John Woodman Higgins Armory Inc

“As allowed by accounting principles generally accepted in the united states of america and following the practices of most museums, the museum has not capitalized its collection of armor and related objects. The collection is held for public exhibition, education, or research in furtherance of public service rather than financial gain. The museum continually reviews its collection and may deaccess or acquire additional items. Expenditures for additional collection items are presented as a reduction in the appropriate class of net assets. The museum has established a policy that requires the proceeds from items deaccessed to be invested and, together with accumulated investment income, used to acquire other items for the collection.”

“The organization holds collections of arms and armor, artifacts ranging from corinthian helmets of ancient greece to an ornate suite of armor from the height of the renaissance era. The museum has not capitalized its collection of armor and related objects. The collection is held for public exhibition, education, or research in furtherance of public service rather than financial gain. The museum continually reviews its collection and may deaccess or acquire additional items. Expenditures for additional collection items are presented as a reduction in the appropriate class of net assets. The museum has established a policy that requires the proceeds from items deaccessed to be invested and, together with accumulated investment income, used to acquire other items for the collection. There is no financial statement reporting for these collections.”

“The museum's endowment consists of individual funds established for a variety of purposes. Its endowment includes both donor restricted endowment funds and funds designated by the museum to function as endowments. As required by generally accepted accounting principles, net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed or legal restrictions. As required by generally accepted accounting principles, the museum classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the museum in a manner consistent with the standard of prudence prescribed by state law. In accordance with the uniform prudent management of institutional funds act, the museum can consider the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds: - the duration and preservation of the fund - the purposes of the organization and the donor-restricted endowment fund - general economic conditions - the possible effect of inflation and deflation - the expected total return from income and the appreciation of investments - other resources of the organization - the investment policies of the organization. The museum has adopted investment and spending policies for its board-designated and other endowment assets that attempt to provide a predictable stream of funding for its programs while seeking to maintain the purchasing power of the endowment assets. Under this policy, as approved by the board, the endowment assets are invested in a manner that is intended to produce results that exceed the price and yield results of the s&p 500 index while assuming a moderate level of investment risk. The museum expects its endowment funds, over time, to provide an average rate of return of approximately 7% annually. Actual returns in any given year may vary from this amount. To satisfy its long-term rate-of-return objectives, the museum relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest, dividends and net rental income). The museum has invested in mutual funds that target a diversified asset allocation that places a greater emphasis on equity-based investments to achieve its long-term return objectives within prudent risk constraints. The museum has a policy of appropriating for distribution each year 5% to 7% of its endowment fund's average fair value over the prior twelve quarters through the year-end proceeding the year in which the distribution is planned. In establishing this policy, the museum considered the long-term expected return on its endowment. This is consistent with the museum's objective to maintain the purchasing power of its endowment. From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the level that the donor imposed restrictions require the museum to retain as a fund of perpetual duration. In accordance with generally accepted accounting principles, deficiencies of this nature are reported in unrestricted net assets. Such deficiencies amounted to $304,005 and $481,859 as of december 31, 2013 and 2012, respectively.”

“Management annually reviews for uncertain tax positions along with any related interest and penalties and believes that the museum has no uncertain tax positions that would have a material adverse effect, individually or in the aggregate upon the museum's statements of financial position or the related statements of activities or cash flows. The museum files income tax returns in the u.s. Federal jurisdiction.”

“Cost of goods sold 128,472. Deaccession proceeds 1,899,274. Special events 8,395.”

“Impairment of fixed assets 383,460.”

“Cost of goods sold 128,472. Special events 8,395.”