Page 26 - FY 2021-2022 Audited Financial Statements

Child Care Resource Center, Inc. Notes to Financial Statements
Note 11 – Commitments and Contingencies and Subsequent Events (continued)
In July 2021, the State of California approved AB 131 that allocated funds to provide financial relief related to the pandemic to child care providers paid with child care subsidies, including centers, family child care homes, and license-exempt providers. The funds were distributed to each child care provider as a flat-rate, one-time stipend of $600 per child enrolled in subsidized child care. CCRC received $21,767,210 and had expended all funds through June 30, 2022.
Construction and work-in-progress commitments – In March 2021, CCRC received additional funding from the Office of Head Start to expand its Early Head Start program to serve more infants and toddlers. Expansion of the program included a construction project to convert a large retail building into a child care center in the city of Lancaster, Antelope Valley, California. As of June 30, 2022, $2,654,351 of the total $4,912,757 committed to this construction project was expended.
In July 2022, CCRC entered into a subscription agreement for the licensing and use of hosted software. The total commitment for this agreement is approximately $8.3 million for the set-up, training, and use over approximately 7 years. Certain costs under this arrangement will qualify for capitalization once payments toward the commitment begin.
Note 12 – Liquidity and Availability
The following table reflects CCRC’s financial assets as of June 30, 2022 and 2021, reduced by amounts not available for general use because of contractual restrictions within one year of the statements of financial position date:
2022
Cash and cash equivalents
Cash held in reserve
Government contracts receivable
Investments 14,267,807
2021
$ 28,931,581 1,421,659 18,497,995 8,722,078 664,225
Other receivables
Total financial assets
Less: cash held in reserve
Financial assets available to meet cash needs for general expenditures within one year
$
210,400
46,471,711 (1,110,924)
45,360,787
$
58,237,538 (1,421,659)
56,815,879
$
3,861,980
1,110,924 27,020,600
As part of CCRC’s liquidity management plan, CCRC structures its financial assets to be available as obligations come due. Cash is held in interest-bearing and non-interest-bearing bank accounts and is invested in short-term fixed income investments. As discussed in Note 7, CCRC has a committed line of credit that it could draw upon in the event of an unanticipated liquidity need.
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