Exhibit 13
FINANCIAL STATEMENTS AND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
BOSTON CAPITAL TAX CREDIT FUND III
LIMITED PARTNERSHIP -
SERIES 15 THROUGH SERIES 19
MARCH 31, 2016 AND 2015
Boston Capital Tax Credit Fund III Limited Partnership
Series 15 through Series 19
TABLE OF CONTENTS
PAGE | ||
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | F-3 | |
FINANCIAL STATEMENTS | ||
BALANCE SHEETS | F-4 | |
STATEMENTS OF OPERATIONS | F-10 | |
STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) | F-16 | |
STATEMENTS OF CASH FLOWS | F-22 | |
NOTES TO FINANCIAL STATEMENTS | F-28 |
Schedules not listed are omitted because of the absence of the conditions under which they are required or because the information is included in the financial statements or the notes thereto.
Report of Independent Registered Public Accounting Firm
To the Partners
Boston Capital Tax Credit Fund III Limited Partnership
We have audited the accompanying balance sheets of Boston Capital Tax Credit Fund III Limited Partnership - Series 15 through Series 19 (the "Partnership"), in total and for each series, as of March 31, 2016 and 2015, and the related statements of operations, partners' capital (deficit) and cash flows for the total Partnership and for each series for each of the years in the two-year period ended March 31, 2016. The Partnership's management is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnership's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Boston Capital Tax Credit Fund III Limited Partnership - Series 15 through Series 19, in total and for each series, as of March 31, 2016 and 2015, and the results of its operations and its cash flows for the total Partnership and for each series for each of the years in the two-year period ended March 31, 2016, in conformity with accounting principles generally accepted in the United States of America.
/s/ CohnReznick LLP | |
COHNREZNICK LLP | |
Bethesda, Maryland | |
June 23, 2016 |
F-3 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
March 31, 2016 and 2015
Total | ||||||||
2016 | 2015 | |||||||
ASSETS | ||||||||
OTHER ASSETS | ||||||||
Cash and cash equivalents | $ | 1,783,433 | $ | 2,523,234 | ||||
Other assets | - | 357,489 | ||||||
$ | 1,783,433 | $ | 2,880,723 | |||||
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT) | ||||||||
LIABILITIES | ||||||||
Accounts payable and accrued expenses | $ | 60,728 | $ | 28,234 | ||||
Accounts payable - affiliates | 15,273,764 | 16,781,463 | ||||||
Capital contributions payable | 76,455 | 76,455 | ||||||
15,410,947 | 16,886,152 | |||||||
PARTNERS’ CAPITAL (DEFICIT) | ||||||||
Assignor limited partner | ||||||||
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 21,996,102 issued to the assignees at March 31, 2016 and 2015 | - | - | ||||||
Limited partners | ||||||||
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 21,996,102 issued and 21,902,747 and 21,936,787 outstanding at March 31, 2016 and 2015, respectively | (11,735,510 | ) | (12,054,726 | ) | ||||
General partner | (1,892,004 | ) | (1,950,703 | ) | ||||
(13,627,514 | ) | (14,005,429 | ) | |||||
$ | 1,783,433 | $ | 2,880,723 |
(continued)
F-4 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
BALANCE SHEETS - CONTINUED
March 31, 2016 and 2015
Series 15 | ||||||||
2016 | 2015 | |||||||
ASSETS | ||||||||
OTHER ASSETS | ||||||||
Cash and cash equivalents | $ | 116,858 | $ | 414,859 | ||||
Other assets | - | - | ||||||
$ | 116,858 | $ | 414,859 | |||||
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT) | ||||||||
LIABILITIES | ||||||||
Accounts payable and accrued expenses | $ | 12,744 | $ | 6,246 | ||||
Accounts payable - affiliates | 3,004,401 | 3,695,825 | ||||||
Capital contributions payable | - | - | ||||||
3,017,145 | 3,702,071 | |||||||
PARTNERS’ CAPITAL (DEFICIT) | ||||||||
Assignor limited partner | ||||||||
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 3,870,500 issued to the assignees at March 31, 2016 and 2015 | - | - | ||||||
Limited partners | ||||||||
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,870,500 issued 3,848,900 and 3,858,400 outstanding at March 31, 2016 and 2015, respectively | (2,549,095 | ) | (2,932,151 | ) | ||||
General partner | (351,192 | ) | (355,061 | ) | ||||
(2,900,287 | ) | (3,287,212 | ) | |||||
$ | 116,858 | $ | 414,859 |
(continued)
F-5 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
BALANCE SHEETS - CONTINUED
March 31, 2016 and 2015
Series 16 | ||||||||
2016 | 2015 | |||||||
ASSETS | ||||||||
OTHER ASSETS | ||||||||
Cash and cash equivalents | $ | 381,450 | $ | 221,108 | ||||
Other assets | - | - | ||||||
$ | 381,450 | $ | 221,108 | |||||
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT) | ||||||||
LIABILITIES | ||||||||
Accounts payable and accrued expenses | $ | 10,987 | $ | 4,488 | ||||
Accounts payable - affiliates | 8,130,679 | 8,036,400 | ||||||
Capital contributions payable | 50,008 | 50,008 | ||||||
8,191,674 | 8,090,896 | |||||||
PARTNERS’ CAPITAL (DEFICIT) | ||||||||
Assignor limited partner | ||||||||
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 5,429,402 issued to the assignees at March 31, 2016 and 2015 | - | - | ||||||
Limited partners | ||||||||
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,429,402 issued and 5,404,500 and 5,411,800 outstanding at March 31, 2016 and 2015, respectively | (7,265,514 | ) | (7,324,482 | ) | ||||
General partner | (544,710 | ) | (545,306 | ) | ||||
(7,810,224 | ) | (7,869,788 | ) | |||||
$ | 381,450 | $ | 221,108 |
(continued)
F-6 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
BALANCE SHEETS - CONTINUED
March 31, 2016 and 2015
Series 17 | ||||||||
2016 | 2015 | |||||||
ASSETS | ||||||||
OTHER ASSETS | ||||||||
Cash and cash equivalents | $ | 640,398 | $ | 197,779 | ||||
Other assets | - | 2,200 | ||||||
$ | 640,398 | $ | 199,979 | |||||
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT) | ||||||||
LIABILITIES | ||||||||
Accounts payable and accrued expenses | $ | 16,499 | $ | 10,000 | ||||
Accounts payable - affiliates | - | 685,587 | ||||||
Capital contributions payable | 7,893 | 7,893 | ||||||
24,392 | 703,480 | |||||||
PARTNERS’ CAPITAL (DEFICIT) | ||||||||
Assignor limited partner | ||||||||
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 5,000,000 issued to the assignees at March 31, 2016 and 2015 | - | - | ||||||
Limited partners | ||||||||
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,000,000 issued 4,972,947 and 4,980,687 outstanding at March 31, 2016 and 2015, respectively | 982,053 | (81,517 | ) | |||||
General partner | (366,047 | ) | (421,984 | ) | ||||
616,006 | (503,501 | ) | ||||||
$ | 640,398 | $ | 199,979 |
(continued)
F-7 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
BALANCE SHEETS - CONTINUED
March 31, 2016 and 2015
Series 18 | ||||||||
2016 | 2015 | |||||||
ASSETS | ||||||||
OTHER ASSETS | ||||||||
Cash and cash equivalents | $ | 353,832 | $ | 306,518 | ||||
Other assets | - | 355,289 | ||||||
$ | 353,832 | $ | 661,807 | |||||
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT) | ||||||||
LIABILITIES | ||||||||
Accounts payable and accrued expenses | $ | 6,499 | $ | - | ||||
Accounts payable - affiliates | 4,138,684 | 4,363,651 | ||||||
Capital contributions payable | 18,554 | 18,554 | ||||||
4,163,737 | 4,382,205 | |||||||
PARTNERS’ CAPITAL (DEFICIT) | ||||||||
Assignor limited partner | ||||||||
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 3,616,200 issued to the assignees at March 31, 2016 and 2015 | - | - | ||||||
Limited partners | ||||||||
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,616,200 issued 3,605,200 and 3,612,200 outstanding at March 31, 2016 and 2015, respectively | (3,461,578 | ) | (3,372,966 | ) | ||||
General partner | (348,327 | ) | (347,432 | ) | ||||
(3,809,905 | ) | (3,720,398 | ) | |||||
$ | 353,832 | $ | 661,807 |
(continued)
F-8 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
BALANCE SHEETS - CONTINUED
March 31, 2016 and 2015
Series 19 | ||||||||
2016 | 2015 | |||||||
ASSETS | ||||||||
OTHER ASSETS | ||||||||
Cash and cash equivalents | $ | 290,895 | $ | 1,382,970 | ||||
Other assets | - | - | ||||||
$ | 290,895 | $ | 1,382,970 | |||||
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT) | ||||||||
LIABILITIES | ||||||||
Accounts payable and accrued expenses | $ | 13,999 | $ | 7,500 | ||||
Accounts payable - affiliates | - | - | ||||||
Capital contributions payable | - | - | ||||||
13,999 | 7,500 | |||||||
PARTNERS’ CAPITAL (DEFICIT) | ||||||||
Assignor limited partner | ||||||||
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 4,080,000 issued to the assignees at March 31, 2016 and 2015 | - | - | ||||||
Limited partners | ||||||||
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 4,080,000 issued 4,071,200 and 4,073,700 outstanding at March 31, 2016 and 2015, respectively | 558,624 | 1,656,390 | ||||||
General partner | (281,728 | ) | (280,920 | ) | ||||
276,896 | 1,375,470 | |||||||
$ | 290,895 | $ | 1,382,970 |
See notes to financial statements
F-9 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
Years ended March 31, 2016 and 2015
Total | ||||||||
2016 | 2015 | |||||||
Income | ||||||||
Interest income | $ | 8,297 | $ | 4,073 | ||||
Other income | 60,748 | 35,525 | ||||||
Total income | 69,045 | 39,598 | ||||||
Share of income from operating limited partnerships | 6,416,089 | 3,170,953 | ||||||
Expenses | ||||||||
Professional fees | 243,551 | 148,554 | ||||||
Partnership management fee | 248,919 | 360,887 | ||||||
General and administrative expenses | 122,754 | 105,035 | ||||||
615,224 | 614,476 | |||||||
NET INCOME (LOSS) | $ | 5,869,910 | $ | 2,596,075 | ||||
Net income (loss) allocated to general partner | $ | 58,699 | $ | 25,961 | ||||
Net income (loss) allocated to limited partners | $ | 5,811,211 | $ | 2,570,114 | ||||
Net income (loss) per BAC | $ | 0.27 | $ | 0.12 |
(continued)
F-10 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
STATEMENTS OF OPERATIONS - CONTINUED
Years ended March 31, 2016 and 2015
Series 15 | ||||||||
2016 | 2015 | |||||||
Income | ||||||||
Interest income | $ | 831 | $ | 601 | ||||
Other income | 321 | 321 | ||||||
Total income | 1,152 | 922 | ||||||
Share of income from operating limited partnerships | 465,691 | 700,342 | ||||||
Expenses | ||||||||
Professional fees | 91,209 | 29,830 | ||||||
Partnership management fee | (34,839 | ) | 60,456 | |||||
General and administrative expenses | 23,548 | 20,017 | ||||||
79,918 | 110,303 | |||||||
NET INCOME (LOSS) | $ | 386,925 | $ | 590,961 | ||||
Net income (loss) allocated to general partner | $ | 3,869 | $ | 5,910 | ||||
Net income (loss) allocated to limited partners | $ | 383,056 | $ | 585,051 | ||||
Net income (loss) per BAC | $ | 0.10 | $ | 0.15 |
(continued)
F-11 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
STATEMENTS OF OPERATIONS - CONTINUED
Years ended March 31, 2016 and 2015
Series 16 | ||||||||
2016 | 2015 | |||||||
Income | ||||||||
Interest income | $ | 648 | $ | 503 | ||||
Other income | 401 | 861 | ||||||
Total income | 1,049 | 1,364 | ||||||
Share of income from operating limited partnerships | 243,000 | 254,999 | ||||||
Expenses | ||||||||
Professional fees | 44,634 | 35,237 | ||||||
Partnership management fee | 110,286 | 192,900 | ||||||
General and administrative expenses | 29,565 | 24,941 | ||||||
184,485 | 253,078 | |||||||
NET INCOME (LOSS) | $ | 59,564 | $ | 3,285 | ||||
Net income (loss) allocated to general partner | $ | 596 | $ | 33 | ||||
Net income (loss) allocated to limited partners | $ | 58,968 | $ | 3,252 | ||||
Net income (loss) per BAC | $ | 0.01 | $ | 0.00 |
(continued)
F-12 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
STATEMENTS OF OPERATIONS - CONTINUED
Years ended March 31, 2016 and 2015
Series 17 | ||||||||
2016 | 2015 | |||||||
Income | ||||||||
Interest income | $ | 4,537 | $ | 789 | ||||
Other income | 20,320 | 4,080 | ||||||
Total income | 24,857 | 4,869 | ||||||
Share of income from operating limited partnerships | 5,692,104 | 1,138,960 | ||||||
Expenses | ||||||||
Professional fees | 35,996 | 34,927 | ||||||
Partnership management fee | 61,150 | 156,575 | ||||||
General and administrative expenses | 26,113 | 21,632 | ||||||
123,259 | 213,134 | |||||||
NET INCOME (LOSS) | $ | 5,593,702 | $ | 930,695 | ||||
Net income (loss) allocated to general partner | $ | 55,937 | $ | 9,307 | ||||
Net income (loss) allocated to limited partners | $ | 5,537,765 | $ | 921,388 | ||||
Net income (loss) per BAC | $ | 1.11 | $ | 0.18 |
(continued)
F-13 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
STATEMENTS OF OPERATIONS - CONTINUED
Years ended March 31, 2016 and 2015
Series 18 | ||||||||
2016 | 2015 | |||||||
Income | ||||||||
Interest income | $ | 484 | $ | 418 | ||||
Other income | 39,558 | 30,180 | ||||||
Total income | 40,042 | 30,598 | ||||||
Share of income from operating limited partnerships | 15,294 | 571,930 | ||||||
Expenses | ||||||||
Professional fees | 43,022 | 27,332 | ||||||
Partnership management fee | 80,498 | 67,583 | ||||||
General and administrative expenses | 21,323 | 17,977 | ||||||
144,843 | 112,892 | |||||||
NET INCOME (LOSS) | $ | (89,507 | ) | $ | 489,636 | |||
Net income (loss) allocated to general partner | $ | (895 | ) | $ | 4,896 | |||
Net income (loss) allocated to limited partners | $ | (88,612 | ) | $ | 484,740 | |||
Net income (loss) per BAC | $ | (0.02 | ) | $ | 0.13 |
(continued)
F-14 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
STATEMENTS OF OPERATIONS - CONTINUED
Years ended March 31, 2016 and 2015
Series 19 | ||||||||
2016 | 2015 | |||||||
Income | ||||||||
Interest income | $ | 1,797 | $ | 1,762 | ||||
Other income | 148 | 83 | ||||||
Total income | 1,945 | 1,845 | ||||||
Share of income from operating limited partnerships | - | 504,722 | ||||||
Expenses | ||||||||
Professional fees | 28,690 | 21,228 | ||||||
Partnership management fee | 31,824 | (116,627 | ) | |||||
General and administrative expenses | 22,205 | 20,468 | ||||||
82,719 | (74,931 | ) | ||||||
NET INCOME (LOSS) | $ | (80,774 | ) | $ | 581,498 | |||
Net income (loss) allocated to general partner | $ | (808 | ) | $ | 5,815 | |||
Net income (loss) allocated to limited partners | $ | (79,966 | ) | $ | 575,683 | |||
Net income (loss) per BAC | $ | (0.02 | ) | $ | 0.14 |
See notes to financial statements
F-15 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)
Years ended March 31, 2016 and 2015
Limited | General | |||||||||||
Total | partners | partner | Total | |||||||||
Partners’ capital (deficit), March 31, 2014 | $ | (14,624,840 | ) | $ | (1,976,664 | ) | $ | (16,601,504 | ) | |||
Net income (loss) | 2,570,114 | 25,961 | 2,596,075 | |||||||||
Partners’ capital (deficit), March 31, 2015 | (12,054,726 | ) | (1,950,703 | ) | (14,005,429 | ) | ||||||
Distributions to partners | (5,491,995 | ) | - | (5,491,995 | ) | |||||||
Net income (loss) | 5,811,211 | 58,699 | 5,869,910 | |||||||||
Partners’ capital (deficit), March 31, 2016 | $ | (11,735,510 | ) | $ | (1,892,004 | ) | $ | (13,627,514 | ) |
(continued)
F-16 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) - CONTINUED
Years ended March 31, 2016 and 2015
Limited | General | |||||||||||
Series 15 | partners | partner | Total | |||||||||
Partners’ capital (deficit), March 31, 2014 | $ | (3,517,202 | ) | $ | (360,971 | ) | $ | (3,878,173 | ) | |||
Net income (loss) | 585,051 | 5,910 | 590,961 | |||||||||
Partners’ capital (deficit), March 31, 2015 | (2,932,151 | ) | (355,061 | ) | (3,287,212 | ) | ||||||
Distributions to partners | - | - | - | |||||||||
Net income (loss) | 383,056 | 3,869 | 386,925 | |||||||||
Partners’ capital (deficit), March 31, 2016 | $ | (2,549,095 | ) | $ | (351,192 | ) | $ | (2,900,287 | ) |
(continued)
F-17 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) - CONTINUED
Years ended March 31, 2016 and 2015
Limited | General | |||||||||||
Series 16 | partners | partner | Total | |||||||||
Partners’ capital (deficit), March 31, 2014 | $ | (7,327,734 | ) | $ | (545,339 | ) | $ | (7,873,073 | ) | |||
Net income (loss) | 3,252 | 33 | 3,285 | |||||||||
Partners’ capital (deficit), March 31, 2015 | (7,324,482 | ) | (545,306 | ) | (7,869,788 | ) | ||||||
Distributions to partners | - | - | - | |||||||||
Net income (loss) | 58,968 | 596 | 59,564 | |||||||||
Partners’ capital (deficit), March 31, 2016 | $ | (7,265,514 | ) | $ | (544,710 | ) | $ | (7,810,224 | ) |
(continued)
F-18 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) - CONTINUED
Years ended March 31, 2016 and 2015
Limited | General | |||||||||||
Series 17 | partners | partner | Total | |||||||||
Partners’ capital (deficit), March 31, 2014 | $ | (1,002,905 | ) | $ | (431,291 | ) | $ | (1,434,196 | ) | |||
Net income (loss) | 921,388 | 9,307 | 930,695 | |||||||||
Partners’ capital (deficit), March 31, 2015 | (81,517 | ) | (421,984 | ) | (503,501 | ) | ||||||
Distributions to partners | (4,474,195 | ) | - | (4,474,195 | ) | |||||||
Net income (loss) | 5,537,765 | 55,937 | 5,593,702 | |||||||||
Partners’ capital (deficit), March 31, 2016 | $ | 982,053 | $ | (366,047 | ) | $ | 616,006 |
(continued)
F-19 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) - CONTINUED
Years ended March 31, 2016 and 2015
Limited | General | |||||||||||
Series 18 | partners | partner | Total | |||||||||
Partners’ capital (deficit), March 31, 2014 | $ | (3,857,706 | ) | $ | (352,328 | ) | $ | (4,210,034 | ) | |||
Net income (loss) | 484,740 | 4,896 | 489,636 | |||||||||
Partners’ capital (deficit), March 31, 2015 | (3,372,966 | ) | (347,432 | ) | (3,720,398 | ) | ||||||
Distributions to partners | - | - | - | |||||||||
Net income (loss) | (88,612 | ) | (895 | ) | (89,507 | ) | ||||||
Partners’ capital (deficit), March 31, 2016 | $ | (3,461,578 | ) | $ | (348,327 | ) | $ | (3,809,905 | ) |
(continued)
F-20 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) - CONTINUED
Years ended March 31, 2016 and 2015
Limited | General | |||||||||||
Series 19 | partners | partner | Total | |||||||||
Partners’ capital (deficit), March 31, 2014 | $ | 1,080,707 | $ | (286,735 | ) | $ | 793,972 | |||||
Net income (loss) | 575,683 | 5,815 | 581,498 | |||||||||
Partners’ capital (deficit), March 31, 2015 | 1,656,390 | (280,920 | ) | 1,375,470 | ||||||||
Distributions to partners | (1,017,800 | ) | - | (1,017,800 | ) | |||||||
Net income (loss) | (79,966 | ) | (808 | ) | (80,774 | ) | ||||||
Partners’ capital (deficit), March 31, 2016 | $ | 558,624 | $ | (281,728 | ) | $ | 276,896 |
See notes to financial statements
F-21 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
Years ended March 31, 2016 and 2015
Total | ||||||||
2016 | 2015 | |||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | 5,869,910 | $ | 2,596,075 | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||||||||
Share of income from operating limited partnerships | (6,416,089 | ) | (3,170,953 | ) | ||||
Changes in assets and liabilities | ||||||||
Other assets | 52,200 | (50,000 | ) | |||||
Accounts payable and accrued expenses | 32,494 | 5,000 | ||||||
Accounts payable - affiliates | (1,507,699 | ) | (2,008,044 | ) | ||||
Net cash provided by (used in) operating activities | (1,969,184 | ) | (2,627,922 | ) | ||||
Cash flows from investing activities | ||||||||
Proceeds from disposition of operating limited partnerships | 6,721,378 | 2,856,845 | ||||||
Net cash provided by investing activities | 6,721,378 | 2,856,845 | ||||||
Cash flows from financing activities | ||||||||
Distributions to partners | (5,491,995 | ) | - | |||||
Net cash used in financing activities | (5,491,995 | ) | - | |||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (739,801 | ) | 228,923 | |||||
Cash and cash equivalents, beginning | 2,523,234 | 2,294,311 | ||||||
Cash and cash equivalents, end | $ | 1,783,433 | $ | 2,523,234 |
(continued)
F-22 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
STATEMENTS OF CASH FLOWS - CONTINUED
Years ended March 31, 2016 and 2015
Series 15 | ||||||||
2016 | 2015 | |||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | 386,925 | $ | 590,961 | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||||||||
Share of income from operating limited partnerships | (465,691 | ) | (700,342 | ) | ||||
Changes in assets and liabilities | ||||||||
Other assets | - | - | ||||||
Accounts payable and accrued expenses | 6,498 | 5,000 | ||||||
Accounts payable - affiliates | (691,424 | ) | (342,524 | ) | ||||
Net cash provided by (used in) operating activities | (763,692 | ) | (446,905 | ) | ||||
Cash flows from investing activities | ||||||||
Proceeds from disposition of operating limited partnerships | 465,691 | 700,342 | ||||||
Net cash provided by investing activities | 465,691 | 700,342 | ||||||
Cash flows from financing activities | ||||||||
Distributions to partners | - | - | ||||||
Net cash used in financing activities | - | - | ||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (298,001 | ) | 253,437 | |||||
Cash and cash equivalents, beginning | 414,859 | 161,422 | ||||||
Cash and cash equivalents, end | $ | 116,858 | $ | 414,859 |
(continued)
F-23 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
STATEMENTS OF CASH FLOWS - CONTINUED
Years ended March 31, 2016 and 2015
Series 16 | ||||||||
2016 | 2015 | |||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | 59,564 | $ | 3,285 | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||||||||
Share of income from operating limited partnerships | (243,000 | ) | (254,999 | ) | ||||
Changes in assets and liabilities | ||||||||
Other assets | - | - | ||||||
Accounts payable and accrued expenses | 6,499 | - | ||||||
Accounts payable - affiliates | 94,279 | 40,901 | ||||||
Net cash provided by (used in) operating activities | (82,658 | ) | (210,813 | ) | ||||
Cash flows from investing activities | ||||||||
Proceeds from disposition of operating limited partnerships | 243,000 | 254,999 | ||||||
Net cash provided by investing activities | 243,000 | 254,999 | ||||||
Cash flows from financing activities | ||||||||
Distributions to partners | - | - | ||||||
Net cash used in financing activities | - | - | ||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 160,342 | 44,186 | ||||||
Cash and cash equivalents, beginning | 221,108 | 176,922 | ||||||
Cash and cash equivalents, end | $ | 381,450 | $ | 221,108 |
(continued)
F-24 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
STATEMENTS OF CASH FLOWS - CONTINUED
Years ended March 31, 2016 and 2015
Series 17 | ||||||||
2016 | 2015 | |||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | 5,593,702 | $ | 930,695 | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||||||||
Share of income from operating limited partnerships | (5,692,104 | ) | (1,138,960 | ) | ||||
Changes in assets and liabilities | ||||||||
Other assets | 2,200 | - | ||||||
Accounts payable and accrued expenses | 6,499 | - | ||||||
Accounts payable - affiliates | (685,587 | ) | (1,523,273 | ) | ||||
Net cash provided by (used in) operating activities | (775,290 | ) | (1,731,538 | ) | ||||
Cash flows from investing activities | ||||||||
Proceeds from disposition of operating limited partnerships | 5,692,104 | 1,130,141 | ||||||
Net cash provided by investing activities | 5,692,104 | 1,130,141 | ||||||
Cash flows from financing activities | ||||||||
Distributions to partners | (4,474,195 | ) | - | |||||
Net cash used in financing activities | (4,474,195 | ) | - | |||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 442,619 | (601,397 | ) | |||||
Cash and cash equivalents, beginning | 197,779 | 799,176 | ||||||
Cash and cash equivalents, end | $ | 640,398 | $ | 197,779 |
(continued)
F-25 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
STATEMENTS OF CASH FLOWS - CONTINUED
Years ended March 31, 2016 and 2015
Series 18 | ||||||||
2016 | 2015 | |||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | (89,507 | ) | $ | 489,636 | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||||||||
Share of income from operating limited partnerships | (15,294 | ) | (571,930 | ) | ||||
Changes in assets and liabilities | ||||||||
Other assets | 50,000 | (50,000 | ) | |||||
Accounts payable and accrued expenses | 6,499 | - | ||||||
Accounts payable - affiliates | (224,967 | ) | (183,148 | ) | ||||
Net cash provided by (used in) operating activities | (273,269 | ) | (315,442 | ) | ||||
Cash flows from investing activities | ||||||||
Proceeds from disposition of operating limited partnerships | 320,583 | 266,641 | ||||||
Net cash provided by investing activities | 320,583 | 266,641 | ||||||
Cash flows from financing activities | ||||||||
Distributions to partners | - | - | ||||||
Net cash used in financing activities | - | - | ||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 47,314 | (48,801 | ) | |||||
Cash and cash equivalents, beginning | 306,518 | 355,319 | ||||||
Cash and cash equivalents, end | $ | 353,832 | $ | 306,518 |
(continued)
F-26 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
STATEMENTS OF CASH FLOWS - CONTINUED
Years ended March 31, 2016 and 2015
Series 19 | ||||||||
2016 | 2015 | |||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | (80,774 | ) | $ | 581,498 | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||||||||
Share of income from operating limited partnerships | - | (504,722 | ) | |||||
Changes in assets and liabilities | ||||||||
Other assets | - | - | ||||||
Accounts payable and accrued expenses | 6,499 | - | ||||||
Accounts payable - affiliates | - | - | ||||||
Net cash provided by (used in) operating activities | (74,275 | ) | 76,776 | |||||
Cash flows from investing activities | ||||||||
Proceeds from disposition of operating limited partnerships | - | 504,722 | ||||||
Net cash provided by investing activities | - | 504,722 | ||||||
Cash flows from financing activities | ||||||||
Distributions to partners | (1,017,800 | ) | - | |||||
Net cash used in financing activities | (1,017,800 | ) | - | |||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (1,092,075 | ) | 581,498 | |||||
Cash and cash equivalents, beginning | 1,382,970 | 801,472 | ||||||
Cash and cash equivalents, end | $ | 290,895 | $ | 1,382,970 |
See notes to financial statements
F-27 |
Boston Capital Tax Credit Fund III Limited Partnership
Series 15 through Series 19
March 31, 2016 and 2015
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Boston Capital Tax Credit Fund III L.P. (the “Partnership” or “Fund”) was formed under the laws of the State of Delaware on September 19, 1991, for the purpose of acquiring, holding, and disposing of limited partnership interests in operating limited partnerships which were organized to acquire, develop, rehabilitate, operate and own newly constructed, existing or rehabilitated apartment complexes which qualified for the Low-Income Housing Tax Credit established by the Tax Reform Act of 1986. Accordingly, the apartment complexes are restricted as to rent charges and operating methods. Certain of the apartment complexes also qualified for the Historic Rehabilitation Tax Credit for their rehabilitation of a certified historic structure and are subject to the provisions of the Internal Revenue Code relating to the Rehabilitation Investment Credit. The general partner of the fund is Boston Capital Associates III L.P. and the limited partner is BCTC III Assignor Corp. (the “assignor limited partner”).
Pursuant to the Securities Act of 1933, the fund filed a Form S-11 Registration Statement with the Securities and Exchange Commission, effective January 24, 1992, which covered the offering (the “Public Offering”) of the Fund’s beneficial assignee certificates (“BACs”) representing assignments of units of the beneficial interest of the limited partnership interest of the assignor limited partner. The Fund originally registered 20,000,000 BACs at $10 per BAC for sale to the public in one or more series. An additional 2,000,000 BACs at $10 per BAC were registered for sale to the public in one or more series on September 4, 1994. BACs sold in bulk were offered to investors at a reduced cost per BAC.
F-28 |
Boston Capital Tax Credit Fund III Limited Partnership
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The BACs issued and outstanding in each series as of March 31, 2016 and 2015 are as follows:
Issued | Outstanding | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Series 15 | 3,870,500 | 3,870,500 | 3,848,900 | 3,858,400 | ||||||||||||
Series 16 | 5,429,402 | 5,429,402 | 5,404,500 | 5,411,800 | ||||||||||||
Series 17 | 5,000,000 | 5,000,000 | 4,972,947 | 4,980,687 | ||||||||||||
Series 18 | 3,616,200 | 3,616,200 | 3,605,200 | 3,612,200 | ||||||||||||
Series 19 | 4,080,000 | 4,080,000 | 4,071,200 | 4,073,700 | ||||||||||||
21,996,102 | 21,996,102 | 21,902,747 | 21,936,787 |
In accordance with the limited partnership agreements, profits, losses, and cash flow (subject to certain priority allocations and distributions) and tax credits are allocated 99% to the assignees and 1% to the general partner.
Investments in Operating Limited Partnerships
The Fund accounts for its investments in operating limited partnerships using the equity method, whereby the Fund adjusts its investment cost for its share of each operating limited partnership’s results of operations and for any distributions received or accrued. However, the Fund recognizes the individual operating limited partnership’s losses only to the extent that the Fund’s share of losses of the operating limited partnerships does not exceed the carrying amount of its investment and its advances to operating limited partnerships. Unrecognized losses are suspended and offset against future individual operating limited partnership income.
F-29 |
Boston Capital Tax Credit Fund III Limited Partnership
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Investments in Operating Limited Partnerships (Continued)
After the investment account is reduced to zero, receivables due from the operating limited partnerships are decreased by the fund’s share of losses and, accordingly, a valuation allowance is recorded against the receivables. Accordingly, the partnership recorded a valuation allowance as follows:
2016 | 2015 | |||||||
Series 15 | $ | 12,394 | $ | 35,843 | ||||
Series 16 | 246 | 246 | ||||||
Series 17 | - | 11,292 | ||||||
Series 18 | 24,343 | 40,468 | ||||||
Series 19 | 25,120 | 25,120 | ||||||
$ | 62,103 | $ | 112,969 |
The Fund reviews its investment in operating limited partnerships for impairment whenever events or changes in circumstances indicate that the carrying amount of such investments may not be recoverable. Recoverability is measured by a comparison of the carrying amount of the investment to the sum of the total amount of the remaining tax credits and the estimated residual value of the investment. The Fund also evaluates its intangibles for impairment in connection with its investments in operating limited partnerships. During the years ended March 31, 2016 and 2015, the Fund did not record an impairment loss.
Capital contributions to operating limited partnerships are adjusted by tax credit adjusters. Tax credit adjusters are defined as adjustments to operating limited partnership capital contributions due to reductions in actual tax credits from those originally projected. The Fund records tax credit adjusters as a reduction in investment in operating limited partnerships and capital contributions payable.
The operating limited partnerships maintain their financial statements based on a calendar year and the Fund utilizes a March 31 year-end. The Fund records income and losses from the operating limited partnerships on a calendar year basis which is not materially different from income and losses generated if the operating limited partnerships utilized a March 31 year-end.
F-30 |
Boston Capital Tax Credit Fund III Limited Partnership
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Investments in Operating Limited Partnerships (Continued)
The Fund records capital contributions payable to the operating limited partnerships once there is a binding obligation to fund a specified amount. The operating limited partnerships record capital contributions from the Fund when received.
The Fund records certain acquisition costs as an increase in its investment in operating limited partnerships. Certain operating limited partnerships have not recorded the acquisition costs as a capital contribution from the Fund. These differences are shown as reconciling items in note C.
In accordance with the accounting guidance for the consolidation of variable interest entities, the Fund determines when it should include the assets, liabilities, and activities of a variable interest entity (VIE) in its financial statements, and when it should disclose information about its relationship with a VIE. A VIE is a legal structure used to conduct activities or hold assets, which must be consolidated by a company if it is the primary beneficiary because it has (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. If multiple unrelated parties share such power, as defined, no party is required to consolidate the VIE.
The Fund determines whether an entity is a VIE and whether it is the primary beneficiary at the date of initial involvement with the entity. The Fund reassesses whether it is the primary beneficiary of a VIE on an ongoing basis based on changes in facts and circumstances. In determining whether it is the primary beneficiary, the Partnership considers the purpose and activities of the VIE, including the variability and related risks the VIE incurs and transfers to other entities and their related parties. These factors are considered in determining whether the Fund has the power to direct activities of the VIE that most significantly impact the VIE’s economic performance and whether the Fund also has the obligation to absorb losses of or receive benefits from the VIE that could be potentially significant to the VIE. If the Fund determines that it is the primary beneficiary of the VIE, the VIE is consolidated within the Partnership’s financial statements.
F-31 |
Boston Capital Tax Credit Fund III Limited Partnership
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Investments in Operating Limited Partnerships (Continued)
Based on this guidance, the operating limited partnerships in which the Fund invests meet the definition of a VIE. However, management does not consolidate the Fund’s interests in these VIEs under this guidance, as it is not considered to be the primary beneficiary. The Fund currently records the amount of its investment in these operating limited partnerships as an asset on its balance sheets, recognizes its share of the operating limited partnership income or losses in the statements of operations, and discloses how it accounts for material types of these investments in its financial statements. The Fund’s balance in investment in operating limited partnerships, advances to operating limited partnerships, plus the risk of recapture of tax credits previously recognized on these investments, represents its maximum exposure to loss. The Fund’s exposure to loss on these operating limited partnerships is mitigated by the condition and financial performance of the underlying properties as well as the strength of the operating general partners and their guarantee against credit recapture.
Recent Accounting Pronouncement
In February, 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis”. This will improve certain areas of consolidation guidance for reporting organizations that are required to evaluate whether to consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures. ASU 2015-02 simplified and improves GAAP by: eliminating the presumption that a general partner should consolidate a limited partnership, eliminating the indefinite deferral of FASB Statement No. 167, thereby reducing the number of Variable Interest Entity (VIE) consolidation models from four to two (including the limited partnership consolidation model), and clarifying when fees paid to a decision maker should be a factor to include in the consolidation of VIEs. ASU 2015-02 will be effective for periods beginning after December 15, 2015. The Fund has determined that there is no material impact to its financial statements as a result of this guidance.
F-32 |
Boston Capital Tax Credit Fund III Limited Partnership
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Income Taxes
The Fund has elected to be treated as a pass-through entity for income tax purposes and, as such, is not subject to income taxes. Rather, all items of taxable income, deductions and tax credits are passed through to and are reported by its owners on their respective income tax returns. The Funds’s federal tax status as a pass-through entity is based on its legal status as a partnership. Accordingly, the Fund is not required to take any tax positions in order to qualify as a pass-through entity. The Fund is required to file and does file tax returns with the Internal Revenue Service and other taxing authorities. Accordingly, these financial statements do not reflect a provision for income taxes and the Fund has no other tax positions which must be considered for disclosure. Income tax returns filed by the Fund are subject to examination by the Internal Revenue Service for a period of three years. While no income tax returns are currently being examined by the Internal Revenue Service, tax years since 2012 remain open.
Cash Equivalents
Cash equivalents include money market accounts having original maturities at their acquisition dates of three months or less.
Fiscal Year
For financial reporting purposes, the Fund uses a March 31 year-end, whereas for income tax reporting purposes, the Fund uses a calendar year. The operating limited partnerships use a calendar year for both financial and income tax reporting.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Net Income (Loss) per Beneficial Assignee Certificate
Net loss per beneficial assignee certificate unit is calculated based upon the weighted average number of units outstanding during the year or period. The weighted average number of units in each series at March 31, 2016 and 2015 are as follows:
2016 | 2015 | |||||||
Series 15 | 3,856,025 | 3,864,025 | ||||||
Series 16 | 5,409,975 | 5,420,277 | ||||||
Series 17 | 4,978,752 | 4,992,087 | ||||||
Series 18 | 3,610,450 | 3,615,200 | ||||||
Series 19 | 4,073,075 | 4,078,425 | ||||||
21,928,277 | 21,970,014 |
F-33 |
Boston Capital Tax Credit Fund III Limited Partnership
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Plan of Liquidation and Dissolution
On June 1, 2016, BAC Holders approved a Plan of Liquidation and Dissolution for the Partnership, (the “Plan”). Pursuant to the Plan, the general partner may, without further action by the BAC Holders, sell the remaining assets held by the Partnership. We expect to complete the sale of the apartment complexes approximately three to five years after the BAC holders approval of the Plan, which was June 1, 2016. However, because of numerous uncertainties, the liquidation may take longer than expected, and the final liquidating distribution may occur months after all of the apartment complexes have been sold. Because the liquidation of the Partnership was not imminent, as of March 31, 2016, the financial statements are presented assuming the Partnership will continue as a going concern.
NOTE B - RELATED PARTY TRANSACTIONS
During the years ended March 31, 2016 and 2015, the fund entered into several transactions with various affiliates of the general partner, including Boston Capital Partners, Inc., Boston Capital Services, Inc., Boston Capital Holdings Limited Partnership and Boston Capital Asset Management Limited Partnership, as follows:
Boston Capital Asset Management Limited Partnership is entitled to an annual fund management fee based on .5% of the aggregate cost of all apartment complexes acquired by the operating limited partnerships, less the amount of certain partnership management and reporting fees paid or payable by the operating limited partnerships. The aggregate cost is comprised of the capital contributions made by each series to the operating limited partnerships and 99% of the permanent financing at the operating limited partnership level. The partnership management fees net of reporting fees incurred and the reporting fees paid by the Operating Partnerships for the years ended March 31, 2016 and 2015, are as follows:
F-34 |
Boston Capital Tax Credit Fund III Limited Partnership
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE B - RELATED PARTY TRANSACTIONS (Continued)
2016 | ||||||||||||
Gross Partnership Management Fee | Asset Management and Reporting Fee | Partnership Management Fee net of Asset Management and Reporting Fee | ||||||||||
Series 15 | $ | 52,742 | $ | 87,581 | $ | (34,839 | ) | |||||
Series 16 | 176,280 | 65,994 | 110,286 | |||||||||
Series 17 | 106,247 | 45,097 | 61,150 | |||||||||
Series 18 | 95,616 | 15,118 | 80,498 | |||||||||
Series 19 | 35,172 | 3,348 | 31,824 | |||||||||
$ | 466,057 | $ | 217,138 | $ | 248,919 |
2015 | ||||||||||||
Gross Partnership Management Fee | Asset Management and Reporting Fee | Partnership Management Fee net of Asset Management and Reporting Fee | ||||||||||
Series 15 | $ | 100,089 | $ | 39,633 | $ | 60,456 | ||||||
Series 16 | 213,899 | 20,999 | 192,900 | |||||||||
Series 17 | 177,082 | 20,507 | 156,575 | |||||||||
Series 18 | 158,493 | 90,910 | 67,583 | |||||||||
Series 19 | 52,123 | 168,750 | (116,627 | ) | ||||||||
$ | 701,686 | $ | 340,799 | $ | 360,887 |
The partnership management fees paid for the years ended March 31, 2016 and 2015 are as follows:
2016 | 2015 | |||||||
Series 15 | $ | 744,166 | $ | 442,613 | ||||
Series 16 | 82,001 | 172,998 | ||||||
Series 17 | 156,472 | 1,700,355 | ||||||
Series 18 | 320,583 | 341,641 | ||||||
Series 19 | 35,172 | 52,123 | ||||||
$ | 1,338,394 | $ | 2,709,730 |
F-35 |
Boston Capital Tax Credit Fund III Limited Partnership
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE B - RELATED PARTY TRANSACTIONS (Continued)
All partnership management fees will be paid, without interest, from available cash flow or the proceeds of sales or refinancing of the partnership's interests in operating limited partnerships. As of March 31, 2016 and 2015, total partnership management fees accrued were $15,273,764 and $16,146,101, respectively.
An affiliate of the general partner of the Partnership advanced funds to pay some operating expenses of the Partnership, and to make advances and/or loans to Operating Partnerships. These advances are included in accounts payable-affiliates. During the years ended March 31, 2016 and 2015 there were no advances, and $635,362 was repaid to an affiliate of the general partner of the Fund during the year ended March 31, 2016. The total advances from the affiliate of the general partner to the Operating Partnerships as of March 31, 2016 and 2015 are as follows:
2016 | 2015 | |||||||
Series 15 | $ | - | $ | - | ||||
Series 16 | - | - | ||||||
Series 17 | - | 635,362 | ||||||
Series 18 | - | - | ||||||
Series 19 | - | - | ||||||
$ | - | $ | 635,362 |
All payables to affiliates will be paid, without interest, from available cash flow or the proceeds of sales or refinancing of the Partnership's interests in Operating Partnerships.
General and administrative expenses incurred by Boston Capital Partners, Inc., Boston Capital Holdings Limited Partnership and Boston Capital Asset Management Limited Partnership (BCAMLP) during the years ended March 31, 2016 and 2015 charged to each series’ operations are as follows:
2016 | 2015 | |||||||
Series 15 | $ | 16,250 | $ | 12,839 | ||||
Series 16 | 18,952 | 15,146 | ||||||
Series 17 | 16,959 | 13,178 | ||||||
Series 18 | 20,942 | 11,767 | ||||||
Series 19 | 15,253 | 12,937 | ||||||
$ | 88,356 | $ | 65,867 |
F-36 |
Boston Capital Tax Credit Fund III Limited Partnership
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE B - RELATED PARTY TRANSACTIONS (Continued)
Accounts payable - affiliates at March 31, 2016 and 2015 represents fund management fees and operating limited partnership advances which are payable to Boston Capital Asset Management Limited Partnership.
NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS
At March 31, 2016 and 2015, the Fund has limited partnership interests in operating limited partnerships which own or are constructing operating apartment complexes. The number of operating limited partnerships in which the Fund has limited partnership interests at March 31, 2016 and 2015 by series are as follows:
2016 | 2015 | |||||||
Series 15 | 14 | 18 | ||||||
Series 16 | 20 | 21 | ||||||
Series 17 | 9 | 13 | ||||||
Series 18 | 12 | 12 | ||||||
Series 19 | 6 | 6 | ||||||
61 | 70 |
F-37 |
Boston Capital Tax Credit Fund III Limited Partnership
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)
During the year ended March 31, 2016 the Fund disposed of nine operating limited partnerships and the Fund received additional proceeds from one operating limited partnership disposed of in the prior year.
A summary of the dispositions by Series for March 31, 2016 is as follows:
Operating | Sale of | |||||||||||||||
Partnership | Underlying | Partnership | ||||||||||||||
Interest | Operating | Proceeds from | Gain on | |||||||||||||
Transferred | Partnership | Disposition * | Disposition | |||||||||||||
Series 15 | 3 | 1 | $ | 465,691 | $ | 465,691 | ||||||||||
Series 16 | 1 | - | 243,000 | 243,000 | ||||||||||||
Series 17 | 3 | 1 | 5,692,104 | 5,692,104 | ||||||||||||
Series 18 | - | - | 320,583 | 15,294 | ||||||||||||
Series 19 | - | - | - | - | ||||||||||||
Total | 7 | 2 | $ | 6,721,378 | $ | 6,416,089 |
* Fund proceeds from disposition include $305,289 which was receivable as of March 31,
2015 for Series 18.
During the year ended March 31, 2015 the Fund disposed of twenty-five operating limited partnerships.
A summary of the dispositions by Series for March 31, 2015 is as follows:
Operating | Sale of | |||||||||||||||
Partnership | Underlying | Partnership | ||||||||||||||
Interest | Operating | Proceeds from | Gain on | |||||||||||||
Transferred | Partnership | Disposition * | Disposition | |||||||||||||
Series 15 | 3 | 3 | $ | 700,342 | $ | 700,342 | ||||||||||
Series 16 | 6 | 1 | 254,999 | 254,999 | ||||||||||||
Series 17 | 3 | 1 | 1,130,141 | 1,138,960 | ||||||||||||
Series 18 | 5 | 1 | 266,641 | 571,930 | ||||||||||||
Series 19 | 1 | 1 | 504,722 | 504,722 | ||||||||||||
Total | 18 | 7 | $ | 2,856,845 | $ | 3,170,953 |
* Fund proceeds from disposition does not include $305,289 recorded as a receivable as of March 31, 2015 for Series 18 and Fund proceeds from disposition does not include the amount of $8,819 due to a writeoff of capital contribution payable of $8,819 for Series 17.
F-38 |
Boston Capital Tax Credit Fund III Limited Partnership
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)
Under the terms of the Fund’s investment in each operating limited partnership, the Fund is required to make capital contributions to the operating limited partnerships. These contributions are payable in installments over several years upon each operating limited partnership achieving specified levels of construction and/or operations.
The contributions payable to operating limited partnerships at March 31, 2016 and 2015 by series are as follows:
2016 | 2015 | |||||||
Series 15 | $ | - | $ | - | ||||
Series 16 | 50,008 | 50,008 | ||||||
Series 17 | 7,893 | 7,893 | ||||||
Series 18 | 18,554 | 18,554 | ||||||
Series 19 | - | - | ||||||
$ | 76,455 | $ | 76,455 |
F-39 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)
The Fund’s investments in operating limited partnerships at March 31, 2016 are summarized as follows:
Total | Series 15 | Series 16 | ||||||||||
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters | $ | 23,352,308 | $ | 3,950,299 | $ | 8,042,810 | ||||||
Acquisition costs of operating limited partnerships | 3,125,005 | 564,428 | 1,016,280 | |||||||||
Syndication costs from operating limited partnerships | (36,455 | ) | - | - | ||||||||
Cumulative distributions from operating limited partnerships | (62,998 | ) | (3,252 | ) | (12,055 | ) | ||||||
Cumulative impairment loss in investment in operating limited partnerships | (3,397,130 | ) | (189,424 | ) | (1,326,748 | ) | ||||||
Cumulative losses from operating limited partnerships | (22,980,730 | ) | (4,322,051 | ) | (7,720,287 | ) | ||||||
Investments in operating limited partnerships per balance sheets | - | - | - | |||||||||
The Fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2016 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2015 (see note A) | (188,624 | ) | (14,246 | ) | (93,920 | ) | ||||||
The Fund has recorded acquisition costs at March 31, 2016 which have not been recorded in the net assets of the operating limited partnerships (see note A) | (407,477 | ) | (52,671 | ) | (120,021 | ) | ||||||
Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A) | 437,128 | 48,582 | - |
F-40 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)
Total | Series 15 | Series 16 | ||||||||||
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A) | (27,468,772 | ) | (5,078,894 | ) | (9,143,256 | ) | ||||||
The Fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A) | 142,774 | 53,151 | 71,626 | |||||||||
Cumulative impairment loss in investment in operating limited partnerships | 3,397,130 | 189,424 | 1,326,748 | |||||||||
Other | (57,517 | ) | (77,698 | ) | 289,887 | |||||||
Equity per operating limited partnerships’ combined financial statements | $ | (24,145,358 | ) | $ | (4,932,352 | ) | $ | (7,668,936 | ) |
F-41 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)
The Fund’s investments in operating limited partnerships at March 31, 2016 are summarized as follows:
Series 17 | Series 18 | Series 19 | ||||||||||
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters | $ | 3,742,894 | $ | 5,630,054 | $ | 1,986,251 | ||||||
Acquisition costs of operating limited partnerships | 508,772 | 777,180 | 258,345 | |||||||||
Syndication costs from operating limited partnerships | - | (36,455 | ) | - | ||||||||
Cumulative distributions from operating limited partnerships | (16,559 | ) | (27,368 | ) | (3,764 | ) | ||||||
Cumulative impairment loss in investment in operating limited partnerships | (606,894 | ) | (963,351 | ) | (310,713 | ) | ||||||
Cumulative losses from operating limited partnerships | (3,628,213 | ) | (5,380,060 | ) | (1,930,119 | ) | ||||||
Investments in operating limited partnerships per balance sheets | - | - | - | |||||||||
The Fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2016 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2015 (see note A) | (55,606 | ) | (5,588 | ) | (19,264 | ) | ||||||
The Fund has recorded acquisition costs at March 31, 2016 which have not been recorded in the net assets of the operating limited partnerships (see note A) | (207,388 | ) | - | (27,397 | ) | |||||||
Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A) | 132,121 | 237,589 | 18,836 |
F-42 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)
Series 17 | Series 18 | Series 19 | ||||||||||
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A) | (4,426,234 | ) | (5,555,949 | ) | (3,264,439 | ) | ||||||
The Fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A) | 6,706 | 11,291 | - | |||||||||
Cumulative impairment loss in investment in operating limited partnerships | 606,894 | 963,351 | 310,713 | |||||||||
Other | (14,211 | ) | (203,969 | ) | (51,526 | ) | ||||||
Equity per operating limited partnerships’ combined financial statements | $ | (3,957,718 | ) | $ | (4,553,275 | ) | $ | (3,033,077 | ) |
F-43 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)
The Fund’s investments in operating limited partnerships at March 31, 2015 are summarized as follows:
Total | Series 15 | Series 16 | ||||||||||
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters | 29,156,965 | $ | 5,627,740 | $ | 8,577,657 | |||||||
Acquisition costs of operating limited partnerships | 4,002,609 | 816,855 | 1,097,497 | |||||||||
Syndication costs from operating limited partnerships | (36,455 | ) | - | - | ||||||||
Cumulative distributions from operating limited partnerships | (66,361 | ) | (4,207 | ) | (12,055 | ) | ||||||
Cumulative impairment loss in investment in operating limited partnerships | (4,659,927 | ) | (747,267 | ) | (1,326,748 | ) | ||||||
Cumulative losses from operating limited partnerships | (28,396,831 | ) | (5,693,121 | ) | (8,336,351 | ) | ||||||
�� | ||||||||||||
Investments in operating limited partnerships per balance sheets | - | - | - | |||||||||
The Fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2015 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2014 (see note A) | (188,624 | ) | (14,246 | ) | (93,920 | ) | ||||||
The Fund has recorded acquisition costs at March 31, 2015 which have not been recorded in the net assets of the operating limited partnerships (see note A) | (447,290 | ) | (92,484 | ) | (120,021 | ) | ||||||
Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A) | 562,650 | 76,193 | - |
F-44 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)
Total | Series 15 | Series 16 | ||||||||||
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A) | (27,893,359 | ) | (6,350,536 | ) | (8,177,820 | ) | ||||||
The Fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A) | 166,223 | 76,600 | 71,626 | |||||||||
Cumulative impairment loss in investment in operating limited partnerships | 4,659,927 | 747,267 | 1,326,748 | |||||||||
Other | 77,770 | (48,571 | ) | 370,412 | ||||||||
Equity per operating limited partnerships’ combined financial statements | $ | (23,062,703 | ) | $ | (5,605,777 | ) | $ | (6,622,975 | ) |
F-45 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)
The Fund’s investments in operating limited partnerships at March 31, 2015 are summarized as follows:
Series 17 | Series 18 | Series 19 | ||||||||||
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters | $ | 7,335,263 | $ | 5,630,054 | $ | 1,986,251 | ||||||
Acquisition costs of operating limited partnerships | 1,052,732 | 777,180 | 258,345 | |||||||||
Syndication costs from operating limited partnerships | - | (36,455 | ) | - | ||||||||
Cumulative distributions from operating limited partnerships | (18,967 | ) | (27,368 | ) | (3,764 | ) | ||||||
Cumulative impairment loss in investment in operating limited partnerships | (1,311,848 | ) | (963,351 | ) | (310,713 | ) | ||||||
Cumulative losses from operating limited partnerships | (7,057,180 | ) | (5,380,060 | ) | (1,930,119 | ) | ||||||
Investments in operating limited partnerships per balance sheets | - | - | - | |||||||||
The Fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2015 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2014 (see note A) | (55,606 | ) | (5,588 | ) | (19,264 | ) | ||||||
The Fund has recorded acquisition costs at March 31, 2015 which have not been recorded in the net assets of the operating limited partnerships (see note A) | (207,388 | ) | - | (27,397 | ) | |||||||
Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A) | 230,032 | 237,589 | 18,836 |
F-46 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)
Series 17 | Series 18 | Series 19 | ||||||||||
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A) | (5,187,226 | ) | (5,062,616 | ) | (3,115,161 | ) | ||||||
The Fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A) | 6,706 | 11,291 | - | |||||||||
Cumulative impairment loss in investment in operating limited partnerships | 1,311,848 | 963,351 | 310,713 | |||||||||
Other | (13,657 | ) | (180,536 | ) | (49,878 | ) | ||||||
Equity per operating limited partnerships’ combined financial statements | $ | (3,915,291 | ) | $ | (4,036,509 | ) | $ | (2,882,151 | ) |
F-47 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)
The combined summarized balance sheets of the operating limited partnerships at December 31, 2015 are as follows:
COMBINED SUMMARIZED BALANCE SHEETS
Total | Series 15 | Series 16 | ||||||||||
ASSETS | ||||||||||||
Buildings and improvements, net of accumulated depreciation | $ | 29,568,305 | $ | 4,806,190 | $ | 11,930,712 | ||||||
Land | 3,903,489 | 684,856 | 1,288,687 | |||||||||
Other assets | 10,795,084 | 2,285,357 | 5,278,428 | |||||||||
$ | 44,266,878 | $ | 7,776,403 | $ | 18,497,827 | |||||||
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT) | ||||||||||||
Mortgages and construction loans payable | $ | 60,384,689 | $ | 12,126,820 | $ | 21,602,240 | ||||||
Accounts payable and accrued expenses | 5,192,518 | 206,977 | 3,687,571 | |||||||||
Other liabilities | 2,831,188 | 246,198 | 713,482 | |||||||||
68,408,395 | 12,579,995 | 26,003,293 | ||||||||||
PARTNERS’ CAPITAL (DEFICIT) | ||||||||||||
Boston Capital Tax Credit Fund III L.P. | (24,145,358 | ) | (4,932,352 | ) | (7,668,936 | ) | ||||||
Other partners | 3,841 | 128,760 | 163,470 | |||||||||
(24,141,517 | ) | (4,803,592 | ) | (7,505,466 | ) | |||||||
$ | 44,266,878 | $ | 7,776,403 | $ | 18,497,827 |
F-48 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)
The combined summarized balance sheets of the operating limited partnerships at December 31, 2015 are as follows:
COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED
Series 17 | Series 18 | Series 19 | ||||||||||
ASSETS | ||||||||||||
Buildings and improvements, net of accumulated depreciation | $ | 5,080,072 | $ | 5,800,183 | $ | 1,951,148 | ||||||
Land | 803,500 | 856,966 | 269,480 | |||||||||
Other assets | 1,471,554 | 1,226,998 | 532,747 | |||||||||
$ | 7,355,126 | $ | 7,884,147 | $ | 2,753,375 | |||||||
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT) | ||||||||||||
Mortgages and construction loans payable | $ | 10,083,602 | $ | 11,609,745 | $ | 4,962,282 | ||||||
Accounts payable and accrued expenses | 671,726 | 399,968 | 226,276 | |||||||||
Other liabilities | 613,348 | 637,481 | 620,679 | |||||||||
11,368,676 | 12,647,194 | 5,809,237 | ||||||||||
PARTNERS’ CAPITAL (DEFICIT) | ||||||||||||
Boston Capital Tax Credit Fund III L.P. | (3,957,718 | ) | (4,553,275 | ) | (3,033,077 | ) | ||||||
Other partners | (55,832 | ) | (209,772 | ) | (22,785 | ) | ||||||
(4,013,550 | ) | (4,763,047 | ) | (3,055,862 | ) | |||||||
$ | 7,355,126 | $ | 7,884,147 | $ | 2,753,375 |
F-49 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)
The combined summarized balance sheets of the operating limited partnerships at December 31, 2014 are as follows:
COMBINED SUMMARIZED BALANCE SHEETS
Total | Series 15 | Series 16 | ||||||||||
ASSETS | ||||||||||||
Buildings and improvements, net of accumulated depreciation | $ | 41,025,674 | $ | 7,779,483 | $ | 13,895,144 | ||||||
Land | 5,475,606 | 963,395 | 1,333,368 | |||||||||
Other assets | 12,750,906 | 2,894,330 | 5,422,745 | |||||||||
$ | 59,252,186 | $ | 11,637,208 | $ | 20,651,257 | |||||||
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT) | ||||||||||||
Mortgages and construction loans payable | $ | 72,860,731 | $ | 16,319,288 | $ | 23,069,729 | ||||||
Accounts payable and accrued expenses | 5,382,780 | 243,807 | 3,644,733 | |||||||||
Other liabilities | 4,530,328 | 541,611 | 847,450 | |||||||||
82,773,839 | 17,104,706 | 27,561,912 | ||||||||||
PARTNERS’ CAPITAL (DEFICIT) | ||||||||||||
Boston Capital Tax Credit Fund III L.P. | (23,062,703 | ) | (5,605,777 | ) | (6,622,975 | ) | ||||||
Other partners | (458,950 | ) | 138,279 | (287,680 | ) | |||||||
(23,521,653 | ) | (5,467,498 | ) | (6,910,655 | ) | |||||||
$ | 59,252,186 | $ | 11,637,208 | $ | 20,651,257 |
F-50 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)
The combined summarized balance sheets of the operating limited partnerships at December 31, 2014 are as follows:
COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED
Series 17 | Series 18 | Series 19 | ||||||||||
ASSETS | ||||||||||||
Buildings and improvements, net of accumulated depreciation | $ | 11,002,475 | $ | 6,257,820 | $ | 2,090,752 | ||||||
Land | 2,052,397 | 856,966 | 269,480 | |||||||||
Other assets | 2,489,058 | 1,442,202 | 502,571 | |||||||||
$ | 15,543,930 | $ | 8,556,988 | $ | 2,862,803 | |||||||
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT) | ||||||||||||
Mortgages and construction loans payable | $ | 16,764,622 | $ | 11,706,500 | $ | 5,000,592 | ||||||
Accounts payable and accrued expenses | 935,022 | 329,300 | 229,918 | |||||||||
Other liabilities | 1,886,305 | 722,824 | 532,138 | |||||||||
19,585,949 | 12,758,624 | 5,762,648 | ||||||||||
PARTNERS’ CAPITAL (DEFICIT) | ||||||||||||
Boston Capital Tax Credit Fund III L.P. | (3,915,291 | ) | (4,036,509 | ) | (2,882,151 | ) | ||||||
Other partners | (126,728 | ) | (165,127 | ) | (17,694 | ) | ||||||
(4,042,019 | ) | (4,201,636 | ) | (2,899,845 | ) | |||||||
$ | 15,543,930 | $ | 8,556,988 | $ | 2,862,803 |
F-51 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)
The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2015 are as follows:
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Total | Series 15 | Series 16 | ||||||||||
Revenue | ||||||||||||
Rental | $ | 11,658,113 | $ | 2,327,630 | $ | 4,340,062 | ||||||
Interest and other | 235,310 | 53,301 | 74,305 | |||||||||
11,893,423 | 2,380,931 | 4,414,367 | ||||||||||
Expenses | ||||||||||||
Interest | 1,563,789 | 313,200 | 639,443 | |||||||||
Depreciation and amortization | 3,046,486 | 567,614 | 1,100,806 | |||||||||
Taxes and insurance | 1,438,962 | 271,110 | 506,221 | |||||||||
Repairs and maintenance | 2,987,124 | 589,873 | 1,153,404 | |||||||||
Operating expenses | 4,895,146 | 1,018,576 | 1,715,871 | |||||||||
Other expenses | 481,170 | 13,440 | 409,866 | |||||||||
14,412,677 | 2,773,813 | 5,525,611 | ||||||||||
NET LOSS | $ | (2,519,254 | ) | $ | (392,882 | ) | $ | (1,111,244 | ) | |||
Net loss allocated to Boston Capital Tax Credit Fund III L.P.* | $ | (2,484,936 | ) | $ | (400,421 | ) | $ | (1,077,035 | ) | |||
Net Income (Loss) allocated to other partners | $ | (34,318 | ) | $ | 7,539 | $ | (34,209 | ) |
* | Amounts include $400,421, $1,077,035, $347,353, $510,849, and $149,278 for Series 15, Series 16, Series 17, Series 18 and Series 19, respectively, of loss not recognized under the equity method of accounting as described in note A. |
F-52 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)
The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2015 are as follows:
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED
Series 17 | Series 18 | Series 19 | ||||||||||
Revenue | ||||||||||||
Rental | $ | 2,108,018 | $ | 2,138,321 | $ | 744,082 | ||||||
Interest and other | 31,733 | 52,578 | 23,393 | |||||||||
2,139,751 | 2,190,899 | 767,475 | ||||||||||
Expenses | ||||||||||||
Interest | 214,868 | 311,058 | 85,220 | |||||||||
Depreciation and amortization | 657,895 | 554,454 | 165,717 | |||||||||
Taxes and insurance | 250,360 | 308,858 | 102,413 | |||||||||
Repairs and maintenance | 449,230 | 594,393 | 200,224 | |||||||||
Operating expenses | 911,272 | 885,941 | 363,486 | |||||||||
Other expenses | 12,000 | 44,664 | 1,200 | |||||||||
2,495,625 | 2,699,368 | 918,260 | ||||||||||
NET LOSS | $ | (355,874 | ) | $ | (508,469 | ) | $ | (150,785 | ) | |||
Net loss allocated to Boston Capital Tax Credit Fund III L.P.* | $ | (347,353 | ) | $ | (510,849 | ) | $ | (149,278 | ) | |||
Net Income (Loss) allocated to other partners | $ | (8,521 | ) | $ | 2,380 | $ | (1,507 | ) |
* | Amounts include $400,421, $1,077,035, $347,353, $510,849, and $149,278 for Series 15, Series 16, Series 17, Series 18 and Series 19, respectively, of loss not recognized under the equity method of accounting as described in note A. |
F-53 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)
The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2014 are as follows:
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Total | Series 15 | Series 16 | ||||||||||
Revenue | ||||||||||||
Rental | $ | 14,928,411 | $ | 3,236,824 | $ | 4,453,722 | ||||||
Interest and other | 378,493 | 70,081 | 66,205 | |||||||||
15,306,904 | 3,306,905 | 4,519,927 | ||||||||||
Expenses | ||||||||||||
Interest | 2,001,607 | 424,781 | 587,071 | |||||||||
Depreciation and amortization | 3,739,098 | 784,299 | 1,161,729 | |||||||||
Taxes and insurance | 1,841,555 | 392,391 | 531,323 | |||||||||
Repairs and maintenance | 3,632,790 | 807,087 | 1,151,844 | |||||||||
Operating expenses | 6,096,797 | 1,343,541 | 1,832,667 | |||||||||
Other expenses | 107,854 | 18,152 | 20,780 | |||||||||
17,419,701 | 3,770,251 | 5,285,414 | ||||||||||
NET LOSS | $ | (2,112,797 | ) | $ | (463,346 | ) | $ | (765,487 | ) | |||
Net loss allocated to Boston Capital Tax Credit Fund III L.P.* | $ | (2,114,273 | ) | $ | (455,102 | ) | $ | (711,685 | ) | |||
Net Income (Loss) allocated to other partners | $ | 1,476 | $ | (8,244 | ) | $ | (53,802 | ) |
* | Amounts include $455,102, $711,685, $435,970, $400,659, and $110,857 for Series 15, Series 16, Series 17, Series 18 and Series 19, respectively, of loss not recognized under the equity method of accounting as described in note A. |
F-54 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)
The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2014 are as follows:
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED
Series 17 | Series 18 | Series 19 | ||||||||||
Revenue | ||||||||||||
Rental | $ | 4,320,929 | $ | 2,164,875 | $ | 752,061 | ||||||
Interest and other | 144,520 | 54,383 | 43,304 | |||||||||
4,465,449 | 2,219,258 | 795,365 | ||||||||||
Expenses | ||||||||||||
Interest | 579,549 | 322,689 | 87,517 | |||||||||
Depreciation and amortization | 1,075,845 | 553,955 | 163,270 | |||||||||
Taxes and insurance | 518,585 | 292,006 | 107,250 | |||||||||
Repairs and maintenance | 951,107 | 524,124 | 198,628 | |||||||||
Operating expenses | 1,691,718 | 881,301 | 347,570 | |||||||||
Other expenses | 23,204 | 42,606 | 3,112 | |||||||||
4,840,008 | 2,616,681 | 907,347 | ||||||||||
NET LOSS | $ | (374,559 | ) | $ | (397,423 | ) | $ | (111,982 | ) | |||
Net loss allocated to Boston Capital Tax Credit Fund III L.P.* | $ | (435,970 | ) | $ | (400,659 | ) | $ | (110,857 | ) | |||
Net Income (Loss) allocated to other partners | $ | 61,411 | $ | 3,236 | $ | (1,125 | ) |
* | Amounts include $455,102, $711,685, $435,970, $400,659, and $110,857 for Series 15, Series 16, Series 17, Series 18 and Series 19, respectively, of loss not recognized under the equity method of accounting as described in note A. |
F-55 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAX RETURN
For income tax purposes, the fund reports using a December 31 year-end. The Fund’s net income (loss) for financial reporting and tax return purposes for the year ended March 31, 2016 is reconciled as follows:
Total | Series 15 | Series 16 | ||||||||||
Net income (loss) for financial reporting purposes | $ | 5,869,910 | $ | 386,925 | $ | 59,564 | ||||||
Operating limited partnership rents received in advance | 41 | (1,731 | ) | - | ||||||||
Accrued fund management fees not deducted (deducted) for tax purposes | (872,337 | ) | (691,424 | ) | 94,279 | |||||||
Other | 9,102,061 | 2,146,122 | 449,774 | |||||||||
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting | (2,484,936 | ) | (400,421 | ) | (1,077,035 | ) | ||||||
Excess of tax depreciation over book depreciation on operating limited partnership assets | (432,684 | ) | (63,505 | ) | (156,524 | ) | ||||||
Difference due to fiscal year for book purposes and calendar year for tax purposes | (6,236,798 | ) | 38,200 | (408,306 | ) | |||||||
Income (loss) for tax return purposes, year ended December 31, 2015 | $ | 4,945,257 | $ | 1,414,166 | $ | (1,038,248 | ) |
F-56 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAX RETURN (Continued)
For income tax purposes, the fund reports using a December 31 year-end. The Fund’s net income (loss) for financial reporting and tax return purposes for the year ended March 31, 2016 is reconciled as follows:
Series 17 | Series 18 | Series 19 | ||||||||||
Net income (loss) for financial reporting purposes | $ | 5,593,702 | $ | (89,507 | ) | $ | (80,774 | ) | ||||
Operating limited partnership rents received in advance | (1,474 | ) | 2,767 | 479 | ||||||||
Accrued fund management fees not deducted (deducted) for tax purposes | (50,225 | ) | (224,967 | ) | - | |||||||
Other | 6,613,088 | (143,620 | ) | 36,697 | ||||||||
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting | (347,353 | ) | (510,849 | ) | (149,278 | ) | ||||||
Excess of tax depreciation over book depreciation on operating limited partnership assets | (20,175 | ) | (73,921 | ) | (118,559 | ) | ||||||
Difference due to fiscal year for book purposes and calendar year for tax purposes | (5,619,894 | ) | (240,563 | ) | (6,235 | ) | ||||||
Income (loss) for tax return purposes, year ended December 31, 2015 | $ | 6,167,669 | $ | (1,280,660 | ) | $ | (317,670 | ) |
F-57 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAX RETURN (Continued)
For income tax purposes, the fund reports using a December 31 year-end. The Fund’s net income (loss) for financial reporting and tax return purposes for the year ended March 31, 2015 is reconciled as follows:
Total | Series 15 | Series 16 | ||||||||||
Net income (loss) for financial reporting purposes | $ | 2,596,075 | $ | 590,961 | $ | 3,285 | ||||||
Operating limited partnership rents received in advance | 3,009 | (2,059 | ) | 6,415 | ||||||||
Accrued fund management fees not deducted (deducted) for tax purposes | (2,008,044 | ) | (342,524 | ) | 40,901 | |||||||
Other | 11,474,758 | 2,850,771 | 3,046,665 | |||||||||
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting | (2,114,273 | ) | (455,102 | ) | (711,685 | ) | ||||||
Excess of tax depreciation over book depreciation on operating limited partnership assets | (550,248 | ) | (105,127 | ) | (162,954 | ) | ||||||
Difference due to fiscal year for book purposes and calendar year for tax purposes | (6,305,813 | ) | (669,830 | ) | (95,460 | ) | ||||||
Income (loss) for tax return purposes, year ended December 31, 2014 | $ | 3,095,464 | $ | 1,867,090 | $ | 2,127,167 |
F-58 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAX RETURN (Continued)
For income tax purposes, the fund reports using a December 31 year-end. The Fund’s net income (loss) for financial reporting and tax return purposes for the year ended March 31, 2015 is reconciled as follows:
Series 17 | Series 18 | Series 19 | ||||||||||
Net income (loss) for financial reporting purposes | $ | 930,695 | $ | 489,636 | $ | 581,498 | ||||||
Operating limited partnership rents received in advance | (1,157 | ) | (74 | ) | (116 | ) | ||||||
Accrued fund management fees not deducted (deducted) for tax purposes | (1,523,273 | ) | (183,148 | ) | - | |||||||
Other | 2,487,075 | 2,460,881 | 629,366 | |||||||||
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting | (435,970 | ) | (400,659 | ) | (110,857 | ) | ||||||
Excess of tax depreciation over book depreciation on operating limited partnership assets | (81,697 | ) | (81,919 | ) | (118,551 | ) | ||||||
Difference due to fiscal year for book purposes and calendar year for tax purposes | (4,669,536 | ) | (342,148 | ) | (528,839 | ) | ||||||
Income (loss) for tax return purposes, year ended December 31, 2014 | $ | (3,293,863 | ) | $ | 1,942,569 | $ | 452,501 |
F-59 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAX RETURN (Continued)
The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2016, are as follows:
Total | Series 15 | Series 16 | ||||||||||
Investments in operating limited partnerships - tax return December 31, 2015 | $ | (29,261,568 | ) | $ | (5,701,029 | ) | $ | (11,373,043 | ) | |||
Estimated share of loss for the three months ended March 31, 2016 | (437,128 | ) | (48,582 | ) | - | |||||||
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method | 27,468,772 | 5,078,894 | 9,143,256 | |||||||||
Impairment loss in investment in operating limited partnerships | (3,397,130 | ) | (189,424 | ) | (1,326,748 | ) | ||||||
Historic tax credits | 5,325,806 | - | 1,844,836 | |||||||||
Other | 301,248 | 860,141 | 1,711,699 | |||||||||
Investments in operating limited partnerships - as reported | $ | - | $ | - | $ | - |
F-60 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAX RETURN (Continued)
The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2016, are as follows:
Series 17 | Series 18 | Series 19 | ||||||||||
Investments in operating limited partnerships - tax return December 31, 2015 | $ | (3,872,136 | ) | $ | (5,826,248 | ) | $ | (2,489,112 | ) | |||
Estimated share of loss for the three months ended March 31, 2016 | (132,121 | ) | (237,589 | ) | (18,836 | ) | ||||||
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method | 4,426,234 | 5,555,949 | 3,264,439 | |||||||||
Impairment loss in investment in operating limited partnerships | (606,894 | ) | (963,351 | ) | (310,713 | ) | ||||||
Historic tax credits | 1,100,310 | 2,062,333 | 318,327 | |||||||||
Other | (915,393 | ) | (591,094 | ) | (764,105 | ) | ||||||
Investments in operating limited partnerships - as reported | $ | - | $ | - | $ | - |
F-61 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAX RETURN (Continued)
The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2015, are as follows:
Total | Series 15 | Series 16 | ||||||||||
Investments in operating limited partnerships - tax return December 31, 2014 | $ | (28,773,464 | ) | $ | (6,939,252 | ) | $ | (10,360,889 | ) | |||
Estimated share of loss for the three months ended March 31, 2015 | (562,650 | ) | (76,193 | ) | - | |||||||
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method | 27,893,359 | 6,350,536 | 8,177,820 | |||||||||
Impairment loss in investment in operating limited partnerships | (4,659,927 | ) | (747,267 | ) | (1,326,748 | ) | ||||||
Historic tax credits | 5,325,806 | - | 1,844,836 | |||||||||
Other | 776,876 | 1,412,176 | 1,664,981 | |||||||||
Investments in operating limited partnerships - as reported | $ | - | $ | - | $ | - |
F-62 |
Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAX RETURN (Continued)
The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2015, are as follows:
Series 17 | Series 18 | Series 19 | ||||||||||
Investments in operating limited partnerships - tax return December 31, 2014 | $ | (4,434,830 | ) | $ | (4,780,042 | ) | $ | (2,258,451 | ) | |||
Estimated share of loss for the three months ended March 31, 2015 | (230,032 | ) | (237,589 | ) | (18,836 | ) | ||||||
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method | 5,187,226 | 5,062,616 | 3,115,161 | |||||||||
Impairment loss in investment in operating limited partnerships | (1,311,848 | ) | (963,351 | ) | (310,713 | ) | ||||||
Historic tax credits | 1,100,310 | 2,062,333 | 318,327 | |||||||||
Other | (310,826 | ) | (1,143,967 | ) | (845,488 | ) | ||||||
Investments in operating limited partnerships - as reported | $ | - | $ | - | $ | - |
F-63 |
Boston Capital Tax Credit Fund III Limited Partnership
Series 15 through Series 19
NOTES TO FINANCIAL STATEMENTS - CONTINUED
March 31, 2016 and 2015
NOTE E - CONCENTRATION OF CREDIT RISK
The Fund maintains its cash and cash equivalent balances in several accounts in various financial institutions. The balances are generally insured by the Federal Deposit Insurance Corporation (FDIC) up to specified limits by each institution. At times, the balances may exceed these insurance limits; however, the fund has not experienced any losses with respect to it balances in excess of FDIC insurance. Management believes that no significant concentration of credit risk with respect to these cash and cash equivalent balances exists as of March 31, 2016.
NOTE F - FAIR VALUE OF FINANCIAL INSTRUMENTS
The Funds’s financial instruments relate to other assets and accounts payable - affiliates. Management has not disclosed the fair value of these financial instruments because determination of such fair value is deemed to be impractical. The other assets and accounts payable - affiliates are due from or owed to affiliates of the Fund. The unique nature of these financial instruments makes determination of any fair value impractical. See note B for disclosure of the carrying amount and terms of these financial instruments.
F-64 |