Girl Scouts of West Central Florida, Inc.

Transcription

1 Girl Scouts of West Central Florida, Inc. FINANCIAL STATEMENTS For The Year Ended September 30, 2017

2 Girl Scouts of West Central Florida, Inc. Table of Contents September 30, 2017 TAB: REPORT Independent Auditors Report 1 TAB: FINANCIAL STATEMENTS Statement of Financial Position as of September 30, Statement of Activities for the Year Ended September 30, Statement of Cash Flows for the Year Ended September 30, SUPPLEMENTARY INFORMATION Schedule of Functional Expenses 19

3 REPORT

4 INDEPENDENT AUDITORS REPORT To the Board of Directors Girl Scouts of West Central Florida, Inc. Tampa, Florida We have audited the accompanying financial statements of Girl Scouts of West Central Florida, Inc. ( the Council ) (a nonprofit organization), which comprise the statement of financial position as of September 30, 2017, 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. Auditors 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 auditors 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

5 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Council as of September 30, 2017, 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. Other Matter Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The schedule of functional expenses on page 18 is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Report on Summarized Comparative Information We have previously audited the Council s 2016 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated December 21, In our opinion, the summarized comparative information presented herein as of and for the year ended September 30, 2016, is consistent, in all material respects, with the audited financial statements from which it has been derived. CARR, RIGGS & INGRAM, LLC Clearwater, Florida December 28,

6 FINANCIAL STATEMENTS

7 Girl Scouts of West Central Florida, Inc. Statement of Financial Position As of September 30, 2017 September 30, Cash and cash equivalents $ 414,533 $ 570,018 Inventory 223, ,267 Accounts receivable and other receivables 157, ,442 Prepaid expenses and other assets 137, ,831 Total current assets 933,295 1,033,558 Land, building, and equipment, net 4,312,696 4,262,418 Assets held for sale 56,692 86,374 Long-term investments 5,950,952 5,700,128 Total assets $ 11,253,635 $ 11,082,478 LIABILITIES Accounts payable and accrued liabilities $ 548,800 $ 538,486 Custodial funds 3,475 9,802 Deferred income 113, ,984 Note payable 94,886 - Total liabilities 761, ,272 NET ASSETS LIABILITIES AND NET ASSETS Unrestricted 10,242,642 10,105,340 Temporarily restricted 56,608 55,645 Permanently restricted 193, ,221 Total net assets 10,492,606 10,413,206 Total liabilities and net assets $ 11,253,635 $ 11,082,478 The accompanying notes are an integral part of these financial statements - 3 -

8 Girl Scouts of West Central Florida, Inc. Statement of Activities For the Year Ended September 30, 2017 (With Comparative Totals for the Year Ended September 30, 2016) Years ending September 30, (Summarized) Unrestricted Temporarily Restricted Permanently Restricted Total Total REVENUE Public support Individual giving $ 172,893 $ - $ 3,013 $ 175,906 $ 163,275 United Way allocations 343, , ,893 Government grants 587, , ,620 Corporations and foundation giving/grants 101, , ,204 Legacies and bequests 18, ,112 18,075 Total public support 1,223,457-3,013 1,226,470 1,280,067 Special events Gross revenue 350, , ,425 Cost of special events (119,768) - - (119,768) (99,462) Total special events income 230, , ,963 Program related revenue Product sales Gross revenue 8,982, ,982,143 8,465,914 Cost of sales (3,999,654) - - (3,999,654) (3,646,035) Net product sales income 4,982, ,982,489 4,819,879 Other program related revenue Program event fees 657, , ,481 Total other program related revenue 657, , ,481 Merchandise sales Gross revenue 655, , ,927 Direct costs (387,392) - - (387,392) (390,928) Net merchandise sales 268, , ,999 Total program related revenue 5,908, ,908,263 5,641,359 Other revenue, gains, and losses: Rental income 54, ,235 83,309 Interest and dividend income 150, , , ,732 Other income 117, ,753 60,151 Total other revenue, gains, and losses 322, , , ,192 Total operating revenue 7,684, ,093 7,690,700 7,345,581 Net assets released from restrictions 738 (738) Total revenue 7,685,109 (502) 6,093 7,690,700 7,345,581 EXPENSES Program services 6,184, ,184,269 6,174,331 Supporting services Management and general 1,100, ,100, ,724 Fundraising 400, , ,752 Total supporting services 1,501, ,501,101 1,325,476 Total expenses 7,685, ,685,370 7,499,807 Change in operating net assets (261) (502) 6,093 5,330 (154,226) Nonoperating revenue, gains, and losses: Gain/(loss) on investments, net of fees 158,697 1,465 16, , ,468 Loss on sale of assets (21,134) - - (21,134) (4,210) Derecognition of permanently restricted endowment - - (81,043) (81,043) - Total nonoperating revenue, gains, and losses 137,563 1,465 (64,958) 74, ,258 Change in net assets 137, (58,865) 79,400 62,032 Net assets, beginning of year 10,105,340 55, ,221 10,413,206 10,351,174 Net assets, end of year $ 10,242,642 $ 56,608 $ 193,356 $ 10,492,606 $ 10,413,206 The accompanying notes are an integral part of these financial statements - 4 -

9 Girl Scouts of West Central Florida, Inc. Statement of Cash Flows For the Year Ended September 30, 2017 Years ending September 30, Reconciliation of net income to cash and cash equivalents provided/(used) by operating activities: Increase in net assets $ 79,400 $ 62,032 Adjustments to reconcile increase in net assets to net cash and cash equivalents provided by operating activities: Depreciation 322, ,808 Loss on sale of assets 23,684 4,210 Unrealized gain on investments (126,703) (246,052) Derecognition of permantantly restricted endowment 81,043 Change in assets and liabilities: Accounts payable and other liabilities (3,129) 41,655 Inventory (9,495) (11,890) Accounts receivable (46,811) 156,845 Prepaids and other assets 1,084 (64,103) Net cash and cash equivalents provided by operating activities 321, ,505 Investing activities: Proceeds from sale of property and equipment 2,550 14,858 Purchase of building and equipment (260,767) (80,506) Purchase of investments (5,974,985) (4,272,510) Proceeds from sale of investments 5,769,821 1,639,301 Net cash and cash equivalents used by investing activities (463,381) (2,698,857) Financing activities: Payments on note payable (13,279) - Net cash and cash equivalents used by financing activities (13,279) - Net increase/(decrease) in cash and cash equivalents (155,485) (2,442,352) Cash and cash equivalents, beginning of year 570,018 3,012,370 Cash and cash equivalents, end of year $ 414,533 $ 570,018 Supplemental disclosures of cash flow information: Noncash acquisition of fixed assets financed with debt $ 108,165 $ - Cash paid during the year for interest $ 2,560 $ - The accompanying notes are an integral part of these financial statements - 5 -

10 Girl Scouts of West Central Florida. Inc. NOTE 1: BACKGROUND INFORMATION Girl Scouts of West Central Florida, Inc. (the Council ) is a nonprofit organization incorporated in Florida on October 1, 2007 for the purpose of administering Girl Scouting in Hillsborough, Polk, Pinellas, Pasco, Citrus, Marion, Sumter and Hernando counties. The Council administers Girl Scouting throughout its jurisdiction in accordance with the bylaws and policies of the Council and the charter requirements of the Girl Scouts of the United States of America. NOTE 2: SIGNIFICANT ACCOUNTING POLICIES 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. The accompanying financial statements have been prepared in accordance with Financial Accounting Standards Accounting Standards Codification ( FASB ASC ) FASB ASC and FASB ASC requires the Council to distinguish between contributions that increase permanently restricted net assets, temporarily restricted net assets, and unrestricted net assets. It also requires recognition of contributed services meeting certain criteria at fair values. FASB ASC establishes standards for general purpose external financial statements of notfor-profit organizations and requires a statement of financial position, a statement of activities, and a statement of cash flows. Unrestricted net assets are not subject to donor-imposed stipulations. These net assets are further broken down as board designated, board designated special projects, and board designated land, building, and equipment net assets. Land, building, and equipment net assets represent resources designated by the Board of Directors for plant acquisitions and funds expended for land, building, and equipment. Temporarily restricted net assets are subject to donor-imposed stipulations that may or will be met, either by actions of the Council and/or the passage of time. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statements of activities as net assets released from restrictions. Permanently restricted endowment net assets represent assets that are subject to restrictions of gift instruments requiring in perpetuity that the principal be invested and the income only be used for operations

11 NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Continued) Girl Scouts of West Central Florida. Inc. The accompanying financial statements have been prepared on the accrual basis of accounting as required by accounting principles generally accepted in the United States of America. Cash equivalents consist of all highly liquid debt instruments purchased with an original maturity of three months or less. The Council provides for all receivables at an estimated net realizable value. The Council has reviewed the balance of Accounts Receivable as of September 30, 2017 and Based on the nature of accounts receivable and previous experience relating to uncollectible accounts, no allowance at September 30, 2017 and 2016 is deemed necessary. Approximately $146,000 and $92,000 of the accounts receivable balance at September 30, 2017 and 2016, respectively, relates to grant receivables. Investments are recorded at fair values in accordance with FASB ASC 820. The Council intends on maintaining these investments over a long period of time. Inventories, which consist of official Girl Scout uniforms, books, and supplies, are stated at the lower of cost or market. Cost is determined by the average cost method. Property and equipment are recorded at cost. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets, ranging generally from 3 to 30 years. It is the Council's policy to capitalize expenditures for property and equipment having a unit cost in excess of $1,500. Capital expenditures that do not enhance or extend the useful lives of property and equipment are recorded as repairs and maintenance expense. In 2017, the Board listed the Scoutcrest property for sale. The book value of the assets is $60,521. As of the date of these financials, the property had not been sold and will be shown as an asset held for sale as of September 30, Donated materials are recorded as contributions at their estimated values when the contribution is received. Certain indirect expenses are allocated to each program on the basis of employee time, the use of space, the consumption of supplies, and postage, as applicable. Direct expenses incurred for and benefiting a single function is recorded directly into the appropriate net asset category. Advertising is expensed as incurred. Advertising totaled approximately $50,000 and $70,000 for the years ending September 30, 2017 and

12 NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Continued) Girl Scouts of West Central Florida. Inc. No provision for income taxes has been made since the Council is exempt from federal and state income taxes under Section 501(c)(3) of the Internal Revenue Code and Chapter of the Florida Statutes, respectively. Management is not aware of any activities that would jeopardize the Council s tax exempt status, nor is it aware of any tax positions it has taken that are subject to a significant degree of uncertainty. The accompanying financial statements do not include financial data for individual Girl Scout troops and other related volunteer-led groups such as communities, committees and volunteer-led camps. Bank accounts held by such groups are under the federal identification number but not under the control of the Council. The Council has no signature authority over nor does it access any troop accounts in accordance with the Council s established policies and procedures. The Council estimates the balances in these accounts total approximately $1,000,000 as of each year ending September 30, 2017 and The financial statements include certain prior-year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the Council s financial statements for the year ended September 30, 2016, from which the summarized information was derived. NOTE 3: CONCENTRATION OF CREDIT RISK The Council maintains cash and cash equivalents with commercial banks and other major financial institutions. Cash balances at any given financial institution may exceed the Federal Deposit Insurance Corporation ( FDIC ) limits from time to time. Financial instruments that potentially subject the Council to concentrations of credit risk are investments held on a long-term basis. The Council attempts to limit its credit risk by adopting formalized investment policies and engaging outside investment professionals to actively manage the Council s long-term funds

13 Girl Scouts of West Central Florida. Inc. NOTE 4: BUSINESS RISK The Council received approximately 60% and 61% of its operating funds from the program-related sale of cookie products during 2017 and 2016, respectively. Due to licensing restrictions imposed by Girl Scouts of the United States of America, only two national suppliers are authorized to produce Girl Scout cookie products. This limited amount of suppliers may represent a business risk to the Council, and any adverse change in a supplier s ability to provide an adequate amount of goods for resale may have a negative impact on the Council s operations. NOTE 5: RELATED PARTY TRANSACTIONS The Council is a chartered member of Girl Scouts of the United States of America ( GSUSA ). As part of being a chartered member, the Council collects and passes through membership fees on behalf of GSUSA. The total paid to GSUSA by the Council for membership dues collected on behalf of GSUSA in 2017 and 2016 was $103,215 and $120,165, respectively. The Council purchases a majority of its merchandise inventory from GSUSA. In 2017 and 2016, approximately 81% and 79%, respectively, of the Council s merchandise inventory purchases were from GSUSA. As part of the Council s product sales program, a portion of proceeds from the sale of items is retained by the troops and groups participating in the program. The amount of proceeds retained per troop or group varies and is based on the number of items sold by that particular troop or group. In 2017 and 2016, troops and groups retained approximately $1,500,000 and $1,400,000, respectively, in the Council s product sales program. NOTE 6: LAND, BUILDING, AND EQUIPMENT At September 30, 2017 and 2016, land, building, and equipment consisted of the following: September 30, Land $ 657,750 $ 657,750 Construction in progress 28,972 - Buildings and improvements 7,969,421 7,843,971 Furnishings, equipment, and vehicles 1,783,724 1,707,217 Land and leasehold improvements 551, ,581 Livestock 28,275 44,925 11,019,485 10,795,444 Less accumulated depreciation (6,706,789) (6,533,026) $ 4,312,696 $ 4,262,

14 Girl Scouts of West Central Florida. Inc. NOTE 7: INVESTMENTS Investments were comprised of the following at September 30, 2017 and 2016: Permanently Temporarily Restricted Unrestricted Restricted Endowment 2017 Cash and equivalents $ 70,840 $ - $ - $ 70,840 Mutual funds 69, , ,653 Bonds 3,053, ,053,551 Stocks 2,548, ,548,114 Other, long-term - 15,608 65,186 80,794 $ 5,741,988 $ 15,608 $ 193,356 $ 5,950,952 Permanently Temporarily Restricted Unrestricted Restricted Endowment 2016 Cash and equivalents $ - $ - $ 1,903 $ 1,903 Mutual funds 986, ,260 1,096,279 Bonds 3,166, ,166,174 Stocks 1,281, ,281,069 Other, long-term - 14, , ,703 $ 5,433,262 $ 14,645 $ 252,221 $ 5,700,128 The following is a summary of the relationship between market value and cost: September 30, Market Value Cost Market Value Cost Cash and cash equivalents $ 77,479 $ 77,479 $ 1,903 $ 1,903 Mutual funds 71,698 69,343 1,096,279 1,065,724 Bonds 3,084,643 3,108,156 3,166,174 3,163,864 Stocks 2,636,340 2,303,488 1,281,069 1,128,258 Other 80,792 68, , ,654 Balance at end of year $ 5,950,952 $ 5,627,077 $ 5,700,128 $ 5,509,403 The following comprises the components of net gain/(loss) on investments for the year ended September 30, 2017 and 2016: Unrealized gain/(loss) on investments $ 126,703 $ 246,052 Realized gain for the year 73,575 (4,066) Net investment fees for the year (24,031) (21,518) Net gain/(loss) on investments $ 176,247 $ 220,

15 Girl Scouts of West Central Florida. Inc. NOTE 7: INVESTMENTS (Continued) With regard to its invested assets, the Council has an investment policy with an overall objective of supporting the activities of the Council while providing long-term growth of assets at a level of risk deemed acceptable by the Council s Board of Directors. The Council funds its cash flow needs from investments rather than borrowing, which led to the creation of both short and long-term components of the Council s investment portfolio. The short-term component consists of highly liquid investments, while the long-term component consists primarily of equities. The Council maintains a prudent and diversified portfolio management by a third-party investment firm, subject to oversight by a Finance Committee staffed by volunteer professionals. For the year ended September 30, 2017, the Council was in compliance with its investment policy. NOTE 8: FAIR VALUE MEASUREMENTS Financial Accounting Standards Board ASC 820 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 measurement) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under FASB ASC 820 are described below: Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Council has the ability to access. 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 that 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

16 NOTE 8: FAIR VALUE MEASUREMENTS (Continued) Girl Scouts of West Central Florida. Inc. The following is a description of the valuation methodologies used for significant assets measured at fair value at September 30, 2017: Money markets (cash and cash equivalents): The carrying amounts reported in the Statements of Financial Position approximate the fair value because of the short maturities of those instruments. Stocks: Valued at the closing price reported in the active market on which the individual securities are traded. Bonds: Valued at the closing price reported in the active market on which the individual securities are traded. Mutual Funds: Valued at the net asset value (NAV) of shares held by the organization at year end. The mutual funds are invested in individual equities in industries noted above. There are no unfunded commitments within the mutual funds and in addition there are no significant restrictions on the organizations ability to sell investments. Investments in a third-party endowment: The endowment assets are valued based on the third party pricing information without adjustment. The Council does not develop nor are they provided with the quantitative inputs used to develop the fair market values. The methods described above may produce a fair value calculation that may not be indicative of the net realizable value or reflective of future fair values. Furthermore, while the Council 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

17 NOTE 8: FAIR VALUE MEASUREMENTS (Continued) Girl Scouts of West Central Florida. Inc. The fair values of the Council s investment securities, classified by level, are as follows: September 30, 2017 Fair Value Level 1 Level 2 Level 3 Long-term investments: Endowment (cash and cash equivalents) $ 70,840 $ 70,840 $ - $ - Mutual funds 197, , Bonds 3,053,551 3,053, Stocks 2,548,114 2,548, Third-party endowment 80, ,794 Total long-term investments 5,950,952 5,870,158-80,794 $ 5,950,952 $ 5,870,158 $ - $ 80,794 September 30, 2016 Fair Value Level 1 Level 2 Level 3 Long-term investments: Endowment (cash and cash equivalents) 1,903 1, Mutual funds 1,096,279 1,096, Bonds 3,166,174 3,166, Stocks 1,281,069 1,281, Third-party endowment 154, ,703 Total long-term investments 5,700,128 5,545, ,703 The following is a reconciliation of the Council s Level 3 investments: $ 5,700,128 $ 5,545,425 $ - $ 154, Balance at beginning of the year $ 154,703 $ 145,621 Investment income 1,438 4,640 Net appreciation (realized/unrealized) 6,434 9,169 Grant disbursements (738) (4,727) Derecognition of permanently restricted endowment (81,043) - Balance at end of the year $ 80,794 $ 154,

18 Girl Scouts of West Central Florida. Inc. NOTE 9: NOTE PAYABLE The following summarizes the note payable of the Council as of September 30, 2017 and 2016: Year ending September 30, Five year note payable collaterized by vehicle. Payments are due in monthly installments of $1,980 beginning on March 2, Interest is fixed at 3.75%. Note payable matures on February 2, $ 94,886 $ - The future maturities of the note payable are as follows: Principal Year ending September 30, Payment Due 2018 $ 18, , , , ,807 Total $ 94,886 NOTE 10: PENSION PLAN The council participates in the National Girl Scout Council Retirement Plan (NGSCRP), a noncontributory defined benefit pension plan sponsored by Girl Scouts of the USA. The National Board of Girl Scouts of the USA voted to freeze the Plan to new entrants and to freeze future benefit accruals for all current participants under the Plan effective July 31, The Plan covers substantially all of the employees of various Girl Scout councils who were eligible to participate in the Plan prior to the Plan freeze. Accrued and vested benefits prior to July 31, 2010 are based on years of service and salary levels

19 Girl Scouts of West Central Florida. Inc. NOTE 10: PENSION PLAN (Continued) Although net Plan assets grew during the year, net Plan assets available for Plan benefits continue to be less than the actuarial present value of accumulated Plan benefits as of January 1, Based on the April 18, 2014 conditional approval by the Internal Revenue Service (IRS), all existing amortization bases in the Plan s funding standard account as of January 1, 2013 were combined into one base and the resulting amortization period for that single base was extended to 10 years. Approval applies as long as at a minimum, beginning with the January 1, 2013 calendar year, $30,000,000 is remitted. The $30,000,000 calendar year minimum applies for each succeeding calendar year until the Plan is fully funded based upon the requirements of the Pension Protection Act of 2006 (PPA). In addition, on April 8, 2014, President Obama signed H.R into law, a relief package unanimously passed by Congress that gives NGSCRP the flexibility to adopt the Pension Protection Act (PPA) funding requirements immediately or not at all. NGSCRP has elected to adopt this relief and not be subject to PPA. Aggregate annual contributions made in fiscal years 2016 and 2017 were $34.3 million and $33.1 million, respectively. The aggregate annual contributions decreased from 2016 to 2017 due to the reduction in the Plan s total annual aggregate contributions from $34.3 million to $32.5 million effective May 1, Aggregate contributions made in fiscal 2018 are expected to continue to be $32.5 million. The Council s accounting for its participation in NGSCRP adheres to ASC , Multiemployer Plans. The risks of participating in a multiemployer plan are different from single employer plans in the following aspects: Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the Plan, the unfunded vested liability of the Plan may be borne by the remaining participating employers. The following table summarizes the fair value of Plan assets and liabilities: 9/30/2017 9/30/2016 Fair Value of Plan Assets $ 409,500,000 $ 434,400,000 Accumulated Liability of the Plan 708,600, ,500,000 Plan Funded Ratio 58% 58% The contribution rate of covered payroll is 15% in 2017 and 17% in Contributions made by the Council in fiscal year 2017 and 2016 were $528,207 and $529,131, respectively. These contributions were not greater than 5% of total plan contributions during 2017 and Legislative and regulatory solutions are being explored to reduce the minimum required contributions. With legislative relief, 2017 pension contributions to be made by the Council are projected to be consistent with contributions in The Council also maintains a 401(k) retirement plan, in which the Council will make a matching contribution not to exceed 2% of each individual's salary. The amount contributed to the Plan during 2017 and 2016 was $30,387 and $28,118, respectively

20 Girl Scouts of West Central Florida. Inc. NOTE 11: ENDOWMENT FUNDS The Council s endowments consist of four individual funds held by the Community Foundation of Tampa Bay and a permanent endowment created through a Council-wide pledge campaign. The endowments held at the Community Foundation of Tampa Bay were established by the Council for a variety of purposes and are held by a third-party trustee. As such, the Council has no direct influence over the investment policies governing the funds held with the Community Foundation of Tampa Bay, but has a separate investment policy for the funds managed exclusively by the Council. The Council reviews and records the investment activity for the assets held by the Foundation on a monthly basis. As required by GAAP, net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed restrictions. The Council may receive cash payments from each fund based on calculations provided in the endowment agreements and calculated by the Foundation. These disbursements are used by the Council as directed by the donor and documented in the endowment. The Board of Directors of the Council has interpreted the Florida Uniform Prudent Management of Institutional Funds Act (FUPMIFA) as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the Council classifies as permanently restricted net assets (a) the original value of the gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment funds that are not classified in permanently restricted net assets are classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the organization in accordance with the calculation provided in the donor agreement as calculated by the Foundation. In accordance with FUPMIFA, the organization considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds that are overseen by the Council: (1) The duration and preservation of the fund (2) The purposes of the organization and the donor-restricted endowment fund (3) General economic conditions (4) The possible effect of inflation and deflation (5) The expected total return from income and the appreciation of investment (6) Other resources of the organization (7) The investment policies of the organization

21 Girl Scouts of West Central Florida. Inc. NOTE 11: ENDOWMENT FUNDS (Continued) The following represents the endowment net asset composition as of September 30, 2017 and 2016: Endowment net asset composition by type of fund as of September 30, 2017: Unrestricted Temporarily Restricted Permanently Restricted Total Donor-restricted endowment funds $ - $ 15,608 $ 193,356 $ 208,964 Total $ - $ 15,608 $ 193,356 $ 208,964 Changes in endowment net assets for the period ended September 30, 2017: Unrestricted Temporarily Restricted Permanently Restricted Total Endowment net assets, beginning of year $ - $ 14,645 $ 252,221 $ 266,866 Grant disbursements - (738) - (738) Donations - - 3,013 3,013 Investment income ,080 3,316 Net appreciation (realized/unrealized) - 1,465 16,085 17,550 Derecognition of permanently restricted endowment - - (81,043) (81,043) Endowment net assets, end of year $ - $ 15,608 $ 193,356 $ 208,964 Endowment net asset composition by type of fund as of September 30, 2016: Unrestricted Temporarily Restricted Permanently Restricted Total Donor-restricted endowment funds $ - $ 14,645 $ 252,221 $ 266,866 Total $ - $ 14,645 $ 252,221 $ 266,866 Changes in endowment net assets for the period ended September 30, 2016: Unrestricted Temporarily Restricted Permanently Restricted Total Endowment net assets, beginning of year $ - $ 14,129 $ 231,286 $ 245,415 Grant disbursements - (718) (4,009) (4,727) Donations - - 1,980 1,980 Investment income ,697 6,469 Net appreciation (realized/unrealized) ,267 17,729 Endowment net assets, end of year $ - $ 14,645 $ 252,221 $ 266,866 In regards to the Council s permanently restricted endowment fund, all investment income and appreciation of the endowment is considered permanently restricted and added to the original value of the gift until the endowment reaches the donor directed level in accordance with the donor agreement

22 NOTE 12: GRANTS JUVENILE WELFARE BOARD OF PINELLAS COUNTY Girl Scouts of West Central Florida. Inc. The Juvenile Welfare Board of Pinellas County provided the Council funding during 2017 and The Council has recorded revenue of $148,106 and $180,426 for the years ended September 30, 2017 and 2016, respectively. NOTE 13: SUBSEQUENT EVENTS The Council has evaluated subsequent events through December 28, 2017, which is the date the financial statements were issued, and none were noted

23 SUPPLEMENTARY INFORMATION

24 Girl Scouts of West Central Florida. Inc. Schedule of Functional Expenses Supporting Services Total 2017 Total Program Management Fund Supporting Total Services and General Raising Services Expenses LABOR EXPENSES Salaries $ 2,771,847 $ 487,933 $ 240,942 $ 728,875 $ 3,500,722 Employee Benefits 735, ,884 57, , ,806 Payroll Taxes 265,867 42,920 21,284 64, ,071 Total salaries and related expenses 3,772, , , ,885 4,749,599 OTHER EXPENSES Supplies 94,193 3,489 1,365 4,854 99,047 Professional 272,841 47,626 15,950 63, ,417 Building expense 374,446 48,890-48, ,336 Insurance 160,462 54,052-54, ,514 Travel 190,848 50,321 4,143 54, ,312 Special assistance 569,929 3,215 14,334 17, ,478 Equipment 68,246 6,942 3,159 10,101 78,347 Print & publications 144,273 2,606 13,968 16, ,847 Communications 116,254 15,202 13,381 28, ,837 Bank fees - 54, ,046 55,046 Postage 30,299 1,904 13,691 15,595 45,894 Bad debts 43, ,671 Miscellaneous 3, ,015 4,297 Grant Subreceipent 174, ,626 Total other expenses 2,242, ,140 80, ,734 2,613,669 Total expenses before depreciation 6,015, , ,742 1,347,619 7,363,268 Depreciation 168, , , ,102 Total expenses $ 6,184,269 $ 1,100,359 $ 400,742 $ 1,501,101 $ 7,685,370 See Independent Auditors Report