Plains Art Museum

“Footnote from Audited Financial Statements regarding Financial Statement treatment of donated works of art: The Museum does not capitalize donated works of art or recognize them as revenues or gains. Donations need not be recognized if they are added to collections that are held for public exhibition, education, or research in furtherance of public service rather than financial gain; are protected, kept unencumbered, cared for, and preserved; and are subject to a policy that requires the proceeds from sales of collection items to be used to acquire other items for collections.Gifts received in 2014 and 2013 were valued at approximately $6,250 and $275,000, respectively. Collection items are recorded at cost if purchased.”

“The Plains Art Museum's collections consist of 3,904 fine art and ethnographic objects in both the museum's permanent and educational collections. The museum regularly exhibits and interprets objects from its permanent and education collections in one of the museum's primary galleries on a permanent, annual rotating basis. Additionally, temporary and/or traveling exhibitions hosted by the museum are often augmented and greatly enhanced by objects from our permanent and education collections. The museum also provides access to its collections to both scholarly endeavors and the greater public by actively participating with the general public, academia and the greater museum community by lending works and/or entire exhibitions from its collections to appropriate and approved lenders world-wide.”

“The income from the endowment account is to be utilized for the exhibition, development, and curatorial projects that benefit or create opportunities for emerging and mid-career artists, for acquisitions of art by emerging and mid-career artist's for the permanent collection, and for publications and catalogs supporting or documenting exhibitions or contemporary projects by emerging or mid-career artists. The William Randolph Hearst endowment fund income is used for education purposes.”

“The Museum is organized as a North Dakota nonprofit corporation and have been recognized by the Internal Revenue Service (IRS) as exempt from federal income taxes under Section 501(a) of the Internal Revenue Code as organizations described in Section 501(c)(3).The Museum is annually required to file a Return of Organization Exempt from Income Tax (Form 990) with the IRS. In addition, the Museum is subject to income tax on net income that is derived from business activities that are unrelated to their exempt purposes. The Museum files an Exempt Organization Business Income Tax Return (Form 990-T) with the IRS to report its unrelated business taxable income. The Museum believes that it has appropriate support for any tax positions taken affecting its annual filing requirements, and as such, does not have any uncertain tax positions that are material to the financial statements. The entities would recognize future accrued interest and penalties related to unrecognized tax benefits and liabilities in income tax expense if such interest and penalties are incurred. The Museum's Form 990-T and other income tax filings required by state and local tax authorities are no longer subject to tax examination for years before 2011.”

“Investment Management Fees included with Revenue on financials -12,310.”

“Form 990, Part VIII COGS included with Expenses for financials -40,078. Special Event Expenses included with Revenue for Form 990 -38,000.”

“Form 990, Part VIII COGS included with Expenses for financials 40,078. Special Event Expenses included with Revenue for Form 990 38,000.”

“Investment Management Fees included with Revenue on financials 12,310.”