Florida Institute of Technology

“The university has elected to exclude the value of the collections from the consolidated statements of financial position, and the value of donations of collections from revenue in the consolidated statements of activities.”

“Time period clothing, pieces of hand woven textiles, original collage artwork, poetry collection, displays of international art work used to further the understanding of cultural and creative achievements.”

“Endowment spending policy - an annual allocation to the operating fund is calculated as a percentage of the endowment market value. The policy is to transfer 5% of the market value during the subsequent fiscal year by using a moving average, computed on the last three calendar years of endowment market values.”

“The university is a tax-exempt institution under section 501(c)(3) of the internal revenue code. The university is classified as an organization whereby contributions to it qualify for deductions as charitable contributions. Accordingly, no provision for income taxes has been made in the consolidated financial statements. No assessments are outstanding, and the university's management believes that the university has operated in accordance with its tax-exempt status. However, the university does engage in activities that may give rise to unrelated business income tax. As such, the university files an unrelated business income tax return that includes fit aviation, llc and other activities subject to unrelated business income tax. Deferred income taxes are provided on a method whereby deferred tax assets are recognized for temporary differences, which are the differences between the reported amount of assets and liabilities and their tax basis and arise predominantly from net operating losses and the allowance for doubtful accounts receivable. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Measurement of deferred income tax is based on enacted tax rates and laws that will be in effect when the differences are expected to reverse. The university accounts for income taxes in accordance with financial accounting standards board accounting standards codification ("fasb asc") 740, income taxes, which clarifies the accounting and disclosure requirements for uncertainty in tax positions. It requires a two-step approach to evaluate tax positions and determine if they should be recognized in the consolidated financial statements. The two-step approach involves recognizing any tax positions that are more likely than not to occur and then measuring those positions to determine if they are recognizable in the consolidated financial statements. Management regularly reviews and analyzes all tax positions and has determined that no uncertain tax positions requiring recognition have occurred. The university is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The university believes it is no longer subject to income tax examinations for fiscal years prior to 2019.”