THE NHP FOUNDATION AND ITS AFFILIATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED YEARS ENDED DECEMBER 31, 2018 and 2017
NOTE 3 - AVAILABILITY AND LIQUIDITY Financial assets available for general expenditure, that is, without donor or other restrictions limiting their use, within one year of the statement of financial position date, comprise the following:
Financial assets at year-end Cash Investments - unrestricted
$
37,293,851
77,608
Accounts receivable
1,677,733
Grants receivable
9,120
Total financial assets available at year-end (available over the next 12 months to meet general expenditures)
$
39,058,312
The Organization receives revenue from rent, developer fees, other miscellaneous sources, as well as contributions without donor restrictions, all of which is available to meet general expenses during the next 12 months. Additionally, in the normal course of business the Organization will make expenditures related to the acquisition and rehabilitation of properties. At any point in time, the Organization has a balance of these expenses shown as deferred development costs on the accompanying statement of financial position. These expenditures are reimbursed to the Organization from funding for the acquisition and rehabilitation of our properties. The total of these expenditures at December 31, 2018 was $4,949,521 and is included in the consolidated statement of financial position as deferred development costs. Such funds, when reimbursed to the Organization, are then available to be used to acquire new properties and cover the up-front costs of new rehabilitation efforts. NOTE 4 - 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 2019 through 2035. 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 5 - INVESTMENTS At December 31, 2018 and 2017, investments held in brokerage investment accounts consists of certificates of deposits in the amount of $226,494 and $841,549, 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, 2018 and 2017, $148,886 and $467,970, respectively, is restricted pursuant to various agreements.
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