Headwaters Resource Conservation and Development Area Inc.

“A (pdf) electronic copy of form 990 will be e-mailed to board members for review and discussion before the return is filed.”

“Each board member signs a copy at the beginning of each year.”

“When establishing the salary of the executive director's office peer agencies will be consulted in order to determine that the salary is not considered excessive.”

“The financial statements, audit report, all supporting documentation, and governing documents are available in print and copies are available upon request.”

“The audit report, form 990, all supporting documentation and organizational documents are kept at the hrdc office. All documents are available to the public upon request.”

“There have been no changes to the process from the prior year.”

“On january 1, 2023, the organization adopted the provisions of fasb asu 2016-13, financial instruments-credit losses (topic 326): measurement of credit losses on financial instruments, and all related amendments thereto. This asu replaced the incurred loss method of measuring financial assets with an expected loss method, which is referred to as the current expected credit loss (cecl) method. Cecl requires an estimate of credit losses over the life of the financial asset using historical experience, current conditions, and reasonable and supportable forecasts. For the organization, the asu applies to the measurement of its accounts receivable and loans receivable. Account receivable is now analyzed using historical loss data combined with current conditions and reasonable forecasts of future losses to determine estimated credit losses. Loan receivables are collateralized by personal guarantees, personal property, real estate, or a combination of all three. Calculating the allowance for credit losses under the cecl model involves evaluating the credit worthiness of the guarantor and the realizable value of the personal property or real estate if liquidated. The organization adopted the new standard using the modified retrospective approach. The cumulative effect of initially applying the cecl measurement is reported by restating the retained earnings at january 1. The transition adjustment of the adoption of cecl decreased the allowance for credit losses on loan receivables and increased the cumulative excess of revenues over expenses by $41,498.”