BETHESDA COMMUNITY MISSION, INC. FINANCIAL STATEMENTS DECEMBER 31, 2017

Transcription

1 BETHESDA COMMUNITY MISSION, INC. FINANCIAL STATEMENTS DECEMBER 31, 2017

2 Reviewed Financial Statements For the Year Ended December 31, 2017 TABLE OF CONTENTS Independent Accountant's Review Report Financial Statements Statement of Assets, Liabilities, and Net Assets - Modified Cash Basis Statement of Support, Revenue, and Expenses - Modified Cash Basis Statement of Functional Expenses - Modified Cash Basis Notes to Financial Statements

3 DURHAM NUNNERY POYNER & WALTERS PC CERTIFIED PUBLIC ACCOUNTANTS 1040 WEST MAIN STREET P.O. BOX 444 WAVERLY, TENNESSEE PHONE FAX INDEPENDENT ACCOUNTANT S REVIEW REPORT To the Board of Directors Bethesda Community Mission, Inc. Erin, Tennessee We have reviewed the accompanying financial statements of Bethesda Community Mission, Inc. (a nonprofit organization), which comprise the statement of assets, liabilities, and net assets modified cash basis as of December 31, 2017, and the related statements of support, revenue, and expenses modified cash basis and functional expenses modified cash basis for the year then ended, and the related notes to the financial statements. A review includes primarily applying analytical procedures to management s financial data and making inquiries of management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with the modified cash basis of accounting; this includes determining that the modified cash basis of accounting is an acceptable basis for the preparation of financial statements in the circumstances. Management is also responsible for 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. Accountant s Responsibility Our responsibility is to conduct the review engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. Those standards require us to perform procedures to obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the financial statements for them to be in accordance with the modified cash basis of accounting. We believe that the results of our procedures provide a reasonable basis for our conclusion. Accountant s Conclusion Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in accordance with the modified cash basis of accounting. Basis of Accounting We draw attention to Note A of the financial statements, which describes the basis of accounting. The financial statements are prepared in accordance with the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Our conclusion is not modified with respect to this matter. Durham, Nunnery, Poyner & Walters, P.C. Durham, Nunnery, Poyner & Walters, P.C. Certified Public Accountants February 18,

4 Statement of Assets, Liabilities, and Net Assets - Modified Cash Basis December 31, 2017 ASSETS CUREENT ASSETS Cash in bank - checking $ 43, PROPERTY AND EQUIPMENT Leasehold improvments 2, Furniture and equipment 11, , Less accumulated depreciation (2,210.32) TOTAL PROPERTY AND EQUIPMENT 11, TOTAL ASSETS $ 55, LIABILITIES AND NET ASSETS LIABILITIES $ - NET ASSETS Unrestricted 52, Temporarily restricted 3, TOTAL NET ASSETS 55, TOTAL LIABILITIES AND NET ASSETS $ 55, See accompanying notes and independent accountant's review report. -2-

5 Statement of Support, Revenues, and Expenses - Modified Cash Basis For the Year Ended December 31, 2017 PUBLIC SUPPORT AND REVENUE Temporarily Unrestricted Restricted Total Contributions $ 71, $ - $ 71, Grant income 44, , Net assets released from restrictions (914.54) - TOTAL PUBLIC SUPPORT AND REVENUE 116, (914.54) 115, FUNCTIONAL EXPENSES Program services Financial assistance 56, , Food pantry 6, , Management and general 32, , TOTAL FUNCTIONAL EXPENSES 95, , CHANGE IN NET ASSETS 21, (914.54) 20, NET ASSETS AT BEGINNING OF YEAR 30, , , NET ASSETS AT END OF YEAR $ 52, $ 3, $ 55, See accompanying notes and independent accountant's review report. -3-

6 Statement of Functional Expenses - Modified Cash Basis For the Year Ended December 31, 2017 Program Services Total Management Financial Food Program and Assistance Pantry Services General Total Benevolence Rent/housing assistance $ 4, $ - $ 4, $ - $ 4, Travel/gas cards Utilities - electric 45, , , Utilities - gas 1, , , Utilities - water 4, , , Financial assistance - other Backpack Buddy purchases Food purchases - 6, , , Food pantry - other Mobile food pantry - other Occupancy Insurance Utilities - electric , , Utilities - gas Utilities - water Utilities - telephone , , Repairs and maintenance Salaries , , Payroll taxes , , Licenses, permits and fees Office supplies Software fees Postage and delivery Legal & professional fees , , Depreciation , , Miscellaneous expense TOTAL EXPENSES $ 56, $ 6, $ 62, $ 32, $ 95, See accompanying notes and independent accountant's review report. -4-

7 Notes to Financial Statements December 31, 2017 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The accompanying financial statements have been prepared on the modified cash basis of accounting. That basis differs from accounting principles generally accepted in the United States of America primarily because the Organization has not recognized balances, and the related effects on the changes in net assets, or fees and contributions receivable and of accounts payable to vendors. Basis of Presentation 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. As of December 31, 2017, the Organization did not have any permanently restricted net assets. Nature of Activities Bethesda Community Mission, Inc. (the Organization) is a not-for profit organization that is a faith-based ministry organized for the purpose of providing assistance to persons experiencing an emergency or crisis situation. Food boxes are provided, depending on availability, to families once per month, with a limit of six food boxes a year per family. Financial assistance to pay basic necessities such as rent, utilities, etc, is available, when funds allow, twice annually per recipient. Concentration of Contributions or Grants Approximately 25% of the Organization s funding is provided from grants from other nonprofit organizations such as the United Way. The remaining funding is provided by donations from local businesses, churches, civic organizations, and individuals. Donated Goods The Organization receives donations of canned and other basic food items throughout the year. These items are distributed in the food boxes which are given away. As the Organization is merely acting as a conduit for distribution of the items, no revenues or expenses are recognized as a result of these donations. Donated Property and Equipment The City of Erin donates the use of the land and building utilized by the Organization to house its office and storage space. No amounts have been reflected in the financial statements for donated rent. The fair value of the use of the property is estimated to be $12, annually. Donated Services No amounts have been reflected in the financial statements for donated services. The Organization generally pays for services requiring specific expertise. Daily operation of the Organization is conducted entirely by individual volunteers. The Organization receives over 4,500 volunteer hours per year. Expense Allocation The costs of providing programs and other activities have been summarized on a functional basis in the Statement of Support, Revenue, and Expenses - Modified Cash Basis and in the Statement of Functional Expenses-Modified Cash Basis. Directly identifiable expenses are charged to programs and supporting services. Management and general expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the Organization

8 Notes to Financial Statements December 31, 2017 Income Taxes Bethesda Community Mission, Inc. has been recognized by the IRS as exempt from federal income taxes under IRC Section 501(C)(3), which qualifies it to accept charitable contributions from donors. Additionally, the Organization is subject to income tax on net income that is derived from business activities that are unrelated to its exempt purposes. We have determined that the Organization is not subject to unrelated business income tax and, accordingly, we have not filed an Exempt Organization Business Income Tax Return (Form 990-T) with the IRS. Therefore, no provisions for income taxes are made in the accompanying financial statements. The Organization s Form 990-EZ, Return of Organization Exempt from Income Tax, is subject to examination by the IRS, generally for three years after the date of filing. Property and Equipment and Depreciation Property and equipment are recorded at cost. Expenditures for repairs and maintenance are charged to expense as incurred, whereas renewals and betterments that extend the lives of property are capitalized. Depreciation is computed on the straight-line method over estimated useful lives. Restricted and Unrestricted Revenue Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire (that is, when a stipulated time restriction ends or purpose restriction is accomplished) in the reporting period in which the revenue is 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 and reported in the Statement of Support, Revenues, and Expenses - Modified Cash Basis as net assets released from restrictions. Use of Estimates Preparation of financial statements in conformity with the modified cash basis of accounting requires estimating some of the amounts reported. Actual results could differ from the estimates. Subsequent Events The Organization has evaluated subsequent events through February 18, 2018, the date the financial statements were available to be issued. As of February 18, 2018, the Organization is not aware of any events that have occurred subsequent to that date that would require disclosure in the financial statements