CULTURAL COUNCIL OF NOTES TO FINANCIAL STATEMENTS

PALM BEACH COUNTY, INC.

For the Year Ended September 30, 2022

3. Fair Value Measurements, continued

The following methods and assumptions were used by the Council in estimating the fair value of assets that are measured at fair value on a recurring basis under FASB ASC Topic 820. There have been no changes in the methodologies used as of September 30, 2022.

 Exchange traded funds (ETFs)- fixed income, US & international equity – valued at the quoted market price by the custodian as f the last business day of the year.

 Beneficial Interest in Trust – Valued at level 3 based on the Council’s share of the fair value of the assets that are held by the custodian, which provides a perpetual stream of income to the Council.

The following table sets forth by level, within the fair value hierarchy, the Council’s assets at fair value as of September 30, 2022:

Level 3 Gains and Losses

The table below sets forth a summary of changes in the fair value of the Council’s Level 3 asset, beneficial interest in trust, for the year ended September 30, 2022.

FASB ASC 820-10 requires disclosure of quantitative information about the unobservable inputs used to measure Level 3 assets and liabilities. The following table provides information about Level 3 assets:

4. Endowments

FASB ASC 958, Not-for-Profit Entities, Presentation of Financial Statements, provides guidance on the net asset classification of donor-restricted endowment funds for a not-for-profit organization that is subject to an enacted version of the Uniform Prudent Management of Institutional Funds Act of 2006 (UPMIFA) and improves disclosures about an organization’s endowment funds (both donor-restricted endowment funds and Board-designated endowment funds), whether or not the organization is subject to UPMIFA.