Orange County NC Website
Browse       Search
CHARLES HOUSE ASSOCIATION <br />Notes to Financial Statements <br />NOTE 13 - LEASE <br />Years ending December 31: <br />2024 60,000$ <br />2025 35,000 <br />95,000 <br />Less interest (3,089) <br />91,911$ <br />NOTE 14 - SUBSEQUENT EVENTS <br />NOTE 15 - AVAILABILITY AND LIQUIDITY <br />Financial assets at year end: <br />Cash and cash equivalents 169,777$ <br />Investments 1,612,618 <br />Grants and accounts receivable 43,379 <br />Financial assets available to meet general expenditures <br /> over the next twelve months 1,825,774$ <br />The following represents the Organization's financial assets at December 31: <br />The Organization's goal is generally to maintain financial assets to meet 120 days of operating <br />expenses (approximately $530,000).As part of its liquidity plan,excess cash is invested in money <br />market funds and certificates of deposit. <br />The Organization has elected the practical expedient not to recognize leases with terms of 12 months or <br />less on the statement of financial position and instead recognizes the lease payments on a straight-line <br />basis over the term of the lease and variable lease payments in the period in which the obligation for <br />the payments is incurred.Therefore,the short-term lease liabilities for the periods presented do not <br />reflect the ongoing short-term lease commitment for office space.The amounts involved are not <br />considered material to the financial statements taken as a whole. <br />The Organization sold the Charles House,Yorktown property in April 2024,and paid off the <br />applicable loan described in Note 11. <br />In accordance with U.S.GAAP,the Organization has evaluated all events subsequent to the statement <br />of financial position through September 17,2024,which is the date these financial statements were <br />available to be issued, and has determined that there are no subsequent events that require disclosure. <br />The Organization has recorded one operating right-of-use asset related to its rental of space for its adult <br />day care center and administrative offices under a non-cancelable agreement expiring in July 2025. <br />The Organization calculated the lease liability using a discount rate of 4.00%.The rent expense for use <br />of this space for the year ended December 31,2023 was $60,000.The following is a maturity analysis <br />of this operating lease arrangement with a reconciliation of the undiscounted cash flows: <br /> <br />Page 14 <br />Docusign Envelope ID: FE6E03E9-3378-4BE8-B2E5-0623619296B7