- Volume 57 , Number 4
- Page: 923–5
Statement of financial condition
Tait, Weller & Baker, Certified Public Accountants. New York, Auditors, International Journal of Leprosy, on 24 March 1989 transmitted the following audited financial statements for 1988 to the Board of Directors, IJL, with the following report:
"We have audited the accompanying balance sheets of the International Journal of Leprosy of the International Leprosy Association as of December 31, 1988 and 1987, and the related statements of revenue, expenses and changes in unrestricted fund balance, and changes in financial position for the years then ended. These financial statements are the responsibility of the Organization's management. Our responsibility is to express an opinion on these financial statements based on our audits.
"We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
"In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the International Journal of Leprosy of the International Leprosy Association as of December 31, 1988 and 1987, and the results of its operations, the changes in its fund balances, and the changes in its financial position for the years then ended, in conformity with generally accepted accounting principles.
"The accompanying financial statements have been prepared assuming that the Organization will continue as a going concern. As discussed in Note 2 to the financial statements, the Organization has sustained significant operating losses in recent years and has a net deficiency in fund balances that raises substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertaintly."
NOTES TO FINANCIAL STATEMENTS
December 31, 1988 and 1989
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PREPARATION
The financial statements have been prepared on the accrual basis and, as such, income from subscriptions to the "International Journal of Leprosy" is recognized ratably over the term of the subscriptions.
INCOME TAX
The Organization continues to qualify as a non-taxable organization under Section 501(c)(3) of the Internal Revenue Code. Therefore, no provision for income tax is necessary.
NOTE 2-GOING CONCERN
The Organization had sustained significant operating losses in recent years. Its liabilities exceeded its assets resulting in deficit fund balances at December 31. 1988 and 1987. In addition, the Organization received an estimated $18,800 and $25,000 in 1988 and 1987, respectively, in donated services from American Leprosy Missions, Inc. (Sec Note 4). The Organization's ability to operate in the future is dependent upon positive operating results and the continuation of donated services support.
NOTE 3 -RESTRICTED FUND
On May 11, 1976, the Lani Booth Fund contributed $25,000 for the printing and distribution of a cumulative index of the first forty volumes of the "International Journal of Leprosy." Expenses incurred in the production of the index to date are $24,997.
NOTE 4 -DONATED SERVICES
American Leprosy Missions, Inc. has provided various services to the Organization. No amounts have been reflected in the statements for these services. The estimated values for these services for the years ended December 31, 1988 and 1987 are approximately $ 18.800 and $25,000. of which $ 10.000 and $ 16.200 are for administrative and secretarial support and $8,800 for occupancy costs, respectively.