Page 15 - FY 2021-2022 Audited Financial Statements

Child Care Resource Center, Inc. Notes to Financial Statements
Note 2 – Summary of Significant Accounting Policies (continued)
Investments – Investments are reported at their fair value. Interest, dividends, and realized and unrealized gains and losses, net of investment expenses from investments, are included in investment (loss) income on the statements of activities.
Property and equipment – Property and equipment are carried at cost for items purchased or fair value at the date of the gift for donated items. Repairs and maintenance are charged to expense when incurred. 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 office equipment Vehicles
Building
Building improvements
Leasehold improvements
4 years
10 years
7 years
30 years
5–15 years
Lesser of useful life or remaining term of the lease
Impairment of long-lived assets – Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows (undiscounted and without interest) expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less the cost to sell. At June 30, 2022 and 2021, management determined that long-lived assets were not impaired.
Due to funding agencies – Due to funding agencies represents amounts received under grant contracts which have not been earned by the end of the grant period and must be repaid to the funding source, typically within the upcoming fiscal year.
Deferred revenue and advance payments – Deferred revenue and advance payments represent amounts received in advance for programs for which services must be provided.
Deferred rent – CCRC recognizes rent expense on a straight-line basis over the terms of its leases. The difference between rent expense and the actual cash rent payments is classified as a deferred rent liability.
Net assets – The net assets of CCRC are classified into two categories based on the nature of the donor-imposed restriction as follows:
Net assets without donor restrictions – Include those assets over which CCRC has discretionary control in carrying out the operations of CCRC. CCRC has elected to report, as an increase in net assets without donor restrictions, any restricted revenue received in the current period for which the restrictions have been met in the current period.
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