2016 Studebaker National Museum - Laserfiche WebLink

Home Browse Search

STUDEBAKER NATIONAL MUSEUM, INC. ' Notes to Financial Statements December 31,2016 NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ' Business Activity and Presentation Studebaker National Museum, Inc. (the Museum) operates a historical museum in South Bend, ' Indiana, which provides housing and display, for a collection of Studebaker vehicles, archives, and related items of the Studebaker Company and collection of South Bend artifacts. The Museum receives support and revenue primarily from a management agreement with the City of South Bend, admissions, gifts and grants, special events, and the operation of a gift shop. Method o Accounting Studebaker National Museum, Inc. is accounted for on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Fund Accounting ' To ensure observance, limitations and restrictions placed on the use of resources available to the Museum, the accounts are maintained in accordance with the principles of fund accounting. This is the procedure by which resources for various purposes are classified for accounting and ' reporting purposes into funds established according to their nature and purpose. Net Asset Classes The Museum reports its activities and financial position by the following classes of net assets: ' • Unrestricted net assets are those currently available for use by the Museum. Temporarily restricted net assets are those received with donor stipulations that limit the use of the donated assets. When stipulated time restrictions expire or purpose ' restrictions are accomplished, these net assets are reclassified to unrestricted net assets and reported in the statement of activities and changes in net assets as net assets ' released from restrictions. • Permanently restricted net assets represent interests in assets held by others that are permanently restricted by the donors. Investment earnings available for distribution are ' recorded in unrestricted or temporarily restricted net assets. Functional Allocation offxpenses The costs of providing the various programs and other activities have been summarized on a ' functional basis in the Statements of Activities. Accordingly, certain costs have been allocated between the program and supporting service expense. Consolidation of Variable Interest Entity The Museum has transactions with the Studebaker National Museum Foundation, Inc.,an entity in which it has both a majority voting interest and an economic interest. The financial ' statements of the variable interest entity have not been consolidated with these financial statements. (See auditors' report.) 6