EX-13 2 v347823_ex13.htm 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, 2013 AND 2012

 

 
 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

  TABLE OF CONTENTS  
     
    PAGE
     
REPORTS OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMS F-3
     
FINANCIAL STATEMENTS  
     
  BALANCE SHEETS F-5
     
  STATEMENTS OF OPERATIONS F-11
     
  STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) F-17
     
  STATEMENTS OF CASH FLOWS F-23
     
  NOTES TO FINANCIAL STATEMENTS F-29

 

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.

 

F-2
 

 

Report of Independent Registered Public Accounting Firm

 

To the Partners  

Boston Capital Tax Credit Fund III Limited Partnership

 

We have audited the accompanying balance sheet 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, 2013, and the related statements of operations, partners’ capital (deficit) and cash flow for the total partnership and for each series for the year ended March 31, 2013. The Partnership’s management is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audit.

 

We conducted our audit 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 audit of the financial statements provides 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, 2013, and the results of its operations and cash flows for the total Partnership and for each series for the year ended March 31, 2013, in conformity with accounting principles generally accepted in the United States of America.

 

/s/ CohnReznick LLP  
   
COHNREZNICK LLP  
   
Bethesda, Maryland  
June 27, 2013  

 

F-3
 

 

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, in total and for each series, as of March 31, 2012, and the related statements of operations, changes in partners’ capital (deficit) and cash flows for the total partnership and for each of the series for the year ended March 31, 2012. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

 

We conducted our audit 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 has determined that it 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 audit provides 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, 2012, and the results of its operations and its cash flows for the total partnership and for each of the series for the year ended March 31, 2012, in conformity with accounting principles generally accepted in the United States of America.

 

/s/ Reznick Group, P.C.  
   
REZNICK GROUP, P.C.  
   
Bethesda, Maryland  
June 29, 2012  

 

F-4
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

BALANCE SHEETS

 

March 31, 2013 and 2012

 

   Total 
   2013   2012 
ASSETS        
         
OTHER ASSETS          
Cash and cash equivalents  $5,933,101   $4,880,195 
Other assets   69,400    14,400 
           
   $6,002,501   $4,894,595 
           
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)          
           
LIABILITIES          
Accounts payable and accrued expenses  $32,246   $29,746 
Accounts payable - affiliates   23,832,722    24,351,080 
Capital contributions payable   91,360    91,360 
           
    23,956,328    24,472,186 
           
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, 2013 and 2012   -    - 
Limited partners          
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 21,996,102 issued and 21,986,702 and 21,992,202 outstanding at March 31, 2013 and 2012, respectively   (15,919,011)   (17,526,537)
General partner   (2,034,816)   (2,051,054)
           
    (17,953,827)   (19,577,591)
           
   $6,002,501   $4,894,595 

 

(continued)

 

F-5
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

BALANCE SHEETS - CONTINUED

 

March 31, 2013 and 2012

 

   Series 15 
   2013   2012 
ASSETS          
           
OTHER ASSETS          
Cash and cash equivalents  $184,136   $198,803 
Other assets   -    - 
           
   $184,136   $198,803 
           
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)          
           
LIABILITIES          
Accounts payable and accrued expenses  $1,246   $1,246 
Accounts payable - affiliates   3,943,793    3,805,724 
Capital contributions payable   -    - 
           
    3,945,039    3,806,970 
           
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, 2013 and 2012   -    - 
Limited partners          
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,870,500 issued 3,866,900 and 3,869,900 outstanding at March 31, 2013 and 2012, respectively   (3,401,105)   (3,249,896)
General partner   (359,798)   (358,271)
           
    (3,760,903)   (3,608,167)
           
   $184,136   $198,803 

 

(continued)

 

 

F-6
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

BALANCE SHEETS - CONTINUED

 

March 31, 2013 and 2012

 

   Series 16 
   2013   2012 
ASSETS          
           
OTHER ASSETS          
Cash and cash equivalents  $264,550   $360,565 
Other assets   65,000    - 
           
   $329,550   $360,565 
           
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)          
           
LIABILITIES          
Accounts payable and accrued expenses  $5,000   $5,000 
Accounts payable - affiliates   8,656,186    8,521,279 
Capital contributions payable   50,008    50,008 
           
    8,711,194    8,576,287 
           
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, 2013 and 2012   -    - 
Limited partners          
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,429,402 issued and 5,425,102 and 5,427,102 outstanding at March 31, 2013 and 2012, respectively   (7,831,219)   (7,666,956)
General partner   (550,425)   (548,766)
           
    (8,381,644)   (8,215,722)
           
   $329,550   $360,565 

 

(continued)

 

F-7
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

BALANCE SHEETS - CONTINUED

 

March 31, 2013 and 2012

 

   Series 17 
   2013   2012 
ASSETS          
           
OTHER ASSETS          
Cash and cash equivalents  $258,319   $344,436 
Other assets   4,400    4,400 
           
   $262,719   $348,836 
           
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)          
           
LIABILITIES          
Accounts payable and accrued expenses  $18,500   $18,500 
Accounts payable - affiliates   6,830,975    7,003,068 
Capital contributions payable   22,798    22,798 
           
    6,872,273    7,044,366 
           
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, 2013 and 2012   -    - 
Limited partners          
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,000,000 issued 4,998,500 and 4,999,000 outstanding at March 31, 2013 and 2012, respectively   (6,122,681)   (6,207,797)
General partner   (486,873)   (487,733)
           
    (6,609,554)   (6,695,530)
           
   $262,719   $348,836 

 

(continued)

 

F-8
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

BALANCE SHEETS - CONTINUED

 

March 31, 2013 and 2012

 

   Series 18 
   2013   2012 
ASSETS          
           
OTHER ASSETS          
Cash and cash equivalents  $231,682   $164,525 
Other assets   -    10,000 
           
   $231,682   $174,525 
           
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)          
           
LIABILITIES          
Accounts payable and accrued expenses  $-   $5,000 
Accounts payable - affiliates   4,401,768    5,021,009 
Capital contributions payable   18,554    18,554 
           
    4,420,322    5,044,563 
           
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, 2013 and 2012   -    - 
Limited partners          
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,616,200 issued and outstanding at March 31, 2013 and 2012   (3,836,526)   (4,511,110)
General partner   (352,114)   (358,928)
           
    (4,188,640)   (4,870,038)
           
   $231,682   $174,525 

 

(continued)

 

F-9
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

BALANCE SHEETS - CONTINUED

 

March 31, 2013 and 2012

 

   Series 19 
   2013   2012 
ASSETS          
           
OTHER ASSETS          
Cash and cash equivalents  $4,994,414   $3,811,866 
Other assets   -    - 
           
   $4,994,414   $3,811,866 
           
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)          
           
LIABILITIES          
Accounts payable and accrued expenses  $7,500   $- 
Accounts payable - affiliates   -    - 
Capital contributions payable   -    - 
           
    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, 2013 and 2012   -    - 
Limited partners          
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 4,080,000 issued and outstanding at March 31, 2013 and 2012   5,272,520    4,109,222 
General partner   (285,606)   (297,356)
           
    4,986,914    3,811,866 
           
   $4,994,414   $3,811,866 

 

See notes to financial statements

 

F-10
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

STATEMENTS OF OPERATIONS

 

Years ended March 31, 2013 and 2012

 

   Total 
   2013   2012 
Income          
Interest income  $20,309   $26,922 
Other income   75,693    30,350 
           
Total income   96,002    57,272 
           
Share of income from operating limited partnerships   2,581,396    820,440 
           
Expenses          
Professional fees   165,859    160,346 
Partnership management fee   742,295    541,340 
General and administrative expenses   145,480    103,985 
           
    1,053,634    805,671 
           
NET INCOME (LOSS)  $1,623,764   $72,041 
           
Net income (loss) allocated to general partner  $16,238   $720 
           
Net income (loss) allocated to limited partners  $1,607,526   $71,321 
           
Net income (loss) per BAC  $0.07   $0.00 

 

(continued)

 

F-11
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2013 and 2012

 

   Series 15 
   2013   2012 
Income          
Interest income  $648   $1,439 
Other income   856    1,318 
           
Total income   1,504    2,757 
           
Share of income from operating limited partnerships   40,762    325,050 
           
Expenses          
Professional fees   33,804    35,926 
Partnership management fee   133,941    138,632 
General and administrative expenses   27,257    20,023 
           
    195,002    194,581 
           
NET INCOME (LOSS)  $(152,736)  $133,226 
           
Net income (loss) allocated to general partner  $(1,527)  $1,332 
           
Net income (loss) allocated to limited partners  $(151,209)  $131,894 
           
Net income (loss) per BAC  $(0.04)  $0.03 

 

(continued)

 

F-12
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2013 and 2012

 

   Series 16 
   2013   2012 
Income          
Interest income  $762   $1,848 
Other income   1,637    2,024 
           
Total income   2,399    3,872 
           
Share of income from operating limited partnerships   149,074    148,294 
           
Expenses          
Professional fees   43,914    39,313 
Partnership management fee   240,696    254,665 
General and administrative expenses   32,785    24,386 
           
    317,395    318,364 
           
NET INCOME (LOSS)  $(165,922)  $(166,198)
           
Net income (loss) allocated to general partner  $(1,659)  $(1,662)
           
Net income (loss) allocated to limited partners  $(164,263)  $(164,536)
           
Net income (loss) per BAC  $(0.03)  $(0.03)

 

(continued)

 

F-13
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2013 and 2012

 

   Series 17 
   2013   2012 
Income          
Interest income  $796   $1,642 
Other income   11,427    16,209 
           
Total income   12,223    17,851 
           
Share of income from operating limited partnerships   336,562    247,646 
           
Expenses          
Professional fees   35,656    34,300 
Partnership management fee   196,681    234,245 
General and administrative expenses   30,472    22,460 
           
    262,809    291,005 
           
NET INCOME (LOSS)  $85,976   $(25,508)
           
Net income (loss) allocated to general partner  $860   $(255)
           
Net income (loss) allocated to limited partners  $85,116   $(25,253)
           
Net income (loss) per BAC  $0.02   $(0.01)

 

(continued)

 

F-14
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2013 and 2012

 

   Series 18 
   2013   2012 
Income          
Interest income  $436   $630 
Other income   51,933    10,485 
           
Total income   52,369    11,115 
           
           
Share of income from operating limited partnerships   859,438    - 
           
Expenses          
Professional fees   27,441    26,832 
Partnership management fee   177,773    (203,875)
General and administrative expenses   25,195    18,184 
           
    230,409    (158,859)
           
NET INCOME (LOSS)  $681,398   $169,974 
           
Net income (loss) allocated to general partner  $6,814   $1,700 
           
Net income (loss) allocated to limited partners  $674,584   $168,274 
           
Net income (loss) per BAC  $0.19   $0.05 

 

(continued)

 

F-15
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2013 and 2012

 

   Series 19 
   2013   2012 
Income          
Interest income  $17,667   $21,363 
Other income   9,840    314 
           
Total income   27,507    21,677 
           
           
Share of income from operating limited partnerships   1,195,560    99,450 
           
Expenses          
Professional fees   25,044    23,975 
Partnership management fee   (6,796)   117,673 
General and administrative expenses   29,771    18,932 
           
    48,019    160,580 
           
NET INCOME (LOSS)  $1,175,048   $(39,453)
           
Net income (loss) allocated to general partner  $11,750   $(395)
           
Net income (loss) allocated to limited partners  $1,163,298   $(39,058)
           
Net income (loss) per BAC  $0.29   $(0.01)

 

See notes to financial statements

 

F-16
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)

 

Years ended March 31, 2013 and 2012

 

   Limited   General     
Total  partners   partner   Total 
             
Partners’ capital (deficit), March 31, 2011  $(17,338,646)  $(2,049,156)  $(19,387,802)
                
Distributions to partners   (259,212)   (2,618)   (261,830)
                
Net income (loss)   71,321    720    72,041 
                
Partners’ capital (deficit), March 31, 2012  $(17,526,537)  $(2,051,054)  $(19,577,591)
                
Distributions to partners   -    -    - 
                
Net income (loss)   1,607,526    16,238    1,623,764 
                
Partners’ capital (deficit), March 31, 2013  $(15,919,011)  $(2,034,816)  $(17,953,827)

 

(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, 2013 and 2012

 

   Limited   General     
Series 15  partners   partner   Total 
             
Partners’ capital (deficit), March 31, 2011  $(3,381,790)  $(359,603)  $(3,741,393)
                
Distributions to partners   -    -    - 
                
Net income (loss)   131,894    1,332    133,226 
                
Partners’ capital (deficit), March 31, 2012   (3,249,896)   (358,271)   (3,608,167)
                
Distributions to partners   -    -    - 
                
Net income (loss)   (151,209)   (1,527)   (152,736)
                
Partners’ capital (deficit), March 31, 2013  $(3,401,105)  $(359,798)  $(3,760,903)

 

(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, 2013 and 2012

 

   Limited   General     
Series 16  partners   partner   Total 
             
Partners’ capital (deficit), March 31, 2011  $(7,502,420)  $(547,104)  $(8,049,524)
                
Distributions to partners   -    -    - 
                
Net income (loss)   (164,536)   (1,662)   (166,198)
                
Partners’ capital (deficit), March 31, 2012   (7,666,956)   (548,766)   (8,215,722)
                
Distributions to partners   -    -    - 
                
Net income (loss)   (164,263)   (1,659)   (165,922)
                
Partners’ capital (deficit), March 31, 2013  $(7,831,219)  $(550,425)  $(8,381,644)

 

(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, 2013 and 2012

 

   Limited   General     
Series 17  partners   partner   Total 
             
Partners’ capital (deficit), March 31, 2011  $(6,182,544)  $(487,478)  $(6,670,022)
                
Distributions to partners   -    -    - 
                
Net income (loss)   (25,253)   (255)   (25,508)
                
Partners’ capital (deficit), March 31, 2012   (6,207,797)   (487,733)   (6,695,530)
                
Distributions to partners   -    -    - 
                
Net income (loss)   85,116    860    85,976 
                
Partners’ capital (deficit), March 31, 2013  $(6,122,681)  $(486,873)  $(6,609,554)

 

(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, 2013 and 2012

 

   Limited   General     
Series 18  partners   partner   Total 
             
Partners’ capital (deficit), March 31, 2011  $(4,679,384)  $(360,628)  $(5,040,012)
                
Distributions to partners   -    -    - 
                
Net income (loss)   168,274    1,700    169,974 
                
Partners’ capital (deficit), March 31, 2012   (4,511,110)   (358,928)   (4,870,038)
                
Distributions to partners   -    -    - 
                
Net income (loss)   674,584    6,814    681,398 
                
Partners’ capital (deficit), March 31, 2013  $(3,836,526)  $(352,114)  $(4,188,640)

 

(continued)

 

F-21
 

 

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, 2013 and 2012

 

   Limited   General     
Series 19  partners   partner   Total 
             
Partners’ capital (deficit), March 31, 2011  $4,407,492   $(294,343)  $4,113,149 
                
Distributions to partners   (259,212)   (2,618)   (261,830)
                
Net income (loss)   (39,058)   (395)   (39,453)
                
Partners’ capital (deficit), March 31, 2012   4,109,222    (297,356)   3,811,866 
                
Distributions to partners   -    -    - 
                
Net income (loss)   1,163,298    11,750    1,175,048 
                
Partners’ capital (deficit), March 31, 2013  $5,272,520   $(285,606)  $4,986,914 

 

See notes to financial statements

 

F-22
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

STATEMENTS OF CASH FLOWS

 

Years ended March 31, 2013 and 2012

 

   Total 
   2013   2012 
Cash flows from operating activities          
Net income (loss)  $1,623,764   $72,041 
Adjustments to reconcile net income (loss) to net cash used in operating activities          
Share of income from operating limited partnerships   (2,581,396)   (820,440)
Changes in assets and liabilities          
Other assets   (13,575)   61,538 
Accounts payable and accrued expenses   2,500    (82,800)
Accounts payable - affiliates   (518,358)   (370,629)
           
Net cash used in operating activities   (1,487,065)   (1,140,290)
           
Cash flows from investing activities          
Proceeds from disposition of operating limited partnerships   2,539,971    818,656 
           
Net cash provided by investing activities   2,539,971    818,656 
           
Cash flows from financing activities          
Distributions to partners   -    (261,830)
           
Net cash used in financing activities   -    (261,830)
           
NET INCREASE (DECREASE) IN          
CASH AND CASH EQUIVALENTS   1,052,906    (583,464)
           
Cash and cash equivalents, beginning   4,880,195    5,463,659 
           
Cash and cash equivalents, end  $5,933,101   $4,880,195 

 

(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, 2013 and 2012

 

   Series 15 
   2013   2012 
Cash flows from operating activities          
Net income (loss)  $(152,736)  $133,226 
Adjustments to reconcile net income (loss) to net cash used in operating activities          
Share of income from operating limited partnerships   (40,762)   (325,050)
Changes in assets and liabilities          
Other assets   -    69,038 
Accounts payable and accrued expenses   -    (37,500)
Accounts payable - affiliates   138,069    (265,407)
           
Net cash used in operating activities   (55,429)   (425,693)
           
Cash flows from investing activities          
Proceeds from disposition of operating limited partnerships   40,762    325,050 
           
Net cash provided by investing activities   40,762    325,050 
           
Cash flows from financing activities          
Distributions to partners   -    - 
           
Net cash used in financing activities   -    - 
           
NET INCREASE (DECREASE) IN          
CASH AND CASH EQUIVALENTS   (14,667)   (100,643)
           
Cash and cash equivalents, beginning   198,803    299,446 
           
Cash and cash equivalents, end  $184,136   $198,803 

 

(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, 2013 and 2012

 

   Series 16 
   2013   2012 
Cash flows from operating activities          
Net income (loss)  $(165,922)  $(166,198)
Adjustments to reconcile net income (loss) to net cash used in operating activities          
Share of income from operating limited partnerships   (149,074)   (148,294)
Changes in assets and liabilities          
Other assets   (23,575)   2,500 
Accounts payable and accrued expenses   -    (7,500)
Accounts payable - affiliates   134,907    116,741 
           
Net cash used in operating activities   (203,664)   (202,751)
           
Cash flows from investing activities          
Proceeds from disposition of operating limited partnerships   107,649    146,510 
           
Net cash provided by investing activities   107,649    146,510 
           
Cash flows from financing activities          
Distributions to partners   -    - 
           
Net cash used in financing activities   -    - 
           
NET INCREASE (DECREASE) IN          
CASH AND CASH EQUIVALENTS   (96,015)   (56,241)
           
Cash and cash equivalents, beginning   360,565    416,806 
           
Cash and cash equivalents, end  $264,550   $360,565 

 

(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, 2013 and 2012

 

   Series 17 
   2013   2012 
Cash flows from operating activities          
Net income (loss)  $85,976   $(25,508)
Adjustments to reconcile net income (loss) to net cash used in operating activities          
Share of income from operating limited partnerships   (336,562)   (247,646)
Changes in assets and liabilities          
Other assets   -    - 
Accounts payable and accrued expenses   -    (30,000)
Accounts payable - affiliates   (172,093)   71,531 
           
Net cash used in operating activities   (422,679)   (231,623)
           
Cash flows from investing activities          
Proceeds from disposition of operating limited partnerships   336,562    247,646 
           
Net cash provided by investing activities   336,562    247,646 
           
Cash flows from financing activities          
Distributions to partners   -    - 
           
Net cash used in financing activities   -    - 
           
NET INCREASE (DECREASE) IN          
CASH AND CASH EQUIVALENTS   (86,117)   16,023 
           
Cash and cash equivalents, beginning   344,436    328,413 
           
Cash and cash equivalents, end  $258,319   $344,436 

 

(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, 2013 and 2012

 

   Series 18 
   2013   2012 
Cash flows from operating activities          
Net income (loss)  $681,398   $169,974 
Adjustments to reconcile net income (loss) to net cash used in operating activities          
Share of income from operating limited partnerships   (859,438)   - 
Changes in assets and liabilities          
Other assets   10,000    (10,000)
Accounts payable and accrued expenses   (5,000)   5,000 
Accounts payable - affiliates   (619,241)   (293,494)
           
Net cash used in operating activities   (792,281)   (128,520)
           
Cash flows from investing activities          
Proceeds from disposition of operating limited partnerships   859,438    - 
           
Net cash provided by investing activities   859,438    - 
           
Cash flows from financing activities          
Distributions to partners   -    - 
           
Net cash used in financing activities   -    - 
           
NET INCREASE (DECREASE) IN          
CASH AND CASH EQUIVALENTS   67,157    (128,520)
           
Cash and cash equivalents, beginning   164,525    293,045 
           
Cash and cash equivalents, end  $231,682   $164,525 

 

(continued)

 

F-27
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2013 and 2012

 

   Series 19 
   2013   2012 
Cash flows from operating activities          
Net income (loss)  $1,175,048   $(39,453)
Adjustments to reconcile net income (loss) to net cash used in operating activities          
Share of income from operating limited partnerships   (1,195,560)   (99,450)
Changes in assets and liabilities          
Other assets   -    - 
Accounts payable and accrued expenses   7,500    (12,800)
Accounts payable - affiliates   -    - 
           
Net cash used in operating activities   (13,012)   (151,703)
           
Cash flows from investing activities          
Proceeds from disposition of operating limited partnerships   1,195,560    99,450 
           
Net cash provided by investing activities   1,195,560    99,450 
           
Cash flows from financing activities          
Distributions to partners   -    (261,830)
           
Net cash used in financing activities   -    (261,830)
           
NET INCREASE (DECREASE) IN          
CASH AND CASH EQUIVALENTS   1,182,548    (314,083)
           
Cash and cash equivalents, beginning   3,811,866    4,125,949 
           
Cash and cash equivalents, end  $4,994,414   $3,811,866 

 

See notes to financial statements

 

F-28
 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS

 

March 31, 2013 and 2012

 

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-29
 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

The BACs issued and outstanding in each series as of March 31, 2013 and 2012 are as follows:

 

   Issued   Outstanding 
   2013   2012   2013   2012 
Series 15   3,870,500    3,870,500    3,866,900    3,869,900 
Series 16   5,429,402    5,429,402    5,425,102    5,427,102 
Series 17   5,000,000    5,000,000    4,998,500    4,999,000 
Series 18   3,616,200    3,616,200    3,616,200    3,616,200 
Series 19   4,080,000    4,080,000    4,080,000    4,080,000 
    21,996,102    21,996,102    21,986,702    21,992,202 

 

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-30
 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS – CONTINUED

 

March 31, 2013 and 2012

 

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:

 

   2013   2012 
Series 15  $36,759   $36,759 
Series 16   31,893    8,318 
Series 17   60,785    60,785 
Series 18   51,536    62,536 
Series 19   25,120    25,120 
   $206,093   $193,518 

 

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, 2013 and 2012, 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-31
 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS – CONTINUED

 

March 31, 2013 and 2012

 

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-32
 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS – CONTINUED

 

March 31, 2013 and 2012

 

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.

 

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 2009 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.

 

F-33
 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

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, 2013 and 2012 are as follows:

 

   2013   2012 
Series 15   3,868,900    3,869,900 
Series 16   5,426,435    5,427,102 
Series 17   4,998,833    4,999,000 
Series 18   3,616,200    3,616,200 
Series 19   4,080,000    4,080,000 
    21,990,368    21,992,202 

 

Recent Accounting Pronouncements

 

In May 2011, the Financial Accounting Standards Board ("FASB") issued an update to existing guidance related to fair value measurements on how to measure fair value and what disclosures to provide about fair value measurements. For fair value measurements categorized as level 3, a reporting entity should disclose quantitative information of the unobservable inputs and assumptions, a description of the valuation processes and narrative description of the sensitivity of the fair value to changes in unobservable inputs. This update is effective for interim and annual periods beginning after December 15, 2011. The adoption of this update did not materially affect the Fund's condensed financial statements.

 

F-34
 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

NOTE B - RELATED PARTY TRANSACTIONS

 

During the years ended March 31, 2013 and 2012, 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, 2013 and 2012, are as follows:

 

F-35
 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

NOTE B - RELATED PARTY TRANSACTIONS (CONTINUED)

 

   2013 
   Gross Partnership
Management Fee		   Asset
Management and
Reporting Fee		   Partnership Management
Fee net of Asset
Management and
Reporting Fee		 
Series 15  $163,069   $29,128   $133,941 
Series 16   292,407    51,711    240,696 
Series 17   291,969    95,288    196,681 
Series 18   240,197    62,424    177,773 
Series 19   106,876    113,672    (6,796)
   $1,094,518   $352,223   $742,295 

 

   2012 
   Gross Partnership
Management Fee		   Asset
Management and
Reporting Fee		   Partnership Management
Fee net of Asset
Management and
Reporting Fee		 
Series 15  $199,593   $60,961   $138,632 
Series 16   346,741    92,076    254,665 
Series 17   316,531    82,286    234,245 
Series 18   264,840    468,715    (203,875)
Series 19   152,661    34,988    117,673 
   $1,280,366   $739,026   $541,340 

 

The partnership management fees paid for the years ended March 31, 2013 and 2012 are as follows:

 

   2013   2012 
Series 15  $25,000   $465,000 
Series 16   157,500    230,000 
Series 17   464,062    245,000 
Series 18   859,438    400,000 
Series 19   106,876    152,661 
   $1,612,876   $1,492,661 

 

F-36
 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

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, 2013 and 2012, total partnership management fees accrued were $23,197,360 and $23,715,718, 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, 2013 and 2012 there were no advances. The total advances from the affiliate of the general partner to the Operating Partnerships as of March 31, 2013 and 2012 are as follows:

 

   2013   2012 
Series 15  $-   $- 
Series 16   -    - 
Series 17   635,362    635,362 
Series 18   -    - 
Series 19   -    - 
   $635,362   $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, 2013 and 2012 charged to each series’ operations are as follows:

 

   2013   2012 
Series 15  $21,065   $13,372 
Series 16   24,361    15,446 
Series 17   23,229    13,880 
Series 18   19,440    12,269 
Series 19   19,344    12,342 
   $107,439   $67,309 

 

F-37
 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

NOTE B - RELATED PARTY TRANSACTIONS (CONTINUED)

 

Accounts payable - affiliates at March 31, 2013 and 2012 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, 2013 and 2012, 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, 2013 and 2012 by series are as follows:

 

   2013   2012 
Series 15   25    30 
Series 16   31    38 
Series 17   25    27 
Series 18   20    23 
Series 19   9    16 
    110    134 

F-38
 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (CONTINUED)

 

During the year ended March 31, 2013 the Fund disposed of twenty-four operating limited partnerships. A summary of the dispositions by Series for March 31, 2013 is as follows:

 

   Operating   Sale of         
   Partnership   Underlying   Partnership     
   Interest   Operating   Proceeds from   Gain/(Loss) on 
   Transferred   Partnership   Disposition *   Disposition 
Series 15   5    -   $40,762   $40,762 
Series 16   7    -    107,649    172,649 
Series 17   1    1    336,562    336,562 
Series 18   1    2    859,438    859,438 
Series 19   7    -    1,195,560    1,195,560 
Total   21    3   $2,539,971   $2,604,971 

 

* Fund proceeds from disposition does not include $65,000 recorded as a receivable as of March 31, 2013 for Series 16.

 

During the year ended March 31, 2012 the Fund disposed of eighteen operating limited partnerships and received additional proceeds from one operating limited partnership disposed of in the prior year. A summary of the dispositions by Series for March 31, 2012 is as follows:

 

   Operating   Sale of         
   Partnership   Underlying   Partnership     
   Interest   Operating   Proceeds from   Gain/(Loss) on 
   Transferred   Partnership   Disposition *   Disposition 
Series 15   5    1   $325,050   $325,050 
Series 16   5    -    146,510    148,294 
Series 17   4    1    247,646    247,646 
Series 18   -    1    -    - 
Series 19   1    -    99,450    99,450 
Total   15    3   $818,656   $820,440 

 

* Fund proceeds from disposition does not include the following amount which was due to a writeoff of capital contribution payable of $1,784 for Series 16.

 

F-39
 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

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, 2013 and 2012 by series are as follows:

 

   2013   2012 
Series 15  $-   $- 
Series 16   50,008    50,008 
Series 17   22,798    22,798 
Series 18   18,554    18,554 
Series 19   -    - 
   $91,360   $91,360 

 

F-40
 

 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The Fund’s investments in operating limited partnerships at March 31, 2013 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  $51,341,667   $7,581,708   $12,074,291 
                
Acquisition costs of operating limited partnerships   7,056,310    1,075,998    1,583,249 
                
Syndication costs from operating limited partnerships   (36,455)   -    - 
                
Cumulative distributions from operating limited partnerships   (111,389)   (4,207)   (20,268)
                
Cumulative impairment loss in investment in operating limited partnerships   (12,876,562)   (764,836)   (2,512,421)
                
Cumulative losses from operating limited partnerships   (45,373,571)   (7,888,663)   (11,124,851)
                
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, 2013 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of  December 31, 2012 (see note A)   (257,860)   (14,246)   (93,920)
                
The Fund has recorded acquisition costs at March 31, 2013 which have not been recorded in the net assets of the operating limited partnerships (see note A)   (921,085)   (180,526)   (121,307)
                
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)   883,274    111,396    - 

 

F-41
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

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)   (35,033,727)   (7,552,909)   (9,782,878)
                
The Fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)   300,838    86,996    123,421 
                
Cumulative impairment loss in investment in operating limited partnerships   12,876,562    764,836    2,512,421 
                
Other   267,534    (29,476)   429,517 
                
Equity per operating limited partnerships’ combined financial statements  $(21,884,464)  $(6,813,929)  $(6,932,746)

 

F-42
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The Fund’s investments in operating limited partnerships at March 31, 2013 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  $14,491,224   $11,702,540   $5,491,904 
                
Acquisition costs of operating limited partnerships   2,117,487    1,514,128    765,448 
                
Syndication costs from operating limited partnerships   -    (36,455)   - 
                
Cumulative distributions from operating limited partnerships   (28,883)   (54,267)   (3,764)
                
Cumulative impairment loss in investment in operating limited partnerships   (3,288,846)   (4,172,906)   (2,137,553)
                
Cumulative losses from operating limited partnerships   (13,290,982)   (8,953,040)   (4,116,035)
                
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, 2013 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of  December 31, 2012 (see note A)   (124,842)   (5,588)   (19,264)
                
The Fund has recorded acquisition costs at March 31, 2013 which have not been recorded in the net assets of the operating limited partnerships (see note A)   (591,855)   -    (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)   418,588    309,042    44,248 

 

F-43
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

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)   (7,473,233)   (6,478,163)   (3,746,544)
                
The Fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)   14,732    75,689    - 
                
Cumulative impairment loss in investment in operating limited partnerships   3,288,846    4,172,906    2,137,553 
                
Other   (22,278)   (89,451)   (20,778)
                
Equity per operating limited partnerships’ combined financial statements  $(4,490,042)  $(2,015,565)  $(1,632,182)

 

F-44
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The Fund’s investments in operating limited partnerships at March 31, 2012 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   67,188,022   $9,051,543   $13,600,679 
                
Acquisition costs of operating limited partnerships   9,171,431    1,218,899    1,788,508 
                
Syndication costs from operating limited partnerships   (36,455)   -    - 
                
Cumulative distributions from operating limited partnerships   (188,000)   (10,831)   (26,120)
                
Cumulative impairment loss in investment in operating limited partnerships   (17,303,883)   (867,409)   (2,861,385)
                
Cumulative losses from operating limited partnerships   (58,831,115)   (9,392,202)   (12,501,682)
                
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, 2012 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of  December 31, 2011 (see note A)   (348,203)   (14,246)   (93,920)
                
The Fund has recorded acquisition costs at March 31, 2012 which have not been recorded in the net assets of the operating limited partnerships (see note A)   (1,556,118)   (180,526)   (121,307)
                
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)   1,012,965    136,871    - 

 

F-45
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

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)   (40,003,128)   (8,366,571)   (9,860,741)
                
The Fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)   314,521    86,996    130,181 
                
Cumulative impairment loss in investment in operating limited partnerships   17,303,883    867,409    2,861,385 
                
Other   271,864    (41,552)   438,273 
                
Equity per operating limited partnerships’ combined financial statements  $(23,004,216)  $(7,511,619)  $(6,646,129)

 

F-46
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The Fund’s investments in operating limited partnerships at March 31, 2012 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  $15,940,952   $17,186,357   $11,408,491 
                
Acquisition costs of operating limited partnerships   2,328,579    2,310,366    1,525,079 
                
Syndication costs from operating limited partnerships   -    (36,455)   - 
                
Cumulative distributions from operating limited partnerships   (28,883)   (118,167)   (3,999)
                
Cumulative impairment loss in investment in operating limited partnerships   (4,596,588)   (4,363,063)   (4,615,438)
                
Cumulative losses from operating limited partnerships   (13,644,060)   (14,979,038)   (8,314,133)
                
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, 2012 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of  December 31, 2011 (see note A)   (174,842)   (5,588)   (59,607)
                
The Fund has recorded acquisition costs at March 31, 2012 which have not been recorded in the net assets of the operating limited partnerships (see note A)   (650,525)   -    (603,760)
                
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)   467,481    357,422    51,191 

 

F-47
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

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)   (6,800,814)   (9,565,423)   (5,409,579)
                
The Fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)   14,732    75,689    6,923 
                
Cumulative impairment loss in investment in operating limited partnerships   4,596,588    4,363,063    4,615,438 
                
Other   (9,562)   (92,977)   (22,318)
                
Equity per operating limited partnerships’ combined financial statements  $(2,556,942)  $(4,867,814)  $(1,421,712)

 

F-48
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of the operating limited partnerships at December 31, 2012 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS

 

   Total   Series 15   Series 16 
ASSETS               
                
Buildings and improvements, net of accumulated depreciation  $95,826,256   $11,960,583   $22,821,455 
                
Land   9,774,646    1,287,635    1,930,468 
                
Other assets   18,999,881    4,023,199    6,004,950 
                
   $124,600,783   $17,271,417   $30,756,873 
                
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)               
                
Mortgages and construction loans payable  $137,707,477   $24,148,955   $31,824,524 
                
Accounts payable and accrued expenses   6,965,641    350,564    3,300,317 
                
Other liabilities   12,147,565    872,433    2,298,505 
                
    156,820,683    25,371,952    37,423,346 
PARTNERS’ CAPITAL (DEFICIT)               
Boston Capital Tax Credit Fund III L.P.   (21,884,462)   (6,813,927)   (6,932,746)
Other partners   (10,335,438)   (1,286,608)   266,273 
                
    (32,219,900)   (8,100,535)   (6,666,473)
                
   $124,600,783   $17,271,417   $30,756,873 

 

F-49
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of the operating limited partnerships at December 31, 2012 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED

 

   Series 17   Series 18   Series 19 
ASSETS               
                
Buildings and improvements, net of accumulated depreciation  $30,801,499   $18,518,861   $11,723,858 
                
Land   3,860,381    1,830,682    865,480 
                
Other assets   4,966,333    2,915,815    1,089,584 
                
   $39,628,213   $23,265,358   $13,678,922 
                
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)               
                
Mortgages and construction loans payable  $46,893,314   $23,044,796   $11,795,888 
                
Accounts payable and accrued expenses   1,209,547    1,299,758    805,455 
                
Other liabilities   5,592,363    1,449,945    1,934,319 
                
    53,695,224    25,794,499    14,535,662 
PARTNERS’ CAPITAL (DEFICIT)               
Boston Capital Tax Credit Fund III L.P.   (4,490,042)   (2,015,565)   (1,632,182)
Other partners   (9,576,969)   (513,576)   775,442 
                
    (14,067,011)   (2,529,141)   (856,740)
                
   $39,628,213   $23,265,358   $13,678,922 

 

F-50
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of the operating limited partnerships at December 31, 2011 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS

 

   Total   Series 15   Series 16 
ASSETS               
                
Buildings and improvements, net of accumulated depreciation  $129,457,020   $16,874,324   $28,711,071 
                
Land   13,214,525    1,712,879    2,182,728 
                
Other assets   23,094,868    4,812,799    7,265,124 
                
   $165,766,413   $23,400,002   $38,158,923 
                
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)               
                
Mortgages and construction loans payable  $171,925,646   $30,686,298   $39,442,851 
                
Accounts payable and accrued expenses   8,024,363    343,231    3,412,569 
                
Other liabilities   16,888,786    982,737    1,433,900 
                
    196,838,795    32,012,266    44,289,320 
PARTNERS’ CAPITAL (DEFICIT)               
Boston Capital Tax Credit Fund III L.P.   (23,004,216)   (7,511,619)   (6,646,129)
Other partners   (8,068,166)   (1,100,645)   515,732 
                
    (31,072,382)   (8,612,264)   (6,130,397)
                
   $165,766,413   $23,400,002   $38,158,923 

 

F-51
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of the operating limited partnerships at December 31, 2011 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED

 

   Series 17   Series 18   Series 19 
ASSETS               
                
Buildings and improvements, net of accumulated depreciation  $35,549,893   $25,218,279   $23,103,453 
                
Land   4,296,381    2,627,321    2,395,216 
                
Other assets   5,512,378    3,235,664    2,268,903 
                
   $45,358,652   $31,081,264   $27,767,572 
                
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)               
                
Mortgages and construction loans payable  $49,568,081   $31,300,678   $20,927,738 
                
Accounts payable and accrued expenses   1,188,711    2,142,120    937,732 
                
Other liabilities   6,239,819    2,789,969    5,442,361 
                
    56,996,611    36,232,767    27,307,831 
PARTNERS’ CAPITAL (DEFICIT)               
Boston Capital Tax Credit Fund III L.P.   (2,556,942)   (4,867,814)   (1,421,712)
Other partners   (9,081,017)   (283,689)   1,881,453 
                
    (11,637,959)   (5,151,503)   459,741 
                
   $45,358,652   $31,081,264   $27,767,572 

 

F-52
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

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, 2012 are as follows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

 

   Total   Series 15   Series 16 
Revenue            
Rental  $26,731,006   $4,411,357   $6,091,709 
Interest and other   1,067,985    82,448    574,644 
                
    27,798,991    4,493,805    6,666,353 
Expenses               
Interest   4,474,965    631,620    936,848 
Depreciation and amortization   6,624,362    1,191,942    1,603,040 
Taxes and insurance   3,210,387    536,484    706,281 
Repairs and maintenance   6,581,642    1,009,388    1,648,565 
Operating expenses   10,321,858    1,735,643    2,546,703 
Other expenses   225,733    31,984    30,732 
                
    31,438,947    5,137,061    7,472,169 
                
NET LOSS  $(3,639,956)  $(643,256)  $(805,816)
                
Net loss allocated to Boston Capital Tax Credit Fund III L.P.*  $(2,962,809)  $(547,085)  $(833,896)
                
Net loss allocated to other partners  $(677,147)  $(96,171)  $28,080 

 

*Amounts include $547,085, $833,896, $717,911, $537,292, and $326,625 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, 2013 and 2012

 

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, 2012 are as follows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED

 

   Series 17   Series 18   Series 19 
Revenue               
Rental  $9,098,192   $4,762,942   $2,366,806 
Interest and other   238,140    129,361    43,392 
                
    9,336,332    4,892,303    2,410,198 
Expenses               
Interest   1,594,515    749,490    562,492 
Depreciation and amortization   2,101,456    1,143,170    584,754 
Taxes and insurance   1,017,457    656,003    294,162 
Repairs and maintenance   2,322,124    1,049,661    551,904 
Operating expenses   3,359,421    1,760,101    919,990 
Other expenses   35,553    71,381    56,083 
                
    10,430,526    5,429,806    2,969,385 
                
NET LOSS  $(1,094,194)  $(537,503)  $(559,187)
                
Net loss allocated to Boston Capital Tax Credit Fund III L.P.*  $(717,911)  $(537,292)  $(326,625)
                
Net loss allocated to other partners  $(376,283)  $(211)  $(232,562)

 

*Amounts include $547,085, $833,896, $717,911, $537,292, and $326,625 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, 2013 and 2012

 

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, 2011 are as follows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

 

   Total   Series 15   Series 16 
Revenue               
Rental  $33,706,796   $5,392,708   $7,295,567 
Interest and other   855,012    156,911    155,808 
                
    34,561,808    5,549,619    7,451,375 
Expenses               
Interest   6,075,031    767,359    1,141,429 
Depreciation and amortization   8,244,794    1,448,769    1,812,739 
Taxes and insurance   3,999,447    677,808    889,025 
Repairs and maintenance   7,908,133    1,198,185    1,745,900 
Operating expenses   12,640,384    2,134,670    2,744,393 
Other expenses   319,101    43,422    38,647 
                
    39,186,890    6,270,213    8,372,133 
                
NET LOSS  $(4,625,082)  $(720,594)  $(920,758)
                
Net loss allocated to Boston Capital Tax Credit Fund III L.P.*  $(4,045,294)  $(730,809)  $(1,010,045)
                
Net income (loss) allocated to other partners  $(579,788)  $10,215   $89,287 

 

*Amounts include $730,809, $1,010,045, $733,673, $1,197,176, and $373,591 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, 2013 and 2012

 

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, 2011 are as follows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED

 

   Series 17   Series 18   Series 19 
Revenue               
Rental  $9,984,884   $6,242,288   $4,791,349 
Interest and other   290,316    151,518    100,459 
                
    10,275,200    6,393,806    4,891,808 
Expenses               
Interest   1,873,449    1,227,151    1,065,643 
Depreciation and amortization   2,207,942    1,558,316    1,217,028 
Taxes and insurance   1,109,017    823,809    499,788 
Repairs and maintenance   2,426,319    1,668,122    869,607 
Operating expenses   3,482,269    2,311,943    1,967,109 
Other expenses   43,182    72,572    121,278 
                
    11,142,178    7,661,913    5,740,453 
                
NET LOSS  $(866,978)  $(1,268,107)  $(848,645)
                
Net loss allocated to Boston Capital Tax Credit Fund III L.P.*  $(733,673)  $(1,197,176)  $(373,591)
                
Net income (loss) allocated to other partners  $(133,305)  $(70,931)  $(475,054)

 

*Amounts include $730,809, $1,010,045, $733,673, $1,197,176, and $373,591 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-56
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

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, 2013 is reconciled as follows:

 

   Total   Series 15   Series 16 
             
Net income (loss) for financial reporting purposes  $1,623,764   $(152,736)  $(165,922)
                
Operating limited partnership rents received in advance   (9,091)   (5,565)   (3,597)
                
Accrued fund management fees not  deducted (deducted) for tax purposes   (518,358)   138,069    134,907 
                
Other   9,322,887    2,342,530    2,209,778 
                
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting   (2,962,809)   (547,085)   (833,896)
                
Excess of tax depreciation over book depreciation on operating limited partnership assets   (1,097,632)   (170,171)   (280,469)
                
Difference due to fiscal year for book purposes and calendar year for tax purposes   (1,864,492)   (385,534)   (254,564)
                
Income (loss) for tax return purposes, year ended December 31, 2012  $4,494,269   $1,219,508   $806,237 

 

F-57
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

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, 2013 is reconciled as follows:

 

   Series 17   Series 18   Series 19 
             
Net income (loss) for financial reporting purposes  $85,976   $681,398   $1,175,048 
                
Operating limited partnership rents received in advance   526    (212)   (243)
                
Accrued fund management fees not deducted (deducted) for tax purposes   (172,093)   (619,241)   - 
                
Other   (9,062)   3,787,299    992,342 
                
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting   (717,911)   (537,292)   (326,625)
                
Excess of tax depreciation over book depreciation on operating limited partnership assets   (275,264)   (224,315)   (147,413)
                
Difference due to fiscal year for book purposes and calendar year for tax purposes   (3,417)   (17,298)   (1,203,679)
                
Income (loss) for tax return purposes, year ended December 31, 2012  $(1,091,245)  $3,070,339   $489,430 

 

F-58
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

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, 2012 is reconciled as follows:

 

   Total   Series 15   Series 16 
             
Net income (loss) for financial reporting purposes  $72,041   $133,226   $(166,198)
                
Operating limited partnership rents received in advance   (10,156)   2,199    (1,715)
                
Accrued fund management fees not  deducted (deducted) for tax purposes   (212,295)   (265,407)   116,741 
                
Other   9,652,956    2,488,615    650,482 
                
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting   (4,045,294)   (730,809)   (1,010,045)
                
Excess of tax depreciation over book depreciation on operating limited partnership assets   (1,178,940)   (243,438)   (376,657)
                
Difference due to fiscal year for book purposes and calendar year for tax purposes   (722,510)   472,240    (51,316)
                
Income (loss) for tax return purposes, year ended December 31, 2011  $3,555,802   $1,856,626   $(838,708)

 

F-59
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

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, 2012 is reconciled as follows:

 

   Series 17   Series 18   Series 19 
             
Net income (loss) for financial reporting purposes  $(25,508)  $169,974   $(39,453)
                
Operating limited partnership rents received in advance   (10,640)   -    - 
                
Accrued fund management fees not deducted (deducted) for tax purposes   71,531    (135,160)   - 
                
Other   2,197,089    (428)   4,317,198 
                
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting   (733,673)   (1,197,176)   (373,591)
                
Excess of tax depreciation over book depreciation on operating limited partnership assets   (237,315)   (245,477)   (76,053)
                
Difference due to fiscal year for book purposes and calendar year for tax purposes   (1,011,334)   (28,923)   (103,177)
                
Income (loss) for tax return purposes, year ended December 31, 2011  $250,150   $(1,437,190)  $3,724,924 

 

F-60
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAX RETURN

 

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2013, are as follows:

 

   Total   Series 15   Series 16 
             
Investments in operating limited partnerships - tax return December 31, 2012  $(37,176,555)  $(8,336,321)  $(11,498,827)
                
Estimated share of loss for the three months ended March 31, 2013   (883,274)   (111,396)   - 
                
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method   35,033,727    7,552,909    9,782,878 
                
Impairment loss in investment in operating limited partnerships   (12,876,562)   (764,836)   (2,512,421)
                
Historic tax credits   5,325,806    -    1,844,836 
                
Other   10,576,858    1,659,644    2,383,534 
                
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, 2013 and 2012

 

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, 2013, are as follows:

 

   Series 17   Series 18   Series 19 
             
Investments in operating limited partnerships - tax return December 31, 2012  $(7,623,374)  $(7,788,760)  $(1,929,273)
                
Estimated share of loss for the three months ended March 31, 2013   (418,588)   (309,042)   (44,248)
                
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method   7,473,233    6,478,163    3,746,544 
                
Impairment loss in investment in operating limited partnerships   (3,288,846)   (4,172,906)   (2,137,553)
                
Historic tax credits   1,100,310    2,062,333    318,327 
                
Other   2,757,265    3,730,212    46,203 
                
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, 2013 and 2012

 

NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAX RETURN

 

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2012, are as follows:

 

   Total   Series 15   Series 16 
             
Investments in operating limited partnerships - tax return December 31, 2011  $(39,842,699)  $(9,915,268)  $(12,422,684)
                
Estimated share of loss for the three months ended March 31, 2012   (1,012,965)   (136,871)   - 
                
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method   40,003,128    8,366,571    9,860,741 
                
Impairment loss in investment in operating limited partnerships   (17,303,883)   (867,409)   (2,861,385)
                
Historic tax credits   5,325,806    -    1,844,836 
                
Other   12,830,613    2,552,977    3,578,492 
                
Investments in operating limited partnerships - as reported  $-   $-   $- 

 

F-63
 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

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, 2012, are as follows:

 

   Series 17   Series 18   Series 19 
             
Investments in operating limited partnerships - tax return December 31, 2011  $(6,285,101)  $(9,967,872)  $(1,251,774)
                
Estimated share of loss for the three months ended March 31, 2012   (467,481)   (357,422)   (51,191)
                
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method   6,800,814    9,565,423    5,409,579 
                
Impairment loss in investment in operating limited partnerships   (4,596,588)   (4,363,063)   (4,615,438)
                
Historic tax credits   1,100,310    2,062,333    318,327 
                
Other   3,448,046    3,060,601    190,497 
                
Investments in operating limited partnerships - as reported  $-   $-   $- 

 

F-64
 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

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, 2013.

 

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.

 

NOTE G - SUBSEQUENT EVENTS

 

Subsequent to March 31, 2013, the Fund has not entered into any agreements to sell interests in operating limited partnerships. However, the Fund did receive $13,000 from a prior year sale of an operating limited partnership.

 

F-65