Page 37 - RFCUNY-2010AnnualReport

(m) Fair Value Measurements

Fair value is determined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The Organization mea-sures the fair value of its financial and nonfinancial assets and liabilities using a three-level hierarchy for fair value measurements based on the observable inputs to the valuation of an asset or liability at mea-surement date. It prioritizes the inputs to the valuation techniques used to measure fair value by giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 mea-surements), and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements).

The carrying amounts of cash equivalents; grants, contracts, and other receivables; accounts payable and accrued expenses; and deposits held in custody for CUNY colleges approximate fair value due to the short maturity of these financial instruments. The carrying amount of the mortgage loan payable and revolving credit loan payable approximates fair value because these loans bear interest at a rate that

is not significantly different than current market rates for loans with similar maturities and credit quality. (n) Recently Adopted Accounting Standard

In 2010, the Organization adopted Accounting Stand ards Update No. 2009-06, Implementation Guidance on Accounting for Uncertainty in Income Taxes and Disclosure Amendments for Nonpublic Entities (ASU 2009-06), in conjunction with its adoption of Financial Accounting Standards Board (FASB) Interpretation No. 48, Accounting for Uncertainty in Income Taxes (now included in Accounting Standards Codification (ASC) Subtopic 740-10, Income Taxes—Overall). Beginning with the adoption of FASB Interpretation No. 48, the Organization recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. There was no sig-nificant impact to the Organization’s consolidated financial statements as a result of the adoption of FASB Interpretation No. 48 or ASU 2009-06. (o) Reclassifications

Certain reclassifications of prior year amounts have been made to conform to the current year presentation.

Fair Value Cost Fair Value Cost U.S. money market $ 7,021,321 7,021,321 10,348,588 10,348,588 U.S. Treasury bills 39,929,532 39,929,826 28,043,900 28,029,137 U.S. government agency obligations 16,391,134 16,397,960 25,727,744 25,712,284 U.S. equity securities 28,828 59,126 28,487 25,980 Total $63,370,815 63,408,233 64,148,719 64,115,989

The Organization categorizes its financial and non financial assets and liabilities into a three-tiered hier archy using the following guidelines:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Foundation has the ability to access at measure-ment date.

• Level 2 inputs are inputs other than quoted prices included in Level 1 that are either directly or indi-rectly observable for the assets or liabilities. • Level 3 inputs are unobservable inputs for the assets or liabilities.

At June 30, 2010 and 2009, the Foundation’s investments are categorized as Level 1.

Components of investment return, including inter-est on cash and cash equivalents, are as follows for the years ended June 30, 2010 and 2009:

Eligible employees of the Foundation and certain project personnel are covered under a defined con tribution pension plan established with Teachers Insurance and Annuity Association (TIAA). The Foun dation’s contribution to the pension plan is based on specified percentages, ranging from 8% to 14%, of each employee’s annual salary. Total pension expense