Page 23 - 2019 - 2020 Child Care Resource Center Audited Financial Statements

Child Care Resource Center, Inc. Notes to Financial Statements
Note 11 – Commitments and Contingencies (continued)
COVID-19 – In March 2020, the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak has continued to spread and has adversely affected workforces, economies, and financial markets globally, potentially leading to economic volatility. It has also disrupted the normal operations of many businesses including CCRC’s. Management has been closely monitoring the impact of COVID-19 on CCRC’s operations including the impact on CCRC’s employees. It is impossible to predict all effects and the ultimate impact of the COVID-19 pandemic, as the situation is rapidly evolving. The duration and intensity and resulting disruption to operations is uncertain but may influence governmental allocations and negatively impact collections of receivables.
Note 12 – Liquidity and Availability
The following table reflects CCRC’s financial assets as of June 30, 2020 and 2019, reduced by amounts not available for general use because of contractual restrictions within one year of the statements of financial position date:
2020
Cash and cash equivalents
Cash held in reserve
Government contracts receivable
Investments 7,765,937
2019
$ 20,699,025 581,781 9,670,130 2,690,220 313,538
Other receivables
Total financial assets
Less: cash held in reserve
Financial assets available to meet cash needs for general expenditures within one year
$
425,805
43,955,329 (586,938)
43,368,391
$
33,954,694 (581,781)
33,372,913
$
12,672,595 586,938 22,504,054
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 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.
21