The SEDOL Foundation
2000 Annual Report

The Foundation For The Special Education
District Of Lake County
Notes to Financial Statements

December 31, 1999

1. Organization

The Foundation for the Special Education District of Lake County (SEDOL Foundation) was organized in 1991 as a not-for-profit corporation under the Illinois General Not for Profit Act of 1986.

The Foundation was formed to enhance public awareness and to generate resources to enrich educational, vocational, and social opportunities for children with disabilities.

2. Significant Accounting Policies

Basis of Presentation – Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. Under SFAS No. 117, the Foundation is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets.

Fund Accounting – The foundation maintains its accounts in accordance with the principles of fund accounting. All financial transactions have been recorded on and reported by the following fund groups.

Unrestricted – Unrestricted funds represent resources over which the Board of Trustees has discretionary control and are used to carry out operations of the Foundation in accordance with its bylaws.

Restricted – Restricted funds represent resources where the donor has restricted how gifts of cash or other assets must be used.

Support and Expenses – Contributions received and unconditional promises to give are measured at their fair values and are reported as an increase in net assets. The Foundation reports gifts of cash and other assets as restricted support if they are designated as support for future periods. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to net assets and reported in the statement of activity as net assets released from restrictions. Donor restricted contributions whose restrictions are met in the same reporting period are reported as unrestricted support.

The Foundation reports gifts of goods and equipment as unrestricted support unless explicit donor stipulations specify how the donated assets must be used. For gifts of cash or other assets that must be used to acquire long-lived assets must be maintained, the Foundation reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in service.

Expenses are recorded when incurred in accordance with the accrual basis of accounting.

Donated Services and Facilities – During the year ended December 31, 1999, the value of contributed services meeting the requirements for recognition totaled $19,733. All contributed services were of a professional nature. $15,455 related to special events and $4,278 was a management and general expense. $3,600 was recorded as the value of donated facilities as a management and general expense. Total donated services and facilities in the amount of $23,333 were recorded as revenues for the year ended December 31, 1999. In addition, a substantial number of volunteers have donated significant amounts of their time in the Foundation’s program and fund raising activities, but these services do not meet the criteria for recognition as contributed services under SFAS No. 116.

Allocated Costs – Salary and fringe costs of the executive director have been allocated between special events and to the management and general functional expense categories. Costs of $12,001 were allocated to special events and $18,002 to management and general expenses.

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 these estimates.

Cash and Cash Equivalent – Cash and cash equivalents consist of cash held in checking and money market accounts and certificates of deposit with maturities of less than 90 days. Management believes the foundation is not exposed to any significant credit risk on cash and cash equivalents.

Concentrations of Credit and Market Risk – Financial instruments that potentially expose the Foundation to concentrations of credit and market risk consists primarily of cash equivalent. Cash equivalents are maintained at high-quality financial institutions and credit exposure is limited to any one institution. The Foundation has not experienced any losses on its cash equivalents.

Office Furniture & Equipment – Acquisitions are recorded at cost. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets.

Advertising Costs – Advertising costs are expensed as incurred.

Income Taxes – The Foundation is a nonprofit corporation whose revenue is derived from contributions and other fund-raising activities and is not subject to federal or state income taxes under section 501(c)(3) of the Internal Revenue Service Code and similar state provisions.