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AUDAIN ART MUSEUM
Notes to Financial Statements (continued)
Year ended September 30, 2022
6. Related party transactions:
(a)
Audain Foundation and Michael Audain:
During the year ended September 30, 2022, the Museum received $13,223 (2021 - $9,560) of donations from Michael Audain and $2,159,261 (2021 - $694,634) of donations from the Audain Foundation, of which Michael Audain, a trustee of the Museum, is the chairman of the board of trustees of the Audain Foundation. The amounts have been recognized in the statement of operations within donations - operations and other, and other donations - art acquisitions, based on donor specified use of funds.
In addition, included within accounts receivable is $192,784 (2021 - nil) due from the Audain Foundation which is predominantly related to the Audain Prize, which is an annual prize worth $100,000 and awarded to a senior British Columbia artist in recognition of their outstanding contributions to the arts. The annual Audain Prize was presented twice during the Museum’s current fiscal year It was awarded in November 2021 after being postponed due to COVID19 and again in September 2022 when it is typically presented The Museum received donations from the Audain Foundation in the amount of $346,780, representing costs associated with the award presentation along with the main prize as well as five travel awards (for each of 2021 and 2022) for art students at British Columbia universities and, in turn, provided grants to the recipients of the awards for the same amount. These amounts are presented on a gross basis in the statement of operations. The Museum also received a management fee of $50,000 from the Foundation for administration and presentation of the prizes.
(b) Audain Art Museum Foundation:
The Foundation was incorporated in November 2013 under the Canada Not-for-Profit Corporations Act and is a registered charity under the Income Tax Act of Canada. The Foundation is a separate legal entity, and its purpose is to receive, hold and invest bequests, donations, funds, and property, the income from which supports the Museum’s mandate. The Museum and the Foundation are related by virtue of the Museum’s economic interest in the Foundation.
During the year ended September 30, 2022, the Museum received $1,275,730 (2021 - $1,109,374) of donations from the Foundation, which includes distributions related to the Audain Art Acquisition Fund.
The Audain Art Acquisition Fund was established November 4, 2022 by way of an endowment through the Audain Foundation. During the year ended September 30, 2022, $82,140 (2021 - $40,240) was received in distributions and $54,570 (2021 - $17,120) is included in art acquisition revenue in the statement of operations.
