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

Revenue Recognitiorn
Unrestricted contributions received for the organization's programs are recognized as income when received. Unless specifically restricted by the donor, all contributions are considered to be available for
unrestricted use.
Amounts received from grants for specific purposes are recognized as income to the extent of related
expenses.
Restricted funds received prior to being expended are reported as a liability on the balance sheet until expended. The restricted contributions are recognized as revenue when the related expenses are incurred.
Sales of various publications including the monthly newsletter are made for a specific suggested contribution. Amounts are recorded as income when received.
Inventory of Publications
Inventory is recorded at cost on a (FIFO) basis.
NOTE 3. RELATED PARTY TRANSACTIONS
In 1988, the organization purchased a mailing list of approximately 200,000 names for $179,000 from an
entity previously owned by a founder of the organization and a current member of the Board of Directors. As of December 31, 1991, $93,800 is owed and is being paid at $1,775 per month. Since the list was
purchased, revenues of approximately $400,000 have been generated from its sale to other entities and in
management's opinion these revenues may exceed $1,000,000 during its estimated life.
To keep overhead at its lowest level, the founders have contributed rent free office space to the organization in real property they own. The organization reimburses the founder a small percentage of utility and
telephone costs. This amounted to approximately $3,500 in 1991.
NOTE 4. GRANT
The organization is currently receiving funds under a grant from The Department of Health and Human
Services which expires February 28, 1995. The total estimated amount of the grant over the five year term
beginning November, 1989 is approximately $400,000 which is to be used for restricted purposes as defined in the agreement. The title of the project is "National AIDS Education Information." The original
grant amount has been increased during the third year of its term from $77,175 to $112,000.
NOTE 5. LOANS PAYABLE
Funds have been borrowed from various individuals who wanted to support the founders in their efforts
to start the organization. The loans are being repaid when funds are available but no specific arrangements exist as to the charging of interest expense or duration of the repayment term.
NOTE 6. ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Accounts payable and accrued expenses include amounts due the Internal Revenue Service for employee
witholding taxes from periods in 1989 through 1991, including penalties. Beginning in January 1992, the
Internal Revenue Service agreed to accept $3,030 per month until the liability is satisfied.
SEE ACCOUNTANT'S REPORT

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