Page 11 - Microsoft Word - {8163B450-FFDE-4294-8624-C6B2D90F75D8}.docx

CHILD CARE RESOURCE CENTER, INC. NOTES TO FINANCIAL STATEMENTS
Note 1 – Nature of Operations (continued)
Home Visitation – CCRC's Home Visitation program which began on December 1, 2013, is an initiative directly linked to Welcome Baby which is active in 14 Best Start Communities throughout Los Angeles County. To participate, families must live within the Best Start community boundaries. The program is through Welcome Baby referrals and utilizes the Parents as Teachers curriculum to provide the information, support and encouragement parents needs to help their children achieve optimal development during the crucial early years of life.
Research & Program Evaluation – CCRC's Research & Evaluation staff ensures optimal services for families and children by providing internal and external stakeholders with useful tools and information that can be used for program evaluation, forecasting and strategic planning, contract compliance, and advocacy.
Note 2 – Summary of Significant Accounting Policies
Basis of presentation – The financial statements of CCRC have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States and accordingly reflect all significant receivables, payables, and other liabilities. The significant accounting policies followed are described below to enhance the usefulness of the financial statements to the reader.
Cash and cash equivalents – For the purpose of the statement of cash flows, CCRC considers all temporary, short‐term, highly liquid investments purchased with original maturities of three months or less to be cash and cash equivalents.
Cash held in reserve – Cash held in reserve is cash whose use by CCRC has been limited under contract funding terms and conditions. Included in cash held in reserve is $512,658 and $422,070 related to contracts with the California Department of Education ("CDE") at June 30, 2016 and 2015, respectively. The amount with CDE represents cash received but not earned by CCRC. Under CDE's rules, the reserve amount may be used for operations in certain cases. Any unused reserve funds must be returned to CDE upon termination of services under the child development contracts. The reserve balance is reviewed and re‐calculated by CDE on an annual basis. The amount in excess of the required reserve balance must be repaid to CDE.
The remaining $82,022 of the cash held in reserve balance at June 30, 2016 and 2015, relates to CCRC's contract with Office of Head Start (or "OHS"). CCRC is required to segregate cash received for future payments of accrued leave liability. Accordingly, CCRC maintains the cash received for future payments of accrued leave liability in a separate bank account.
9