Note X – Endowments
A template for this note is not available. See “Instructions to preparer:” for various disclosures that may be required.
Instructions to preparer:
Governments may receive endowments that are subject to donor-imposed restrictions. In these cases the following items need to be disclosed:
-
the amount of net appreciation on investments that are available for expenditure authorized by the governing board, and how these amounts are classified within net position on the statement of net position,
-
the state/local law regarding the ability to spend net appreciation on investment, and
-
the policy for authorizing and spending investment income, such as spending rate or total return policy.
Government Accounting Standards Board (GASB) Statement 34, paragraph 121.
Example:
Endowments are provided to the (city/county/district) on a voluntary basis by individuals and private organizations. Permanent endowments require that the principal or corpus of the endowment be retained in perpetuity. If a donor did not provide specific instructions, (e.g., state law, etc.) permits the (city/county/district’s) (legislative body) to authorize to expense the net appreciation of the investments of the endowment funds as discussed below.
Expendable endowments as of December 31, 20 _ :
|
Program A |
$_____ |
|
Program B |
$_____ |
|
__________ |
______ |
|
__________ |
______ |
|
Total |
$_____ |
Nonexpendable endowments as of December 31, 20 _ :
|
Program A |
$_____ |
|
Program B |
$_____ |
|
__________ |
______ |
|
__________ |
______ |
|
Total |
$_____ |