Northpoint Bible College

“The college's endowment consists of an individual fund established with donor restricted contributions to provide scholarship and financial aid to students. As required by generally accepted accounting principles, net assets associated with endowment funds, including any funds designated by the board to function as endowments are classified and reported based on the existence or absence of donor-imposed or legal restrictions. The board of trustees has interpreted state law as allowing the utilization of appreciation on permanently restricted assets unless explicit donor stipulations specify how net appreciation must be used. As a result of this interpretation, the college classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remainng portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assts until those amounts are appropriated for expenditure by the college in a manner consistent with the standard of prudence prescribed by state law. In accordance with the uniform prudent management of institutional funds act, the college can consider the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds: the duration and preservation of the fund the purposes of the college and the donor-restricted endowment fund general economic conditions the possible effect of inflation and deflation the expected total return from income and the appreciation of investments other resources of the college the investment policies of the college the college has adopted investment and spending policies for its endowment assets that attempt to provide a predictable stream of funding for its institutional purposes while seeking to maintain the purchasing power of the endowment assets. Under this policy, as approved by the board of trustees, the endowment assets are invested in a manner that is intended to produce a fixed stream of income while assuming a moderate level of investment risk. Actual returns in any given year may vary from this amount. The college has a policy of appropriating for distribution each year 75% of the income generated by the endowment fund's investments. The remaining 25% is reinvested into the endowment. In establishing this policy, the college considered the long-term expected return of its endowment. This is consistent with the college's objective to maintain the purchasing power of its endowment. From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the level that the donor imposed restrictions require the college to retain as a fund of perpetual duration. In accordance with generally accepted accounting principles, deficiencies of this nature are reported in unrestricted net assets. There were no such deficiencies as of april 30, 2018 and 2017.”

“Management annually reviews for uncertain tax positions along with any related interest and penalties and believes that the college has no uncertain tax positions that would have a material adverse effect, individually or in the aggregate upon the college's statements of financial position, or the related statements of activities, or cash flows.”

“Architectural fees on canceled project -61,250.”