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Research & Program Evaluation – CCRC's Research & Evaluation staff ensures optimal services for families and children by providing internal and external stakeholders with useful tools and information that can be used for program evaluation, forecasting and strategic planning, contract compliance, and advocacy.
Note 2 – Summary of Significant Accounting Policies
Basis of presentation – The financial statements of CCRC have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States and accordingly reflect all significant receivables, payables, and other liabilities. The significant accounting policies followed are described below to enhance the usefulness of the financial statements to the reader.
Comparative financial statements – The financial statements include certain prior-year summarized comparative information in total, but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with CCRC’s financial statements for the year ended June 30, 2016, from which the summarized information was derived.
Reclassification – Certain prior year account balances have been reclassified to conform to the current year’s presentation and have had no significant impact on the financial statements.
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 and reserve funds – Cash held in reserve is cash whose use by CCRC has been limited under contract funding terms and conditions. Included in cash held in reserve is $512,915 and $512,658 related to contracts with the California Department of Education ("CDE") at June 30, 2017 and 2016, respectively. 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 related liabilities for cash held in reserve for contracts with CDE has been reflected in Reserve Funds in the accompanying statements of financial position at June 30, 2017 and 2016.
Child Care Resource Center, Inc. Notes to Financial Statements
Note 1 – Nature of Operations (continued)
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