Title: NOTE 1: Organization and Nature of Activities
Accounting Policies: Basis of Accounting Presentation
RTMC prepares its financial statements on an accrual basis in accordance with accounting principles
generally accepted in the United States of America (U.S. GAAP). Cash and Cash Equivalents
Cash equivalents are those purchases with original maturities of three months or less. Cash equivalents
consist of demand deposits and money market accounts. Cash and cash equivalents for purposes of the
statement of cash flows exclude permanently restricted cash and cash equivalents.
Accounts Receivable
Accounts receivable represent the net realizable value of the amounts due from the government and
other funding sources. Management reviews grants and contributions are receivable to determine if
any receivables will potentially be uncollectible. Receivable balances that are determined to be
potentially uncollectible are included in the allowances for doubtful accounts. After all, attempts to
collect a receivable have failed, the receivable is written off against the allowance. The allowance for
doubtful accounts was $2,750 as of June 30, 2023. Actual results could differ from this estimate.
Investments
Investments consist of the Government money market and mutual funds. The funds are stated at fair
value based on a readily determinable market value. Investment income or loss (including realized
and unrealized gains and losses on investments, interest, and dividends) is included in the statement
of activities.
Equipment
Equipment is capitalized at cost. It is RTMC’s policy to capitalize expenditures for these items over
$600. Equipment depreciation is provided over three-to-five-year estimated useful lives using the
straight-line method. During the fiscal years ended June 30, 2023 depreciation expenses amounted
to $543.
Risk and Uncertainties
RTMC utilizes various investment instruments. Investment securities in general are exposed to various
risks, such as interest rate risk, credit risk, and overall market volatility. Due to the level of risk
associated with certain investment securities, it is reasonably possible that changes in the values of
investment securities could occur in the near term and that such changes could materially affect the
amounts reported in the balance sheet.
As of June 30, 2023, the Organization’s cash and cash equivalents were deposited in two financial
institutions under three separate accounts. Accounts that bear interest at these institutions are insured
by the Federal Deposit Insurance Corporation up to $250,000 in aggregate. RTMC did not have
uninsured balance amount as of June 30, 2023.
Deferred Revenue
Revenue from donors is deferred and recognized as earned in the following fiscal year as the projects are
completed.
Classification of Net Assets
Net assets of RTMC are classified based on the presence or absence of donor-imposed restrictions. Net
assets are comprised of two groups as follows:
• Net Assets - Without Donor Restrictions – Amounts that are not subject to usage restrictions
based on donor-imposed requirements. This class also includes assets previously restricted
where restrictions have expired or been met.
• Net Assets - With Donor Restrictions – Assets are subject to usage limitations based on
donor-imposed or grantor restrictions. These restrictions may be temporary or may be based
on a particular use. Restrictions may be met by the passage of time or by actions of the
Organization. Certain restrictions may need to be maintained in perpetuity.
RMTC reported Net Assets with Donor Restrictions of $277,800 as of June 30, 2023.
Public Support and Revenue
Support funded by government contracts, which qualify as conditional promises to give, is
recognized when the condition of performing the contracted services is met. Revenue is therefore
recognized as earned and the conditions of eligible expenses are incurred. Contributions are generally
available without donor restrictions. Unconditional promises to give are recorded as received.
Grants and other contributions of cash and other assets are reported with donor restrictions if they are
received with donor stipulations that limit the use of donated assets. When a donor restriction expires,
that is, when a stipulated time restriction ends or purpose restriction is accomplished, Net Assets -
With Donor Restrictions are reclassified to Net Assets - Without Donor Restrictions and reported in
the statement of activities as net assets released from restrictions.
Endowment contributions and investments are permanently restricted by the donor. Investment
earnings available for distribution are recorded in Net Assets - Without Donor Restrictions.
Contributions of donated non-cash assets are recorded at their fair values in the period received.
Contributions of donated services that create or enhance nonfinancial assets or that require specialized
skills, are provided by individuals possessing those skills, and would typically need to be purchased if
not provided by donation, are recorded at their fair values in the period received.
Earnings related to Net Assets - With Donor Restrictions will be included in Net Assets - Without
Donor Restrictions unless otherwise unless specifically required to be included in Net Assets - Without
Donor Restrictions by the donor or by applicable State law.
Functional Allocation of Expenses
The costs of providing the various programs and activities have been summarized on a functional basis in the comparative statements of activities. Certain costs have been allocated between program
activities, fundraising activities, and management and general based on management’s estimates.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires the use of management’s estimates and assumptions that affect the reported amounts of assets
and liabilities, and disclosure of contingent assets and liabilities at the date of financial statements, and
the reported amounts of revenues and expenses during the reporting period. Actual results could differ
from those estimates.
Accounting for Uncertainty in Income Taxes
RTMC is a not-for-profit corporation and in 1991had been granted tax-exempt status by the Internal
Revenue Service under provisions of Internal Revenue Code Section 501 (c)(6). The Organization files
its Form 990, Return of Organization Exempt from Income Tax, with the Internal Revenue Service
(IRS) and its Form AG990-IL Illinois Charitable Organization Annual Report, with the Illinois State
Attorney Generally. The Organization is generally no longer subject to examination by IRS for years
before 2019. As of June 30, 2023, there were no material uncertain income tax positions.
Liquidity and Availability of Financial Assets
RTMC has $1,455,969 of financial assets available within one year of June 30, 2023, to meet cash
needs for operating expenses consisting of cash and cash equivalents of $665,482, Investments of
$616,022, accounts receivable, net of allowance for doubtful accounts, of $155,684, and prepaid
insurance of $18,781. None of the financial assets are subject to the donor or other contractual
restrictions that make them unavailable for operating expenses within one year of June 30, 2023. RMTC
has a goal to maintain financial assets, which consist of cash and cash equivalents, on hand to meet 30
days of normal operating expenses, which are, on average, approximately $55,000. RMTC has the
policy to structure its financial assets to be available as its operating expenses, liabilities, and other
obligations come due. In addition, RMTC manages its liquidity by developing and adopting annual
operating budgets that provide sufficient funds for operating expenses to meet its liabilities and other
obligations as they become due.
De Minimis Rate Used: Both
Rate Explanation: We set an agreed upon percentage of grant funds for administration and overhead with the City of Chicago Heights so did not include the de minimis cost rate. Cook County will only allow for reimbursement of personnel expenses and not other overhead for CDBG funds so we do not use the de minimis cost rate. The other two grants (ARPA- Cook County and CDBG - City of Chicago) we used the de minimis cost rate.
Rebuilding Together Metro Chicago, Inc. (“RTMC”) is a not-for-profit corporation, which was
established in 1991 and is located, in Chicago, Illinois.
RTMC has repaired thousands of homes and hundreds of community facilities, with the assistance of
multiple volunteers. RTMC works in partnership with Chicago land communities, corporations, trade
unions, service clubs, and volunteers, with an overall goal to improve the homes and neighborhoods
of disadvantaged residents. RTMC’s efforts are sustainable and often act as a catalyst for
additional neighborhood improvements when it concentrates in a small geographic area.
RTMC assists individuals in less fortunate communities by sponsoring volunteer projects to repair
homes of people in need as well as other important community buildings.
RTMC is an affiliate of Rebuilding Together, a national organization dedicated to providing
critical home repairs, modifications, and improvements for low-income homeowners. Since its
founding in 1988, Rebuilding Together affiliates and nearly 100,000 volunteers have worked on over
300 community facilities, gardens, and projects nationwide.
RTMC provides a wide variety of charitable, and humanitarian services and programs include:
National Rebuilding Day: Held on the last Saturday in April where the Organization participates
with other affiliates across the country in a repair project.
Give Back Day: Many volunteers work together at relatively unskilled tasks while helping to
strengthen and build the Chicagoland community.
Make a Difference Day: Every year on the 4ᵗʰ Saturday in October, RTMC dispatches volunteers to a
neighborhood to provide repairs to homes in one neighborhood. Volunteers install grab bars,
handrails, smoke alarms, CO detectors, doorbells, and other safety- focused repairs to help
residents live in safety and independence.
Safe at Home: Homeowners are provided with modifications and small accessibility improvements and
repairs that include installation of grab bars, handrails, and smoke detectors.
Warm the Metro: Homeowners are provided with furnace checks and boiler tune-ups to help keep them
safe and warm.
American Rescue Plan: RTMC is engaged in two separate agreements with Cook County of Illinois and
the city of Chicago Heights for home rebuilding projects which is funded through the American
Rescue Plan Act of 2021.
Title: NOTE 2: Summary of Significant Accounting Policies
Accounting Policies: Basis of Accounting Presentation
RTMC prepares its financial statements on an accrual basis in accordance with accounting principles
generally accepted in the United States of America (U.S. GAAP). Cash and Cash Equivalents
Cash equivalents are those purchases with original maturities of three months or less. Cash equivalents
consist of demand deposits and money market accounts. Cash and cash equivalents for purposes of the
statement of cash flows exclude permanently restricted cash and cash equivalents.
Accounts Receivable
Accounts receivable represent the net realizable value of the amounts due from the government and
other funding sources. Management reviews grants and contributions are receivable to determine if
any receivables will potentially be uncollectible. Receivable balances that are determined to be
potentially uncollectible are included in the allowances for doubtful accounts. After all, attempts to
collect a receivable have failed, the receivable is written off against the allowance. The allowance for
doubtful accounts was $2,750 as of June 30, 2023. Actual results could differ from this estimate.
Investments
Investments consist of the Government money market and mutual funds. The funds are stated at fair
value based on a readily determinable market value. Investment income or loss (including realized
and unrealized gains and losses on investments, interest, and dividends) is included in the statement
of activities.
Equipment
Equipment is capitalized at cost. It is RTMC’s policy to capitalize expenditures for these items over
$600. Equipment depreciation is provided over three-to-five-year estimated useful lives using the
straight-line method. During the fiscal years ended June 30, 2023 depreciation expenses amounted
to $543.
Risk and Uncertainties
RTMC utilizes various investment instruments. Investment securities in general are exposed to various
risks, such as interest rate risk, credit risk, and overall market volatility. Due to the level of risk
associated with certain investment securities, it is reasonably possible that changes in the values of
investment securities could occur in the near term and that such changes could materially affect the
amounts reported in the balance sheet.
As of June 30, 2023, the Organization’s cash and cash equivalents were deposited in two financial
institutions under three separate accounts. Accounts that bear interest at these institutions are insured
by the Federal Deposit Insurance Corporation up to $250,000 in aggregate. RTMC did not have
uninsured balance amount as of June 30, 2023.
Deferred Revenue
Revenue from donors is deferred and recognized as earned in the following fiscal year as the projects are
completed.
Classification of Net Assets
Net assets of RTMC are classified based on the presence or absence of donor-imposed restrictions. Net
assets are comprised of two groups as follows:
• Net Assets - Without Donor Restrictions – Amounts that are not subject to usage restrictions
based on donor-imposed requirements. This class also includes assets previously restricted
where restrictions have expired or been met.
• Net Assets - With Donor Restrictions – Assets are subject to usage limitations based on
donor-imposed or grantor restrictions. These restrictions may be temporary or may be based
on a particular use. Restrictions may be met by the passage of time or by actions of the
Organization. Certain restrictions may need to be maintained in perpetuity.
RMTC reported Net Assets with Donor Restrictions of $277,800 as of June 30, 2023.
Public Support and Revenue
Support funded by government contracts, which qualify as conditional promises to give, is
recognized when the condition of performing the contracted services is met. Revenue is therefore
recognized as earned and the conditions of eligible expenses are incurred. Contributions are generally
available without donor restrictions. Unconditional promises to give are recorded as received.
Grants and other contributions of cash and other assets are reported with donor restrictions if they are
received with donor stipulations that limit the use of donated assets. When a donor restriction expires,
that is, when a stipulated time restriction ends or purpose restriction is accomplished, Net Assets -
With Donor Restrictions are reclassified to Net Assets - Without Donor Restrictions and reported in
the statement of activities as net assets released from restrictions.
Endowment contributions and investments are permanently restricted by the donor. Investment
earnings available for distribution are recorded in Net Assets - Without Donor Restrictions.
Contributions of donated non-cash assets are recorded at their fair values in the period received.
Contributions of donated services that create or enhance nonfinancial assets or that require specialized
skills, are provided by individuals possessing those skills, and would typically need to be purchased if
not provided by donation, are recorded at their fair values in the period received.
Earnings related to Net Assets - With Donor Restrictions will be included in Net Assets - Without
Donor Restrictions unless otherwise unless specifically required to be included in Net Assets - Without
Donor Restrictions by the donor or by applicable State law.
Functional Allocation of Expenses
The costs of providing the various programs and activities have been summarized on a functional basis in the comparative statements of activities. Certain costs have been allocated between program
activities, fundraising activities, and management and general based on management’s estimates.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires the use of management’s estimates and assumptions that affect the reported amounts of assets
and liabilities, and disclosure of contingent assets and liabilities at the date of financial statements, and
the reported amounts of revenues and expenses during the reporting period. Actual results could differ
from those estimates.
Accounting for Uncertainty in Income Taxes
RTMC is a not-for-profit corporation and in 1991had been granted tax-exempt status by the Internal
Revenue Service under provisions of Internal Revenue Code Section 501 (c)(6). The Organization files
its Form 990, Return of Organization Exempt from Income Tax, with the Internal Revenue Service
(IRS) and its Form AG990-IL Illinois Charitable Organization Annual Report, with the Illinois State
Attorney Generally. The Organization is generally no longer subject to examination by IRS for years
before 2019. As of June 30, 2023, there were no material uncertain income tax positions.
Liquidity and Availability of Financial Assets
RTMC has $1,455,969 of financial assets available within one year of June 30, 2023, to meet cash
needs for operating expenses consisting of cash and cash equivalents of $665,482, Investments of
$616,022, accounts receivable, net of allowance for doubtful accounts, of $155,684, and prepaid
insurance of $18,781. None of the financial assets are subject to the donor or other contractual
restrictions that make them unavailable for operating expenses within one year of June 30, 2023. RMTC
has a goal to maintain financial assets, which consist of cash and cash equivalents, on hand to meet 30
days of normal operating expenses, which are, on average, approximately $55,000. RMTC has the
policy to structure its financial assets to be available as its operating expenses, liabilities, and other
obligations come due. In addition, RMTC manages its liquidity by developing and adopting annual
operating budgets that provide sufficient funds for operating expenses to meet its liabilities and other
obligations as they become due.
De Minimis Rate Used: Both
Rate Explanation: We set an agreed upon percentage of grant funds for administration and overhead with the City of Chicago Heights so did not include the de minimis cost rate. Cook County will only allow for reimbursement of personnel expenses and not other overhead for CDBG funds so we do not use the de minimis cost rate. The other two grants (ARPA- Cook County and CDBG - City of Chicago) we used the de minimis cost rate.
Basis of Accounting Presentation
RTMC prepares its financial statements on an accrual basis in accordance with accounting principles
generally accepted in the United States of America (U.S. GAAP). Cash and Cash Equivalents
Cash equivalents are those purchases with original maturities of three months or less. Cash equivalents
consist of demand deposits and money market accounts. Cash and cash equivalents for purposes of the
statement of cash flows exclude permanently restricted cash and cash equivalents.
Accounts Receivable
Accounts receivable represent the net realizable value of the amounts due from the government and
other funding sources. Management reviews grants and contributions are receivable to determine if
any receivables will potentially be uncollectible. Receivable balances that are determined to be
potentially uncollectible are included in the allowances for doubtful accounts. After all, attempts to
collect a receivable have failed, the receivable is written off against the allowance. The allowance for
doubtful accounts was $2,750 as of June 30, 2023. Actual results could differ from this estimate.
Investments
Investments consist of the Government money market and mutual funds. The funds are stated at fair
value based on a readily determinable market value. Investment income or loss (including realized
and unrealized gains and losses on investments, interest, and dividends) is included in the statement
of activities.
Equipment
Equipment is capitalized at cost. It is RTMC’s policy to capitalize expenditures for these items over
$600. Equipment depreciation is provided over three-to-five-year estimated useful lives using the
straight-line method. During the fiscal years ended June 30, 2023 depreciation expenses amounted
to $543.
Risk and Uncertainties
RTMC utilizes various investment instruments. Investment securities in general are exposed to various
risks, such as interest rate risk, credit risk, and overall market volatility. Due to the level of risk
associated with certain investment securities, it is reasonably possible that changes in the values of
investment securities could occur in the near term and that such changes could materially affect the
amounts reported in the balance sheet.
As of June 30, 2023, the Organization’s cash and cash equivalents were deposited in two financial
institutions under three separate accounts. Accounts that bear interest at these institutions are insured
by the Federal Deposit Insurance Corporation up to $250,000 in aggregate. RTMC did not have
uninsured balance amount as of June 30, 2023.
Deferred Revenue
Revenue from donors is deferred and recognized as earned in the following fiscal year as the projects are
completed.Classification of Net Assets
Net assets of RTMC are classified based on the presence or absence of donor-imposed restrictions. Net
assets are comprised of two groups as follows:
• Net Assets - Without Donor Restrictions – Amounts that are not subject to usage restrictions
based on donor-imposed requirements. This class also includes assets previously restricted
where restrictions have expired or been met.
• Net Assets - With Donor Restrictions – Assets are subject to usage limitations based on
donor-imposed or grantor restrictions. These restrictions may be temporary or may be based
on a particular use. Restrictions may be met by the passage of time or by actions of the
Organization. Certain restrictions may need to be maintained in perpetuity.
RMTC reported Net Assets with Donor Restrictions of $277,800 as of June 30, 2023.
Public Support and Revenue
Support funded by government contracts, which qualify as conditional promises to give, is
recognized when the condition of performing the contracted services is met. Revenue is therefore
recognized as earned and the conditions of eligible expenses are incurred. Contributions are generally
available without donor restrictions. Unconditional promises to give are recorded as received.
Grants and other contributions of cash and other assets are reported with donor restrictions if they are
received with donor stipulations that limit the use of donated assets. When a donor restriction expires,
that is, when a stipulated time restriction ends or purpose restriction is accomplished, Net Assets -
With Donor Restrictions are reclassified to Net Assets - Without Donor Restrictions and reported in
the statement of activities as net assets released from restrictions.
Endowment contributions and investments are permanently restricted by the donor. Investment
earnings available for distribution are recorded in Net Assets - Without Donor Restrictions.
Contributions of donated non-cash assets are recorded at their fair values in the period received.
Contributions of donated services that create or enhance nonfinancial assets or that require specialized
skills, are provided by individuals possessing those skills, and would typically need to be purchased if
not provided by donation, are recorded at their fair values in the period received.
Earnings related to Net Assets - With Donor Restrictions will be included in Net Assets - Without
Donor Restrictions unless otherwise unless specifically required to be included in Net Assets - Without
Donor Restrictions by the donor or by applicable State law.
Functional Allocation of Expenses
The costs of providing the various programs and activities have been summarized on a functional basis in the comparative statements of activities. Certain costs have been allocated between program
activities, fundraising activities, and management and general based on management’s estimates.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires the use of management’s estimates and assumptions that affect the reported amounts of assets
and liabilities, and disclosure of contingent assets and liabilities at the date of financial statements, and
the reported amounts of revenues and expenses during the reporting period. Actual results could differ
from those estimates.
Accounting for Uncertainty in Income Taxes
RTMC is a not-for-profit corporation and in 1991had been granted tax-exempt status by the Internal
Revenue Service under provisions of Internal Revenue Code Section 501 (c)(6). The Organization files
its Form 990, Return of Organization Exempt from Income Tax, with the Internal Revenue Service
(IRS) and its Form AG990-IL Illinois Charitable Organization Annual Report, with the Illinois State
Attorney Generally. The Organization is generally no longer subject to examination by IRS for years
before 2019. As of June 30, 2023, there were no material uncertain income tax positions.
Liquidity and Availability of Financial Assets
RTMC has $1,455,969 of financial assets available within one year of June 30, 2023, to meet cash
needs for operating expenses consisting of cash and cash equivalents of $665,482, Investments of
$616,022, accounts receivable, net of allowance for doubtful accounts, of $155,684, and prepaid
insurance of $18,781. None of the financial assets are subject to the donor or other contractual
restrictions that make them unavailable for operating expenses within one year of June 30, 2023. RMTC
has a goal to maintain financial assets, which consist of cash and cash equivalents, on hand to meet 30
days of normal operating expenses, which are, on average, approximately $55,000. RMTC has the
policy to structure its financial assets to be available as its operating expenses, liabilities, and other
obligations come due. In addition, RMTC manages its liquidity by developing and adopting annual
operating budgets that provide sufficient funds for operating expenses to meet its liabilities and other
obligations as they become due.
Title: NOTE 3: Donated Services
Accounting Policies: Basis of Accounting Presentation
RTMC prepares its financial statements on an accrual basis in accordance with accounting principles
generally accepted in the United States of America (U.S. GAAP). Cash and Cash Equivalents
Cash equivalents are those purchases with original maturities of three months or less. Cash equivalents
consist of demand deposits and money market accounts. Cash and cash equivalents for purposes of the
statement of cash flows exclude permanently restricted cash and cash equivalents.
Accounts Receivable
Accounts receivable represent the net realizable value of the amounts due from the government and
other funding sources. Management reviews grants and contributions are receivable to determine if
any receivables will potentially be uncollectible. Receivable balances that are determined to be
potentially uncollectible are included in the allowances for doubtful accounts. After all, attempts to
collect a receivable have failed, the receivable is written off against the allowance. The allowance for
doubtful accounts was $2,750 as of June 30, 2023. Actual results could differ from this estimate.
Investments
Investments consist of the Government money market and mutual funds. The funds are stated at fair
value based on a readily determinable market value. Investment income or loss (including realized
and unrealized gains and losses on investments, interest, and dividends) is included in the statement
of activities.
Equipment
Equipment is capitalized at cost. It is RTMC’s policy to capitalize expenditures for these items over
$600. Equipment depreciation is provided over three-to-five-year estimated useful lives using the
straight-line method. During the fiscal years ended June 30, 2023 depreciation expenses amounted
to $543.
Risk and Uncertainties
RTMC utilizes various investment instruments. Investment securities in general are exposed to various
risks, such as interest rate risk, credit risk, and overall market volatility. Due to the level of risk
associated with certain investment securities, it is reasonably possible that changes in the values of
investment securities could occur in the near term and that such changes could materially affect the
amounts reported in the balance sheet.
As of June 30, 2023, the Organization’s cash and cash equivalents were deposited in two financial
institutions under three separate accounts. Accounts that bear interest at these institutions are insured
by the Federal Deposit Insurance Corporation up to $250,000 in aggregate. RTMC did not have
uninsured balance amount as of June 30, 2023.
Deferred Revenue
Revenue from donors is deferred and recognized as earned in the following fiscal year as the projects are
completed.
Classification of Net Assets
Net assets of RTMC are classified based on the presence or absence of donor-imposed restrictions. Net
assets are comprised of two groups as follows:
• Net Assets - Without Donor Restrictions – Amounts that are not subject to usage restrictions
based on donor-imposed requirements. This class also includes assets previously restricted
where restrictions have expired or been met.
• Net Assets - With Donor Restrictions – Assets are subject to usage limitations based on
donor-imposed or grantor restrictions. These restrictions may be temporary or may be based
on a particular use. Restrictions may be met by the passage of time or by actions of the
Organization. Certain restrictions may need to be maintained in perpetuity.
RMTC reported Net Assets with Donor Restrictions of $277,800 as of June 30, 2023.
Public Support and Revenue
Support funded by government contracts, which qualify as conditional promises to give, is
recognized when the condition of performing the contracted services is met. Revenue is therefore
recognized as earned and the conditions of eligible expenses are incurred. Contributions are generally
available without donor restrictions. Unconditional promises to give are recorded as received.
Grants and other contributions of cash and other assets are reported with donor restrictions if they are
received with donor stipulations that limit the use of donated assets. When a donor restriction expires,
that is, when a stipulated time restriction ends or purpose restriction is accomplished, Net Assets -
With Donor Restrictions are reclassified to Net Assets - Without Donor Restrictions and reported in
the statement of activities as net assets released from restrictions.
Endowment contributions and investments are permanently restricted by the donor. Investment
earnings available for distribution are recorded in Net Assets - Without Donor Restrictions.
Contributions of donated non-cash assets are recorded at their fair values in the period received.
Contributions of donated services that create or enhance nonfinancial assets or that require specialized
skills, are provided by individuals possessing those skills, and would typically need to be purchased if
not provided by donation, are recorded at their fair values in the period received.
Earnings related to Net Assets - With Donor Restrictions will be included in Net Assets - Without
Donor Restrictions unless otherwise unless specifically required to be included in Net Assets - Without
Donor Restrictions by the donor or by applicable State law.
Functional Allocation of Expenses
The costs of providing the various programs and activities have been summarized on a functional basis in the comparative statements of activities. Certain costs have been allocated between program
activities, fundraising activities, and management and general based on management’s estimates.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires the use of management’s estimates and assumptions that affect the reported amounts of assets
and liabilities, and disclosure of contingent assets and liabilities at the date of financial statements, and
the reported amounts of revenues and expenses during the reporting period. Actual results could differ
from those estimates.
Accounting for Uncertainty in Income Taxes
RTMC is a not-for-profit corporation and in 1991had been granted tax-exempt status by the Internal
Revenue Service under provisions of Internal Revenue Code Section 501 (c)(6). The Organization files
its Form 990, Return of Organization Exempt from Income Tax, with the Internal Revenue Service
(IRS) and its Form AG990-IL Illinois Charitable Organization Annual Report, with the Illinois State
Attorney Generally. The Organization is generally no longer subject to examination by IRS for years
before 2019. As of June 30, 2023, there were no material uncertain income tax positions.
Liquidity and Availability of Financial Assets
RTMC has $1,455,969 of financial assets available within one year of June 30, 2023, to meet cash
needs for operating expenses consisting of cash and cash equivalents of $665,482, Investments of
$616,022, accounts receivable, net of allowance for doubtful accounts, of $155,684, and prepaid
insurance of $18,781. None of the financial assets are subject to the donor or other contractual
restrictions that make them unavailable for operating expenses within one year of June 30, 2023. RMTC
has a goal to maintain financial assets, which consist of cash and cash equivalents, on hand to meet 30
days of normal operating expenses, which are, on average, approximately $55,000. RMTC has the
policy to structure its financial assets to be available as its operating expenses, liabilities, and other
obligations come due. In addition, RMTC manages its liquidity by developing and adopting annual
operating budgets that provide sufficient funds for operating expenses to meet its liabilities and other
obligations as they become due.
De Minimis Rate Used: Both
Rate Explanation: We set an agreed upon percentage of grant funds for administration and overhead with the City of Chicago Heights so did not include the de minimis cost rate. Cook County will only allow for reimbursement of personnel expenses and not other overhead for CDBG funds so we do not use the de minimis cost rate. The other two grants (ARPA- Cook County and CDBG - City of Chicago) we used the de minimis cost rate.
RTMC receives a significant number of donated services from unpaid volunteers who assist in everyday
operations and special projects. No amounts have been recognized in the statement of activities because
the criteria for recognition established by the Financial Accounting Standards Board in its Statement of
Financial Accounting Standards No. 116, accounting for Contributions Received and Contributions
Made, have not been satisfied.
Title: NOTE 4: Employee Benefit Plan
Accounting Policies: Basis of Accounting Presentation
RTMC prepares its financial statements on an accrual basis in accordance with accounting principles
generally accepted in the United States of America (U.S. GAAP). Cash and Cash Equivalents
Cash equivalents are those purchases with original maturities of three months or less. Cash equivalents
consist of demand deposits and money market accounts. Cash and cash equivalents for purposes of the
statement of cash flows exclude permanently restricted cash and cash equivalents.
Accounts Receivable
Accounts receivable represent the net realizable value of the amounts due from the government and
other funding sources. Management reviews grants and contributions are receivable to determine if
any receivables will potentially be uncollectible. Receivable balances that are determined to be
potentially uncollectible are included in the allowances for doubtful accounts. After all, attempts to
collect a receivable have failed, the receivable is written off against the allowance. The allowance for
doubtful accounts was $2,750 as of June 30, 2023. Actual results could differ from this estimate.
Investments
Investments consist of the Government money market and mutual funds. The funds are stated at fair
value based on a readily determinable market value. Investment income or loss (including realized
and unrealized gains and losses on investments, interest, and dividends) is included in the statement
of activities.
Equipment
Equipment is capitalized at cost. It is RTMC’s policy to capitalize expenditures for these items over
$600. Equipment depreciation is provided over three-to-five-year estimated useful lives using the
straight-line method. During the fiscal years ended June 30, 2023 depreciation expenses amounted
to $543.
Risk and Uncertainties
RTMC utilizes various investment instruments. Investment securities in general are exposed to various
risks, such as interest rate risk, credit risk, and overall market volatility. Due to the level of risk
associated with certain investment securities, it is reasonably possible that changes in the values of
investment securities could occur in the near term and that such changes could materially affect the
amounts reported in the balance sheet.
As of June 30, 2023, the Organization’s cash and cash equivalents were deposited in two financial
institutions under three separate accounts. Accounts that bear interest at these institutions are insured
by the Federal Deposit Insurance Corporation up to $250,000 in aggregate. RTMC did not have
uninsured balance amount as of June 30, 2023.
Deferred Revenue
Revenue from donors is deferred and recognized as earned in the following fiscal year as the projects are
completed.
Classification of Net Assets
Net assets of RTMC are classified based on the presence or absence of donor-imposed restrictions. Net
assets are comprised of two groups as follows:
• Net Assets - Without Donor Restrictions – Amounts that are not subject to usage restrictions
based on donor-imposed requirements. This class also includes assets previously restricted
where restrictions have expired or been met.
• Net Assets - With Donor Restrictions – Assets are subject to usage limitations based on
donor-imposed or grantor restrictions. These restrictions may be temporary or may be based
on a particular use. Restrictions may be met by the passage of time or by actions of the
Organization. Certain restrictions may need to be maintained in perpetuity.
RMTC reported Net Assets with Donor Restrictions of $277,800 as of June 30, 2023.
Public Support and Revenue
Support funded by government contracts, which qualify as conditional promises to give, is
recognized when the condition of performing the contracted services is met. Revenue is therefore
recognized as earned and the conditions of eligible expenses are incurred. Contributions are generally
available without donor restrictions. Unconditional promises to give are recorded as received.
Grants and other contributions of cash and other assets are reported with donor restrictions if they are
received with donor stipulations that limit the use of donated assets. When a donor restriction expires,
that is, when a stipulated time restriction ends or purpose restriction is accomplished, Net Assets -
With Donor Restrictions are reclassified to Net Assets - Without Donor Restrictions and reported in
the statement of activities as net assets released from restrictions.
Endowment contributions and investments are permanently restricted by the donor. Investment
earnings available for distribution are recorded in Net Assets - Without Donor Restrictions.
Contributions of donated non-cash assets are recorded at their fair values in the period received.
Contributions of donated services that create or enhance nonfinancial assets or that require specialized
skills, are provided by individuals possessing those skills, and would typically need to be purchased if
not provided by donation, are recorded at their fair values in the period received.
Earnings related to Net Assets - With Donor Restrictions will be included in Net Assets - Without
Donor Restrictions unless otherwise unless specifically required to be included in Net Assets - Without
Donor Restrictions by the donor or by applicable State law.
Functional Allocation of Expenses
The costs of providing the various programs and activities have been summarized on a functional basis in the comparative statements of activities. Certain costs have been allocated between program
activities, fundraising activities, and management and general based on management’s estimates.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires the use of management’s estimates and assumptions that affect the reported amounts of assets
and liabilities, and disclosure of contingent assets and liabilities at the date of financial statements, and
the reported amounts of revenues and expenses during the reporting period. Actual results could differ
from those estimates.
Accounting for Uncertainty in Income Taxes
RTMC is a not-for-profit corporation and in 1991had been granted tax-exempt status by the Internal
Revenue Service under provisions of Internal Revenue Code Section 501 (c)(6). The Organization files
its Form 990, Return of Organization Exempt from Income Tax, with the Internal Revenue Service
(IRS) and its Form AG990-IL Illinois Charitable Organization Annual Report, with the Illinois State
Attorney Generally. The Organization is generally no longer subject to examination by IRS for years
before 2019. As of June 30, 2023, there were no material uncertain income tax positions.
Liquidity and Availability of Financial Assets
RTMC has $1,455,969 of financial assets available within one year of June 30, 2023, to meet cash
needs for operating expenses consisting of cash and cash equivalents of $665,482, Investments of
$616,022, accounts receivable, net of allowance for doubtful accounts, of $155,684, and prepaid
insurance of $18,781. None of the financial assets are subject to the donor or other contractual
restrictions that make them unavailable for operating expenses within one year of June 30, 2023. RMTC
has a goal to maintain financial assets, which consist of cash and cash equivalents, on hand to meet 30
days of normal operating expenses, which are, on average, approximately $55,000. RMTC has the
policy to structure its financial assets to be available as its operating expenses, liabilities, and other
obligations come due. In addition, RMTC manages its liquidity by developing and adopting annual
operating budgets that provide sufficient funds for operating expenses to meet its liabilities and other
obligations as they become due.
De Minimis Rate Used: Both
Rate Explanation: We set an agreed upon percentage of grant funds for administration and overhead with the City of Chicago Heights so did not include the de minimis cost rate. Cook County will only allow for reimbursement of personnel expenses and not other overhead for CDBG funds so we do not use the de minimis cost rate. The other two grants (ARPA- Cook County and CDBG - City of Chicago) we used the de minimis cost rate.
RMTC has a tax-sheltered annuity plan covering substantially all employees. The benefits are based on
years of service and the employee’s compensation during a certain time of employment. RMTC’s funding policy is to make the minimum annual contribution required by applicable regulations. Contributions are
intended to provide not only benefits attributed to service to date but also for those expected to be
earned in the future. RMTC had $10,327 of 403(b) contributions expense for the fiscal years ended June
30, 2023.
Title: NOTE 5: Investments
Accounting Policies: Basis of Accounting Presentation
RTMC prepares its financial statements on an accrual basis in accordance with accounting principles
generally accepted in the United States of America (U.S. GAAP). Cash and Cash Equivalents
Cash equivalents are those purchases with original maturities of three months or less. Cash equivalents
consist of demand deposits and money market accounts. Cash and cash equivalents for purposes of the
statement of cash flows exclude permanently restricted cash and cash equivalents.
Accounts Receivable
Accounts receivable represent the net realizable value of the amounts due from the government and
other funding sources. Management reviews grants and contributions are receivable to determine if
any receivables will potentially be uncollectible. Receivable balances that are determined to be
potentially uncollectible are included in the allowances for doubtful accounts. After all, attempts to
collect a receivable have failed, the receivable is written off against the allowance. The allowance for
doubtful accounts was $2,750 as of June 30, 2023. Actual results could differ from this estimate.
Investments
Investments consist of the Government money market and mutual funds. The funds are stated at fair
value based on a readily determinable market value. Investment income or loss (including realized
and unrealized gains and losses on investments, interest, and dividends) is included in the statement
of activities.
Equipment
Equipment is capitalized at cost. It is RTMC’s policy to capitalize expenditures for these items over
$600. Equipment depreciation is provided over three-to-five-year estimated useful lives using the
straight-line method. During the fiscal years ended June 30, 2023 depreciation expenses amounted
to $543.
Risk and Uncertainties
RTMC utilizes various investment instruments. Investment securities in general are exposed to various
risks, such as interest rate risk, credit risk, and overall market volatility. Due to the level of risk
associated with certain investment securities, it is reasonably possible that changes in the values of
investment securities could occur in the near term and that such changes could materially affect the
amounts reported in the balance sheet.
As of June 30, 2023, the Organization’s cash and cash equivalents were deposited in two financial
institutions under three separate accounts. Accounts that bear interest at these institutions are insured
by the Federal Deposit Insurance Corporation up to $250,000 in aggregate. RTMC did not have
uninsured balance amount as of June 30, 2023.
Deferred Revenue
Revenue from donors is deferred and recognized as earned in the following fiscal year as the projects are
completed.
Classification of Net Assets
Net assets of RTMC are classified based on the presence or absence of donor-imposed restrictions. Net
assets are comprised of two groups as follows:
• Net Assets - Without Donor Restrictions – Amounts that are not subject to usage restrictions
based on donor-imposed requirements. This class also includes assets previously restricted
where restrictions have expired or been met.
• Net Assets - With Donor Restrictions – Assets are subject to usage limitations based on
donor-imposed or grantor restrictions. These restrictions may be temporary or may be based
on a particular use. Restrictions may be met by the passage of time or by actions of the
Organization. Certain restrictions may need to be maintained in perpetuity.
RMTC reported Net Assets with Donor Restrictions of $277,800 as of June 30, 2023.
Public Support and Revenue
Support funded by government contracts, which qualify as conditional promises to give, is
recognized when the condition of performing the contracted services is met. Revenue is therefore
recognized as earned and the conditions of eligible expenses are incurred. Contributions are generally
available without donor restrictions. Unconditional promises to give are recorded as received.
Grants and other contributions of cash and other assets are reported with donor restrictions if they are
received with donor stipulations that limit the use of donated assets. When a donor restriction expires,
that is, when a stipulated time restriction ends or purpose restriction is accomplished, Net Assets -
With Donor Restrictions are reclassified to Net Assets - Without Donor Restrictions and reported in
the statement of activities as net assets released from restrictions.
Endowment contributions and investments are permanently restricted by the donor. Investment
earnings available for distribution are recorded in Net Assets - Without Donor Restrictions.
Contributions of donated non-cash assets are recorded at their fair values in the period received.
Contributions of donated services that create or enhance nonfinancial assets or that require specialized
skills, are provided by individuals possessing those skills, and would typically need to be purchased if
not provided by donation, are recorded at their fair values in the period received.
Earnings related to Net Assets - With Donor Restrictions will be included in Net Assets - Without
Donor Restrictions unless otherwise unless specifically required to be included in Net Assets - Without
Donor Restrictions by the donor or by applicable State law.
Functional Allocation of Expenses
The costs of providing the various programs and activities have been summarized on a functional basis in the comparative statements of activities. Certain costs have been allocated between program
activities, fundraising activities, and management and general based on management’s estimates.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires the use of management’s estimates and assumptions that affect the reported amounts of assets
and liabilities, and disclosure of contingent assets and liabilities at the date of financial statements, and
the reported amounts of revenues and expenses during the reporting period. Actual results could differ
from those estimates.
Accounting for Uncertainty in Income Taxes
RTMC is a not-for-profit corporation and in 1991had been granted tax-exempt status by the Internal
Revenue Service under provisions of Internal Revenue Code Section 501 (c)(6). The Organization files
its Form 990, Return of Organization Exempt from Income Tax, with the Internal Revenue Service
(IRS) and its Form AG990-IL Illinois Charitable Organization Annual Report, with the Illinois State
Attorney Generally. The Organization is generally no longer subject to examination by IRS for years
before 2019. As of June 30, 2023, there were no material uncertain income tax positions.
Liquidity and Availability of Financial Assets
RTMC has $1,455,969 of financial assets available within one year of June 30, 2023, to meet cash
needs for operating expenses consisting of cash and cash equivalents of $665,482, Investments of
$616,022, accounts receivable, net of allowance for doubtful accounts, of $155,684, and prepaid
insurance of $18,781. None of the financial assets are subject to the donor or other contractual
restrictions that make them unavailable for operating expenses within one year of June 30, 2023. RMTC
has a goal to maintain financial assets, which consist of cash and cash equivalents, on hand to meet 30
days of normal operating expenses, which are, on average, approximately $55,000. RMTC has the
policy to structure its financial assets to be available as its operating expenses, liabilities, and other
obligations come due. In addition, RMTC manages its liquidity by developing and adopting annual
operating budgets that provide sufficient funds for operating expenses to meet its liabilities and other
obligations as they become due.
De Minimis Rate Used: Both
Rate Explanation: We set an agreed upon percentage of grant funds for administration and overhead with the City of Chicago Heights so did not include the de minimis cost rate. Cook County will only allow for reimbursement of personnel expenses and not other overhead for CDBG funds so we do not use the de minimis cost rate. The other two grants (ARPA- Cook County and CDBG - City of Chicago) we used the de minimis cost rate.
The Investment policy adopted by the board authorizes the Association to make deposits and invest in
accounts of federally insured banks, money markets, bonds, securities, other direct obligations of the
United States or any agency or instrumentality of the United States, other fixed-income investments, and
equity investments. Investments in options and margin transactions are prohibited unless specifically
approved by one of the elected officers of the board and the program manager.
The fair value of the Organization’s investments as of June 30, 2023 are as follows: (See the Notes to the SEFA for chart/table)
Title: NOTE 6: Fair Value Measurements
Accounting Policies: Basis of Accounting Presentation
RTMC prepares its financial statements on an accrual basis in accordance with accounting principles
generally accepted in the United States of America (U.S. GAAP). Cash and Cash Equivalents
Cash equivalents are those purchases with original maturities of three months or less. Cash equivalents
consist of demand deposits and money market accounts. Cash and cash equivalents for purposes of the
statement of cash flows exclude permanently restricted cash and cash equivalents.
Accounts Receivable
Accounts receivable represent the net realizable value of the amounts due from the government and
other funding sources. Management reviews grants and contributions are receivable to determine if
any receivables will potentially be uncollectible. Receivable balances that are determined to be
potentially uncollectible are included in the allowances for doubtful accounts. After all, attempts to
collect a receivable have failed, the receivable is written off against the allowance. The allowance for
doubtful accounts was $2,750 as of June 30, 2023. Actual results could differ from this estimate.
Investments
Investments consist of the Government money market and mutual funds. The funds are stated at fair
value based on a readily determinable market value. Investment income or loss (including realized
and unrealized gains and losses on investments, interest, and dividends) is included in the statement
of activities.
Equipment
Equipment is capitalized at cost. It is RTMC’s policy to capitalize expenditures for these items over
$600. Equipment depreciation is provided over three-to-five-year estimated useful lives using the
straight-line method. During the fiscal years ended June 30, 2023 depreciation expenses amounted
to $543.
Risk and Uncertainties
RTMC utilizes various investment instruments. Investment securities in general are exposed to various
risks, such as interest rate risk, credit risk, and overall market volatility. Due to the level of risk
associated with certain investment securities, it is reasonably possible that changes in the values of
investment securities could occur in the near term and that such changes could materially affect the
amounts reported in the balance sheet.
As of June 30, 2023, the Organization’s cash and cash equivalents were deposited in two financial
institutions under three separate accounts. Accounts that bear interest at these institutions are insured
by the Federal Deposit Insurance Corporation up to $250,000 in aggregate. RTMC did not have
uninsured balance amount as of June 30, 2023.
Deferred Revenue
Revenue from donors is deferred and recognized as earned in the following fiscal year as the projects are
completed.
Classification of Net Assets
Net assets of RTMC are classified based on the presence or absence of donor-imposed restrictions. Net
assets are comprised of two groups as follows:
• Net Assets - Without Donor Restrictions – Amounts that are not subject to usage restrictions
based on donor-imposed requirements. This class also includes assets previously restricted
where restrictions have expired or been met.
• Net Assets - With Donor Restrictions – Assets are subject to usage limitations based on
donor-imposed or grantor restrictions. These restrictions may be temporary or may be based
on a particular use. Restrictions may be met by the passage of time or by actions of the
Organization. Certain restrictions may need to be maintained in perpetuity.
RMTC reported Net Assets with Donor Restrictions of $277,800 as of June 30, 2023.
Public Support and Revenue
Support funded by government contracts, which qualify as conditional promises to give, is
recognized when the condition of performing the contracted services is met. Revenue is therefore
recognized as earned and the conditions of eligible expenses are incurred. Contributions are generally
available without donor restrictions. Unconditional promises to give are recorded as received.
Grants and other contributions of cash and other assets are reported with donor restrictions if they are
received with donor stipulations that limit the use of donated assets. When a donor restriction expires,
that is, when a stipulated time restriction ends or purpose restriction is accomplished, Net Assets -
With Donor Restrictions are reclassified to Net Assets - Without Donor Restrictions and reported in
the statement of activities as net assets released from restrictions.
Endowment contributions and investments are permanently restricted by the donor. Investment
earnings available for distribution are recorded in Net Assets - Without Donor Restrictions.
Contributions of donated non-cash assets are recorded at their fair values in the period received.
Contributions of donated services that create or enhance nonfinancial assets or that require specialized
skills, are provided by individuals possessing those skills, and would typically need to be purchased if
not provided by donation, are recorded at their fair values in the period received.
Earnings related to Net Assets - With Donor Restrictions will be included in Net Assets - Without
Donor Restrictions unless otherwise unless specifically required to be included in Net Assets - Without
Donor Restrictions by the donor or by applicable State law.
Functional Allocation of Expenses
The costs of providing the various programs and activities have been summarized on a functional basis in the comparative statements of activities. Certain costs have been allocated between program
activities, fundraising activities, and management and general based on management’s estimates.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires the use of management’s estimates and assumptions that affect the reported amounts of assets
and liabilities, and disclosure of contingent assets and liabilities at the date of financial statements, and
the reported amounts of revenues and expenses during the reporting period. Actual results could differ
from those estimates.
Accounting for Uncertainty in Income Taxes
RTMC is a not-for-profit corporation and in 1991had been granted tax-exempt status by the Internal
Revenue Service under provisions of Internal Revenue Code Section 501 (c)(6). The Organization files
its Form 990, Return of Organization Exempt from Income Tax, with the Internal Revenue Service
(IRS) and its Form AG990-IL Illinois Charitable Organization Annual Report, with the Illinois State
Attorney Generally. The Organization is generally no longer subject to examination by IRS for years
before 2019. As of June 30, 2023, there were no material uncertain income tax positions.
Liquidity and Availability of Financial Assets
RTMC has $1,455,969 of financial assets available within one year of June 30, 2023, to meet cash
needs for operating expenses consisting of cash and cash equivalents of $665,482, Investments of
$616,022, accounts receivable, net of allowance for doubtful accounts, of $155,684, and prepaid
insurance of $18,781. None of the financial assets are subject to the donor or other contractual
restrictions that make them unavailable for operating expenses within one year of June 30, 2023. RMTC
has a goal to maintain financial assets, which consist of cash and cash equivalents, on hand to meet 30
days of normal operating expenses, which are, on average, approximately $55,000. RMTC has the
policy to structure its financial assets to be available as its operating expenses, liabilities, and other
obligations come due. In addition, RMTC manages its liquidity by developing and adopting annual
operating budgets that provide sufficient funds for operating expenses to meet its liabilities and other
obligations as they become due.
De Minimis Rate Used: Both
Rate Explanation: We set an agreed upon percentage of grant funds for administration and overhead with the City of Chicago Heights so did not include the de minimis cost rate. Cook County will only allow for reimbursement of personnel expenses and not other overhead for CDBG funds so we do not use the de minimis cost rate. The other two grants (ARPA- Cook County and CDBG - City of Chicago) we used the de minimis cost rate.
Accounting standards require certain assets and liabilities to be reported at fair value in financial
statements and provide a framework for establishing that fair value. The framework for determining fair
value is based on a hierarchy that prioritizes the inputs and valuation techniques used to measure fair
value.
The following tables present information about the Organization’s assets measured at fair value on a
recurring basis on June 30, 2023 and the valuation techniques used by the association to determine
those fair values.
Fair values determined by Level 1 inputs use quoted prices in active markets for identical assets that the
Association can access.
Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly.
These Level 2 Inputs include quoted prices for similar assets in active markets and other inputs, such as
interest rates and yield curves, that are observable at commonly quoted intervals.
Level 3 Inputs are unobservable inputs, including inputs that are available in situations where there is
little, if any, market activity for the related assets. These Level 3 fair value measurements are based
primarily on management’s estimates using pricing models, discounted cash flow methodologies, or
similar techniques considering the characteristics of the asset.
In instances whereby inputs used to measure fair value fall into different levels in the above fair value
hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is
significant to the valuation.The Organization’s assessment of the significance of inputs to these fair value measurements requires
judgment and considers factors specific to each asset.
The following summarizes the valuation methodology used in determining fair value measurements of the
significant classes of the Organization’s assets measured the fair value, (See the Notes to the SEFA for chart/table). Level 1 Measurements
Government Money Market and Mutual Funds – the fair value of these investments is based upon the
unadjusted quoted prices for the identical security in active markets that the Association can access.
Title: NOTE 7: Restrictions on Net Assets
Accounting Policies: Basis of Accounting Presentation
RTMC prepares its financial statements on an accrual basis in accordance with accounting principles
generally accepted in the United States of America (U.S. GAAP). Cash and Cash Equivalents
Cash equivalents are those purchases with original maturities of three months or less. Cash equivalents
consist of demand deposits and money market accounts. Cash and cash equivalents for purposes of the
statement of cash flows exclude permanently restricted cash and cash equivalents.
Accounts Receivable
Accounts receivable represent the net realizable value of the amounts due from the government and
other funding sources. Management reviews grants and contributions are receivable to determine if
any receivables will potentially be uncollectible. Receivable balances that are determined to be
potentially uncollectible are included in the allowances for doubtful accounts. After all, attempts to
collect a receivable have failed, the receivable is written off against the allowance. The allowance for
doubtful accounts was $2,750 as of June 30, 2023. Actual results could differ from this estimate.
Investments
Investments consist of the Government money market and mutual funds. The funds are stated at fair
value based on a readily determinable market value. Investment income or loss (including realized
and unrealized gains and losses on investments, interest, and dividends) is included in the statement
of activities.
Equipment
Equipment is capitalized at cost. It is RTMC’s policy to capitalize expenditures for these items over
$600. Equipment depreciation is provided over three-to-five-year estimated useful lives using the
straight-line method. During the fiscal years ended June 30, 2023 depreciation expenses amounted
to $543.
Risk and Uncertainties
RTMC utilizes various investment instruments. Investment securities in general are exposed to various
risks, such as interest rate risk, credit risk, and overall market volatility. Due to the level of risk
associated with certain investment securities, it is reasonably possible that changes in the values of
investment securities could occur in the near term and that such changes could materially affect the
amounts reported in the balance sheet.
As of June 30, 2023, the Organization’s cash and cash equivalents were deposited in two financial
institutions under three separate accounts. Accounts that bear interest at these institutions are insured
by the Federal Deposit Insurance Corporation up to $250,000 in aggregate. RTMC did not have
uninsured balance amount as of June 30, 2023.
Deferred Revenue
Revenue from donors is deferred and recognized as earned in the following fiscal year as the projects are
completed.
Classification of Net Assets
Net assets of RTMC are classified based on the presence or absence of donor-imposed restrictions. Net
assets are comprised of two groups as follows:
• Net Assets - Without Donor Restrictions – Amounts that are not subject to usage restrictions
based on donor-imposed requirements. This class also includes assets previously restricted
where restrictions have expired or been met.
• Net Assets - With Donor Restrictions – Assets are subject to usage limitations based on
donor-imposed or grantor restrictions. These restrictions may be temporary or may be based
on a particular use. Restrictions may be met by the passage of time or by actions of the
Organization. Certain restrictions may need to be maintained in perpetuity.
RMTC reported Net Assets with Donor Restrictions of $277,800 as of June 30, 2023.
Public Support and Revenue
Support funded by government contracts, which qualify as conditional promises to give, is
recognized when the condition of performing the contracted services is met. Revenue is therefore
recognized as earned and the conditions of eligible expenses are incurred. Contributions are generally
available without donor restrictions. Unconditional promises to give are recorded as received.
Grants and other contributions of cash and other assets are reported with donor restrictions if they are
received with donor stipulations that limit the use of donated assets. When a donor restriction expires,
that is, when a stipulated time restriction ends or purpose restriction is accomplished, Net Assets -
With Donor Restrictions are reclassified to Net Assets - Without Donor Restrictions and reported in
the statement of activities as net assets released from restrictions.
Endowment contributions and investments are permanently restricted by the donor. Investment
earnings available for distribution are recorded in Net Assets - Without Donor Restrictions.
Contributions of donated non-cash assets are recorded at their fair values in the period received.
Contributions of donated services that create or enhance nonfinancial assets or that require specialized
skills, are provided by individuals possessing those skills, and would typically need to be purchased if
not provided by donation, are recorded at their fair values in the period received.
Earnings related to Net Assets - With Donor Restrictions will be included in Net Assets - Without
Donor Restrictions unless otherwise unless specifically required to be included in Net Assets - Without
Donor Restrictions by the donor or by applicable State law.
Functional Allocation of Expenses
The costs of providing the various programs and activities have been summarized on a functional basis in the comparative statements of activities. Certain costs have been allocated between program
activities, fundraising activities, and management and general based on management’s estimates.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires the use of management’s estimates and assumptions that affect the reported amounts of assets
and liabilities, and disclosure of contingent assets and liabilities at the date of financial statements, and
the reported amounts of revenues and expenses during the reporting period. Actual results could differ
from those estimates.
Accounting for Uncertainty in Income Taxes
RTMC is a not-for-profit corporation and in 1991had been granted tax-exempt status by the Internal
Revenue Service under provisions of Internal Revenue Code Section 501 (c)(6). The Organization files
its Form 990, Return of Organization Exempt from Income Tax, with the Internal Revenue Service
(IRS) and its Form AG990-IL Illinois Charitable Organization Annual Report, with the Illinois State
Attorney Generally. The Organization is generally no longer subject to examination by IRS for years
before 2019. As of June 30, 2023, there were no material uncertain income tax positions.
Liquidity and Availability of Financial Assets
RTMC has $1,455,969 of financial assets available within one year of June 30, 2023, to meet cash
needs for operating expenses consisting of cash and cash equivalents of $665,482, Investments of
$616,022, accounts receivable, net of allowance for doubtful accounts, of $155,684, and prepaid
insurance of $18,781. None of the financial assets are subject to the donor or other contractual
restrictions that make them unavailable for operating expenses within one year of June 30, 2023. RMTC
has a goal to maintain financial assets, which consist of cash and cash equivalents, on hand to meet 30
days of normal operating expenses, which are, on average, approximately $55,000. RMTC has the
policy to structure its financial assets to be available as its operating expenses, liabilities, and other
obligations come due. In addition, RMTC manages its liquidity by developing and adopting annual
operating budgets that provide sufficient funds for operating expenses to meet its liabilities and other
obligations as they become due.
De Minimis Rate Used: Both
Rate Explanation: We set an agreed upon percentage of grant funds for administration and overhead with the City of Chicago Heights so did not include the de minimis cost rate. Cook County will only allow for reimbursement of personnel expenses and not other overhead for CDBG funds so we do not use the de minimis cost rate. The other two grants (ARPA- Cook County and CDBG - City of Chicago) we used the de minimis cost rate.
Net assets with donor restrictions were as follows for the years ended June 30, 2023: See the Notes to the SEFA for chart/table. Net assets without donor restrictions were as follows for the years ended June 30, 2023: See the Notes to the SEFA for chart/table
Title: NOTE 8: Subsequent Events
Accounting Policies: Basis of Accounting Presentation
RTMC prepares its financial statements on an accrual basis in accordance with accounting principles
generally accepted in the United States of America (U.S. GAAP). Cash and Cash Equivalents
Cash equivalents are those purchases with original maturities of three months or less. Cash equivalents
consist of demand deposits and money market accounts. Cash and cash equivalents for purposes of the
statement of cash flows exclude permanently restricted cash and cash equivalents.
Accounts Receivable
Accounts receivable represent the net realizable value of the amounts due from the government and
other funding sources. Management reviews grants and contributions are receivable to determine if
any receivables will potentially be uncollectible. Receivable balances that are determined to be
potentially uncollectible are included in the allowances for doubtful accounts. After all, attempts to
collect a receivable have failed, the receivable is written off against the allowance. The allowance for
doubtful accounts was $2,750 as of June 30, 2023. Actual results could differ from this estimate.
Investments
Investments consist of the Government money market and mutual funds. The funds are stated at fair
value based on a readily determinable market value. Investment income or loss (including realized
and unrealized gains and losses on investments, interest, and dividends) is included in the statement
of activities.
Equipment
Equipment is capitalized at cost. It is RTMC’s policy to capitalize expenditures for these items over
$600. Equipment depreciation is provided over three-to-five-year estimated useful lives using the
straight-line method. During the fiscal years ended June 30, 2023 depreciation expenses amounted
to $543.
Risk and Uncertainties
RTMC utilizes various investment instruments. Investment securities in general are exposed to various
risks, such as interest rate risk, credit risk, and overall market volatility. Due to the level of risk
associated with certain investment securities, it is reasonably possible that changes in the values of
investment securities could occur in the near term and that such changes could materially affect the
amounts reported in the balance sheet.
As of June 30, 2023, the Organization’s cash and cash equivalents were deposited in two financial
institutions under three separate accounts. Accounts that bear interest at these institutions are insured
by the Federal Deposit Insurance Corporation up to $250,000 in aggregate. RTMC did not have
uninsured balance amount as of June 30, 2023.
Deferred Revenue
Revenue from donors is deferred and recognized as earned in the following fiscal year as the projects are
completed.
Classification of Net Assets
Net assets of RTMC are classified based on the presence or absence of donor-imposed restrictions. Net
assets are comprised of two groups as follows:
• Net Assets - Without Donor Restrictions – Amounts that are not subject to usage restrictions
based on donor-imposed requirements. This class also includes assets previously restricted
where restrictions have expired or been met.
• Net Assets - With Donor Restrictions – Assets are subject to usage limitations based on
donor-imposed or grantor restrictions. These restrictions may be temporary or may be based
on a particular use. Restrictions may be met by the passage of time or by actions of the
Organization. Certain restrictions may need to be maintained in perpetuity.
RMTC reported Net Assets with Donor Restrictions of $277,800 as of June 30, 2023.
Public Support and Revenue
Support funded by government contracts, which qualify as conditional promises to give, is
recognized when the condition of performing the contracted services is met. Revenue is therefore
recognized as earned and the conditions of eligible expenses are incurred. Contributions are generally
available without donor restrictions. Unconditional promises to give are recorded as received.
Grants and other contributions of cash and other assets are reported with donor restrictions if they are
received with donor stipulations that limit the use of donated assets. When a donor restriction expires,
that is, when a stipulated time restriction ends or purpose restriction is accomplished, Net Assets -
With Donor Restrictions are reclassified to Net Assets - Without Donor Restrictions and reported in
the statement of activities as net assets released from restrictions.
Endowment contributions and investments are permanently restricted by the donor. Investment
earnings available for distribution are recorded in Net Assets - Without Donor Restrictions.
Contributions of donated non-cash assets are recorded at their fair values in the period received.
Contributions of donated services that create or enhance nonfinancial assets or that require specialized
skills, are provided by individuals possessing those skills, and would typically need to be purchased if
not provided by donation, are recorded at their fair values in the period received.
Earnings related to Net Assets - With Donor Restrictions will be included in Net Assets - Without
Donor Restrictions unless otherwise unless specifically required to be included in Net Assets - Without
Donor Restrictions by the donor or by applicable State law.
Functional Allocation of Expenses
The costs of providing the various programs and activities have been summarized on a functional basis in the comparative statements of activities. Certain costs have been allocated between program
activities, fundraising activities, and management and general based on management’s estimates.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires the use of management’s estimates and assumptions that affect the reported amounts of assets
and liabilities, and disclosure of contingent assets and liabilities at the date of financial statements, and
the reported amounts of revenues and expenses during the reporting period. Actual results could differ
from those estimates.
Accounting for Uncertainty in Income Taxes
RTMC is a not-for-profit corporation and in 1991had been granted tax-exempt status by the Internal
Revenue Service under provisions of Internal Revenue Code Section 501 (c)(6). The Organization files
its Form 990, Return of Organization Exempt from Income Tax, with the Internal Revenue Service
(IRS) and its Form AG990-IL Illinois Charitable Organization Annual Report, with the Illinois State
Attorney Generally. The Organization is generally no longer subject to examination by IRS for years
before 2019. As of June 30, 2023, there were no material uncertain income tax positions.
Liquidity and Availability of Financial Assets
RTMC has $1,455,969 of financial assets available within one year of June 30, 2023, to meet cash
needs for operating expenses consisting of cash and cash equivalents of $665,482, Investments of
$616,022, accounts receivable, net of allowance for doubtful accounts, of $155,684, and prepaid
insurance of $18,781. None of the financial assets are subject to the donor or other contractual
restrictions that make them unavailable for operating expenses within one year of June 30, 2023. RMTC
has a goal to maintain financial assets, which consist of cash and cash equivalents, on hand to meet 30
days of normal operating expenses, which are, on average, approximately $55,000. RMTC has the
policy to structure its financial assets to be available as its operating expenses, liabilities, and other
obligations come due. In addition, RMTC manages its liquidity by developing and adopting annual
operating budgets that provide sufficient funds for operating expenses to meet its liabilities and other
obligations as they become due.
De Minimis Rate Used: Both
Rate Explanation: We set an agreed upon percentage of grant funds for administration and overhead with the City of Chicago Heights so did not include the de minimis cost rate. Cook County will only allow for reimbursement of personnel expenses and not other overhead for CDBG funds so we do not use the de minimis cost rate. The other two grants (ARPA- Cook County and CDBG - City of Chicago) we used the de minimis cost rate.
Management evaluated all activities of RTMC through March 2, 2024, the date the financial
statements were available to be issued. The Organization is not aware of any material subsequent
events.