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Robert Sterling Clark Foundation, Inc.
Notes to Financial Statements
Year Ended October 31, 1996
Note 1. Organization:
The Robert Sterling Clark Foundation, Inc. (The "Foundation") was incorporated under the laws of the
State of New York as a private foundation. The Foundation was organized to provide grants to charitable
organizations.
Note 2. Summary of Significant Accounting Policies:
Accounting Policy
The Foundation maintains its books and records on the basis of cash receipts and disbursements modified to
include depreciation. Consequently, certain revenue and the related assets are recognized when received rather
than when earned, and certain expenses are recognized when paid rather than when the obligation is incurred.
The accompanying financial statements do not include accruals for income or expenses.
Income Taxes
The Foundation is a charitable organization within the meaning of Section 501 (c) (3) of the Internal Revenue
code (Code). The Foundation is exempt from federal income tax under the Code as a private Foundation but is
subject to federal excise tax on its net investment income. Since the accounts of the Foundation are maintained
on a cash basis, the federal excise tax is charged against income when paid.
Cash and Cash Equivalents
For purposes of the statement of cash flows, the Foundation considers all highly liquid investments with an initial
maturity of three months or less to be cash equivalents.
Note 3. Available for Sale Securities
The Foundation, in following FASB No. 124, has identified all its securities as "available for sale securities".
As such, these securities are stated at fair market value instead of historical cost. Additionally, the securities held
at October 31, 1995 have been restated to reflect fair market value for comparative purposes.