Monell Chemical Senses Center

“The endowment fund was established by restricted gifts from donors. Endowment funds subject to FASB ASC 958 include funds established by donors to provide annual funding for specific activities and general operations. Monell has adopted an investment policy for endowment assets that provides primarily for the preservation of capital, real growth after inflation and capital appreciation. The income on the endowment assets is used in accordance with donor stipulations. No formal spending policy has been adopted. One of Monells endowments is the Martin Meyerson Lectureship Endowment Fund. The investment income earned on this endowment is restricted for lectureships. Investment income on all other endowments is unrestricted and recorded as investment income without donor restrictions on the accompanying statements of activities.”

“This represents expenses in the amount of $74,549 pertaining to unrelated debt financed income as well as rent expenses in the amount of $379,802 relating to rents from real property under the provisions of IRC 512 (b)(3).”

“This represents expenses in the amount of $74,549 pertaining to unrelated debt financed income as well as rent expenses in the amount of $379,802 relating to rents from real property under the provisions of IRC 512 (b)(3).”

“Monell has been granted an exempt status from federal, state, and local income taxes under eachjurisdictions respective tax law; therefore, no provision for income taxes has been included in the accompaning financial statements. Monell is annually required to file a federal Form 990 with theInternal Revenue Service (IRS). In addition, Monell is subject to income tax on net income derivedfrom business activities that are unrelated to its exempt purpose. Monell files an Exempt Organization Business Income Tax Return (Form 990T)with the IRS to report its unrelated businesstaxable income. Monells tax returns are subject to examination by the relevant tax authoritiesuntil the expiration of the applicable statute of limitations, which is generally three years afterthe filing of the tax return. Based on Monells assessment of many factors, including past experience and judgements about future events, Monell does not currently anticipate significant changes in its tax position over the next 12 months.”