The FIU Foundation is registered by the State of Florida as a charitable organization and is approved by the U.S. Internal Revenue Service as a tax exempt 501(c)(3) organization. The Foundation maintains its accounting in conformity with Generally Accepted Accounting Principles (GAAP). The year-end financial statements are prepared on the accrual basis of accounting and accordingly reflect all significant receivables, payables and other liabilities. During 1995, the Foundation adopted the provisions of Statement of Financial Accounting Standards (SFAS) No. 116, “Accounting for Contributions Received and Contributions Made” and SFAS No. 117, “Financial Statements of Not-for-Profit Organizations. Revenues, expenses, gains and losses are therefore classified based on the existence or absence of donor-imposed restrictions.
SFAS No. 116 established standards of financial accounting and reporting for contributions received and contributions made. This Statement also established standards for recognizing expirations of restrictions and the recognition of unconditional promises (pledges) and funds held in irrevocable trusts.
SFAS No. 117 established external financial reporting for not-for-profit organizations which includes three basic financial statements and the classification of net assets and revenues, expenses, gains and losses based on the existence or absence of donor-imposed restrictions. Accordingly, the Foundation’s net assets and changes therein are classified and reported as follows:
- Unrestricted – Net assets which are free of donor-imposed restrictions.
- Temporarily Restricted – Net assets whose use is limited by donor-imposed stipulations that either expire by passage of time or that can be fulfilled or removed by actions of the Foundation pursuant to those stipulations.
- Permanently Restricted – Net assets whose use is limited by donor-imposed stipulations that neither expire with the passage of time nor can be fulfilled or otherwise removed by actions of the Foundation.
The Foundation maintained a December 31 fiscal year end through December 31, 1997. During 1998, the Foundation switched to a June 30 fiscal year, causing that year’s fiscal period to be for a shortened 6-month period ending June 30, 1998. The Foundation is audited on an annual basis by an independent Certified Public Accounting (CPA) firm. The CPA firm selected is recommended by the Finance and Audit Committee for approval by the Board of Directors. The Finance and Audit Committee, with Board approval, will determine the contracted period.
On a monthly basis, the Foundation prepares a Statement of Financial Position and a Statement of Activities for the purpose of providing interim financial results to a selected group of University personnel. In addition, the Foundation provides University departments and units with Foundation accounts, on-line access to view the activity (deposits and disbursements) of their accounts. Specific reports related to account activity must be requested in writing to the Foundation Business Office.
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