Palm Springs Art Museum

“The museum's board-approved distributions from the endowment funds are used for support of general operations as well as support of specific programs as provided by endowment donors, if applicable.”

“Management believes that the museum has appropriate support for any tax positions taken affecting its annual filing requirements, and as such, does not have any uncertain tax positions that are material to the financial statements. The museum would recognize future accrued interest and penalties related to unrecognized tax benefits and liabilities in income tax expense if such interest and penalties are incurred.”

“Change in value of beneficial interest in charitable trusts -64,708. Special events 476,938.”

“SPECIAL EVENTS 476,938.”

“The museum's collections comprise more than 16,000 works of art including sculptures, paintings, drawings, prints, photographs, ceramics, and contemporary glass; native american baskets, weavings, pottery and artifacts; mesoamerican artifacts; and architectural drawings and archives. In addition, the collections include the stephen willard photography archive and the bill anderson photographic archive, totaling approximately 42,000 images and archival materials. The collections are maintained for public exhibition, education, research, and the furtherance of public service rather than for financial gain. The museum's collections, acquired through donations and purchases, are not recognized as assets in the accompanying financial statements. Purchases of collections are recorded as decreases in the appropriate net asset classification in the year of acquisition. Contributions of collections are not reflected in the financial statements. Proceeds from the sale of art are recorded as increases in the appropriate net asset classification in the year of sale and are reserved for the acquisition of works of art and conservation of the collections' existing works of art. Collections consisted of the following as of june 30, 2023: art $91,669,025; anthropology $1,893,697; reserve $3,459,305; frey house $525,552; library, archives, and other items $7,407,504; items held for deaccession $460,833”

“Collections consist of art objects that are held for educational and curatorial purposes, including public display and research. Each of the items is cataloged, preserved, and cared for, and kept unencumbered. Activities verifying their existence and assessing their condition are performed continuously. Collections acquired either through purchase or donation are not capitalized. The proceeds from deaccession of collections may be used for acquisitions of new collections, or the direct care of existing collections. The museum adheres to the ethical principles and definition of direct care established by the american alliance of museums and considers direct care to entail actions that enhance the life, usefulness, or quality of the collections to ensure they will continue to benefit the public. The museum's collections management policy includes conservation services, archival services, collections care investments identified through a conservation assessment and/or plan, and collections care training for staff and volunteers, as activities that are considered direct care of collections. Purchases of collections are recorded as decreases in net assets without donor restrictions if purchased with assets without donor restrictions and as decreases in net assets with donor restrictions if purchased with donor-restricted assets. Contributions of collections are not recognized in the statement of activities. Proceeds from deaccessions or insurance recoveries are reflected on the statement of activities as nonoperating revenues. The fair market values of the works acquired through contributions were $ 762,000(unaudited) and $2,181,172 (unaudited) during the years ended june 30, 2024 and 2023, respectively. Proceeds from the sale of deaccessioned items were $24.923,fy24 & $ 984,926 deaccessioned sales were $ . Purchases of collections were $1,140,166 and $86,00 during the years ended june 30, 2024 and 2023, respectively.”

“As part of a plan approved by the board in june 2005, works of art not deemed to be strategic were deaccessioned from the collections. It was agreed by the board that deaccessioning proceeds would be credited to the art acquisition account. The board also approved the use of net cash surpluses in the art acquisition account to repay external debt for a limited time, and that the borrowings from the account would be repaid over time. The deaccessioning procedures were discussed with the american association of museums and with the accreditation committee in february 2007, and such practices confirmed by such organizations as being appropriate and consistent with "best practices". Funds were then borrowed from the art acquisition account to repay the museum's external debts. As of june 30, 2024 and 2023, a balance of $544,403 and $ 699,945, respectively remains to be reimbursed to the art acquisition account as funds become available. Commencing in 2007, it was determined by the board that any new deaccessioned funds raised by the museum would be maintained in a segregated fund and would be strictly for the acquisition of works of art. Beginning with the year ended september 30, 2019, the museum has expanded the use of these funds to include the direct care of existing works of art within the collections, as discussed in note 1. As of june 30, 2024, all proceeds from the sale of new deaccessioned art were either expended for the purchase of art, used to maintain existing art, or remain in the segregated fund.”