Paul Smiths College of Arts and Sciences

“The college has adopted investment and spending polices, approved by the board of trustees, for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasing power of these endowment assets over the long-term. The college's spending and investment policies work together to achieve this objective. The investment policy establishes an achievable return objective through diversification of asset classes. The current long-term return objective is to achieve a total return (income plus capital change, net of all investment expenses) equal to or exceeding any approved distribution rate, plus the inflation rate as measured by the consumer price index. Actual returns in any given year may vary from this amount. To satisfy its long-term rate-of-return objectives, the college relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). The college targets a diversified asset allocation that places an emphasis on u.s. Equity-based investments and u.s. Intermediate-term debt securities to achieve its long-term return objectives within prudent risk parameters. The spending policy calculates the amount of money annually distributed from the college's various endowed funds, for scholarships, programs and administration. The college utilizes a total return spending rate policy which limits the amount of investment return used to support current operations. The limit is determined by the college's current budgeted amount to be spent for the year. Under the total spending policy, the college utilized 976,000 and 467,000 in 2015 and 2014, respectively. This equates to approximately 3.66% in 2015 and 1.85% in 2014 of the fair value of the endowment funds. Accordingly, over the long term, the college expects its current spending policy to allow its endowment assets to grow at an average rate of 3% annually. This is consistent with the college's objective to maintain the purchasing power of endowment assets as well as to provide additional real growth through investment return.”

“Fasb asc 740, "income taxes", requires entities to disclose in their financial statements the nature of any uncertainties in their tax position. Tax years including 2011 and later are subject to examination by tax authorities. Areas that the irs and state tax authorities consider when examining tax returns of a charity include, but may not be limited to, tax-exempt status and the existence and amount of unrelated business income. The college does not believe that it has any uncertain tax positions with respect to these or other matters, and has not recorded any unrecognized tax benefits of liability for penalties or interest. The college is not aware of any circumstances or events that make it reasonably possible that tax benefits may increase or decrease within 12 months of the date of these financial statements.”

“Cost of goods sold 753,511”