The American-Scandinavian Foundation

Independent Auditor’s Report and Financial Statements

June 30, 2020 and 2019
 The American-Scandinavian Foundation
June 30, 2020 and 2019

Contents

Independent Auditor’s Report............................................................................................... 1

Financial Statements
Statements of Financial Position ........................................................................................................ 3
Statements of Activities ...................................................................................................................... 4
Statements of Functional Expenses .................................................................................................... 6
Statements of Cash Flows .................................................................................................................. 8
Notes to Financial Statements ............................................................................................................ 9
 Independent Auditor’s Report

Board of Trustees
The American-Scandinavian Foundation
New York, New York

We have audited the accompanying financial statements of The American-Scandinavian Foundation,

which comprise the statements of financial position as of June 30, 2020 and 2019, and the related
statements of activities, functional expenses and cash flows for the years then ended, and the related
notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this
includes 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.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s 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 auditor considers 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 the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall 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.
Board of Trustees
The American-Scandinavian Foundation
Page 2

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of The American-Scandinavian Foundation as of June 30, 2020 and 2019, and the
changes in its net assets and its cash flows for the years then ended in accordance with accounting
principles generally accepted in the United States of America.

New York, New York

May 10, 2021
 The American-Scandinavian Foundation
Statements of Financial Position
June 30, 2020 and 2019

2020 2019

Assets

Cash and cash equivalents $ 1,220,746 $ 630,713

Investments 32,650,361 34,205,823
Accounts receivable 153,201 242,720
Receivable from King Street Capital L.P. 80,272 937,881
Contribution receivable 750,000 -
Inventory 113,304 176,257
Prepaid expenses 289,818 138,920
Property and equipment 13,809,520 14,249,664

Total assets $ 49,067,222 $ 50,581,978

Liabilities and Net Assets

Liabilities
Accounts payable and accrued expenses $ 287,493 $ 249,271
Deferred revenues 262,076 40,146
Grants payable 942,493 742,502

Total liabilities 1,492,062 1,031,919

Net Assets
Without donor restrictions
Operating 645,429 1,156,844
Board designated 5,204,668 5,738,832
Plant fund 13,809,520 14,249,664

Total without donor restrictions 19,659,617 21,145,340

With donor restrictions 27,915,543 28,404,719

Total net assets 47,575,160 49,550,059

Total liabilities and net assets $ 49,067,222 $ 50,581,978

See Notes to Financial Statements 3

 The American-Scandinavian Foundation
Statements of Activities
Years Ended June 30, 2020 and 2019

2020 2019
Without With Donor Without With Donor
Restrictions Restrictions Total Restrictions Restrictions Total

Revenues, Gains and Other Support

Contributions $ 1,001,842 $ 2,088,170 $ 3,090,012 $ 609,201 $ 947,171 $ 1,556,372

Special event - - - 308,775 - 308,775

Less direct costs of special event - - - (76,946) - (76,946)

Total special event - - - 231,829 - 231,829

Membership dues 215,088 - 215,088 234,519 - 234,519

Net investment return designated for current operations 398,524 1,030,898 1,429,422 397,817 1,017,911 1,415,728
Exchange program fees 89,180 - 89,180 107,910 - 107,910
Advertising and publishing 3,271 - 3,271 10,455 - 10,455
Ancillary service fees 577,251 - 577,251 817,930 - 817,930

Gift shop 386,148 - 386,148 496,642 - 496,642

Less direct costs of goods sold (211,770) - (211,770) (261,652) - (261,652)

Total gift shop 174,378 - 174,378 234,990 - 234,990

Program fees 63,314 - 63,314 90,409 - 90,409

Net assets released from restrictions 1,505,803 (1,505,803) - 1,728,718 (1,728,718) -

Total revenues, gains and other support 4,028,651 1,613,265 5,641,916 4,463,778 236,364 4,700,142

Expenses
Program services
Training and fellowship programs 1,283,785 - 1,283,785 1,337,288 - 1,337,288
Membership 129,958 - 129,958 122,665 - 122,665
Public programs 1,914,147 - 1,914,147 2,072,967 - 2,072,967
Publications 108,639 - 108,639 104,293 - 104,293

Total program services 3,436,529 - 3,436,529 3,637,213 - 3,637,213

See Notes to Financial Statements 4

 The American-Scandinavian Foundation
Statements of Activities (Continued)
Years Ended June 30, 2020 and 2019

2020 2019
Without With Donor Without With Donor
Restrictions Restrictions Total Restrictions Restrictions Total

Expenses
Supporting services
Management and general $ 549,219 $ - $ 549,219 $ 609,121 $ - $ 609,121
Fundraising 229,055 - 229,055 216,489 - 216,489

Total supporting services 778,274 - 778,274 825,610 - 825,610

Total operating expenses 4,214,803 - 4,214,803 4,462,823 - 4,462,823

Operating Income (186,152) 1,613,265 1,427,113 955 236,364 237,319

Other Income (Expense)

Net investment return (loss) in excess of amounts
designated for current operations (859,423) (2,223,152) (3,082,575) 3,451 8,830 12,281
Contributions for long-term investment - 211,125 211,125 - 1,176,003 1,176,003
Depreciation expense (530,562) - (530,562) (560,339) - (560,339)
Net assets released for property and equipment
acquisitions 90,414 (90,414) - 141,523 (141,523) -

Total other income (expense) (1,299,571) (2,102,441) (3,402,012) (415,365) 1,043,310 627,945

Change in Net Assets (1,485,723) (489,176) (1,974,899) (414,410) 1,279,674 865,264

Net Assets, Beginning of Year 21,145,340 28,404,719 49,550,059 21,559,750 27,125,045 48,684,795

Net Assets, End of Year $ 19,659,617 $ 27,915,543 $ 47,575,160 $ 21,145,340 $ 28,404,719 $ 49,550,059

See Notes to Financial Statements 5

 The American-Scandinavian Foundation
Statements of Functional Expenses
Years Ended June 30, 2020 and 2019

2020
Program Services Supporting Services
Training
and Total Management Total
Fellowship Public Program and Supporting
Programs Membership Programs Publications Services General Fundraising Services Total

Expenses
Salaries $ 136,775 $ 67,734 $ 1,026,646 $ 4,031 $ 1,235,186 $ 300,301 $ 89,392 $ 389,693 $ 1,624,879
Payroll taxes and employee benefits 51,660 9,060 286,307 1,126 348,153 91,041 37,363 128,404 476,557

Total personnel costs 188,435 76,794 1,312,953 5,157 1,583,339 391,342 126,755 518,097 2,101,436

Fellowships and grants 1,033,440 - - - 1,033,440 - - - 1,033,440

Honoraria 3,600 - 520 - 4,120 - - - 4,120
Advertising - - 3,182 - 3,182 - - - 3,182
Office supplies 1,046 17,028 17,781 - 35,855 3,444 2,710 6,154 42,009
Printing and duplicating 391 15,713 22,857 23,997 62,958 1,719 2,677 4,396 67,354
Computer maintenance 2,242 341 28,277 341 31,201 6,153 2,819 8,972 40,173
Dues and subscriptions 2,652 - 839 - 3,491 133 - 133 3,624
Telephone and internet provider 999 400 30,367 400 32,166 6,072 1,798 7,870 40,036
Postage and shipping 2,343 6,184 8,718 12,049 29,294 2,984 293 3,277 32,571
Building insurance 1,699 679 51,638 679 54,695 10,192 3,058 13,250 67,945
Officers' insurance - - - - - 11,602 - 11,602 11,602
Professional fees 11,514 5,890 68,234 61,993 147,631 45,441 70,113 115,554 263,185
Travel and representation 18,790 102 27,138 - 46,030 2,168 690 2,858 48,888
Receptions and meetings 6,697 2,804 16,485 - 25,986 7,634 42 7,676 33,662
Bank processing and filing fees 273 157 31,375 157 31,962 2,351 705 3,056 35,018
Depreciation 13,264 5,306 403,227 5,306 427,103 79,584 23,875 103,459 530,562
Occupancy expense 9,664 3,866 293,783 3,866 311,179 57,984 17,395 75,379 386,558
Cost of goods sold - - 211,770 - 211,770 - - - 211,770

Total expenses 1,297,049 135,264 2,529,144 113,945 4,075,402 628,803 252,930 881,733 4,957,135

Less nonoperating expenses and expenses deducted

from revenues on the statement of activities
Depreciation (13,264) (5,306) (403,227) (5,306) (427,103) (79,584) (23,875) (103,459) (530,562)
Costs of goods sold - - (211,770) - (211,770) - - - (211,770)

Total operating expenses as reported by

function on the statement of activities $ 1,283,785 $ 129,958 $ 1,914,147 $ 108,639 $ 3,436,529 $ 549,219 $ 229,055 $ 778,274 $ 4,214,803

See Notes to Financial Statements 6

 The American-Scandinavian Foundation
Statements of Functional Expenses (Continued)
Years Ended June 30, 2020 and 2019

2019
Program Services Supporting Services
Training
and Total Management Total
Fellowship Public Program and Special Supporting
Programs Membership Programs Publications Services General Fundraising Events Services Total

Expenses
Salaries $ 133,497 $ 58,917 $ 1,085,025 $ 4,159 $ 1,281,598 $ 327,290 $ 83,107 $ - $ 410,397 $ 1,691,995
Payroll taxes and employee benefits 25,221 7,915 243,432 848 277,416 94,155 32,785 - 126,940 404,356

Total personnel costs 158,718 66,832 1,328,457 5,007 1,559,014 421,445 115,892 - 537,337 2,096,351

Fellowships and grants 1,103,644 - - - 1,103,644 - - - - 1,103,644

Honoraria 4,500 - 14,800 - 19,300 - - - - 19,300
Advertising - - 6,858 - 6,858 - 226 - 226 7,084
Office supplies 91 593 22,965 - 23,649 5,212 654 - 5,866 29,515
Printing and duplicating 311 24,718 21,491 24,377 70,897 3,238 11,066 - 14,304 85,201
Computer maintenance 2,437 787 37,101 460 40,785 6,902 13,803 - 20,705 61,490
Dues and subscriptions 2,600 - 1,098 - 3,698 38 - - 38 3,736
Telephone and internet provider 1,451 392 29,761 392 31,996 5,874 1,762 - 7,636 39,632
Postage and shipping 3,553 11,466 27,867 7,289 50,175 3,037 6,933 - 9,970 60,145
Building insurance 1,607 643 48,843 643 51,736 9,640 2,892 - 12,532 64,268
Officers' insurance - - - - - 11,600 - - 11,600 11,600
Professional fees 16,311 9,216 90,897 61,502 177,926 48,266 40,922 - 89,188 267,114
Travel and representation 26,897 605 30,298 - 57,800 11,003 1,466 - 12,469 70,269
Receptions and meetings 2,784 2,790 36,349 - 41,923 13,513 67 - 13,580 55,503
Bank processing and filing fees 1,274 179 38,430 179 40,062 2,692 808 - 3,500 43,562
Event catering - - - - - - - 76,946 76,946 76,946
Depreciation 14,008 5,603 425,859 5,603 451,073 84,051 25,215 - 109,266 560,339
Occupancy expense 11,110 4,444 337,751 4,444 357,749 66,661 19,998 - 86,659 444,408
Cost of goods sold - - 261,652 - 261,652 - - - - 261,652

Total expenses 1,351,296 128,268 2,760,477 109,896 4,349,937 693,172 241,704 76,946 1,011,822 5,361,759

Less nonoperating expenses and expenses deducted

from revenues on the statement of activities
Direct expenses of special events - - - - - - - (76,946) (76,946) (76,946)
Depreciation (14,008) (5,603) (425,858) (5,603) (451,072) (84,051) (25,215) - (109,266) (560,338)
Costs of goods sold - - (261,652) - (261,652) - - - - (261,652)

Total operating expenses as reported by

function on the statement of activities $ 1,337,288 $ 122,665 $ 2,072,967 $ 104,293 $ 3,637,213 $ 609,121 $ 216,489 $ - $ 825,610 $ 4,462,823

See Notes to Financial Statements 7

 The American-Scandinavian Foundation
Statements of Cash Flows
Years Ended June 30, 2020 and 2019

2020 2019

Operating Activities
Change in net assets $ (1,974,899) $ 865,264
Items not requiring (providing) operating cash flows
Depreciation 530,562 560,339
Contributions for long-term investments (211,125) (1,176,003)
Realized and unrealized gains on investments 2,730,246 (620,640)
Changes in
Accounts receivable 89,519 (75,122)
Receivable from King Street Capital L.P. - -
Contribution receivable (750,000) -
Inventory 62,953 (10,360)
Prepaid expenses (150,898) (53,264)
Accounts payable and accrued expenses 38,222 (10,104)
Deferred revenues 221,930 (11,722)
Grants payable 199,991 (21,475)

Net cash provided by (used in) operating activities 786,501 (553,087)

Investing Activities
Purchases of property and equipment (90,418) (141,380)
Purchases of investments (35,991,454) (2,468,824)
Proceeds from sales of investments 35,674,279 1,956,495

Net cash used in investing activities (407,593) (653,709)

Financing Activities
Proceeds from contributions restricted for long-term investment 211,125 1,176,003

Net cash provided by financing activities 211,125 1,176,003

Increase (Decrease) in Cash and Cash Equivalents 590,033 (30,793)

Cash and Cash Equivalents, Beginning of Year 630,713 661,506

Cash and Cash Equivalents, End of Year $ 1,220,746 $ 630,713

Supplemental Cash Flows Information

Receivable from King Street Capital L.P. $ 80,272 $ 937,881

See Notes to Financial Statements 8

 The American-Scandinavian Foundation
Notes to Financial Statements
June 30, 2020 and 2019

Note 1: Nature of Operations and Summary of Significant Accounting Policies

Nature of Operations

The American-Scandinavian Foundation (the Foundation) is a publicly supported, nonprofit

organization exempt from income tax under Section 501(c)(3) of the Internal Revenue Code.
However, the Foundation is subject to federal income tax on any unrelated business taxable
income. The Foundation promotes international understanding through educational and cultural
exchanges between the United States and the Scandinavian countries of Denmark, Finland, Iceland,
Norway and Sweden. The Foundation carries on an extensive program of fellowships, grants,
trainee internships, publishing, membership offerings and cultural activities. Headquartered in its
Scandinavia House, located in New York City, the Foundation has associate members and
subscribers worldwide and more than 30,000 alumni of its exchange programs in Scandinavia and
the United States.
The Foundation’s revenues primarily consist of contributions, investment income, ancillary fees
and income from special events.

Basis of Presentation

The financial statements have been prepared on the accrual basis of accounting.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally

accepted in the United States of America (GAAP) requires management to make estimates and
assumptions 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,
expenses gains, losses and other changes in net assets during the reporting period. Actual results
could differ from those estimates.

Cash and Cash Equivalents

The Foundation considers all liquid investments with original maturities of three months or less to
be cash equivalents. At June 30, 2020 and 2019, cash equivalents consisted of money market
accounts with brokers.
At June 30, 2020, the Foundation’s cash accounts exceeded federally insured limits by
approximately $992,000.

Investments and Net Investment Return

Investments in securities having a readily determinable fair value are carried at fair value. Other
investments are valued at the lower of cost (or fair value at time of donation, if acquired by
contribution) or fair value. Investments in limited partnerships are recorded at net asset value
(NAV), as a practical expedient.

9
 The American-Scandinavian Foundation
Notes to Financial Statements
June 30, 2020 and 2019

Uninvested cash and cash equivalents included in investment accounts, including endowment
accounts and assets limited as to use, are not considered to be cash and cash equivalents.
Investment return includes dividend, interest and other investment income; realized and unrealized
gains and losses on investments carried at fair value; and realized gains and losses on other
investments, less external and direct internal investment expenses.
Investment return that is initially restricted by donor stipulation and for which the restriction will
be satisfied in the same year is included in net assets without donor restrictions. Other investment
return is reflected in the statements of activities with or without donor restrictions based upon the
existence and nature of any donor or legally imposed restrictions.
The Foundation’s Board of Trustees (the Board) designates only a portion of the Foundation’s
cumulative investment return for support of current operations; the remainder is retained to support
operations of future years and to offset potential market declines. The amount computed under the
Foundation’s spending policy (see Note 5) is used to support current operations.

Accounts Receivable

Accounts receivable are recorded based on agreed upon rates for ancillary service fees or
unconditional promises to give. Interest is not accrued on outstanding receivables.
Management determines whether an allowance for uncollectible accounts should be provided for
contributions receivable. Such estimates are based on management’s assessment of the aged basis
of its contributions and other sources, current economic conditions, subsequent receipts and
historical information. Delinquent receivables and unconditional promises are written off against
the allowance for doubtful accounts when all reasonable collection efforts have been exhausted.

Property and Equipment

Property and equipment acquisitions over $500 are capitalized and stated at cost less accumulated
depreciation. Depreciation is charged to expense using the straight-line method over the estimated
useful life of each asset. Assets are depreciated over the shorter of the lease term or their
respective estimated useful lives.
The estimated useful lives for each major depreciable classification of property and equipment are
as follows:
Building and building improvements 30-40 years
Furniture and equipment 5-10 years
Long-Lived Asset Impairment

The Foundation evaluates the recoverability of the carrying value of long-lived assets whenever
events or circumstances indicate the carrying amount may not be recoverable. If a long-lived asset
is tested for recoverability and the undiscounted estimated future cash flows expected to result
from the use and eventual disposition of the asset is less than the carrying amount of the asset, the
asset cost is adjusted to fair value and an impairment loss is recognized as the amount by which the
carrying amount of a long-lived asset exceeds its fair value.

10
 The American-Scandinavian Foundation
Notes to Financial Statements
June 30, 2020 and 2019

No asset impairment was recognized during the years ended June 30, 2020 and 2019.

Net Assets

Net assets, revenues, gains and losses are classified based on the existence or absence of donor
restrictions.
Net assets without donor restrictions are available for use in general operations and not subject to
donor restrictions. The governing board has designated, from net assets without donor restrictions,
net assets for an operating reserve, as well as amounts to be used at the discretion of board
specifically for fellowships, grants and program support.
Net assets with donor restrictions are subject to donor restrictions. Some restrictions are temporary
in nature, such as those that will be met by the passage of time or other events specified by the
donor. Other restrictions are perpetual in nature, where the donor stipulates that resources be
maintained in perpetuity.

Contributions

Contributions are provided to the Foundation either with or without restrictions placed on the gift
by the donor. Revenues and net assets are separately reported to reflect the nature of those gifts –
with or without donor restrictions. The value recorded for each contribution is recognized as
follows:
Nature of the Gift Value Recognized

Conditional gifts, with or without restriction

Gifts that depend on the Foundation Not recognized until the gift becomes
overcoming a donor-imposed barrier to be unconditional, i.e., the donor-imposed barrier
entitled to the funds is met
Unconditional gifts, with or without
restriction
Received at date of gift – cash and other Fair value
assets
Received at date of gift – property, Estimated fair value
equipment and long-lived assets
Expected to be collected within one year Net realizable value
Collected in future years Initially reported at fair value determined
using the discounted present value of
estimated future cash flows technique
In addition to the amount initially recognized, revenue for unconditional gifts to be collected in
future years is also recognized each year as the present-value discount is amortized using the level-
yield method.

11
 The American-Scandinavian Foundation
Notes to Financial Statements
June 30, 2020 and 2019

When a donor stipulated time restriction ends or purpose restriction is accomplished, net assets
with donor restrictions are reclassified to net assets without donor restrictions and reported in the
statements of activities as net assets released from restrictions. Absent explicit donor stipulations
for the period of time that long-lived assets must be held, expirations of restrictions for gifts of
land, buildings, equipment and other long-lived assets are reported when those assets are placed in
service.
Gifts and investment income having donor stipulations which are satisfied in the period the gift is
received are recorded as revenue and net assets without donor restrictions. Conditional
contributions having donor stipulations which are satisfied in the period the gift is received are
recorded as revenue and net assets without donor restrictions.

Inventory

Inventory consists of items held in the gift shop. Costs are determined using the first-in, first-out
method. Inventory is stated at the lower of cost or net realizable value.

Grants Payable

Grants payable represent amounts approved for grants that are to be paid in future periods. Grants
payable are generally paid within 1 to 2 years.

Deferred Revenue

Revenue from fees received for exchange program activities and ancillary services are deferred and
recognized over the periods to which the fees relate. Deferred revenues are generally earned within
one year.

Functional Allocation of Expenses

The costs of supporting the various programs and other activities have been summarized on a
functional basis in the statements of activities. Certain costs have been allocated among the
program, management and general and fundraising categories based on the program and supporting
services benefited. For the special event, direct expenses in the amounts of $0 and $76,946 as of
June 30, 2020 and 2019, respectively, are reflected on the financial statements as a reduction of the
revenues. All other costs associated with the event are reflected in the fundraising column in the
statements of functional expenses.

Measure of Operations

The measure of operations includes all revenues and expenses relating to programs services and
services supporting operations of the Foundation. Net investment return in excess of amounts
designated for current operations, nonoperating expenses, contributions for long-term investment
and depreciation expense, as well as net assets released from restrictions for property and
equipment acquisitions, are excluded from the measure of operations.

12
 The American-Scandinavian Foundation
Notes to Financial Statements
June 30, 2020 and 2019

Paycheck Protection Program (PPP) Loan

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic
Security (CARES) Act. On May 3, 2020, the Foundation received a loan in the amount of
$441,500 pursuant to the Paycheck Protection Program (PPP) and has elected to account for the
funding as a conditional contribution by applying Accounting Standards Codification (ASC) Topic
958-605, Revenue Recognition. Revenue is recognized when conditions are met, which include
meeting FTE and salary reduction requirements and incurring eligible expenditures. PPP loans are
subject to audit and acceptance by the U.S. Department of Treasury, Small Business
Administration, or lender; as a result of such audit, adjustments could be required to the recognition
of revenue.
During the year ended June 30, 2020, the Foundation recognized approximately $232,000 of the
proceeds as a contribution without donor restrictions since the Foundation utilized the proceeds for
eligible expenditures stipulated under the PPP loan program and met the conditions in accordance
with the loan forgiveness criteria. The Foundation expects to recognize the remaining amount of
the contribution during the year ended June 30, 2021 once the conditions are met by incurring
eligible expenditures.
Subsequent to year-end on February 24, 2021, the Foundation received a second loan in the amount
of $441,500 pursuant to the PPP. The Foundation has elected to account for the funding as a
conditional contribution in the same manner as the initial funding received under the PPP.

Note 2: Changes in Accounting Principles

ASU 2018-08, Not-For-Profit Entities (Topic 958): Clarifying the Scope and the
Accounting Guidance for Contributions Received and Contributions Made

On July 1, 2019, the American-Scandinavian Foundation adopted Accounting Standards Update

(ASU) No. 2018-08, Not-For-Profit Entities (Topic 958): Clarifying the Scope and the Accounting
Guidance for Contributions Received and Contributions Made, which clarifies existing guidance
on determining whether a transaction with a resource provider, e.g., the receipt of funds under a
government grant or contract, is a contribution or an exchange transaction. The guidance required
all organizations to evaluate whether the resource provider is receiving commensurate value in a
transfer of assets transaction, and whether contributions are conditional or unconditional. If
commensurate value is received by the resource provider, the transaction would be accounted for as
an exchange transaction by applying Topic 606, Revenue from Contracts with Customers, or other
topics. The standard clarifies that a resource provider is not synonymous with the general public.
Indirect benefit received by the public as a result of the assets transferred is not equivalent to
commensurate value received by the resource provider. If commensurate value is not received by
the resource provider, i.e., the transaction is nonexchange, the recipient organization would record
the transaction as a contribution under Topic 958 and determine whether the contribution is
conditional or unconditional.
As a result of adopting ASU 2018-08, there was no change in timing of recognition of grants and
contributions and had no impact on beginning net assets for the year ended June 30, 2020.

13
 The American-Scandinavian Foundation
Notes to Financial Statements
June 30, 2020 and 2019

Note 3: Investments and Disclosures About Fair Value of Assets

Fair value is the price that would be received to sell an asset in an orderly transaction between
market participants at the measurement date. Fair value measurements must maximize the use of
observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels
of inputs that may be used to measure fair value:
Level 1 Quoted prices in active markets for identical assets or liabilities
Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets
or liabilities; quoted prices in markets that are not active; or other inputs that are
observable or can be corroborated by observable market data for substantially the
full term of the assets or liabilities
Level 3 Unobservable inputs supported by little or no market activity and are significant to
the fair value of the assets or liabilities

Recurring Measurements

The following tables present the fair value measurements of assets recognized in the accompanying
statements of financial position measured at fair value on a recurring basis and the level within the
fair value hierarchy in which the fair value measurements fall at June 30, 2020 and 2019:
2020
Fair Value
Measurements
Using Quoted
Prices in Active
Markets for Investments
Identical Assets Measured
Total (A) (Level 1) at NAV (A)

Money Market Funds $ 27,975 $ 27,975 $ -

Vanguard Money Market Funds
Total Return Fund 284,969 284,969 -
Federal Money Market Fund 8,892,440 8,892,440 -
Total Bond Market Index Fund 2,409,097 2,409,097 -
International Value Fund 1,597,300 1,597,300 -
Intermediate-Term Investment Grade Fund Admiral Shares 714,240 714,240 -
International Growth Fund Admiral Shares 1,609,178 1,609,178 -
Long-Term Investment-Grade Fund Admiral Shares 613,390 613,390 -
PRIMECAP Fund Admiral Shares 2,422,604 2,422,604 -
Short-Term Investment-Grade Fund Admiral Shares 1,082,995 1,082,995 -
Total International Bond Index Fund Admiral Shares 2,057,082 2,057,082 -
Total International Stock Index Fund Admiral Shares 3,197,999 3,197,999 -
Total Stock Market Index Fund Admiral Shares 4,850,067 4,850,067 -
Windsor Fund Admiral Shares 2,418,950 2,418,950 -
Equity securities
Energy 716 716 -
King Street Capital L.P. 471,359 - 471,359

$ 32,650,361 $ 32,179,002 $ 471,359

14
 The American-Scandinavian Foundation
Notes to Financial Statements
June 30, 2020 and 2019

2019
Fair Value
Measurements
Using Quoted
Prices in Active
Markets for Investments
Identical Assets Measured
Total (A) (Level 1) at NAV (A)

Money market $ 27,027 $ - $ -

Mutual funds – global asset allocation 19,905,502 19,905,502 -
Mutual funds – benchmark-free allocation 9,691,989 9,691,989 -
Mutual funds – total return fund 1,091,519 1,091,519 -
Equity securities
Financial 90,246 90,246 -
Technology 67,770 67,770 -
Energy 59,117 59,117 -
Communication Services 46,989 46,989 -
King Street Capital L.P. 3,225,664 - 3,225,664

$ 34,205,823 $ 30,953,132 $ 3,225,664

(A) The money market and investment measured at fair value using NAV per share practical
expedient have not been classified in the fair value hierarchy. The totals included above are
intended to permit reconciliation of the fair value hierarchy to the amounts presented in the
statements of financial position.
The following is a description of the valuation methodologies and inputs used for assets measured
at fair value on a recurring basis and recognized in the accompanying statements of financial
position, as well as the general classification of such assets pursuant to the valuation hierarchy.
There have been no significant changes in the valuation techniques during the years ended June 30,
2020 and 2019.

Investments

Where quoted market prices are available in an active market, securities are classified within
Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are
estimated by using quoted prices of securities with similar characteristics or independent asset
pricing services and pricing models, the inputs of which are market-based or independently sourced
market parameters, including, but not limited to, yield curves, interest rates, volatilities,
prepayments, defaults, cumulative loss projections and cash flows. Such securities would be
classified in Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs
are not available, securities would be classified within Level 3 of the hierarchy. At June 30, 2020
and 2019, the Foundation did not have any securities classified as Level 2 or Level 3 investments
of the valuation hierarchy.

Alternative Investments

The investment in limited partnership measured at fair value using NAV per share practical
expedient was previously included as a Level 3 investment within the fair value hierarchy. For the
June 30, 2020 and 2019 financial statements, the investment in limited partnerships has been
separately presented as investments measured at NAV and included in the totals above to permit
reconciliation to the statements of financial position.

15
 The American-Scandinavian Foundation
Notes to Financial Statements
June 30, 2020 and 2019

The following table presents the Foundation’s investment in a limited partnership measured at fair
value using NAV per share as a practical expedient as of June 30, 2020 and 2019:
Redemption
Unfunded Redemption Notice
Year Value Commitments Frequency Period

King Street Capital L.P. 2020 $ 471,359 None Quarterly 65 Days

King Street Capital L.P. 2019 3,225,664 None Quarterly 65 Days

King Street Capital Limited Partnership (King Street Capital L.P.) is primarily a fixed-income
investment securities manager that has both long and short positions in specific debt securities. As
of June 30, 2020 and 2019, the Foundation’s partnership ownership percentage was approximately
0.009894 percent and 0.046779 percent, respectively.
During the year ended June 30, 2019, the Foundation requested to redeem its investment in King
Street Capital L.P. The redemption is paid out in four consecutive quarterly payments beginning
on June 30, 2019. Total amount of the first redemption on June 30, 2019 was $937,881 and was
received by the Foundation in July 2019. As a result, this redemption was presented as a receivable
from King Street Capital L.P. as of June 30, 2019. Three more redemptions were paid out in 2020
totaling $2,714,000. As of June 30, 2020, the Foundation had a receivable of approximately
$80,000 from King Street Capital L.P. and a remaining investment balance of $471,359. The
remaining balance of the investment in King Street Capital L.P. will be redeemed during the
Foundation’s fiscal year ending June 30, 2021.

Concentrations

The Foundation invests in various investment securities. Investment securities are exposed to
various risks such as interest rate, market and credit risks. Due to the level of risk associated with
certain investment securities, it is at least reasonably possible that changes in the values of
investment securities will occur in the near term and that such change could materially affect the
amounts reported in the accompanying statements of financial position.
During 2020, the Foundation changed investment custodians for a large portion of the investments.
As a result, the unrecognized gains and losses at the time the investments were liquidated were
recognized and new investment securities were purchased under the new investment custodian
using the proceeds from sale of the investments held by the previous custodian. The result of the
transaction is reflected within the investing section of the statements of cash flows.

16
 The American-Scandinavian Foundation
Notes to Financial Statements
June 30, 2020 and 2019

Note 4: Net Assets

Net Assets with Donor Restrictions

Net assets with donor restrictions at June 30, 2020 and 2019 are restricted for the following
purposes or periods:
2020 2019

Subject to expenditure for specified purpose

Fellowship and grants $ 10,183,483 $ 8,928,709
Scandinavia House operations 430,895 474,636
Scandinavia House special programs 2,373,597 2,895,039

12,987,975 12,298,384

Endowment investment return subject to

endowment spending policy and appropriation
Fellowship and grants 6,292,958 7,482,850

Endowment not subject to spending

policy or appropriation
Fellowship and grants 8,634,610 8,623,485

$ 27,915,543 $ 28,404,719

During the year ended June 30, 2020, the Foundation recognized contribution revenue of
$1,500,000 relating to an unconditional grant from a private foundation to be used for the purpose
of supporting perpetuating Scandinavian traditional folk art and cultural traditions in the Upper
Midwest through regranting the funds to traditional artists and practitioners. The grant term began
November 11, 2019 and goes through June 30, 2023. Funds of $750,000 were received during the
year ended June 30, 2020 related to this grant award and the remaining $750,000 is recorded in the
financial statements as a contribution receivable at June 30, 2020.
The contribution above approximated 45 percent of total contributions received during the year
ended June 30, 2020. During the year ended June 30, 2019, the Foundation received two
contributions from two different donors with the individual contributions approximating 35 and
25 percent, respectively, of total contributions received during the year then ended.

17
 The American-Scandinavian Foundation
Notes to Financial Statements
June 30, 2020 and 2019

Net Assets Released from Restrictions

Net assets were released from donor restrictions by incurring expenses satisfying the restricted
purposes or by occurrence of other events specified by donors.
2020 2019

Purpose restrictions
Fellowship and grants $ 575,729 $ 425,440
Scandinavia House operations 40,794 42,849
Scandinavia House special programs 431,569 582,225
Property and equipment acquisitions 90,414 141,523

1,138,506 1,192,037

Restricted purpose spending-rate appropriations

Fellowship and grants 457,711 678,204

$ 1,596,217 $ 1,870,241

Note 5: Endowment

The Foundation’s endowment consists of approximately 35 individual donor-restricted funds

established for fellowships and grants. As required by GAAP, net assets associated with
endowment funds are classified and reported based on the existence or absence of donor-imposed
restrictions.
The Foundation’s governing body has interpreted the State of New York Prudent Management of
Institutional Funds Act (NYPMIFA) as requiring preservation 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 this interpretation, the Foundation classifies amounts in its donor-restricted
endowment funds as net assets with donor restrictions because those net assets are time restricted
until the governing body appropriates such amounts for expenditures. Most of those net assets also
are subject to purpose restrictions that must be met before being reclassified as net assets without
donor restrictions. NYPMIFA moves away from the “historic dollar value” standard, and permits
charities to apply a spending policy to endowments based on certain specified standards of
prudence. The Foundation has adopted the NYPMIFA spending policy.
Additionally, in accordance with NYPMIFA, the Foundation considers the following factors in
making a determination to appropriate or accumulate donor-restricted endowment funds:
1. Duration and preservation of the fund
2. Purposes of the Foundation and the fund
3. General economic conditions
4. Possible effect of inflation and deflation

18
 The American-Scandinavian Foundation
Notes to Financial Statements
June 30, 2020 and 2019

5. Expected total return from investment income and appreciation or depreciation of

investments
6. Other resources of the Foundation
7. Investment policies of the Foundation
Change in endowment net assets for the years ended June 30, 2020 and 2019 were:
2020 2019

Donor-restricted endowment funds, beginning of year $ 16,106,335 $ 16,087,095

Contributions 11,125 12,000
Interest and dividends 581,278 485,631
Realized and unrealized gains (losses) (1,205,368) 334,405
Investment fees (108,091) (134,592)
Appropriation of endowment assets for expenditure (457,711) (678,204)

Donor-restricted endowment funds, end of year $ 14,927,568 $ 16,106,335

Return Objectives and Risk Parameters

The investment objective of the endowment is to provide a stream of earnings that exceeds the sum
of inflation and the risk-free return available in the market over a multiyear period with only a
moderate amount of risk. Funds are invested in a diversified portfolio of stocks, mutual funds and
limited partnerships that value long-term appreciation as well as current income.

Strategies Employed for Achieving Objectives

The Investment Committee establishes an asset allocation with the goal of achieving a superior
risk-adjusted total return. The Investment Committee chooses managers, monitors their results,
and rebalances the assets between managers as required. The Investment Committee reports
regularly to the Board, and all major decisions are reviewed and approved by the Board before they
are implemented. All assets are managed by professional investment managers.

Spending Policy and How Investment Objectives Relate to the Spending Policy

Not-for-Profit Corporation Law (NPCL) allows the net appreciation realized (with respect to all
assets) and unrealized (with respect only to readily marketable assets) to be appropriated for
expenditure, unless prohibited by the donor in the applicable gift instrument. Pursuant to Section
513(c) of the NPCL, the Board of the Foundation may appropriate these amounts if such a decision
is prudent under the standard established by NPCL Section 717. The Investment Committee each
year proposes a spending rate to be applied to the five-year average of the balances in those funds
whose gift documents allow net appreciation to be spent. The Board then reviews this proposal and
sets a spending rate after considering the long- and short-term needs of the Foundation in carrying
out its purposes, its present and anticipated financial requirements, expected total return of its
investments, price level trends, general economic conditions and other relevant factors.

19
 The American-Scandinavian Foundation
Notes to Financial Statements
June 30, 2020 and 2019

The Foundation’s board established a spending policy of appropriating for expenditure each year
4.375 percent of its endowment fund’s average fair value over time. In establishing this policy, the
Foundation considered the long-term expected return on its endowment. Accordingly, over the
long term, the Foundation expects the current spending policy to allow its endowment to grow at an
approximate average of 7 percent annually. This is consistent with the Foundation’s objective to
maintain the purchasing power of endowment assets held in perpetuity or for a specified term, as
well as to provide additional real growth through new gifts and investment return.

Underwater Endowments

The governing body of the Foundation has interpreted NYPMIFA as not requiring the maintenance
of purchasing power of the original gift amount contributed to an endowment fund, unless a donor
stipulates the contrary. As a result of this interpretation, when reviewing its donor-restricted
endowment funds, the Foundation considers a 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 gift amounts donated to the fund and
b) any accumulations to the fund that are required to be maintained in perpetuity in
accordance with the direction of the applicable donor gift instrument
The Foundation has interpreted NYPMIFA to not permit spending from underwater funds in
accordance with the prudent measures required under the law. The Foundation did not have any
funds with deficiencies at June 30, 2020 and 2019.

20
 The American-Scandinavian Foundation
Notes to Financial Statements
June 30, 2020 and 2019

Note 6: Liquidity and Availability

Financial assets available for general expenditure, that is, without donor or other restrictions
limiting their use, within one year of June 30, 2020 and 2019, comprise the following:
2020 2019

Financial assets at year-end

Cash and cash equivalents $ 1,220,746 $ 630,713
Investments 32,650,361 34,205,823
Accounts receivable 153,201 242,720
Inventory 113,304 176,257

Total financial assets 34,137,612 35,255,513

Donor-imposed restrictions
Donor restricted funds 12,987,975 12,298,384
Endowments 14,927,568 16,106,335

Total donor-imposed restrictions 27,915,543 28,404,719

Net financial assets after donor-imposed restrictions 6,222,069 6,850,794

Internal designations
Board-advised funds 5,204,668 5,738,832

Financial assets available to meet cash needs for general

expenditures within one year $ 1,017,401 $ 1,111,962

The Foundation receives significant contributions restricted by donors and considers contributions
restricted for programs which are ongoing, major and central to its annual operations to not be
available to meet cash needs for general expenditures. Donor restricted funds are not classified as
financial assets available to meet cash needs for general expenditures within one year, however, the
Foundation could seek from donors to have these amounts made available if necessary.
The Foundation’s endowment funds consist of donor-restricted endowments. Investment return
from donor-restricted endowments is restricted for fellowships and grants. Donor-restricted
endowment funds are not available for general expenditure.
The Foundation manages its liquidity and reserves following three guiding principles: operating
within a prudent range of financial soundness and stability, maintaining adequate liquid assets to
fund near-term operating needs and maintaining sufficient reserves to provide reasonable assurance
that long-term obligations will be discharged. These are presented as financial assets available to
meet cash needs for general expenditures within one year.
The Foundation has internally designated board-advised restricted funds. While the Board has
internally designated these funds for specified purposes, however, these funds are available to be
used for other operating purposes at the discretion and re-designation of the Board.

21
 The American-Scandinavian Foundation
Notes to Financial Statements
June 30, 2020 and 2019

Note 7: Property and Equipment

Property and equipment at June 30, 2020 and 2019 consists of:
2020 2019

Land $ 5,000,000 $ 5,000,000

Building 16,755,540 16,755,540
Building improvements 655,178 602,042
Furniture and equipment 2,184,534 2,147,252

24,595,252 24,504,834
Less accumulated depreciation (10,785,732) (10,255,170)

$ 13,809,520 $ 14,249,664

Construction of Scandinavia House - The Nordic Center in North America (Scandinavia House) at
56-58 Park Avenue in New York City began in 1999 and opened to the public in October 2000.
Scandinavia House includes exhibition spaces, an auditorium, book/gift shop, café, library/resource
center, children’s learning center, meeting rooms and the Foundation’s offices.

Note 8: Contribution Receivable

Expected collections of contribution receivable as of June 30, 2020, are:

Years Ending With Donor

June 30, Restrictions

2020 $ 400,000
2021 350,000

Total $ 750,000

Note 9: Defined Contribution Pension Plan

The Foundation maintains a defined contribution pension plan for employees who have attained the
age of 21 and have completed one year (a minimum of 1,000 hours) of service. The Foundation’s
contributions were at the rate of 5 percent of compensation for eligible participants for the years
ended June 30, 2020 and 2019 and totaled approximately $71,000 and $64,000, respectively.

22
 The American-Scandinavian Foundation
Notes to Financial Statements
June 30, 2020 and 2019

Note 10: Economic Conditions

As a result of the spread of the SARS-CoV-2 virus and the incidence of COVID-19, the state of
New York issued orders and other measures around public gatherings and business operations to
slow the spread of the virus. As a result of this guidance, the Foundation curtailed some its
operations, including the temporary closing of the restaurant and gift shop, cancellation of the
annual gala, and the inability of the Foundation to host its own program events or rent out the use
of the building to outside parties. The duration of these uncertainties and the ultimate financial
effects cannot be reasonably estimated at this time.
The economic conditions as a result of a novel strain of coronavirus (COVID-19) continues to
present certain difficult circumstances and challenges, which in some cases have resulted in
declines in the fair value of investments and other assets, and could result in declines in
contributions, constraints on liquidity and difficulties obtaining financing. Given the volatility of
current economic conditions, the values of assets and liabilities recorded in the financial statements
could change rapidly, resulting in material future adjustments in investment values and allowances
for receivables that could negatively impact the Foundation. The related financial impact and
duration cannot be reasonably estimated at this time and the financial statements have been
prepared using values and information currently available to the Foundation.

Note 11: Subsequent Event

Subsequent events have been evaluated through May 10, 2021, which is the date the financial
statements were available to be issued.

Note 12: Future Changes in Accounting Principles

Revenue Recognition

The Financial Accounting Standards Board (FASB) amended its standards related to revenue
recognition. This amendment replaces all existing revenue recognition guidance and provides a
single, comprehensive revenue recognition model for all contracts with customers. The guidance
provides a five-step analysis of transactions to determine when and how revenue is recognized.
Other major provisions include capitalization of certain contract costs, consideration of the time
value of money in the transaction price and allowing estimates of variable consideration to be
recognized before contingencies are resolved in certain circumstances. The amendment also
requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash
flows arising from customer contracts, including significant judgments and changes in those
judgments and assets recognized from costs incurred to fulfill a contract. The standard allows
either full or modified retrospective adoption.
The new revenue recognition standard was initially effective for the Foundation’s year ending
June 30, 2020, however, the Foundation elected to take advantage of this deferral and the standard
will be effective for the year ending June 30, 2021. The Foundation is in the process of evaluating
the impact the new revenue recognition standard will have on the financial statements.

23