HARVARD CLUB OF BOSTON RETIREMENT PLAN FOR EMPLOYEES

Notes to Financial Statements

Vesting

Benefits under the Plan become fully vested after five Years of Service, as defined in the Plan. There is no partial vesting.

Plan administrative expenses

The Plan’s expenses are paid either by the Plan or the Club, as provided by the plan document. Certain incidental costs incurred by the Club on behalf of the Plan are included in the financial statements of the Club and are excluded from these financial statements. Certain expenses incurred in connection with the general administration of the Plan that are paid by the Plan are recorded as deductions in the accompanying Statements of Changes in Net Assets Available for Benefits. In addition, certain investment related expenses are included in net appreciation or depreciation in fair value of investments presented in the accompanying Statements of Changes in Net Assets Available for Benefits. Significant administrative expenses included PBGC fees of $171,008 and $167,440 in 2022 and 2021, respectively.

Note 2 – Summary of significant accounting policies

Basis of accounting

The accompanying financial statements are prepared on the accrual basis of accounting.

Investment valuation and income recognition

Investments are reported at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. See discussion under Fair Value Measurements for a description of valuation methodologies used for assets measured at fair value.

Purchases and sales of securities are reflected on a trade-date basis. Gain or loss on sales of investments is based on average cost. The Plan presents the net appreciation or depreciation in the fair value of its investments in the Statements of Changes in Net Assets Available for Benefits which consists of the realized gains or losses and the unrealized appreciation and depreciation on those investments. Interest income is recorded as earned, on an accrual basis. Dividend income is recorded on the ex-dividend date.

Actuarial cost method

The method used to determine the normal cost and actuarial accrued liability is the Projected Unit Credit Cost method.

Accumulated plan benefits

Accumulated plan benefit information is presented as of the end of the Plan year.

Payment of benefits

Benefit payments to participants are recorded upon distribution.