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CHARLES HOUSE ASSOCIATION <br />Notes to Financial Statements <br />Receivable and Revenue Recognition (Continued) <br />Use of Estimates <br />NOTE 3 - INVESTMENTS <br />Equity securities 502,402$ <br />Bonds 687,213 <br />Certificates of deposit (CDs)203,281 <br />Money market funds 219,722 <br />1,612,618$ <br />NOTE 4 - DONATED SERVICES <br />NOTE 5 - GRANTS AND ACCOUNTS RECEIVABLE <br />At times,the Organization may extend credit to customers,substantially all of whom are local <br />residents. <br />The preparation of financial statements in conformity with accounting principles generally accepted in <br />the United States of America requires management to make estimates and assumptions that affect the <br />reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date <br />of the financial statements and the reported amounts of revenue and expenses during the reporting <br />period. Actual results could differ from those estimates. <br />The Organization considers accounts receivable to be past due if payments are not received within 30 <br />days. Past due accounts are not charged interest, but late fees ranging from $15 to $50 can be applied. <br />Management estimates it received approximately 1,800 hours of volunteer time for the year ended <br />December 31,2023.No amounts have been reflected in these financial statements for such services <br />because they do not meet the criteria established by U.S. GAAP for recognition. <br />Grants and accounts receivable are comprised of amounts due to the Association for grants and service <br />fees.Accounts outstanding longer than the contractual payment terms are considered past due.The <br />grants are drawn on a reimbursement basis.All the grants and accounts receivable are expected to be <br />collected. <br />NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) <br />Investments are carried at fair value. Fair value by type of security at December 31 is detailed below: <br />The certificates of deposit bear interest ranging from 2.15%to 5%and have maturities ranging from <br />April 2024 to October 2025,with penalties for early withdrawal.Any such penalties would not have a <br />material effect on the financial statements. <br /> <br />Page 11 <br />Docusign Envelope ID: FE6E03E9-3378-4BE8-B2E5-0623619296B7