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Lamar County Human Resources Council, Inc. <br />Notes to Financial Statements <br />For the Year Ended September 30, 2008 <br />D. ESTIMATES <br />Management uses estimates and assumptions in preparing financial statements. Those <br />estimates and assumptions affect the reported amounts of assets and liabilities, the <br />disclosure of contingent assets and liabilities, and the reported revenues and expenses. <br />Actual results could differ from those estimates. <br />E. PUBLIC SUPPORT AND REVENUE - DONATED SERVICES <br />Certain entities contribute substantial amounts of materials and services toward the <br />fulfillment of projects initiated by LCHRC. To the extent that the contributions of <br />materials and services are made under the control of LCHRC, are objectively <br />measurable and represent program or support expenditures which would otherwise be <br />incurred by LCHRC personnel, they are reflected in both public support and program <br />expenditures in the accompanying financial statements. <br />F. DONATED MATERIALS <br />Donated materials are reflected as contributions at their estimated value at date of receipt <br />and are recorded as expenses for program services. <br />G. GRANTS AND CONTRACTS <br />Support received under grants and contracts with the United States Government, the <br />State of Texas, and other agencies is recorded as temporarily restricted support if they <br />are received with donor stipulations that limit the use of the donated assets. Support that <br />is restricted by the donor is reported as an increase in unrestricted net assets if the <br />restriction expires in the reporting period in which the support is recognized. All other <br />donor-restricted support is reported as an increase in temporarily or permanently <br />restricted net assets depending on the nature of the restriction. When donor restrictions <br />expires, that is, when a stipulated time restriction ends or purpose restriction is <br />accomplished, temporarily restricted net assets are reclassified to unrestricted net assets <br />and reported in the statement of activities as net assets released from restrictions. The <br />amount recognized is either exact cost or unit cost, depending on the terms of the <br />contract. <br />H. PROPERTY, PLANT AND EQUIPMENT <br />Donations of property, plant and equipment are recorded as support at their estimated <br />fair value. Such donations are reported as unrestricted support unless the donor has <br />restricted the donated asset to a specific purpose. <br />8 <br />m 000140 <br />