ANGEL HEART PAJAMA PROJECT FINANCIAL STATEMENTS

Transcription

1 FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017

2 TABLE OF CONTENTS Statement of Financial Position 1 Statement of Activities 2 Statement of Functional Expenses 3 Statement of Cash Flows 4 Selected Information 5-7 Supplemental Information 8

3 STATEMENT OF FINANCIAL POSITION December 31, 2017 ASSETS Cash and cash equivalents Cash in checking 31,843 Cash in gift cards 1,552 Total cash and cash equivalents 33,395 Prepaid expenses 75 Inventory (pajamas and books) 38,462 Refundable security deposit 75 TOTAL ASSETS 72,007 LIABILITIES Payroll taxes payable 2,254 TOTAL LIABILITIES 2,254 NET ASSETS Unrestricted Board designated - Undesignated 69,753 TOTAL UNRESTRICTED NET ASSETS 69,753 Temporarily restricted - Permanently restricted - TOTAL NET ASSETS 69,753 TOTAL LIABILITIES AND NET ASSETS $ 72,007 1

4 STATEMENT OF ACTIVITIES Year Ended December 31, 2017 Temporarily Restricted Permanently Restricted Unrestricted Total REVENUES AND GAINS Contributions $ 27,792 $ - $ - $ 27,792 Gifts in kind - goods for use 31, ,380 59, ,172 Other revenues TOTAL REVENUES AND GAINS 59, ,172 EXPENSES Program services 57, ,016 Management and general 8, ,805 Fundraising 3, ,300 TOTAL EXPENSES 69, ,120 CHANGE IN NET ASSETS (9,948) - - (9,948) NET ASSETS AT DECEMBER 31, ,701 79,701 NET ASSETS AT DECEMBER 31, 2017 $ 69,753 $ - $ - $ 69,753 2

5 STATEMENT OF FUNCTIONAL EXPENSES Year Ended December 31, 2017 Program Services Supporting Services Management and General Fundraising Total Donations to other nonprofits $ 510 $ - $ - $ 510 Compensation and related expenses 3,768 3,768-7,536 Fees for services (non-employees): - 1,750 2,573 4,323 Advertising and promotion Office expenses - 1,566-1,566 Information technology Occupancy Travel Conferences, conventions, meetings Interest Depreciation and amortization Insurance Other: Pajamas and books 49, ,114 Other noncash Supplies and materials 2, ,273 Business expenses Volunteer expenses $ 57,016 $ 8,805 $ 3,300 $ 69,120 3

6 STATEMENT OF CASH FLOWS Year Ended December 31, 2017 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from contributions and fundraising events $ 27,792 Cash paid for supplies, and other expenses (32,030) Cash paid for other items - NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (4,238) CASH FLOWS FROM INVESTING ACTIVITIES - CASH FLOWS FROM FINANCING ACTIVITIES - NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (4,238) CASH AND CASH EQUIVALENTS AT DECEMBER 31, ,633 CASH AND CASH EQUIVALENTS AT DECEMBER 31, 2017 $ 33,395 RECONCILIATION OF INCREASE IN NET ASSETS TO NET CASH PROVIDED BY OPERATING ACTIVITIES Increase (decrease) in net assets $ (9,948) Adjustments to reconcile increase in net assets to net cash provided by operating activities: In-kind contributions received (31,380) In-kind contributions donated out 49,114 (Increase) decrease in operating assets: Prepaid expenses - Inventory (pajamas and books) (14,278) Refundable security deposits 2,254 Increase (decrease) in operating liabilities: - NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (4,238) IN-KIND PROFESSIONAL SERVICES RECEIVED - IN-KIND PJs AND BOOKS RECEIVED 31,380 IN-KIND PJs AND BOOKS DONATED TO CHILDREN (49,114) 4

7 Selected Information Substantially All Disclosures Required by Accounting Principles Generally Accepted in the United States of America Are Not Included December 31, 2017 Note 1 Nature of Activities and Summary of Significant Accounting Policies Nature of Activities Angel Heart Pajama Project s primary purpose is to distribute new pajamas and books to enrich the lives and share love and caring to children in need. The children helped are in foster care, shelters, or are homeless. Basis of Accounting The financial statements of Angel Heart Pajama Project have been prepared on the accrual basis of accounting and accordingly reflect all significant receivables, payables, and other liabilities. Basis of Presentation 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. Cash and Cash Equivalents For purposes of the statement of cash flows, the Organization considers all highly liquid investments available for current use with an initial maturity of three months or less to be cash equivalents. This includes balances held in checking and savings accounts as well as cash value on gift cards. Promises to Give (Pledges Receivable) Contributions are recognized when the donor makes a promise to give to the Organization that is, in substance, unconditional. Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire in the fiscal year in which the contributions are recognized. All other donor-restricted 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. The Organization uses the allowance method to determine uncollectible promises receivable. The allowance is based on prior years experience and management s analysis of specific promises made. Contributed Services Donated services are recognized as contributions if the services (a) create or enhance a nonfinancial asset or (b) require specialized skills, are performed by people with those skills, and would otherwise be purchased by the Organization. Contributions Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire (that is, when a stipulated time restriction ends or purpose restriction is accomplished) in the reporting period in which the revenue is recognized. All other donor-restricted 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 Statement of Activities as net assets released from restrictions. 5

8 Selected Information Substantially All Disclosures Required by Accounting Principles Generally Accepted in the United States of America Are Not Included December 31, 2017 Note 1 Nature of Activities and Summary of Significant Accounting Policies (continued) Expense Allocation The costs of providing various programs and other activities have been summarized on a functional basis in the Statement of Activities and in the Statement of Functional Expenses. Accordingly, certain costs have been allocated among the programs and supporting services benefited. Inventory In July 2015, the Financial Accounting Standards Board ( FASB ) issued Accounting Standards Update (ASU ), Inventory: Simplifying the Measurement of Inventory. The amendments in this update require that substantial and unusual losses that result from the subsequent measurement of inventory be disclosed. ASU is effective for non-public business entities for annual financial statements beginning after December 15, 2016, and interim periods within years beginning after December 15, Early adoption is permitted and has been adopted by the Organization as of January 1, Inventories consist of books and pajamas held for distribution to children. Inventories that are purchased are recorded at cost. Inventories that are received by donation are recorded at fair market value, which is estimated to be $7.50 per item. When items in inventory are donated to children, they are removed from inventory at a moving average cost per item and are recorded as a non-cash direct program expense. At the end of the fiscal year, the value of inventory is adjusted to reflect the average cost of items held in inventory. This adjustment is not done at interim periods. Income Taxes The Organization is a not-for-profit organization exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code. In addition, the Organization qualifies for the charitable contribution deduction under Section 170(b)(1)(A) and has been classified as an organization other than a private foundation under Section 509(a)(2). Income tax expense for the twelve months ended December 31, 2017 was $0. In-Kind Support The Organization receives donations from a variety of sources of materials in the furtherance of its mission. The in-kind support consists principally of pajamas and books. In-kind support is recorded at its fair value on the date of donation. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumption that affect certain reported amounts and disclosures. The most significant estimates relate to the value of inventory, the fair value of donated materials, assets, and services, and the allocation of expenses by function. Accordingly, actual results could differ from those estimates. 6

9 Selected Information Substantially All Disclosures Required by Accounting Principles Generally Accepted in the United States of America Are Not Included December 31, 2017 Note 2 Comparative Information on Inventory - Books 12 Months Ended 12/31/16 12 Months Ended 12/31/17 Beginning Quantities 4,602 5,167 Books Received 3,099 2,403 Books Purchased 1,088 3,497 Books Donated to Children (3,622) (5,820) Ending Quantities 5,167 5,247 Note 3 Comparative Information on Inventory - PJs 12 Months Ended 12/31/16 12 Months Ended 12/31/17 Beginning Quantities 775 1,419 PJs Received 1,924 1,781 PJs Purchased 676 2,083 PJs Donated to Children (1,956) (3,333) Ending Quantities 1,419 1,950 7

10 SUPPLEMENTAL INFORMATION Year Ended December 31, 2017 SPENDING ON IMMEDIATE BASIC NEEDS Purchases of PJs $ 8,985 Related Program Costs 7,392 TOTAL SPENDING ON IMMEDIATE BASIC NEEDS 16,377 SPENDING ON OTHER CATEGORIES Purchases of Books 3,852 Direct donations to other non-profits 510 Management and general 8,805 Fundraising 3,300 TOTAL SPENDING ON OTHER CATEGORIES 16,467 TOTAL SPENDING $ 32,843 PERCENTAGE OF SPENDING ON IMMEDIATE BASIC NEEDS: 50% 8