SAE Foundation Annual Report 2013 - 60

SAE FOUNDATION
Notes to the Financial Statements (Continued)
Note 1 - Summary of Significant Accounting Policies (Continued)
D.

Cash

Substantially all of the Foundation's cash is on deposit at one bank. From time to time,
the balance may be in excess of the Federal Deposit Insurance Corporation (FDIC) insurance
limit.
E.

Pledges Receivable

Unconditional promises to give are recognized as revenues or gains in the period
received as assets, decreases of liabilities, or expenses depending on the form of the
benefits received. Conditional promises to give are recognized when the conditions on
which they depend are substantially met.
Pledges receivable are stated at the amount management expects to collect from
outstanding balances. Management has established an allowance for uncollectible pledges
based on its evaluation of the individual pledges.
F.

Investments

Investments are presented at fair value as measured by quoted market prices. Those
investments received as gifts or donations are recorded at their fair value on the date
received.
Investment activity includes unrealized and realized gains and losses on
investments (net appreciation), interest and dividends.
The Finance Committee of the Board of Directors of SAE has documented an
Investment Policy. Under the policy, investments are held to provide resources needed to
help support SAE programs, and the investment objective is to provide modest growth of
the fund after spending and inflation. Investment vehicles used to achieve the investment
goals over time include equities and fixed income. The strategic allocation is 60% equities,
30% fixed income and 10% alternative investments.
The Foundation's investments are exposed to various risks, such as interest rate,
market and credit risks. Due to the level of risk associated with these investments and the
level of uncertainty related to changes in the value of these investments, it is at least
reasonably possible that changes in the near term could materially affect the amounts
reported in the financial statements.
The Foundation has received contributions that are permanently restricted by the
donors, for the purpose of granting scholarships and awards. The income from certain
permanently restricted contributions is required to be spent in predetermined amounts as
specified by the donor. The income from other permanently restricted donations does not
have specified spending amounts.
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SAE Foundation Annual Report 2013

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