JAPAN CENTER FOR INTERNATIONALEXCHANGE, INC.
FINANCIAL STATEMENTS AND INDEPENDENTACCOUNTANTS’ REVIEW REPORTYEAR ENDED JUNE 30, 2023

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
FINANCIAL STATEMENTS AND
INDEPENDENT ACCOUNTANTS’ REVIEW REPORTYEAR ENDED JUNE 30, 2023

Table of Contents
Page No(s).
Independent Accountants’ Review Report ........................................................................

3-4

Financial Statements
Statements of Financial Position ....................................................................................

5

Statements of Activities and Changes in Net Assets ......................................................

6

Statements of Functional Expenses ..............................................................................

7-8

Statements of Cash Flows ..............................................................................................

9Notes to the Financial Statements .................................................................................. 10 - 18

INDEPENDENT ACCOUNTANTS’ REVIEW REPORTTo the Board of Directors ofJapan Center for International Exchange, Inc.
New York, New York
L.M. Cohen & Co. LLP Certified Public Accountants (“LMC Certified Public Accountants”, “we”,“us”, or “our”) have reviewed the accompanying financial statements of Japan Center forInternational Exchange, Inc. (a not-for-profit organization), (the “Center”), which comprise thestatement of financial position as of June 30, 2023, and the related statements of activities andchanges in net assets, functional expenses, and cash flows for the year then ended, and therelated notes to the financial statements. A review includes primarily applying analyticalprocedures to management’s financial data and making inquiries of the Center’s management. A
review is substantially less in scope than an audit, the objective of which is the expression of an
opinion regarding the financial statements as a whole. Accordingly, we do not express such an
opinion.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statementsin accordance with accounting principles generally accepted in the United States of America; thisincludes 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.
Accountants’ Responsibility
Our responsibility is to conduct the review engagement in accordance with Statements onStandards for Accounting and Review Services promulgated by the Accounting and Review
Services Committee of the AICPA. Those standards require us to perform procedures to obtain
limited assurance as a basis for reporting whether we are aware of any material modifications
that should be made to the financial statements for them to be in accordance with accounting
principles generally accepted in the United States of America. We believe that the results of ourprocedures provide a reasonable basis for our conclusion.
We are required to be independent of the Center and to meet our other ethical responsibilities, inaccordance with the relevant ethical requirements related to our review.
Accountants’ Conclusion
Based on our review, we are not aware of any material modifications that should be made to theaccompanying financial statements in order for them to be in accordance with accounting
principles generally accepted in the United States of America.

Report on 2022 Financial Statements
The June 30, 2022 financial statements were audited by us, and we expressed an unmodified
opinion on them in our report dated May 2, 2023. We have not performed any auditing procedures
since that date.

LMC
Certified Public Accountants

February 20, 2024

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
STATEMENTS OF FINANCIAL POSITIONJUNE 30, 2023 AND 2022
2023
(Reviewed)

2022(Audited)

ASSETS
Current assets
Cash
Investments, at fair value
Pledges receivable
Advances to JCIE - Japan
Prepaid expenses and other current assets
Due from JCIE - Japan

$

102,251
1,391,802
204,798
3,831-$

641,043
1,225,432
177,375
70,00050
8,250

Total current assets

1,702,682

2,122,150

Property and equipment, net
Security deposits

126,861
7,493

149,927
7,493

Total assets$

1,837,036$

2,279,570$

8,948
73,695$26,892-

LIABILITIES AND NET ASSETS
Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to JCIE - Japan
Total current liabilities

82,64326,892

Net assets
Without donor restrictions
With donor restrictions

1,462,290
292,1031,616,633
636,045

Total net assets

1,754,393

2,252,678

Total liabilities and net assets$

1,837,036$

2,279,570

See Independent Accountants' Review Report and Notes to the Financial Statements.

5

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETSYEARS ENDED JUNE 30, 2023 AND 2022
2023
(Reviewed)
Changes in net assets without donor restrictions:
Revenues and gains
Contributions
Interest and dividend income
Net realized and net change in unrealized gains (losses) on investments
Total revenues and gains without donor restrictions$

354,398
27,201
141,650

2022(Audited)$

842,853
21,298(174,836)

523,249

689,315

623,504

125,837

Total revenues, gains and other support
without donor restrictions

1,146,753

815,152

Expenses
Program services
Human Security and Global Cooperation
Global Think Net
Legislative Exchange

344,088663,523
145,398

400,920
219,895
89,559Total program services

1,153,009

710,374

Supporting services
Management and general

148,087

179,772

1,301,096

890,146

Changes in net assets without donor restrictions(154,343)(74,994)

Changes in net assets with donor restrictions:Contributions
Net assets released from restrictions

279,562(623,504)

448,276(125,837)

Changes in net assets with donor restrictions(343,942)

322,439

Net change in net assets(498,285)

247,445

Total net assets - beginning of year

2,252,678

2,005,233$ 1,754,393$ 2,252,678

Net assets released from restrictions
Satisfaction from program restrictions

Total expenses

Total net assets - end of year

See Independent Accountants' Review Report and Notes to the Financial Statements.

6

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC
STATEMENT OF FUNCTIONAL EXPENSESYEAR ENDED JUNE 30, 2023 (REVIEWED)Supporting
Services

Program Services
Human Security

Salaries and benefits
Occupancy
Communication
Equipment and supplies
Professional fees
TravelProgram expenses
Depreciation
Miscellaneous

$

Total

Management

and Global

GlobalLegislative

Program

and

Total

Cooperation

Think Net

Exchange

Services

GeneralExpenses

331,463
19,7482,993
26,682
27,32358,189-$50,95910,971
1,551
14,82332,5204,577-$

31,492
6,582
931
8,894
75,407
7,092-$

413,91437,301
5,475
50,399135,250
69,858-$99,211
6,582
931
2,042
11,4398,400
23,0662,666$

513,125
43,8836,406
2,042
61,838143,650
69,85823,066
2,666

Total before JCIE - Japan contributions

466,398

115,401130,398

712,197

154,337

866,534

Contributions to (outlay from) JCIE - Japan(122,310)

548,122

15,000440,812(6,250)434,562

Total$

344,088$663,523$

See Independent Accountants' Review Report and Notes to the Financial Statements.

145,398$

1,153,009$

148,087$

1,301,096

7

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
STATEMENT OF FUNCTIONAL EXPENSESYEAR ENDED JUNE 30, 2022 (AUDITED)Supporting
Services

Program Services
Human Security

Salaries and benefits
Occupancy
Communication
Professional fees
TravelProgram expenses
Depreciation
Miscellaneous

$

Total

Management

and Global

GlobalLegislative

Program

and

Total

Cooperation

Think Net

Exchange

Services

GeneralExpenses

366,685
22,7207,401
18,18955,31956,716
17,967$44,607
11,164
2,578
1,299
492
17,814332$

34,549
6,698
1,547
602
6,163
-

$

445,841
40,582
11,526
19,48856,41380,693
18,299$127,608
6,698
1,547
12,9924,551
2,459
23,066851$

573,449
47,28013,07332,48060,964
83,152
23,06619,150Total before JCIE - Japan contributions

544,99778,28649,559672,842

179,772

852,614

Contributions to (outlay from) JCIE - Japan(144,077)

141,60940,00037,532-37,532

Total$

400,920$

219,895$

See Independent Accountants' Review Report and Notes to the Financial Statements.

89,559$710,374$

179,772$

890,146

8

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
STATEMENTS OF CASH FLOWSYEARS ENDED JUNE 30, 2023 AND 2022
2023
(Reviewed)
Cash Flows from Operating Activities
Net change in net assets
Adjustments to reconcile net change in net assets to
net cash (used in) provided by operating activities:
Depreciation
Net realized and net change in unrealized gains (losses) on investments
Changes in operating assets and liabilities:
Pledges receivable
Advances to JCIE - Japan
Prepaid expenses and other current assets
Due from JCIE - Japan
Accounts payable and accrued expenses
Due to JCIE - Japan

$(498,285)

2022(Audited)$

247,445

23,066(141,650)

23,066
174,836(27,423)
70,000(3,781)
8,250(17,944)
73,695(75,000)(70,000)
14,981102,009
15,087-(514,072)

432,424

Cash Flows from Investing Activities
Purchase of investments
Proceeds from sale of investments(24,720)-(46,460)
875

Net cash used in investing activities(24,720)(45,585)

Net change in cash

(538,792)

386,839

Cash - beginning of year

641,043

254,204

Net cash (used in) provided by operating activities

Cash - end of year$

102,251

See Independent Accountants' Review Report and Notes to Financial Statements.

$

641,043

9

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
NOTES TO FINANCIAL STATEMENTSYEARS ENDED JUNE 30, 2023 (REVIEWED) AND 2022 (AUDITED)NOTE 1 -NATURE OF OPERATIONSJapan Center for International Exchange, Inc. (a not-for-profit organization), (the "Center") was
incorporated in June 1976 as a non-profit corporation chartered by the State of New York. The
Center was created for the purpose of promoting, enhancing, and contributing to theadvancement of world peace, international cooperation, and mutual understanding between
Japan and the United States in political, social, cultural, and other areas.
NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBasis of Presentation
The Center follows the requirements of the Not-for-Profit Entities, Presentation of Financial
Statements Topic of the Financial Accounting Standards Board (FASB) Accounting Standards
Codification (ASC) Topic 958. Under this Topic, the Center is required to report information
regarding its financial position and activities according to two classes of net assets, net assets
without donor restrictions and net assets with donor restrictions.
Cash and Cash Equivalents
For purposes of the statements of cash flows, the Center considers all highly liquid
instruments available for current use with an initial maturity of three months or less to be cash
equivalents.
Investment Valuation and Income Recognition
Investments in mutual funds are valued at the net asset value of the shares held by the Centerat year-end and are reported at their fair values in the statements of financial position. Netchange in unrealized gains and losses are included in the statements of activities and changes
in net assets. Interest income is reported on the accrual basis. Dividends are recorded on the
ex-dividend date. Investment income and gains restricted by a donor are reported asincreases in net assets without donor restrictions if the restrictions are met (either by passageof time or by use) in the reporting period in which the income and gains are recognized.
Fair Value Measurements
The accounting standards define fair value, establish a framework for measuring fair value,
outline a fair value hierarchy based on inputs used to measure fair value and enhance
disclosure requirements. The fair value hierarchy distinguishes between market participant
assumptions based on market data obtained from sources independent of the reporting Center(observable inputs that are classified within Level 1 or 2 of the hierarchy) and the reporting
Center’s own assumptions about market participant assumptions (unobservable inputs
classified within Level 3 of the hierarchy).

10

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
NOTES TO FINANCIAL STATEMENTSYEARS ENDED JUNE 30, 2023 (REVIEWED) AND 2022 (AUDITED)NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Fair Value Measurements (Continued)-

Level 1 inputs are quoted prices in active markets for identical investments thatmanagement has the ability to access at the measurement date.

-

Level 2 inputs are inputs other than quoted prices included within Level 1 that are
observable for the investment, either directly or indirectly.

-

Level 3 inputs are unobservable inputs for the investment.

Financial assets and liabilities are categorized based on the lowest level of input that issignificant to the fair value measurement. The Center’s assessment of the significance of aparticular input to the fair value measurement requires judgement and may affect the valuationof the fair value of assets and liabilities and their placement within the fair value hierarchy
levels.
Contributions
The Center complies with the FASB issued Accounting Standards Update (ASU) 2018-08,
Not-for-Profit Entities (ASC Topic 958): Clarifying the Scope and the Accounting Guidance forContributions Received and Contributions Made. ASU 2018-08 clarifies the guidance for
evaluating whether a transaction is reciprocal (an exchange transaction) or nonreciprocal (acontribution) and for distinguishing between conditional and unconditional contributions.
Contributions are recognized when the donor makes a promise to give to the Center that is, insubstance, unconditional. Contributions that are restricted by the donor are reported asincreases in net assets without donor restrictions if the restrictions are met in the fiscal year inwhich the contributions are recognized. All other donor-restricted contributions are reported asincreases in net assets with donor restrictions depending on the nature of the restrictions.
When a restriction expires, net assets with donor restrictions are reclassified to net assets
without donor restrictions.

11

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
NOTES TO FINANCIAL STATEMENTSYEARS ENDED JUNE 30, 2023 (REVIEWED) AND 2022 (AUDITED)NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Property and Equipment
Property and equipment are stated at cost, less depreciation and amortization. The cost ofadditions and improvements is capitalized and expenditures for repairs and maintenance are
expensed as incurred. Fully depreciated assets are retained in property and depreciationaccounts until they are removed from service. When assets are retired or otherwise disposedof, their cost and related accumulated depreciation and amortization are removed from theaccounts and resulting gains or losses are included in operations. Depreciation of property andequipment is accounted for using the straight-line method over the estimated useful lives of
the assets. Amortization of leasehold improvements is calculated using the straight-line
method over the shorter of the term of the related lease or the useful lives of the
improvements.
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 ofcontingent 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 fromthose estimates.
Income Tax Status
The Center is a not-for-profit organization that is exempt from Federal and State income taxes
under Section 501(c)(3) of the Internal Revenue Code. Accordingly, no provision for income
taxes has been made in the financial statements.
The Center evaluates the effect of uncertain tax positions, if any, and provides for thosepositions in accordance with the provisions of ASC Topic 450, Contingencies.
Cost Allocation
The financial statements report certain categories of expenses that are attributable to morethan one program or supporting function. Therefore, these expenses require allocation on areasonable basis that is consistently applied. The expenses that are allocated include salaries
and benefits, which are allocated on the basis of estimates of time and effort, as well as othercertain expenses. All other expenses are directly applied to the related program or supporting
service category when identifiable and possible.

12

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
NOTES TO FINANCIAL STATEMENTSYEARS ENDED JUNE 30, 2023 (REVIEWED) AND 2022 (AUDITED)NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Revenue from Contracts with Customers
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASC
Topic 606), requiring an entity to recognize the amount of the revenue to which it expects to beentitled for the transfer of promised goods or services to customers. The updated standard
replaced most existing revenue recognition guidance in U.S. generally accepted accounting
principles (U.S. GAAP) when it became effective and permits the use of either a full
retrospective or retrospective with cumulative effect transition method. In June 2020, the FASB
issued ASU 2020-05, which deferred the effective date of ASU 2014-09 one year, making it
effective for years beginning after December 15, 2019, and interim reporting periods within
annual reporting periods beginning after December 15, 2020. The Center adopted ASC Topic
606 with a date of initial application on July 1, 2020.
The Center recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts
with Customers, and determines revenue by applying the following 5-step model:
1.
2.
3.
4.
5.

Identify the contract with a customer;
Identify the performance obligations in the contract;
Determine the transaction price;
Allocate the transaction price to the performance obligations; andRecognize revenue as the performance obligations are satisfied.

LeasesIn February 2016, the FASB issued ASU 2016-02, Leases (ASC Topic 842). ASC Topic 842
establishes a comprehensive new lease accounting model. The new standard clarifies thedefinition of a lease and causes lessees to recognize leases on the statement of financial
position as a lease liability with a corresponding right-of-use asset for leases with a lease termof more than one year. The new standard requires a modified retrospective transition for
capital or operating leases existing at or entered into after the beginning of the earliest
comparative period presented in the financial statements, but it does not require transition
accounting for leases that expire prior to the date of initial application. In June 2020, the FASB
issued ASU 2020-05, which defers the effective date of ASC Topic 842, making it effective foryears beginning after December 15, 2021, and interim reporting periods within years beginning
after December 15, 2022. Under the new guidance, lessees are required to recognize leaseassets and liabilities on the statements of financial position for all leases with terms longer
than 12 months, if material. Leases will be classified as either finance or operating, withclassification affecting the pattern of expense recognition in the statements of activities andchanges in net assets.

13

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
NOTES TO FINANCIAL STATEMENTSYEARS ENDED JUNE 30, 2023 (REVIEWED) AND 2022 (AUDITED)NOTE 3 -INVESTMENTS

The Center complies with the provisions of the ASC Topic 820, Fair Value Measurements.
That framework provides a fair value hierarchy that prioritizes the inputs to valuation
techniques used to measure fair value in various levels. Level 1 consists of unadjusted quoted
prices for identical assets or liabilities in active markets that the Center has the ability toaccess.
The following table sets forth by level, within the fair value hierarchy, the Center's assets at fairvalue as of June 30, 2023 and 2022:

Investments, at fair value
Mutual funds:
Blend funds
Fixed income funds
Total

NOTE 4 -2023(Reviewed)(Level 1)

2022(Audited)(Level 1)$ 1,043,774$

874,032

348,028

351,400$ 1,391,802$ 1,225,432

PLEDGES RECEIVABLE

Pledges receivable are recorded at fair value. For pledges receivable that are expected to becollected in future years, fair value is the present value of the estimated future cash flows
discounted using a risk-free rate. At June 30, 2023 and 2022, pledges receivable were due inless than one year.
Pledges receivable consist of the following as of June 30th:

Pledges with donor restrictions

2023(Reviewed)$ 204,798

2022(Audited)$ 177,375

Amounts due in:Less than 1 year$$

204,798

177,375

14

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
NOTES TO FINANCIAL STATEMENTSYEARS ENDED JUNE 30, 2023 (REVIEWED) AND 2022 (AUDITED)NOTE 5 -ADVANCES TO JCIE - JAPANThe Center is an affiliate of Japan Center for International Exchange - Japan ("JCIE - Japan").
The Center advanced funds in the amount of $-0- and $70,000 at June 30, 2023 and 2022,
respectively, to be expended by JCIE - Japan within one year for the Global Think Net
programs.
NOTE 6 -DUE FROM / (TO) JCIE - JAPANThe Center paid for certain program expenses on behalf of their affiliate for joint programs forwhich funding was obtained by the Center. At June 30, 2023, the Center owed the affiliate$73,695 and at June 30, 2022, the affiliate owed the Center $8,250.
During the years ended June 30, 2023 and 2022, the Center contributed $773,381 and$313,424 to JCIE - Japan, respectively. During the years ended June 30, 2023 and 2022, theCenter received $338,819 and $275,892 from JCIE – Japan, respectively, for reimbursementof funds expended by the Center on behalf of JCIE - Japan.
NOTE 7 -PROPERTY AND EQUIPMENT

Major classes of property and equipment consist of the following as of June 30th:

Estimated UsefulLives (Years)
Leasehold improvements
Less: Accumulated depreciation
Property and equipment, net

10

2023
(Reviewed)$ 230,658
103,797$ 126,861

2022(Audited)$ 230,658
80,731$ 149,927

Depreciation expense is included within management and general expenses in the amount of$23,066 and $23,066 for the years ended June 30, 2023 and 2022, respectively.

15

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
NOTES TO FINANCIAL STATEMENTSYEARS ENDED JUNE 30, 2023 (REVIEWED) AND 2022 (AUDITED)NOTE 8 -RESTRICTIONS ON NET ASSETS

Net assets with donor restrictions are subject to donor-imposed stipulations that may or will be
met either by actions of the Center and/or the passage of time. Time restricted net assets withdonor restrictions at June 30, 2023 and 2022, were restricted for use by donors for thefollowing purposes:

2023(Reviewed)
Human Security and Global Cooperation
programs
Global Think Net programs
Legislative Exchange programs
Total

NOTE 9 -$$16,626
192,936
82,541
292,103

2022(Audited)$$

309,373
231,710
94,962
636,045LIQUIDITY AND AVAILABILITY OF FINANCIAL ASSETS

The following reflects the Center's financial assets as of the statements of financial positiondate, reduced by amounts not available for general use because of contractual or donorimposed restrictions within one year of the statement of financial position date:Financial Assets as ofJune 30th
2023
2022(Reviewed)(Audited)
Financial assets at year-end
Less those unavailable for general
expenditures within one year due to:
Donor-imposed restrictions
Financials assets available to meet cash needs
for general expenditures within one year

$ 1,702,682$ 2,122,100

292,103

636,045$ 1,410,579$ 1,486,055

As part of the Center's liquidity management, it invests cash in short-term investments such as
mutual funds.

16

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
NOTES TO FINANCIAL STATEMENTSYEARS ENDED JUNE 30, 2023 (REVIEWED) AND 2022 (AUDITED)NOTE 10 - RISKS AND UNCERTAINTIES
Concentration of Credit Risk
Financial instruments that potentially subject the Center to concentrations of credit risk consist
principally of cash. The Center deposits its cash in major financial institutions, in amounts
which at times exceed the Federal Deposit Insurance Corporation (FDIC) limit. No losses havebeen incurred to date.
NOTE 11 - COMMITMENTS AND CONTINGENCIES
LeasesThe Center conducts its operations from a facility leased under an operating lease expiring on
December 31, 2028. The lease includes an escalation clause for real estate taxes andoperations.
Minimum future annual rental payments under the noncancelable operating lease as of June30, 2023 are as follows:

Years ending June 30th
2024
2025
2026
2027
2028
Thereafter
Total minimum future rental payments

Amount$ 38,068
38,44938,88339,222
39,614
19,905$ 214,141Rent expense for the years ended June 30, 2023 and 2022 amounted to $36,765 and$36,664, respectively.
Tax Returns
The Center files tax returns in jurisdictions it deems appropriate. The returns are subject toaudit by the taxing authorities as long as the statute of limitations remains open.

17

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
NOTES TO FINANCIAL STATEMENTSYEARS ENDED JUNE 30, 2023 (REVIEWED) AND 2022 (AUDITED)NOTE 12 - SUBSEQUENT EVENTSManagement has evaluated subsequent events through February 20, 2024, the date thefinancial statements were available to be issued.

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