JOHN DAU FOUNDATION. Financial Statements as of December 31, 2014 Together with Independent Auditor s Report

Transcription

1 Financial Statements as of December 31, 2014 Together with Independent Auditor s Report

2 INDEPENDENT AUDITOR S REPORT November 9, 2015 To the Board of Directors of John Dau Foundation: Report on the Financial Statements We have audited the accompanying financial statements of John Dau Foundation (the Foundation, a New York not-for-profit organization) which comprise the balance sheet as of December 31, 2014, and the related statements of activities and change in net assets and cash flows for the year then ended, and the related notes to the financial statements. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 171 Sully s Trail, Suite 201 Pittsford, New York p (585) f (585) Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of John Dau Foundation as of December 31, 2014, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. (Continued) ALBANY BATAVIA BUFFALO EAST AURORA GENEVA NYC ROCHESTER RUTLAND, VT SYRACUSE UTICA

3 INDEPENDENT AUDITOR S REPORT (Continued) Report on Summarized Comparative Information We have previously audited John Dau Foundation s 2013 financial statements, and expressed an unmodified audit opinion on those audited financial statements in our report dated October 6, In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2013 is consistent, in all material respects, with the audited financial statements from which it has been derived. Report on Supplemental Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The 2014 Schedule of Unrestricted Functional Revenue and Expenses is presented for purposes of additional analysis of the financial statements and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The supplementary information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. The 2013 supplementary information is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the 2013 financial statements. The information has been subjected to the auditing procedures applied in the audit of those financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the 2013 supplementary information is fairly stated in all material respects in relation to the financial statements from which it has been derived.

4 BALANCE SHEET DECEMBER 31, 2014 (With Comparative Totals for 2013) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 378,589 $ 168,118 Grant receivable 4,405 27,284 Accounts receivable - 20,849 Prepaid expenses 2,215 6,642 Total current assets 385, ,893 PROPERTY AND EQUIPMENT 53,389 63,659 LIABILITIES AND NET ASSETS $ 438,598 $ 286,552 CURRENT LIABILITIES: Accounts payable $ 44,348 $ 34,361 Deferred grant income 30,612 - Total current liabilities 74,960 34,361 NET ASSETS: Unrestricted 343, ,191 Temporarily restricted 20,000 - Total net assets 363, ,191 $ 438,598 $ 286,552 The accompanying notes are an integral part of these statements. 1

5 STATEMENT OF ACTIVITIES AND CHANGE IN NET ASSETS FOR THE YEAR ENDED DECEMBER 31, 2014 (With Comparative Totals for 2013) Temporarily Unrestricted Restricted REVENUE: Contributions $ 250,506 $ 20,000 $ 270,506 $ 537,009 Grant income 231, , ,000 Interest income Miscellaneous income , ,289 20, , ,992 EXPENSES: Program services 260, , ,358 Management and administrative 87,809-87,809 86,076 Fundraising 42,704-42,704 40, , , ,050 CHANGE IN NET ASSETS 91,447 20, ,447 (15,058) NET ASSETS - beginning of year 252, , ,249 NET ASSETS - end of year $ 343,638 $ 20,000 $ 363,638 $ 252,191 The accompanying notes are an integral part of these statements. 2

6 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2014 (With Comparative Totals for 2013) CASH FLOW FROM OPERATING ACTIVITIES: Change in net assets $ 111,447 $ (15,058) Adjustments to reconcile change in net assets to net cash flow from operating activities: Depreciation 10,270 10,729 Changes in: Grant receivable 22,879 30,300 Accounts receivable 20,849 (20,849) Prepaid expenses 4,427 (1,733) Accounts payable 9,987 27,965 Deferred revenue 30,612 - Net cash flow from operating activities 210,471 31,354 CASH FLOW FROM INVESTING ACTIVITIES: Purchases of property and equipment - (53,137) Net cash flow from investing activities - (53,137) CHANGE IN CASH AND CASH EQUIVALENTS 210,471 (21,783) CASH AND CASH EQUIVALENTS - beginning of year 168, ,901 CASH AND CASH EQUIVALENTS - end of year $ 378,589 $ 168,118 The accompanying notes are an integral part of these statements. 3

7 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, THE ORGANIZATION John Dau Foundation (the Foundation) is a non-profit led by a dynamic refugee from Southern Sudan, John Dau who arrived in America in mid He has inspired business and non-profit leaders to help him establish the Foundation and create the first comprehensive and sustainable community medical clinic in his home village of Duk Payuel. Called the Duk Lost Boys Clinic, it has been in operation since 2007 and has served more than 32,000 people. John decided that the first and most essential need in his home village was to build a medical clinic. In November of 2004, John and other members of the First Presbyterian Church of Skaneateles developed a task force to build the clinic. The task force was incorporated as American Care for Sudan Foundation (ACSF) in 2005 and was exempt under 501 ( c ) ( 3 ) of the Internal Revenue Code (IRC). In 2007 the John Dau Foundation (JDF) was incorporated and received tax exempt status under 501 ( c ) ( 3 ) of the IRC. In June 2008, ACSF and JDF merged into one organization under the name of John Dau Foundation, doing business under the American Care for Sudan charter. The Foundation has a Letter of Foreign Asset Control (OFAC) permitting the Foundation to engage in humanitarian transactions in South Sudan. JDF is also registered with the Government of South Sudan as a non-governmental healthcare organization. For nearly 10 days in late February and early March 2014, South Sudanese rebels occupied the Duk Lost Boys Clinic, causing extensive damage and looting vital goods. The rebels looted items including food, solar units which power the clinic, medicine, fuel, beds, chairs, tables and other essential equipment. Despite the difficulties faced by the recent damage, the Foundation is currently making plans to restore the clinic in order to continue operations. A temporary clinic site has been set up to continue to provide services until the Duk Lost Boy Clinic is operational. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The financial statements have been prepared in conformity with accounting principles generally accepted in the United States (GAAP). Comparative Information The financial statements include certain prior year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with GAAP. Accordingly, such information should be read in conjunction with Foundation s financial statements for the year ended December 31, 2013, from which the summarized information was obtained. 4

8 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Financial Reporting The Foundation reports its activities and the related net assets using the following net asset classifications: Unrestricted Unrestricted net assets include funds available for the Foundation's operating activities. The Foundation recognizes restricted contributions for which the restrictions are met in the same year the contributions were received as unrestricted revenue. Temporarily Restricted Temporarily restricted net assets include resources that have been donated to the Foundation subject to restrictions as defined by the donor. These donations are received for the Foundation s needs. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are classified to unrestricted net assets and reported in the statement of activities as net assets released from restriction. Cash and Cash Equivalents Cash and cash equivalents consist of bank demand deposit and money market accounts. At times, the balances in these accounts may exceed federally insured limits. The Foundation has not experienced any losses in these accounts and management believes it is not exposed to any significant credit risk with respect to cash and cash equivalents. Property and Equipment Property and equipment purchases are recorded at cost if purchased or at the fair value at the date of donation. Depreciation expense is recorded on a straight-line basis over their estimated useful lives, which range from three (3) to five (5) years. The Foundation capitalizes all expenditures for property and equipment in excess of $1,000 with an estimated useful life in excess of two years. Grants Receivable and Deferred Revenue The Foundation recognizes revenue from funding sources as the related costs are incurred. A receivable is recorded to the extent revenue earned exceeds cash receipts. Deferred revenue is recorded to the extent cash receipts exceed revenue earned. The Foundation maintains an allowance for doubtful accounts based on a historical analysis of collections related to services provided under these contracts and a review of outstanding accounts at year-end. At December 31, 2014 and 2013, it was determined that the Foundation did not require an allowance for doubtful accounts. The Foundation received financial support from an international relief organization. The amount recorded as income from this organization totaled $167,300 and $300,000 in 2014 and 2013, respectively, and is included in income in the statement of activities and change in net assets. The Foundation had received deferred revenue from this organization of $19,325 at December 31, 2014 and was owed a grant receivable from this organization of $27,284 at December 31, The Foundation may receive funds from grantors in advance of earning the funds. These amounts are recorded as deferred revenue liabilities until earned. Contributions Contributions are recorded at the time the cash or pledge is received. 5

9 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Foreign Currency Transactions The Foundation s functional currency is the U.S. dollar. Operations conducted in the Sudan are transacted in U. S. dollars. Therefore, there are no reportable foreign currency translation gains or losses. Donated Services Volunteers have donated significant amounts of time in support of the Foundation s activities. However, the value of these services is not reflected in the accompanying financial statements, as they do not meet the criteria for recognition set forth under GAAP. Income Tax Status The Foundation is a not-for-profit organization and is exempt from income taxes as an organization qualified under Section 501(c)(3). The Foundation has been classified by the Internal Revenue Service as an entity that is not a private foundation. Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. 3. PROPERTY AND EQUIPMENT Property, plant and equipment consisted of the following at December 31: Vehicle $ 103,686 $ 103,686 Equipment 5,372 5, , ,058 Less: Accumulated depreciation (55,669) (45,399) Total property, plant and equipment $ 53,389 $ 63, TEMPORARILY RESTRICTED NET ASSETS The Foundation had net assets restricted for the following purposes at December 31: Solar powered water pump $ 20,000 $ - 6

10 4. TEMPORARILY RESTRICTED NET ASSETS (Continued) Temporarily restricted net assets were released from restrictions as follows: Satellite maintenance and services $ - $ 12, SUBSEQUENT EVENTS Subsequent events have been evaluated through November 9, 2015, which is the date the financial statements were available to be issued. 7

11 Exhibit I SCHEDULE OF UNRESTRICTED FUNCTIONAL REVENUE AND EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2014 (With Comparative Totals for 2013) UNRESTRICTED REVENUE: Contributions $ 250,506 $ 537,009 Grant income 231, ,000 Interest and miscellaneous income ,983 Net assets released from restrictions - 12,000 Total unrestricted revenue 482, ,992 EXPENSES: Program services - Salaries 156, ,981 Transportation 16,067 60,688 Facilities and equipment 14,611 51,271 Supplies 30, ,503 Construction materials - 21,113 Equipment depreciation 9,909 10,110 Telephone 4,960 11,032 Other operating expenses 27,987 35,660 Total program services 260, ,358 Supporting services - Management and administrative: Salaries and benefits 61,258 59,297 Contract services 10,781 11,014 Professional fees 9,500 8,875 Insurance 3,704 3,201 Telephone 1,636 1,721 Office expense 569 1,349 Depreciation expense Total management and administrative 87,809 86,076 Fundraising: Salaries and benefits 30,646 29,472 Other fundraising 12,058 11,144 Total fundraising 42,704 40,616 Total supporting services 130, ,692 Total expenses 390, ,050 EXCESS OF EXPENSES OVER (UNDER) REVENUE $ 91,447 $ (3,058) The accompanying notes are an integral part of this exhibit. 8