Belmont University

“The collection consists of 2 yemini scrolls from the mid 19th century (approximately 150-175 years old) that were given to the university 5-6 years ago. They are synagogue torah scrolls, hand-written on parchment. They are stored in an archive room in the library, since they cannot be kept in fidelity hall because of steam heat. Occasionally they are used in classes to show them to students and talk about their characteristics and significance. Three replica statues were purchased by the university and are placed throughout the campus in an effort to help the campus appear as it may have looked back when the mansion was originally built. Additionally, the university purchased several pieces of art work that are placed in the gordon inman building. They were bought to enhance the appearance of the interior, since the building would be used for various gatherings by the president and senior leadership. A majority of the value of the collection lies in the value of the scrolls. In fy14, a new sculpture was commissioned for the troutt theater. (total value of the collection on the books equals $221,650 and the value of the scrolls on the books is $162,500.) added to collections in fy17 was the estate donation of rare and iconic guitars, which are capitalized at the appraised value of the instruments of $9,638,640 on the accession date of october 14, 2016. The guitars are held for public exhibition, education, and research in furtherance of the university's public service. The collection is protected and preserved, and subject to university policy requiring that proceeds of items in the collection sold are to be used to acquire other items for the collection. The collection is part of the university's permanent endowment. Gains or losses on the deaccession of collection items are classified on the statement of activities as permanently restricted support.”

“Deposits held for others are monies held by the University for various clubs and groups, as agency funds. The monies are entrusted to the University for safekeeping and may be used or withdrawn by the depositor at will. Funds may be held on behalf of students, faculty, staff, or organizations.”

“The intended use of endowment funds is to provide student scholarships.”

“The University is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code; accordingly, no provision for income taxes has been made in the accompanying consolidated financial statements. The University is not classified as a private foundation. The University files a Form 990 (Return of Organization Exempt from Income Tax) annually. When these returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the tax position taken or the amount of the position that would ultimately be sustained. Examples of tax positions common to universities include such matters as the following: the tax exempt status of each entity and various positions relative to potential sources of unrelated business income tax ("UBIT"). UBIT is reported on Form 990-T, as appropriate. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes that it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions are not offset or aggregated with other positions. Tax positions that meet the "more likely than not" recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely to be realized on settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above would be reflected as a liability for uncertain tax benefits in the accompanying statements of financial position along with any associated interest and penalties that would be payable to the taxing authorities upon examination. As of May 31, 2017 and 2016, there were no uncertain tax positions identified. The University does not expect the total amount of unrecognized tax benefits to significantly change in the next 12 months. Forms 990 and 990-T filed by the University are subject to examination by the Internal Revenue Service (IRS) up to three years from the extended due date of each return. Management believes the Forms 990 and 990-T have been filed appropriately. Forms 990 and 990-T filed by the University are no longer subject to examination for the fiscal years ended May 31, 2013 and prior. The University would recognize interest and penalties related to unrecognized tax positions in interest and income tax expense, respectively. The University did not recognize or accrue any interest or penalties as of May 31, 2017 and 2016, and for the years then ended.”

“Cost of Goods Sold - 1034257 Change in Value of interest Rate Swaps - 809188 RECLASS OF RENTAL EXPENSE - 518871”

“Scholarships and Fellowships - 53748920 CHANGE IN VALUE OF ANNUITY AGREEMENTS - 292001”

“Cost of Goods Sold - 1034257 RENTAL EXPENSE - 518871”

“Scholarships and Fellowships - 53748920”