Southeast Harris County Economic Development Council, Inc. dba Economic Alliance Houston Port Region

Notes To Financial Statements

For the Years Ended December 31, 2021 and 2020

NOTE 1 – ORGANIZATION

Southeast Harris County Economic Development Council, Inc. (the “Council”) is a Texas not-for-profit organization chartered on November 1, 1985. Its purpose is to promote the common interest of the people of southeast Harris County, Texas and surrounding areas in Harris and Galveston Counties, Texas, by compiling information relative to the resources available to prospective commercial and industrial type businesses; to identify those types of commercial and industrial businesses that could best utilize the available resources of the area in harmony with the existing environment; and to encourage such businesses to establish and operate commercial and manufacturing facilities and other industrial activity in the southeast Harris County area designed to provide additional employment, expand commerce, increase the economic strength and stability of the community, and improve all types of business conditions. The Council operates as the Economic Alliance Houston Port Region and is designed to promote knowledge and understanding of the communities to prospective merchants and visitors.

Revenues are derived primarily through contracts with area governments, membership dues, and fundraising events. Expenses that are directly associated with a particular activity are charged to that activity. Other expenses are allocated to the various activities based on methods approved by management.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The financial statements have been prepared on the accrual basis of accounting in accordance with generally accepted accounting principles.

Financial Statement Presentation

The financial statements of the Council have been prepared in accordance with U.S. generally accepted accounting principles (US GAAP), which requires the Council to report information regarding its financial position and activities according to the following net asset classifications:

Net assets without donor restrictions: Net assets that are not subject to donor-imposed restrictions and may be expended for any purpose in performing the primary objectives of the organization. These net assets may be used at the discretion of the Council’s management and board of directors.

Net assets with donor restrictions: Net assets subject to stipulations imposed by donors and grantors. Some donor restrictions are temporary in nature; those restrictions will be met by actions of the Council or by the passage of time. Other donor restrictions are perpetual in nature, whereby the donor has stipulated the funds be maintained in perpetuity.

Donor restricted contributions are reported as increases in net assets with donor restrictions. When a restriction expires, net assets are reclassified from net assets with donor restrictions to net assets without donor restrictions in the Statements of Activities.