U.S. - JAPAN COUNCIL
FINANCIAL STATEMENTS AND
SUPPLEMENTARY INFORMATIONDECEMBER 31, 2018

U.S. - JAPAN COUNCILTABLE OF CONTENTSDECEMBER 31, 2018
Pages
Independent Auditors’ Report................................................................................................

3-4

Statement of Financial Position .........................................................................................

5

Statement of Activities.......................................................................................................

6

Statement of Functional Expenses ......................................................................................

7

Statement of Cash Flows ..................................................................................................

8

Notes to Financial Statements............................................................................................

9-17

7910 WOODMONT AVENUESUITE 500
BETHESDA, MD 20814(T) 301.986.0600

1150 18TH STREET, NW
SUITE 550
WASHINGTON, DC 20036(T) 202.822.0717

Independent Auditors’ Report
To the Board of Directors
U.S. - Japan Council
Washington, D.C.
We have audited the accompanying financial statements of U.S. - Japan Council (USJC), which
comprise the statement of financial position as of December 31, 2018, and the related statements ofactivities, functional expenses, and cash flows for the year then ended, and the related notes to thefinancial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements inaccordance with accounting principles generally accepted in the United States of America; thisincludes the design, implementation, and maintenance of internal control relevant to the preparationand fair presentation of financial statements that are free from material misstatement, whether due tofraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditors’ judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditors consider internal control
relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. Accordingly, we express no such
opinion. An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of significant accounting estimates made by management, as well as evaluating theoverall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
OpinionIn our opinion, the financial statements referred to above present fairly, in all material respects, thefinancial position of U.S. - Japan Council as of December 31, 2018, 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.

COUNCILOR, BUCHANAN & MITCHELL, P.C. – CPAs AND BUSINESS ADVISORS
www.cbmcpa.com | (F) 301.986.0432

To the Board of Directors
U.S. - Japan Council

Emphasis of Matter
As noted in Note 3 of the financial statements, USJC adopted Accounting Standards Update (ASU)
2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities.
Our opinion is not modified with respect to this matter.

Bethesda, Maryland
February 27, 2019

Certified Public Accountants-4-U.S. - JAPAN COUNCIL
STATEMENT OF FINANCIAL POSITIONDECEMBER 31, 2018
Without Donor
Restrictions

With Donor
Restrictions$ 2,411,022
10,202350,000
131,123
72,71665,943$

Total

AssetsCurrent Assets
Cash and Cash Equivalents
Certificates of Deposit
Investments
Grants and Contributions Receivable
Due from USJC - Japan
Prepaid Expenses

707,946
11,366,119
1,176,542-$ 3,118,968
10,202
11,716,119
1,307,665
72,71665,943

3,041,006

13,250,607

16,291,613-

330,000

330,000

27,421-

27,421$ 3,068,427$ 13,580,607$ 16,649,034

$

$

$

Total Current Assets
Grants and Contributions Receivable, Net ofCurrent Portion
Property and Equipment, Net
Total Assets
Liabilities and Net Assets
Current Liabilities
Accounts Payable
Accrued Expenses
Accrued Vacation
Deferred Revenue
Total Current Liabilities-

92,635
170,876
116,860
82,550462,921-462,9212,605,506

13,580,607

16,186,113$ 3,068,427$ 13,580,607$ 16,649,034

Net Assets
Total Liabilities and Net Assets

92,635
170,876
116,860
82,550See accompanying Notes to Financial Statements.
-5-

U.S. - JAPAN COUNCIL
STATEMENT OF ACTIVITIESFOR THE YEAR ENDED DECEMBER 31, 2018

Revenue
Grants and Contributions
TOMODACHI Contributions
Program Revenue
Annual Conference
Investment Income (Loss)
Foreign Exchange Income
Miscellaneous Income
Donated Services
Net Assets Released from Restrictions

Without Donor
Restrictions

With Donor
Restrictions$$

Total Revenue

551,970
27,0001,648,145
1,101,685
161
3,512
11,668
169,787
2,051,070

2,355,346(704,310)(2,051,070)

Total

$

551,970
2,382,346
1,648,145
1,101,685(704,149)
3,512
11,668
169,787-5,564,998(400,034)

5,164,964

3,131,824
1,692,285-

3,131,824
1,692,285

243,014
121,468-

243,014
121,468

Total Expenses

5,188,591-

5,188,591

Change in Net Assets

376,407(400,034)(23,627)

Net Assets, Beginning of Year2,229,099

13,980,641

16,209,740

Net Assets, End of Year$ 2,605,506$ 13,580,607$ 16,186,113

Expenses
Program Services
General Education
TOMODACHI
Supporting Services
General and Administration
Fundraising

See accompanying Notes to Financial Statements.
-6-

U.S. - JAPAN COUNCIL
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2018
General
Education

Salaries and Benefits
Program Implementation Services
Office Expenses
TravelMeetings
Business and License Fees
Professional Services
Depreciation and Amortization
Rent
Facilities and Equipment
Computer Hosting and MaintenanceSupplies
Telecommunications
Printing
Insurance
Dues and Subscriptions
Fees
Education and Training
Total

TOMODACHI

Total
Programs

General and
Administration

FundraisingTotal$ 1,002,986
1,770,871
9,424
91,78562,8205,021
26,674
8,509
53,973
7,948
8,351
5,479
52,626
5,654
3,720
2,234
9,646
4,103

$

283,840
1,310,982
358
2,574
1,293
14,876
5,931
38,554
50
5,685
4,033
9,420
3,278
4,855
704
3,434
2,418

$ 1,286,826
3,081,853
9,782
94,35962,8206,314
41,55014,44092,527
7,998
14,036
9,512
62,046
8,932
8,575
2,938
13,0806,521$

191,137
2,769
4,796
4,533
1,434
6,677
990
15,421
1,272
2,386
830
3,607
1,582
1,063
638
2,707
1,172

$

95,569
1,346
2,398
2,267
717
3,338
1,121
7,710
10
1,193
415
1,804
791
531
319
1,353
586

$ 1,573,532
3,081,853
13,897
101,553
69,6208,465
51,565
16,551
115,658
9,280
17,615
10,75767,457
11,305
10,1693,895
17,1408,279$ 3,131,824$ 1,692,285$ 4,824,109$

243,014$

121,468$ 5,188,591

See accompanying Notes to Financial Statements.
-7-

U.S. - JAPAN COUNCIL
STATEMENT OF CASH FLOWSFOR THE YEAR ENDED DECEMBER 31, 2018
Cash Flows from Operating Activities
Change in Net Assets
Adjustments to Reconcile Change in Net Assets to Net Cash
Provided by Operating Activities
Depreciation and Amortization
Loss on Investments(Increase) Decrease in Assets
Grants and Contributions Receivable
Due from USJC - Japan
Prepaid Expenses
Increase (Decrease) in Liabilities
Accounts Payable
Accrued Expenses
Accrued Vacation
Deferred Revenue
Net Cash Provided by Operating Activities
Cash Flows from Investing Activities
Purchases of Fixed Assets
Puchases of Investments
Sales of Investments$(23,627)

16,551
627,203(617,181)
655,639(41,616)(122,084)(39,545)
23,041
19,299497,680(15,124)(2,646,285)
3,163,499

Net Cash Provided by Investing Activities

502,090

Net Increase in Cash and Cash Equivalents

999,770

Cash and Cash Equivalents, Beginning of Year

2,119,198

Cash and Cash Equivalents, End of Year$ 3,118,968

See accompanying Notes to Financial Statements.
-8-

U.S. - JAPAN COUNCILNOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
1.

ORGANIZATION
U.S. - Japan Council (USJC) is a not-for-profit corporation incorporated in the State ofCalifornia in December 2008 that contributes to strengthening U.S. - Japan relations bybringing together diverse leadership, engaging stakeholders, and exploring issues that benefit
communities, businesses, and government entities on both sides of the Pacific. USJC
promotes people-to-people relations as crucial to a strong U.S. - Japan relationship. USJC
has offices in Washington, DC, and Los Angeles, California.
In 2012, the U.S. - Japan Council (Japan) (USJC-J) was created to support the administrationof the TOMODACHI Initiative (see Note 10), and is a Public Interest Corporation (Koeki
Zaidan Hojin). USJC-J maintains an office in Tokyo, Japan.
USJC is supported primarily by contributions and contract revenue related to its programs.

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe following is a summary of accounting policies followed in the preparation of USJC’s
financial statements.
Basis of Accounting
The financial statements are prepared on the accrual basis of accounting. Under the accrual
method, revenues are recognized when earned and expenses are recognized when incurred.
Financial Statement Presentation
USJC has presented its financial statements in accordance with U.S. Generally Accepted
Accounting Principles. Under those principles, USJC is required to report information regarding
its financial position and activities according to two classes of net assets:•

Net Assets Without Donor Restrictions - resources that are available for general operations andresources designated by USJC’s board of directors for approved expenditures.

•

Net Assets With Donor Restrictions - resources that are subject to donor-imposed restrictions;
temporary or permanent. Temporary restrictions are those that expire either by passage oftime or fulfillment of purpose by actions of USJC. Permanent restrictions are that neither
expire by passage of time nor fulfillment of purpose.

Use of Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates andassumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from those estimates.
Income Taxes
USJC is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code (theCode) and has been determined by the Internal Revenue Service not to be a private foundation
within the meaning of Section 509(a) of the Code.
-9-U.S. - JAPAN COUNCILNOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Income Taxes (Continued)
USJC requires that a tax position be recognized or derecognized based on a “more-likely-thannot” threshold. This applies to positions taken or expected to be taken in a tax return. USJC does
not believe its financial statements include, or reflect, any uncertain tax positions.
USJC’s IRS Form 990, Return of Organization Exempt from Income Tax, is subject to examinationby the taxing authorities, generally for three years after it was filed.
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand and other highly liquid instruments withinitial maturities of less than three months when purchased.
Grants and Contributions Receivable
Grants and contributions receivable consist primarily of amounts due from organization andindividual pledges that were not received by USJC at year end. Management reviews thecollectability of the accounts on a regular basis. No reserve for doubtful accounts is deemednecessary as all amounts are deemed to be fully collectible.
Investments
Investments consist of mutual funds, exchange traded funds, and private investment funds
which are stated at fair market value.
Property and Equipment
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation iscomputed using the straight-line method over the estimated useful lives of three years for furniture,
fixtures, and office equipment. USJC capitalizes all furniture and equipment purchases over $500.
Repairs and maintenance which do not significantly add to the value of assets are expensed as
incurred.
Donated Services
Donated services are recognized as contributions, at fair value, if the services (a) create
nonfinancial assets or (b) require specialized skills, are performed by people with those skills,
and would otherwise be purchased by USJC.
Grants and Contributions
Grants and contributions are recognized when a donor makes an unconditional promise to
give. Grants and contributions received are recorded as net assets with donor restrictions or net
assets without donor restrictions depending on the existence or nature of any donor
restrictions. When a donor restriction expires, that is, when a stipulated time restriction ends,
or the purpose restriction is accomplished, net assets with donor restrictions are reclassified to
net assets without donor restrictions and reported in the statement of activities as net assets
released from restrictions.
- 10 -

U.S. - JAPAN COUNCILNOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Functional Allocation of Expenses
The costs of providing the various programs and other activities have been summarized on afunctional basis in the statement of activities and the statement of functional expenses.
Accordingly, certain costs have been allocated among the programs and supporting services
benefited. These expenses require allocation on a reasonable basis that is consistently applied.
The expenses that are allocated include compensation, benefits, and general expenses, which
are allocated on the basis of estimates of time and effort by employees. Expenses directly
identifiable to specific programs and supporting activities are allocated accordingly.

3.

ADOPTION OF ACCOUNTING STANDARDS UPDATE 2016-14
In August 2016, the Financial Accounting Standards Board (FASB) issued AccountingStandards Update (ASU) 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial
Statements of Not-for-Profit Entities. The amendments in this ASU made improvements to theinformation provided in financial statements and accompanying notes of not-for-profit entities.
The amendments set forth the FASB’s improvements to net assets classification requirements
and the information presented about a not-for-profit’s liquidity and availability of resources.
The ASU became effective for fiscal years beginning after December 15, 2017. The changes inthis ASU should generally be applied on a retrospective basis in the year that the ASU is first
applied. USJC implemented this ASU effective for its fiscal year ended December 31, 2018.

4.

CONCENTRATIONSUSJC maintains cash balances at financial institutions in the Washington, DC, metropolitanarea, California, and Tokyo, Japan. The accounts at the U.S. institutions are insured by theFederal Deposit Insurance Corporation (FDIC). At times during the year, USJC’s cash balances
exceeded the FDIC insurance amounts. Management believes the risk in these situations to beminimal.

5.

LIQUIDITY AND AVAILABILITY OF RESOURCES
USJC’s cash flows have seasonal variations due to the timing of grants, contributions, program
revenues, and vendor payments. USJC manages its liquidity to meet general expenditures,
liabilities, and other obligations as they become due. Excess cash flows not needed forday-to-day operations are invested in CDs or short-term investments.
The following reflects USJC’s financial assets as of December 31, 2018, reduced by amounts
not available for general operating expenditure within one year:
Total Assets
Less Amounts Not Available for General Operating Expenditure
Grants and Contributions Receivable in Greater than One Year
Contributions Receivable Restricted for Purpose by Donors
Investments Designated for Endowment Fund
Investments Held in Private Investments
Fixed Assets, Net
Total Financial Assets and Liquidity Resources Available within One Year

- 11 -$ 16,649,034(330,000)(1,176,542)(11,366,119)(350,000)(27,421)$ 3,398,952

U.S. - JAPAN COUNCILNOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
6.

INVESTMENTS AND FAIR VALUE MEASUREMENTS
USJC has categorized its financial instruments based on fair value hierarchy as follows:
Level 1 - values are based on quoted prices for identical assets in an active market.
Level 2 - values are based on quoted prices for similar assets in active or inactive markets.
Level 3 - values are based on unobservable inputs to measure fair value to the extent thatobservable inputs are not available, thereby allowing for situations in which there is little, if any,market activity for the asset or liability at the measurement date. Therefore, unobservable inputs
reflected USJC’s judgment about the assumptions that market participants would use in pricing
the asset or liability (including assumptions about risk).
During 2017, USJC invested in certain investments of undivided interest in a fund of funds
which invests in diversified interests. This partnership invests in private investment funds whichhave a variety of investment objectives. Each of these investments have certain restrictions withrespect to rights of withdrawal by the partnership. At December 31, 2018, the balance in thisfund was $4,307,194.
Fair values of assets at December 31, 2018, are as follows:
Fair Value
Money Market Fund
Equity Funds
Exchange Traded Funds
Fixed Income Funds
Private Investments Funds
Total

$

218,887
1,725,234
354,830
4,759,973
4,657,195$ 11,716,119

Level 1$

Level 2

Level 3

218,887
1,725,234
354,830
4,759,973
-

$

-

$

4,657,195$ 7,058,924$-$ 4,657,195

The preceding methods described may produce a fair value estimate that may not be indicativeof net realizable value or reflective of future fair values. Furthermore, although USJC believes
its valuation methods are appropriate and consistent with other market participants, the use ofdifferent methodologies or assumptions to determine the fair value of certain financial
instruments could result in a different fair value measurement at the reporting date.
Assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
are as follows:
PrivateInvestment
Funds
Balance, January 1, 2018
Purchases of Investments
Total Net Unrealized Loss Included in Changes in Net Assets, in
Net Investment Income, Attributable to Assets Held at Year End
Balance, December 31, 2018

$ 5,074,462(417,267)$ 4,657,195

USJC recognizes transfers into and out of levels within the fair value hierarchy at the endof the reporting period. There were no transfers between levels during the year ended
December 31, 2018.
- 12 -

U.S. - JAPAN COUNCILNOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
6.

INVESTMENTS AND FAIR VALUE MEASUREMENTS (CONTINUED)
Investment loss for the year ended December 31, 2018, is as follows:
AmountInterest and Dividends
Unrealized Loss
Investment Fees
Total Investment Loss

7.

$

145,251(792,364)(57,036)$(704,149)

GRANTS AND CONTRIBUTIONS RECEIVABLE
Unconditional promises to give are recorded as receivables and revenue when received. USJC
distinguishes between grants and contributions received for each net asset category inaccordance with donor-imposed restrictions. Grants and contributions receivable are recorded
after being discounted to the anticipated net present value of the future cash flows.
Grants and contributions are expected to be realized in the following periods:
In One Year or Less
Between One Year and Five Years$ 1,307,665
330,000$ 1,637,665

8.

PROPERTY AND EQUIPMENT
Property and equipment consisted of the following as of December 31, 2018:
Description

AmountFurniture and Fixtures
Office Equipment$

104,712(77,291)

Less Accumulated Depreciation
Net

9.

39,34265,370$27,421

NET ASSETS WITH DONOR RESTRICTIONS
Net assets with donor restrictions were available for the following purposes at December 31, 2018:
Description

AmountTemporarily Restricted
TOMODACHI
Watanabe Endowment Fund - Scholarships
Permanently Restricted
Watanabe Endowment Fund - Scholarships$ 3,180,389
400,218
10,000,000

Total Net Assets With Donor Restrictions$ 13,580,607- 13 -

U.S. - JAPAN COUNCILNOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
9.

NET ASSETS WITH DONOR RESTRICTIONS (CONTINUED)
Net assets were released from donor restrictions during 2018 as follows:
Description

AmountTOMODACHI
Watanabe Endowment - Scholarships$ 1,629,238
421,832

Total

10.

$ 2,051,070

TOMODACHIUSJC and the U.S. Embassy in Tokyo, with support from the government of Japan, formed apublic-private partnership (TOMODACHI), to support the long-term recovery of Japanfollowing the March 11, 2011 Great East Japan Earthquake. TOMODACHI supports
programs in educational exchange and leadership development that invest in the next
generation of young Japanese and Americans in ways that deepen the friendship between the
United States and Japan.
TOMODACHI raises funds from contributors in the U.S. and Japan. Donors have the optionof contributing to the U.S. - Japan Council (US) or to a separate and independent publicbenefit corporation, U.S. - Japan Council (Japan). Management and program services areprovided to U.S. - Japan Council (US) through a Management Agreement to support
TOMODACHI activities in Japan.

11.

ANNUAL CONFERENCE
In 2018, U.S. - Japan Council (US) and U.S. Japan Council (Japan) held a joint Annual
Conference in Tokyo, Japan. Total conference revenue, expenses, and net proceeds wereshared between the two entities based on the ratio of revenue received and expenses paid
which were 50% (US) and 50% (Japan). These distributions were approved by both Boards of
Directors.

12.

DONOR DESIGNATED ENDOWMENTS
USJC’s endowment consists of the donor-restricted Toshizo Watanabe Endowed Scholarship
Fund (the Fund). The Fund was created to provide study abroad scholarships to American andJapanese students who demonstrate leadership potential and financial need. The scholarships
assist in supporting the cost of tuition and/or living expenses for a student’s academic study inJapan and the United States. The scholarship program seeks to promote cross-cultural
education between the two countries.
As required by generally accepted accounting principles, net assets associated with endowment
funds, including funds designated by the Board of Directors to function as endowments, areclassified and reported based on the existence or absence of donor-imposed restrictions.
The Board of Directors of USJC has interpreted the Uniform Prudent Management ofInstitutional Funds Act (UPMIFA) as adopted by the District of Columbia as requiring thepreservation of the fair value of the original gift as of the gift date of the donor-restricted
endowment funds absent explicit donor stipulations to the contrary. As a result of thisinterpretation, USJC classifies as permanently restricted net assets (a) the original value of gifts- 14 -

U.S. - JAPAN COUNCILNOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
12.

DONOR DESIGNATED ENDOWMENTS (CONTINUED)
donated to the permanent endowment, (b) the original value of subsequent gifts to thepermanent endowment, and (c) accumulations to the permanent endowment made inaccordance with the direction of the applicable donor gift instrument at the time theaccumulation is added to the Fund. The remaining portion of the donor-restricted endowment
fund that is not classified in permanently restricted net assets are classified as temporarily
restricted net assets until those amounts are appropriated for expenditure by USJC in a mannerconsistent with the standard of prudence prescribed by UPMIFA. In accordance with UPMIFA,USJC considers the following factors in making a determination to appropriate or accumulate
donor-restricted endowment funds: (1) the duration and preservation of the various funds, (2) the
purposes of the donor-restricted endowment funds, (3) general economic conditions, (4) the
possible effect of inflation and deflation, (5) the expected total return from income and theappreciation of investments, (6) other resources of USJC, and (7) USJC’s investment policies.
Investment Return Objectives, Risk Parameters, and Strategies: USJC has adopted investment andspending policies for endowment assets that attempt to provide a predictable stream of funding
to programs supported by its endowment assets. Endowment assets shall exist into perpetuity
and therefore be invested with the objective of preserving its long-term real purchasing power
while providing for the annual spending distribution. The primary investment objective of theFund, measured over five to seven rolling periods, is to earn an annualized return of at least
4.0 percent, net of fees. The secondary investment objective of the Fund is to be competitive
over the long term (defined as five- to seven-year rolling periods) relative to its market
benchmark. The Fund will also be reviewed relative to a peer universe of endowment fundswith recognition that the Fund is likely to have a different total return and risk profile thanmany of the endowments in universe comparisons.
Spending Policy: The Fund’s annual minimum distribution requirement is $200,000, less certain
administrative fees. The Board has discretion to establish a prudent spending policy in excessof the minimum requirement. In any given year, the spending policy may range from not lessthan $200,000 to approximately 4.0 percent of the market value of the Fund.
Composition and changes in endowment net assets for the year ended December 31, 2018,
were as follows:
With Donor Restrictions
Temporarily
Permanently
Restricted
Restricted

Without Donor
Restrictions
Donor-Restricted Endowment Fund

$

-

$

$

Endowment Net Assets, End of Year

$

-

$

-

- 15 -$

10,000,000$

With Donor Restrictions
Temporarily
Permanently
Restricted
Restricted

Without Donor
Restrictions
Endowment Net Assets, Beginning of Year
Investment Return
Contributions
Appropriation of Endowment Assets
for Expenditure400,218

Total

1,489,325(667,275)-$(421,832)$

400,218

Total

10,000,000-$$

10,400,218

10,000,000

11,489,325(667,275)(421,832)$

10,400,218

U.S. - JAPAN COUNCILNOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
13.

DONATED SERVICES
The value of donated services and facilities and the corresponding functional expense
categories for the year ended December 31, 2018, are as follows:
General
Education

Description

TravelPrinting
Meetings
Facilities and Equipment
Total

14.

TOMODACHI

Generaland
Administration

Fundraising

Total

$

75,00040,00046,953
7,834

$

-

$

-

$

-

$

75,00040,00046,953
7,834$

169,787

$

-

$

-

$

-

$

169,787

RETIREMENT PLAN
USJC has a 401(k) retirement plan (the Plan). Employees may elect to defer a portion ofcompensation by enrolling in the Plan. All employees over the age of 21 and completing threemonths of service are eligible to receive an employer matching contribution equal to 100% of
their deferrals up to 6% of their compensation. Employees’ and USJC’s contributions to thePlan are 100% vested upon participation. During the year ended December 31, 2018, USJC’scontribution to the Plan was $63,410.

15.

LEASES
Office Equipment Lease
USJC has entered into a lease of certain office equipment and is obligated under the leasethrough April 2020.
Office Lease
USJC has a non-cancellable office lease that expires on January 31, 2022. The lease contains
an annual increase of rent amounts and additional payments for operating charges.
The minimum future lease payments under the above leases are as follows:
For the Years Ending December 31,
2019
2020
2021
2022
Total Future Minimum Lease Payments

16.

$

165,193
170,510
173,984
14,528$524,215

COMMITMENTS
USJC entered into a contract for hotel and venue for its annual conference in 2019. The
contract contains a clause whereby USJC is liable for liquidated damages in the event ofcancellation, based upon a percentage of the contract price determined by the length of time
between the cancellation and the event date. Management does not believe any cancellation
under this contract will occur and result in a material impact to the financial statements.
- 16 -

U.S. - JAPAN COUNCILNOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 201817.

SUBSEQUENT EVENTS
Subsequent events were evaluated through February 27, 2019, which is the date the financial
statements were available to be issued.

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