YOUTH VOLUNTEER CORPS OF AMERICA FINANCIAL STATEMENTS WITH INDEPENDENT AUDITORS REPORT FOR THE YEAR ENDED MARCH 31, 2009

Transcription

1 FINANCIAL STATEMENTS WITH INDEPENDENT AUDITORS REPORT FOR THE YEAR ENDED MARCH 31, 2009

2 TABLE OF CONTENTS INDEPENDENT AUDITORS REPORT...1 FINANCIAL STATEMENTS: STATEMENT OF FINANCIAL POSITION...2 STATEMENT OF ACTIVITIES...3 STATEMENT OF FUNCTIONAL EXPENSES...4 STATEMENT OF CASH FLOWS...5 NOTES TO THE FINANCIAL STATEMENTS i-

3 Marr and Company, P.C. CERTIFIED PUBLIC ACCOUNTANTS 1401 East 104 th Street, Suite 100, Kansas City, MO Voice (816) Fax (816) INDEPENDENT AUDITORS REPORT The Board of Directors Youth Volunteer Corps of America We have audited the accompanying statement of financial position of Youth Volunteer Corps of America (YVCA) as of March 31, 2009, and the related statements of activities, functional expenses and cash flows for the year then ended. These financial statements are the responsibility of YVCA s management. 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Youth Volunteer Corps of America as of March 31, 2009, 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. In accordance with Government Auditing Standards, we have also issued our report dated August 10, 2009, on our consideration of YVCA s internal control over financial reporting and on our test of its compliance with certain provisions of laws, regulations, contracts and grant agreement 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 the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Kansas City, Missouri August 10, 2009 Marr and Company, P.C. Certified Public Accountants -1-

4 STATEMENT OF FINANCIAL POSITION ASSETS Current Assets: Cash $ 93,963 Certificates of Deposit 680,940 Federal Grants Receivable (Note 5) 86,664 Accounts Receivable (net of allowance of $6,535) 51,328 Unconditional Promises Receivable (net of discount of $15,915) (Note 2) 379,819 Interest Receivable 2,520 Other Receivables 10,047 Inventory 500 Total Current Assets 1,305,781 Capital Assets, net of accumulated depreciation (Note 3) 3,550 Deposits 2,096 TOTAL ASSETS $1,311,427 LIABILITIES AND NET ASSETS Current Liabilities: Accounts Payable $ 12,450 Payroll Withholdings 607 Credit Card Payable 7,778 Affiliate Grants Payable 62,500 Accrued Personal Time 3,639 Total Current Liabilities 86,974 Net Assets: Unrestricted 841,637 Temporarily Restricted (Note 4) 382,816 Total Net Assets 1,224,453 TOTAL LIABILITIES AND NET ASSETS $1,311,427 See the Accompanying Notes to these Financial Statements. -2-

5 STATEMENT OF ACTIVITIES For the Fiscal Year Ended March 31, 2009 Temporarily Unrestricted Restricted Totals Revenue, Income and Support: Contributions: Individuals $ 14,731 $ 0 $ 14,731 Corporations 1, ,061 Foundations 92,142 10, ,142 Total Contributions 107,934 10, ,934 Federal Award - AmeriCorps 704, ,522 AmeriCorps Sites Matching (Note 6) 206, ,482 Local Program Grants 2, ,282 Member Affiliation Fees 15, ,233 Discount for Unconditional Promises 18, ,617 Interest Income 17, ,839 Miscellaneous Income 5, ,669 Total Revenue, Income and Support 1,078,578 10,000 1,088,578 Expenses: Program Services: AmeriCorps 670, ,857 YVC Kansas City 82, ,614 Affiliate Development & Expansion 260, ,490 Total Program Services 1,013, ,013,961 Supporting Activities: General and Administrative 197, ,750 Fundraising 16, ,791 Total Supporting Activities 214, ,541 Total Expenses 1,228, ,228,502 Net Assets Released from Restrictions 167, ,050 0 Change in Net Assets 17, ,050 (139,924) NET ASSETS, MARCH 31, , ,800 1,375,215 Prior Period Adjustment 2,096 (12,934) (10,838) Net Assets, March 31, 2008 (restated) 824, ,866 1,364,377 NET ASSETS, MARCH 31, 2009 $ 841,637 $ 382,816 $1,224,453 See the Accompanying Notes to these Financial Statements. -3-

6 STATEMENT OF FUNCTIONAL EXPENSES Program Services Support Services Total Total YVC Affiliate Program General & Fund Support AmeriCorps Kansas City Development Services Admin Raising Activities Totals Salary, Wages & Living Allowance $465,526 $45,195 $ 46,257 $ 556,978 $ 97,591 $11,774 $109,365 $ 666,343 Payroll Taxes 34,570 3,568 1,851 39,989 8, ,391 49,380 Fringe Benefits 27,400 3,142 2,753 33,295 5, ,510 39,805 Professional Development Personnel Training , ,195 Facility Rent 11,324 9,042 4,980 25,346 4, ,980 30,326 Telephone 13,449 1,221 2,126 16,796 4, ,027 21,823 Insurance 3, ,648 5,500 3, ,895 9,395 Equipment Repairs & Maintenance , ,618 Depreciation Marketing, Printing & Promotion 11,500 4,146 4,325 19,971 9,124 1,101 10,225 30,196 Office & Project Supplies 3,863 5, ,726 1, ,595 11,321 Meetings & Conferences 46, ,786 50, ,417 Travel & Lodging 15,379 8,139 5,007 28,525 9, ,205 37,730 Program Evaluation 31, ,462 41, ,244 Affiliate Site Grants , , ,000 Accounting & Audit Fees , ,720 47,720 Payroll & Bank Service Fees 3, ,926 1, ,328 6,254 Miscellaneous , ,697 3,566 $670,857 $82,614 $260,490 $1,013,961 $197,750 $16,791 $214,541 $1,228,502 See the Accompanying Notes to these Financial Statements. -4-

7 STATEMENT OF CASH FLOWS CASH FLOWS FROM OPERATING ACTIVITIES Change in Net Assets $(139,924) Adjustments to reconcile change in net assets to net cash provided (used) by operating activities: Items not requiring cash: Depreciation/amortization 959 Increase/(Decrease) in Assets: Federal grants receivable (42,443) Accounts receivable (78) Unconditional promises 160,047 Other receivables (7,988) Other assets 1,715 Increase/(Decrease) in Liabilities: Accounts payable 3,827 Other payables 70,278 Payroll withholdings (92) Accrued liabilities (546) Net Cash Provided (Used) by Operating Activities 45,755 CASH FLOW FROM INVESTING ACTIVITIES Purchase of capital assets (4,509) Net change in certificates of deposit activity (19,897) Net Cash Provided (Used) by Investing Activities (24,406) Net Increase (Decrease) in Cash and Cash Equivalents 21,349 CASH AT BEGINNING OF YEAR 72,614 CASH AT END OF YEAR $ 93,963 See the Accompanying Notes to these Financial Statements. -5-

8 NOTES TO THE FINANCIAL STATEMENTS NOTE 1: SIGNIFICANT ACCOUNTING POLICIES AND ACTIVITIES Organization The Youth Volunteer Corps of America (YVCA) was incorporated as a Missouri not-for-profit corporation in YVCA was organized to create and increase volunteer opportunities to enrich America s youth, address community needs and develop a lifetime commitment to service. YVCA is primarily funded by a federal grant and contributions from foundations, corporations and individuals. YVCA is located in over 40 communities. YVCA recruits teams of diverse youth between the ages of 11 and 18 to perform service and learning projects in their communities. The projects address unmet needs of the community while promoting a lifetime ethic of service among young people. Basis of Accounting The financial records of YVCA are maintained on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America, whereby expenses are recognized when incurred and revenues are recognized when earned. Financial Statement Presentation YVCA has complied with Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. SFAS No. 117 requires that all not-for-profit organizations provide a statement of financial position, a statement of activities and a statement of cash flows. SFAS No. 117 also requires reporting amounts for the organization s total assets, liabilities and net assets in a statement of financial position and reporting any change in an organization s net assets in a statement of activities. The Statement requires classification of an organization s net assets and its revenues, expenses, gains and losses based on the existence or absence of donor-imposed restrictions. It requires that the amount for each of three classes of net assets (permanently restricted, temporarily restricted, unrestricted) be displayed in a statement of financial position and that the amounts of change in each of these classes of net assets be displayed in a statement of activities. Permanently Restricted Net Assets are those restricted by donors in perpetuity as endowments or irrevocable trusts. As of March 31, 2009, YVCA did not have permanently restricted net assets. Temporarily Restricted Net Assets are those gifts of cash and other assets which are stipulated by donors for specific operating purposes, special projects or for the acquisition or construction of land, buildings and equipment. See Note 4 for detail. Unrestricted Net Assets are those currently available at the discretion of the Board for use in YVCA s operations. -6-

9 NOTES TO THE FINANCIAL STATEMENTS NOTE 1: SIGNIFICANT ACCOUNTING POLICIES AND ACTIVITIES (continued) Financial Statement Presentation (continued) Net Assets Released from Restrictions are when a stipulated time restriction ends or purpose restriction is accomplished, the temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, cash held as deposits with local financial institutions and certificates of deposit with an original maturity of less than 90 days. Property and Equipment Office furniture and equipment are recorded at cost less accumulated depreciation. Depreciation expense is provided over the estimated useful lives ranging from five to seven years using the straight-line method. Leasehold Improvements Leasehold improvements are recorded at cost less accumulated depreciation. Amortization is provided over a four-year period consistent with the lease agreement. Inventory Inventory is recorded at cost and consists of YVCA and AmeriCorps clothing, hats, pins, buttons, brochures, videos and other promotional items which are sold to sites. Income Taxes YVCA is exempt from federal income taxes under Section 501 (c) of the Internal Revenue Control. YVCA is also exempt from state income taxes. Federal Form 990 is filed annually with the IRS. Contributions Donor restricted contributions are reported as an increase in unrestricted net assets if the restrictions expire in the fiscal year in which the contributions are recognized. All other donor-restricted contributions are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets. Uncollectible Receivables YVCA uses the allowance provision method to determine the uncollectible part of the living allowances billed to local chapter affiliates. The allowance is based on prior years experience and management s analysis of specific chapter affiliates. -7-

10 NOTES TO THE FINANCIAL STATEMENTS NOTE 1: SIGNIFICANT ACCOUNTING POLICIES AND ACTIVITIES (continued) Functional Expenses Expenses are charged to each program based on direct expenditures incurred. Functional expense which cannot readily be related to a specific program are charged to the various programs based upon hours worked, number of program staff or other reasonable methods for allocating YVCA s multiple function expenditures. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. NOTE 2: UNCONDITIONAL PROMISES RECEIVABLE As of March 31, 2009, unconditional promises receivable showed a net balance of $368,068. To be Collected <1 Year 1-5 Years Total Promises Receivable $246,767 $133,052 $395,734 Discount on Promises Receivable (15,915) (15,915) Allowance for Uncollectible Promises Promises Receivable - net $246,767 $117,137 $379,819 NOTE 3: CAPITAL ASSETS As of March 31, 2009, the cost and accumulated depreciation of office furniture and equipment was as follows: Office Furniture & Equipment $ 64,549 Leasehold Improvements 925 Less Accumulated Depreciation (61,924) Net Book Value $ 3,550 NOTE 4: TEMPORARILY RESTRICTED NET ASSETS As of March 31, 2009, YVCA had temporarily restricted net assets which were subject to the following restrictions on their use. Unconditional promises receivable in the amount of $379,819, which are expected to be collected in the next four years, are reported as temporarily restricted net assets. -8-

11 NOTES TO THE FINANCIAL STATEMENTS NOTE 4: TEMPORARILY RESTRICTED NET ASSETS (continued) 3/31/2008 Prior Period Donations Restrictions 3/31/2009 Balance Adjustment Received Released Balance Unconditional Promises Receivable $552,800 $(12,934) $ 0 $(160,050) $379,816 Affiliate Expansion Donation ,000 (7,000) 3,000 Total Restricted Net Assets $552,800 $(12,934) $10,000 $(167,050) $382,816 NOTE 5: FEDERAL GRANTS RECEIVABLE & REVENUE FROM FEDERAL GRANTS YVCA periodically draws down funds from the federal grant for its AmeriCorps Corporation for National Community Service (CNCS) Program. This program is based on an expenditure reimbursement basis and funds are drawn down after the expenditures are incurred. The funds drawn down are then recorded as revenue in the books of the organization. During the period ended March 31, 2009, the organization drew down funds in the amount of $662,077 and reported federal grants receivable in the amount of $86,664. NOTE 6: CASH MATCH FROM LOCAL SITES Participating local YVCs are required to match a percentage of the cost of AmeriCorp members that participate in their local YVC AmeriCorps program. As of March 31, 2009, YVCA had received a cash match from the local sites in the amount of $206,482. NOTE 7: OPERATING LEASE YVCA entered into a building lease agreement with the City of Roeland Park in July 1998 for 48 months. It included two option periods for successive periods of four years each. YVCA extended the lease for both periods with the final option period expiring on August 31, The following represents the minimum lease obligation for the next five years. Year Ending March 31, Building Lease 2010 $30, , $43,961-9-

12 NOTES TO THE FINANCIAL STATEMENTS NOTE 8: PRIOR YEAR ADJUSTMENTS A prior year reclassification entry was made to correct both the unrestricted and the restricted net assets balances as of the fiscal year ended March 31, This correction decreased temporarily restricted net assets by $12,934 and increased unrestricted net assets by $2,096. YVCA made adjustments to correct errors which occurred during the fiscal year ending March 31, These corrections were as follows: Correction of unrecorded revenue $ 500 (promises were made but unrecorded) Correction of unrecorded release of restrictions (13,434) (promises were received but unrecorded) Correction of unrecorded security deposit 2,096 Total prior year adjustments $ 10,