JULIA C. HESTER HOUSE, INC.

Transcription

1 FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 AND INDEPENDENT AUDITOR S REPORT

2 TABLE OF CONTENTS Page Independent Auditor s Report 1 Statements of Financial Position 2 Statements of Activities 3 Statements of Functional Expenses 5 Statements of Cash Flows 7 Notes to Financial Statements 8

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4 STATEMENTS OF FINANCIAL POSITION Current Assets: Cash and cash equivalents $ 8,449 $ 4,578 Restricted cash 556, ,343 Investment, at fair value 32,542 35,622 Account receivable - other 84,534 - Grants and pledges receivable 67,284 17,910 Prepaid expenses 20,295 4,972 Total current assets 770, ,425 Property and Equipment, net 5,208, ,696 Other Assets: Deposit - 80,000 $ 5,978,768 $ 1,782,121 Current Liabilities: Current maturities of long-term debt $ 18,558 $ 11,278 Current maturities of capital lease obligations 455 4,599 Accounts payable 55,020 28,096 Accrued expenses 4,583 10,453 Total current liabilities 78,616 54,426 Long-Term Liabilities: Long-term debt, net of current maturities 38,875 48,915 Refundable advance 25,000 25,000 63,875 73,915 Commitments and Contingencies ASSETS LIABILITIES AND NET ASSETS Net Assets: Unrestricted 1,094, ,437 Temporarily restricted 4,741, ,343 5,836,277 1,653,780 $ 5,978,768 $ 1,782,121 (See Notes to Financial Statements) (2)

5 STATEMENTS OF ACTIVITIES For the Years Ended Temporarily Temporarily Unrestricted Restricted Total Unrestricted Restricted Total Support and revenue: United Way allocations $ 292,829 $ - $ 292,829 $ 229,652 $ - $ 229,652 Support income 254,561 4,142,426 4,396, , ,445 Special event Program income 29,459 91, ,192 37,499-37,499 Investment income 2,599-2,599 6,586-6,586 Rental income 54,423-54,423 50,312-50,312 Other income 5,453-5,453 6,354-6,354 Total support and revenue 639,324 4,234,159 4,873, , ,948 Net assets released from restrictions 160,591 (160,591) - 96,250 (96,250) - Total support and revenue 799,915 4,073,568 4,873, ,198 (96,250) 460,948 Expenses: Program services: Early childhood services 325, , , ,258 Family and social services 119, , , ,848 Senior services 108, , , ,899 Total program services 553, , , ,005 Supporting services: Fundraising Management and general 137, , , ,562 Total supporting services 137, , , ,192 Total functional expenses 690, , , ,197 Change in net assets 108,929 4,073,568 4,182,497 (54,999) (96,250) (151,249) (See Notes to Financial Statements) (3)

6 STATEMENTS OF ACTIVITIES (CONTINUED) For the Years Ended Temporarily Temporarily Unrestricted Restricted Total Unrestricted Restricted Total Net assets, beginning of year $ 985,437 $ 668,343 $ 1,653,780 $ 1,040,436 $ 764,593 $ 1,805,029 Net assets, end of year $ 1,094,366 $ 4,741,911 $ 5,836,277 $ 985,437 $ 668,343 $ 1,653,780 (See Notes to Financial Statements) (4)

7 STATEMENT OF FUNCTIONAL EXPENSES For the Year Ended December 31, 2014 Program Services Supporting Services Early Family and Childhood Social Senior Management Services Services Services Fundraising and General Total Salaries and Related Expenses: Salaries $ 133,236 $ 43,264 $ 36,221 $ - $ 19,739 $ 232,460 Employee fringe benefits Payroll taxes 7,438 1,021 2,079-3,851 14,389 Total salaries and related expenses 140,754 44,447 38,462-23, ,419 Operating Expenses: Automobile expenses 3, , ,864 Rental and maintenance 3,769 1,504 2,176-1,891 9,340 Insurance 13,840 7,487 7,487-7,286 36,100 In-kind expenses 14,855 9,114 2,894-1,725 28,588 Other expenses 16,016 3,203 (5,058) - 6,687 20,848 Professional fees 22,437 10,979 11,739-68, ,512 Program services 13,220 17,500 24, ,833 Special events Supplies 4,065 3,372 1,946-1,120 10,503 Telephone and telecommunication 4,534 2,506 2,506-3,293 12,839 Utilities 22,751 12,573 12,268-11,960 59,552 Total operating expenses before depreciation 119,310 68,703 61, , ,678 Depreciation 65,440 6,362 8,180-10,907 90,889 Total Functional Expenses $ 325,504 $ 119,512 $ 108,450 $ 359 $ 137,161 $ 690,986 (See Notes to Financial Statements) (5)

8 STATEMENT OF FUNCTIONAL EXPENSES (CONTINUED) For the Year Ended December 31, 2013 Program Services Supporting Services Early Family and Childhood Social Senior Management Services Services Services Fundraising and General Total Salaries and Related Expenses: Salaries $ 129,721 $ 58,561 $ 57,339 $ - $ 54,118 $ 299,739 Employee fringe benefits 3,842 2,464 1,159-9,504 16,969 Payroll taxes 8,348 3,291 4,222-6,979 22,840 Total salaries and related expenses 141,911 64,316 62,720-70, ,548 Operating Expenses: Automobile expenses , ,834 Rental and maintenance 7,683 3,758 4,460-3,770 19,671 Insurance 12,510 6,752 6,752-6,584 32,598 In-kind expenses 3,323 2,465 2,143-2,786 10,717 Other expenses 5,528 2,810 2,646-7,867 18,851 Professional fees 9,018 5,500 5,669-5,901 26,088 Program services 13,732 15,888 8,861-11,405 49,886 Special events Supplies ,014 Telephone and telecommunication 4,613 2,516 2,534-4,500 14,163 Utilities 15,499 8,727 8,727-8,157 41,110 Total operating expenses before depreciation 72,844 48,886 46, , ,562 Depreciation 37,503 3,646 4,688-6,250 52,087 Total Functional Expenses $ 252,258 $ 116,848 $ 113,899 $ 630 $ 128,562 $ 612,197 (See Notes to Financial Statements) (6)

9 STATEMENTS OF CASH FLOWS For the Years Ended Cash Flows from Operating Activities: Change in net assets $ 4,182,497 $ (151,249) Adjustments to reconcile change in net assets to net cash used in operating activities: Depreciation 90,889 52,087 Restricted donations received (91,733) - Donated property and equipment (4,142,426) - Unrealized gain on investment 3,080 (5,156) Changes in operating assets and liabilities: Account receivable (4,534) - Grants and pledges receivable (49,374) 89,797 Prepaid expenses (7,626) - Accounts payable (5,678) 24,499 Accrued expenses (5,870) (16,148) Net cash used in operating activities (30,775) (6,170) Cash Flows from Investing Activities: Purchase of property and equipment (128,844) - Transfer of restricted cash 86,358 - Net cash used in investing activities (42,486) - Cash Flows from Financing Activities: Restricted donations received 91,733 - Payments on long-term debt (10,457) (1,574) Payments on capital lease obligations (4,144) (3,156) Net cash provided by (used in) financing activities 77,132 (4,730) Net increase (decrease) in cash and cash equivalents 3,871 (10,900) Cash and Cash Equivalents, beginning of year 4,578 15,478 Cash and Cash Equivalents, end of year $ 8,449 $ 4,578 Supplemental Schedule of Noncash Investing and Financing Activities: Conversion of deposit to accounts receivable $ 80,000 $ - Property and equipment included in accounts payable $ 32,602 $ - Insurance note netted with prepaid expenses $ 7,697 $ - (See Notes to Financial Statements) (7)

10 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Activities Julia C. Hester House, Inc. (the Organization ) is a non-profit Texas corporation recognized as tax-exempt under Section 501(c)(3) of the Internal Revenue Code (Code). The Organization was founded in 1943 and provides social services to the residents of the Fifth Ward community in Houston, Texas. The Organization s services are funded by the United Way of the Texas Gulf Coast; Harris County, Texas (the County ); government grants; and donations from corporations and individuals. The Organization has the following programs: Early Childhood Services - The overall goal of this program is to foster a positive, healthy learning environment for the children of the Fifth Ward community and to continue to empower individual families. Based on Head Start Performance Standards and Texas Early Learning Standards, the program encourages each child to explore the environment in a positive way with a strong emphasis on early literacy and strong family support. The Organization s staff and families meet together to build relationships of respect and equality. Family and Social Services - Through supportive and case management services, the Family and Social Services program addresses immediate client needs while assessing root causes impacting the client s ability to maintain and/or achieve self-sufficiency. The elimination of these obstacles allows families to achieve personal, educational, and economic independence, which ultimately enhances the quality of life in the Fifth Ward and surrounding communities. The Organization partnered with two service providers, Wesley Community Center and Career Recovery Resources, to operate food pantry and support workforce development. Senior Services - The Senior Services program empowers seniors to live independently and with dignity. Critical services for the elderly are provided in a community-based environment promoting health and nutrition, social activities, recreation, and supportive services. The program seeks to decrease loneliness and isolation, improve and maintain health conditions, and provide linkage to critical resources to help sustain at-risk seniors within their homes. Ultimately, the impact will result in an increase in lifestyle changes, which supports the Organization s mission of promoting quality of living in the Fifth Ward community. Basis of Accounting and Financial Statement Format The financial statements of the Organization are prepared using the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America. In accordance with Accounting Standards Codification (ASC) 958, Not-for-Profit Entities, the Organization reports information regarding its financial position and activities according to three classes of net assets as follows: Unrestricted net assets - net assets that are not subject to donor-imposed stipulations. Temporarily restricted net assets - net assets that are subject to donor-imposed or grantorimposed stipulations that require the passage of time or the occurrence of a specific event. (8)

11 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Permanently restricted net assets - net assets required to be maintained in perpetuity, with only the income used for operating activities, due to donor-imposed stipulations. There were no permanently restricted net assets at December 31, 2014 or Cash and Cash Equivalents The Organization considers cash and cash equivalents to include all cash, time deposits, and highly liquid investments with original maturities of three months or less. Cash and cash equivalents do not include financial instruments that are restricted or board designated for specific use. The Organization places its cash investments with a financial institution it believes has high credit quality. At times, such investments may be in excess of the federally insured limit. Restricted Cash Restricted cash consists of funds received for the Organization s capital projects and maintenance of certain property and equipment, as required by donors. Investment The Organization s investment in an equity security is reported at fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction. See Note 4 for discussion of the investment s fair value measurement. Dividends earned on the investment are recorded on the ex-dividend date. The unrealized gain or loss on investment is included in investment income in the statements of activities. Grants and Pledges Receivable Grants and pledges receivable are recognized upon notification of an unconditional promise to give to the Organization and recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the absence or existence and nature of any restrictions. Grants and pledges receivable are stated at their estimated net realizable values. An allowance for uncollectible promises to give is recorded based on an analysis of collection histories and on reviews of the creditworthiness of major donors. Grants and pledges receivable are charged off against the allowance for doubtful accounts when they are considered uncollectible by management. Grants and pledges that are restricted by a grantor or 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 the restrictions expire, 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 statements of activities as net assets released from restrictions. (9)

12 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Donated assets and non-cash donations are recorded as contributions at their fair market value on their date of donation. The Organization reports the donations as unrestricted support, unless explicit donor stipulations specify how the donation must be used. Gifts of long-lived assets with explicit restrictions that specify how the assets must be used, and gifts of cash or other assets that must be used to acquire long-lived assets are reported as restricted support. Absent explicit donor stipulations about how long those long-lived assets must be maintained, the Organization reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in service and reclassifies the temporarily restricted net assets to unrestricted net assets. Donated Services The Organization pays for most services requiring specific expertise. However, many organizations and individuals volunteer their time and perform a variety of tasks to assist the Organization in its program services and fund raising campaigns. Donated services from organizations for 2014 and 2013 amounted to $47,778 and $43,750, respectively. Donated services from individuals for 2014 and 2013 amounted to $99,219, and $99,895, respectively. Account Receivable - Other Account receivable - other is comprised of a deposit and related interest earnings held by the County through the completion of a settlement house (the Wellness Center ) in October 2014 to be operated by the Organization (Note 9). The receivable is stated at estimated realizable value. An allowance for doubtful accounts is based on an analysis of the expected collection rate determined by management. Receivable balance is charged off against the allowance for doubtful accounts when it is considered uncollectible by management. No allowance for doubtful accounts was considered necessary as of. Property and Equipment Property and equipment are stated at cost. The Organization capitalizes property and equipment with a cost greater than $1,000. Improvements or betterments of a permanent nature are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. The cost of assets retired or otherwise disposed of and the related accumulated depreciation are eliminated from the accounts in the year of disposal. Gains or losses resulting from property disposals are credited or charged to operations currently. Depreciation is provided for using the straight-line method over the estimated service lives of the respective classes of assets. The estimated service lives are as follows: Building and leasehold improvements Furniture and equipment Vehicles 25 years 5-15 years 6 years Construction in progress represents costs incurred on the construction of assets that have not been completed or placed in service as of the end of the year. (10)

13 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Refundable Advance Refundable advance represents donated funds received in advance of pledge conditions being met, as determined by a donor. Contribution revenue will be recognized when the Organization receives notice from the donor that pledge conditions have been met. In 2015, the Organization s board of directors passed an affirmative resolution to recognize the refundable advance as contribution revenue for the Organization. The resolution is based on the passage of time, eight years, from the contribution date. Income Taxes As an organization described in Code Section 501(c)(3), the Organization is exempt from federal and state income taxes The Organization currently has no taxable unrelated business income. Accordingly, no provision for income taxes has been recorded. Management has evaluated the Organization s tax positions and concluded that the Organization has taken no uncertain tax positions that require adjustment to the financial statements. The Organization is no longer subject to U.S. federal or state income tax examinations by tax authorities for years before The Organization records tax-related interest and penalties in expenses and losses in the statements of activities. There was no tax-related interest or penalties in 2014 or Functional Allocation of Expenses The costs of providing the various programs and supporting services have been summarized on a functional basis in the statements of functional expenses. Expenses are charged to each program based on direct expenditures incurred. Expenses that are not directly associated with providing specific program services are allocated to the various programs based upon hours worked, square footage, number of program staff, or other reasonable method for allocating the Organization s multiple function expenditures. Accordingly, certain costs have been allocated among the programs and supporting services benefited. Accounting 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 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. Management believes that these estimates and assumptions provide a reasonable basis for the fair presentation of the financial statements. A significant estimate includes the fair value of the Organization s investment. Fair value estimates have inherent uncertainties and are exposed to various risks such as significant world events, interest rates, credit, and overall market volatility risks. Future changes in these risk factors may affect the significant fair value estimates materially in the near term. (11)

14 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) , Revenue from Contracts with Customers (Topic 606). ASU supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industryspecific guidance throughout the Industry Topics of the ASC. ASU , as further amended by ASU , is effective for annual reporting periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, Management is currently evaluating the impact ASU will have on the Organization s financial statements. NOTE 2 - GRANTS AND PLEDGES RECEIVABLE Grants and pledges receivable at consist of the following: NOTE 3 - INVESTMENT United Way $18,000 $17,000 Pledges 29,195 - Program grants 20, Special events - 9,450 67,284 27,300 Less: Allowance for doubtful accounts - (9,390) $67,284 $17,910 Investment and investment income consist of the following as of and for the years ended : Investment: Equity security $32,542 $35,622 Investment income: Dividends and other $ 5,679 $ 1,430 Unrealized gain (loss) (3,080) 5,156 $ 2,599 $ 6,586 (12)

15 NOTE 4 - FAIR VALUE MEASUREMENTS ASC 820, Fair Value Measurements and Disclosures, clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value, and requires additional disclosure about the use of fair value measurements in an effort to make the measurement of fair value more consistent and comparable. Various inputs are used in determining the fair value of certain Organization assets. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. In addition, ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The asset s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The three levels of the fair value hierarchy, including the types of the Organization s assets that fall under each category and the valuation methodologies used to measure fair value, are described below: Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. Equity security - Valued at the closing price reported on the active market on which the individual security is traded. Level 2 - Inputs to the valuation methodology are other than quoted market prices in active markets that are observable, either directly or indirectly, such as quoted prices for similar assets; quoted prices that are in inactive markets; inputs other than quoted prices that are observable for the assets; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 - Inputs to the valuation methodology are unobservable inputs (i.e., projections, estimates, interpretations, etc.) that are supported by little or no market activity and that are significant to the fair value of assets. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Organization believes its valuation method is appropriate, the use of different methodologies or assumptions to determine the fair value of the financial instrument could result in a different fair value measurement at the reporting date. The inputs and methodologies used for valuing the Organization s asset is not an indication of the risk associated with the asset. There have been no changes in the methodology used at December 31, 2014 or The Organization s equity security is stated at fair value, on a recurring basis, and measured using Level 1 inputs at. The equity security is classified as a large cap stock. At December 31, 2014, contributed property and equipment totaling $4,142,426 was measured at fair value on a nonrecurring basis. Fair value of the property and equipment is based on total costs incurred on the construction of the Wellness Center building and related leasehold improvements, which is a Level 1 asset. There was no contributed property and equipment during (13)

16 NOTE 5 - PROPERTY AND EQUIPMENT Property and equipment consist of the following at : Land $ 11,000 $ 11,000 Building and leasehold improvements 5,972,615 1,113,684 Furniture and equipment 383, ,721 Vehicles - 91,999 Construction in progress - 959,157 6,367,346 2,491,561 Less: Accumulated depreciation 1,158,667 1,495,865 NOTE 6 - LONG-TERM DEBT Long-term debt at consist of the following: $ 5,208,679 $ 995,696 Uncollateralized debt agreement, payable to a financial institution in monthly installments of $966, including interest at 3.5%, maturing August 2019 $49,736 $60,193 Uncollateralized insurance notes (3), payable in monthly installments ranging from $739 - $2,835, including interest at 12.5% %, maturing on various dates between January June ,697-57,433 60,193 Less: Current maturities 18,558 11,278 Future maturities of long-term debt at December 31, 2014 are as follows: For the Year Ended December 31: 2015 $18, , , , ,561 $38,875 $48,915 $57,433 (14)

17 NOTE 7 - CAPITAL LEASE OBLIGATIONS The Company leases property and equipment with lease terms through January Obligations under capital leases have been recorded in the financial statements at the present value of future minimum lease payments, discounted at 3.25%. At, the assets held under capital leases are included in property and equipment in the following classification: Furniture and equipment $12,321 $12,321 Less: Accumulated depreciation 7,736 5,272 Net book value $ 4,585 $ 7,049 Depreciation of property and equipment under capital leases is included in depreciation expense. Interest expense on capital lease obligations amounted to approximately $70 and $240 for 2014 and 2013, respectively. Future minimum lease payments under these capital leases and the net present value of the future minimum lease payments at are as follows: Total future minimum lease payments $455 $4,773 Less: Amount representing interest Net present value of future minimum lease payments $455 $4,599 NOTE 8 - TEMPORARILY RESTRICTED NET ASSETS Temporarily restricted net assets at consist of the following: Wellness Center $4,650,178 $668,343 Grants and pledges 91,733 - $4,741,911 $668,343 (15)

18 NOTE 9 - CONDITIONAL PROMISE TO GIVE In 2008, the Organization and the County entered into an agreement whereby the County, with use of funds totaling $4,000,000 appropriated from the State of Texas, is responsible for the construction and improvements of a settlement house to be operated by the Organization. Upon execution of the agreement, the Organization paid $80,000 to the County for the purpose of paying operating costs of the settlement house. After the settlement house is completed, the County is required to reimburse the Organization for certain expenses incurred in maintaining the settlement house, not to exceed the deposit amount of $80,000 plus interest earned during the construction period, and the Organization will own and operate the settlement house for at least ten years. In October 2014, the settlement house, known as the Wellness Center, was completed and opened for operations. As a result, the County transferred the title of the settlement house to the Organization, and accordingly, the Organization recognized the fair value of the settlement house for $4,142,426 as contribution revenue. Further, the Organization converted its $80,000 deposit to an account receivable (Note 1). NOTE 10 - COMMITMENTS AND CONTINGENCIES Joint Participation Agreement Beginning June 1, 2013, the Organization and the County entered into an initial four (4) years joint participation agreement; provided, however, that the agreement will renew for subsequent four (4) year terms automatically unless either Party provides notice at least sixty (60) days prior to the subsequent term start date that the Party will not renew for a subsequent term. In accordance with the agreement, the Organization will maintain ownership of its land and facilities and continue to operate the Wellness Center; and the County will use its resources to integrate into the current operations offered by the Organization or separately run programs, activities, meetings, and other services at the Organization s facilities. In July 2014, the joint participation agreement was amended to extend the initial term from four (4) years to ten (10) years; provided, however, that the agreement will renew for subsequent ten (10) year terms automatically unless either Party provides notice at least sixty (60) days prior to the subsequent term start date that the Party will not renew for a subsequent term. A Term Period begins on June 1 and ends with the expiration of May 31 ten (10) years later. Operating Lease - Lessor The Organization has a lease agreement with a third party for the rental of 30,000 square feet of land for the purpose of the Early Head Start Child Development Program. The land is included in property and equipment in the statements of financial position. The lease terminated on June 30, 2014 and was renewed on July 1, 2014 with a termination date of June 30, 2019 or 30 days after lessee s notice to the Organization that the lessee is no longer receiving certain funding for its services. Rental income is (16)

19 NOTE 10 - COMMITMENTS AND CONTINGENCIES (CONTINUED) recorded over the lease term, and approximates straight-line recognition. Rental income under the operating lease for 2014 and 2013 was $54,423 and $50,312, respectively. Future minimum rental income as of December 31, 2014 is as follows: For the Year Ended December 31: 2015 $ 55, , , , ,551 Concentrations of Credit Risk $261,082 The Organization receives a large portion of its funding from United Way and the County. As of, United Way and County contributions comprised approximately 81% and 95% of grants and pledges receivable, respectively; and in 2014 and 2013, United Way and County contributions were approximately 93% and 50% of total support and revenue, respectively. Funding sources may suspend payments, require reimbursement of expenses or return of funds, or both, as a result of noncompliance with the terms of a funding agreement. This could result in a liability or decrease of revenues for the Organization. Also, grants and pledges are funded annually and subject to annual funding renewals. In management s opinion, the risk of these events occurring is minimal, and would not have a material adverse effect on the Organization s financial position or results of its operations. Should any of these events occur, management s contingency plan includes raising funds through other sources, including but not limited to alumni, foundations and corporations, small businesses, professional associations, faith communities, and other individuals. NOTE 11 - SUBSEQUENT EVENTS The Organization has evaluated subsequent events through November 23, 2015, the date the financial statements were available to be issued. (17)