Years Ended December 31, 2012 and 2011

Transcription

1 UNITED WAY Fox CITIES, INC. FINANCIAL STATEMENTS Years Ended December 31, 2012 and 2011

2 CONTENTS INDEPENDENT AUDITORS REPORT 1 and 2 FINANCIAL STATEMENTS Statements of Financial Position 3 Statements of Activities 4 and 5 Statements of Functional Expenses 6 and 7 Statements of Cash Flows 8 Notes to Financial Statements 9-20 SUPPLEMENTARY INFORMATION Schedules of Partner Agency Program Expenses 21 and 22 Schedules of Community Investment Fund Grants 23 Page

3 Schenck CPAs AND SO MUCH MORE. INDEPENDENT AUDITORS REPORT To the Board of Directors United Way Fox Cities, Inc. Menasha, Wisconsin We have audited the accompanying financial statements of United Way Fox Cities, Inc. (a nonprofit organization), which comprise the statements of financial position as of December 31, 2012 and 2011, and the related statements of activities, functional expenses and cash flows for the years then ended, and the related notes to the financial statements. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of United Way Fox Cities, Inc. as of December 31, 2012 and 2011, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Appleton Fond du Lac Green Bay Manitowoc Milwaukee Oshkosh Sheboygan Stevens Point Wausau schencksc.com Schenck at

4 Other Matter Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The supplementary information on pages is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Certified Public Accountants Green Bay, Wisconsin March 27,

5 FINANCIAL STATEMENTS

6 STATEMENTS OF FINANCIAL POSITION December 31, 2012 and 2011 ASSETS Cash and cash equivalents $ 2,318,583 $ 1,867,206 Certificates of deposit 2,036,585 2,020,408 Promises receivable: Annual campaign, net of allowance 4,865,713 4,985,945 Capital campaign, net of discount 15,000 57,859 Endowment campaign, net of discount 15,733 40,132 Other receivables 30, ,066 Prepaid expenses 14,785 25,482 Property and equipment, net 1,219,483 1,286,504 Beneficial interest in assets at Community Foundation 925, ,275 Other assets 131, ,334 Total assets S $ LIABILITIES AND NET ASSETS Liabilities Community investments payable $ 4,796,716 $ 4,690,673 Community investment fund grants payable 307, ,521 Payable to other communities/agencies 250, ,320 Accounts payable 175,199 55,501 Accrued expenses 144, ,345 Other liabilities 88,024 68,751 Total liabilities 5, 762, 780 5, Net assets Unrestricted: Board designated 4,200,979 3,963,904 Undesignated 92, ,575 Net investment in property and equipment 1.219,483 1,286,504 Total unrestricted net assets 5, , Temporarily restricted: Endowment program expenses 29,837 12,743 Subsequent year programs 71,596 24,488 Total temporarily restricted net assets 101,433 37,231 Permanently restricted net assets 196, ,886 Total net assets ,578,100 Total liabilities and net assets S $ See Notes to Financial Statements. 3

7 STATEMENTS OF ACTIVITIES For the Years Ended December 31, 2012 and 2011 Unrestricted net assets Revenue Contributions: Gross current campaign results $ 7,180,921 $ 7,061,489 Gross past campaign results 113, ,683 Less: Donor designations to United Way partner agencies (331,781) (339,769) Donor designations to other communities/agencies (436,142) (351,676) Provision for uncollectible promises (251,615) (283,206) Net campaign revenue 6,274,411 6,192,521 Designations from other United Ways 55,037 52,451 Capital campaign contributions 2,141 5,059 In-kind contributions 66,228 83,095 Service fees 53,802 49,530 Return on beneficial interest in assets at Community Foundation 57,588 (23,872) Investment income 29,338 31,807 Miscellaneous 26,434 7,465 Net assets released from restrictions: Restrictions satisfied by payments 242, ,319 Total revenue 6,807,701 6,592,375 Expenses Program services: Community impact programs: Developing Children and Youth 1,657,453 1,640,892 Strengthening Families 862, ,874 Promoting Health, Healing and Crisis Intervention 1,449,984 1,661,995 Providing Basic Needs and Self Sufficiency 822, ,841 Less expenses funded through designations (331,781) (339,769) Net partner agency program expenses 4,460,716 4,765,833 Community investment fund grants 150,000 85,138 Community services provided by United Way Community development 664, , program 193, ,735 AFL-CIO labor program 75,967 79,171 Community initiatives - 5,473 Youth board 26,662 29,560 Life needs 15,014 82,534 Total program services 5,586,301 5,623,912 See Notes to Financial Statements. 4

8 Expenses, continued Management and general: Office operations 375, ,449 Marketing 94,336 76,423 Strategic planning - 11,433 Total management and general 469, ,305 Fund-raising - Campaign 605, ,030 Total expenses 6,661,637 6,672,247 Change in unrestricted net assets 146,064 (79,872) Unrestricted net assets at beginning of year 5,366,983 5,446,855 Unrestricted net assets at end of year 5,513,047 5,366,983 TemDorarilv restricted net assets Contributions 289, ,801 Return on beneficial interest in assets at Community Foundation 14,092 (4,702) Investment income 3,002 2,022 Net assets released from restriction (242,722) (194,319) Change in temporarily restricted net assets 64,202 (24,198) Temporarily restricted net assets at beginning of year 37,231 61,429 Temporarily restricted net assets at end of year 101,433 37,231 Permanently restricted net assets Endowment campaign contributions 22,963 38,921 Permanently restricted net assets at beginning of year 173, ,965 Permanently restricted net assets at end of year 196, ,886 Total net assets Change in net assets 233,229 (65,149) Net assets at beginning of year 5,578,100 5,643,249 Net assets at end of year $ $

9 STATEMENT OF FUNCTIONAL EXPENSES For the Year Ended December 31, 2012 Community Services Management and General Fund-raising AFL-CIO Community Labor Youth Life Office Marketing / Resource Investments Program Program Board Needs Operations Communications Development Total Community investments $ 5,252,647 $ - $ - $ - $ - $ - $ - $ - $ 5,252,647 Less donor designations ( ) (331,781) 4,920, ,920,866 Salaries 201,516 93,771 40,116 7,428 12, ,861 39, , ,685 Payroll taxes 14,714 7,684 2, ,744 3,087 20,468 63,194 Health insurance 18, , , , ,996 Retirement 16,291 7,715 3, ,467 3,661 18,091 63,107 Other benefits 7,274 3,339 2, ,997 1, ,090 Total salaries and related expenses 257, ,437 59,541 8,369 15, ,610 48, ,680 1,142,072 Outside printing 1,040 1,166 1, ,753 7,120 28,789 41,520 Communication ,425 58,073 Promotion - 8, ,200 11,443 Occupancy 7,457 5,504 1, ,730 1,953 11,010 35,784 Training/development/conferences 2,149 1, , ,463 13,407 Travel, meals and events 5,204 1, ,348-3,432 3,211 35,581 64,748 Professional services 1,826 13, ,298 19,109 3,267 70,494 Telephone 3,005 5, ,302 1,155 4,366 18,873 Office supplies 15, , ,694 26,888 Postage ,887 1,029 3,401 10,493 Equipment repair and maintenance 6,426 16,997 1, ,683 1,678 12,483 51,078 Insurance 1, , ,507 17,393 Dues and subscriptions 2, ,427-1,020 5,588 Affiliation dues - UWWI and UWWW 17,667 12,519 4, ,961 4,442 25,038 80,767 Depreciation 14,284 10,544 3, ,284 3,741 21,087 68,021 Non-profit development /outreach 17, ,040 Miscellaneous , $ $ $ L...Th&i2 $ See Notes to Financial Statements.

10 STATEMENT OF FUNCTIONAL EXPENSES For the Year Ended December 31, 2011 Community investments Less donor designations Commun AFL-CIO Community Labor Investments Program Program $ 5,209,685 $ (339,769) - 4,869,916 Services Management and General Fund-raising Community Youth LIFE. Office Strategic Initiatives Board Study Operations Marketing Planning Campaign Total - $ - $ - $ - $ - $ - $ - $ 5,209,685 (339,769) 4,869,916 -.j Salaries Payroll taxes Health insurance Retirement Other benefits Total salaries and related expenses Outside printing Communication Promotion Occupancy Training/development/conferences Travel, meals and events Professional services Telephone Office supplies Postage Equipment repair and maintenance Insurance Dues and subscriptions Affiliation dues - UWWI and UWWW Depreciation Interest Miscellaneous 168,601 93,507 40,969 4,074 8,601 14, ,653 35,409 8, , ,909 12,930 7,680 2, ,231 8,905 2, ,110 58,336 30,017 2,677 11, ,268 23,561 1, , ,880 14,903 8,662 3, ,496 11,146 3,388 1,063 24,639 69,844 7, 384 5,210 2, ,271 2, ,655 37, , ,736 62,204 5,261 10,426 20, ,536 45,749 11, ,359 1,116,195 1, ,132-29,108 43, ,546 65, , ,886 6,501 4,755 1, ,015 1,745-11,892 35, , ,258 6,070 3, ,858 4,564 2, ,939 56, ,102 29,266 5,838-4,363 96,889 3,228 9, , ,761 24,526 71,219 2, ,853 1,082-6,135 95, ,762 1,026-7,094 14,971 5,545 13,087 1, ,956 1,463-13,612 47,518 3,140 2, , ,105 17, , ,271 4,055 14,290 9,494 3, ,937 3,610-25,101 72,188 13,015 9,400 3,616-1,446-15,907 3,615-25,307 72, , , ,253 21,781 $ $ 197,735 $ $ $ $ $ $ $ $ $ See Notes to Financial Statements.

11 STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2012 and 2011 Operating activities Change in net assets $ 233,229 $ (65,149) Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 68,021 72,306 Change in allowance for uncollectibles 6,233 18,249 Discount on promises receivable (2,604) (5,315) Return on beneficial interest in assets at Community Foundation (86,650) 14,720 Long-term contributions for endowment (22,500) (38,665) Changes in operating assets and liabilities: Promises receivable 158,999 72,075 Other receivables 100,615 (115,392) Prepaid expenses 10,697 (11,799) Other assets (21,663) (8,454) Community investments payable 106,043 22,860 Community investment fund grants payable (230,663) 415,541 Payable to other communities/agencies 17,022 (30,888) Accounts payable 119,698 17,018 Accrued expenses (2,704) (1,440) Other liabilities 19, 273 7,411 Net cash provided by operating activities 473, ,078 I nvesti no activities Purchases of property and equipment (1,000) (32,934) Certificates of deposit, net (16,177) (422,356) Contribution to beneficial interest in assets at Community Foundation (54,854) (40,045) Distribution from beneficial interest in assets at Community Foundation 3,000 3,032 Net cash used in investing activities (69031) (492303) Financing activities Proceeds from long-term contributions for endowment 47,362 52,884 Principal payments on long-term debt - (199,731) Net cash provided by (used in) financing activities 47, 362 (146,847) Cash and cash equivalents Net increase (decrease) in cash and cash equivalents 451,377 (276,072) Beginning 1,867,206 2,143,278 Ending $ & Supplemental disclosure of cash flow information Cash payments for interest See Notes to Financial Statements.

12 NOTES TO FINANCIAL STATEMENTS December 31, 2012 and 2011 Note 1 - Nature of organization and significant accounting policies A. Nature of organization United Way Fox Cities, Inc. (Organization) is a volunteer organization serving the Fox Cities communities of Wisconsin organized in 1993 under the laws of the State of Wisconsin. The Organization s revenue is derived primarily through fund-raising and contributions from the public. The mission of the Organization is to bring diverse people and resources together to build a stronger, more caring community for everyone. The Organization is governed by a volunteer board of directors. Through an extensive volunteer-driven process, funds are invested in partner agencies to fund programs fairly and impartially with the betterment of the broad community in mind. The distribution of funds is guided by boardapproved priorities through planning, needs assessment and policy decisions relating to the communities changing needs and resources. B. Basis of accounting The financial statements of the Organization have been prepared on the accrual basis of accounting and, accordingly, reflect all significant receivables, payables and other liabilities. C. Basis of presentation The Organization is required to report information regarding its net assets and its activities in the following three classes of net assets: D. Estimates Unrestricted net assets - net assets that are neither temporarily nor permanently restricted by donor-imposed stipulations. Temporarily restricted net assets - net assets that result from contributions whose use by the Organization is limited by donor-imposed stipulations that either expire by passage of time or can be fulfilled and removed by actions of the Organization pursuant to those stipulations. Permanently restricted net assets - net assets resulting from contributions whose use by the Organization is limited by donor-imposed stipulations that neither expire by passage of time nor can be fulfilled and removed by actions of the Organization. Permanently restricted net assets consist entirely of donor-restricted contributions for endowment. Management uses estimates and assumptions in preparing financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. E. Cash and cash equivalents For purposes of the statements of cash flows, the Organization considers all unrestricted highly liquid investments with an initial maturity of three months or less to be cash equivalents.

13 NOTES TO FINANCIAL STATEMENTS December 31, 2012 and 2011 Note 1 - Nature of organization and significant accounting policies, continued F. Property and equipment All acquisitions and improvements of property and equipment in excess of $500 are capitalized while all expenditures for repairs and maintenance that do not materially prolong the useful lives of assets are expensed. Purchased property and equipment is carried at cost. Donated property and equipment is carried at the approximate fair value at the date of donation. Depreciation is computed using the straightline method. C. Contribution recognition Contributions are recognized as revenue when they are received or unconditionally promised. Donorrestricted contributions are reported as increases in temporarily or permanently restricted net assets, depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statements of activities as net assets released from restrictions. Donated services are recognized as contributions if the services (a) create or enhance nonfinancial assets or (b) require specialized skills, are performed by people with those skills and would otherwise be purchased by the Organization. H. Functional allocation of expenses The costs of providing various programs and other activities have been summarized on a functional basis in the statements of activities and functional expenses. Accordingly, certain costs have been allocated on the basis of periodic time and expense studies among the program services and supporting activities benefited. In accordance with federal Form 990 and United Way Worldwide reporting requirements, dues to United Way Worldwide are allocated across program services and supporting activities. I. Income tax status United Way Fox Cities, Inc. is exempt from federal income taxes under Section 501 (c)(3) of the Internal Revenue Code. However, income from certain activities not directly related to the Organization s taxexempt purpose is subject to taxation on unrelated business income. In addition, the Organization qualifies for the charitable contribution deduction under Section 1 70(b)(1 )(A) and has been classified as an organization that is not a private foundation under Section 509(a)(2). The Organization is also exempt from Wisconsin income taxes. Penalties and interest assessed by income taxing authorities are included in management and general expenses, if applicable. The Organization had no interest and penalties related to income taxes for the year ended December 31, The Organization s federal returns are subject to examination generally for three years after they are filed and its state returns are subject to examination generally for four years after they are filed. Subsequent events The Organization has evaluated events and transactions for potential recognition or disclosure in the financial statements through March 27, 2013, the date on which the financial statements were available to be issued. 10

14 NOTES TO FINANCIAL STATEMENTS December 31, 2012 and 2011 Note 2 - Concentrations of credit risk arising from cash deposits in excess of insured limits The Organization maintains its bank accounts and certificates of deposits at several financial institutions in the Fox Cities area. The Organization s non-interest bearing transaction accounts are fully insured by the Federal Deposit Insurance Corporation (FDIC) through December 31, The cumulative balance of the Organization s other accounts is insured by the FDIC up to $250,000 per insured depository institution. As of January 1, 2013, the Organization s non-interest bearing transaction accounts are combined with its interestbearing demand deposits for FDIC coverage up to $250,000 per financial institution. In addition, deposits with credit unions are insured by the National Credit Union Share Insurance Fund (NCUSIF) up to $250,000. The Organization s cash deposits may exceed these federally insured limits at times during the year. The Organization has not experienced any losses on these accounts. Management believes the Organization is not exposed to any significant credit risk on cash. Note 3 - Certificates of deposit Certificates of deposit totaling $2,036,585 and $2,020,408 at December 31, 2012 and 2011, respectively, are included in the accompanying financial statements. The certificates bear interest ranging from.10% to.90% and.15% to 1.30% at December 31, 2012 and 2011, respectively, and have maturities ranging from one to eleven months, with penalties for early withdrawal. Any penalties for early withdrawal would not have a material effect on the financial statements. Note 4 - Promises receivable Promises receivable are primarily due from individuals and organizations located in the Fox Valley region. Approximately 18.1% and 17.2% of the total promises to give were due from one organization and its employees at December 31, 2012 and 2011, respectively. Promises receivable as of December 31, 2012 and 2011 consist of the following: Annual campaign: 2012 campaign 2011 campaign 2010 campaign Less provision for uncollectible amounts Capital campaign: Receivable in less than one year Less discounts to net present value Endowment campaign: Receivable in less than one year Receivable in one to three years Less discounts to net present value $ 4,775,806 $ - 590,083 4,733, ,642 5,365,889 5,479, , ,943 $ $ ,000 $ 60,000-2, $ $ 12,082 $ 25,026 3,667 15,585 15,749 40, ,733 $

15 NOTES TO FINANCIAL STATEMENTS December 31, 2012 and 2011 Note 4 - Promises receivable, continued All annual campaign promises receivable are due within one year. Provision for uncollectible amounts is calculated based upon a three year historical average applied to gross campaign results including donor designated amounts and management s consideration of specific promises receivable that may be at risk. Endowment campaign promises receivable in one to three years are discounted at.25% to.36% and.45% to 1.70% for 2012 and 2011, respectively. All capital campaign and endowment campaign promises receivable are considered to be collectible. Note 5 - Property and equipment Property and equipment consists of the following: 2SW Land Buildings and improvements Office furnishings and equipment Less accumulated depreciation $ 15,000 $ 15,000 1,257,689 1,257, , ,375 1,704,064 1,703, , ,560 Net property and equipment $ &--! Note 6 - Beneficial interest in assets at Community Foundation Beneficial interest in assets at Community Foundation consists of investments in pooled funds at Community Foundation for the Fox Valley Region, Inc. (CFFVR) which are carried at the fair value of the underlying securities in the fund. These funds are the legal assets of the Foundation with the restriction that the Foundation make distributions to the Organization as needed. The agreement governing the assets includes a variance power allowing the Foundation to modify the restrictions on distributions from the funds. The following is a description of each fund: Legacy of Caring Endowment Fund This fund was set up at CFFVR by the Organization s Board of Directors using a prior unrestricted donation and designating the net income to be used to support health and human service programs in the Fox Valley. Principal can be used in unusual circumstances. These amounts are presented in the financial statements as unrestricted, board designated net assets. Beginning in 2009, endowment campaign contributions may be permanently restricted by donors for this fund. These amounts are presented in the financial statements as permanently restricted net assets. 114,275 $ 101,229 12

16 NOTES TO FINANCIAL STATEMENTS December 31, 2012 and 2011 Note 6 - Beneficial interest in assets at Community Foundation, continued Administrative Endowment Fund This fund was set up at CFFVR by the Organization s Board of Directors using a prior donation that had been restricted by the donor to provide for the long-term funding of the Organization s administrative and operating expenses. Net income of the fund and, in unusual circumstances, principal must be used for the aforementioned purpose. Donor-restricted gifts are presented in the financial statements as permanently restricted net assets. 157,802 98,472 Reserve Investment Fund This fund was set up at CFFVR by the Organization s Board of Directors using a prior unrestricted donation and designating the net income to be used as a reserve in the event of campaign shortfalls and emergencies. Principal can be used in unusual circumstances. These funds are presented in the financial statements as unrestricted, board designated net assets. 567, ,851 Impact Area Endowment Funds These funds were set up at CFFVR by the Organization s Board of Directors using a prior unrestricted donation and designating the net income to be used to provide funding for identified impact areas. These funds are presented in the financial statements as unrestricted, board designated net assets. Beginning in 2010, endowment campaign contributions may be permanently restricted by donors for this fund. These amounts are presented in the financial statements as permanently restricted net assets. 86,370 74,723 $ $

17 NOTES TO FINANCIAL STATEMENTS December 31, 2012 and 2011 Note 7 - Board-designations of net assets The Organization s Board of Directors has chosen to place the following limitations on unrestricted net assets: Operations $ 860,000 $ 840,000 Community development 455, ,000 Campaign shortfall and emergencies 1,473,177 1,473,177 Community building projects 580, ,000 Capital replacement 395, ,127 Diaper bank 30,000 30,000 LIFE/Needs assessment 37,833 37,833 Vital Signs (LIFE in Motion) 15,000 15,000 Providing Access to Healing (PATH) for Students 200,000 - Endowments: Legacy of Caring 93,659 87,427 Impact Area 44,080 39,867 Administrative 17, ,473 Note 8 - Temporarily restricted net assets Net assets temporarily restricted for subsequent year programs consist of the following at December 31: Valentine Family Day festival Early childhood initiative Leading Indicators for Excellence (LIFE) in Motion Diaper bank Campaign celebration Providing Access to Healing (PATH) for Students Youth worker coalition $ 651 $ ,000 15,000 13,799-26,580 6,388-2,500 15, S 71, 596 $

18 NOTES TO FINANCIAL STATEMENTS December 31, 2012 and 2011 Note 9 - Endowment net assets As of December 31, 2012 and 2011, the Organization s endowment funds consist of contributions permanently restricted by donors and funds internally designated by the Board of Directors for the purposes of the endowment funds described in Note 6. As required by generally accepted accounting principles, net assets associated with endowment funds, including funds designated by the Board of Directors to function as endowments, are classified and reported based on the existence or absence of donor-imposed restrictions. The Board of Directors of the Organization has interpreted the Wisconsin Uniform Prudent Management of Institutional Funds Act (WUPMIFA) as requiring the preservation of the fair value of original gifts as of the gift date to the donor-restricted portions of the endowment funds absent donor stipulations to the contrary. As a result of this interpretation, the Organization classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowments and (b) the original value of subsequent gifts to the permanent endowments. The remaining portion of the endowment funds that are not classified in permanently restricted net assets are classified as temporarily restricted endowment net assets until those amounts are appropriated for expenditure by the Organization in a manner consistent with the standard of prudence prescribed by WUPMIFA. It is the Organization s policy to invest its funds consistent with the safeguards and diversity of a prudent investor, providing for the highest investment return with the maximum security, while meeting the daily cash flow demands of the Organization. Composition of endowment net assets as of December 31, 2012 and 2011 were as follows: Temporarily Permanently 2012 Unrestricted Restricted Restricted Total Donor-restricted endowment funds $ - $ 29,837 $ 196,849 $ 226,686 Board-designated endowment funds 154, ,842 Total funds, December 31, 2012 $ $ $ $ Temporarily Permanently 2011 Unrestricted Restricted Restricted Total Donor-restricted endowment funds $ - $ 12,743 $ 173,886 $ 186,629 Board-designated endowment funds 142, ,767 Total funds, December 3l,2011 $ $ $ $ (Continued) 15

19 NOTES TO FINANCIAL STATEMENTS December 31, 2012 and 2011 Note 9 - Endowment net assets, continued Changes in endowment net assets were as follows: Temporarily Permanently Unrestricted Restricted Restricted Total Endowment net assets, January 1, 2011 $ 148,658 $ 15,423 $ 134,965 $ 299,046 Contributions 38,921 38,921 Investment return: Investment income 2,615 2,022-4,637 Net appreciation (depreciation) (5,474) (4,702) - (10,176) Amounts appropriated for expenditure (3,032) - - (3,032) Balance, December 31, ,767 12, , ,396 Contributions ,963 22,963 Investment return: Investment income 2,627 3,002-5,629 Net appreciation 12,448 14,092-26,540 Amounts appropriated for expenditure (3,000) - - (3,000) Balance, December 31, 2012 $ $ $ $

20 NOTES TO FINANCIAL STATEMENTS December 31, 2012 and 2011 Note 10 - Donated materials and services The value of donated materials and services included in the financial statements as in-kind contributions and the corresponding expenses for the years ended December 31, 2012 and 2011 are as follows: 2012 Office Program Operations Marketing Campaign Total Supplies $ - $ 13 $ 6 $ 472 $ 491 Miscellaneous Professional fees - 5, ,138 7,968 Communications ,081 35,191 Printing - - 2,500 11,313 13,813 Travel ,499 8, $ $ $ $ Office Program Operations Marketing Campaign Total Supplies $ 4,499 $ 2,604 $ 592 $ 4,143 $ 11,838 Miscellaneous Professional fees - 7,975-1,963 9,938 Communications ,977 36,977 Printing ,962 11,165 17,322 Travel ,820 6, $ $ $ $ A significant amount of hours were volunteered by employees of local companies participating in the Organization s campaign. Volunteers also assisted the Organization in the review of allocations during the annual campaign. None of these contributed services are included in revenue on the statements of activities since they do not meet the criteria for recognition. Note 11 - Retirement plans The Organization sponsors a Section 403(b) retirement plan that covers substantially all employees. Employees may elect to contribute up to 12% of their wages to the Plan. The Organization may elect to make a discretionary contribution. For years 2012 and 2011, the Organization made contributions of $52,362 and $59,310, respectively, to the Plan. The Organization has an eligible deferred compensation plan under Section 457(b) of the Internal Revenue Code. The Organization s President/CEO was granted eligibility to participate in the plan. For years 2012 and 2011, Organization contributions to the plan were $10,745 and $10,534, respectively. 17

21 NOTES TO FINANCIAL STATEMENTS December 31, 2012 and 2011 Note 12 - Functional overhead analysis Functional overhead expenses and overhead rates as determined according to the United Way of America Functional and Overhead Reporting Guidelines for the years 2012 and 2011 are as follows: Functional overhead expenses (excluding in-kind expenses) Management and general: Office operations $ 369,654 $ 311,675 Marketing 91,740 69,769 Strategic planning - 11,433 Fund-raising: Campaign 547, ,862 Total functional overhead expenses (excluding in-kind expenses) $ $ Total revenue* (including designations/excluding in-kind donations) $ $ Overhead rate 13.3% 13.4% * Includes $2,141 and $5,059 of capital campaign revenue and $22,963 and $38,921 of endowment campaign revenue for 2012 and 2011, respectively. Note 13 - Pledge to comply with United Way of America Standard M The expenses associated with processing donor designated promises to give are recovered by an assessment for fundraising fees based on actual historical costs in accordance with United Way Worldwide Membership Standards as outlined in their publication titled United Way of America Cost Reduction Requirements for Membership Standard M. Note 14 - Fair value measurements Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures, clarifies the definition of fair value, establishes a framework for measuring fair value and expands the disclosures on fair value measurements in financial statements. FASB ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, whereas unobservable inputs reflect the Organization s market assumptions. The fair value hierarchy specified by FASB ASC 820 is as follows:. Level 1 - Quoted prices in active markets for identical assets and liabilities. Level 2 - Quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. 18

22 NOTES TO FINANCIAL STATEMENTS December 31, 2012 and 2011 Note 14 - Fair value measurements, continued The following table presents, for each of the fair value hierarchy levels, the Organization s financial assets and liabilities that are measured at fair value on a recurring basis: Assets Certificates of deposit Promises receivable: Capital campaign Endowment campaign Beneficial interest Section 457 Plan Total assets at fair value Liability Section 457 Plan Assets Certificates of deposit Promises receivable: Capital campaign Endowment campaign Beneficial interest Section 457 Plan Total assets at fair value Liability Section 457 Plan 2012 Fair Value Measurements Using Level 1 Level 2 Level 3 Total $ - $ 2,036,585 $ - $ 2,036, ,000 15, ,733 15, , ,779 88, ,024 $ 88,024 $ 2,962,364 $ 30,733 $ 3,081,121 $ 88,024 $ - $ - $ 88, Fair Value Measurements Using Level 1 Level 2 Level 3 Total $ - $ 2,020,408 $ - 787,275 68, $ 2,020,408 57,859 57,859 40,132 40, ,275-68,751 $ 68,751 $ 2,807,683 $ 97,991 $ 2,974,425 $ 68,751 $ - $ - $ 68,751 Fair values for the Section 457 Plan are determined by reference to quoted market prices. Fair values for the certificates of deposit are determined to be comparable to similar financial assets not actively traded with values approximating cost. Fair values for the beneficial interest are determined from information provided by the Community Foundation on relevant information generated by market transactions. Fair values for promises receivable are determined by calculating the net present value of future cash flows using rates of similar risk-free monetary assets. Management has determined the risk of nonperformance for promises receivable is remote and has not adjusted the risk-free rates used. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Organization believes the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. 19

23 NOTES TO FINANCIAL STATEMENTS December 31, 2012 and 2011 Note 14 - Fair value measurements, continued The following table sets forth a summary of changes in the fair value of the Organization s assets valued on a recurring basis using Level 3 inputs for the years ending December 31, 2012 and 2011: Capital campaign promises receivable Balance, beginning of year Payments received Change in present value Balance, end of year Endowment campaign promises receivable Balance, beginning of year Promises received Payments received Change in present value $ 57,859 $ 154,300 (45,000) (101,500) 2,141 5,059 15,000 $ 57, ,132 $ 54,095 22,500 38,665 (47,362) (52,884) Balance, end of year $ Note 15 - Subsequent event At the January, 2013 board meeting, the Organization s Board of Directors approved of changing the Organization s year end to a fiscal year ending March 31. The reason for the change is to capture significantly all annual campaign activity within the reporting period and to allow sufficient time for accurate reporting of final results for company campaigns and individual donations. The change is effective for the three-month period ending March 31,

24 SUPPLEMENTARY INFORMATION

25 SCHEDULES OF PARTNER AGENCY PROGRAM EXPENSES For the Years Ended December 31, 2012 and 2011 Advocap $ 39,349 $ 39,349 AIDS Resource Center of Wisconsin. 63,665 62,888 American Red Cross - Neenah-Menasha Chapter 31,688 30,179 American Red Cross - Outagamie County Chapter 100,493 97,701 The ARC Fox Cities 250, ,068 Best Friends of Neenah-Menasha 150, ,181 Big Brothers/Big Sisters of the Fox Valley Region 179, ,000 Boys and Girls Brigade Association 42,000 42,000 Boys and Girls Club of the Fox Valley 276, ,762 CAP Services, Inc. 88,983 86,392 Catholic Charities of the Diocese of Green Bay 143, ,924 Cerebral Palsy Mideast Wisconsin 43,434 42,666 Child Care Resource and Referral, Inc. 75,702 75,702 Christine Ann Domestic Abuse Services 107, ,035 Community Family Resource Center 17,978 17,608 Emergency Shelter of the Fox Valley 142, ,856 Family Services of Northeast Wisconsin 280, ,199 Financial Information and Service Center 200, ,857 Fox Cities Community Health Center 93,100 95,000 Fox Valley Children s Mental Health Center 78,000 75,000 Fox Valley Literacy Coalition 78,513 76,523 Friendship Place 98,800 95,900 Girl Scouts of the Fox River Area, Inc. 154, ,925 Harbor House Domestic Abuse Program 137, ,000 Hmong-American Partnership 146, ,781 Housing Partnership of the Fox Cities 12,600 12,000 Legal Services of Northeast Wisconsin 40,429 38,874 Lutheran Social Services 235, ,328 National Alliance on Mental Illness (NAMI) Fox Valley 64,132 63,050 Neenah-Menasha Dental Clinic 27,500 23,174 Neenah-Menasha Dial-A-Ride 8,500 8,500 Non-Profit Affordable Housing Based Rental Services (NAHBRS) 9,210 9,000 Project Bridges Day Care and Preschool 115, ,686 Reach Counseling Services 146, ,008 21

26 SCHEDULES OF PARTNER AGENCY PROGRAM EXPENSES For the Years Ended December 31, 2012 and 2011 (Continued) Sexual Assault Crisis Center of the Fox Cities 125, ,214 Valley Packaging Industries 197, ,527 Villa Hope 22,880 22,000 YMCA of the Fox Cities 568, ,295 Youth-Go 196, ,450 4,792,497 4,699,602 Less expenses funded through designations (331,781) (339,769) $ $

27 SCHEDULES OF COMMUNITY INVESTMENT FUND GRANTS For the Years Ended December 31, 2012 and 2011 Advocap American Red Cross of Northeast WI Appleton Area School District Building for Kids Celebrate Children Foundation Community Clothes Closet, Inc. Emergency Shelter of the Fox Valley, Inc. Family Services - Parent Connection Fox Valley Sibling Support Network Freedom Life Skills Greater Fox Cities Area Habitat for Humanity Housing Partnership of the Fox Cities Non-Profit Affordable Housing Based Rental Services (NAHBRS) Neenah-Menasha Emergency Society, Inc. Rebuilding Together Fox Valley St. Joseph Food Program Step Industries, Inc. Tr-County Community Dental Clinic $ 27,417 $ - 3,500-19,888 10,000 15,000 5,000-5,000 19,000-1,750-5,000 30, ,000-10,000-5,000 15,083 18,500-5,000-5,000 25,000 - $ $