| Originally Reported June 30, 2020 | Reclassification July 1, 2020 | As Restated July 1, 2020 | |
|---|---|---|---|
| Net investment in capital assets | $ 77,317,900 | $ - | $ 77,317,900 |
| Restricted Nonexpendable - endowment | 3,562,238 | 5,133,853 | 8,696,091 |
| Restricted Expendable | 4,220,806 | 4,255,906 | 8,476,712 |
| Unrestricted deficit | (86,672,074) | (9,389,759) | (96,061,833) |
| Total net position (deficit) | $ (1,571,130) | $ - | $ (1,571,130) |
Kentucky State University Foundation, Inc. (the Foundation) is a Kentucky not-for-profit corporation formed to receive, invest and expend funds to promote and implement educational and developmental activities at Kentucky State University (the University). The Foundation is managed by a Board of Trustees independent from that of the University. The Foundation is supported primarily through contributions from alumni.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) which require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The following is a summary of the significant accounting policies consistently followed by the Foundation in the preparation of its financial statements.
Basis of Presentation: Net assets and revenues, expenses, gains, and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets of the Foundation are classified and reported as follows:
Net assets without donor restrictions – net assets available for use in general operations and not subject to donor restrictions. The governing body has designated, from net assets without donor restrictions, net assets for an operating reserve and board-designated endowment.
Net assets with donor restrictions – net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is, when the stipulated time has elapsed, when the stipulated purpose for which the
62.