Title: Note 1: 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.
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.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the demiminus cost rate
Accessible Housing Austin (AHA!) was incorporated in the State of Texas on 20 December 2005.
AHA! is dedicated to developing and advancing affordable, accessible, and integrated housing options
in the city of Austin for low-income people with disabilities and their families. One of the core values
is empowering low-income people with disabilities by making them controlling stakeholders in their
housing options.
Title: NOTE 2: 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.
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.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the demiminus cost rate
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.
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
AHA! uses the accrual method of accounting which recognizes revenue when earned and expenses
when incurred.
REVENUE
Unconditional grants and contributions received are recorded at fair value on the date of the award
as with donor restrictions or without donor restrictions depending on the existence and/or nature of
any donor-imposed restrictions.
SUBSEQUENT EVENTS
Management of AHA! 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.
ESTIMATES
The preparation of the 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 assets and 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.
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ACCESSIBLE HOUSING AUSTIN
NOTES TO FINANCIAL STATEMENTS
FUNCTIONAL EXPENSE ALLOCATION
The financial statements report certain categories of expenses that are attributed to more than one
program or supporting function. Therefore, some expenses require allocation on a reasonable basis
that is consistently applied. The expenses that are allocated include payroll, insurance, supplies,
copies, postage and other which are allocated based on estimates of time and effort by personnel.
FIXED ASSETS
Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one
year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if
contributed. 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, which is 5-10 years for
equipment.
RENTAL OPERATIONS
AHA! leases its real estate properties as single family residences and apartment units under non-
cancellable operating leases. There were 9 housing units and Briarcliff apartment complex available
for lease in fiscal 2023. Generally, these leases have twelve month terms, automatically renewing
on a month-to-month basis thereafter. Leases can be canceled with a penalty of one month’s rent.
One month’s rent under these contracts is $16,804.
RENTAL REAL ESTATE
Real estate consists of land, housing units, building improvements, and construction in progress.
Real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development,
and construction. Housing units leased and the appliances within are depreciated using the
straight-line method based on an estimated useful life of 27.5 and 10 years, respectively. Housing
units leased are restricted for low-income housing and people with disabilities.
INCOME TAXES
In accordance with Section 501(c)(3) of the Internal Revenue Code, AHA! is exempt from federal
income taxes. Consequently, no provision for Federal income taxes is included in the accompanying
financial statements.
Title: NOTE 3: CONTINGENCY
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.
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.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the demiminus cost rate
AHA! receives forgivable loans from the government entities to assist with the implementation of its
program. Should AHA! not comply with the terms of the loans or should any costs be determined to be
ineligible, AHA! will be responsible for reimbursing the grantor for these amounts. Management
believes there will be no such disallowance.
Title: NOTE 4: 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.
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.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the demiminus cost rate
Under the terms of various agreements with funding agencies, AHA! is required to provide certain
services including, but not limited to, using certain properties for low-income housing.
Title: NOTE 5: 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.
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.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the demiminus cost rate
$4,994,219 (85%) of notes payable are due to two lenders as of 30 September 2023. See Note 10.
Title: NOTE 6: 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.
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.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the demiminus cost rate
Financial assets available for general expenditure, within one year of the statement of financial position
date, comprise the following:
Cash $348,915
Accounts Receivable 2,920
$351,835
As part of AHA!’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. The policy is that monthly
revenues are to cover monthly expenses. Monthly revenues and expenditures are deposited in and
deducted from AHA!’s operating accounts. Several of AHA!’s notes payable are forgivable upon
maturity if AHA! is in compliance with the note agreements; see Note 10 for the terms of each note.
Title: NOTE 7: RENTAL REAL ESTATE
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.
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.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the demiminus cost rate
Nine housing units $690,816
Briarcliff apartment complex 5,668,550
Building improvements 236,578
Land 300,500
Accumulated depreciation (741,694)
$6,154,750
Included in Briarcliff apartment complex is $16,138 in capitalized interest.
Title: NOTE 8: BINGO UNIT
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.
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.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the demiminus cost rate
In accordance with the Texas Charitable Bingo Enabling Act and the Texas Administrative Code, AHA!
participates in the Big Star Bingo Unit (Bingo Unit) with five other nonprofit organizations. The six
organizations formed a trust that collects all revenue and pays all bills including income tax on pull-tab
net income. Distributions from the bingo operations are reported as bingo revenue on the statement of
activities. In the event of dissolution, the Bingo Unit will distribute in equal shares the remaining
undistributed net assets held by the Bingo Unit. As of 30 September 2023, AHA!’s interest in
undistributed net assets held by the Bingo Unit is $7,448 (see Note 9).
The Bingo Unit files quarterly reports with the Texas State Comptroller. The Bingo Unit is a high
volume cash operation run entirely by the Bingo Unit. AHA! puts forth little or no effort into the
operation and received quarterly distributions totaling $61,500 during the year.
Title: NOTE 9: FAIR VALUE DISCLOSURES
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.
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.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the demiminus cost rate
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Interest in bingo unit N/A $7,448 N/A
The carrying value of the interest in Bingo Unit represents AHA!’s proportionate share of the
undistributed net assets of the Bingo Unit, as reported in their unaudited financial statements (see Note
8).
Title: NOTE 10: 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.
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.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the demiminus cost rate
Note payable to the Texas State Affordable Housing Corporation, bears an interest
rate of 5.75%. Beginning 1 February 2021 AHA! started making the required
principal and interest payments of $5,806.55 until the loan matures on 29 February
2036. Collateralized by rental real estate. $869,192
Note payable to Texas Department of Housing and Community Affairs, collateralized
by rental real estate. The note bears a 0% interest rate until maturity and the principal
shall be forgiven in its entirety if on 1 August 2051, AHA! is in compliance with all
terms and conditions of the Loan Agreement. The note has been discounted using a
rate of 2.5%; the discount is being amortized to interest expense on a straight-line
basis over the life of the note. 210,528
Note payable to Texas Department of Housing and Community Affairs, collateralized
by rental real estate. The note bears a 0% interest rate until maturity and the principal
shall be forgiven in its entirety if on 1 August 2051, AHA! is in compliance with all
terms and conditions of the Loan Agreement. The note has been discounted using a
rate of 2.5%; the discount is being amortized to interest expense on a straight-line
basis over the life of the note. 1,281,671
Note payable to Austin Housing Finance, collateralized by rental real estate. The note
bears a 0% interest rate until maturity and the principal shall be forgiven in its
entirety if on 1 June 2107, AHA! is in compliance with all terms and conditions of the
Loan Agreement. 140,810
Note payable to Austin Housing Finance, collateralized by rental real estate. The note
bears a 0% interest rate until maturity and the principal shall be forgiven in its
entirety if on 1 June 2113, AHA! is in compliance with all terms and conditions of the
Loan Agreement. 220,880
Note payable to Austin Housing Finance, collateralized by rental real estate. The note
bears a 0% interest rate until maturity and the principal shall be forgiven in its
entirety if on 31 March 2026, AHA! is in compliance with all terms and conditions
of the Loan Agreement. 30,000
10
ACCESSIBLE HOUSING AUSTIN
NOTES TO FINANCIAL STATEMENTS
Note payable to Austin Housing Finance, collateralized by rental real estate. The note
bears a 0% interest rate until maturity and the principal shall be forgiven in its
entirety if on 31 July 2115, AHA! is in compliance with all terms and conditions of
the Loan Agreement. The note has been discounted using a rate of 4.5%; the discount
is being amortized to interest expense on a straight-line basis over the life of the note. 137,900
Note payable to Austin Housing Finance, collateralized by rental real estate. The note
bears a 0% interest rate until maturity and the principal shall be forgiven in its
entirety if on 31 July 2115, AHA! is in compliance with all terms and conditions of
the Loan Agreement. The note has been discounted using a rate of 4.5%; the discount
is being amortized to interest expense on a straight-line basis over the life of the note. 56,922
Note payable to Austin Housing Finance, collateralized by rental real estate. The note
bears a 0% interest rate until maturity and the principal shall be forgiven in its
entirety if on 31 July 2115, AHA! is in compliance with all terms and conditions of
the Loan Agreement. The note has been discounted using a rate of 4.5%; the discount
is being amortized to interest expense on a straight-line basis over the life of the note. 98,151
Note payable to Austin Housing Finance, collateralized by rental real estate. The note
bears a 0% interest rate until maturity and the principal shall be forgiven in its
entirety if on 31 July 2115, AHA! is in compliance with all terms and conditions of
the Loan Agreement. The note has been discounted using a rate of 4.5%; the discount
is being amortized to interest expense on a straight-line basis over the life of the note. 171,857
Note payable to Austin Housing Finance, collateralized by rental real estate. The note
bears a 0% interest rate until maturity and the principal shall be forgiven in its
entirety if on 31 July 2115, AHA! is in compliance with all terms and conditions of
the Loan Agreement. The note has been discounted using a rate of 4.5%; the discount
is being amortized to interest expense on a straight-line basis over the life of the note. 153,500
Note payable to Austin Housing Finance, collateralized by rental real estate. The note
bears a 0% interest rate until maturity and the principal shall be forgiven in its
entirety if on 30 September 2115, AHA! is in compliance with all terms and
conditions of the Loan Agreement. 2,492,000
5,863,411
Discount on notes payable (1,067,373)
$4,796,038
11
ACCESSIBLE HOUSING AUSTIN
NOTES TO FINANCIAL STATEMENTS
Maturities at 30 September 2023:
2024 $14,916
2025 15,796
2026 16,729
2027 17,719
2028 18,763
Thereafter 5,779,488
$5,863,411
Included in interest expense is $72,092 in forgivable interest, $26,376 related to the note payable
discount and $50,352 in paid interest expense.
Title: NOTE 11: 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.
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.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the demiminus cost rate
Program Administration Fundraising Total
Depreciation $249,185 $0 $0 $249,185
Payroll 137,416 33,908 7,138 178,462
Interest 148,820 0 0 148,820
Consulting 0 136,277 0 136,277
Maintenance and improvements 113,397 0 0 113,397
Property taxes 62,623 0 0 62,623
Insurance 38,798 9,574 2,015 50,387
Housing program 36,315 0 0 36,315
Fundraising 0 0 6,625 6,625
Supplies, copies, postage 4,927 1,216 256 6,399
Other 5,259 1,297 274 6,830
$796,740 $182,272 $16,308 $995,320
Title: NOTE 12: 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.
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.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the demiminus cost rate
For the year ended 30 September 2023, nonfinancial contributions recognized within the statement of
activities include:
Interest $72,092
Unless otherwise noted, contributed nonfinancial assets did not have donor imposed restrictions.
Interest for forgivable loans is forgiven annually as AHA! 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.
Title: NOTE 13: LITIGATION
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.
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.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the demiminus cost rate
AHA! was actively involved in mediation/arbitration during the year. The original lawsuit was against
Braun and Butler, Efficient Air Conditioning, Inc., Nichols Engineering, LLC, and Austin Community
Design and Development Center a/k/a ACDDC ("ACDDC").
AHA reached a settlement agreement with Braun and Butler on 06/15/2023.
Cause No. D-1-GN-23-000333; Accessible Housing Austin! v. Efficient Air Conditioning, Inc.; in the
98th Judicial District Court, Travis County, Texas. This is a pending breach of contract lawsuit against
Efficient Air Conditioning, Inc. ("Efficient Air") in Travis County, Texas that is currently abated
pending the final outcome of mediation. This lawsuit involves a negligence claim against the mechanical
subcontractor, Efficient Air, for construction defects relating to Efficient Air's scope of work on the
construction of AHA! at Briarcliff (the "Project"). Because this lawsuit is currently abated, there are
currently no pending deadlines associated with the lawsuit.
AAA Case No. 01-23-0002-4486; Accessible Housing Austin! v. Austin Community Design and
Development Center AKA ACDDC, Efficient Air Conditioning, Inc., and Nichols Engineering, LLC;
before the American Arbitration Association ("AAA"). Prior to a scheduled arbitration, a mediation
agreement was reached in accordance with the dispute resolution provisions in the contracts between
AHA!, Austin Community Design and Development Center a/k/a ACDDC ("ACDDC"), Efficient Air
Conditioning, and Nichols Engineering, LLC ("Nichols"). The litigation proceeding involved claims for
breach of contract, negligence, and breach of express and/or implied warranty against the Project
architect, mechanical, electrical, and plumbing engineer, and mechanical subcontactor relating to
construction and design defects caused by their work on the Project.
A demand letter for $150,000 has recently been sent by AHA! attorneys to IES Residential relating to
the Briarcliff electrical wiring installation issues. IES Residential has not responded.
Title: NOTE 14: PRIOR PERIOD ADJUSTMENT
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.
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.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the demiminus cost rate
As of 30 September 2022, the discount on notes payable was understated by $618,197 and net assets
without donor restrictions were understated by the same amount on the statement of financial position.
A prior period adjustment has been recorded to restate beginning net assets without donor restrictions.
The effect of this adjustment increased change in net assets for the year ended 30 September 2022 by
$618,197.
13
ACCESSIBLE HOUSING AUSTIN
NOTES TO FINANCIAL STATEMENTS
Beginning net assets, as previously reported $1,496,517
Prior period adjustments:
To correct contributions receivable 618,197
Beginning net assets, restated $2,114,714