TEDDI PROJECTS, INC. (Formerly Camp Good Days and Special Times Foundation) MENDON, NEW YORK AUDITED FINANCIAL STATEMENTS AND

Transcription

1 (Formerly Camp Good Days and Special Times Foundation) MENDON, NEW YORK AUDITED FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR S REPORT SEPTEMBER 30, 2016 AND 2015

2 CONTENTS AUDITED FINANCIAL STATEMENTS PAGE Independent Auditor s Report 3 Statements of Financial Position 5 Statements of Activities and Changes in Net Assets 6 Statements of Cash Flows 7 Notes to Financial Statements 8

3 INDEPENDENT AUDITOR S REPORT The Board of Directors Teddi Projects, Inc. We have audited the accompanying financial statements of Teddi Projects, Inc. ( Teddi Projects ) which comprise the statements of financial position, as of September 30, 2016 and 2015, and the related statements of activities and changes in net assets, and cash flows for the years 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 audits. We conducted our audits 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

4 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Teddi Projects, Inc. as of September 30, 2016 and 2015, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Rochester, New York January 17,

5 STATEMENTS OF FINANCIAL POSITION September 30, ASSETS Cash and cash equivalents $ 21,917 $ 7,597 Investments 4,757,211 1,364,944 Other assets 71,578 65,635 LIABILITIES AND NET ASSETS TOTAL ASSETS $ 4,850,706 $ 1,438,176 NET ASSETS Unrestricted: Undesignated $ 4,850,706 $ 1,438,176 TOTAL NET ASSETS 4,850,706 1,438,176 TOTAL LIABILITIES AND NET ASSETS $ 4,850,706 $ 1,438,176 The accompanying notes are an integral part of the financial statements

6 STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS Year ended September 30, SUPPORT AND REVENUE General contributions $ - $ 507 Special events, net 17,364 - Investment income, net of fees of $31,130 and $15,622, respectively 310,079 48,846 TOTAL SUPPORT AND REVENUE 327,443 49,353 CHANGES IN NET ASSETS BEFORE CONTRIBUTION FROM CAMP GOOD DAYS AND SPECIAL TIMES, INC. 327,443 49,353 Contribution from Camp Good Days and Special Times, Inc. 3,085,087 - CHANGES IN NET ASSETS 3,412,530 49,353 Net assets at beginning of year 1,438,176 1,388,823 NET ASSETS AT END OF YEAR $ 4,850,706 $ 1,438,176 The accompanying notes are an integral part of the financial statements

7 STATEMENTS OF CASH FLOWS Year ended September 30, CASH FLOWS - OPERATING ACTIVITIES Changes in net assets $ 3,412,530 $ 49,353 Adjustments to reconcile changes in net assets to net cash provided from operating activities: Contribution of investments from Camp Good Days and Special Times, Inc. (3,085,087) - Realized gain on sale of investments (199,438) (10,425) Net unrealized loss on investments 25,967 7,918 Changes in certain assets and liabilities affecting operations: Other assets (5,943) (850) NET CASH PROVIDED FROM OPERATING ACTIVITIES 148,029 45,996 CASH FLOWS - INVESTING ACTIVITIES Purchase of investments (3,543,975) (892,885) Proceeds from sales of investments 3,410, ,261 NET CASH USED FOR INVESTING ACTIVITIES (133,709) (49,624) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 14,320 (3,628) Cash and cash equivalents at beginning of year 7,597 11,225 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 21,917 $ 7,597 SUPPLEMENTAL INFORMATION: Non-cash transactions: Contribution of investments from Camp Good Days and Special Times, Inc. $ 3,085,087 $ - The accompanying notes are an integral part of the financial statements

8 NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 AND 2015 NOTE A: THE TEDDI PROJECTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Teddi Projects Teddi Projects, Inc. ( Teddi Projects ) was incorporated in January 1996 and commenced operations in May 1997 under the laws of New York State. Teddi Projects was formerly named Camp Good Days and Special Times Foundation, the name was officially changed in September Teddi Projects was established to solicit, receive and maintain funds exclusively for the benefit of Camp Good Days and Special Times, Inc. Financial statement presentation Teddi Projects reports all of its operating results and related net assets as unrestricted. All funds included as unrestricted are available for use by the Teddi Projects Board of Directors to carry on the operation of Teddi Projects. Tax exempt status Teddi Projects is a tax-exempt under section 501(c)(3) of the Internal Revenue Code and applicable state regulations and, accordingly, is exempt from federal and state taxes on income. Use of estimates in the preparation of financial statements 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 support, revenue and expenses during the reporting period. Actual results could differ from those estimates. Cash and cash equivalents Cash and cash equivalents balances are maintained at financial institutions located in Upstate New York and are insured by the FDIC up to $250,000 at each institution. In the normal course of business, the cash account balances at any given time may exceed insured limits. However, Teddi Projects has not experienced any losses in such accounts and does not believe it is exposed to significant risk in cash. Investments Investments are stated at fair value based on quoted market prices. Contributions Teddi Projects records contributions at their fair value when a donor makes an unconditional promise to give. Contribution from Camp Good Days and Special Times, Inc. During the year ending September 30, 2016, $3,085,087 of investments were transferred to Teddi Projects from Camp Good Days and Special Times, Inc. The Teddi Projects is a separate entity and will grant money to Camp Good Days based on formal grant requests. Reclassifications Certain prior year amounts have been reclassified to conform with the current year presentation

9 NOTES TO FINANCIAL STATEMENTS, Cont d SEPTEMBER 30, 2016 AND 2015 NOTE A: THE TEDDI PROJECTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Cont d Subsequent Events Teddi Projects has conducted an evaluation of subsequent events occurring after the statement of financial position date through January 17, 2017, which is the date the financial statements are available to be issued. No subsequent events requiring disclosure were noted. NOTE B: INVESTMENTS Investments consist of the following: September 30, Money market funds $ 84,496 $ 18,557 Certificate of deposit 64,818 64,365 Fixed income securities - 63,910 Mutual funds 3,099,052 1,068,112 Common stock 542,859 - Preferred stock 465,986 - Auction rate preferred securities 500, ,000 $ 4,757,211 $ 1,364,944 Investment income for the years ended September 30, 2016 and 2015, consist of the following: September 30, Interest and dividend income $ 167,738 $ 61,961 Net realized gain on sale of investments 199,438 10,425 Net unrealized loss on investments (25,967) (7,918) Investment fees (31,130) (15,622) $ 310,079 $ 48,846 Investments are exposed to various risks, such as interest rate, market and credit risk. Due to the risks associated with investment securities, it is at least reasonably possible that changes in risks could materially affect the accompanying financial statements

10 NOTES TO FINANCIAL STATEMENTS, Cont d SEPTEMBER 30, 2016 AND 2015 NOTE C: FAIR VALUE MEASUREMENTS FASB ASC Fair Value Measurements establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 Measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FASB ASC are described below: Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. Level 2 - Inputs to the valuation methodology include: Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in inactive markets; Inputs other than quoted prices that are observable for the asset or liability; Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset s or liability 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. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at September 30, 2016 and 2015: Cash management, certificate of deposit and money market funds: Fair value approximates costs. Mutual funds and stocks: Valued at the closing price reported on the active market on which the individual funds and stocks are traded. U.S. government obligations and corporate obligations: Valued based on terms and conditions using trades, bid price or spread, two sided markets, quotes, benchmark curves, discount rates, TRACE trade reports, financial statements and trustee reports. Auction rate preferred securities: Valued at par which is the value the securities are expected to be redeemed for. 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, while Teddi Projects believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date

11 NOTES TO FINANCIAL STATEMENTS, Cont d SEPTEMBER 30, 2016 AND 2015 NOTE C: FAIR VALUE MEASUREMENTS, Cont d The following table presents the financial instruments measured at fair value on a recurring basis at September 30, 2016 and 2015: Assets at Fair Value Level 1 Level 2 Level 3 Total September 30, 2016 Money market funds $ 84,496 $ - $ - $ 84,496 Certificate of deposit - 64,818-64,818 Mutual funds: Domestic fixed income funds 2,846, ,846,960 International fixed income funds 252, ,092 Total mutual funds 3,099, ,099,052 Common stock: Conglomerates 542, ,859 * Preferred stock - various 465, ,986 Total common stock 1,008, ,008,845 Auction rate preferred securities - 500, ,000 Total assets at fair value $ 3,183,548 $ 564,818 $ - $ 4,757,211 Assets at Fair Value Level 1 Level 2 Level 3 Total September 30, 2015 Money market funds $ 18,557 $ - $ - $ 18,557 Certificate of deposit - 64,365-64,365 Fixed income securities: * Other fixed income securities - 63,910-63,910 Total fixed income securities - 63,910-63,910 - Mutual funds: Domestic fixed income funds 983, ,272 International fixed income funds 84, ,840 Total mutual funds 1,068, ,068,112 Auction rate preferred securities - 150, ,000 Total assets at fair value $ 1,086,669 $ 214,365 $ - $ 1,364,944 * Based on an analysis of the nature and risks of these investments, it has been determined that presenting them as single class is appropriate