Title: ORGANIZATION
Accounting Policies: FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor 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 restrictions.
The governing board has designated, from net assets without donor restrictions, net assets
for construction and development.
Net Assets With Donor Restrictions
Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary
in nature, such as those that will be met by the passage of time or other events specified
by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor
stipulates that resources be maintained in perpetuity. 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.
BASIS OF ACCOUNTING
Blackland uses the accrual method of accounting which recognizes revenue when earned
and expenses when incurred.
REVENUE
Contributions are recorded as revenue and receivable when the donor makes an
unconditional promise to give to Blackland. Conditional promises to give are not
recognized until the conditions on which they depend are substantially met, and the
promises become unconditional. Government grants are recognized as revenue as services
are performed as required by the contracts, which is when the related costs have been
incurred.
Blackland leases its housing units (51 as of year end) for use as single family residences
under noncancellable operating leases. Generally these leases have twelve month terms,
automatically renewing on a month-to-month basis thereafter.
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BLACKLAND COMMUNITY DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNTS RECEIVABLE
Receivables consist of amounts due from tenants for rent, fees and utilities provided.
Uncollectible amounts receivable are provided for using the allowance method of
accounting for bad debts, whereby a provision for uncollectible accounts is charged to
expense. The allowance account is increased or decreased based on historical collections,
analysis of aging of receivables, and management’s evaluation of individual balances.
Receivables are considered past due based on the stated terms of the lease agreements,
and on how recently payments have been received.
ESTIMATES
The preparation of financial statements in conformity with U.S. generally accepted
accounting principles requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, disclosure of contingent liabilities at the
date of the financial statements, and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
FUNCTIONAL EXPENSE ALLOCATION
Blackland incurs some expenses that are applicable to more than one program or
supporting function. Therefore, expenses require allocation on a reasonable basis that is
consistently applied. The expenses that are allocated include salaries and related,
depreciation, and utilities which are allocated based on estimates of time and effort.
Contract labor, professional fees, insurance and other expenses are allocated based on
management’s review and analysis of individual transactions and accounts.
PROPERTY AND EQUIPMENT
Acquisitions of property and equipment valued at $1,000 or more with a useful life
greater than one year are capitalized at cost, or estimated fair market value on the date of
donation, if donated. Repairs and maintenance costs are expensed as incurred.
Depreciation is computed using the straight-line method based on the estimated useful life
of the asset, ranging from 3 to 27.5 years.
INCOME TAXES
Blackland is an organization classified as an other than private foundation exempt from
Federal income taxes under IRS Code Section 501(c)(3). Therefore, no provision has been
made for federal income taxes in the accompanying financial statements.
-7-
BLACKLAND COMMUNITY DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUBSEQUENT EVENTS
Management of Blackland has evaluated subsequent events for disclosure through the
date of the Independent Auditor’s Report, the date the financial statements were available
to be issued.
De Minimis Rate Used: N
Rate Explanation: Funds are made up of loans that are used to pay for the property
Blackland Community Development Corporation (Blackland) was incorporated under the
Texas Non-Profit Corporation Act in 1983 and was established for the purpose of
preserving and improving the character of the Blackland neighborhood of the City of
Austin, Texas and for engaging in community projects for the benefit and revitalization of
the neighborhood. Blackland is supported primarily by grants and contracts, contributions,
and rental income
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor 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 restrictions.
The governing board has designated, from net assets without donor restrictions, net assets
for construction and development.
Net Assets With Donor Restrictions
Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary
in nature, such as those that will be met by the passage of time or other events specified
by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor
stipulates that resources be maintained in perpetuity. 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.
BASIS OF ACCOUNTING
Blackland uses the accrual method of accounting which recognizes revenue when earned
and expenses when incurred.
REVENUE
Contributions are recorded as revenue and receivable when the donor makes an
unconditional promise to give to Blackland. Conditional promises to give are not
recognized until the conditions on which they depend are substantially met, and the
promises become unconditional. Government grants are recognized as revenue as services
are performed as required by the contracts, which is when the related costs have been
incurred.
Blackland leases its housing units (51 as of year end) for use as single family residences
under noncancellable operating leases. Generally these leases have twelve month terms,
automatically renewing on a month-to-month basis thereafter.
-6-
BLACKLAND COMMUNITY DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNTS RECEIVABLE
Receivables consist of amounts due from tenants for rent, fees and utilities provided.
Uncollectible amounts receivable are provided for using the allowance method of
accounting for bad debts, whereby a provision for uncollectible accounts is charged to
expense. The allowance account is increased or decreased based on historical collections,
analysis of aging of receivables, and management’s evaluation of individual balances.
Receivables are considered past due based on the stated terms of the lease agreements,
and on how recently payments have been received.
ESTIMATES
The preparation of financial statements in conformity with U.S. generally accepted
accounting principles requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, disclosure of contingent liabilities at the
date of the financial statements, and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
FUNCTIONAL EXPENSE ALLOCATION
Blackland incurs some expenses that are applicable to more than one program or
supporting function. Therefore, expenses require allocation on a reasonable basis that is
consistently applied. The expenses that are allocated include salaries and related,
depreciation, and utilities which are allocated based on estimates of time and effort.
Contract labor, professional fees, insurance and other expenses are allocated based on
management’s review and analysis of individual transactions and accounts.
PROPERTY AND EQUIPMENT
Acquisitions of property and equipment valued at $1,000 or more with a useful life
greater than one year are capitalized at cost, or estimated fair market value on the date of
donation, if donated. Repairs and maintenance costs are expensed as incurred.
Depreciation is computed using the straight-line method based on the estimated useful life
of the asset, ranging from 3 to 27.5 years.
INCOME TAXES
Blackland is an organization classified as an other than private foundation exempt from
Federal income taxes under IRS Code Section 501(c)(3). Therefore, no provision has been
made for federal income taxes in the accompanying financial statements.
-7-
BLACKLAND COMMUNITY DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUBSEQUENT EVENTS
Management of Blackland has evaluated subsequent events for disclosure through the
date of the Independent Auditor’s Report, the date the financial statements were available
to be issued.
De Minimis Rate Used: N
Rate Explanation: Funds are made up of loans that are used to pay for the property
FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor imposed restrictions.
Accordingly, net assets and changes therein are classified and reported as follows:
ACCOUNTS RECEIVABLE
Receivables consist of amounts due from tenants for rent, fees and utilities provided.
Uncollectible amounts receivable are provided for using the allowance method of
accounting for bad debts, whereby a provision for uncollectible accounts is charged to
expense. The allowance account is increased or decreased based on historical collections,
analysis of aging of receivables, and management’s evaluation of individual balances.
Receivables are considered past due based on the stated terms of the lease agreements,
and on how recently payments have been received.
ESTIMATES
The preparation of financial statements in conformity with U.S. generally accepted
accounting principles requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, disclosure of contingent liabilities at the
date of the financial statements, and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
FUNCTIONAL EXPENSE ALLOCATION
Blackland incurs some expenses that are applicable to more than one program or
supporting function. Therefore, expenses require allocation on a reasonable basis that is
consistently applied. The expenses that are allocated include salaries and related,
depreciation, and utilities which are allocated based on estimates of time and effort.
Contract labor, professional fees, insurance and other expenses are allocated based on
management’s review and analysis of individual transactions and accounts.
PROPERTY AND EQUIPMENT
Acquisitions of property and equipment valued at $1,000 or more with a useful life
greater than one year are capitalized at cost, or estimated fair market value on the date of
donation, if donated. Repairs and maintenance costs are expensed as incurred.
Depreciation is computed using the straight-line method based on the estimated useful life
of the asset, ranging from 3 to 27.5 years.
INCOME TAXES
Blackland is an organization classified as an other than private foundation exempt from
Federal income taxes under IRS Code Section 501(c)(3). Therefore, no provision has been
made for federal income taxes in the accompanying financial statements.
SUBSEQUENT EVENTS
Management of Blackland has evaluated subsequent events for disclosure through the
date of the Independent Auditor’s Report, the date the financial statements were available
to be issued.
Title: NET ASSETS WITH DONOR RESTRICTIONS
Accounting Policies: FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor 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 restrictions.
The governing board has designated, from net assets without donor restrictions, net assets
for construction and development.
Net Assets With Donor Restrictions
Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary
in nature, such as those that will be met by the passage of time or other events specified
by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor
stipulates that resources be maintained in perpetuity. 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.
BASIS OF ACCOUNTING
Blackland uses the accrual method of accounting which recognizes revenue when earned
and expenses when incurred.
REVENUE
Contributions are recorded as revenue and receivable when the donor makes an
unconditional promise to give to Blackland. Conditional promises to give are not
recognized until the conditions on which they depend are substantially met, and the
promises become unconditional. Government grants are recognized as revenue as services
are performed as required by the contracts, which is when the related costs have been
incurred.
Blackland leases its housing units (51 as of year end) for use as single family residences
under noncancellable operating leases. Generally these leases have twelve month terms,
automatically renewing on a month-to-month basis thereafter.
-6-
BLACKLAND COMMUNITY DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNTS RECEIVABLE
Receivables consist of amounts due from tenants for rent, fees and utilities provided.
Uncollectible amounts receivable are provided for using the allowance method of
accounting for bad debts, whereby a provision for uncollectible accounts is charged to
expense. The allowance account is increased or decreased based on historical collections,
analysis of aging of receivables, and management’s evaluation of individual balances.
Receivables are considered past due based on the stated terms of the lease agreements,
and on how recently payments have been received.
ESTIMATES
The preparation of financial statements in conformity with U.S. generally accepted
accounting principles requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, disclosure of contingent liabilities at the
date of the financial statements, and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
FUNCTIONAL EXPENSE ALLOCATION
Blackland incurs some expenses that are applicable to more than one program or
supporting function. Therefore, expenses require allocation on a reasonable basis that is
consistently applied. The expenses that are allocated include salaries and related,
depreciation, and utilities which are allocated based on estimates of time and effort.
Contract labor, professional fees, insurance and other expenses are allocated based on
management’s review and analysis of individual transactions and accounts.
PROPERTY AND EQUIPMENT
Acquisitions of property and equipment valued at $1,000 or more with a useful life
greater than one year are capitalized at cost, or estimated fair market value on the date of
donation, if donated. Repairs and maintenance costs are expensed as incurred.
Depreciation is computed using the straight-line method based on the estimated useful life
of the asset, ranging from 3 to 27.5 years.
INCOME TAXES
Blackland is an organization classified as an other than private foundation exempt from
Federal income taxes under IRS Code Section 501(c)(3). Therefore, no provision has been
made for federal income taxes in the accompanying financial statements.
-7-
BLACKLAND COMMUNITY DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUBSEQUENT EVENTS
Management of Blackland has evaluated subsequent events for disclosure through the
date of the Independent Auditor’s Report, the date the financial statements were available
to be issued.
De Minimis Rate Used: N
Rate Explanation: Funds are made up of loans that are used to pay for the property
Subject to purpose restrictions at December 31, 2023:
Repairs $28,492
Green fund 15,636
Case management 7,502
Emergency rental hardships 4,861
$56,491
Release of restrictions during the year ended December 31, 2023:
Emergency rental hardships $19,328
Repairs 27,008
Case management 2,500
Green fund 1,469
$50,305
Title: NONFINANCIAL CONTRIBUTIONS
Accounting Policies: FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor 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 restrictions.
The governing board has designated, from net assets without donor restrictions, net assets
for construction and development.
Net Assets With Donor Restrictions
Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary
in nature, such as those that will be met by the passage of time or other events specified
by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor
stipulates that resources be maintained in perpetuity. 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.
BASIS OF ACCOUNTING
Blackland uses the accrual method of accounting which recognizes revenue when earned
and expenses when incurred.
REVENUE
Contributions are recorded as revenue and receivable when the donor makes an
unconditional promise to give to Blackland. Conditional promises to give are not
recognized until the conditions on which they depend are substantially met, and the
promises become unconditional. Government grants are recognized as revenue as services
are performed as required by the contracts, which is when the related costs have been
incurred.
Blackland leases its housing units (51 as of year end) for use as single family residences
under noncancellable operating leases. Generally these leases have twelve month terms,
automatically renewing on a month-to-month basis thereafter.
-6-
BLACKLAND COMMUNITY DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNTS RECEIVABLE
Receivables consist of amounts due from tenants for rent, fees and utilities provided.
Uncollectible amounts receivable are provided for using the allowance method of
accounting for bad debts, whereby a provision for uncollectible accounts is charged to
expense. The allowance account is increased or decreased based on historical collections,
analysis of aging of receivables, and management’s evaluation of individual balances.
Receivables are considered past due based on the stated terms of the lease agreements,
and on how recently payments have been received.
ESTIMATES
The preparation of financial statements in conformity with U.S. generally accepted
accounting principles requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, disclosure of contingent liabilities at the
date of the financial statements, and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
FUNCTIONAL EXPENSE ALLOCATION
Blackland incurs some expenses that are applicable to more than one program or
supporting function. Therefore, expenses require allocation on a reasonable basis that is
consistently applied. The expenses that are allocated include salaries and related,
depreciation, and utilities which are allocated based on estimates of time and effort.
Contract labor, professional fees, insurance and other expenses are allocated based on
management’s review and analysis of individual transactions and accounts.
PROPERTY AND EQUIPMENT
Acquisitions of property and equipment valued at $1,000 or more with a useful life
greater than one year are capitalized at cost, or estimated fair market value on the date of
donation, if donated. Repairs and maintenance costs are expensed as incurred.
Depreciation is computed using the straight-line method based on the estimated useful life
of the asset, ranging from 3 to 27.5 years.
INCOME TAXES
Blackland is an organization classified as an other than private foundation exempt from
Federal income taxes under IRS Code Section 501(c)(3). Therefore, no provision has been
made for federal income taxes in the accompanying financial statements.
-7-
BLACKLAND COMMUNITY DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUBSEQUENT EVENTS
Management of Blackland has evaluated subsequent events for disclosure through the
date of the Independent Auditor’s Report, the date the financial statements were available
to be issued.
De Minimis Rate Used: N
Rate Explanation: Funds are made up of loans that are used to pay for the property
During 2023, Blackland received $62,921 in forgiven interest expense, which is recorded
in the statement of activities. Nonfinancial contributions did not have donor-imposed
restrictions.
Interest for forgivable loans is forgiven annually as Blackland is in compliance with loans.
Forgivable interest is used for program activities and is valued at the estimated fair value
in the financial statements based on current rates for similar loans.
Blackland received 718 hours of volunteer services during 2023 in support of its programs
and administrative activities, with an estimated value of $22,917. However, these volunteer
services do not meet the criteria for recognition in the financial statements.
Title: CONCENTRATIONS
Accounting Policies: FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor 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 restrictions.
The governing board has designated, from net assets without donor restrictions, net assets
for construction and development.
Net Assets With Donor Restrictions
Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary
in nature, such as those that will be met by the passage of time or other events specified
by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor
stipulates that resources be maintained in perpetuity. 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.
BASIS OF ACCOUNTING
Blackland uses the accrual method of accounting which recognizes revenue when earned
and expenses when incurred.
REVENUE
Contributions are recorded as revenue and receivable when the donor makes an
unconditional promise to give to Blackland. Conditional promises to give are not
recognized until the conditions on which they depend are substantially met, and the
promises become unconditional. Government grants are recognized as revenue as services
are performed as required by the contracts, which is when the related costs have been
incurred.
Blackland leases its housing units (51 as of year end) for use as single family residences
under noncancellable operating leases. Generally these leases have twelve month terms,
automatically renewing on a month-to-month basis thereafter.
-6-
BLACKLAND COMMUNITY DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNTS RECEIVABLE
Receivables consist of amounts due from tenants for rent, fees and utilities provided.
Uncollectible amounts receivable are provided for using the allowance method of
accounting for bad debts, whereby a provision for uncollectible accounts is charged to
expense. The allowance account is increased or decreased based on historical collections,
analysis of aging of receivables, and management’s evaluation of individual balances.
Receivables are considered past due based on the stated terms of the lease agreements,
and on how recently payments have been received.
ESTIMATES
The preparation of financial statements in conformity with U.S. generally accepted
accounting principles requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, disclosure of contingent liabilities at the
date of the financial statements, and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
FUNCTIONAL EXPENSE ALLOCATION
Blackland incurs some expenses that are applicable to more than one program or
supporting function. Therefore, expenses require allocation on a reasonable basis that is
consistently applied. The expenses that are allocated include salaries and related,
depreciation, and utilities which are allocated based on estimates of time and effort.
Contract labor, professional fees, insurance and other expenses are allocated based on
management’s review and analysis of individual transactions and accounts.
PROPERTY AND EQUIPMENT
Acquisitions of property and equipment valued at $1,000 or more with a useful life
greater than one year are capitalized at cost, or estimated fair market value on the date of
donation, if donated. Repairs and maintenance costs are expensed as incurred.
Depreciation is computed using the straight-line method based on the estimated useful life
of the asset, ranging from 3 to 27.5 years.
INCOME TAXES
Blackland is an organization classified as an other than private foundation exempt from
Federal income taxes under IRS Code Section 501(c)(3). Therefore, no provision has been
made for federal income taxes in the accompanying financial statements.
-7-
BLACKLAND COMMUNITY DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUBSEQUENT EVENTS
Management of Blackland has evaluated subsequent events for disclosure through the
date of the Independent Auditor’s Report, the date the financial statements were available
to be issued.
De Minimis Rate Used: N
Rate Explanation: Funds are made up of loans that are used to pay for the property
96% of notes payable are due to one lender, Austin Housing Finance Corporation (AHFC).
See Note 9. At year-end, Blackland had cash deposits of $21,393 in excess of FDIC
coverage.
Title: LIQUIDITY AND AVAILABILITY
Accounting Policies: FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor 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 restrictions.
The governing board has designated, from net assets without donor restrictions, net assets
for construction and development.
Net Assets With Donor Restrictions
Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary
in nature, such as those that will be met by the passage of time or other events specified
by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor
stipulates that resources be maintained in perpetuity. 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.
BASIS OF ACCOUNTING
Blackland uses the accrual method of accounting which recognizes revenue when earned
and expenses when incurred.
REVENUE
Contributions are recorded as revenue and receivable when the donor makes an
unconditional promise to give to Blackland. Conditional promises to give are not
recognized until the conditions on which they depend are substantially met, and the
promises become unconditional. Government grants are recognized as revenue as services
are performed as required by the contracts, which is when the related costs have been
incurred.
Blackland leases its housing units (51 as of year end) for use as single family residences
under noncancellable operating leases. Generally these leases have twelve month terms,
automatically renewing on a month-to-month basis thereafter.
-6-
BLACKLAND COMMUNITY DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNTS RECEIVABLE
Receivables consist of amounts due from tenants for rent, fees and utilities provided.
Uncollectible amounts receivable are provided for using the allowance method of
accounting for bad debts, whereby a provision for uncollectible accounts is charged to
expense. The allowance account is increased or decreased based on historical collections,
analysis of aging of receivables, and management’s evaluation of individual balances.
Receivables are considered past due based on the stated terms of the lease agreements,
and on how recently payments have been received.
ESTIMATES
The preparation of financial statements in conformity with U.S. generally accepted
accounting principles requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, disclosure of contingent liabilities at the
date of the financial statements, and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
FUNCTIONAL EXPENSE ALLOCATION
Blackland incurs some expenses that are applicable to more than one program or
supporting function. Therefore, expenses require allocation on a reasonable basis that is
consistently applied. The expenses that are allocated include salaries and related,
depreciation, and utilities which are allocated based on estimates of time and effort.
Contract labor, professional fees, insurance and other expenses are allocated based on
management’s review and analysis of individual transactions and accounts.
PROPERTY AND EQUIPMENT
Acquisitions of property and equipment valued at $1,000 or more with a useful life
greater than one year are capitalized at cost, or estimated fair market value on the date of
donation, if donated. Repairs and maintenance costs are expensed as incurred.
Depreciation is computed using the straight-line method based on the estimated useful life
of the asset, ranging from 3 to 27.5 years.
INCOME TAXES
Blackland is an organization classified as an other than private foundation exempt from
Federal income taxes under IRS Code Section 501(c)(3). Therefore, no provision has been
made for federal income taxes in the accompanying financial statements.
-7-
BLACKLAND COMMUNITY DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUBSEQUENT EVENTS
Management of Blackland has evaluated subsequent events for disclosure through the
date of the Independent Auditor’s Report, the date the financial statements were available
to be issued.
De Minimis Rate Used: N
Rate Explanation: Funds are made up of loans that are used to pay for the property
Financial assets available for general expenditure, within one year of the statement of
financial position date, comprise the following:
Cash $290,793
Accounts receivable 1,696
Less: Board designated for construction and development (34,680)
Less: donor purpose restrictions (56,491)
$201,318
As part of Blackland’s liquidity management, it has a policy to structure its financial assets
to be available as its general expenditures, liabilities and other obligations come due. Any
excess funds are invested in demand deposit accounts such as savings accounts. Although
Blackland does not intend to spend from its board-designated funds (designated for
construction and development), the $34,680 balance could be made available if necessary.
Title: PROPERTY AND EQUIPMENT
Accounting Policies: FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor 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 restrictions.
The governing board has designated, from net assets without donor restrictions, net assets
for construction and development.
Net Assets With Donor Restrictions
Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary
in nature, such as those that will be met by the passage of time or other events specified
by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor
stipulates that resources be maintained in perpetuity. 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.
BASIS OF ACCOUNTING
Blackland uses the accrual method of accounting which recognizes revenue when earned
and expenses when incurred.
REVENUE
Contributions are recorded as revenue and receivable when the donor makes an
unconditional promise to give to Blackland. Conditional promises to give are not
recognized until the conditions on which they depend are substantially met, and the
promises become unconditional. Government grants are recognized as revenue as services
are performed as required by the contracts, which is when the related costs have been
incurred.
Blackland leases its housing units (51 as of year end) for use as single family residences
under noncancellable operating leases. Generally these leases have twelve month terms,
automatically renewing on a month-to-month basis thereafter.
-6-
BLACKLAND COMMUNITY DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNTS RECEIVABLE
Receivables consist of amounts due from tenants for rent, fees and utilities provided.
Uncollectible amounts receivable are provided for using the allowance method of
accounting for bad debts, whereby a provision for uncollectible accounts is charged to
expense. The allowance account is increased or decreased based on historical collections,
analysis of aging of receivables, and management’s evaluation of individual balances.
Receivables are considered past due based on the stated terms of the lease agreements,
and on how recently payments have been received.
ESTIMATES
The preparation of financial statements in conformity with U.S. generally accepted
accounting principles requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, disclosure of contingent liabilities at the
date of the financial statements, and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
FUNCTIONAL EXPENSE ALLOCATION
Blackland incurs some expenses that are applicable to more than one program or
supporting function. Therefore, expenses require allocation on a reasonable basis that is
consistently applied. The expenses that are allocated include salaries and related,
depreciation, and utilities which are allocated based on estimates of time and effort.
Contract labor, professional fees, insurance and other expenses are allocated based on
management’s review and analysis of individual transactions and accounts.
PROPERTY AND EQUIPMENT
Acquisitions of property and equipment valued at $1,000 or more with a useful life
greater than one year are capitalized at cost, or estimated fair market value on the date of
donation, if donated. Repairs and maintenance costs are expensed as incurred.
Depreciation is computed using the straight-line method based on the estimated useful life
of the asset, ranging from 3 to 27.5 years.
INCOME TAXES
Blackland is an organization classified as an other than private foundation exempt from
Federal income taxes under IRS Code Section 501(c)(3). Therefore, no provision has been
made for federal income taxes in the accompanying financial statements.
-7-
BLACKLAND COMMUNITY DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUBSEQUENT EVENTS
Management of Blackland has evaluated subsequent events for disclosure through the
date of the Independent Auditor’s Report, the date the financial statements were available
to be issued.
De Minimis Rate Used: N
Rate Explanation: Funds are made up of loans that are used to pay for the property
Buildings and improvements $4,545,376
Land 245,943
Furniture and fixtures 82,394
Office equipment 8,812
Accumulated depreciation (2,675,908)
$2,206,617
Title: CONTINGENCIES AND COMMITMENTS
Accounting Policies: FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor 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 restrictions.
The governing board has designated, from net assets without donor restrictions, net assets
for construction and development.
Net Assets With Donor Restrictions
Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary
in nature, such as those that will be met by the passage of time or other events specified
by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor
stipulates that resources be maintained in perpetuity. 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.
BASIS OF ACCOUNTING
Blackland uses the accrual method of accounting which recognizes revenue when earned
and expenses when incurred.
REVENUE
Contributions are recorded as revenue and receivable when the donor makes an
unconditional promise to give to Blackland. Conditional promises to give are not
recognized until the conditions on which they depend are substantially met, and the
promises become unconditional. Government grants are recognized as revenue as services
are performed as required by the contracts, which is when the related costs have been
incurred.
Blackland leases its housing units (51 as of year end) for use as single family residences
under noncancellable operating leases. Generally these leases have twelve month terms,
automatically renewing on a month-to-month basis thereafter.
-6-
BLACKLAND COMMUNITY DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNTS RECEIVABLE
Receivables consist of amounts due from tenants for rent, fees and utilities provided.
Uncollectible amounts receivable are provided for using the allowance method of
accounting for bad debts, whereby a provision for uncollectible accounts is charged to
expense. The allowance account is increased or decreased based on historical collections,
analysis of aging of receivables, and management’s evaluation of individual balances.
Receivables are considered past due based on the stated terms of the lease agreements,
and on how recently payments have been received.
ESTIMATES
The preparation of financial statements in conformity with U.S. generally accepted
accounting principles requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, disclosure of contingent liabilities at the
date of the financial statements, and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
FUNCTIONAL EXPENSE ALLOCATION
Blackland incurs some expenses that are applicable to more than one program or
supporting function. Therefore, expenses require allocation on a reasonable basis that is
consistently applied. The expenses that are allocated include salaries and related,
depreciation, and utilities which are allocated based on estimates of time and effort.
Contract labor, professional fees, insurance and other expenses are allocated based on
management’s review and analysis of individual transactions and accounts.
PROPERTY AND EQUIPMENT
Acquisitions of property and equipment valued at $1,000 or more with a useful life
greater than one year are capitalized at cost, or estimated fair market value on the date of
donation, if donated. Repairs and maintenance costs are expensed as incurred.
Depreciation is computed using the straight-line method based on the estimated useful life
of the asset, ranging from 3 to 27.5 years.
INCOME TAXES
Blackland is an organization classified as an other than private foundation exempt from
Federal income taxes under IRS Code Section 501(c)(3). Therefore, no provision has been
made for federal income taxes in the accompanying financial statements.
-7-
BLACKLAND COMMUNITY DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUBSEQUENT EVENTS
Management of Blackland has evaluated subsequent events for disclosure through the
date of the Independent Auditor’s Report, the date the financial statements were available
to be issued.
De Minimis Rate Used: N
Rate Explanation: Funds are made up of loans that are used to pay for the property
Blackland receives forgivable loans from the City of Austin (the City) to assist with
implementation of its program. In the event that Blackland does not comply with the terms
of these loans or should any costs be determined to be ineligible, Blackland will be liable
to the City for such amounts. Management believes there will be no such disallowance.
Under the terms of various agreements with funding agencies, Blackland is required to
provide certain services including, but not limited to, using certain properties for low-
income housing and maintaining certain levels of insurance.
Blackland entered into a 60-year lease in April 1986 with the City for use of the land on
which the Robert Shaw Village community was constructed. Under the provisions of the
lease, no payments are due to the City and the land must not be used for any other purpose
than to provide housing for eligible, low-income families. The lease may be renewed for
successive 10-year periods at the discretion of the City after the initial lease has expired.
Title: NOTES PAYABLE
Accounting Policies: FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor 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 restrictions.
The governing board has designated, from net assets without donor restrictions, net assets
for construction and development.
Net Assets With Donor Restrictions
Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary
in nature, such as those that will be met by the passage of time or other events specified
by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor
stipulates that resources be maintained in perpetuity. 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.
BASIS OF ACCOUNTING
Blackland uses the accrual method of accounting which recognizes revenue when earned
and expenses when incurred.
REVENUE
Contributions are recorded as revenue and receivable when the donor makes an
unconditional promise to give to Blackland. Conditional promises to give are not
recognized until the conditions on which they depend are substantially met, and the
promises become unconditional. Government grants are recognized as revenue as services
are performed as required by the contracts, which is when the related costs have been
incurred.
Blackland leases its housing units (51 as of year end) for use as single family residences
under noncancellable operating leases. Generally these leases have twelve month terms,
automatically renewing on a month-to-month basis thereafter.
-6-
BLACKLAND COMMUNITY DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNTS RECEIVABLE
Receivables consist of amounts due from tenants for rent, fees and utilities provided.
Uncollectible amounts receivable are provided for using the allowance method of
accounting for bad debts, whereby a provision for uncollectible accounts is charged to
expense. The allowance account is increased or decreased based on historical collections,
analysis of aging of receivables, and management’s evaluation of individual balances.
Receivables are considered past due based on the stated terms of the lease agreements,
and on how recently payments have been received.
ESTIMATES
The preparation of financial statements in conformity with U.S. generally accepted
accounting principles requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, disclosure of contingent liabilities at the
date of the financial statements, and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
FUNCTIONAL EXPENSE ALLOCATION
Blackland incurs some expenses that are applicable to more than one program or
supporting function. Therefore, expenses require allocation on a reasonable basis that is
consistently applied. The expenses that are allocated include salaries and related,
depreciation, and utilities which are allocated based on estimates of time and effort.
Contract labor, professional fees, insurance and other expenses are allocated based on
management’s review and analysis of individual transactions and accounts.
PROPERTY AND EQUIPMENT
Acquisitions of property and equipment valued at $1,000 or more with a useful life
greater than one year are capitalized at cost, or estimated fair market value on the date of
donation, if donated. Repairs and maintenance costs are expensed as incurred.
Depreciation is computed using the straight-line method based on the estimated useful life
of the asset, ranging from 3 to 27.5 years.
INCOME TAXES
Blackland is an organization classified as an other than private foundation exempt from
Federal income taxes under IRS Code Section 501(c)(3). Therefore, no provision has been
made for federal income taxes in the accompanying financial statements.
-7-
BLACKLAND COMMUNITY DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUBSEQUENT EVENTS
Management of Blackland has evaluated subsequent events for disclosure through the
date of the Independent Auditor’s Report, the date the financial statements were available
to be issued.
De Minimis Rate Used: N
Rate Explanation: Funds are made up of loans that are used to pay for the property
Note payable to Frost Bank, collateralized by rental real estate in Austin, TX (1708
E. 22nd St.). The note bears a 5.6% interest rate, payable in monthly installments of
principal and interest until maturity on January 17, 2025. $52,174
Note payable to AHFC, collateralized by rental real estate in Austin, TX (1803 E.
20th St.). The note bears a 0% interest rate until maturity and the principal and
interest shall be forgiven in its entirety if on May 1, 2026, Blackland is in
compliance with all terms and conditions of the Loan Agreement. 491,790
Note payable to AHFC, collateralized by rental real estate in Austin, TX (2203A
Salina). The note bears a 0% interest rate until maturity and the principal and
interest shall be forgiven in its entirety if on December 31, 2032, Blackland is in
compliance with all terms and conditions of the Loan Agreement. 150,095
Note payable to AHFC, collateralized by rental real estate in Austin, TX (1900
through 1904 22nd St.). The note bears a 0% interest rate until maturity and the
principal and interest shall be forgiven in its entirety if on January 31, 2032,
Blackland is in compliance with all terms and conditions of the Loan Agreement. 40,000
Note payable to AHFC, collateralized by rental real estate in Austin, TX (2106
Chestnut). The note bears a 0% interest rate until maturity and the principal and
interest shall be forgiven in its entirety if on March 12, 2033, Blackland is in
compliance with all terms and conditions of the Loan Agreement. The note consists
of $139,035 in federal funding and $62,500 in local government funding.
201,535
Note payable to AHFC, collateralized by rental real estate in Austin, TX (2106B
Chicon, and 1910B and 2203B Salina). The note bears a 0% interest rate until
maturity and the principal and interest shall be forgiven in its entirety if on January
31, 2119, Blackland is in compliance with all terms and conditions of the Loan
Agreement. If property is sold prior to the maturity date, principal and interest on
each property is due and payable upon the sale. 514,835
$1,450,429
Future maturities:
2024 $32,402
2025 19,772
2026 491,790
2027 0
2028 0
Thereafter 906,465
$1,450,429
Title: FUNCTIONAL EXPENSES
Accounting Policies: FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor 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 restrictions.
The governing board has designated, from net assets without donor restrictions, net assets
for construction and development.
Net Assets With Donor Restrictions
Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary
in nature, such as those that will be met by the passage of time or other events specified
by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor
stipulates that resources be maintained in perpetuity. 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.
BASIS OF ACCOUNTING
Blackland uses the accrual method of accounting which recognizes revenue when earned
and expenses when incurred.
REVENUE
Contributions are recorded as revenue and receivable when the donor makes an
unconditional promise to give to Blackland. Conditional promises to give are not
recognized until the conditions on which they depend are substantially met, and the
promises become unconditional. Government grants are recognized as revenue as services
are performed as required by the contracts, which is when the related costs have been
incurred.
Blackland leases its housing units (51 as of year end) for use as single family residences
under noncancellable operating leases. Generally these leases have twelve month terms,
automatically renewing on a month-to-month basis thereafter.
-6-
BLACKLAND COMMUNITY DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNTS RECEIVABLE
Receivables consist of amounts due from tenants for rent, fees and utilities provided.
Uncollectible amounts receivable are provided for using the allowance method of
accounting for bad debts, whereby a provision for uncollectible accounts is charged to
expense. The allowance account is increased or decreased based on historical collections,
analysis of aging of receivables, and management’s evaluation of individual balances.
Receivables are considered past due based on the stated terms of the lease agreements,
and on how recently payments have been received.
ESTIMATES
The preparation of financial statements in conformity with U.S. generally accepted
accounting principles requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, disclosure of contingent liabilities at the
date of the financial statements, and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
FUNCTIONAL EXPENSE ALLOCATION
Blackland incurs some expenses that are applicable to more than one program or
supporting function. Therefore, expenses require allocation on a reasonable basis that is
consistently applied. The expenses that are allocated include salaries and related,
depreciation, and utilities which are allocated based on estimates of time and effort.
Contract labor, professional fees, insurance and other expenses are allocated based on
management’s review and analysis of individual transactions and accounts.
PROPERTY AND EQUIPMENT
Acquisitions of property and equipment valued at $1,000 or more with a useful life
greater than one year are capitalized at cost, or estimated fair market value on the date of
donation, if donated. Repairs and maintenance costs are expensed as incurred.
Depreciation is computed using the straight-line method based on the estimated useful life
of the asset, ranging from 3 to 27.5 years.
INCOME TAXES
Blackland is an organization classified as an other than private foundation exempt from
Federal income taxes under IRS Code Section 501(c)(3). Therefore, no provision has been
made for federal income taxes in the accompanying financial statements.
-7-
BLACKLAND COMMUNITY DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUBSEQUENT EVENTS
Management of Blackland has evaluated subsequent events for disclosure through the
date of the Independent Auditor’s Report, the date the financial statements were available
to be issued.
De Minimis Rate Used: N
Rate Explanation: Funds are made up of loans that are used to pay for the property
Program Administrative Fundraising Total
Salaries and related $124,504 $32,315 $13,609 $170,428
Depreciation 103,418 26,796 11,688 141,902
Rental property repairs
and maintenance 87,050 0 0 87,050
Forgiven interest 62,921 0 0 62,921
Insurance 53,098 1,223 0 54,321
Utilities 22,341 5,789 2,525 30,655
Community outreach 7,301 0 0 7,301
Bad debt 6,628 0 0 6,628
Contractor labor 1,250 4,606 0 5,856
Taxes and licenses 5,546 0 0 5,546
Rental assistance 5,350 0 0 5,350
Professional fees 3,022 1,682 0 4,704
Interest 3,913 0 0 3,913
Other 28,702 19,005 1,940 49,647
$515,044 $91,416 $29,762 $636,222