WPSDC Statement of Financial Position. This statement lists the values of all the assets held by the Society and the values of all the debts owed. The net assets section denotes the “value” of the WPSDC. This value, however, is further divided on the Statement of Financial Position into restrictions – either temporarily restricted, unrestricted (operating), and unrestricted (board designated). These classifications are used to segregate funding based on any restriction(s) imposed by each donor as to how the funds can be spent. For example, if an individual donates money to the Society and limits how we can use the funds, that money is considered restricted solely for that purpose. Depending on the nature of the donor-imposed restriction, these funds may be permanently restricted (such as endowments that cannot be spent) or temporarily restricted (such as funds that are to be spent, not held, on a specific project). On the other hand, if an individual donates money to the Society but never specifies on what or how we can use the funds, these funds have no restrictions and are therefore classified as “unrestricted”. Occasionally funds are restricted internally (i.e., the WPSDC Board of Directors decides to restrict how some of the unrestricted funds are to be spent). The funds are still considered unrestricted for reporting purposes but the internal restriction is noted in the Statement or in an accompanying note.
WPSDC Statement of Activities. This statement reports the change in temporarily restricted and unrestricted net assets. As opposed to an Income Statement which shows a profit or loss, the Statement of Activities instead shows a positive or negative change in each net asset fund. As noted earlier, net assets denote the value of the WPSDC. However, since restricted net assets cannot easily be used by the Society (without satisfying the donor-imposed restrictions), it is quite common in the nonprofit world to consider the organization’s unrestricted net assets to be the actual value of the organization. Thus, if the Society had to close its doors, those unspent funds held that were restricted for use would have to be returned to the donors since the Society did not earn them.
The West Point Society of DC's fiscal calendar year is from 1 September to 31 August.