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Note 1 - Organization and Summary of Significant Accounting Policies: Going Concern (Policies)
12 Months Ended
Dec. 31, 2013
Policies  
Going Concern

Going Concern

 

During fiscal year 2012, the Partnership continued to generate recurring operating losses. In addition, the Partnership was in default on notes payable and related accrued interest payable that matured between December 1999 and December 2004.

 

Two of the Partnership's three remaining investments at December 31, 2012 involved purchases of partnership interests from partners who subsequently withdrew from the operating partnership. As of December 31, 2012, the Partnership was obligated for non-recourse notes payable of approximately $2,341,000 to the sellers of the partnership interests, bearing interest at 9.5 to 10 percent. Total outstanding accrued interest was approximately $5,750,000 at December 31, 2012. These obligations and the related interest were collateralized by the Partnership's investments in the local limited partnerships (the “Local Limited Partnerships”) and were payable only out of cash distributions from the Local Limited Partnerships, as defined in the notes. Unpaid interest was due at maturity of the notes. Both of the notes payable had matured and remained unpaid at December 31, 2012.

 

No payments were made on the notes payable during the year ended December 31, 2012. The Partnership had agreements with the non-recourse note holder for the two notes payable in which the note holder agreed to forebear taking any action under these notes in order to permit the Partnership to negotiate the sale of its limited partnership interests in these Local Limited Partnerships to the local general partner of the respective Local Limited Partnerships. These sales were expected to close during 2013.

 

As a result of the above, there was substantial doubt about the Partnership's ability to continue as a going concern. The Partnership’s previous independent registered public accounting firm included an explanatory paragraph in their audit report for the Partnership’s 2012 consolidated financial statements that indicated there was uncertainty that the Partnership would continue as a going concern.

 

As of December 31, 2013, the Partnership's independent registered public accounting firm issued an unqualified opinion that did not include an explanatory paragraph with respect to going concern uncertainty.