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Child Care Resource Center, Inc. Notes to Financial Statements
Note 2 – Summary of Significant Accounting Policies (continued)
Net assets – The net assets of CCRC are classified into three categories based on the nature of the
donor imposed restriction as follows:
 Unrestricted net assets 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 unrestricted net assets, any restricted revenue received in the current period for which the restrictions have been met in the current period.
 Temporarily restricted net assets include those assets which are subject to a donor restriction and for which the applicable restriction was not met as of the end of the current reporting period.
 Permanently restricted net assets include those assets which are subject to a non􏰀expiring donor restriction, such as endowments. As of June 30, 2017 and 2016, CCRC had no permanently restricted net assets.
Grant revenue – Grant revenue consists of grants received from CDE, Department of Health & Human Services – Administration for Children & Families ("DHHS – ACF"), Los Angeles County – Department of Public Health (" LADPH") and various governmental funding sources. These sources of support are to be spent for specific purposes. Child care services and general and administrative expenses are funded in part by CDE, DHHS – ACF, LADPH and other grants, which are subject to annual budget negotiations and availability of funds. Consequently, revenues for these transactions are recognized as the expenditures are incurred. Any difference between expenses incurred and the total funds received (not to exceed the grant maximum) is recorded as Government contracts receivable or due to funding agencies.
Family fees – Under the Child Care Financial Assistance Program, families may be responsible for paying a portion of their child care referred to as family fees. Family fees are determined based on the family’s income and size. CCRC collects family fees on the first day of every month and recognizes when due.
Fees for services – CCRC receives support from the Los Angeles County Department of Public Social Services ("DPSS") under the CalWORKs welfare-to-work program. CCRC receives reimbursements for payments to providers and an administrative fee per family served per month under this program. Amounts received under this program are reflected as "fees for services" in the accompanying statements of activities as services are performed.
Contributions – CCRC recognizes contributions, including unconditional promises to give, as support in the period received. CCRC reports contributions of cash and other assets as restricted support if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends and/or purpose restriction is accomplished, temporarily restricted net assets are reclassified as unrestricted net assets and reported in the statements of activities as net assets released from restrictions.
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