VIRGINIA MENTORING PARTNERSHIP FINANCIAL STATEMENTS

Transcription

1 FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2012 AND 2011

2 CONTENTS INDEPENDENT AUDITOR S REPORT... Page 1-2 FINANCIAL STATEMENTS STATEMENTS OF FINANCIAL POSITION... 3 STATEMENTS OF ACTIVITIES STATEMENTS OF CASH FLOWS... 6 NOTES TO FINANCIAL STATEMENTS

3 HARRIS, HARDY & JOHNSTONE, PC. CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR' S REPORT The Board of Directors Virginia Mentoring Partnership Richmond, Virginia Report on the Financial Statements We have audited the accompanying financial statements of Virginia Mentoring Partnership (a nonprofit organization) (the "Partnership"), which comprise the statements of financial position as of December 31, 2012 and 20 11, and the related statements of activities and cash flows for the years then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements The Partnership' s 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 Partnership'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 Partnership'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. - I 9201 Arboretum Parkway, Suite 200, Richmond, Virginia Tel : Fax: hhjcpa.com

4 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Virginia Mentoring Partnership as of December 31, 2012 and 2011, 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. Richmond, Virginia April 18,

5 STATEMENTS OF FINANCIAL POSITION DECEMBER 31, 2012 AND 2011 ASSETS CURRENT ASSETS Cash and cash equivalents $ 341,817 $ 340,699 Certificates of deposit - 300,064 Accounts receivable 45, Prepaid expenses 3,127 3,104 TOTAL CURRENT ASSETS 390, ,152 PROPERTY AND EQUIPMENT, at cost 62,162 54,764 Less: Accumulated depreciation 49,049 45,650 LIABILITIES AND NET ASSETS NET PROPERTY AND EQUIPMENT 13,113 9,114 TOTAL ASSETS $ 403,689 $ 653,266 LIABILITIES Accounts payable $ 59,148 $ 134,984 Unearned income 16,400 9,500 TOTAL LIABILITIES 75, ,484 NET ASSETS Unrestricted 227, ,280 Temporarily restricted 100,835 97,502 TOTAL NET ASSETS 328, ,782 TOTAL LIABILITIES AND NET ASSETS $ 403,689 $ 653,266 See Independent Auditor's Report and Notes to Financial Statements - 3 -

6 STATEMENTS OF ACTIVITIES YEARS ENDED DECEMBER 31, 2012 AND Unrestricted Temporarily Restricted Total REVENUES Grants $ 8,325 $ 217,000 $ 225,325 In-kind donations 91,545-91,545 Contributions 39,695-39,695 Fees for training services/conferences 36,029-36,029 Special event 33,188-33,188 Interest 1,635-1,635 Unrealized gain (loss) on investments Net assets released from restrictions 213,667 (213,667) - TOTAL REVENUES 424,084 3, ,417 EXPENSES Salaries and wages 255, ,232 VCU facilities and administrative charge 120, ,525 Fringe benefits 75,716-75,716 Program training costs 38,819-38,819 Office rent 22,066-22,066 Public relations and promotional materials 16,783-16,783 Telecommunications 12,879-12,879 Special event 12,008-12,008 Audit and accounting 9,830-9,830 Supplies and materials 8,917-8,917 Fund development and counseling 8,399-8,399 Professional fees 7,524 7,524 Travel 6,243-6,243 Depreciation 3,399-3,399 Meetings 2,159-2,159 Conferences, seminars and dues 2,095-2,095 Miscellaneous 1,964-1,964 Staff training 1,272-1,272 Support services 1,135-1,135 Postage 1,093-1,093 TOTAL EXPENSES 608, ,058 INCREASE (DECREASE) IN NET ASSETS (183,974) 3,333 (180,641) Net assets, beginning of year 411,280 97, ,782 NET ASSETS, END OF YEAR $ 227,306 $ 100,835 $ 328,141 See Independent Auditor's Report and Notes to Financial Statements - 4 -

7 Unrestricted 2011 Temporarily Restricted Total $ 119,535 $ 198,500 $ 318,035 92,461-92,461 37,821-37,821 51,041-51,041 22,445-22,445 1,403-1, ,498 (163,498) - 488,252 35, , , , , ,099 53,701-53,701 33,648-33,648 36,196-36,196 8,311-8,311 11,254-11,254 12,768-12,768 12,080-12,080 7,608-7,608 1,718-1,718 7,135 7,135 7,712-7,712 2,824-2,824 1,709-1,709 3,665-3, ,412-1,412 2,732-2, , ,246 (69,994) 35,002 (34,992) 481,274 62, ,774 $ 411,280 $ 97,502 $ 508,782 See Independent Auditor's Report and Notes to Financial Statements - 5 -

8 STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2012 AND CASH FLOWS FROM OPERATING ACTIVITIES Decrease in net assets $ (180,641) $ (34,992) Adjustments to reconcile change in net assets to net cash provided by (used in) operating activities Depreciation 3,399 2,824 Change in operating assets and liabilities (Increase) decrease in accounts receivable (45,347) 26,502 (Increase) decrease in prepaid expenses (23) 2,367 Increase (decrease) in accounts payable (75,836) 88,649 Increase (decrease) in unearned income 6,900 (6,000) NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (291,548) 79,350 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of certificates of deposit - (300,064) Redemption of certificates of deposit 300, ,016 Acquisition of property and equipment (7,398) (6,893) NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 292,666 (6,941) NET INCREASE IN CASH 1,118 72,409 Cash and cash equivalents, beginning of year 340, ,290 CASH AND CASH EQUIVALENTS, END OF YEAR $ 341,817 $ 340,699 See Independent Auditor's Report and Notes to Financial Statements - 6 -

9 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2012 AND 2011 NOTE A - DESCRIPTION OF ORGANIZATION Virginia Mentoring Partnership (the Partnership ) is a nonstock, not-for-profit corporation. The Partnership is engaged principally in providing mentoring relationships and economic opportunities for disadvantaged and atrisk youth in the Commonwealth of Virginia. The Partnership is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code and would be taxed only to the extent it has taxable trade or business income unrelated to its exempt purpose. Contributions to the Partnership qualify for charitable tax deductions as described in the Code. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The financial statements of the Partnership have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The Partnership reports information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. The Partnership has no permanently restricted net assets. Net Assets The Partnership classifies resources for accounting and reporting purposes into three classes of net assets based on the existence or absence of donor-imposed restrictions. A description of the three classes follows: Permanently restricted - Net assets subject to donor-imposed stipulations that they be maintained permanently by the Partnership. Temporarily restricted - Net assets subject to donor-imposed stipulations that may or will be met either by actions of the Partnership and/or the passage of time. Unrestricted - Net assets that are not subject to donor-imposed stipulations. Since the mentoring program constitutes the Partnership's sole activity, all contributions to the Partnership for the mentoring program are classified and reported as unrestricted contributions unless further restricted by the donor. Contributions Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted net assets depending on the absence or existence and nature of any donor restrictions. Contributions, including unconditional pledges, are recognized when donors commitments are received. Conditional pledges become unconditional and are recognized when the conditions are substantially met. Unconditional pledges are recognized at the estimated present value, net of an allowance for uncollectible amounts. Contributions are classified as unrestricted assets unless the donor has restricted the contribution to a specific purpose

10 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2012 AND 2011 NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued The Partnership uses the allowance method to determine uncollectible pledges receivable. The allowance is based on prior experience and management s analysis of specific promises made. The Partnership s management believes that all receivables are collectible as of December 31, 2012 and 2011; therefore, no allowance is necessary. Use of Estimates 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 disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The Partnership considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. Certificates of Deposit The Partnership held certificates of deposit bearing interest at rates ranging from 0.40% to 0.60% at December 31, 2011 that matured during the year ended December 31, Property and Equipment Purchases of property and equipment with estimated useful lives of more than one year are recorded at cost. Depreciation is computed using the accelerated and straight-line methods over the useful lives ranging from 3 to 7 years. Fair Value Measurements The Partnership applies Financial Accounting Standards Board (FASB) ASC 820, Fair Value Measurements and Disclosures. FASB ASC 820 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements. FASB ASC 820 uses the following prioritized input levels to measure fair value. The input levels used for valuing investments are not necessarily an indication of risk. Level 1 - Quoted prices in active markets for identical assets or liabilities at the measurement date Level 2 - Directly or indirectly observable valuations in the marketplace at the measurement date other than Level 1 inputs Level 3 - Valuations unobservable in the marketplace at the measurement date The Partnership measured the fair value of certificates of deposit using level 1 inputs

11 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2012 AND 2011 NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Income Tax Uncertainties The Partnership applies FASB guidance related to accounting for uncertainty in income taxes, which clarifies the accounting for income taxes by prescribing the minimum recognition threshold that a tax position is required to meet before being recognized in the financial statements. The standard also provides guidance on penalties and interest, classification, and disclosure. The Partnership has not identified any uncertain tax positions. The Partnership s income tax returns for years since 2009 remain open for examination by tax authorities. NOTE C - FUNCTIONAL EXPENSES The costs of providing the sole program and activities of the Partnership have been summarized on a functional basis in the table below. Certain costs have been allocated among the programs and supporting services Program services: Mentoring activities $ 452,096 $ 412,654 Support services: Management and general 68,771 67,772 Fund development 87,191 77,820 Total support services 155, ,592 $ 608,058 $ 558,246 NOTE D - IN-KIND DONATIONS The Partnership applies to Virginia Commonwealth University (VCU) annually for a grant award that provides for VCU to act as the fiscal agent for the Partnership. Monthly, VCU bills the Partnership for the expenditures made on its behalf. Part of this monthly billing is a charge for indirect costs (facilities/administrative costs). VCU presently bills the Partnership 8% of direct costs for this charge versus the standard 30%. The difference for the year 2012 ($91,545) and the year 2011 ($89,961) has been recorded as an in-kind donation with an offsetting VCU facilities and administrative charge under expenses in the accompanying statements of activities. In addition, the Partnership s volunteer treasurer provided professional accounting services with a value of $2,500 during This was recorded as an in-kind donation with an offsetting audit and accounting services charge under expenses in the accompanying statement of activities

12 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2012 AND 2011 NOTE E - RESTRICTED NET ASSETS Temporarily restricted net assets as of December 31, 2012 and 2011 are available for the following programs: The Robins Foundation training and technical assistance $ 22,917 $ - Altria training and technical assistance 16,667 18,750 Dominion Foundation training and technical assistance 16,667 4,584 Capital One Services Capital One Mentorships 15,417 15,417 Genworth Foundation Middle School Renaissance 13,750 10,000 Mary Morton Parsons Foundation mentor center 10,417 - United Way Services POST Training 5,000 5,000 The Community Foundation training and technical assistance - 18,750 Jackson Foundation training and technical assistance - 16,667 Charlottesville Area Community Foundation mentor training - 5,000 Anonymous training and technical assistance - 3,334 $ 100,835 $ 97,502 NOTE F - NET ASSETS RELEASED FROM RESTRICTIONS The following net assets were released from donor restrictions by incurring expenses satisfying the restricted purpose during the years ended December 31, 2012 and 2011: Claude Moore Charitable Foundation $ 75,000 $ 75,000 Altria 27,083 25,000 Capital One Services 25,000 25,000 The Community Foundation 18,750 6,250 Jackson Foundation 16,667 3,333 Mary Morton Parsons Foundation 14,583 - Genworth Foundation 11,250 5,000 Anonymous 8,334 1,666 Dominion Foundation 7,917 4,166 Charlottesville Area Community Foundation 5,000 1,000 The Robins Foundation 2,083 7,500 Amazing Raise 2,000 - United Way Services - 5,000 Gottwald Foundation - 4,583 $ 213,667 $ 163,

13 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2012 AND 2011 NOTE G - SUBSEQUENT EVENT In the preparation of its financial statements, the Partnership considered subsequent events through April 18, 2013, which was the date the financial statements were available to be issued