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Note 5. Deferred Costs

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The Commission receives Tenant Improvement Allowance (TIA) from its landlords. These allowances are used to cover the costs of building renovations, asset purchases, or rent expenses. The TIA is initially recorded as deferred costs on the balance sheet and is amortized with the deferred lease liability over the life of the lease.

The Commission received approximately $6.7 million and $6.6 million in TIA for the years ended September 30, 2011 and 2010, respectively. Of the total $13.3 million allowance received, $6.5 million was used to fund leasehold improvements, and an additional $500 thousand was used to cover rental payments in FY 2011. The remaining, unused balance of $6.3 million is reflected as deferred costs on the balance sheet.

DEFERRED COSTS (TIA)
For the Years Ended September 30, 2011 and 2010
Deferred Costs (TIA) 2011 2010
Beginning Balance $6,303,367 $–
TIA received 6,701,194 6,629,880
TIA used (6,749,688) (326,513)
BALANCE AS OF SEPTEMBER 30 $6,254,873 $6,303,367

 

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