Reformed Presbyterian Minutes of Synod 1995 - Rparchives.org

ll0Notes to Financial StatementsMINUTES OF THE SYNOD OF THENOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESGeneral - The financialstatements of the Trustees of the Synod of the ReformedPresbyterian Church of North America (the "Trustees"), a nonprofit corporationorganized in Pennsylvania, have been prepared on the accrual basis of accounting.Basis of Presentation - The Synod is the highest court in the denomination knownas the Reformed Presbyterian Church of North America. The Trustees hold titleto property and are responsible to the Synod for managing and reporting on thefinancial condition of the denomination. The financialactivities are accomplishedthrough various boards and committees of the Synod. Congregations anddomestic and foreign missions are sanctioned by the Synod through such boardsand six regional Presbyteries. The accompanying financialstatements include theassets, liabilities, fund balances and financialactivities of the Trustees and of theSynod's various boards and committees.Although sanctioned by the Synod, congregations and mission churches (domesticand foreign) of the Reformed Presbyterian Church of North America do not havefinancial accountability to the Trustees. Accordingly, the assets, liabilities, fundbalances and financial activities of such organizations are not included in theaccompanying financialstatements, although the missions and congregations andin foreign mission fields. Periodically, certain of these assets, to which theTrustees hold tide, are sold. Proceeds from the sale of such assets are recorded atthe time of disposition. Further, funds disbursed in support of domestic andforeign mission fields are charged to expense in the accompanying financialstatements.Funds - The accounts of the Trustees are classified for accounting purposes intofunds, established according to their nature and purpose. These accounts (orindividual funds) have been grouped in the accompanying financialstatements inaccordance with certain characteristics as explained below.Expendable Funds - operating, consisting of the following:Undesignated funds, representing expendable unrestricted funds which areavailable, at the discretion of the Synod, for support of any operations,functions or other matters.Designated funds, representing expendable unrestricted funds which have beendesignated by the Synod, through the establishment of various boards, forinvestment in and support of a particular purpose or program. Revenuesearned from investment of such funds also are designated for use.Restricted funds which have been designated by donors, grantors or odieroutside parties for support of particular purposes.Property and equipment fund, representing the carrying value of real estate,fixtures and equipment, substantially all of which are designated by the Synod foruse as a theological seminary.