Long Island Maritime Museum

“The organization has adopted fasb asc 740-10 "income taxes" regarding accounting for uncertain income tax positions. Management is not aware of any tax positions that are more likely than not to change in the next twelve months, or that would not sustain an examination by applicable taxing authorities.”

“The organization follows fasb asc 958-60-25-3 and does not capitalize its collections acquired either through purchase or donation. The collections are made up of artifacts of historical significance and art objects that are held for educational, research, and curatorial purposes. The collections are on display at the various structures. These items are cataloged, preserved, and cared for, and activities verifying their existence and assessing their condition are performed continuously. The collections are subject to a policy that requires proceeds from their sales to be used to acquire other items for collections. Purchases of collection items reduce net assets in the period when purchased. Collections of items acquired by gift or purchase with the organization's own revenue remain the property of the organization. The museum operates on land owned by new york state and is leased to them. The lease agreement expired in 2010 and the parties are currently operating on a month-to-month basis. However, nys makes the land and buildings available to the museum at no charge. The value of this arrangement is not readily determinable and no such transaction is reflected on the books of the organization. In addition, since the land is titled to nys, the original cost of such land and buildings is not recorded on the organization's books as well. Due to the nature of this organization and its relationship with the state, nys typically does not recognize the capitalization of certain leasehold and building improvements as well as certain property and equipment purchased during the course of the year. The organization has the right to use and maintain certain property and equipment, but must return the equipment to the county. However, for those building improvements and structural additions in which the organization dispenses significant expenditures and is the recipient of a direct future economic benefit from these improvements, management has taken the position to capitalize these items. When leasehold/building improvements exceed the organization's capitalization policy of $1,000, these expenditures are amortized over the shorter of their useful life or remaining term of the lease with nys. While there is currently no active lease, the amortization period can be extended past the lease life if renewal of the lease is reasonably assured. With the organization operating under no current lease for approximately 10 years and no future plans to relocate, it is reasonably assured the organization will remain at its current location leasing from nys.”