UA-R-GC-1914-01-01-1977-02-15_Page-063

- 6 - fOMMITMENTS AND CONTINGENCIES; As of August 31, 1976, t he Un iversity had outstanding con t rac t commitments aggregat i ng $ 2 4,000 and L . E . 5 41,000 for the c onstruction of a n ew lib rary. The total constru ction cost of this project is being financed by a grant from A.I.D. which expires on December 31, 1976. The University's management ex­pects that this grant will be extended. The foreign currency control regulations of the Arab Republic of Egypt require the conversion into Egyptian pounds of U.S. dollars that are earned from activities carried out in Egypt. As a result of certain activities, the University may have violated such regulations and could be assessed fines ranging from approximately two to five times the amount of U.S. dollars which were not converted into Egyptian pounds. No provision for these violations has been included in the accompa­~ ing financial statements since, in the opinion of management, any resulting liability of the University will not be material. ADVAN CES TO TRUSTEES: During the year, the University advanced $50,000 to the T r u s tee s w hi c h was use d toe s tab 1 ish R a fu n d Ltd., a Lie chtenstein corporation which the Trustees will operate for the ben e fit 0 f the Un i ve r sit y • The sea d van c e s are in c 1 u d e din the balance sheet caption "advances to related entities"