2025-05-13T14:04:39-05:00 2024-06-30 881478669 CBIZ ADVISORS LLC 1 MONTGOMERY ST SUITE 1700 SAN FRANCISCO CA 94104 990 2023-07-01 943250488 SEA CREST SCHOOL INC SEAC 6507129892 901 ARNOLD WAY HALF MOON BAY CA 94019 LAUREN MILLER HEAD OF SCHOOL 6507129892 2025-05-12 1 0 ROGER BULOSAN P00221282 4154326200 2025-05-12 2023 2025-03-06 01:10:19Z LAUREN MILLER 901 ARNOLD WAY HALF MOON BAY CA 94019 17275145 0 X WWW.SEACRESTSCHOOL.ORG X 1996 CA SEA CREST SCHOOL IS DEDICATED TO PROVIDING THE BEST IN INNOVATIVE EDUCATION (CONTINUES SCH O) (CONTINUES FROM PAGE 1) TO INSPIRE AND EMPOWER OUR LEARNERS TO ENGAGE CURIOSITY, EXPRESS CREATIVITY, ACT WITH COMPASSION AND LEAD WITH COURAGE. 15 15 77 225 0 0 529817 570189 7858686 8699035 71349 157773 32413 39567 8492265 9466564 1030333 1406290 0 0 5068335 5679294 0 0 238014 2156533 2007721 8255201 9093305 237064 373259 12606166 12801156 6559515 6313939 6046651 6487217 SEA CREST SCHOOL IS DEDICATED TO PROVIDING THE BEST IN INNOVATIVE EDUCATION TO INSPIRE AND EMPOWER OUR LEARNERS TO ENGAGE CURIOSITY, EXPRESS CREATIVITY, ACT WITH COMPASSION AND LEAD WITH COURAGE. 0 0 6625812 1406290 8120571 SEA CREST SCHOOL, INC. (THE "SCHOOL"), FOUNDED IN 1996, IS AN ACCREDITED, NON-SECTARIAN INDEPENDENT SCHOOL LOCATED IN HALF MOON BAY, CALIFORNIA. THE SCHOOL PROVIDES QUALITY EDUCATION TO APPROXIMATELY 300 STUDENTS FROM JUNIOR KINDERGARTEN THROUGH EIGHTH GRADE. SEA CREST SCHOOL IS DEDICATED TO PROVIDING THE BEST IN INNOVATIVE EDUCATION TO INSPIRE AND EMPOWER ITS LEARNERS TO ENGAGE CURIOSITY, EXPRESS CREATIVITY, ACT WITH COMPASSION AND LEAD WITH COURAGE. 143341 578464 AUXILIARY SERVICES PROVIDE SUMMER CAMP AND EXTENDED DAY PROGRAMS FOR ATHLETICS, ART, MUSIC, INNOVATION AND OTHER ENRICHMENT PROGRAMS, SUPERVISED BY EXTENDED DAY PROGRAM STAFF, TEACHERS, AND COACHES. 6769153 1 1 0 0 0 0 0 0 0 1 1 0 0 0 0 1 1 0 1 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 1 1 0 0 0 1 0 0 0 0 0 0 0 0 1 27 0 1 77 1 0 0 0 0 0 1 1 0 0 0 0 0 0 X 15 15 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 1 1 1 0 0 CA X JACQUIE CUVELIER CFO 6507129892 901 ARNOLD WAY HALF MOON BAY CA 94019 KARIN MANUELE CHAIR 1.00 X X 0 0 0 KERRI CONLON TRUSTEE 1.00 X 0 0 0 GRACIELA KRABBENSCHMIDT TRUSTEE 1.00 X 0 0 0 ROBYN DUNLAP SECRETARY 1.00 X X 0 0 0 MARIA BURNS TRUSTEE 1.00 X 0 0 0 JESSICA FAVREAU TRUSTEE 1.00 X 0 0 0 GREG GLADMAN TRUSTEE 1.00 X 0 0 0 DAVID NEDZEL TREASURER 1.00 X X 0 0 0 PETER COLABUONO TRUSTEE 1.00 X 0 0 0 STEVE PATTON TRUSTEE 1.00 X 0 0 0 SIDNIE DAVIS TRUSTEE 1.00 X 0 0 0 KELLY DITRAPANI TRUSTEE 1.00 X 0 0 0 GABRIEL ESPOSTO TRUSTEE 1.00 X 0 0 0 TARYN GROGAN TRUSTEE 1.00 X 0 0 0 AMANDA MELO TRUSTEE 1.00 X 0 0 0 JACQUIE CUVELIER CHIEF FINANCIAL OFFICER 40.00 X 152274 0 24220 LAUREN MILLER HEAD OF SCHOOL 40.00 X 369014 0 37211 MICHELLE GIACOTTO DIRECTOR OF CURRICULUM 40.00 X 143980 0 10595 LESLIE RICHARDSON DIRECTOR OF STUDENT LEARNING 40.00 X 125127 0 29116 MORGAN PIERCE EXTENDED DAY PROGRAM MANAGER 40.00 X 137105 0 16652 AMBAR PINA DIRECTOR OF ADVANCEMENT 40.00 X 128205 0 19579 1055705 0 137373 6 0 1 0 0 54917 515272 45006 570189 TUITION 611600 8120571 8120571 AUXILIARY SERVICES 611600 578464 578464 8699035 157773 157773 15960 0 15960 15960 15960 7745222 7745222 0 63359 54917 63359 0 MISC. INCOME 611600 23607 23607 23607 9466564 8738602 0 157773 1406290 1406290 657343 309695 281284 66364 3770879 2797703 906513 66663 234916 171338 55254 8324 703211 504896 174065 24250 312945 222491 79627 10827 4207 4207 50099 50099 35112 32973 2139 24283 24283 26992 26992 113190 113190 311118 218815 92303 68232 46726 21506 115891 81124 34767 513657 361265 152392 185760 94111 91649 MATERIALS AND SUPPLIES 407845 323437 37994 46414 OTHER EXPENSES 150823 60304 75347 15172 RECRUITING 512 512 9093305 6769153 2086138 238014 2419153 3558647 3608212 2757230 35827 14273 81868 93644 193437 174802 132938 149238 11217673 5237785 6072826 5979888 61905 73434 12606166 12801156 387382 260189 2657406 2655295 3514727 3398455 6559515 6313939 X 5843417 6295683 203234 191534 6046651 6487217 12606166 12801156 X 373259 40487 26820 0 X X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 61905 11529 73434 53865 8040 61905 62655 -8790 53865 46705 15950 62655 44411 2294 46705 0.14000 0.14000 0.72000 0 0 870118 870118 9015573 4557089 4458484 1255846 680696 575150 76136 76136 5979888 X 8100761 40487 40487 8060274 1406290 1406290 9466564 7687015 0 7687015 1406290 1406290 9093305 PART V, LINE 4: THE SCHOOL'S ENDOWMENT CONSISTS OF FOUR INDIVIDUAL FUNDS ESTABLISHED TO FURTHER THE MISSION AND VISION OF THE SCHOOL. ITS ENDOWMENT INCLUDES BOTH DONOR-RESTRICTED ENDOWMENT FUNDS AND FUNDS DESIGNATED BY THE BOARD OF TRUSTEES TO FUNCTION AS ENDOWMENTS. AS REQUIRED BY U.S. GAAP, NET ASSETS ASSOCIATED WITH ENDOWMENT FUNDS, INCLUDING FUNDS DESIGNATED BY THE BOARD OF TRUSTEES TO FUNCTION AS ENDOWMENTS, ARE CLASSIFIED AND REPORTED BASED ON THE EXISTENCE OR ABSENCE OF DONOR-IMPOSED RESTRICTIONS. DONOR-RESTRICTED ENDOWMENT FUNDS ARE CLASSIFIED AS NET ASSETS WITH DONOR RESTRICTIONS, AND BOARD-DESIGNATED ENDOWMENT FUNDS ARE CLASSIFIED AS NET ASSETS WITHOUT DONOR RESTRICTIONS. INTERPRETATION OF RELEVANT LAW THE BOARD OF TRUSTEES HAVE INTERPRETED CALIFORNIA'S ENACTED VERSION OF THE UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT ("UPMIFA") AS REQUIRING THE PRESERVATION OF THE FAIR VALUE OF THE ORIGINAL GIFT ABSENT DONOR STIPULATIONS TO THE CONTRARY. AS A RESULT OF THIS INTERPRETATION, THE SCHOOL CLASSIFIES AS PERMANENT ENDOWMENT (A) THE ORIGINAL VALUE OF GIFTS DONATED TO THE PERMANENT ENDOWMENT, (B) THE ORIGINAL VALUE OF SUBSEQUENT GIFTS TO THE ENDOWMENT, AND (C) ACCUMULATIONS TO THE ENDOWMENT MADE IN ACCORDANCE WITH THE DIRECTION OF THE APPLICABLE DONOR GIFT INSTRUMENT AT THE TIME THE ACCUMULATION IS ADDED TO THE FUND. THE REMAINING PORTION OF THE DONOR-RESTRICTED ENDOWMENT FUND THAT IS NOT CLASSIFIED AS NET ASSETS WITH DONOR RESTRICTIONS TO BE HELD IN PERPETUITY, IS CLASSIFIED AS EXPENDABLE NET ASSETS WITH RESTRICTIONS UNTIL THOSE AMOUNTS ARE APPROPRIATED FOR EXPENDITURE BY THE SCHOOL IN A MANNER CONSISTENT WITH THE STANDARD OF PRUDENCE PRESCRIBED BY UPMIFA. IN ACCORDANCE WITH UPMIFA, THE SCHOOL CONSIDERS THE FOLLOWING FACTORS IN MAKING A DETERMINATION TO APPROPRIATE OR ACCUMULATE DONOR-RESTRICTED ENDOWMENT FUNDS: (1) THE DURATION AND PRESERVATION OF THE FUND (2) THE PURPOSES OF THE SCHOOL AND THE DONOR-RESTRICTED ENDOWMENT FUND (3) GENERAL ECONOMIC CONDITIONS (4) THE POSSIBLE EFFECT OF INFLATION AND DEFLATION (5) THE EXPECTED TOTAL RETURN FROM INCOME AND THE APPRECIATION OF INVESTMENTS (6) OTHER RESOURCES OF THE SCHOOL (7) THE INVESTMENT POLICIES OF THE SCHOOL THE SCHOOL CONSIDERS AN ENDOWMENT FUND TO BE UNDERWATER IF THE FAIR VALUE OF THE FUND IS LESS THAN THE SUM OF (A) THE ORIGINAL VALUE OF INITIAL AND SUBSEQUENT GIFTS AND (B) ANY ACCUMULATIONS TO THE FUND THAT ARE REQUIRED BY THE DONOR TO BE MAINTAINED IN PERPETUITY. FUNDS WITH DEFICIENCIES FROM TIME TO TIME, THE FAIR VALUE OF ASSETS ASSOCIATED WITH INDIVIDUAL DONOR-RESTRICTED ENDOWMENT FUNDS MAY FALL BELOW THE LEVEL THAT THE DONOR OR UPMIFA REQUIRES THE SCHOOL TO RETAIN AS A FUND OF PERPETUAL DURATION. THE SCHOOL HAS A POLICY THAT PERMITS SPENDING FROM UNDERWATER ENDOWMENT FUNDS DEPENDING ON THE DEGREE TO WHICH THE FUND IS UNDERWATER, UNLESS OTHERWISE PRECLUDED BY DONOR INTENT OR RELEVANT LAWS AND REGULATIONS. AT JUNE 30, 2024, THERE WERE NO SUCH DEFICIENCIES. RETURN OBJECTIVES AND RISK PARAMETERS THE SCHOOL HAS ADOPTED INVESTMENT AND SPENDING POLICIES FOR ENDOWMENT ASSETS THAT ATTEMPT TO PROVIDE A PREDICTABLE STREAM OF FUNDING WHILE SEEKING TO MAINTAIN THE PURCHASING POWER OF THE ENDOWMENT ASSETS. ENDOWMENT ASSETS INCLUDE THOSE ASSETS OF DONOR-RESTRICTED FUNDS THAT THE SCHOOL MUST HOLD IN PERPETUITY OR FOR DONOR-SPECIFIED PERIODS, AS WELL AS BOARD-DESIGNATED FUNDS. UNDER THIS POLICY, AS APPROVED BY THE BOARD OF TRUSTEES, THE ENDOWMENT ASSETS ARE INVESTED IN A MANNER THAT IS INTENDED TO ATTAIN A RATE OF RETURN APPROXIMATING THAT OF A COMBINATION OF WORLDWIDE PUBLIC EQUITY AND BOND MARKETS WHILE BEING SUFFICIENTLY DIVERSIFIED TO MINIMIZE THE RISK OF SIGNIFICANT PERMANENT IMPAIRMENT OF CAPITAL. OVER THE LONG-TERM, THE SCHOOL EXPECTS THE CURRENT SPENDING POLICY TO ACHIEVE ITS OBJECTIVE TO MAINTAIN THE PURCHASING POWER OF THE ENDOWMENT ASSETS HELD IN PERPETUITY OR FOR A SPECIFIED TERM AS WELL AS TO PROVIDE ADDITIONAL REAL GROWTH THROUGH NEW GIFTS AND INVESTMENT RETURN. STRATEGIES EMPLOYED FOR ACHIEVING OBJECTIVES TO SATISFY ITS LONG-TERM RATE-OF-RETURN OBJECTIVES, THE SCHOOL RELIES ON A TOTAL RETURN STRATEGY IN WHICH INVESTMENT RETURNS ARE ACHIEVED THROUGH BOTH CAPITAL APPRECIATION (REALIZED AND UNREALIZED) AND CURRENT YIELD (INTEREST AND DIVIDENDS). THE SCHOOL TARGETS A DIVERSIFIED ASSET ALLOCATION THAT PLACES A GREATER EMPHASIS ON EQUITY-BASED INVESTMENTS TO ACHIEVE ITS LONG-TERM RETURN OBJECTIVES WITHIN PRUDENT RISK CONSTRAINTS. SPENDING POLICY AND INVESTMENT OBJECTIVES ALL INTEREST, DIVIDENDS, AND CAPITAL GAINS SHALL BE REINVESTED IN THE ENDOWMENT AND NO DISTRIBUTIONS SHALL BE MADE UNLESS THE TOTAL VALUE OF THE ENDOWMENT EXCEEDS $500,000 AT THE END OF A FISCAL YEAR. THE FIRST FISCAL YEAR FOLLOWING THE ACHIEVEMENT OF THE THRESHOLD, THE ENDOWMENT PAYOUT SHALL BE 4% OF THE VALUE OF THE ENDOWMENT AS DETERMINED AT THE END OF THE PREVIOUS FISCAL YEAR. THIS PAYOUT SHALL BE MADE IN TWO EQUAL PAYMENTS; THE FIRST TO BE MADE ON SEPTEMBER 1 AND THE SECOND ON FEBRUARY 1. EACH FOLLOWING YEAR, THE ENDOWMENT PAYOUT SHALL EQUAL THE PRIOR YEAR'S PAYOUT AMOUNT PLUS 5%; PROVIDED HOWEVER, THAT THE PAYOUT WILL IN NO EVENT BE LESS THAN 3% OR MORE THAN 5% OF THE ENDOWMENT'S VALUE ON THE PRIOR FISCAL YEAR. THE ENDOWMENT'S OBJECTIVE IS TO PRESERVE CAPITAL AND NOT INVADE ITS PRINCIPAL. WHILE IT IS THE INTENT TO MEET THIS POLICY, AT ANY TIME, IF CIRCUMSTANCES DICTATE A SHORT-TERM EXTRAORDINARY NEED FOR CASH, THE SPENDING RATE, OR METHODOLOGY MAY BE CHANGED UPON APPROVAL OF THE BOARD OF TRUSTEES. THIS IS CONSISTENT WITH THE SCHOOL'S OBJECTIVE TO MAINTAIN THE PURCHASING POWER OF THE ENDOWMENT ASSETS HELD IN PERPETUITY OR FOR A SPECIFIED TERM AS WELL AS TO PROVIDE ADDITIONAL REAL GROWTH THROUGH NEW GIFTS AND INVESTMENT RETURN. PART X, LINE 2: THE SCHOOL IS A QUALIFIED ORGANIZATION EXEMPT FROM FEDERAL AND STATE FRANCHISE TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE ("IRC") AND SECTION 23701D OF THE CALIFORNIA REVENUE AND TAXATION CODE, RESPECTIVELY. ACCORDINGLY, THE SCHOOL IS EXEMPT FROM FEDERAL AND CALIFORNIA INCOME TAXES AND IS NOT LIABLE FOR FEDERAL UNEMPLOYMENT TAXES. U.S. GAAP REQUIRES MANAGEMENT TO EVALUATE THE TAX POSITIONS TAKEN AND RECOGNIZE A TAX LIABILITY (OR ASSET) IF THE SCHOOL HAS TAKEN AN UNCERTAIN POSITION THAT MORE-LIKELY-THAN-NOT WOULD NOT BE SUSTAINED UPON EXAMINATION BY TAXING AUTHORITIES. MANAGEMENT EVALUATED THE SCHOOL'S TAX POSITIONS AND CONCLUDED THAT IT MAINTAINED ITS TAX-EXEMPT STATUS AND HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT WOULD REQUIRE ADJUSTMENT TO THE FINANCIAL STATEMENTS. THEREFORE, NO PROVISION OR LIABILITY FOR UNKNOWN INCOME TAXES HAS BEEN INCLUDED IN THE FINANCIAL STATEMENTS. THE SCHOOL'S TAX RETURNS ARE SUBJECT TO EXAMINATION BY FEDERAL AND STATE TAXING AUTHORITIES. HOWEVER, THERE ARE NO EXAMINATIONS IN PROGRESS NOR ARE THERE ANY PENDING. PART XI, LINE 4B - OTHER ADJUSTMENTS: TUITION ASSISTANCE NETTED AGAINST TUITION REVENUE ON AUDIT REPORT 1,406,290. PART XII, LINE 4B - OTHER ADJUSTMENTS: TUITION ASSISTANCE NETTED AGAINST TUITION REVENUE ON AUDIT REPORT 1,406,290. 1 1 1 1 1 1 1 0 0 0 1 0 0 0 0 0 0 1 SCHEDULE E, PART I, LINE 3 SEA CREST SCHOOL PUBLICIZES ITS NON-DISCIMINATION POLICY ON ITS WEBSITE: HTTPS://WWW.SEACRESTSCHOOL.ORG/. SCHEDULE E, PART I, LINE 5 THE SCHOOL HAS A LIMITED SCHOLARSHIP PROGRAM FOR STUDENTS GRADES 5-8 TARGETING ECONOMICALLY DISADVANTAGED AND CULTURALLY UNDERREPRESENTED STUDENTS. THIS IS IN COMPLIANCE WITH SECTION 4.05 OF REV. PROC. 75-50, 1975-2 C.B. 587 AND DOES NOT ADVERSELY AFFECT THE SCHOOL'S EXEMPT STATUS. GINGER GIRVIN RUN 48528 37568 10960 10960 DREAM EVENT (AUCTION/GALA) 69748 17349 52399 6322 8134 21496 16447 0 118276 54917 63359 6322 8134 21496 27407 63359 0 1 FINANCIAL ASSISTANCE FOR TUITION 67 1272190 FAIR VALUE OF TUITION TUITION ASSISTANCE FOR FAMILIES IN NEED SCHOLARSHIP FOR TUITION 5 134100 FAIR VALUE OF TUITION SCHOLARSHIP TUITION SCHOLARSHIP FOR FAMILIES IN NEED PART I, LINE 2: SEA CREST SCHOOL REQUIRES FINANCIAL DISCLOSURE AND PRIOR TAX RETURNS FROM APPLICANTS REQUESTING ASSISTANCE. DECISIONS ARE BASED ON THE FAMILIES' CALCULATED ABILITY TO PAY (USING FAST METHODOLOGY) AND THE POOL OF FUNDS AVAILABLE. RECORDS ARE MAINTAINED INDIVIDUALLY FOR EACH FAMILY. X 1 1 X X X 0 0 0 0 0 0 0 0 0 LAUREN MILLER HEAD OF SCHOOL 280000 0 0 0 89014 0 19600 0 17611 0 406225 0 0 0 JACQUIE CUVELIER CHIEF FINANCIAL OFFICER 151794 0 0 0 480 0 12523 0 11697 0 176494 0 0 0 MICHELLE GIACOTTO DIRECTOR OF CURRICULUM 143500 0 0 0 480 0 10045 0 550 0 154575 0 0 0 LESLIE RICHARDSON DIRECTOR OF STUDENT LEARNING 124647 0 0 0 480 0 9981 0 19135 0 154243 0 0 0 MORGAN PIERCE EXTENDED DAY PROGRAM MANAGER 82168 0 0 0 54937 0 6102 0 10550 0 153757 0 0 0 PART I, LINE 1A THE HEAD OF SCHOOL WAS PAID A STIPEND OF $5,000 PER MONTH AS A HOUSING ALLOWANCE, WHICH WAS PAID THROUGH PAYROLL. THE HEAD OF SCHOOL WAS ALSO PAID $250 PER MONTH FOR BUSINESS EXPENSE REIMBURSEMENT, WHICH WAS ALSO PAID THROUGH PAYROLL. A CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY 680164610 NONEAVAIL 2013-07-01 4653000 REFINANCE 2008 TAX-EXEMPT BONDS, AND IMPROVEMENTS OF THE SCHOOL 0 0 0 A 4653000 92155 240516 4320329 2013 1 0 1 1 A 0 0 0 0 0 0 1 A 0 0 0 0 0 0 0 0 1 A 1 LAUREN MILLER HEAD OF SCHOOL HOME PURCHASE X 210000 174802 0 1 1 174802 53640 DISCOUNTED TUITION 100% TUITION DISCOUNT FOR CHILDREN OF THE HEAD OF SCHOOL X 7 17760 MARKET VALUE ON DATE X PLUMBING MATERIALS 1 12000 FMV OF MATERIALS X MISCELLANEOUS IN-KIND CONTRIBUTIONS 9 11096 FMV OF DONATED GOODS X AUCTION ITEMS 2 4150 FMV OF AUCTION ITEMS 0 1 0 FORM 990, PART VI, SECTION B, LINE 11B FILING WAS REVIEWED BY THE FINANCE COMMITTEE BEFORE FILING. FORM 990, PART VI, SECTION B, LINE 12C BOARD OF TRUSTEES AND ALL OFFICERS ARE REQUIRED TO SIGN A "CONFLICT OF INTEREST" STATEMENT EACH YEAR AND DISCLOSE ANY POSSIBLE ACTIVITIES WHICH MAY CREATE A CONFLICT OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15A WHEN THE SCHOOL HIRES ITS TOP MANAGEMENT OFFICIAL, IT HIRES A SEARCH FIRM AND DOES SALARY BENCHMARKING AT THAT TIME. SALARY INCREASES ARE IN LINE WITH INDUSTRY STANDARDS AND BENCHMARKED ANNUALLY. ADDITIONALLY, THE EXECUTIVE COMMITTEE HAS OVERSIGHT AND APPROVAL OF THE SALARY. FORM 990, PART VI, SECTION C, LINE 18 COPIES ARE AVAILABLE UPON REQUEST. FORM 990, PART VI, SECTION C, LINE 19 NO - WE DO NOT DISCLOSE THESE TO THE PUBLIC. FORM 990, PART XII, LINE 2 (C) THE FINANCE COMMITTEE OF THE BOARD OVERSEES THE AUDIT OF ITS FINANCIAL STATEMENTS. THERE IS NO CHANGE OF THE PROCESS FROM PRIOR YEARS. FORM 990, PART XI, LINE 8 IN JUNE 2016, THE ISSUED GUIDANCE (FASB ASC 326), CURRENT EXPECTED CREDIT LOSSES, WHICH SIGNIFICANTLY CHANGED HOW ENTITIES MEASURE CREDIT LOSSES FOR MOST FINANCIAL ASSETS AND CERTAIN OTHER INSTRUMENTS THAT ARE NOT MEASURED AT FAIR VALUE THROUGH THE CHANGE IN NET ASSETS. THE MOST SIGNIFICANT CHANGE IN THIS STANDARD IS A SHIFT FROM THE INCURRED LOSS MODEL TO THE EXPECTED LOSS MODEL. UNDER THE STANDARD, DISCLOSURES ARE REQUIRED TO PROVIDE USERS OF THE FINANCIAL STATEMENTS WITH USEFUL INFORMATION IN ANALYZING AN ENTITY'S EXPOSURE TO CREDIT RISK AND THE MEASUREMENT OF CREDIT LOSSES. FINANCIAL ASSETS HELD BY THE SCHOOL THAT ARE SUBJECT TO THE GUIDANCE IN FASB ASC 326 WERE TUITION AND FEES RECEIVABLE AND THE RELATED PARTY NOTE RECEIVABLE. THE SCHOOL ADOPTED THE STANDARD EFFECTIVE JULY 1, 2023, UTILIZING A CUMULATIVE-EFFECT ADJUSTMENT FOR TUITION AND FEES RECEIVABLE AND THE RELATED PARTY NOTE RECEIVABLE, BOTH MEASURED AT AMORTIZED COST. AS A RESULT OF THE ADOPTION, THE SCHOOL RECORDED A TRANSITION ADJUSTMENT, WHICH INCLUDED A $26,820 DECREASE TO THE ALLOWANCE FOR CREDIT LOSSES FOR TUITION AND FEE RECEIVABLES, WHICH IS PRESENTED ON THE STATEMENT OF FINANCIAL POSITION AS AN INCREASE TO THE TOTAL AMOUNT OF TUITION AND FEE RECEIVABLES AND BEGINNING NET ASSETS AS OF JULY 1, 2023, WHICH REPRESENTS THE CUMULATIVE EFFECT OF ADOPTING FASB ASC 326. FORM 990, PART V, LINE 14 (B) THIS ORGANIZATION DOES NOT OFFER OR PROVIDE TANNING SERVICES.