Page 23 - Child Care Resource Center
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CCRC maintains two contributory retirement plans for its eligible employees. The plans are a defined contribution pension plan under Internal Revenue Code Section 403(b) that is available to all of its employees with at least ninety days of employment and a defined contribution plan under Section 457(b) that is available to eligible executive management employees. CCRC provides an employer match to the 403(b) plan based on 50% of employee contributions up to the first 4% deferred. During the years ended June 30, 2021 and 2020, CCRC made discretionary employer contributions to these plans totaling $2,265,974 and $1,706,705, respectively, which are recorded within “employee benefits” in the accompanying statements of functional expenses.
Note 11 – Commitments and Contingencies
Contingencies – Grant revenue from federal, state, and local agencies is subject to review by funding agencies under the terms of their contracts. The review could result in the disallowance of expenditures under the terms of the grant or reductions of future grant funds. Based on prior experience, management believes that costs ultimately disallowed, if any, would not materially affect the financial position of CCRC.
Legal matters – CCRC is subject to various litigation claims that arise in the ordinary course of business. It is the opinion of management, after consultation with its legal counsel, that the ultimate disposition of these matters will not have a material adverse effect on CCRC’s statements of financial position and that no accruals for any matters are necessary at June 30, 2021 and 2020.
Leases – CCRC leases various equipment and facilities under non-cancelable operating lease agreements expiring at various dates through 2025. The future minimum lease payments required under these lease agreements at June 30, 2021, are as follows:
Years Ending June 30, 2022
2025 2026
3,555,443 2,370,480 2,117,324
511,290 6,000
Child Care Resource Center, Inc. Notes to Financial Statements
 Note 10 – Retirement Plans
    Rent expense for facilities includes common maintenance charges. Total rent expense for the years ended June 30, 2021 and 2020, was $4,634,901 and $4,309,298, respectively.

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