AUDAIN ART MUSEUM

Notes to Financial Statements (continued)

Year ended September 30, 2022

2. Tangible capital and intangible assets (continued):

(b) The sale of the Vancouver condominium during the year ended September 30, 2021, resulted in $337,500 (comprised of unamortized deferred capital contributions related to the building of $227,952 and the gain on sale of $109,548) in deferred contributions externally restricted for future qualified capital expenditures along with $661,500 being internally restricted by the Board and transferred to establish the Building Fund (note 1(j)). During the year ended September 30, 2022, interest of $5,292 was earned on these restricted assets and was internally restricted by the Board and transferred to the Building Fund As the total sale proceeds of $999,000 plus interest are restricted for specified use, the amount plus interest has been presented as restricted cash on the statement of financial position.

(c) Intangible assets consisting of computer software of $66,215 (2021 - $66,215) is related to the development of a new customer relationship management software which will begin being amortized once the software is available for use. All other computer software included in cost and accumulated amortization have been fully amortized but remain in use.

3. Deferred contributions:

The non-current portion of the deferred contributions are held as part of the restricted cash balance on the statement of financial position.