Property and equipment are recorded at original cost or fair market value at date of donation in the case of gifts. Depreciation is recorded on plant assets using the straight line method. Interest for construction financing is capitalized net of any investment income earned from the temporary investment of project borrowings. Purchases of library books are recorded as current fund expenditures and are not capitalized in the plant funds. Interfund balances consist primarily of advances of current funds for periods of five years or less for fixed asset additions.
Interest normally is charged at the current market rate earned on short-term investments.
Government grants and contracts normally provide for reimbursement of indirect costs, subject to audit. Pledges - Gifts are recorded as revenue when they are received. It is not possible to determine when or to what extent the pledges will actually be realized.