The Joffrey Ballet Notes to Financial Statements Note 1.
Nature of Activities and Significant Accounting Policies
The Joffrey Ballet (the Organization) is a nonprofit corporation incorporated in the state of Illinois which commenced operations on May 1, 1995. The Organization is a classically-based dance company whose signature elements include the incorporation of popular culture, modern technology and contemporary ideas into its ballets. The repertoire emphasizes works by contemporary American and international artists and revivals of the 20th-century masterworks. The Organization’s operations include the Joffrey Academy of Dance (the Academy) and community engagement programs. Classes and programs are for various age groups at varying levels of dance instruction. The Organization conducts its activities from the Joffrey Tower, its building located in Chicago, Illinois, its new studios on South Wabash and throughout the Chicago Public Schools system. The Organization is supported primarily through ticket sales, Academy revenue and contributions (cash and in-kind). The Organization has qualified as a charitable organization exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code and applicable state law. Accounting policies: The Organization follows accounting standards established by the Financial Accounting Standards Board (FASB) to ensure consistent reporting of financial position, results of activities and cash flows. References to generally accepted accounting principles (U.S. GAAP) in these footnotes are to the FASB Accounting Standards Codification, sometimes referred to as the Codification or ASC. Basis of presentation: In accordance with limitations, designations and restrictions placed on the use of resources available to the Organization, the following two classifications are utilized according to the nature and purpose of the resources: Without donor restrictions: Net assets that are not subject to donor-imposed stipulations or the donorimposed stipulations have expired. Included are amounts designated by the board for operating reserves and other purposes. The board designates certain unrestricted contributions for specific future use when received. Contributions are considered to be available for use in operations unless specifically restricted by the donor. With donor restrictions: Net assets whose use by the Organization is subject to donor-imposed restrictions. Some restrictions may or will be satisfied by actions of the Organization or by the passage of time. When a restriction is satisfied, these net assets are transferred to net assets without donor restrictions and are reported in the statement of activities as net assets released from restrictions. Restricted amounts received in the same period in which the restrictions are satisfied are recorded as net assets without donor restrictions. Other restrictions do not terminate but instead require that funds be held in perpetuity, while the income is available for general use. Operating and endowment cash and cash equivalents: The Organization maintains its deposits in bank accounts which, at times, may exceed federally insured limits. The Organization has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash. Pledges receivable: Pledges receivable intended by donors to fund the endowment and the Organization’s operations are stated at the present value of the expected future cash flows; discounts are amortized to contribution revenue over the duration of the pledge. An allowance for uncollectible pledges receivable is provided based upon management’s judgment including such factors as prior collection history, type of contribution and nature of the fundraising activity.
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