12-Non-profit agencies requesting funding

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rvtc rtuv11L1CJ 1N LAJ1 1tX1'.J, 1NC:. Notes to the Financial Statements Auo st 31, 2008 NOTE 1--NATURE OF ORGANIZATION ~vD SIGIVIFICANT ACCOLINTING POLICIES Nature of Activities The Shelter Agencies for Families in East Texas (the Organization) provides crises intervention services to residents of Titus, Franklin, Morris, and Camp counties. The organization offers specialized services for victims of family violence and sexual assault. Services provided include a 24 hour hotline, emergency shelter, public education, short tenn professional counseling, assistance with victim's compensation, and advocacy with law enforcement, hospitals, and other government agencies. Basis ofAccountine The financial statements are prepared using the accrual method of accounting. Revenues are recognized when earned, and expenses are recognized when incurred. Contributed Services During the period ended August 31, 2008, the value of contributed services meeting the requirements for recognition in the financial statements was not material and has not been recorded. In addition, many individuais volunteer their time and perform a variery of tasks that assist the organization at the residents' facilities. The organization receives approximately 8,000 volunteer hours per period. Estimates 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 disciosures. Accordingly, actual results could differ from those estimates. Property and Equipment Donations of property and equipment are recorded as support at their estimated fair value. Such donations are reported as unrestricted support unless the donor has restricted the donated asset to a specific purpose. Assets donated with explicit restrictions regarding their use and contributions of cash that must be used to acquire property and equipment are reported as restricted support. The organization did not have any restricted support for the period ended August 31, 2008. Property and equipment acquisitions are recorded at cost. Property and equipment are depreciated using the straight-line method over the estimated useful lives as follows: Assets Years Buildings 39 Furniture & fixtures 7 Equipment 5-7 Income TaYes The organization is a non-profit organization that is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code. Investments The Shelter had no investments for the period ended Au;ust 3 I, 2008. Cash and Cash Equivalents For purposes of the statement of cash flows, the organization considers all highly liquid investments available for current use with an initial maturity of three months or less to be cash equivalents. Concentrations of Credit and Market Risk Financial instruments that potentially expose the organization to concentrations of credit and market risk consist only of cash equivalents. Cash equivalents are maintained only at high-quality financial institutions and credit exposure is limited. The organization has not experienced any losses on its cash equivalents. Since the organization only has demand and savings type accour.ts, there is no market risk, -6- • 00010