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

F •
G •
CHANGES
FUNDS
NOTES TO FINANCIAL STATEMENTS
reach normal retirement age while working for the Institute. The cost of retiree
health care and life insurance benefits is recognized as expense as premiums are
paid. For fiscal year 1993, those costs totalled approximately $173,000.
In December 1990, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 106, "Employers' Accounting for Post-
retirement Benefits Other Than Pensions" ("SFAS 106"). SFAS 106, effective
for fiscal year 1994, will require that the Institute change its method of account-
ing for postretirement health care and life insurance benefits to an accrual basis.
This change in accounting will require the recognition of a transition liability
which represents the actuarial present value of benefits attributed to prior
employee service. The Institute has not yet determined what effect the adoption
of SFAS 106 will have on its financial condition.
IN DEFERRED RESTRICTED REVENUE
Restricted receipts, which are recorded initially as deferred restricted revenue,
are reported as revenues when expended in accordance with the terms of the
restriction or transferred to quasi-endowment funds. Changes in deferred
restricted revenue amounts are as follows:
TOTAL
DEFERRED
RESTRICTED
REVENUE
Balance at June 30, 1992 $1,925,189
Additions:
Contributions, grants, etc. 5,797,500
Net restricted endowment income 1,758,322
Quasi-endowment funds utilized 1,060,104
Total additions 8,615,926
Deductions:
Funds expended from contributions, grants, etc. 4,388,268
Funds expended from restricted endowment 2,818,426
Funds expended for plant assets 402,814
Total deductions 7,609,508
Balance at June 30, 1993 $2,931,607
HELD IN TRUST BY OTHERS
The Institute is the residuary beneficiary of a trust and, upon the death of the
life tenant, will be entitled to receive the corpus thereof. The approximate market
value of the trust's assets, as reported by the administrator of the trust, aggregated
$2,108,468 as of June 30, 1993 and is not included in the accompanying
financial statements.
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