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

NOTES TO FINANCIAL STATEMENTS (Continued)

For the Years Ended December 31, 2021 and 2020

NOTE 11 – CONCENTRATIONS

US GAAP require disclosure of concentrations in the volume of business transacted with a particular customer, supplier, lender, grantor, or contributor that meet certain criteria. The following concentration with particular contributors was present at the financial statement dates:

Service Contracts

Approximately 27 percent and 29 percent of the Council’s revenues for the years ended December 31, 2021 and 2020, respectively, were provided by Harris County, the Port of Houston Authority, and a limited number of local governmental entities. These contracts are renewable every one to three years at the option of the governments involved. If one or more entities decided not to renew the contract, the Council’s revenues and ability to operate effectively could decrease. Due to the limited area in which the Council operates, there are limited entities with which the Council could enter into agreements to replace any non-renewed contracts.

NOTE 12 – RECLASSIFICATION/RESTATEMENT OF NET ASSETS

Net assets were reclassified to correctly reflect ending balances. In addition, net assets were restated to correct prior year government contracts receivable.

Without Donor RestrictionsRestrictions With Donor

Net Assets

NOTE 12 – SUBSEQUENT EVENTS

The Council has evaluated subsequent events through August 5, 2022, the date which the financial statements were available to be issued.

The Council’s PPP loan in the amount of $124,700 was forgiven on February 2, 2022.