Read the case below and write a simple draft to discuss issues and solutions.
Youth Classical Symphony (YCS) is a not-for-profit organization that was formed in 20X1 by Nancy, a retired professional classical pianist. Members of the musician range in age from 8 to 20. The classical orchestra has won a number of major classical music competitions across North America and is producing its first CD next month. The choir plans to record an annual CD of its winning classical music concert. Nancy is in charge of YCS's daily operations. All major decisions need to be approved by the board of directors. Initial financing for YCS came solely from private donations, and a fundraising committee was recently formed to raise funds for special projects. Last year, YCS qualified for two government grants that require audited financial statements to be submitted on an annual basis. YCS has attached a set of financial statements to government grant applications in the past. The Canada Revenue Agency also requires financial statements to provide tax receipts for donors. Your CPA firm, Young and Yang, LLP has a policy of supporting its staff in volunteering their time to NFP activities. You have recently joined YCS as a member of its board of directors and have volunteered to assist with all accounting issues. Details on past accounting policies are provided in Exhibit A. You have been asked to prepare a report identifying any changes you would make to the current accounting policies for the next board of directors' meeting. Required Prepare the draft report to the board of directors.Exhibit A ACCOUNTING POLICIES AND OTHER INFORMATION Donation-Original Historic Sheet Music A donor recently died, leaving in her will a large selection of sheet music to YCS. It is impossible to verify the value of this donation due to its historical value. The music will be performed by the musicians during concerts. The original sheet music wiil be displayed in a glassed-in case. Assam Every Christmas, YCS holds an annual benet concert. At this time, YCS holds a major fundraising drive and asks ail concert guests to provide a donation or pledge an amount. All pledges are recognized when the pledge is made by the donor. Fundraising costs YCS is committed to having fundraising costs not exceed 5% of donation revenue. Nancy reviews all amounts expended for fundraising each year. Part of the advertising and promotion costs for fundraising are allocated to education each year because part of the purpose of these campaigns is to educate the public on the goals of YCS. Capital assets All capital assets are recorded at their market value as determined by the nance director. During 20X7, a local music store provided sheet music stands at manufacturer's direct costs of $20,000. Purchasing these stands at retail prices would have cost $40,000. Hiring a New Conductor On July 1, 20)\
