Western Michigan University
Western Michigan University
Notes to Financial Statements Notes to Financial Statements June 30, 2013 and 2012 June 30, 2013 and 2012 Note 1 - Basis of Presentation and Significant Accounting Policies (Continued)
Paper Technology Foundation, Inc. was established to aid and promote, by financial assistance and guidance, education and research in paper technology and related areas at Western Michigan University. The University has paid certain expenses of Paper Technology Foundation, Inc. Western Michigan University Research Foundation operates for the benefit of Western Michigan University to promote, encourage, and aid scientific investigation and research as well as commercialization endeavors. The University has paid certain expenses of Western Michigan University Research Foundation. The foundation included financial activity for the Western Michigan University School of Medicine (WMed) as of June 30, 2012. Effective July 1, 2012, WMed merged with another existing entity, and the financial activities of WMed are no longer included with Western Michigan University Research Foundation. WMed operates and manages medical education and training programs. WMed’s clinics provide medical services to patients, a substantial portion of which are Medicaid and Medicare recipients. A complete copy of the audited financial statements of Western Michigan University Foundation, Paper Technology Foundation, Inc., Western Michigan University Research Foundation, and WMed is available at the organization’s offices. Cash and Investments - Cash and cash equivalents are defined as highly liquid investments with a maturity of three months or less when purchased. The University’s cash, comprised of working capital and permanent-core assets, is principally invested in investment-grade securities that are readily convertible to cash. The cash is allocated to securities that meet short-, intermediate-, and long-term investment objectives. Investments are reported at fair value, based on quoted market prices, with changes in fair value reported as investment income in the statement of revenue, expenses, and changes in net position. Inventories - Inventories consist primarily of supplies, food, pharmaceuticals, and bookstore items, and are stated at the lower of cost or market, with cost determined by the retail method.
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