Financial Report
Statement of Financial Position
December 31, 2000

NOTES TO FINANCIAL STATEMENTS
1. Organization. Middle East Studies Association of North America, Inc. (“MESA” or “Association”) was organized in 1966 by a group of American and Canadian scholars to promote high standards of scholarship and instruction in Middle East studies, to facilitate communication among scholars through meetings and publications and to foster cooperation among persons and organizations concerned with the scholarly study of the Middle East. Membership includes subscriptions to the International Journal of Middle East Studies, the Bulletin and the Newsletter.

2. Summary of Significant Accounting Policies. Financial Statement Presentation. The Association complies with Statement of Financial Accounting Standards (SFAS) No. 117, “Financial Statements of Not-for-Profit Organizations.” Under SFAS No. 117, the Associ­ation is required to report information regarding its financial position and activities accord­ing to three classes of net assets (unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets) based upon the existence or absence of donor-im­posed restrictions.

• Unrestricted net assets—Net assets that are not subject to donor-imposed stipulations.
• Temporarily restricted net assets—Net assets subject to donor-imposed stipulations that may or will be met either by actions of the Association or the passage of time. When a restriction expires, temporarily restricted net assets are reclassified to unre­strict­ed net assets and reported in the statement of activities as net assets released from re­strictions.
• Permanently restricted net assets—Net assets subject to donor-imposed stipulations that they be maintained permanently by the Association. Generally, the donors of these assets permit the Association to use all or part of the income earned on any related investments for general or specific purposes.

The Association also complies with SFAS No. 116, “Accounting for Contributions Received and Contributions Made.” In accordance with SFAS No. 116, contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence or nature of any donor restrictions. In 2000, the Association received $2,365 of contributions with donor-imposed restrictions that resulted in permanently restricted net assets.

Cash and Cash Equivalents. For purposes of the statements of cash flows, the Association considers cash and highly liquid debt investments purchased with a maturity of three months or less to be cash and cash equivalents.

Investments. The Association uses SFAS No. 124, “Accounting for Certain Investments Held by Not-for-Profit Organizations.” Under SFAS No. 124, investments in marketable securities with readily determinable fair values and all investments in debt securities are valued at their fair values in the statement of financial position. Unrealized gains and losses are included in the change in net assets.

Office Equipment. Office equipment is recorded at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of three, five, and seven years. The cost of major improvements and additions are capitalized. Repairs and mainte­nance are charged to operations. The costs and related accumulated depreciation of assets sold or otherwise disposed of are removed from the accounts and any resulting gain or loss is reflected in the statement of activities in the year of disposition.

Contributions. All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. Amounts received that are designated for future peri­ods or restricted by the donor for specific purposes are reported as temporarily restricted or permanently restricted support that increases those net asset classes. When a temporary restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions.

Income Taxes. The Association is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code and therefore has made no provision for federal income taxes in the accompanying financial state­ments. In addition, the Association has been determined by the Internal Revenue Service not to be a “private foundation” within the meaning of Section 509(a) of the Internal Revenue Code.

Donated Services. Donated services are recorded at their fair market value as contributions when they create or enhance non-financial assets or when they would be purchased by the Association if not donated and require specialized skills possessed by the donor.

Use of Estimates. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Functional Expenses. The Association allocates its expenses on a functional basis among its programs and support services. Expenses that can be identified with a specific program and support service are allocated directly according to their natural expenditure classifica­tion. Other expenses that are common to several functions are allocated by other reason­able methods.

3. Concentration of Risk. The Association’s cash and cash equivalents are located in various financial institutions. The amounts on deposit in each financial institution is less than the $100,000 federally insured limit.

4. Marketable Securities. Marketable securities, with a cost of $317,342, consist of the following at December 31, 2000:

5. Invest­ment in Partnership. During 1989, the Association purchased a .020% interest in Technology Funding Secured Investors III Partnership as an investment. During 2000 the partnership had no distributions and reported interest and dividends of $20 and an operating loss of $390.

6. Commitments and Agreements. The Association has an agreement through December 31, 2004 with the Syndicate of the Press of Cambridge University to publish and distribute The International Journal of Middle East Studies and MESA Bulletin to each member.