Report for the Academic Year 1992-1993 - The Institute Libraries ...

Institute for advanced study
NOTES TO FINANCIAL STATEMENTS JUNE 30, 1993
A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Institute for Advanced Study (the "Institute"), an independent, private insti-
tution devoted to the encouragement, support and patronage of learning, was
founded in 1930 as a community of scholars where intellectual inquiry could be
carried out in the most favorable circumstances.
Focused on mathematics and classical studies at the outset, the Institute today
consists of the School of Historical Studies, the School of Mathematics, the
School of Natural Sciences and the School of Social Science. Each School has a
small permanent faculty, and some 160 fellowships are awarded annually to vis-
iting Members from other research institutions and universities throughout the
world.
The objectives of the Institute were described as follows in the Founders' original
letter to the first Trustees: "The primary purpose is the pursuit of advanced
learning and exploration in fields of pure science and high scholarship to the
utmost degree that the facilities of the institution and the ability of the faculty
and students will permit."
Basis of Presentation
The accompanying financial statements are prepared on the accrual basis and are
presented in accordance with recommendations contained in Audits of Certain
Nonprofit Organizations issued by the American Institute of Certified Public
Accountants. Certain prior year amounts presented for comparative purposes
have been reclassified to conform to the current year presentation.
Fund Accounting
The accounts of the Institute are maintained in accordance with the principles of
"fund accounting." This is the procedure by which resources for various pur-
poses are classified for accounting and reporting purposes into funds that are in
accordance with activities or objectives specified. Separate accounts are main-
tained for each fund; however, in the accompanying financial statements, funds
that have similar characteristics have been combined into fund groups.
Fund balances restricted by outside sources are so indicated and are distinguished
from unrestricted funds allocated or designated to specific purposes by action of
the governing board. Externally restricted funds may only be utilized in accord-
ance with the purpose established by the grantor of such funds. In contrast, the
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