THE MARY PARRISH CENTER FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR S REPORT. June 30, 2013 and 2012

Transcription

1 FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR S REPORT June 30, 2013 and 2012

2 Table of Contents Page Independent Auditor s Report Financial Statements: Statements of Financial Position... 3 Statements of Activities Statements of Functional Expenses Statements of Cash Flows... 8 Notes to Financial Statements

3

4

5 STATEMENTS OF FINANCIAL POSITION June 30, 2013 and ASSETS Current assets: Cash $ 28,616 $ 14,089 Grants and other receivables 23,391 23,296 Prepaid insurance and expenses 1,197 5,263 Total current assets 53,204 42,648 Fixed assets: Equipment 35,254 34,844 Furniture and apartment furnishings 8,620 8,445 Storage building 1,198 - Vehicle 4,000 4,000 49,072 47,289 Less: accumulated depreciation (40,414) (38,305) Total fixed assets 8,658 8,984 Other assets: Artwork 7,500 7,500 Total other assets 7,500 7,500 Total assets $ 69,362 $ 59,132 LIABILITIES AND NET ASSETS Current liabilities: Accounts payable $ - $ 800 Accrued expenses 4,132 4,690 Line of credit 20,368 21,791 Total current liabilities 24,500 27,281 Net assets: Unrestricted 42,195 30,298 Temporarily restricted 2,667 1,553 Total net assets 44,862 31,851 Total liabilities and net assets $ 69,362 $ 59,132 See accompanying notes. -3-

6 STATEMENT OF ACTIVITIES For the Year Ended June 30, 2013 Temporarily Unrestricted Restricted Total Revenues and support: Contributions In-kind $ 33,897 $ - $ 33,897 Foundations 7,850 35,000 42,850 Other 84,659 5,287 89,946 Grants - government - 143, ,424 Net assets released from restrictions 182,597 (182,597) - Total revenues and support 309,003 1, ,117 Expenses: Program services 241, ,768 Supporting services Management and general 20,874-20,874 Fundraising 34,464-34,464 Total expenses 297, ,106 Change in net assets 11,897 1,114 13,011 Net assets at beginning of year 30,298 1,553 31,851 Net assets at end of year $ 42,195 $ 2,667 $ 44,862 See accompanying notes. -4-

7 STATEMENT OF ACTIVITIES For the Year Ended June 30, 2012 Temporarily Unrestricted Restricted Total Revenues and support: Contributions In-kind $ 24,964 $ - $ 24,964 Foundations 3,369 40,894 44,263 Other 57,352 2,250 59,602 Grants - government - 174, ,541 Net assets released from restrictions 220,328 (220,328) - Total revenues and support 306,013 (2,643) 303,370 Expenses: Program services 259, ,459 Supporting services: Management and general 25,221-25,221 Fundraising 9,469-9,469 Total expenses 294, ,149 Change in net assets 11,864 (2,643) 9,221 Net assets at beginning of year 18,434 4,196 22,630 Net assets at end of year $ 30,298 $ 1,553 $ 31,851 See accompanying notes. -5-

8 STATEMENT OF FUNCTIONAL EXPENSES For the Year Ended June 30, 2013 Supporting Services Program Management Fund- Total Total Services and General raising Supporting Expenses Salaries $ 117,285 $ 8,043 $ 2,681 $ 10,724 $ 128,009 Transitional living costs 59, ,023 Victim expenses 19, ,865 Accounting fees (in-kind) 13,596 2, ,399 16,995 Fundraising (in-kind) ,902 16,902 16,902 Lunch fundraiser and supplies ,655 12,655 12,655 Other operating costs 8,866 1, ,217 11,083 Taxes - payroll 9, ,857 Rent - office 3, ,800 Other 425 4,209-4,209 4,634 Automobile expense 3, ,810 Audit fees 2, ,400 Depreciation 1, ,121 Telephone 1, ,005 Interest - 1,320-1,320 1,320 Travel $ 241,768 $ 20,874 $ 34,464 $ 55,338 $ 297,106 See accompanying notes. -6-

9 STATEMENT OF FUNCTIONAL EXPENSES For the Year Ended June 30, 2012 Supporting Services Program Management Fund- Total Total Services and General raising Supporting Expenses Salaries $ 130,186 $ 11,661 $ 3,024 $ 14,685 $ 144,871 Transitional living costs 55, ,919 Accounting fees (in-kind) 16,767 3,144 1,048 4,192 20,959 Victim expenses including $130 in-kind 17, ,201 Taxes - payroll 10, ,994 Other operating costs including $530 in-kind 7,932 4, ,307 13,239 Travel 4,462 1,115-1,115 5,577 Rent 3, ,800 Fundraising costs including $2,495 in-kind - - 3,944 3,944 3,944 Automobile expense 3, ,625 Audit fees 2, ,200 Depreciation 2, ,036 Telephone 1, ,938 Technology 1, ,900 Interest - 1,547-1,547 1,547 Employee training 1, ,399 $ 259,459 $ 25,221 $ 9,469 $ 34,690 $ 294,149 See accompanying notes. -7-

10 STATEMENTS OF CASH FLOWS For the Years Ended June 30, 2013 and Cash flows from operating activities: Change in net assets $ 13,011 $ 9,221 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 2,121 3,036 In-kind donations of assets - (850) Increase in grants and other receivables (95) (1,604) Decrease in prepaid insurance and other assets 4, Decrease in accounts payable (800) (491) Decrease in accrued expenses (558) (2,467) Net cash provided by operating activities 17,745 6,872 Cash flows from investing activities: Purchase of equipment (1,795) (5,184) Net cash used by investing activities (1,795) (5,184) Cash flows from financing activities: Proceeds from line of credit 2,500 8,300 Payments on line of credit (3,923) (8,164) Payments on note payable - (1,289) Net cash used by financing activities (1,423) (1,153) Net increase in cash 14, Cash at beginning of year 14,089 13,554 Cash at end of year $ 28,616 $ 14,089 See accompanying notes. -8-

11 NOTES TO THE FINANCIAL STATEMENTS June 30, 2013 and 2012 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization The Mary Parrish Center (the Organization ) was organized in 2000 and incorporated under the laws of the state of Tennessee as a nonprofit organization. The Organization was formed to provide streamlined access to services that promote the safety, self-sufficiency and well being of domestic violence survivors and their children by fostering a structured collaborative community response in the Davidson County area of Tennessee. The Organization added a new program for transitional housing in March 2009 to allow victims and families more time to recover. The major sources of funding for the Organization are contributions from private foundations, government grants, other organizations, and the public. Accounting Standards Codification The Financial Accounting Standards Board Accounting Standards Codification ( FASB ASC ) is the sole authoritative source of accounting principles generally accepted in the United States of America for periods ending after September 15, The FASB ASC incorporates all authoritative literature previously issued by a standard setter. Adoption of the FASB ASC had no effect on the Organization s assets, liabilities, net assets, revenue, expenses or change in net assets. Financial Statement Presentation The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Financial statement presentation follows the recommendations of the Financial Accounting Standards Board Accounting Standards Codification ( FASB ASC ). Accordingly, net assets of the Organization and changes therein are classified and reported as follows: Unrestricted net assets - net assets that are not subject to donor-imposed stipulations. Temporarily restricted net assets - net assets subject to donor-imposed stipulations that may or will be met, either by actions of the Organization and/or the passage of time. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statements of activities as net assets released from restrictions. Permanently restricted net assets - net assets subject to donor-imposed restrictions that they be maintained permanently by the Organization. The Organization presently has no permanently restricted net assets at June 30, 2013 and

12 NOTES TO THE FINANCIAL STATEMENTS June 30, 2013 and 2012 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Cash and Cash Equivalents The Organization considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Grants and Other Receivables Management considers grants and other receivables to be fully collectible. Accordingly, no allowance for doubtful accounts has been provided. Contributions Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence and/or nature of any donor restrictions. Temporarily restricted net assets are reclassified to unrestricted net assets upon satisfaction of the time or purpose restrictions. Donated Services The Organization receives a significant amount of donated services from unpaid volunteers and board members donating time to program services. No amounts have been recognized in the statements of activities because the criteria for recognition under the FASB ASC have not been satisfied. Contributions of donated services that create or enhance non-financial assets or that require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation, are recorded at their fair values in the period received. Use of Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that effect certain reported amounts of assets, liabilities, and disclosures. Accordingly, actual results could differ from those estimates. Fixed Assets Fixed assets are recorded at cost or, if donated, at their estimated fair value at the date of donation. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets, which range from five to seven years for furniture and equipment and over the shorter of the lease period or the useful life of the asset for leasehold improvements. -10-

13 NOTES TO THE FINANCIAL STATEMENTS June 30, 2013 and 2012 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Functional Allocation of Expenses Expenses have been allocated between program and supporting services based on estimates made by management. Income Taxes The Organization is a not-for-profit organization that is exempt from taxes on income other than unrelated business income under Section 501(c)(3) of the Internal Revenue Code and is classified as other than a private foundation. The Organization follows FASB ASC paragraphs 5 through 17, Income Taxes ( FASB ASC 740 ). The guidance clarifies the accounting for uncertainty in income taxes recognized in an entity s financial statements. This interpretation prescribes a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is defined as a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. FASB ASC 740 must be applied to all existing tax positions upon initial adoption. The Organization has no tax penalties or interest reported in the accompanying financial statements. Tax years that remain open for examination include years ended June 30, 2009 through June 30, Adoption of this pronouncement had no impact on the Organization s accompanying financial statements. Deferred Grant Revenue Deferred grant revenue, if any, represents amounts received, but not yet expended. Such amounts are recognized when the Organization incurs the related expense. Subsequent Events The Organization evaluated subsequent events through February 11, 2014 when these financial statements were available to be issued. Management is not aware of any significant events that occurred subsequent to the statement of financial position date but prior to the filing of this report that would have a material impact on the accompanying financial statements. -11-

14 NOTES TO THE FINANCIAL STATEMENTS June 30, 2013 and 2012 NOTE 2 DONATED MATERIALS, SERVICES, FACILITIES AND RELATED PARTY TRANSACTIONS The value of donated materials, services and facilities and the corresponding expenses included in the financial statements for the years ended June 30 are as follows: Support and revenue: In-kind contributions $ 33,897 $ 24,964 Expenses: Apartment furnishings $ - $ 850 Accounting fees 16,995 20,959 Fundraising 16,902 2,495 Victim expense/clothing Advertising/miscellaneous $ 33,897 $ 24,964 In-kind legal and professional services are received primarily from a board member. NOTE 3 FINANCING During 2012, the Organization maintained a revolving line of credit available at a local bank which was paid off in April 2013 through borrowings from another bank. The maximum borrowings were originally $25,000 under the line of credit, and later increased to $35,000. Interest accrued at a variable rate based on the prime rate plus 1%. The outstanding principal balance totaled $0 and $21,791 at June 30, 2013 and 2012, respectively. During 2013, the Organization obtained a new revolving line of credit available at a local bank to pay off a preexisting line of credit. This was a non-cash transaction for the Organization. The maximum borrowings are $35,000 and interest accrues at a 5.5% rate. The outstanding principal balance totaled $20,368 at June 30, 2013 and the line of credit matures March The Organization obtained financing from a local bank to purchase a copier for $7,436 in February The note required payments of $158 for 60 months and was paid off in January Interest accrued at 10%. The loan was secured by the equipment for which the loan was obtained. Insurance was financed through AICCO beginning November Interest accrued at 10.5% with payments of $303 due monthly. The note matured in August

15 NOTES TO THE FINANCIAL STATEMENTS June 30, 2013 and 2012 NOTE 4 TEMPORARILY RESTRICTED NET ASSETS Temporarily restricted net assets are available for the following purposes at June 30: Technology enhancement $ - $ 803 Salaries 2,667 - Therapy dog surgery $ 2,667 $ 1,553 Net assets were released from donor restrictions by incurring expenses satisfying the purpose specified by the donor as follows during the year ended June 30: Victim emergency fund $ 8,500 $ 8,000 Salaries, taxes and benefits 119, ,766 Apartment rent/utilities/furnishings/playground 52,450 76,789 Other 1,974 10,773 $ 182,597 $ 220,328 NOTE 5 CASH FLOW INFORMATION There were no income taxes paid for the years ended June 30, 2013 and Interest paid amounted to $1,320 and $1,547 for the years ended June 30, 2013 and 2012, respectively. NOTE 6 MAJOR CONTRIBUTORS In 2013, contributions from four grants represented 67% of total contributions. In 2012, contributions from four grants represented 66% of total contributions. A reduction of funding, should this occur, could have a significant impact on the Organization s activities. NOTE 7 OPERATING LEASES The Organization entered into an agreement on March 1, 2007 for copier maintenance at $63 per quarter for up to 3,000 copies. All copies above 3,000 are.15 cents per copy. Maintenance expense for the years ended June 30, 2013 and 2012 was $331 and $357, respectively, under this maintenance agreement. -13-

16 NOTE 7 OPERATING LEASES (continued) THE MARY PARRISH CENTER NOTES TO THE FINANCIAL STATEMENTS June 30, 2013 and 2012 The Organization began the transitional housing program in March 1, The Organization s office was moved to the transitional housing location in June The units are leased from an unrelated party at $350 per unit for 11 units for victims and $400 for the office. The original lease expired in September 2012, and currently, the lease is a month-to-month lease at the same rates. Rent expense totaled $51,000 and $51,000, respectively, for the years ended June 30, 2013 and NOTE 8 RELATED PARTIES During 2013, the Organization decided to move its bank accounts and secured a new revolving line of credit at a local bank with a balance owed of $20,368 at June 30, After the line of credit was obtained and the bank accounts were opened, an officer of this financial institution was elected to serve on the Organization s board of directors. -14-