Canajoharie Library & Art Gallery

“Clag has elected not to capitalize its fine art and history collections. The fine art collection includes american paintings, watercolors, sculptures, prints, drawings and photographs. The history collection includes artifacts, photographs and ephemera relating to the mohawk valley and the beech-nut packing company. Collections are held for public exhibition, education and research in furtherance of public service rather than financial gain. The collections are protected, kept unencumbered, cared for and preserved; and are subject to a policy that requires the proceeds from sales of collection items to be used to acquire other items for collections. The collections are accessioned and catalogued, and stored in climate controlled and secure storage areas when not on exhibit. Clag has employed a curator to ensure that the collections are protected and preserved. Some pieces were donated or bequeathed to clag by local residents while other pieces were purchased by the clag. The purchased pieces are expensed rather than capitalized. The proceeds from the sale of collection items are restricted to the purchase of other collection items.”

“Certain net assets with donor restrictions consist of endowment funds to support earnings for general operations, the purchase of art books and maintenance of the flag pole. Contributions to the endowment funds are subject to donor restrictions that stipulate the original principal of the gifts are to be held and invested by clag indefinitely and income from the funds are to be expended for general operations and purchase of art books. As required by the modified cash basis of accounting, net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed restrictions. Clag has interpreted the new york prudent management of institutional funds act (nypmifa) as requiring the preservation of the fair value of the original gifts as of the gifts date of donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, clag classifies certain net assets with donor restrictions as (1) the original value of gifts donated to the permanent endowments, (2) the original value of subsequent gifts to the permanent endowments, and (3) accumulations to the permanent endowments made in accordance with the direction of the applicable donor gift instruments at the time the accumulation is added to the funds. In accordance with nypmifa, clag considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds: (1) the duration and preservation of the various funds, (2) the purposes of the donor-restricted endowment funds, (3) general economic conditions, (4) the possible effect of inflation and deflation, (5) the expected total return from income and the appreciation of investments, (6) other resources of clag, and (7) clag's investment policies. Clag has adopted investment and spending practices for endowment assets that attempt to subject the funds to low investment risk and provide its earnings for general operations and purchase of art books with current income. Endowment assets are invested in fixed income and equities. Clag seeks to build endowment assets through additional contributions. Clag has a practice of appropriating for distribution each quarter a fixed amount from the assets that is not with donor restrictions. This is consistent with clag's objectives to provide income for its earnings of general operations and purchase of art books, preserve endowment assets without subjecting them to substantial risk, and provide additional real growth through new gifts.”

“The financial accounting standards board (fasb) issued fasb asc 740-10 which requires entities to disclose in their financial statements the nature of any uncertainty in their tax position. For tax-exempt entities, their tax-exempt status itself is deemed to be an uncertainty, since events could occur to jeopardize their tax-exempt status. However, canajoharie library and art gallery has no knowledge of events or circumstances that would jeopardize its tax-exempt status. Canajoharie library and art gallery implemented fasb asc 740-10 and its current accounting policy for evaluating uncertain tax positions is in accordance with generally accepted accounting principles. Canajoharie library and art gallery has not recognized any benefits from uncertain tax positions in 2024 and believes it has no uncertain tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within 12 months of the statement of financial position date. Canajoharie library and art gallery evaluated its tax position and concluded that all of the positions taken by canajoharie library and art gallery would more likely than not be sustained upon examination, based on technical merits. The information returns of canajoharie library and art gallery for 2021, 2022, and 2023 are subject to examination by tax authorities, generally for three years after they were filed.”