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 (CONTINUED) Investments Investments in marketable securities with readily determinable fair values and all investments in debt securities are stated at their fair values in the statement of financial position. Unrealized gains and losses are included in the change in net assets in the statements of activities. Concentrations of Credit Risk Financial instruments that potentially subject the Association to concentration of credit risk consist principally of cash and cash equivalents, and investment securities. Property and Equipment Property and equipment are stated at cost and are depreciated over the estimated useful lives of the assets ranging from three to thirty -nine years using the straight line method of depreciation. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Income Taxes The Association is exempt from income tax under Section 501(c)(3) of the U.S. Internal Revenue Code (IRC) and comparable state law, and contributions to it are tax deductible within the limitations prescribed by the Code. The Association has been classified as a publicly supported association which is not a private foundation under Section 509(a) of the Code. Income generated from activities unrelated to the Association's exempt purpose is subject to tax under IRC Section 511. The Association's ending open audit periods are 2010 through 2013. The Association did not have any material unrelated business income tax liability or significant uncertain tax positions for the years ended December 31, 2013 and 2012. Allocation of Expenses The costs of providing the various programs and supporting activities of the Association have been summarized on a functional basis in the statement of activities. Accordingly, certain costs have been allocated among the program and supporting activities. Cash Deposits in Excess of Federally Insured Limits The Association has determined that current operational cash needs will occasionally result in cash balances in excess of insured limits. Subsequent Events The Association's financial statements were available to be issued on April 15, 2014, and this is the date through which subsequent events were evaluated. The Association did not identify any subsequent events requiring disclosure. Other Matters Advertising costs are expensed as incurred. 8 23