Kenyon College

“For the college's endowment funds, the investment objective is to achieve superior long-term total returns such that the requirements of the annual budget are met while allowing for significant growth, all within the confines of reasonable risk. Expenditures from the endowment fund are used exclusively to further the exempt educational purposes of the college.”

“Bookstore cost of goods sold, which was netted with revenue on line 2d of part viii of form 990 but shown as an expense on financial statements: $1,451,551; change in interest rate swap obligation: $341,854; adjustment for revenue of related organizations included in consolidated financial statements: $4,072,015; loss on early extinguishment of debt: ($3,945,957); total adjustment: $1,919,463.”

“Financial aid expense, which was netted with tuition income on financial statements but shown as an expense in part ix of form 990: $26,829,910.”

“Bookstore cost of goods sold, which was netted with revenue on line 2d of part viii of form 990 but shown as an expense on financial statements: $1,451,551; adjustment for expenses of related organizations included in the consolidated financial statements: $2,425,477; total adjustment: $3,877,028.”

“Financial aid expense, which was netted with tuition income on financial statements but shown as an expense in part ix of form 990: $26,829,910.”

“FEDERAL INCOME TAXES - THE INTERNAL REVENUE SERVICE HAS DETERMINED THAT THE COLLEGE, THE KENYON REVIEW, THE PHILANDER CHASE CORPORATION, AND THE GUND GALLERY ARE EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(a) OF THE INTERNAL REVENUE CODE AS PUBLIC CHARITIES DESCRIBED IN SECTION 501(c)(3); ACCORDINGLY, NO PROVISION FOR FEDERAL INCOME TAXES HAS BEEN MADE IN THE CONSOLIDATED FINANCIAL STATEMENTS. THERE WERE NO UNRECOGNIZED TAX BENEFITS AS OF JUNE 30, 2014. THE INCOME TAX RETURNS FOR ALL ENTITIES REMAIN SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE, AS WELL AS VARIOUS STATE AND LOCAL TAXING AUTHORITIES, GENERALLY FOR THREE YEARS.”

“Collections and works of art - collections are not capitalized under the provisions of asc 958-605, revenue recognition - contributions received. All works of art and collections are held for public exhibition, education, or research; are protected, kept unencumbered, cared for and preserved; and are subject to policies governing their use. Prior to asc 958-605 adoption, the college did capitalize works of art and collections. At june 30, 2014 and 2013, the net book value of these items is $1,862,696 and is reflected in the equipment section of the consolidated statements of financial position.”

“THE MAJORITY OF THE COLLEGE'S COLLECTION ("COLLEGE COLLECTION") OF ART AND ARTIFACTS IS CARED FOR BY THE GRAHAM GUND GALLERY, A SECTION 501(c)(3) SUBSIDIARY OF WHICH THE COLLEGE IS THE SOLE MEMBER. THE GRAHAM GUND GALLERY AND ITS GALLERY COLLECTION PRIORITIZES 20TH - 21ST CENTURY ART IN ITS EXHIBITIONS AND COLLECTING PROGRAM. THE COLLEGE'S COLLECTION OF PRE-20TH CENTURY, ETHNOGRAPHIC, TEACHING AND OTHER COLLECTION OBJECTS ARE MANAGED BY THE GUND GALLERY'S PROFESSIONAL STAFF AND HOUSED IN ITS FACILITY. SOME COLLEGE COLLECTION OBJECTS ARE INSTALLED AND ON VIEW IN COLLEGE BUILDINGS.”