BC/EFA Annual Report 2005 - Broadway Cares/Equity Fights AIDS

oadway cares/equity fights aids
notes to
FINANCIAL
STATEMENTS
SEPTEMBER 30, 2005 AND 2004
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
[1] Organization:
Broadway Cares/Equity Fights AIDS, Inc. (the “Organization”) is a not-for-profit entity that raises money to provide grants to (i)
organizations providing assistance for health-care to those individuals in the entertainment industry, who are affected by critical health
issues, including but not limited to HIV/AIDS, and (ii) organizations and programs nationwide and internationally that provide care and
services to people living with HIV/AIDS. Occasionally, the Organization also facilitates the fund-raising capabilities of the theatre
community to address and support an urgent crisis or need, as directed by the Board of Directors.
The Organization is exempt from federal income taxes under Section 501(c)(3) of the U.S. Internal Revenue Code, and from state and
local taxes under comparable laws.
[2] Financial reporting:
(a) Basis of accounting:
The accompanying financial statements of the Organization have been prepared using the accrual basis of accounting and conform to
accounting principles generally accepted in the United States of America as applicable to not-for-profit entities.
(b) Cash equivalents:
For financial-presentation purposes, cash and cash equivalents include cash invested in highly liquid money-market accounts.
(c) Functional allocation of expenses:
The cost of providing the various programs and supporting services has been summarized on a functional basis in the accompanying
statements of activities. Accordingly, certain costs have been allocated among the programs and supporting services in reasonable
ratios determined by management.
(d) Use of estimates:
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses. Actual results could differ from
those estimates.
(e) Net assets:
Unrestricted net assets represent those resources for which there are no donor restrictions as to their use. Temporarily restricted
contributions, the requirements of which are met in the year of donation, are reported as unrestricted.
[3] Property and equipment:
Property and equipment are reported at their costs at the dates of acquisition or at their fair values at the dates of donation. Depreciation
of furniture and equipment is provided using the straight-line method over estimated useful lives of five years, and leasehold
improvements are amortized using the straight-line method over the term of the underlying lease.
[4] Inventory:
Inventory consists of merchandise available for sale and is valued at the lower of cost or market value. Certain items have
been contributed to inventory and have been recorded at their approximate fair values at the dates of contribution. Included
in inventory are original, one-of-a-kind toy bears, each of which is a designer-costumed, collectible “Broadway Bear” that is
to be offered at auction during the next fiscal year.
notes to financial statements
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