Reformed Presbyterian Minutes of Synod 1995 - Rparchives.org

REFORMED PRESBYTERIAN CHURCHNonexpendable funds, consisting of the following:UiEndowment funds (including term endowments) that are subject to restrictionsof gift instruments or of other means of conveyance requiring in perpetuity, oruntil the occurrence of some remote event, that the principal be invested andonly the income used.Annuity and life income funds that are subject to agreements whereby assetsare made available to the Trustees on the condition that the Trustees be boundto pay to the donor or other designated person or organization a stipulatedamount or the income earned of fund assets for a period of time specified inthe agreements. The balances in such funds are reported as deferred restrictedamounts and any excesses of income over required disbursements are generallyreported as unrestricted income. Under the terms of certain agreements,denomination-related organizations have directed die Trustees to reinvestincome earned on fund assets to which they are otherwise entided to receive.The total amount of such income reinvested is reported as payable todenomination-related organizadons.Custodian funds represent funds received by the Trustees from congregations,Presbyteries, and other denomination-related organizadons which are investedfor the benefit of, and are returnable upon request to, such sources. Suchfunds are reported as either payable to denomination-related organizations oras revocable trusts.Expendable Operating Restricted Resources - Operating funds which have beenrestricted by the donor, grantor or other outside party for particular operatingpurposes are deemed to be earned and reported as revenues of expendableoperating restricted funds to the extent the Trustees have incurred expenditures incompliance with the specific restrictions. Amounts received but not yet earnedare reported as deferred restricted amounts.Property and Equipment Land, buildings and improvements, and furniture,fixtures and equipment are carried at cost or estimated fair value at the date ofgift. Proceeds from the sale of fixedassets are transferred to expendable operatingunrestricted funds. Depreciation is provided over the estimated useful lives of therespective assets on a straight-line basis.Cash and Investments - The cash and investment amounts for all funds of theTrustees are commingled and are allocated for financialreporting purposes basedon assets (other than cash and investments), liabilities and fund balance.Investments are recorded at the lower of cost (or fair market value at the date ofgift) or market. Net realized gain or loss on the disposition of investments is thedifference between the proceeds received and the average cost of investmentssold.Substantially all investments are pooled and allocation of income (ordinarilyincome and gains and losses upon sale or other disposition of investments) to thevarious funds is accomplished using the market value unit method. Substantiallyall ordinary income from investments of endowment funds is restricted forsupport of particular purposes. These purposes are usually broad enough to beencompassed widiin one of the designated boards of the Synod.