Audit 53886

Accounting Policies: 2. SIGNIFICANT ACCOUNTING POLICIES:The Financial statements have been prepared on the accrual basis. The significant policies are described as follows:A.Basis of Presentation The accompanying financial statements have been prepared on the accrual basis 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, whereby the donor has stipulated the funds be maintained in perpetuity. 2. SIGNIFICANT ACCOUNTING POLICIES, continuedB.Use of Estimates The preparation of financial statements is 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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results may differ from those estimates.C.Cash and Cash Equivalents For purposes of the statement of cash flows, cash and cash equivalents are considered to be highly liquid depository accounts with a maturity of less than three months. There have been no instances during the past year in which the amounts held exceeded the federal deposit insurance limits. D.Investments - Currently the corporation only has investments in savings accounts.E.Land, Buildings, Equipment and Depreciation Items recorded as land, buildings and equipment are recorded at cost, estimated cost or if donated at fair market value at date of the gift. Depreciation is computed on the straight-line method ranging from five to forty years. F.Support, Revenue and Expenses Revenue is recognized when earned and support when contributions are made, which may be when cash is received, unconditional promises made, or ownership of other assets is transferred to Tongore Pines. Tongore Pines reports gifts of cash and other assets as restricted support if they are received with donor-imposed restrictions that limit the use of the donated amounts. When a stipulated time or purpose is satisfied, restricted net assets are reclassified to net assets and reported in the statement of activities as net assets released from restrictions. Additionally, conditions of the HUD mortgage agreement require payments to be set-aside in a fund for future repairs and improvements to the facility. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.