Res 2002-072 - Laserfiche WebLink

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SOUTHSIDE COMMUNITY CENTER, INC. NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Nature of Activities Southside Community Center (the Center), which was incorporated August 30, 1972 under the Texas Non-Profit Corporation Act, is an agency of social concem committed to the development of the neighborhoods of San Marcos. It is govemed by a Board of Directors represented by the primary geographic neighborhoods, the United Methodist Church and the community at large. The Center operates a homeless shelter and thrift shop, renovates homes for families in low-income neighborhoods and, since 1997, operates the Sunrise Village center for senior citizens which provides housing to qualified low-income elderly. Support for the Center's programs comes from govemment grants, church and private donations and revenues from a thrift shop, summer work camp, and rentals. Financial Statement Presentation The Center elected to adopt Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. Under SFAS No. 117, the Center is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. In addition, the Center is required to present a statement of cash flows. Contributions The Center does not receive unconditional promises to give, therefore, contributions are recorded as received. All contributions are available for unrestricted use unless specifically restricted by the donor. Conditional promises to give are recognized when the conditions on which they depend are substantially met. Conditional promises are contracts and grants from local and state governmental agencies. Property and Equipment Property and equipment are recorded at cost or at estimated fair value at the date of the gift. Donations are reported as unrestricted support unless the donor has restricted the donated asset to a specific purpose. The Center follows the practice of capitalizing all expenditures of property and equipment in excess of $100 with an estimated useful life of one year or longer. Depreciation is provided using the straight-line method over the estimated useful lives of the assets. An exception is made for property and equipment purchased with govemment grants. These assets were expensed when purchased, and then set up separately in a capital assets account for accountability to the government through temporarily restricted net assets. The property housing the administrative offices and shelter is held in the name of the Women's Division of the General Board of Global Ministries of the United Methodist Church headquartered in New York. The facilities are used at no cost to the Center, and no value is recorded in the financial statements for this use. 12