PHYSICIANS FOR SOCIAL RESPONSIBILITY, INC. DECEMBER 31, 1996 PAGE 3 OF 4 NOTE 3- INCOME TAXES The Organization participates in a credit card program from which it receives fees from the issuing Bank. These fees, net of related expenses, are considered royalty income and are not subject to unrelated business income tax. NOTE 4 - BOARD DESIGNATED_RESERVES The Board designated that reserves be set aside for future use. Board authorized a restoration of the reserves to $ 200,000 in 1996. NOTE 5 - JOINT COSTS The The Organization incurred joint costs for informational materials and activities that included fund raising appeals. These costs were allocated to fund raising and programs expenses as follows: The costs of providing the various programs and other activities have been summarized on a functional basis in the statement of functional expense. Accordingly, certain costs have been allocated among the programs and supporting services benefitted. NOTE 7 - DESCRIPTION OF PROGRAM AND SUPPORTING SERVICES The following program and supporting services are included in the accompanying financial statements: PUBLIC AND MEDICAL EDUCATION - The dissemination of information concerning the medical and environmental consequences of nuclear weapons use, production and testing, toxic substances in the environment, hand gun use and other public health, violence and environmental issues. PHYSICIANS FOR SOCIAL RESPONSIBILITY. INC. PAGE 4 OF 4 MEDIA AND PUBLIC AFFAIRS - The promotion of policies that will halt and reverse the nuclear arms race and increase public awareness of the public health impact of environmental problems and reduce the root causes of violence. CHAPTER DEVELOPMENT - Assisting local Physicians for Social Responsibility chapters with educational activities and internal organization. MANAGEMENT AND GENERAL Includes supervision and organizational support such as budget preparation, accounting, computer technology, human resources and office management. FUND-RAISING - Includes costs of underwriting the budget via direct mail, telemarketing and personal solicitation of individual members, churches, foundations, corporations and private voluntary organizations. NOTE 8 - CONCENTRATION OF CREDIT RISK The Organization maintains several bank accounts. Accounts at an institution are insured by the Federal Deposit Insurance Corporation (FDIC) up to $100,000. The cash balance at three of the banks exceeded federally insured limits. The amount in excess of the FDIC limit totaled $ 152,985 as of December 31, 1996. COMMITTEE ON SCIENCE U.S. HOUSE OF REPRESENTATIVES Hearing on The Road from Kyoto-Part 1: Where Are We, Where Are We Going, and How Do We Get There? - "Based on extensive ground-based measurements, the National Oceanic and Atmospheric Administration (NOAA) - our lead national agency for collecting weather statistics – reported that 1997 was the warmest year based on records that date back over a century. While the temperature in any one year cannot prove or disprove anything about global warming, this year's statistics, further confirmed by two other sources of information about global surface temperatures (the Goddard Institute for Space Studies/NASA and the researchers at East Anglia University in the U.K.), follow a clearly emerging pattern. The nine warmest years of the century have occurred in the past 11 years.” Q1.1 Please provide a copy of NOAA report and accompanying data/statistics referred to in your statement above. A1.1 Attached is a press release from NOAA discussing the results of an analysis by a team led by Dr. Tom Karl. Also attached are a graph of the annual global temperature index and a figure showing global temperature anomalies for 1997. 50-343 99-17 |