Temporarily restricted and unrestricted current net assets represent expendable net assets that are available for support of the FTE operations. The temporarily restricted net assets represent contributions for purposes specified by the donor. Unexpended temporarily restricted contributions are recorded as deferred restricted contributions. The FTE considers all investments with original maturities of less than three months to be cash equivalents. Depreciation on furniture and equipment is computed using the straight-line method over estimated useful lives of five years.
Fair value is determined using quotes obtained from publicly reported exchanges.
Endowment asset investments consist of common stock, equity investments, mutual fund interests, and limited partnership interests. The common stock and limited partnership units are of two companies for which there is no public market. The contributed stock and limited partnership units were recorded at their fair market value as of the contribution date. They are currently recorded at historical cost less adjustments for stock and limited partnership units redeemed. Dividends received from the investments are recorded as investment income.