Title: BASIS OF PRESENTATION
Accounting Policies: The following significant accounting policies have been followed in the preparation of the
financial statements:
Basis of Accounting
Mariposa Housing, Inc. maintains its records and prepares its financial statements using the
accrual basis of accounting in accordance with accounting principles generally accepted in
the United States of America. The net assets, revenues, gains and losses, and other support, expenses and other changes in the accompanying financial statements are
classified based on the existence or absence of donor-imposed restrictions. Accordingly, for
reporting purposes, net assets of the Organization and changes therein are classified as
follows:
Net Assets Without Donor Restrictions – Net assets that are not subject to donorimposed
stipulations. This includes any amounts designated by the Board for certain purposes.
Net Assets With Donor Restrictions – Net assets subject to donor-imposed stipulations that may or will be met either by actions of the Organization and/or the passage of time.
Revenue Recognition
Rental revenue is shown at its maximum gross potential. Vacancy loss is shown as a
reduction in rental revenue.
Receivables
Management has elected to record bad debts using the direct write- off method. Accounting
principles generally accepted in the United States of America require that the allowance
method be used to reflect bad debts. However, the effect of the use of the direct write-off
method is not materially different from the result that would have been obtained had the
allowance method been followed.
Cash Equivalents
The Organization considers all short-term investments with an original maturity of three
months or less to be cash equivalents.
Funded Reserves
In accordance with the Regulatory Agreement for nonprofit mortgagors under Section 811 of
the National Affordable Housing Act, Mariposa Housing, Inc. maintains a replacement
reserve and a furniture reserve from which funds cannot be disbursed without HUD
approval.
Fixed Assets
Fixed assets are recorded at cost. Depreciation is computed on the straight-line method
based upon estimated useful lives as follows:
Buildings and Building Improvements 7 to 30 Years
Furniture and Equipment 7 Years
Substantially all property and equipment serve as underlying assets for operating leases in
which the Organization is the lessor. Maintenance and minor repairs are charged against
income, major renewals and betterments are capitalized and depreciated. It is the
Organization’s policy to capitalize all property and equipment purchases greater than $1,000
with an estimated useful life of greater than one year.
Advertising Costs
It is the policy of the Organization to expense advertising costs as they are incurred.
Functional Allocation of Expenses
The financial statements report certain categories of expenses that are attributable to more
than one program or supporting function of the Organization. Therefore, these expenses
require allocation on a reasonable basis that is consistently applied. The expenses that are
allocated include the following: salaries and benefits, which are allocated on the basis of
time spent on programs; training and payroll processing fees, based on headcount in the
program; maintenance and landscaping, based on square footage of property; Housing
Management, based on number of client beds as a percent of the total number of beds in
agency; rental & building costs, based on square footage of occupied space by respective
program; Quality Assurance for Medi-Cal billable programs, based on budgeted cost of
programs.
Estimates
The preparation of the financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make estimates
and assumptions that affect certain reported amounts and disclosures. Actual results could
differ from those estimates.
Distributions
The Organization’s regulatory agreement with HUD stipulates, among other things, that the
Organization will not make distributions of assets or income to any of its officers or directors.
Income Taxes
As a tax-exempt not-for-profit organization, the Organization is exempt from federal income
taxes under Section 501(c)(3) of the Internal Revenue Code and from state franchise tax
under California Revenue and Taxation Code Section 23701(d), but is subject to taxes on
unrelated business income when earned.
Management has considered its tax positions and believes that all of the positions taken in
its federal and state tax returns are more likely than not to be sustained upon examination.
The Organization’s returns are subject to examination by federal and state taxing
authorities, generally for three years and four years, respectively, after they are filed.
Fair Value Measurements
The Organization’s financial instruments, including cash and cash equivalents, accounts
receivable and accounts payable are carried at cost, which approximates their fair value
because of the short-term maturity of these instruments. The fair value of the Organization’s
debt approximates book value as of June 30, 2024.
Residential Leases
Revenue from lease payments is recognized under the accrual method. Lease payments
are included in income as rents become due. Lease payments received in advance are
deferred until earned. At the commencement of an operating lease, no revenue is
recognized; subsequently, lease payments received by the Organization are recognized on
the straight-line basis.
Leasing operations consist principally of operating leases of residential real estate expiring
in various months through 2024, in which the Organization is the lessor. All leases provide
for renewal options. Lease contracts do not include variable lease payments.
Subsequent Events
Subsequent events have been evaluated through September 30, 2024, which is the date the financial statements were available to be issued.
De Minimis Rate Used: N
Rate Explanation: Mariposa Housing, Inc. has elected not to use the 10 percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the
federal award activity of Mariposa Housing, Inc. under programs of the federal government
for the year ended June 30, 2024. The information in this Schedule is presented in
accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the
operations of Mariposa Housing, Inc., it is not intended to and does not present the financial
position, changes in net assets, or cash flows of Mariposa Housing, Inc.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: The following significant accounting policies have been followed in the preparation of the
financial statements:
Basis of Accounting
Mariposa Housing, Inc. maintains its records and prepares its financial statements using the
accrual basis of accounting in accordance with accounting principles generally accepted in
the United States of America. The net assets, revenues, gains and losses, and other support, expenses and other changes in the accompanying financial statements are
classified based on the existence or absence of donor-imposed restrictions. Accordingly, for
reporting purposes, net assets of the Organization and changes therein are classified as
follows:
Net Assets Without Donor Restrictions – Net assets that are not subject to donorimposed
stipulations. This includes any amounts designated by the Board for certain purposes.
Net Assets With Donor Restrictions – Net assets subject to donor-imposed stipulations that may or will be met either by actions of the Organization and/or the passage of time.
Revenue Recognition
Rental revenue is shown at its maximum gross potential. Vacancy loss is shown as a
reduction in rental revenue.
Receivables
Management has elected to record bad debts using the direct write- off method. Accounting
principles generally accepted in the United States of America require that the allowance
method be used to reflect bad debts. However, the effect of the use of the direct write-off
method is not materially different from the result that would have been obtained had the
allowance method been followed.
Cash Equivalents
The Organization considers all short-term investments with an original maturity of three
months or less to be cash equivalents.
Funded Reserves
In accordance with the Regulatory Agreement for nonprofit mortgagors under Section 811 of
the National Affordable Housing Act, Mariposa Housing, Inc. maintains a replacement
reserve and a furniture reserve from which funds cannot be disbursed without HUD
approval.
Fixed Assets
Fixed assets are recorded at cost. Depreciation is computed on the straight-line method
based upon estimated useful lives as follows:
Buildings and Building Improvements 7 to 30 Years
Furniture and Equipment 7 Years
Substantially all property and equipment serve as underlying assets for operating leases in
which the Organization is the lessor. Maintenance and minor repairs are charged against
income, major renewals and betterments are capitalized and depreciated. It is the
Organization’s policy to capitalize all property and equipment purchases greater than $1,000
with an estimated useful life of greater than one year.
Advertising Costs
It is the policy of the Organization to expense advertising costs as they are incurred.
Functional Allocation of Expenses
The financial statements report certain categories of expenses that are attributable to more
than one program or supporting function of the Organization. Therefore, these expenses
require allocation on a reasonable basis that is consistently applied. The expenses that are
allocated include the following: salaries and benefits, which are allocated on the basis of
time spent on programs; training and payroll processing fees, based on headcount in the
program; maintenance and landscaping, based on square footage of property; Housing
Management, based on number of client beds as a percent of the total number of beds in
agency; rental & building costs, based on square footage of occupied space by respective
program; Quality Assurance for Medi-Cal billable programs, based on budgeted cost of
programs.
Estimates
The preparation of the financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make estimates
and assumptions that affect certain reported amounts and disclosures. Actual results could
differ from those estimates.
Distributions
The Organization’s regulatory agreement with HUD stipulates, among other things, that the
Organization will not make distributions of assets or income to any of its officers or directors.
Income Taxes
As a tax-exempt not-for-profit organization, the Organization is exempt from federal income
taxes under Section 501(c)(3) of the Internal Revenue Code and from state franchise tax
under California Revenue and Taxation Code Section 23701(d), but is subject to taxes on
unrelated business income when earned.
Management has considered its tax positions and believes that all of the positions taken in
its federal and state tax returns are more likely than not to be sustained upon examination.
The Organization’s returns are subject to examination by federal and state taxing
authorities, generally for three years and four years, respectively, after they are filed.
Fair Value Measurements
The Organization’s financial instruments, including cash and cash equivalents, accounts
receivable and accounts payable are carried at cost, which approximates their fair value
because of the short-term maturity of these instruments. The fair value of the Organization’s
debt approximates book value as of June 30, 2024.
Residential Leases
Revenue from lease payments is recognized under the accrual method. Lease payments
are included in income as rents become due. Lease payments received in advance are
deferred until earned. At the commencement of an operating lease, no revenue is
recognized; subsequently, lease payments received by the Organization are recognized on
the straight-line basis.
Leasing operations consist principally of operating leases of residential real estate expiring
in various months through 2024, in which the Organization is the lessor. All leases provide
for renewal options. Lease contracts do not include variable lease payments.
Subsequent Events
Subsequent events have been evaluated through September 30, 2024, which is the date the financial statements were available to be issued.
De Minimis Rate Used: N
Rate Explanation: Mariposa Housing, Inc. has elected not to use the 10 percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
Expenditures reported on the Schedule are reported on the accrual basis of accounting.
Such expenditures are recognized following, as applicable, either the cost principles in OMB
Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained
in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein
certain types of expenditures are not allowable or are limited as to reimbursement. Negative
amounts shown on the Schedule represent adjustments or credits made in the normal
course of business to amounts reported as expenditures in prior years. Mariposa Housing,
Inc. has elected not to use the 10 percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
Title: LOAN OUTSTANDING
Accounting Policies: The following significant accounting policies have been followed in the preparation of the
financial statements:
Basis of Accounting
Mariposa Housing, Inc. maintains its records and prepares its financial statements using the
accrual basis of accounting in accordance with accounting principles generally accepted in
the United States of America. The net assets, revenues, gains and losses, and other support, expenses and other changes in the accompanying financial statements are
classified based on the existence or absence of donor-imposed restrictions. Accordingly, for
reporting purposes, net assets of the Organization and changes therein are classified as
follows:
Net Assets Without Donor Restrictions – Net assets that are not subject to donorimposed
stipulations. This includes any amounts designated by the Board for certain purposes.
Net Assets With Donor Restrictions – Net assets subject to donor-imposed stipulations that may or will be met either by actions of the Organization and/or the passage of time.
Revenue Recognition
Rental revenue is shown at its maximum gross potential. Vacancy loss is shown as a
reduction in rental revenue.
Receivables
Management has elected to record bad debts using the direct write- off method. Accounting
principles generally accepted in the United States of America require that the allowance
method be used to reflect bad debts. However, the effect of the use of the direct write-off
method is not materially different from the result that would have been obtained had the
allowance method been followed.
Cash Equivalents
The Organization considers all short-term investments with an original maturity of three
months or less to be cash equivalents.
Funded Reserves
In accordance with the Regulatory Agreement for nonprofit mortgagors under Section 811 of
the National Affordable Housing Act, Mariposa Housing, Inc. maintains a replacement
reserve and a furniture reserve from which funds cannot be disbursed without HUD
approval.
Fixed Assets
Fixed assets are recorded at cost. Depreciation is computed on the straight-line method
based upon estimated useful lives as follows:
Buildings and Building Improvements 7 to 30 Years
Furniture and Equipment 7 Years
Substantially all property and equipment serve as underlying assets for operating leases in
which the Organization is the lessor. Maintenance and minor repairs are charged against
income, major renewals and betterments are capitalized and depreciated. It is the
Organization’s policy to capitalize all property and equipment purchases greater than $1,000
with an estimated useful life of greater than one year.
Advertising Costs
It is the policy of the Organization to expense advertising costs as they are incurred.
Functional Allocation of Expenses
The financial statements report certain categories of expenses that are attributable to more
than one program or supporting function of the Organization. Therefore, these expenses
require allocation on a reasonable basis that is consistently applied. The expenses that are
allocated include the following: salaries and benefits, which are allocated on the basis of
time spent on programs; training and payroll processing fees, based on headcount in the
program; maintenance and landscaping, based on square footage of property; Housing
Management, based on number of client beds as a percent of the total number of beds in
agency; rental & building costs, based on square footage of occupied space by respective
program; Quality Assurance for Medi-Cal billable programs, based on budgeted cost of
programs.
Estimates
The preparation of the financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make estimates
and assumptions that affect certain reported amounts and disclosures. Actual results could
differ from those estimates.
Distributions
The Organization’s regulatory agreement with HUD stipulates, among other things, that the
Organization will not make distributions of assets or income to any of its officers or directors.
Income Taxes
As a tax-exempt not-for-profit organization, the Organization is exempt from federal income
taxes under Section 501(c)(3) of the Internal Revenue Code and from state franchise tax
under California Revenue and Taxation Code Section 23701(d), but is subject to taxes on
unrelated business income when earned.
Management has considered its tax positions and believes that all of the positions taken in
its federal and state tax returns are more likely than not to be sustained upon examination.
The Organization’s returns are subject to examination by federal and state taxing
authorities, generally for three years and four years, respectively, after they are filed.
Fair Value Measurements
The Organization’s financial instruments, including cash and cash equivalents, accounts
receivable and accounts payable are carried at cost, which approximates their fair value
because of the short-term maturity of these instruments. The fair value of the Organization’s
debt approximates book value as of June 30, 2024.
Residential Leases
Revenue from lease payments is recognized under the accrual method. Lease payments
are included in income as rents become due. Lease payments received in advance are
deferred until earned. At the commencement of an operating lease, no revenue is
recognized; subsequently, lease payments received by the Organization are recognized on
the straight-line basis.
Leasing operations consist principally of operating leases of residential real estate expiring
in various months through 2024, in which the Organization is the lessor. All leases provide
for renewal options. Lease contracts do not include variable lease payments.
Subsequent Events
Subsequent events have been evaluated through September 30, 2024, which is the date the financial statements were available to be issued.
De Minimis Rate Used: N
Rate Explanation: Mariposa Housing, Inc. has elected not to use the 10 percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
Mariposa Housing, Inc. had the following loan balance outstanding at June 30, 2024. The
loan balance outstanding at the beginning of the year is included in the federal expenditures
presented in the schedule of expenditures of federal awards. The balance of the loan
outstanding at June 30, 2024, consists of: Supportive Housing for Persons with Disabilities 14.181 $1,319,500