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Summary of Accounting Policies
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Organization |
The
Wallace Global Fund (the Fund) is a family foundation whose mission is to
catalyze and leverage critically needed global progress toward an equitable
and environmentally sustainable society. |
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Tax-ExemptStatus |
The
Fund is exempt from federal income tax under section 501(a) of the Internal
Revenue Code (IRC) as an organization described in section 501(c)(3). The Internal Revenue Service has also
determined the Fund to be a private foundation within the meaning of section
509(a) of the IRC. |
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Cash and CashEquivalents |
The
Fund considers cash and all highly liquid investments with a maturity of
three months or less when purchased to be cash equivalents. |
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Investments |
Investments
in marketable securities with readily determinable fair values and all
investments in debt securities are reported at their fair market values in
the accompanying statement of financial position. |
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Deferred Rent
Liabilities |
The
Fund received six months of rent abatement when it signed its office space
lease in May 1997. The total
amount of the abatement of $37,447 will be amortized over the remaining 114
months of the lease term. |
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In
addition, the Fund received $88,216 in build-out credits from the landlord
for the structural improvements to their space. This amount will be amortized over the entire life of the
lease. |
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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 amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements,
and the reported amounts of revenues and expenses during the reporting
period. Actual results could
differ from those estimates. |
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Furniture, Fixtures
and Equipment |
Furniture,
fixtures and equipment are stated at cost. The cost and related accumulated depreciation of assets
retired or otherwise disposed of or sold are removed from the accounts and
any resulting gain or loss is recognized in the statement of activities. Major additions and improvements are
capitalized. Repairs and
maintenance are charged to expense as incurred. |
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The
straight-line method is used to depreciate the cost of furniture, fixtures
and equipment over their estimated useful lives ranging from three to five
years. Office improvements are being amortized on a straight-line basis over
ten years. |
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Depreciation
expense for the years ended December 31, 1999 and 1998 was $36,266 and
$39,868, respectively, and is included in management and general expense in
the accompanying statement of activities. |
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Concentration of
Risk |
Financial
instruments which subject the Fund to concentrations of credit risk consist
principally of marketable debt and equity securities. The Fund places its temporary cash
investments with creditworthy financial institutions. |
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Fair Value of
Financial Instruments |
The
fair value of the marketable securities are estimated based on quoted market
prices for those of similar investments. The carrying amount of the cash and
temporary cash investments approximates fair value because of the short
maturities of those investments. |
See accompanying independent accountants' review report.
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