The Queens County Chapter of the American Institute of Architects

Transcription

1 AIA QUEENS The Queens County Chapter of the American Institute of Architects Minutes of Executive Committee Meeting Date: January 15, 2010 Time: Location: 12 2 pm Alba Ristorante & Pizzeri Queens Boulevard, Jamaica, NY Attendees: 4 Laura Heim Willy Zambrano Michael Cosentino Patrick Hammond Summary: Goals for New Year Responsibilities of each member of the Executive Committee Member Grassroots, AIA National, AIA State State Representation Budget Discussion and Approval Attach Budget Audit Results General Discussion Attach Audit Affiliations General Discussion PDC Current Situation. The idea of having 2 4 events per year was approved pending volunteers to serve on their board as representing AIA Queens. No one in the chapter had yet expressed interest despite requests. Department of Buildings EAR meetings Code Seminar Code and Zoning Committee AIA Presidents Group Interactive Map Preservation Committee Student Awards Housing Committee Again local NYC architecture schools requested to submit student housing projects. An April jury anticipated. Website and Facebook (will proceed with Website but not Facebook at this time) Acteva event registration implementation for keeping track of attendees and fees for events.

2 AIA QUEENS INC BUDGET FOR 2010 Ordinary income / Expense As of 12/31/08 As of 12/31/09 Actual 2010 Draft Budget INCOME Earned Income Dues AIA Members 17, , , Dues Engineers Dues Affiliate Members Total - Earned Income Unrestricted Contributions 17, , , Fund Raisers Meetings / Lectures 28, , , Code Seminar - All Day , Summer Event / Golf Outing 9, , Fall Event / Citi Field Tour /Event 8, Winter Event / Holiday Party 10, , , Total Fund Raisers 57, , , TOTAL INCOME 75, , , EXPENSES Donations Fund Raisers Expenses Meetings / Lectures Caterer 18, , , Wine Hall rental 3, , , Code Seminar - Caterer/Hall , Summer Event / Golf Outing 10, , Catering Hall Raffle Fall Event / Citi Field Tour / Event 6, Winter Event / Holiday Party Catering Hall/Food/Enterteinment 11, , , Raffle Printing and Reproduction Total Fund Raises Expenses 50, , , Gifts and Plaques Plaques & Awards 1, Miscellaneous Bank fees & services Charges Credit Card interest Finance Charge Decorations

3 Dues and Subscriptions Office Supplies 1, Membership Dues (ACNY)* 1, Marketing/Website , Parties and Social Events Printing and reproductions 1, Postage and Delivery Equipment Purchase/projector/laptop , Telephone Other/Credit card pay-off 1, , Total Miscellaneous 9, , , Networking Dining/meetings 2, , Non Employee Compensation Accountant , Audit - Accountant 0 0 5, Executive Director 10,875 1, Lawyer (pro-bono) Total Non Employee Compensation 11, , , Professional Development Grassroots Convention 2, , , AIA National Convention 2, , , AIA NY State Convention , , Total Professional Development 5, , , Round Table Student Design Award 2,500 2,500 2, Travel and Entertainment 1, TOTAL EXPENSES 83, , , NET ORDINARY SURPLUS -8, , , INVESTMENTS Oppenheimer Fund Gain or Loss on Investment 43, , ,000.00

4 JOSEPH A. ALBANO, C.P.A., P.C. CERTIFIED PUBLIC ACCOUNTANT 197 WELLINGTON ROAD - GARDEN CITY, NY TEL (516) FAX (516) jalbano@jaa-cpa.com Member of: American Institute of Certified Public Accountants New York State Society of Certified Public Accountants January 14, 2010 Laura Heim AIA, LEED AP President AIA Queens, Inc. c/o Willy L. Zambrano 410 Atlantic Avenue Freeport, NY Dear Laura: As per your request, enclosed please find financial statements for the years 2006 through 2008, reformatted to show investment income or loss separately in the statements. As per our meeting and discussion last week I would like to reiterate some of the major points and issues we discussed: Although we did perform an audit of the financial statements for the years 2006 through 2008, we were not able to issue an opinion on the financial statements because there was an insufficient amount of documentary evidence to support the expenses presented. Specifically; numerous expense invoices, contemporaneous documentation, proper authorization and minutes of board of directors meetings were not available or could not be located during our audit. This lack of supporting documentation correlated into 77% of unsupported expenses for 2006, and 51% of unsupported expenses for both 2007 and Most of the unsupported expenses had no documentation at all, others were merely s asking for checks to be cut and most importantly; the minutes of the Board of Directors, which could have proved authorization for some of the expenses, were either non-existent or unavailable. The dollar amount of expenses for entertainment/restaurants seemed rather unusual for an organization of your type and size and had no contemporaneous back-up explaining who was at the restaurant or the business purpose for the meal. During 2007 and 2008 payments were made to the Executive Director for services provided. Some of the payments were supported by an invoice and others weren t. In either case, any payments for services to an Executive Director should have been specifically approved by the Board of Directors. If such approval actually existed it was not documented or provided to us.

5 Some of the recommendations that I suggested to you were as follows: First, the Organization should adopt an annual budget which is approved by the Board of Directors. Second, minutes of all Board meetings should be kept, documented and distributed to all Board members. Third, all expenses incurred by Board members for restaurants should be charged on their personal credit cards and an expense report requesting reimbursement should be submitted. The expense report should signed by the submitter and then approved by the Executive Director or an officer of the Organization. Fourth, all expense invoices should be maintained and filed in such a manner that they can be located and provided as supporting documentation. Fifth, the Treasurer should not authorize any payments which lack an invoice or specific approval by the Board of Directors. These recommendations are not all inclusive, and were made as general observations after conducting our audits. A full set of recommendations is much beyond the scope of our engagement. Should you need any additional information or wish to discuss any other specific items, please feel free to contact me. Very truly yours, Joseph A. Albano, CPA

6 Financial Statements Year ended December 31, 2006 Joseph A. Albano, C.P.A., P.C. Certified Public Accountant

7 Financial Statements Year ended December 31, 2006 Table of Contents Page Independent Auditors' Report 1 Financial Statements Statement of Financial Position 2 Statement of Activities 3 Statement of Cash Flows 4 Statement of Functional Expenses 5 Notes to Financial Statements 6

8 JOSEPH A. ALBANO, C.P.A., P.C. CERTIFIED PUBLIC ACCOUNTANT 197 WELLINGTON ROAD - GARDEN CITY, NY TEL (516) FAX (516) jalbano@jaa-cpa.com Member of: American Institute of Certified Public Accountants New York State Society of Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Board of Directors AIA, Queens Inc. We were engaged to audit the accompanying statement of financial position of AIA, Queens Inc. as of December 31, 2006 and the related statements of activities and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. Detailed expense records and documentation have not been maintained and certain supporting data were not available for our audit. Therefore, we were not able to satisfy ourselves about the amounts of functional expenses for the year then ended (stated as $25,142). Because of the significance of the matters discussed in the preceding paragraph, the scope of our work was not sufficient to enable us to express, and we do not express, an opinion on the financial statements referred to in the first paragraph. Joseph A. Albano, C.P.A., P.C. Certified Public Accountants Garden City, NY August 12, 2009

9 Statement of Financial Position As at December 31, 2006 Assets Cash - Non Interest Bearing $ 5,669 Investments in Oppenheimer Funds 60,343 Total Assets $ 66,012 Liabilities and Net Assets Liabilities Credit Card Payable $ 410 Total Liabilities $ 410 Net Assets Unrestricted $ 65,602 Restricted - Total Net Assets 65,602 Total Liabilities and Net Assets $ 66,012 The accompanying notes are an integral part of these financial statements. 2

10 Statement of Activities Year ended December 31, 2006 Supported Unsupported Total Revenues Membership Dues $ 14,163 $ - $ 14,163 Fund Raisers - Meetings & Lectures 2,408-2,408 Fund Raisers - Boat Ride 4,303-4,303 Raffle Job Board Revenue Meetings Sponsorship 1,100-1,100 Reimbursed Expenses Revenue Share Refund Total Revenues 22,841-22,841 Functional Expenses $ 5,980 $ 19,162 $ 25,142 Increase (Decrease) in Net Assets before Investment Income $ (2,301) Investment Income Dividend Income 3,115 Unrealized Gain (Loss) on Investments 3,320 Increase (Decrease) in Net Assets $ 4,134 Net Assets - Beginning of Year 61,468 Net Assets - End of Year $ 65,602 The accompanying notes are an integral part of these financial statements. 3

11 Statement of Cash Flows Year ended December 31, 2006 Cash Flows from Operating Activities Change in Net Assets $ 4,134 Adjustments to Reconcile Change in Net Assets: (Decrease) Increase in: Credit Card Payable $ 313 Total Adjustments 313 Net Cash Provided by Operating Activities $ 4,447 Cash Flows from Investing Activities Increase (Decrease) in Marketable Securities $ (6,435) Net Cash Used (Provided) by Investing Activities (6,435) Net Increase (Decrease) in Cash & Cash Equivalents $ (1,988) Cash & Cash Equivalents - Beginning of Year 7,657 Cash & Cash Equivalents - End of Year $ 5,669 The accompanying notes are an integral part of these financial statements. 4

12 Statement of Functional Expenses Year ended December 31, 2006 Supported Unsupported Total Annual Dinner & Design Awards $ - $ 325 $ 325 Bank Fees Boat Ride - 4,447 4,447 Bounced Checks Catering - 3,710 3,710 Donations Dues & Subscriptions 1,440 1,275 2,715 Fund Raiser Expense - Meetings & Lectures Fund Raiser Expense - Catering Fund Raiser Expense - Hall Rental Fund Raiser Expense - Speaker Gifts Interest 5 5 Membership Dues Expense Miscellaneous Non Employee Compensation - Editor 600 1,650 2,250 Office Supplies Online Service Postage & Delivery Printing & Reproduction Prof. Development - AIA NY State Convention Professional Fees - Accounting Refund of Dues Reimbursement of Expenses 1,527 1,130 2,657 Restaurants Student Design Awards - 2,000 2,000 Telephone Travel & Entertainment - Meals Travel & Entertainment - Parking Travel & Entertainment - Travel Total Indirect Expenses $ 5,980 $ 19,162 $ 25,142 The accompanying notes are an integral part of these financial statements. 5

13 Notes to Financial Statements December 31, 2006 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Operations: AIA, Queens Inc. is a not-for-profit organization exempt from Federal income taxes under Section 501(c) (6) of the Internal Revenue Code. Its purpose is to promote the appreciation and understanding of architecture and design through increased public awareness. Financial Statement Presentation: Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. 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. Basis of Accounting: The financial statements are prepared on the accrual basis of accounting, in accordance with generally accepted accounting principles. Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of 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. Cash and Cash Equivalents: For purposes of the statement of cash flows, the Organization considers all highly liquid investments with an initial maturity of three months or less to be cash equivalents. NOTE B - CONCENTRATION OF CREDIT RISK: Financial instruments that potentially subject the Organization to concentrations of credit risk consist principally of cash accounts in financial institutions, which from time to time exceed the federal depository insurance coverage limit. NOTE C- FUNCTIONAL EXPENSES: Functional expenses have been presented in the financial statements as Supported if sufficient documentation was available to support the expense or Unsupported where no documentation or insufficient documentation existed to support the expense. 6

14 Financial Statements Year ended December 31, 2007 Joseph A. Albano, C.P.A., P.C. Certified Public Accountant

15 Financial Statements Year ended December 31, 2007 Table of Contents Page Independent Auditors' Report 1 Financial Statements Statement of Financial Position 2 Statement of Activities 3 Statement of Cash Flows 4 Statement of Functional Expenses 5 Notes to Financial Statements 6

16 JOSEPH A. ALBANO, C.P.A., P.C. CERTIFIED PUBLIC ACCOUNTANT 197 WELLINGTON ROAD - GARDEN CITY, NY TEL (516) FAX (516) jalbano@jaa-cpa.com Member of: American Institute of Certified Public Accountants New York State Society of Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Board of Directors AIA, Queens Inc. We were engaged to audit the accompanying statement of financial position of AIA, Queens Inc. as of December 31, 2007 and the related statements of activities and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. Detailed expense records and documentation have not been maintained and certain supporting data were not available for our audit. Therefore, we were not able to satisfy ourselves about the amounts of functional expenses for the year then ended (stated as $71,328). Because of the significance of the matters discussed in the preceding paragraph, the scope of our work was not sufficient to enable us to express, and we do not express, an opinion on the financial statements referred to in the first paragraph. Joseph A. Albano, C.P.A., P.C. Certified Public Accountants Garden City, NY August 12, 2009

17 Statement of Financial Position As at December 31, 2007 Assets Cash - Non Interest Bearing $ 5,355 Investments in Oppenheimer Funds 63,307 Total Assets $ 68,662 Liabilities and Net Assets Liabilities Credit Card Payable $ 2,778 Total Liabilities $ 2,778 Net Assets Unrestricted $ 65,884 Restricted - Total Net Assets 65,884 Total Liabilities and Net Assets $ 68,662 The accompanying notes are an integral part of these financial statements. 2

18 Statement of Activities Year ended December 31, 2007 Supported Unsupported Total Revenues Membership Dues $ 18,654 $ - $ 18,654 Fund Raisers - Meetings & Lectures 24,125-24,125 Fund Raisers - Boat Ride Fund Raisers - Golf Outing 15,260-15,260 Fund Raisers - Holiday Party 10,505-10,505 Meetings Sponsorship Reimbursed Expenses Revenue Share - - Refund Total Revenues 68,646-68,646 Functional Expenses $ 35,655 $ 35,673 $ 71,328 Increase (Decrease) in Net Assets before Investment Income $ (2,682) Investment Income Dividend Income 3,587 Unrealized Gain (Loss) on Investments (623) Increase (Decrease) in Net Assets $ 282 Net Assets - Beginning of Year 65,602 Net Assets - End of Year $ 65,884 The accompanying notes are an integral part of these financial statements. 3

19 Statement of Cash Flows Year ended December 31, 2007 Cash Flows from Operating Activities Change in Net Assets $ 282 Adjustments to Reconcile Change in Net Assets: (Decrease) Increase in: Credit Card Payable $ 2,368 Total Adjustments 2,368 Net Cash Provided by Operating Activities $ 2,650 Cash Flows from Investing Activities Increase (Decrease) in Marketable Securities $ (2,964) Net Cash Used (Provided) by Investing Activities (2,964) Net Increase (Decrease) in Cash & Cash Equivalents $ (314) Cash & Cash Equivalents - Beginning of Year 5,669 Cash & Cash Equivalents - End of Year $ 5,355 The accompanying notes are an integral part of these financial statements. 4

20 Statement of Functional Expenses Year ended December 31, 2007 Supported Unsupported Total Annual Holiday Party $ 11,874 $ - $ 11,874 Bank Fees Bounced Checks Catering 3,312-3,312 Dues & Subscriptions 397 1,440 1,837 Fund Raiser Expense - Catering 6,456 3,656 10,112 Fund Raiser Expense - Hall Rental 700 1,600 2,300 Fund Raiser Expense - Decorations Fund Raiser Expense - Gratuities Fund Raiser Expense - Golf Outing 2,257 10,592 12,849 Fund Raiser Expense - Holiday Party Gifts Interest Marketing 1, ,859 Membership Dues Expense Miscellaneous Non Employee Compensation - Editor Non Employee Compensation - Executive Director 4,650 2,850 7,500 Office Supplies Postage & Delivery Printing & Reproduction Prof. Development - AIA Grassroots Convention 1,182 4,079 5,261 Prof. Development - AIA NY State Convention Professional Fees - Accounting Restaurants 870 4,093 4,963 Telephone Travel & Entertainment - Car Rental Travel & Entertainment - Lodging - 2,375 2,375 Travel & Entertainment - Meals Travel & Entertainment - Parking Travel & Entertainment - Travel Total Indirect Expenses $ 35,655 $ 35,673 $ 71,328 The accompanying notes are an integral part of these financial statements. 5

21 Notes to Financial Statements December 31, 2007 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Operations: AIA, Queens Inc. is a not-for-profit organization exempt from Federal income taxes under Section 501(c) (6) of the Internal Revenue Code. Its purpose is to promote the appreciation and understanding of architecture and design through increased public awareness. Financial Statement Presentation: Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. 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. Basis of Accounting: The financial statements are prepared on the accrual basis of accounting, in accordance with generally accepted accounting principles. Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of 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. Cash and Cash Equivalents: For purposes of the statement of cash flows, the Organization considers all highly liquid investments with an initial maturity of three months or less to be cash equivalents. NOTE B - CONCENTRATION OF CREDIT RISK: Financial instruments that potentially subject the Organization to concentrations of credit risk consist principally of cash accounts in financial institutions, which from time to time exceed the federal depository insurance coverage limit. NOTE C- FUNCTIONAL EXPENSES: Functional expenses have been presented in the financial statements as Supported if sufficient documentation was available to support the expense or Unsupported where no documentation or insufficient documentation existed to support the expense. 6

22 Financial Statements Year ended December 31, 2008 Joseph A. Albano, C.P.A., P.C. Certified Public Accountant

23 Financial Statements Year ended December 31, 2008 Table of Contents Page Independent Auditors' Report 1 Financial Statements Statement of Financial Position 2 Statement of Activities 3 Statement of Cash Flows 4 Statement of Functional Expenses 5 Notes to Financial Statements 6

24 JOSEPH A. ALBANO, C.P.A., P.C. CERTIFIED PUBLIC ACCOUNTANT 197 WELLINGTON ROAD - GARDEN CITY, NY TEL (516) FAX (516) jalbano@jaa-cpa.com Member of: American Institute of Certified Public Accountants New York State Society of Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Board of Directors AIA, Queens Inc. We were engaged to audit the accompanying statement of financial position of AIA, Queens Inc. as of December 31, 2008 and the related statements of activities and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. Detailed expense records and documentation have not been maintained and certain supporting data were not available for our audit. Therefore, we were not able to satisfy ourselves about the amounts of functional expenses for the year then ended (stated as $83,086). Because of the significance of the matters discussed in the preceding paragraph, the scope of our work was not sufficient to enable us to express, and we do not express, an opinion on the financial statements referred to in the first paragraph. Joseph A. Albano, C.P.A., P.C. Certified Public Accountants Garden City, NY August 12, 2009

25 Statement of Financial Position As at December 31, 2008 Assets Cash - Non Interest Bearing $ 6,847 Investments in Oppenheimer Funds 43,608 Total Assets $ 50,455 Liabilities and Net Assets Liabilities Credit Card Payable $ 11,994 Total Liabilities $ 11,994 Net Assets Unrestricted $ 38,461 Restricted - Total Net Assets 38,461 Total Liabilities and Net Assets $ 50,455 The accompanying notes are an integral part of these financial statements. 2

26 Statement of Activities Year ended December 31, 2008 Supported Unsupported Total Revenues Membership Dues $ 17,961 $ - $ 17,961 Fund Raisers - Meetings & Lectures 28,257-28,257 Fund Raisers - Boat Ride Fund Raisers - Golf Outing 9,820-9,820 Fund Raisers - Holiday Party 10,365-10,365 Fund Raisers - Citi Field Tour 8,923-8,923 Reimbursed Expenses Revenue Share - - Refund Total Revenues 75,362-75,362 Functional Expenses $ 40,875 $ 42,211 $ 83,086 Increase (Decrease) in Net Assets before Investment Income $ (7,724) Investment Income Dividend Income 3,087 Unrealized Gain (Loss) on Investments (22,786) Increase (Decrease) in Net Assets $ (27,423) Net Assets - Beginning of Year 65,884 Net Assets - End of Year $ 38,461 The accompanying notes are an integral part of these financial statements. 3

27 Statement of Cash Flows Year ended December 31, 2008 Cash Flows from Operating Activities Change in Net Assets $ (27,423) Adjustments to Reconcile Change in Net Assets: (Decrease) Increase in: Credit Card Payable $ 9,216 Total Adjustments 9,216 Net Cash Provided by Operating Activities $ (18,207) Cash Flows from Investing Activities Increase (Decrease) in Marketable Securities $ 19,699 Net Cash Used (Provided) by Investing Activities 19,699 Net Increase (Decrease) in Cash & Cash Equivalents $ 1,492 Cash & Cash Equivalents - Beginning of Year 5,355 Cash & Cash Equivalents - End of Year $ 6,847 The accompanying notes are an integral part of these financial statements. 4

28 Statement of Functional Expenses Year ended December 31, 2008 Supported Unsupported Total Bank Fees $ 316 Donations Dues & Subscriptions Fund Raiser Expense - Citi Field Tour 1,124 5,842 6,966 Fund Raiser Expense - Golf Outing 4,245 6,644 10,889 Fund Raiser Expense - Holiday Party 8,679 2,566 11,245 Fund Raiser Expense - Hunting Trip - 1,100 1,100 Fund Raiser Expense - Catering 11,053-11,053 Fund Raiser Expense - Decorations Fund Raiser Expense - Hall Rental 2,650 1,000 3,650 Gifts - 1,091 1,091 Interest Miscellaneous Non Employee Compensation - Executive Director 3,300 7,575 10,875 Office Supplies 208 1,144 1,352 Parties & Social Events Postage & Delivery Printing & Reproduction - 1,438 1,438 Prof. Development - AIA Grassroots Convention 102 2,026 2,128 Prof. Development - AIA NY State Convention Prof. Development - Other Professional Fees - Accounting Restaurants 6,597 3,478 10,075 Student Design Awards - 2,500 2,500 Telephone Travel & Entertainment - Car Rental Travel & Entertainment - Lodging - 1,302 1,302 Travel & Entertainment - Fuel Travel & Entertainment - Parking Travel & Entertainment - Travel Total Indirect Expenses $ 40,875 $ 42,211 $ 83,086 The accompanying notes are an integral part of these financial statements. 5

29 Notes to Financial Statements December 31, 2008 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Operations: AIA, Queens Inc. is a not-for-profit organization exempt from Federal income taxes under Section 501(c) (6) of the Internal Revenue Code. Its purpose is to promote the appreciation and understanding of architecture and design through increased public awareness. Financial Statement Presentation: Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. 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. Basis of Accounting: The financial statements are prepared on the accrual basis of accounting, in accordance with generally accepted accounting principles. Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of 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. Cash and Cash Equivalents: For purposes of the statement of cash flows, the Organization considers all highly liquid investments with an initial maturity of three months or less to be cash equivalents. NOTE B - CONCENTRATION OF CREDIT RISK: Financial instruments that potentially subject the Organization to concentrations of credit risk consist principally of cash accounts in financial institutions, which from time to time exceed the federal depository insurance coverage limit. NOTE C- FUNCTIONAL EXPENSES: Functional expenses have been presented in the financial statements as Supported if sufficient documentation was available to support the expense or Unsupported where no documentation or insufficient documentation existed to support the expense. 6