Trustees of Clark University

“The University houses certain collections of works of art, literary works and artifacts. These collections are protected and preserved for public exhibition, education, research, and the furtherance of public service. They are neither disposed of for financial gain nor encumbered in any manner. Accordingly, these collections are not recorded or capitalized for financial statement purposes.”

“Clark University has art and book collections that are used by students and faculty to enhance the curriculum. On occasion, these works have been accessed for scholarly research.”

“The University has adopted an endowment investment philosophy, which combined with the spending rate, attempts to provide a predictable stream of returns thereby making funds available to programs that are supported by its endowment, while at the same time seeking to maintain the purchasing power of the endowment assets. Endowment assets include those assets of donor-restricted-funds, which the organization must hold in perpetuity or for donor-specified periods. Under the University's Investment Policy and spending rate, both of which are approved by the Board of Trustees, the endowment assets are invested in a manner that is intended to produce an inflation-adjusted return in excess of the spending rate over a long period of time. The use of the distribution is for mission related activities including student scholarship, library acquisitions, research, academic support, student loans, and instruction.”

“The University currently has a reserve of $89,495. for potential FIN 48 liabilities. Per the advice of our external auditing firm, we did not mention the reserve in the FIN 48 footnote, as the reserve was not deemed material to the financial statements.”

“The University is a not-for-profit organization as 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 University is required to assess uncertain tax positions and has determined that there were no such positions that are material to the financial statements. If such positions existed, it is the University's policy to record estimated interest and penalties as part of the general and institutional expense. No interest or penalties have been recorded for the years ended May 21, 2013 and 2014. Management believes that the University's income tax returns for fiscal years ending May 31, 2009 and prior are no longer subject to examination by tax authorities in its major tax jurisdictions.”

“Reclass tuition remissions ($55,086,139.) Student loan program expense in non-operating activity, ($143,897) Change in value of post retirement health obligation in non-operating activity ($43,216.) Change in the value of the interest rate swap ($70,910). Change in the value of split interest and beneficial interest in outside trust ($1,021,151.)”

“Reclass rental property expense to revenue ($252,560.)”

“Reclass rental property expense to revenue $252,560.”

“Reclass tuition reductions from contra-revenue to expense, $55,086,139. Student loan program expenses in non-operating activity, $143,897. Change in value of post retirement health obligation in non-operating activity, $43,216.”