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Note 6 – Property and Equipment
Property and equipment at June 30, 2017 and 2016 is as follows:
Leasehold improvements Computer equipment and software Office equipment
Furniture and fixtures
Vehicles
Less accumulated depreciation and amortization Property and equipment, net
June 30,
Child Care Resource Center, Inc. Notes to Financial Statements
$
2017
1,623,057 4,107,491 5,302,445 2,135,826 1,199,870
14,368,689 (9,716,274)
4,652,415
$
2016
1,340,874 3,798,943 4,910,565 2,078,227 1,144,562
13,273,171 (8,795,229)
4,477,942
$
$
Depreciation and amortization expense for the years ended June 30, 2017 and 2016 amounted to $1,120,018 and $1,099,376, respectively.
Note 7 – Line of Credit
At June 30, 2016, CCRC had a revolving line of credit with East West Bank of $8,000,000 which expired on March 15, 2017. This agreement was terminated in 2017.
At June 30, 2016, CCRC also had a demand line of credit with U.S. Bank of $1,300,000 which would expire upon CCRC’s demand. This agreement was terminated in 2017.
At June 30, 2017, CCRC had a revolving line of credit with Grandpoint Bank of $8,000,000 which will expire on June 1, 2019. Borrowings bear an interest equal to the Wall Street Journal prime rate computed based on a 365/360 basis. The effective interest rate at June 30, 2017 was 3.5% per annum. Collateral used to secure the line of credit does not include any property acquired or improved with federal funds from the DHHS – ACF for the benefit of the Head Start Program. At June 30, 2017 and 2016, there were no outstanding balances on the line of credit.
Note 8 – Fair Value of Financial Instruments
The carrying amounts of cash, receivables, accounts payable, and accrued expenses approximate fair value due to the short maturity of these instruments.
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