Finance Committee Agenda and Packet 2014 11 18

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THE ASSOCIATION FOR COMMUNITY LIVING IN BOULDER COUNTY NOTES TO THE FINANCIAL STATEMENTS NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Association for Community Living in Boulder County (the Association) is a private not for profit corporation that was formed in the early 1960's and was incorporated in 1974. The Association believes that people with developmental disabilities belong in the community in natural proportions - to live, to work, and to participate fully in all aspects of community life. The Association exists to ensure these rights by acting as a catalyst to promote attitudes, practices, programs, and policies that result in full participation. The significant accounting policies are described below. Basis of Presentation The financial statements are presented on the basis of unrestricted, temporarily restricted, and permanently restricted net assets. Unrestricted amounts are those currently available at the discretion of the board for use in the Association's programs and those resources invested in land, buildings and equipment. Temporarily restricted amounts are those which are restricted by donors for specific purposes. Permanently restricted amounts are those restricted by donors in perpetuity as endowments. Revenue Recognition Contributions (a principal source of revenue) are recognized as revenue when they are received or unconditionally pledged. The Association reports gifts of cash and other assets as restricted support if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. The Association reports gifts of land, buildings and equipment as unrestricted support unless explicit donor stipulations specify how the donated assets must be used. Gifts of long -lived assets with explicit restrictions that specify how the assets are to be used and gifts of cash or other assets that must be used to acquire long -lived assets are reported as restricted support. Absent explicit donor stipulations about how long those long -lived assets must be maintained, the Association reports expirations of donor restrictions when the donated or acquired long -lived assets are placed in service. Contributions of services shall be recognized if the services received create or enhance nonfinancial assets or require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation. The Association receives services from a large number of volunteers who give significant amounts of their time to the Association's programs, but no amounts have been reflected for these types of donated services, as they do not meet the criteria for recognition. Cash and Cash Equivalents The Association considers all unrestricted highly liquid investments with an original maturity of three months or less to be cash equivalents. 7 22