Page 19 - FY 2021-2022 Audited Financial Statements

Child Care Resource Center, Inc. Notes to Financial Statements
Note 3 – Concentration of Credit Risk (continued)
Both governmental and private pay sources have instituted cost-containment measures designed to limit payments made to providers of child care services, and there can be no assurance that future measures designed to limit payments made to providers will not adversely affect reimbursement to CCRC. Furthermore, government reimbursement programs are subject to statutory and regulatory changes, retroactive rate adjustments, administrative rulings, and government funding restrictions, all of which could materially decrease the services covered or the rates paid to CCRC for its services.
A majority of CCRC’s annual funding, $398,117,065 or 99.8% and $401,162,658 or 99.6% in 2022 and 2021, respectively, of total revenue and support without donor restriction is derived from grant agreements and contracts for fees for services collected from federal and nonfederal agencies and family fees associated with those contracts. CCRC has no reason to believe that relationships with these agencies will be discontinued in the foreseeable future. However, any interruption of these relationships (e.g., the failure to renew grant agreements, withholding of funds, or significant decreases to funding) would adversely affect CCRC’s ability to finance its ongoing operations.
Note 4 – Government Contracts Receivable
Government contracts receivable at June 30, 2022 and 2021, are as follows: 2022
2021
10,183,661 - 331,009 2,294,219 761,965
2,909,840
360,258 232,705
493,685
415,401 195,358 249,483
70,411 18,497,995
California Department of Education
California Department of Social Services
California Health & Human Services
Child Care Alliance of Los Angeles
County of Los Angeles DPSS – CalWORKs Stage I Department of Health and Human Services –
Administration for Children & Families
Los Angeles County Children and Families First
Proposition 10 Commission (First 5 LA)
Los Angeles County – Department of Public Health San Bernardino County Children and Families
Commission (First 5 SB)
San Bernardino County Preschool Service Department –
Early Head Start – Child Care Partnership
San Bernardino County – Superintendent of Schools San Bernardino County
Other government funding sources
Government contracts receivable are all due within one year.
$
847,665 10,253,416
477,453 2,018,503 3,668,089
6,543,970
407,720 152,909
485,025
904,484 191,461 806,967 262,938
27,020,600
$
$
$
17