2012-377 Co Manager - Housing for New Hope Outside agency $20,000

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HOUSING FOR NEW HOPE, INC. NOTES TO THE FINANCIAL STATEMENTS AUGUST 31, 2011 AND 2010 Contributions — The Organization follows FASB ASC 958, Not-for-Profit Entities whereby contributions received are recorded as unrestricted, temporarily restricted or permanently restricted support, depending on the existence and/or nature of any donor restrictions. All donor restricted support is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a restriction expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statements of Activities as net assets released from restrictions. Donated space and forgiveness of debt — Donated space Is reflected as contributions in the accompanying financial statements at its estimated values at the date of receipt. Forgiveness of debt is recorded as revenue as the debt is forgiven. Functional allocation of expenses—The cost of providing various programs and other activities have been summarized on a functional basis in the Statements of Activities and Statements of Functional Expenses. Accordingly, certain costs have been allocated among the program and supporting services benefited. Use of estimates — The preparation of financial statements in conformity with accounting principles generally accepted In the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Tax status — The Organization is exempt from federal and state income taxes under Section 501(c)(3) of the U.S. Internal Revenue Code and the applicable state tax statutes. In addition, the Organization qualifies for the charitable contributions deduction under Section 170(b)(1)(a)of the U.S. Internal Revenue Code. Further, the Organization has been determined not to be a private foundation under Section 509(a)(2)of the U.S. Internal Revenue Code. FASB ASC 740 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FASB ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing financial statements to determine whether the tax positions are "more-likely-than-not' to be sustained by the applicable tax authority. As of the date of the independent auditors' report, the Organization has no uncertain tax positions that qualify for either recognition or disclosure in the financial statements. Income tax returns from 2007 through 2011 are open for examination by tax authorities. Statements of cash flows - The Organization considers all unrestricted cash, highly liquid investments and cash restricted by donor accounts as cash equivalents for purposes of the statements of cash flows. Highly liquid investments are not considered as cash equivalents if they are purchased with resources that have donor-imposed restrictions that limit their use to long-term investment.