NURSES FOR NEWBORNS FOUNDATION FINANCIAL STATEMENTS JUNE 30, 2012

Transcription

1 FINANCIAL STATEMENTS JUNE 30, 2012

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 Schedule Of Revenues, Support And Expenses - Tennessee Schedule Of Revenues, Support And Expenses - St. Louis Schedule Of Visits... 19

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 Organization), a not-for-profit organization, as of June 30, 2012, and the related statements of activities, functional expenses and cash flows for the year then ended. These financial statements are the responsibility of the Organization 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 Organization s 2011 financial statements, and, in our report dated October 26, 2011, 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 Organization as of June 30, 2012 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 October 3, 2012 on our consideration of the Organization 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 Organization s financial statements for the year ended June 30, 2011, from which the summarized information was derived. October 3, 2012 Page 2

5 STATEMENT OF FINANCIAL POSITION June 30, 2012 (With Summarized Information As Of June 30, 2011) Assets Current Assets Cash and cash equivalents (Note 2) $ 523,440 $ 438,155 Promises to give (Note 3) 75,719 88,254 Accounts receivable (net of allowance for doubtful accounts of $6,300 in 2012 and $15,000 in 2011) 291, ,996 Prepaid expenses 56,422 51,987 Other 3,008 3,008 Total Current Assets 950, ,400 Property And Equipment (Note 4) 173, ,726 Total Assets $ 1,124,329 $ 1,023,126 Liabilities And Net Assets Current Liabilities Accounts payable and accrued expenses $ 259,089 $ 253,164 Agency funds payable (Note 5) 15,470 19,914 Deferred revenues 76,763 86,632 Line of credit (Note 8) 11,968 12,084 Total Current Liabilities 363, ,794 Net Assets Unrestricted 677, ,541 Temporarily restricted (Note 9) 83, ,791 Total Net Assets 761, ,332 Total Liabilities And Net Assets $ 1,124,329 $ 1,023,126 See the accompanying notes to financial statements. Page 3

6 STATEMENT OF ACTIVITIES For The Year Ended June 30, 2012 (With Summarized Information For The Year Ended June 30, 2011) Temporarily Total Unrestricted Restricted Revenue And Support Contributions $ 840,516 $ 83,719 $ 924,235 $ 857,243 Federal, state and local grants 2,546,266 2,546,266 2,246,214 Other contracts 516, , ,046 Special events (Note 10) 470, , ,623 Investment income ,358 Other 10,361 10,361 5,540 Net assets released from restrictions (Note 9) 161,791 (161,791) Total Revenue And Support 4,547,032 (78,072) 4,468,960 3,983,024 Expenses Program Services Bright Futures 1,060,842 1,060, ,731 Bridge to the Future 1,071,606 1,071, ,848 Teen Parent 272, , ,949 Safe Beginnings 889, , ,225 Healthy Start 326, , ,101 Total Program Services 3,621,367 3,621,367 3,538,854 Supporting Services General and administrative 284, , ,459 Fundraising (Note 10) 452, , ,905 Total Expenses 4,359,253 4,359,253 4,328,218 Increase (Decrease) In Net Assets 187,779 (78,072) 109,707 (345,194) Net Assets - Beginning Of Year 489, , , ,526 Net Assets - End Of Year $ 677,320 $ 83,719 $ 761,039 $ 651,332 See the accompanying notes to financial statements. Page 4

7 STATEMENT OF FUNCTIONAL EXPENSES For The Year Ended June 30, 2012 (With Summarized Information For The Year Ended June 30, 2011) Program Services Supporting Services Bright Bridge To Teen Safe Healthy General And Total Futures The Future Parent Beginnings Start Administrative Fundraising Salaries $ 669,346 $ 676,182 $ 168,954 $ 560,454 $ 221,714 $ 186,922 $ 237,127 $ 2,720,699 $ 2,765,669 Contract labor 16,746 16,917 4,227 14,022 1,313 53,225 60,730 Employee benefits 65,864 66,539 16,626 55,151 55,780 17,103 11, , ,372 Mileage 41,457 41,880 10,464 34,712 8, , ,259 Payroll taxes 53,811 54,357 13,582 45,054 18,504 15,169 9, , ,450 Advertising ,537 5,235 6,254 Bad debt expense 6,576 6,575 6,575 6,575 6,575 32,876 45,419 Cellular communications 13,577 13,715 3,427 11,368 2, ,020 46,366 62,329 Computer 3,242 3, , ,215 12,804 12,129 Depreciation and amortization 8,198 8,282 2,069 6,864 5,303 30,716 33,615 Dues and subscriptions ,065 3,259 Equipment 6,105 6,168 1,541 5,112 5,814 24,740 27,403 Evaluation Family assistance 79,168 79,977 19,983 66, , ,981 Friends general expense 1,184 Insurance 22,830 23,063 5,763 19,116 3,600 6,233 80,605 92,277 Meals and entertainment , ,138 5,458 Miscellaneous ,750 3,002 8,585 24,569 Balance Carried Forward 988, , , , , , ,617 3,903,139 3,908,726 See the accompanying notes to financial statements. Page 5

8 STATEMENT OF FUNCTIONAL EXPENSES (Continued) For The Year Ended June 30, 2012 (With Summarized Information For The Year Ended June 30, 2011) Program Services Supporting Services Bright Bridge To Teen Safe Healthy General And Total Futures The Future Parent Beginnings Start Administrative Fundraising Balance Brought Forward $ 988,628 $ 998,653 $ 254,459 $ 828,861 $ 318,492 $ 244,429 $ 269,617 $ 3,903,139 $ 3,908,726 Office supplies 2,077 2, , ,759 1,271 10,517 15,438 Postage 1,863 1, ,561 2,354 3,460 11,591 11,945 Printing 1,652 1, , ,962 11,021 12,450 Professional fees 18,861 19,053 4,761 15,792 2,667 3,633 18,171 82,938 69,317 Rent 30,431 30,742 7,681 25,481 3,875 14,454 4, , ,441 Repairs and maintenance 1,120 1, ,748 9,221 8,466 Seminars ,133 6,034 Service charges 1,547 1, ,295 5,023 9,817 9,064 Special events 150, , ,119 Taxes and license fees ,348 1,623 2,008 Teaching aids ,093 Telephone 6,042 6,103 1,525 5, ,206 18,041 Training 3,316 3, ,776 10,279 4,696 Travel 1,565 1, , , ,113 8,014 Utilities 2,491 2, , ,930 10,556 9,366 Volunteer expense ,694 $ 1,060,842 $ 1,071,606 $ 272,687 $ 889,329 $ 326,903 $ 284,957 $ 452,929 $ 4,359,253 $ 4,328,218 See the accompanying notes to financial statements. Page 6

9 STATEMENT OF CASH FLOWS For The Year Ended June 30, 2012 (With Summarized Information For The Year Ended June 30, 2011) Cash Flows From Operating Activities Increase (decrease) in net assets $ 109,707 $ (345,194) Adjustments to reconcile increase (decrease) in net assets to net cash provided by (used in) operating activities: Loss on disposal of fixed assets 2,656 3,579 Depreciation and amortization 30,716 33,615 Changes in assets and liabilities: Decrease in promises to give and accounts receivable 30,671 58,540 Increase in prepaid expenses (4,435) (14,512) Increase (decrease) in accounts payable, accrued expenses and deferred revenue (14,377) 103,247 Increase (decrease) in agency funds payable (4,444) 7,449 Net Cash Provided By (Used In) Operating Activities 150,494 (153,276) Cash Flows From Investing Activities Net proceeds from (repayment of) line of credit (116) 12,084 Purchases of property and equipment (65,093) (59,709) Net Cash Used In Investing Activities (65,209) (47,625) Net Increase (Decrease) In Cash And Cash Equivalents 85,285 (200,901) Cash And Cash Equivalents - Beginning Of Year 438, ,056 Cash And Cash Equivalents - End Of Year $ 523,440 $ 438,155 Noncash Investing and Financing Activities (Note 11) 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 Organization) 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 Organization 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 requirements 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 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 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 Organization s financial statements for the year ended June 30, 2011, from which the summarized information was derived. Reclassifications Certain 2011 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 Organization 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 Organization 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. Federal, State And Local Grants, Other Contracts And Deferred Revenue Federal, state and local grants and other contract revenue relates to obligations for the performance of specific program activities. Revenue is recognized as the Organization 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 Organization to fulfill its mission. The following programs have been implemented by the Organization 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 Organization 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 Organization 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 Organization 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 Organization s program strategy; secure proper administrative functioning of the Board of Directors; and manage the financial and budgetary responsibilities of the Organization. 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 estimates derived by management. These estimates are based on time spent by employees on the various programs and supporting activities, as well as the number of visits conducted, by program. 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. Advertising Costs The Organization s policy is to recognize advertising costs as the costs are incurred. Advertising expenses were $5,235 for the year ended June 30, Subsequent Events Management has evaluated subsequent events through October 3, 2012, the date which the financial statements were available for issue. Income Tax Status The Organization 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. The Organization s federal tax returns for tax years 2008 and later remain subject to examination by taxing authorities. 2. Cash And Cash Equivalents The Organization considers all investments with a maturity of three months or less to be cash equivalents. The Organization 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. Page 12

15 Notes To Financial Statements (Continued) 3. Promises To Give As of June 30, 2012, promises to give that are expected to be collected in less than one year are comprised of $75,719 due from the United Way. 4. Property And Equipment Property and equipment consists of: Office equipment $ 178,275 Leasehold improvements 107,657 Furniture and fixtures 47,670 Software 93, ,603 Less: Accumulated depreciation and amortization (342,723) Plus: Software development costs in progress 90,000 $ 173,880 Depreciation and amortization charged to expense amounted to $30,716 in Agency Transactions On September 5, 2007, the Organization was one of four agencies awarded the five-year federal Healthy Hearts and Homes grant for approximately $400,000 per year. The Organization is acting as the lead agency with two partners, Father Support Center and the St. Louis Healthy Marriage Coalition. As the lead agency, the Organization is responsible for collecting the partners invoices each month and drawing on the federal money. As of June 30, 2012, the Organization processed invoices of $179,470, of which $15,470 is recorded as agency funds payable. Page 13

16 Notes To Financial Statements (Continued) 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 Organization. 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, 2012, no such adjustments were made. The Organization leases office space and certain office equipment for its programs under various operating leases expiring in April Future minimum payments due over the remaining terms of the leases are as follows: Year Amount 2013 $ 120, , , ,548 $ 303,868 Expenses incurred under such agreements totaled approximately $85,000 for Employee Benefit Plan The employees of the Organization participate in a Simple IRA Plan. The Organization 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, 2012, the Organization s contributions totaled $34, Line Of Credit The Organization has an unsecured 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 4.75% of the outstanding borrowings, with all outstanding interest and borrowings due at maturity on March 31, At June 30, 2012, outstanding borrowings on the line of credit amounted to $11,968. Page 14

17 Notes To Financial Statements (Continued) 9. Net Assets At June 30, 2012, net assets have been temporarily restricted by time or purpose as follows: United Way $ 75,719 Educational Development 8,000 $ 83,719 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 $ 70,042 Orthwein Foundation - database rebuild 43,537 Missouri Foundation for Health 18,212 Wilson Foundation - database rebuild 30,000 $ 161, In-Kind Contributions The Organization received goods valued at $71,951 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. 11. Noncash Investing And Financing Activities At June 30, 2012, the accounts payable and accrued expenses balance includes property and equipment purchases amounting to $10,433. Page 15

18 Independent Auditors Report On Supplementary Information Board of Directors Nurses for Newborns Foundation We have audited the financial statements of Nurses for Newborns Foundation as of and for the years ended June 30, 2012 and 2011, and our report thereon dated September 28, 2012, which expressed an unqualified opinion on those financial statements, appears on pages 1 and 2. Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The schedules of revenues, support and expenses for Tennessee and St. Louis and the schedule of visits, which are the responsibility of management, are presented for purposes of additional analysis and are not a required part of the financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. October 3, 2012 Page 16

19 NURSES FOR NEWBORNS SCHEDULE OF REVENUES, SUPPORT AND EXPENSES - TENNESSEE For The Years Ended June 30, 2012 And Revenue And Support Contributions $ 233, ,539 Federal, state and local grants 332, ,919 Other contracts 105, ,000 Special events 54,249 95,476 Other (14) (342) Total Revenue And Support 724, ,592 Expenses Salaries 518, ,846 Employee benefits 38,886 32,383 Mileage 21,314 31,552 Payroll taxes 41,665 42,055 Advertising Cellular communications 6,142 7,672 Computer 1,548 2,436 Depreciation and amortization 8,398 9,765 Dues and subscriptions Equipment 1, Family assistance 5,524 7,468 Insurance 22,071 21,142 Meals and entertainment 538 1,272 Miscellaneous 2,330 18,835 Office supplies 2,422 3,488 Postage 1,103 1,331 Printing 240 Professional fees 12,286 1,104 Rent 42,693 42,036 Repairs and maintenance 7,046 6,135 Seminars Service charges 1,723 1,478 Special events 7,176 23,376 Taxes and license fees Teaching aids 38 Telephone 4,771 4,673 Training 9,510 12,157 Travel 1,038 1,821 Total Expenses 758, ,050 Excess Of Expenses Over Revenue And Support $ (34,110) $ (30,458) See the accompanying independent auditors report on supplementary information. Page 17

20 SCHEDULE OF REVENUES, SUPPORT AND EXPENSES - ST. LOUIS For The Years Ended June 30, 2012 And Revenue And Support Contributions $ 691,070 $ 655,704 Federal, state and local grants 2,214,229 1,892,295 Other contracts 411, ,046 Special events 416, ,147 Other 11,372 8,240 Total Revenue And Support 3,744,106 3,222,432 Expenses Salaries 2,192,880 2,236,666 Contract labor 53,225 60,730 Employee benefits 249, ,989 Mileage 100, ,707 Payroll taxes 167, ,395 Advertising 4,755 5,795 Bad debt expense 32,876 45,419 Cellular communications 40,224 54,657 Computer 11,256 9,693 Depreciation and amortization 22,318 23,850 Dues and subscriptions 1,890 3,147 Equipment 23,657 26,528 Evaluation Family assistance 239, ,513 Friends general expense 0 1,184 Insurance 58,534 71,135 Meals and entertainment 2,600 4,186 Miscellaneous 6,255 5,734 Office supplies 8,095 11,950 Postage 10,488 10,614 Printing 10,781 12,450 Professional fees 70,652 68,213 Rent 42,750 68,405 Repairs and maintenance 26,911 2,331 Seminars 2,953 5,755 Service charges 8,094 7,586 Special events 143, ,743 Taxes and license fees 7,911 1,708 Teaching aids 31 3,093 Telephone 14,435 13,368 Training 10,279 4,696 Travel 22,573 6,193 Utilities 10,556 9,366 Volunteer expense 1,694 Total Expenses 3,600,289 3,537,168 Excess (Deficiency) Of Revenue And Support Over Expenses $ 143,817 $ (314,736) See the accompanying independent auditors report on supplementary information. Page 18

21 SCHEDULE OF VISITS For The Years Ended June 30, 2012 And St. Louis 13,409 13,646 Tennessee 4,399 4,402 Total Visits 17,808 18,048 See the accompanying independent auditors report on supplementary information. Page 19