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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE
ACT OF 1934
For The Quarterly Period Ended June 30, 2002
Commission File Number 0-19022
Gateway Tax Credit Fund II Ltd.
Exact name of Registrant as specified in its charter)
Florida 65-0142704
(State or other jurisdiction of ( I.R.S. Employer No.)
incorporation or organization)
880 Carillon Parkway, St. Petersburg, Florida 33716
(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (727)573-3800
Indicate by check mark whether the Registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
YES X NO
Number of Units
Title of Each Class June 30, 2002
Beneficial Assignee Certificates:
$1,000 per certificate 37,228
DOCUMENTS INCORPORATED BY REFERENCE
Parts I and II, 2002 Form 10-K, filed with the
Securities and Exchange Commission on July 11, 2002
Parts III and IV - Form S-11 Registration Statement
and all amendments and supplements thereto
File No. 33-31821
PART I - Financial Information
Item 1. Financial Statements
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
SERIES 2 |
June 30,
2002
- ---------
(Unaudited) |
March 31,
2002
- ----------
(Audited) |
|
ASSETS
Current Assets:
Cash and Cash Equivalents
Accounts Receivable
Investments in Securities
Total Current Assets
Investments in Securities
Investments in Project Partnerships, Net
Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners
Total Current Liabilities
Long-Term Liabilities:
Payable to General Partners
Partners' Equity (Deficit):
Assignor Limited Partner
Units of limited partnership interest consisting of 40,000 authorized BAC's, of which 6,136 at June 30, 2002 and March 31, 2002 have been issued to the assignees
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, $1,000 stated value per BAC, 6,136 at June 30, 2002 and March 31, 2002, issued and outstanding
General Partners
Total Partners' Equity
Total Liabilities and Partners' Equity |
$ 225,855
56,098
55,362
- -----------
337,315
154,405
51,117
- -----------
$ 542,837
===========
$ 51,434
- -----------
51,434
- -----------
444,883
- -----------
99,854
(53,334)
- -----------
46,520
- -----------
$ 542,837
===========
|
$ 235,805
0
56,098
- -----------
291,903
205,743
78,301
- -----------
$ 575,947
===========
$ 54,118
- -----------
54,118
- -----------
429,262
- -----------
145,441
(52,874)
- -----------
92,567
- -----------
$ 575,947
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
SERIES 3 |
June 30,
2002
- ---------
(Unaudited) |
March 31,
2002
- ----------
(Audited) |
|
ASSETS
Current Assets:
Cash and Cash Equivalents
Accounts Receivable
Investments in Securities
Total Current Assets
Investments in Securities
Investments in Project Partnerships, Net
Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners
Total Current Liabilities
Long-Term Liabilities:
Payable to General Partners
Partners' Equity (Deficit):
Assignor Limited Partner
Units of limited partnership interest consisting of 40,000 authorized BAC's, of which 5,456 at June 30, 2002 and March 31, 2002 have been issued to the assignees
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, $1,000 stated value per BAC, 5,456 at June 30, 2002 and March 31, 2002, issued and outstanding
General Partners
Total Partners' Equity
Total Liabilities and Partners' Equity |
$ 195,388
49,897
49,243
- -----------
294,528
137,340
9,908
- -----------
$ 441,776
===========
$ 55,932
- -----------
55,932
- -----------
333,526
- -----------
99,611
(47,293)
- -----------
52,318
- -----------
$ 441,776
===========
|
$ 198,028
0
49,898
- -----------
247,926
183,003
34,601
- ---------
$ 465,530
===========
$ 58,717
- -----------
58,717
- -----------
319,290
- -----------
134,464
(46,941)
- -----------
87,523
- -----------
$ 465,530
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
SERIES 4 |
June 30,
2002
- ---------
(Unaudited) |
March 31,
2002
- ----------
(Audited) |
|
ASSETS
Current Assets:
Cash and Cash Equivalents
Accounts Receivable
Investments in Securities
Total Current Assets
Investments in Securities
Investments in Project Partnerships, Net
Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners
Total Current Liabilities
Long-Term Liabilities:
Payable to General Partners
Partners' Equity (Deficit):
Assignor Limited Partner
Units of limited partnership interest consisting of 40,000 authorized BAC's, of which 6,915 at June 30, 2002 and March 31, 2002 have been issued to the assignees
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, $1,000 stated value per BAC, 6,915 at June 30, 2002 and March 31, 2002, issued and outstanding
General Partners
Total Partners' Equity
Total Liabilities and Partners' Equity |
$ 270,786
63,215
62,386
- -----------
396,387
173,996
26,934
- -----------
$ 597,317
===========
$ 63,042
- -----------
63,042
- -----------
433,159
- -----------
160,759
(59,643)
- -----------
101,116
- -----------
$ 597,317
===========
|
$ 272,179
0
63,215
- -----------
335,394
231,848
96,741
- -----------
$ 663,983
===========
$ 66,364
- -----------
66,364
- -----------
415,676
- -----------
240,778
(58,835)
- -----------
181,943
- -----------
$ 663,983
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
SERIES 5 |
June 30,
2002
- ---------
(Unaudited) |
March 31,
2002
- ----------
(Audited) |
|
ASSETS
Current Assets:
Cash and Cash Equivalents
Accounts Receivable
Investments in Securities
Total Current Assets
Investments in Securities
Investments in Project Partnerships, Net
Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners
Total Current Liabilities
Long-Term Liabilities:
Payable to General Partners
Partners' Equity (Deficit):
Assignor Limited Partner
Units of limited partnership interest consisting of 40,000 authorized BAC's, of which 8,616 at June 30, 2002 and March 31, 2002 have been issued to the assignees
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, $1,000 stated value per BAC, 8,616 at June 30, 2002 and March 31, 2002, issued and outstanding
General Partners
Total Partners' Equity
Total Liabilities and Partners' Equity |
$ 378,536
78,790
77,757
- -----------
535,083
216,862
519,567
- -----------
$1,271,512
===========
$ 83,533
- -----------
83,533
- -----------
439,237
- -----------
816,878
(68,136)
- -----------
748,742
- -----------
$1,271,512
===========
|
$ 380,377
0
78,790
- -----------
459,167
288,968
550,146
- -----------
$1,298,281
===========
$ 87,779
- -----------
87,779
- -----------
417,637
- -----------
860,560
(67,695)
- -----------
792,865
- -----------
$1,298,281
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
SERIES 6 |
June 30,
2002
- ---------
(Unaudited) |
March 31,
2002
- ----------
(Audited) |
|
ASSETS
Current Assets:
Cash and Cash Equivalents
Investments in Securities
Total Current Assets
Investments in Securities
Investments in Project Partnerships, Net
Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners
Total Current Liabilities
Long-Term Liabilities:
Payable to General Partners
Partners' Equity (Deficit):
Assignor Limited Partner
Units of limited partnership interest consisting of 40,000 authorized BAC's, of which 10,105 at June 30, 2002 and March 31,2002 have been issued to the assignees
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, $1,000 stated value per BAC, 10,105 at June 30, 2002 and March 31,2002, issued and outstanding
General Partners
Total Partners' Equity
Total Liabilities and Partners' Equity |
$ 445,220
63,708
- -----------
508,928
245,985
1,191,194
- -----------
$1,946,107
===========
$ 79,707
- -----------
79,707
- -----------
560,126
- -----------
1,381,937
(75,663)
- -----------
1,306,274
- -----------
$1,946,107
===========
|
$ 455,377
62,622
- -----------
517,999
241,587
1,257,026
- -----------
$2,016,612
===========
$ 83,891
- -----------
83,891
- -----------
536,157
- -----------
1,471,324
(74,760)
- -----------
1,396,564
- -----------
$2,016,612
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
|
TOTAL SERIES 2 - 6 |
June 30,
2002
- ---------
(Unaudited) |
March 31,
2002
- ----------
(Audited) |
|
ASSETS
Current Assets:
Cash and Cash Equivalents
Accounts Receivable
Investments in Securities
Total Current Assets
Investments in Securities
Investments in Project Partnerships, Net
Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners
Total Current Liabilities
Long-Term Liabilities:
Payable to General Partners
Partners' Equity (Deficit):
Assignor Limited Partner
Units of limited partnership interest consisting of 40,000 authorized BAC's, of which 37,228 at June 30, 2002 and March 31, 2002 have been issued to the assignees
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, $1,000 stated value per BAC, 37,228 at June 30, 2002 and March 31, 2002, issued and outstanding
General Partners
Total Partners' Equity
Total Liabilities and Partners' Equity |
$1,515,785
248,000
308,456
- -----------
2,072,241
928,588
1,798,720
- -----------
$4,799,549
===========
$ 333,648
- -----------
333,648
- -----------
2,210,931
- -----------
2,559,039
(304,069)
- -----------
2,254,970
- -----------
$4,799,549
===========
|
$1,541,766
0
310,623
- -----------
1,852,389
1,151,149
2,016,815
- -----------
$5,020,353
===========
$ 350,869
- -----------
350,869
- -----------
2,118,022
- -----------
2,852,567
(301,105)
- -----------
2,551,462
- -----------
$5,020,353
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
|
SERIES 2 |
2002
- ---- |
2001
- ---- |
|
Revenues:
Interest Income
Expenses:
Asset Management Fee-General Partner
General and Administrative:
General Partner
Other
Amortization
Total Expenses
Loss Before Equity in Losses of
Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
Assignees
General Partners
Net Loss Per Beneficial
Assignee Certificate
Number of Beneficial Assignee
Certificates Outstanding |
$ 4,697
- -----------
17,050
4,438
2,072
174
- -----------
23,734
- -----------
(19,037)
(27,010)
- -----------
$ (46,047)
===========
$ (45,587)
(460)
- -----------
$ (46,047)
===========
$ (7.43)
===========
6,136
===========
|
$ 7,363
- -----------
17,090
2,652
3,029
450
- -----------
23,221
- -----------
(15,858)
(2,636)
- -----------
$ (18,494)
===========
$ (18,309)
(185)
- -----------
$ (18,494)
===========
$ (2.98)
===========
6,136
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
|
SERIES 3 |
2002
- ---- |
2001
- ---- |
|
Revenues:
Interest Income
Expenses:
Asset Management Fee-General Partner
General and Administrative:
General Partner
Other
Amortization
Total Expenses
Loss Before Equity in Losses of
Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
Assignees
General Partners
Net Loss Per Beneficial
Assignee Certificate
Number of Beneficial Assignee
Certificates Outstanding |
$ 4,153
- -----------
15,732
4,640
1,952
280
- -----------
22,604
- -----------
(18,451)
(16,754)
- -----------
$ (35,205)
===========
$ (34,853)
(352)
- -----------
$ (35,205)
===========
$ (6.39)
===========
5,456
===========
|
$ 6,294
- -----------
15,776
2,772
3,233
280
- -----------
22,061
- -----------
(15,767)
(2,502)
- -----------
$ (18,269)
===========
$ (18,086)
(183)
- -----------
$ (18,269)
===========
$ (3.31)
===========
5,456
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
|
SERIES 4 |
2002
- ---- |
2001
- ---- |
|
Revenues:
Interest Income
Expenses:
Asset Management Fee-General Partner
General and Administrative:
General Partner
Other
Amortization
Total Expenses
Loss Before Equity in Losses of
Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
Assignees
General Partners
Net Loss Per Beneficial Assignee
Certificate
Number of Beneficial Assignee
Certificates Outstanding |
$ 5,320
- -----------
19,369
5,850
2,463
988
- -----------
28,670
- -----------
(23,350)
(57,477)
- -----------
$ (80,827)
===========
$ (80,019)
(808)
- -----------
$ (80,827)
===========
$ (11.57)
===========
6,915
===========
|
$ 8,219
- -----------
19,415
3,495
3,984
1,322
- -----------
28,216
- -----------
(19,997)
(29,213)
- -----------
$ (49,210)
===========
$ (48,718)
(492)
- -----------
$ (49,210)
===========
$ (7.05)
===========
6,915
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
|
SERIES 5 |
2002
- ---- |
2001
- ---- |
|
Revenues:
Interest Income
Expenses:
Asset Management Fee-General Partner
General and Administrative:
General Partner
Other
Amortization
Total Expenses
Loss Before Equity in Losses of
Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
Assignees
General Partners
Net Loss Per Beneficial Assignee
Certificate
Number of Beneficial Assignee
Certificates Outstanding |
$ 6,747
- -----------
23,939
7,262
2,918
1,278
- -----------
35,397
- -----------
(28,650)
(15,473)
- -----------
$ (44,123)
===========
$ (43,682)
(441)
- -----------
$ (44,123)
===========
$ (5.07)
===========
8,616
===========
|
$ 10,621
- -----------
24,002
4,339
4,728
1,278
- -----------
34,347
- -----------
(23,726)
(40,527)
- -----------
$ (64,253)
===========
$ (63,610)
(643)
- -----------
$ (64,253)
===========
$ (7.38)
===========
8,616
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
|
SERIES 6 |
2002
- ---- |
2001
- ---- |
|
Revenues:
Interest Income
Expenses:
Asset Management Fee-General Partner
General and Administrative:
General Partner
Other
Amortization
Total Expenses
Loss Before Equity in Losses of
Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
Assignees
General Partners
Net Loss Per Beneficial Assignee
Certificate
Number of Beneficial Assignee
Certificates Outstanding |
$ 6,789
- -----------
26,438
7,665
3,224
2,363
- -----------
39,690
- -----------
(32,901)
(57,389)
- -----------
$ (90,290)
===========
$ (89,387)
(903)
- -----------
$ (90,290)
===========
$ (8.85)
===========
10,105
===========
|
$ 10,476
- -----------
26,531
4,580
5,268
3,329
- -----------
39,708
- -----------
(29,232)
(75,571)
- -----------
$ (104,803)
===========
$ (103,755)
(1,048)
- -----------
$ (104,803)
===========
$ (10.27)
===========
10,105
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
|
TOTAL SERIES 2 - 6 |
2002
- ---- |
2001
- ---- |
|
Revenues:
Interest Income
Expenses:
Asset Management Fee-General Partner
General and Administrative:
General Partner
Other
Amortization
Total Expenses
Loss Before Equity in Losses of
Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
Assignees
General Partners |
$ 27,706
- -----------
102,528
29,855
12,629
5,083
- -----------
150,095
- -----------
(122,389)
(174,103)
- -----------
$ (296,492)
===========
$ (293,528)
(2,964)
- -----------
$ (296,492)
===========
|
$ 42,973
- -----------
102,814
17,838
20,242
6,659
- -----------
147,553
- -----------
(104,580)
(150,449)
- -----------
$ (255,029)
===========
$ (252,478)
(2,551)
- -----------
$ (255,029)
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
|
SERIES 2
|
Assignees
- ---------
|
General
Partners
- -------- |
Total
- -----
|
|
Balance at March 31, 2001
Net Loss
Balance at June 30, 2001
Balance at March 31, 2002
Net Loss
Balance at June 30, 2002
|
$ 243,647
(18,309)
- ------------
$ 225,338
============
$ 145,441
(45,587)
- ------------
$ 99,854
============
|
$ (51,882)
(185)
- ------------
$ (52,067)
============
$ (52,874)
(460)
- ------------
$ (53,334)
============
|
$ 191,765
(18,494)
- ------------
$ 173,271
============
$ 92,567
(46,047)
- ------------
$ 46,520
============
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
|
SERIES 3
|
Assignees
- ---------
|
General
Partners
- -------- |
Total
- -----
|
|
Balance at March 31, 2001
Net Loss
Balance at June 30, 2001
Balance at March 31, 2002
Net Loss
Balance at June 30, 2002
|
$ 213,725
(18,086)
- ------------
$ 195,639
============
$ 134,464
(34,853)
- ------------
$ 99,611
============
|
$ (46,140)
(183)
- ------------
$ (46,323)
============
$ (46,941)
(352)
- ------------
$ (47,293)
============
|
$ 167,585
(18,269)
- ------------
$ 149,316
============
$ 87,523
(35,205)
- ------------
$ 52,318
============
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
|
SERIES 4
|
Assignees
- ---------
|
General
Partners
- -------- |
Total
- -----
|
|
Balance at March 31, 2001
Net Loss
Balance at June 30, 2001
Balance at March 31, 2002
Net Loss
Balance at June 30, 2002
|
$ 424,290
(48,718)
- ------------
$ 375,572
============
$ 240,778
(80,019)
- ------------
$ 160,759
=============
|
$ (56,981)
(492)
- ------------
$ (57,473)
============
$ (58,835)
(808)
- ------------
$ (59,643)
============
|
$ 367,309
(49,210)
- ------------
$ 318,099
============
$ 181,943
(80,827)
- ------------
$ 101,116
============
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
|
SERIES 5
|
Assignees
- ---------
|
General
Partners
- -------- |
Total
- -----
|
|
Balance at March 31, 2001
Net Loss
Balance at June 30, 2001
Balance at March 31, 2002
Net Loss
Balance at June 30, 2002
|
$ 1,126,154
(63,610)
- ------------
$ 1,062,544
============
$ 860,560
(43,682)
- ------------
$ 816,878
============
|
$ (65,012)
(643)
- ------------
$ (65,655)
============
$ (67,695)
(441)
- ------------
$ (68,136)
============
|
$ 1,061,142
(64,253)
- ------------
$ 996,889
============
$ 792,865
(44,123)
- ------------
$ 748,742
============
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
|
SERIES 6
|
Assignees
- ---------
|
General
Partners
- -------- |
Total
- -----
|
|
Balance at March 31, 2001
Net Loss
Balance at June 30, 2001
Balance at March 31, 2002
Net Loss
Balance at June 30, 2002
|
$ 1,875,009
(103,755)
- ------------
$ 1,771,254
============
$ 1,471,324
(89,387)
- ------------
$ 1,381,937
============
|
$ (70,682)
(1,048)
- ------------
$ (71,730)
============
$ (74,760)
(903)
- ------------
$ (75,663)
============
|
$ 1,804,327
(104,803)
- ------------
$ 1,699,524
============
$ 1,396,564
(90,290)
- ------------
$ 1,306,274
============
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
|
TOTAL SERIES 2 - 6
|
Assignees
- ---------
|
General
Partners
- -------- |
Total
- -----
|
|
Balance at March 31, 2001
Net Loss
Balance at June 30, 2001
Balance at March 31, 2002
Net Loss
Balance at June 30, 2002
|
$ 3,882,825
(252,478)
- ------------
$ 3,630,347
============
$ 2,852,567
(293,528)
- ------------
$ 2,559,039
============
|
$ (290,697)
(2,551)
- ------------
$ (293,248)
============
$ (301,105)
(2,964)
- ------------
$ (304,069)
============
|
$ 3,592,128
(255,029)
- ------------
$ 3,337,099
============
$ 2,551,462
(296,492)
- ------------
$ 2,254,970
============
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
|
SERIES 2
- -------- |
2002
- ---- |
2001
- ---- |
|
Cash Flows from Operating Activities:
Net Loss
Adjustments to Reconcile Net Loss to Net
Cash Provided by Operating Activities:
Amortization
Accreted Interest Income on Investments in Securities
Equity in Losses of Project
Partnerships
Interest Income from Redemption of
Securities
Changes in Operating Assets and
Liabilities:
Increase in Payable to General
Partners
Net Cash Provided by (Used In)
Operating Activities
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships
Redemption of Investment in Securities
Net Cash Provided by Investing
Activities
Increase (Decrease)in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning
Of Period
Cash and Cash Equivalents at End of Period |
$ (46,047)
174
(4,024)
27,010
0
12,937
- ----------
(9,950)
- ----------
0
0
- ----------
0
- ----------
(9,950)
235,805
- ----------
$ 225,855
==========
|
$ (18,494)
450
(4,723)
2,636
26,908
16,615
- ----------
23,392
- ----------
2,148
26,928
- ----------
29,076
- ----------
52,468
213,928
- ----------
$ 266,396
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
|
SERIES 3
- -------- |
2002
- ---- |
2001
- ---- |
|
Cash Flows from Operating Activities:
Net Loss
Adjustments to Reconcile Net Loss to Net
Cash Provided by Operating Activities:
Amortization
Accreted Interest Income on Investments
in Securities
Equity in Losses of Project
Partnerships
Interest Income from Redemption of
Securities
Changes in Operating Assets and
Liabilities:
Increase in Payable to General
Partners
Net Cash Provided by (Used In) Operating Activities
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships
Redemption of Investment in Securities
Net Cash Provided by Investing
Activities
Increase (Decrease)in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of
Period
Cash and Cash Equivalents at End of Period |
$ (35,205)
280
(3,579)
16,754
0
11,451
- ----------
(10,299)
- ----------
7,659
0
- ----------
7,659
- ----------
(2,640)
198,028
- ----------
$ 195,388
==========
|
$ (18,269)
280
(4,201)
2,502
23,934
15,447
- ----------
19,693
- ----------
7,178
23,952
- ----------
31,130
- ----------
50,823
177,615
- ----------
$ 228,438
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
|
SERIES 4
- ------- |
2002
- ---- |
2001
- ---- |
|
Cash Flows from Operating Activities:
Net Loss
Adjustments to Reconcile Net Loss to Net
Cash Provided by Operating Activities:
Amortization
Accreted Interest Income on Investments
in Securities
Equity in Losses of Project
Partnerships
Interest Income from Redemption of
Securities
Changes in Operating Assets and
Liabilities:
Increase in Payable to General
Partners
Net Cash Provided by (Used In) Operating Activities
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships
Redemption of Investment in Securities
Net Cash Provided by Investing
Activities
Increase (Decrease)in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of
Period
Cash and Cash Equivalents at End of Period |
$ (80,827)
988
(4,534)
57,477
0
14,162
- ----------
(12,734)
- ----------
11,341
0
- ----------
11,341
- ----------
(1,393)
272,179
- ----------
$ 270,786
==========
|
$ (49,210)
1,322
(5,322)
29,213
30,322
19,121
- ----------
25,446
- ----------
10,913
30,344
- ----------
41,257
- ----------
66,703
249,491
- ----------
$ 316,194
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
|
SERIES 5
- -------- |
2002
- ---- |
2001
- ---- |
|
Cash Flows from Operating Activities:
Net Loss
Adjustments to Reconcile Net Loss to Net
Cash Provided by Operating Activities:
Amortization
Accreted Interest Income on Investments
in Securities
Equity in Losses of Project
Partnerships
Interest Income from Redemption of
Securities
Changes in Operating Assets and
Liabilities:
Increase in Payable to General
Partners
Net Cash Provided by (Used In) Operating Activities
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships
Redemption of Investment in Securities
Net Cash Provided by Investing
Activities
Increase (Decrease)in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of
Period
Cash and Cash Equivalents at End of Period |
$ (44,123)
1,278
(5,651)
15,473
0
17,354
- ----------
(15,669)
- ----------
13,828
0
- ----------
13,828
- ----------
(1,841)
380,377
- ----------
$ 378,536
==========
|
$ (64,253)
1,278
(6,633)
40,527
37,792
23,662
- ----------
32,373
- ----------
12,111
37,820
- ----------
49,931
- ----------
82,304
350,854
- ----------
$ 433,158
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
|
SERIES 6
- -------- |
2002
- ---- |
2001
- ---- |
|
Cash Flows from Operating Activities:
Net Loss
Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
Amortization
Accreted Interest Income on Investments
in Securities
Equity in Losses of Project
Partnerships
Interest Income from Redemption of
Securities
Changes in Operating Assets and
Liabilities:
Increase in Payable to General
Partners
Net Cash Provided By (Used In) Operating Activities
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships
Redemption of Investment in Securities
Net Cash Provided by Investing
Activities
Increase (Decrease)in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of
Period
Cash and Cash Equivalents at End of Period |
$ (90,290)
2,363
(5,484)
57,389
0
19,785
- ----------
(16,237)
- ----------
6,080
0
- ----------
6,080
- ----------
(10,157)
455,377
- ----------
$ 445,220
==========
|
$ (104,803)
3,329
(6,159)
75,571
0
26,080
- ----------
(5,982)
- ----------
7,717
0
- ----------
7,717
- ----------
1,735
437,636
- ----------
$ 439,371
==========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
|
TOTAL SERIES 2 - 6
- -------- |
2002
- ---- |
2001
- ---- |
|
Cash Flows from Operating Activities:
Net Loss
Adjustments to Reconcile Net Loss to Net
Cash Provided by Operating Activities:
Amortization
Accreted Interest Income on Investments
in Securities
Equity in Losses of Project
Partnerships
Interest Income from Redemption of
Securities
Changes in Operating Assets and
Liabilities:
Increase in Payable to General
Partners
Net Cash Provided by (Used In) Operating Activities
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships
Redemption of Investment in Securities
Net Cash Provided by Investing
Activities
Increase (Decrease)in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of
Period
Cash and Cash Equivalents at End of Period |
$ (296,492)
5,083
(23,272)
174,103
0
75,689
- ----------
(64,889)
- ----------
38,908
0
- ----------
38,908
- ----------
(25,981)
1,541,766
- ----------
$1,515,785
===========
|
$ (255,029)
6,659
(27,038)
150,449
118,956
100,925
- ----------
94,922
- ----------
40,067
119,044
- ----------
159,111
- ----------
254,033
1,429,524
- ----------
$1,683,557
===========
|
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
JUNE 30, 2002
NOTE 1 - ORGANIZATION:
Gateway Tax Credit Fund II Ltd. ("Gateway"), a Florida Limited Partnership, was formed September 12, 1989, under the laws of Florida. Operations commenced on September 14, 1990 for Series 2, September 28, 1990 for Series 3, February 1, 1991 for Series 4, July 1, 1991 for Series 5 and January 1, 1992 for Series 6. Gateway has invested, as a limited partner, in other limited partnerships ("Project Partnerships") each of which owns and operates one or more apartment complexes expected to qualify for Low-Income Housing Tax Credits. Gateway will terminate on December 31, 2040, or sooner, in accordance with the terms of the Limited Partnership Agreement. As of June 30, 2002, Gateway had received capital contributions of $1,000 from the General Partners and $37,228,000 from Beneficial Assignee Certificate investors (the "Assignees"). The fiscal year of Gateway for reporting purposes ends on March 31.
Pursuant to the Securities Act of 1933, Gateway filed a Form S-11 Registration Statement with the Securities and Exchange Commission, effective September 12, 1989, which covered the offering (the "Public Offering") of Gateway's Beneficial Assignee Certificates ("BACs") representing assignments of units for the beneficial interest of the limited partnership interest of the Assignor Limited Partner. The Assignor Limited Partner was formed for the purpose of serving in that capacity for the Fund and will not engage in any other business.
Raymond James Partners, Inc. and Raymond James Tax Credit Funds, Inc., wholly-owned subsidiaries of Raymond James Financial, Inc., are the General Partner and the Managing General Partner, respectively. The Managing General Partner manages and controls the business of Gateway.
Gateway offered BACs in five series. BACs in the amounts of $6,136,000, $5,456,000, $6,915,000, $8,616,000 and $10,105,000 for Series 2, 3, 4, 5 and 6, respectively had been issued as of March 31, 1997. Each Series is treated as a separate partnership, investing in a separate and distinct pool of Project Partnerships. Net proceeds from each Series are used to acquire Project Partnerships which are specifically allocated to such Series. Income or loss and all tax items from the Project Partnerships acquired by each Series are specifically allocated among the Assignees of such Series.
Operating profits and losses, cash distributions from operations and tax credits are allocated 99% to the Assignees and 1% to the General Partners. Profit or loss and cash distributions from sales of properties will be allocated as formulated in the Limited Partnership Agreement.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:
Basis of Accounting
Gateway utilizes the accrual basis of accounting whereby revenues are recognized when earned and expenses are recognized when obligations are incurred.
Gateway accounts for its investments as the sole limited partner in Project Partnerships ("Investments in Project Partnerships") using the equity method of accounting, because management believes that Gateway does not have a majority control of the major operating and financial policies of the Project Partnerships
in which it invests, and reports the equity in losses of the Project Partnerships on a 3-month lag in the Statements of Operations. Under the equity method, the Investments in Project Partnerships initially include:
1) Gateway's capital contribution,
2) Acquisition fees paid to the General Partner for services rendered in selecting properties for acquisition, and
3) Acquisition expenses including legal fees, travel and other
miscellaneous costs relating to acquiring properties.
Quarterly the Investments in Project Partnerships are increased or decreased as follows:
1) Increased for equity in income or decreased for equity in losses of
the Project Partnerships,
2) Decreased for cash distributions received from the Project
Partnerships, and
3) Decreased for the amortization of the acquisition fees and expenses.
Amortization is calculated on a straight-line basis over 35 years, as this is the average estimated useful life of the underlying assets. The amortization is shown as amortization expense on the Statements of Operations.
Pursuant to the limited partnership agreements for the Project Partnerships, cash losses generated by the Project Partnerships are allocated to the general partners of those partnerships. In subsequent years, cash profits, if any, are first allocated to the general partners to the extent of the allocation of prior years' cash losses.
Since Gateway invests as a limited partner, and therefore is not obligated to fund losses or make additional capital contributions, it does not recognize losses from individual Project Partnerships to the extent that these losses would reduce the investment in those Project Partnerships below zero. The suspended losses will be used to offset future income from the individual Project Partnerships.
Gateway reviews its investments in Project Partnerships to determine if there has been any permanent impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. If the sum of the expected future cash flows is less than the carrying amount of the investment, Gateway recognizes an impairment loss. No impairment loss has been recognized in the accompanying financial statements.
Gateway, as a limited partner in the Project Partnerships, is subject to risks inherent in the ownership of property which are beyond its control, such as fluctuations in occupancy rates and operating expenses, variations in rental schedules, proper maintenance and continued eligibility of tax credits. If the cost of operating a property exceeds the rental income earned thereon, Gateway may deem it in its best interest to voluntarily provide funds in order to protect its investment.
Cash and Cash Equivalents
It is Gateway's policy to include short-term investments with an original maturity of three months or less in Cash and Cash Equivalents. Short-term investments are comprised of money market mutual funds.
Concentration of Credit Risk
Financial instruments which potentially subject Gateway to concentrations of credit risk consist of cash investments in a money market mutual fund that is a wholly-owned subsidiary of Raymond James Financial, Inc.
Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally accepted accounting principles requires the use of estimates that affect certain reported amounts and disclosures. These estimates are based on management's knowledge and experience. Accordingly, actual results could differ from these estimates.
Investment in Securities
Effective April 1, 1995, Gateway adopted Statement of Financial Accounting Standards No. 115, Accounting for Certain Investments in Debt and Equity Securities ("FAS 115"). Under FAS 115, Gateway is required to categorize its debt securities as held-to-maturity, available-for-sale or trading securities, dependent upon Gateway's intent in holding the securities. Gateway's intent is to hold all of its debt securities (U. S. Government Security Strips) until maturity and to use these reserves to fund Gateway's ongoing operations. Interest income is recognized ratably on the U. S. Government Strips using the effective yield to maturity.
Offering and Commission Costs
Offering and commission costs were charged against Assignees' Equity upon the admission of Limited Partners.
Income Taxes
No provision for income taxes has been made in these financial statements, as income taxes are a liability of the partners rather than of Gateway.
Basis of Preparation
The unaudited financial statements presented herein have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by generally accepted accounting principles. These statements should be read in conjunction with the financial statements and notes thereto included with the Partnership's Form 10-K for the year ended March 31, 2002. In the opinion of management these financial statements include adjustments, consisting only of normal recurring adjustments, necessary to fairly summarize the Partnership's financial position and results of operations. The results of operations for the periods may not be indicative of the results to be expected for the year.
NOTE 3 - INVESTMENT IN SECURITIES:
The June 30, 2002 Balance Sheet includes Investment in Securities consisting of U.S. Government Security Strips which represents their cost, plus accreted interest income of $117,023 for Series 2, $104,089 for Series 3, $131,870 for Series 4, $164,359 for Series 5 and $157,016 for Series 6. For convenience, the Investment in Securities are commonly held in a brokerage account with Raymond James and Associates, Inc. A separate accounting is maintained for each series' share of the investments.
| |
Estimated Market
Value
- ----------------
|
Cost Plus
Accreted Interest
- -----------------
|
Gross Unrealized
Gains and
(Losses)
- --------------- |
|
Series 2 |
$ 230,436 |
$ 209,767 |
$ 20,669 |
|
Series 3 |
204,902 |
186,583 |
18,319 |
|
Series 4 |
259,692 |
236,382 |
23,310 |
|
Series 5 |
323,572 |
294,619 |
28,953 |
|
Series 6 |
339,363 |
309,693 |
29,670 |
As of June 30, 2002, the cost and accreted interest of debt securities by contractual maturities is as follows:
| |
Series 2
- -------- |
Series 3
- -------- |
Series 4
- -------- |
|
Due within 1 year |
$ 55,362 |
$ 49,243 |
$ 62,386 |
|
After 1 year through 5 years |
154,405 |
137,340 |
173,996 |
| |
--------- |
--------- |
--------- |
|
Total Amount Carried on
Balance Sheet |
$ 209,767
=========
|
$ 186,583
=========
|
$ 236,382
=========
|
| |
Series 5
- -------- |
Series 6
- -------- |
Total
- -------- |
|
Due within 1 year |
$ 77,757 |
$ 63,708 |
$ 308,456 |
|
After 1 year through 5 years |
216,862 |
245,985 |
928,588 |
| |
--------- |
--------- |
--------- |
|
Total Amount Carried on
Balance Sheet |
$ 294,619
=========
|
$ 309,693
=========
|
$1,237,044
==========
|
NOTE 4 - RELATED PARTY TRANSACTIONS:
The Payable to General Partners primarily represents the asset management fees owed to the General Partners at the end of the period. It is unsecured, due on demand and, in accordance with the limited partnership agreement, non-interest bearing. Within the next 12 months, the Managing General Partner does not intend to demand payment on the portion of Asset Management Fees payable classified as long-term on the Balance Sheet.
The Payable to Project Partnerships represents unpaid capital contributions to the Project Partnerships and will be paid after certain performance criteria are met. Such contributions are in turn payable to the general partner of the Project Partnerships.
For the three months June 30, 2002 and 2001 the General Partners and affiliates are entitled to compensation and reimbursement for costs and expenses incurred by Gateway as follows:
Asset Management Fee - The Managing General Partner is entitled to be paid an annual asset management fee equal to 0.25% of the aggregate cost of Gateway's interest in the projects owned by the Project Partnerships. The asset management fee will be paid only after all other expenses of Gateway have been paid. These fees are included in the Statements of Operations.
2002 2001
----- -----
Series 2 $ 17,050 $ 17,090
Series 3 15,732 15,776
Series 4 19,369 19,415
Series 5 23,939 24,002
Series 6 26,438
26,531
--------- ---------
Total $ 102,528 $ 102,814
========= =========
General and Administrative Expenses - The Managing General Partner is reimbursed for general and administrative expenses of Gateway on an accountable basis. This expense is included in the Statements of Operations.
Series 2 $ 4,438 $ 2,652
Series 3 4,640
2,772
Series 4 5,850 3,495
Series 5 7,262 4,339
Series 6 7,665 4,580
--------- --------
Total $ 29,855 $ 17,838
=========
========
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:
As of June 30, 2002, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 148 Project Partnerships for the Series which own and operate government assisted multi-family housing complexes(Series 2 - 22,Series 3 - 23, Series 4 - 29, Series 5 - 36 and Series
6 - 38).
Cash flows from operations are allocated according to each partnership agreement. Upon dissolution proceeds will be distributed according to each partnership agreement.
The following is a summary of Investments in Project Partnerships as of:
|
SERIES 2 |
JUNE 30,
2002
- ------------ |
MARCH 31,
2002
- ---------- |
|
Capital Contributions to Project Partnerships
and purchase price paid for limited partner
interests in Project Partnerships
Cumulative equity in losses of Project
Partnerships (1)
Cumulative distributions received from Project
Partnerships
Investment in Project Partnerships before
Adjustment
Excess of investment cost over the underlying
assets acquired:
Acquisition fees and expenses
Accumulated amortization of acquisition
fees and expenses
Investments in Project Partnerships |
$ 4,524,678
(4,700,661)
(81,202)
- -----------
(257,185)
390,838
(82,536)
- -----------
$ 51,117
============
|
$ 4,524,678
(4,673,651)
(81,202)
- -----------
(230,175)
390,838
(82,362)
- -----------
$ 78,301
===========
|
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $3,112,781 for the period ended June 30, 2002 and cumulative suspended losses of $2,940,699 for the year ended March 31, 2002 are not included.
The following is a summary of Investments in Project Partnerships as of:
|
SERIES 3 |
JUNE 30,
2002
- ------------ |
MARCH 31,
2002
- ---------- |
|
Capital Contributions to Project Partnerships
and purchase price paid for limited partner
interests in Project Partnerships
Cumulative equity in losses of Project
Partnerships (1)
Cumulative distributions received from Project
Partnerships
Investment in Project Partnerships before
Adjustment
Excess of investment cost over the underlying
assets acquired:
Acquisition fees and expenses
Accumulated amortization of acquisition
fees and expenses
Investments in Project Partnerships |
$ 3,888,713
(4,119,590)
(169,149)
- -----------
(400,026)
491,746
(81,812)
- -----------
$ 9,908
===========
|
$ 3,888,713
(4,102,836)
(161,490)
- -----------
(375,613)
491,746
(81,532)
- -----------
$ 34,601
===========
|
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $3,951,686 for the period ended June 30, 2002 and cumulative suspended losses of $3,840,222 for the year ended March 31, 2002 are not included.
The following is a summary of Investments in Project Partnerships as of:
|
SERIES 4 |
JUNE 30,
2002
- ------------ |
MARCH 31,
2002
- ---------- |
|
Capital Contributions to Project Partnerships
and purchase price paid for limited partner
interests in Project Partnerships
Cumulative equity in losses of Project
Partnerships (1)
Cumulative distributions received from
Project Partnerships
Investment in Project Partnerships before
Adjustment
Excess of investment cost over the underlying
assets acquired:
Acquisition fees and expenses
Accumulated amortization of acquisition
fees and expenses
Investments in Project Partnerships |
$ 4,952,519
(5,239,962)
(127,746)
- -----------
(415,189)
562,967
(120,844)
- -----------
$ 26,934
===========
|
$ 4,952,519
(5,182,485)
(116,404)
- -----------
(346,370)
562,967
(119,856)
- -----------
$ 96,741
===========
|
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $2,858,006 for the period ended June 30, 2002 and cumulative suspended losses of $2,771,886 for the year ended March 31, 2002 are not included.
The following is a summary of Investments in Project Partnerships as of:
|
SERIES 5 |
JUNE 30,
2002
- ------------ |
MARCH 31,
2002
- ---------- |
|
Capital Contributions to Project Partnerships
and purchase price paid for limited partner
interests in Project Partnerships
Cumulative equity in losses of Project
Partnerships (1)
Cumulative distributions received from
Project Partnerships
Investment in Project Partnerships before
Adjustment
Excess of investment cost over the underlying
assets acquired:
Acquisition fees and expenses
Accumulated amortization of acquisition
fees and expenses
Investments in Project Partnerships |
$ 6,164,472
(5,970,104)
(192,367)
- -----------
2,001
650,837
(133,271)
- -----------
$ 519,567
===========
|
$ 6,164,472
(5,954,631)
(178,539)
- -----------
31,302
650,837
(131,993)
- -----------
$ 550,146
===========
|
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $3,356,628 for the period ended June 30, 2002 and cumulative suspended losses of $3,217,418 for the year ended March 31, 2002 are not included.
The following is a summary of Investments in Project Partnerships as of:
|
SERIES 6 |
JUNE 30,
2002
- ------------ |
MARCH 31,
2002
- ---------- |
|
Capital Contributions to Project Partnerships
and purchase price paid for limited partner
interests in Project Partnerships
Cumulative equity in losses of Project
Partnerships (1)
Cumulative distributions received from
Project Partnerships
Investment in Project Partnerships before
Adjustment
Excess of investment cost over the underlying
assets acquired:
Acquisition fees and expenses
Accumulated amortization of acquisition
fees and expenses
Investments in Project Partnerships |
$ 7,462,215
(6,677,982)
(196,680)
- -----------
587,553
785,179
(181,538)
- -----------
$ 1,191,194
============
|
$ 7,462,215
(6,620,593)
(190,600)
- -----------
651,022
785,179
(179,175)
- -----------
$ 1,257,026
============
|
(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $2,260,734 for the period ended June 30, 2002 and cumulative suspended losses of $2,161,546 for the year ended March 31, 2002 are not included.
The following is a summary of Investments in Project Partnerships as of:
|
TOTAL SERIES 2 - 6 |
JUNE 30,
2002
- ------------ |
MARCH 31,
2002
- ---------- |
|
Capital Contributions to Project Partnerships
and purchase price paid for limited partner
interests in Project Partnerships
Cumulative equity in losses of Project
Partnerships
Cumulative distributions received from
Project Partnerships
Investment in Project Partnerships before
Adjustment
Excess of investment cost over the underlying
assets acquired:
Acquisition fees and expenses
Accumulated amortization of acquisition
fees and expenses
Investments in Project Partnerships |
$ 26,992,597
(26,708,299)
(767,144)
- -----------
(482,846)
2,881,567
(600,001)
- -----------
$ 1,798,720
============
|
$ 26,992,597
(26,534,196)
(728,235)
- ------------
(269,834)
2,881,567
(594,918)
- ------------
$ 2,016,815
============
|
In accordance with the Partnership's policy of presenting the financial information
of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of March 31, of each year:
| |
MARCH 31, |
|
SERIES 2 |
2002
- ---- |
2001
- ---- |
|
SUMMARIZED BALANCE SHEETS
Assets:
Current assets
Investment properties, net
Other assets
Total assets
Liabilities and Partners' Equity:
Current liabilities
Long-term debt
Total liabilities
Partners' equity
Limited Partner
General Partners
Total Partners' equity
Total liabilities and partners'
equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
Operating expenses
Interest expense
Depreciation and amortization
Total expenses
Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships |
$ 2,088,316
17,972,949
4,111
- -----------
$20,065,376
===========
$ 507,298
22,995,104
- -----------
23,502,402
- -----------
(3,386,339)
(50,687)
- -----------
(3,437,026)
- -----------
$20,065,376
===========
$ 654,286
- -----------
481,591
157,547
216,251
- -----------
855,389
- -----------
$ (201,103)
===========
$ (2,011)
===========
$ (199,092)
172,082
- -----------
$ (27,010)
===========
|
$ 2,069,650
18,781,997
16,500
- -----------
$20,868,147
===========
$ 392,292
23,050,161
- -----------
23,442,453
- -----------
(2,555,000)
(19,306)
- -----------
(2,574,306)
- -----------
$20,868,147
===========
$ 713,153
- -----------
443,865
140,122
223,316
- -----------
807,303
- -----------
$ (94,150)
===========
$ (941)
===========
$ (93,209)
90,573
- -----------
$ (2,636)
===========
|
In accordance with the Partnership's policy of presenting the financial information
of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of March 31, of each year:
| |
MARCH 31, |
|
|
SERIES 3 |
2002
- ---- |
2001
- ---- |
|
SUMMARIZED BALANCE SHEETS
Assets:
Current assets
Investment properties, net
Other assets
Total assets
Liabilities and Partners' Equity:
Current liabilities
Long-term debt
Total liabilities
Partners' equity
Limited Partner
General Partners
Total Partners' equity
Total liabilities and partners'
equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
Operating expenses
Interest expense
Depreciation and amortization
Total expenses
Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships |
$ 2,455,080
14,913,119
179,520
- -----------
$17,547,719
===========
$ 655,406
21,443,332
- -----------
22,098,738
- -----------
(4,695,778)
144,759
- -----------
(4,551,019)
- -----------
$17,547,719
===========
$ 663,133
- -----------
432,311
126,286
234,740
- -----------
793,337
- -----------
$ (130,204)
===========
$ (1,986)
===========
$ (128,218)
111,464
- -----------
$ (16,754)
===========
|
$ 2,251,064
15,807,380
196,853
- -----------
$18,255,297
===========
$ 473,850
21,568,724
- -----------
22,042,574
- -----------
(3,965,250)
177,973
- -----------
(3,787,277)
- -----------
$18,255,297
===========
$ 653,154
- -----------
426,762
129,498
233,506
- -----------
789,766
- -----------
$ (136,612)
===========
$ (1,781)
===========
$ (134,831)
132,329
- -----------
$ (2,502)
===========
|
In accordance with the Partnership's policy of presenting the financial information
of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of March 31, of each year:
| |
MARCH 31, |
|
|
SERIES 4 |
2002
- ---- |
2001
- ---- |
|
SUMMARIZED BALANCE SHEETS
Assets:
Current assets
Investment properties, net
Other assets
Total assets
Liabilities and Partners' Equity:
Current liabilities
Long-term debt
Total liabilities
Partners' equity
Limited Partner
General Partners
Total Partners' equity
Total liabilities and partners'
equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
Operating expenses
Interest expense
Depreciation and amortization
Total expenses
Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships |
$ 2,272,263
21,478,173
7,639
- -----------
$23,758,075
===========
$ 890,703
26,092,803
- -----------
26,983,506
- -----------
(3,285,625)
60,194
- -----------
(3,225,431)
- -----------
$23,758,075
===========
$ 757,390
- -----------
501,383
156,708
244,872
- -----------
902,963
- -----------
$ (145,573)
===========
$ (1,976)
===========
$ (143,597)
86,120
- -----------
$ (57,477)
===========
|
$ 2,392,155
22,182,103
12,509
- -----------
$24,586,767
===========
$ 557,670
26,375,576
- -----------
26,933,246
- -----------
(2,448,693)
102,214
- -----------
(2,346,479)
- -----------
$24,586,767
===========
$ 865,804
- -----------
559,712
156,887
244,047
- -----------
960,646
- -----------
$ (94,842)
===========
$ (492)
===========
$ (94,350)
65,137
- -----------
$ (29,213)
===========
|
In accordance with the Partnership's policy of presenting the financial information
of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of March 31, of each year:
| |
MARCH 31, |
|
|
SERIES 5 |
2002
- ---- |
2001
- ---- |
|
SUMMARIZED BALANCE SHEETS
Assets:
Current assets
Investment properties, net
Other assets
Total assets
Liabilities and Partners' Equity:
Current liabilities
Long-term debt
Total liabilities
Partners' equity
Limited Partner
General Partners
Total Partners' equity
Total liabilities and partners'
equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
Operating expenses
Interest expense
Depreciation and amortization
Total expenses
Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships |
$ 3,130,473
26,555,914
2,277
- -----------
$29,688,664
===========
$ 708,273
32,473,282
- -----------
33,181,555
- -----------
(3,292,723)
(200,168)
- -----------
(3,492,891)
- -----------
$29,688,664
===========
$ 998,463
- -----------
640,508
190,672
323,529
- -----------
1,154,709
- -----------
$ (156,246)
===========
$ (1,563)
===========
$ (154,683)
139,210
- -----------
$ (15,473)
===========
|
$ 2,973,123
27,778,459
24,724
- -----------
$30,776,306
===========
$ 738,225
32,563,659
- -----------
33,301,884
- -----------
(2,376,434)
(149,144)
- -----------
(2,525,578)
- -----------
$30,776,306
===========
$ 955,454
- -----------
681,762
192,615
320,874
- -----------
1,195,251
- -----------
$ (239,797)
===========
$ (2,398)
===========
$ (237,399)
196,872
- -----------
$ (40,527)
===========
|
In accordance with the Partnership's policy of presenting the financial information
of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of March 31, of each year:
| |
MARCH 31, |
|
|
SERIES 6 |
2002
- ---- |
2001
- ---- |
|
SUMMARIZED BALANCE SHEETS
Assets:
Current assets
Investment properties, net
Other assets
Total assets
Liabilities and Partners' Equity:
Current liabilities
Long-term debt
Total liabilities
Partners' equity
Limited Partner
General Partners
Total Partners' equity
Total liabilities and partners'
equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
Operating expenses
Interest expense
Depreciation and amortization
Total expenses
Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships |
$ 3,387,096
30,414,759
4,569
- -----------
$33,806,424
===========
$ 653,632
35,174,931
- -----------
35,828,563
- -----------
(1,680,488)
(341,651)
- -----------
(2,022,139)
- -----------
$33,806,424
===========
$ 1,073,703
- -----------
687,210
208,178
336,916
- -----------
1,232,304
- -----------
$ (158,601)
===========
$ (2,024)
===========
$ (156,577)
99,188
- -----------
$ (57,389)
===========
|
$ 3,291,241
31,632,114
22,460
- -----------
$34,945,815
===========
$ 629,175
35,341,376
- -----------
35,970,551
- -----------
(782,285)
(296,451)
- -----------
(1,078,736)
- -----------
$34,891,815
===========
$ 1,079,787
- -----------
688,120
210,871
334,477
- -----------
1,233,468
- -----------
$ (153,681)
===========
$ (2,287)
===========
$ (151,394)
75,823
- -----------
$ (75,571)
===========
|
In accordance with the Partnership's policy of presenting the financial information
of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of March 31, of each year:
| |
MARCH 31, |
|
|
TOTAL SERIES 2- 6 |
2002
- ---- |
2001
- ---- |
|
SUMMARIZED BALANCE SHEETS
Assets:
Current assets
Investment properties, net
Other assets
Total assets
Liabilities and Partners' Equity:
Current liabilities
Long-term debt
Total liabilities
Partners' equity
Limited Partner
General Partners
Total Partners' equity
Total liabilities and partners'
equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
Operating expenses
Interest expense
Depreciation and amortization
Total expenses
Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships |
$ 13,333,228
111,334,914
198,116
- ------------
$124,866,258
============
$ 3,415,312
138,179,452
- ------------
141,594,764
- ------------
(16,340,953)
(387,553)
- ------------
(16,728,506)
- ------------
$124,866,258
============
$ 4,146,975
- ------------
2,743,003
839,391
1,356,308
- ------------
4,938,702
- ------------
$ (791,727)
============
$ (9,560)
============
$ (782,167)
608,064
- ------------
$ (174,103)
============
|
$ 12,977,233
116,182,053
273,046
- ------------
$129,432,332
============
$ 2,791,212
138,899,496
- ------------
141,690,708
- ------------
(12,073,662)
(184,714)
- ------------
(12,258,376)
- ------------
$129,432,332
============
$ 4,267,352
- ------------
2,800,221
829,993
1,356,220
- ------------
4,986,434
- ------------
$ (719,082)
============
$ (7,899)
============
$ (711,183)
560,734
- ------------
$ (150,449)
============
|
Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Results of Operations, Liquidity and Capital Resources
Operations commenced on September 14, 1990, with the first admission of Assignees in Series 2. The proceeds from Assignees' capital contributions available for investment were used to acquire interests in Project Partnerships.
As disclosed on the statement of operations for each Series, except as described below, interest income is lower for the three months ended June 30, 2002 than June 30, 2001 due to lower interest rates. The General and Administrative expenses - General Partner and General and Administrative expenses - Other for the three months ended June 30, 2002 are higher for the same period ended June 30, 2001. This increase was primarily due to paying for the audit in full a quarter earlier than the prior period. There were no unusual variations in the operating results between these two periods except as noted below.
The capital resources of each Series are used to pay General and Administrative operating costs including personnel, supplies, data processing, travel and legal and accounting associated with the administration and monitoring of Gateway and the Project Partnerships. The capital resources are also used to pay the Asset Management Fee due the Managing General Partner, but only to the extent that Gateway's remaining resources are sufficient to fund Gateway's ongoing needs. (Payment of any Asset Management Fee unpaid at the time Gateway sells its interests in the Project Partnerships is subordinated to the return of the investors' original capital contributions).
The sources of funds to pay the operating costs of each Series are short term investments and interest earned thereon, the maturity of U.S. Treasury Security Strips ("Zero Coupon Treasuries") which were purchased with funds set aside for this purpose, and cash distributed to the Series from the operations of the Project Partnerships.
From inception, no Series has paid distributions and management does not anticipate distributions in the future.
Series 2 - Gateway closed this series on September 14, 1990 after receiving $6,136,000 from 375 Assignees. Equity in Losses of Project Partnerships for the three months ended June 30, 2002 increased from $2,636 for the three months ended June 30, 2001 to $27,010 as a result of an increase in the operating expenses of the Project Partnerships with losses that have not been suspended. In general, it is common in the real estate industry to experience losses for financial and tax reporting purposes because of the non-cash expenses of depreciation and amortization. As a result, management expects that this Series, as well as those described below, will report its equity in Project Partnerships as a loss for tax and financial reporting purposes. Overall, management believes the Project Partnerships are operating as expected and are generating tax credits which meet projections.
At June 30, 2002, the Series had $225,855 of short-term investments (Cash and Cash Equivalents). It also had $209,767 in Zero Coupon Treasuries with annual maturities providing $58,593 in fiscal year 2003 increasing to $66,285 in fiscal year 2007. Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.
As disclosed on the statement of cash flows, the Series had a net loss of $46,047 for the three months ended June 30, 2002. However, after adjusting for Equity in Losses of Project Partnerships of $27,010 and the changes in operating assets and liabilities, net cash used in operating activities was $9,950. There were no unusual events or trends to describe.
Series 3 - Gateway closed this series on December 13, 1990 after receiving $5,456,000 from 398 Assignees. Equity in Losses of Project Partnerships for the three months ended June 30, 2002 increased from $2,502 for the three months ended June 30, 2001 to $16,754 as a result of an increase in the operating expenses of the Project Partnerships with losses that have not been suspended.
At June 30, 2002, the Series had $195,388 of short-term investments (Cash and Cash Equivalents). It also had $186,583 in Zero Coupon Treasuries with annual maturities providing $52,100 in fiscal year 2003 increasing to $58,940 in fiscal year 2007. Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.
As disclosed on the statement of cash flows, the Series had a net loss of $35,205 for the three months ended June 30, 2002. However, after adjusting for Equity in Losses of Project Partnerships of $16,754 and the changes in operating assets and liabilities, net cash used in operating activities was $10,299. Cash provided by investing activities totaled $7,659, consisting of cash distributions from the Project Partnerships. There were no unusual events or trends to describe.
Series 4 - Gateway closed this series on May 31, 1991 after receiving $6,915,000 from 465 Assignees. Equity in Losses of Project Partnerships for the three months ended June 30, 2002 increased from $29,213 for the three months ended June 30, 2001 to $57,477 as a result of a decrease in rental revenues.
At June 30, 2002, the Series had $270,786 of short-term investments (Cash and Cash Equivalents). It also had $236,382 in Zero Coupon Treasuries with annual maturities providing $66,032 in fiscal year 2003 increasing to $74,700 in fiscal year 2007. Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.
As disclosed on the statement of cash flows, the Series had a net loss of $80,827 for the three months ended June 30, 2002. However, after adjusting for Equity in Losses of Project Partnerships of $57,477 and the changes in operating assets and liabilities, net cash used in operating activities was $12,734. Cash provided by investing activities totaled $11,341, consisting of cash distributions from the Project Partnership. There were no unusual events or trends to describe.
Series 5 - Gateway closed this series on October 11, 1991 after receiving $8,616,000 from 535 Assignees. Equity in Losses of Project Partnerships for the three months ended June 30, 2002 decreased from $40,527 for the three months ended June 30, 2001 to $15,473 as a result of an increase in rental income.
At June 30, 2002, the Series had $378,536 of short-term investments (Cash and Cash Equivalents). It also had $294,619 in Zero Coupon Treasuries with annual maturities providing $82,275 in fiscal year 2003 increasing to $93,075 in fiscal year 2007. Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.
As disclosed on the statement of cash flows, the Series had a net loss of $44,123 for the three months ended June 30, 2002. However, after adjusting for Equity in Losses of Project Partnerships of $15,473 and the changes in operating assets and liabilities, net cash used in operating activities was $15,669. Cash provided by investing activities totaled $13,828, consisting of cash distributions from the Project Partnerships. There were no unusual events or trends to describe.
Series 6 - Gateway closed this series on March 11, 1992 after receiving $10,105,000 from 625 Assignees. Equity in Losses of Project Partnerships for the three months ended June 30, 2002 decreased from $75,571 for the three months ended June 30, 2001 to $57,389 as a result of an increase in suspended losses.
At June 30, 2002, the Series had $445,220 of short-term investments (Cash and Cash Equivalents). It also had $309,693 in Zero Coupon Treasuries with annual maturities providing $66,000 in fiscal year 2003 increasing to $83,000 in fiscal year 2007. Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.
As disclosed on the statement of cash flows, the Series had a net loss of $90,290 for the three months ended June 30, 2002. However, after adjusting for Equity in Losses of Project Partnerships of $57,389 and the changes in operating assets and liabilities, net cash used in operating activities was $16,237. Cash provided by investing activities totaled $6,080, consisting of cash distributions from the Project Partnerships. There were no unusual events or trends to describe.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
By: Raymond James Tax Credit Funds, Inc.
Date: August 29, 2002 By:/s/ Ronald M. Diner
Ronald M. Diner
President
Date: August 29, 2002 By:/s/ Sandra L. Furey
Sandra L. Furey
Secretary and Treasurer