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ANIMAL PROTECTION SOCIETY OF ORANGE COUNTY, INC. <br /> Notes to Financial Statements <br /> June 30,2000 <br /> NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES <br /> Nature of Activities <br /> Animal Protection Society of Orange County, Inc. (APS).is a not-for-profit organization incorporated <br /> under the laws of the state of North Carolina for the purpose of promoting respect for all living <br /> creatures, preventing cruelty to animals and relieving their suffering. The Organization is exempt from <br /> income taxes under Section 501(c)(3) of the Internal Revenue Code and is not classified as a private <br /> foundation. <br /> The Organization receives approximately 35% of its revenue from Orange County, North Carolina to <br /> operate the Orange County Animal Shelter. The Organization provides programs and solicits <br /> contributions primarily to residents of Orange County. The Organization's programs generate <br /> approximately 33%of revenue and the remainder is primarily received as donations. <br /> Description of Program and Supportino Services <br /> The following program and supporting services are included in the accompanying financial <br /> statements: <br /> Orange County Animal Shelter <br /> APS operates an animal shelter for Orange County, North Carolina in facilities it receives <br /> at no cost from Orange County. The fair rental value of the facilities, estimated at <br /> $46,800, is included in revenues and expenses. The animal shelter provides shelter and <br /> care for animals and adoption services. <br /> Chapel Hill Animal Control <br /> An animal control officer serves the community of Chapel Hill, NC. He retrieves animals <br /> found in the community and delivers them to the animal shelter for care. <br /> Sanctuary <br /> APS operates a sanctuary located in Mebane, NC offering various programs to the public <br /> including obedience classes and other programs designed to facilitate the dogthuman <br /> bond. <br /> Rehab Complex <br /> A rehabilitation center located on the sanctuary property accepts injured, sick and <br /> orphaned wildlife and attempts to rehabilitate them for release back into the wild. A clinic <br /> spays/neuters all cats and dogs adopted from the animal shelter and offers low cost <br /> spay/neuter services to the public. <br /> Other Programs <br /> APS also provides rabies clinics, cruelty investigations, animal euthanasia and various <br /> other programs. <br />