"The mission of Habitat for Humanity in the Roanoke Valley, Inc. is to improve the lives of God's families in need by providing affordable quality homes in partnership with homeowners and volunteers for the enhancement of our community."
- Since 1986, we have completed 153 houses.
- Habitat has served 162 families and 601 individuals; 238 adults and 363 children.
- Each year, Habitat for Humanity in the Roanoke Valley homeowners pays over $146,000 in taxes to Roanoke City.
- Our local affiliate tithes so that homes can be built overseas for foreign families in need.
Download: 2007 Financial Statement
NOTES TO FINANCIAL STATEMENTS
CREATION AND PURPOSE OF ORGANIZATION:
Habitat for Humanity in the Roanoke Valley, Inc. (the Organization) was formed as a nonprofit Christian housing ministry for the specific purpose of enabling low income families to obtain modest and decent housing in the Roanoke Valley. To that end, houses are built keeping costs as low as possible by using volunteer labor and donated land and materials whenever possible. Completed homes are then generally sold at cost plus a value for donated professional services, skilled labor and materials to selected families. A small down payment is required, and the organization finances the remainder of the sale price with non-interest bearing loans to be repaid over a 15-25 year period. Loan repayments are reinvested in other home building projects. The Organization retains a first lien on the properties sold.
Habitat also operates a store where donated new construction and home renovation products are sold to the public at deeply discounted prices. All proceeds from the store are directed towards Habitat s affordable housing program.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Basis of Presentation - The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles. Net assets and revenues, expenses, gains, and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets of the Organization and changes therein are classified and reported as follows:
Unrestricted - All resources over which the governing board has discretionary control. The governing board of the Organization may elect to designate such resources for specific purposes. This designation may be removed at the board s discretion.
Temporarily Restricted - Resources accumulated through donations or grants for specific operating or capital purposes. Such resources will become unrestricted when the requirements of the donor or grantee have been satisfied through expenditure for the specified purpose or program or through the passage of time.
Permanently Restricted - Endowment resources accumulated through donations or grants that are subject to the restriction in perpetuity that the principal be invested. Investment income may be either an unrestricted or temporarily restricted resource when earned, determined according to the gift instruments.
The Organization has no temporarily restricted or permanently restricted net assets at June 30, 2006 and 2005.
Use of Estimates -The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Provision for Income Taxes - The Organization is exempt from federal income tax under the provisions of Section 501(c) (3) of the Internal Revenue Code. Accordingly, no income tax provision has been recorded.
Mortgage Receivables - Because the mortgages provide for no interest, the balance sheet amounts for mortgage receivables have been discounted using an imputed rate of interest determined as of the origination date. Such discounts are amortized over the term of the related mortgage.
The Organization uses the direct write-off method in providing for bad debts. Receivables are stated at the amount management expects to collect from balances at year end. Management estimates that no material losses will be sustained relating to the collectibility of mortgages. As such, no allowance for loan losses or adjustment to the balance of mortgages receivable has been recorded, based on current facts and circumstances.
Construction in Progress - Construction in progress is valued at cost using the specific identification method.
Property and Equipment - Property and equipment is recorded at cost or, if donated, at estimated fair value at date of donation. Purchased assets, with a cost exceeding $1,500 are generally capitalized. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets.
Donated Materials and Land - If significant in amount, donated materials are recorded at fair market value where objectively measurable. Donated land is recorded at locality assessed value for property tax purposes which approximates fair market value.
Donated Materials and Land - The Organization receives significant amounts of volunteer labor in building its houses. However, the Organization does not record the value of these services since it is not objectively measurable.
Expense Allocation - The costs of providing various programs and other activities have been summarized on a functional basis in the Statement of Activities and in the Statement of Functional Expenses. Accordingly, certain costs have been allocated among the programs and supporting services benefited.
Cash Equivalents - For the purposes of the statement of cash flows, the Organization considers all highly liquid investments with an initial maturity of three months or less to be cash equivalents.
CASH AND CASH EQUIVALENTS:
The Organization maintains its checking accounts with a financial institution that insures cash balances up to $100,000 through the Federal Deposit Insurance Corporation