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Child Care Resource Center, Inc. Notes to Financial Statements
Note 2 – Summary of Significant Accounting Policies (continued)
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, 2018 and 2017.
Government contracts receivable – Government contracts receivable consists of reimbursements due from various program funding sources for services performed prior to year end. CCRC has not experienced losses from past uncollected government contracts receivable and therefore has not recognized an allowance for uncollectable receivables at June 30, 2018 and 2017.
Other receivables – Other receivables consist of amounts due from various transactions. CCRC carries its receivables at invoiced amounts less allowance for doubtful accounts. CCRC does not accrue interest on its receivables. On a periodic basis, CCRC evaluates its accounts receivable and establishes allowances based on overdue accounts and a history of past write-offs. There were no allowances recorded for the years ended June 30, 2018 and 2017.
Investments – Cash and cash equivalents, fixed income funds, equity securities, real estate funds, and commodity funds are reported at their fair value. Interest, dividends, and realized and unrealized gains and losses from investments are included in investment income on the statements of activities.
Property and equipment – Property and equipment are carried at cost for items purchased or fair value at the date of the gift for donated items. Repairs and maintenance are charged to expense when incurred. CCRC capitalizes computer equipment and other property items in excess of $2,000 and expenses amounts below these thresholds. Depreciation is computed using the straight-line method over estimated useful lives as follows:
Computer equipment and software Furniture, fixtures, and office equipment Vehicles
Building
Building improvements Leasehold improvements
7 years 10 years 10 years 30 years
5 -15 years Lesser of useful life or remaining term of the lease
Due to funding agencies – Due to funding agencies represents amounts received under grant contracts which have not been earned by the end of the grant period and must be repaid to the funding source.
Deferred revenue and advance payments – Deferred revenue and advance payments represents amounts received in advance for programs to be initiated in the future, for which services must be provided.
Deferred rent – CCRC recognizes rent expense on a straight-line basis over the terms of the leases. The difference between rent expense and the actual cash rent payments is classified as a deferred rent liability. Deferred rent totaled $126,805 and $250,758 at June 30, 2018 and 2017, respectively.
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