Page 12 - Microsoft Word - 0802 - Footnotes - CCRC.doc

CHILD CARE RESOURCE CENTER, INC. (A NONPROFIT CORPORATION)
NOTES TO FINANCIAL STATEMENTS June 30, 2014
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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. Of the total $383,546, $301,524 relates to contracts with the California Department of Education (“CDE”). 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 relates to CCRC’s contract with the Los Angeles County Office of Education (“LACOE”) for the Head Start Program. CCRC is required by LACOE 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.
The related liabilities for cash held in reserve for contracts with CDE and LACOE have been reflected in Reserve Funds in the accompanying statement of financial position at June 30, 2014 and 2013.
Government Contracts Receivable
Government contracts receivable consists primarily of monies due from various program funding sources. CCRC has not had issues with collectability of the government contracts receivable and has not recognized an allowance for uncollectable receivables.
Property and Equipment
Property and equipment are stated at cost or, for those assets acquired by gift or bequest, the estimated fair market value at the date of contribution. CCRC capitalizes computer equipment and other property items in excess of $2,000 and expenses amounts below these thresholds. Depreciation is computed using the straight-line method over estimated useful lives as follows:
Computer equipment and software Furniture, fixtures and equipment Vehicles
Leasehold improvements
7 years 10 years 10 years
Remaining term of the lease
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