HARPETH YOUTH SOCCER ASSOCIATION, INC. (A Tennessee Not-For-Profit Organization)

Transcription

1 (A Tennessee Not-For-Profit Organization) Independent Auditor s Report And Notes to Financial Statements June 30, 2017

2 (A Tennessee Not-For-Profit Organization) Financial Statements Contents Independent Auditor s Report 2-3 Statement of Financial Position 4 Statement of Activities and Change in Net Assets 5 Statement of Cash Flows 6 Statement of Functional Expenses 7 Notes to Financial Statements 8-11

3 CERTIFIED PUBLIC ACCOUNTANTS 8118A SAWYER BROWN ROAD * NASHVILLE, TENNESSEE * (615) * (615) (F) INDEPENDENT AUDITOR S REPORT To the Board of Directors of Harpeth Youth Soccer Association, Inc. PO Box Nashville, TN We have audited the accompanying financial statements of Harpeth Youth Soccer Association, Inc. (a nonprofit organization), which comprise the statement of assets, liabilities, and net assets- cash basis as of June 30, 2017, and the related statements of support, revenue, and expenses- cash basis for the year then ended, and the statement of cash flows 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.

4 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Harpeth Youth Soccer Association, Inc. as of June 30, 2017, and its support, revenue, and expenses for the year then ended in accordance with the cash basis of accounting as described in Note A. Basis of Accounting We draw attention to Note A of the financial statements, which describes the basis of accounting. The financial statements are prepared on the cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Nashville, Tennessee November 10, 2017

5 Statement of Financial Position June 30, 2017 ASSETS Current assets: Cash $ 324,480 Property and equipment (net of accumulated depreciation) 163,711 Deposits 7,193 TOTAL ASSETS $ 495,384 LIABILITES AND NET ASSETS Liabilities Accounts payable $ - Notes payable - current 5,706 TOTAL LIABILITIES 5,706 Unrestricted net assets 489,677 TOTAL LIABILITES AND NET ASSETS $ 495,383 The accompanying notes are an integral part of these financial statements. 4

6 Statement of Activites and Change in Net Assets For the year ended June 30, 2017 UNRESTRICTED NET ASSETS SUPPORT Program service revenue $ 919,061 Grants/Contributions 53,200 Sponsorships 2,500 Fundraising 25,262 Other income 19,360 Interest income 53 Total fees and support 1,019,436 Less refunds { 21,272 TOTAL SUPPORT AND REVENUE FROM OPERATIONS 998,164 EXPENSES Program expenses 675,863 Administration and Management 277,233 Fundraising - Total expenses 953,096 Increase in net assets 45,068 Net assets at beginning of year 444,609 Net assets at end of year $ 489,677 The accompanying notes are an integral part of these financial statements. 5

7 Statement of Cash Flows For the year ended June 30, 2017 Operating activities: Increase in net assets from operations $ 45,068 Depreciation 26,145 Increase in deposits (7,193) Net cash provided by operating activities 64,020 Investing activities: Purchase of equipment (1,106) Net cash used by investing activities (1,106) Financing activities: Repayment of loans payable (7,491) Proceeds from notes payable - Net cash used by financing activities (7,491) Net increase in cash for the year 55,423 Cash at beginning of year 269,056 Cash at the end of year $ 324,480 The accompanying notes are an integral part of these financial statements. 6

8 Statement of Functional Expenses For the year ended June 30, 2017 Operating Expenses: Total Program Admin Fund Raising Business expense - - Contract services - - Depreciation 26,145 26,145 Facilities and equipment 9,793 9,793 Field operations 22,586 22,586 Independent contractors - coaches 417, ,330 Interest Management and general 221, ,488 Office operations 31,072 31,072 Program services 199, ,146 Travel and meetings Payroll process fees 24,301 24,301 Total Functional Expenses $ 953,096 $ 675,863 $ 277,233 $ - The accompanying notes are an integral part of these financial statements. 7

9 Notes to Financial Statements June 30, 2017 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of the Organization Harpeth Youth Soccer Association, Inc. (HYSA) was incorporated April 26, 1989 under the laws of the state of Tennessee as a not-for-profit organization and is exempt from Federal income taxes under Section 501(c)(3) of the Internal Revenue Code. HYSA is a member of the Tennessee State Soccer Association and the United States Soccer Association whose primary purpose is to offer children and adults in the Nashville area the opportunity to play soccer. All players in the HYSA leagues are members of the HYSA. Basis of Presentation The accompanying financial statements have been prepared on the cash basis of accounting. Under this method, revenue is recognized when received rather than when earned, and expenses are recognized when paid rather than when the related obligation is incurred. Net assets and revenue, expenses, gains, and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Unrestricted net assets net assets that are not subject to donor-imposed restrictions. Temporarily restricted net assets net assets subject to donor-imposed restrictions that may or will be met, either by actions of the Organization and/or the passage of time. Restrictions that are fulfilled in the same accounting period in which the contributions are received are reported in the statement of activities as unrestricted. When a restriction expires in a period after the contributions are received, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Permanently restricted net assets net assets subject to donor-imposed stipulations that they be maintained permanently by the Organization. Generally, the donors of these assets permit the Organization to use all or part of the income earned and any related investments for general or specific purposes. There were no restricted net assets as of June 30,

10 Notes to Financial Statements June 30, 2017 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont d) Cash and Cash Equivalents For purposes of the Statement of Cash Flows, the Organization considers all cash funds, cash bank accounts, and highly liquid debt instruments, with an original maturity of three months or less when purchased, to be cash and cash equivalents. At June 30, 2017, the Organization had no cash equivalents. Contributions Contributions are considered to be available for unrestricted use unless specifically restricted by the donor. Contributions that are restricted by the donor are reported as increased 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. There are no restricted funds at June 30, Property and Equipment Property and equipment is recorded at purchase cost or fair market value when received as a donation. Assets are depreciated using the straight-line method of depreciation over the estimated useful lives of the related assets. Asset classes range from 5 to 7 years, with the exception of buildings and land improvements. Property and equipment consist of the following at June 30, 2017 : Goals and equipment $ 150,656 Lights 98,133 Buildings 112,204 Land improvements 170,241 Subtotal 531,234 Less: accumulated depreciation ( 367,523) Property and equipment, net $ 163,711 During the year ending June 30, 2017, the Organization incurred depreciation expense in the amount of $26,145. 9

11 Notes to Financial Statements June 30, 2017 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont d) Income Taxes The Organization is a nonprofit organization exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code; except to the extent of unrelated business taxable income. For the year ended June 30, 2017, no provision for unrelated business taxes is required. The Organization believes that they have appropriate support for any tax positions taken, and as such, do not have any uncertain tax positions that are material to the financial statements. The Organization is not a private foundation. The Organization has not recognized any tax related interest and penalties in the accompanying financial statements. Federal tax years that remain open for examination include the years ended June 30, 2014 through June 30, Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. NOTE B NOTE PAYABLE The Organization had the following note payable as of June 30, 2017: Note payable to a bank in monthly installments of $655, including interest at 4.50%, payable through March 4, The note is unsecured $ 5,706 As of June 30, 2017, there were no future maturities of long-term debt. NOTE C CONCENTRATION OF CREDIT RISK The Organization maintains its cash in bank deposit accounts, which at times, may exceed federally insured limits. Management has not experienced any losses in such accounts. Management believes that the Organization is not exposed to any significant credit risk on cash and cash equivalents. 10

12 Notes to Financial Statements June 30, 2017 NOTE D OPERATING LEASES The HYSA soccer complex is located primarily on a 46 acre tract of land which it subleases from the Metropolitan Government of Nashville and Davidson County (Metro) under a 25 year agreement beginning January 1, No annual or other lease payments are required under the agreement. However, HYSA is required to use the tract as a public park and for no other purpose and to furnish all services including, but not limited to, water, electricity, gas, sewer and communication. All improvements made upon the premises become the property of Metro upon the expiration of the lease. NOTE E CONTINGENCY Per the Organizations Executive Director, there were no active or pending litigation recorded against the HYSA as of June 30, The Organization does not retain an attorney and no attorney letter was provided to the auditors. The operations of HYSA occur on property located in a federally declared flood zone. Therefore, a contingency regarding flood damage and payment from insurance and FEMA sources continues at fiscal year end June 30, NOTE F SUBSEQUENT EVENTS Management has evaluated subsequent events through November 10, 2017, the date at which the financial statements were available to be issued and has determined that no events occurred that warrant recording or disclosure in these financial statements or notes thereto. 11