Notes to the Financial Statements April 30, 2025
1. General Information and Summary of Significant Accounting Policies
Organization – The Outdoor Power Equipment Institute, Inc. (OPEI) was incorporated in 1952 in the State of Delaware. OPEI’s purpose is to promote the outdoor power equipment industry by undertaking activities that can be pursued more effectively by an association than by individual members. OPEI serves as an industry advocate on behalf of its members. Basis of presentation – OPEI’s financial statements are prepared on the accrual basis of accounting and in accordance with FASB ASC 958, Not-for- Profit Entities . Property and equipment – Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives ranging from 3 to 35 years. OPEI/EXPO has a capitalization threshold of $1,000. Income taxes – OPEI/EXPO is exempt from federal income taxes under Section 501(c)(6) of the Internal Revenue Code. The association has chosen to pay proxy taxes on lobbying activities in lieu of disclosing to its membership the percentage of dues that is to be excluded as a deduction on the members’ tax returns. Use of estimates – The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Net asset classification – The net assets reported include unrestricted revenue and dues received without restrictions. These net assets are available for the operations of OPEI. OPEI Building In August 2017, OPEI purchased a new office condominium. The purchase price was $400 per square foot for approximately 8,751 gross square feet for a price of $3,675,400 including 7 parking spaces. In January 2018, OPEI purchased additional condominium space for $1,007,406 less a credit of $17,500 which also included the remaining 5 parking spaces. Overall, OPEI has 83% ownership in the building. The building will be depreciated over 35 years less a $1,523,544 land value. In October 2017, OPEI sold condominium office space for a net gain on the sale of $1,223,553.
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