Title: Note 1 - Organization
Accounting Policies: In accordance with generally accepted accounting principles, the Organization accounts for all awards under federal programs on an accrual basis of accounting and, accordingly, reflects all significant receivables, payables, and other liabilities. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Resource & Crisis Center of Galveston County, Inc. (the Organization/Center) is a not-for-profit organization incorporated in the State of Texas in 1984 and is exempt from federal income taxes pursuant to Section 50I(c)(3) of the Internal Revenue Code. The Organization is governed by a thirteen-member Board of Directors. The Board of Directors is selected pursuant to the bylaws of the Organization, and they significantly influence operations. The Board of Directors has the primary accountability for the fiscal affairs of the Organization. The Organization’s mission is to promote the safety of men, women, children, and families, thereby focusing on the
prevention of family violence and sexual abuse. There are several areas of support provided by the Organization - a
full service shelter for up to four weeks, a 24-hour telephone hotline, individual and group counseling, and assistance
in obtaining employment, legal services, medical care, case management and transportation. Four thrift stores are
located in the county. They provide substantial revenue that is used for program services and food, clothing, and
shelter for the clients. The Organization is supported primarily through local contributions, the four thrift stores, and governmental grants.
Title: Note 2 - Significant Accounting Policies
Accounting Policies: In accordance with generally accepted accounting principles, the Organization accounts for all awards under federal programs on an accrual basis of accounting and, accordingly, reflects all significant receivables, payables, and other liabilities. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The financial statements of the Organization have been prepared on the accrual basis. Significant accounting policies are summarized below: Basis of Accounting - The financial statements of the Organization have been prepared on the accrual basis of accounting and, accordingly, reflect all significant receivables, payables, and other liabilities. Revenue Recognition - Generally, grants are recognized as revenues when earned. Grants that operate on a reimbursement basis are recognized on the accrual basis as revenues only to the content of disbursements and commitments that are allowable for reimbursement. Revenues from contributions, donations and other sources are recognized as unrestricted or temporarily restricted revenues when received or unconditionally promised by a third party. Revenues from special events are recognized when the events are held. Interest income is recognized when earned based on passage of time. Program income and other income are recognized when received. Contributions / Promises to Give - Contributions are recognized when the donor makes a promise to give to the Organization that is, in substance, unconditional. Contributions that are restricted by the donor are reported as increases in without donor restrictions net assets if the restrictions expire in the year in which the contributions are received. All other donor restricted contributions are reported as increases in the with donor restrictions net assets category, depending on the nature of the restrictions. When a restriction expires, with donor restrictions net assets is reclassified to without donor restrictions net assets. Conditional promises to give are recognized when the conditions on which they depend are substantially met. ASB ASU No. 2018-08, Not-for-Profit Entities (Topic 958): Clarifying the Scope and Accounting Guidance for Contributions Received and Contributions Made. This ASU aims to clarify and improve the scope and the accounting guidance for contributions received and contributions made. Specifically, this ASU assists entities in: (1) evaluating whether transactions should be accounted for as contributions (nonreciprocal transactions) within the scope of Non_x0002_for-Profit Entities (Topic 958), or as exchange (reciprocal) transactions subject to other guidance, and (2) determining whether a contribution is conditional. Cash and Cash Equivalents - For purposes of the statement of cash flows, Resource & Crisis Center of Galveston County, Inc. considers all highly liquid investments available for current use with an initial maturity of three months or less to be cash equivalents. Cash is held in both interest bearing and non-interest bearing demand accounts at three financial institutions. Accounts at these institutions are insured by the Federal Deposit Insurance Corporation. Investments and Investment Income - In accordance with ASC 958-320, “Accounting for Certain Investments
Held by Not for Profit Organizations” (formerly SFAS No. 124), investments in marketable securities with readily
determinable fair values and all investments in debt securities are reported at their fair values in the combining
statements of financial position. Unrealized gains and losses are included in the change in net assets. Investment
income and gains restricted by a donor are reported as increased in unrestricted net assets if the restrictions are met
(either by passage of time or by use) in the reporting period in which the income and gains are recognized.
Effective July 1, 2008, the Organization adopted the provisions of ASC 820, “Fair Value Measurements and
Disclosures” (formerly SFAS 157), with respect to its investments. ASC 820 defines fair value as the exchange price
that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous
market, and establishes a framework for measuring fair value in the principal or most advantageous market for the
asset of liability in an orderly transaction between market participants at the measurement date.
The valuation techniques required by ASC 820 are based upon observable and unobservable inputs, and ASC 820
establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of
inputs used to measure fair value are as follows:
Level 1 -Quoted prices in active markets for identical assets or liabilities. An active market is a market in
which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing
information on an ongoing basis.
Level 2 -Inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and
liabilities in active markets; quoted prices for identical assets and liabilities that are not active; or other inputs
that are observable or can be corroborated by observable market data.
Level 3 -Significant unobservable inputs that are supported by little or no market activity.
Receivables - include those from grants, pledges, and contributions. Generally, receivables at year-end, are due
within the year. Additionally, the Organization believes that all such receivables are collectible and, therefore, an
allowance for uncollectible accounts is not considered necessary.
Grants receivable consist primarily of cost reimbursement requests outstanding at year-end related to various
contracts from the State of Texas, local agencies and other agencies under federal grant program. Inventory - The majority of inventory, which consists of various donated items such as clothing, household goods, and furniture, are held for sale at the four Resale Stores and/or given to the Organization’s clients for their use. The Organization receives the inventory from donors as contributed items for its resale stores to sell to the public. Since there is no cost to the Organization, inventory is stated at fair market value determined by the estimated price at
which the item can be old on the date of the donation. Contribution revenue is recognized when the donated items
are received and the inventory recorded. When the donated items are sold, the sales revenues are recorded and the
fair value of the inventory sold is recorded as value of contributed merchandise sold. Changes in year-end inventory
amounts are recorded as additional sales revenue or cost of goods sold, as appropriate. Property and Equipment - Property and equipment purchased by Resource & Crisis Center of Galveston County, Inc. are recorded at cost. Donations of property and equipment are recorded at their fair value at the date of the gift. All purchases and donations in excess of $2,000 are capitalized. Depreciation is provided on the straight-line method based upon estimated useful lives of 25-40 years for buildings and leasehold improvements and 5 -7 years for
equipment, vehicles, and furniture. Gains or losses on retired or sold property and equipment are reflected in income
for the period. The proceeds from such sales which are not legally required or expected to be reinvested in property
and equipment are transferred to net assets without donor restrictions. Net Assets - Net assets, revenues, gains, and losses are classified based on the existence or absence of donor or
grantor imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows:
Net Assets Without Donor Restrictions - Net assets available for use in general operations and not subject to donor (or certain grantor) restrictions. These net assets have been allocated between fixed assets which are not available for operations, the board designated amounts for future needs, and the remainder which is undesignated for operations. Net Assets With Donor Restrictions - Net assets subject to donor- (or certain grantor-) imposed restrictions. Some donor-imposed restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Donor-imposed restrictions are released when a restriction expires, that is, when the
stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or
both.
The Organization reports contributions restricted by donors as increased in net assets without donor restrictions if the
restrictions expire (that is, when a stipulated time restriction ends or purpose restriction is accomplished) in the
reporting period in which the revenue is recognized. All other donor-restricted contributions are reported as increases
in net assets with donor restrictions, depending on the nature of the restrictions. When a restriction expires, net
assets with donor restrictions are reclassified to net assets without donor restrictions and reported in the statements
of activities as net assets released from restrictions.
Designations Imposed Internally - At times, the Board of Directors may designate a portion of net assets
without donor restrictions for a specific purpose as a management planning tool. For example, the board of directors
may designate a certain amount of current year contributions to be used to fund future repairs. Those board
designations are not restrictions because the designations may be reversed by the board, and they do not alter the
nature of unrestricted contributions.
Income Taxes - The Organization is a nonprofit corporation that is exempt from federal income taxes under Section
501(c)(3) of the U.S. Internal Revenue Code (“Code”) and comparable State law, and contributions to it are tax
deductible within the limitations prescribed by the Code. The Organization did not conduct any unrelated business
activities in the current fiscal year. Therefore, the Organization has made no provision for federal income taxes in the
accompanying financial statements.
The Organization applies the provisions of FASB ASC Topic 740, Income Taxes, (formerly FASB interpretation No.
48 (FIN 48), Accounting for Uncertainty in income Taxes -an Interpretation of FASB Statement No. 109), which
prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of
a tax position taken or expected to be taken in a tax return. FIN 48 also provides guidance on de-recognition,
classification, interest and penalties, accounting in interim periods, disclosures and transition. The Organization
believes that it has appropriate support for any tax positions taken, and as such, does not have any uncertain tax
positions that are material to the financial statements.
Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in
the United States of America requires management to make certain estimates and assumptions that affect certain
reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. The significant estimates included in the financial statements are the estimates of useful lives used for depreciating
property and equipment items.Functional Expense Allocation - The costs of providing the various programs and other activities have been summarized on a functional basis in the statement of activities. The majority of expenses can generally be directly
identified with the program or supporting services to which they relate and care charged accordingly. Other expenses by function have been allocated among program and supporting service classifications on the basis of square footage of office space occupied, salaries, time sheets, and other methods determined by management. New Accounting Pronouncement
On February 25, 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). The Organization has adjusted the presentation of these statements accordingly. The ASU has been applied retrospectively to all periods presented. The 2020 balances have been adjusted for this standard. Refer to the Prior Period Adjustment note for more detail.
Title: Note 3 - Cash and Cash Equivalents
Accounting Policies: In accordance with generally accepted accounting principles, the Organization accounts for all awards under federal programs on an accrual basis of accounting and, accordingly, reflects all significant receivables, payables, and other liabilities. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Cash and cash equivalents as of August 31, 2023 and August 31, 2022, consisted of the following: See notes to the SEFA for chart/table. Concentration of Credit Risk All of a depositor’s accounts at an insured depository institution, including all noninterest-bearing transaction accounts, are insured by the Federal Deposit Insurance Corporation (FDIC) and or National Credit Union Administration (NCUA) up to the standard maximum deposit insurance amount $250,000, for each deposit insurance ownership category. The Organization maintains cash balances at a financial institution located in Texas. At August 31, 2023 and 2022, the Organization had approximately $284,050 and $310,237 cash balances, respectively. The cash balance in
excess of the insurance coverage were not insured by the FDIC and or NCUA. The Organization has not experienced any losses in such accounts and believes the risk of future loss is mitigated by monitoring the balances and the financial institutions where the cash is deposited.
Title: Note 4 - Investments
Accounting Policies: In accordance with generally accepted accounting principles, the Organization accounts for all awards under federal programs on an accrual basis of accounting and, accordingly, reflects all significant receivables, payables, and other liabilities. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The fair value measurements and levels within the fair value hierarchy of those measurements for the assets reported at fair value on a recurring basis at August 31, 2023 and August 31, 2022, consisted of the following:See the Notes to the SEFA for chart/table. The valuation methodology for investments is to value stocks and mutual funds at fair market value per the brokerage statement on the last day of the fiscal year.
Funds Held at Moody National Bank - The Board of Directors has entered into an agreement with Moody National Bank. The bank has discretionary authority in funds administered by the bank. The income of these funds is considered unrestricted revenue. The fair market value of investments held by Moody National Bank at August 31, 2023 and August 31, 2022, respectively, $9,377 and $8,983. These investments are exposed to several risks, such
as interest rates, market and credit risk. The Organization has not experienced any losses related to amounts in excess of depository insurance.
Title: Note 5 - Receivables/Promises to Give
Accounting Policies: In accordance with generally accepted accounting principles, the Organization accounts for all awards under federal programs on an accrual basis of accounting and, accordingly, reflects all significant receivables, payables, and other liabilities. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Receivables at August 31, 2023 and August 31, 2022 consist of the following: See the Notes to the SEFA for chart/table
Title: Note 6 - Inventory
Accounting Policies: In accordance with generally accepted accounting principles, the Organization accounts for all awards under federal programs on an accrual basis of accounting and, accordingly, reflects all significant receivables, payables, and other liabilities. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Inventory based at fair market value as of August 31, 2023, and August 31, 2022, was estimated as follows: See the Notes to the SEFA for chart/table
Title: Note 7 - Donated Services and Noncash Gifts
Accounting Policies: In accordance with generally accepted accounting principles, the Organization accounts for all awards under federal programs on an accrual basis of accounting and, accordingly, reflects all significant receivables, payables, and other liabilities. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Contributions of services are recognized when services received (a) create or enhance non-financial assets or (b) require specialized skills and are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation. A substantial number of volunteers have contributed significant amounts of time in connection with programs, administration, and fundraising for which an amount has been recorded in the financial statements, because the services did meet the criteria for recognition under generally accepted accounting principles. Noncash gifts, including donated services, supplies, and equipment, are reported on the financial statements. They are recorded based on their fair market value on the date of the gift. The estimated fair market value of donated services, supplies, and equipment for the years ended August 31, 2023 and August 31, 2022 are as follows: See the Notes to the SEFA for chart/table.
Title: Note 8 - Liquidity and Availability
Accounting Policies: In accordance with generally accepted accounting principles, the Organization accounts for all awards under federal programs on an accrual basis of accounting and, accordingly, reflects all significant receivables, payables, and other liabilities. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Financial assets available for general expenditure, that is, without donor or other restrictions limiting their use, within one year of the date of the statement of financial position for the fiscal years 2023 and 2022 is comprised of the following: See the Notes to the SEFA for chart/ table.
Title: Note 9 - Property and Equipment
Accounting Policies: In accordance with generally accepted accounting principles, the Organization accounts for all awards under federal programs on an accrual basis of accounting and, accordingly, reflects all significant receivables, payables, and other liabilities. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Property and equipment at August 31, 2023 and August 31, 2022 is detailed below: See the Notes to the SEFA for chart/table. Depreciation Expense, for the years ended August 31, 2023 and 2022, is $195,579 and $199,478, respectively.
Title: Note 10 - Note/Other Payables
Accounting Policies: In accordance with generally accepted accounting principles, the Organization accounts for all awards under federal programs on an accrual basis of accounting and, accordingly, reflects all significant receivables, payables, and other liabilities. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Long-term payables at August 31, 2023 and 2022 are as follows: See Notes to the SEFA for chart/ table. Maturities of notes payable over the next year is as follows: See Notes to the SEFA for the chart/ table. The Center entered into a Letter of Credit (LOC) agreement during 2019 to provide short-term financing, as needed. The LOC is with Moody National Bank with a 4.25% interest rate and a face amount of $1,500,000. The year-ended
2023 and 2022 balances were $81,039 and $53,039, respectively. Interest is due on a monthly basis. The LOC is secured by real property and has a due date of March 28, 2024.
Title: Note 11 - Operating Leases
Accounting Policies: In accordance with generally accepted accounting principles, the Organization accounts for all awards under federal programs on an accrual basis of accounting and, accordingly, reflects all significant receivables, payables, and other liabilities. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Organization has several long-term leases for retail spaces from unrelated parties. The lease are accounted for in accordance with Financial Accounting Standards Board (FASB) ASC 842. The discount rate used to calculate the interest on the lease liability is 4.25%, the Organization incremental borrowing rate. The following is a schedule of future annual minimum lease payments together with their present value at August 31,
2023: See Notes on the SEFA for chart/ table. Right-to-Use assets for operating leases for fiscal years 2023 and 2022, are as follow: See Notes to the SEFA for the chart/ table. During and subsequent to the fiscal year ended August 31, 2023, three lease agreements were renewed. The lease agreement for the League City store commenced on March 1, 2023, and extends until February 28, 2026, with monthly payments of $2,684. The Home store’s lease began on May 1, 2023, and concludes on May 1, 2025, featuring payments of $2,500 for the first year and $2,600 for the second. The La Marque Store’s lease began May 1, 2024, and concludes on April 30, 2025, with monthly payments of $3,435. These renewals are accounted for in accordance with ASC 842, Leases.
Title: Note 12 - Related Party Transactions
Accounting Policies: In accordance with generally accepted accounting principles, the Organization accounts for all awards under federal programs on an accrual basis of accounting and, accordingly, reflects all significant receivables, payables, and other liabilities. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
A current board member is Vice-President of Moody National Bank. The Organization holds checking and investment accounts as well as a LOC as discussed in Note 10. There is not a conflict of interest as a result of this relationship with the bank.
Title: Note 13 - Retirement Plan
Accounting Policies: In accordance with generally accepted accounting principles, the Organization accounts for all awards under federal programs on an accrual basis of accounting and, accordingly, reflects all significant receivables, payables, and other liabilities. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Organization adopted a 403(b) plan in 2007. All employees are eligible to participate in the plan after joining the Organization. The Organization matches 100% of the first 3% of salary after one year of service. After two years of service, the employee is 100% vested in contributions made by the Organization. Employer contributions to the plan for the year ended August 31, 2023 and August 31, 2022, were $12,957 and $14,257, respectively.
Title: Note 14 - Net Assets With Donor Restrictions
Accounting Policies: In accordance with generally accepted accounting principles, the Organization accounts for all awards under federal programs on an accrual basis of accounting and, accordingly, reflects all significant receivables, payables, and other liabilities. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Net assets with donor restrictions at August 31, 2023 and 2022, are available for the following periods: See Notes to the SEFA for chart/ table. Net assets will be released from restrictions by incurring expenses satisfying the restricted purposes or by occurrence of other events specified by the donors. All the restrictions are from federal, state and local donors/grantors.
Title: Note 15 - Resale Stores
Accounting Policies: In accordance with generally accepted accounting principles, the Organization accounts for all awards under federal programs on an accrual basis of accounting and, accordingly, reflects all significant receivables, payables, and other liabilities. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The net revenue (revenue and contributions less cost of merchandise sold and value of contributed merchandise sold) from the operation of the Resale Stores are as follows: See Notes to the SEFA for chart/ table.
Title: Note 16 - Concentrations
Accounting Policies: In accordance with generally accepted accounting principles, the Organization accounts for all awards under federal programs on an accrual basis of accounting and, accordingly, reflects all significant receivables, payables, and other liabilities. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Organization is dependent on several sources of support and revenue. Grants funds are received from Federal, State and local sources. The resale shops are also a significant source of revenue. The revenue from the resale shops for fiscal year end August 31, 2023 and 2022, totaled $1,355,218 and $1,322,013, respectively.
Title: Note 17 - Contingencies
Accounting Policies: In accordance with generally accepted accounting principles, the Organization accounts for all awards under federal programs on an accrual basis of accounting and, accordingly, reflects all significant receivables, payables, and other liabilities. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Organization, because of its activities, is subject to various claims and ligations. The Organization’s programs are supported through federal, state, and local grant programs that are governed by various rules and regulations. Expenses charged to the grant programs are subject to audit and adjustments by the grantor agencies; therefore, to the extent that the Organization has not complied with the rules and regulations governing the grants, refunds of any money received may be required. In the opinion of management, there are no contingent liabilities relating to claims and ligation nor related to compliance with the rules and regulations governing the respective grants; therefore, no provisions have been made in the accompanying financial statements for such contingencies.
Title: Note 18 - Prior Years Summarized Data
Accounting Policies: In accordance with generally accepted accounting principles, the Organization accounts for all awards under federal programs on an accrual basis of accounting and, accordingly, reflects all significant receivables, payables, and other liabilities. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The financial statements include certain prior-year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in accordance with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the Organization’s financial statements for the year ended August 31, 2023, from which the summarized information was derived.
Title: Note 19 - Subsequent Events
Accounting Policies: In accordance with generally accepted accounting principles, the Organization accounts for all awards under federal programs on an accrual basis of accounting and, accordingly, reflects all significant receivables, payables, and other liabilities. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
In preparing these statements, the Organization has evaluated events and transactions for potential recognition or disclosure through the date of this report, the date the financial statements were available to download. A former employee has filed suit under Title VI of the Civil Rights Act, as amended and the Americans with Disabilities Act for retaliation and disability discrimination. RCC is contesting this case vigorously. In April of the current year, the company responded to the lawsuit, and the matter was later settled through mediation in November 2023. As a result of the settlement, the lawsuit was dismissed. The terms of the settlement are confidential, and management believes that this resolution will not have a material adverse effect on the company’s financial position or results of operation. During and subsequent to the fiscal year ended August 31, 2023, three lease agreements were renewed. The lease agreement for the League City store commenced on March 1, 2023, and extends until February 28, 2026, with monthly payments of $2,684. The Home store’s lease began on May 1, 2023, and concludes on May 1, 2025, featuring payments of $2,500 for the first year and $2,600 for the second. The La Marque Store’s lease began May 1, 2024, and concludes on April 30, 2025, with monthly payments of $3,435. These renewals are accounted for in accordance with ASC 842, Leases.