Agricultural Research Foundation

“Form 990 will be sent to all board directors to review before filing.”

“The conflict of interest policy is reviewed and signed by each director and staff annually.”

“Personnel committee review, evaluate executive director's performance and propose compensation, then recommend to the board of directors for approval. There is no compensation paid to any other officers or directors.”

“The financial statements are made available to the public via the organization's website. The governing documents and the conflict of interest policy is not made available to the public.”

“Cummulative effect on revenues from acctg method change-receivables 1,616,662. Cummulative effect on revenues from acctg method change-deferred income -5,787,578. Cummulative effect on expenses from acctg method change-payables -6,112,119.”

“The organization changed its tax accounting method from the cash basis to the accrual basis and filed a form 3115 under the automatic change procedures as required. The organization has a section 481(a) adjustment that is required to reflect the cummulative adjustment to revenues and expenses as of 7/1/2013 from changing to the accrual method of accounting as of that date. Generally, the irs requires that this 481(a) adjustment be reflected in the net income of the taxpayer, either in the year of change if there is a negative adjustment or over a 4 year period if there is a positive adjustment. The orgnization's sec. 481(a) net adjustment is negative and therefore is reportable in the 6/2014 year of change. Since the organization does not have any unrelated business income and does not calculate taxable income, and since this form 990 is an information return, the organization has reflected the negative sec. 481(a) adjustment as a change in net assets on page 12 of the 990 rather than running it through the statement of revenues and expenses on pages 9 and 10 of the form 990. This allows the organization to more accurately report its revenues and expenses for the current tax year ended 6/30/2014 on the accrual method for form 990 information reporting purposes without distorting the results by posting a cummulative adjustment that has no impact on the calculation of income taxes.”

“There has been no change in either the oversight process or the selection process during the tax year.”