1. Purpose and Significant Accounting Policies
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 field of accounting. 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.
The Organization’s significant accounting policies are as follows:
Net Assets: In the accompanying financial statements, 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 bylaws.
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 $138,530 and $121,553
for the years ended April 30, 1998 and 1997, respectively, furnished by the American Institute of Certified Public Accountants ("AICPA"). 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 is recorded at fair value at the date of
donation. If donors stipulate how long the assets must be used, the contributions are recorded as restricted support. In the absence of such stipulations, contributions of property and equipment are recorded as unrestricted support.
Depreciation: The Organization provides for depreciation of fixed assets over their estimated useful lives on the straight-line basis. The cost of assets retired or sold, together with the related accumulated depreciation, is removed from the accounts and the resulting gain or loss is credited or charged to unrestricted net assets.
Cash and Cash Equivalents: For purposes of determining cash equivalents used in the preparation of the statements of cash flows, the Organization considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents.
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.
Initiation Fees: Initiation fees are recorded as revenue in the period when the fees are due.
Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Certain prior year amounts have been reclassified to conform to the current year presentation.
2. Cash and Cash Equivalents
As of April 30, 1998 and 1997, cash and cash equivalents, consisting of money market accounts, are maintained at Bankers Trust Company, First Southeastern Securities and Smith Barney. Certain accounts at these financial institutions have balances in excess of the United States federally insured limits.
3. Temporarily Restricted Net Assets
Temporarily restricted net assets were received and released from restrictions in fiscal 1998 in fulfillment of the following purposes:
| Year ended | April 30, 1998 | April 30, 1997 |
| Faculty advisor awards | $30,000 | $30,000 |
| Superior chapter awards | 66,000 | 76,000 |
| Total | $96,000 | $106,000 |
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.
5. Year 2000 Consideration (Unaudited)
The Organization has developed a plan to modify its information technology to be ready for the year 2000. The Organization currently expects the project to be substantially complete by early 1999 and does not expect this project to have a significant effect on operations.
