2021-09-22 OMA Agenda - Board of Trustees

OBESITY MEDICINE ASSOCIATION Notes To Consolidated Financial Statements (Continued)

Net Assets Net assets, revenues and support, gains and losses are classified based on the existence or absence of donor- or grantor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows:  Net Assets Without Donor Restrictions - Net assets without donor restrictions are available for use in general operations and not subject to donor (or certain grantor) restrictions.  Net Assets With Donor Restrictions - Net assets with donor restriction are subject to donor- or certain grantor-imposed restrictions. Contributions restricted by donors are reported as increases in net assets without donor restrictions if the restrictions expire (that is, when a stipulated time restriction ends or purpose restriction is accomplished) in the reporting period in which the revenue is recognized. All other donor-restricted contributions are reported as increases in net assets with donor restrictions, depending on the nature of the restrictions. When a restriction expires, net assets with donor restrictions are reclassified to net assets without donor restrictions and reported in the statement of activities as net assets released from restrictions. Cash For purposes of the consolidated statement of cash flows, cash consists of demand and savings deposits at financial institutions. Accounts Receivable The Organizations review accounts receivable for collectability at year end. The allowance method is used to determine the uncollectible amounts. The allowance is based upon prior-years’ experience and management’s analysis of subsequent collections. No allowance was considered necessary at December 31, 2020. Investments And Investment Return Investments, other than investments in partnerships, are recorded at fair value and are generally comprised of securities purchased through a broker. Equity investments in partnerships are valued by an outsourced investment advisor, and the valuations are determined on a net asset value basis, using pricing information from administrators of underlying funds, the underlying funds themselves or the fund’s investment advisor. Management reviews the valuations and underlying inputs driving how investments are valued. See Note 2 for other disclosures.

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