2024-02-14T09:45:23-06:00 2023-09-30 PWC US TAX LLP 655 NEW YORK AVE NW SUITE 1100 WASHINGTON DC 20001 990 2022-10-01 201806718 AUBURN RESEARCH & TECHNOLOGY FOUNDATION % MELANIE WRIGHT AUBU 3348447480 570 DEVALL DRIVE SUITE 101 AUBURN AL 36832 DR STEVEN TAYLOR ARTF PRESIDENT 3348444623 2024-02-12 DR STEVEN TAYLOR XXX-XX-XXXX TRAVIS L PATTON P00369623 2054144000 2024-02-12 2 2022 2023-04-26 12:10:37Z DR STEVEN TAYLOR 570 DEVALL DRIVE SUITE 101 AUBURN AL 36832 1937357 false X N/A X 2004 AL ORGANIZED TO HELP DEVELOP AND OPERATE THE AUBURN RESEARCH PARK AND TO ASSIST WITH THE ATTRACTION, DEVELOPMENT, AND COMMERCIALIZATION OF TECHNOLOGY. 17 11 0 0 0 55632 279977 120 181729 27375 1699898 1854230 2161604 1937357 0 83062 0 0 0 0 0 0 0 2146738 1673823 2146738 1756885 14866 180472 15564002 15401521 2683217 2522320 12880785 12879201 X THE AUBURN RESEARCH AND TECHNOLOGY FOUNDATION IS AN INDEPENDENT ALABAMA NONPROFIT CORPORATION ORGANIZED ON AUGUST 24, 2004 TO DEVELOP AND OPERATE THE AUBURN RESEARCH PARK AND TO ASSIST AUBURN UNIVERSITY WITH THE ATTRACTION, DEVELOPMENT AND COMMERCIALIZATION OF TECHNOLOGY. false false 83062 During previous years, ARTF applied for and received a $225,000 grant from Alabama Power for the LAUNCH Innovation Grant Program which provides funding for near commercialization technologies and inventions to become market ready. After a multi-stage compeition, the Foundation awarded $100,000 to a faculty research project. The project is for a working prototype of dry printing and additive nanomanufacturing technology that could enable: 1. On-demand and in-situ generation of various pure nanoparticles (e.g., metals, insulators, semiconductors, superconductors, ceramics, composites, etc.), 2. In-situ and real-time laser sintering of dry nanoparticles jet on various substrates (polyamide, PET, PDMS, paper, metal, ceramic, etc.), with no further post-processing. The remaining $125,000 is restricted for awards to LAUNCH winners in fiscal year 2023 and beyond. In 2023, ARTF distributed $83,062 of the $125,000 restricted in prior years. 9414 43150 ARTF operates an Event Center space for community use. 99368 204727 ARTF leases building within the Research Park as a childcare center for community benefit. 191844 true false false false false false false false false false true false false false true false false true false false false false false false false false false true false true false false false false false false false false false false false false false true false true false true 7 0 true 0 false false false false false false false false false false false false false false false false false X 17 11 false false false false false true false true false false false true true true true true true false false false AL X MELANIE WRIGHT 3348446537 570 DEVALL DRIVE STE 101 AUBURN AL 36832 CHRISTOPHER ROBERTS BOARD MEMBER, Ex Officio 1.0 0.0 X 0 612621 88846 JAMES WEYHENMEYER PRESIDENT Ending 7/13/23 1.0 0.0 X 0 397468 42596 VINI NATHAN BOARD MEMBER 1.0 0.0 X 0 365796 52760 PAUL PATTERSON BOARD MEMBER 1.0 0.0 X 0 324407 48687 STEVEN TAYLOR PRESIDENT eff 7/21/23 1.0 0.0 X X 0 316502 45489 BILL DEAN EXECUTIVE DIRECTOR, Ex Officio 1.0 0.0 X X 0 240131 26677 CARY CHANDLER SENIOR DIRECTOR 1.0 0.0 X X 0 153999 28869 JAMES H SANFORD CHAIRMAN 1.0 0.0 X X 0 0 0 ROBERT W DUMAS BOARD MEMBER 1.0 0.0 X 0 0 0 BILL HAM JR SECRETARY 1.0 0.0 X X 0 0 0 DAVID R THRASHER BOARD MEMBER 1.0 0.0 X 0 0 0 CHRIS CRUMBLY BOARD MEMBER 1.0 0.0 X 0 0 0 GREG BARKER BOARD MEMBER 1.0 0.0 X 0 0 0 THOMAS GOSSOM JR BOARD MEMBER 1.0 0.0 X 0 0 0 PATRICK MURPHY BOARD MEMBER 1.0 0.0 X 0 0 0 JOHN ROCOVICH JR BOARD MEMBER 1.0 0.0 X 0 0 0 RON ANDERS BOARD MEMBER 1.0 0.0 X 0 0 0 LAURA GRILL BOARD MEMBER 1.0 0.0 X 0 0 0 HORACE HORN BOARD MEMBER 1.0 0.0 X 0 0 0 JOHN SMOLA BOARD MEMBER 1.0 0.0 X 0 0 0 MICHEAL DEMAIORIBUS BOARD MEMBER 1.0 0.0 X 0 0 0 0 2410924 333924 0 true true false 0 55632 55632 CONTRACT REVENUE 541610 120 120 120 27375 27375 0 0 1839135 1839135 0 1839135 247877 1591258 0 0 0 0 0 0 0 0 0 0 OTHER INCOME 15095 15095 1937357 247877 1618753 83062 83062 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 197597 197597 30859 30859 18643 5017 13626 0 0 174826 174826 11091 11091 0 0 466635 91194 375441 0 497689 8174 489515 74916 74916 REPAIRS AND MAINTENANCE 143506 2926 140580 OTHER EXPENSES 50706 1471 49235 0 RENT EXPENSE 7355 7355 1756885 191844 1565041 0 X 2656492 2717932 0 0 1560870 1479534 2059225 2375877 0 0 0 0 0 0 0 0 0 0 13021205 4534723 8856901 8486482 0 0 0 0 0 0 0 0 430514 341696 15564002 15401521 17549 28539 0 0 15810 27978 0 0 0 0 0 0 1853426 1672703 540609 490046 255823 303054 2683217 2522320 X 11319874 11399626 1560911 1479575 12880785 12879201 15564002 15401521 X 180472 -182056 X false true X true false X X X 1 AUBURN UNIVERSITY 636000724 5 true 0 0 1 0 0 true false false false false false false false false false false false false false false true true false X SCHEDULE A, PART IV, SECTION D, LINE 2, 3 & SECTION E, LINE 1C Although the Foundation is separate and independent from the University, its mission is to facilitate the acquisition, construction and equipping of a technology and research park on the University's campus in order to create new academic and entrepreneurial opportunities for the University's faculty and students. Consideration received by the University from the Foundation includes the traditional benefits enjoyed by a University from an affiliated research park, including but not limited to, increased exposure for development and commercialization of the University's intellectual property and technologies, increased research opportunities for the University's students and professors, and heightened exposure within the commercial world of the technological campus offerings. Auburn University's Senior Vice President for Research and Economic Development serves as President of the Foundation. The President is a member of the Foundation Board with full voting powers. Contributed services in the amount of approximately $105,631 and $77,166 were recognized by the Foundation during fiscal 2023 and 2022, respectively, related to services provided by the individual serving as the President of the Foundation. The Foundation Board includes members who are also members of the VCOM Board of Directors, University Board of Trustees as well as other University employees. A banking relationship exists between the Foundation and a financial institution whose chairman is a member of the Foundation Board and the University's Board of Trustees. Additionally, the spouse of one board member is also on the board of River Bank & Trust where the loan for Building 7, Building 5 and the furniture loan were obtained. The Foundation and the University entered into an Operating Agreement (the Agreement), which governs the general and administrative and development financial relationships between these two entities. In summary, the Agreement states that in return for certain services and facilities that are within the capability and control of the University, the Foundation will reimburse the University for the cost of such services and facilities. The Foundation makes an annual determination of its allocable share of these costs and records the transaction. As discussed below, unpaid amounts at September 30 are included in "Other payable to Auburn University" on the Statements of Consolidated Financial Position. The Foundation and the University review the Agreement annually and provide an estimate of the maximum consideration to be paid for the upcoming year for approval by the respective boards. The University did not charge the Foundation for any personnel costs in fiscal 2023 and 2022. Personnel costs incurred by the University and not reimbursed by the Foundation were $1,236,659 and $1,069,727 in fiscal 2023 and 2022, respectively. These costs are reflected in the Foundation's financial statements as general and administrative expense and as corresponding contribution revenue without donor restrictions. The Foundation entered into subcontracts with the University to provide services to fulfill the Foundation's sponsored project agreements. The University provides certain operating services to the Foundation. As of September 30, 2023 and 2022, the Foundation owed the University $28,988 and $26,155, respectively, related to these services. All amounts owed to the University are shown in "Other payables to Auburn University" on the Statements of Consolidated Financial Position. The amounts due from the University to the Foundation of $97,849 and $13,749 at September 30, 2023 and 2022, respectively, relate to operating transactions between the University and the Foundation. This amount is included in "Accounts receivable" on the Statements of Consolidated Financial Position. The Foundation held lease agreements with nine university departments in fiscal 2023, whereby the departments leased office space from the Foundation. As leasing tenants, the University departments remit a monthly rental fee to the Foundation in accordance with their lease agreements. ARTF recognized rental income of $744,345 and $590,571 from the University during fiscal years ended September 30, 2023 and 2022, respectively. During fiscal 2018, the University entered into an agreement to lease space in Building 5 and made a prepayment of $245,000. Upon commencement of the lease and occupancy of the facility by the University, for a period of ten years, $24,500 shall be credited and deducted annually from all rent otherwise payable by the University to the Foundation for the lease of space (the "Rent Credit"). This Rent Credit shall serve as a declining credit account in favor of the University against the Prepayment Funds. The University began their lease with the Foundation for Building 5 on September 16, 2020. During fiscal 2023 and 2022, $24,500 of the prepaid rent was recognized as revenue. On September 16, 2020, the Foundation entered into a thirty-year lease agreement to lease space inside Building 5, owned by ARPI. ARTF operates an event center and is the sublessor of caf space inside the new building. Intercompany rental revenue and rental expenses totaled $359,109 and $413,954 in fiscal 2023 and 2022, respectively. Intercompany rental revenue and rental expenses is eliminated during consolidation. 12310283 4409978 7900305 38768 38768 672154 124745 547409 8486482 0 INTEREST PAYABLE 107793 PAYABLE TO AUBURN UNIVERSITY 28988 DEPOSITS 12059 CAPITAL LEASE OBLIGATION 60220 INTERCOMPANY PAYABLE 93994 303054 6617692 1342290 3338045 4680335 1937357 1937357 6398363 1342290 3299188 4641478 1756885 1756885 OTHER REVENUE AND EXPENSES INCLUDED IN FINANCIAL STATEMENTS BUT NOT ON 990 ARTF IS INCLUDED IN CONSOLIDATED, INDEPENDENT AUDITIED FINANCIAL STATEMENTS FOR THE TAX YEAR. INCOME AND EXPENSES NOT REPORTED ON ARTF'S 990 ARE REPORTED ON A SEPERATE 990 FILED FOR AUBURN RESEARCH PARK I (EIN: 83-3566518). true Auburn University Samuel Ginn College of Engineeri Dept of Chemical Engineering c/o X 212 Ross Hall Auburn AL 36849 501(c)(3) 28864 In support of research efforts to manufacture low-cost, long-lasting catalyst membranes for use in green hydrogen production. Auburn University Samuel Ginn College of Engineeri Dept of Chemical Engineering c/o Z 212 Ross Hall Auburn AL 36849 501(c)(3) 43175 In support of research efforts in funding novel process to turn wood into wood pulp more effectively. Forest Products Development Center College of Forestry Wildlife Env c/o Burak Aksoy 602 Duncan Drive Auburn AL 36849 501(c)(3) 11023 In support of reseach efforts with plant-based sustainable barrier coatings and films that are suitable for the food packaging industry to develop grease resistant paper coatings. Schedule I, Part IV In previous years, ARTF applied for and received a $225,000 grant from Alabama Power for the LAUNCH Innovation Grant Program which provides funding for near commercialization technologies and inventions to become market ready. After a multi-stage compeition, the Foundation awarded $100,000 to a faculty research project. The project is for a working prototype of dry printing and additive nanomanufacturing technology that could enable: 1. On-demand and in-situ generation of various pure nanoparticles (e.g., metals, insulators, semiconductors, superconductors, ceramics, composites, etc.), 2. In-situ and real-time laser sintering of dry nanoparticles jet on various substrates (polyamide, PET, PDMS, paper, metal, ceramic, etc.), with no further post-processing. The remaining $125,000 is restricted for awards to LAUNCH winners in fiscal year 2023 and beyond. ARTF monitors progress toward milestones and awards money in increments as those are achieved. In 2023, ARTF distributed $83,062 of the $125,000 restricted in prior years. false false false false false false false false false CHRISTOPHER ROBERTS BOARD MEMBER, Ex Officio 612621 88846 701467 JAMES WEYHENMEYER PRESIDENT Ending 7/13/23 397468 42596 440064 VINI NATHAN BOARD MEMBER 365796 52760 418556 BILL DEAN EXECUTIVE DIRECTOR, Ex Officio 240131 26677 266808 CARY CHANDLER SENIOR DIRECTOR 153999 28869 182868 PAUL PATTERSON BOARD MEMBER 324407 48687 373094 STEVEN TAYLOR PRESIDENT eff 7/21/23 316502 45489 361991 PART III PROGRAM SERVICE ACCOMPLISHMENTS The Auburn Research and Technology Foundation (the Foundation) is an independent Alabama nonprofit corporation organized on August 24, 2004, to develop and operate the Auburn Research Park and to support Auburn University (the University) with the attraction, development, and commercialization of technology. The Foundation's activities are governed by its own Board of Directors (the Foundation Board). The primary role of the Foundation is the development and operation of the Auburn Research Park (The Park). The Park is the result of a partnership between the State of Alabama (the State), the University, and the City of Auburn which contributed $5,000,000 in-kind infrastructure improvements to The Park property. The Park currently consists of seven buildings comprising almost 500,000 square feet of scientific and mixed-use facilities. It seeks to establish an entrepreneurial atmosphere in a business and research environment which fosters creativity and innovation, and embraces collaboration, partnerships, and networking that leads to economic diversification and enhanced economic vitality of the University and the local community, state, and region. On March 1, 2007, for the purpose of making loans and advances, the Board entered into an agreement to lease the site for Building 570 from the University. The Board paid annual rent of $10 to the University under the terms of the lease. The ground lease agreement had an expiration date of January 1, 2025; however, the agreement was terminated on October 8, 2010, the time all obligations due to the Board by the Foundation were paid in full. At that time, the University entered into an agreement with the Foundation where the Foundation leases the site for Building 570 from the University. The Foundation pays annual rental of $1 to the University under the terms of this ground lease. The ground lease agreement expires on March 15, 2057, unless terminated prior to that date. These transactions represent an unconditional promise of the use of a long-lived asset, the leased land. Since the rental payments are below the fair market value of the property, the Foundation recorded a contribution receivable for the difference between the fair rental values of the property, initially calculated using a 7% discount rate, and the stated amount of the lease payments. At the formation of the original lease, the contribution receivable booked was $302,878, net of a discount of $251,740. During fiscal 2011, the interest rate was reevaluated and changed to 5%, and the lease period was extended. An additional contribution receivable of $589,790 and discount of $401,121 were booked in fiscal 2011. An adjustment to the contribution receivable was made in fiscal 2016 to increase total acreage from the original 156 acres to 170.43 acres to include the VCOM acreage (discussed below) in the calculation. As of September 30, 2023, the Foundation has active ground leases comprising approximately 41.34 acres. The offsetting contribution receivable is amortized using the straight-line method over the life of the lease. Amortization related to the lease was $21,243 during fiscal 2023 and 2022. The discount is amortized using the effective interest method. Amortization of the discount was $9,977 and $9,414 during fiscal 2023 and 2022, respectively. On August 30, 2012, the Foundation signed an agreement with the Edward Via College of Osteopathic Medicine (VCOM) in Blacksburg, VA to establish a branch campus to be located within the research park. The Foundation entered into an agreement to lease the site for VCOM from the University on August 9, 2013. The Foundation pays annual rent of $1 to the University under the terms of the lease. The ground lease agreement expires on June 30, 2085, unless terminated prior to that date. This transaction represents an unconditional promise of the use of a long-lived asset, the leased land. Since the rental payments are below the fair market value of the property, the Foundation recorded a contribution receivable in fiscal 2013 for the difference between the fair rental values of the property, calculated using a 5% discount rate, and the stated amount of the lease payments. At the formation of the lease, the contribution receivable booked was $3,035,051, net of a discount of $2,281,201. The offsetting contribution receivable is amortized using the straight-line method over the life of the lease. Amortization related to the lease was $42,812 during fiscal 2023 and 2022. The discount is amortized using the effective interest method. Amortization of the discount was $17,781 and $16,529 during fiscal 2023 and 2022, respectively. On June 12, 2018, for the purpose of constructing Building 7, the Foundation entered into an agreement to lease the site from the University. The Foundation paid annual rent of $1 to the University under the terms of the lease. The ground lease agreement expires on June 12, 2068, unless terminated prior to that date. This transaction represents an unconditional promise of the use of a long-lived asset, the leased land. Since the rental payments are below the fair market value of the property, the Foundation recorded a contribution receivable in fiscal 2019 for the difference between the fair rental values of the property, calculated using a 5% discount rate, and the stated amount of the lease payments. At the formation of the lease, the contribution receivable booked was $1,168,950, net of a discount of $756,344. The offsetting contribution receivable is amortized using the straight-line method over the life of the lease. Amortization related to the lease was $23,379 during fiscal 2023 and 2022. The discount is amortized using the effective interest method. Amortization of the discount was $5,933 and $5,061 during fiscal 2023 and 2022, respectively. On March 15, 2019, for the purpose of constructing Building 5, the Foundation entered into an agreement to lease the site from the University. The Foundation paid annual rent of $1 to the University under the terms of the lease. The ground lease agreement expires on March 15, 2068, unless terminated prior to that date. This transaction represents an unconditional promise of the use of a long-lived asset, the leased land. Since the rental payments are below the fair market value of the property, the Foundation recorded a contribution receivable in fiscal 2019 for the difference between the fair rental values of the property, calculated using a 5% discount rate, and the stated amount of the lease payments. At the formation of the lease, the contribution receivable booked was $760,513, net of a discount of $468,846. The offsetting contribution receivable is amortized using the straight-line method over the life of the lease. Amortization related to the lease was $16,822 during fiscal 2023 and 2022. The discount is amortized using the effective interest method. Amortization of the discount was $3,642 and $2,983 during fiscal 2023 and 2022, respectively. On January 31, 2019, for the purpose of constructing Building 6, the Foundation entered into an agreement to lease the site from the University. Also on January 31, 2019, the Foundation signed an agreement with the East Alabama Health Care Authority in Opelika, AL to establish a medical building to be located on this land. The building was completed and began operations in fiscal 2021. The Foundation paid annual rent of $1 to the University under the terms of the lease. The ground lease agreement expires on December 31, 2117, unless terminated prior to that date. This transaction represents an unconditional promise of the use of a long-lived asset, the leased land. Since the rental payments are below the fair market value of the property, the Foundation recorded a contribution receivable in fiscal 2019 for the difference between the fair rental values of the property, calculated using a 5% discount rate, and the stated amount of the lease payments. At the formation of the lease, the contribution receivable booked was $1,801,214, net of a discount of $1,437,797. The offsetting contribution receivable is amortized using the straight-line method over the life of the lease. Amortization related to the lease was $18,395 during fiscal 2023 and 2022. The discount is amortized using the effective interest method. Amortization of the discount was $3,982 and $3,261 during fiscal 2023 and 2022, respectively. PART VI, SECTION B, LINE 11B 990 is reviewed by key members of management. PART VI, SECTION B, LINE 12C ALL CONFLICTS OF INTEREST OR APPARENT CONFLICTS OF INTEREST OF DIRECTORS ARE TO BE DISCLOSED TO THE CHAIRPERSON OF THE BOARD AND THE EXECUTIVE DIRECTOR. CONFLICTS OR APPARENT CONFLICTS OF ALL OTHERS ACTING FOR OR ON BEHALF OF THE ARTF ARE TO BE DISCLOSED TO THE EXECUTIVE DIRECTOR. VIOLATIONS OF THE POLICY, INCLUDING FAILURE TO DISCLOSE CONFLICTS, MAY RESULT IN TERMINATION OF THE CONFLICTED PERSON. PART VI, SECTION A, LINE 8B THE FOUNDATION DID NOT HAVE ANY COMMITTEES WITH THE AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. PART VI, SECTION C, LINE 19 AUBURN RESEARCH AND TECHNOLOGY FOUNDATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE GENERAL PUBLIC UPON REQUEST. PART XI, LINE 9 Consolidation adjustment pushed down to ARTF FORM 990 PART IX LINE 11G DESCRIPTION:OTHER FEES FOR SERVICES TOTAL FEES:197597 AUBURN UNIVERSITY AUBURN UNIVERSITY AUBURN AL 36849 636000724 PUBLIC UNIV. AL 115 2 NA false AUBURN RESEARCH PARK I 570 DEVALL DRIVE STE 101 AUBURN AL 36832 833566518 Supporting Or AL 501(c)(3) ARTF true false false false true true false false false false true true false false true true false false true true Auburn University d 490045 Note Payable Auburn Research Park I e 7082000 Note Receivable Auburn University j 744345 Rental Income Auburn Research Park I k 359109 Rent Expense Auburn University o 1342290 Personnel Costs