Laserfiche WebLink
EAST TEXAS COUNCIL ON ALCOHOLISM AND DRUG ABUSE <br />NOTES TO FINANCIAL STATEMENTS <br />August 31, 2008 <br />NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) <br />( H ) Estimates <br />Management uses estimates and assumptions in preparing financial statements. Those estimates and <br />assumptions affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities <br />and the reported revenues and expenses. Actual results could differ from those estimates. <br />NOTE 2- PROPERTY AND EQUIPMENT <br />All acquisitions of property and equipment and all expenditures that materially prolong the useful lives of assets <br />that exceed a capitalization threshold of $5,000 are capitalized. Furniture and equipment are recorded on the <br />books at cost. The accumulated depreciation is computed on the straight-line basis, using estimated useful <br />lives as follow: <br />Furniture and Equipment <br />5-10 years <br />The book value of furniture and equipment on August 31, 2008 is as follows: <br />Furniture and equipment $ 117,016 <br />Less accumulated depreciation (88,375) <br />$ 28,641 <br />NOTE 3- DONATED SERVICES, MATERIALS 8 FACILITIES <br />A substantial number of unpaid volunteers have made significant contributions of their time to the Council. The <br />value of this contributed time is not reflected in these statements since it is not susceptible to objective <br />measurement or valuation. <br />The use of several facilities for offices has been donated to the Council. The estimated rental value of these <br />facilities is $ 4,530 per month. $ 54,370 has been recorded in the statement of activities as a temporarily <br />restricted contribution and as rent and building maintenance expenses. <br />The Council received donations of supplies. The estimated value of the donated supplies is $ 31,928 for the <br />year ended August 31, 2008 and has been recorded as temporarily restricted contributions and supplies <br />expense. <br />NOTE 4 - CONTINGENT LIABILITIES <br />The Council participates in various federal and state grant programs. These programs are subject to program <br />compliance audits by the grantors or their representatives. Any liability for reimbursement which may arise as a <br />result of these audits is not believed to be material. <br />8 <br />1 000105 <br />