Gordon College

“Collections, which were acquired through purchases and contributions since the College's inception, are not recognized as assets on the statement of financial position. Purchases of collection items are recorded as decreases in unrestricted net assets in the year in which the items are acquired. Contributed collection items are not reflected on the financial statements. Proceeds from deaccessions or insurance recoveries are reflected as increases in the appropriate net asset classes.”

“Occasionally the College receives gifts of art or collectibles which are put on display in various buildings throughout the campus. We also maintain library archives of College historical documents and book collections kept for posterity.”

“The College maintains custodial or "pass through" accounts for Federal student loans, Pell grant and state grants. Funds are held in these accounts until distributed to individual students. The College also maintains custodial accounts for student government and student ministry groups and activities.”

“The intended use of endowment funds is driven by donor restrictions on our endowments. Approximately 66% of appropriated revenues this year were in scholarship awards. 18% of revenues supported general activities and physical plant. The remaining 16% was allocated to instructional activities and academic support programs. Distributions of income are made using a total return method. We use a spending rate of 4.25% of the 3 year rolling average of the fair market value of the investments.”

“FIN 48 Footnote: The College follows guidance that clarifies the accounting for uncertainty in tax positions taken or expected to be taken in a tax return, including issues relating to financial statement recognition and measurement. This guidance provides that the tax effects from an uncertain tax position can only be recognized in the financial statements if the position is "more-likely-than-not" to be sustained if the position were to be challenged by a taxing authority. The assessment of the tax position is based solely on the technical merits of the position, without regard to the likelihood that the tax position may be challenged. The College is an organization described in Section 501(c)(3) of the Internal Revenue Code, as amended (the Code), and is generally exempt from income taxes pursuant to Section 501(a) of the Code. The College is responsible for the maintenance of its tax-exempt status; identifying and reporting unrelated income; determining its filing and tax obligations in jurisdictions for which it was nexus; and identifying and evaluating other matters that may be considered tax positions. The tax years ended June 30, 2013, 2014, and 2015 are still open to audit for federal and state purposes. The College has determined that there are no material uncertain tax positions that require recognition or disclosure in the financial statements.”

“This figure includes the FWS apportionment budget allocation of 188,033 included in income on the financial statements and special events expenses of 1,039,570 included in expense on the financial statements.”

“Included here are: scholarships and grants of 25,525,026 treated as tuition discount on the financial statements; FSEOG and FWS of 437,461 treated as pass through activity on the financial statements and not reflected in income.”

“This figure includes: FWS apportionment budget allocation of 188,033 included in income on the financial statements; special events expenses of 1,039,570 included in expense on the financial statements; change in fair value of interest rate swap agreements of 1,582,213.”

“- Included here are: scholarships and grants of 25,525,026 treated as tuition discount on the financial statements; FSEOG and FWS of 437,461 treated as pass through activity on the financial statements and not reflected in expense; change in fair value of split interest agreements of $76,536.”