NATIONAL OILHEAT RESEARCH ALLIANCE, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017 AND 2016
NOTE 6 - STATE GRANTS PAYABLE AND OBLIGATION FOR UNALLOCATED REBATES
Under NORA Public Law 113-79, the Alliance has entered into various agreements with state organizations, which may
require periodic payment of grant funds. The outstanding grant liability by program is as follows as of December 31:
2017 2016
Research, development, and demonstration $ 994,231 $ 986,809
Heating oil efficiency and upgrade 1,247,501 1,848,236
Consumer education, safety, and training 1,147,358 1,266,797
Unallocated state rebates 2,615,817 2,930,877
Total $ 6,004,907 $ 7,032,719
NOTE 7 - ADMINISTRATIVE EXPENSE CAP
NORA Public Law 113-79 requires the Alliance to limit expenditures for “Administrative” costs to five percent of
revenue generated by assessment remittances beginning April 1, 2014. In 2017, the Alliance expended $219,188 for
Administrative expenses, which was 2 percent of net assessments revenue in the year ended December 31, 2017. In
2016, the Alliance expended $248,101 for Administrative expenses, which was 3 percent of net assessments revenue in
the year ended December 31, 2016. Thus, management believes the Alliance is in compliance with NORA Public Law
113-79.
NOTE 8 - COLLECTION COSTS
The Alliance has also developed an audit system for collections compliance and has the legal authority to conduct audits
to ensure member compliance. Collection costs include the costs incurred to process annual assessments, to publicize
the collection system, and to ascertain compliance as stipulated by NORA Public Law 113-79. Collection costs were
$90,849 and $118,876 for the years ended December 31, 2017 and 2016, respectively.
NOTE 9 - DESIGNATED NET ASSETS
Pre-2014 Reauthorization Designated Net Assets
As discussed previously, NORA Public Law 113-79 became effective April 1, 2014. The Alliance designated the
remaining net assets under the former NORA Public Law 106-469 for use in a national oilheat education program. As of
December 31, 2017 and 2016, $55,933 remained unspent and are designated for future use.
State Grants and Rebates Made After Year-End Designated Net Assets
The Alliance establishes a budget for net assessments revenue and makes state grants and obligations for state rebates
based on this budget. Actual results were not substantially different than this initial budget.
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