Budget Construction - Laserfiche WebLink

Home Browse Search

BUDGET CONSTRUCTION CO., INC. AND BUDGET HOLDINGS, LLC NOTES TO THE COMBINED FINANCIAL STATEMENTS Years Ended December 31, 2008 and 2007 NOTE 18 - Off-balance sheet arrangements and related parties: F ASB Interpretation 46 (R), "Consolidation of Variable Interest Entities", also requires disclosures about V ariable Interest Entities that the variable interest holder is not required to consolidate but in which it has significant variable interest. At December 31, 2008, the stockholders of The Company held the following investments that, for purposes of FIN 46 (R), were evaluated and determined that the investments do not require combination in The Company's financial statements: Companies City Engineering, Inc. Purpose Payroll Staff Leasing Book Value $ I ,000 Market Value $ I ,000 NOTE 19 - Surety indemnity agreement: In the ordinary course of business, The Company may obtain surety bonds, that are provided to certain customers to comply with contract provisions and performance under the contracts. In the event of non-performance by The Company under a contract resulting in a paid loss by the surety, and based upon the terms and conditions of the indemnity agreement signed by The Company and the individual indemnitors, The Company and the individual indemnitors may be liable to the surety for those amounts paid on behalf of The Company. NOTE 20 - Backlog: The following schedule summarizes changes in backlog on contracts during the year ended December 31,2008. Backlog represents the amount of revenue The Company expects to realize from uncompleted contracts in progress at year end and from contractual agreements on which work has not yet begun: Backlog balance at December 31, 2007: $ 14,375,624 New contracts during the year ended December 31, 2008: Contract revenues earned during the year ended December 31,2008: 24,129,721 38,505,345 (21,190,909) Backlog balance at December 31, 2008: $ 17,314,436 The Company is generally required to furnish performance and payment surety bonds to contract owners. During the year ended December 31,2008, certain surety company issued $17,617,299 of new surety bonds to contract owners. The bonds are secured by receivables from bonded contracts and a general guarantee from The Company. Also, the surety company required a personal guarantee from The Company's stockholders. At December 31, 2008, surety bonds for contracts totaling $32,992,890 had been issued with a current backlog amount of$16,421,759. As of January 30, 2009, The Company entered into various construction and engineering contracts with projected revenues of $3,663,547. 17 Benitez & Company. CPA's