Agenda - 04-01-1992 - Laserfiche WebLink

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ORANGE COMMUNITY HOUSING CORPORATION 7 NOTES TO FINANCIAL STATEMENTS Page 1 of 2 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES v A. Organization. Orange Community Housing Corporation (OCHC) is incorporated as a tax - exempt organization to support and initiate construction, conversion, or rehabilitation of both rental and owner - occupied housing, focusing on families and individuals with income levels at or below the median income for their community. B. Accounting Policies. The financial statements of the Organization are prepared on the accrual basis of accounting in accordance with generally accepted accounting principles. Accordingly, revenues are recognized when earned and expenses are recognized when the obligation is incurred. C. Fund Accounting. To ensure observance of limitations and restrictions placed on the use of resources available to the Organization, the accounts of the Organization are maintained in accordance with the principles of fund accounting. For the year ended June 30, 1991, no funds other than unrestricted had activity, and are reported. D. Cash and Cash Equivalents. Cash and cash equivalents consist of money on deposit with local financial institutions. E. Property and Equipment. Office furniture and equipment is stated at cost. Depreciation is provided for over estimated useful lives of 5 and 7 years on a straight -line basis. F. Income Tax .Status. The Organization is a nonprofit, tax - exempt, publicly supported organization under Section 501(c)(3) of the Internal Revenue Code. G. Commitments. A one -year employment agreement exists between Orange County and the Organization regarding the services of the executive director that expires January 7, 1992. At June 30, 1991, remaining payments under this agreement are $25,064.