Sculpture Milwaukee Inc

“As part of its sculpture milwaukee program, the organization temporarily maintains a collection of sculptures and art objects that are held for a free outdoor exhibition to the public and for educational purposes. The art objects are consigned to and offered for sale by the organization. The organization has hired a curator to ensure that the collection is protected, unencumbered, cared for, and preserved. The organization is entitled to receive a commission in the event of any sale of the object during the consignment term, and it is the policy that commission revenues are to be reinvested in the sculpture milwaukee program. In some instances, the organization invests in the production and fabrication of a new art object for the sculpture milwaukee program, in which it has rights to reimbursement for the fabrication costs incurred and, in some cases, a markup on those costs, if the objects are sold in the future. Costs incurred to produce such art objects are measured at cost and recognized as assets in the period acquired. Proceeds from the sale of the art objects first offset the cost and any additional proceeds recognized as increases in unrestricted net assets on the statemetns of activities. Any additional proceeds from the sale are reinvested in the program. The total production and fabrication costs for works of art that may be recovered upon future sale and are reported in the statement of financial position was $240,180.”

“The organization has implemented accounting for uncertainty in income taxes in accordance with u.s. Gaap. This standard prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and also provides guidance on various related matters such as derecognizing, interest, penalties and disclosures required. Management of the organization evaluates the uncertain tax positions taken, if any, and consults with outside counsel as deemed necessary. The organization recognizes interest and penalties, if any, related to unrecognized tax liabilities in income tax expense. In management's opinion, the organization has not taken any uncertain tax positions, and accordingly, has not reported a corresponding liability in the organization's financial statements.”