THE BEACON COUNCIL ECONOMIC DEVELOPMENT FOUNDATION, INC. D/B/A THE BEACON COUNCIL FOUNDATION

Transcription

1 FINANCIAL STATEMENTS SEPTEMBER 30, 2012 AND 2011

2 TABLE OF CONTENTS REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 1 FINANCIAL STATEMENTS Statements of Financial Position 2 Statements of Activities 3 Statements of Cash Flows 4 Notes to Financial Statements 5-7

3 REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS To the Board of Directors The Beacon Council Economic Development Foundation, Inc. d/b/a The Beacon Council Foundation We have audited the accompanying statements of financial position of The Beacon Council Economic Development Foundation, Inc., d/b/a The Beacon Council Foundation (the Foundation") (a Florida notfor-profit corporation) as of September 30, 2012 and 2011, and the related statements of activities and cash flows for the years then ended. These financial statements are the responsibility of the Foundation's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The Beacon Council Economic Development Foundation, Inc., d/b/a The Beacon Council Foundation as of September 30, 2012 and 2011, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Miami, Florida May 6, 2013 An Independent Member of Baker Tilly International MIAMI 1001 Brickell Bay Drive, 9th Floor, Miami FL T F FORT LAUDERDALE 301 East Las Olas Boulevard, 4 th Floor, Fort Lauderdale, FL T F

4 STATEMENTS OF FINANCIAL POSITION SEPTEMBER 30, ASSETS Cash $ 158,290 $ 469,885 TOTAL ASSETS $ 158,290 $ 469,885 LIABILITIES AND NET (DEFICIT) ASSETS CURRENT LIABILITIES Accounts payable $ - $ 252,308 Due to The Miami-Dade Beacon Council, Inc. 160, ,109 TOTAL LIABILITIES 160, ,417 NET (DEFICIT) ASSETS Unrestricted (2,103) 52,468 TOTAL NET (DEFICIT) ASSETS (2,103) 52,468 TOTAL LIABILITIES AND NET (DEFICIT) ASSETS $ 158,290 $ 469,885 The accompanying notes are an integral part of these financial statements. -2-

5 STATEMENTS OF ACTIVITIES FOR THE YEARS ENDED SEPTEMBER 30, Temporarily Temporarily Unrestricted Restricted Total Unrestricted Restricted Total REVENUES AND OTHER SUPPORT Contributions $ - $ 15,000 $ 15,000 $ - $ 407,500 $ 407,500 Net assets released from restrictions 15,000 (15,000) - 407,500 (407,500) - TOTAL REVENUES AND OTHER SUPPORT 15,000-15, , ,500 EXPENSES Program expenses: One Community One Goal 62,033-62, , ,925 Support Services: Management and general 7,538-7, TOTAL EXPENSES 69,571-69, , ,970 CHANGE IN NET ASSETS (54,571) - (54,571) (18,470) - (18,470) NET ASSETS, beginning of year 52,468-52,468 70,938-70,938 NET (DEFICIT) ASSETS, end of year $ (2,103) $ - $ (2,103) $ 52,468 $ - $ 52,468 The accompanying notes are an integral part of these financial statements. -3-

6 STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED SEPTEMBER 30, CASH FLOWS FROM OPERATING ACTIVITIES: Change in net assets $ (54,571) $ (18,470) Adjustment to reconcile change in net assets to net cash (used in) provided by operating activities: (Decrease) increase in accounts payable (252,308) 252,308 NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES (306,879) 233,838 CASH FLOWS FROM FINANCING ACTIVITIES: Due to The Miami-Dade Beacon Council, lnc. (4,716) 165,109 NET (DECREASE) INCREASE IN CASH (311,595) 398,947 CASH, BEGINNING OF YEAR 469,885 70,938 CASH, END OF YEAR $ 158,290 $ 469,885 The accompanying notes are an integral part of these financial statements. -4-

7 NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2012 AND NATURE OF OPERATIONS The Beacon Council Economic Development Foundation, Inc. d/b/a The Beacon Council Foundation (the "Foundation"), formally known as The Economic Research Foundation, Inc is a tax-exempt, not-for-profit organization created on August 6, 1986 in the state of Florida to implement a county-wide strategic plan for economic development. The Foundation serves as a sales, marketing and research organization in conjunction with local chambers of commerce and economic development groups to promote the economic development of Miami-Dade County, Florida. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The financial statements of the Foundation have been prepared on the accrual basis of accounting and presented in accordance with an accounting standard issued by the Financial Accounting Standards Board ( FASB ) on Financial Statements of Not-for-Profit Organizations. This pronouncement requires not-for-profit organizations to report information regarding their financial position and activities according to three classes of net assets as follows: Unrestricted - Net assets which are neither permanently nor temporarily restricted by donor-imposed stipulations. Temporarily Restricted - Net assets whose use by the Foundation is limited by donor-imposed stipulations that either expire by the passage of time or that can be fulfilled or removed by actions of the Foundation pursuant to those stipulations. There were no temporarily restricted net assets as of September 30, 2012 and Permanently Restricted - Net assets whose use by the Foundation is limited by donor-imposed stipulations that neither expire with the passage of time nor can be fulfilled or otherwise removed by actions of the Foundation. There were no permanently restricted net assets as of September 30, 2012 and Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ( U.S. GAAP ) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Concentration of Credit Risk Financial instruments that potentially subject the Foundation to concentrations of credit risk consist principally of cash. The Foundation limits its exposure by placing its cash with high quality financial institutions. At times, cash deposits may be in excess of the Federal Deposit Insurance Corporation ("FDIC") insured limits. The Foundation has not experienced losses on its cash. Significant Donors In 2012, one donor accounted for 100% of total revenues and support. In 2011, three donors accounted for 85% of total revenues and support. -5-

8 NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2012 AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Tax Status The Foundation is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code. The Foundation recognizes and measures tax positions based on their technical merit and assesses the likelihood that the positions will be sustained upon examination based on the facts, circumstances and information available at the end of each period. Interest and penalties on tax liabilities, if any, would be recorded in interest expense and other non-interest expense, respectively. The U.S. Federal jurisdiction is the major tax jurisdiction where the Foundation files informational tax returns. The Foundation is generally no longer subject to U.S. Federal examinations by tax authorities for fiscal years before Contributions The Foundation recognizes contributions received as revenue in the period received. The Foundation considers all contributions to be available for unrestricted use unless they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends or the purpose of the restriction is accomplished, 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 Board members and volunteers have donated significant time to the Foundation s activities. However, the value of these services is not reflected in the accompanying financial statements, since such services are not the type that would qualify for recognition. Subsequent Events The Foundation has evaluated subsequent events through May 6, 2013, which is the date the financial statements were available to be issued. 3. ACCOUNTS PAYABLE Accounts payable, as of September 30, 2011, amounted to $252,308 and consists of amounts due to contractors for the One Community One Goal Program (Note 5). There was no accounts payable at September 30, DUE TO THE MIAMI-DADE BEACON COUNCIL, INC. The Foundation conducts business with its affiliate, The Miami-Dade Beacon Council, Inc. ( The Council ). The Council is a separate entity and is tax exempt under Section 501 (c)(6) of the Internal Revenue Code. During 2012 and 2011, The Council advanced certain funds to the Foundation primarily to cover program expenses for the One Community One Goal Program (Note 5). On April 15, 2011, the Foundation executed a promissory note with The Council in the amount of $150,000. The promissory note has an interest rate equal to the prime rate of interest, which was 3.25% at the date of execution. The original due date of the promissory note, plus interest was September 30, The Board of Directors of The Council resolved to extend the due date of the note to September 30, For the year ended September 30, 2012, included in management and general expenses in the statements of activities, is interest expense totaling $7,132 which was paid subsequent to year end. -6-

9 NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2012 AND DUE TO THE MIAMI-DADE BEACON COUNCIL, INC. (CONTINUED) Due to The Beacon Council, Inc. consists of the following at September 30, Note payable $ 150,000 $ 150,000 Accrued interest 7,132 - Short-term advances for operating expenses 3,261 15, ONE COMMUNITY ONE GOAL $ 160,393 $ 165,109 During the year ended September 30, 2011, the Foundation launched a new program, the One Community One Goal Targeted Industry Study for Miami-Dade County. The project will identify and prioritize the target industries and required education programs which will have the best chance of creating the new jobs needed in the future for Miami-Dade County. Education and training will be the foundation of the program and the study will also provide findings to integrate with all local economic development plans including the Economic Element of the Miami-Dade County Comprehensive Plan and the Economic Development portion of the Miami-Dade County Strategic Plan. The project will take one year to complete and will include six elements; Research and Strengths, Weaknesses, Opportunities and Threats Analysis, Community and Business Input and Interviews, Inventory of Education Assets, Prioritization of Target Industries and the Publication of the Final Report and Recommendations. A consulting firm was contracted in March 2011 to provide professional services relating to the One Community One Goal Program. Total compensation to be paid under the agreement is $349,680 payable in five installments of $69,936. The first two installments were made on April 1, and July 1, The next two installments were due October 1, 2011 and January 1, 2012 and were paid in accordance with the agreement. The final payment was made during 2012 at the completion of the contracted work as defined in the agreement. On May 16, 2011, the Foundation executed a Contract with a consultant not to exceed $60,000 to be paid in 12 monthly installments of $2,500 ending on May 15, The consultant will serve as the Research Manager and provide coordination and support services for the One Community One Goal Program. During 2012, the study was completed and rolled-out to stakeholders and other community partners in the project. The Foundation will enter the second phase of the project contingent upon the success of the study and securing additional funding. 6. UNRESTRICTED NET DEFICIT In 2012 and 2011, the Foundation incurred a net loss of $54,571 and $18,470, respectively. In addition, the net deficit is $2,103 as of September 30, The net deficit is related to the $150,000 note to The Council. The Council has no intention of calling the note until the Foundation has sufficient ability to repay. At present, The Council is considering forgiving the note or assisting the Foundation in fundraising to repay the note. The Foundation is not engaged in any additional activities subsequent to year end related to the One Community One Goal Program. The Foundation will not engage in additional activities until additional funding is committed. -7-