Page 42 - RFCUNY Annual Report 2016

Research Foundation of The City University of New York and Related Entities

Notes to Consolidated Financial Statements
Years ended June 30, 2016 and 2015

(10) Property Management Fees
The LLC has a management agreement with a third party to manage and provide leasing services to
the Property through December 31, 2016. Such expenses are included in operating expenses in the
consolidated statements of activities. Additionally, the LLC pays the property manager a commission in
accordance with the terms of the management agreement if the property manager procures a new lease
or an extension, renewal, or expansion of an existing lease for space in the Property during the term of
this agreement, such costs are included in deferred costs on the accompanying consolidated balance
sheets.

(11) Real Estate Tax Exemption
During fiscal years 2016 and 2015, the LLC obtained a real estate tax reduction amounting to $1,505,964
and $1,459,034, respectively, relating to an exemption for the portion of the Property used by CUNY as
a not-for-profit, tax-exempt organization.
(12) Subsequent Events
The Organization evaluated events subsequent to June 30, 2016 and through October 28, 2016, the
date on which the consolidated financial statements were available to be issued, the result of which had
no impact on the Organization’s consolidated financial statements.

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