THE NHP FOUNDATION AND ITS AFFILIATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED YEARS ENDED DECEMBER 31, 2019 and 2018
NOTE 4 - STATEMENT OF CASH FLOWS The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheet that sum to the total of the same such amounts in the statement of cash flows:
2019
2018
Cash and cash equivalents
$
28,966,616
$
37,293,851 1,514,694 1,662,526 53,199,632
Tenant security deposits
1,752,724
Restricted cash
20,736,654 65,716,709
Funded reserves
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows
$
117,172,703
$
93,670,703
Amounts included in restricted cash are comprised of donor restricted cash, tenant security deposits, and funded reserves as required by various agreements.
NOTE 5 - HOUSING ASSISTANCE AGREEMENTS The Federal Housing Administration (“FHA”) has contracted with certain affiliated entities under Section 8 of the Housing Act of 1937, to make housing assistance payments on behalf of qualified tenants. The various contracts have expiration dates ranging from 2020 through 2039. The affiliated entities receive a substantial amount of revenue from these contracts, and therefore, if the contracts are not extended or replaced, operating results will be adversely affected. Management plans to renew the contracts prior to the expiration of their terms, for the maximum renewal term available. NOTE 6 - INVESTMENTS At December 31, 2019 and 2018, investments held in brokerage investment accounts consists of certificates of deposits in the amount of $0 and $226,494, respectively. It is management’s opinion that the fair value of these investments approximates their carrying amount on the books of NHPF. As of December 31, 2019 and 2018, $0 and $148,886, respectively, is restricted pursuant to various agreements.
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