Title: Summary of Significant Accounting Policies Cntd.
Accounting Policies: Nature of Activities - The ASSISTment's Foundation, Inc. (the Organization) was organized on April 1, 2019 to serve as a group of educators, learning scientists, and software engineers dedicated to improving student learning through responsive online technology that is teacher-paced and evidence based. Basis of Accounting - The financial statements of ASSISTment's Foundation, Inc. have been prepared on the accrual basis of accounting. Comparative Financial Information - The financial statements include certain prior-year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the Organization's financial statements for the year ended June 30, 2021, from which the summarized information was derived. Financial Statement Presentation - Financial statement presentation follows the recommendations of the Financial Accounting Standards Boards in its Accounting Standards for Financial Statements of Not-For-Profit Organizations. Under these standards, the Organization is required to report information regarding its financial position and activities according to two classifications of net assets required under ASU No. 2016-14 described as follows: Accordingly, net assets of the Organization and changes therein are reported in the following net asset categories:Net Assets Without Donor Restrictions - Net assets that are not subject to donor imposed restrictions and may be expended for any purpose in performing the primary objectives of the Organization. These net assets may be used at the discretion of the Organization's management and the Board of Directors. Net Assets With Donor Restrictions - Net assets that are subject to stipulations imposed by donors and grantors. Some donor restrictions are temporary in nature. Those restrictions will be met by the Organization or by the passage of time. Other donor restrictions are perpetual in nature where by the donor has stipulated the funds be maintained in perpetuity. Donor restrictions are reported as increases in net assets and transferred to donor restrictions to net assets without donor restrictions, once the stipulations are met, in the statement of activities. At June 30, 2022 and 2021 there were only net assets without donor restrictions, for each year Functional Allocation of Expenses - The costs of providing the various programs and activities have been summarized on a functional basis in the Statement of Activities and in the Statement of Functional Expenses. Accordingly, certain costs have been allocated among the programs and supporting services benefited. Concentration of Credit Risk - The Organization maintains its cash balances at two financial institutions. Cash balances are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. At June 30, 2022 and 2021 the Organization's uninsured cash balance totaled $348,002 and $871,269, respectively. Concentrations of credit risk with respect to accounts receivable are limited due to the funding sources comprising the Organization's base. At June 30, 2022 and 2021, the Organization had no significant concentration of credit risk with regard to accounts receivable and investments. Cash and Cash Equivalents - For financial statement purposes, the Organization considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. Interest Paid - For the years ended, June 30, 2022 and 2021 the Organization paid $1,235 and $0, in interest, respectively. Accounts Receivable - Accounts receivable consists of foundation, trust, and government grants. The Organization considers these receivables to be fully collectible. Accordingly, no allowance for uncollectible accounts is recorded. If amounts become uncollectible, they
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Income Tax Status - The Organization is a not-for-profit organization as described in Section 501 (c)(3) of the Internal Revenue Code and is exempt from federal and state income taxes. Therefore, no provision has been made for federal or state income taxes in the accompanying financial statements. New Accounting Pronouncements - In June 2018, FASB issued ASU 2018-08, Clarifying the Scope and Accounting Guidance for Contributions Received and Contributions Made, with the stated purpose of providing guidance in evaluating whether transactions should be accounted for as contributions or exchanges. In addition, the update introduces the concept of barriers in providing additional guidance on identifying conditions that would preclude the recognition of a contribution as revenue. When any contribution is received, the Organization must determine whether the transaction is an exchange or contribution, identify any donor-imposed conditions or restrictions regarding its use, distinguish between barriers and donor-imposed conditions or restrictions, and conclude that all conditions are resolved prior to recognizing the contribution as revenue. For the years ended June 30, 2022 and 2021, no contributions received were determined to be exchange transactions. The Organization did identify various grants containing barriers to overcome prior to recognizing the grants as revenue. Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Fair Value Measurements - The Organization adopted the methods of calculating fair value of its financial assets and liabilities, when applicable. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a fair value hierarchy that prioritizes observable and unobservable inputs is used to measure fair value into three broad levels, which are described below: Accounting standards establish a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable inputs that are based on inputs not quoted in active markets, but corroborated by market data. Level 3: Unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. In determining fair value, the Organization utilizes valuation techniques that maximize the use of observable inputs and minimizes the use of unobservable inputs to the extent possible as well as considers counter party credit risk in its assessment of fair value. Financial assets and liabilities are classified in the tables on the next page in one of three categories described above.