The University Foundation California State University Chico

“The foundation maintains collections of art. Collection items acquired either through purchase or donation are not capitalized or recognized as revenues or gains provided that such donations are added to collections and held for public exhibition, education or research in furtherance of public service rather than financial gain; are protected, kept unencumbered, cared for, and preserved; and are subject to a policy that requires the proceeds from sales of collection items to be used to acquire other items for collections. Purchases of collections items are recorded as decreases in unrestricted net assets if purchased with unrestricted assets and as decreases in temporarily restricted net assets if purchased with donor-restricted assets. Proceeds from deaccessions or insurance recoveries are reflected in the statements of activities based on the absence or existence and nature of donor imposed restrictions.”

“The university foundation's collections, which are composed mainly of artwork and other display items donated to the university foundation, further enhance california state university, chico's educational mission.”

“Established by philanthropic supporters of the university, endowment funds provide scholarships and awards that help students and faculty achieve their highest and best purpose while at chico state by making college more affordable and increasing the ability of faculty to enrich the learning experience.”

“The foundation accounts for income taxes in accordance with fasb asc 740, income taxes, which clarifies the accounting for uncertainty in income taxes recognized in the foundation's financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Fasb asc 740, income taxes, also provides guidance on derecognition and measurement of a tax position taken or expected to be taken in a tax return. Based on this analysis, a liability is recorded if uncertain tax benefits have been received. The foundation's practice is to recognize interest and penalties, if any related to uncertain tax positions in the tax expense. The foundation delinquently filed forms 926, return by a u.s. Transferor of property to a foreign corporation, with the internal revenue service ("irs") and the california franchise tax board ("ftb") for the 2007-2011 and 2013 tax years and forms 8865, return of u.s. Persons with respect to certain foreign partnerships for the 2010-2012 tax years with the irs (collectively "international information returns"). For the same fiscal years, the foundation delinquently filed unrelated business taxable income ("ubti") tax returns to the irs and the ftb. There are potential penalties for the delinquently filed international information returns. The total maximum irs penalties for the foundation approximate $670,000. The total maximum ftb penalties approximate $635,000. No amount will be due if the foundation can establish reasonable cause existed for the failures to file. The foundation intends to assert the reasonable cause defense and vigorously contest the assertion of any penalties. All delinquent international and ubti returns were filed in april 2017 and the foundation has not received any penalty notices from the irs or ftb at this point.”

“Change in split interest agreement 556,283.”

“Fundraising expenses included on statement of revenue -215,948.”

“Fundraising expenses included on statement of revenue 215,948.”