Exhibit-C-Audit-3rd-3-pages

CALIFORNIA COUNCIL FORINTERIOR DESIGN CERTIFICATIONNOTES TO FINANCIAL STATEMENTSDecember 3 1,200lNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe California Council for Interior Design Certification (CCIDC) is a nonprofitmutual benefit corporation organized under the Nonprofit Mutual Benefit CorporationThe primary purpose of CCIDC is to promote theLaws of the State of California.general welfare of persons engaged in the profession of interior design and toadminister the process of and rules and regulations governing certification of interiordesigners as specified in the Business and Professions Code under the title “CertifiedInterior Designer” by the State of California.CCIDC’s policy is to prepare its financial statements on a modified cash basis thatincludes capitalizing the purchase of long-lived assets, recording of depreciation onlong-lived assets, recording liabilities for the acquisition of long-lived assets, payrollwithholdings, accruals of payroll taxes, and other selected accruals and receivables.Under this basis, revenue is generally recognized when collected rather than whenearned, and expenses are generally recognized when paid rather than when theobligations are incurred. Consequently, accounts receivable, accounts payable andaccrued expenses, other than those mentioned above, are not included in the financialstatements.The following is a summary of significant accounting policies:CCIDC considers cash in banks and certificates of ...