The Robert Toigo Foundation. Financial Statements. December 31, 2015 (With Comparative Totals for 2014)

Transcription

1 The Robert Toigo Foundation Financial Statements (With Comparative Totals for 2014)

2 TABLE OF CONTENTS Page No. Independent Auditor's Report 1-2 Statement of Financial Position 3 Statement of Activities 4 Statement of Functional Expenses 5 Statement of Cash Flows 6 Notes to Financial Statements 7-13

3 INDEPENDENT AUDITOR'S REPORT To the Board of Directors The Robert Toigo Foundation Oakland, California We have audited the accompanying financial statements of The Robert Toigo Foundation (a non-profit corporation), which comprise the statement of financial position as of, and the related statements of activities, 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.

4 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The Robert Toigo Foundation as of, 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. Report on Summarized Comparative Information We have previously audited The Robert Toigo Foundation's 2014 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated June 1, In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2014, is consistent, in all material respects, with the audited financial statements from which it has been derived. May 31, 2016 Armanino LLP San Ramon, California - 2 -

5 Statement of Financial Position (With Comparative Totals for 2014) ASSETS Cash and cash equivalents $ 1,693,189 $ 1,142,587 Contributions receivable 857, ,035 Other receivables 1,329 3,236 Other assets 37,633 28,616 Total current assets 2,589,768 2,154,474 Contributions receivable, long-term, net 500, ,745 Property and equipment, net 13,603 12,780 Total assets $ 3,103,593 $ 3,002,999 LIABILITIES AND NET ASSETS Liabilities Accounts payable $ 22,806 $ 151,770 Accrued expenses 30,402 28,234 Total current liabilities 53, ,004 Net assets Unrestricted net assets (deficit) 1,155,382 (4,829) Temporarily restricted 1,895,003 2,827,824 Total net assets 3,050,385 2,822,995 Total liabilities and net assets $ 3,103,593 $ 3,002,999 The accompanying notes are an integral part of these financial statements

6 Statement of Activities For the Year Ended (With Comparative Totals for 2014) Temporarily Unrestricted Restricted Totals Totals Revenues, gains, and other support Contributions $ 954,011 $ 803,026 $ 1,757,037 $ 2,286,328 Investment income Other revenue 152, ,106 99,735 Special events revenue, net of expenses of $508, , , ,139 Net assets released from restrictions 1,735,847 (1,735,847) - - Total revenues, gains, and other support 3,621,708 (932,821) 2,688,887 3,115,526 Expenses Program services 1,882,068-1,882,068 2,044,547 Management and general 416, , ,701 Fundraising 162, , ,496 Total expenses 2,461,497-2,461,497 2,791,744 Change in net assets 1,160,211 (932,821) 227, ,782 Net assets (deficit) at beginning of year (4,829) 2,827,824 2,822,995 2,499,213 Net assets at end of year $ 1,155,382 $ 1,895,003 $ 3,050,385 $ 2,822,995 The accompanying notes are an integral part of these financial statements

7 Statement of Functional Expenses For the Year Ended (With Comparative Totals for 2014) Program Management Total Total Services and General Fundraising Expenses Expenses Salaries $ 473,921 $ 142,310 $ 90,904 $ 707,135 $ 678,739 Employee benefits 25,992 93,529 9, , ,725 Tuition fees 233, , ,500 Occupancy costs 73,273 9,180-82,453 72,253 Conferences and meetings 205,179 2, ,475 71,280 Office supplies 4,310 12,321 2,706 19,337 17,139 Telephone 3,122 4, ,044 9,733 Operation service fees 12,033 5,608 20,061 37,702 69,626 Professional service and IT fees 147, ,270 18, , ,554 Program and event service fees 501,929 10,482 6, , ,036 Printing 33,523 5, ,290 21,164 Advertising and public relations 3, ,942 5,165 Maintenance and repairs ,253 Travel 145,379 4,481 11, , ,766 Postage and delivery 4,708 1, ,231 6,952 Insurance 7,822 1,889-9,711 8,595 Filing fees Depreciation 5, ,898 10,089 Total expenses $ 1,882,068 $ 416,514 $ 162,915 $ 2,461,497 $ 2,791,744 The accompanying notes are an integral part of these financial statements

8 Statement of Cash Flows For the Year Ended (With Comparative Totals for 2014) Cash flows from operating activities Change in net assets $ 227,390 $ 323,782 Adjustments to reconcile change in net assets to net cash provided by operating activities Depreciation 5,898 10,089 Write off of contribution receivables 30,500 - Changes in operating assets and liabilities Contributions receivable 427, ,230 Other receivables 1,907 (1,613) Other assets (9,017) 41,872 Accounts payable (128,964) (30,251) Accrued expenses 2,168 12,468 Net cash provided by operating activities 557, ,577 Cash flows from investing activities Purchases of property and equipment (6,721) (1,220) Net increase in cash and cash equivalents 550, ,357 Cash and cash equivalents at beginning of year 1,142, ,230 Cash and cash equivalents at end of year $ 1,693,189 $ 1,142,587 The accompanying notes are an integral part of these financial statements

9 Notes to Financial Statements 1. Nature of Activities The Robert Toigo Foundation (the "Foundation") is a not-for-profit organization incorporated in California. The Foundation's contributions are primarily from financial service corporations located throughout the United States. The primary objectives of the Foundation are to: Establish and maintain a fellowship program which provides tuition assistance for selected students attending a graduate school of business; Attract minority groups to pursue business degrees leading to careers in finance; Assist participants by way of career management services which includes leadership development and job search support during and following their graduate studies; Provide the next generation of minority leaders with the support and skills needed to achieve next level of leadership and to promote the merits of diversity within corporate organizations to adopt best practices around inclusion and engagement of diverse talent and business enterprises; Implement program offerings and services that align to the needs and career trajectory of the post-graduate constituency of the Toigo Foundation The Foundation is currently sponsoring students at the following universities: Columbia Business School Duke University Fuqua School of Business Harvard Business School Massachusetts Institute of Technology Sloan School of Management New York University Leonard N. Stern Graduate School of Business Northwestern University Kellogg School of Management Rice University Jones Graduate School of Business Samuel Curtis Johnson Graduate School of Management at Cornell University Stanford University Graduate School of Business Tuck School of Business at Dartmouth College University of California, Los Angeles Anderson School of Management University of Chicago Booth School of Business University of Michigan Stephen M. Ross School of Business University of Pennsylvania, The Wharton School University of Virginia Darden School of Business Yale University School of Management - 7 -

10 Notes to Financial Statements 2. Summary of Significant Accounting Policies Basis of presentation The financial statements of the Foundation have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (GAAP). Net assets and changes therein are classified as follows: Permanently Restricted Net Assets - represent contributions to be held in perpetuity as directed by the donors. The income from these contributions is available to support activities of the Foundation as designated by the donors. The Foundation has no permanently restricted net assets as of. Temporarily Restricted Net Assets - represent contributions whose use by the Foundation is limited in accordance with temporary donor-imposed stipulations. These stipulations may expire with time and/or may be satisfied by the actions of the Foundation according to the intention of the donor. Unrestricted Net Assets - represent unrestricted resources available to support the Foundation's operations and temporarily restricted resources that have become available for use by the Foundation in accordance with the intentions of the donors. Revenues are reported as increases in unrestricted net assets unless use of the related assets is limited by donor-imposed restrictions. Expenses are reported as decreases in unrestricted net assets. Gains and losses on assets and liabilities are reported as increases or decreases in unrestricted net assets unless their use is restricted by explicit donor restriction or by law. Expirations of temporary restrictions on net assets (i.e., the donor-stipulated purpose has been fulfilled and/or the stipulated time period has elapsed) are reported as reclassifications between the applicable classes of net assets. Cash and cash equivalents The Foundation considers all highly liquid investments with maturities of three months or less at acquisition to be cash equivalents. The Foundation places its cash and cash equivalents with high credit quality institutions. Periodically, such deposits may be in excess of federally insured limits. Contributed services The Foundation recognizes the fair value of contributed services that create or enhance nonfinancial assets or require specialized skills, which are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donations

11 Notes to Financial Statements 2. Summary of Significant Accounting Policies (continued) Contributions and promises to give Contributions received are recorded as unrestricted, temporarily restricted or permanently restricted support, depending on the existence or nature of any donor restrictions. Unconditional promises to give cash and other assets to the Foundation are reported at their net realizable value at the date the promise is received. Conditional promises to give are reported at fair value at the date the condition is substantially met. Unconditional promises to give expected to be collected in future years are recorded at the present value of estimated future cash flows. The discounts on those amounts are computed using a risk-free interest rate adjusted for potential credit risk applicable in the years in which those promises are received. Amortization of the discount is included in contribution revenues. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified as unrestricted net assets. An allowance for doubtful contributions receivable, if necessary, is provided based upon management's judgment including such factors as prior collection history, type of contribution and current aging of contributions receivable. There was no allowance for doubtful contributions receivable as of. Property and equipment Property and equipment is stated at cost, or if donated, at the estimated fair value on the date of donation. The Foundation capitalizes all property and equipment valued at $1,000 or greater. Routine maintenance and repairs are charged to expense as incurred. Depreciation is computed on the straight-line method based on the asset's estimated useful life which range from 3 to 5 years. Allocation of functional expenses The costs of providing the various program services and supporting activities have been summarized on a functional basis in the statements of activities and functional expenses. Accordingly, certain costs have been allocated among the various functions based on estimates of time and direct costs. Use of estimates The preparation of financial statements in conformity with GAAP 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

12 Notes to Financial Statements 2. Summary of Significant Accounting Policies (continued) Tax status The Foundation is registered as a nonprofit corporation and is exempt from federal income taxes under section 501(c)(3) of the Internal Revenue Code. In addition, the Foundation is exempt from California state taxes under section 23701(d) of the California Revenue and Taxation Code. The Foundation has evaluated its current tax positions and has concluded that as of December 31, 2015 the Foundation does not have any significant uncertain tax positions for which a reserve would be necessary. Comparative financial information The financial statements include certain prior-year summarized comparative information in total but not by net asset classification. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the Foundation's financial statements for the year ended December 31, 2014, from which the summarized information was derived. 3. Contributions Receivable Unconditional promises to give, which are not expected to be collected until after the year promised, are reflected in the accompanying financial statements as contributions receivable and revenue in the appropriate net asset category. Contributions receivable are recorded using discount rates ranging from 1.1% to 4.53%. Four donors comprised approximately 70% of contributions receivable at. Contributions receivable consisted of the following at : Receivable in less than one year $ 857,617 Receivable in one to five years 548,333 Total contributions receivable 1,405,950 Less: discounts to net present value (48,111) Total net present value of contributions receivable 1,357,839 Less: current portion of contributions receivable (857,617) Net long-term portion of contributions receivable $ 500,

13 Notes to Financial Statements 4. Property and Equipment Property and equipment consists of the following at : Computers and equipment $ 51,468 Furniture 28,903 Software and website costs 338, ,283 Less accumulated depreciation and amortization (405,680) Property and equipment, net $ 13,603 Depreciation and amortization expense amounted to $5,898 for the year ended. 5. Temporarily Restricted Net Assets Temporarily restricted net assets consisted of the following at : Time restrictions $ 693,190 Purpose restriction Private Equity Post-MBA program support 417,198 Bridge-to-Business program support 670, Gala 114,000 Temporarily restricted net assets $1,895,003 Net assets were released from donor restrictions by incurring expenses satisfying the purpose restrictions specified or the expiration of time restrictions. The total amount of net assets released from restrictions during 2015 was as follows: Time restrictions expirations $ 392,214 Purpose restriction accomplished Post MBA Private Equity program support 736,447 Bridge-to-Business program support 29,761 Groundbreakers program support 159,375 Fellowship grants 251,750 Alumni Program 57,500 APEx underwriting event support 3,000 All A Board Grants 12, Gala 93,300 $1,735,

14 Notes to Financial Statements 6. Commitments Lease commitments The Foundation leases certain office equipment and facilities. The Foundation leases an office space for its operations at 180 Grand Avenue, Oakland, California. The lease expires in September 2017 and is subject to annual increases per the lease agreement. Minimum future lease payments due as of are as follows: 2016 $ 81, ,911 $134,140 Lease expense for all operating leases, including leases with terms of less than one year, amounted to $81,009 for the year ended. Tuition commitments The Foundation intends to provide continuing support for participating students until completion of their graduate education provided they maintain certain academic criteria. Accordingly, the Foundation has adopted a policy to identify resources needed to provide this future support at the time awards are made to new graduate students. At, the anticipated future tuition cost for the students to complete their studies is approximately $294,000. The Foundation expects to fund this from future contributions. 7. Related Party Transactions The Foundation received approximately $306,000 in contributions from board members during the year ended. 8. Retirement Plan The Foundation provides retirement benefits to its employees through a defined contribution plan which allows all eligible employees, as defined by the plan, to make elective deferrals of wages. The Foundation contributed $6,536 to the retirement plan during the years ended December 31,

15 Notes to Financial Statements 9. Subsequent Events The Foundation has evaluated subsequent events through May 31, 2016, the date of the financial statements were available to be issued. No subsequent events have occurred that would have a material impact on the presentation of the Foundation's financial statements