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Notes to Financial Statements <br /> Page 2 . <br /> Accounts Receivable <br /> Accounts receivable are stated at the amount management expects <br /> to collect on outstanding balances. Management maintains an <br /> allowance for probable uncollectible amounts based on its <br /> assessment of the current status of individual accounts. A <br /> provision for bad debts is made periodically to adjust the <br /> allowance for .amounts which have not been collected in a <br /> reasonable period of time. Uncollectible balances are written- <br /> off through a charge to the valuation allowance and a credit to <br /> accounts receivable. All balances which have been outstanding <br /> over 30 days are considered delinquent. <br /> Reinsurance (Stop-Loss Insurance) <br /> Reinsurance premiums are reported as health care costs, and <br /> reinsurance recoveries are reported as a reduction of ,related <br /> health care costs. <br /> Investments <br /> Investments in equity securities with readily determinable fair ' <br /> values and all investments in debt securities are initially. <br /> recorded at (a) acquisition cost if purchased or (b) fair value <br /> if received by contribution or by agency transaction. <br /> Thereafter, these investments are reported in the statement of <br /> financial position at fair value,; and realized and unrealized <br /> gains and losses are reported. in the statement of operations. <br /> Accordingly, investments are reflected at fair market value at <br /> November 30, 2013 and 2012. <br /> Non-Expendable Property <br /> Property acquired is considered owned by the Organization. <br /> However, the United States Government has a reversionary <br /> interest in property purchased with Federal funds or acquired <br /> through government appropriations; therefore, its disposition, <br /> as well as ownership of any proceeds therefrom, is subject to <br /> Federal regulations. The Organization capitalizes all non- <br /> expendable property acquisitions of $500 or more. Depreciation <br /> is provided on the straight-line basis over the estimated <br /> useful lives of the assets ranging from four to 20 years. <br /> Capital Leases-- <br /> Capital lease obligations are recorded at the present value of <br /> the future minimum payments discounted at the interest rate <br /> implicit in the lease(s) . A corresponding amount is <br /> capitalized as the value of the asset and depreciated over its <br /> estimated useful life, ranging from five to ten years. <br /> -15- <br />