Chicago Public Library Foundation

“The Foundation has adopted a policy of capitalizing collections at a nominal value in its financial statements. Although the financial statements do not disclose the cumulative value of collections, certain artwork received in 1991 as an unrestricted donation has been cataloged and preserved. Since 2003 the artwork has been displayed, on permanent loan, in the Joan W. and Irving B. Harris Theater for Music and Dance. The Theater carries a $2 million insurance policy on this artwork.”

“The Foundation adopted a spending policy directed at meeting current operational budget requirements. The Foundation's policy has been to expend 4.5% of a four-year rolling average of the market value of the Foundation's investments as of each December 31, as audited. Endowment yields that are in excess of the spending policy are returned to the endowment and reinvested. However, if endowment yields are not sufficient to support the spending policy, the balance is provided from realized capital gains. The difference between the actual yield on endowment investments and the spending rate is reported as a nonoperating excess or deficit.”

“The Foundation follows the accounting standards for contingencies in evaluating uncertain tax positions. The guidance prescribes recognition threshold principles for the financial statement recognition of tax positions taken or expected to be taken on a tax return that are not certain to be realized. No liability has been recognized by the Foundation for uncertain tax positions as of December 31, 2015 and 2014. The Foundation's tax returns are subject to review and examination by federal and state authorities. The tax returns for the current year as well as fiscal years 2012 and thereafter are open to examination by federal and state authorities.”

“In its 2015 audited financial statement the Chicago Public Library Foundation reported gifts in kind, which were otherwise noted in the Chicago Public Librarys records. A user of the foundation's financial statements reviews the total assets and/or net assets to assess the viability of the Foundation. Subsequently, additional information was identified, resulting in a revised method of presentation of a gift in the Foundations tax return. A gift in kind is being reallocated to the Chicago Public Library. The Foundation auditors have found this reallocation to be immaterial.”