Ohio Wesleyan University

“Conservation easement reporting - the university does not reflect the conservation easement in its balance sheet or revenue and expenses. The value of the easement is immaterial to the university's financial statements.”

“Financial statement footnote for art collection - the university maintains a collection of artwork in its humphreys art hall. Due to the difficulty in establishing a value for collection pieces donated to the university, these assets are not recorded in the consolidated financial statements. Collection purchases are expensed as purchased. The university provides a clean, secure and stable environment for its permanent collections. The artwork is given reasonable care toward its preservation.”

“Museum's permanent collection: - all of our exhibitions are open to the public. Those are mounted in the museum or in either gallery 2001 in beeghly library or the alumni gallery in mowry alumni center. - students regularly use the items on display in feature exhibitions and/or items from the museum's permanent collection for research projects assigned to them by our art history instructor. Other art instructors frequently bring their classes to the museum or to one of the museum's satellite galleries to view and discuss items on display in feature exhibitions mounted at either or both of these locations. - we have a large permanent collection which is housed in the museum's second floor archive area. The items in the collection are secured in a locked and temperature/humidity controlled storage area. All items are stored in a way that assures their safekeeping and preservation for future generations. - we have loaned items from the museum's permanent collection to both public and private museums on several occasions. - the collection is composed primarily of original works on paper. While the collection includes drawings and paintings on paper, by far the largest number of works on paper are prints (lithographs, etchings, intaglio, and screen prints) and photographs. There are a few pieces of ceramics, sculpture, and jewelry in the collection, and at least one painting on canvas. Due to limited storage space and cost of acquiring "one-of-a-kind" objects, in 1972 it was the decision of the members of the fine arts faculty to commence the building of a permanent collection of the original works of art that would be composed primarily of works on paper.”

“Intended use of endowment assets - permanently restricted endowment funds represent funds which are restricted in perpetuity. Distributions from endowment funds are spent in compliance with the donor's restriction applicable to the funds being distributed. Expenditures from other endowment funds are approved by the board of trustees and are spent on activities which further the exempt educational purposes of the university.”

“FIN 48 (ASC 740) FOOTNOTE - FEDERAL INCOME TAX: THE UNIVERSITY IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(c)(3) OF THE INTERNAL REVENUE CODE, EXCEPT ON NET INCOME DERIVED FROM UNRELATED BUSINESS ACTIVITIES. THE UNIVERSITY RECOGNIZES THE TAX BENEFIT FROM AN UNCERTAIN TAX POSITION ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITION WILL BE SUSTAINED ON EXAMINATION BY TAX AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITION. EXAMPLES OF TAX POSITIONS INCLUDE THE TAX-EXEMPT STATUS OF THE UNIVERSITY, THE CONTINUED TAX-EXEMPT STATUS OF BONDS ISSUED BY THE UNIVERSITY AND VARIOUS POSITIONS RELATED TO POTENTIAL SOURCES OF UNRELATED BUSINESS TAXABLE INCOME. THE UNIVERSITY BELIEVES THAT IT HAS APPROPRIATE SUPPORT FOR ANY TAX POSITIONS TAKEN AND, AS SUCH, DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS THAT ARE MATERIAL TO THE CONSOLIDATED FINANCIAL STATEMENTS. AS OF JUNE 30, 2017, THE UNIVERSITY'S INCOME TAX YEARS FROM 2013 AND THEREAFTER REMAIN SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE, AS WELL AS VARIOUS STATE AND LOCAL TAXING AUTHORITIES.”

“Actuarial adjustment of split-interest agreements 73,494. Revenue of affiliates included in consolidated financial statements 214,116.”

“Student financial aid, which was shown as a reduction of revenue on financial statements but as an expense in part ix of form 990 44,140,357. Loss on sale of assets 185,406.”

“Postretirement benefit obligation -2,617,000. Pension-related charges other than net periodic pension cost -355,786. Expenses of affiliates included in consolidated fin.statements 299,998.”

“Student financial aid, which was shown as a reduction of revenue on financial statements but as an expense in part ix of form 990 44,140,357. Rounding adjustment -2.”