Purpose: The National Council of Beta Alpha Psi (the "Organization") is organized and operated for the encouragement and recognition of scholastic and professional excellence in the fields of accounting, finance and information systems. The Organization's objectives are accomplished through the activities of its Chapters. Financial resources to promote these activities are provided by the Chapters and various public and private firms.
Accounting method: The accompanying financial statements are prepared on the accrual basis of accounting.
Use of estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Cash and cash equivalents: Cash and cash equivalents include highly liquid debt instruments purchased with a maturity of three months or less. The Organization maintains its cash and cash equivalents in bank deposit accounts which, at times, may exceed Federally insured limits. At April 30, 2000, the Organization has cash balances in excess of Federally insured limits in the amount of approximately $176,000.
Furniture and equipment: Furniture and equipment are carried at cost less accumulated depreciation which is provided using the straight-line method over the estimated useful lives of the assets ranging from three to ten years.
Investments: The Organization's investments consist of long-term certificates of deposit. These investments are recorded as noncurrent assets and are stated at cost, which approximates fair value.
Unearned revenue: Monies received by the Organization prior to the date of the related Chapter events are deferred until the Chapter activities occur and are completed. Such amounts received but not yet earned are reported as unearned revenue.
Net assets: The Organization's financial resources have been combined into two net asset classes (unrestricted and temporarily restricted) based upon stipulations imposed by donors.
Unrestricted net assets: Unrestricted net assets include expendable resources over which the Organization's Board of Directors has discretionary control and are used to carry out the Organization's operations in accordance with its by-laws.
Temporarily restricted net assets: Temporarily restricted net assets include resources expendable only for those purposes specified by a donor or grantor. The restrictions are satisfied by specific expenditures of the Organization.
Contributed services: The Organization recognizes contribution revenue for certain contributed services received at the fair value of those services. Those services include facilities and organizational support valued at $159,192 and $156,745 for the years ended April 30, 2000 and 1999, respectively, furnished by the American Institute of Certified Public Accountants. In addition, a significant amount of time, for which no value has been assigned as it does not meet the criteria for recognition, was volunteered by professors and students to the activities of the Organization.
Contributed property and equipment: Contributed property and equipment are recorded at fair value at the date of donation. If donors stipulate the use of the assets, the contributions are recorded as restricted support. In the absence of such stipulations, contributions of property and equipment are recorded as unrestricted support.
Initiation fees: Initiation fees are recorded as revenue in the period when the fees are due.
Note 2 — Furniture and equipment:
Furniture and equipment consists of the following:
| | April 30, 2000 | April 30, 1999 |
| Furniture and fixtures | $ 5,629 | $5,629 |
| Computer equipment | 12,568 | 12,568 |
| | 18,197 | 18,197 |
| | | |
| Less accumulated depreciation | 13,185 | 9,557 |
| Totals | $5,012 | $8,640 |
| | ————— | ————— |
Depreciation expense amounted to $3,628 and $3,856 for the years ended April 30, 2000 and 1999, respectively.
Note 3 — Temporarily restricted net assets:
Temporarily restricted net assets were received and released from restrictions in fiscal 2000 and 1999 in fulfillment of the following purposes:
| | April 30, 2000 | April 30, 1999 |
| Faculty advisor awards | $30,000 | $30,000 |
| | | |
| Superior chapter awards | 97,000 | 92,000 |
| Totals | $127,000 | $122,000 |
| | ————— | ————— |
Note 4 — Tax Status:
The Organization is a not-for-profit agency exempt from Federal income tax under Section 501(c)(3) of the Internal Revenue Code and has been classified as a charitable organization under Section 501(c)(3) of the Internal Revenue Code and qualifies for the maximum charitable contribution deduction by donors.
