Agenda - 2-17-14 Reg. Meeting - Laserfiche WebLink

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033 JOHNSTON- LEE - HARNETT COMMUNITY ACTION, INCORPORATED Notes to Financial Statements June 30, 2013 1. ORGANIZATION Johnston - Lee - Harnett Community Action, Incorporated (the Organization) is a non - profit, tax - exempt entity incorporated in April 1966 under the laws of the State of North Carolina. Its purpose is to operate programs designated to combat and alleviate poverty and to aid the disadvantaged to help themselves become self - reliant. Areas served are Johnston, Lee, and Harnett counties. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Organization reports information regarding its financial position and activities according to two classes of net assets: unrestricted net assets and temporarily restricted net assets. Unrestricted net assets account for all resources expended and for contributions which have no restriction on use, or for which a restriction has been met or has expired. Temporarily restricted net assets account for contributions made that have donor - imposed restrictions which have not been met as of the date of the financial statements. In order to ensure observance of limitations and restrictions placed on the use of the resources available to the Organization, the internal operating accounts are maintained in accordance with the principles of fund accounting. This is the procedure by which resources for various purposes are classified into funds that are in accordance with activities or objectives specified. These financial statements, however, have been prepared to focus on the entity as a whole and to present transactions according to the existence or absence of donor - imposed restrictions. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America includes the use of estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Cash and Cash Eauivalents Federal and state funds are kept in separate bank accounts at various North Carolina regional banks. All certificates of deposit are considered to be cash equivalents. Certificates of deposit at June 30, 2013 were $129,400 held with various financial institutions maturing through January 2014 with varying interest rates from .10% to .25 %. All certificates are subject to early withdrawal penalties. At June 30, 2013, cash deposits of $400,680 were in excess of federally insured amounts. None of these uninsured amounts were related to federal programs. Receivables All receivables are stated at the amount management expects to collect from outstanding balances. Based on experience, management believes that they are fully collectible. Therefore, no allowance for doubtful accounts has been recorded. In the event that an outstanding balance could not be collected, it would be written down with a charge against bad debt loss and a credit to the receivables balance. Past due status is determined based on contractual terms. C