University of North Texas System Combined Financial Report: 2004 Page: 50 of 77
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UNIVERSITY OF NORTH TEXAS FOUNDATION_ INC_
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2003
NOTE 1 - PURPOSE AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Purpose
The University of North Texas Foundation, Inc. (Foundation) is a nonprofit organization with the
purpose of providing financial support to the University of North Texas. This purpose is
accomplished by the Foundation receiving and managing donations (cash and non-cash) from
individuals and organizations.
The Foundation is a nonprofit organization as described in Section 501(c)(3) of the Internal
Revenue Code and is exempt from federal and state income taxes.
Basis of Presentation
The financial statements have been prepared on the accrual basis of accounting.
Contributions
Contributions are generally temporarily or permanently restricted by the donor to support specific
programs within the University of North Texas. Unconditional promises to give are recorded as
received. Contributions receivable due in the next year are recorded at their net realizable value.
Contributions receivable due in subsequent years are recorded at the present value of their net
realizable value, using interest rates applicable to the years in which the promises are received to
discount the amounts. No allowance for uncollectible promises to give is provided based on
management's evaluation of contributions receivable at year end.
Contributions of cash and other assets are reported as temporarily restricted support if they are
received with donor stipulations that limit the use of the donated assets.
Endowment contributions and investments are permanently restricted by the donor. Investment
earnings available for distribution are recorded in temporarily restricted net assets because of
program restrictions. The portion of the fair value of endowment funds which is below the
endowment fund's historical cost is recorded as a reduction in unrestricted net assets.
Contributions of donated noncash assets are recorded at their fair values in the period received.
Contributions of donated services that create or enhance nonfinancial assets or that require
specialized skills, are provided by individuals possessing those skills, and would typically need to
be purchased if not provided by donation, are recorded at their fair values in the period received.
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.Page 48
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University of North Texas System. University of North Texas System Combined Financial Report: 2004, report, 2004; Denton, Texas. (https://texashistory.unt.edu/ark:/67531/metadc177349/m1/50/: accessed July 18, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Special Collections.