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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 DECEMBER 31, 2003
Commission File Number 0-21762
Gateway Tax Credit Fund III Ltd.
(Exact name of Registrant as specified in its charter)
Florida 59-3090386
(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) 567-4830
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, 2003
Units of Limited Partnership
Interest: $1,000 per unit 36,799
DOCUMENTS INCORPORATED BY REFERENCE
Parts I and II, 2003 Form 10-K, filed with the
Securities and Exchange Commission on June 24, 2003
Parts III and IV - Form S-11 Registration Statement
and all amendments and supplements thereto
File No. 33-44238
PART I - Financial Information
Item 1. Financial Statements
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
SERIES 7 |
DECEMBER 31,
2003
- -------
(Unaudited) |
MARCH 31,
2003
- -------
(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):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at December 31, 2003 and March 31,2003)
General Partners
Total Partners' Equity
Total Liabilities and Partners' Equity |
$ 294,280
67,602
- -----------
361,882
260,717
1,177,378
- -----------
$ 1,799,977
===========
$ 71,135
- -----------
71,135
- -----------
445,119
- -----------
1,362,164
(78,441)
- -----------
1,283,723
- -----------
$ 1,799,977
===========
|
$ 390,008
64,155
- -----------
454,163
246,831
1,278,834
- -----------
$ 1,979,828
===========
$ 69,660
- -----------
69,660
- -----------
437,160
- -----------
1,549,556
(76,548)
- -----------
1,473,008
- -----------
$ 1,979,828
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
SERIES 8 |
DECEMBER 31,
2003
- -------
(Unaudited) |
MARCH 31,
2003
- -------
(Audited) |
|
ASSETS
Current Assets:
Cash and Cash Equivalents
Investments in Securities
Accounts Receivable
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):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at December 31, 2003 and March 31, 2003)
General Partners
Total Partners' Equity
Total Liabilities and Partners' Equity |
$ 332,167
62,609
24,220
- -----------
418,996
248,075
500,032
- -----------
$ 1,167,103
===========
$ 59,161
- -----------
59,161
- -----------
541,223
- -----------
648,677
(81,958)
- -----------
566,719
- -----------
$ 1,167,103
===========
|
$ 450,206
59,583
0
- -----------
509,789
235,603
560,231
- -----------
$ 1,305,623
===========
$ 61,828
- -----------
61,828
- -----------
513,976
- -----------
810,146
(80,327)
- -----------
729,819
- -----------
$ 1,305,623
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
SERIES 9 |
DECEMBER 31,
2003
- -------
(Unaudited) |
MARCH 31,
2003
- -------
(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):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at December 31, 2003 and March 31, 2003)
General Partners
Total Partners' Equity
Total Liabilities and Partners' Equity |
$ 224,120
36,772
- -----------
260,892
176,578
1,047,910
- -----------
$ 1,485,380
===========
$ 30,223
- -----------
30,223
- -----------
350,188
- -----------
1,148,756
(43,787)
- -----------
1,104,969
- -----------
$ 1,485,380
===========
|
$ 260,485
35,177
- -----------
295,662
168,560
1,211,933
- -----------
$ 1,676,155
===========
$ 35,252
- -----------
35,252
- -----------
318,435
- -----------
1,364,080
(41,612)
- -----------
1,322,468
- -----------
$ 1,676,155
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
SERIES 10 |
DECEMBER 31,
2003
- -------
(Unaudited) |
MARCH 31,
2003
- -------
(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):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at December 31, 2003 and March 31, 2003)
General Partners
Total Partners' Equity
Total Liabilities and Partners' Equity |
$ 225,449
28,000
- -----------
253,449
157,299
1,858,068
- -----------
$ 2,268,816
===========
$ 34,654
- -----------
34,654
- -----------
92,770
- -----------
2,164,158
(22,766)
- -----------
2,141,392
- -----------
$ 2,268,816
===========
|
$ 251,941
26,620
- -----------
278,561
149,205
2,014,742
- -----------
$ 2,442,508
===========
$ 35,197
- -----------
35,197
- -----------
86,436
- -----------
2,341,846
(20,971)
- -----------
2,320,875
- -----------
$ 2,442,508
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
SERIES 11 |
DECEMBER 31,
2003
- -------
(Unaudited) |
MARCH 31,
2003
- -------
(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):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at December 31, 2003 and March 31, 2003)
General Partners
Total Partners' Equity
Total Liabilities and Partners' Equity |
$ 222,672
31,798
- -----------
254,470
178,241
2,832,299
- -----------
$ 3,265,010
===========
$ 36,638
- -----------
36,638
- -----------
836
- -----------
3,241,251
(13,715)
- -----------
3,227,536
- -----------
$ 3,265,010
===========
|
$ 264,198
30,129
- -----------
294,327
168,593
2,914,130
- -----------
$ 3,377,050
===========
$ 33,669
- -----------
33,669
- -----------
11,661
- -----------
3,344,393
(12,673)
- -----------
3,331,720
- -----------
$ 3,377,050
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
TOTAL SERIES 7 - 11 |
DECEMBER 31,
2003
- -------
(Unaudited) |
MARCH 31,
2003
- -------
(Audited) |
|
ASSETS
Current Assets:
Cash and Cash Equivalents
Investments in Securities
Accounts Receivable
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):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at December 31, 2003 and March 31, 2003)
General Partners
Total Partners' Equity
Total Liabilities and Partners' Equity |
$ 1,298,688
226,781
24,220
- -----------
1,549,689
1,020,910
7,415,687
- -----------
$ 9,986,286
===========
$ 231,811
- -----------
231,811
- -----------
1,430,136
- -----------
8,565,006
(240,667)
- -----------
8,324,339
- -----------
$ 9,986,286
===========
|
$ 1,616,838
215,664
0
- -----------
1,832,502
968,792
7,979,870
- -----------
$10,781,164
===========
$ 235,606
- -----------
235,606
- -----------
1,367,668
- -----------
9,410,021
(232,131)
- -----------
9,177,890
- -----------
$10,781,164
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31,
(Unaudited)
|
SERIES 7 |
2003
- ---- |
2002
- ---- |
|
Revenues:
Interest Income
Other Income
Total Revenue
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:
Limited Partners
General Partners
Net Loss Per Number of Limited
Partnership Units
Number of Limited Partnership Units
Outstanding |
$ 6,180
7,315
- -----------
13,495
21,771
12,472
2,413
1,661
- -----------
38,317
- -----------
(24,822)
(60,089)
- -----------
$ (84,911)
===========
$ (84,062)
(849)
- -----------
$ (84,911)
===========
$ (8.09)
===========
10,395
===========
|
$ 7,310
0
- -----------
7,310
21,849
6,469
2,093
1,671
- -----------
32,082
- -----------
(24,772)
(46,357)
- -----------
$ (71,129)
===========
$ (70,418)
(711)
- -----------
$ (71,129)
===========
$ (6.77)
===========
10,395
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31,
(Unaudited)
|
SERIES 8 |
2003
- ---- |
2002
- ---- |
|
Revenues:
Interest Income
Other Income
Total Revenue
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:
Limited Partners
General Partners
Net Loss Per Number of Limited
Partnership Units
Number of Limited Partnership Units
Outstanding |
$ 5,589
10,693
- -----------
16,282
- ------------
22,682
13,751
2,946
768
- -----------
40,147
- -----------
(23,865)
(29,609)
- ----------
$ (53,474)
===========
$ (52,939)
(535)
- -----------
$ (53,474)
===========
$ (5.30)
===========
9,980
===========
|
$ 6,778
0
- -----------
6,778
- ------------
22,758
7,111
3,864
1,185
- -----------
34,918
- -----------
(28,140)
(45,165)
- ----------
$ (73,305)
===========
$ (72,572)
(733)
- -----------
$ (73,305)
===========
$ (7.27)
===========
9,980
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31,
(Unaudited)
|
SERIES 9 |
2003
- ---- |
2002
- ---- |
|
Revenues:
Interest Income
Other Income
Total Revenue
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:
Limited Partners
General Partners
Net Loss Per Number of Limited
Partnership Units
Number of Limited Partnership Units
Outstanding |
$ 3,477
600
- -----------
4,077
- ------------
12,466
7,676
1,160
771
- -----------
22,073
- -----------
(17,996)
(51,476)
- ----------
$ (69,472)
===========
$ (68,777)
(695)
- -----------
$ (69,472)
===========
$ (11.00)
===========
6,254
===========
|
$ 4,093
0
- -----------
4,093
- ------------
12,507
3,969
1,654
814
- -----------
18,944
- -----------
(14,851)
(82,354)
- ----------
$ (97,205)
===========
$ (96,233)
(972)
- -----------
$ (97,205)
===========
$ (15.39)
===========
6,254
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31,
(Unaudited)
|
SERIES 10 |
2003
- ---- |
2002
- ---- |
|
Revenues:
Interest Income
Other Income
Total Revenue
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:
Limited Partners
General Partners
Net Loss Per Number of Limited
Partnership Units
Number of Limited Partnership Units
Outstanding |
$ 3,446
1,500
- -----------
4,946
- ------------
8,503
4,796
859
1,145
- -----------
15,303
- -----------
(10,357)
(54,629)
- -----------
$ (64,986)
===========
$ (64,336)
(650)
- -----------
$ (64,986)
===========
$ (12.76)
===========
5,043
===========
|
$ 3,982
0
- -----------
3,982
- ------------
8,529
2,480
1,071
1,203
- -----------
13,283
- -----------
(9,301)
(58,668)
- -----------
$ (67,969)
===========
$ (67,289)
(680)
- -----------
$ (67,969)
===========
$ (13.34)
===========
5,043
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31,
(Unaudited)
|
SERIES 11 |
2003
- ---- |
2002
- ---- |
|
Revenues:
Interest Income
Other Income
Total Revenue
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:
Limited Partners
General Partners
Net Loss Per Number of Limited
Partnership Units
Number of Limited Partnership Units
Outstanding |
$ 4,059
985
- -----------
5,044
- ------------
7,130
3,837
1,199
1,683
- -----------
13,849
- -----------
(8,805)
(6,953)
- ----------
$ (15,758)
===========
$ (15,600)
(158)
- -----------
$ (15,758)
===========
$ (3.04)
===========
5,127
===========
|
$ 4,625
0
- -----------
4,625
- ------------
7,192
1,984
864
2,074
- -----------
12,114
- -----------
(7,489)
(79,909)
- ----------
$ (87,398)
===========
$ (86,524)
(874)
- -----------
$ (87,398)
===========
$ (16.88)
===========
5,127
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31,
(Unaudited)
|
TOTAL SERIES 7 - 11 |
2003
- ---- |
2002
- ---- |
|
Revenues:
Interest Income
Other Income
Total Revenue
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:
Limited Partners
General Partners |
$ 22,751
21,093
- -----------
43,844
- ------------
72,552
42,532
8,577
6,028
- -----------
129,689
- -----------
(85,845)
(202,756)
- -----------
$ (288,601)
===========
$ (285,714)
(2,887)
- -----------
$ (288,601)
===========
|
$ 26,788
0
- -----------
26,788
- ------------
72,835
22,013
9,546
6,947
- -----------
111,341
- -----------
(84,553)
(312,453)
- -----------
$ (397,006)
===========
$ (393,036)
(3,970)
- -----------
$ (397,006)
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
|
SERIES 7 |
2003
- ---- |
2002
- ---- |
|
Revenues:
Interest Income
Other Income
Total Revenue
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:
Limited Partners
General Partners
Net Loss Per Number of Limited
Partnership Units
Number of Limited Partnership
Units Outstanding |
$ 18,489
9,061
- -----------
27,550
- ------------
65,313
44,683
12,676
4,983
- -----------
127,655
- -----------
(100,105)
(89,180)
- -----------
$ (189,285)
===========
$ (187,392)
(1,893)
- -----------
$ (189,285)
===========
$ (18.03)
===========
10,395
===========
|
$ 22,195
0
- -----------
22,195
- ------------
65,547
26,316
13,051
5,013
- -----------
109,927
- -----------
(87,732)
(117,987)
- -----------
$ (205,719)
===========
$ (203,662)
(2,057)
- -----------
$ (205,719)
===========
$ (19.59)
===========
10,395
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
|
SERIES 8 |
2003
- ---- |
2002
- ---- |
|
Revenues:
Interest Income
Other Income
Total Revenue
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:
Limited Partners
General Partners
Net Loss Per Number of Limited
Partnership Units
Number of Limited Partnership
Units Outstanding |
$ 16,789
12,073
- ----------
28,862
- -----------
68,046
49,265
15,480
2,304
- ----------
135,095
- ----------
(106,233)
(56,867)
- ----------
$ (163,100)
===========
$ (161,469)
(1,631)
- -----------
$ (163,100)
===========
$ (16.18)
===========
9,980
===========
|
$ 20,700
0
- ----------
20,700
- -----------
68,274
29,016
16,026
3,555
- ----------
116,871
- ----------
(96,171)
(102,918)
- ----------
$ (199,089)
===========
$ (197,098)
(1,991)
- -----------
$ (199,089)
===========
$ (19.75)
===========
9,980
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
|
SERIES 9 |
2003
- ---- |
2002
- ---- |
|
Revenues:
Interest Income
Other Income
Total Revenue
Expenses:
Asset Management Fee-General Partner
General and Administrative:
General Partner
Other
Amortization
Total Expenses
Loss Before Equity in Losses of
Project Partnership
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
Limited Partners
General Partners
Net Loss Per Number of Limited
Partnership Units
Number of Limited Partnership Units
Outstanding |
$ 10,413
3,038
- ----------
13,451
- -----------
37,398
27,497
7,434
2,313
- ----------
74,642
- ----------
(61,191)
(156,308)
- ----------
$ (217,499)
===========
$ (215,324)
(2,175)
- -----------
$ (217,499)
===========
$ (34.43)
===========
6,254
===========
|
$ 12,447
0
- ----------
12,447
- -----------
37,521
16,195
8,717
2,442
- ----------
64,875
- ----------
(52,428)
(225,884)
- ----------
$ (278,312)
===========
$ (275,529)
(2,783)
- -----------
$ (278,312)
===========
$ (44.06)
===========
6,254
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
|
SERIES 10 |
2003
- ---- |
2002
- ---- |
|
Revenues:
Interest Income
Other Income
Total Revenue
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:
Limited Partners
General Partners
Net Loss Per Number of Limited
Partnership Units
Number of Limited Partnership
Units Outstanding |
$ 10,275
1,500
- ----------
11,775
- -----------
25,509
17,186
5,043
3,435
- ----------
51,173
- ----------
(39,398)
(140,085)
- ----------
$ (179,483)
===========
$ (177,688)
(1,795)
- -----------
$ (179,483)
===========
$ (35.23)
===========
5,043
===========
|
$ 12,074
0
- ----------
12,074
- -----------
25,587
10,121
5,817
3,609
- ----------
45,134
- ----------
(33,060)
(133,570)
- ----------
$ (166,630)
===========
$ (164,964)
(1,666)
- -----------
$ (166,630)
===========
$ (32.71)
===========
5,043
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
|
SERIES 11 |
2003
- ---- |
2002
- ---- |
|
Revenues:
Interest Income
Other Income
Total Revenue
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:
Limited Partners
General Partners
Net Loss Per Number of Limited
Partnership Units
Number of Limited Partnership
Units Outstanding |
$ 12,122
3,167
- ----------
15,289
- -----------
21,390
13,749
4,892
5,049
- ----------
45,080
- ----------
(29,791)
(74,393)
- ----------
$ (104,184)
===========
$ (103,142)
(1,042)
- -----------
$ (104,184)
===========
$ (20.12)
===========
5,127
===========
|
$ 14,060
0
- ----------
14,060
- -----------
21,576
8,097
5,103
6,222
- ----------
40,998
- ----------
(26,938)
(151,500)
- ----------
$ (178,438)
===========
$ (176,654)
(1,784)
- -----------
$ (178,438)
===========
$ (34.46)
===========
5,127
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
|
TOTAL SERIES 7 - 11 |
2003
- ---- |
2002
- ---- |
|
Revenues:
Interest Income
Other Income
Total Revenue
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:
Limited Partners
General Partners |
$ 68,088
28,839
- ----------
96,927
- -----------
217,656
152,380
45,525
18,084
- ----------
433,645
- ----------
(336,718)
(516,833)
- ----------
$ (853,551)
===========
$ (845,015)
(8,536)
- -----------
$ (853,551)
===========
|
$ 81,476
0
- ----------
81,476
- -----------
218,505
89,745
48,714
20,841
- ----------
377,805
- ----------
(296,329)
(731,859)
- ----------
$(1,028,188)
===========
$(1,017,907)
(10,281)
- -----------
$(1,028,188)
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (Deficit)
FOR THE NINE MONTHS ENDED DECEMBER 31, 2003 AND 2002:
(Unaudited)
|
SERIES 7 |
Limited
Partners
- ---------
|
General
Partners
(Deficit)
- -------- |
Total
- -----
|
|
Balance at March 31, 2002
Net Loss
Balance at December 31, 2002
Balance at March 31, 2003
Net Loss
Balance at December 31, 2003
|
$ 1,780,281
(203,662)
- -----------
$ 1,576,619
===========
$ 1,549,556
(187,392)
- -----------
$ 1,362,164
===========
|
$ (74,217)
(2,057)
- -----------
$ (76,274)
===========
$ (76,548)
(1,893)
- -----------
$ (78,441)
===========
|
$ 1,706,064
(205,719)
- -----------
$ 1,500,345
===========
$ 1,473,008
(189,285)
- -----------
$ 1,283,723
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (Deficit)
FOR THE NINE MONTHS ENDED DECEMBER 31, 2003 AND 2002:
(Unaudited)
|
SERIES 8 |
Limited
Partners
- ---------
|
General
Partners
(Deficit)
- -------- |
Total
- -----
|
|
Balance at March 31, 2002
Net Loss
Balance at December 31, 2002
Balance at March 31, 2003
Net Loss
Balance at December 31, 2003
|
$ 1,001,538
(197,098)
- -----------
$ 804,440
===========
$ 810,146
(161,469)
- -----------
$ 648,677
===========
|
$ (78,394)
(1,991)
- -----------
$ (80,385)
===========
$ (80,327)
(1,631)
- -----------
$ (81,958)
===========
|
$ 923,144
(199,089)
- -----------
$ 724,055
===========
$ 729,819
(163,100)
- -----------
$ 566,719
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (Deficit)
FOR THE NINE MONTHS ENDED DECEMBER 31, 2003 AND 2002:
(Unaudited)
|
SERIES 9 |
Limited
Partners
- ---------
|
General
Partners
(Deficit)
- -------- |
Total
- -----
|
|
Balance at March 31, 2002
Net Loss
Balance at December 31, 2002
Balance at March 31, 2003
Net Loss
Balance at December 31, 2003
|
$ 1,707,018
(275,529)
- -----------
$ 1,431,489
===========
$ 1,364,080
(215,324)
- -----------
$ 1,148,756
===========
|
$ (38,148)
(2,783)
- -----------
$ (40,931)
===========
$ (41,612)
(2,175)
- -----------
$ (43,787)
===========
|
$ 1,668,870
(278,312)
- -----------
$ 1,390,558
===========
$ 1,322,468
(217,499)
- -----------
$ 1,104,969
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (Deficit)
FOR THE NINE MONTHS ENDED DECEMBER 31, 2003 AND 2002:
(Unaudited)
|
SERIES 10 |
Limited
Partners
- ---------
|
General
Partners
(Deficit)
- -------- |
Total
- -----
|
|
Balance at March 31, 2002
Net Loss
Balance at December 31, 2002
Balance at March 31, 2003
Net Loss
Balance at December 31, 2003
|
$ 2,586,073
(164,964)
- -----------
$ 2,421,109
===========
$ 2,341,846
(177,688)
- -----------
$ 2,164,158
===========
|
$ (18,504)
(1,666)
- -----------
$ (20,170)
===========
$ (20,971)
(1,795)
- -----------
$ (22,766)
===========
|
$ 2,567,569
(166,630)
- -----------
$ 2,400,939
===========
$ 2,320,875
(179,483)
- -----------
$ 2,141,392
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (Deficit)
FOR THE NINE MONTHS ENDED DECEMBER 31, 2003 AND 2002:
(Unaudited)
|
SERIES 11 |
Limited
Partners
- ---------
|
General
Partners
(Deficit)
- -------- |
Total
- -----
|
|
Balance at March 31, 2002
Net Loss
Balance at December 31, 2002
Balance at March 31, 2003
Net Loss
Balance at December 31, 2003
|
$ 3,549,631
(176,654)
- -----------
$ 3,372,977
===========
$ 3,344,393
(103,142)
- -----------
$ 3,241,251
===========
|
$ (10,600)
(1,784)
- -----------
$ (12,384)
===========
$ (12,673)
(1,042)
- -----------
$ (13,715)
===========
|
$ 3,539,031
(178,438)
- -----------
$ 3,360,593
===========
$ 3,331,720
(104,184)
- -----------
$ 3,227,536
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (Deficit)
FOR THE NINE MONTHS ENDED DECEMBER 31, 2003 AND 2002:
(Unaudited)
|
TOTAL SERIES 7 - 11 |
Limited
Partners
- ---------
|
General
Partners
(Deficit)
- -------- |
Total
- -----
|
|
Balance at March 31, 2002
Net Loss
Balance at December 31, 2002
Balance at March 31, 2003
Net Loss
Balance at December 31, 2003
|
$10,624,541
(1,017,907)
- -----------
$ 9,606,634
===========
$ 9,410,021
(845,015)
- -----------
$ 8,565,006
===========
|
$ (219,863)
(10,281)
- -----------
$ (230,144)
===========
$ (232,131)
(8,536)
- -----------
$ (240,667)
===========
|
$10,404,678
(1,028,188)
- -----------
$9,376,490
===========
$ 9,177,890
(853,551)
- -----------
$ 8,324,339
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
|
SERIES 7
- -------- |
2003
- ---- |
2002
- ---- |
|
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
Distributions Included in Other Income
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 Period
Cash and Cash Equivalents at End of Period |
$ (189,285)
4,983
(17,334)
89,180
(9,061)
9,435
- ----------
(112,082)
- ----------
16,354
- ----------
16,354
- ----------
(95,728)
390,008
- ----------
$ 294,280
==========
|
$ (205,719)
5,013
(19,302)
117,987
0
12,385
- ----------
(89,636)
- ----------
18,075
- ----------
18,075
- ----------
(71,561)
384,626
- ----------
$ 313,065
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
|
SERIES 8
- -------- |
2003
- ---- |
2002
- ---- |
|
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 Partnership
Distributions Included in Other Income
Changes in Operating Assets and Liabilities:
Increase in Payable to General Partners
Increase in Accounts Receivable
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 Period
Cash and Cash Equivalents at End of Period |
$ (163,100)
2,304
(15,498)
56,867
(12,073)
24,579
(24,220)
- ---------
(131,141)
- ---------
13,102
- ---------
13,102
- ---------
(118,039)
450,206
- ---------
$ 332,167
=========
|
$ (199,089)
3,555
(17,239)
102,918
0
27,280
0
- ---------
(82,575)
- ---------
12,087
- ---------
12,087
- ---------
(70,488)
456,356
- ---------
$ 385,868
=========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
|
SERIES 9
- -------- |
2003
- ---- |
2002
- ---- |
|
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
Distributions Included in Other Income
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 Period
Cash and Cash Equivalents at End of Period |
$ (217,499)
2,313
(9,613)
156,308
(3,038)
26,723
- ----------
(44,806)
- ----------
8,441
- ---------
8,441
- ---------
(36,365)
260,485
- ----------
$ 224,120
==========
|
$ (278,312)
2,442
(10,513)
225,884
0
23,098
- ----------
(37,401)
- ----------
6,585
- ---------
6,585
- ---------
(30,816)
251,331
- ----------
$ 220,515
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
|
SERIES 10
- -------- |
2003
- ---- |
2002
- ---- |
|
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
Distributions Included in Other Income
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 Period
Cash and Cash Equivalents at End of Period |
$ (179,483)
3,435
(9,472)
140,085
(1,500)
5,791
- ----------
(41,144)
- ----------
14,652
- ----------
14,652
- ----------
(26,492)
251,941
- ----------
$ 225,449
==========
|
$ (166,630)
3,609
(10,146)
133,570
0
2,947
- ----------
(36,650)
- ----------
6,534
- ----------
6,534
- ----------
(30,116)
252,149
- ----------
$ 222,033
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
|
SERIES 11
- -------- |
2003
- ---- |
2002
- ---- |
|
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
Distributions Included in Other Income
Changes in Operating Assets and Liabilities:
Decrease 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 Period
Cash and Cash Equivalents at End of Period |
$ (104,184)
5,049
(11,315)
74,393
(3,167)
(7,856)
- -----------
(47,080)
- -----------
5,554
- ----------
5,554
- -----------
(41,526)
264,198
- -----------
$ 222,672
===========
|
$ (178,438)
6,222
(12,058)
151,500
0
(16,108)
- -----------
(48,882)
- -----------
6,194
- ----------
6,194
- -----------
(42,688)
266,059
- -----------
$ 223,371
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
|
TOTAL SERIES 7 - 11
- ------------------- |
2003
- ---- |
2002
- ---- |
|
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
Distributions Included in Other Income
Changes in Operating Assets and Liabilities:
Increase in Payable to General Partners
Increase in Accounts Receivable
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 Period
Cash and Cash Equivalents at End of Period |
$ (853,551)
18,084
(63,232)
516,833
(28,839)
58,672
(24,220)
- ----------
(376,253)
- ----------
58,103
- ----------
58,103
- ----------
(318,150)
1,616,838
- ----------
$ 1,298,688
==========
|
$(1,028,188)
20,841
(69,258)
731,859
0
49,602
0
- ----------
(295,144)
- ----------
49,475
- ----------
49,475
- ----------
(245,669)
1,610,521
- ----------
$ 1,364,852
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
NOTE 1 - ORGANIZATION:
Gateway Tax Credit Fund III Ltd. ("Gateway"), a Florida Limited Partnership, was formed October 17, 1991 under the laws of Florida. Gateway offered its limited partnership interests in Series. The first Series for Gateway is Series 7. Operations commenced on July 16, 1992 for Series 7, January 4, 1993 for Series 8, September 30, 1993 for Series 9, January 21, 1994 for Series 10 and April 29, 1994 for Series 11. Each Series invests, as a limited partner, in other limited partnerships ("Project Partnerships"), each of which owns and operates apartment complexes eligible for Low-Income Housing Tax Credits ("Tax Credits"), provided for in Section 42 of the Internal Revenue Code of 1986. Gateway will terminate on December 31, 2040 or sooner, in accordance with the terms of the Limited Partnership Agreement. As of December 31, 2003, Gateway had received capital contributions of $1,000 from the General Partners and $36,799,000 from the investor Limited Partners.
Raymond James Partners, Inc. and Raymond James Tax Credit Funds, Inc., wholly-owned subsidiaries of Raymond James Financial, Inc., are the General Partner and Managing General Partner, respectively. The Managing General Partner manages and controls the business of Gateway.
Gateway received capital contributions of $10,395,000, $9,980,000, $6,254,000, $5,043,000 and $5,127,000 from the investor Limited Partners in Series 7, 8, 9, 10 and 11, respectively. Each Series will be treated as though it were a separate partnership, investing in a separate and distinct pool of Project Partnerships. Income or loss and all tax items from the Project Partnerships acquired by each Series will be specifically allocated among the limited partners of such Series.
Operating profits and losses, cash distributions from operations and Tax Credits from each Series are generally allocated 99% to the Limited Partners in that Series and 1% to the General Partners. Profit or loss and cash distributions from sales of property by each Series are allocated as formulated in the Limited Partnership Agreement.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:
Basis of Accounting
Gateway utilizes an accrual basis of accounting whereby revenues are recognized as earned and expenses are recognized as obligations are incurred.
Gateway accounts for its investments as the 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 Statement 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.
Concentrations 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, 1994, 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. Treasury Security Strips) until maturity and to use these reserves to fund Gateway's ongoing operations. Interest income is recognized ratably on the U.S. Treasury Strips using the effective yield to maturity.
Receivable from Project Partnerships
Receivable from Project Partnerships represents amounts due to Gateway from Logan Heights for loans made to the property and expenses paid on behalf of the property.
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.
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, 2003. 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.
Recent Accounting Pronouncements
In August 2001, the Financial Accounting Standards Board issued SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets". SFAS No. 144 provides accounting guidance for financial accounting and reporting for the impairment or disposal of long-lived assets. SFAS No. 144 supersedes SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of". SFAS No. 144 is effective for fiscal years beginning after December 15, 2001. The Partnership adopted SFAS No. 144 effective January 1, 2002. The adoption did not have an effect on the financial position or results of operations of the Partnership.
In January 2003, the FASB issued FASB Interpretation No. 46 ("FIN46"), "Consolidation of Variable Interest Entities, an Interpretation of ARB No. 51." FIN46 requires certain variable interest entities to be consolidated by the primary beneficiary of the entity if the equity investors in the entity do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. FIN46 is effective for all new variable interest entities created or acquired after January 31, 2003. For variable interest entities created or acquired prior to February 1, 2003, the provisions of FIN46 must be applied for the first interim or annual period ending after March 15, 2004. The Partnership is currently evaluating the effect, if any, that the adoption of FIN46 will have on its results of operations and financial condition.
NOTE 3 - INVESTMENT IN SECURITIES:
The December 31, 2003 Balance Sheet includes Investment in Securities consisting of U.S. Treasury Security Strips which represents their cost, plus accreted interest income of $192,950 for Series 7, $169,483 for Series 8, $100,542 for Series 9, $91,282 for Series 10 and $105,714 for Series 11.
| |
Estimated
Market Value
- ----------------- |
Cost Plus
Accreted Interest
- ----------------- |
Gross Unrealized
Gains and (Losses)
- ---------------- |
|
Series 7 |
$ 363,758 |
$ 328,319 |
$ 35,439 |
|
Series 8 |
341,800 |
310,684 |
31,116 |
|
Series 9 |
233,818 |
213,350 |
20,468 |
|
Series 10 |
208,053 |
185,299 |
22,754 |
|
Series 11 |
240,855 |
210,039 |
30,816 |
As of December 31, 2003, the cost and accreted interest of debt securities by contractual maturities is as follows:
| |
Series 7
- -------- |
Series 8
- -------- |
Series 9
- -------- |
|
Due within 1 year |
$ 67,602 |
$ 62,609 |
$ 36,772 |
|
After 1 year through 5 years |
197,306 |
186,649 |
107,942 |
|
After 5 years through 10 years |
63,411 |
61,426 |
68,636 |
|
Total Amount Carried on
Balance Sheet |
$ 328,319
==========
|
$ 310,684
==========
|
$ 213,350
==========
|
|
|
Series 10
- -------- |
Series 11
- -------- |
Total
- -------- |
|
Due within 1 year |
$ 28,000 |
$ 31,798 |
$ 226,781 |
|
After 1 year through 5 years |
80,147 |
92,495 |
664,539 |
|
After 5 years through 10 years |
77,152 |
85,746 |
356,371 |
|
Total Amount Carried on
Balance Sheet |
$ 185,299
==========
|
$ 210,039
==========
|
$1,247,691
==========
|
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.
For the nine months ended December 31, 2003 and 2002 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 receive an annual asset management fee equal to the greater of (i) $2,000 for each limited partnership in which Gateway invests, or (ii) 0.275% of Gateway's gross proceeds from the sale of limited partnership interests. In either event (i) or (ii), the maximum amount may not exceed 0.2% of the aggregate cost (Gateway's capital contribution plus Gateway's share of the Properties' mortgage) of Gateway's interest in properties 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 Statement of Operations.
2003 2002
----- -----
Series 7 $ 65,313 $ 65,547
Series 8 68,046 68,274
Series 9 37,398 37,521
Series 10 25,509 25,587
Series 11 21,390 21,576
-------- --------
Total $217,656 $218,505
======== ========
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 Statement of Operations.
Series 7 $ 44,683 $ 26,316
Series 8 49,265 29,016
Series 9 27,497 16,195
Series 10 17,186 10,121
Series 11 13,749 8,097
-------- --------
Total $ 152,380 $ 89,745
======== ========
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:
As of December 31, 2003, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 39 Project Partnerships which own and operate government assisted multi-family housing complexes. 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 7 |
DECEMBER 31,
2003
- ------------ |
MARCH 31,
2003
- ----------- |
|
Capital Contributions to Project Partnerships 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 |
$ 7,732,089
(6,951,423)
(211,737)
- -----------
568,929
793,335
(184,886)
- ------------
$ 1,177,378
============
|
$ 7,732,089
(6,862,243)
(204,444)
- -----------
665,402
793,335
(179,903)
- ------------
$ 1,278,834
============
|
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $3,169,446 for the period ended December 31, 2003 and cumulative suspended losses of $2,658,435 for the year ended March 31, 2003 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of December 31, 2003, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 43 Project Partnerships which own and operate government assisted multi-family housing complexes. 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 8 |
DECEMBER 31,
2003
- ------------ |
MARCH 31,
2003
- ----------- |
|
Capital Contributions to Project Partnerships 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 |
$ 7,586,105
(7,360,793)
(159,925)
- -----------
65,387
549,773
(115,128)
- ------------
$ 500,032
============
|
$ 7,586,105
(7,303,925)
(158,899)
- -----------
123,281
549,773
(112,823)
- ------------
$ 560,231
============
|
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $3,628,709 for the period ended December 31, 2003 and cumulative suspended losses of $3,065,413 for the year ended March 31, 2003 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of December 31, 2003, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 24 Project Partnerships which own and operate government assisted multi-family housing complexes. 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 9 |
DECEMBER 31,
2003
- ------------ |
MARCH 31,
2003
- ----------- |
|
Capital Contributions to Project Partnerships 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 |
$ 4,914,116
(3,926,705)
(127,558)
- -----------
859,853
244,087
(56,030)
- ------------
$ 1,047,910
============
|
$ 4,914,116
(3,770,400)
(122,154)
- ----------
1,021,562
244,087
(53,716)
- ------------
$ 1,211,933
============
|
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $1,114,752 for the period ended December 31, 2003 and cumulative suspended losses of $925,614 for the year ended March 31, 2003 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of December 31, 2003, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 15 Project Partnerships which own and operate government assisted multi-family housing complexes. 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 10 |
DECEMBER 31,
2003
- ------------ |
MARCH 31,
2003
- ----------- |
|
Capital Contributions to Project Partnerships 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 |
$ 3,914,672
(2,038,227)
(161,797)
- -----------
1,714,648
196,738
(53,318)
- -------------
$ 1,858,068
=============
|
$ 3,914,672
(1,898,143)
(148,645)
- ----------
1,867,884
196,738
(49,880)
- ------------
$ 2,014,742
============
|
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $113,095 for the period ended December 31, 2003 and cumulative suspended losses of $94,384 for the year ended March 31, 2003 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of December 31, 2003, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 12 Project Partnerships which own and operate government assisted multi-family housing complexes. 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 11 |
DECEMBER 31,
2003
- ----------- |
MARCH 31,
2003
- ----------- |
|
Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships
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 |
$ 4,128,042
(1,367,780)
(145,315)
- -----------
2,614,947
290,335
(72,983)
- -----------
$ 2,832,299
============
|
$ 4,128,042
(1,293,389)
(142,928)
- -----------
2,691,725
290,335
(67,930)
- -----------
$ 2,914,130
============
|
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $144,936 for the period ended December 31, 2003 and cumulative suspended losses of $40,610 for the year ended March 31, 2003 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
The following is a summary of Investments in Project Partnerships as of:
|
TOTAL SERIES 7 - 11 |
DECEMBER 31,
2003
- ------------- |
MARCH 31,
2003
- ----------- |
|
Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships
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 |
$28,275,024
(21,644,928)
(806,332)
- ------------
5,823,764
2,074,268
(482,345)
|