The financial statements of The Ford Foundation (the Foundation) are prepared on the accrual basis. The significant accounting policies followed are set forth below:

Investments

Equity and fixed income investments are generally valued based upon the final sales price as quoted on major exchanges. However, certain fixed income securities are valued based upon yields or prices of securities of comparable quality, coupon, maturity and type as well as indications as to values from brokers and dealers. Short-term investments generally represent securities with maturity of 90 days or less and are valued at amortized cost. Limited marketability investments, representing amounts in venture capital and equity partnerships, are valued at the quoted market price for securities for which market quotations are readily available or an estimate of value (fair value) as determined in good faith by the general partner. Events affecting the values of these limited marketability investments that occur between the time their prices are determined and the close of the Foundation's fiscal year are reflected in the calculation of the fair value when the particular event materially affects such net asset value.

Transactions are recorded on a trade date basis. Investment related receivables and payables are included in the accompanying Statement of Financial Position as part of Investments at market. Realized and unrealized gains or losses on investments are determined by comparison of specific costs of acquisition (identified lot basis) to proceeds at the time of disposal, or market values at the last day of the fiscal year, respectively, and include the effects of currency translation with respect to transactions and holdings of foreign securities. Dividends and interest are recognized when earned.

Cash

Consists of cash on hand and operating bank deposits.

Program-Related Investments

The Foundation invests in projects that advance philanthropic purposes. These program-related investments are presented at net realizable value based on historical experience of these types of loans.

Fixed Assets

Land, buildings, furniture, equipment and leasehold improvements owned by the Foundation are recorded at cost. Depreciation is charged using the straight-line method based on estimated useful lives of the particular assets generally estimated as follows: buildings, principally 50 years, and furniture, equipment and leasehold improvements, 3 to 15 years.

Expenditures and Appropriations

Grant expenditures are considered incurred at the time of approval by the Board of Trustees or the President of the Foundation. Uncommitted appropriations that have been approved by the Board of Trustees are included in Appropriated Unrestricted Fund Balance.