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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 December 31, 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)567-3800
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 December 31,2002
Beneficial Assignee Certificates:
$1,000 per certificate 37,228
DOCUMENTS INCORPORATED BY REFERENCE
Parts I and II, 2002 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 |
December 31,
2002
- ---------
(Unaudited) |
March 31,
2002
- ----------
(Audited) |
|
ASSETS
Current Assets:
Cash and Cash Equivalents
Investments in Securities
Total Current Assets
Investments in Securities
Investments in Project Partnerships, Net
Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners
Total Current Liabilities
Long-Term Liabilities:
Payable to General Partners
Partners' Equity (deficit):
Assignor Limited Partner
Units of limited partnership interest
consisting of 40,000 authorized BAC's,of which 6,136 at December 31, 2002
and March 31, 2002 have been issued to the assignees
Assignees
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $1,000
stated value per BAC, 6,136 at December
31, 2002 and March 31, 2002, issued and
outstanding
General Partners
Total Partners' Equity
Total Liabilities and Partners' Equity |
$ 237,252
57,529
- ----------
294,781
160,523
7,186
- ----------
$ 462,490
==========
$ 46,304
- ----------
46,304
- ----------
448,624
- -----------
21,686
(54,124)
- ----------
(32,438)
- ----------
$ 462,490
==========
|
$ 235,805
56,098
- ----------
291,903
205,743
78,301
- ----------
$ 575,947
==========
$ 54,118
- ----------
54,118
- ----------
429,262
- ----------
145,441
(52,874)
- ----------
92,567
- ----------
$ 575,947
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
SERIES 3 |
December 31,
2002
- ---------
(Unaudited) |
March 31,
2002
- ----------
(Audited) |
|
ASSETS
Current Assets:
Cash and Cash Equivalents
Investments in Securities
Total Current Assets
Investments in Securities
Investments in Project Partnerships, Net
Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners
Total Current Liabilities
Long-Term Liabilities:
Payable to General Partners
Partners' Equity (deficit):
Assignor Limited Partner
Units of limited partnership interest
consisting of 40,000 authorized BAC's,
of which 5,456 at December 31, 2002 and
March 31, 2002 have been issued to the
assignees
Assignees
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $1,000 stated
value per BAC, 5,456 at December 31, 2002
and March 31, 2002, issued and outstanding
General Partners
Total Partners' Equity
Total Liabilities and Partners' Equity
|
$ 198,066
51,171
- ----------
249,237
142,782
7,210
- ----------
$ 399,229
==========
$ 50,875
- ----------
50,875
- ----------
329,986
- ----------
66,001
(47,633)
- ----------
18,368
- ----------
$ 399,229
==========
|
$ 198,028
49,898
- ----------
247,926
183,003
34,601
- ----------
$ 465,530
==========
$ 58,717
- ----------
58,717
- ----------
319,290
- ----------
134,464
(46,941)
- ----------
87,523
- ----------
$ 465,530
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
SERIES 4 |
December 31,
2002
- ---------
(Unaudited) |
March 31,
2002
- ----------
(Audited) |
|
ASSETS
Current Assets:
Cash and Cash Equivalents
Investments in Securities
Total Current Assets
Investments in Securities
Investments in Project Partnerships, Net
Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners
Total Current Liabilities
Long-Term Liabilities:
Payable to General Partners
Partners' Equity (deficit):
Assignor Limited Partner
Units of limited partnership interest
consisting of 40,000 authorized BAC's,
of which 6,915 at December 31, 2002 and
March 31, 2002 have been issued to the
assignees
Assignees
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $1,000 stated
value per BAC, 6,915 at December 31, 2002
and March 31, 2002, issued and outstanding
General Partners
Total Partners' Equity
Total Liabilities and Partners' Equity
|
$ 273,267
64,828
- ----------
338,095
180,890
7,089
- ----------
$ 526,074
==========
$ 56,871
- ----------
56,871
- ----------
433,630
- ----------
95,872
(60,299)
- ----------
35,573
- ----------
$ 526,074
==========
|
$ 272,179
63,215
- ----------
335,394
231,848
96,741
- ----------
$ 663,983
==========
$ 66,364
- ----------
66,364
- ----------
415,676
- ----------
240,778
(58,835)
- ----------
181,943
- ----------
$ 663,983
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
SERIES 5 |
December 31,
2002
- ---------
(Unaudited) |
March 31,
2002
- ----------
(Audited) |
|
ASSETS
Current Assets:
Cash and Cash Equivalents
Investments in Securities
Total Current Assets
Investments in Securities
Investments in Project Partnerships, Net
Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners
Total Current Liabilities
Long-Term Liabilities:
Payable to General Partners
Partners' Equity (deficit):
Assignor Limited Partner
Units of limited partnership interest
consisting of 40,000 authorized BAC's,
of which 8,616 at December 31, 2002 and
March 31, 2002 have been issued to the
assignees
Assignees
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $1,000 stated
value per BAC, 8,616 at December 31, 2002
and March 31, 2002, issued and outstanding
General Partners
Total Partners' Equity
Total Liabilities and Partners' Equity |
$ 379,536
80,800
- ----------
460,336
225,456
440,261
- ----------
$ 1,126,053
===========
$ 75,814
- -----------
75,814
- -----------
436,938
- -----------
682,792
(69,491)
- -----------
613,301
- -----------
$ 1,126,053
===========
|
$ 380,377
78,790
- ----------
459,167
288,968
550,146
- ----------
$ 1,298,281
===========
$ 87,779
- -----------
87,779
- -----------
417,637
- -----------
860,560
(67,695)
- -----------
792,865
- -----------
$ 1,298,281
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
SERIES 6 |
December 31,
2002
- ---------
(Unaudited) |
March 31,
2002
- ----------
(Audited) |
|
ASSETS
Current Assets:
Cash and Cash Equivalents
Investments in Securities
Total Current Assets
Investments in Securities
Investments in Project Partnerships, Net
Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners
Total Current Liabilities
Long-Term Liabilities:
Payable to General Partners
Partners' Equity (deficit):
Assignor Limited Partner
Units of limited partnership interest
consisting of 40,000 authorized BAC's,
of which 10,105 at December 31, 2002
and March 31, 2002 have been issued to
the assignees
Assignees
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $1,000 stated
value per BAC, 10,105 at December 31, 2002
and March 31, 2002, issued and outstanding
General Partners
Total Partners' Equity
Total Liabilities and Partners' Equity |
$ 369,152
65,936
- ----------
435,088
255,025
1,090,960
- ----------
$ 1,781,073
===========
$ 72,077
- -----------
72,077
- -----------
565,065
- -----------
1,221,217
(77,286)
- -----------
1,143,931
- -----------
$ 1,781,073
===========
|
$ 455,377
62,622
- ----------
517,999
241,587
1,257,026
- ----------
$ 2,016,612
============
$ 83,891
- -----------
83,891
- -----------
536,157
- -----------
1,471,324
(74,760)
- -----------
1,396,564
- -----------
$ 2,016,612
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
TOTAL SERIES 2 - 6 |
December 31,
2002
- ---------
(Unaudited) |
March 31,
2002
- ----------
(Audited) |
|
ASSETS
Current Assets:
Cash and Cash Equivalents
Investments in Securities
Total Current Assets
Investments in Securities
Investments in Project Partnerships, Net
Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners
Total Current Liabilities
Long-Term Liabilities:
Payable to General Partners
Partners' Equity (deficit):
Assignor Limited Partner
Units of limited partnership interest
consisting of 40,000 authorized BAC's,
of which 37,228 at December 31, 2002 and
March 31, 2002 have been issued to the
assignees
Assignees
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $1,000 stated
value per BAC, 37,228 at December 31, 2002
and March 31, 2002, issued and outstanding
General Partners
Total Partners' Equity
Total Liabilities and Partners' Equity |
$ 1,457,273
320,264
- ----------
1,777,537
964,676
1,552,706
- ----------
$ 4,294,919
==========
$ 301,941
- ----------
301,941
- ----------
2,214,243
- ----------
2,087,568
(308,833)
- -----------
1,778,735
- -----------
$ 4,294,919
===========
|
$ 1,541,766
310,623
- -----------
1,852,389
1,151,149
2,016,815
- -----------
$ 5,020,353
===========
$ 350,869
- -----------
350,869
- -----------
2,118,022
- -----------
2,852,567
(301,105)
- -----------
2,551,462
- -----------
$5,020,353
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31,
(Unaudited)
|
SERIES 2 |
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 Gain or Losses of Project
Partnerships
Net Gain or Loss
Allocation of Net Gain or Loss:
Assignees
General Partners
Net Gain or Loss Per Beneficial
Assignee Certificate
Number of Beneficial Assignee
Certificates Outstanding |
$ 4,755
- ----------
17,050
3,638
883
174
- ----------
21,745
- ----------
(16,990)
(21,606)
- ----------
$ (38,596)
==========
(38,210)
(386)
- ----------
$ (38,596)
==========
$ (6.23)
==========
6,136
==========
|
$ 6,024
- ----------
17,090
3,029
1,014
450
- ----------
21,583
- ----------
(15,559)
(6,181)
- ----------
$ (21,740)
==========
(21,523)
(217)
- ----------
$ (21,740)
==========
$ (3.51)
==========
6,136
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31,
(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 Gain or 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 |
$ 4,197
- ----------
15,723
3,803
1,195
280
- ----------
21,001
- ----------
(16,804)
(4,952)
- ----------
$ (21,756)
==========
(21,538)
(218)
- ----------
$ (21,756)
==========
$ (3.95)
==========
5,456
==========
|
$ 5,298
- ----------
15,776
3,168
1,077
280
- ----------
20,301
- ----------
(15,003)
860
- ----------
$ (14,143)
==========
(14,002)
(141)
- ----------
$ (14,143)
==========
$ (2.57)
==========
5,456
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31,
(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 Gain or 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 |
$ 5,375
- ----------
19,369
4,796
1,764
988
- ----------
26,917
- ----------
(21,542)
(7,990)
- ----------
$ (29,532)
==========
(29,237)
(295)
- ----------
$ (29,532)
==========
$ (4.23)
==========
6,915
==========
|
$ 6,852
- ----------
19,415
3,994
1,258
1,322
- ----------
25,989
- ----------
(19,137)
(21,267)
- ----------
$ (40,404)
==========
(40,000)
(404)
- ----------
$ (40,404)
==========
$ (5.78)
==========
6,915
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31,
(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 Gain or 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 |
$ 6,790
- ----------
23,939
5,953
2,051
1,278
- ----------
33,221
- ----------
(26,431)
(44,581)
- ----------
$ (71,012)
==========
(70,302)
(710)
- ----------
$ (71,012)
==========
$ (8.16)
==========
8,616
==========
|
$ 8,697
- ----------
24,002
4,958
1,493
1,278
- ----------
31,731
- ----------
(23,034)
(72,495)
- ----------
$ (95,529)
==========
(94,574)
(955)
- ----------
$ (95,529)
==========
$ (10.98)
==========
8,616
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31,
(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 Gain or 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 |
$ 6,576
- ---------
26,438
6,284
2,742
2,363
- ---------
37,827
- ---------
(31,251)
(55,023)
- ---------
$ (86,274)
=========
(85,411)
(863)
- ---------
$ (86,274)
=========
$ (8.45)
=========
10,105
=========
|
$ 8,310
- ---------
26,351
5,234
1,690
3,329
- ---------
36,604
- ---------
(28,294)
(98,089)
- ---------
$(126,383)
=========
(125,119)
(1,264)
- ---------
$(126,383)
=========
$ (12.38)
=========
10,105
=========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31,
(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 Gain or Losses of Project
Partnerships
Net Loss
Allocation of Net Loss:
Assignees
General Partners |
$ 27,693
- ----------
102,519
24,474
8,635
5,083
- ----------
140,711
- ----------
(113,018)
(134,152)
- ----------
$(247,170)
==========
(244,698)
(2,472)
- ----------
$(247,170)
==========
|
$ 35,181
- ----------
102,634
20,383
6,532
6,659
- ----------
136,208
- ----------
(101,027)
(197,172)
- ----------
$(298,199)
==========
(295,218)
(2,981)
- ----------
$(298,199)
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
|
SERIES 2 |
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 |
$ 14,430
- ----------
51,150
14,845
7,382
522
- ----------
73,899
- ----------
(59,469)
(65,536)
- ----------
$ (125,005)
==========
(123,755)
(1,250)
- ----------
$ (125,005)
==========
$ (20.17)
==========
6,136
==========
|
$ 20,152
- ----------
51,270
9,089
6,538
1,350
- ----------
68,247
- -----------
(48,095)
(7,114)
- ----------
$ (55,209)
==========
(54,657)
(552)
- ----------
$ (55,209)
==========
$ (8.91)
==========
6,136
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(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
|
$ 12,756
- ---------
47,178
15,520
7,475
840
- ---------
71,013
- ---------
(58,257)
(10,898)
- ---------
$ (69,155)
=========
(68,463)
(692)
- ---------
$ (69,155)
=========
$ (12.55)
=========
5,456
=========
|
$ 17,540
- ---------
47,328
9,504
6,948
840
- ---------
64,620
- ---------
(47,080)
(4,715)
- ---------
$ (51,795)
=========
(51,277)
(518)
- ---------
$ (51,795)
=========
$ (9.40)
==========
5,456
=========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(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
Number of Beneficial Assignee
Certificates Outstanding |
$ 16,345
- ----------
58,107
19,569
9,528
2,964
- ----------
90,168
- ----------
(73,823)
(72,547)
- ----------
$ (146,370)
==========
(144,906)
(1,464)
- ----------
$ (146,370)
==========
$ (20.96)
==========
6,915
==========
|
$ 22,824
- ----------
58,245
11,982
8,438
3,966
- ----------
82,631
- ----------
(59,807)
(59,907)
- ----------
$ (119,714)
==========
(118,517)
(1,197)
- ----------
$ (119,714)
==========
$ (17.14)
==========
6,915
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(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
Number of Beneficial Assignee
Certificates Outstanding |
$ 20,711
- ----------
71,817
24,292
11,206
3,834
- ----------
111,149
- ----------
(90,438)
(89,126)
- ----------
$ (179,564)
==========
(177,768)
(1,796)
- ----------
$ (179,564)
==========
$ (20.63)
==========
8,616
==========
|
$ 29,246
- ----------
72,006
14,875
10,017
3,834
- ----------
100,732
- ----------
(71,486)
(137,228)
- ----------
$ (208,714)
==========
(206,627)
(2,087)
- ----------
$ (208,714)
==========
$ (23.98)
==========
8,616
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(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 |
$ 20,134
- ----------
79,314
25,642
13,010
7,089
- ----------
125,055
- ----------
(104,921)
(147,712)
- ----------
$ (252,633)
==========
(250,107)
(2,526)
- ----------
$ (252,633)
==========
$ (24.75)
==========
10,105
==========
|
$ 28,353
- ----------
79,233
15,702
11,205
9,987
- ----------
116,127
- ----------
(87,774)
(224,668)
- ----------
$ (312,442)
==========
(309,318)
(3,124)
- ----------
$ (312,442)
==========
$ (30.61)
==========
10,105
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(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 |
$ 84,376
- ----------
307,566
99,868
48,601
15,249
- ----------
471,284
- ----------
(386,908)
(385,819)
- ----------
$ (772,727)
==========
(764,999)
(7,728)
- ----------
$ (772,727)
===========
|
$ 118,115
- ----------
308,082
61,152
43,146
19,977
- ----------
432,357
- ----------
(314,242)
(433,632)
- ----------
$ (747,874)
==========
(740,396)
(7,478)
- ----------
$ (747,874)
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (Deficit)
FOR THE NINE MONTHS ENDED DECEMBER 31, 2002 AND 2001
(Unaudited)
|
SERIES 2
|
Assignees
- ---------
|
General
Partners
(Deficit)
- --------
|
Total
- -----
|
|
Balance at March 31, 2001
Net Loss
Balance at December 31, 2001
Balance at March 31, 2002
Net Loss
Balance at December 31, 2002
|
$ 243,647
(54,657)
- ----------
$ 188,990
===========
$ 145,441
(123,755)
- ----------
$ 21,686
===========
|
$ (51,882)
(552)
- ----------
$ (52,434)
==========
$ (52,874)
(1,250)
- ----------
$ (54,124)
==========
|
$ 191,765
(55,209)
- -----------
$ 136,556
===========
$ 92,567
(125,005)
- -----------
$ (32,438)
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (Deficit)
FOR THE NINE MONTHS ENDED DECEMBER 31, 2002 AND 2001
(Unaudited)
|
SERIES 3
|
Assignees
- ---------
|
General
Partners
(Deficit)
- --------
|
Total
- -----
|
|
Balance at March 31, 2001
Net Loss
Balance at December 31, 2001
Balance at March 31, 2002
Net Loss
Balance at December 31, 2002
|
$ 213,725
(51,277)
- -----------
$ 162,448
============
$ 134,464
(68,463)
- -----------
$ 66,001
============
|
$ (46,140)
(518)
- -----------
$ (46,658)
===========
$ (46,941)
(692)
- -----------
$ (47,633)
===========
|
$ 167,585
(51,795)
- -----------
$ 115,790
===========
$ 87,523
(69,155)
- -----------
$ 18,368
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (Deficit)
FOR THE NINE MONTHS ENDED DECEMBER 31, 2002 AND 2001
(Unaudited)
|
SERIES 4
|
Assignees
- ---------
|
General
Partners
(Deficit)
- --------
|
Total
- -----
|
|
Balance at March 31, 2001
Net Loss
Balance at December 31, 2001
Balance at March 31, 2002
Net Loss
Balance at December 31, 2002
|
$ 424,290
(118,517)
- ----------
$ 305,773
==========
$ 240,778
(144,906)
- ----------
$ 95,872
===========
|
$ (56,981)
(1,197)
- ----------
$ (58,178)
==========
$ (58,835)
(1,464)
- ----------
$ (60,299)
==========
|
$ 367,309
(119,714)
- ---------
$ 247,595
==========
$ 181,943
(146,370)
- ---------
$ 35,573
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (Deficit)
FOR THE NINE MONTHS ENDED DECEMBER 31, 2002 AND 2001
(Unaudited)
|
SERIES 5
|
Assignees
- ---------
|
General
Partners
(Deficit)
- --------
|
Total
- -----
|
|
Balance at March 31, 2001
Net Loss
Balance at December 31, 2001
Balance at March 31, 2002
Net Loss
Balance at December 31, 2002
|
$ 1,126,154
(206,627)
- -----------
$ 919,527
===========
$ 860,560
(177,768)
- -----------
$ 682,792
===========
|
$ (65,012)
(2,087)
- ----------
$ (67,099)
==========
$ (67,695)
(1,796)
- ----------
$ (69,491)
==========
|
$ 1,061,142
(208,714)
- -----------
$ 852,428
===========
$ 792,865
(179,564)
- -----------
$ 613,301
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (Deficit)
FOR THE NINE MONTHS ENDED DECEMBER 31, 2002 AND 2001
(Unaudited)
|
SERIES 6
|
Assignees
- ---------
|
General
Partners
(Deficit)
- --------
|
Total
- -----
|
|
Balance at March 31, 2001
Net Loss
Balance at December 31, 2001
Balance at March 31, 2002
Net Loss
Balance at December 31, 2002
|
$ 1,875,009
(309,318)
- -----------
$ 1,565,691
===========
$ 1,471,324
(250,107)
- -----------
$ 1,221,217
===========
|
$ (70,682)
(3,124)
- ----------
$ (73,806)
==========
$ (74,760)
(2,526)
- ----------
$ (77,286)
==========
|
$ 1,804,327
(312,442)
- -----------
$ 1,491,885
===========
$ 1,396,564
(252,633)
- -----------
$ 1,143,931
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (Deficit)
FOR THE NINE MONTHS ENDED DECEMBER 30, 2002 AND 2001
(Unaudited)
|
TOTAL SERIES 2 - 6
|
Assignees
---------
|
General
Partners
(Deficit)
- --------
|
Total
- -----
|
|
Balance at March 31, 2001
Net Loss
Balance at December 31, 2001
Balance at March 31, 2002
Net Loss
Balance at December 31, 2002
|
$ 3,882,825
(740,396)
- -----------
$ 3,142,429
===========
$ 2,852,567
(764,999)
- -----------
$ 2,087,568
===========
|
$ (290,697)
(7,478)
- ----------
$ (298,175)
==========
$ (301,105)
(7,728)
- ----------
$ (308,833)
==========
|
$ 3,592,128
(747,874)
- -----------
$ 2,844,254
===========
$ 2,551,462
(772,727)
- -----------
$ 1,778,735
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31, 2002 AND 2001
(Unaudited)
|
SERIES 2
- -------- |
2002
- ---- |
2001
- ---- |
|
Cash Flows from Operating Activities:
Net Loss
Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
Amortization
Accreted Interest Income on Investments
in Securities
Equity in Losses of Project Partnerships
Interest Income from Redemption of
Securities
Changes in Operating Assets and
Liabilities:
Increase in Payable to General
Partners
Net Cash Used in Operating
Activities
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships
Redemption of Investment in Securities
Net Cash Provided by Investing
Activities
Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of
Year
Cash and Cash Equivalents at End of Year |
$ (125,005)
522
(12,309)
65,536
30,399
11,548
- ----------
(29,309)
- ----------
5,057
25,699
- ----------
30,756
- ----------
1,447
235,805
- ----------
$ 237,252
==========
|
$ (55,209)
1,350
(14,445)
7,114
26,908
16,054
- ----------
(18,228)
- ----------
3,700
26,928
- ----------
30,628
- ----------
12,400
213,928
- ----------
$ 226,328
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31, 2002 AND 2001
(Unaudited)
|
SERIES 3
- -------- |
2002
- ---- |
2001
- ---- |
|
Cash Flows from Operating Activities:
Net Loss
Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
Amortization
Accreted Interest Income on Investments
in Securities
Equity in Losses of Project Partnerships
Interest Income from Redemption of
Securities
Changes in Operating Assets and
Liabilities:
Increase in Payable to General
Partners
Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships
Redemption of Investment in Securities
Net Cash Provided by Investing
Activities
Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of
Year
Cash and Cash Equivalents at End of Year |
$ (69,155)
840
(10,948)
10,898
27,037
2,854
- ----------
(38,474)
- ----------
15,653
22,859
- ----------
38,512
- ----------
38
198,028
- ----------
$ 198,066
==========
|
$ (51,795)
840
(12,849)
4,715
23,934
10,043
- ----------
(25,112)
- ----------
14,267
23,952
- ----------
38,219
- ----------
13,107
177,615
- ----------
$ 190,722
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31, 2002 AND 2001
(Unaudited)
|
SERIES 4
- -------- |
2002
- ---- |
2001
- ---- |
|
Cash Flows from Operating Activities:
Net Loss
Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
Amortization
Accreted Interest Income on Investments
in Securities
Equity in Losses of Project Partnerships
Interest Income from Redemption of
Securities
Changes in Operating Assets and
Liabilities:
Increase in Payable to General
Partners
Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships
Redemption of Investment in Securities
Net Cash Provided by Investing
Activities
Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of
Year
Cash and Cash Equivalents at End of Year |
$ (146,370)
2,964
(13,870)
72,547
34,255
8,461
- ----------
(42,013)
- ----------
14,141
28,960
- ----------
43,101
- ----------
1,088
272,179
- ----------
$ 273,267
==========
|
$ (119,714)
3,966
(16,278)
59,907
30,322
13,414
- ----------
(28,383)
- ----------
16,180
30,344
- ----------
46,524
- ----------
18,141
249,491
- ----------
$ 267,632
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31, 2002 AND 2001
(Unaudited)
|
SERIES 5
- -------- |
2002
- ---- |
2001
- ---- |
|
Cash Flows from Operating Activities:
Net Loss
Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
Amortization
Accreted Interest Income on Investments
in Securities
Equity in Losses of Project Partnerships
Interest Income from Redemption of
Securities
Changes in Operating Assets and
Liabilities:
Increase in Payable to General
Partners
Net Cash Used in Operating
Activities
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships
Redemption of Investment in Securities
Net Cash Provided by Investing
Activities
Increase (Decrease) in Cash and Cash
Equivalents
Cash and Cash Equivalents at Beginning of
Year
Cash and Cash Equivalents at End of Year |
$ (179,564)
3,834
(17,288)
89,126
42,696
7,336
- ----------
(53,860)
- ----------
16,925
36,094
- ----------
53,019
- ----------
(841)
380,377
- ----------
$ 379,536
==========
|
$ (208,714)
3,834
(20,288)
137,228
37,792
11,518
- ----------
(38,630)
- ----------
16,013
37,820
- ----------
53,833
- ----------
15,203
350,854
- ----------
$ 366,057
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31, 2002 AND 2001
(Unaudited)
|
SERIES 6
- ------- |
2002
- ---- |
2001
- ---- |
|
Cash Flows from Operating Activities:
Net Loss
Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
Amortization
Accreted Interest Income on Investments
in Securities
Equity in Losses of Project Partnerships
Changes in Operating Assets and
Liabilities:
Increase in Payable to General
Partners
Net Cash Used in Operating
Activities
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships
Net Cash Provided by Investing
Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of
Year
Cash and Cash Equivalents at End of Year |
$ (252,633)
7,089
(16,752)
147,712
17,094
- ----------
(97,490)
- ----------
11,265
- ----------
11,265
- ----------
(86,225)
455,377
- ----------
$ 369,152
==========
|
$ (312,442)
9,987
(18,952)
224,668
21,197
- ----------
(75,542)
- ----------
14,389
- ----------
14,389
- ----------
(61,153)
437,636
- ----------
$ 376,483
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31, 2002 AND 2001
(Unaudited)
|
TOTAL SERIES 2 - 6
- -------- |
2002
- ---- |
2001
- ---- |
|
Cash Flows from Operating Activities:
Net Loss
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:
Amortization
Accreted Interest Income on Investments
in Securities
Equity in Losses of Project Partnerships
Interest Income from Redemption of
Securities
Changes in Operating Assets and
Liabilities:
Increase in Payable to General
Partners
Net Cash Used in Operating
Activities
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships
Redemption of Investment in Securities
Net Cash Provided by Investing
Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of
Year
Cash and Cash Equivalents at End of Year |
$ (772,727)
15,249
(71,167)
385,819
134,387
47,293
- ----------
(261,146)
- ----------
63,041
113,612
- ----------
176,653
- ----------
(84,493)
1,541,766
- ----------
$ 1,457,273
==========
|
$ (747,874)
19,977
(82,812)
433,632
118,956
72,226
- ----------
(185,895)
- ----------
64,549
119,044
- ----------
183,593
- ----------
(2,302)
1,429,524
- ----------
$ 1,427,222
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
DECEMBER 31, 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 December 31, 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 investment in the 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 December 31, 2002 Balance Sheet includes Investment in Securities consisting of U.S. Government Security Strips which represents their cost, plus accreted interest income of $125,308 for Series 2, $111,459 for Series 3, $141,206 for Series 4, $175,996 for Series 5 and $168,282 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.
| |
Estimated Market
Value
- ----------------- |
Cost Plus Accreted
Interest
- ----------------- |
Gross Unrealized
Gains and (Losses)
- ---------------- |
|
Series 2 |
$ 240,508 |
$ 218,052 |
$ 22,456 |
|
Series 3 |
213,857 |
193,953 |
19,904 |
|
Series 4 |
271,042 |
245,718 |
25,324 |
|
Series 5 |
337,713 |
306,256 |
31,457 |
|
Series 6 |
355,819 |
320,961 |
34,858 |
As of December 31, 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 |
$ 57,529 |
$ 51,171 |
$ 64,828 |
|
After 1 year through 5 years |
160,523 |
142,782 |
180,890 |
|
After 5 years through 10 years |
0
- ---------- |
0
- ---------- |
0
- ---------- |
|
Total Amount Carried on
Balance Sheet |
$ 218,052
==========
|
$ 193,953
==========
|
$ 245,718
==========
|
| |
Series 5
- -------- |
Series 6
- -------- |
Total
- -------- |
|
Due within 1 year |
$ 80,800 |
$ 65,936 |
$ 320,264 |
|
After 1 year through 5 years |
225,456 |
193,423 |
903,074 |
|
After 5 years through 10 years |
0
- ---------- |
61,602
- ---------- |
61,602
- ---------- |
|
Total Amount Carried on
Balance Sheet |
$ 306,256
==========
|
$ 320,961
==========
|
$1,284,940
==========
|
NOTE 4 - RELATED PARTY TRANSACTIONS:
The Payable to General Partners primarily represents the asset management fees owed to the General Partners at the end of the period.
It is unsecured, due on demand and, in accordance with the limited partnership agreement, non-interest bearing. Within the next 12 months, the Managing General Partner does not intend to demand payment on the portion of Asset Management Fees payable classified as long-term on the Balance Sheet.
The Payable to Project Partnerships represents unpaid capital contributions to the Project Partnerships and will be paid after certain performance criteria are met. Such contributions are in turn payable to the general partner of the Project Partnerships.
For the nine months ended December 31, 2002 and 2001 the General Partners and affiliates are entitled to compensation and reimbursement for costs and expenses incurred by Gateway as follows:
Asset Management Fee - The Managing General Partner is entitled to be paid an annual asset management fee equal to 0.25% of the aggregate cost of Gateway's interest in the projects owned by the Project Partnerships. The asset management fee will be paid only after all other expenses of Gateway have been paid. These fees are included in the Statements of Operations.
2002 2001
------- ------
Series 2 $ 51,150 $ 51,270
Series 3 47,178 47,328
Series 4 58,107 58,245
Series 5
71,817 72,006
Series 6 79,314 79,233
--------- ---------
Total $ 307,566 $ 308,082
========= =========
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 $ 14,845 $ 9,089
Series 3 15,520 9,504
Series 4 19,569 11,982
Series 5 24,292 14,875
Series 6 25,642 15,702
--------- -------
Total $ 99,868 $ 61,152
========= =========
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:
As of December 31, 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 |
DECEMBER 31,
2002
- ----------- |
MARCH 31,
2002
- ---------- |
|
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships
Cumulative equity in losses of Project
Partnerships (1)
Cumulative distributions received from
Project Partnerships
Investment in Project Partnerships before
Adjustment
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses
Accumulated amortization of acquisition
fees and expenses
Investments in Project Partnerships |
$ 4,524,678
(4,739,186)
(86,260)
- -----------
(300,768)
390,838
(82,884)
- -----------
$ 7,186
============
|
$ 4,524,678
(4,673,651)
(81,202)
- -----------
(230,175)
390,838
(82,362)
- -----------
$ 78,301
============
|
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $3,362,634 for the period ended December 31, 2002 and cumulative suspended losses of $2,940,699,for the year ended March 31, 2002 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
The following is a summary of Investments in Project Partnerships as of:
|
SERIES 3 |
DECEMBER 31,
2002
- ----------- |
MARCH 31,
2002
- ---------- |
|
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships
Cumulative equity in losses of Project
Partnerships (1)
Cumulative distributions received from
Project Partnerships
Investment in Project Partnerships before
Adjustment
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses
Accumulated amortization of acquisition
fees and expenses
Investments in Project Partnerships |
$ 3,888,713
(4,113,734)
(177,143)
- ---------
(402,164)
491,746
(82,372)
- ----------
$ 7,210
=========== |
$ 3,888,713
(4,102,836)
(161,490)
- ----------
(375,613)
491,746
(81,532)
- ----------
$ 34,601
===========
|
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $4,171,474 for the period ended December 31, 2002 and cumulative suspended losses of $3,840,222 for the year ended March 31, 2002 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
The following is a summary of Investments in Project Partnerships as of:
|
SERIES 4 |
DECEMBER 31,
2002
- ---------- |
MARCH 31,
2002
- --------- |
|
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships
Cumulative equity in losses of Project
Partnerships (1)
Cumulative distributions received from
Project Partnerships
Investment in Project Partnerships before
Adjustment
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses
Accumulated amortization of acquisition
fees and expenses
Investments in Project Partnerships |
$ 4,952,519
(5,255,033)
(130,544)
- -----------
(433,058)
562,967
(122,820)
- ----------
$ 7,089
===========
|
$ 4,952,519
(5,182,485)
(116,404)
- ----------
(346,370)
562,967
(119,856)
- ----------
$ 96,741
===========
|
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $3,121,001 for the period ended December 31, 2002 and cumulative suspended losses of $2,771,886 for the year ended March 31, 2002 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
The following is a summary of Investments in Project Partnerships as of:
|
SERIES 5 |
DECEMBER 31,
2002
- ----------- |
MARCH 31,
2002
- ---------- |
|
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships
Cumulative equity in losses of Project
Partnerships (1)
Cumulative distributions received from
Project Partnerships
Investment in Project Partnerships before
Adjustment
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses
Accumulated amortization of acquisition
fees and expenses
Investments in Project Partnerships |
$ 6,164,472
(6,043,757)
(195,464)
- ----------
(74,749)
650,837
(135,827)
- ----------
$ 440,261
===========
|
$ 6,164,472
(5,954,631)
(178,539)
- ----------
31,302
650,837
(131,993)
- ----------
$ 550,146
===========
|
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $3,661,764 for the period ended December 31, 2002 and cumulative suspended losses of $3,217,418 for the year ended March 31, 2002 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
The following is a summary of Investments in Project Partnerships as of:
|
SERIES 6 |
DECEMBER 31,
2002
- ----------- |
MARCH 31,
2002
- ---------- |
|
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships
Cumulative equity in losses of Project
Partnerships (1)
Cumulative distributions received from
Project Partnerships
Investment in Project Partnerships before
Adjustment
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses
Accumulated amortization of acquisition
fees and expenses
Investments in Project Partnerships |
$ 7,462,215
(6,768,305)
(201,865)
- ----------
492,045
785,179
(186,264)
- ----------
$ 1,090,960
===========
|
$ 7,462,215
(6,620,593)
(190,600)
- ----------
651,022
785,179
(179,175)
- ----------
$ 1,257,026
===========
|
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $2,539,442 for the period ended December 31, 2002 and cumulative suspended losses of $2,161,546 for the year ended March 31, 2002 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
The following is a summary of Investments in Project Partnerships as of:
|
TOTAL SERIES 2 - 6 |
DECEMBER 31,
2002
- ----------- |
MARCH 31,
2002
- ---------- |
|
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships
Cumulative equity in losses of Project
Partnerships (1)
Cumulative distributions received from
Project Partnerships
Investment in Project Partnerships before
Adjustment
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses
Accumulated amortization of acquisition
fees and expenses
Investments in Project Partnerships |
$ 26,992,597
(26,920,015)
(791,276)
- ----------
(718,694)
2,881,567
(610,167)
- ----------
$ 1,552,706
===========
|
$ 26,992,597
(26,534,196)
(728,235)
- -----------
(269,834)
2,881,567
(594,918)
- -----------
$ 2,016,815
===========
|
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
In accordance with the Partnership's policy of presenting the financial information of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of September 30, of each year: