UNITED WAY OF AMARILLO & CANYON AND GUYON SAUNDERS RESOURCE CENTER

Transcription

1 AND GUYON SAUNDERS RESOURCE CENTER COMBINED FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR S REPORT March 31, 2015 and 2014

2 TABLE OF CONTENTS March 31, 2015 and 2014 INDEPENDENT AUDITOR S REPORT... 1 COMBINED FINANCIAL STATEMENTS Combined Statements of Financial Position... 4 Combined Statements of Activities... 5 Combined Statement of Functional Expenses, Combined Statement of Functional Expenses, Combined Statements of Cash Flows... 8 Notes to Combined Financial Statements... 9 SUPPLEMENTAL INFORMATION Combining Schedule of Financial Position Combining Schedule of Activities Combining Schedule of Functional Expenses, Combining Schedule of Functional Expenses, Combining Schedule of Cash Flows Schedule of Program Funding by Impact Area Administrative Expense Percentage Calculation Page

3 Board of Directors United Way of Amarillo & Canyon and Guyon Saunders Resource Center Amarillo, Texas Report on the Financial Statements INDEPENDENT AUDITOR S REPORT We have audited the accompanying combined financial statements of United Way of Amarillo & Canyon and Guyon Saunders Resource Center (collectively referred to as the Organization), a not-for profit organization, which comprise the combined statements of financial position as of March 31, 2015 and 2014, the related combined statements of activities, functional expenses and cash flows for the years then ended, and the related notes to the combined financial statements. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these combined 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 combined financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these combined financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the combined financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the combined financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the combined financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Organization s preparation and fair presentation of the combined 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 Organization 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 combined financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

4 United Way of Amarillo & Canyon and Guyon Sauders Resource Center Page 2 Opinion In our opinion, the combined financial statements referred to above present fairly, in all material respects, the financial position of the Organization as of March 31, 2015 and 2014, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Other Matter Our audits were conducted for the purpose of forming an opinion on the combined financial statements as a whole. The combining and other supplemental information is presented for purposes of additional analysis rather than to present the financial position, results of operations and cash flows of the individual companies and is not a required part of the combined 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 combined financial statements. The combining and other supplemental information has been subjected to the auditing procedures applied in the audits of the combined financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the combined financial statements or to the combined 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 combined financial statements as a whole. Johnson & Sheldon, PLLC Johnson & Sheldon, PLLC August 14, 2015

5 COMBINED FINANCIAL STATEMENTS

6 COMBINED STATEMENTS OF FINANCIAL POSITION March 31, 2015 and Assets Cash and cash equivalents $ 4,323,894 $ 4,526,156 Certificates of deposit 488, ,951 Pledges receivable due within one year, net of allowance for uncollectible pledges of $271,544 and $313,682 respectively 2,926,612 3,180,875 Bequest receivable 351,282 - Other receivables 179, ,609 Prepaid expenses 40,493 53,929 Property and equipment, net of accumulated depreciation and amortization of $1,748,303and $1,742,389, respectively 1,051,934 1,112,217 Board designated cash 677, ,218 Beneficial interest in assets held by Amarillo Area Foundation: Restricted 396, ,934 Unrestricted 122, ,101 Total Assets $ 10,558,632 $ 10,655,990 Liabilities and Net Assets Liabilities Accounts payable and accrued expenses $ 183,500 $ 357,741 Allocations payable 2,366,692 2,886,952 Due to designated organizations 607, ,447 Deferred revenues 42,519 49,009 Total Liabilities 3,200,570 3,899,149 Net Assets Unrestricted 6,283,774 5,697,689 Board designated 677, ,218 Total Unrestricted Net Assets 6,961,584 6,354,907 Temporarily restricted 396, ,934 Total Net Assets 7,358,062 6,756,841 Total Liabilities and Net Assets $ 10,558,632 $ 10,655,990 See accompanying notes and independent auditor's report 4

7 COMBINED STATEMENTS OF ACTIVITIES Years Ended March 31, 2015 and Changes in Unrestricted Net Assets Revenues and Support Gross campaign results $ 4,904,315 $ 5,193,078 Less donor designations (779,381) (831,180) Less provision for uncollectible pledges (317,831) (328,386) Net Campaign Revenues 3,807,103 4,033,512 Other contributions 195, ,302 Bequests 351,282 - Private and government grants 673, ,478 Service fee income 98, ,573 Investment income 23,676 42,986 Rental income 149, ,340 Other 217, ,732 Total Other Revenues 1,709,045 1,569,411 Net assets released from restrictions - 61,853 Total Revenues and Support 5,516,148 5,664,776 Expenses Program services: Gross funds awarded/distributed 3,114,369 3,761,732 Less donor designations (779,381) (831,180) Net Funds Awarded/Distributed 2,334,988 2,930,552 Other program services 1,363,409 1,531,117 Supporting services 1,161,511 1,161,705 United Way of America dues 49,563 54,080 Total Expenses 4,909,471 5,677,454 Increase (Decrease) in Unrestricted Net Assets 606,677 (12,678) Changes in Temporarily Restricted Net Assets Contributions 1,471 69,454 Net earnings on investments 6,927 3,101 Net assets released from restriction - (61,853) Increase (Decrease) in Temporarily Restricted Net Assets (5,456) 10,702 Increase (Decrease) in Net Assets 601,221 (1,976) Net Assets at Beginning of Year 6,756,841 6,758,817 Net Assets at End of Year $ 7,358,062 $ 6,756,841 See accompanying notes and independent auditor's report 5

8 COMBINED STATEMENT OF FUNCTIONAL EXPENSES Year Ended March 31, 2015 Other Program Services Guyon Saunders Supporting Services Community CYD Resource Management 211 Impact Center Total Fundraising and General Total 2015 Salaries $ 239,899 $ 183,535 $ 88,152 $ 74,748 $ 586,334 $ 363,070 $ 128,809 $ 491,879 $ 1,078,213 Payroll taxes 23,539 15,846 6,609 7,632 53,626 34,223 7,236 41,459 95,085 Employee benefits 23,973 16,644 9,831 1,504 51,952 36,139 7,888 44,027 95,979 Total Salaries and Related Benefits 287, , ,592 83, , , , ,365 1,269,277 Management Fees - 2,607 2,607 2,607 Campaign expenses ,810 2, , , ,202 Occupancy 1,979 7, , ,577 16,514 2,767 19, ,858 Specific assistance to individuals 34, ,584 68, ,907 Loaned executive expenses ,270-42,270 42,270 Sub-contractor expenses , , ,710 Training, travel and education 22,094 11,958 2,561-36,613 11,811 20,691 32,502 69,115 Office expenses 6,409 5,752 1,174-13,335 17,962 3,791 21,753 35,088 Rental and maintenance of equipment 17,239 14, ,219 58,190 25,042 5,728 30,770 88,960 Professional fees 6,897 4, ,674 18,233 8,779 27,012 38,686 Postage and shipping - 3, ,353 7, ,757 11,110 Volunteer recognition Local travel 1,406 1, ,776 2, ,827 5,603 Telephone 11,468 2,404-3,769 17,641 5,607 1,608 7,215 24,856 Miscellaneous expenses 10,599 1, ,795 1,581 34,053 35,634 47,429 Dues and subscriptions 1,885 2, ,613 (1,247) 1,214 (33) 4,580 Directors' & officers' liability insurance , ,661 2,583 3,682 Outsource Human Resources 10, , ,282 United Way of Texas dues ,017-24,017 24,017 Total Expenses Before Depreciation and Amortization 412, , , ,625 1,274, , ,311 1,130,385 2,405,022 Depreciation and amortization 5,267 11,492-72,013 88,772 25,859 5,267 31, ,898 Total Operating Expenses $ 417,905 $ 282,909 $ 301,957 $ 360,638 $ 1,363,409 $ 930,933 $ 230,578 $ 1,161,511 $ 2,524,920 See accompanying notes and independent auditor's report 6

9 COMBINED STATEMENT OF FUNCTIONAL EXPENSES Year Ended March 31, 2014 Other Program Services Guyon Saunders Supporting Services Community CYD Resource Management 211 Impact Center Total Fundraising and General Total 2014 Salaries $ 270,216 $ 162,272 $ 87,419 $ 91,268 $ 611,175 $ 410,932 $ 87,898 $ 498,830 $ 1,110,005 Payroll taxes 25,006 13,823 6,491 7,452 52,772 35,377 6,611 41,988 94,760 Employee benefits 27,983 12,427 11,370 1,443 53,223 33,631 14,036 47, ,890 Total Salaries and Related Benefits 323, , , , , , , ,485 1,305,655 Campaign expenses , , ,009 Occupancy 286 6, , ,937 15,710 2,130 17, ,777 Specific assistance to individuals 70, , , ,199 Loaned executive expenses ,012-54,012 54,012 Sub-contractor expenses , , ,183 Training, travel and education 21,623 11,543 2,092-35,258 16,777 32,212 48,989 84,247 Office expenses 4,868 8,147 1,355-14,370 23,919 2,760 26,679 41,049 Rental and maintenance of equipment 3,345 18, ,827 48,459 31,147 5,387 36,534 84,993 Professional fees 13,988 10, ,080 19,978 11,095 31,073 55,153 Postage and shipping 290 1, ,260 9, ,157 12,417 Volunteer recognition ,209-1,209 1,209 Local travel ,123 1, ,155 3,278 Telephone 11,146 2,576-3,070 16,792 4, ,942 22,734 Miscellaneous expenses 11, ,813 14,454 10,860 38,211 49,071 63,525 Dues and subscriptions ,318 1, ,779 4,097 Directors' & officers' liability insurance , ,628 2,550 3,649 United Way of Texas dues ,953-21,953 21,953 Total Expenses Before Depreciation and Amortization 463, , , ,810 1,454, , ,792 1,135,437 2,590,139 Depreciation and amortization 4,470 9,752-62,193 76,415 21,799 4,469 26, ,683 Total Operating Expenses $ 467,597 $ 260,588 $ 323,929 $ 479,003 $ 1,531,117 $ 952,444 $ 209,261 $ 1,161,705 $ 2,692,822 See accompanying notes and independent auditor's report 7

10 COMBINED STATEMENTS OF CASH FLOWS Years Ended March 31, 2015 and Cash Flows from Operating Activities Increase (Decrease) in net assets $ 601,221 $ (1,976) Adjustments to reconcile increase in net assets to net cash provided by operating activities: Depreciation and amortization 119, ,683 Provision for uncollectibles (42,138) 21,400 Unrealized gains on investments 7,088 (3,101) Realized gains on investments (10,619) (27,614) Reinvested interest on certificates of deposit (374) (586) (Increase) decrease in operating assets: Pledges receivable 296, ,731 Bequest receivable (351,282) - Other receivables (38,334) 24,842 Prepaid expenses 13,436 4,648 Increase (decrease) in operating liabilities: Accounts payable and accrued expenses (184,768) 203,830 Allocations payable (520,260) 12,629 Due to designated organizations 2,412 (150,353) Deferred revenues (6,490) 5,058 Net Cash Provided by (Used for) Operating Activities (113,809) 515,191 Cash Flows from Investing Activities Purchases of equipment and software (59,615) (251,112) Net retirements (additions) to investments (8,246) (14,030) Net Cash Used for Investing Activities (67,861) (265,142) Net Increase in Cash and Cash Equivalents (181,670) 250,049 Cash and Cash Equivalents, Beginning of Year 5,183,374 4,933,325 Cash and Cash Equivalents, End of Year $ 5,001,704 $ 5,183,374 See accompanying notes and independent auditor's report 8

11 NOTES TO COMBINED FINACIAL STATEMENTS March 31, 2015 and 2014 NOTE 1 - DESCRIPTION OF ORGANIZATION Organization The United Way, Inc., dba United Way of Amarillo & Canyon (United Way) is a not-for-profit organization that develops and distributes resources to address human service needs in Amarillo and Canyon, Texas. Through a workplace fund drive conducted primarily by volunteers, the United Way raises money from individuals and organizations to make it possible for services to be provided both by the United Way and other Amarillo and Canyon not-for-profit health and human services organizations. Virtually all of the United Way s funds are derived from contributions of residents and businesses in the Amarillo and Canyon area. Guyon Saunders Resource Center (the Center) was organized for the exclusive purpose of providing charitable services to individuals. The Center is a separate not-for-profit organization whose functions are described below. The majority of the Center s governing board is comprised of certain United Way officers and directors, which have overall responsibility for the operations and affairs of the Center. However, an oversight committee comprised of appointed members also exists to advise the boards of United Way and the Center. Through its operations, United Way conducts the following programs: 211 In 2003, United Way HelpLine became United Way s Texas, a public/private partnership of the United Way of Amarillo and Canyon and the Texas Health and Human Services Commission. As such, the United Way serves the top 26 counties of the Texas Panhandle as the Area Information Center providing free information and referrals to health and human services and community organizations. Community Impact The program reviews the stewardship of partner agencies and program funding requests of those agencies to determine funding recommendations in the context of the needs of the Amarillo and Canyon communities. Community Youth Development The Community Youth Development (CYD) program focuses on reducing the high incidence of violent juvenile crime in areas of Texas. Effective September 1, 2010, United Way became the new fiscal agent responsible for managing the Amarillo CYD program, focusing on the zip code. Guyon Saunders Resource Center The Center improves access to existing medical and social services to low income and homeless persons by housing several agencies. The Day Center for the homeless provides showers, laundry facilities, local telephones, storage of belongings, personal hygiene items and an address to receive mail thus acting as a home base. 9

12 NOTES TO COMBINED FINACIAL STATEMENTS March 31, 2015 and 2014 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Financial statement presentation follows the recommendations of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 958, Not-for-Profit Entities - Overall (ASC 958). Under ASC 958, 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. The Organization shows restricted contributions whose restrictions are met in the same reporting period as unrestricted support. Principles of Combination The accompanying combined financial statements include the accounts of United Way and the Center, both of which are under common control, collectively referred to as the Organization. All material intercompany balances and transactions have been eliminated in the combination. Fiscal Years United Way operates with a fiscal year ending March 31. The Center operates on a calendar year basis. These financial statements include the years ending March 31, 2015 and 2014 for United Way and the years ending December 31, 2014 and 2013 for the Center. Cash Equivalents The Organization considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Annual Campaign Contributions United Way conducts an annual fund-raising campaign in the fall to support programs in the subsequent year. Campaign contributions are used to fund agency allocations and the Organization s programs and supporting services. Annual fall campaign results are reduced by pledges or cash collected on behalf of others, or pledged (designated) to a specific organization and by a provision for uncollectible pledges. Net campaign results are reflected as an increase to unrestricted net assets, as campaign monies are released from restriction on the first day of the new calendar year which is before the end of the fiscal year. Cash or pledges received in the current calendar year for the prior year campaign are recorded as unrestricted as they have no time restrictions. The Organization provides for probable uncollected amounts through a charge to earnings and a credit to an allowance based on a three-year historical average. Balances that are still outstanding after three years are written off through a charge to the allowance and a credit to pledges receivable. 10

13 NOTES TO COMBINED FINACIAL STATEMENTS March 31, 2015 and 2014 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Other Contributions Contributions, grants received and unconditional promises to give are measured at their fair values and are reported as revenues and support. The Organization reports gifts of cash and other assets as restricted support if they are received with donor stipulations that limit the use of the donated assets, or if they are designated as support for future periods. When a donor restriction expires, that is when a stipulated time restriction ends or the purpose for the 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. Donor-restricted contributions and grants whose restrictions are completely satisfied in the same reporting period are reported as unrestricted support. The Organization reports donations of goods and equipment as unrestricted support unless explicit donor stipulations specify how the donated assets must be used. Gifts of long-lived assets with explicit restrictions that specify how the assets are to be used and gifts of cash and other assets that must be used to acquire long-lived assets are reported as restricted support. Absent explicit donor stipulations regarding how long-lived assets must be maintained, the Organization reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in service. Donated services are recognized if such service enhances the value of the Organization s non-financial assets. The value is also recognized if the service provided required specialized skills, the provider of the service possessed such skills and the service would have been purchased by the Organization if it had not been donated. Donated goods and services are recorded at their estimated fair market value as of the date of the gift or service. During the fiscal years ended March 31, 2015 and 2014, in-kind donations, the majority of which was multimedia and advertising, totaled approximately $163,900 and $158,000, respectively, which are recorded in other contributions in the statement of activities. Investment Earnings The Organization holds investments that are classified as temporarily restricted net assets. Interest and dividend income, as well as realized gains and losses on investments classified as temporarily restricted are recorded as increases and decreases in unrestricted net assets in the period in which they occur. Property and Equipment The Organization capitalizes all long-lived assets with values in excess of $1,000. No assets have been pledged as collateral. Land, buildings and equipment are stated at cost, or if acquired by gift, at the estimated fair market value at the date of gift. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets. Estimated useful lives are as follows: Building and improvements Furniture and equipment Computer software years 3-15 years 3 years 11

14 NOTES TO COMBINED FINACIAL STATEMENTS March 31, 2015 and 2014 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Functional Allocation of Expenses The costs of providing the various programs and other activities have been summarized on a functional basis in the combined statements of activities. Costs are allocated between development, general and administrative, or grants and program services based on evaluations of the related activities. General and administrative 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. Fair Value Measurements The Organization accounts for investments under FASB ASC Topic 958, Not-forProfit Entities - Overall (ASC 958). Under ASC 958, investments in marketable securities with readily determinable fair values and all investments in debt securities are valued at their fair values in the statement of financial position. Unrealized gains and losses are included in the change in net assets. The Organization complies with FASB ASC Topic 820 Fair Value Measurements and Disclosures - Overall (ASC 820), which defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurement. Accounting Standards Update (ASU ) amended ASC 820 to converge the fair value measurement guidance in United States Generally Accepted Accounting Principles and International Financial Reporting Standards. ASU clarifies the application of existing fair value measurement requirements, changes certain principles in ASC 820 and requires additional fair value disclosures. ASU became effective for the Organization on January 1, 2012 and, aside from new disclosures included in Note 10 - Fair Value Measurements, did not have a significant impact on the Organization s combined financial statements. Concentration of Credit Risk The Organization maintains its cash in bank deposit accounts which are insured by the Federal Deposit Insurance Corporation up to certain limits. From time to time, the Organization may have balances in bank accounts which exceed the federally insured limits. The Organization does not anticipate any loss associated with balances in excess of the federally insured limits. Use of Estimates The preparation of combined financial statements in conformity with accounting principles generally accepted in the United States of America 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 combined financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Federal Income Taxes The Organization is exempt from federal income tax under section 501(a) as an organization described in section 501(c)(3) of the Internal Revenue Code (the Code), and has been determined not to be a private foundation under section 509(a) of the Code. As a result, income taxes are not included in the accompanying combined financial statements. 12

15 NOTES TO COMBINED FINACIAL STATEMENTS March 31, 2015 and 2014 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Federal Income Taxes (continued) The Organization complies with FASB ASC Topic 740, Accounting for Uncertainty in Income Taxes (ASC 740), which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under this guidance, the Organization may recognize the tax benefit from an uncertain tax position only if it is more-likely-than-not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The guidance on accounting for uncertainty in income taxes also addresses de-recognition, classification, interest and penalties on income taxes, and accounting in interim periods. Management evaluated the Organization s tax positions and concluded that the Organization had taken no uncertain tax positions that require adjustment to the combined financial statements to comply with the provisions of this guidance. With few exceptions, the Organization is no longer subject to income tax examinations by the U.S. federal tax authorities for years ending before Subsequent Events The Organization has evaluated subsequent events through August 14, 2014, the date the financial statements were issued. Agency Transactions The Organization acts as an agent for the collection and distribution of Interfaith Campaign for the Homeless (Interfaith) donations. These donations are separate and apart from the Organization s annual campaign drive. Interfaith donations collected but not yet paid at March 31, 2015 and 2014 were $91,249 and $124,282, respectively, and are included in both cash and accounts payable in the Combined Statements of Financial Position. NOTE 3 - RETIREMENT PLAN Eligible employees of the Organization are covered by a simplified employee pension plan, which is administered by John Hancock Retirement Plan Services. Retirement plan contributions included in employee benefits for the years ended March 31, 2015 and 2014 were $28,772 and $20,280, respectively. There is no obligation for an amount in excess of the annual contribution. NOTE 4 - HARRINGTON FOUNDATION AGREEMENT In July 1988, United Way entered into an agreement with the Don and Sybil Harrington Foundation (the Harrington Foundation) whereby the United Way would receive 3% of the Foundation s annual net income available for distribution. For the years ended March 31, 2015 and 2014, the United Way received $36,660 and $36,660, respectively, which is included in other income in the Combined Statements of Activities 13

16 NOTES TO COMBINED FINACIAL STATEMENTS March 31, 2015 and 2014 NOTE 5 - PROPERTY AND EQUIPMENT A building at 2207 Line Avenue, valued originally at approximately $67,000, was donated to the United Way by the City of Amarillo in The deed conveying this property contains a reversionary clause to be effective if the property should cease to be used by the United Way. Property and equipment is summarized as follows at year end: 2015 Tyler Street United Resource Combined Way Center Total Land $ 25,000 $ 41,797 $ 66,797 Buildings 359,331 1,669,288 2,028,619 Furniture and equipment 248, , ,581 Software and computers 326, ,212 Parking lot improvements - 58,028 58, ,376 1,881,861 2,841,237 Less accumulated depreciation and amortization (683,306) (1,105,997) (1,789,303) Net property and equipment $ 276,070 $ 775,864 $ 1,051, Tyler Street United Resource Combined Way Center Total Land $ 25,000 $ 41,797 $ 66,797 Buildings 343,379 1,641,320 1,984,699 Furniture and equipment 249, , ,378 Software and computers 342, ,645 Parking lot improvements - 58,028 58,028 Construction in progress - 43,059 43, ,164 1,894,442 2,854,606 Less accumulated depreciation and amortization (682,964) (1,059,425) (1,742,389) Net property and equipment $ 277,200 $ 835,017 $ 1,112,217 Depreciation and amortization expense for the years ended March 31, 2015 and 2014 was $119,898 and $102,683, respectively. 14

17 NOTES TO COMBINED FINACIAL STATEMENTS March 31, 2015 and 2014 NOTE 6 - BENEFICIAL INTEREST IN ASSETS During 1982, a grant for $75,000 was received from the Harrington Foundation. The grant was conditional on the United Way matching the grant and establishing an investment fund with the Amarillo Area Foundation and is restricted for projects which strengthen the infra-structure, such as improvements and technology. The temporarily restricted balance of this fund as of March 31, 2015 and 2014 was $240,716 and $244,393, respectively. During 1993, a fund was established with the Amarillo Area Foundation in order to receive contributions from area churches that can be distributed to the Center for building repairs and improvements. The temporarily restricted balance of this fund as of December 31, 2014 and 2013 was $67,138 and $66,977, respectively. During 2003, the United Way established another investment fund with the Amarillo Area Foundation for the purpose of obtaining gifts or commitments to endow an annual gift through the annual campaign. As of March 31, 2015 and 2014, the temporarily restricted balance of this fund was $88,624 and $90,564, respectively. Both United Way and the Center have granted variance power to Amarillo Area Foundation whereby the Board of Directors of the Amarillo Area Foundation may modify the terms and conditions of the above beneficial interests at its sole discretion. NOTE 7 - NET ASSETS At March 31, 2015, the Executive Board of the United Way had designations of $636,261 of its unrestricted net assets to be used for community impact programs. The oversight committee of Tyler Street Resource Center also had designations of $20,655 of its unrestricted net assets to be used for a reserve for equipment repairs or replacement, $5,386 for HVAC repairs and $15,508 to be used for roof repairs. At March 31, 2015 and 2014, total Board designated net assets for the Organization totaled $677,810 and $657,218, respectively. NOTE 8 - LEASES The Center is the lessor of a building in downtown Amarillo with various operating leases which expire in December 2015, all of which automatically renew for successive calendar year periods under the same terms and conditions. The leases are short-term, month-to-month agreements that may be cancelled with 30 days notice. The property and certain equipment of the Center, as shown in Note 5, are held for lease at December 31,

18 NOTES TO COMBINED FINACIAL STATEMENTS March 31, 2015 and 2014 NOTE 9 - RELATED PARTY TRANSACTIONS United Way acts as the Principal Combined Fund Organization for the Amarillo and Canyon Combined Federal Campaign and the State Employees Charitable Campaign. During the years ended March 31, 2015 and 2014, these campaigns were charged approximately $33,257 and $32,772, respectively, in donor designation fees for campaign and administrative support provided by the United Way, which is included in service fee income in the statement of activities. From time to time, the Organization purchases goods or services from entities affiliated with various committee members or volunteers. Management believes all of these transactions have been conducted on an arm s length basis and no preferential treatment has been afforded the Organization by the vendors. NOTE 10 - FAIR VALUE MEASUREMENTS The Organization complies with FASB ASC Topic 820, Fair Value Measurements - Overall (ASC 820), which provides a framework for measuring fair value under generally accepted accounting principles. ASC 820 applies to all assets and liabilities that are being measured and reported on a fair value basis. As defined in ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Organization uses various methods including market, income and cost approaches. Based on these approaches, the Organization often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable inputs. The Organization utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the observability of the inputs used in the valuation techniques, the Organization is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Level 1 also includes U.S. Treasury and federal agency securities and federal agency mortgage-backed securities, which are traded by dealers or brokers in active markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or similar assets or liabilities. 16

19 NOTES TO COMBINED FINACIAL STATEMENTS March 31, 2015 and 2014 NOTE 10 - FAIR VALUE MEASUREMENTS (continued) Level 3: Unobservable inputs that are not corroborated by market data. Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. In determining the appropriate levels, the Organization performs a detailed analysis of the assets and liabilities that are subject to ASC 820. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs are classified as Level 3. The following methods and assumptions were used to estimate the fair value of each class of financial instruments: Investments are valued based on the underlying assets as follows: Based on respective share of pooled funds as reported by Amarillo Area Foundation. The table below presents the balances of assets measured at fair value on a recurring basis by level within the hierarchy. Fair Value Measurements Using Description 3/31/2015 (Level 1) (Level 2) (Level 3) Beneficial interests in assets held by Amarillo Area Foundation $ 518,812 $ - $ - $ 518,812 Fair Value Measurements Using Description 3/31/2014 (Level 1) (Level 2) (Level 3) Beneficial interests in assets held by Amarillo Area Foundation $ 507,035 $ - $ - $ 507,035 17

20 NOTES TO COMBINED FINACIAL STATEMENTS March 31, 2015 and 2014 NOTE 10 - FAIR VALUE MEASUREMENTS (continued) The changes in Level 3 assets measured at fair value on a recurring basis are summarized as follows: Balance at April 1 $ 507,035 $ 462,290 Contributions 1,201 7,764 Investment income 7,045 6,266 Realized gains 10,619 27,614 Unrealized gains (losses) (7,088) 3,101 Balance at March 31 $ 518,812 $ 507,035 Unrealized losses on Level 3 assets are included in net earnings on investments on the Statements of Activities. Process of Measuring Fair Value of Level 3 Assets The Controller, under the supervision of the Executive Committee, determines the fair value measurement of financial assets classified as Level 3. Quarterly investment statements are reviewed by the Controller to evaluate the reasonableness of the classification of Level 3 investments by Amarillo Area Foundation. 18

21 SUPPLEMENTAL INFORMATION

22 COMBINING SCHEDULE OF FINANCIAL POSITION March 31, 2015 (with comparative totals for 2014) Assets Guyon Saunders United Resource Way Center Total Eliminations Total Total Cash and cash equivalents $ 4,289,996 $ 33,898 $ 4,323,894 $ - $ 4,323,894 $ 4,526,156 Certificates of deposit 488, , , ,951 Pledges receivable due within one year, net of allowance for uncollectible pledges of $271,544 and $313,682 respectively 2,926,612-2,926,612-2,926,612 3,180,875 Bequest Receivable 351, , ,282 - Other receivables 217,887 15, ,942 (53,472) 179, ,609 Prepaid expenses 23,008 17,485 40,493-40,493 53,929 Property and equipment, net of accumulated depreciation and amortization of $1,789,303 and $1,742,389, respectively 276, ,864 1,051,934-1,051,934 1,112,217 Board designated cash 636,261 41, , , ,218 Beneficial interest in assets held by Amarillo Area Foundation: Restricted 329,340 67, , , ,934 Unrestricted 121, , , ,101 Total Assets $ 9,660,502 $ 951,602 $ 10,612,104 $ (53,472) $ 10,558,632 $ 10,655,990 Liabilities and Net Assets Liabilities Accounts payable and accrued expenses $ 175,412 $ 61,560 $ 236,972 $ (53,472) $ 183,500 $ 357,741 Allocations payable 2,366,692-2,366,692-2,366,692 2,886,952 Due to designated organizations 607, , , ,447 Deferred revenues ,719 42,519-42,519 49,009 Total Liabilities 3,150, ,279 3,254,042 (53,472) 3,200,570 3,899,149 Net Assets Unrestricted 5,544, ,636 6,283,774-6,283,774 5,697,689 Board designated 636,261 41, , , ,218 Total Unrestricted Net Assets 6,180, ,185 6,961,584-6,961,584 6,354,907 Temporarily restricted 329,340 67, , , ,934 Total Net Assets 6,509, ,323 7,358,062-7,358,062 6,756,841 Total Liabilities and Net Assets $ 9,660,502 $ 951,602 $ 10,612,104 $ (53,472) $ 10,558,632 $ 10,655,990 See independent auditor's report 20

23 COMBINING SCHEDULE OF ACTIVITIES Year Ended March 31, 2015 (with comparative totals for 2014) Guyon Saunders Resource Changes in Unrestricted Net Assets United Way Center Total Eliminations Total Total Revenues and Support Gross campaign results $ 4,904,315 $ - $ 4,904,315 $ - $ 4,904,315 $ 5,193,078 Less donor designations (779,381) - (779,381) - (779,381) (831,180) Less provision for uncollectible pledges (317,831) - (317,831) - (317,831) (328,386) Net Campaign Revenues 3,807,103-3,807,103-3,807,103 4,033,512 Other contributions 166,531 83, ,177 (54,867) 195, ,302 Bequest 351, , ,282 - Private and government grants 553, , , , ,478 Service fee income 98,574-98,574-98, ,573 Investment income 23,827 (151) 23,676-23,676 42,986 Rental income - 165, ,984 (16,741) 149, ,340 Other income 214,724 3, , , ,732 Total Other Revenues 1,408, ,797 1,780,653 (71,608) 1,709,045 1,569,411 Net assets released from restrictions ,853 Total Revenues and Support 5,215, ,797 5,587,756 (71,608) 5,516,148 5,664,776 Expenses Program services: Gross funds awarded/distributed 3,114,369-3,114,369-3,114,369 3,761,732 Less donor designations (779,381) - (779,381) - (779,381) (831,180) Net Funds Awarded/Distributed 2,334,988-2,334,988-2,334,988 2,930,552 Other program services 1,059, ,638 1,420,617 (57,208) 1,363,409 1,531,117 Supporting services 1,115,558 60,353 1,175,911 (14,400) 1,161,511 1,161,705 United Way of America dues 49,563-49,563-49,563 54,080 Total Expenses 4,560, ,991 4,981,079 (71,608) 4,909,471 5,677,454 Increase (Decrease) in Unrestricted Net Assets 655,871 (49,194) 606, ,677 (12,678) Changes in Temporarily Restricted Net Assets Contributions 1,471-1,471-1,471 69,454 Net earnings (loss) on investments (7,088) (161) (6,927) - (6,927) 3,101 Net assets released from restriction (61,853) Increase (Decrease) in Temporarily Restricted Net Assets (5,617) (161) (5,456) - (5,456) 10,702 Increase (Decrease) in Net Assets 650,254 (49,033) 601, ,221 (1,976) Net Assets at Beginning of Year 5,859, ,356 6,756,841-6,756,841 6,758,817 Net Assets at End of Year $ 6,509,739 $ 848,323 $ 7,358,062 $ - $ 7,358,062 $ 6,756,841 See independent auditor's report 21

24 COMBINING SCHEDULE OF FUNCTIONAL EXPENSES Year Ended March 31, 2015 Other Program Services United Way GSRC Supporting Services United Way GSRC Guyon Saunders Guyon Resource Saunders Community CYD Center Resource Management Management Impact Support Center Total Fundraising and General and General Total Eliminations Total Salaries $ 239,899 $ 183,535 $ 88,152 $ 30,579 $ 74,748 $ 616,913 $ 363,070 $ 98,230 $ 30,579 $ 491,879 $ (30,579) $ 1,078,213 Payroll taxes 23,539 15,846 6,609 2,852 7,632 56,478 34,223 4,384 2,852 41,459 (2,852) 95,085 Employee benefits 23,973 16,644 9,831 3,316 1,504 55,268 36,139 4,572 3,316 44,027 (3,316) 95,979 Total Salaries and Related Benefits 287, , ,592 36,747 83, , , ,186 36, ,365 (36,747) 1,269,277 Management fees ,607-14,400 17,007 (14,400) 2,607 Campaign expenses ,810 2, , , ,202 Occupancy 18,720 7, , ,318 16,514 2,767-19,281 (16,741) 165,858 Specific assistance to individuals 34, ,584 68, ,907 Loaned executive expenses , ,270-42,270 Sub-contractor expenses , , ,710 Training, travel and education 22,094 11,958 2, ,613 11,811 20,691-32,502-69,115 Office expenses 6,409 5,752 1, ,741 17,962 3, ,753 (406) 35,088 Maintenance of equipment 17,239 14, ,219 58,190 25,042 5,728-30,770-88,960 Professional fees 6,897 4, ,426 18,233 4,020 4,759 27,012 (752) 38,686 Postage and shipping - 3, ,353 7, ,757-11,110 Volunteer recognition Local travel 1,406 1, ,947 2, ,827 (171) 5,603 Telephone 11,468 2, ,769 17,641 5,607 1,608-7,215-24,856 Miscellaneous expenses 10,599 1, ,795 1,581 34,053-35,634-47,429 Dues and subscriptions 1,885 2, ,018 (1,247) (33) (405) 4,580 Directors' & officers' liability insurance , ,550 2,583 (71) 3,682 Outsourced Human Resources 10, , ,282 United Way of Texas dues , ,017-24,017 Total Expenses Before Depreciation and Amortization 429, , ,957 38, ,625 1,329, , ,273 58,438 1,144,785 (69,693) 2,405,022 Depreciation and amortization 5,267 11,492-1,915 72,013 90,687 25,859 3,352 1,915 31,126 (1,915) 119,898 Total Operating Expenses $ 434,646 $ 282,909 $ 301,957 $ 40,467 $ 360,638 $ 1,420,617 $ 930,933 $ 184,625 $ 60,353 $ 1,175,911 $ (71,608) $ 2,524,920 See independent auditor's report 22

25 COMBINING SCHEDULE OF FUNCTIONAL EXPENSES Year Ended March 31, 2014 Other Program Services Supporting Services United Way GSRC United Way GSRC Guyon Saunders Guyon Resource Saunders Community CYD Center Resource Management Management Impact Support Center Total Fundraising and General and General Total Eliminations Total Salaries $ 270,216 $ 162,272 $ 87,419 $ 29,847 $ 91,268 $ 641,022 $ 410,932 $ 58,051 $ 29,847 $ 498,830 $ (29,847) $ 1,110,005 Payroll taxes 25,006 13,823 6,491 2,724 7,452 55,496 35,377 3,887 2,724 41,988 (2,724) 94,760 Employee benefits 27,983 12,427 11,370 2,850 1,443 56,073 33,631 11,186 2,850 47,667 (2,850) 100,890 Total Salaries and Related Benefits 323, , ,280 35, , , ,940 73,124 35, ,485 (35,421) 1,305,655 Management fees ,400 14,400 (14,400) - Campaign expenses , , ,009 Occupancy 13,955 6, , ,606 15,710 2,130-17,840 13, ,777 Specific assistance to individuals 70, , , ,199 Loaned executive expenses , ,012-54,012 Sub-contractor expenses , , ,183 Training, travel and education 21,623 11,543 2, ,258 16,777 32,212-48,989-84,247 Office expenses 4,868 8,147 1, ,437 23,919 2, ,679 (67) 41,049 Rental and maintenance of equipment 3,345 18, ,827 49,199 31,147 4, ,534 (740) 84,993 Professional fees 13,988 10,092-1,546-25,626 19,978 5,549 5,546 31,073 (1,546) 55,153 Postage and shipping 290 1, ,260 9, ,157-12,417 Volunteer recognition , ,209-1,209 Local travel ,265 1, ,155 (142) 3,278 Telephone 11,146 2, ,070 16,855 4, ,942 (63) 22,734 Miscellaneous expenses 11, ,813 14,454 10,860 38,211-49,071-63,525 Dues and subscriptions ,318 1, ,779-4,097 Directors' & officers' liability insurance , ,517 2,550 (72) 3,649 United Way of Texas dues , ,953-21,953 Total Expenses Before Depreciation and Amortization 476, , ,929 38, ,810 1,506, , ,296 57,896 1,149,837 (38,782) 2,590,139 Depreciation and amortization 4,470 9,752-1,625 62,193 78,040 21,799 2,844 1,625 26,268 (1,625) 102,683 Total Operating Expenses $ 481,266 $ 260,588 $ 323,929 $ 39,676 $ 479,003 $ 1,584,462 $ 952,444 $ 164,140 $ 59,521 $ 1,176,105 $ (40,407) $ 2,692,822 See independent auditor's report 23

26 COMBINING SCHEDULE OF CASH FLOWS Year Ended March 31, 2015 (with comparative totals for 2014) Cash Flows from Operating Activities Guyon Saunders United Resource Way Center Total Eliminations Total Total Increase (Decrease) in net assets $ 650,254 $ (49,033) $ 601,221 $ - $ 601,221 $ (1,976) Adjustments to reconcile increase (decrease) in net assets to net cash provided by operating activities: Depreciation and amortization 47,885 72, , , ,683 Increase (Decrease) Provision for uncollectibles (42,138) - (42,138) - (42,138) 21,400 Unrealized gains on investments 7,088-7,088-7,088 (3,101) Realized losses (gains) on investments (10,619) - (10,619) - (10,619) (27,614) Reinvested interest on certificates of deposit (374) - (374) - (374) (586) (Increase) decrease in operating assets: Pledges receivable 296, , , ,731 Bequest receivable (351,282) - (351,282) - (351,282) - Other receivables (43,640) 5,306 (38,334) - (38,334) 24,842 Prepaid expenses 13,822 (386) 13,436-13,436 4,648 Increase (decrease) in operating liabilities Accounts payable and accrued expenses (51,855) (132,913) (184,768) - (184,768) 203,830 Allocations payable (520,260) - (520,260) - (520,260) 12,629 Due to designated organizations 2,412-2,412-2,412 (150,353) Deferred revenues (5,442) (1,048) (6,490) - (6,490) 5,058 Net Cash Provided by (Used for) Operating Activities (7,748) (106,061) (113,809) - (113,809) 515,191 Cash Flows from Investing Activities Purchases of equipment and software (46,755) (12,860) (59,615) - (59,615) (251,112) Net retirements (additions) to investments (7,954) (292) (8,246) - (8,246) (14,030) Net Cash Used for Investing Activities (54,709) (13,152) (67,861) - (67,861) (265,142) Net Increase in Cash and Cash Equivalents (62,457) (119,213) (181,670) - (181,670) 250,049 Cash and Cash Equivalents, Beginning of Year 4,988, ,660 5,183,374-5,183,374 4,933,325 Cash and Cash Equivalents, End of Year $ 4,926,257 $ 75,447 $ 5,001,704 $ - $ 5,001,704 $ 5,183,374 See independent auditor's report 24

27 SCHEDULE OF PROGRAM FUNDING BY IMPACT AREA Years Ended March 31, 2015 and 2014 Multiple Year Funding/Community Impact Target Areas HEALTH Amarillo Family YMCA / Active Older Adults $ - $ 20,000 Amarillo Recovery from Alcohol & Drug Abuse / Amarillo Recovery from Alcohol & Drug Abuse 40,000 45,000 Amarillo Senior Citizens Association / Nutrition 9,000 12,000 American Red Cross, Texas Panhandle Chapter / Health and Safety 10,000 10,000 CASA (Court Appointed Special Advocate) / Child Advocacy 15,000 22,000 Catholic Charities of the Texas Panhandle - InterFaith Hunger Project 80,000 80,000 Epilepsy Foundation West Texas / Epilepsy Clinic 7,000 7,000 Family Support Services / Crisis Services - Family Violence 40,000 40,000 Family Support Services / Crisis Services - Sexual Assault 30,000 30,000 Jan Werner Adult Day Care Center / Adult Day Care 95,000 95,000 PRPC Area Agency on Aging / FoodNet 110, ,000 The Bridge / Child Advocacy 85,000 90,000 Wesley Community Center / Senior Program 13,000 - Total 534, ,000 EDUCATION Amarillo Family YMCA / Arts & Humanities - 35,000 Amarillo Family YMCA / Character Development - 40,000 Amarillo Family YMCA / Y Teens - 25,000 American Red Cross / Services to Armed Forces 16,940 16,940 Big Brothers Big Sisters of the TX Panhandle /Site Based Mentoring Program 10,000 10,000 Big Brothers Big Sisters of the TX Panhandle / Community Based Mentoring 52,000 52,000 Boy Scouts, Golden Spread Council / Cub Scouts 62,000 62,000 Boy Scouts, Golden Spread Council / Scoutreach 147, ,000 Boy Scouts, Golden Spread Council / Venturing/COPE Program 36,000 36,000 Buckner Children & Family Services, Transition Center 20,000 20,000 Family Support Services / Counseling 87,524 87,524 Family Support Services of Amarillo / Education 93,000 93,000 Girl Scouts of Texas Oklahoma Plains, Inc. / Girl Scout Middle School Program 133, ,903 Girl Scouts of Texas Oklahoma Plains, Inc. / Girl Scouts Brighter Futures - - Maverick Boys & Girls Club, Academic Success 83,000 83,000 Maverick Boys & Girls Club, Triple Play 96,000 96,000 Wesley Community Center / "Behind the Scenes" Youth Modeling Program 24,000 24,000 Total 861, ,367 INCOME Amarillo Area Adult Literacy Council / Amarillo Area Adult Literacy Council 26,500 26,500 Amarillo Family YMCA / Child Care - 255,000 American Red Cross / Disaster Services 64,500 64,500 Camp Fire USA Panhandle Plains Council / Kid's Care After School / Summer Program - 50,000 Canyon After School Program / Canyon After School Program 100, ,000 Childrens Learning Centers of Amarillo, Inc. / Low Income Child Care Assistance 280, ,000 Family Support Services / Veteran's Resource Center 26,000 - Goodwill of Northwest Texas / Computer Skills, Job Placement 150, ,000 Salvation Army / Emergency Financial Services 75,000 75,000 The Salvation Army / Emergency Shelter Operations 93,400 93,400 Total 815,400 1,094,400 See independent auditor's report 25

28 SCHEDULE OF PROGRAM FUNDING BY IMPACT AREA Years Ended March 31, 2015 and 2014 (continued) CHALLENGE GRANTS Amarillo Family YMCA / Arts & Humanities - 5,000 Amarillo Family YMCA/Y Teens - 5,000 Girl Scouts, Five Star Council / Girls at School Program - 15,000 Wesley Community Center / Senior Program - 14,000 Total - 39,000 COMMUNITY IMPACT GRANT Junior Achievement of the High Plains / Junior Achievement Program 30,000 30,000 Wesley Community Center / Wesley Wrestling Program 15,000 15,000 Total 45,000 45,000 AFTER SCHOOL PILOT PROGRAMS Camp Fire USA Panhandle Plains Council / Lee Elementary School - 77,482 Maverick Boys & Girls Club / Glenwood Elementary School 35,305 72, Texas / Specialist Parent Component - 14,508 Training - 12,196 Total 35, ,811 Youth Allocations 43,916 52,974 Schedule of Donor Designations Total Allocations $ 2,334,988 $ 2,930,552 Program Providers 217, ,081 Non-Program Providers 221, ,494 Combined Federal Campaign 121, ,030 State Employee Charitable Campaign 218, ,575 Total Designations $ 779,381 $ 831,180 See independent auditor's report 26

29 ADMINISTRATIVE EXPENSE PERCENTAGE CALCULATION Years Ended March 31, 2015 and Administrative Expense Fundraising expense $ 930,933 $ 952,444 Management and general 184, ,140 Less gift in-kind expense (139,420) (84,186) Total Administrative Expense $ 976,138 $ 1,032,398 Revenue and Other Support Unrestricted total revenue $ 5,215,959 $ 5,157,448 Donor designations 779, ,180 Provision for uncollectible 317, ,386 Less gift in-kind income (139,420) (84,186) Total Revenue and Other Support $ 6,173,751 $ 6,232,828 Administrative Expense Percentage 15.81% 16.56% See independent auditor's report 27