Notes to Financial Statements 



As of September 30. 1992 and 1991 



97 



1. FORMATION AND PURPOSE: 



On March 26. 1984. by an act of law (the 

 ■*Aa"), the U.S. Congress established the 

 National Fish and Wildlife Foundation (the 

 "Foundation") as a charitable and non- 

 profit corporation which is not an agency 

 or establishment of the United States. The 

 purposes of the Foundation are (1) to 

 encourage, accept, and administer private 

 gifts of property for the benefit of, or in 

 connection with, the activities and services 

 of the U.S. Fish and Wildlife Service and 

 (2) to undertake and conduct such other 

 activities as will further the conservation 

 and management of the fish, wildlife and 

 plant resources of the United States, its 

 territories and its possessions, for present 

 and future generations of Americans. 



For the ten-year p>eriod beginning on 

 Oaober 1, 1984. under the provisions of 

 the Act, funds were authorized to be 

 appropriated to the Department of the 

 Interior (not to exceed $i,(XX),(X)0) to be 

 made available to the Foundation (1) to 

 match, on a one-for-one basis, private 

 contributions made to the Foundation and 

 (2) to provide administrative services, as 

 defined. 



In 1987, Congress passed S.1389 which 

 expanded the Foundation's authority by 

 raising the cap on Federal matching funds 

 to $5.0(X),0(X) a year for 1988 through 

 1993. thus enabling the Foundation to 

 spend Federal funds abroad and clarif>'ing 

 the Foundation's role in acquiring lands 

 with Federal funds. This bill was signed by 

 the President on January 11, 1988. creating 

 P.L. 100240. 



On July 11. 1990, Congress passed H.R. 

 3338 revising the cap on Federal matching 

 funds to $15,000,000 for 1991, $20,000,000 

 for 1992, and $25,000,000 for 1993- 

 Additionally, this amendment prevents the 

 Foundation from using these matching 

 funds for administrative expenses. This 

 bill was signed by the President on 

 November 9. 1990. creating P.L. 101593- 

 Congress appropriated $5,000,000 of the 

 available $15.000.0{X) in matching funds 

 for its fiscal year 1992 budget. 



In fiscal year 1993, the Foundation will 



petition Congress for reauthorization 

 (original authorization expires on October 



1, 1994) and an increase in its appropria- 

 tion to $10,000,000. Management expects 

 the authorization to be renewed because 

 of the success of the Foundation's pro- 

 grams and a favorable relationship with 

 Congress. 



2. SUMMARY OF ACCOUNTING 

 POUCIES: 



A summary of the significant accounting 

 policies followed by the Foundation is set 

 fortli below. 



Basis of Presentation 



The financial statements are prepared on 

 the accrual basis of accounting. 



1991 Financial Information 



The financial information shown for 1991 

 (summarized totals only) in the accompa- 

 nying financial statements is included to 

 provide a basis for compari.son with the 

 totals for 1992. Certain 1991 balances have 

 been reclassified in order to be compa- 

 rable to the 1992 presentation. 



Investments 



Investments are carried at the lower of 

 cost or market value. At September 30, 



1992 and 1S)91. the Foundation's invest- 

 ments consisted of shon-term cash 

 equivalents and marketable debt and 

 equity securities. The investments had a 

 total cost of $12,729,368 and $11,233,649 

 and a market value of $12,927,792 and 

 $11,360,470, respectively, at that date. 



Support and Revenues 



Contributions, other than those designated 

 by donors for restricted purpo.ses, are 

 considered to be available for unrestriaed 

 use. Unless otherwise designated by the 

 donor, investment income earned on 

 restricted contributions is credited to the 

 unrestricted fund. 



Contributed Services 



The value of certain services provided to, 

 and/ or paid on behalf of, the Foundation 



that is susceptible to objective measure- 

 ment or valuation has been reflected in 

 the financial statements (see Note 4). 



Fund Transfers 



The Foundation, at its discretion, may 

 designate unrestricted funds for restricted 

 programs or for the establishment of 

 endowment funds (see Note 5)- 



3. INCOME TAXES: 



The Foundation is exempt from Federal 

 income taxes under Section 501(c)C3) of 

 the Internal Revenue Code. Accordingly, 

 no provision for income taxes is reflected 

 in the accompanying financial statements. 

 The Internal Revenue Service has granted 

 the Foundation exemption from private 

 foundation status. 



4. CONTRIBUTED SERVICES: 



At its inception, the Foundation received 

 contributed services and facilities from the 

 Department of the Interior. Begiruiing in 

 1989, the Foundation began quarterly 

 payments to the Department of the 

 Interior for rent, supplies, phone, and 

 fxjstage. The Foundation began reimburs- 

 ing the Department of the Interior for legal 

 services in April 1990. No contributed 

 services were received from the Depart- 

 ment of Interior during 1992 and 1991 



During 1992 and 1991. the Foundation 

 received contributed services ft^om several 

 outside sources to assist with specific 

 programs and/or the general purpose of 

 the Foundation. These amounts are 

 recorded in the accompanying financial 

 statements at $205,094 in 1992 and 

 $634,925 in 1991. 



5. ENDOWMENT FUNDS: 



In 1987, the Foundation established the 

 Fund for the Future, an endowment fund, 

 from unrestricted funds. Investment 

 income from this endowment is to be 

 used to support the Foundation's future 

 operations and projects. Corpus from the 

 Fund for the Future is not to be invaded 

 without specific, unanimous passage by 



