4. Property and Equipment


The Commission held the following property and equipment as of December 31, 2012: Computer database


Furniture and equipment Computers


Leasehold improvements Total Property and Equipment


Less: Accumulated Depreciation and Amortization Property and Equipment, Net


Depreciation and amortization expense totaled $107,497 for the year ended December 31, 2012.


5. Commitments and Contingencies Office Lease


On March 30, 2010, the Commission signed an 85-month lease that expires on March 31, 2018. Under the terms of the lease, the rent escalates by 2.5% annually over the term of the lease. The landlord abated the first seven months’ rent. The cap on increased operating charges is 3%.


Under GAAP, lease incentives and scheduled rent increases over a lease term are recognized on a straight-line basis over the term of the lease. The difference between the GAAP rent expense and the required lease payments is recorded as deferred rent in the ac- companying statement of financial position.


Future minimum lease payments, subject to increases based on operating expenses, real estate taxes and Consumer Price Index adjustments, are as follows:


For the Year Ending December 31, 2013 2014 2015 2016 2017 2018


Total


Rent expense totaled $191,854 for the year ended December 31, 2012. Capital Lease


In April 2010, the Commission entered into a lease agreement with a vendor to lease office equipment. The lease agreement has been classified as capital lease, which are generally accounted for as addition to property and equipment using lease financing. Under the lease agreement, the Commission pays 36 monthly rental payments from the date the equipment was delivered. The present value of the future minimum lease payments is $5,219 as of December 31, 2012. The cost of the capitalized equipment and the related accumulated amortization totaled $46,968 and $25,047, respectively, as of December 31, 2012.


$ 198,356 203,315 208,398 213,608 218,948 36,641


$1,079,266


$501,695 235,196 46,968 4,805


788,664


(546,671) $241,993


32


The Commission on Accreditation for Law Enforcement Agencies


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