COM 0696.004 2008-2010 - Laserfiche WebLink

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HAWAII ISLAND HUMANE SOCIETY Notes to the Financial Statements June 30, 2010 Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Property and Equipment: The Society has purchased various fixed assets with County grant funds. As a result, these assets revert back to the grantor upon discontinuance of their intended purposes. However, management plans to use the assets for their intended purposes for the life of the assets and the likelihood of the assets having to be returned is remote. Income Taxes: Hawaii Island Humane Society is exempt from Federal income taxes under Section 501(c)(3) of the Internal Revenue Code and also from State of Hawaii income taxes under Sections 416 -19 and 416 -20 of the Hawaii Revised Statutes. 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 certain reported amounts and disclosures. According ly, actual results could differ from those estimates. Note 3. CONCENTRATIONS The Society received approximately 71% of its revenue from the County of Hawaii. Continued County funding at present service levels is dependent upon economic conditions on the Island of Hawaii and budgetary restraints experienced by the County. Reductions in this funding could affect the organization's ability to continue as a going concern. Funds received pursuant to the County of Hawai' i purchase of service agreement are for operating the County Animal Shelter and enforcing the County's animal control regulations. These funds are to be used in accordance with the agreement. Costs charged against the agreement are subject to review and acceptance by the County of Hawai' i. The shelter building and land on which the Kona shelter is located belong to the County of Hawaii. The County provides the site at no cost to the Society. This agreement must be renewed annually. The annual estimated value of the donated rent from the County of Hawai' i is $25,200. Note 4. LEASES On January 28, 2008, a copier was acquired through a 60 month non - cancelable lease agreement requiring monthly payments. The lease payment in the contract of $667.64 per month includes both equipment and service. The service portion of the lease is $127.08 per month. In the agreement, it states that Ricoh can increase the monthly service portion of the lease by up to 12% per year if so chosen. Estimated payments using the straight -line method over the life of the lease for the remaining lease term are as follows: June 30, 2011 $ 8,013 June 30, 2012 8,013 June 30, 2013 8,013 Total $ 24,039 Page 11