FAMILY RESOURCE CENTER OF NORTHEASTERN NEVADA FINANCIAL STATEMENTS JUNE 30, 2014 and 2013

Transcription

1 FAMILY RESOURCE CENTER OF NORTHEASTERN NEVADA FINANCIAL STATEMENTS JUNE 30, 2014 and 2013

2 FAMILY RESOURCE CENTER OF NORTHEASTERN NEVADA JUNE 30, 2014 and 2013 TABLE OF CONTENTS PAGE NO. INDEPENDENT AUDITORS REPORT 1-2 FINANCIAL STATEMENTS Statements of Financial Position 3 Statements of Activities 4-5 Statements of Functional Expenses 6-7 Statements of Cash Flows 8 Notes to Financial Statements 9-12 ADDITIONAL INFORMATION Statement of Program Expenses 13 COMPLIANCE SECTION Independent Auditor s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 14-15

3 Mahlke Hunsaker & Company PLLC C e r t i f i e d P u b l i c A c c o u n t a n t s INDEPENDENT AUDITORS REPORT To the Board of Trustees of Family Resource Center of Northeastern Nevada Report on the Financial Statements We have audited the accompanying financial statements of Family Resource Center of Northeastern Nevada (a nonprofit organization), which comprise the statements of financial position as of June 30, 2014 and 2013, and the related statements of activities, functional expenses, 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. 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 and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion River Vista Place, Suite 202 Twin Falls, ID 83301

4 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Family Resource Center of Northeastern Nevada as of June 30, 2014 and 2013, 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. Other Matters Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The statement of program expenses on page 13 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 29, 2014, on our consideration of Family Resource Center of Northeastern Nevada s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Family Resource Center of Northeastern Nevada s internal control over financial reporting and compliance. Mahlke Hunsaker & Company, pllc Twin Falls, Idaho October 29, Mahlke Hunsaker & Company pllc River Vista Place, Suite 202 Twin Falls, ID 83301

5 Family Resource Center of Northeastern Nevada Statements of Financial Position June 30, 2014 and 2013 ASSETS Current Assets Cash and Cash Equivalents $ 179,159 $ 124,234 Grants and Accounts Receivable 117,964 95,577 Prepaid Assets - 9,752 Total Current Assets 297, ,563 Fixed Assets Property and Equipment 67,775 64,260 Land 64,000 64,000 Building 606, ,618 Less: Accumulated Depreciation (88,324) (67,522) Total Fixed Assets 650, ,356 TOTAL ASSETS $ 947,125 $ 874,919 LIABILITIES AND NET ASSETS Current Liabilities Accounts Payable and Credit Card Payable $ 20,335 $ 7,627 Accrued Payroll and Compensated Absences 19,236 9,190 Current Portion of Long Term Debt 28,301 10,247 Accrued Payroll Taxes 24, Total Current Liabilities 92,091 27,767 Long Term Liabilities Note Payable, net of Current Portion 421, ,232 Total Long Term Liabilities 421, ,232 Net Assets Unrestricted 433, ,920 Temporarly Restricted - - Total Net Assets 433, ,920 TOTAL LIABILITIES AND NET ASSETS $ 947,125 $ 874,919 See accompanying notes and accountants' report. 3

6 Family Resource Center of Northeastern Nevada Statements of Activities For the Years Ended June 30, 2014 and 2013 Unrestricted 2014 Temporarily Restricted Total SUPPORT & REVENUES Support Contributions $ 37,062 $ - $ 37,062 Grants - 831, ,228 Total Support 37, , ,290 Revenues Investment Income Fiscal Fees Rental Income 9,659-9,659 Other Income 110, ,184 Total Revenue 120, ,296 Assets Released from Restrictions 831,228 (831,228) - Total Support and Revenue 988, ,586 EXPENSES Program Expenses 840, ,183 Management & General 104, ,785 Fundraising Total Expenses 944, ,968 CHANGE IN NET ASSETS 43,618-43,618 NET ASSETS, BEGINNING OF YEAR 389, ,920 NET ASSETS, END OF YEAR $ 433,538 $ - $ 433,538 See accompanying notes and accountants' report. 4

7 Family Resource Center of Northeastern Nevada Statements of Activities For the Years Ended June 30, 2014 and 2013 Unrestricted 2013 Temporarily Restricted Total SUPPORT & REVENUES Support Contributions $ 88,645 $ - $ 88,645 Grants - 578, ,019 Total Support 88, , ,664 Revenues Program Income 2,307-2,307 Investment Income Fiscal Fees Rental Income Other Income 15,711-15,711 Total Revenue 18,067-18,067 Assets Released from Restrictions 622,472 (622,472) - Gain on Disposal of Fixed Assets 2,180-2,180 Total Support and Revenue 731,364 (44,453) 686,911 EXPENSES Program Expenses 608, ,353 Management & General 82,755-82,755 Fundraising 10,802-10,802 Total Expenses 701, ,910 CHANGE IN NET ASSETS 29,454 (44,453) (14,999) NET ASSETS, BEGINNING OF YEAR 360,466 44, ,919 NET ASSETS, END OF YEAR $ 389,920 $ - $ 389,920 See accompanying notes and accountants' report. 5

8 Family Resource Center of Northeastern Nevada Statements of Functional Expenses For the Years Ended June 30, 2014 and 2013 General and Total Program Administrative Fundraising 2014 Payroll Salaries $ 396,198 $ 8,228 $ - $ 404,426 Payroll Taxes 43,397 14,398-57,795 Total Payroll 439,595 22, ,221 Other Administrative $ 3,472 $ 50 $ - $ 3,522 Advertising 8, ,830 Copying & Printing 6, ,102 Depreciation - 20,802-20,802 Direct Services 35,129 1,533-36,662 Fundraising Indirect Costs 27, ,886 Insurance 7,154 3,556-10,710 Miscellaneous 683 2,955-3,638 Outside Services 187, ,051 Postage 1, ,082 Program Supplies & Expense 23,495 8,651-32,146 Occupancy & Janitorial 60,988 26,327-87,315 Equipment Supplies, Repairs, & Maint. 19, ,788 Telephone 9,678 1,041-10,719 Training and Travel 8,948 15,546-24,494 Total Other Expenses 400,588 82, ,747 Total Functional Expenses $ 840,183 $ 104,785 $ - $ 944,968 See accompanying notes and accountants' report. 6

9 Family Resource Center of Northeastern Nevada Statements of Functional Expenses For the Years Ended June 30, 2014 and 2013 General and Total Program Administrative Fundraising 2013 Payroll Salaries $ 374,165 $ 32,678 $ - $ 406,843 Payroll Taxes 40,001 8,365-48,366 Total Payroll 414,166 41, ,209 Other Advertising $ 4,491 $ 1,334 $ - $ 5,825 Copying & Printing 2,771 2,308-5,079 Depreciation - 20,988-20,988 Fundraising ,802 10,802 Insurance 9,357 1,212-10,569 Miscellaneous 2,728 1,796-4,524 Outside Services 42,099 1,080-43,179 Postage Program Supplies & Expense 56,490 5,919-62,409 Occupancy & Janitorial 48,175 (2,101) - 46,074 Equipment Supplies, Repairs, & Maint. 4,165 2,665-6,830 Telephone 7, ,014 Training and Travel 16,100 5,803-21,903 Total Other Expenses 194,187 41,712 10, ,701 Total Functional Expenses $ 608,353 $ 82,755 $ 10,802 $ 701,910 See accompanying notes and accountants' report. 7

10 Family Resource Center of Northeastern Nevada Statements of Cash Flows For the Years Ended June 30, 2014 and Cash Flows From Operating Activities Changes in net assets $ 43,618 $ (14,999) Adjustments to reconcile changes in net assets to net cash provided (used) by operating activities Depreciation 20,802 20,988 (Increase) Decrease in accounts receivable (22,387) 5,775 (Increase) Decrease in prepaid assets 9,752 (8,935) Increase (Decrease) in accounts and credit card payables 12,708 (17,144) Increase (Decrease) in accrued expenses 33,562 2,427 Net Cash Provided (Used) by Operating Activities 98,055 (11,888) Cash Flows From Investing Activities Purchase of Property, Plant and Equipment (25,448) (12,212) Net Cash Used by Investing Activities (25,448) (12,212) Cash Flows From Financing Activities Principal Payments on Long-Term Debt (17,682) (8,570) Net Cash Used by Financing Activities (17,682) (8,570) Net Increase (Decrease) in Cash and Cash Equivalents 54,925 (32,670) Cash and Cash Equivalents, Beginning of Year 124, ,904 Cash and Cash Equivalents, End of Year $ 179,159 $ 124,234 Supplemental information for Statement of Cash Flows: Interest paid with cash $ 24,958 $ 27,075 See accompanying notes and accountants' report. 8

11 FAMILY RESOURCE CENTER OF NORTHEASTERN NEVADA NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2014 and 2013 NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Nature of Operations The Family Resource Center of Northeastern Nevada (Family Resource Center) is a nonprofit organization. The agency was established as a forum for neighbors to support neighbors and is dedicated to developing resources that strengthen and empower families within rural communities of Northeastern Nevada; the local Center provides education, support and encouragement. The programs are funded by state and federal grants. B. Basis of Accounting The accounting records are maintained on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. C. Income Taxes The Organization operates as a nonprofit organization and has received exempt status under Section 501 (c) (3) of the Internal Revenue Code, and accordingly, no provision for income taxes has been reflected in the accompanying financial statements. The Organization s forms 990, Return of Organization Exempt from Income Tax, for the years ending 2014, 2013 and 2012 are subject to examination by the IRS, generally for three years after they were filed. D. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires the use of management s estimates. Due to their prospective nature, actual results could differ from those estimates. E. Cash Equivalents For purposes of the statement of cash flows, the Organization considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. F. Financial Statement Presentation The Organization follows Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations, and SFAS No. 116 Accounting for Contributions Received and Contributions Made. Under SFAS No. 117, the Organization is required to report 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. 9

12 FAMILY RESOURCE CENTER OF NORTHEASTERN NEVADA NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2014 and 2013 NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued G. Contributions and Grants Grant revenues are recorded as they are earned, according to the provisions of the grant. Normally, grant revenues are earned and received as the grant period progresses. The provisions of the grant determine the timing of revenue recognition. Grant expenses are recognized when incurred for a grant-related obligation. Contributions and grants that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire (that is, when stipulated time restriction ends or purpose restriction is accomplished) in the reporting period in which the revenue is recognized. All other donor-restricted contributions and grants are reported as increases in temporarily restricted net assets, depending on the nature of the restrictions. When a temporary restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statement of Activities as net assets released from restrictions. H. Advertising Advertising costs are expensed as incurred. Advertising costs totaled $8,830 and $5,827 for the years ended June 30, 2014 and 2013 respectively. I. Vacation Time and Sick Leave Benefits Accumulated costs for unused vacation are recognized as a current liability due to the ability of employees to request compensation for their unused vacation or to carry over to a future period. This is recorded in the financial statements as compensated absences. An employee is not paid vacation upon termination unless employed six months or more, and has given two weeksnotice. Sick leave has not been accrued as employees are not allowed to be paid sick leave upon termination. J. Concentration of Credit Risk The Organization receives a substantial portion of its revenue from contracts/grants administered by the State of Nevada. The Organization s operations are significantly dependent upon this revenue. The Organization maintains several cash accounts in Elko, Nevada, none of which have exceeded FDIC coverage limits. The Organization does not grant credit or make loans to others. NOTE 2-FUNCTIONAL ALLOCATION OF EXPENSES The costs of providing various programs and activities have been summarized on a functional basis in the Statement of Functional Expenses. Accordingly, certain costs have been allocated among the programs and supporting service benefited. 10

13 FAMILY RESOURCE CENTER OF NORTHEASTERN NEVADA NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2014 and 2013 NOTE 3-PROPERTY AND EQUIPMENT Purchased property and equipment are carried at cost. Donations of property and equipment are recorded as support at their estimated fair value at the date of donation. Such donations are reported as unrestricted support unless the donor has restricted the donated asset to a specific purpose. No such restrictions were made on donated assets. Acquisitions of property and equipment in excess of $500 are capitalized. Depreciation of property and equipment is calculated on the straight-line basis over the estimated useful lives of the assets ranging from 5 to 20 years. The building is being depreciated over 40 years. The cost of such assets at June 30, 2014 and 2013 is as follows: Transportation equipment $ 18,028 $ 18,028 Equipment, furniture and fixtures 49,747 46,232 Land 64,000 64,000 Building 606, , , ,878 Less: Accumulated depreciation (88,324) (67,522) $ 650,002 $ 645,356 NOTE 4-ACCOUNTS RECEIVABLE As of June 30, 2014 and 2013, accounts receivable from grants, contributions and program income was composed of the following and management does not anticipate any collection loss on the receivable amounts State of Nevada-Grants $ 117,964 $ 95,577 $ 117,964 $ 95,577 11

14 FAMILY RESOURCE CENTER OF NORTHEASTERN NEVADA NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2014 and 2013 NOTE 5-NOTE PAYABLE The Organization purchased a new building for its office. The Organization entered into a loan with Wells Fargo Bank on a 15 year mortgage. The loan calls for monthly payments of $4,370 and accrues interest at a rate of 5.5%. The maturities of debt are as follows: Year ended June 30, 2015: 28,301 June 30, 2016: 29,898 June 30, 2017: 31,584 June 30, 2018: 33,366 June 30, 2019: 35, : 208, : 82,995 Total $ 449,797 NOTE 6- CONCENTRATIONS OF CREDIT RISK Financial instruments that subject the Organization to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Organization does not require collateral to support financial instruments. The Organization maintains its cash balances in two financial institutions located in Elko, Nevada. As of June 30, 2014 and 2013, these deposits did not exceed the $250,000 insurance provided by the Federal Deposit Insurance Corporation (FDIC) coverage. NOTE 7- FAIR VALUE OF FINANCIAL INSTRUMENTS The following disclosure of the estimated fair value of financial instruments is made in accordance with the requirements of ASC 825, Financial Instruments. The estimated fair value amounts have been determined by the Organization using available market information and appropriate valuation methodologies. However, considerable judgment is necessarily required in interpreting market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that the Organization could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. The carrying amounts reported in the statement of financial position for cash, receivables, accounts payable and accrued liabilities are a reasonable estimate of their fair value. NOTE 8-SUBSEQUENT EVENTS The Organization has evaluated subsequent events through October 29, 2014, the date which the financial statements were available to be issued. 12

15 Family Resource Center of Northeastern Nevada Statement of Program Expenses For the Year Ended June 30, 2014 Children's Children/Youth DAS Women, Abstinence Trust Special Health Grandparent Diff FASS Hunger Newmont Infant, and Total Chafee Education Fund Care Needs Respite Response Title IV B FRC Grant Funds Children Other 2014 Payroll Salaries $ 6,541 $ 78,336 $ 42,167 $ 11,364 $ 15,030 $ 83,451 $ 14,358 $ 18,757 $ 19,644 $ 13,709 $ 92,841 $ 8,228 $ 404,426 Payroll Taxes 683 8,653 4,290 1,183 1,741 9,304 1,357 2,021 2,051 1,413 10,701 14,398 57,795 Total Payroll 7,224 86,989 46,457 12,547 16,771 92,755 15,715 20,778 21,695 15, ,542 22, ,221 Other Administrative , ,522 Advertising - 3,852 3, ,830 Copying & Printing 237 3, , ,102 Depreciation ,802 20,802 Direct Services ,421 21, , ,413 36,662 Fundraising Indirect Costs - - 4, ,962-1,502 12, ,886 Insurance ,153 1, ,556 10,710 Miscellaneous ,955 3,638 Outside Services , , , , ,051 Postage ,082 Program Supplies & Expense - 9,367 4, ,152 3, ,664 8,651 32,146 Interest, Occupancy and Janitorial ,179 5, ,627 5,940 5,424 5,280 4,350-5,142 26,327 87,315 Equipment Supplies, Repairs, & Maint ,126-1, ,788 Telephone 166 2,062 1, , , ,041 10,719 Training and Travel 125 1, , , ,546 24,494 Total Other Expenses 2,280 41,364 21,929 11,476 33,774 27,370 12,785 10, , ,918 84, ,747 Total Functional Expenses $ 9,504 $ 128,353 $ 68,386 $ 24,023 $ 50,545 $ 120,125 $ 28,500 $ 31,745 $ 241,825 $ 15,717 $ 119,460 $ 106,785 $ 944,968 See accompanying notes and accountants' report. 13

16 Mahlke Hunsaker & Company PLLC C e r t i f i e d P u b l i c A c c o u n t a n t s INDEPENDENT AUDITORS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Trustees of Family Resource Center of Northeastern Nevada We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Family Resource Center of Northeastern Nevada (a nonprofit organization), which comprise the statements of financial position as of June 30, 2014 and 2013, and the related statements of activities, functional expenses and cash flows for the years then ended, and the related notes to the financial statements, and have issued our report thereon dated October 29, Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered Family Resource Center of Northeastern Nevada s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Family Resource Center of Northeastern Nevada s internal control. Accordingly, we do not express an opinion on the effectiveness of the Organization s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified River Vista Place, Suite 202 Twin Falls, ID 83301

17 Compliance and Other Matters As part of obtaining reasonable assurance about whether Family Resource Center of Northeastern Nevada s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the organization s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organization s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Mahlke Hunsaker & Company, pllc Twin Falls, Idaho October 29, Mahlke Hunsaker & Company pllc River Vista Place, Suite 202 Twin Falls, ID 83301