NURSES FOR NEWBORNS FOUNDATION FINANCIAL STATEMENTS JUNE 30, 2010

Transcription

1 NURSES FOR NEWBORNS FOUNDATION FINANCIAL STATEMENTS JUNE 30, 2010

2 Contents Page Independent Auditors Report Financial Statements Statement Of Financial Position...3 Statement Of Activities...4 Statement Of Functional Expenses Statement Of Cash Flows...7 Notes To Financial Statements Supplementary Information Independent Auditors Report On Supplementary Information...17 Schedule of Revenues, Support and Expenses - Tennessee...18 Schedule of Revenues, Support and Expenses - St. Louis...19 Schedule Of Visits...20

3 Independent Auditors Report Board of Directors Nurses for Newborns Foundation St. Louis, Missouri We have audited the accompanying statement of financial position of Nurses for Newborns Foundation (the Foundation), a not-for-profit organization, as of June 30, 2010, and the related statements of activities, functional expenses and cash flows for the year then ended. These financial statements are the responsibility of the Foundation s management. Our responsibility is to express an opinion on these financial statements based on our audit. The prior year summarized comparative information has been derived from the Foundation s 2009 financial statements, and, in our report dated December 9, 2009, we expressed an unqualified opinion on those financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform our audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Foundation as of June 30, 2010 and the changes in its net assets and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

4 Board of Directors Nurses for Newborns Foundation In accordance with Government Auditing Standards, we have also issued our report dated November 12, 2010 on our consideration of Nurses for Newborns Foundation s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audits. The financial statements include certain prior year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the Foundation s financial statements for the year ended June 30, 2009, from which the summarized information was derived. November 12, 2010 Page 2

5 STATEMENT OF FINANCIAL POSITION June 30, 2010 (With Summarized Information As Of June 30, 2009) Assets Current Assets Cash and cash equivalents (Note 2) $ 639,056 $ 1,126,356 Promises to give (Note 3) 265, ,110 Accounts receivable (net of allowance for doubtful accounts of $8,000 in 2010 and $51,000 in 2009) 187, ,985 Prepaid expenses 37,475 42,170 Other 3,008 3,008 Total Current Assets 1,132,579 1,677,629 Promises To Give - Long Term (Note 3) 3,750 98,311 Property And Equipment (Note 4) 109, ,262 Total Assets $ 1,245,540 $ 1,895,202 Liabilities And Net Assets Current Liabilities Accounts payable and accrued expenses $ 236,549 $ 347,118 Agency funds payable (Note 5) 12,465 14,996 Total Current Liabilities 249, ,114 Net Assets Unrestricted 685,153 1,072,593 Temporarily restricted (Note 9) 311, ,495 Total Net Assets 996,526 1,533,088 Total Liabilities and Net Assets $ 1,245,540 $ 1,895,202 See the accompanying notes to financial statements. Page 3

6 STATEMENT OF ACTIVITIES For The Year Ended June 30, 2010 (With Summarized Information For The Year Ended June 30, 2009) Temporarily Total Unrestricted Restricted Revenue And Support Contributions $ 994,216 $ 146,213 $ 1,140,429 $ 1,594,729 Government funds 2,061,380 2,061,380 2,138,747 Other contracts 297, , ,921 Special events (Note 10) 370, , ,893 Investment income 9,603 9,603 9,066 Other 1,103 1,103 (655) Net assets released from restrictions (Note 9) 295,335 (295,335) Total Revenue And Support 4,029,875 (149,122) 3,880,753 4,454,701 Expenses Program Services Bright Futures 1,050,085 1,050,085 1,005,536 Bridge to the Future 704, , ,983 Teen Parent 573, , ,455 Safe Beginnings 983, , ,498 Healthy Start 368, , ,759 Total Program Services 3,678,907 3,678,907 3,543,231 Supporting Services General and administrative 304, , ,828 Fundraising (Note 10) 434, , ,463 Total Expenses 4,417,315 4,417,315 4,305,522 Increase (Decrease) In Net Assets (387,440) (149,122) (536,562) 149,179 Net Assets - Beginning Of Year 1,072, ,495 1,533,088 1,383,909 Net Assets - End Of Year $ 685,153 $ 311,373 $ 996,526 $ 1,533,088 See the accompanying notes to financial statements. Page 4

7 STATEMENT OF FUNCTIONAL EXPENSES For The Year Ended June 30, 2010 (With Summarized Information For The Year Ended June 30, 2009) Program Services Supporting Services Bright Bridge To Teen Safe Healthy General And Total Futures The Future Parent Beginnings Start Administrative Fundraising Salaries $ 669,130 $ 439,118 $ 355,475 $ 627,309 $ 269,951 $ 177,059 $ 183,556 $ 2,721,598 $ 2,695,574 Contract labor 25,954 18,601 15,841 24,530 1,402 86,328 53,021 Employee benefits 60,917 39,014 31,583 55,734 22,084 15,996 16, , ,116 Mileage 39,369 25,837 20,915 36,909 12, , , ,396 Payroll taxes 54,187 35,561 28,788 50,802 21,212 14,411 15, , ,430 Advertising ,835 5,620 8,768 Bad debt expense 17,270 17,270 17,270 17,270 17,270 86,350 51,000 Cellular communications 17,692 11,609 9,398 16,584 3,199 3,005 3,005 64,492 59,355 Computer 2,197 1,870 1,605 1,744 1,683 5,040 14,139 11,349 Depreciation and amortization 7,050 5,591 6,093 7,232 8,127 2,909 37,002 49,856 Dues and subscriptions ,873 6,323 Equipment 7,222 6,386 5,854 6,252 1,642 4,422 31,778 31,916 Evaluation 4,608 Family assistance 36,823 27,943 20,111 33, ,300 79,061 Friends general expense 1,050 1, Insurance 15,037 9,869 7,989 14,098 3,470 13,697 6,735 70,895 73,943 Meals and entertainment 1, ,266 2,260 1,255 7,737 10,634 Miscellaneous 1, ,094 8, ,019 23,703 Balance Carried Forward 956, , , , , , ,860 3,860,384 3,707,303 See the accompanying notes to financial statements. Page 5

8 STATEMENT OF FUNCTIONAL EXPENSES (Continued) For The Year Ended June 30, 2010 (With Summarized Information For The Year Ended June 30, 2009) Program Services Supporting Services Bright Bridge To Teen Safe Healthy General And Total Futures The Future Parent Beginnings Start Administrative Fundraising Balance Brought Forward $ 956,512 $ 641,329 $ 523,025 $ 895,231 $ 353,034 $ 249,393 $ 241,860 $ 3,860,384 $ 3,707,303 Office supplies 3,692 3,423 2,500 3,914 2,896 4, ,447 26,977 Postage 1,714 1, ,608 3, ,704 12,924 Printing 2,757 1,809 1,464 2, ,599 14,418 16,370 Professional fees 24,015 15,759 12,757 22,514 26,773 2, , ,520 Rent 20,678 13,569 10,985 19,386 4,078 8,057 8,057 84,810 77,023 Repairs and maintenance 8,370 5,494 4,447 7, ,323 3,323 33,230 27,588 Seminars 1, ,411 2,540 1,280 8,523 9,357 Service charges ,271 7,116 7,111 Special events 164, , ,864 Taxes and license fees 2,129 1,728 1,051 1, ,696 5,817 Teaching aids , Telephone 5,232 3,431 2,777 4, ,142 2,145 21,453 22,120 Training 6,017 3,948 3,196 5,640 2, ,817 15,817 Travel 13,643 8,953 7,248 12,791 1,443 1,696 45,774 65,510 Utilities 2,433 1,598 1,294 2, ,449 11,715 Volunteer expense $ 1,050,085 $ 704,065 $ 573,193 $ 983,003 $ 368,561 $ 304,147 $ 434,261 $ 4,417,315 $ 4,305,522 See the accompanying notes to financial statements. Page 6

9 STATEMENT OF CASH FLOWS For The Year Ended June 30, 2010 (With Summarized Information For The Year Ended June 30, 2009) Cash Flows From Operating Activities Increase (decrease) in net assets $ (536,562) $ 149,179 Adjustments to reconcile increase (decrease) in net assets to net cash provided by (used in) operating activities: Loss on disposal of fixed assets 6,295 3,856 Depreciation and amortization 37,002 49,858 Changes in assets and liabilities: (Increase) decrease in promises to give and accounts receivable 147,616 (96,142) Decrease in prepaid expenses 4,695 1,508 Increase (decrease) in accounts payable and accrued expenses (110,569) 83,436 Increase (decrease) in agency funds payable (2,531) 282 Net Cash Provided By (Used In) Operating Activities (454,054) 191,977 Cash Flows From Investing Activities Proceeds from sale and maturities of investments 4,779 Purchases of property and equipment (33,246) (35,867) Net Cash Used In Investing Activities (33,246) (31,088) Net Increase (Decrease) In Cash And Cash Equivalents (487,300) 160,889 Cash And Cash Equivalents - Beginning Of Year 1,126, ,467 Cash And Cash Equivalents - End Of Year $ 639,056 $ 1,126,356 See the accompanying notes to financial statements. Page 7

10 NOTES TO FINANCIAL STATEMENTS June 30, Operations And Significant Accounting Policies Nurses for Newborns Foundation (the Foundation) is a not-for-profit Missouri corporation whose purpose is to provide education to parents of infant children and the skills necessary to provide positive parenting, thereby decreasing infant mortality and child abuse. The Foundation has two branches of operation. One branch is located in St. Louis, Missouri and the second is located in Nashville, Tennessee. Basis Of Presentation Financial statement presentation follows the recommendations of the Financial Accounting Standards Board for not-for-profit organizations by presenting assets and liabilities within similar groups and classifying them in ways that provide relevant information about their interrelationships, liquidity and financial stability. The Foundation 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 Foundation does not have any permanently restricted net assets. The financial statements include certain prior-year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the Foundation s financial statements for the year ended June 30, 2009, from which the summarized information was derived. Reclassifications Certain 2009 amounts have been reclassified, where appropriate, to conform to the financial statement presentation used in Page 8

11 Notes To Financial Statements (Continued) Estimates And Assumptions The preparation of 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, the disclosure of contingent 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 these estimates. Promises To Give Promises to give are stated at the amount management expects to collect from outstanding balances. Management has determined that an allowance for uncollectible promises to give is not necessary. Accounts Receivable Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. Property And Equipment Property and equipment are stated at cost if purchased and fair market value if contributed. Major renewals and betterments are charged to the property accounts while replacements, maintenance, and repairs, which do not improve or extend the lives of the respective assets, are charged to expense as incurred. Depreciation and amortization are computed on a straight-line basis over the estimated useful lives of the respective assets, which range from three to seven years. A capitalization policy of $1,000 has been established to record capital asset additions. Agency Funds Payable Agency funds payable represent the receipt of funds by the Foundation in its capacity as an intermediary or agent to agencies that prevent child abuse and neglect. Page 9

12 Notes To Financial Statements (Continued) Restricted And Unrestricted Revenue And Support The Foundation reports gifts of cash and other assets as unrestricted, temporarily restricted or permanently restricted, depending on the existence and/or nature of any donor restrictions. All donor-restricted support subject to donor stipulations that limit its use as restricted support is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose 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. When contributions are received in the same period that the corresponding restrictions are met, such amounts are shown as increases in unrestricted support on the statement of activities. Government Funds and Other Contracts Government funds and other contract revenue relates to obligations for the performance of specific program activities. Revenue is recognized as the Foundation meets its obligations under the contracts and agreements, and revenue is deferred when payments are received prior to performance of the designated program activities. Description Of Program Services And Supporting Activities The following program services and supporting activities are included in the accompanying financial statements: Program Services Includes those expenditures that enable the Foundation to fulfill its mission. The following programs have been implemented by the Foundation to meet this goal. Bright Futures The Bright Futures program serves families for whom poverty is the primary risk factor. In addition to assessment of the mother and baby, the nurse home visitor assesses for maternal depression, risk for domestic violence and risk for child abuse and neglect. Additionally, the nurse identifies resources for the family to contact to assist with meeting social-emotional and child care needs. Page 10

13 Notes To Financial Statements (Continued) Bridge To The Future The Bridge program serves at-risk families who have medically fragile babies. Medically fragile can include babies born prematurely, at low birth weight, diagnosed with Down Syndrome or other genetic disorders, or who have been exposed to drugs and/or alcohol prior to birth. The majority of these families are referred by hospital NICU and nursery staff. Teen Parent This program serves teen mothers, 19 or younger at the time of delivery. In addition to assessment and screening offered to clients in other Foundation programs, the nurse home visitor works with the teen mother on school, job, peer relationships and pregnancy planning. Safe Beginnings This program serves families headed by a parent or caregiver with intellectual or physical disabilities, or with a diagnosed mental illness. Some caregivers may be referred to this program by the nurse home visitor if she observes that the mother or primary caregiver has difficulty completing routine tasks including formula preparation and feeding, administration of medications or managing appointment schedules. Nurse home visitors will see clients in this program more frequently to allow additional time for teaching and observation of parenting skills program. Healthy Start The Foundation serves as the local provider for this national program which began in The program serves low-income, pregnant and parenting mothers in specified zip codes in the areas in which the Foundation currently provides services. The ultimate goal of this program is to reduce infant mortality. General And Administrative Includes the functions necessary to maintain an equitable employment program; ensure an adequate working environment; provide coordination and articulation of the Foundation s program strategy; secure proper administrative functioning of the Board of Directors; and manage the financial and budgetary responsibilities of the Foundation. Page 11

14 Notes To Financial Statements (Continued) Fundraising Provides the structure necessary to encourage and secure private financial support from corporations, foundations and individuals through fundraising events and other development activities. Expense Allocation Direct and indirect expenses are charged to program services and supporting activities on the basis of periodic time and expense studies. These studies are based on estimates of the square footage utilized by the various departments within the Foundation s facilities, as well as estimates of the time spent by the Foundation s employees in specific areas. 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 Foundation. Advertising Costs The Foundation s policy is to recognize advertising costs as the costs are incurred. Advertising expenses were $5,620 for the year ended June 30, Subsequent Events Management has evaluated subsequent events through November 12, 2010, the date which the financial statements were available for issue. Income Tax Status The Foundation qualifies as a tax-exempt organization, as defined in Section 501(c)(3) of the Internal Revenue Code and is, therefore, exempt from federal income taxes. On July 1, 2009, the Foundation adopted recently issued accounting rules for uncertain tax positions. These rules require financial statement recognition of the impact of a tax position if a position is more likely than not of being sustained on audit, based on the technical merits of the position. The rules also provide guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods, transition, and disclosure requirements for uncertain tax positions. The adoption of the new rules had no impact on the Foundation s financial statements. The Foundation s federal tax returns for tax years 2006 and later remain subject to examination by taxing authorities. Page 12

15 Notes To Financial Statements (Continued) 2. Cash And Cash Equivalents The Foundation considers all investments with a maturity of three months or less to be cash equivalents. The Foundation places all of its cash and cash equivalents with major financial institutions but has not limited the amount of credit exposure on its accounts. At times, cash balances were in excess of Federal Deposit Insurance Corporation (FDIC) limits. 3. Promises To Give As of June 30, 2010, promises to give are comprised of: Missouri Foundation for Health $ 183,535 United Way 66,924 Lutheran Foundation 19,000 $ 269,459 Promises to give are scheduled for collection as follows: Less than one year $ 265,709 One to five years 3,750 $ 269, Property and Equipment Property and equipment consists of: Office equipment $ 227,361 Leasehold improvements 107,657 Furniture and fixtures 47,670 Software 90, ,268 Less: Accumulated depreciation and amortization 364,057 $ 109,211 Depreciation and amortization charged to expense amounted to $37,002 in Page 13

16 Notes To Financial Statements (Continued) 5. Agency Transactions On September 5, 2007, the Foundation was one of four agencies awarded the five-year federal Healthy Hearts and Homes grant for approximately $400,000 per year. The Foundation is acting as the lead agency with two partners, Father Support Center and the St. Louis Healthy Marriage Coalition. As the lead agency, the Foundation is responsible for collecting the partners invoices each month and drawing on the federal money. As of June 30, 2010, the Foundation processed invoices of $137,898, of which $12,465 is recorded as agency funds payable. 6. Commitments And Contingencies Amounts received from grants or agencies are subject to audit and adjustments by the grantor or agencies. Any disallowed costs, including amounts already collected, may constitute a liability for the Foundation. The amounts, if any, of expenditures, which may be disallowed by the grantor, are recorded at the time that such amounts can be reasonably determined, normally upon notification from the grantor or agency. During the year ended June 30, 2010, no such adjustments were made. The Foundation leases office space and certain office equipment for its programs under various operating leases expiring in December Future minimum payments due over the remaining terms of the leases are as follows: Year Amount 2011 $ 71, , , ,949 $ 209,685 Expenses incurred under such agreements totaled approximately $85,000 for Page 14

17 Notes To Financial Statements (Continued) 7. Employee Benefit Plan The employees of the Foundation participate in a Simple IRA Plan. The Foundation s contributions are equal to the participating employee s contribution, not to exceed 3% of the participant s salary. During the year ended June 30, 2010, the Foundation s contributions totaled $27, Line Of Credit The Foundation has a line of credit with a local financial institution in Tennessee allowing for maximum borrowings up to $100,000. The line of credit is unsecured, and requires monthly payments of interest at 5.0% of the outstanding borrowings, with all outstanding interest and borrowings due at maturity on March 31, At June 30, 2010, there were no outstanding borrowings on the line of credit. 9. Net Assets At June 30, 2010, net assets have been temporarily restricted by time or purpose as follows: Missouri Foundation for Health $ 183,535 United Way 66,924 Lutheran Foundation 19,000 Wilson Foundation (TN) 39,914 Other 2,000 $ 311,373 Net assets were released from donor-imposed restrictions by incurring expenses satisfying the restricted purposes or by occurrence of other events specified by the following donors: United Way $ 69,318 Deaconess Foundation 54,009 Lutheran Foundation 43,000 Missouri Foundation for Health 120,983 Other 8,025 $ 295,335 Page 15

18 Notes To Financial Statements (Continued) 10. In-Kind Contributions The Foundation received goods valued at $86,565 for its fundraising activities for the year ended June 30, These contributions are included in fundraising expenses and special event revenues on the statement of activities. Page 16

19 Independent Auditors Report On Supplementary Information Our audits as of and for the years ended June 30, 2010 and 2009 were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The schedules of revenues, support and expenses for Tennessee and St. Louis and the schedule of visits are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information, which is the responsibility of the Foundation's management, has not been subjected to the auditing procedures applied in the audits of the basic financial statements, and accordingly, we express no opinion on it. November 12, 2010 Page 17

20 SCHEDULE OF REVENUES, SUPPORT AND EXPENSES - TENNESSEE For The Years Ended June 30, 2010 And Revenue And Support Contributions $ 359,719 $ 418,270 Government funds 361, ,077 Other contracts 97,170 Special events 45,336 79,145 Other 813 1,430 Total Revenue And Support 767, ,092 Expenses Salaries 482, ,618 Employee benefits 26,120 15,454 Mileage 34,113 27,692 Payroll taxes 42,984 37,731 Advertising Cellular communications 9,606 12,572 Computer 1,015 1,411 Depreciation and amortization 9,255 7,512 Dues and subscriptions Equipment Evaluation 594 Family assistance 2,945 5,008 Insurance 18,087 17,149 Meals and entertainment 1,379 1,200 Miscellaneous 7,591 15,889 Office supplies 3,710 3,662 Postage 1,324 1,026 Printing 1,093 1,641 Professional fees 1, Rent 42,060 37,600 Repairs and maintenance 9,430 4,803 Seminars Service charges Special events 17,395 17,914 Taxes and license fees 1, Teaching aids 54 Telephone 6,117 7,469 Training 12,902 9,333 Travel 3,273 5,897 Volunteer expense 107 Total Expenses 738, ,167 Excess (Deficiency) Of Revenue And Support Over Expenses $ 29,275 $ (27,075) See the accompanying independent auditors report on supplementary information. Page 18

21 SCHEDULE OF REVENUES, SUPPORT AND EXPENSES - ST. LOUIS For The Years Ended June 30, 2010 And Revenue And Support Contributions $ 780,710 $ 1,275,619 Government funds 1,699,720 1,934,010 Other contracts 297, ,749 Special events 325, ,747 Other 9,893 28,517 Total Revenue And Support 3,113,225 3,774,642 Expenses Salaries 2,238,953 2,204,958 Contract labor 86,328 53,021 Employee benefits 215, ,662 Mileage 103,187 97,705 Payroll taxes 177, ,699 Advertising 4,996 7,772 Bad debt expense 86,350 Cellular communications 54,886 46,782 Computer 13,124 9,937 Depreciation and amortization 27,747 42,344 Dues and subscriptions 2,596 6,123 Equipment 30,954 31,358 Evaluation 4,014 Family assistance 115,355 74,053 Friends general expense 1, Insurance 52,808 56,794 Meals and entertainment 6,358 9,435 Miscellaneous 5,428 7,812 Office supplies 17,737 23,315 Postage 8,380 11,898 Printing 13,325 14,729 Professional fees 103, ,845 Rent 42,750 39,423 Repairs and maintenance 23,800 22,785 Seminars 8,167 8,507 Service charges 6,455 6,796 Special events 146, ,950 Taxes and license fees 6,658 5,472 Teaching aids 1, Telephone 15,336 14,651 Training 8,915 6,484 Travel 42,501 59,613 Utilities 10,449 11,715 Volunteer expense Total Expenses 3,679,062 3,528,354 Excess (Deficiency) Of Revenue And Support Over Expenses $ (565,837) $ 246,288 See the accompanying independent auditors report on supplementary information. Page 19

22 SCHEDULE OF VISITS For The Years Ended June 30, 2010 And St. Louis 15,229 14,745 Tennessee 3,892 4,636 Total Visits 19,121 19,381 See the accompanying independent auditors report on supplementary information. Page 20