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5 HOMELESS ASSISTANCE CENTER, INC . Notes to Financial Statements June 30 , 2002 and 2001 (1) Organization The Homeless Assistance Center, Inc . (Organization) was incorporated in 1992 and is a tax-exempt organization under Internal Revenue Code Section 501 (c) (3 ) . The Organization was formed as the result of a non-funded mandate to establish community- based collaborative efforts on behalf of the homeless in each Department of Children and Families district in the State of Florida. (2) Summary of Significant Accounting Policies (a) Basis of Presentation The Organization follows Statement of Financial Accounting Standards (SFAS ) No . 117, Financial Statements of Not-for-Profit- Organizations, which requires that resources be classified for reporting purposes into three net asset categories . Those categories include temporarily restricted , permanently restricted, and unrestricted net assets as follows : Unrestricted — Represents the portion of expendable funds that are available for support of operations . Funds designated by the Board for specific purposes are also reported as unrestricted net assets since the Board has the ability to release any restrictions on these funds . Temporarily Restricted — Represents the portion of expendable funds that are restricted by the grantor or donor as to the way they may be utilized . The Organization primarily uses this classification to account for donations received for the capital expansion campaign, and the Temporary Financial Assistance for the Homeless Program . Permanently Restricted — Represents funds that must be maintained by the Organization in perpetuity. During 2002 and 2001 , the Organization had no funds required to be accounted for under this classification . (b) Revenue Recognition All contributions/donations are considered available for unrestricted use unless specifically restricted by the donor. Contributions/donations are considered temporarily restricted if a donor imposes a restriction that may be satisfied by the passage of time or the actions of the Organization . A permanently restricted contribution/donation stipulates that the contribution/donation be maintained permanently but may allow the organization- to use all or part of the income derived from the underlying asset for unrestricted purposes . When a donor restriction expires , that is , when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions . (Continued)