Tuskegee University

“The university's collections, which were acquired through purchases and contributions since the university's inception, are not recognized as assets on the statement of financial position. Purchases of collection items are recorded as decreases in the unrestricted net assets in the year in which the items are acquired, or as temporary or permanently restricted net assets used to purchase the items are restricted by donors. Proceeds from deaccessions or insurance recoveries are reflected as increases in the appropriate new asset classes. The university's collections are made up of artifacts of historical significanace, scientific specimens, manuscripts, letters, documents, books, and art objects that are held for educational, research, scientific, and cultural purposes. Each of the items is cataloged, preserved, and cared for, and activities verifying their existenece and assessing their condition are performed continuously. The collections are subject to a policy that requires the proceeds from their sales to be used to acquire other items for collections.”

“Endowment funds are used to generate earnings and income to support the scholarships and general operations of the university.”

“The university is exempt from federal income taxes under section 501(a) as an entity described in section 501(c)(3) of the internal revenue code of 1986, as amended. The university is subject to tax on net income derived from unrelated business activities. The university operates the kellogg conference center, which is subject to tax on unrelated business income. For the year ended june 30, 2016, the kellogg conference center incurred a net loss of $1,629,030 (loss of $1,667,216 for the year ended june 30, 2015). Accordingly, no tax liability was incurred or recorded for this year. As of june 30, 2016, the university has a net operating loss carryforward of $21,855,221 to offset future taxable unrelated business income generated by the kellogg conference center ($20,226,191 as of june 30, 2015). As required by internal revenue service regulations, the university annually files form 990, "return of organization exempt from income tax," with the internal revenue service. The university also files form 990t, "exempt organization business income tax return," for the operations of the kellogg conference center. The university follows the accounting guidance for uncertainty in income taxes using the provisions of fasb asc 740, income taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the taxing authorities. Such tax provisions initially and subsequently need to be measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the taxing authority assuming full knowledge of the position and relevant facts. The university believes that it has appropriate support for the income tax positions taken and to be taken on its tax returns and that its accruals for tax liabilities are adequate for all open tax years based on an assessment of many factors, including experience and interpretations of tax laws applied to the facts of each matter. The university has concluded that there are no significant uncertain tax positions requiring disclosure, and there are no material amounts of unrecognized tax benefits.”

“Change in value of split interest agreements 29,507. Scholarships and fellowships -20,656,960. Gw carver foundation investment income 62,969.”

“Scholarships and fellowships 20,656,960.”