Leave No Veteran Behind, Inc. Notes to the Financial Statements (cont’d)

Revenue from Contracts with Customers

– The Organization recognizes revenue in accordance with ASU 2014-09, Revenue from Contracts with Customers (ASC 606), which provides a five-step model for recognizing revenue from contracts with customers as follows:

• Identify the contract with the customer

• Identify the performance obligation

• Determine the transaction price

• Allocate the transaction price to the performance obligations in the contract

• Recognize revenue when or as performance obligations are satisfied

The Organization’s revenues that are subject to ASC 606 are primarily Contract Service revenues. Contract service revenue results primarily from the Chicago Public School Safe Passage Program and the Chicago Cook Workforce Partnership Contact Tracing Program. Revenue for these programs are specified in the contract, and contain a single delivery element and revenue is recognized at a single point in time when the service is provided at which time payment is due. Contract service revenue is typically received at the time of the related performance obligation(s). Revenue earned at a point in time for the year ended December 31, 2021, was $1,522,998 ($1,064,193 for the year ended December 31, 2020).

Corporate, Individual and Foundation contributions are all considered to be contribution revenue and are accounted for under ASC Topic 958-605 and are not subject to ASC 606. Likewise, investment income is scoped out of ASC 606.

The timing of revenue recognition, billings and cash collections over these contract fees results in billed accounts receivable on the statement of financial position. Fees are earned when the contract service is provided, at which time the customer is billed. The Organization has elected the practical expedient that allows it not to recognize a significant financing component as it anticipates payments will be made typically within 30-60 days. Accounts receivable at December 31, for the last three years are as follows: