Title: NOTE 1: ORGANIZATION
Accounting Policies: BASIS OF ACCOUNTING
The financial statements of NCFH are prepared using the accrual basis of accounting whereby
revenues and expenses are recognized in the period earned or incurred.
De Minimis Rate Used: N
Rate Explanation: NCFH did not use the de minimus cost rate
The National Center for Farmworker Health, Inc. (NCFH) is a 501(c)(3) nonprofit corporation
created in 1975 whose purpose is to provide the exchange of medical information among community
based migrant health centers in order to achieve continuity of health care for migrant farmworkers
nationwide. NCFH is supported primarily through federal and other grants.
Title: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: BASIS OF ACCOUNTING
The financial statements of NCFH are prepared using the accrual basis of accounting whereby
revenues and expenses are recognized in the period earned or incurred.
De Minimis Rate Used: N
Rate Explanation: NCFH did not use the de minimus cost rate
BASIS OF ACCOUNTING
The financial statements of NCFH are prepared using the accrual basis of accounting whereby
revenues and expenses are recognized in the period earned or incurred.
FINANCIAL STATEMENT PRESENTATION
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.
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 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.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of demand deposits such as cash in bank and money market
funds.
INVESTMENTS
Investments are stated at fair value in the statement of financial position with any realized or
unrealized gains and losses reported in the statement of activities.
FIXED ASSETS
Fixed assets with a useful life of more than one year and an original cost equal to or greater than
$10,000 are recorded at cost or, if donated, recorded at fair market value on the date of donation.
Maintenance and repairs which neither materially add to the value of the property nor appreciably
prolong its life, are charged to expense as incurred.
9
NATIONAL CENTER FOR FARMWORKER HEALTH, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Depreciation expense is recorded using the straight-line method and the following estimated useful
lives:
Buildings 40 years
Building Improvements 10-20 years
Furniture & Equipment 5-7 years
RECEIVABLES
NCFH considers all recorded accounts and grants receivables to be fully collectible. Accordingly,
no allowance for doubtful accounts is required.
REVENUE AND REVENUE RECOGNITION
Revenue is recognized when earned. Program service fees and payments under cost-reimbursable
contracts received in advance are deferred to the applicable period in which the related services
are performed or expenditures are incurred, respectively. Contributions are recognized when cash,
securities or other assets, or an unconditional promise to give is received. Conditional promises
to give are not recognized until the conditions on which they depend have been substantially met.
Contract revenue from training and technical assistance services is recognized over time as the
service is performed; payment is due upon completion of the services.
FEDERAL AWARDS
A significant portion of NCFH’s revenue is derived from cost reimbursable federal grants, which
are conditioned upon certain performance requirements and/or the incurrence of allowable
qualifying expenses. Amounts received are recorded as revenue when NCFH has incurred
expenditures in compliance with specific contract or grant provisions. NCFH has been awarded
cost reimbursable grants of $20,496,123 that have not been recognized as revenue at year end
because qualifying expenditures have not been incurred.
ESTIMATES
The preparation of financial statements in conformity with U.S. generally accepted accounting
principles require management to make estimates and assumptions that affect the reported amounts
and disclosures. Accordingly, actual results could differ from those estimates.
INVENTORY
Inventory, consisting of prints, posters, note cards, books and pamphlets, videos, and other
educational materials are carried at the lower of cost or net realizable value. Revenues from
Resource Center sales are used to replenish the Resource Center inventory in order to fund
scholarships.
INCOME TAX STATUS
NCFH is a nonprofit organization exempt from Federal income taxes under IRS Code Section
501(c)(3), except to the extent it has unrelated business activities. Therefore, no provision has been
made for Federal income taxes in the accompanying financial statements. NCFH’s policy is to
record interest and penalties related to income taxes as interest and other expense, respectively.
10
NATIONAL CENTER FOR FARMWORKER HEALTH, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUNCTIONAL EXPENSES
The costs of providing various programs and other activities have been summarized on a functional
basis in the financial statements. Accordingly, certain costs have been allocated among the
programs and supporting services benefitted. NCFH allocates salaries, payroll taxes, other
employee benefits, supplies, telephone, postage/shipping, occupancy, office/computer equipment,
travel, conferences & meetings, consultants/contracts, subscriptions, printing and publications,
training and development, and miscellaneous costs between program and administrative by
estimating the percentage of personnel time spent on each area as estimated by management. The
estimates are reviewed periodically and the allocations revised, if necessary, to reflect changes in
the activities of the organization.
COMPENSATED ABSENCES
NCFH expenses paid time off in the year earned. Upon termination, the employee is compensated
for any accrued but unused time, not to exceed the maximum of hours allowed per the personnel
policy based on years of service.
MEMORANDUM ONLY SUMMARIZED COMPARATIVE INFORMATION FOR PRIOR YEAR
The financial statements include certain prior year summarized comparative information. Such
information does not include sufficient detail to constitute a presentation in conformity with
accounting principles generally accepted in the United States of America. Accordingly, such
information should be read in conjunction with NCFH’s financial statements for the year ended
December 31, 2022, from which the summarized information was derived, and the Independent
Auditor’s Report on pages 1- 3.
SUBSEQUENT EVENTS
Management of NCFH 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: NOTE 3: FAIR VALUE DISCLOSURES
Accounting Policies: BASIS OF ACCOUNTING
The financial statements of NCFH are prepared using the accrual basis of accounting whereby
revenues and expenses are recognized in the period earned or incurred.
De Minimis Rate Used: N
Rate Explanation: NCFH did not use the de minimus cost rate
Quoted prices in
Active Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3
Investments $1,794,119 $0 $0
Title: NOTE 4: INVESTMENTS
Accounting Policies: BASIS OF ACCOUNTING
The financial statements of NCFH are prepared using the accrual basis of accounting whereby
revenues and expenses are recognized in the period earned or incurred.
De Minimis Rate Used: N
Rate Explanation: NCFH did not use the de minimus cost rate
Investments consist of the following:
Certificates of deposit $15,070
Municipal bonds 109,346
Mutual funds 1,669,703
$1,794,119
Title: NOTE 5: EMPLOYEE BENEFIT PLAN
Accounting Policies: BASIS OF ACCOUNTING
The financial statements of NCFH are prepared using the accrual basis of accounting whereby
revenues and expenses are recognized in the period earned or incurred.
De Minimis Rate Used: N
Rate Explanation: NCFH did not use the de minimus cost rate
NCFH provides a 401(k) retirement and profit sharing plan that covers all employees that have
completed one year of service and have also attained age 21. Under the plan, the employees
contribute a percentage or dollar amount of their salary to the plan and NCFH makes discretionary
contributions determined on an annual basis by management. The total discretionary contributions
for the year ended December 31, 2023 were $105,171.
Title: NOTE 6: CONCENTRATIONS
Accounting Policies: BASIS OF ACCOUNTING
The financial statements of NCFH are prepared using the accrual basis of accounting whereby
revenues and expenses are recognized in the period earned or incurred.
De Minimis Rate Used: N
Rate Explanation: NCFH did not use the de minimus cost rate
NCFH’s financial instruments exposed to concentration of credit risk consist of investments which
are held in brokerage accounts. NCFH has not experienced any losses due to this credit risk.
Investment balances in excess of SIPC coverage were $1,372,029.
Bank balances held in financial institutions in excess of FDIC coverage were $2,207,899 at year-end.
One grant represented 75% of NCFH’s total revenue for the year and another grant 69% of total grant
receivables due at year-end.
Title: NOTE 7: DISAGGREGATION OF REVENUE
Accounting Policies: BASIS OF ACCOUNTING
The financial statements of NCFH are prepared using the accrual basis of accounting whereby
revenues and expenses are recognized in the period earned or incurred.
De Minimis Rate Used: N
Rate Explanation: NCFH did not use the de minimus cost rate
Revenue, disaggregated by training services and sales:
Training and technical assistance services recognized based on goods and services
transferred to customers over time $139,753
Resource Center sales earned at a point in time 774
Artwork sales earned at a point in time 15,000
Total contract revenue $155,527
Contract revenue consists of revenue received from training and technical assistance services as well
as Resource Center and artwork sales which are included in contracts and other revenues on the
statement of activities. Topic 606 applies to revenue received from training and technical assistance
services and sales. Revenue is recognized over time as prep work, training, sale, and reporting are
completed. At year-end, all training and technical assistance revenue was earned.
Title: NOTE 8: LIQUIDITY AND AVAILABILITY
Accounting Policies: BASIS OF ACCOUNTING
The financial statements of NCFH are prepared using the accrual basis of accounting whereby
revenues and expenses are recognized in the period earned or incurred.
De Minimis Rate Used: N
Rate Explanation: NCFH did not use the de minimus cost rate
Financial assets available for general expenditure, that is, without donor or other restrictions
limiting their use, within one year of the statement of financial position date, comprise the
following:
Cash and cash equivalents $2,701,336
Grants receivable 459,554
Other receivables 40,390
$3,201,280
As part of NCFH’s liquidity management plan, NCFH invests cash in excess of daily requirements
in investments, certificates of deposit’s, and money market funds.
Title: NOTE 9: CONTINGENCIES
Accounting Policies: BASIS OF ACCOUNTING
The financial statements of NCFH are prepared using the accrual basis of accounting whereby
revenues and expenses are recognized in the period earned or incurred.
De Minimis Rate Used: N
Rate Explanation: NCFH did not use the de minimus cost rate
NCFH is funded by grants and contracts that are subject to financial and compliance audits by the
grantor agencies. These grants and contracts have certain compliance requirements and, should audits
by the grantor agencies disclose any areas of substantial noncompliance, NCFH may be required to
refund any disallowed costs. Management does not believe any instances of substantial
noncompliance exist.