Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: The accrual basis of accounting was utilited and the net assets were accounted for IAW SFAS
De Minimis Rate Used: Y
Rate Explanation: The Auditees rate was not a cost reimbursement rate and was in compliance with the 10% deminimus
Accrual Basis
Title: Basis of Presentation
Accounting Policies: The accrual basis of accounting was utilited and the net assets were accounted for IAW SFAS
De Minimis Rate Used: Y
Rate Explanation: The Auditees rate was not a cost reimbursement rate and was in compliance with the 10% deminimus
The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with generally accepted accounting principles. The financial statements are presented in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 958 dated August 2016, and the provisions of the American Institute of Certified Public Accountants (AICPA) “Audit and Accounting Guide for Not-for-Profit Organizations” (the “Guide”). ASU 958-205 was effective January 1, 2018.
Title: Basis of Presentation
Accounting Policies: The accrual basis of accounting was utilited and the net assets were accounted for IAW SFAS
De Minimis Rate Used: Y
Rate Explanation: The Auditees rate was not a cost reimbursement rate and was in compliance with the 10% deminimus
Under provisions of the Guide, net assets and revenues, expenses, gains, and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows:
Title: Basis of Presentation
Accounting Policies: The accrual basis of accounting was utilited and the net assets were accounted for IAW SFAS
De Minimis Rate Used: Y
Rate Explanation: The Auditees rate was not a cost reimbursement rate and was in compliance with the 10% deminimus
Net assets without donor restrictions – Net assets that are not subject to donor-imposed stipulations and may be expected for any purpose in performing the primary objectives of the organization. The organization may designate assets without restrictions for specific operational and strategic purposes from time to time.
Title: Basis of Presentation
Accounting Policies: The accrual basis of accounting was utilited and the net assets were accounted for IAW SFAS
De Minimis Rate Used: Y
Rate Explanation: The Auditees rate was not a cost reimbursement rate and was in compliance with the 10% deminimus
Net assets with donor restrictions – Net assets that are subject to donor-imposed stipulations by donors and grantors. Some donor restrictions are temporary in nature; those restrictions will be met by actions of the organization or by the passage of time. Other donor restrictions are perpetual in nature, where by the donor has stipulated the funds be maintained in perpetuity.
Title: Estimates
Accounting Policies: The accrual basis of accounting was utilited and the net assets were accounted for IAW SFAS
De Minimis Rate Used: Y
Rate Explanation: The Auditees rate was not a cost reimbursement rate and was in compliance with the 10% deminimus
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Title: Cash and Cash Equivalents
Accounting Policies: The accrual basis of accounting was utilited and the net assets were accounted for IAW SFAS
De Minimis Rate Used: Y
Rate Explanation: The Auditees rate was not a cost reimbursement rate and was in compliance with the 10% deminimus
For purposes of the statement of cash flows, the organization considers all cash in banks and financial institutions including cash in escrow for the payment of property taxes, sewer and insurance to be cash.
Title: Summarized Comparative Information
Accounting Policies: The accrual basis of accounting was utilited and the net assets were accounted for IAW SFAS
De Minimis Rate Used: Y
Rate Explanation: The Auditees rate was not a cost reimbursement rate and was in compliance with the 10% deminimus
The financial statements include certain prior year summarized comparative information. Such information does not include sufficient detail to constitute a presentation in conformity with GAAP. Accordingly, such information should be read in conjunction with RUPCO’s financial statements for the year ended December 31, 2022, from which the summarized information was derived.
Title: Support and Revenue
Accounting Policies: The accrual basis of accounting was utilited and the net assets were accounted for IAW SFAS
De Minimis Rate Used: Y
Rate Explanation: The Auditees rate was not a cost reimbursement rate and was in compliance with the 10% deminimus
All support and revenue are considered available for unrestricted use unless specifically restricted by the donor. Grants and other contributions of cash and other assets are reported as temporarily restricted support if they are received with donor stipulations that limit the use of the donated assets. Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized.
Title: Support and Revenue
Accounting Policies: The accrual basis of accounting was utilited and the net assets were accounted for IAW SFAS
De Minimis Rate Used: Y
Rate Explanation: The Auditees rate was not a cost reimbursement rate and was in compliance with the 10% deminimus
RUPCO receives revenue through grants and contracts as well as through property management, community development, rental income, and real estate development. Grant and contract revenues are received from Federal, State, County, and Local agencies. Any of the funding sources may, at its discretion, request reimbursement for expenses or return of funds, or both, as a result of non-compliance by RUPCO with the terms of the grants/contracts. Conditional promises to give are recognized when the conditions on which they depend are substantially met.
Title: Advertising
Accounting Policies: The accrual basis of accounting was utilited and the net assets were accounted for IAW SFAS
De Minimis Rate Used: Y
Rate Explanation: The Auditees rate was not a cost reimbursement rate and was in compliance with the 10% deminimus
RUPCO follows the policy of charging the costs of promotion and advertising to expense as incurred. For the years ended December 31, 2023, and 2022, advertising expenses amounted to $64,885 and $28,726 respectively.
Title: Receivables and Allowances for Bad Debt/Uncollectable Rents
Accounting Policies: The accrual basis of accounting was utilited and the net assets were accounted for IAW SFAS
De Minimis Rate Used: Y
Rate Explanation: The Auditees rate was not a cost reimbursement rate and was in compliance with the 10% deminimus
Receivables that have been determined to be uncollectable are charged to Bad Debt Expense and an allowance is established. This is in accordance with accounting principles generally accepted in the United States of America. In certain cases where there is no security interest and the debt has been determined to be uncollectable, the direct method is used. RUPCO as parts of its various contractual agreements maintains separate accounts for required grants.
Title: Functional Allocation of Expenses
Accounting Policies: The accrual basis of accounting was utilited and the net assets were accounted for IAW SFAS
De Minimis Rate Used: Y
Rate Explanation: The Auditees rate was not a cost reimbursement rate and was in compliance with the 10% deminimus
The costs of providing various programs and other activities have been allocated among the programs and supporting services based on their estimated benefit.
Title: Property and Equipment
Accounting Policies: The accrual basis of accounting was utilited and the net assets were accounted for IAW SFAS
De Minimis Rate Used: Y
Rate Explanation: The Auditees rate was not a cost reimbursement rate and was in compliance with the 10% deminimus
Acquisitions of property and equipment in excess of $2,500 are capitalized. Property and equipment are recorded at cost or estimated fair value at the date of gift. Donations are reported as unrestricted support unless the donor has restricted the donated asset to a specific purpose. RUPCO reclassifies temporarily restricted net assets to unrestricted net assets when donor restrictions have expired. Property and equipment are depreciated using the straight-line method over their estimated useful lives.