These discounts are given to students in the course of providing educational services and the amounts of disounts, as well as the individual recipients, are decided by the College. The College utilizes earnings on investments restricted for tuition discounting or scholarships, federal and state grants, and other sources to finance the tuition discounts. Tuition discounts are reported as a reduction to tuition income as the College does not receive any goods or services in exchange for the discount. Investments in marketable securities with readily determinable fair values and all investments in debt securities are valued at their fair values in the statement of financial position. Unrealized gains and losses are included in the change in net assets.
Depreciation is provided on the straight-line basis over the assets' estimated useful lives.
Normal repairs and maintenance are recorded as unrestricted expenses. The College incurs expenses associated with the operation and maintenance of land, buildings and equipment, such as depreciation, interest, utilities, maintenance and insurance. These expenses are allocated to each function based on the square footage of space utilized to provide the function. Management evaluates the expense allocation methodology periodically. Accodingly, no provision for federal and state income taxes has been made in these financial statements.