Orange County Museum of Art

“In conformity with the practice followed by many museums, art objects purchased by or donated to the museum are not capitalized in the statement of financial position. Collections of art objects are held for public exhibition, education or research; are protected, kept unencumbered and preserved; and are subject to requirements such that proceeds from sales of collection items be used to acquire other items for the collection. Purchased collection items are recorded as decreases in unrestricted net assets in the year in which the items are acquired or in temporarily restricted net assets if the net assets used to purchase the items are restricted by donors. Contributed collection items are excluded from the financial statements. Proceeds from deaccessions or insurance recoveries are reflected as increases in the appropriate net asset classes in the statement of activities. Contributions of donated art are not recognized in the museum's statement of activities.”

“The museum's collection is comprised of over 4,500 works of art. The collection's focus is on modern and contemporary art and includes painting, sculpture, photography, drawing, printmaking, video, digital, and installation art produced during the twentieth and twenty-first centuries.”

“The museum's endowment funds consist of funds functioning as endowment through (a) designation by the board, and (b) donor-restricted endowment funds. Endowment assets include donor-restricted funds that the museum must hold in perpetuity. The museum has adopted investment and spending policies for endowment assets that attempt to preserve the real purchasing power of the endowment fund and to provide relatively predictable and stable stream of current income for annual operations needs.”

“The museum is a section 501(c)(3) organization, exempt from federal income taxes under section (a) of the u.s. Internal revenue code (the "code") and has been classified as an organization that is not a private foundation as defined in section 509(a)(1) of the code. In addition, the state of california has classified the museum as nonprofit in character and as such, it is exempt from payment of income taxes to the state of california. Accordingly, no provision has been made for income taxes in the financial statements. In july 2006, the financial accounting standards board ("fasb") issued financial accounting standards interpretation no. 48 ("fin 48"), accounting for uncertainty in income taxes, now referred to as accounting standards codification topic no. 740 ("asc 740"). Asc 740 clarifies the accounting for uncertainty in income tax positions taken or expected to be taken in tax returns that affect amounts reported in an organization's financial statements in accordance with the accounting for income taxes topic of asc 740 (formerly sfas 109, accounting for income taxes). Asc 740 requires that an organization recognize in the financial statements the impact of the tax position if that position will more likely than not be sustained on audit, based on the technical merits of the position. Asc 740 also provides guidance related to derecognition, classification, interest and penalties, accounting in interim periods and disclosure. During the year, the museum performed an evaluation of uncertain tax positions and did not note any matters that would require recognition in the statement of activities or which may have an effect on its tax-exempt status. The museum recognizes potential accrued interest and penalties related to uncertain tax positions in income tax expense. During the year, the museum did not recognize any amount in potential interest and penalties associated with uncertain tax positions. The following table summarizes the open tax years for each major jurisdiction: jurisdiction open tax years federal 2021 - 2024 california 2020 - 2024”

“Retail cost of goods sold 43,279.”

“Retail cost of goods sold 43,279.”