Reformed Presbyterian Minutes of Synod 1997 - Rparchives.org

114 MINUTES OF THE 1997 SYNOD OF THE
Trustees of the Synod of the Reformed Presbyterian Churc
Notes to Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General - The financial statements of the Trustees of the Synod of the Reformed
Presbyterian Church of North America (the Trustees ), a nonprofit corporation
organized in Pennsylvania, have been prepared on the accrual basis of accounting.
Organization Background - The Synod is the highest court in the denomination
known as the Reformed Presbyterian Church of North America. The Trustees
hold title to property and are responsible to the Synod for managing and reporting
on the financialcondition of the denomination. The financial activities are
accomplished through various boards and committees of the Synod.
Congregations and domestic and foreign missions are sanaioned by the Synod
through such boards and six regional Presbyteries. The accompanying financial
statements include the assets, liabilities, net assets and financial activities of the
Trustees and of the Synod's various boards and committees. Although sanaioned
by the Synod, congregations and mission churches (domestic and foreign) of the
Reformed Presbyterian Church of North America do not have financial
accountability to the Trustees. Accordingly, the assets, liabilities, net assets and
financial activities of such organizations are not included in the accompanying
financial statements. Periodically, certain of these assets, to which the Trustees
hold title, are sold. Proceeds from the sale of such assets are recorded at the time
of disposition. Further, funds disbursed in support of domestic and foreign mission
fields are charged to expense in the accompanying financialstatements.
Basis of Presentation - Financial statement presentation follows the
recommendations of the Financial Accounting Standards Board in its Statement of
Financial Accounting Standards (SFAS) No. 117, Financial Statements ofNot-for-
Profit Organizations. Under SFAS No. 117, the Trustees are required to report
information regarding its financial position and activities according to three classes
of net assets: unrestricted net assets, temporarily restricted net assets, and
permanently restricted net assets.
Fund Accounting - The accounts of the Trustees are maintained in accordance
with the principles of fund accounting. Under fund accounting, resources for
various purposes are classified for accounting and reporting purposes into funds
established according to their nature and purpose. Separate accounts are
maintained for each fund; however, in the accompanying financial statements,
funds that have similar characteristics have been combined according to the three
classes of net assets, mentioned above.
Use of Estimates - The preparation of financialstatements in conformity with
generally accepted accounting principles includes the use of estimates that affea