[1991 Annual Report, Walter Reed Army Institute of Research]

AMERICANS FOR A SOUND AIDS/HIV POLICY
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1991
NOTE I. NATURE OF THE ORGANIZATION
Founded in early 1987, Americans for a Sound AIDS/HIV Policy was established to educate the general
public, medical/public health community, religious and business communities, as well as state and local
elected officials, about the impact of the AIDS/HIV epidemic. Americans for a Sound AIDS/HIV Policy
was incorporated in Washington, D.C. under the applicable provisions of the District of Columbia Nonprofit Corporation Act. The organization is a not-for-profit, voluntary health and welfare agency exempt
from federal income taxes under Section 501 (c) (3) of the Internal Revenue Code.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements have been prepared in accordance with the recommendations of the American
Institute of Certified Public Accountants in its industry audit guide, Audits of Voluntary Health and
Welfare Organizations. The significant accounting policies followed are described below:
Fund Accounting
The current Unrestricted Fund accounts for all resources over which the Board of Directors has discretionary control to use in carrying on the operations of the organization.
The Current Restricted Fund has been established to account for those resources currently available for
use, but expendable only for such purposes specified by the donor.
Donated Materials
Donated property, and other noncash donations are recorded as contributions at their estimated market
value at the date of the donation.
Donated Services
Donated services have not been reflected in the accompanying financial statements since no objective
basis is available to measure the value of such services. Nevertheless, numerous volunteers have donated
significant amounts of their time in the organization's program services. Many of these individuals are
highly trained medical specialists, i.e. neurosurgeons, surgeons, cardiac surgeons, etc. and in management's
judgement, the monetary value of their donated time would be extremely high.
Allocated Expenses
Expenses by function have been allocated among program and supporting services classifications on the
basis of estimates made by the organization's management.
Furniture and Equipment
Furniture and equipment are stated at cost except for donated equipment which is stated at fair market
value at date of receipt. Depreciation is computed on a straight-line basis over the estimated useful lives of
the related assets which is five years.
Mailing List
The mailing list is stated at cost and is being amortized over a ten year period, management's estimate of
its useful life.