Washington County Museum of Fine Arts

“Conservation easement is part of the trustee building committee, executive director and facilities manager responsibility. The museum does not account for the conservation easement in its financial statements.”

“In conformity with the practices followed by most museums, art objects in the permanent collection, which have been purchased or donated since the museums inception, are not recognized as assets in the statement of financial position, as they are held in the public trust and form the core of the museum's public service mission. Purchases of collection items are recorded as decreases in unrestricted net assets in the year in which the items are acquired or as decreases in temporarily restricted net assets if the assets used to purchase the items are restricted by donors. Contributed collection items are not reflected on the financial statements. Proceeds from deaccessions or gains from insurance recoveries are reflected as increases in the appropriate net asset classes.”

“The museum holds fine and decorative arts in the public's trust to fulfill its mission to collect, preserve, interpret, and exhibit art of lasting quality for the citizens of hagerstown, washington county, and the surrounding region.”

“Endowment funds are used for a variety of purposes depending on the nature of the funds as either restricted by the donor for a specific time or purpose, or to be held in perpetuity per a donor's instruction. All funds are used to futher the museum's stated mission.”

“The museum is exempt from federal income taxes under section 501(c)(3) of the internal revenue code. The museum complies with asc 740-10 income taxes, which establishes a threshold for determining when an income tax benefit of a tax position can be recognized. Under asc 740-10, a tax position includes, among other things, (a) a decision not to file a tax return, (b) an allocation or a shift of income between jurisdictions, (c) the characterization of income or a decision to exclude reporting taxable income in a tax return, (d) a decision to classify a transaction, entity, or other position in a tax return as tax exempt, and (e) an entity's status, including its status as a tax-exempt not-for-profit entity. Based on its interpretation of the requirements of asc 740-10, management believes that the museum has no uncertain tax positions that qualify for either recognition or disclosure. Management believes that the museum is no longer subject to income tax examinations for years prior to 2021.”

“COST OF GOODS SOLD”

“COST OF GOODS SOLD”

“Direct expenses related to the gift shop are deducted from revenue on the 990, but included as an expense on the financial statements.”