Agenda - 10-01-2002-10a - Laserfiche WebLink

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'53 ANIMAL PROTECTION SOCIETY OF ORANGE COUNTY, INC. Notes to Financial Statements June 30,2000 NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Management and General ' This category includes the functions necessary to maintain an equitable employment Program; ensure an adequate working environment provide coordination and articulation of the Organization's program strategy, assure proper administrative functioning of the Board of Directors; maintain competent legal services for the program administration of the Organization; and manage the financial and budgetary responsibilities of the Organization. iFund-raising The fund-raising function provides the structure necessary to encourage and secure private financial support from individuals, foundations and corporations. Basis of Acoountina The financial statements of the Organization have been prepared on the modified cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting as receivables; recording nventtoory as basis n asset records g include the purchase of expenses perty and equip equipment as assets;and recording depreciation on property and equipment. Financial Statement Presentation The financial statements are presented in accordance with Statement of Financial Accounting Standards (SFAS) No. 117, `Financial Statements of Not-for-profit Organizations." Under SFAS No. _ 117, the Organization is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets and permanently restricted net assets. Restricted and Unrestricted Revenue Contributions that are restricted•by the donor are reported as increases in unrestricted net assets if the restrictions expire (that is, when a stipulated time restriction ends or purpose restriction is accomplished) in the reporting period in which the revenue is recognized. All other donor-restricted contributions are reported as increases in temporarily or permanently restricted net assets, depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statement of Activities as net assets released from restrictions. The Organization reports gifts of land, buildings, and equipment as unrestricted support unless explicit donor stipulations specify how the donated assets must be used. Gifts of long-lived assets With explicit restrictions that specify how the assets are to be used and gifts of cash or other assets that must be used to acquire long-lived assets are reported as restricted support Absent explicit donor stipulations about how long those long-lived assets must be maintained, the Organization reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in service. 0