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<br />Notes to the Financial Statements
<br />August 31, 2008
<br />NOTE 2--PROPERTY AND EQLTIPMENT
<br />Properiy and equipment consist of the following:
<br />Land
<br />Sib s
<br />Buildings
<br />Furniture and fixtures
<br />Machinery and equipment
<br />Vehicles
<br />Leasehold icnprovements
<br />Less accumulated depreciation
<br />Depreciation expense for the year is $33,974.
<br />NOTE 3--GRANT ACTMTY
<br />74,904
<br />2,133
<br />922,768
<br />41,020
<br />52,519
<br />16,842
<br />3,235
<br />(186,628)
<br />926.793
<br />In the noimal course of operations, the organization receives grant funds from various Federal and State Agencies. The grant
<br />programs are subject to audit by agents of the granting authority, the puipose of which is to insure compliance with
<br />conditions precedent to the granting of funds. Aay liabiliry for reimbursement which may arise as the result of these audits is
<br />not believed to be material.
<br />NOTE 4--NOTES PAYABLE
<br />In 2004/2005 $400,000 was borrowed to construct a new office building. The construction was completed and the note was
<br />f2nalized in August, 2005. The note was to bear an interest rate of 62% and to be paid back in 180 monthly installments of
<br />$3,419 beginning September, 2005. An additional $100,000 of principal was paid in December, 2005 to reduce the note
<br />balance to $245,623. Regular monthly payments and an additional $8,000 of principal were paid during the current year.
<br />This balance is being retired at $2,568 per month of principal and interest. The note still has an interest rate of 6.2%.
<br />Interest
<br />Interest
<br />Note
<br />Note
<br />Rate Origianl
<br />Current
<br />Balance
<br />Issued/
<br />Balance
<br />Payable Note
<br />Year
<br />9/1/2007
<br />Retired
<br />8/31/2007
<br />Office Building Note 6.20% 400,000
<br />16,210
<br />261,364
<br />22;603
<br />238,761
<br />23876--1
<br />Debt requirements are as follows:
<br />Year
<br />Ended
<br />8/31
<br />Principal
<br />Interest
<br />Total
<br />2009
<br />16,473
<br />14,340
<br />30,813
<br />2010
<br />17,524
<br />13,289
<br />30,813
<br />2011
<br />18,641
<br />12,172
<br />30,813
<br />2012
<br />19,831
<br />10,982
<br />30,813
<br />2013
<br />21,096
<br />9,717
<br />30,813
<br />2014-2018
<br />127,468
<br />26,597
<br />154,065
<br />2019-2023
<br />17,728
<br />370
<br />18,098
<br />238.761
<br />87.467
<br />326.228
<br />-7-
<br />• UU(1170
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