Orange County NC Website
Browse       Search
i <br /> r <br /> 7 <br /> THE BOTANICAL GARDEN FOUNDATION, INC. <br /> NOTES TO FINANCIAL STATEMENTS <br /> Page 1 of 13 <br /> NATURE OF ACTIVITIES <br /> The Botanical Garden Foundation, Inc., (the Foundation) was incorporated in 1966 as a <br /> nonprofit corporation to receive funds and hold land for the support of the North Carolina <br /> Botanical Garden, a department of the University of North Carolina at Chapel Hill (the <br /> University), in carrying out its objectives of conservation, scientific investigation, teaching, <br /> public recreation, and the accumulation and dissemination of knowledge of the natural <br /> heritage of North Carolina and the southeastern United States. <br /> SIGNIFICANT ACCOUNTING POLICIES <br /> A. Basis of Accounting. <br /> The Foundation's financial statements are presented on the accrual basis of accounting in <br /> conformity with accounting principles generally accepted in the United States of America <br /> (U.S. GAAP), which require the use of certain estimates made by the Foundation's <br /> management. Accordingly, revenues are recognized when earned, and expenses are <br /> recognized when the obligation is incurred. <br /> The Foundation reports gifts of cash and other assets as restricted support if they are <br /> received with donor stipulations that limit the use of the donated assets. When a donor <br /> restriction expires, that is, when a stipulated time restriction ends or purpose restriction is <br /> accomplished, temporarily restricted net assets are reclassified to unrestricted net assets <br /> and reported in the statement of activities as net assets released from restrictions. <br /> B. Cash and Cash Equivalents. <br /> Cash and cash equivalents include all highly liquid short-term investments with an <br /> original maturity of three months or less. <br /> C. Investments. <br /> Investments in marketable securities are stated at their fair market value based on readily <br /> available published fair market values. Donated securities are recorded at their fair <br /> market value at the date of gift. <br /> D. Accounts Receivable. <br /> The Foundation records accounts receivable at their net realizable value, and provides an <br /> allowance for doubtful accounts equal to the estimated losses that are expected to be <br /> incurred in their collection. The allowance is based on historical collection experience <br /> and a review of the current status of the existing receivables. As of June 30, 2011 and <br /> 2010,all receivables were deemed collectible by management. <br />