Desert Botanical Garden Inc

“Collections include the garden's library and living plant collection, which are on display for the general public. These collection items are not capitalized by the garden. Costs of purchasing collection items are included as a change in net assets without donor restrictions in program expense in the accompanying consolidated statement of activities and change in net assets. During the year ended september 30, 2019, purchased acquisitions and de-accessions of collection items were not significant.”

“Collections include the garden's library and living plant collection, which are on display for the general public. These collection items are not capitalized by the garden. The garden's library consists of over 500 botanical periodicals and over 9,700 rare books, including floristic, ecological and horticultural works that relate to the deserts of the world. The library also includes materials on botanical illustration, plant taxonomy and nomenclature, edible and useful plants, rare and endangered plants, and desert ecology and conservation. The living plant collection consists of plants that are rare and difficult to replace. The garden employs horticulturists to ensure that the collection items are preserved and protected. Based on an independent study conducted in 2005 by an advisor from arizona state university, a value of $20 was estimated for each unprocessed herbarium specimen and a value of $35 was estimated for each processed herbarium specimen. Adjusting these amounts in 2019 for the annual consumer price index ("cpi"), the garden estimates that the value of each unprocessed specimen is approximately $26 and the processed specimen value is approximately $45, for an estimated total of herbarium specimens in the approximate range of $4,219,000 to $4,271,000. In conformity with the practice followed by many gardens, specimens contributed to the garden are not included in the accompanying consolidated financial statements.”

“The garden's endowment consists of funds established for the future prosperity of the garden. The endowment includes only donor-restricted endowment funds - held in perpetuity. It is held and administered by desert botanical garden foundation, a related supporting organization.”

“Desert botanical garden (dbg) qualifies as a tax-exempt organization under section 501(c)(3) of the internal revenue code ("irc") and, accordingly, there is no provision for income taxes. In addition, dbg qualifies for the charitable contribution deduction under section 170 of the code and has been classified as an organization that is not a private foundation. Dbg agave is a disregarded entity for tax purposes. Income determined to be unrelated business taxable income would be taxable. Dbg files an information return in the u.s. Federal jurisdiction and in certain state and local jurisdictions. As of september 30, 2019, the u.s. Federal information return for years ended prior to september 30, 2015 and state returns for years ended prior to september 30, 2015 were closed to assessment. Interest and penalties, if any, are accrued as a component of administration expenses when assessed. The garden accounts for uncertain tax positions in accordance with the provisions of fasb asc 740, income taxes by applying a more-likely-than-not threshold to the recognition and de-recognition of uncertain tax positions in earnings in the year of such change. The garden evaluates potential uncertain tax positions, if any, on a continual basis through review of their policies and procedures, review of their regular tax filings, and discussions with outside experts. The garden has identified its status as an exempt organization as a tax position; however, the garden has determined that such tax position does not result in an uncertainty that requires recognition.”

“Revenue reported by desert botanical garden foundation 379,758. Eliminations -373,381. Change in beneficial interest in net assets of dbg foundation -226,619.”

“Loss on disposal of property and equipment -125,783.”

“Expenses reported by desert botanical garden foundation 606,377. Eliminations -600,000.”

“At october 1, 2018, the endowment funds reported were overstated by $359,278. Designated assets at the beginning of the year should have reflected $16,649,322 in column a, line 1a. To correct the endowment fund balance at september 30, 2019, current year administrative expenses have been increased by $359,278 to reduce the overstatement of the funds' balance at the beginning of the year.”