Financial Statements and Report of Independent Certified Public Accountant. Edmond Mobile Meals, Inc. December 31, 2015

Transcription

1 Financial Statements and Report of Independent Certified Public Accountant Edmond Mobile Meals, Inc. KEITH E. STINGLEY Certified Public Accountant

2 Contents Page Report of Independent Auditor -3- Financial Statements Statement of Financial Position -4- Statement of Activities -5- Statement of Changes in Net Assets -6- Statement of Cash Flows -7- Notes to Financial Statements 8-9 2

3 KEITH E. STINGLEY Certified Public Accountant 5100 N. Brookline, Suite 715 Oklahoma City, Oklahoma (405) To the Board of Directors Edmond Mobile Meals, Inc. INDEPENDENT AUDITOR S REPORT We have audited the accompanying financial statements of Edmond Mobile Meals, Inc. (a nonprofit organization), which comprise the statement of financial position as of, and the related statements of activities and cash flows for the year 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. Auditor s 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 from 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 Edmond Mobile Meals, Inc. as of, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Report on Summarized Comparative Information We have previously audited the Edmond Mobile Meals, Inc. s 2014 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated June 5, In our opinion, the summarized comparative information presented herein as of and for the year ended, is consistent, in all material respects, with the audited financial statements from which it has been derived. Keith Stingley, CPA Oklahoma City, Oklahoma August 2,

4 Statements of Financial Position Current Assets Assets Cash in Bank $ 216,314 $ 184,063 Accounts Receivable Gifts Cards 1, Security Deposits , ,438 Property and Equipment - At Cost Building Improvements 1,313 Equipment 16,224 16,224 Furniture and Fixtures 6,611 Less accumulated amortization (34) Less accumulated depreciation (14,031) (10,748) Total Property and Equipment-Net 10,083 5,476 Total Assets $ 228,221 $ 189,914 Liabilities and Net Assets Current Liabilities Payroll Taxes Payable $ 2,345 $ 2,323 Total Current Liabilities 2,345 2,323 Total Liabilities 2,345 2,323 Net Assets Unrestricted Net Assets 225, ,591 Total Net Assets 225, ,591 Total Liabilities and Net Assets $ 228,221 $ 189,914 The accompanying notes are an integral part of these statements. 4

5 Statement of Activities Temporarily Permanently Public Support, Revenues, and Reclassifications Unrestricted Restricted Restricted Total Total Client Contributions $ 73,771 73,771 80,285 Donations 77,996 77,996 63,329 40th Anniversary Celeration - - 1,650 Annual Fund Campaign 27,459 27,459 21,177 Chili Cookoff 1,258 1,258 - Crop Walk Dine out with EMM - - 1,667 Ed Fest 40,241 40,241 42,691 Feinstein Million Dollar Challenge 5,469 5,469 5,764 Just Feed One Mailing 8,945 8,945 - OKC Disc Golf Ice Bowl 1,000 1,000 2,500 Spring Fundraiser 4,500 4,500 - Tennis Tournament - - 8,640 Grants 113, , ,053 City of Edmond 8,400 8,400 8,400 COE-Utilities & Maintenance Fundraising In-Kind Donations 4,680 4,680 4,807 Regional Food Bank Senior Meals Other Income 2,800 2, Interest Income 2,983 2,983 2,156 Net assets released from restrictions (Note C) 220,720 (220,720) Total public support, revenues, and reclassifications 375, , ,015 Expenses and Losses 40th Anniversary Celebration - - 2,216 Annual Fund Campaign Dine Out with EMM Fundraiser Ed Fest 10,028 10,028 10,319 Just Feed One Campaign 1,348 1,348 - Tennis Tournament Expense - - 3,900 Groceries 89,276 89,276 83,803 In-Kind Expense 13,773 13,773 13,359 Loss on Sale/Disposal of Asset ,002 Professional Services 4,621 4, Renovation Expenses 3,328 3,328 5,621 Volunteer Appreciation 2,249 2,249 2,616 General and Administration 209, , ,092 Depreciation 3,317 3,317 4,996 Total expenses and losses 338, , ,157 Change in net assets 37, ,424 43,858 Net assets as of beginning of year 187, , ,733 Adjustment to Net Assets Net assets as of end of year $ 225, , ,591 The accompanying notes are an integral part of these statements. 5

6 Statement of Changes in Net Assets Years ended Balances at December 31, 2013 $ 143,733 Change in Net Assets ,858 Balances at December 31, 2014 $ 187,591 Change in Net Assets ,424 Prior Period Adjustment 861 Balances at $ 225,876 The accompanying notes are an integral part of these statements. 6

7 Statement of Cash Flows Years ended Cash Flow from Operating Activities Increase in Net Assets $ 37,424 $ 43,858 Adjustments to reconcile increase in net assets to net cash provided by operating activities: Depreciation 3,317 4,997 Loss on Disposition 10,002 Changes In Accounts Receivable (41) 47 Gift Cards (1,158) 1,151 Security Deposits (250) Payroll Taxes Payable 22 2,323 Net Cash Provided by Operating Activities 39,314 62,378 Cash Flow from Investing Activities Fixed Assets (7,924) (1,775) Net Cash from Investing Activities (7,924) (1,775) Cash Flows from Financing Activities Payments on notes - - Net Cash from Financing Activities - - Net Increase from Cash and Cash Equivalents 31,390 60,603 Cash and cash equivalents at beginning of year 184, ,460 Prior year adjustments Cash and cash equivalents at end of year $ 216,314 $ 184,063 The accompanying notes are an integral part of these statements. 7

8 Notes to the Financial Statements Note A Significant Accounting Policies Organization and Nature of Activities Edmond Mobile Meals, Inc. is a non-profit charitable organization who has operated independently since 1974 in Edmond, Oklahoma. The Organization provides hot, nourishing meals to the elderly and disabled persons who are unable to prepare meals for themselves. The Organization is supported primarily through volunteers of all ages, from the community, churches of Edmond, civic and social organizations, and financial donations. The Organization is a nonprofit organization as described in Section 501(C) (3) of the Internal Revenue Code and is exempt from federal and state income taxes. Public Support and Revenue Membership fees and nonspecific donations are generally available for unrestricted use in the related year unless specifically restricted by the donor. Grants and other contributions of cash and other assets are reported as temporarily restricted support if they are received with donor stipulations that limit the use of the donated assets. When a donor imposed restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Basis of Presentation Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. Under SFAS No. 117, the Organization is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. Property and Equipment Furniture, equipment, and building are capitalized at cost. It is the Organization s policy to capitalize expenditures for these items in excess of $500. Lesser amounts are expensed. Edmond Mobile Meals, Inc. records, when purchased or donated, any property or equipment. The Organization, accordingly, recognizes a provision for depreciation. Depreciation is provided using the straight-line method over the estimated useful lives of five to thirtynine years. Revenue Recognition Contributions and other receipts are recognized and recorded when received. Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and/or nature of any donor restrictions. All donor-restricted contributions are reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a restriction expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Contributed Services The Organization receives services donated by its members in carrying out the Organization activities. No amounts have been reflected in the financial statements for those services since they do not meet the criteria for recognition under SFAS No. 116, Accounting for Contributions Received and Contributions Made. 8

9 Notes to the Financial Statements Income Taxes Edmond Mobile Meals, Inc. is exempt from income taxes under Section 501(c) (3) of the Internal Revenue Code. Accordingly, no provision for income taxes has been included in the financial statements. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from these estimates. Cash and Cash Equivalents The Organization considers all highly liquid investments with a maturity of twelve months or less when purchased to be cash equivalents. This includes the operating cash account, certificates of deposit. Cash and cash equivalents for purposes of the statement of cash flows exclude permanently restricted cash and cash equivalents. There was no permanently restricted cash and cash equivalents as of. Note B -- Restricted Assets Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and/or nature of any restrictions imposed by donors. Board imposed restrictions do not preclude assets from being unrestricted. Note C Temporarily Restricted Assets Net assets were released from donor restrictions by incurring expenses satisfying the purpose or time restrictions specified by donors. Note D Net Assets Balances Edmond Mobile Meals, Inc. maintains a general fund balance for its operating activities and a property and equipment fund for its fixed assets. Note E Allocation of Expenses The cost of providing the various programs and activities has been summarized on a functional basis in the statement of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited. 9