AgdaPkt 2020-07-13 Special Joint SA PFA

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6.C. - Page 61 of 124 Redwood City Improvement Association Notes to Financial Statements November 30, 2019 and 2018 Note 1- Summary of Significant Accounting Policies Organization The Redwood City Improvement Association (the Association) was incorporated in the State of California on October 15, 2014 as a nonprofit public benefit corporation. The Association provides programs and services within Downtown Redwood City and its surrounds to bring about its revitalization, its investment capital, and the increased provision of quality public improvements of educational, cultural, artistic, charitable and social services. The Association is supported primarily through grants from the City of Redwood City. Comparative Financial Information The accompanying financial statements include certain prior -year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America (GAAP). Accordingly, such information should be read in conjunction with the Association's audited financial statements for the year ended November 31, 2018, from which the summarized information was derived. Cash and Cash Equivalents Cash and cash equivalents for the purposes of the statement of cash flows consist of cash held in checking account and available for current operations. The Association maintains cash balances in financial institutions which are insured up to $250,000. At November 30, 2019, $508,608 in the bank exceeds Federal depository insurance coverage. Net Assets Net assets, revenues, gains, and losses are classified based on the existence or absence of donor or grantor imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions — Net assets available for use in general operations and not subject to donor (or certain grantor) restrictions. Net Assets With Donor Restrictions — Net assets subject to donor- (or certain grantor-) imposed restrictions. Some donor -imposed restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor -imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. The Association reports contributions restricted by donors as increases in net assets with donor restrictions if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, net assets with donor restrictions are reclassified to net assets without donor restrictions and reported in the statements of activities as net assets released from restrictions. At November 30, 2019, the Association has only net assets classified as net assets without donor restrictions and are held for beautifying Redwood Downtown from City of Redwood City. 267