UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE
ACT OF 1934
For The Quarterly Period Ended September 30, 2002
Commission File Number 0-19022
Gateway Tax Credit Fund II Ltd.
(Exact name of Registrant as specified in its charter)
Florida 65-0142704
(State or other jurisdiction of ( I.R.S. Employer No.)
incorporation or organization)
880 Carillon Parkway, St. Petersburg, Florida 33716
(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (727)
567-1000
Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
YES X NO
Number of Units
Title of Each Class September 30, 2002
Beneficial Assignee Certificates:
$1,000 per certificate 37,228
DOCUMENTS INCORPORATED BY REFERENCE
Parts I and II, 2001 Form 10-K, filed with the
Securities and Exchange Commission on July 11, 2002
Parts III and IV - Form S-11 Registration Statement
and all amendments and supplements thereto
File No. 33-31821
PART I - Financial Information
Item 1. Financial Statements
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
SERIES 2 |
September 30, |
March 31, |
|
ASSETS |
|
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
SERIES 3 |
September 30, |
March 31, |
|
ASSETS |
|
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
SERIES 4 |
September 30, |
March 31, |
|
ASSETS |
|
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
SERIES 5 |
September 30, |
March 31, |
|
ASSETS |
|
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
SERIES 6 |
September 30, |
March 31, |
|
ASSETS |
|
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
TOTAL SERIES 2 - 6 |
September 30, |
March 31, |
|
ASSETS |
|
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
|
SERIES 2 |
2002 |
2001 |
|
Revenues: |
|
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
|
SERIES 3 |
2002 |
2001 |
|
Revenues: |
|
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
|
SERIES 4 |
2002 |
2001 |
|
Revenues: |
|
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
|
SERIES 5 |
2002 |
2001 |
|
Revenues: Equity in Losses of Project Partnerships Net Loss Allocation of Net Loss: Assignees General Partners Net Loss Per Beneficial Assignee Certificate Number of Beneficial Assignee Certificates Outstanding |
|
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
|
SERIES 6 |
2002 |
2001 ---- |
|
Revenues: |
|
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
|
TOTAL SERIES 2 - 6 |
2002 |
2001 |
|
Revenues: |
|
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
|
SERIES 2 |
2002 |
2001 |
|
Revenues: |
|
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
|
SERIES 3 |
2002 |
2001 |
|
Revenues: Interest Income Expenses: Asset Management Fee-General Partner General and Administrative: General Partner Other Amortization Total Expenses Loss Before Equity in Losses of Project Partnerships Equity in Losses of Project Partnerships Net Loss Allocation of Net Loss: Assignees General Partners
Net Loss Per Beneficial Assignee Certificate Number of Beneficial Assignee Certificates Outstanding |
$ 8,559
11,717 6,280 560 (41,453) (5,946)
(474) 5,456 |
$ 12,242
6,336 5,871 560 (32,077) (5,575)
(377) 5,456 |
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
|
SERIES 4 |
2002 |
2001 |
|
Revenues: Interest Income Expenses: Asset Management Fee-General Partner General and Administrative: General Partner Other Amortization Total Expenses Loss Before Equity in Losses of Project Partnerships Equity in Losses of Project Partnerships Net Loss Allocation of Net Loss: Assignees General Partners
Net Loss Per Beneficial Assignee Certificate
|
$ 10,970
14,773 7,764 1,976 (64,557)
(1,168) 6,915 |
$ 15,972
7,988 7,180 2,644 (38,640)
(793) 6,915 |
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
|
SERIES 5 |
2002 |
2001 |
|
Revenues: Interest Income Expenses: Asset Management Fee-General Partner General and Administrative: General Partner Other Amortization Total Expenses Loss Before Equity in Losses of Project Partnerships Equity in Losses of Project Partnerships Net Loss Allocation of Net Loss: Assignees General Partners
Net Loss Per Beneficial Assignee Certificate
|
$ 13,921
18,339 9,155 2,556 (64,007) (44,545) $ (107,466)
|
$ 20,549
9,917 8,524 2,556 (48,452) (64,733) $ (112,053)
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
|
SERIES 6 |
2002 |
2001 |
|
Revenues: Interest Income Expenses: Asset Management Fee-General Partner General and Administrative: General Partner Other Amortization Total Expenses Loss Before Equity in Losses of Project Partnerships Equity in Losses of Project Partnerships Net Loss Allocation of Net Loss: Assignees General Partners
Net Loss Per Beneficial Assignee Certificate Number of Beneficial Assignee Certificates Outstanding |
$ 13,558
19,358 10,268 4,726 (73,670) (92,689)
$ (16.30) 10,105 |
$ 20,042
10,468 9,514 6,658 (59,480) (126,579)
$ (18.23) 10,105 |
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
|
TOTAL SERIES 2 - 6 |
2002 |
2001 |
|
Revenues: Interest Income Expenses: Asset Management Fee-General Partner General and Administrative: General Partner Other Amortization Total Expenses Loss Before Equity in Losses of Project Partnerships Equity in Losses of Project Partnerships Net Loss Allocation of Net Loss: Assignees General Partners |
$ 56,683
75,394 39,966 10,166 (273,890) (251,667)
(5,256) |
$ 82,933
40,769 36,613 13,318 (213,215) (236,460)
(4,498) |
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
|
SERIES 2 |
|
General |
|
|
Balance at March 31, 2001 Net Loss
Balance at September 30, 2001
Balance at March 31, 2002 Net Loss
Balance at September 30, 2002 |
$ 243,647 (33,134)
(85,545)
|
$ (51,882) (335)
(864)
|
$ 191,765 (33,469)
(86,409)
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
|
SERIES 3 |
|
General |
|
|
Balance at March 31, 2001 Net Loss
Balance at September 30, 2001
Balance at March 31, 2002 Net Loss
Balance at September 30, 2002 |
$ 213,725 (37,275)
(46,925)
|
$ (46,140) (377)
(474)
|
$ 167,585 (37,652)
(47,399)
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
|
SERIES 4 |
|
General |
|
|
Balance at March 31, 2001 Net Loss
Balance at September 30, 2001
Balance at March 31, 2002 Net Loss
Balance at September 30, 2002 |
$ 424,290 (78,517) $ 345,773
(115,670)
|
$ (56,981) (793) $ (57,774)
(1,168)
|
$ 367,309 (79,310) 87,999
(116,838)
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
|
SERIES 5 |
|
General |
|
|
Balance at March 31, 2001 Net Loss
Balance at September 30, 2001
Balance at March 31, 2002 Net Loss
Balance at September 30, 2002 |
$1,126,154 (112,053)
(107,466)
|
$ (65,012) (1,132)
(1,086)
|
$1,061,142 (113,185)
(108,552)
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
|
SERIES 6 |
|
General |
|
|
Balance at March 31, 2001 Net Loss
Balance at September 30, 2001
Balance at March 31, 2002 Net Loss
Balance at September 30, 2002 |
$1,875,009 (184,198)
(164,695)
|
$ (70,682) (1,861)
(1,664)
|
$1,804,327 (186,059)
(166,359)
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
|
TOTAL SERIES 2 - 6 |
|
General |
|
|
Balance at March 31, 2001 Net Loss
Balance at September 30, 2001
Balance at March 31, 2002 Net Loss
Balance at September 30, 2002 |
$3,882,825 (445,177)
(520,301) $2,332,266 |
$(290,697) (4,498)
(5,256) $(306,361) |
$3,592,128 (449,675)
(525,557) $2,025,905 |
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
|
SERIES 2 |
2002 |
2001 |
|
Cash Flows from Operating Activities: |
|
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
|
SERIES 3 |
2002 |
2001 |
|
Cash Flows from Operating Activities: |
|
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
|
SERIES 4 |
2002 |
2001 |
|
Cash Flows from Operating Activities: |
|
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
|
SERIES 5 |
2002 |
2001 |
|
Cash Flows from Operating Activities: Cash Flows from Investing Activities: Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year |
|
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
|
SERIES 6 |
2002 |
2001 |
|
Cash Flows from Operating Activities: |
|
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
|
TOTAL SERIES 2 - 6 |
2002 |
2001 |
|
Cash Flows from Operating Activities: |
|
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
SEPTEMBER 30, 2002
NOTE 1 - ORGANIZATION:
Gateway Tax Credit Fund II Ltd. ("Gateway"), a Florida Limited Partnership, was formed September 12, 1989, under the laws of Florida. Operations commenced on September 14, 1990 for Series 2, September 28, 1990 for Series 3, February 1, 1991 for Series 4, July 1, 1991 for Series 5 and January 1, 1992 for Series 6. Gateway has invested, as a limited partner, in other limited partnerships ("Project Partnerships") each of which owns and operates one or more apartment complexes expected to qualify for Low-Income Housing Tax Credits. Gateway will terminate on December 31, 2040, or sooner, in accordance with the terms of the Limited Partnership Agreement. As of September 30, 2002, Gateway had received capital contributions of $1,000 from the General Partners and $37,228,000 from Beneficial Assignee Certificate investors (the "Assignees"). The fiscal year of Gateway for reporting purposes ends on March 31.
Pursuant to the Securities Act of 1933, Gateway filed a Form S-11 Registration Statement with the Securities and Exchange Commission, effective September 12, 1989, which covered the offering (the "Public Offering") of Gateway's Beneficial Assignee Certificates ("BACs") representing assignments of units for the beneficial interest of the limited partnership interest of the Assignor Limited Partner. The Assignor Limited Partner was formed for the purpose of serving in that capacity for the Fund and will not engage in any other business.
Raymond James Partners, Inc. and Raymond James Tax Credit Funds, Inc., wholly-owned subsidiaries of Raymond James Financial, Inc., are the General Partner and the Managing General Partner, respectively. The Managing General Partner manages and controls the business of Gateway.
Gateway offered BACs in five series. BACs in the amounts of $6,136,000, $5,456,000, $6,915,000, $8,616,000 and $10,105,000 for Series 2, 3, 4, 5 and 6, respectively had been issued as of March 31, 1997. Each Series is treated as a separate partnership, investing in a separate and distinct pool of Project Partnerships. Net proceeds from each Series are used to acquire Project Partnerships which are specifically allocated to such Series. Income or loss and all tax items from the Project Partnerships acquired by each Series are specifically allocated among the Assignees of such Series.
Operating profits and losses, cash distributions from operations and tax credits are allocated 99% to the Assignees and 1% to the General Partners. Profit or loss and cash distributions from sales of properties will be allocated as formulated in the Limited Partnership Agreement.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:
Basis of Accounting
Gateway utilizes the accrual basis of accounting whereby revenues are recognized when earned and expenses are recognized when obligations are incurred.
Gateway accounts for its investments as the sole limited partner in Project Partnerships ("Investments in Project Partnerships") using the equity method of accounting, because management believes that Gateway does not have a majority
control of the major operating and financial policies of the Project Partnerships in which it invests, and reports the equity in losses of the Project Partnerships on a 3-month lag in the Statements of Operations. Under the equity method, the Investments in Project Partnerships initially include:
1) Gateway's capital contribution,
2) Acquisition fees paid to the General Partner for services rendered in selecting properties for acquisition, and
3) Acquisition expenses including legal fees, travel and other miscellaneous costs relating to acquiring properties.
Quarterly the Investments in Project Partnerships are increased or decreased as follows:
1) Increased for equity in income or decreased for equity in losses of the Project Partnerships,
2) Decreased for cash distributions received from the Project Partnerships, and
3) Decreased for the amortization of the acquisition fees and expenses.
Amortization is calculated on a straight-line basis over 35 years, as this is the average estimated useful life of the underlying assets. The amortization is shown as amortization expense on the Statements of Operations.
Pursuant to the limited partnership agreements for the Project Partnerships, cash losses generated by the Project Partnerships are allocated to the general partners of those partnerships. In subsequent years, cash profits, if any, are first allocated to the general partners to the extent of the allocation of prior years' cash losses.
Since Gateway invests as a limited partner, and therefore is not obligated to fund losses or make additional capital contributions, it does not recognize losses from individual Project Partnerships to the extent that these losses would reduce the investment in those Project Partnerships below zero. The suspended losses will be used to offset future income from the individual Project Partnerships.
Gateway reviews its investments in Project Partnerships to determine if there has been any permanent impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. If the sum of the expected future cash flows is less than the carrying amount of the investment, Gateway recognizes an impairment loss. No impairment loss has been recognized in the accompanying financial statements.
Gateway, as a limited partner in the Project Partnerships, is subject to risks inherent in the ownership of property which are beyond its control, such as fluctuations in occupancy rates and operating expenses, variations in rental schedules, proper maintenance and continued eligibility of tax credits. If the cost of operating a property exceeds the rental income earned thereon, Gateway may deem it in its best interest to voluntarily provide funds in order to protect its investment.
Cash and Cash Equivalents
It is Gateway's policy to include short-term investments with an original maturity of three months or less in Cash and Cash Equivalents. Short-term investments are comprised of money market mutual funds.
Concentration of Credit Risk
Financial instruments which potentially subject Gateway to concentrations of credit risk consist of cash investments in a money market mutual fund that is a wholly-owned subsidiary of Raymond James Financial, Inc.
Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally accepted accounting principles requires the use of estimates that affect certain reported amounts and disclosures. These estimates are based on management's knowledge and experience. Accordingly, actual results could differ from these estimates.
Investment in Securities
Effective April 1, 1995, Gateway adopted Statement of Financial Accounting Standards No. 115, Accounting for Certain Investments in Debt and Equity Securities ("FAS 115"). Under FAS 115, Gateway is required to categorize its debt securities as held-to-maturity, available-for-sale or trading securities, dependent upon Gateway's intent in holding the securities. Gateway's intent is to hold all of its debt securities (U. S. Government Security Strips) until maturity and to use these reserves to fund Gateway's ongoing operations. Interest income is recognized ratably on the U. S. Government Strips using the effective yield to maturity.
Offering and Commission Costs
Offering and commission costs were charged against Assignees' Equity upon the admission of Limited Partners.
Income Taxes
No provision for income taxes has been made in these financial statements, as income taxes are a liability of the partners rather than of Gateway.
Reclassifications
For comparability, the 2001 figures have been reclassified, where appropriate, to conform with the financial statement presentation used in 2002.
Basis of Preparation
The unaudited financial statements presented herein have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by generally accepted accounting principles. These statements should be read in conjunction with the financial statements and notes thereto included with the Partnership's Form 10-K for the year ended March 31, 2002. In the opinion of management these financial statements include adjustments, consisting only of normal recurring adjustments, necessary to fairly summarize the Partnership's financial position and results of operations. The results of operations for the periods may not be indicative of the results to be expected for the year.
NOTE 3 - INVESTMENT IN SECURITIES:
The September 30, 2002 Balance Sheet includes Investment in Securities consisting of U.S. Government Security Strips which represents their cost, plus accreted interest income of $121,125 for Series 2, $107,738 for Series 3, $136,493 for Series 4, $170,121 for Series 5 and $162,598 for Series 6. For convenience, the Investment in Securities are commonly held in a brokerage account with Raymond James and Associates, Inc. A separate accounting is maintained for each series' share of the investments.
|
|
|
|
|
|
Series 2 |
$ 239,055 |
$ 213,869 |
$ 25,186 |
|
Series 3 |
212,566 |
190,232 |
22,334 |
|
Series 4 |
269,405 |
241,005 |
28,400 |
|
Series 5 |
335,675 |
300,382 |
35,293 |
|
Series 6 |
354,117 |
315,276 |
38,841 |
As of September 30, 2002, the cost and accreted interest of debt securities by contractual maturities is as follows:
|
Series 2 |
Series 3 |
Series 4 |
|
|
Due within 1 year |
$ 56,435 |
$ 50,198 |
$ 63,596 |
|
After 1 year through 5 years |
157,434 |
140,034 |
177,409 |
|
-------- |
-------- |
-------- |
|
|
Total Amount Carried on Balance Sheet |
$213,869 |
$190,232 |
$241,005 |
|
Series 5 |
Series 6 |
Total |
|
|
Due within 1 year |
$ 79,264 |
$ 64,812 |
$ 314,305 |
|
After 1 year through 5 years |
221,118 |
250,464 |
946,459 |
|
-------- |
-------- |
--------- |
|
|
Total Amount Carried on Balance Sheet |
$300,382 |
$315,276 |
$1,260,764 |
NOTE 4 - RELATED PARTY TRANSACTIONS:
2002 2001
----- -----
Series 2 $ 34,100 $ 34,180
Series 3 31,455 31,552
Series 4 38,738 38,830
Series 5 47,878 48,004
Series 6 52,876 52,882
--------- ---------
Total $205,047
$205,448
========= =========
General and Administrative Expenses - The Managing General Partner is reimbursed for general and administrative expenses of Gateway on an accountable basis. This expense is included in the Statements of Operations.
Series 2 $ 11,207 $ 6,060
Series 3 11,717 6,336
Series 4 14,773 7,988
Series 5 18,339 9,917
Series 6 19,358 10,468
--------- --------
Total $ 75,394 $ 40,769
========= ========
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:
As of September 30, 2002, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 148 Project Partnerships for the Series which own and operate government assisted multi-family housing
complexes (Series 2 - 22, Series 3 - 23, Series 4 - 29, Series 5 - 36 and Series
6 - 38).
Cash flows from operations are allocated according to each partnership agreement.
Upon dissolution proceeds will be distributed according to each partnership agreement.
The following is a summary of Investments in Project Partnerships as of:
|
SERIES 2 |
SEPTEMBER 30, |
MARCH 31, |
|
Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships Accumulated amortization of acquisition fees and expenses |
$ 4,524,678
(86,260) (279,162) 390,838 (82,710) |
$ 4,524,678
(81,202) (230,175)
390,838 (82,362) |
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of
$3,217,443 for the period ended September 30, 2002 and cumulative suspended losses of $2,940,699 for the year ended March 31, 2002 are not included.
The following is a summary of Investments in Project Partnerships as of:
|
SERIES 3 |
SEPTEMBER 30, |
MARCH 31, |
|
Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships |
$ 3,888,713
(169,149)
491,746 (82,092) |
$ 3,888,713
(161,490) 491,746 (81,532) |
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $4,039,262 for the period ended September 30, 2002 and cumulative suspended losses of $3,840,222 for the year ended March 31, 2002 are not included.
The following is a summary of Investments in Project Partnerships as of:
|
SERIES 4 |
SEPTEMBER 30, |
MARCH 31, |
|
Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships |
$ 4,952,519 (5,247,044)
562,967 (121,832) |
$ 4,952,519 (5,182,485)
(119,856) |
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $3,032,617 for the period ended September 30, 2002 and cumulative suspended losses of $2,771,886 for the year ended March 31, 2002 are not included.
The following is a summary of Investments in Project Partnerships as of:
|
SERIES 5 |
SEPTEMBER 30, |
MARCH 31, |
|
Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships |
$ 6,164,472
(195,464) (30,168) 650,837 (134,549) |
$ 6,164,472
(178,539) 31,302 650,837 (131,993) |
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $3,511,903 for the period ended September 30, 2002 and cumulative suspended losses of $3,217,418 for the year ended March 31, 2002 are not included.
The following is a summary of Investments in Project Partnerships as of:
|
SERIES 6 |
SEPTEMBER 30, |
MARCH 31, |
|
Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships |
$ 7,462,215
(200,943) 547,990 785,179 (183,901) |
$ 7,462,215
(190,600) 651,022
785,179 (179,175) |
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $2,438,901 for the period ended September 30, 2002 and cumulative suspended losses of $2,161,546 for the year ended March 31, 2002 are not included.
The following is a summary of Investments in Project Partnerships as of:
|
TOTAL SERIES 2 - 6 |
SEPTEMBER 30, |
MARCH 31, |
|
Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships |
$ 26,992,597
(782,360) (575,628) 2,881,567 (605,084) |
$ 26,992,597
(728,235) (269,834)
2,881,567 (594,918) |
In accordance with the Partnership's policy of presenting the financial information
|
JUNE 30, |
||
|
SERIES 2 |
2002 |
2001 |
|
SUMMARIZED BALANCE SHEETS |
|
|