De Marillac Academy. Financial Statements

Transcription

1 De Marillac Academy Financial Statements

2 TABLE OF CONTENTS Page No. Independent Auditor's Report 1-2 Statement of Financial Position 3 Statement of Activities 4 Statement of Cash Flows

3 INDEPENDENT AUDITOR'S REPORT To the Board of Directors De Marillac Academy San Francisco, California We have audited the accompanying financial statements of De Marillac Academy (a not-for-profit organization), which comprise the statement of financial position as of and the related statements of activities, 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 consolidated 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 De Marillac Academy as of, and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. Report on Summarized Comparative Information We have previously audited the Academy's 2014 financial statements, and we expressed an unqualified audit opinion on those audited financial statements in our report dated April 20, In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2014 is consistent, in all material respects, with the 2014 audited financial statements from which it has been derived. November 23, 2015 Armanino LLP San Ramon, California - 2 -

5 Statement of Financial Position (With Comparative Totals for 2014) ASSETS Cash and cash equivalents $ 227,089 $ 260,545 Investments 1,841,161 1,071,600 Contributions receivable, net 1,066,122 1,112,521 Other receivables 19,504 20,286 Prepaid expenses 934,193 1,027,515 Property and equipment, net 356, ,164 Total assets $ 4,444,469 $ 3,870,631 LIABILITIES AND NET ASSETS Liabilities Accounts payable $ 82,715 $ 65,638 Accrued liabilities 47, ,293 Total liabilities 130, ,931 Net assets Unrestricted 901, ,302 Temporarily restricted 2,578,503 2,394,292 Permanently restricted 833, ,106 Total net assets 4,313,852 3,703,700 Total liabilities and net assets $ 4,444,469 $ 3,870,631 The accompanying notes are an integral part of these financial statements

6 Statement of Activities For the Years Ended (With Comparative Totals for 2014) Total Temporarily Permanently Unrestricted Restricted Restricted Revenue, gains and other support Contributions $ 1,428,309 $ 1,685,601 $ - $ 3,113,910 $ 2,185,529 Program service fees 58, ,543 66,729 Interest and dividend income 26,920-19,359 46,279 30,780 Net realized and unrealized gains on investments 6,317 3,317-9, ,750 Fundraising events, net of expenses of $162, , , ,477 Other income 52, ,640 33,932 Net assets released from restrictions 1,504,707 (1,504,707) Total revenue, gains and other support 3,557, ,211 19,359 3,761,456 2,991,197 Expenses Program services Instruction 2,180, ,180,784 2,078,646 Supporting services General and administrative 430, , ,566 Fundraising 539, , ,273 Total expenses 3,151, ,151,304 3,059,485 Change in net assets 406, ,211 19, ,152 (68,288) Net assets, beginning of year 495,302 2,394, ,106 3,703,700 3,771,988 Net assets, end of year $ 901,884 $ 2,578,503 $ 833,465 $ 4,313,852 $ 3,703,700 The accompanying notes are an integral part of these financial statements

7 Statement of Cash Flows For the Year Ended (With Comparative Totals for 2014) Cash flows from operating activities Change in net assets $ 610,152 $ (68,288) Adjustments to reconcile change in net assets to net cash provided by operating activities Depreciation and amortization 51,370 74,966 Net realized and unrealized gains on investments (9,634) (121,750) Change in discount for contributions receivable 5,991 8,170 Changes in operating assets and liabilities Contributions receivable 40,408 35,153 Other receivables 782 2,151 Prepaid expenses 93,322 80,112 Accounts payable 17,077 56,727 Accrued liabilities (53,391) (1,615) Net cash provided by operating activities 756,077 65,626 Cash flows from investing activities Purchases of property and equipment (29,606) (35,639) Purchases of investments (1,249,591) (414,637) Proceeds from sales of investments 489, ,472 Net cash provided by (used in) investing activities (789,533) 30,196 Net increase (decrease) in cash and cash equivalents (33,456) 95,822 Cash and cash equivalents at beginning of year 260, ,723 Cash and cash equivalents at end of year $ 227,089 $ 260,545 The accompanying notes are an integral part of these financial statements

8 1. Nature of Organization and History De Marillac Academy (the "Academy"), formerly De Marillac Middle Academy of San Francisco, was organized to offer a superior Catholic educational opportunity primarily to fourth, fifth, sixth, seventh, and eighth grade students in the Lasallian and Vincentian traditions. Specifically, the Academy endeavors to raise the academic performance of the enrolled students so that each student is performing at or above the respective grade level. Ultimately, the Academy aims to enable each child to be competitive in gaining admission to an excellent high school and college of his/her choice. The Academy is located in the Tenderloin district of San Francisco and is dedicated to responding to the educational and religious needs of the school age underserved children according to its mission. The Academy was incorporated on May 12, 2000, as a California nonprofit religious corporation and has two corporate members: the Daughters of Charity Ministry Services Corporation ("DOCMSC") and the Lasallian Education Corporation ("LEC"), both of which are California nonprofit religious corporations. Membership was issued without consideration or dues. Should DOCMSC cease to exist, the Daughters of Charity of St. Vincent De Paul, Province of the West, a California nonprofit religious corporation, shall be substituted as the corporate member; if LEC should cease to exist, De La Salle Institute ("DLSI"), a California nonprofit religious corporation, shall be substituted as the corporate member. The Academy is accredited with the Western Association of Schools and Colleges (WASC). 2. Summary of Significant Accounting Policies Basis of presentation The financial statements of the Academy have been prepared on the accrual basis of accounting and presented on the basis of unrestricted, temporarily restricted and permanently restricted net assets, in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Unrestricted net assets - Unrestricted net assets represent unrestricted resources available to support the Academy's operations and temporarily restricted resources that have become available for use by the Academy in accordance with the intentions of the donors. Temporarily restricted net assets - Temporarily restricted net assets represent contributions whose use by the Academy is limited in accordance with temporary donor-imposed stipulations. These stipulations may expire with time or may be satisfied by the actions of the Academy according to the intention of the donor. Temporarily restricted net assets also include the portion of donor-restricted endowment funds that are not classified as permanently restricted, until such funds are appropriated for expenditure by the Academy

9 2. Summary of Significant Accounting Policies (continued) Basis of presentation (continued) Permanently restricted net assets - 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 Academy as designated by the donors. Cash and cash equivalents The Academy maintains cash balances in domestic financial institutions. Periodically, such balances may be in excess of federally insured limits. Cash and cash equivalents consist of cash on hand and highly liquid investments with original or remaining maturities of three months or less at the time of purchase. Contributions and promises to give Contributions, including unconditional promises to give, are recognized as revenue in the period the promise is received. Conditional promises to give are not recognized until they become unconditional, that is when the conditions on which they depend are substantially met. The Academy records contributions receivable, net of allowances for uncollectible amounts, when there is sufficient evidence in the form of verifiable documentation that an unconditional promise was made and received. Contributions that are promised in one year but are not expected to be collected until after the end of that year are discounted at an appropriate discount rate commensurate with the risks involved. Amortization of any such discounts is recorded as additional contribution revenue in accordance with donor-imposed restrictions, if any, on the contributions. An allowance for doubtful contributions receivable is provided based upon management's judgment including such factors as prior collection history, type of contribution, and current aging of contributions receivable. Contributions of assets other than cash are recorded based on the estimated fair value on the date the contribution is received. Investments Investments in equity and debt securities are valued at their fair values as determined primarily by quoted market prices. Investments received by donation are recorded at fair value at the date of donation. Net realized and unrealized gains or losses are classified as increases or decreases in unrestricted net assets, unless their use is temporarily or permanently restricted by the donor

10 2. Summary of Significant Accounting Policies (continued) Investments (continued) Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the Academy's account balances and the amounts reported in the statement of financial position. Prepaid expenses Prepaid expenses consist of prepaid rent totaling $934,193 as of. The amortization of prepaid rent has been included in the statement of functional expenses. Rent expense for the year ended was $82,334. Fair value measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Academy determines the fair values of its assets and liabilities based on a fair value hierarchy that includes three levels of inputs that may be used to measure fair value (Level 1, Level 2 and Level 3). Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Academy has the ability to access at the measurement date. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 inputs are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs, Level 3, reflect the Academy's own assumptions about the assumptions market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the Academy's own data. The following methods and assumptions were used to estimate the fair value of financial assets and liabilities: (a) Investments (Level 1). Investment securities traded on security exchanges are valued at closing market prices on the date closest to June 30; - 8 -

11 2. Summary of Significant Accounting Policies (continued) Fair value measurements (continued) (b) Contributions receivable (Level 3). Contributions receivable are valued based on unobservable inputs that are developed based on the best information available in the circumstances. Contributions receivable are not measured at fair value on a recurring basis subsequent to initial recognition. Property and equipment The Academy capitalizes property and equipment with a cost or fair value in excess of $1,000 and an estimated useful life in excess of one year. Property and equipment is carried at cost or, if donated, at the estimated fair value on the date of the gift. Minor repairs and maintenance are charged against earnings as incurred. Major repairs and maintenance that extend the useful life of the respective asset are capitalized. Whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recovered, the Academy, using its best estimates and projections, reviews for impairment the carrying value of long-lived identifiable assets to be held and used in the future. The Academy will record impairment losses when determined. Depreciation is provided using the straight-line method over the following estimated useful lives: Furniture, fixtures and equipment Leasehold improvements 3-5 years years Program service fees The Academy does not charge standard tuition for its educational services. Since virtually all the students come from low income families, only nominal program service fees, if any, are billed monthly to parents or guardians of the students. Contributed goods and services Contributed materials and equipment are reflected as contributions in the accompanying statements at their estimated fair values at date of receipt. Contributed services are reflected in the financial statements at the fair value of the services received. Contributions of services are recognized if the services received (a) create or enhance non-financial assets or (b) require specialized skills that are provided by individuals possessing those skills and would typically need to be purchased if not provided by donation. No material contributed services meeting the criteria described above were received during the year ended

12 2. Summary of Significant Accounting Policies (continued) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires Academy management to make estimates and assumptions that affect certain reported amounts and disclosures. Uses of estimates include, but are not limited to, the allowance for doubtful accounts and contributions receivable and depreciation. Actual results could differ from those estimates. Functional expense allocation The costs of providing program and other activities have been summarized on a functional basis in the statement of activities. Expenses, such as payroll and benefits, have been allocated among program services and supporting services based upon the employees' time spent by function. Facility related costs such as rent, depreciation, interest, and maintenance have been allocated based on estimated square footage used by various departments. Income taxes The Academy is exempt from federal and state income taxes under Internal Revenue Code Section 501(c)(3) and Section 23701(d) of the California Tax Code as an educational institution that is an integral part of the Catholic church. The Academy has evaluated its current tax position and has concluded that as of, the Academy 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 U.S. GAAP. Accordingly, such information should be read in conjunction with the Academy's financial statements for the year ended June 30, 2014, from which the summarized information was derived. Risks and uncertainties The Academy has significant contributions receivable due primarily from other non-profits, which are concentrated in the San Francisco Bay Area. The Academy invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the Academy account balances and the amounts reported in the statements of financial position

13 2. Summary of Significant Accounting Policies (continued) Risks and uncertainties (continued) The Academy invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the Academy account balances and the amounts reported in the statements of financial position. 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 a discount rate that approximates 3%. Contributions receivable were due as follows at : Due in less than one year $1,038,301 Due in one to five years 30,000 Total 1,068,301 Less discount to present value (2,179) 4. Fair Value Measurements $1,066,122 The following are the major categories of assets measured at fair value on a recurring basis as of, using quoted prices in active markets for identical assets (Level 1); significant other observable inputs (Level 2); and significant unobservable inputs (Level 3): Level 1: Quoted Level 2: Prices in Significant Level 3: Active Markets Other Significant For Identical Observable Unobservable Total at Assets Inputs Inputs Stocks, options and Exchange Traded Funds $1,818,182 $ - $ - $1,818,182 Fixed Rate Cap Securities 22, ,979 $1,841,161 $ - $ - $1,841,161

14 5. Property and Equipment Property and equipment at consisted of the following: Furniture and equipment $320,158 Leasehold improvements 353,269 Less accumulated depreciation/amortization (317,027) $356,400 Depreciation expense for the year ended was $51,370 for the year ended. 6. Lease of Academy Operating Facilities The Academy presently occupies approximately 13,440 square feet of space under a twenty-five year lease agreement entered into with the Roman Catholic Welfare Corporation of San Francisco, a California nonprofit religious corporation (the "Lessor") effective November 1, In 2001, the Academy received restricted contributions from two of its donors to enable construction of substantial leasehold improvements amounting to $2,038,933. These leasehold improvements were made in lieu of the traditional base rent and related CPI increases. In addition, the Academy is responsible for maintenance, insurance and certain facility operation costs. Title to all alterations, additions, and improvement to the leased property vests with the Lessor. This vesting remains with the Lessor, regardless of which party terminates the lease and regardless of whether the lease expires on its own terms, or is terminated early. In September 2010, the tenth year of the lease, the Academy had the opportunity to negotiate the extension of the lease for an additional twenty-five years. There is, however, no express or implied option obligation for the Academy or the Lessor to extend the lease; this right to negotiate is not a lease extension option. If the Academy spends defined amounts for capital improvements in excess of the Lessee annual allotment of $20,000 and adjusted annually for changes in the consumer price index, as defined, the term of the lease will be extended by one year for each year of such defined excess payments, up to a maximum of twenty-five years. The Academy has elected to make capital improvements in excess of the agreed upon allotment every year in order to extend the lease on an annual basis. It is the Academy's intent to continue to extend the lease on an annual basis through the capital improvement clause. The lease agreement restricts the Academy from assigning or subletting any portion of the leased premises. Both parties granted to each other revocable licenses which allow the Academy to use the cafeteria and dining area, the basement theater and courtyard, subject to certain restrictions. The Lessor has a license to use any of the classrooms on the leased premises when not being actively used by the Academy

15 6. Lease of Academy Operating Facilities (continued) The original alterations, additions, and improvements to the leased property were contributed through the donations of the two corporate members. These amounts have been classified as prepaid rent and are being amortized as an expense over the 25 year original term of the lease. 7. Operating Lease On May 1, 2008, the Academy entered into a lease for the Marian Center with The Roman Catholic Archbishop of San Francisco. In August 2008, the Academy occupied the newly renovated Marian Center which provides space for the reception area and offices for key employees. An amendment to the lease was made dated January 14, The parties agreed that instead of the CPI increase, there will be a base rent from July 2008 up to the remaining lease term that will terminate on April 30, In December 2011, the Academy entered into a second amendment to expand the lease area to include the cafeteria and dining area southeast of the Building (Boeddeker Hall) and the basement theater for $3,000 per month effective January 2012 up to April 30, 2018 with a 3% increase on each January 1 during the term. The lease commitment is as follows for years ending June 30: Marian Center Basement Total 2016 $16,089 $ 39,928 $ 56, ,135 41,126 58, ,176 35,196 50,372 Total $48,400 $116,250 $164,650 For the year ended, the total rent paid to St. Boniface was $58, Temporarily Restricted Net Assets Temporarily restricted net assets are available for the following purposes at. Gift for leasehold improvements $ 934,132 Unexpended endowment earnings 82,409 Operating expenses - time restricted 1,128,132 General support 433,830 $2,578,

16 9. Net Assets Released from Restrictions At, net assets released from donor restrictions by incurring expenses satisfying the restricted purposes specified by the donors are as follows: Gift for leasehold improvements $ 82,295 Operating expenses - time restrictions met 1,377,412 Endowment earnings appropriated for expenditure 45,000 $1,504, Permanently Restricted Net Assets Permanently restricted net assets supports the following programs at : Meals and nutrition $722,336 General support 111,129 $833, Endowment The Academy's endowment consists of two individual funds. The Academy's endowment includes both donor-restricted and unexpended earnings on donor-restricted contributions pending appropriation for expenditure by the Academy's Board of Trustees (the "Board"). As required by U.S. GAAP, net assets associated with endowment funds, including funds designated by the Board of Trustees to function as endowments, if any, are classified and reported based on the existence or absence of donor-imposed restrictions. UPMIFA interpretation and compliance On September 30, 2008, the State of California adopted the Uniform Prudent Management of Institutional Funds Act ("UPMIFA"), effective January 1, The Academy's Investment Policy provides for prudent management, spending, and annual reporting of endowment fund performance. Appropriations from the endowment are made in accordance with a Board-approved spending policy. The purpose of a spending policy is to provide annual distributions to support Academy operations while still preserving the spending power of the endowment for future generations. All appropriations are subject to the intent of the donor as expressed in the gift instrument. Unless stated otherwise in the gift instrument, the assets in an endowment fund are donor-restricted assets until appropriated for expenditure by the Board of Trustees

17 11. Endowment (continued) UPMIFA interpretation and compliance (continued) The Academy classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment when the applicable donor gift instrument specifies that appreciated earnings be added to the fund. The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the Board in a manner consistent with the standard of prudence prescribed by UPMIFA. In accordance with UPMIFA, the Board considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds: (1) The investment objectives of the fund (2) The purposes of the donor-restricted endowment fund and its consistency with Academy operations and initiatives (3) General economic conditions (4) The possible effect of inflation and deflation (5) The expected total return from income and appreciation of investments (6) Other resources of the Academy (7) The investment policy of the Academy Return objectives and risk parameters The Academy has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasing power of the endowment assets. Endowment assets include those assets of donor-restricted funds that the Academy must hold in perpetuity or for a donor-specified period(s). Under this policy, as approved by the Board of Trustees, the endowment assets are invested in a manner that is intended to grow the corpus in excess of Academy's maximum appropriation of 7% of the endowment investment balance. Actual returns in any given year may vary from this amount. Spending policy and how the investment objectives relate to spending policy Each year, the Board of Trustees determines a prudent appropriation not to exceed 7% of the endowment fund's net fair market value averaged over a period of not less than three years. In establishing this policy, the Academy considered the long-term expected return on its endowment

18 11. Endowment (continued) Spending policy and how the investment objectives relate to spending policy (continued) Accordingly, over the long term, the Academy expects the current spending policy to allow its endowment to grow in excess of the Academy's projected wage inflation rate. This is consistent with the Academy's objective to maintain the purchasing power of the endowment assets held in perpetuity or for a specified term as well as to provide additional real growth through new gifts and investment returns. Strategies employed for achieving objectives To satisfy its long-term rate-of-return objectives, the Academy relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). The Academy targets a diversified asset allocation that places a greater emphasis on equity-based investments to achieve its long-term return objectives within prudent risk constraints. From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the level that the donor or UPMIFA requires the Academy to retain as a fund of perpetual duration. In accordance with U.S. GAAP, deficiencies of this nature are reported in unrestricted net assets. There were no deficiencies as of. Endowment net asset composition by type of fund as of consisted of the following: Temporarily Permanently Restricted Restricted Total Donor-restricted endowment funds $ 82,409 $833,465 $915,

19 11. Endowment (continued) Changes in endowment net assets for the year ended : Temporarily Permanently Restricted Restricted Total Endowment net assets, beginning of year $124,092 $814,106 $938,198 Investment return Net appreciation (realized and unrealized) 3,317 19,359 22,676 Total investment return 3,317 19,359 22,676 Appropriation of endowment assets for expenditure (45,000) - (45,000) Endowment net assets, end of year $ 82,409 $833,465 $915, Retirement Plan The Academy participated in the Christian Brothers Employee Retirement Plan (the "Plan"), a multiemployer, non-contributing, defined benefit pension plan covering all full-time employees. The Plan provided for benefits to be paid to eligible employees at retirement equal to 2.45% of future service compensation during each of the employees' years of creditable future service. Participants became fully vested after four years and nine months of service. The Academy's funding requirement was to contribute monthly the Plan costs as determined by the Plan's actuary that were calculated at 6.5% of eligible compensation for the year ended. Contributions by the employer to the Plan were $97,595 for the year ended. Based on information as of, the year-end of the Plan, employer contributions to the Plan do not represent more than 5% of total contributions received by the Plan

20 12. Retirement Plan (continued) The Plan is not required to file Form 5500, therefore certain information is not required to be made available publicly. If the employer withdraws its participation in the Plan, under the terms of the Plan there currently is not a withdrawal liability. In addition, to the extent that the Plan is underfunded, the employer's future contributions to the Plan may increase to cover retirement benefits of employees of other organizations participating in the Plan. The following information is based on the financial statements of the Plan as of June 30, 2014: Total plan assets $1,196,089,606 Actuarial present value of accumulated plan benefits $1,109,358,039 Total contributions received by the Plan $ 56,785,309 Indicated level of funding 75.56% The Academy also participates in the Christian Brothers 403(b) Retirement Savings Plan available to all full time employees. On, the Academy withdrew from the Plan. 13. Related Parties For the year ended, the Academy received contributions and unconditional pledges totaling $987,601 from the Daughters of Charity Foundation. 14. Concentration of Risk The Daughters of Charity Foundation, a related party to one of the Academy's two corporate members contributed $987,601 which accounts for 27% of total contributions and fund raising for the year ended. 15. Subsequent Events On October 15, 2015, the Academy entered into a new 403(b) plan called the De Marillac Academy 403(b) Retirement Plan ("The Plan"), in which the Academy is the plan sponsor. The Plan Administrator is Principal Financial Group. The Academy has evaluated subsequent events through November 23, 2015, the date the financial statements were available to be issued. No other subsequent events have occurred that would have a material impact on the presentation of the Academy's financial statements