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CABARRUS COUNTY TO URISM A UTHORITY <br />d1bla CABA RR US CO UNTY CONVENTION AND VISITORS BUREAU <br />NOTES TO FINANCIAL STATEMENTS <br />June 30, 2011 and 2010 <br />NOTE 2 - <br />SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued <br />Property and Equipment <br />It is the Organization's policy to capitalize property and equipment over $1,000. Lesser <br />amounts are expensed. Purchased property and equipment are stated at cost. Donations of <br />property and equipment are recorded as support at their estimated fair value as established <br />by the donor. Repair and maintenance items are charged to expense as incurred. Major <br />renewals and betterments which significantly increase the asset's useful life are capitalized. <br />Depreciation is computed using the straight -line method over the following estimated <br />useful lives: <br />Computer Equipment <br />Vehicles <br />Leasehold Improvements <br />Office Equipment <br />NOTE 3 - <br />NOTE 4 - <br />- Continued- <br />5 years <br />5 years <br />15 years <br />5 years <br />Depreciation expense for the years ended June 30, 2011 and 2010 was $17,545 and <br />$14,329, respectively. <br />Subsequent Events <br />Management has evaluated subsequent events through September 14, 2011, the date the <br />financial statements were available to be issued. <br />Sales Tax <br />The State of North Carolina imposes sales tax on all of the Organization's sales to <br />nonexempt customers. The Organization collects that sales tax from customers and remits <br />the entire amount to the State. The Organization's sales tax is immaterial to the financial <br />statement. <br />CONCENTRATIONS <br />Approximately 98% of the Organization's funding and accounts receivable for the year <br />ended June 30, 2011 and 2010 comes from Room Occupancy Tax collected by Cabarrus <br />County, North Carolina and disbursed to the Organization. <br />CONCENTRATION OF CASH <br />The Organization places its cash and cash equivalents on deposit with financial <br />institutions in the United States. The Federal Deposit Insurance Corporation (FDIC) <br />covers $250,000 for substantially all depository accounts and temporarily provides <br />unlimited coverage through December 31, 2012 for certain qualifying and participating <br />non - interest bearing transaction accounts. During the year, the Organization from time to <br />time may have had amounts on deposit in excess of the insured limits. At June 30, 2011 <br />and 2010, the Organization's uninsured cash balances totaled $260,766 and $366,182, <br />respectively. <br />I1 <br />W <br />Attachment number 2 <br />Page 376 <br />