Audit 50827

Accounting Policies: Basis of Presentation 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.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: 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. 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. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)EstimatesThe 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.Cash and Cash EquivalentsFor 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.Summarized Comparative InformationThe 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 RUPCOs financial statements for the year ended December 31, 2019, from which the summarized information was derived.Support and RevenueAll 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. RUPCO receives revenue through grants and contracts as well as through property management, rental income, and real estate development. Grant and contract revenues are received from Federal and State 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. Advertising RUPCO follows the policy of charging the costs of promotion and advertising to expense as incurred. For the years ended December 31, 2021, and 2020, advertising expenses amounted to $28,726 and $10,867 respectively. Receivables and Allowances for Bad Debt/Uncollectable Rents Receivables that have been determined to be uncollectable are charged to Bad Debt Expense and an allowance is established. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.