According to the Homes For Our Troops audit of September 30, 2022 (Note B re: Construction and Acquisition Costs for Veterans' Homes):
"Construction and acquisition costs for veterans' homes represents real estate acquisition and home construction costs incurred as of the period end for specially adapted home projects. When acquiring land and constructing a new home, title and ownership of the property is retained by the Organization until such time the Organization transfers ownership to the veteran. The Organization enters an agreement with the veteran prior to construction, noting at that time that the project may span multiple fiscal years. The contribution payable (presented as "commitment to transfer homes to veterans' liability on the statements of financial position") to the veteran is conditional upon the veteran meeting certain barriers. Before the barriers are overcome, the Organization has the right to cancel the agreement. Near the end of construction, the parties agree that the barriers have been overcome and the contribution becomes unconditional at this date, called the Key Ceremony Date. The construction costs are expensed at this date, and closing occurs soon thereafter."
According to the Homes For Our Troops audit of September 30, 2022 (Note B re: Contractual Commitment to Transfer Homes to Veterans):
"At the Key Ceremony Date, when all significant conditions of the contractual agreement between the Organization and the veteran have been met, a liability representing the contractual commitment to transfer the home to the veteran is recorded, with corresponding program expense recognition. Upon transfer of ownership, the full cost of the property and the corresponding contractual liability are derecognized. Several variables may impact the recognition or the derecognition of the asset and the liability in a given year; such as inclement weather or general contractor delays."
According to the Homes For Our Troops audit of September 30, 2022 (Note I, Commitments and Contingencies, Commitment to Transfer Homes to Veterans):
"As of September 30, 2022 and 2021, respectively, the Organization's estimated commitment to fund the completion of current (in-process) and future projects are $77.6 million and $72.3 million, respectively. These commitments are expected to be met between fiscal years 2023 through 2025."