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

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93 ORANGE COUNTYANIMAL SHELTER A PROGRAM OF ANIMAL PROTECTION SOCIETY OF ORANGE COUNTY, INC. Notes to Financial Statements June 30,2000 NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Activities Orange County Animal Shelter is a program of Animal Protection Society of Orange County, Inc (APS). The Orange County Animal Shelter is committed to providing shelter and care to lost, abandoned and mistreated animals in Orange County. Its primary source of revenue is from Orange County of North Carolina. Animal Protection Society of Orange County, Inc. is a non-profit organization incorporated under the laws of the state of North Carolina. The Organization is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code and is not classified as a private foundation. Basis of Accountinc The financial statements of the Program have been prepared on the modified cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles. Modifications to the cash basis of accounting include recording expenses to be reimbursed as receivables; recording the purchase of property and equipment as assets; and recording depreciation on property and equipment Departure from Modified Cash Basis Interorganization cash transfers are recorded as support from Animal Protection Society, Inc. The effect of recording the cash transfers as support is an increase in revenue. 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. Concentration of Support The Program receives approximately 70% of its annual budget from Orange County of North Carolina.