ABC Charter School to Financial Statements June 30, 20XX 2. Summary of Significant Accounting Policies - Continued b) Financial Statement Presentation The School, in accordance with Governmental Accounting Standards (GASB) Statement No. 34 - Basic Financial Statement and Management’s Discussion and – is considered a special purpose Analysis - for State and Local Governments, governmental entity that engages in only business type activities and is not a component unit of another governmental entity. Therefore, the financial statements are prepared using the accrual basis of accounting and all of the activity is recorded in the enterprise fund. Also in accordance with GASB Statement No. 39 Determining Whether Certain the Foundation is considered a component unit of Organizations are Component Units, the School and is presented in the basic financial statements as a discretely presented component unit of the School. The component unit has a June 30 fiscal year end. c) Basis of Accounting The accrual basis of accounting is used for all governmental entities that operate as business type entities. Accordingly revenue is recognized when earned and capital assets and expenditures are recorded when received and incurred, respectively. Pursuant to GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and the School has elected to apply the provisions of all relevant Pronouncements, pronouncements of Financial Accounting Standards Board (FASB) that do not conflict with or contradict GASB pronouncements. d) Tax Status The School was established under a charter granted by DESE and operates as part of the Commonwealth of Massachusetts and is therefore generally exempt from income taxes under Section 115 of the Internal Revenue Code. The Foundation is exempt from Federal income under Section 501(c)(3) of the Internal Revenue Code. The Foundation is also exempt from state incme taxes. Cash and Cash Equivalents For the purpose of the and the the Statement of Net Position Statement of Cash Flows, School considers all short-term investments with an original maturity of three months or less to be cash equivalents. As of June 30, 20XX and 20XX the School held no cash equivalents.
ABC Charter School to Financial Statements June 30, 20XX 2. Summary of Significant Accounting Policies - Continued b) Financial Statement Presentation The School, in accordance with Governmental Accounting Standards (GASB) Statement No. 34 - Basic Financial Statement – and Management’s Discussion and Analysis - for State and Local Governments, is considered a special purpose governmental entity that engages in only business type activities and is not a component unit of another governmental entity. Therefore, the financial statements are prepared using the accrual basis of accounting and all of the activity is recorded in the enterprise fund. Also in accordance with GASB Statement No. 39 Determining Whether Certain Organizations are Component Units, the Foundation is considered a component unit of the School and is presented in the basic financial statements as a discretely presented component unit of the School. The component unit has a June 30 fiscal year end. c) Basis of Accounting The accrual basis of accounting is used for all governmental entities that operate as business type entities. Accordingly revenue is recognized when earned and capital assets and expenditures are recorded when received and incurred, respectively. Pursuant to GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and Pronouncements, the School has elected to apply the provisions of all relevant pronouncements of Financial Accounting Standards Board (FASB) that do not conflict with or contradict GASB pronouncements. d) Tax Status The School was established under a charter granted by DESE and operates as part of the Commonwealth of Massachusetts and is therefore generally exempt from income taxes under Section 115 of the Internal Revenue Code. The Foundation is exempt from Federal income under Section 501(c)(3) of the Internal Revenue Code. The Foundation is also exempt from state incme taxes. Cash and Cash Equivalents For the purpose of the Statement of Net Position and the Statement of Cash Flows, the School considers all short-term investments with an original maturity of three months or less to be cash equivalents. As of June 30, 20XX and 20XX the School held no cash equivalents.
Sample-Single-CU.docx