CASA PROJECT OF LEXINGTON ADVISORY BOARD LEXINGTON, KENTUCKY

Transcription

1 LEXINGTON, KENTUCKY * * * * * INDEPENDENT ACCOUNTANTS REVIEW REPORT AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

2 TABLE OF CONTENTS Page Independent Accountants Review Report 1 Financial Statements: Statements of Assets, Liabilities and Net Assets - Modified Cash Basis 2 Statements of Revenues, Expenses and Other Changes in Net Assets - Modified Cash Basis 3 Statements of Cash Flows - Modified Cash Basis 4 Notes to Financial Statements 5-7 CASA Project of Lexington

3 401 Lewis Hargett Circle Suite 110 Lexington, KY tel fax INDEPENDENT ACCOUNTANTS REVIEW REPORT To the Board of Directors CASA Project of Lexington Advisory Board Lexington, Kentucky We have reviewed the accompanying statements of assets, liabilities, and net assets - modified cash basis of CASA Project of Lexington Advisory Board (a nonprofit organization) as of June 30, 2010 and 2009, and the related statements of revenues, expenses and other changes in net assets - modified cash basis, and cash flows modified cash basis for the years then ended. A review includes primarily applying analytical procedures to management s financial data and making inquiries of CASA s managements. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion. Management is responsible for the preparation and fair presentation of the financial statements in accordance with the modified cash basis of accounting and for designing, implementing, and maintain internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the review in accordance with Statement on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. Those standards require us to perform procedures to obtain limited assurance that there are no material modifications that should be made to the financial statements. We believe that the results of our procedures provide a reasonable basis for our report. Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with the modified cash basis of accounting, as described in Note 2. Fister, Williams & Oberlander, PLLC December 16, 2010 Member American Institute of Certified Public Accountants and Kentucky Society of Certified Public Accountants

4 STATEMENTS OF ASSETS, LIABILITIES, AND NET ASSETS - MODIFIED CASH BASIS June 30, 2010 and 2009 A S S E T S Cash and cash equivalents $ 24,812 $ 16,628 Fixed assets, net Total assets $ 25,179 $ 17,362 L I A B I L I T I E S A N D N E T A S S E T S Accrued expenses $ 994 $ 47 Unrestricted net assets 24,185 17,315 Total liabilities and net assets $ 25,179 $ 17,362 See accompanying notes and accountants' report. Page 2

5 STATEMENTS OF REVENUES, EXPENSES AND OTHER CHANGES IN NET ASSETS - MODIFIED CASH BASIS For the Years Ended June 30, 2010 and Revenues collected: Contributions $ 76,307 $ 24,717 Fundraising events 24,256 27,292 Total revenues collected 100,563 52,009 Expenses: Operating expenses: Payroll expense 72,032 71,458 Fundraising expenses 11,166 6,392 Travel 1,837 1,212 Gifts to staff and volunteers Professional and contract services 1, Special events Miscellaneous 3, Depreciation Office expense 1, Total operating expenses 93,693 81,910 Nonoperating expense: Interest expense 225 Total expenses 93,693 82,135 Change in net assets 6,870 (30,126) Net assets, beginning of year 17,315 47,441 Net assets, end of year $ 24,185 $ 17,315 See accompanying notes and accountants' report. Page 3

6 STATEMENT OF CASH FLOWS - MODIFIED CASH BASIS For the Years Ended June 30, 2010 and Cash flows from operating activities: Change in net assets $ 6,870 $ (30,126) Adjustments to reconcile change in net assets to net cash provided by (used in) operating activities: Depreciation Changes in operating assets and liabilities Accrued expenses 947 (2,030) Net cash provided by (used in) operating activities 8,184 (31,789) Net increase (decrease) in cash and cash equivalents 8,184 (31,789) Cash and cash equivalents, beginning of year 16,628 48,417 Cash and cash equivalents, end of year $ 24,812 $ 16,628 Supplemental disclosure: Cash paid for interest $ 0 $ 225 See accompanying notes and accountants' report. Page 4

7 Cash Prepaid PP&E 16, Change in net assets #REF! Depreciation (367.00) Change in prepaid Change in accrued expenses Purchase of PP&E #REF! As reported 24, Difference #REF!

8 Accrued expenses Net assets Check (47.00) (17,315.00) #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! (994.00) (24,185.00) #REF! #REF! #REF!

9 NOTES TO FINANCIAL STATEMENTS June 30, 2010 NOTE 1 - NATURE OF ACTIVITIES CASA Project of Lexington Advisory Board (CASA) is a tax exempt corporation whose sole purpose is to provide victims of child abuse or neglect with a trained, supervised volunteer who will advocate for the child s best interest. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This summary of significant accounting policies of CASA is presented to assist in understanding CASA s operations and financial position. The financial statements and notes are representations of CASA s management who is responsible for their integrity and objectivity. These accounting policies conform to the modified cash basis of accounting, a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements. Basis of Accounting: The accompanying financial statements have been prepared on the modified cash receipts and disbursements basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles. That basis differs from generally accepted accounting principles in that revenues are recognized when received instead of when the service is provided and expenses are recognized when paid instead of when goods or services are received. Financial Statement Presentation: Financial statement presentation follows the recommendation of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Not-for-Profit Entities Presentation of Financial Statements. Under FASB ASC , CASA reports 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 based upon the existence or absence of donor-imposed restrictions. Use of Estimates: The preparation of financial statements in conformity with the modified cash basis of accounting requires management to make estimates and assumptions that affect certain reported amounts and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Page 5

10 NOTES TO FINANCIAL STATEMENTS June 30, 2010 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Contributed Services: During the year, CASA received contributions in the form of services provided for accounting and auditing services. The value of these services is not reflected in the financial statements. Cash and Cash Equivalents: For purposes of the statement of cash flows, highly liquid investments with an initial maturity of three months or less are considered to be cash equivalents. Fixed Assets: Fixed assets are recorded at cost when purchased or at their estimated fair value if donated. Fixed assets are depreciated over their estimated useful lives using the straight-line method. Income Tax Status: CASA is a not-for-profit corporation as described in Section 501(c)(3) of the Internal Revenue Code and is exempt from federal income taxes on related income pursuant to Section 501(a) of the Code. CASA has elected to defer the provisions of FIN 48, Accounting for Income Taxes, under the provisions of FSP FIN CASA uses a FAS 5, Loss Contingencies, approach for evaluating uncertain tax positions and continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. NOTE 3 - FIXED ASSETS Fixed assets are recorded at cost and consist of the following at June 30: Computer $ 1,834 $ 1,834 Less accumulated depreciation 1,467 1,100 Fixed assets, net $ 367 $ 734 Page 6

11 NOTES TO FINANCIAL STATEMENTS June 30, 2010 NOTE 3 - CONTRIBUTED OFFICE SPACE CASA is provided office space from the Lexington-Fayette Urban County Government (LFUCG). No amounts are recorded in the financial statements for the fair value of the contributed office space. Though CASA does not anticipate any changes to this arrangement in the near term, should the LFUCG terminate this arrangement, it would negatively impact the results of CASA operations. NOTE 4 - CLASSIFICATION OF EXPENSES The statement of activities discloses expenses by natural classification. The classification of expenses by functions is as follows: Program services $ 76,107 $ 73,353 Management and general 6,420 2,390 Fundraising 11,166 6,392 Total $ 93,693 $ 82,135 NOTE 5 - SUBSEQUENT EVENTS CASA has evaluated subsequent events through December 16, 2010 the date which the financial statements were available to be issued. Page 7