Golden Gate Regional Center Inc.

“The center serves as a representative payee for a few of its clients in residential care. In this fiduciary capacity, it receives social security benefits and other sources of income and makes payments on behalf of certain developmentally disabled clients who are deemed unable to administer the funds themselves. Client trust transactions are not considered revenue or expenses of the center. The cash that is received, net of interfund liabilities are reported as assets and a liability, net assets held for others, until it is distributed. As of september 30, 2015, all net assets held for others have been distributed and the center no longer serves as representative payee for any of its clients. Client fund receivable represent amounts advanced to clients while their applications for benefits are in process and is repaid when their benefits are received.”

“The center is a qualified organization exempt from federal income taxes under section 501(c)(3) of the internal revenue code (irc) and franchise taxes under section 23701d of the california revenue and taxation code. Accordingly, it is exempt from federal and california income taxes and is not liable for federal unemployment taxes. Management evaluated the center's tax positions and concluded that they maintained their tax exempt status and had taken no uncertain tax positions that would require adjustment to the financial statements. Therefore, no provision or liability for income taxes has been included in the financial statements. The tax returns of the center are subject to examination by federal and state taxing authorities. However, there are currently no examinations pending or in progress.”

“Furniture and equipment purchased with contract funds belong to the state of california. Furniture and equipment are stated at cost. As long as the center continues in operation, the state of california has granted the center a beneficial interest in the furniture and equipment. Accordingly, these assets are not depreciated.”