HARVARD CLUB OF BOSTON RETIREMENT PLAN FOR EMPLOYEES Notes to Financial Statements

Note 6 – Information certified by the custodian (unaudited)

The following information included in the Plan's financial statements was derived from data that has been certified by the custodian as being complete and accurate and has been furnished to the plan administrator. The supplemental schedules also include unaudited information.

Note 7 – Fair value measurements

The Fair Value Measurements topic of the FASB Accounting Standards Codification (FASB ASC) establishes a framework for measuring fair value. The framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted observable inputs (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are: Level 1, defined as observable inputs such as quoted market prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The asset's or liability's fair value measurement level within the fair value hierarchy is based on lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

The following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at August 31, 2022 and 2021.

Corporate bonds: Valued using pricing models maximizing the use of observable inputs for similar securities. This includes basing value on yields currently available on comparable securities of issuers with similar credit ratings.

Corporate stocks: Valued at the closing price reported on the active market on which the individual securities are traded.

Mutual funds: Valued at the Net Asset Value (NAV) of shares held by the Plan at year end. The NAV is a quoted price in an active market.