Reformed Presbyterian Minutes of Synod 1993

REFORMED PRESBYTERIAN CHURCH 105SWARTC, IZENSON 9 ASSOCIATES, ti.Trustees of the Synod of the ReformedPresbyterian Church of North AmericaNOTES TO FINANCIAL STATEMENTS (CONTINUED)NOTE 1 - SUfflART OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)Cash and Investments - The cash and investment amounts for all funds of theTrustees are commingled and are allocated for financial reporting purposesbased on assets (other than cash and investments), liabilities and fundbalance. Investments are recorded at the lover of cost (or fair marketvalue at the date of gift) or market. Net realized gain or loss on thedisposition of investments is the difference between the proceeds receivedand the average cost of investments sold.Substantially all investments are pooled and allocation of income (ordinarilyincome and gains and losses upon sale or other disposition of investments) tcthe various funds is accomplished using the market value unit method. Substantiallyall ordinary income from investments of endowment funds is restrictedfor support of particular purposes. These purposes are usuallybroad enough to be encompassed within one of the designated boards of theSynod.Other Hatters - Inventories (principally religious publications) are carriedat the lower of average cost or market.Contributions received during early January from congregations and individualsare recorded as receivables when such amounts relate to the prior year'sbudget. Such contributions are recorded as expendable operating funds,unrestricted.Advances made to eligible seminary students for payment of tuition, summertraining fees and living expenses (deferred student aid receivable) arerecorded as a deferred charge and are amortized to expense, usually over aperiod of five years from the date that the graduate seminarian beginsservice for the Synod. Repayment of advances must be lade only If thestudent or graduate does not provide service to the Synod. An allowance foruncollectible student aid has been established for potentially uncollectibleamounts,NOTE 2 - CASH AND INVESTMENTSThe market values of cash and investments by fund group are as follows atDecember 31, 1992 and 1991: