Page 31 - RFCUNY Annual Report 2016

Research Foundation of The City University of New York and Related Entities

Notes to Consolidated Financial Statements
June 30, 2016 and 2015

(1) Organization and Purpose
The Research Foundation of The City University of New York (the Foundation) was chartered in 1963 to
further the purposes of The City University of New York (the University or CUNY) and other not-for-profit
organizations, through the pursuit, acquisition, and administration of grants and gifts. The Foundation is
a separate legal entity and is exempt from federal income taxes under the provisions of Section 501(c)(3)
of the Internal Revenue Code (the Code).
230 West 41st Street LLC (the LLC) was established on May 7, 2004 as a Delaware limited liability
company and organized pursuant to the Limited Liability Operating Agreement (the Agreement) dated
July 14, 2004 between the Foundation (the Sole Member with a 100% interest in the LLC) and the LLC.
The LLC was formed to acquire, own, and operate an approximately 300,000-square-foot office building
located at 230 West 41st Street in New York, New York (the Property). The LLC is a single-member limited
liability company organized and, accordingly, is treated as a disregarded entity for federal, state, and
local income tax purposes.
GrantsPlus Inc. (GrantsPlus) was created by the Foundation and incorporated in May 2004 to pro-
vide post award administration of sponsored programs for not-for-profit organizations other than the
Foundation or CUNY. GrantsPlus is a separate legal entity exempt from federal income taxes under the
provisions of Section 501(c)(3) of the Code.
(2) Summary of Significant Accounting Policies
(a) Basis of Presentation
The accompanying consolidated financial statements, which consolidate the Foundation, the LLC,
and GrantsPlus (collectively, the Organization), are prepared on the accrual basis of accounting in
accordance with generally accepted accounting principles in the United States of America for external
financial reporting by not-for-profit organizations. All intercompany accounts and transactions have been
eliminated in consolidation. The consolidated financial statements present balances and transactions
according to the existence or absence of donor-imposed restrictions. At June 30, 2016 and 2015, none
of the Organization’s net assets or changes therein were subject to donor-imposed restrictions and,
accordingly, are classified and reported as unrestricted net assets, and which includes grants and con-
tracts for the performance of certain services or functions.
Revenues and gains and losses on investments and other assets are reported as changes in unre-
stricted net assets unless limited by explicit donor-imposed restrictions or by law. Expenses are reported
as decreases in unrestricted net assets.
(b) Grants and Contracts
Revenue from grants and contracts, awarded to and accepted by the Foundation, GrantsPlus, and vari-
ous units of the University, as joint grantees, primarily for research, training, and academic development
programs, is recognized as earned, that is, as the related costs are incurred under the grant or contract
agreements. Included in private grants and contracts revenue are grants sponsored by CUNY, totaling
approximately $46,500,000 and $44,600,000 at June 30, 2016 and 2015, respectively.
Facilities and administrative costs recovered on grants and contracts are recorded at rates estab-
lished by the Foundation with its federal cognizant agency, or predetermined by the nonfederal sponsor.
Facilities and administrative cost rates for government grants and contracts are subject to audit, and
subsequent final settlements, if any, are recorded as current period adjustments. Management believes
the impact of any future settlements to be immaterial to the consolidated financial statements.

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