West Side Center for Community Life, Inc.

Transcription

1 West Side Center for Community Life, Inc. Financial Statements

2 Independent Auditors' Report Board of Directors West Side Center for Community Life, Inc. We have audited the accompanying financial statements of West Side Center for Community Life, Inc. ( WSCCL ), which comprise the statement of financial position as of, and the related statements of activities, functional expenses 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 of 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. PKF O CONNOR DAVIES, LLP 665 Fifth Avenue, New York, NY I Tel: or I Fax: I PKF O Connor Davies, LLP is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms.

3 Board of Directors West Side Center for Community Life, Inc. Page 2 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of West Side Center for Community Life, Inc. as of, 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. Report on Summarized Comparative Information We have previously audited West Side Center for Community Life, Inc. s 2015 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated December 20, In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2015 is consistent, in all material respects, with the audited financial statements from which it has been derived. March 28, 2017

4 Statement of Financial Position (with comparative amounts at June 30, 2015) ASSETS Cash and cash equivalents $ 1,161,918 $ 1,041,498 Grants receivable 211, ,994 Prepaid expenses and other assets 2,424 2,969 Property and equipment, net 781, ,281 $ 2,156,404 $ 2,063,742 LIABILITIES AND NET ASSETS Liabilities Accounts payable and accrued expenses $ 46,274 $ 36,576 Due to the Church 111, ,049 Total Liabilities 157, ,625 Net Assets Unrestricted 1,834,076 1,902,444 Temporarily restricted 164,673 14,673 Total Net Assets 1,998,749 1,917,117 $ 2,156,404 $ 2,063,742 See notes to financial statements 3

5 Statement of Activities Year Ended (with summarized totals for the year ended June 30, 2015) Temporarily Unrestricted Restricted Total Total SUPPORT AND REVENUE Foundation grants $ 348,080 $ 687,000 $ 1,035,080 $ 852,680 Corporation grants 32,475-32,475 39,319 Religious and other institutions 116, , ,593 Individual contributions 333, , ,444 Legislative grants 37,441-37,441 40,935 Donated food 1,133,957-1,133,957 1,016,405 Donated space 26,307-26,307 25,434 Donated professional services 57,782-57, ,188 Special events, net of direct costs of $12,886 and $4, , , ,283 Government grants 535, , ,679 Interest income 2,709-2,709 2,688 Other 21,843-21,843 7,222 2,981, ,000 3,668,042 3,356,870 Net assets released from restrictions 537,000 (537,000) - - Total Support and Revenue 3,518, ,000 3,668,042 3,356,870 EXPENSES Programs 3,200,779-3,200,779 2,967,095 General and administrative 127, , ,020 Fundraising 257, , ,678 Total Expenses 3,586,410-3,586,410 3,436,793 Change in Net Assets (68,368) 150,000 81,632 (79,923) NET ASSETS Beginning of year 1,902,444 14,673 1,917,117 1,997,040 End of year $ 1,834,076 $ 164,673 $ 1,998,749 $ 1,917,117 See notes to financial statements 4

6 Statement of Functional Expenses Year Ended (with summarized totals for the year ended June 30, 2015) Programs General Food Total and Pantry Counseling Wellness Other Programs Administrative Fundraising Total Total Salaries $ 254,401 $ 414,633 $ 119,430 $ - $ 788,464 $ 69,476 $ 154,506 $ 1,012,446 $ 938,924 Payroll taxes and benefits 85, ,565 40, ,397 23,386 52, , ,342 Professional fees 21,121 9,096 11, , ,032 76,137 Donated professional services 16,295 16,295 8,146-40,736 8,791 8,255 57, ,188 Food 632, , , ,439 Donated food 1,133, ,133, ,133,957 1,016,405 Occupancy 42,152 41,264 19, ,944 7,165 10, , ,313 Donated space 8,857 8,857 4,427-22,141 1,608 2,558 26,307 25,434 Equipment 2,366-2, , ,103 6,802 Volunteer incentives 19,429-11,822-31, ,251 33,285 Transportation ,766 Printing and supplies 11,267-3,025-14,292 1,010 1,607 16,909 16,604 Communications 5,338 6,877 3, ,787 3,442 10,551 29,780 33,928 Audit 6,030 6,030 3,015-15,075 1, ,750 21,000 Computer services 6,077 9,904 2,853-18,834 1,367 2,176 22,377 23,140 Miscellaneous 2,649 3,123 1, ,329 4,820 7,191 19,340 20,100 Other loss ,734 Depreciation 15,912 15,912 7,956 22,333 62,113 4,510 7,175 73,798 74,521 Interest expense ,332 1, ,332 4,731 Total $ 2,264,388 $ 671,802 $ 239,219 $ 25,370 $ 3,200,779 $ 127,859 $ 257,772 $ 3,586,410 $ 3,436,793 See notes to financial statements 5

7 Statement of Cash Flows Year Ended (with comparative amounts for the year ended June 30, 2015) CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ 81,632 $ (79,923) Adjustments to reconcile change in net assets to net cash from operating activities Depreciation 73,798 74,521 Loss on disposal of property and equipment - 2,734 Change in operating assets and liabilities Grants receivable (39,017) (18,191) Prepaid expenses and other assets Accounts payable and accrued expenses 9,698 12,400 Due to SPSA 1,332 4,731 Net Cash from Operating Activities 127,988 (3,147) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment (7,568) (7,659) Net Change in Cash and Cash Equivalents 120,420 (10,806) CASH AND CASH EQUIVALENTS Beginning of the year 1,041,498 1,052,304 End of the year $ 1,161,918 $ 1,041,498 See notes to financial statements 6

8 Notes to Financial Statements 1. Organization and Tax Status West Side Center for Community Life, Inc. ( WSCCL ), a not-for-profit corporation, is an umbrella agency for social service and community outreach programs founded by and operating at the Church of St. Paul and St. Andrew United Methodist (the Church or SPSA ), a related party. The financial statements reflect all activities of WSCCL, including the West Side Campaign Against Hunger program ( WSCAH ), which is funded by a combination of government and private sources. The operations of WSCAH were formally transferred by the Church to WSCCL on August 18, WSCCL operates WSCAH on the premises of the Church partially in a condominium unit owned by WSCCL, and in space leased from the Church. WSCCL is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code. 2. Summary of Significant Accounting Policies Basis of Presentation and Use of Estimates The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, which 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. Accordingly actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with maturities of three months or less when purchased and consist principally of funds maintained in checking and time deposit accounts. Contributions Contributions received, including unconditional promises to give, are recognized as income in the period received at their fair values. Contributions are recorded as restricted income if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Government Grants Federal, state and other grant awards received for specific purposes are recognized as support and revenue to the extent related expenses are incurred in compliance with the specific grant terms. The unexpended funds are considered refundable advances and reported as advances payable. 7

9 Notes to Financial Statements 2. Summary of Significant Accounting Policies (continued) Property and Equipment Property and equipment are stated at cost. Costs incurred for repairs and maintenance are charged to expense as incurred. Purchases above $1,000 that WSCCL retains title to and which benefit future periods are capitalized at cost, or if donated, at the estimated fair value at the time of donation. Depreciation is recognized on a straight line basis over the useful lives of such assets as follows: Building and improvements Furniture and equipment Leasehold improvements years 3-10 years Life of lease or useful life if shorter Net Assets Presentation Unrestricted net assets include funds having no restriction imposed by donors as to use or purpose. Temporarily restricted net assets are those whose use is limited by donors to a specific time period or purpose. Permanently restricted net assets are limited by donors for investment in perpetuity. At and 2015, there were no permanently restricted net assets. Donated Goods and Services WSCCL receives donated goods and services from various sources which would have been purchased if they had not been donated. These goods and services are recorded at the fair value at date of donation based on what the cost would have been if WSCCL purchased them. These amounts have been reflected as revenue and expenses in the statement of activities. Donated services rendered by certain volunteers are not recorded as revenue and expenses because they do not meet the criteria for recognition in the financial statements. Donated services recognized in the accompanying financial statements represent pro-bono legal services provided to WSCCL. Allocation of Expenses The costs of providing programs and other activities have been summarized on a functional basis in the statement of activities. Accordingly, certain costs have been allocated among the program and supporting services benefited. Such allocations are determined by management in accordance with grant provisions or by another equitable basis. Refundable Advances Revenues from fundraising events are reported in the fiscal year in which the events are held. Payments received in advance of these events are reported as refundable advances until the event occurs. 8

10 Notes to Financial Statements 2. Summary of Significant Accounting Policies (continued) Allowance for Doubtful Accounts An allowance for doubtful accounts is established for uncollectible amounts. The determination of this allowance is an estimate based on WSCCL s historical experience, review of account balances and expectations relative to collections. Accounting for Uncertainty in Income Taxes WSCCL recognizes the effect of income tax positions only when they are more likely than not of being sustained. Management has determined that WSCCL had no uncertain tax positions that would require financial statement recognition or disclosure. WSCCL is no longer subject to audits by the applicable taxing jurisdiction for periods prior to fiscal Subsequent Events Evaluation by Management Management has evaluated subsequent events for disclosure and/or recognition in the financial statements through the date that the financial statements were available to be issued, which date is March 28, Grants Receivable Grants receivable are deemed to be fully collectible by management and consist of the following at June 30: Hunger Prevention and Nutrition Assistance Program $ 26,082 $ 23,327 Department of Youth and Community Development 33,041 22,435 Department for the Aging 4,400 7,500 Single Stop USA 70,000 70,000 New York State Office of Children & Family Services 7,500 New York City Human Resources Administration Customer Choice Food Pantry - 3,500 Emergency Food and Shelter Program 22,807 23,757 Others 54,681 13,975 $ 211,011 $ 171,994 9

11 Notes to Financial Statements 4. Property and Equipment Property and equipment consist of the following at June 30: Furniture and equipment $ 156,164 $ 156,205 Building and improvements 670, ,000 Leasehold improvements 391, ,655 1,217,531 1,222,860 Accumulated depreciation (436,480) (375,579) $ 781,051 $ 847,281 During fiscal 2016, WSCCL disposed of $12,897 of fully depreciated assets. 5. Related Party Transactions WSCCL received advances totaling $958,000 from the Church, and through, has repaid $57,300. The advances are interest free and have no scheduled repayment date. Through WSCCL paid $1,251,630 for construction costs on behalf of the Church of which $831,632 was in excess of the amount of rent due to the Church per the lease agreement. The excess amount was netted against total advances outstanding from the Church of $900,700, resulting in an amount due to the Church of $69,068 at June 30, During fiscal 2012, WSCCL obtained a loan from the Church in the amount of $42,313, including accrued interest, in connection with the sale of a condominium unit. The loan bears interest at 3.25% per annum and is due on demand. Interest expense incurred during the years ended and 2015 amounted to $1,332 and $1,290. WSCCL occupies part of its premises pursuant to an operating lease agreement with the Church that is renewed annually in January. Rental expense for the year ended June 30, 2016 and 2015 was $93,992 and $90, Temporarily Restricted Net Assets Temporarily restricted net assets of $164,673 and $14,673 are available for food and staff services at and Net assets of $537,000 and $552,000 were released from donor restrictions by incurring expenses satisfying the food and staff services restricted purposes during the year ended and Concentration of Credit Risk WSCCL maintains cash in bank accounts which at times may exceed federally insured limits. This potentially subjects WSCCL to a concentration of credit risk. WSCCL has not experienced any losses in such accounts. * * * * * 10