AND TELEVISION COMMISSION, INC.

For the Year Ended September 30, 2022

1. Organization and Summary of Significant Accounting Policies, continued

Net assets with donor restrictions – this classification includes those net assets whose use by the FTC has been limited by donors to either a later period of time, or after a specified date, or for a specified purpose. This classification also includes net assets that must be maintained by the FTC in perpetuity. Net assets with donor restrictions in perpetuity increase when the FTC receives contributions for which donor-imposed restrictions limiting the FTC’s use of an asset or its economic benefits neither expire with the passage of time nor can be removed by the FTC meeting certain requirements. As of September 30, 2022, FTC had no net assets with donor restrictions.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Accounting and Use of Non-Tourist Tax Funds

The FTC is required to maintain policies and procedures that make provision for one or more separate accounts for receipt of non-tourist tax revenues received by the FTC, such as membership dues, participation fees, and contributions, and for the payment from such accounts of expenses of the FTC that are not reimbursed pursuant to the Palm Beach County Contract (as further described in Note 4). The FTC shall incur and pay only such expenses as are lawful, ordinary, and necessary administrative and operating expenses incurred in connection with the marketing and promotion of Palm Beach County tourism.

Cash and Cash Equivalents

Cash and cash equivalents consist primarily of checking accounts at a federally chartered bank. For purposes of the Statement of Cash Flows, all highly liquid investments with a maturity of three months or less when purchased are also considered to be cash equivalents.

Reimbursement due from Palm Beach County

FTC records contract reimbursements due from Palm Beach County as allowable expenses are incurred, approved, and billed. All amounts are deemed fully collectible and no allowance is considered necessary.

Prepaid Expenses

As a part of its normal operations, the FTC pays certain expenses including insurance, postage, and professional memberships prior to the actual use of those assets. Such amounts are recorded as prepaid expenses in the Statement of Financial Position, and are recognized as expense as the benefit is realized. As of September 30, 2022, the FTC has a prepaid expenses balance of $7,951.