At this point they are in the middle of this process. Ms. Eastman distributed a six-year forecast to the committee. This means revenues are recorded when they are earned and expenses are recorded when they are incurred. In a cash basis method you would record when you actually received and when you actually spent the money. The biggest difference between these two methods is depreciation.
Depreciation is spread over time to cover the life of an asset.
The cash accumulates and develops that cash reserve that Jerry Mann talked about. And the plan is to reserve an appropriate amount of that cash balance for capital development. Finally Ms. Eastman addressed the Cash Reserve Analysis. At this point Ms. Eastman said she wanted to address SFAC s questions that they provided her before the meeting. Ms Eastman said that the BOD has a student majority and staying in touch with their issues is important to her and part of her decision making.