RANCHO CIELO, INC. FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 AND INDEPENDENT AUDITORS REPORT

Transcription

1 RANCHO CIELO, INC. FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 AND INDEPENDENT AUDITORS REPORT

2 RANCHO CIELO, INC. Table of Contents Page Independent Auditors Report 1 2 Financial Statements: Statements of Financial Position 3 Statements of Activities and Changes in Net Assets 4 Statements of Cash Flows 5 Statements of Functional Expenses 6 Notes to Financial Statements 7 16

3 INDEPENDENT AUDITORS REPORT To the Board of Directors Rancho Cielo, Inc. Salinas, California Report on the Financial Statements We have audited the accompanying financial statements of Rancho Cielo, Inc. (a California nonprofit benefit corporation), which comprise the statement of financial position as of September 30, 2015, and the related statements of activities and changes in net assets, functional expenses 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. 1

4 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Rancho Cielo, Inc. as of September 30, 2015, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matter The financial statements of Rancho Cielo, Inc. as of and for the year ended September 30, 2014, were audited by other auditors whose report dated June 17, 2015 expressed an unmodified opinion on those statements. March 10,

5 RANCHO CIELO, INC. STATEMENTS OF FINANCIAL POSITION SEPTEMBER 30, 2015 AND 2014 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 654,199 $ 412,021 Certificates of deposit 108, ,284 Accounts receivable 130,746 20,489 Pledges receivable, current portion 70,565 71,950 Promise to give land lease, current portion 62,700 60,000 Prepaid expenses 55,590 11,066 Inventory 23,060 21,459 Total current assets 1,105, ,269 NONCURRENT ASSETS: Certificates of deposit 106,313 Pledges receivable, net, less current portion 12,300 32,284 Promise to give land lease, non-current portion 1,109,343 1,116,347 Stewardship fund 254, ,435 Assets restricted for construction 4,130,722 1,702,464 Property and equipment, net 4,240,789 4,209,976 Total noncurrent assets 9,747,413 7,434,819 TOTAL ASSETS $ 10,852,874 $ 8,234,088 LIABILITIES AND NET ASSETS CURRENT LIABILITIES: Accounts payable $ 59,420 $ 101,065 Accrued wages and related liabilities 67,073 43,766 Security deposit 2,775 Total current liabilities 129, ,831 NET ASSETS: Unrestricted Temporarily restricted 5,128,951 5,594,655 5,041,170 3,048,087 Total net assets 10,723,606 8,089,257 TOTAL LIABILITIES AND NET ASSETS $ 10,852,874 $ 8,234,088 See Notes to Financial Statements. 3

6 RANCHO CIELO, INC. STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 Temporarily Temporarily Unrestricted Restricted Total Unrestricted Restricted Total REVENUES AND SUPPORT: Grants $ 322,186 $ 482,857 $ 805,043 $ 193,280 $ 317,093 $ 510,373 Contributions 384,224 2,432,492 2,816, , , ,528 Facility rental income 145, , , ,796 Donated services and materials 58, , ,555 11, , ,719 Program revenues 498, , , ,432 Total revenues and support 1,409,223 3,136,165 4,545,388 1,004, ,617 1,828,848 OTHER INCOME (EXPENSE): Special events, net of $24,641 and $54,884 in expenses in 2015 and 2014, respectively 464,899 18, , , ,645 Miscellaneous income 50,305 50,305 36,244 36,244 Interest income 12,089 12,089 10,518 10,518 Realized and unrealized income (loss) on investments (17,760) (17,760) 15,455 15,455 Total other income (expense) 509,533 18, , , ,862 NET ASSETS RELEASED FROM RESTRICTIONS 608,136 (608,136) 946,216 (946,216) Total revenues, support, other income (expense) and net assets released from restrictions 2,526,892 2,546,568 5,073,460 2,303,309 (121,599) 2,181,710 EXPENSES: Program 1,686,940 1,686,940 1,350,031 1,350,031 General and administrative 506, , , ,055 Fundraising 245, ,863 99,263 99,263 Total expenses 2,439,111 2,439,111 1,776,349 1,776,349 CHANGE IN NET ASSETS 87,781 2,546,568 2,634, ,960 (121,599) 405,361 NET ASSETS: Beginning of year 5,041,170 3,048,087 8,089,257 4,514,210 3,169,686 7,683,896 End of year $ 5,128,951 $ 5,594,655 $ 10,723,606 $ 5,041,170 $ 3,048,087 $ 8,089,257 See Notes to Financial Statements. 4

7 RANCHO CIELO, INC. STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 CASH FLOWS FROM OPERATING ACTIVITIES: Change in net assets $ 2,634,349 $ 405,361 Adjustments to reconcile change in net assets to cash and equivalents provided by operating activities: Contributions restricted for construction (2,921,985) (365,088) Unrealized and realized income (loss) on investments 17,760 (15,455) Change in discount on pledges and grants receivable 229,346 (455) Change in allowance for uncollectible receivable 209,524 Depreciation 120, ,649 Amortization of discount promise to give, land lease 4,304 4,304 Investment income on certificates of deposit (2,285) (478) Loss on sale of property and equipment 59,852 Change in operating assets and liabilities: Certificates of deposit 202,284 Accounts receivable (110,257) 11,758 Pledges receivable (21,370) 18,220 Prepaid expenses (44,524) (10,932) Inventory (1,601) (1,763) Accounts payable (41,645) (4,111) Accrued wages and related liabilities 23,307 (9,908) Deferred revenue (450) Security deposit and incentive fund payable 2,775 NET CASH PROVIDED BY OPERATING ACTIVITIES 403, ,652 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (211,314) (710,991) Reinvestment of investment income (4,583) (5,236) Assets restricted for construction (2,867,133) 233,778 NET CASH USED BY INVESTING ACTIVITIES (3,083,030) (482,449) CASH FLOWS FROM FINANCING ACTIVITES Contributions restricted for construction 2,921, ,088 NET CHANGE IN CASH AND CASH EQUIVALENTS 242,178 39,291 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 412, ,730 CASH AND CASH EQUIVALENTS, END OF YEAR $ 654,199 $ 412,021 See Notes to Financial Statements. 5

8 RANCHO CIELO, INC. STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 Support Services Support Services General General and and Program Administrative Fundraising Total Program Administrative Fundraising Total EXPENSES: Salaries and related costs $ 726,521 $ 236,986 $ 110,797 $ 1,074,304 $ 508,858 $ 223,219 $ 73,995 $ 806,072 Payroll taxes 74,083 28,132 8, ,965 52,446 14,745 8,318 75,509 Employee benefits 40,427 32, ,082 62,685 22,939 2,909 88,533 Total salaries and related expenses 841, , ,620 1,258, , ,903 85, ,114 Program costs 226,180 6,523 2, , , ,376 Depreciation 116,043 4, , ,102 7, ,649 Insurance 68,779 20,877 1,536 91, ,021 11,143 1, ,870 Utilities 34,264 20,108 54,372 94,002 9, ,942 Vehicle expense 48, ,257 57,106 5, ,961 Professional consultants 49, ,699 90, ,070 45,380 7,054 52,434 Supplies 145,497 7,432 8, ,653 43,736 5,280 49,016 Repairs and maintenance 55,472 4, ,306 15,566 1,775 17,341 Printing and reproduction 6,863 2,289 11,206 20,358 5,065 1,656 8,881 15,602 Public relations 10,909 2,610 4,491 18,010 9,273 3, ,068 Office and postage 564 6,783 1,991 9,338 4,545 5,181 2,078 11,804 Dues and subscription ,261 8,719 1, ,154 Bank charges 107 8,891 2,372 11,370 8,737 1, ,636 Security systems 4,170 3,127 7,297 9, ,230 Scholarships 9,700 9,700 8,772 8,772 Taxes and licenses 2, ,092 1,115 1,577 2,692 Rent 65,206 2,007 1,420 68,633 61,195 1,493 2,688 Training 1, ,663 Total expenses $ 1,686,940 $ 506,308 $ 245,863 $ 2,439,111 $ 1,350,031 $ 327,055 $ 99,263 $ 1,776,349 See Notes to Financial Statements. 6

9 RANCHO CIELO, INC. NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 NOTE 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Activities Rancho Cielo, Inc. (Organization) is a California nonprofit public benefit corporation founded in 2000 for the purpose of establishing and maintaining a comprehensive system of prevention and intervention services for juvenile offenders in Monterey County to ensure public safety and allow successful reintegration into the community. The Organization is governed by a board of directors and receives contributions from individuals, corporations, local foundations as well as fees for services. The Organization provides educational programs for students who could not achieve their academic goals in a traditional school setting. The Organization also provides support services, vocational training and job placement services to at-risk youth. The grounds of the Organization also provide opportunities for recreation and outdoor activities for youth. Basis of presentation The financial statements have been prepared on the accrual basis of accounting and use the following net asset classifications: Unrestricted net assets Net assets that are not subject to donor-imposed stipulations. Temporarily restricted net assets Net assets subject to donor-imposed stipulations that may or will be met either by actions of the Organization and/or the passage of time. Permanently restricted net assets Net assets to be held in perpetuity as directed by donors. As of September 30, 2015 and 2014, the Organization had no permanently restricted net assets. Cash and Cash Equivalents Cash and equivalents includes currency on hand, cash in banks and money market instruments maturing within 90 days. Cash on deposit occasionally exceeds federally insured limits. The Organization believes it mitigates the risk of concentration by depositing at major financial institutions. The Organization has not experienced any losses in these accounts and believes they are not exposed to any significant credit risk with respect to cash. Certificates of Deposit Certificates of deposit are classified as current if they have a maturity date within one year of September 30, 2015 and 2014, respectively, and as noncurrent if they mature in greater than one year from September 30, 2015 and 2014, respectively. 7

10 NOTE 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounts Receivable Accounts receivable are composed of rental fees, service fees and miscellaneous sales. Management believes that all accounts receivable are fully collectible, therefore, no allowance for doubtful accounts have been recorded at 2015 and All receivables are expected to be collected within on year. Pledges Receivable Pledges receivable that are expected to be collected within one year are recorded at net realizable value. Pledges receivable that are expected to be collected in future years are recorded at the present value of their estimated future cash flows. Pledges receivable during the years ended September , and 2014 are discounted using interest rates between 2.5% and 4.28%, respectively. Amortization of these discounts is included in contributions revenue in the accompanying statements of activities and changes in net assets. Pledges receivable are stated at the amount expected to be collected on the outstanding balances, and are presented net of allowance for uncollectibility. The allowance is based on an assessment of accounts by management. At September 30, 2015 and 2014, the allowance was $209,524 and $ 0, respectively. Inventory Inventory consists of donated vehicles and equipment held for sale or use and supplies for the Organization s job training programs. The Organization records inventory at its fair value when received. Property and Equipment All acquisitions and major improvements of property and equipment in excess of $1,000 are capitalized. Maintenance and repairs which do not extend the useful life of the respective assets are expensed as incurred. Property and equipment is stated at cost or, if donated, at the approximate fair value at the date of donation. Depreciation is computed using the straight-line method over the estimated useful lives of the property and equipment, which ranges from 3 to 50 years. Financial Instruments Financial instruments included in the Organization s statements of financial position include cash and cash equivalents, certificates of deposit, accounts receivable, pledges receivable and accounts payable. 8

11 NOTE 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Fair Value Measurements Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, the Organization considers the principal or most advantageous market in which it would transact, and considers assumptions that market participants would use when pricing the asset or liability. The three-level hierarchy for fair value measurements is defined as follows: Level 1 Valuation is based on observable inputs using quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date. Level 2 Valuation is based on inputs from sources other than quoted prices in active markets that are either directly or indirectly observable as of the reporting date. This may include quoted prices for similar assets in an active market, quoted prices for similar assets in a market that is not active or valuation methods using models, interest rates and yield curves as observable inputs. Level 3 Valuation is based on unobservable inputs for the assets, reflecting the Organization s consideration about the assumptions that a market participant would use in pricing the asset or liability, to the extent that observable inputs (Levels 1 and 2) are not available. Level 3 assets and liabilities include situations where there is little or no market activity for the asset or liabilities, and significant management judgment or estimates are required. The Stewardship fund is classified as Level 2, because it is valued using quoted prices in active markets. However, the Organization records the values based on the statements received from the Community Foundation of Monterey County (Community Foundation). Promise to give land lease is classified as Level 3 because it is measured at fair value using significant unobservable inputs to determine rent and cost of living adjustments. While the Organization believes its valuation methods are appropriate and consistent with those used by other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Those estimated values may differ significantly from the values that would have been used had a readily available market for such assets and liabilities existed, or had such assets and liabilities been liquidated, and these differences could be material to the financial statements. 9

12 NOTE 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Contributions and Grants All contributions and grants are considered to be available for unrestricted use unless specifically restricted by the donor or grantor. Amounts received that are designed for future periods or restricted by the donor or grantor for specific purposes are reported as temporarily restricted or permanently restricted support that increases those net asset classes. Donated Services and Materials The Organization records various types of inkind contributions. Contributed services are recognized at their fair value if the services received (a) create or enhance long-lived assets or (b) require specialized skills, are provided by individuals possessing those skills and would typically need to be purchased if not provided by donation. Contributions of donated noncash assets are recorded at their fair values in the period received. The amounts reflected in the accompanying financial statements as in-kind contributions are offset by like amounts included in expenses or additions to property and equipment. A number of volunteers have made significant contributions of their time and talent to promote the Organization s programs and activities. No amounts have been recognized in the statement of activities for this time and talent, because the recognition criteria have not been satisfied. Expense Allocation Expenses relating to more than one function are allocated to program, general and administrative and fundraising expenses based on employee utilization or other appropriate usage factors. Income Taxes As a tax-exempt not-for-profit organization, the Organization is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and from state franchise tax under California Revenue and Taxation Code Section 23701(d) but is subject to taxes on unrelated business income when earned. Management has considered its tax positions and believes that all of the positions taken in its federal and state exempt organization tax returns are more likely than not to be sustained upon examination. The Organization s returns are subject to examination by federal and state taxing authorities, generally for three years and four years, respectively, after they are filed. Use of estimates Preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of any 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. Reclassifications Certain prior year amounts have been reclassified to conform with the current year financial statement presentation. Subsequent Events Subsequent events have been evaluated through March 10, 2016, which is the date the financial statements were available to be issued. 10

13 NOTE 2. CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of the following as of September 30: Cash in bank $ 2,812,795 $ 1,619,773 Money market accounts 272, ,812 Petty cash 1, Total cash and cash equivalents 3,086,419 1,939,485 Less amounts restricted for construction 2,432,220 1,527,464 Total non-construction cash and Cash equivalents $ 654,199 $ 412,021 NOTE 3. PLEDGES RECEIVABLE Pledges receivable consist of the following as of September 30: Pledges receivable $ 2,220,237 $ 280,283 Allowance for uncollectible receivables (209,524) Discount to present value (229,346) (1,049) Total pledges receivable net 1,781, ,234 Less amounts restricted for construction 1,698, ,000 Total non-construction pledges receivable 82, ,234 Less current 70,565 71,950 Noncurrent $ 12,300 $ 32,284 Pledges receivable are due as follows: Receivable in less than one year $ 439,662 $ 246,950 Less restricted for construction 369, ,000 Total current $ 70,565 $ 71,950 Receivable within one to five years 1,324,119 32,284 Less restricted for construction 1,311,819 Total non-current $ 12,300 $ 32,284 11

14 NOTE 4. PROMISE TO GIVE LAND LEASE AND FAIR VALUE DISCLOSURES The Organization entered into a land lease agreement with the County of Monterey in The term of lease is 49 years, with two 25 year options to renew. The annual lease payment is $1. An unconditional promise to give has been recorded to reflect the value of the use of the land based upon the value of the donated rent, which has been determined to be $60,000 per year with a 4.5% cost of living increase at 10 year intervals. The future value of the donated rent has been discounted to its present value using a rate of 5.0%. For the years ended September 30, 2015 and 2014, the Organization recorded donated lease expense of $60,000, which is included in occupancy expenses in the accompanying statements of functional expenses. Promise to give land lease at September 30, 2015, are as follows: Receivable in less than one year $ 62,700 Receivable in one to five years 313,500 Receivable in more than five years 2,234,675 Total promises to give 2,610,875 Less discounts to net present value 1,438,832 Promise to give land lease, net 1,172,043 Less current 62,700 Noncurrent $ 1,109,343 The following tables present the fair value of the promise to give land lease, net on the accompanying statements of financial position, as of September 30, by fair value hierarchy: (Level 3) (Level 3) Promise to give land lease, net $ 1,172,043 $ 1,176,347 12

15 NOTE 4. PROMISE TO GIVE LAND LEASE AND FAIR VALUE DISCLOSURES (Continued) The following tables provide a rollforward of the land lease measured at fair value using significant unobservable inputs (Level 3) during the years ended September 30: Beginning balance $ 1,176,347 $ 1,180,651 Amortization of present value of Promise to give Donated lease expense 55,696 (60,000) 55,696 (60,000) Ending balance $ 1,172,043 $ 1,176,347 NOTE 5. STEWARDSHIP FUND AND FAIR VALUE DISCLOSURES The Organization has established a stewardship fund with the Community Foundation for the benefit of the Organization, and it can either take the annual payout as determined by the Community Foundation Board of Directors or the annual payout amount can be reinvested until the Organization requests it. The Organization has the option of withdrawing a portion or all of the fund s principal at any time upon written request by the Board of the Organization. The Community Foundation is acting as an investment agent, investing assets that continue to belong to the Organization. The following tables present the fair value of the assets held at the Community Foundation on the accompanying statements of financial position, as of September 30, by fair value hierarchy: (Level 2) (Level 2) Stewardship fund $ 254,258 $ 267,435 NOTE 6. ASSETS RESTRICTED FOR CONSTRUCTION The Organization segregates cash and other assets received with donor imposed restrictions that limit their use for long term purposes, such as construction. Assets restricted for construction, as of September 30, consist of the following: Cash and cash equivalents $ 2,432,220 $ 1,527,464 Grants and pledges receivable 1,698, ,000 $ 4,130,722 $ 1,702,464 13

16 NOTE 7. PROPERTY AND EQUIPMENT Property and equipment, net, as of September 30, consists of the following: Buildings $ 3,246,007 $ 2,108,373 Land improvements 1,408, ,643 Furniture and equipment 88,385 81,316 Autos and trucks 79,245 66,245 Total 4,822,599 3,081,577 Accumulated depreciation (877,215) (756,566) Total depreciable property and equipment net 3,945,384 2,325,011 Construction in progress: Recreation fields 1,729 1,729 Vocational center 293, ,663 Caretaker s house 91,779 Septic system 503,575 Transitional housing 995,219 Total construction in progress 295,405 1,884,965 Property and equipment net $ 4,240,789 $ 4,209,976 NOTE 8. TEMPORARILY RESTRICTED NET ASSETS Temporarily restricted net assets, as of September 30, consist of the following: Promise to give land lease, net $ 1,172,043 $ 1,176,347 Capital improvements 4,130,722 1,721,910 Youth programs and scholarships 291, ,830 Total $ 5,594,655 $ 3,048,087 14

17 NOTE 9. DONATED SERVICES AND MATERIALS The following is a summary of donated services and material during the years ended September 30: Capital General Youth Improve Operations Programs ments Vehicles Total Fixed assets $ 20,242 $ $ $ 8,000 $ 28,242 Land lease 16,709 38,987 55,696 Supplies 21,105 23, , ,759 Professional services 6,592 17,036 23,628 Maintenance and repairs Total before special events 64,648 63, ,961 8, ,025 Special events 15,551 15,551 Total $ 64,648 $ 78,967 $ 143,961 $ 8,000 $ 295,576 Capital General Youth Improve Operations Programs ments Vehicles Total Fixed assets $ $ $ $ 2,500 $ 2,500 Land lease 16,709 38,987 55,696 Supplies 4,051 6, , ,236 Professional services 9,318 9,318 Maintenance and repairs Total before special events 20,760 46, ,568 2, ,719 Special events 24,951 24,951 $ 20,760 $ 71,842 $ 125,568 $ 2,500 $ 220,670 NOTE 10. LEASING ACTIVITIES The Organization leases a portion of its facilities in Salinas, California to several tenants under non-cancellable operating lease agreements on multi-year and month-to-month arrangements expiring through June Rental income for the years ended September 30, 2015 and 2014 totaled $230,522 and $168,796, respectively. Future minimum rental income on operating lease agreements as of September 30, 2015 is as follows: 2016 $ 131, ,500 Total $ 144,505 15

18 NOTE 11. RELATED PARTY TRANSACTIONS A vice president on the board of directors owns five companies that provide construction, materials and related services to the Organization. During the years ended September 30, 2015 and 2014, the Organization paid $73,595 and $133,612, respectively, to these companies. Amounts due to these companies, as of September 30, 2015 and 2014, was $ 0 and $18,518, respectively. Approximately $1,058,464 and $62,067 in contributions were donated or purchased from related parties during the years ended September 30, 2015, and 2014, respectively. NOTE 12. RETIREMENT PLAN In June 2010, the board of directors approved a Simple Individual Retirement Account plan, which is available to employees who are 18 years of age, have completed one year of service, and have worked 1000 hours or more in the plan year. In November 2010, the plan was implemented and in February 2011 the board of directors approved a match of 1% of the eligible employees contributions. The Organization currently matches up to 3% of employee contribution. During the years ended September 30, 2015 and 2014, employer contributions aggregated $12,440 and $10,767, respectively. NOTE 13. CONCENTRATION OF CREDIT RISK Cash and cash equivalents and investments at September 30, 2015, include accounts insured by the Federal Depository Insurance Corporation (FDIC). As of September 30, 2015, the bank balances exceeded FDIC limits by $1,558,309. The Organization has not experienced any losses in such accounts and believes it was not exposed to any significant risk at September 30,