Thomas Jefferson Foundation Inc.

“AFS Footnote 1 - Historic properties and collections: The Foundation has elected not to capitalize its historic properties and collections. These collections are related to Thomas Jefferson and his plantation home, Monticello. The most precious artifact in the collection is the house itself and the surrounding landscape, which were designed by Thomas Jefferson between 1769 and 1809. The curatorial collections chiefly consist of paintings, decorative arts and artifacts, approximately 2,600 of which relate directly to Jefferson and Monticello, and about 1,900 books with titles and editions selected to duplicate Jefferson's original library. About 40 of these volumes are Jefferson's own copies. The Foundation's restoration department is dedicated to the architectural preservation of the house, while the curatorial collections are under the care of a full curatorial department. The Foundation's collections are maintained for public exhibition, education, and research in order to advance understanding of Jefferson and Monticello in furtherance of public service. The Foundation's collections management policy requires that the proceeds from the sale of any artifact from the Foundation's collection would be used to acquire additional artifacts for the collection. The Foundation does not recognize the donations of collection items as contribution income, as the collections are not capitalized.”

“This reflects revised methodology to align the endowment funds reporting to match the foundation's audited financial statements. Adjustments were made in 2015 to reflect the revised methodology of endowment fund reporting. These adjustments are included in line 1b of part v: contributions 2,329,924 adjustments to reflect revised methodology 67,585,162 ----------- total 69,915,086”

“All Endowment investments are classified as noncurrent assets to recognize the Foundation's intent to continually reinvest earnings and preserve principal except to the extent of any annual withdrawals in accordance with the endowment spending policy. The Foundation has a policy of appropriating 5% of the three year trailing average of market values of endowment funds as of the preceding June 30. In establishing this policy, the Foundation considered its investment policy objective of attaining an average real return of 5%. Accordingly, over the long term, the spending policy will maintain the purchasing power of the endowment.”

“The foundation has net operating loss carryforwards totaling more than $3 million, with expirations ranging from 2019 to 2029. A 100% valuation allowance has been recorded against this deferred tax asset because it is uncertain that the carryforwards represents a future tax benefit.”

“Cost of sales 3,658,630 gain on fixed asset disposal 3,500 royalties in cost of sales 388 --------- total 3,662,518”

“Cost of goods sold -3,658,630 unrealized gain on interest rate swap contract 85,477 change in pension liability 63,923 ---------- total -3,509,230”