Molloy University

“The College maintains an artwork collection in various buildings for the enjoyment of students, employees, and visitors to its campus.”

“Molloy College had $1,782,544 in student credit balances at June 30, 2017. These balances represent potential tuition money owed to students due to over-payment, financial aid applied to student's account, or payments made for the next semester.”

“The College's endowment fund is intended to support the College's educational mission. The endowment consists of approximately 104 individual funds. The endowment earnings are used to fund the College's daily operations, including scholarships, student programs, and other campus activities. The Board of Trustees, through its approved investment policy guidelines, has interpreted the New York Prudent Management of Institutional Funds (NYPMIFA) to allow the College to spend below the historical dollar value of its endowment unless specific donors have stipulated to the contrary.”

“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 exempt from federal income tax under IRC section 501(c)(3), though it is subject to tax on income unrelated to its exempt purpose, unless that income is otherwise excluded by the Code.The College has processes in place to ensure the maintenance of its tax-exempt status; to identify and report unrelated income; to determine its filing and tax obligation in jurisdictions for which it was nexus; and to identify and evaluate other matters that may be considered tax positions. The tax years June 30, 2015, 2016, and 2017 are still open to audit for both 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.”

“Effective November 10, 2016, the College and CAP21 executed a termination agreement which ended CAP21's contractual responsibility for the provision for the provision for instructional studio courses for the BFA Theatre Arts program. The termination agreement stipulated that the College assume responsibility and control for all instructional, operational, financial, and programmatic components of the BFA program. This allowed the College to refine the program and develop a more unified and efficient conservatory curriculum within a four-year academic institution. In satisfaction of a $500,000 loan and advanced tuition payments provided by the College to CAP21 which totaled $905,809 at the the date of termination agreement, CAP21 transferred its trade name, course curriculum and various equipment and furniture to the College. The College hired an independent valuation group to do an analysis on the acquisition of CAP21. The results of this analysis, valuated the trade name at $420,000, the curriculum at $185,000, the goodwill at $708,798, and the gain on acquisition at $905,809 which was equivalent to the amount of receivable the College forgave. Based on the impairment test performed at year-end by an independent valuation company, the College was required to write-off the full value of the Goodwill in the amount of $708,798.”

“Institutional aid totaling $24,496,836 is shown as an expense on Form 990 Part IX but is netted against revenues in the financial statements. Fundraising expenses totaling $196,611 is shown as a reduction of net income from fundraising on Form 990 Part VIII and is shown as an expense in the financial statements.”

“Effective November 10, 2016, the College and CAP21 executed a termination agreement which ended CAP21's contractual responsibility for the provision for the provision for instructional studio courses for the BFA Theatre Arts program. The termination agreement stipulated that the College assume responsibility and control for all instructional, operational, financial, and programmatic components of the BFA program. This allowed the College to refine the program and develop a more unified and efficient conservatory curriculum within a four-year academic institution. In satisfaction of a $500,000 loan and advanced tuition payments provided by the College to CAP21 which totaled $905,809 at the the date of termination agreement, CAP21 transferred its trade name, course curriculum and various equipment and furniture to the College. The College hired an independent valuation group to do an analysis on the acquisition of CAP21. The results of this analysis, valuated the trade name at $420,000, the curriculum at $185,000, the goodwill at $708,798, and the gain on acquisition at $905,809 which was equivalent to the amount of receivable the College forgave. Based on the impairment test performed at year-end by an independent valuation company, the College was required to write-off the full value of the Goodwill in the amount of $708,798.”

“Institutional aid totaling $24,496,836 is shown as an expense on Form 990 Part IX but is netted against revenues in the financial statements. Fundraising expenses totaling $196,611 is shown as a reduction of net income from fundraising on Form 990 Part VIII and is shown as an expense in the financial statements.”