IOWA SOCCER ASSOCIATION, INC.

Transcription

1 FINANCIAL STATEMENTS AND INDEPENDENT ACCOUNTANT S COMPILATION REPORT JULY 31, 2016 AND 2015

2 ` Shareholders Michael E. Brinker, CPA Kathleen A. Koenig, CPA John A. Schmidt, CPA David A. Farnsworth, CPA Robert R. McGowen, CPA Daniel A. Schwarz, CPA/ABV David W. Hurst, CPA Brian K. Newton, CPA S. James Smith, CPA Consultants and Former Shareholders Michael W. McNichols, CPA Thomas J. Pflanz, CPA Joni M. Tonnemacher, CPA, MAFF To the Board of Directors Iowa Soccer Association, Inc. Des Moines, Iowa Management is responsible for the accompanying financial statements of Iowa Soccer Association, Inc. (a nonprofit organization), which comprise the statements of financial position as of July 31, 2016 and 2015, and the related statements of activities for the years then ended, and the related notes to the financial statements in accordance with accounting principles generally accepted in the United States of America. We have performed compilation engagements in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the financial statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any form of assurance on these financial statements. Management has elected to omit the statements of cash flows required by accounting principles generally accepted in the United States of America. If the omitted statements of cash flows were included with the financial statements, they might influence the user s conclusions about the Company s financial position and results of operations. Accordingly, the financial statements are not designed for those who are not informed about such matters. West Des Moines, Iowa July 31, West Lakes Parkway, Suite 300 West Des Moines, Iowa Fax: Members of CPAmerica International and the American Institute of Certified Public Accountants Founded in E. Jefferson Street, P.O. Box 312 Winterset, Iowa Fax:

3 STATEMENTS OF FINANCIAL POSITION JULY 31, 2016 AND 2015 (See Independent Accountant's Compilation Report) ASSETS CURRENT ASSETS Cash $ 206,439 $ 200,892 Certificates of deposit 332, ,006 Accounts receivable 133,479 60,229 TOTAL CURRENT ASSETS 671, ,127 PROPERTY AND EQUIPMENT Computer equipment 20,029 13,378 Accumulated depreciation (13,865) (10,497) NET PROPERTY AND EQUIPMENT 6,164 2,881 OTHER ASSET Investment in and loan to Soccer Travel, LLC 7,951 8,311 Investment in AMG, LLC 3,794 1,479 TOTAL OTHER ASSETS 11,745 9,790 TOTAL ASSETS $ 689,827 $ 603,798 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable $ 157,103 $ 87,049 Deferred revenues 24,907 54,641 TOTAL CURRENT LIABILITIES 182, ,690 NET ASSETS Unrestricted net assets 507, ,108 TOTAL LIABILITIES AND NET ASSETS $ 689,827 $ 603,798 The accompanying notes are an integral part of these financial statements 2

4 STATEMENTS OF ACTIVITIES FOR THE YEARS ENDED JULY 31, 2016 AND 2015 (See Independent Accountant's Compilation Report) REVENUES Registration fees - players $ 459,479 $ 446,827 Registration fees - coaches 40,832 40,922 Registration fees - other 4,300 4,350 Event and camp fees 187, ,490 User fees 765, ,954 Sponsorships and grants 8,500 13,750 Merchandise sales 18,820 37,355 Other income and reimbursements 6,222 5,008 Interest income 2,945 2,193 TOTAL REVENUES 1,494,160 1,806,849 EXPENSES Event and camp expenses 108, ,720 Lodging, meals and transportation 98, ,519 Referees and non-employee compensation 337, ,728 Salaries and wages 373, ,219 Payroll taxes 27,870 27,235 Retirement contribution 10,550 10,486 Other employee benefits 12,948 12,943 Awards and gifts 11,457 20,095 Apparel and merchandise 36,985 59,934 Depreciation 3,367 3,774 Equipment and supplies 29,872 55,261 Insurance 63,109 50,244 Miscellaneous 17,977 25,889 Player fees 114, ,532 Postage 3,806 4,051 Printing and publications 1, Professional fees 39,011 57,611 Rent - equipment & events 131, ,552 Rent - office 13,889 13,889 Telephone 12,294 14,188 TOTAL EXPENSES 1,448,451 1,745,453 INCREASE IN NET ASSETS 45,709 61,396 NET ASSETS - Beginning of Year 462, ,712 NET ASSETS - End of Year $ 507,817 $ 462,108 The accompanying notes are an integral part of these financial statements 3

5 NOTES TO FINANCIAL STATEMENTS (See Independent Accountant s Compilation Report) NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Activities - Iowa Soccer Association, Inc. is a not-for-profit corporation organized to further and promote the sport of soccer through organization, training and education; to aid, administer, assist and teach the sport of soccer for pleasure, recreational and other nonprofit purposes to and for the residents of the State of Iowa; and to organize soccer teams to compete and participate in the sport of soccer through the establishment and development of soccer programs. Income Taxes - Iowa Soccer Association, Inc. is exempt from income tax under Section 501(c)(3) of the Internal Revenue Code. The Association would be liable for taxes on any net income derived from activities unrelated to its exempt purpose. Management is unaware of any uncertain tax positions at July 31, 2016 and Interest and penalties associated with income tax matters would be presented as components of income tax expense. There were no interest or penalty charges during the fiscal year ended July 31, 2016 and Accounts Receivable - Accounts receivable, which are unsecured, arise primarily from miscellaneous revenues for user fees, registrations and cost reimbursements. Accounts receivable are stated at the amounts billed. Management believes that substantially all accounts receivable are collectible, therefore no allowance for doubtful accounts is provided. Investments - The Association owns a 33.33% interest in Alliance Management Group, LLC and owns a 25.80% interest in Soccer Travel, LLC. These investments are accounted for using the equity method of accounting. Accordingly, investments are recorded at acquisition cost plus the Association s equity in the undistributed earnings or losses of the entity. Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Subsequent Events - Management has evaluated subsequent events through July 31, 2016, the date the financial statements were available to be issued. NOTE B - CERTIFICATES OF DEPOSIT The Association held certificates of deposit totaling $332,000 and $330,006 at July 31, 2016 and 2015, respectively. The certificates bear interest ranging from 0.95% to 1.40% and are presented at cost which approximates market value. The face value of certificates maturing within the next year totals $81,000, with the remaining $251,000 maturing between 1 and 3 years from the balance sheet date. Management has elected to report all certificates as current assets since they are held in a brokerage account and could be sold and converted to cash quickly at an amount approximating face value. 4

6 NOTES TO FINANCIAL STATEMENTS (See Independent Accountant s Compilation Report) NOTE C - DEFERRED REVENUES Deferred revenues consist of fees and registrations received in the current year for events and activities that will occur in the next fiscal year. Deferred revenues are recognized as revenues during the period in which the related event occurs. NOTE D - RETIREMENT PLAN The Association sponsors a SIMPLE IRA Retirement Plan. All employees expected to earn at least $5,000 are eligible to participate. The Association makes matching contributions equal to 100% of the first 3% of compensation contributed to the Plan by each participant. Employer contributions to the Plan were $10,550 and $10,486 for the years ended July 31, 2016 and 2015, respectively. NOTE E - LEASE COMMITMENT Subsequent to July 31, 2016, the Association entered into an office facilities lease with monthly rental payments of $2,000 beginning on December 1, 2016 through January 31, Minimum future rental payments under terms of the lease are $16,000 for 2017, $24,000 for 2018 through 2020, and $12,000 for Annual rent expense associated with the prior office lease was $13,889 for the years ended July 31, 2016 and NOTE F - FUNCTIONAL EXPENSES Functional expense allocations were made by direct assignment of costs to functional categories where a direct relationship exists. Other common expenses have been allocated to functional categories based on time, use and occupancy estimates. Following is a summary of the Association s functional expenses: Program service activities fulfilling exempt purpose $ 1,213,054 $ 1,464,889 Management, general and other association activities 235, ,564 $ 1,448,451 $ 1,745,453 5