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CABARR US CO UNTY TO URISM A UTHORITY <br />&'hla CABARRUS COUNTY CONVENTIONAND VISITORS BUREAU <br />NOTES TO FINANCIAL STATEMENTS <br />June 30, 2015 and 2014 <br />NOTE 2 - 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 5 years <br />Vehicles 5 years <br />Leasehold Improvements 15 years <br />Office Equipment 5 years <br />Other fixed assets 5 years <br />Depreciation expense for the years ended June 30, 2015 and 2014 was $57,681 and <br />$47,680, respectively. <br />Subsequent Events <br />Management has evaluated subsequent events through September 14, 2015, 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. <br />NOTE 3 - CONCENTRATIONS <br />Approximately 99% of the Organization's funding and accounts receivable for the year <br />ended June 30, 2015 and 2014 comes from Room Occupancy Tax collected by Cabarrus <br />County, North Carolina and disbursed to the Organization. <br />NOTE 4 - 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. During the year, the <br />Organization from time to time may have had amounts on deposit in excess of the insured <br />limits. At June 30, 2015 and 2014, all deposits of the Organization in excess of the insured <br />limits were collateralized. <br />- Contincted- <br />12 Attachment number 1 \n <br />1 -1 Page 114 <br />