UA-R-GC-1914-01-01-1974-10-16_Page-042

- 3 - The Egyptian pound endowment fund is financed by the trustees of the University acting as the grantee specified in a grant from the U.S. Federal government. This grant presently provides. among other things, for a maximum amount of L.E. 6,000,000 that can be appropriated to the fund. Of this amount, L.E. 3,777,500 has been received by the Fund from its inception (April 24, 1974) to January 15, 1976. The grant further provides that the income generated from the investment of the funds provided is to be used to support the operations of the University. Operating expenses transacted in U.S. dollars and applicable to the operations of the Egyptian pound fund are accounted for in the U.S. dollar endowment fund. Unrestricted revenue is accounted for in the un-restricted current fund. Restricted gifts, grants, appropriations, and other restricted resources are accounted for in the restricted current fund. Restricted current funds are reported as revenues and expenditures when expended for current operating purposes. The fixed assets included in the plant fund are stated at cost at dates of acquisition for certain items and appraisal values at specified dates for others. Costs incurred for the additions to land and buildings are capitalized; costs incurred for the additions to furniture, fixtures and equipment are capitalized when such funding is provided trom specified grants or appropriations. Depreciation of fixed assets is not recorded in the accounts. eCl Principles of Consolidation The financial statements of the University have been consolidated with those of its subsidiaries. Accordingly, all significant inter-company balances and transactions have been eliminated in consolidation