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AUDAIN ART MUSEUM
Notes to Financial Statements (continued)
Year ended September 30, 2022
1. Significant accounting policies
(j) Internally restricted net assets:
(continued):
Funds which have been internally restricted as approved by the Board of Trustees (the “Board”) to be used towards specified purposes are recorded as internally restricted net assets. Transfers are made to and from the internally restricted funds based on approved contributions into or spending out of the funds.
The Building Fund is restricted to be spent on future capital expenditures subject to approval by the Board.
(k) Use of estimates:
The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the year. Items requiring the use of management estimates include the determination of useful lives of capital and tangible assets for purposes of amortization of capital assets and related deferred capital contribution and provisions. Actual results may differ from these estimates.
2. Tangible capital and intangible assets:
(a) The Museum is situated on land leased from the Resort Municipality of Whistler for a nominal amount. The lease expires on July 7, 2212. Upon expiration of the lease, the building and all fixtures become the property of the municipality. The fair value of the lease is not recorded in these financial statements.
The Museum is also subject to the exemption of property taxes as approved by the municipality on an annual basis The value of the exemption provided for the year ended September 30, 2022 was $233,566 (2021 - $216,986). The value of the exemption has not been recognized in these financial statements.
