SVCF’s control andwere consolidated for financial statementpurposes:

WilliamH.CilkerFoundation TheRealEstateTrustDirkandCharleneKabcenellFoundation SobratoFoundationTheChong‐MoonLeeFoundation ReddereFoundationBernardA.NewcombFoundation TheSkollFundRaisingAReader TheStarHillFundStartup:EducationIntervalienFoundation

GoodVenturesEntrepreneurs’Foundation

DriscollFamilyFoundation

During2015,onesupportingorganizationwasclosedandtransitionedtoapubliccharity.


Page7

Affiliate–In2015,thefollowingaffiliatewaseffectivelyunderSVCF’scontrolandwasconsolidatedforfinancialstatementpurposes:ResonanceHouse,LLC

NOTE2–SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES

Basisofpresentation–Theconsolidatedfinancialstatementshavebeenpreparedontheaccrualbasisofaccounting.

Principlesofconsolidation–TheaccompanyingconsolidatedfinancialstatementsasofDecember31,2015and2014includethefinancialstatementsofSVCFanditssupportingorganizationsandaffiliate,listedinNote1above.Inter‐organizationaltransactionsandbalanceshavebeeneliminatedintheconsolidation.

Prioryearinformation–Theconsolidatedfinancialstatementsincludecertainprior‐yearsummarizedcomparativeinformationintotalbutnotbynetassetclass.Suchinformationdoesnotincludesufficientdetailtoconstituteapresentationinconformitywithaccounting principles generally accepted in the United States of America. Accordingly, such information should be read inconjunction with SVCF and its supporting organizations and affiliate’ consolidated financial statements for the year endedDecember31,2014,fromwhichthesummarizedinformationwasderived.

Cashandcashequivalents–Forconsolidated financialstatementpurposes,SVCFand itssupportingorganizationsandaffiliateconsiderallcashaccounts,exceptthosebeingheldforinvestmentpurposes,andallhighlyliquiddebtinstrumentspurchasedwithamaturityof90daysorlesstobecashequivalents.

Descriptionofnetassets–Netassetsareclassifiedbasedonexistenceorabsenceofdonor‐imposedrestrictionsasfollows:

Unrestricted isdefinedas thatportionofnetassets thathasnouseor timerestrictions.Thebylawsof SVCF includeavarianceprovisiongivingtheBoardofDirectors(the“Board”)thepowertomodifyanyrestrictionorconditiononthedistributionoffundsforanyspecifiedcharitablepurposeortospecifiedorganizationsif,inthesolejudgmentoftheBoard(withoutthenecessityoftheapprovalofanyotherparty),suchrestrictionorconditionbecomes,ineffect,unnecessary,incapableoffulfillment,orinconsistentwiththecharitableneedsofthecommunityorareaserved.Basedonthatprovision,SVCFclassifiescontributions,exceptasnotedbelow,asunrestrictedforfinancialstatementpresentation.

Temporarilyrestrictedisdefinedasthatportionofnetassetsthatconsistofarestrictiononthespecificuseortheoccurrenceofacertain future event. Contributions unconditionally promised, including irrevocable planned gifts, which are scheduled to bereceived more than one year in the future, are recorded at fair value, classified as temporarily restricted until the funds arereceived,andarediscountedataratecommensuratewiththerisksinvolved.Theaccumulationofassets,abovehistoricgiftvalue,indonorrestrictedendowmentfundsisclassifiedastemporarilyrestricteduntilappropriatedforusebasedonSVCF’sspendingpolicy. SVCF also receives grants from charitable foundations and local agencies for initiatives and special projects for whichpurposerestrictionsapply.Suchgrantsandcontributionsarerecordedastemporarilyrestricteduntilthepurposerestrictionsaremet.Whenthepurposerestrictionisaccomplished,temporarilyrestrictednetassetsarereclassifiedtounrestrictednetassetsandreportedasnetassetsreleasedfromrestrictions.

Permanentlyrestricted isdefinedas thatportionofnetassetsconsistingofthe initial fairvalueof thegiftswherethedonorhasspecified that the assets donated are to be retained in an endowment, providing a permanent source of revenue for charitablepurposes. SVCF also records contributions to charitable trusts as permanently restricted where the donor has permanentlyrestrictedthecorpusofthetrust.

Investments–Investmentsarestatedatfairvalue.

Endowmentfunds:

Interpretationofrelevantlaw–TheBoardofSVCF,withtheadviceoflegalcounsel,hasdetermineditholdsassetswhichmeetthedefinitionofendowmentfundsundertheUniformPrudentManagementofInstitutionalFundsAct(“UPMIFA”).Asaresultofthisinterpretation,thecorpusoffundssubjecttoUPMIFAisclassifiedaspermanentlyrestricted.Thecorpusrepresentsthefairvalueoftheoriginalgiftsasofthegiftdate,andallsubsequentgiftswherethedonorhasindicatedthegiftberetainedpermanently.Thevalueofassets inexcessoforiginalgifts indonorrestrictedendowmentfundsareclassifiedastemporarilyrestrictednetassetsuntilappropriatedforexpenditurebySVCF.


Page8

Fromtimeto time, the fairvalueof theassetsassociatedwith individualdonorrestrictedendowment fundsmay fallbelowthelevelclassifiedaspermanentlyrestrictednetassets.AtDecember31,2015and2014,SVCFhad24and13endowmentfundswithdeficiencies of this nature totaling approximately $1,989,000 and approximately $909,000, respectively. These deficiencies arereflectedinunrestrictednetassets.

InaccordancewithUPMIFA,SVCFconsidersthefollowingfactorsinmakingadeterminationastotheappropriationofassetsforexpenditure: 1)the duration and preservation of the fund, 2)the purposes of the organization and the donor‐restrictedendowmentfund,3)generaleconomicconditions,4)thepossibleeffectofinflationanddeflation,5)theexpectedtotalreturnfromincomeandtheappreciationofinvestments,6)otherresourcesoftheorganization,and7)theinvestmentpoliciesoftheSVCF.

Investmentandspendingpolicies–SVCFhasadoptedinvestmentandspendingpoliciesforendowedassetsthatattempttoprovideapredictablestreamoffundingforprogramssupportedbyitsendowmentwhileseekingtomaintainthepurchasingpoweroftheendowedassets.Theinvestmentandspendingpoliciesworktogethertoachievethisobjective.Theinvestmentpolicyestablishesanachievablereturnobjectivethroughdiversificationofassetclasses.

To accomplish the long‐term rate of return objectives, SVCF relies on a total return strategy in which investment returns areachieved throughboth capital appreciation (realizedandunrealized) and current yield (interest anddividends). SVCF targetsadiversifiedassetallocationwithanemphasisonequitybasedinvestments,withinprudentriskparameters.

The spending policy determines the amount of money to be distributed annually from SVCF’s various endowed funds forgrantmaking and operational support. The Board generally approves the spending policy in the fourth quarter of the year forgrants tobemade inthe followingyear.SVCFassessesasupport feetoendowedfundswhich isaddedtothespendingrate forgrants and is a component of the total spending policy. The spending policy for support fees ranges from .5% to 3.5% of theaveragedailybalanceofthefundoverthepreviousmonth,andvariesbyfundtype.Thespendingpolicyforgrantsvariesbyfundtypeandwhetherthebalanceofthefundisaboveorbelowhistoricgiftvalue.Forfundswithbalancesabovehistoricgiftvaluethespendingpolicyforgrantsis4.5%or5.0%ofthefundbalanceaveragedover12trailingquarters.In2009,SVCFadoptedaslidingscalespendingpolicytoaddressunderwaterfunds,definedasthosefundswithbalancesbelowhistoricgiftvalue.ThetablebelowillustratesthereductioninspendingpolicyforgrantsfromfundswithbalancesthatareunderhistoricgiftvalueatDecember31,2015and2014:

SpendingPolicyforUnderwaterFunds

AmountUnderwaterReductioninSpending

SpendingRateforFundswith2%SupportFee

SpendingFateforFundswith.5%SupportFee

Lessthan8% None 4.50% 5.00%Over8%lessthan16% 1/3 3.00% 3.33%Over16%lessthan30% 2/3 1.50% 1.67%Over30% Full 0.00% 0.00%

The spendingpolicy is consistentwith SVCF’s objective tomaintainpurchasingpower of endowed assets aswell as to providestablesupporttothecommunity.

ConcentrationsofriskSVCFanditssupportingorganizationsandaffiliaterecognizethereareadditionalinherentrisksassociatedwith non‐publicly traded securities. Risk is managed through rigorous evaluation before an investment is made, quarterlymonitoringofvaluationsandregularcommunicationwithinvestmentmanagers.

Toaddressmarketandcreditrisksofinvestments,SVCFanditssupportingorganizationsandaffiliatemaintainformalinvestmentpoliciesthatsetoutperformancecriteria,provideinvestmentguidelinesandrequireregularreviewof investmentperformance.Investments are managed by multiple investment managers, who have responsibility for investing the funds using variousinvestmentstrategies.Aninvestmentconsultantisalsoutilized.SVCFanditssupportingorganizationsandaffiliatehavecustodyagreementswithselectedbanks,whichprocesstransactionsatthedirectionofauthorizedstaffandinvestmentmanagers.

Inaddition,concentrationsofmarketandcredit riskexist forcharitableremainder trustsaswellas forcashequivalents. In theregularcourseofbusiness,SVCFanditssupportingorganizationsandaffiliatesmaymaintainoperatingcashbalancesatvariousbanks in excess of federally insured limits. Management does not believe it is exposed to any significant credit risk on uninsuredamounts.


Page9

Otherconcentrations:

Majorcontributions–FortheyearendedDecember31,2015,SVCFreceived70%ofitscontributionsfrom12donors.FortheyearendedDecember31,2014,SVCFreceived73%ofitscontributionsfromfourdonors.

Supporting organization assets – 7.3% and 8.5% of SVCF and its supporting organizations and affiliate’ total assets atDecember31,2015and2014,respectively,wereinonesupportingorganization.

Concentratedinvestments–29%and33%ofSVCFanditssupportingorganizations’totalinvestmentswereinonecompany’spubliclytradedcommonstockatDecember31,2015and2014,respectively.

Notes receivable – In lieu of discounting notes receivable having a maturity date that cannot be reasonably determined, thedifference between the risk free rate of return at the date of issuance of the notes and the actual interest rate of the notes iscalculatedand,ifmaterial,recordedannuallyasinterestincomeorexpense.

Split‐interestgifts – SVCF has an irrevocable remainder beneficiary interest in charitable remainder trusts and charitable giftannuitieswhosematuritiesarebasedonthelifeexpectanciesoftheincomebeneficiariesoraspecifiedtermofyears.

Trustsandannuities inwhichSVCF isboth trusteeandremainderbeneficiaryarerecordedat the fairvalueof theassets in thetrusts. The corresponding liability for certain future amounts due to beneficiaries is recorded at the fair value of the annuitypayments.Thepresentvaluediscount ratesused forall trustsandannuitieswere2.61%and2.74%atDecember31,2015and2014,respectively.

Trusts forwhich SVCFdoesnot act as trustee are recorded at thepresent value of the assets to be received in the future. Thepresentvaluediscountrateusedforalltrustsandannuitieswere2.61%and2.74%atDecember31,2015and2014,respectively.

Propertyand equipment – Acquisitions and donations of property and equipmentwith a fair value in excess of $10,000 arecapitalizedanddepreciatedusingthestraight‐linemethodovertheestimatedusefullivesoftheassetsrangingfromthreetothirty‐nineyears.Leaseholdimprovementsareamortizedusingthestraight‐linemethodoverthe lesseroftheassets’estimatedusefullivesorthetermoftheapplicablelease.

Depositsheldforothers–SVCFacceptsfundsfromunrelatednonprofitorganizationswhodesiretohaveSVCFprovideefficientinvestmentmanagement, programmatic expertise and technical assistance. A liability is recorded at the estimated fair value ofassetsdepositedwithSVCFbynonprofitorganizations.AssetsareinvestedininvestmentpoolsofferedbySVCF.

SVCFInvestmentPoolAssets,December31,2015(inthousands)Long‐TermGrowth SocialImpact Balanced Short‐Term CapitalPreservation

$488,710 $50,631 $122,277 $135,703 $504,586

Grantexpense–Grantsarerecognizedwhenallsignificantconditionsaremetbygrantees,allduediligencehasbeencompleted,andtheyareapprovedbystafforboardcommittee.GrantrefundsarerecordedasareductionofgrantexpenseatthetimeSVCFreceivesor isnotifiedof therefund.Grantspayablerepresent thepresentvalueofgrants tobepaidoverayearandhavebeendiscountedat1.68%.

Revenue recognition – Contributions are recognized as revenue when received or unconditionally promised. Unconditionalpromisestogivethatareexpectedtobecollectedinfutureyearsarerecognizedatfairvaluebasedondiscountedcashflows.Thediscountontheseamountsiscomputedusingtherateapplicableintheyearthepromiseswerereceived.Contributionsofassetsotherthancasharerecordedattheirestimatedfairvalue.Realestatecontributedisrecordedatappraisedvalueonthedateofthegiftandisgenerallymadeavailableforsaleassoonaspracticable.Contributionsofpublicstockarerecordedatthemeanofthequoted market price on the date of donation. Amortization of discount is recorded as additional contribution revenue inaccordancewithdonor‐imposedrestrictions,ifany,ontheoriginalcontributions.

Allowance fordoubtfulaccounts –TheSVCFand its supportingorganizations andaffiliateprovides for amounts thatmaybeuncollectible on contributions, grants and other receivables. Management estimates the amount based on a variety of factors,whichinclude,butarenotnecessarilylimitedto:priorcollectionhistory,theabilityofthedebtortopay,andhistoricaltrends.FortheyearsendedDecember31,2015and2014,theallowancesrelatedtonotesandotherreceivableswereapproximately$0and$3,000,respectively.


Page10

In‐kindcontributions – Significant donatedproperty and equipment is recorded at estimated fair value at the date of receipt.Contributedservices,whichrequireaspecializedskillandforwhichSVCFanditssupportingorganizationsandaffiliatewouldhavepaidforifnotcontributed,arerecordedattheirestimatedfairvalueatthedatethecontributedservicesarereceived.FortheyearsendedDecember31,2015and2014,SVCFanditssupportingorganizationsandaffiliaterecognizedapproximately$8,534,000and$7,263,000,respectively,incontributedservices.Theexpensesrelatedtothesecontributionswereallocated72%toprogramand28%togeneralandadministrativefor2015comparedto70%toprogramand30%togeneralandadministrativefor2014.

Functional expense allocations – Expenses which apply to more than one functional category have been allocated amongprogram, general and administrative, and fundraising based on the time spent on these functions by specific employees asestimated bymanagement. Indirect expenses such as facilities costs are allocated based on square footage used by functionaldepartments.Otherindirectexpenses,suchasinformationtechnologyandgeneralofficesuppliesareallocatedbasedontheoverallnumberofstaffinthevariousfunctionalcategories.Certainmarketingmaterialcostsareallocatedbasedonthepercentageofthepublicationdevotedtoeachfunctionalarea.Allothercostsarechargeddirectlytotheappropriatefunctionalcategory.

Use of estimates – The preparation of consolidated financial statements in conformity with accounting principles generallyaccepted in the United States of America requires management to make estimates and assumptions that affect the reportedamountsofassetsand liabilitiesat thedateof theconsolidated financial statementsand thereportedamountsof revenuesandexpensesduringthereportingperiod.Actualresultscoulddifferfromtheseestimates.

Incometaxes–SVCFanditssupportingorganizationsandaffiliatearetax‐exemptorganizationsandarenotsubjecttofederalorstate income taxes, except on unrelated business income, in accordance with Section501(a) of the Internal Revenue Code. Inaddition, SVCF and its supporting organizations and affiliate qualified for the charitable contribution deduction underSection170(b) (1) (A)of the InternalRevenueCodeandhavebeenclassifiedasorganizations thatarenotprivate foundations.Unrelated business income tax, if any, is immaterial and no tax provision has been made in the accompanying consolidatedfinancialstatements.

SVCF and its supporting organizations and affiliate do not have anymaterial uncertain tax positions. SVCF and its supportingorganizationsandaffiliatefileinformationaltaxreturnsintheU.S.federalandCaliforniajurisdictions.

Subsequent events – Subsequent events are events or transactions that occur after the consolidated Statement of FinancialPositiondate,butbeforeconsolidatedfinancialstatementsareissued.SVCFanditssupportingorganizationsandaffiliaterecognizeintheconsolidatedfinancialstatementstheeffectsofallsubsequenteventsthatprovideadditionalevidenceaboutconditionsthatexistedatthedateoftheconsolidatedStatementofFinancialPosition,includingtheestimatesinherentintheprocessofpreparingthe consolidated financial statements. The consolidated financial statements do not recognize subsequent events that provideevidence about conditions thatdidnot exist at thedateof the consolidatedStatementof FinancialPosition, but arose after theconsolidatedStatementofFinancialPositiondateandbeforetheconsolidatedfinancialstatementsareavailabletobeissued.

SVCFanditssupportingorganizationsandaffiliatehaveevaluatedsubsequenteventsthroughJune2,2016,whichisthedatetheconsolidatedfinancialstatementswereavailabletobeissued.

NOTE3–FAIRVALUEMEASUREMENT

Fairvalueofinvestments–TheFinancialAccountingStandardsBoard(“FASB”)hasissuedAccountingStandardsUpdate(“ASU”)No.2015‐07,FairValueMeasurement(Topic820):DisclosuresforInvestmentsinCertainEntitiesThatCalculateNetAssetValueperShare(orItsEquivalent).TheASUappliestoreportingentitiesthatelecttomeasurethefairvalueofaninvestmentusingthenetassetvaluepershare(or itsequivalent)practicalexpedient.Topic820,FairValueMeasurement,permitsareportingentity,asapracticalexpedient,tomeasurethefairvalueofcertaininvestmentsusingthenetassetvaluepershareoftheinvestment.PriortoimplementationoftheASU,investmentsvaluedusingthepracticalexpedientwerecategorizedwithinthefairvaluehierarchy.TheASU removed the requirement to categorize by level within the fair value hierarchy all investments for which fair value ismeasured using the net asset value per share practical expedient. The ASU also removes the requirement to make certaindisclosuresforallinvestmentsthatareeligibletobemeasuredatfairvalueusingthenetassetvaluepersharepracticalexpedient.Rather,thosedisclosuresarelimitedtoinvestmentsforwhichtheentityhaselectedtomeasurethefairvalueusingthatpracticalexpedient.

The ASU is effective for years beginning after December15, 2016; however, SVCF has elected to adopt it early. Note 3 of thefinancialstatementshasbeenupdatedtoreflecttheapplicationofthisASU.Investmentsforwhichfairvalueismeasuredusingthenetassetvaluepersharepracticalexpedienthavebeenremovedfromthefairvaluehierarchyinallperiodspresented.


Page11

Fairvalue isdefinedas theprice thatwouldbe received to sell anassetorpaid to transfera liability inanorderly transactionbetweenwillingmarketparticipantsatthemeasurementdate.SVCFanditssupportingorganizationsandaffiliatedeterminesfairvaluebasedonthefairvaluehierarchyestablishedunderapplicableaccountingguidancewhichrequiresanentitytoprioritizetheuseofobservablemarket‐basedinputsovertheuseofunobservableinputswhenmeasuringfairvalue.Therearethreelevelsofinputsused tomeasure fair value. Financial instruments are consideredLevel1when thevaluation isbasedonquotedmarketpricesinactivemarketsforidenticalassetsorliabilities.Level2financial instrumentsarevaluedusingquotedpricesforsimilarassetsorliabilities,quotedpricesinmarketsthatarenotactive,ormodelsusinginputsthatareobservableorcanbecorroboratedbyobservablemarketdataforsubstantiallythefulltermoftheassetsorliabilities.Financial instrumentsareconsideredLevel3whentheirvaluesaredeterminedusingpricingmodels,discountedcashflowmethodologiesorsimilartechniques,andatleastonesignificantmodelassumptionorinputisunobservableandwhendeterminationofthefairvaluerequiressignificantmanagementjudgment or estimation. Financial instruments are considered valued at net asset value (“NAV”) when the investment (i.e.,commingled funds, hedge funds, private equity funds) is valued at NAV based on capital statements provided by entities thatcalculatefairvalueusingnetassetvaluepershareoritsequivalent.

The followingtablespresent thebalanceofassetsand liabilitiescarriedat fairvalueontheconsolidatedstatementsof financialpositionasofDecember31,2015and2014:

ASSETSInvestments Total Level1 Level2 Level3 NAVCashEquivalents

MoneyMarketSecurities 1,017,067$ 1,017,067$ ‐$ ‐$ ‐$BankCDsandDeposits 133,823 ‐ 133,823 ‐ ‐

GlobalBondsGovt/Corporate 906,262 816,066 88,647 ‐ 1,549ForeignBonds 65,003 12,073 ‐ ‐ 52,930HighYield 33,480 470 ‐ ‐ 33,010

GlobalEquitiesUSEquity 3,482,389 3,438,070 ‐ ‐ 44,319

International 208,813 64,370 ‐ ‐ 144,443EmergingMarket 34,232 14,563 ‐ ‐ 19,669

AlternativesCommodities 26,552 11,740 ‐ ‐ 14,812HedgeFund 627,992 ‐ ‐ ‐ 627,992PrivateEquity 449,270 ‐ ‐ 61,357 387,913RealAssets 54,757 ‐ ‐ 24,772 29,985RealEstate 103,925 ‐ ‐ 35,504 68,421

Totalinvestments 7,143,565$ 5,374,419$ 222,470$ 121,633$ 1,425,043$

SplitinterestagreementsBeneficialinterestsincharitableremaindertrusts 2,853$ ‐$ ‐$ 2,853$ ‐$

LIABILITIESSplitinterestagreementsLiabilitiestobeneficiariesfromsplitinterestagreements (33,412)$ ‐$ ‐$ (33,412)$ ‐$

12/31/2015(inthousands)


Page12

ASSETSInvestments Total Level1 Level2 Level3 NAVCashEquivalents

MoneyMarketSecurities 776,791$ 776,791$ ‐$ ‐$ ‐$BankCDsandDeposits 139,897 ‐ 139,897 ‐ ‐

GlobalBondsGovt/Corporate 568,256 406,614 161,642 ‐ ‐ForeignBonds 77,834 18,388 ‐ ‐ 59,446HighYield 34,163 3,447 ‐ ‐ 30,716

GlobalEquitiesUSEquity 3,488,331 3,405,902 15,752 ‐ 66,677International 195,016 141,635 ‐ ‐ 53,381EmergingMarket 45,321 22,810 ‐ ‐ 22,511

AlternativesCommodities 37,358 ‐ 2,788 ‐ 34,570HedgeFund 540,199 ‐ ‐ ‐ 540,199PrivateEquity 345,254 ‐ ‐ 48,114 297,140RealAssets 40,668 ‐ ‐ 19,535 21,133RealEstate 76,957 ‐ ‐ 14,539 62,418

Totalinvestments 6,366,045$ 4,775,587$ 320,079$ 82,188$ 1,188,191$

SplitinterestagreementsBeneficialinterestsincharitableremaindertrusts 2,918$ ‐$ ‐$ 2,918$ ‐$

LIABILITIESSplitinterestagreementsLiabilitiestobeneficiariesfromsplitinterestagreements (36,594)$ ‐$ ‐$ (36,594)$ ‐$

December31,2014(inthousands)

Valuation process – Finance and investment staff determine fair value measurement policies and procedures for assets andliabilities under the supervision of the Chief Operating Officer and Chief Financial Officer. These policies and procedures arereassessedannuallytodetermineifthecurrentvaluationtechniquesarestillappropriate.Avarietyofqualitativefactorsareusedtosubjectivelydetermine themostappropriatevaluationmethodologies.Methodologiesareconsistentwith themarket, incomeandcostapproaches.Unobservableinputsusedinfairvaluemeasurementsareevaluatedandadjustedonanannualbasis,orasnecessary based on current market conditions and other third party information. In determining the reasonableness of themethodology, SVCFevaluates a varietyof factors includinga reviewof existing agreements, economic conditions, industry, andmarketdevelopments.Certainunobservableinputsareassessedthroughreviewofcontracttermswhileothersaresubstantiatedutilizing available market data including but not limited to market comparables, qualified opinions, and discount rates andmortalitytablesforsplitinterestagreements.

Investmentsincludethoseheldinindividualfundsestablishedbydonors,supportingorganizations,charitabletrustsandavarietyof investmentpoolsmadeavailable todonor funds for investmentofgiftedassets.Separateassetallocationsaremaintainedforeachinvestmentpool,supportingorganizationandcharitabletrust.Theassetallocationofanyindividualdonorfundisdependentonthedonor’schoiceofapprovedinvestmentpools.Advisedfundsofonemillionormoreareeligibletobe investedseparatelyfromthepools,subjecttoreviewandapprovalbytheSVCF’sinvestmentcommittee.

Alternativeinvestmentsincluderedeemableinterestsinhedgefundsandcommingledpools;andnonredeemableinterestsinrealestate, real assets andprivate equity funds.Alternative investmentsmaybe structured as limitedpartnerships, limited liabilitycompanies, commingled trusts and offshore investment funds. This class of assets also includes direct investment in privatecompanies,realestate,realassetsandcommodities.Ofthetotalalternativeinvestments,33%and39%wereconcentratedinonesupportingorganizationasofDecember31,2015and2014,respectively.

Derivativesareusedbyonesupportingorganizationashedginginstrumentstoprotectagainstlossandtoachievedesiredmarketexposure.Theseincludefuturescontracts,swaps,andexchange‐listedandover‐the‐counterputandcalloptionsonsecuritiesoronfinancialindices.ThefairvalueofderivativesheldatDecember31,2015and2014,was$(1,045,937)and$332,000,respectively.The change in net assets, as reported in the consolidated statements of activities, representing the amount of unrealized gains(losses)onderivativeinvestmentsheldatDecember31,2015and2014,was$(1,961,735)and$731,638,respectively.


Page13

ThefollowingtablepresentsinvestmentreturnsfortheyearsendedDecember31,2015and2014:

2015 2014

Investmentincome 50,170,504$ 32,473,745$Realizedandunrealizedgains,net 263,791,796 796,846,197Directinvestmentrelatedexpenses (17,271,134) (9,413,978)

296,691,166$ 819,905,964$

Level1,2and3valuationtechniquesandinputs:

Level1investmentsincludemarketablesecurities,exchangetradedfundsandcashequivalentsthatarecarriedatfairvaluebasedonobservablequotedmarketprices inactivemarkets;andmutual fundsthatarevaluedbasedonthenetassetvaluepersharecomputedbythefundmanagerandvalidatedbyasufficientlevelofobservableactivity(i.e.,purchasesandsales).

Level2investmentsincludebankissuedcertificatesofdepositthatarefullyFDICinsuredandvaluedusingmaturityandinterestrateasobservableinputs;domesticandforeignbondsotherthanU.S.Treasurysecuritiesthatarevaluedusingmatrixpricingormarketcorroboratedpricingand inputssuchasyieldcurvesand indices;physicalcommodities (i.e.,gold) thatarevaluedusingobservablequotedmarketpricesinactivemarketsfromindependentpricingproviders;andderivatives(i.e.,swapsandoverthecounter put and call options) that are valuedwith pricingmodels and inputs that utilize contractual terms including period tomaturity, and readily observable parameters including interest rates, volatility, correlation levels and credit quality of thecounterparty.

Level 3 investments include direct investments in real estate and private companies, and beneficial interests in nontrusteedcharitableremaindertrusts.Valuationtechniquesandinputsforeacharedescribedbelow.

Privateequity–Closely‐heldprivateorrestrictedstockisreviewednolessthanannuallyusingavarietyofqualitativefactorstosubjectivelydeterminethemostappropriatevaluationmethodologies.Valuationinputsmayinclude,butarenotlimitedto,initialinvestment amount (cost), observed transaction price used in subsequent valuations, liquidation value, qualified opinion orappraisal,companyfinancialstatements,pressreleasesandcompanycommentary,andtheSVCF’sownassessmentofvalueandapplicablediscounts.

Realassets–Directinvestmentsinphysicalassetsuchasland,preciousmetals,commoditiesandtimberarereviewednolessthanannuallyusingavarietyofqualitativefactorstosubjectivelydeterminethemostappropriatevaluationmethodologies.Valuationinputs may include, but are not limited to, the initial investment amount (cost), company financial statements and qualifiedappraisal.

Realestate–Directinvestmentinrealestateandinterestsinrealestatepartnerships(otherthanrealestatefunds)arereviewednolessthanannuallyusingavarietyofqualitativefactorstosubjectivelydeterminethemostappropriatevaluationmethodologiesconsistentwiththemarket,incomeandcostapproaches.Valuationinputsmayinclude,butarenotlimitedto,theinitialinvestmentamount(cost),partnership financialstatements,marketcomparables,qualifiedappraisal,discountedcash flow,andSVCF’sownassessmentofvalueandapplicablediscounts.Independentappraisalsofsignificantrealestateheldforinvestmentareconductedperiodically,dependingonthenatureoftheinvestment.

Beneficialinterests–Inputsusedforvaluationofremainderinterestsinnontrusteedcharitabletrustsincludefinancialstatementsprovidedbythetrustee,thelifeexpectancyoftheincomebeneficiaries,andanapplicablediscountratedeterminedbySVCF.Thefair value of beneficial interests is reviewed and updated annually by adjusting the current life expectancies of the incomebeneficiaries,applicablediscountrateandmarketvalueofeachtrust.


Page14

Level3roll‐forwardtables:

Investments–Thefollowingtablespresenttheroll‐forwardofLevel3investmentscarriedatfairvalue(includingthechangeinfairvalue)ontheconsolidatedstatementsoffinancialpositionfortheyearsendedDecember31,2015and2014:

2015 PrivateEquity RealAssets RealEstate

Balance,January1 82,187,579$ 48,113,957$ 19,534,966$ 14,538,656$Transfers (1,253,705) (1,253,705) ‐ ‐Purchases 55,553,188 29,882,399 948,526 24,722,263Sales (14,827,188) (11,064,925) ‐ (3,762,263)Investmentincome 7,489 7,489 ‐ ‐Investmentfees (260,139) (2,472) (257,667) ‐Realizedgains(losses) (2,469,433) (2,469,433) ‐ ‐Unrealizedgains(losses) 2,695,653 (1,855,995) 4,546,328 5,320

Balance,December31 121,633,444$ 61,357,315$ 24,772,153$ 35,503,976$

2014 PrivateEquity RealAssets RealEstate

Balance,January1 43,641,830$ 24,362,813$ 6,062,030$ 13,216,987$Transfers 2,189,999 2,189,999 ‐ ‐Purchases 34,057,708 17,444,624 13,333,084 3,280,000Sales (6,772,742) (5,070,367) ‐ (1,702,375)Investmentincome ‐ ‐ ‐ ‐Investmentfees (147,699) (31,759) (115,940) ‐Realizedgains(losses) (393,232) 199,393 ‐ (592,625)Unrealizedgains(losses) 9,611,715 9,019,254 255,792 336,669

Balance,December31 82,187,579$ 48,113,957$ 19,534,966$ 14,538,656$

SVCFanditssupportingorganizationsanditsaffiliate’policyistorecognizetransfersinandtransfersoutoffairvaluehierarchyclassificationsatthebeginningoftheperiodinwhichtheeventorchangeincircumstancesoccurred.Thechangeinnetassets,asreported in the consolidated statements of activities, attributable to unrealized gains (losses) on Level3 investments held atDecember31,2015and2014,was$2,695,653and$9,611,715,respectively.


Page15

Split interestagreements – The following tables present a roll‐forward for the fair value of beneficial interests in split interestagreements(includingthechangeinfairvalue)fornontrusteedcharitableremaindertrustsandlifeestates;andthefairvalueofliabilities to income beneficiaries of split interest agreements (including the change in fair value) for split interest agreementtrusteed by SVCF (i.e., charitable remainder and annuity trusts, gift annuities, and pooled income fund), as shown on theconsolidatedstatementsoffinancialpositionfortheyearsendedDecember31,2015and2014.

Balance,January1,2014 4,443,828$CRTmaturity (1,738,320)Unrealizedgains 212,244

Balance,December31,2014 2,917,752CRTmaturity ‐Unrealizedlosses (65,210)

Balance,December31,2015 2,852,542$

Balance,January1,2014 36,131,525$Newtrustsduring2014 1,160,389Trustmaturitiesduring2014 ‐Changeinvalueduetochangeinactuariallifeexpectancy (192,448)Changeinvalueinestimatedfairvalueofunderlyingtrustassets (505,775)

Balance,December31,2014 36,593,691Newtrustsduring2015 ‐Trustmaturitiesduring2015 (93,646)Changeinvalueduetochangeinactuariallifeexpectancy 463,233Changeinvalueinestimatedfairvalueofunderlyingtrustassets (3,551,209)

Balance,December31,2015 33,412,069$

Beneficialinterestsincharitableremaindertrusts

Liabilitiestobeneficiariesfromsplitinterestagreements

Investmentsvaluedatnetassetvalue(“NAV”)pershareoritsequivalent:

Thefollowingtablepresentstheunfundedcommitments,redemptionfrequency,andnoticeperiodforinvestmentsinentitiesthatcalculatefairvalueusingnetassetvaluepershareoritsequivalent:

Investments Note FairValueUnfunded

CommitmentsRedemptionFrequency

RedemptionNotice

Globalbondfunds a 87,489,356$ ‐$ Daily‐monthly 10‐90DaysGlobalequityfunds b 208,431,541 ‐ Daily‐quarterly 5‐60DaysCommodityFunds c 14,811,743 ‐ Monthly 30Days

Hedgefunds d 627,991,661 19,220,433 Monthly‐Illiquid 15Days‐Illiquid

Privateequityfunds e 387,912,879 144,964,390 Illiquid ‐Realassetsfunds f 29,984,676 15,639,399 Illiquid ‐Realestatefunds g 68,420,801 23,011,722 Illiquid ‐

Total 1,425,042,657$ 202,835,944$

(a) Global Bond Funds. This class includes investments in actively managed funds that invest in government, corporate orsovereignbonds. Investmentsareheldwithinacommingledtrustor limitedpartnershipstructure.Allof theassets in thisclassmayberedeemedonamonthlybasiswithoutrestrictions.

(b)GlobalEquityFunds.Thisclassincludesinvestmentsinactivelymanagedfundsthatinvestinstocksandothersecuritiesissuedbycompaniesindomesticandforeignmarkets.Investmentsareheldwithinacommingledtrustorlimitedpartnershipstructure.Theportionsthatmayberedeemedonamonthly,quarterlyorannualbasisare52%,35%and13%,respectively,17%cannotberedeemedduetoanoutstandinglockupof90daysormorebeyondDecember31,2015.Ofthetotal,19%issubjecttoafundlevelredemptiongateof10%perquarter.


Page16

(c)CommodityFunds.This class includes investments in activelymanaged commingled trust funds that invest in commodities,commodityfuturesorcompaniesinvolvedintheextractionorproductionofcommoditygoodsandrelatedservices,includingbutnotlimitedto,preciousmetals,oilandgas,agriculturalproducts,materials,naturalresourcesandrealestate.Alloftheassetsinthisclassmayberedeemedonamonthlybasiswithoutrestrictions.

(d) Hedge Funds. This class includes investments in actively managed hedge funds and fund‐of‐funds employing a variety ofstrategies, including but not limited tomulti‐strategy, absolute return, long/short, arbitrage, event‐driven, distressed debt andcredit.Hedgefundshavetheabilitytoinvestlongandshort,shiftfromanetlongpositiontoanetshortposition,applyleverage,invest in derivatives, and invest in the debt or equity of public and private companies in domestic and foreign markets.Approximately 27% of the value of this class cannot be redeemed due to an outstanding lockup of 90 days or more beyondDecember31, 2015. An additional 37%of the value of this class has redemption restrictions limiting redemption amounts perperiodtoafundlevelorinvestorlevelgateperperiod.Theremaining36%hasnorestrictionsonredemptionsbeyondredemptionfrequencyandnotificationperiod.

(e)PrivateEquityFunds.Thisclassincludesinvestmentsinactivelymanagedprivateequityfundsandfund‐of‐fundsthatinvestinprivate and public companies through a variety of strategies including but not limited to early and late stage venture capital,leveraged buy‐outs, distressed assets, special situations, and credit strategies. These investments are generally not redeemablefromthefundmanager. Instead,distributionsarereceivedthroughthe liquidationoftheunderlyingassetsofthefund,typicallyover10yearsormore.

(f)RealAssets Funds.This class includes investments in activelymanagedprivate equity funds that investprimarily inprivatecompanies involved inmining, energy and infrastructure, timber, agribusiness, natural resources, and other hard assets. Theseinvestmentsaregenerallynotredeemablefromthefundmanager.Instead,distributionsarereceivedthroughtheliquidationoftheunderlyingassetsofthefund,typicallyover5to10years.

(g) Real Estate Funds. This class includes investments in actively managed private equity funds that invest in commercialproperties in theU.S. and abroad includingbut not limited to: residential,multi‐family, office, retail, hotel, industrial andotherspecialties.These investmentsaregenerallynotredeemable fromthe fundmanager. Instead,distributionsarereceived throughtheliquidationoftheunderlyingassetsofthefund,typicallyover10yearsormore.

While SVCF and its supporting organizations and affiliate believe their valuationmethods are appropriate and consistentwiththoseusedbyothermarketparticipants,theuseofdifferentmethodologiesorassumptionstodeterminethefairvalueofcertainfinancial instruments could result in a different estimate of fair value at the reporting date. Those estimated valuesmay differsignificantlyfromthevaluesthatwouldhavebeenusedhadareadilyavailablemarketforsuchinvestmentsexisted,orhadsuchinvestmentsbeenliquidated,andthesedifferencescouldbematerialtotheconsolidatedfinancialstatements.

The table below presents information about significant unobservable inputs related tomaterial categories of Level3 financialassetsandliabilitiesatDecember31,2015:

FairValueatDecember31,2015 ValuationTechniques UnobservableInputs Range

Privateequitydirectinvestment 61,357,315$ Market,cost,orincome409Avaluation

Companyfinancials na*Realpropertyandrealestatelimitedpartnershipinterests 35,503,976$ Marketcomparables

Listingprices,Generalpartnerestimates na*

RealAssets 24,772,354$ Market,cost,orincome409Avaluation

Companyfinancials na*

Beneficialinterestsincharitableremaindertrusts 2,852,542$ Discountedcashflow

DiscountrateLifeexpectancies

3.3%,2to65years

Liabilitiestobeneficiariesfromsplitinterestagreements (33,412,069)$ Discountedcashflow

DiscountrateLifeexpectancies

3.3%,2to65years

*Notincludedduetothewiderangeofpossiblevaluesgiventhediversenatureoftheunderlyinginvestments.

Privateequity–Closely‐heldprivateorrestrictedstockisreviewednolessthanannuallyusingavarietyofqualitativefactorstosubjectivelydeterminethemostappropriatevaluationmethodologies.Valuationinputsmayinclude,butarenotlimitedto,initialinvestment amount (cost), observed transaction price used in subsequent valuations, liquidation value, qualified opinion orappraisal, company financial statements, press releases and company commentary, and SVCF’s own assessment of value andapplicablediscounts.


Page17

Realestate–Directholdingsofrealestateareinitiallyrecordedbasedonthefairvalueofthecontributedasset,andareupdatednoless than annually basedonmarket comparable sales activity or listingprices providedby listing agents orweb sourceswhenavailable. Interests inrealestate limitedpartnershipsare initiallyrecordedbasedonfairvalueofthecontributedasset,andareupdated annually using estimated fair value inputs provided by the general partner. Limited partnership interests are furtherdiscountedforlackofmarketabilityandcontrol.Valuationinputsmayinclude,butarenotlimitedto,theinitialinvestmentamount(cost), partnership financial statements, market comparables, qualified appraisal, discounted cash flow, and SVCF’s ownassessmentofvalueandapplicablediscounts.

Real assets – Encompassing a range of investment strategies, these direct investments derive their value from an underlyingphysical asset such as land, precious metals, commodities and timber. Participation is comprised through interests in limitedpartnershipsorlimitedliabilitycompanies.Investmentsareinitiallyrecordedoncostbasisandsubsequentlyatfairvalueusingavarietyofvaluationtechniquesutilizingappraisalsand/orcompanyfinancials.

Beneficialinterestsincharitableremaindertrustsandliabilitiestobeneficiariesforsplitinterestagreements–SVCFusesadiscountedcashflowmethodologytorecordthefairvalueofbeneficialinterestsinnontrusteedcharitableremaindertrustsandtodeterminetheliabilityassociatedwithsplitinterestagreements.Fairvalueinputsarereviewedandupdatedannuallybyadjustingthecurrentlifeexpectancyoftheincomebeneficiaries,anapplicablediscountratedeterminedbySVCF,andmarketvalueofeachtrustfromfinancialstatementsprovidedby the trustee.Adecrease in thediscountrateandashorter lifeexpectancywill increase the fairvalueofthetrustreceivableandliability,justasanincreaseinthediscountrateandalongerlifeexpectancywilldecreasethefairvalueofthetrustreceivableandliability.

NOTE4–CONTRIBUTIONSANDGRANTSRECEIVABLE

ContributionsandgrantsreceivableasofDecember31,2015,areexpectedtobecollectedasfollows:

Lessthan Greaterthanoneyear oneyear

Contributionsreceivable 4,582,062$ 4,500,000$Grantsreceivable 3,195,357 ‐

Total 7,777,419$ 4,500,000$

NOTE5–NOTESANDOTHERRECEIVABLE,NET

NotesreceivableasofDecember31,2015,consistedofthefollowing:Lessthan Greaterthanoneyear oneyear

Programrelatedloans 648,000$ 1,000,000$Executiveloans 61,269 ‐Otherreceivables 5,358,065 144,465

Total 6,067,334$ 1,144,465$

Programrelatedloansarestatedattheamountofunpaidprincipal.Aprogramofficerisassignedtomonitorthepaymentsandtheongoingstabilityoftheorganization.

Anoutstandingexecutiveloanexistsintheamountof$61,269atDecember31,2015,tothecurrentCEOandPresidentofSVCF.TheloanwasissuedwhentheCEOwashiredin2006toassistinlocatingaffordablehousingashetransitionedtotheWestCoast.Itbearsinterestat4.73%perannumandwillmaturein2016.Theannualpaymentofprincipalandinterestintheamountof$62,850foreachfiscalyear2015and2014wasforgiveninaccordancewiththeoriginalagreement.


Page18

NOTE6–PROPERTYANDEQUIPMENT,NET

PropertyandequipmentconsistedofthefollowingatDecember31:2015 2014

Leaseholdinterestinbuilding 18,700,000$ 18,700,000$Leaseholdimprovements 18,825,395 17,780,343Constructioninprogress 91,671 57,174Officeequipmentandother 1,948,510 1,752,315Computerequipment 4,373,839 4,094,981

Total 43,939,415 42,384,813Less:accumulateddepreciationandamortization (16,132,459) (14,596,772)

Propertyandequipment,net 27,806,956$ 27,788,041$

NOTE7–GRANTSPAYABLE,NET

Grantspayableareexpectedtobedisbursedasfollows:

YearsEndingDecember31,

2016 137,787,833$2017 30,449,8612018 52,814,5002019 8,814,0002020 3,550,000Thereafter 550,000

Total 233,966,194

Discount (2,936,469)

Grantspayable,net 231,029,725$

NOTE8–TEMPORARILYRESTRICTEDNETASSETS

TemporarilyrestrictednetassetswererestrictedforthefollowingatDecember31:

2015 2014

Charitableremaindertrustsandirrevocableplannedgifts 5,195,309$ 5,456,591$Specialprojects 12,981,805 4,521,197Endowment(unappropriatedearnings) 46,955,433 45,701,736

Total 65,132,547$ 55,679,524$

NOTE9–PERMANENTLYRESTRICTEDNETASSETS

PermanentlyrestrictednetassetswererestrictedforthefollowingatDecember31:

2015 2014

Charitableremaindertrustsandirrevocableplannedgifts 6,216,806$ 6,169,332$Endowment 95,391,758 95,241,391

Total 101,608,564$ 101,410,723$


Page19

NOTE10–ENDOWMENTDISCLOSURES

California enacted the Uniform Prudent Management of Institutional Funds Act (“UPMIFA”) effective January1, 2009. SVCF isrequired toprovide informationaboutnetassetswhicharedefinedasendowment.Classifications includeendowmentwhich ispermanently restricted by donors (permanently restricted net assets) and endowment which has been board designated. ThechangesinendowmentnetassetsfortheyearsendedDecember31,2015and2014,wereasfollows:

UnrestrictedTemporarilyRestricted

PermanentlyRestricted Total

Endowmentnetassets,January1,2014 83,087,628$ 45,579,379$ 89,795,665$ 218,462,672$Investmentreturn:Investmentincome 5,543,142 ‐ ‐ 5,543,142Netappreciation(realizedandunrealized) 5,999,133 102,357 ‐ 6,101,490

Totalinvestmentreturn 11,542,275 102,357 ‐ 11,644,632

Contributions 8,608 20,000 3,435,726 3,464,334

Appropriationofendowmentassetsforexpenditure (13,722,718) ‐ ‐ (13,722,718)

Otherchanges:Transfersto/(from)board‐designatedendowmentfunds 1,314,378 ‐ 2,010,000 3,324,378Othertransfers ‐ ‐ ‐ ‐

Endowmentnetassets,December31,2014 82,230,171 45,701,736 95,241,391 223,173,298Investmentreturn:Investmentincome 5,246,057 ‐ ‐ 5,246,057Netappreciation(realizedandunrealized) 1,564,553 1,259,998 ‐ 2,824,551

Totalinvestmentreturn 6,810,610 1,259,998 ‐ 8,070,608

Contributions 22,826 15,000 156,228 194,054

Appropriationofendowmentassetsforexpenditure (14,822,558) ‐ ‐ (14,822,558)

Otherchanges:Transfersto/(from)board‐designatedendowmentfunds (589,578) ‐ ‐ (589,578)Othertransfers 21,361 (21,301) (5,861) (5,801)

Endowmentnetassets,December31,2015 73,672,832$ 46,955,433$ 95,391,758$ 216,020,023$



Donorrestrictedendowments (1,071,080)$ 46,940,433$ 95,391,758$ 141,261,111$Boarddesignatedendowments 74,743,912 15,000 ‐ 74,758,912

Total 73,672,832$ 46,955,433$ 95,391,758$ 216,020,023$

December31,2015



Donorrestrictedendowments 2,016,054$ 45,680,435$ 95,241,391$ 142,937,880$Boarddesignatedendowments 80,214,117 21,301 ‐ 80,235,418

Total 82,230,171$ 45,701,736$ 95,241,391$ 223,173,298$

December31,2014

NOTE11–RELATEDPARTYTRANSACTIONS

In addition to the note receivable from the CEO and President described in Note 5, SVCF had the following related partytransactions:

Boardmembersmayhold interestsormaybeemployedbycorporationsorpartnershipswhosesharesor interestsareheldasinvestmentsbySVCFanditssupportingorganizationsandaffiliate.Aconflictofinterestpolicyhasbeenestablished,whichcoversinvestmentsandvendorrelationshipswithBoardmembers,volunteers,andstaff.


Page20

SVCF’svolunteermembersoftheBoardareactiveinoversightoffundraisingevents,activitiesandinmakingprivatecontributions.Contributionsreceived fromtheBoardor fromcompanieswithwhich theBoard isaffiliatedwereapproximately$916,000and$1,902,000fortheyearsendedDecember31,2015and2014,respectively.

SVCF’ssupportingorganizationsutilizetheservicesofaninvestmentmanagerwhosefounderisalsothefounderofthesupportingorganization. In‐kind investment management service fees of approximately $2,148,000 and $2,111,000 were donated by theinvestmentmanagerduringtheyearsendedDecember31,2015and2014,respectively.

NOTE12–RETIREMENTPLANS

SVCFhasadefinedcontribution retirementplanunderSection403(b)of the InternalRevenueCode, forwhich substantiallyallemployeesareeligible.Employeesmayelecttomakecontributionstotheplanundersalarydeferralprovisionsandareconsideredeligibleforthosevoluntarycontributionsonthefirstdayofemployment.SVCFcontributes5%ofsalarytotheplanforalleligibleemployees,asdefined,onapayperiodbasisbeginningwiththesecondyearofemployment.ContributionstotheplanfortheyearsendedDecember31,2015and2014,were$588,000and$507,000,respectively.

SVCF also provides a defined contribution plan under Section 457(b) of the Internal Revenue Code for all employees that aremembersofaselectgroupofmanagementandhighlycompensatedemployees.Theemployeesmayelecttomakecontributionstotheplanunderasalaryreductionagreement.EmployercontributionsareatthediscretionoftheSVCF.ContributionsbySVCFfortheyearsendedDecember31,2015and2014,were$18,000and$17,500,respectively.

NOTE13–COMMITMENTS

Themainofficefacility inMountainViewisretainedunderanoperating leasewithatermof10years,expiringinAugust2023.SVCFalsomaintainsconferenceandofficespaceinSanMateowithaleasethathasatermof10years,expiringinDecember2019.Inaddition,SVCFhasasatelliteofficeinSanFranciscowithaleasetermofoneyear,expiringJuly2016andanofficeinSanJosewith a lease expiring July 2018. Following is a schedule of futureminimum rental payments under itsnoncancelableoperatingleases.

YearsEndingDecember31,

2016 2,503,190$2017 2,671,5712018 2,930,8872019 2,995,7352020 2,645,148Thereafter 7,186,938

20,933,469$

Rental expense consisted of approximately $2,140,000 and $2,171,000 for the years ended December31, 2015 and 2014,respectively,forthemainofficefacility.RentalexpensefortheSanMateoofficeandconferencecenterwasapproximately$320,000and$227,000fortheyearsendedDecember31,2015and2014.LeaseexpensefortheSanJoseandSanFranciscosatelliteofficesfor theyearsendedDecember31,2015and2014,was$22,000and$20,000, respectively. Sublease income for theyearsendedDecember31,2015and2014,wasapproximately$0and$2,200,respectivelyforSVCF’sMountainViewoffice.

REPORTOFINDEPENDENTAUDITORSONINTERNALCONTROLOVERFINANCIALREPORTINGANDONCOMPLIANCEANDOTHERMATTERSBASEDONANAUDITOFFINANCIALSTATEMENTSPERFORMEDINACCORDANCEWITHGOVERNMENT

AUDITINGSTANDARDSTheAuditCommitteeofSiliconValleyCommunityFoundation

Wehave audited, in accordancewith the auditing standards generally accepted in theUnitedStatesofAmerica and the standards applicable to financial audits contained inGovernment Auditing Standardsissuedby theComptrollerGeneralof theUnitedStates, theconsolidated financial statementsofSiliconValley Community Foundation, which comprise the consolidated statement of financial position as ofDecember31,2015,andtherelatedconsolidatedstatementsofactivitiesandcashflowsfortheyearthenended,andtherelatednotestotheconsolidatedfinancialstatements,andhaveissuedourreportthereondatedJune2,2016.

InternalControlOverFinancialReporting

In planning and performing our audit of the consolidated financial statements, we considered SiliconValleyCommunityFoundation’sinternalcontroloverfinancialreporting(internalcontrol)todeterminetheauditproceduresthatareappropriateinthecircumstancesforthepurposeofexpressingouropinionon the consolidated financial statements, but not for the purpose of expressing an opinion on theeffectivenessofSiliconValleyCommunityFoundation’sinternalcontrol.Accordingly,wedonotexpressanopinionontheeffectivenessofSiliconValleyCommunityFoundation’sinternalcontrol.

A deficiency in internal control exists when the design or operation of a control does not allowmanagementoremployees, in thenormalcourseofperforming theirassigned functions, toprevent,ordetectandcorrect,misstatementsonatimelybasis.Amaterialweaknessisadeficiency,oracombinationofdeficiencies,ininternalcontrolsuchthatthereisareasonablepossibilitythatamaterialmisstatementof theentity's consolidated financial statementswillnotbeprevented,ordetectedandcorrected,onatimelybasis.Asignificantdeficiency isadeficiency,ora combinationofdeficiencies, in internal controlthat is lessseverethanamaterialweakness,yet importantenoughtomeritattentionbythosechargedwithgovernance.

Ourconsiderationofinternalcontrolwasforthelimitedpurposedescribedinthefirstparagraphofthissection and was not designed to identify all deficiencies in internal control that might be materialweaknessesorsignificantdeficiencies.Giventhese limitations,duringourauditwedidnot identifyanydeficiencies in internal control that we consider to be material weaknesses. However, materialweaknessesmayexistthathavenotbeenidentified.

ComplianceandOtherMatters

As part of obtaining reasonable assurance about whether Silicon Valley Community Foundation’sconsolidated financial statements are free from material misstatement, we performed tests of itscompliancewithcertainprovisionsoflaws,regulations,contracts,andgrantagreements,noncompliancewith which could have a direct and material effect on the determination of consolidated financialstatement amounts. However, providing an opinion on compliance with those provisions was not anobjective of our audit, and accordingly, we do not express such an opinion. The results of our testsdisclosed no instances of noncompliance or other matters that are required to be reported underGovernmentAuditingStandards.

PurposeofthisReport

Thepurposeofthisreportissolelytodescribethescopeofourtestingofinternalcontrolandcomplianceandtheresultsofthattesting,andnottoprovideanopinionontheeffectivenessoftheentity’sinternalcontrol or on compliance. This report is an integral part of an audit performed in accordance withGovernmentAuditingStandards inconsideringtheentity’sinternalcontrolandcompliance.Accordingly,thiscommunicationisnotsuitableforanyotherpurpose.


REPORTOFINDEPENDENTAUDITORSONCOMPLIANCEFORTHEMAJORFEDERALPROGRAMANDREPORTONINTERNALCONTROLOVERCOMPLIANCE

ASREQUIREDBYTHEUNIFORMGUIDANCETheAuditCommitteeofSiliconValleyCommunityFoundationReportonCompliancefortheMajorFederalProgram

We have audited Silicon Valley Community Foundation’s (a California public benefit corporation)compliancewiththetypesofcompliancerequirementsdescribedintheOMBComplianceSupplementthatcouldhaveadirectandmaterialeffectonSiliconValleyCommunityFoundation’smajorfederalprogramfortheyearendedDecember31,2015.SiliconValleyCommunityFoundation’smajorfederalprogramisidentified in the summary of auditor's results section of the accompanying schedule of findings andquestionedcosts.

Management’sResponsibility

Management is responsible for compliance with federal statutes, regulations, and the terms andconditionsofitsfederalawardsapplicabletoitsfederalprogram.

Auditor’sResponsibility

Our responsibility is to express an opinion on compliance for Silicon Valley Community Foundation’smajorfederalprogrambasedonourauditofthetypesofcompliancerequirementsreferredtoabove.Weconducted our audit of compliance in accordance with auditing standards generally accepted in theUnitedStatesofAmerica;thestandardsapplicabletofinancialauditscontainedinGovernmentAuditingStandards, issuedbytheComptrollerGeneraloftheUnitedStates;andtheauditrequirementsofTitle2U.S.CodeofFederalRegulationsPart200,UniformAdministrativeRequirements,CostPrinciples,andAuditRequirementsforFederalAwards(UniformGuidance).ThosestandardsandtheUniformGuidancerequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhethernoncompliancewiththetypesofcompliancerequirementsreferredtoabovethatcouldhaveadirectandmaterialeffectonthemajor federal program occurred. An audit includes examining, on a test basis, evidence about SiliconValley Community Foundation’s compliance with those requirements and performing such otherproceduresasweconsiderednecessaryinthecircumstances.

Webelievethatourauditprovidesareasonablebasisforouropiniononcomplianceforthemajorfederalprogram. However, our audit does not provide a legal determination of Silicon Valley CommunityFoundation’scompliance.

OpinionontheMajorFederalProgram

Inouropinion,SiliconValleyCommunityFoundationcomplied,inallmaterialrespects,withthetypesofcompliance requirements referred to above that could have a direct andmaterial effect on themajorfederalprogramfortheyearendedDecember31,2015.

ReportonInternalControlOverCompliance

Management of Silicon Valley Community Foundation is responsible for establishing and maintainingeffectiveinternalcontrolovercompliancewiththetypesofcompliancerequirementsreferredtoabove.In planning and performing our audit of compliance, we considered Silicon Valley CommunityFoundation’s internal controlover compliancewith the typesof requirements that couldhave adirectand material effect on the major federal program to determine the auditing procedures that areappropriateinthecircumstancesforthepurposeofexpressinganopiniononcomplianceforthemajorfederal program and to test and report on internal control over compliance in accordance with theUniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internalcontrolovercompliance.Accordingly,wedonotexpressanopinionontheeffectivenessofSiliconValleyCommunityFoundation’sinternalcontrolovercompliance.

A deficiency in internal control over compliance exists when the design or operation of a control overcompliancedoesnotallowmanagementoremployees,inthenormalcourseofperformingtheirassignedfunctions, toprevent,ordetectandcorrect,noncompliancewitha typeofcompliancerequirementofafederalprogramonatimelybasis.Amaterialweaknessininternalcontrolovercomplianceisadeficiency,or a combination of deficiencies, in internal control over compliance such that there is a reasonablepossibilitythatmaterialnoncompliancewithatypeofcompliancerequirementofafederalprogramwillnotbeprevented,ordetectedandcorrected,onatimelybasis.Asignificantdeficiencyininternalcontrolovercomplianceisadeficiency,oracombinationofdeficiencies,ininternalcontrolovercompliancewitha typeof compliancerequirementofa federalprogramthat is less severe thanamaterialweakness ininternal control over compliance, yet important enough to merit attention by those charged withgovernance.

Ourconsiderationofinternalcontrolovercompliancewasforthelimitedpurposedescribedinthefirstparagraph of this section and was not designed to identify all deficiencies in internal control overcompliance that might be material weaknesses or significant deficiencies. We did not identify anydeficiencies in internal controlover compliance thatweconsider tobematerialweaknesses.However,materialweaknessesmayexistthathavenotbeenidentified.

The purpose of this report on internal control over compliance is solely to describe the scope of ourtestingof internalcontrolovercomplianceandtheresultsof thattestingbasedontherequirementsoftheUniformGuidance.Accordingly,thisreportisnotsuitableforanyotherpurpose.


SILICONVALLEYCOMMUNITYFOUNDATIONSCHEDULEOFFINDINGSANDQUESTIONEDCOSTSForTheYearEndedDecember31,2015

Page25

SectionI‐SummaryofAuditor’sResults

FinancialStatements

TypeofreporttheauditorissuedonwhetherthefinancialstatementsauditedwerepreparedinaccordancewithGAAP: Unmodified

Internalcontroloverfinancialreporting:

Materialweakness(es)identified? Yes No

Significantdeficiency(ies)identified? Yes Nonereported

Noncompliancematerialtofinancialstatementsnoted? Yes No

FederalAwards

Internalcontrolovermajorfederalprogram:

Materialweakness(es)identified? Yes No

Significantdeficiency(ies)identified? Yes Nonereported

Anyauditfindingsdisclosedthatarerequiredtobereportedinaccordancewith2CFR200.516(a)? Yes No

IdentificationofMajorFederalProgramandtypeofauditor’sreportissuedoncomplianceformajorfederalprogram:

CFDANumbers NameofFederalProgramorClusterTypeofAuditor’sReportIssued

94.019 SocialInnovationFund Unmodified

DollarthresholdusedtodistinguishbetweentypeAandtypeBprograms: $ 750,000

Auditeequalifiedaslow‐riskauditee? Yes No

SectionII‐FinancialStatementFindings

Nonereported

SectionIII‐FederalAwardFindingsandQuestionedCosts

Nonereported

SUPPLEMENTARYINFORMATION

__________

SILICONVALLEYCOMMUNITYFOUNDATIONSCHEDULEOFEXPENDITURESOFFEDERALAWARDSForTheYearEndedDecember31,2015

Page26

FederalGrantor/ProgramTitle GrantNumberFederalCFDANumber

FederalExpenditures

"Passedthrough"toSubrecipients

CorporationForNationalandCommunityService

SocialInnovationFund 14SIHCA001 94.019 978,076$ 330,222$

SILICONVALLEYCOMMUNITYFOUNDATIONNOTESTOSCHEDULEOFEXPENDITURESOFFEDERALAWARDS

ForTheYearEndedDecember31,2015

Page27

NOTE1–BASISOFPRESENTATION

TheaccompanyingScheduleofExpendituresofFederalAwards(the“Schedule”)includesthefederalgrantactivityofSiliconValleyCommunityFoundationunderprogramsofthefederalgovernmentfortheyearendedDecember31,2015.TheinformationinthisscheduleispresentedinaccordancewiththerequirementsoftheOfficeofManagementandBudget(“OMB”)Title2U.S.CodeofFederal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards(“UniformGuidance”).BecausetheSchedulepresentsonlyaselectedportionoftheoperationsofSiliconValleyCommunityFoundation, itisnotintendedtoanddoesnotpresenttheconsolidatedfinancialposition,consolidatedactivities,andchangesinnetassetsorconsolidatedcashflowsofSiliconValleyCommunityFoundation.

NOTE2–SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES

ExpendituresreportedontheSchedulearereportedontheaccrualbasisofaccounting.Suchexpendituresarerecognizedfollowingthe cost principles contained in OMB Circular A‐122, Cost Principles for Non‐profit Organizations, wherein certain types ofexpendituresarenotallowableorare limitedas toreimbursement.SiliconValleyCommunityFoundationelectednot tousethe10%deminimisindirectcostrateallowedundertheuniformguidance.

silicon valley community foundation · 2016-06-16 · silicon valley community foundation...

Documents