Colorado Foundation for Water Education 2004-2005

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COLORADO FOUNDATION FOR WATER EDUCATION NOTES TO FINA CIAL STATEMI NTS June 30, 2005 NOTE 1: QHfiAMA= AND HDM&R X0F5KNMCANTACM=NGF o ICIES The Colorado Foundation for Water Education (the "Foundation!) was incorporated on September 23, 2002. The Foundation was established to promote a better understanding of water issues through educational opportunities and resources so Colorado citizens will understand water as a limited resource and will make informed decisions. Standards of Accounting and Financial Reporting The Foundation follows the standards of accounting and financial reporting for non -profit organizations which are in conformity with the recommendations of the American Institute of Certified Public Accountants. The Foundation uses the accrual basis of accounting. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could duffer from those estimates. Inventory Inventories for use and sale are stated at cost, with cast determined by the first in, first -out method. Property and Equipment Property and equipment are recorded at cost. Donated property and equipment are recorded at market value on the date of donation. The Foundation's policy is to capitalize all property and equipment with a useful life of more than one year, and a unit cost of $5,000 or greater. Contributions All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. Amounts received that are designated for future periods or restricted by the donor for specific purposes are reported as temporarily restricted or permanently restricted support that increases those net asset classes. When a temporary restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. An endowment received from the Colorado Water Conservation Board C CWCB ") is the primary support for the Foundation's activities. The Foundation also receives revenue from the sale of the Foundation's educational products and programs. Contributions of equipment and donations of services are recorded at fair market value on the date of donation and are reported in the financial statements as in -kind donations. 14 COLORADO FOUNDATION FOR WAXER EDUbATIDN