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COMMUNITY CHILD CARE RESOURCES , INC . <br /> NOTES TO FINANCIAL STATEMENTS (Cont ' d . ) <br /> Year Ended June 30 , 2002 <br /> Note 1 - Summary of Significant Accounting Policies ( Cont'd . ) <br /> Income Taxes <br /> The Organization is exempt from income taxes under Section 501 (c) ( 3 ) of the Internal <br /> Revenue Code and is not a private foundation . <br /> Estimates <br /> The preparation of financial statements in conformity with U . S . generally accepted <br /> accounting principles requires management to make estimates and assumptions that affect certain <br /> reported amounts and disclosures . Accordingly, actual results could differ from those estimates . <br /> Functional Allocation of Expenses <br /> The Organization allocates its expenses on a functional basis among its various <br /> programs and support services . Expenses that can be identified with a specific program and support <br /> service are allocated directly according to their natural expenditure classification . <br /> Donated Materials and Services <br /> Donated materials and equipment are reflected as contributions at their estimated <br /> values at date of receipt . Contributions of services are recognized if the services received ( a) create <br /> or enhance nonfinancial assets or (b) require specialized skills that are provided by individuals <br /> possessing those skills and would typically need to be purchased if not provided by donation . No <br /> such services were received during the year ended June 30 , 2002 . <br /> Revenue Recognition <br /> The Organization acts as an intermediary for child care services provided through the <br /> Agricultural and Labor Program , Inc . (ALPI) . Funds received from ALPI are not recognized as <br /> revenue and related disbursements to child care providers are not recognized as expenses in the <br /> financial statements because the Organization has no discretion over use of the funds . During the <br /> year ended June 30 , 2002 , the Organization received 583 , 766 from ALPI . <br /> Note 2 - Concentration of Credit Risk <br /> Financial instruments that potentially subject the Organization to concentrations of credit risk <br /> consist of cash deposits in excess of insured limits . At June 30 , 2002 , the Organization <br /> had <br /> approximately $ 54 , 000 at a banking institution in excess of Federal Deposit Insurance Corporation <br /> (FDIC ) insured limits . <br /> - 6 - <br />