The Putnam Foundation DBA Timken Museum of Art

“The Foundation has capitalized its works of art since its inception. If purchased, items accessioned into the works of art are capitalized at cost and, if donated, they are capitalized at their appraised or fair value on the accession date, the date on which the item is accepted by the Board of Directors (the Board). Gains or losses on the deaccession of works of art are classified in the statements of activities as with donor restrictions or without donor restrictions depending on donor restrictions, if any, placed on the item at the time of accession. Accession of works of art totaled $-0- and $218,875 for the years ended March 31, 2019 and 2018, respectively. Deaccession of works of art from the collection totaled $-0- and $13,350 during the years ended March 31, 2019 and 2018, respectively, with net proceeds totaling $-0- and $4,128 resulting in a loss on sale of $-0- and $9,223 for the years ended March 31, 2019 and 2018, respectively. Costs incurred in connection with the acquisition and conservation of works of art are expensed in the period incurred. The collection totaled $13,759,622 at March 31, 2019 and 2018.An independent appraisal made during 2015, adjusted for accessions and deaccessions at cost, valued the works of art held by the Foundation at $275,283,000. Subsequent to the issuance of the appraisal report, the museum made acquisitions and received donated works or art totaling in the amount of $1,844,599. Management believes that the value at March 31, 2019 has not declined since the 2015 appraisal.”

“The museum has investment and spending policies for endowment assets that attempt to provide a predictable stream of funding for operations. The museum targets a diversified asset allocation primarily focused on equity and fixed income based investments to achieve long-term objectives with prudent risk constraints.”

“The Foundation is a public charity and is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code and Section 23701(d) of the California Revenue and Taxation Code except on net income derived from unrelated business activities. The Foundations unrelated business activity did not generate taxable income and no tax liability has been recorded at March 31, 2019 and 2018. The Foundation believes that it has appropriate support for any tax positions taken, and as such, does not have any uncertain tax positions that are material to the financial statements. The Foundation is not a private foundation.”

“Special events expense $95100 cost of goods sold $26018”

“Cost of sales $26018 special event expenses $95100”