The Metropolitan Opera Guild Inc

“During fiscal-year 2016, the Guild's executive committee, acting on behalf of the Board passed the following resolution to release all Board-designated restrictions: BE IT RESOLVED that the Executive Committee has determined that the category of unrestricted net assets described as "Board-designated functioning as endowment" in the Guild's annual audited financial statements is no longer necessary or appropriate. Several decades ago, such designation was applied by the Board to a portion of the Guilds unrestricted investment portfolio so that such portion would be treated as endowment, in a manner similar to that required for permanently restricted endowments established by outside donors. Nonetheless, the Executive Committee believes it more appropriate at this time to return such Board-designated endowment to a category of unrestricted net assets to be designated for use in the Guilds general operations in accordance with the Guilds deployment of its investment assets over the past decade; provided, however, that nothing in this resolution will prevent the current Board, or any future Board, from making decisions with regard to what such Board may determine to be appropriate categorizations of the Guilds unrestricted net assets.”

“Reconciliation of revenue: Line 4b - Special events expenses not netted against revenue for book purposes ($444,609)”

“Reconiliation of expenses: LINE 2D - Special events expenses netted against revenue for tax return purposes($444,609)”

“Use of endowment funds: The Guild's endowment funds support operations, education programs, and the preservation of a collection of various opera-related memorabillia.”

“Income tax uncertainties: The Guild is subject to the provisions of the Financial Accounting Standards Board's (the "FASB") Accounting Standards Codification ("ASC") Topic 740, Income Taxes, as it relates to accounting and reporting for uncertainty in income taxes. Since the Guild has always recorded the potential tax liability for excise and unrelated business tax, and due to its general tax-exempt status, management believes ASC Topic 740 has not had, and is not anticipated to have, a material impact on the Guild's financial statements.”

“Collections: The Guild maintains a collection of various opera-related memorabilia. All collection items are catalogued and preserved, and activities verifying their existence and assessing their condition are performed regularly. In accordance with the collection policies of museums, the cost or value of these collections is not included in the accompanying balance sheets. The collections are comprised of various items used within and by famous operas and are used to (i) develop, support, and cultivate a wider public interest in the Metropolitan Opera and the art form at-large, (ii) to further musical education and appreciation, and (iii) to sponsor and give assistance to operatic, musical and cultural programs, as well as other activities of an educational character.”