Investor Presentaiton

University of South Carolina Upstate Foundation and Supporting Organization Notes to Consolidated Financial Statements 3. Investments Investments are stated at fair value. Realized and unrealized gains and losses are reflected on the consolidated statement of activities. Management has evaluated investment values as of June 30, 2022 and 2021 noting no permanent impairment. Investments consist of the following at June 30: Cash Domestic equity International equity Flexible capital Fixed income Real assets 4. Fair Value Disclosures 2022 2021 1,450,945 6,271,671 47,545 4,937,952 2,665,664 2,708,551 1,756,470 3,244,145 2,895,415 4,062,125 30,841 1,523,611 $ 15,071,006 $ 16,523,929 Fair value as defined under generally accepted accounting principles is an exit price, representing 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. Generally accepted accounting principles establish a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: • Level 1: Observable inputs such as quoted prices in active markets. • • Level 2: Inputs other than quoted prices in active markets that are either directly or indirectly observable. Level 3: Unobservable inputs about which little or no market data exists, therefore requiring an entity to develop its own assumptions. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The methods used may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Organization believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The recorded market price for alternative investments is at the fund's NAV estimated by the individual investment manager of the fund taking into account such factors as the financial condition of each investee, economic and market conditions affecting their operations, any changes in management, the length of time since the initial investment, recent arm's-length transactions involving the securities of the investee, the value of similar securities issued by companies in the same or similar businesses, the underlying investments held by the fund and limited marketability of the portfolio. The fair value in such investments is subject to review by the Organization and independent annual financial statement audits of these investments. The Organization's investment charitable remainder trusts are valued at the fair value of the trust's underlying assets which is derived principally from inputs of quoted prices in active markets as reported by the trust's fund managers. These are classified within Level 3 of the valuation hierarchy. 10

View entire presentation