Auburn Research and Technology Foundation

“990 is reviewed by key members of management.”

“All conflicts of interest or apparent conflicts of interest of directors are to be disclosed to the chairperson of the board and the executive director. Conflicts or apparent conflicts of all others acting for or on behalf of the artf are to be disclosed to the executive director. Violations of the policy, including failure to disclose conflicts, may result in termination of the conflicted person.”

“The foundation did not have any committees with the authority to act on behalf of the governing body.”

“Auburn research and technology foundation makes its governing documents, conflict of interest policy, and financial statements available to the general public upon request.”

“The Auburn Research and Technology Foundation (the Foundation) is an independent Alabama nonprofit corporation organized on August 24, 2004, to develop and operate the Auburn Research Park and to support Auburn University (the University) with the attraction, development, and commercialization of technology. The Foundation's activities are governed by its own Board of Directors (the Foundation Board). The primary role of the Foundation is the development and operation of the Auburn Research Park (The Park). The Park is the result of a partnership between the State of Alabama (the State), the University, and the City of Auburn which contributed $5,000,000 in-kind infrastructure improvements to The Park property. The Park currently consists of seven buildings comprising almost 500,000 square feet of scientific and mixed-use facilities. It seeks to establish an entrepreneurial atmosphere in a business and research environment which fosters creativity and innovation, and embraces collaboration, partnerships, and networking that leads to economic diversification and enhanced economic vitality of the University and the local community, state, and region. On March 1, 2007, for the purpose of making loans and advances, the Board entered into an agreement to lease the site for Building 570 from the University. The Board paid annual rent of $10 to the University under the terms of the lease. The ground lease agreement had an expiration date of January 1, 2025; however, the agreement was terminated on October 8, 2010, the time all obligations due to the Board by the Foundation were paid in full. At that time, the University entered into an agreement with the Foundation where the Foundation leases the site for Building 570 from the University. The Foundation pays annual rental of $1 to the University under the terms of this ground lease. The ground lease agreement expires on March 15, 2057, unless terminated prior to that date. These transactions represent an unconditional promise of the use of a long-lived asset, the leased land. Since the rental payments are below the fair market value of the property, the Foundation recorded a contribution receivable for the difference between the fair rental values of the property, initially calculated using a 7% discount rate, and the stated amount of the lease payments. At the formation of the original lease, the contribution receivable booked was $302,878, net of a discount of $251,740. During fiscal 2011, the interest rate was reevaluated and changed to 5%, and the lease period was extended. An additional contribution receivable of $589,790 and discount of $401,121 were booked in fiscal 2011. An adjustment to the contribution receivable was made in fiscal 2016 to increase total acreage from the original 156 acres to 170.43 acres to include the VCOM acreage (discussed below) in the calculation. As of September 30, 2023, the Foundation has active ground leases comprising approximately 41.34 acres. The offsetting contribution receivable is amortized using the straight-line method over the life of the lease. Amortization related to the lease was $21,243 during fiscal 2023 and 2022. The discount is amortized using the effective interest method. Amortization of the discount was $9,977 and $9,414 during fiscal 2023 and 2022, respectively. On August 30, 2012, the Foundation signed an agreement with the Edward Via College of Osteopathic Medicine (VCOM) in Blacksburg, VA to establish a branch campus to be located within the research park. The Foundation entered into an agreement to lease the site for VCOM from the University on August 9, 2013. The Foundation pays annual rent of $1 to the University under the terms of the lease. The ground lease agreement expires on June 30, 2085, unless terminated prior to that date. This transaction represents an unconditional promise of the use of a long-lived asset, the leased land. Since the rental payments are below the fair market value of the property, the Foundation”

“Consolidation adjustment pushed down to ARTF”

“Description:other fees for services total fees:197597”