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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 June 30, 2004
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 (IRS 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 June 30, 2004
Units of Limited Partnership
Interest: $1,000 per unit 33,799
DOCUMENTS INCORPORATED BY REFERENCE
Parts I and II, 2003 Form 10-K, filed with the
Securities and Exchange Commission on July 13, 2004
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 |
JUNE 30,
2004
- ----------
(Unaudited) |
MARCH 31,
2004
- ---------
(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 June 30, 2004 and March 31, 2004)
General Partners
Total Partners' Equity
Total Liabilities and Partners' Equity |
$ 340,706
69,053
- -----------
409,759
201,351
1,080,460
- -----------
$1,691,570
===========
$ 88,464
- -----------
88,464
- -----------
462,172
- -----------
1,220,803
(79,869)
- -----------
1,140,934
- -----------
$ 1,691,570
===========
|
$ 343,873
67,834
- -----------
411,707
197,682
1,127,941
- -----------
$1,737,330
===========
$ 72,070
- -----------
72,070
- -----------
453,614
- -----------
1,290,808
(79,162)
- -----------
1,211,646
- -----------
$1,737,330
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
SERIES 8 |
JUNE 30,
2004
- ---------
(Unaudited) |
MARCH 31,
2004
- --------
(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 June 30, 2004 and March 31, 2004)
General Partners
Total Partners' Equity
Total Liabilities and Partners' Equity |
$ 366,554
64,362
24,220
- -----------
455,136
192,398
495,593
- -----------
$1,143,127
===========
$ 69,476
- -----------
69,476
- -----------
566,295
- -----------
589,907
(82,551)
- -----------
507,356
- -----------
$1,143,127
===========
|
$ 373,899
63,292
24,220
- -----------
461,411
189,089
512,795
- -----------
$1,163,295
===========
$ 56,210
- -----------
56,210
- -----------
553,708
- -----------
635,468
(82,091)
- -----------
553,377
- -----------
$1,163,295
============
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
SERIES 9 |
JUNE 30,
2004
- ---------
(Unaudited) |
MARCH 31,
2004
- --------
(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 June 30, 2004 and March 31, 2004)
General Partners
Total Partners' Equity
Total Liabilities and Partners' Equity |
$ 245,435
37,591
0
- -----------
283,026
144,546
915,458
- -----------
$1,343,030
===========
$ 29,074
- -----------
29,074
- -----------
370,722
- -----------
988,638
(45,404)
- -----------
943,234
- -----------
$1,343,030
===========
|
$ 248,902
37,028
600
- -----------
286,530
142,308
967,040
- -----------
$1,395,878
===========
$ 24,890
- -----------
24,890
- -----------
360,461
- -----------
1,055,258
(44,731)
- -----------
1,010,527
- -----------
$1,395,878
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
SERIES 10 |
JUNE 30,
2004
- ---------
(Unaudited) |
MARCH 31,
2004
- --------
(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 June 30, 2004 and March 31, 2004)
General Partners
Total Partners' Equity
Total Liabilities and Partners' Equity |
$ 245,729
28,045
- -----------
273,774
134,848
1,774,304
- -----------
$2,182,926
===========
$ 40,211
- -----------
40,211
- -----------
100,748
- -----------
2,065,727
(23,760)
- -----------
2,041,967
- -----------
$2,182,926
===========
|
$ 247,847
27,571
- -----------
275,418
132,500
1,815,475
- -----------
$2,223,393
===========
$ 34,508
- -----------
34,508
- -----------
96,753
- -----------
2,115,390
(23,258)
- -----------
2,092,132
- -----------
$2,223,393
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
SERIES 11 |
JUNE 30,
2004
- ---------
(Unaudited) |
MARCH 31,
2004
- --------
(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 June 30, 2004 and March 31, 2004)
General Partners
Total Partners' Equity
Total Liabilities and Partners' Equity |
$ 244,700
32,572
- -----------
277,272
152,406
2,758,006
- -----------
$3,187,684
===========
$ 47,316
- -----------
47,316
- -----------
916
- -----------
3,154,048
(14,596)
- -----------
3,139,452
- -----------
$3,187,684
===========
|
$ 247,638
31,987
- -----------
279,625
149,592
2,799,412
- -----------
$3,228,629
===========
$ 39,680
- -----------
39,680
- -----------
806
- -----------
3,202,252
(14,109)
- -----------
3,188,143
- -----------
$3,228,629
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
TOTAL SERIES 7 - 11 |
JUNE 30,
2004
- ---------
(Unaudited) |
MARCH 31,
2004
- --------
(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 June 30, 2004 and March 31, 2004)
General Partners
Total Partners' Equity
Total Liabilities and Partners' Equity |
$ 1,443,124
231,623
24,220
- ------------
1,698,967
825,549
7,023,821
- -----------
$ 9,548,337
===========
$ 274,541
- -----------
274,541
- -----------
1,500,853
- -----------
8,019,123
(246,180)
- -----------
7,772,943
- -----------
$ 9,548,337
===========
|
$ 1,462,159
227,712
24,820
- -----------
1,714,691
811,171
7,222,663
- -----------
$ 9,748,525
===========
$ 227,358
- -----------
227,358
- -----------
1,465,342
- -----------
8,299,176
(243,351)
- -----------
8,055,825
- -----------
$ 9,748,525
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
|
SERIES 7 |
2004
- ---- |
2003
- ---- |
|
Revenues:
Interest Income
Other Income
Total Revenues
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 |
$ 5,201
3,413
- -----------
8,614
- -----------
21,687
12,538
2,043
1,661
- -----------
37,929
- -----------
(29,315)
(41,397)
- -----------
$ (70,712)
===========
$ (70,005)
(707)
- -----------
$ (70,712)
===========
$ (6.73)
===========
10,395
===========
|
$ 6,200
1,746
- -----------
7,946
- -----------
21,771
20,905
1,812
1,661
- -----------
46,149
- -----------
(38,203)
(40,000)
- -----------
$ (78,203)
===========
$ (77,421)
(782)
- -----------
$ (78,203)
===========
$ (7.45)
===========
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 JUNE 30,
(Unaudited)
|
SERIES 8 |
2004
- ---- |
2003
- ---- |
|
Revenues:
Interest Income
Other Income
Total Revenues
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 |
$ 4,718
4,521
- -----------
9,239
- -----------
22,578
13,824
1,656
768
- -----------
38,826
- -----------
(29,587)
(16,434)
- -----------
$ (46,021)
===========
$ (45,561)
(460)
- -----------
$ (46,021)
===========
$ (4.57)
===========
9,980
===========
|
$ 5,669
0
- -----------
5,669
- -----------
22,682
23,048
3,330
768
- -----------
49,828
- -----------
(44,159)
(20,608)
- -----------
$ (64,767)
===========
$ (64,119)
(648)
- -----------
$ (64,767)
===========
$ (6.42)
===========
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 JUNE 30,
(Unaudited)
|
SERIES 9 |
2004
- ---- |
2003
- ---- |
|
Revenues:
Interest Income
Other Income
Total Revenues
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 |
$ 3,027
2,438
- -----------
5,465
- -----------
12,428
7,716
1,032
771
- -----------
21,947
- -----------
(16,482)
(50,811)
- -----------
$ (67,293)
===========
$ (66,620)
(673)
- -----------
$ (67,293)
===========
$ (10.65)
===========
6,254
===========
|
$ 3,507
828
- -----------
4,335
- -----------
12,466
12,864
1,211
771
- -----------
27,312
- -----------
(22,977)
(61,035)
- -----------
$ (84,012)
===========
$ (83,172)
(840)
- -----------
$ (84,012)
===========
$ (13.30)
===========
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 JUNE 30,
(Unaudited)
|
SERIES 10 |
2004
- ---- |
2003
- ---- |
|
Revenues:
Interest Income
Other Income
Total Revenues
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
|
$ 3,048
1,380
- -----------
4,428
- -----------
8,472
4,822
880
1,145
- -----------
15,319
- -----------
(10,891)
(39,274)
- -----------
$ (50,165)
===========
$ (49,663)
(502)
- -----------
$ (50,165)
===========
$ (9.85)
===========
5,043
===========
|
$ 3,430
0
- -----------
3,430
- -----------
8,503
8,041
865
1,145
- -----------
18,554
- -----------
(15,124)
(40,309)
- -----------
$ (55,433)
===========
$ (54,879)
(554)
- -----------
$ (55,433)
===========
$ (10.88)
===========
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 JUNE 30,
(Unaudited)
|
SERIES 11 |
2004
- ---- |
2003
- ---- |
|
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:
Limited Partners
General Partners
Net Loss Per Number of Limited Partnership
Units
Number of Limited Partnership Units
Outstanding |
$ 3,625
- -----------
7,063
3,858
790
1,683
- -----------
13,394
- -----------
(9,769)
(38,922)
- -----------
$ (48,691)
===========
$ (48,204)
(487)
- -----------
$ (48,691)
===========
$ (9.40)
===========
5,127
===========
|
$ 4,058
- -----------
7,130
6,433
805
1,683
- -----------
16,051
- -----------
(11,993)
(22,316)
- -----------
$ (34,309)
===========
$ (33,966)
(343)
- -----------
$ (34,309)
===========
$ (6.62)
===========
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 JUNE 30,
(Unaudited)
|
TOTAL SERIES 7 - 11 |
2004
- ---- |
2003
- ---- |
|
Revenues:
Interest Income
Other Income
Total Revenues
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 |
$ 19,619
11,752
- -----------
31,371
- -----------
72,228
42,758
6,401
6,028
- -----------
127,415
- -----------
(96,044)
(186,838)
- -----------
$ (282,882)
===========
$ (280,053)
(2,829)
- -----------
$ (282,882)
===========
|
$ 22,864
2,574
- -----------
25,438
- -----------
72,552
71,291
8,023
6,028
- -----------
157,894
- -----------
(132,456)
(184,268)
- -----------
$ (316,724)
===========
$ (313,557)
(3,167)
- -----------
$ (316,724)
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED JUNE 30, 2004 AND 2003:
|
SERIES 7 |
Limited
Partners
- --------- |
General
Partners
- -------- |
Total
- -----
|
|
Balance at March 31, 2003
Net Loss
Balance at June 30, 2003
Balance at March 31, 2004
Net Loss
Balance at June 30, 2004 |
$ 1,549,556
(77,421)
- -----------
$ 1,472,135
============
$ 1,290,808
(70,005)
- ------------
$ 1,220,803
============ |
$ (76,548)
(782)
- -----------
$ (77,330)
===========
$ (79,162)
(707)
- -----------
$ (79,869)
=========== |
$ 1,473,008
(78,203)
- -----------
$ 1,394,805
============
$ 1,211,646
(70,712)
- -----------
$ 1,140,934
============ |
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED JUNE 30, 2004 AND 2003:
|
SERIES 8 |
Limited
Partners
- --------- |
General
Partners
- -------- |
Total
- ----- |
|
Balance at March 31, 2003
Net Loss
Balance at June 30, 2003
Balance at March 31, 2004
Net Loss
Balance at June 30, 2004
|
$ 810,146
(64,119)
- ------------
$ 746,027
============
$ 635,468
(45,561)
- ------------
$ 589,907
============
|
$ (80,327)
(648)
- -----------
$ (80,975)
===========
$ (82,091)
(460)
- -----------
$ (82,551)
=========== |
$ 729,819
(64,767)
- -----------
$ 665,052
============
$ 553,377
(46,021)
- -----------
$ 507,356
============ |
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED JUNE 30, 2004 AND 2003:
|
SERIES 9 |
Limited
Partners
- --------- |
General
Partners
- -------- |
Total
- ----- |
|
Balance at March 31, 2003
Net Loss
Balance at June 30, 2003
Balance at March 31, 2004
Net Loss
Balance at June 30, 2004
|
$ 1,364,080
(83,172)
- -----------
$ 1,280,908
============
$ 1,055,258
(66,620)
- ------------
$ 988,638
============ |
$ (41,612)
(840)
- -----------
$ (42,452)
============
$ (44,731)
(673)
- -----------
$ (45,404)
=========== |
$ 1,322,468
(84,012)
- -----------
$ 1,238,456
============
$1,010,527
(67,293)
- ------------
$ 943,234
============ |
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED JUNE 30, 2004 AND 2003:
|
SERIES 10 |
Limited
Partners
- --------- |
General
Partners
- -------- |
Total
- ----- |
|
Balance at March 31, 2003
Net Loss
Balance at June 30, 2003
Balance at March 31, 2004
Net Loss
Balance at June 30, 2004
|
$ 2,341,846
(54,879)
- -----------
$ 2,286,967
============
$ 2,115,390
(49,663)
- ------------
$ 2,065,727
============ |
$ (20,971)
(554)
- -----------
$ (21,525)
===========
$ (23,258)
(502)
- -----------
$ (23,760)
=========== |
$ 2,320,875
(55,433)
- -----------
$ 2,265,442
============
$ 2,092,132
(50,165)
- ------------
$ 2,041,967
============ |
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED JUNE 30, 2004 AND 2003:
|
SERIES 11 |
Limited
Partners
- --------- |
General
Partners
- -------- |
Total
- -----
|
|
Balance at March 31, 2003
Net Loss
Balance at June 30, 2003
Balance at March 31, 2004
Net Loss
Balance at June 30, 2004
|
$ 3,344,393
(33,966)
- ------------
$ 3,310,427
============
$ 3,202,252
(48,204)
- ------------
$ 3,154,048
============ |
$ (12,673)
(343)
- -----------
$ (13,016)
===========
$ (14,109)
(487)
- -----------
$ (14,596)
=========== |
$ 3,331,720
(34,309)
- -----------
$ 3,297,411
============
$ 3,188,143
(48,691)
- -----------
$ 3,139,452
============ |
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED JUNE 30, 2004 AND 2003:
|
TOTAL SERIES 7 - 11 |
Limited
Partners
- --------- |
General
Partners
- -------- |
Total
- ----- |
|
Balance at March 31, 2003
Net Loss
Balance at June 30, 2003
Balance at March 31, 2004
Net Loss
Balance at June 30, 2004
|
$ 9,410,021
(313,557)
- ------------
$ 9,096,464
============
$ 8,299,176
(280,053)
- ------------
$ 8,019,123
============
|
$ (232,131)
(3,167)
- -----------
$ (235,298)
===========
$ (243,351)
(2,829)
- -----------
$ (246,180)
===========
|
$ 9,177,890
(316,724)
- -----------
$ 8,861,166
============
$ 8,055,825
(282,882)
- -----------
$ 7,772,943
============
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
|
SERIES 7
- -------- |
2004
- ---- |
2003
- ---- |
|
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
Distribution 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 |
$ (70,712)
1,661
(4,888)
41,397
(3,163)
24,952
- ----------
(10,753)
- ----------
7,586
- ----------
7,586
- ----------
(3,167)
343,873
- ----------
$ 340,706
===========
|
$ (78,203)
1,661
(5,672)
40,000
(1,746)
34,631
- ----------
(9,329)
- ----------
3,259
- ----------
3,259
- ----------
(6,070)
390,008
- ----------
$ 383,938
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
|
SERIES 8
- -------- |
2004
- ---- |
2003
- ---- |
|
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
Distribution Included In Other Income
Changes in Operating Assets and Liabilities:
Increase in Accounts Receivable
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 |
$ (46,021)
768
(4,379)
16,434
(4,521)
0
25,853
- ----------
(11,866)
- ----------
4,521
- ----------
4,521
- ----------
(7,345)
373,899
- -----------
$ 366,554
===========
|
$ (64,767)
768
(5,076)
20,608
0
(22,909)
41,657
- ----------
(29,719)
- ----------
7,286
- ----------
7,286
- ----------
(22,433)
450,206
- -----------
$ 427,773
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
|
SERIES 9
- -------- |
2004
- ---- |
2003
- ---- |
|
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
Distribution Included in Other Income
Changes in Operating Assets and Liabilities:
Decrease in Accounts Receivable
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 |
$ (67,293)
771
(2,801)
50,811
(2,438)
600
14,445
- ----------
(5,905)
- ----------
2,438
- ----------
2,438
- ----------
(3,467)
248,902
- ----------
$ 245,435
===========
|
$ (84,012)
771
(3,154)
61,035
(828)
0
20,357
- ----------
(5,831)
- ----------
2,727
- ----------
2,727
- ----------
(3,104)
260,485
- ----------
$ 257,381
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
|
SERIES 10
- -------- |
2004
- ---- |
2003
- ---- |
|
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
Distribution 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) Increase in Cash and Cash
Equivalents
Cash and Cash Equivalents at Beginning of
Period
Cash and Cash Equivalents at End of Period |
$ (50,165)
1,145
(2,820)
39,274
(1,380)
9,698
- ----------
(4,248)
- ----------
2,130
- ----------
2,130
- ----------
(2,118)
247,847
- ----------
$ 245,729
===========
|
$ (55,433)
1,145
(3,081)
40,309
0
12,856
- ----------
(4,204)
- ----------
12,532
- ----------
12,532
- ----------
8,328
251,941
- ----------
$ 260,269
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
|
SERIES 11
- -------- |
2004
- ---- |
2003
- ---- |
|
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
Period
Cash and Cash Equivalents at End of Period |
$ (48,691)
1,683
(3,400)
38,922
7,746
- ----------
(3,740)
- ----------
802
- ----------
802
- ----------
(2,938)
247,638
- ----------
$ 244,700
===========
|
$ (34,309)
1,683
(3,703)
22,316
10,225
- ----------
(3,788)
- ----------
1,789
- ----------
1,789
- ----------
(1,999)
264,198
- ----------
$ 262,199
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
|
TOTAL SERIES 7 - 11
- ------------------- |
2004
- ---- |
2003
- ---- |
|
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
Distribution Included in Other Income
Changes in Operating Assets and Liabilities:
Decrease (Increase) in Accounts Receivable
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 |
$ (282,882)
6,028
(18,288)
186,838
(11,502)
600
82,694
- ----------
(36,512)
- ----------
17,477
- ----------
17,477
- ----------
(19,035)
1,462,159
- ----------
$1,443,124
===========
|
$ (316,724)
6,028
(20,686)
184,268
(2,574)
(22,909)
119,726
- ----------
(52,871)
- ----------
27,593
- ----------
27,593
- ----------
(25,278)
1,616,838
- ----------
$1,591,560
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
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 June 30, 2004, 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
selecting properties for acquisition, and
3) Acquisition expenses including legal fees, travel and other
miscellaneous costs relating to acquiring properties.
Quarterly the Investments in Project Partnerships are increased or decreased as follows:
1) Increased for equity in income or decreased for equity in losses of
the Project Partnerships,
2) Decreased for cash distributions received from the Project
Partnerships, and
3) Decreased for the amortization of the acquisition fees and
expenses.
Amortization is calculated on a straight-line basis over 35 years, as this is the average estimated useful life of the underlying assets. The amortization is shown as amortization expense on the Statements of Operations.
Pursuant to the limited partnership agreements for the Project Partnerships, cash losses generated by the Project Partnerships are allocated to the general partners of those partnerships. In subsequent years, cash profits, if any, are first allocated to the general partners to the extent of the allocation of prior years' cash losses.
Since Gateway invests as a limited partner, and therefore is not obligated to fund losses or make additional capital contributions, it does not recognize losses from individual Project Partnerships to the extent that these losses would reduce the investment in those Project Partnerships below zero. The suspended losses will be used to offset future income from the individual Project Partnerships.
Gateway reviews its investments in Project Partnerships to determine if there has been any permanent impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. If the sum of the expected future cash flows is less than the carrying amount of the investment, Gateway recognizes an impairment loss. No impairment loss has been recognized in the accompanying financial statements.
Gateway, as a limited partner in the Project Partnerships, is subject to risks inherent in the ownership of property which are beyond its control, such as fluctuations in occupancy rates and operating expenses, variations in rental schedules, proper maintenance and continued eligibility of tax credits. If the cost of operating a property exceeds the rental income earned thereon, Gateway may deem it in its best interest to voluntarily provide funds in order to protect its investment. Gateway does not guarantee any of the mortgages or other debt of the Project Partnerships.
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.
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 2002 and 2003 figures have been reclassified, where appropriate, to conform with the financial statement presentation used in 2004.
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 beginning after December 15, 2004. The Partnership does not feel that there will be any effects on its results of operations as a result of the adoption of FIN46. Prior to the effective date of FIN 46, Ga
teway is required to disclose its maximum exposure to economic and financial statement losses as a result of its involvement with variable interest entities. Gateway's exposure to these losses is limited to its investment in the Project Partnerships which is $7,023,821 at June 30, 2004.
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, 2004. 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 June 30, 2004 Balance Sheets include Investment in Securities consisting of U.S. Treasury Security Strips which represents their cost, plus accreted interest income of $156,363 for Series 7, $139,122 for Series 8, $87,973 for Series 9, $83,914 for Series 10 and $97,833 for Series 11.
| |
Estimated Market
Value
- ---------------- |
Cost Plus
Accreted Interest
- ---------------- |
Gross Unrealized
Gains and (Losses)
- ---------------- |
|
Series 7 |
$ 295,784 |
$ 270,404 |
$ 25,380 |
|
Series 8 |
278,816 |
256,760 |
22,056 |
|
Series 9 |
196,719 |
182,137 |
14,582 |
|
Series 10 |
179,920 |
162,893 |
17,027 |
|
Series 11 |
208,702 |
184,978 |
23,724 |
As of June 30, 2004, the cost and accreted interest of debt securities by contractual maturities is as follows:
| |
Series 7
- -------- |
Series 8
- -------- |
Series 9
- -------- |
|
Due within 1 year |
$ 69,053 |
$ 64,362 |
$ 37,591 |
|
After 1 year through 5 years |
201,351 |
192,398 |
144,546 |
| |
--------- |
--------- |
--------- |
|
Total Amount Carried on
Balance Sheet |
$ 270,404
=========
|
$ 256,760
=========
|
$ 182,137
=========
|
| |
Series 10
- -------- |
Series 11
- -------- |
Total
- -------- |
|
Due within 1 year |
$ 28,045 |
$ 32,572 |
$ 231,623 |
|
After 1 year through 5 years |
134,848 |
152,406 |
825,549 |
| |
--------- |
--------- |
--------- |
|
Total Amount Carried on
Balance Sheet |
$ 162,893
=========
|
$ 184,978
=========
|
$1,057,172
==========
|
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 three months ended June 30, 2004 and 2003, 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.
2004 2003
----- -----
Series 7 $ 21,687 $ 21,771
Series 8 22,578 22,682
Series 9 12,428 12,466
Series 10 8,472 8,503
Series 11 7,063 7,130
-------- --------
Total $ 72,228 $ 72,552
======== ========
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 $ 12,538 $ 20,905
Series 8 13,824 23,048
Series 9 7,716 12,864
Series 10 4,822 8,041
Series 11 3,858 6,433
-------- --------
Total $ 42,758 $ 71,291
======== ========
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:
As of June 30, 2004, 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 |
JUNE 30, 2004
- ------------- |
MARCH 31, 2004
- ---------- |
|
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
(7,033,917)
(222,840)
- -----------
475,332
793,335
(188,207)
- -----------
$ 1,080,460
============
|
$ 7,732,089
(6,992,520)
(218,417)
- -----------
521,152
793,335
(186,546)
- -----------
$ 1,127,941
===========
|
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $3,565,712 for the period ended June 30, 2004 and cumulative suspended losses of $3,469,144 for the year ended March 31, 2004 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of June 30, 2004, 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 |
JUNE 30, 2004
- ------------ |
MARCH 31, 2004
- ----------- |
|
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
(7,359,794)
(163,827)
- -----------
62,484
549,773
(116,664)
- -----------
$ 495,593
===========
|
$ 7,586,105
(7,343,360)
(163,828)
- -----------
78,917
549,773
(115,895)
- -----------
$ 512,795
===========
|
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $4,169,168 for the period ended June 30, 2004 and cumulative suspended losses of $4,002,763 for the year ended March 31, 2004 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of June 30, 2004, 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 |
JUNE 30, 2004
- ------------ |
MARCH 31, 2004
- ----------- |
|
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
(4,051,499)
(133,676)
- -----------
728,941
244,087
(57,570)
- -----------
$ 915,458
============
|
$ 4,914,116
(4,000,688)
(133,676)
- -----------
779,752
244,087
(56,799)
- -----------
$ 967,040
============
|
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $1,273,363 for the period ended June 30, 2004 and cumulative suspended losses of $1,226,519 for the year ended March 31, 2004 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of June 30, 2004, 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 |
JUNE 30, 2004
- -------------- |
MARCH 31, 2004
- ----------- |
|
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
(2,113,044)
(168,456)
- -----------
1,633,172
196,738
(55,606)
- -----------
$ 1,774,304
============
|
$ 3,914,672
(2,073,769)
(167,705)
- -----------
1,673,198
196,738
(54,461)
- -----------
$ 1,815,475
============
|
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $135,379 for the period ended June 30, 2004 and cumulative suspended losses of $132,431 for the year ended March 31, 2004 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of June 30, 2004, 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 |
JUNE 30, 2004
- ------------- |
MARCH 31, 2004
- ----------- |
|
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 |
$ 4,128,042
(1,433,918)
(150,110)
- -----------
2,544,014
290,335
(76,343)
- -----------
$ 2,758,006
============
|
$ 4,128,042
(1,394,995)
(149,310)
- -----------
2,583,737
290,335
(74,660)
- -----------
$ 2,799,412
============
|
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $225,053 for the period June 30, 2004 and cumulative suspended losses of $208,165 for the year ended March 31, 2004 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 |
JUNE 30, 2004
- ------------- |
MARCH 31, 2004
- ----------- |
|
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 |
$ 28,275,024
(21,992,172)
(838,909)
- -----------
5,443,943
2,074,268
(494,390)
- -----------
$ 7,023,821
============
|
$ 28,275,024
(21,805,332)
(832,936)
- ------------
5,636,756
2,074,268
(488,361)
- ------------
$ 7,222,663
=============
|
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 March 31, of each year:
|
SERIES 7 |
2004
- ---- |
2003
- ---- |
|
SUMMARIZED BALANCE SHEETS
Assets:
Current assets
Investment properties, net
Other assets
Total assets
Liabilities and Partners' Equity:
Current liabilities
Long-term debt
Total liabilities
Partners' equity
Limited Partner
General Partners
Total Partners' equity
Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
Operating expenses
Interest expense
Depreciation and amortization
Total expenses
Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships |
$ 3,802,904
29,561,940
14,257
- ------------
$33,379,102
============
$ 849,233
36,002,235
- ------------
36,851,469
- ------------
(3,215,908)
(256,459)
- ------------
(3,472,367)
- ------------
$33,379,102
============
$ 1,195,047
- ------------
765,694
202,064
366,647
- ------------
1,334,405
- ------------
$ (139,358)
============
$ (1,393)
============
$ (137,965)
96,568
- ------------
$ (41,397)
============
|
$ 3,625,745
30,776,059
64,657
- ------------
$34,466,461
============
$ 878,035
36,119,409
- ------------
36,997,444
- ------------
(2,318,477
(212,506)
- ------------
(2,530,983)
- ------------
$34,466,461
============
$ 1,144,807
- ------------
789,301
205,513
366,647
- ------------
1,361,461
- ------------
$ (216,654)
============
$ (2,167)
============
$ (214,487)
174,487
- ------------
$ (40,000)
============
|
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 March 31, of each year:
|
SERIES 8 |
2004
- ---- |
2003
- ---- |
|
SUMMARIZED BALANCE SHEETS
Assets:
Current assets
Investment properties, net
Other assets
Total assets
Liabilities and Partners' Equity:
Current liabilities
Long-term debt
Total liabilities
Partners' equity
Limited Partner
General Partners
Total Partners' equity
Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
Operating expenses
Interest expense
Depreciation and amortization
Total expenses
Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships |
$ 3,529,896
30,938,418
55,210
- ------------
$34,523,524
============
$ 1,169,197
37,949,865
- ------------
39,119,062
- ------------
(3,945,106)
(650,433)
- ------------
(4,595,539)
- ------------
$34,523,524
============
$ 1,183,272
- ------------
757,957
216,245
394,506
- ------------
1,368,708
- ------------
$ (185,436)
============
$ (2,597)
============
$ (182,839)
166,405
- ------------
$ (16,434)
============
|
$ 3,308,519
32,440,252
61,423
- ------------
$35,810,194
============
$ 1,175,358
38,150,126
- ------------
39,325,484
- ------------
(3,001,419)
(513,871)
- ------------
(3,515,290)
- ------------
$35,810,194
============
$ 1,138,250
- ------------
768,708
219,598
394,506
- ------------
1,382,812
- ------------
$ (244,562)
============
$ (3,204)
============
$ (241,358)
220,750
- ------------
$ (20,608)
============
|
(1) An affiliate of the General Partner is the operating general partner in one of the Project Partnerships included above. The Project Partnership has total assets of $600,120, total liabilities of $829,097, Gateway equity of ($112,858), other partners equity of ($116,119), total revenue of $16,545, and net loss of $7,663. The Project Partnership was not a related party as of December 31, 2002 and 2001.
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 March 31, of each year:
|
SERIES 9 |
2004
- ---- |
2003
- ---- |
|
SUMMARIZED BALANCE SHEETS
Assets:
Current assets
Investment properties, net
Other assets
Total assets
Liabilities and Partners' Equity:
Current liabilities
Long-term debt
Total liabilities
Partners' equity
Limited Partner
General Partners
Total Partners' equity
Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
Operating expenses
Interest expense
Depreciation and amortization
Total expenses
Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships |
$ 1,871,020
17,724,136
4,293
- ------------
$19,599,440
============
$ 314,404
20,142,793
- ------------
20,457,197
- ------------
(582,886)
(274,862)
- ------------
(857,748)
- ------------
$19,599,449
============
$ 607,307
- ------------
383,475
114,389
208,085
- ------------
705,949
- ------------
$ (98,642)
============
$ (987)
============
$ (97,655)
46,844
- ------------
$ (50,811)
============
|
$ 1,729,014
18,505,824
7,087
- ------------
$20,241,925
============
$ 319,277
20,232,258
- ------------
20,551,535
- -----------
(67,715)
(241,895)
- ------------
(309,610)
- ------------
$20,241,925
============
$ 586,230
- ------------
391,754
15,347
208,167
- ------------
715,268
- ------------
$ (129,038)
============
$ (1,290)
============
$ (127,748)
66,713
- ------------
$ (61,035)
============
|
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 March 31, of each year:
|
SERIES 10 |
2004
- ---- |
2003
- ---- |
|
SUMMARIZED BALANCE SHEETS
Assets:
Current assets
Investment properties, net
Other assets
Total assets
Liabilities and Partners' Equity:
Current liabilities
Long-term debt
Total liabilities
Partners' equity
Limited Partner
General Partners
Total Partners' equity
Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
Operating expenses
Interest expense
Depreciation and amortization
Total expenses
Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships
|
$ 1,697,171
12,912,666
5,952
- ------------
$14,615,789
============
$ 294,247
13,161,837
- ------------
13,456,084
- ------------
1,495,837
(336,132)
- ------------
1,159,705
- ------------
$14,615,789
============
$ 413,022
- ------------
268,134
63,450
124,109
- ------------
455,693
- ------------
$ (42,671)
============
$ (449)
============
$ (42,222)
2,948
- ------------
$ (39,274)
============
|
$ 1,572,647
13,349,436
5,970
- ------------
$14,928,053
============
$ 276,665
13,214,770
- ------------
13,491,435
- ------------
1,726,381
(289,763)
- ------------
1,436,618
- ------------
$14,928,053
============
$ 400,108
- ------------
258,633
64,382
124,110
- ------------
447,125
- ------------
$ (47,017)
============
$ (653)
============
$ (46,364)
6,055
- ------------
$ (40,309)
============
|
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 March 31, of each year:
|
SERIES 11 |
2004
- ----
|
2003
- ----
|
|
SUMMARIZED BALANCE SHEETS
Assets:
Current assets
Investment properties, net
Other assets
Total assets
Liabilities and Partners' Equity:
Current liabilities
Long-term debt
Total liabilities
Partners' equity
Limited Partner
General Partners
Total Partners' equity
Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
Operating expenses
Interest expense
Depreciation and amortization
Total expenses
Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships |
$ 1,249,823
11,140,677
60,575
- ------------
$12,451,075
============
$ 252,045
10,099,725
- ------------
10,351,770
- ------------
2,329,175
(229,871)
- ------------
2,099,305
- ------------
$12,451,075
============
$ 389,383
- ------------
261,796
57,783
128,838
- ------------
448,417
- ------------
$ (59,034)
============
$ (3,224)
============
$ (55,810)
16,888
- ------------
$ (38,922)
============
|
$ 1,215,093
11,568,289
123,167
- ------------
$12,906,549
============
$ 298,685
10,172,837
- ------------
10,471,522
- ------------
2,631,924
(196,897)
- ------------
2,435,027
- ------------
$12,906,549
============
$ 404,734
- ------------
248,857
58,451
128,838
- ------------
436,146
- ------------
$ (31,412)
============
$ 1,133
============
$ (32,545)
10,229
- ------------
$ (22,316)
============
|
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 March 31, of each year:
|
TOTAL SERIES 7 - 11 |
2004
- ---- |
2003
- ---- |
|
SUMMARIZED BALANCE SHEETS
Assets:
Current assets
Investment properties, net
Other assets
Total assets
Liabilities and Partners' Equity:
Current liabilities
Long-term debt
Total liabilities
Partners' equity
Limited Partner
General Partners
Total Partners' equity
Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses: |