JAPAN CENTERFOR
INTERNATIONAL EXCHANGE, INC.
FINANCIAL STATEMENTS
JUNE 30, 2018 AND 2017

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
Table of Contents
June 30, 2018 (Reviewed) and 2017 (Audited)

Page
Independent Accountants' Review Report

1-2

Financial Statements
Statements of Financial Position

3

Statements of Activities

4-5

Statements of Cash Flows6

Notes to Financial Statements

7 - 10

Supplementary Information
Schedule of Functional Expenses - June 30, 201811

Schedule of Functional Expenses - June 30, 2017

12

INDEPENDENT ACCOUNTANTS' REVIEW REPORTTo the Board of Directors
Japan Center for International Exchange, Inc.
We have reviewed the accompanying financial statements of Japan Center for International
Exchange, Inc. (a non-profit organization) which comprise the statement of financial position as ofJune 30, 2018, and the related statements of activities and cash flows for the year then ended, andthe related notes to the financial statements. A review includes primarily applying analyticalprocedures to management’s financial data and making inquiries of Company 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 anopinion.
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
to fraud or error.
Accountants' Responsibility
Our responsibility is to conduct the review engagement in accordance with Statements on Standards
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 bemade 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 our procedures provide a
reasonable basis for our conclusion.
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.

1

Supplementary Information
The supplementary information included on page 11 is presented for purposes of additional analysis
and is not a required part of the basic financial statements. Such information is the responsibility ofmanagement. We have not audited or reviewed such information and we do not express an opinion,a conclusion, nor provide any assurance on it.
Report on 2017 Financial StatementsThe financial statements of Japan Center for International Exchange, Inc. as of June 30, 2017 wereaudited by other auditors who have merged with LM Cohen & Company, and whose report
dated June 7, 2018, stated that, based on their audit, the financial statements present fairly, in allmaterial respects, the financial statements of Japan Center for International Exchange, Inc. as ofJune 30, 2017, and the changes in its net assets and cash flows for the year then ended, inaccordance with accounting principles generally accepted in the United States of America.

L.M. Cohen & Co.
New York, New YorkMay 6, 20192

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
Statements of Financial Position
June 30, 2018 and 20172018
(Reviewed)
ASSETS
Cash
Investments, at fair value
Pledges receivable
Advances to JCIE - Japan
Prepaid expenses
Due from JCIE - Japan
Security deposits
Total assets

2017(Audited)$

144,145
1,148,948
521,680
76,622
9,864
14,95428,437$120,204
1,120,797
961,054
62,4182,294
46,76628,437$

1,944,650$

2,341,970$

14,022$

1,679

LIABILITIES AND NET ASSETS
Liabilities
Accrued expenses and other current liabilities
Commitments
Net Assets
Unrestricted
Temporarily restricted
Total net assets
Total liabilities and net assets

1,124,711
805,917
1,930,628$

1,944,650

1,078,445
1,261,846
2,340,291$

2,341,970

See independent accountants' review report and accompanying notes to financial statements.

3

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
Statements of Activities
For the Years Ended June 30, 2018 and 20172018
(Reviewed)
Unrestricted net assets
Revenues
Contributions
Interest and dividend income
Realized and unrealized gains on investments
Other income
Total revenues$

153,907
23,51381,587
2,553
261,560

2017(Audited)$568,885
23,387
104,833
655
697,760

Net assets released from restrictions
Satisfaction from program restrictions

621,572

575,739

Total unrestricted revenues

883,132

1,273,499

422,472
128,756
136,142
101,335
14,302803,007905,168
61,17821,875
156,104
13,265
1,157,590

Supporting services
Management and general

33,85961,143

Total expenses

836,866

1,218,733

46,26654,766

Expenses
Program services
Human Security and Global Cooperation
Global Think Net
Civil Net and Grass Roots
Political Leadership Exchange
Earthquake Relief and Recovery
Total program services

Increase in unrestricted net assets

See independent accountants' review report and accompanying notes to financial statements.

4

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
Statements of Activities (continued)
For the Years Ended June 30, 2018 and 20172018
(Reviewed)

2017(Audited)$165,643(621,572)(455,929)$ 1,245,223(575,739)
669,484(Decrease) increase in net assets(409,663)

724,250

Net assets - beginning

2,340,291

1,616,041

Temporarily restricted net assets
Contributions
Net assets released from restrictions(Decrease) increase in temporarily restricted net assets

Net assets - ending$

1,930,628$

2,340,291

See independent accountants' review report and accompanying notes to financial statements.

5

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
Statements of Cash Flows
For the Years Ended June 30, 2018 and 20172018
(Reviewed)
Cash flows from operating activities(Decrease) increase in net assets
Adjustments to reconcile (decrease) increase in netassets to net cash used in operating activities:
Realized and unrealized gains on investments
Changes in operating assets:
Decrease (increase) in pledges receivable(Increase) decrease in advances to JCIE - Japan(Increase) decrease in prepaid expenses
Decrease (increase) in due from JCIE - Japan
Increase (decrease) in accrued expenses andother current liabilities
Total adjustments
Net cash used in operating activities$(409,663)

2017(Audited)$

724,250(81,587)(104,833)

439,374(14,204)(7,570)31,812(961,054)
109,131
10,855(26,805)

12,343
380,168(29,495)(2,891)(975,597)(251,347)(129,510)
182,946
53,436

129,768
129,768

Net increase (decrease) in cash

23,941(121,579)

Cash - beginning

120,204

241,783

Cash flows from investing activities
Purchase of investments
Proceeds from sale of investments
Net cash provided by investing activities

Cash - ending$144,145$

See independent accountants' review report and accompanying notes to financial statements.

120,204

6

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
Notes to Financial Statements
June 30, 2018 (Reviewed) and 2017 (Audited)
Note 1 - Nature of Organization and Summary of Significant Accounting Policies
Nature of Organization
Japan Center for International Exchange, Inc. ("Center") was incorporated in June 1976 as a nonprofit corporation chartered by the State of New York. The Center was created for the purpose ofpromoting, enhancing and contributing to the advancement of world peace, international
cooperation and mutual understanding between Japan and the United States in political, social,cultural and other areas. The Center is an affiliate of Japan Center for International Exchange Japan ("JCIE - Japan"). During the years ended June 30, 2018 and 2017, the Center contributed$386,305 and $687,011 to JCIE - Japan, respectively. During the years ended June 30, 2018 and2017, the Center received $215,577 and $121,481 from JCIE - Japan for reimbursement of funds
expended by the Center on behalf of JCIE - Japan.
Basis of Presentation
The Center follows the requirements of the Not-for-Profit Entities, Presentation of Financial
Statements Topic of the FASB Accounting Standards Codification. Under this Topic, the Centeris required to report information regarding its financial position and activities according to threeclasses of net assets, unrestricted net assets, temporarily restricted net assets and permanentlyrestricted net assets.
Investment Valuation and Income Recognition
Investments in mutual funds are valued at the net asset value of the shares held by the Center at
year-end and are reported at their fair values in the statements of financial position. Unrealized
gains and losses are included in the statements of activities. Interest income is reported on theaccrual basis. Dividends are recorded on the ex-dividend date. Investment income and gains
restricted by a donor are reported as increases in unrestricted net assets if the restrictions are met(either by passage of time or by use) in the reporting period in which the income and gains arerecognized.
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 as increases
in unrestricted net assets if the restrictions are met in the fiscal year in which the contributions arerecognized. All other donor-restricted contributions are reported as increases in temporarily or
permanently restricted net assets depending on the nature of the restrictions. When a restriction
expires, temporarily restricted net assets are reclassified to unrestricted net assets.

7

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
Notes to Financial Statements
June 30, 2018 (Reviewed) and 2017 (Audited)
Note 1 - Nature of Organization and Summary of Significant Accounting Policies (continued)
Property and Equipment
Property and equipment are stated at cost. Depreciation and amortization are provided by straightline methods at rates calculated to amortize the cost of property and equipment over theirestimated useful life. Maintenance and repairs are charged to expenses while major replacements
are capitalized. The cost of equipment, retired or disposed of, and the related depreciation areeliminated from the accounts, with the resulting gains or losses included in operations.

Concentration of Credit Risk
Financial instruments that potentially subject the Center to credit risk consist principally of cash
in financial institutions which, from time to time, exceeds the Federal Deposit Insurance
Corporation limit.
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 Tax Status
The Center is exempt from Federal and State income taxes under Section 501 (c)(3) of the U.S.
Internal Revenue Code. Accordingly, no provision for income taxes has been made in thefinancial statements.
The Center evaluates the effect of uncertain tax positions, if any, and provides for those positionsin accordance with the provisions of ASC 450, Contingencies.
Subsequent Events
Management has evaluated subsequent events through May 6, 2019, the date the financial
statements were available to be issued.

8

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
Notes to Financial Statements
June 30, 2018 (Reviewed) and 2017 (Audited)
Note 2 - Investments, at Fair Value
The Center complies with the provisions of the Financial Accounting Standards Board (FASB)
Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures. Thatframework 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 identicalassets or liabilities in active markets that the Center has the ability to access.
The following table sets forth by level, within the fair value hierarchy, the Center's assets at fairvalue as of June 30, 2018 and 2017:
Assets at Fair Value as ofJune 30,2018
2017(Level 1)(Level 1)
Mutual funds:
Blend funds
Fixed income funds
Total mutual funds:$833,996
314,952$ 1,148,948$832,626
288,171$ 1,120,797

Note 3 - Pledges Receivable
Pledges receivable are recorded at their net realizable value. For pledges receivable that areexpected to be collected in future years, net realizable value is the present value of the estimatedfuture cash flows discounted using a risk free rate of 4.25% as of June 30, 2017. At June 30,
2018, pledges receivable were due in less than one year.
Pledges receivable consist of the following:
2018
Amounts due in:Less than 1 year
1 to 2 years$

Present value discount$521,680
521,680
521,680

2017$

525,000
500,0001,025,000(63,946)$ 961,054

Note 4 - Advances to JCIE - JapanThe Center advanced funds in the amount of $76,622 and $62,418 at June 30, 2018 and 2017,
respectively to be expended by JCIE - Japan within one year for the Human Security and Global
Cooperation, Civil Net and Grass Roots, and Global Think Net programs.

9

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
Notes to Financial Statements
June 30, 2018 (Reviewed) and 2017 (Audited)
Note 5 - Due from JCIE - JapanThe Center paid for certain program expenses on the behalf of their affiliate for joint programs forwhich funding was obtained by the Center. At June 30, 2018 and 2017, the affiliate owed theCenter $14,954 and $46,766, respectively.
Note 6 - Temporarily Restricted Net Assets
Temporarily restricted net assets 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 temporarily restricted net assets at June 30, 2018 and 2017, were restricted for use
by donors for the following purposes:
2018
Human Security and Global Cooperation
programs
Global Think Net programs
Civil Net and Grass Roots programs
Political Leadership Exchange programs$$704,220
12,48678,911
10,300805,9172017$ 1,076,420
73,627
106,396
5,403$ 1,261,846

Note 7 - Commitments
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 and operations.
Minimum future annual rental payments under the noncancelable operating lease as of June 30,2018 are as follows:Years ending June 30,
2019
2020
2021
2022
2023
ThereafterTotal minimum future rental paymentsAmount$
63,10836,78037,14737,51937,894215,243$427,691

Rent expense for the years ended June 30, 2018 and 2017 amounted to $75,511 and $67,278,
respectively.

10SUPPLEMENTARY INFORMATIONJAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
Schedule of Functional Expenses
For the Year Ended June 30, 2018 (Reviewed)

SupportingServices

Program Services

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

Human Security
and Global
Cooperation

GlobalThink Net$$207,247
39,164
2,263
557
11,28019,92327,486
5,116

29,677
13,761
665
260
3,360
22,52424,894
1,548

Civil Net andGrass Roots

Political
Leadership
Exchange

Earthquake
Relief andRecovery

Total
ProgramServicesManagementandGeneral

$

$

$

2,000
3,932
190
74
960
3,354
3,350
442

$ 277,040
87,3284,591
1,467
23,040137,494
90,785
10,534$

29,416
11,795
570
223
2,880
21,612
14,1531,327

8,700
18,676
903
353
4,560
70,081
20,902
2,101

Total
Expenses

27,117
3,932
190
74960
649
495
442

$ 304,157
91,2604,781
1,541
24,000138,143
91,28010,976

Total before JCIE - Japan contributions

313,036

96,68981,976126,276

14,302

632,279

33,859666,138

Contributions (outlay) to JCIE - Japan

109,436

32,06754,166(24,941)-170,728-170,728

422,472$ 128,756

136,142$ 101,335

14,302$ 803,007

33,859$ 836,866

Total

$$$

$

See independent accountants' review report.
11

JAPAN CENTER FOR INTERNATIONAL EXCHANGE, INC.
Schedule of Functional Expenses
For the Year Ended June 30, 2017 (Audited)

SupportingServices

Program Services

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

Human Security
and GlobalCooperation

GlobalThink Net

Civil Net andGrass Roots

Political
Leadership
Exchange

Earthquake
Relief andRecovery

Total
ProgramServicesManagementandGeneral

$

$

$

$

$

$

$

236,333
50,418
1,647
480
9,120
34,25929,767
16,25446,015
8,663
350
94
1,920
20,992
3,433
3,422

3,880
4,332
175
47
960
4,349
4,301
1,711

14,842
8,663
350
94
1,920
41,781
11,071
3,422

4,500
5,775
234
63
1,280
2,528
1,798
2,281

305,570
77,851
2,756
778
15,200103,90950,37027,09061,683
3,610
146
39
800
832
1,144
1,425

Total
Expenses$367,253
81,461
2,902
817
16,000104,741
51,51428,515

Total before JCIE - Japan contributions

378,278

84,88919,75582,14318,459583,524

69,679653,203

Contributions (outlay) to JCIE - Japan

526,890(23,711)2,120

73,961(5,194)574,066(8,536)565,530

13,265$ 1,157,590

61,143$ 1,218,733

Total$905,168$

61,178$21,875$

156,104$$

See independent accountants' review report.
12

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