San Bruno Community Foundation

Audit Committee Raul Gomez, Chair • Jim Ruane, Member Leslie Hatamiya, Executive Director PUBLIC COMMENT: Attendees who want to provide public comment will be asked to fill out a speaker card and submit it with the SBCF Executive Director. Public comment may also be emailed to info@sbcf.org. Comments received via email will not be read aloud during the meeting. Materials related to the agenda distributed after it is published will be available for public inspection at San Bruno City Hall, 567 El Camino Real, San Bruno, in compliance with the Brown Act. ACCESSIBILITY: In compliance with the Americans with Disabilities Act, individuals requiring special accommodations or modifications to participate in this meeting should contact the SBCF Office 48 hours prior to the meeting at (650) 763-0775 or info@sbcf.org. AGENDA SAN BRUNO COMMUNITY FOUNDATION Special Meeting of the Audit Committee October 22, 2024 3:00 p.m. Meeting Location: San Bruno Recreation and Aquatic Center, Conference Room, 251 City Park Way, San Bruno 1. Call to Order 2. Roll Call 3. Public Comment: Individuals are allowed three minutes. It is the Committee’s policy to refer matters raised in this forum to staff for research and/or action where appropriate. The Brown Act prohibits the Committee from discussing or acting upon any matter not agendized pursuant to State Law. 4. Approval of Minutes: January 24, 2025, Special Meeting 5. Conduct of Business a. Receive Report from Novogradac & Company LLP, Discuss Audited Financial Statements for the Year Ended June 30, 2025, and Adopt Resolution Accepting the San Bruno Community Foundation’s Audited Financial Statements for the Year Ended June 30, 2025 Page 1 of 2  Audit Committee Raul Gomez, Chair • Jim Ruane, Member Leslie Hatamiya, Executive Director 6. Committee Member Comments 7. Adjourn Page 2 of 2  Audit Committee Raul Gomez, Chair • Jim Ruane, Member Leslie Hatamiya, Executive Director MINUTES SAN BRUNO COMMUNITY FOUNDATION Special Meeting of the Audit Committee January 24, 2025 3:00 p.m. Meeting Location: San Bruno City Hall, 567 El Camino Real, Room 101, San Bruno 1. Call to Order: Committee Chair Gomez called the meeting to order at 3:10 p.m. 2. Roll Call: Committee Members Gomez and Ruane, present. 3. Public Comment: None. 4. Approval of Minutes: October 21, 2024, Special Meeting: Committee Member Ruane moved to approve the minutes of the October 21, 2024, Special Meeting, seconded by Chair Gomez, passed unanimously. 5. Conduct of Business a. Review Proposals Received in Response to Request for Proposal for Nonprofit Audit and Tax Preparation Services and Provide Direction to Staff on Next Steps in the Auditor Selection Process With support from Executive Director Hatamiya, the Committee reviewed the five proposals that the Foundation received in response to its Request for Proposal for Nonprofit Audit and Tax Preparation Services. After discussion of the proposals, the Committee agreed to recommend to the Board of Directors the accounting firm of Novogradac & Company LLP to provide audit and tax preparation services for fiscal year 2024-2025, on the condition that Novogradac assign a new set of staff accountants to work on the Foundation’s account. Chair Gomez agreed to call Novogradac’s Lance Smith to confirm that the firm would rotate the staff members working on the SBCF account under Mr. Smith’s direction. Assuming that Chair Gomez received confirmation from Mr. Smith, the Committee Page 1 of 2  Audit Committee Raul Gomez, Chair • Jim Ruane, Member Leslie Hatamiya, Executive Director directed Executive Director Hatamiya to proceed with its recommendation of Novogradac at the Board’s March 5, 2025, meeting. 6. Committee Member Comments: None. 7. Adjourn: Committee Member Ruane moved to adjourn the meeting at 3:18 p.m., seconded by Chair Gomez, approved unanimously. Respectfully submitted for approval at the Special Audit Committee Meeting of October 22, 2025, by Audit Committee Chair Raul Gomez. Raul Gomez, Audit Committee Chair Page 2 of 2  Memorandum DATE: October 16, 2025 TO: Audit Committee, San Bruno Community Foundation FROM: Leslie Hatamiya, Executive Director SUBJECT: October 22, 2025, Audit Committee Meeting The Audit Committee of the San Bruno Community Foundation will hold a special meeting at 3:00 p.m. on Wednesday, October 22, 2025, at the San Bruno Recreation and Aquatic Center, Conference Room, 251 City Park Way, San Bruno. 1. Review of Report from Novogradac and Company LLP on Audited Financial Statements for Year Ended June 30, 2025 Article XIII, Section 4, of the San Bruno Community Foundation’s Bylaws states that the Foundation “shall retain an independent auditor and conduct annual independent audits in accordance with the applicable provisions of the Supervision of Trustees and Fundraisers for Charitable Purposes Act (commencing with Section 12586 of the California Government Code).” After an RFP process, on March 5, 2025, the Foundation Board selected Novogradac & Company LLP to conduct the audit of the Foundation’s financial statements for the year ended June 30, 2025, and to prepare the Foundation’s annual federal and state tax returns. Engagement partner Lance Smith is heading up the Novogradac team assigned to the Foundation, and per the Foundation’s request, a new team of staff accountants is supporting him on the audit. In July, Accounting Consultant Frank Bittner and I began preparing the financial reports and documentation Novogradac requested to begin work on the audit. We submitted all the requested materials by August 27. Since then, the Novogradac team has examined the Foundation’s financial records, accounts, business transactions, and accounting practices. Mr. Bittner and I have responded to follow-up requests for additional information from the Novogradac team. At the meeting, Mr. Smith will provide a report of the audit process, and the Committee will review and discuss the audited financial statements for the year ended June 30, 2025, which are included in this packet, and will have the opportunity to provide comments and feedback. The audited financial statements reflect comments Mr. Bittner and I provided to the Novogradac team in response to an earlier draft. Page 1 of 2  Memorandum The Committee will consider the attached resolution accepting the audited financial statements for the year ended June 30, 2025, at the meeting. Assuming the Committee accepts the audited financial statements, Novogradac will finalize the audited financial statements for presentation to the Board. Mr. Smith is scheduled to present the audited financial statements to the Board at its November 5, 2025, meeting. The firm will also prepare the Foundation’s tax returns, which are due to the relevant federal and state agencies by November 15, 2025. Attachments: 1. Draft Financial Statements and Report of Independent Auditors for the Year Ended June 30, 2025, with Comparative Totals as of and for the Year Ended June 30, 2024, prepared by Novogradac & Company LLP 2. Audit Committee Resolution Accepting the San Bruno Community Foundation’s Audited Financial Statements for the Year Ended June 30, 2025 Page 2 of 2  DRAFT THE SAN BRUNO COMMUNITY FOUNDATION Financial Statements and Report of Independent Auditors For the year ended June 30, 2025 with comparative totals as of and for the year ended June 30, 2024 THE SAN BRUNO COMMUNITY FOUNDATION Financial Statements and Report of Independent Auditors  DRAFT TABLE OF CONTENTS Page REPORT OF INDEPENDENT AUDITORS 1-2 STATEMENT OF FINANCIAL POSITION 3 STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS 4 STATEMENT OF FUNCTIONAL EXPENSES 5 STATEMENT OF CASH FLOWS 6 NOTES TO FINANCIAL STATEMENTS 7-13  DRAFT Report of Independent Auditors To the Board of Directors of The San Bruno Community Foundation: Opinion We have audited the accompanying financial statements of The San Bruno Community Foundation, which comprise the statement of financial position as of June 30, 2025, and the related statements of activities and changes in net assets, functional expenses, and cash flows for the year then ended, and the related notes to the financial statements. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The San Bruno Community Foundation as of June 30, 2025, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the financial statements section of our report. We are required to be independent of The San Bruno Community Foundation and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about The San Bruno Community Foundation’s ability to continue as a going concern within one year after the date that the financial statements are available to be issued. Auditors’ Responsibilities for the Audit of the Financial Statements DRAFT Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements, including omissions, are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit 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 San Bruno Community Foundation’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about The San Bruno Community Foundation’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Report on Summarized Comparative Information We have previously audited The San Bruno Community Foundation’s financial statements for the year ended June 30, 2024, and our report dated October 21, 2024 expressed an unmodified opinion on those financial statements. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2024, is consistent, in all material respects, with the audited financial statements from which it has been derived. Petaluma, California March 1, 1900  THE SAN BRUNO COMMUNITY FOUNDATION DRAFT STATEMENT OF FINANCIAL POSITION June 30, 2025 with comparative totals as of June 30, 2024 ASSETS 2025 2024 Cash and cash equivalents $ 19,941 $ 235,900 Investments (See Note 4) 31,937,024 30,335,486 Right-of-use asset - office lease 73,544 13,104 Prepaid expenses 11,435 14,746 Deposits 909 909 Total assets $ 32,042,853 $ 30,600,145 LIABILITIES Accounts payable $ 32,369 $ 23,281 Office lease payable 73,874 13,104 Accrued scholarships 330,000 332,500 Accrued grants payable 6,381,784 1,316,994 Total liabilities 6,818,027 1,685,879 NET ASSETS Without donor restriction Board designated 49 23,326,819 Non-designated 25,224,777 5,586,247 With donor restriction - 1,200 Total net assets 25,224,826 28,914,266 Total liabilities and net assets $ 32,042,853 $ 30,600,145 see accompanying notes 3  THE SAN BRUNO COMMUNITY FOUNDATION DRAFT STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS For the year ended June 30, 2025 with comparative totals for the year ended June 30, 2024 2025 2024 Without donor With donor restriction restriction Total Total REVENUE AND OTHER SUPPORT Donations $ 5,798 $ 101,500 $ 107,298 $ 2,700 Investment return, net 3,018,443 - 3,018,443 2,973,752 Miscellaneous income - - - 30,000 Net assets released from restrictions 102,700 (102,700) - - 3,126,941 (1,200) 3,125,741 3,006,452 EXPENSES Program services 6,633,254 - 6,633,254 1,045,834 Management and general 181,927 - 181,927 171,180 6,815,181 - 6,815,181 1,217,014 CHANGE IN NET ASSETS (3,688,240) (1,200) (3,689,440) 1,789,438 NET ASSETS AT BEGINNING OF YEAR 28,913,066 1,200 28,914,266 27,124,828 NET ASSETS AT END OF YEAR $ 25,224,826 $ - $ 25,224,826 $ 28,914,266 see accompanying notes 4  THE SAN BRUNO COMMUNITY FOUNDATION DRAFT STATEMENT OF FUNCTIONAL EXPENSES For the year ended June 30, 2025 with comparative totals for the year ended June 30, 2024 Management 2024 Program Services and General Total Total PERSONNEL EXPENSES Salaries and wages $ 177,788 $ 79,736 $ 257,524 $ 242,319 Payroll taxes and benefits 29,415 8,891 38,306 23,798 Total personnel expenses 207,203 88,627 295,830 266,117 OTHER EXPENSES Scholarships 165,000 - 165,000 160,000 Grants 6,210,200 - 6,210,200 652,500 Rent 11,741 5,279 17,020 17,009 Insurance - 15,189 15,189 17,793 Telecommunications 1,700 717 2,417 2,438 Postage and shipping 1,963 827 2,790 2,522 Marketing and communications 11,718 3,524 15,242 15,877 Office supplies 3,188 716 3,904 3,364 Legal fees 12,323 30,092 42,415 29,349 Accounting and payroll fees - 32,784 32,784 32,970 Other professional services 8,022 - 8,022 10,381 Travel, meetings and conferences 196 2,310 2,506 5,280 Miscellaneous - 1,862 1,862 1,414 Total other expenses 6,426,051 93,300 6,519,351 950,897 TOTAL EXPENSES $ 6,633,254 $ 181,927 $ 6,815,181 $ 1,217,014 see accompanying notes 5  THE SAN BRUNO COMMUNITY FOUNDATION DRAFT STATEMENT OF CASH FLOWS For the year ended June 30, 2025 with comparative totals for the year ended June 30, 2024 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ (3,689,440) $ 1,789,438 Adjustments to reconcile change in net assets to net cash used in operating activities: Net realized/unrealized gain on investments (2,097,203) (2,012,480) Decrease in assets: Prepaid expenses 3,311 1,859 Right-of-use asset - office lease 16,975 - (Decrease) increase in liabilities: Accounts payable 9,088 (12,449) Accrued scholarships (2,500) 15,000 Accrued grants payable 5,064,790 (7,955,693) Office lease payable (16,645) - Net cash used in operating activities (711,624) (8,174,325) CASH FLOWS FROM INVESTING ACTIVITIES Net sales of securities 495,665 7,991,503 Net change in cash, and cash equivalents (215,959) (182,822) Cash and cash equivalents at beginning of year 235,900 418,722 Cash, cash equivalents at end of year $ 19,941 $ 235,900 SUPPLEMENTAL DISCLOSURES OF NONCASH FLOW INFORMATION Increase in right-of-use asset - office lease and office lease payable $ 77,415 $ - see accompanying notes 6  THE SAN BRUNO COMMUNITY FOUNDATION Notes to Financial Statements DRAFT June 30, 2025 with comparative totals as of and for the year ended June 30, 2024 1. Organization The San Bruno Community Foundation (the “Foundation”), a California nonprofit corporation, was organized in 2013 as a public benefit 501(c)(3) nonprofit corporation and has been determined to be a Type I supporting organization under Section 509(a)(3) of the Internal Revenue Code (“IRC”). Pursuant to the settlement agreement dated March 12, 2012, between Pacific Gas & Electric Company (“PG&E”) and the City of San Bruno (the “City”), both parties agreed to resolve and settle all claims arising out of the September 9, 2010 pipeline incident (the “Settlement Agreement”). The terms required PG&E to contribute a total of $70 million to the City, which comprised of 1) five vacant plots of land in the Glenview (Crestmoor) neighborhood, which had a total fair market value of $1,250,000 and 2) $68,750,000 in cash, to transfer to a tax-exempt, nonprofit public purpose entity. Hence, the Foundation was created from the Settlement Agreement. The Foundation engages primarily in the administration of PG&E restitution funds and building community partnerships. The Foundation’s goals serve the San Bruno community by investing in projects, programs, services, and facilities that have significant and lasting benefits. Through making grants, leveraging partnerships, and taking advantage of other resources, the Foundation assists and enables the community to maximize shared investments and realize their subsequent enhancements and benefits. 2. Summary of significant accounting policies Basis of accounting The Foundation prepares its financial statements on the accrual basis of accounting consistent with accounting principles generally accepted in the United States of America. The Foundation’s year end for tax and financial reporting purposes is June 30. Basis of presentation The Foundation is required to report information regarding its financial position and activities according to the following net asset classifications: Net Assets without donor restrictions: Net assets available for use in general operations and not subject to donor restrictions. The Foundation’s governing board has designated, from net assets without donor restriction, long-term funds held in the quasi- endowment pool. Net assets with donor restrictions: Net assets subject to stipulations imposed by donors and grantors. Some donor restrictions are temporary in nature, which will be met by actions of the Foundation or by the passage of time. Other donor restrictions are perpetual in nature, whereby the donor has stipulated the funds be maintained in perpetuity. Prior period comparison The financial statements include certain prior-period summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in accordance with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the Foundation’s financial statements for the year ended June 30, 2024, from which the summarized information was derived. Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. 7  THE SAN BRUNO COMMUNITY FOUNDATION Notes to Financial Statements DRAFT June 30, 2025 with comparative totals as of and for the year ended June 30, 2024 2. Summary of significant accounting policies (continued) Cash and cash equivalents Cash and cash equivalents include all cash balances on deposit with financial institutions and highly liquid investments with a maturity of three months or less at the date of acquisition. As of June 30, 2025 and 2024, cash and cash equivalents consist of the following: 2025 2024 Cash - operating $ 18,997 $ 184,610 Liquidity fund cash 944 51,290 Total cash and cash equivalents $ 19,941 $ 235,900 Concentration of credit risk Financial instruments that potentially subject the Foundation to concentrations of credit risk consist principally of temporary cash investments. The Foundation places its temporary cash investments with high credit quality financial institutions and, by policy, limits the amount of credit exposed to any one financial institution. The Foundation has not experienced any losses in such accounts. Investments The Foundation carries investments in various investment pools with readily determinable fair values and all investments are stated at their fair values in the Statement of Financial Position. Unrealized gains and losses are included in the change in net assets in the accompanying Statement of Activities and Changes in Net Assets. Accounts receivable Management considers receivables to be fully collectible. If amounts become uncollectible, they are charged to operations in the period in which that determination is made. Accounting principles generally accepted in the United States of America require that the allowance method be used to recognize bad debts; however, the effect of using the direct write-off method is not materially different from the results that would have been obtained under the allowance method. Fair value measurements The Foundation applies the accounting provisions related to fair value measurements. These provisions define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, establish a hierarchy that prioritizes the information used in developing fair value estimates and require disclosure of fair value measurements by level within the fair value hierarchy. The hierarchy gives the highest priority to quoted prices in active markets (Level 1 measurements) and the lowest priority to unobservable data (Level 3 measurements), such as the reporting entity’s own data. These provisions also provide valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flows) and the cost approach (cost to replace the service capacity of an asset or replacement cost). A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of valuation hierarchy are defined as follows: Level 1: Observable inputs such as quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2: Inputs other than quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3: Unobservable inputs that reflect the Foundation’s own assumptions. 8  THE SAN BRUNO COMMUNITY FOUNDATION Notes to Financial Statements DRAFT June 30, 2025 with comparative totals as of and for the year ended June 30, 2024 2. Summary of significant accounting policies (continued) Income taxes The Foundation is a not-for-profit corporation under Section 501(c)(3) of the IRC and Section 23701(d) of the California Revenue and Taxation Code and therefore, is generally exempt from both federal and state income taxes, except on net income derived from unrelated business activities. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the Foundation to report information regarding its exposure to various tax positions taken. Management has determined whether any tax positions have met the recognition threshold and has measured its exposure to those tax positions. Management believes that the Foundation has adequately addressed all relevant tax positions and that there are no unrecorded tax liabilities. Federal tax authorities generally have the right to examine and audit the previous three years of tax returns filed. California tax authorities generally have the right to examine and audit the previous four years of tax returns filed. Any interest or penalties assessed to the Foundation are recorded in operating expenses. No interest or penalties from federal or state tax authorities were recorded in the accompanying financial statements. Scholarships expense The Foundation has offered three types of scholarships for the members of the San Bruno community, which are defined as follows: 1. $5,000 each year for four years, totaling $20,000, for a high school student to attend a 4-year college. 2. $2,500 each year for two years, totaling $5,000, for a high school student to attend a 2-year community college. 3. $5,000 each year for two years, totaling $10,000, for a community college student who transfers to a 4-year college. Scholarships are recognized when they have been awarded. Recipients are required to renew their scholarships for each year by submitting proof of full-time enrollment for the following fall and certification of status as a student in good standing, by June 1 of each year. For the years ended June 30, 2025 and 2024, scholarship expense was $165,000 and $160,000, respectively. As of June 30, 2025 and 2024, accrued scholarships payable was $330,000 and $332,500, respectively. Grant expense Grants are recognized when they are approved by the board, all significant conditions are met, all due diligence has been completed, and grant agreements have been executed. Grant refunds are recorded as a reduction of grant expense if the refund or notice of refund is received in the same fiscal year as the grant was expensed. For the years ended June 30, 2025 and 2024, grant expense was $6,210,200 and $652,500, respectively. As of June 30, 2025, accrued grants payable included $2,509,364 payable toward the construction of and startup programming at the San Bruno Recreation and Aquatic Center and $3,400,000 payable toward the Crestmoor Fields Project. As of June 30, 2024, accrued grants payable included $589,501 payable toward the San Bruno Recreation and Aquatic Center. As of June 30, 2025 and 2024, accrued grants payable was $6,381,784 and $1,316,994, respectively. Functional allocation of expenses The Statement of Functional Expenses reports expenses by both natural and functional classification. Certain categories of expenses are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. Costs are directly applied to the related program or supporting service category when identifiable and possible. Other expenses have been allocated to programs and management and general based on estimates of time and effort. 9  THE SAN BRUNO COMMUNITY FOUNDATION Notes to Financial Statements DRAFT June 30, 2025 with comparative totals as of and for the year ended June 30, 2024 2. Summary of significant accounting policies (continued) Leases The Foundation determines if an arrangement is a lease at inception. An arrangement is a lease if the arrangement conveys a right to direct the use of and to obtain substantially all of the economic benefits from the use of an asset for a period of time in exchange for consideration. Operating lease right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Foundation uses a risk-free rate at the commencement date in determining the present value of lease payments. The operating lease right-of-use assets also include any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the leases when it is reasonably certain that the Foundation will exercise that option. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. Lease expense for lease payments is recognized on a straight-line basis over the lease terms. The office space lease agreement with San Bruno Office Associates, LLC includes monthly predetermined rental payments. Lease liabilities are not remeasured throughout the life of the lease since all predetermined changes in the monthly rent payments have already been considered in the lease liability calculation. Subsequent events Subsequent events have been evaluated through March 1, 1900, which is the date the consolidated financial statements were available to be issued, and there are no subsequent events requiring disclosure. 3. Liquidity and availability of financial assets The following represents the Foundation’s financial assets as of June 30: Financial assets at year end: 2025 2024 Cash and cash equivalents $ 18,997 $ 235,900 Investments 31,937,024 30,335,486 Total financial assets 31,956,965 30,571,386 Less amounts not available due to: Net assets with donor restrictions - 1,200 Board designated quasi-endowment fund 49 23,326,819 Grants payable 6,381,784 1,316,994 Scholarships payable 330,000 332,500 6,711,833 24,977,513 Financial assets available to meet general expenditures over the next twelve months $ 25,245,132 $ 5,593,873 The Foundation’s goal is generally to maintain financial assets to meet its operating and budgeted needs. As part of its liquidity plan, excess cash is invested in short-term investments, including mutual funds. 10  THE SAN BRUNO COMMUNITY FOUNDATION Notes to Financial Statements DRAFT June 30, 2025 with comparative totals as of and for the year ended June 30, 2024 4. Investments The following tables present the Foundation’s assets that are measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy as of June 30, 2025 and 2024: June 30, 2025 Fair Value Level 1 Level 2 Level 3 Measurements Assets Liquidity pool Mutual funds $ 195,105 $ - $ - $ 195,105 Exchange traded products and ETFs 553,662 - - 553,662 Total liquidity pool 748,767 - - 748,767 Strategic pool Cash reserves 45,458 - - 45,458 Mutual funds 16,689664 - - 16,689,664 Exchange traded products and ETFs 14,453,086 - - 14,453,086 Total strategic pool 31,188,208 - - 31,188,208 Quasi-endowment pool Cash reserves 49 - - 49 Total quasi-endowment pool 49 - - 49 Total assets $ 31,937,024 $ - $ - $ 31,937,024 June 30, 2024 Fair Value Level 1 Level 2 Level 3 Measurements Assets Liquidity pool Mutual funds $ 608,156 $ - $ - $ 608,156 Exchange traded products and ETFs 650,893 - - 650,893 Total liquidity pool 1,259,049 - - 1,259,049 Strategic pool Cash reserves 50,941 - - 50,941 Mutual funds 3,031,553 - - 3,031,553 Exchange traded products and ETFs 2,667,124 - - 2,667,124 Total strategic pool 5,749,618 - - 5,749,618 Quasi-endowment pool Cash reserves 195,224 - - 195,224 Mutual funds 7,356,128 - - 7,356,128 Exchange traded products and ETFs 15,775,466 - - 15,775,466 Total quasi-endowment pool 23,326,819 - - 23,326,819 Total assets $ 30,335,486 $ - $ - $ 30,335,486 11  THE SAN BRUNO COMMUNITY FOUNDATION Notes to Financial Statements DRAFT June 30, 2025 with comparative totals as of and for the year ended June 30, 2024 4. Investments (continued) The Foundation’s investments consisted of the following cost basis when originally acquired: 2025 2024 Liquidity pool $ 548,733 $ 644,886 Strategic pool 29,138,282 5,879,124 Quasi-endowment pool - 19,331,189 Total securities $ 29,687,015 $ 25,855,199 5. Office lease The Foundation has an office lease with San Bruno Office Associates, LLC, which was amended effective April 1, 2025 to extend the lease to March 31, 2030. Initial monthly payments are $1,161 and increases annually at a rate of 3% on April 1 of each year. For the years ended June 30, 2025 and 2024, rent expense was $17,020 and $17,009, respectively. As of June 30, 2025, right-of-use asset – office lease and office lease payable were $73,544 and $73,874, respectively. As of June 30, 2024, right-of-use asset – office lease and office lease payable were $13,104 and $13,104, respectively. Future office rent payment requirements over the next five years and thereafter are as follows: Year ending June 30, 2026 $ 14,324 2027 14,970 2028 15,638 2029 16,317 2030 12,625 Lease payable $ 73,874 6. Employee benefit plan Effective January 1, 2015, the Foundation established a tax-deferred annuity plan qualified under Section 403(b) of the IRC for its employees. The Foundation makes non-matching contributions equal to 5% of the gross salary for individual employees. For the years ended June 30, 2025 and 2024, $15,456 and $10,607, respectively, was contributed by the Foundation on behalf of its employees. 12  THE SAN BRUNO COMMUNITY FOUNDATION Notes to Financial Statements DRAFT June 30, 2025 with comparative totals as of and for the year ended June 30, 2024 7. Net assets with donor restriction Net assets with donor restriction consist of the following as of June 30: 2025 2024 Recreation & Aquatic Memorial Bench $ - $ 1,200 Net assets were released from restrictions by incurring expenses satisfying the restricted purpose or by the expiration of time as follows: 2025 2024 Community Grants Fund $ 100,000 $ 100,000 CNM Scholarships 1,500 1,500 Recreation & Aquatic Center Memorial Bench 1,200 - Total net assets released from restrictions $ 102,700 $ 101,500 13  RESOLUTION NO. 2025-__ RESOLUTION OF THE SAN BRUNO COMMUNITY FOUNDATION AUDIT COMMITTEE ACCEPTING THE SAN BRUNO COMMUNITY FOUNDATION’S AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2025 WHEREAS, Article XIII, Section 4, of the Bylaws of the San Bruno Community Foundation calls for the retention of an independent auditor to conduct an annual audit of the Foundation’s financial statements and records; WHEREAS, Article VII, Section 4, of the Bylaws states that that duties of the Audit Committee include reviewing and accepting the annual audit; WHEREAS, on March 5, 2025, the Board of Directors authorized President Malissa Netane-Jones to execute a contract with Novogradac & Company LLP to conduct the audit of the Foundation’s financial statements for the year ended June 30, 2025, and to prepare the Foundation’s annual federal and state tax returns; WHEREAS, on March 5, 2025, President Netane-Jones executed a contract with Novogradac & Company LLP to conduct an audit of the Foundation’s financial statements for the year ended June 30, 2025, and to prepare the Foundation’s federal and state tax returns; WHEREAS, Novogradac & Company LLP examined the Foundation’s financial records, accounts, business transactions, accounting practices, and internal controls; WHEREAS, Novogradac has produced audited financial statements for the Foundation for the year ended June 30, 2025, and issued an unqualified opinion that the Foundation’s financial statements present fairly, in all material respects, the Foundation’s financial position as of June 30, 2025, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States; and WHEREAS, the Audit Committee has reviewed and discussed the audited financial statements with Lance Smith, the Novogradac engagement partner assigned to the Foundation’s account, at its October 22, 2025, special meeting. NOW, THEREFORE, BE IT RESOLVED that the San Bruno Community Foundation Audit Committee accepts the audited financial statements for the year ended June 30, 2025, as prepared by Novogradac & Company LLP, including any adjustments recommended by the Committee and agreed with by Novogradac & Company LLP to reflect the Committee’s discussion at its October 22, 2025, special meeting. Page 1 of 2 Dated: October 22, 2025 ATTEST: _______________________________________ Raul Gomez, Audit Committee Chair I, Raul Gomez, Audit Committee Chair, do hereby certify that the foregoing Resolution No. 2025-__ was duly and regularly passed and adopted by the Audit Committee of the San Bruno Community Foundation on this 22nd day of October, 2025, by the following vote: AYES: Committee members: NOES: Committee members: ABSENT: Committee members: Page 2 of 2