COLLEGE OF THE ATLANTIC p^,^^ 1 of 2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
JUNE 30, 1986
The significant accounting policies followed by the College of the Atlantic
are described below to enhance the usefulness of the financial statements to thP
reader.
Accrual Basis
The financial statements of the College of the Atlantic have been prppared on
the accrual basis. The statement of operating and plant revenues, exppnditures
and other changes is a statement 6f financial activities of this fund for the' '
current reporting period.
Fund Accounting
In order to ensure observance of limitations and restrictions placed on the
use of the resources available to the College, the accounts of the College 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 that are in accordance with activities or
objectives specified.
Income Recognition-Restricted Current Funds
Restricted current contributions and grants are recognized as revenues durinq
the same period in which costs related to these revenues are incurred.
HORTON. MCFARLAND * VEY3EY • CERTIFIED PUBL.C ACCOUNTANTS • EULSWORTH. MAINE 0^605
COLLEGE OF THE ATLANTIC Page 2 of 2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
JUNE 30, 1985
Depreciation
The College follows the policy of establishing a provision for annual
amounts of depreciation which allocates the cost of the plant, property, and
equipment over its estimated useful life. The ranges of estimated useful lives
and methods of depreciation used are:
Years Method
3 Straight Line
Straight Line
Straight Line
Straight Line
10 Straight Line
The cost, accumulated depreciation and book value of the plant, property
and equipment are:
Buildings & Improvements
33 1/
Library Books
8
Furniture
10
Vehicles
4
Boats
5 -
Accumulated
Book
Cost
Depreciation
Value
Land
160,000.00
160,000.00
Depreciable Assets
Buildings
Turrets
597,800.00
131,100.00
466,700.00
Seafox Dormitory
96,800.00
30,350.00
66,450.00
Science Laboratory
975,000.00
29,250.00
945,750.00
Other Buildings & Util
ities
339,400.00
18,500.00
320,900.00
Ryle Improvements
23,000.00
3,900.00
19,100.00
2,032,000.00
213,100.00
1,818,900.00
Furniture & Equipment
233,450.00
81,700.00
151,750.00
Library Collection
173,000.00
47,750.00
125,250.00
Boats
74,500.00
62,650.00
11,850.00
Vehicles
18,500.00
5,700.00
12,800.00
Total 2,531,450.00 410,900.00 2,120,550.00
Total Plant, Property, & Equipment 2,691,450.00 410,900.00 2,280,550.00
HORTON. MCFARLAND » VEYSEY • CERTIFIED PUBLIC ACCOUNTANTS • ELLSWORTH. MAINE 0480S
COLLEGE OF THE ATLANTIC
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1986
Note 1: Contributions Receivable
Contributions receivable represent two $5,000 contributions that
were received the first week of July and a $100,000 pledge which the donor
has specified to be for the 1985-86 year.
Note 2: Non-Interest Bearing Loans - Trustees
Non-interest bearing loans - trustees consist of two loans, one for
$40,000 which is being repaid at a rate of $20,000 per year and another for
$5,000.
^°^^ ^' Mortgages Payable - Farmers Home Administration - Dormitories (Plant Fund)
These 5% mortgages are owed to the Farmers Home Administration and are
being paid monthly. $115,489.99 is the amount due on the Seafox Dormitory
and $88,386.66 is the amount due on the dormitory portion of the Turrets
building.
Note 4: Notes Payable - Trustee (Plant Fund)
This $300,000 non-interest bearing note is due 90 days after the date
of the payee's death, but this note shall be repayable from and only from
grants or distributions to the College by a specified foundation. The only
exception to this repayment plan is that the note will become due irrmediately
if the College becomes insolvent.
HORTON. MCFARLAND 8. VEYSEY • CERTIFIED PUBLIC ACCOUNTANTS • ELLSWORTH. MAINE
COLLEGE OF THE ATLANTIC
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1986
Note 5: Seven Year Trust
In the 1979 - 80 year, a number of individuals contributed funds to
the College's seven year trust. These individuals agreed to have
approximately one half of their endowment contributions credited to
Operations and the balance invested. The earnings from this trust fund
are to be added to the fund balance until the fund has reached $98,000.
Note 6: Pledges - Phoenix Fund
Pledges totaling $297,000 restricted to the Phoenix Fund are due to
be collected over the next two fiscal years. It is not practicable to
estimate the net realizable value of such pledges.
Note 7: Subsequent Event
On July 31, 1986, the College received $400,000 from the Pew
Foundation toward the construction costs of the Science Laboratory
Building. This $400,000 was deposited in the Phoenix Fund accounts.
Note 8: Assets Held for Resale
In the 1985-86 year the College received an art collection valued
at $25,900. $12,900 of this figure has been shown as a transfer to the
plant fund and $13,000 remains in the Operating Fund as contributed assets
held for resale. The College feels that $12,900 of this collection will
be used in future new buildings; therefore, this amount was transferred
to the Plant Fund.
Note 9: Note Payable Endowment Fund (Non-Interest Bearing)
The Plant Fund owes the Endowment Fund $980,000 in non- interest
bearing notes. The board has authorized this amount to be increased
$1,000,000.
NORTON. MCFARLAND & VEYSEY • CERTIFIED PUBLIC ACCOUNTANTS • ELLSWORTH. MAINE 0480S
APPENDIX F
COLLEGE OF THE ATLANTIC
1987-88 Operating Budget
Income
Tui ti on
Fees and Miscellaneous
Dorms and Food Service
Education Programs
Endowment Income
Federal Grants - Student Aid
- Other
Annual Giving - Trustees
— Non— Trustee
Private Grants
jN'atural Histcrv l^useum
Phoenix Campaign
Amount
:|:l, 166-250
34 , 500
100,000
1 75 , 000
60 , 000
150,000
15,000
519,000
240,000
18,500
30 , COO
115, 000
*2,62.
COLLEGE OF THE ATLANTIC
1987-88 Operating Budget
Expense
Salaries and Fringe
Educational Program:
Undergraduate Studies
Li Drary
Summer Programs
Student Services:
COA Financial Aid
Financial Aid Q-^fice
Housing D-ftice
CCMM. Fund /OOPS
Internship Q-f-fice
Registrar's Of -f ice
Dorms and Food Services:
Dorms
Food Service
Federal Funds:
Student Aid
Other (FIPSE)
Institutional Advancement:
Admi ssions
Devel cpment
Public Relations
Ai umni
General Administration:
Business Oft ice
Committee E;;pense
President's Ot-fice
Buildings and Grounds
Capital Expense (equipment, etc.)
Amount
SI ,329,900
53 , 000
53 , 000
100,000
250,000
1 , 750
1,000
15,500
1,750
1 , 750
70 , 000
1 1 , 550
150,000
10,000
1 59 5 000
19,1 50
a , 200
5 , 300
69,000
1 5 , 600
43 , 750
63 , 900
15,000
Debt Service
Museum
Phoenix Campaign - Other
Line o-f Credit Reduction
Conti ngency
55 , 000
45 , 000
4^ , 500
20 , 000
650
;27i23T250
APPENDIX G
May, 1987
COLLEGE OF THE ATLANTIC
INSURANCE COVERAGE
Commercial Union - Fire, Building & Contents 1,454,250.
USF & G - Fire, Building & Contents 1,454,250.
Aetna Life & Casualty - Excess indemnity (umbrella) policy 1,000,000.
Commercial Union - Multi-peril, theft, fine arts, water
craft, fine arts floater, liabilities,
employee bond, boiler
Commercial Union - Computer insurance (in process)
Commercial Union - Business Automobile policy
Hanover Insurance - Worker's compensation
Excerpt from
Thorndike Library Policies
and Procedures Manual
III. Collection Development
A. Intellectual Freedom
1. College Policy On Intellectual Freedom
In March of 1982, the All College Meeting adopted the Library
Bill of Rights statement. (See the Appendix for a copy of this
statement. )
2. Library Policy on Intellectual Freedom
In the Thorndike Library Collections, controversial issues will
be represented as far as budget, space and availability of
materials allow. Selection will be based upon the criteria
given throughout this policy statement. The race, religion,
nationality or political views of an author, the frankness or
coarseness of language, the controversial content of an item, or
■ _ the endorsement or disapproval of an individual or group in the
community will not cause an item to be automatically included or
excluded.
3. Criticism of Library-owned Materials
College of the Atlantic operates as a private college governed
by its own Board of Trustees. Therefore, the Library will not
consider criticism of library-owned materials or attempts at
censorship coming from individuals outside the corporate
structure of the College. Criticism or attempts at censorship
of library-owned materials submitted in writing by those related
to the College will receive a written reply from the Librarian
quoting the above policy. Cases of continual criticism will be
referred to the Library Committee for decision. The
recommendation of the Committee will be submitted to the
President of the College. The decision of the President will be
relayed to the Committee and the person making the complaint.
B. Collection Priorities
The priorities of collection development at the Thorndike
Library are:
* First, to purchase and make available materials needed to
support the current academic program at the College;
* Second, to purchase and make available materials required by
faculty members and students in their independent scholarly
work ;
* Third, to purchase and make available general reference works,
and works in fields not currently directly related to the
academic program but which are of such importance that they
belong in a college library;
* Fourth, to purchase materials that will allow College community
members to discover and develop their creative capacities,
become socially and politically aware, appreciate and enjoy and
stimulate their own personal and social well-being.
C. Responsibility and Participation in Selection
1. The Library Director has the final responsibility, as delegated
by the College President, for the selection of library
materials.
2. Student and staff recommendations for the purchase of materials
shall not only be welcomed but solicited.
3. Faculty members are especially encouraged to make regular
recommendations for the acquisition of materials in their
subject fields.
D. Methods and Criteria of Selection
1 . Selection Aids
Whenever possible, standard professional selection aids such as
authoritative professional reviews, standard lists of basic
works, recommendations of professional journals and
bibliographic essays prepared by subject specialists will be
used to identify titles for purchase for the collection.
2. Standards of Quality
All materials acquired should meet high standards of quality in
content, expression and form. Factors to be considered in
evaluating an item include: factual accuracy and
authoritativeness, effective expression, significance of
subject, sincerity and responsibility of opinion, current
usefulness, interest or permanent value.
E. Special Issues in Book Selection
1. Paperback vs. Hardbound Editions
In cases where materials will have a long-term value and receive
heavy use for a long period of time, hardbound editions shall be
purchased. If materials are judged to be of transitory
usefulness and/or the cost of rebinding added to the price of
the paperback edition, the paperback edition shall be purchased.
2. Multiple Copies
Generally only one copy of an item shall be purchased. However,
additional copies shall be purchased if it can be demonstrated
by a faculty or library staff member that repeated, heavy use
necessitates their purchase.
3. Textbooks
Because it is the responsibility of students to provide their
own textbooks, the library will not undertake to maintain a
textbook collection. Textbooks used for classes when the title
is an important source of information in its field and/or the
title is considered useful to the general reader will be added.
F. Periodical and Serial Subscriptions
Because of the potential cumulative expense, new periodical or
serial titles will not be purchased unless the following
criteria can be met:
1. The Library budget has adequate funds for such a purchase.
2. The serial or periodical in question addresses the
collection development priorities discussed elsewhere.
3. The serial or periodical recommendation is supported by the
faculty member(s) with expertise in the subject matter
involved.
4. A sample copy of the serial or periodical or a review from
a scholarly and respected source accompanies the gift.
G. Reference Collection
The Reference Collection is a non-circulating collection of
materials designed to provide quick access to factual
information and/or bibliographic citations that can be used to
obtain materials from interlibrary loan service. Examples of
these materials are: dictionaries, encyclopedias, indexes and
abstracts, bibliographies, directories, almanacs, atlases and
field guides.
Titles which are not normally regarded as reference materials
may be added to the Reference Collection when:
1. They are part of a special collection, i.e., local history.
2. Cost of replacement precludes adding the title to the
circulating collection.
3. The title is out-of-print and not possible to replace,
i.e., rare or first editions.
H. Weeding/Discarding the Collection
The Library Director has the responsibility for weeding the
collection. The objective of weeding is to discard items that
do not contribute to a vital, useful, well-kept collection.
Whenever possible, faculty members in the subject area concerned
should be asked to provide advice about the titles to be
discarded. The following criteria should be considered when
evaluating materials for possible discarding:
1. Obsolescence . Is there a later edition of this item? Even
if there is not, the material may be worthless or even
harmful .
2. Physical condition . Is the material in such poor shape
that the use does not warrant the costs of rebinding or
whatever is deemed necessary?
3. Insufficient Use or Value . Careful evaluation should be
made of titles not used at least once in the previous five
years. Also the usefulness with regard to the needs of the
curriculum and students and faculty should be considered.
Materials discarded by the Library will be sold in the annual
book sale, given to other libraries, the College faculty or
staff for use in offices, or destroyed.
Gifts
Prospective donors of gift books, documents or periodical
backfiles should be informed that the Library has the following
policy regarding gifts:
1. The Library Director has the right to refuse to accept
gifts which do not contribute to the academic program of
the College.
2. The Library has the right to determine policies regarding
the classification, housing and circulation of all gifts.
3. The Library retains the right to dispose of duplicates and
unneeded materials.
4. The Library cannot legally appraise gifts for tax or
inheritance purposes. The Library may, however, assist the
donor in obtaining, if available, the names of professional
appraisers.
5. All substantial gifts of materials or equipment made to the
Library will be reported promptly to the office of the Vice
President for Development and Public Affairs.