FINANCIAL STATEMENTS JUNE 30, 2014 AND 2013 TOGETHER WITH INDEPENDENT AUDITOR S REPORT

Transcription

1 FINANCIAL STATEMENTS TOGETHER WITH INDEPENDENT AUDITOR S REPORT

2 CONTENTS PAGES INDEPENDENT AUDITOR S REPORT... 1 FINANCIAL STATEMENTS: Statements of Financial Position... 2 Statements of Activities and Changes in Net Assets... 3 Statements of Cash Flows... 4 Statements of Functional Expenses Notes to Financial Statements

3

4 STATEMENTS OF FINANCIAL POSITION UNRESTRICTED UNRESTRICTED PROPERTY PROPERTY ASSETS AND TOTAL TEMPORARILY AND TOTAL TEMPORARILY OPERATING EQUIPMENT UNRESTRICTED RESTRICTED TOTAL OPERATING EQUIPMENT UNRESTRICTED RESTRICTED TOTAL CURRENT ASSETS: Cash $ 12,267 $ - $ 12,267 $ 239,113 $ 251,380 $ - $ - $ - $ 216,317 $ 216,317 Certificate of deposit 201, , , , ,858 19, ,213 Accounts receivable, net of allowance of $4,200 as of June 30, , , ,319 81,665-81,665-81,665 Pledges receivable ,000 5,000 Prepaid expenses 44,542-44,542-44,542 55,516-55,516-55,516 Total current assets 379, , , , , , , ,711 PROPERTY AND EQUIPMENT, net - 494, , , , , ,913 DEPOSIT 8,082-8,082-8,082 8,082-8,082-8,082 Total assets $ 387,483 $ 494,135 $ 881,618 $ 239,113 $ 1,120,731 $ 327,121 $ 525,913 $ 853,034 $ 240,672 $ 1,093,706 LIABILITIES AND NET ASSETS CURRENT LIABILITIES: Accounts payable $ 42,690 $ - $ 42,690 $ - $ 42,690 $ 46,747 $ - $ 46,747 $ - $ 46,747 Accrued expenses 61,445-61,445-61,445 50,171-50,171-50,171 Total current liabilities 104, , ,135 96,918-96,918-96,918 ACCRUED RENT 5,965-5,965-5, MORTGAGE NOTE PAYABLE - 150, , , , , ,000 Total liabilities 110, , , ,100 96, , , ,918 NET ASSETS: Unrestricted: Operating 277, , , , , ,203 Property and equipment - 344, , , , , ,913 Total unrestricted 277, , , , , , , ,116 Temporarily restricted , , , ,672 Total net assets 277, , , , , , , , , ,788 Total liabilities and net assets $ 387,483 $ 494,135 $ 881,618 $ 239,113 $ 1,120,731 $ 327,121 $ 525,913 $ 853,034 $ 240,672 $ 1,093,706 The accompanying notes are an integral part of these statements

5 STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS FOR THE YEARS ENDED UNRESTRICTED UNRESTRICTED PROPERTY PROPERTY AND TOTAL TEMPORARILY AND TOTAL TEMPORARILY OPERATING EQUIPMENT UNRESTRICTED RESTRICTED TOTAL OPERATING EQUIPMENT UNRESTRICTED RESTRICTED TOTAL OPERATING REVENUES AND SUPPORT: Contracts $ 1,152,000 $ - $ 1,152,000 $ - $ 1,152,000 $ 986,731 $ - $ 986,731 $ - $ 986,731 Special events revenue 247, , , , , ,298 Grants and contributions 122, , , , , , , ,340 Interest and other 4,985-4,985-4,985 1,309-1,309-1,309 Net assets released from restrictions: Satisfaction of time restrictions 55,000-55,000 (55,000) - 40,200-40,200 (40,200) - Satisfaction of purpose restrictions 59,736-59,736 (59,736) - 221, ,903 (221,903) - Total operating revenues and support 1,641,866-1,641,866 7,462 1,649,328 1,667,199-1,667,199 (122,521) 1,544,678 OPERATING EXPENSES: Program services: Emergency Shelter 393,675 37, , , ,500 27, , ,329 Boston Community Based Advocacy Services 422, , , ,798 4, , ,867 Lowell Community Based Advocacy Services 144, , , ,522 1, , ,854 Education and Outreach 184, , , ,357 1, , ,159 Total program services 1,145,445 38,259 1,183,704-1,183,704 1,188,177 35,032 1,223,209-1,223,209 Supporting services: General and Administrative 203, , , ,633 1, , ,418 Fundraising 253, , , ,001 1, , ,771 Total supporting services 456, , , ,634 3, , ,189 Total operating expenses 1,602,207 38,278 1,640,485-1,640,485 1,665,811 38,587 1,704,398-1,704,398 Changes in net assets from operations 39,659 (38,278) 1,381 7,462 8,843 1,388 (38,587) (37,199) (122,521) (159,720) NON-OPERATING REVENUES: Capital contributions - 5,000 5,000-5,000-15,000 15,000-15,000 Net assets released from capital restrictions 2,521 6,500 9,021 (9,021) ,954 24,812 (24,812) - Changes in net assets 42,180 (26,778) 15,402 (1,559) 13,843 2, ,613 (147,333) (144,720) NET ASSETS, beginning of year 230, , , , , , , , , ,508 Transfer 5,000 (5,000) ,000 (15,000) NET ASSETS, end of year $ 277,383 $ 344,135 $ 621,518 $ 239,113 $ 860,631 $ 230,203 $ 375,913 $ 606,116 $ 240,672 $ 846,788 The accompanying notes are an integral part of these statements

6 STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED CASH FLOWS FROM OPERATING ACTIVITIES: Changes in net assets $ 13,843 $ (144,720) Adjustments to reconcile changes in net assets to net cash provided by (used in) operating activities: Depreciation 38,278 38,587 Capital contributions (5,000) (15,000) Bad debt (recovery) (4,200) 250 Changes in operating assets and liabilities: Accounts receivable (35,454) (18,936) Pledges receivable 5,000 10,000 Prepaid expenses and deposit 10,974 4,770 Accounts payable (4,057) (1,485) Accrued expenses 11,274 (7,514) Accrued rent 5,965 - Net cash provided by (used in) operating activities 36,623 (134,048) CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of property and equipment (6,500) (23,954) Interest reinvested in certificate of deposit (60) (93) Net cash used in investing activities (6,560) (24,047) CASH FLOWS FROM FINANCING ACTIVITY: Capital contributions 5,000 15,000 NET INCREASE (DECREASE) IN CASH 35,063 (143,095) CASH, beginning of year 216, ,412 CASH, end of year $ 251,380 $ 216,317 SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY: Cost basis of disposed property and equipment $ - $ 123,674 The accompanying notes are an integral part of these statements

7 STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED JUNE 30, 2014 (With Summarized Comparative Totals for the Year Ended June 30, 2013) PROGRAM SERVICES SUPPORTING SERVICES BOSTON LOWELL COMMUNITY COMMUNITY GENERAL BASED BASED EDUCATION TOTAL AND EMERGENCY ADVOCACY ADVOCACY AND PROGRAM ADMINIS- FUND- SHELTER SERVICES SERVICES OUTREACH SERVICES TRATIVE RAISING TOTAL TOTAL EXPENSES: Salaries and related: Salaries $ 214,070 $ 267,262 $ 91,071 $ 106,780 $ 679,183 $ 108,123 $ 120,010 $ 907,316 $ 928,469 Payroll taxes 21,862 25,617 9,331 9,718 66,528 8,077 10,042 84,647 89,438 Employee benefits 17,793 22,295 8,274 9,818 58,180 9,495 9,496 77,171 81,577 Total salaries and related 253, , , , , , ,548 1,069,134 1,099,484 Program costs: Client assistance 61,015 14, ,574 89, , ,017 Contracted services - 28,456 11,063-39, ,519 39,662 Program supplies 5,110 2,874-7,739 15, ,794 12,543 Equipment rental 2,497 1,829 1, , ,226 6,772 Food 3, , ,815 6,337 Total program costs 72,437 47,273 12,779 23, , , ,331 Occupancy: Rent - 30,296 9,745 13,308 53,349 12,548 14,417 80,314 73,562 Depreciation 37, , ,278 38,587 Utilities 21,843 2,700 1,005 1,180 26,728 1,110 1,285 29,123 26,655 Repairs and maintenance 17, , ,466 20,786 Insurance 10,091 1, , ,513 10,451 Total occupancy 86,488 34,582 11,361 14, ,215 13,777 15, , ,041 Other: Event expenses ,994 69,994 80,279 Professional services ,944-37,775 29,324 Contracted services - 5,535-6,166 11,701 6,813 17,237 35,751 33,514 Transportation, meeting and travel 6,482 5,147 3,933 6,261 21,823 2, ,315 31,410 Computer expenses 5,270 7,966 2,173 2,603 18,012 3,010 2,869 23,891 25,851 Telephone 3,956 5,985 3,618 1,418 14,977 1,567 1,182 17,726 22,174 Printing and postage ,147 2,882 2,999 3,455 9,336 9,807 Office supplies 1,674 1, ,012 3,424 1,631 8,067 5,554 Miscellaneous 31-1,056 2,145 3, ,019 6,843 Dues and subscriptions , ,674 3,889 Insurance ,839-2,839 2,647 Bad debt Total other 18,132 26,369 11,738 20,765 77,004 63,435 96, , ,542 Total operating expenses before general and administrative allocation 430, , , ,970 1,183, , ,056 1,640,485 1,704,398 GENERAL AND ADMINISTRATIVE ALLOCATION 61,083 60,036 20,497 26, ,844 (203,725) 35, Total operating expenses $ 491,865 $ 483,434 $ 165,051 $ 211,198 $ 1,351,548 $ - $ 288,937 $ 1,640,485 $ 1,704, The accompanying notes are an integral part of these statements

8 STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED JUNE 30, 2013 PROGRAM SERVICES SUPPORTING SERVICES BOSTON LOWELL COMMUNITY COMMUNITY GENERAL BASED BASED EDUCATION TOTAL AND EMERGENCY ADVOCACY ADVOCACY AND PROGRAM ADMINIS- FUND- SHELTER SERVICES SERVICES OUTREACH SERVICES TRATIVE RAISING TOTAL EXPENSES: Salaries and related: Salaries $ 216,882 $ 270,962 $ 88,673 $ 119,989 $ 696,506 $ 112,652 $ 119,311 $ 928,469 Payroll taxes 20,843 25,540 9,271 11,307 66,961 12,561 9,916 89,438 Employee benefits 17,954 26,345 7,376 9,898 61,573 9,983 10,021 81,577 Total salaries and related 255, , , , , , ,248 1,099,484 Program costs: Client assistance 95,269 11, , , ,017 Contracted services - 30,574 9,088-39, ,662 Program supplies 7,944 1, ,309 12, ,543 Equipment rental 1,460 1,638 1, , ,772 Food 6, , ,337 Total program costs 110,922 44,696 11,705 14, ,467 1, ,331 Occupancy: Rent - 27,892 8,871 12,279 49,042 12,320 12,200 73,562 Depreciation 27,829 4,069 1,332 1,802 35,032 1,785 1,770 38,587 Utilities 20,436 2, ,420 1, ,655 Repairs and maintenance 20, , ,786 Insurance 10, , ,451 Total occupancy 79,225 34,129 11,082 15, ,454 15,726 14, ,041 Other: Event expenses ,279 80,279 Professional services ,324-29,324 Contracted services ,357 17,307 33,514 Transportation, meeting and travel 4,855 10,330 1,071 9,459 25,715 1,629 4,066 31,410 Computer expenses 5,874 6,463 2,187 4,651 19,175 3,798 2,878 25,851 Telephone 6,657 7,434 3,248 1,582 18,921 1,939 1,314 22,174 Printing and postage ,340 3,938 3,502 2,367 9,807 Office supplies 1,806 1, ,236 2, ,554 Miscellaneous 2, , ,838 1, ,843 Dues and subscriptions , ,889 Insurance ,647-2,647 Bad debt Total other 21,503 27,195 8,747 19,803 77,248 65, , ,542 Total operating expenses before general and administrative allocation 467, , , ,159 1,223, , ,771 1,704,398 GENERAL AND ADMINISTRATIVE ALLOCATION 68,330 62,707 20,010 27, ,851 (217,418) 38,567 - Total operating expenses $ 535,659 $ 491,574 $ 156,864 $ 217,963 $ 1,402,060 $ - $ 302,338 $ 1,704,398 The accompanying notes are an integral part of these statements

9 NOTES TO FINANCIAL STATEMENTS (1) OPERATIONS, NONPROFIT STATUS AND SIGNIFICANT ACCOUNTING POLICIES OPERATIONS AND NONPROFIT STATUS The Asian Task Force Against Domestic Violence, Inc. (ATASK) is a not-for-profit corporation founded in 1992 to address the gaps in services for Asian domestic violence survivors in the Greater Boston and Lowell areas, including low-income immigrants with limited English language capabilities. A United Way affiliated agency, ATASK s mission is to prevent family violence in Asian families and communities and to provide hope to survivors. ATASK was founded by and is staffed and managed by members of the greater Boston pan-asian community it serves. Since 1994, ATASK has operated its Asian Shelter and Advocacy Project (ASAP) - New England s only multilingual emergency shelter, advocacy services, and outreach and education programs for Asian survivors of domestic violence. ATASK is a leader in educating and mobilizing social services organizations and the broader public on domestic violence specific to Asian communities. ASAP is comprised of three primary programs sited in three different locations. Each program complements the others to provide coordinated care to clients. Community Based Advocacy Services (CBS): Located in Boston and Lowell, CBS Case Managers/Advocates provide services in Vietnamese, Korean, Cantonese, Mandarin, Toisanese, Nepali, Punjabi, Tamil, Tagalog, Urdu, Hindi, Khmer and English, providing links between domestic violence survivors and critical services and resources. All advocates are Asian Americans who are fluent in English and Asian languages, and act as cultural brokers, helping clients navigate unfamiliar customs and systems. Approximately 90% of ATASK s clients require translation and/or interpretation services. Each client works with a CBS Case Manager/Advocate, who supports the client in achieving goals which may include: a permanent home, education, employment, physical/mental healthcare, public benefits, English for Speakers of Other Languages (ESOL) and life skills support, immigration status, and legal support. Advocates also provide crisis intervention, safety planning, emotional support, and in-house legal services via a contract attorney, herself an Asian American, for general consultation and special crisis cases. All services are provided free of charge. Emergency Shelter: The ASAP emergency shelter houses up to seventeen women and children and operates at full capacity, providing Asian survivors of domestic violence with a safe home and access to services often unattainable due to language and cultural barriers. The shelter provides culturally and linguistically appropriate direct and supportive services: a 24-hour multilingual helpline, crisis intervention, emergency shelter, transitional and permanent housing in the community and direct community based advocacy services via our CBS Case Managers/Advocates. In addition to providing all survivors with their basic living needs, shelter staff provide women and children with domestic violence survivor support groups for children, mothers and jointly as family, house meetings, life skills and independent living skills building, job and educational support, English language tutoring, computer skills tutoring, health care services, school, and child care services. Shelter staff also provide support to children as they adjust to a new environment; acting as liaisons between the children s new schools as they move into the shelter or housing in a new community; meeting with school officials, attending school meetings, advocating for therapeutic services, providing after-school tutoring and referrals to other resources, and early intervention programs

10 NOTES TO FINANCIAL STATEMENTS (1) OPERATIONS, NONPROFIT STATUS AND SIGNIFICANT ACCOUNTING POLICIES OPERATIONS AND NONPROFIT STATUS Emergency Shelter: Within the Emergency Shelter Program is a Transitional Housing Program which assists survivors of domestic violence to gain economic stability and achieve their personal goals. ATASK strives to meet this by providing housing assistance, as well as a variety of practical and emotional support. The program has scattered sites throughout Massachusetts and provides financial assistance for rent, security deposits, and other housing-related costs for up to twenty-four months. Advocacy and emotional support, including counseling and case management, are also provided. Services include assistance finding and maintaining permanent housing, education and employment, child care, and household furnishings. Education and Outreach Program: The Education and Outreach Program seeks to increase accessibility and awareness of culturally and linguistically appropriate domestic violence services and to encourage collaboration with other services providers and community groups in preventing domestic violence. The ATASK Outreach staff participate in community-specific networks and coalitions, cultural festivals and celebrations, community panels/forums, civic events, health fairs, and establishing relationships with community businesses. Community trainings to professionals and adults are provided via a curriculum which offers tools to understand and respond to domestic violence within immigrant and refugee Asian populations and other marginalized communities. The program also includes a Teen Dating Violence Program which educates teens on domestic and teen violence and the youth empowerment program, where Outreach staff works with a small (8-12) group of Asian teens several times each week to engage the participants in addressing issues of dating/domestic violence through development of leadership skills so that the participants become advocates of change in their communities. ATASK is exempt from Federal income taxes as an organization (not a private foundation) formed for charitable purposes under Section 501(c)(3) of the Internal Revenue Code (IRC). ATASK is also exempt from state income taxes. Donors may deduct contributions made to ATASK within the IRC requirements. SIGNIFICANT ACCOUNTING POLICIES ATASK prepares its financial statements in accordance with generally accepted accounting standards and principles established by the Financial Accounting Standards Board (FASB). References to U.S. GAAP in these notes are to the FASB Accounting Standards Codification (ASC)

11 NOTES TO FINANCIAL STATEMENTS (1) OPERATIONS, NONPROFIT STATUS AND SIGNIFICANT ACCOUNTING POLICIES SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition Contract revenue is recorded over the contract period as services are provided. Special events revenue is recorded when the event occurs. Unrestricted grants and contributions are recorded as revenue when received or unconditionally pledged. All other revenue is recorded as earned. Restricted grants and contributions are recorded as temporarily restricted revenues and net assets when received or unconditionally pledged. Transfers are made to unrestricted net assets as costs are incurred or time restrictions have lapsed. Donor restricted grants received and satisfied in the same period are included in unrestricted net assets activity. Property and Equipment and Depreciation Purchased property and equipment are recorded at cost. Donated property and equipment are recorded at fair value at the time of donation (see Note 3). Depreciation is computed using the straight-line method over the following estimated useful lives: Building Building improvements Leasehold improvements Furniture and equipment 39 years 5-20 years Over the term of the lease 3-10 years Use of Estimates The preparation of financial statements in accordance with U.S. GAAP 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Expense Allocations Expenses related directly to a program are distributed to that program, while other expenses are allocated based upon management s estimate of the percentage attributable to each program. Donated Goods and Services ATASK receives other services from volunteers and donated goods in various aspects of its programs. The value of these goods and services is not reflected in the accompanying financial statements, since the value assigned to these goods and services by the donating volunteers and donors is not ascertainable and does not meet the criteria recognition of accounting standard for Accounting for Contributions Received and Contributions Made

12 NOTES TO FINANCIAL STATEMENTS (1) OPERATIONS, NONPROFIT STATUS AND SIGNIFICANT ACCOUNTING POLICIES SIGNIFICANT ACCOUNTING POLICIES Uncertainty in Income Taxes ATASK accounts for uncertainty in income taxes in accordance with ASC Topic, Income Taxes. This standard clarifies the accounting for uncertainty in tax positions and prescribes a recognition threshold and measurement attribute for the financial statements regarding a tax position taken or expected to be taken in a tax return. ATASK has determined that there are no uncertain tax positions which qualify for either recognition or disclosure in the financial statements at June 30, 2014 and ATASK s information returns are subject to examination by the Federal and state jurisdictions and generally remain open for the most recent three years. Fair Value Measurement ASC Topic, Fair Value Measurements, establishes a framework for measuring fair value and expands disclosures about fair value measurements. This guidance only applies when the fair value measurement of assets and liabilities is required or permitted. ATASK has determined that none of its financial or nonfinancial assets or liabilities is measure at fair value; therefore, the disclosure requirements do not currently apply. Certificate of Deposit Certificate of deposit (CD) represents a CD with an initial maturity of six months and an interest rate of.03% at June 30, 2014 and The CD held on June 30, 2014, matures on January 19, The CD held on June 30, 2013, matured on February 20, The CD is held as security for the line of credit described in Note 5. ATASK's CD is insured within the limits of the Federal Deposit Insurance Corporation (FDIC). Pledges Receivable Pledges receivable consist of committed contributions. Pledges are recorded at their net present value when unconditionally committed. Any allowance is recorded based on management s analysis of specific pledges and their estimate of amounts that may become uncollectible. Pledges are written off against the allowance when they are determined to be uncollectible. No allowance was deemed necessary at June 30, 2014 and Accounts Receivable Accounts receivable are shown net of an allowance for doubtful accounts. The allowance is recorded based on management s assessment of specific accounts and their estimate of amounts that may become uncollectible. Accounts are written off when management determines them to be uncollectible. No allowance was deemed necessary at June 30, Subsequent Events Subsequent events have been evaluated through December 29, 2014, which is the date the financial statements were available to be issued. Events that met the criteria for recognition or disclosure have been disclosed in the financial statements (see Note 9)

13 NOTES TO FINANCIAL STATEMENTS (2) NET ASSETS Unrestricted Net Assets Unrestricted net assets are those net resources that bear no external restrictions and are generally available for use by ATASK. ATASK has grouped its unrestricted net assets into the following categories: Operating - represent funds available to carry on the operations of ATASK. Property and equipment - reflect and account for the activities relating to ATASK s property and equipment, net of related debt. Temporarily Restricted Net Assets ATASK receives contributions and grants which are designated by donors for specific purposes or time periods. These contributions are recorded as temporarily restricted net assets until they are expended for their designated purposes or the time period lapses. Temporarily restricted net assets consist of the following at June 30: Purpose restricted $210,938 $168,826 Time restricted 20,350 55,000 Capital restricted 7,825 16,846 (3) PROPERTY AND EQUIPMENT Total temporarily restricted net assets $239,113 $240,672 Property and equipment consist of the following at June 30: Land $ 25,200 $ 25,200 Building and building improvements 851, ,997 Leasehold improvements 4,529 4,529 Furniture and equipment 78,576 72, , ,802 Less - accumulated depreciation 466, ,889 Net property and equipment $494,135 $525,913 Furniture and equipment costing $44,782 and fully depreciated at June 30, 2014 and 2013, have been acquired with funds received from the Commonwealth of Massachusetts. The Commonwealth of Massachusetts retains a reversionary interest in these assets

14 NOTES TO FINANCIAL STATEMENTS (4) MORTGAGE NOTE PAYABLE In 1994, Community Economic Development Assistance Corporation (CEDAC) gave ATASK a loan of $150,000 to be used for the development of its building. The note is non-interest bearing and is due in March, Principal is due annually if certain cash flow, as defined in the agreement, is achieved. There were no payments due in fiscal years 2014 and This loan is secured by a mortgage on the building and contains various covenants and conditions. The covenants have been either met or waived by CEDAC as of June 30, The loan and the related building are in the name of a nominee trust of which ATASK is the sole beneficiary; accordingly, the loan and the related building are included in the accompanying financial statements. (5) LINE OF CREDIT ATASK has a $200,000 line of credit agreement with a bank. Borrowings under the agreement are due on demand, and interest is payable monthly at the London Interbank Offered Rate (LIBOR) Advantage Rate (.242% and.244% at June 30, 2014 and 2013, respectively), plus 3% per annum. The line of credit is secured by the CD, as defined in the agreement. ATASK is required to meet certain covenants under this agreement. All covenants have been met at June 30, There was no outstanding balance as of June 30, 2014 and (6) LEASES Facility ATASK leases its administrative space under an agreement that expired on June 30, 2013, which had an option to extend. ATASK opted to extend the lease for an additional five-year period through June 30, ATASK also has a lease for programmatic space under a three-year lease that expires on June 30, The leases require ATASK to maintain certain insurance coverage and pay for its proportionate share of real estate taxes and operating expenses. The rent for the years ended June 30, 2014 and 2013, was $80,314 and $73,562, respectively. ATASK is recognizing rent expense on a straight-line basis over the terms of the leases in accordance with the Accounting for Leases standard under U.S. GAAP. Accrued rent as of June 30, 2014 was $5,965. Equipment ATASK leases equipment under operating lease agreements that expire at various dates through November, Remaining minimum lease payments under these lease agreements are as follows: Facility Equipment 2015 $ 77,505 $ 7, ,689 3, , ,524 - Total $308,446 $10,

15 NOTES TO FINANCIAL STATEMENTS (7) CONCENTRATION OF CREDIT RISK ATASK received 46% and 44% of its funding from contracts received from Commonwealth of Massachusetts departments for the years ended June 30, 2014 and 2013, respectively. Included in accounts receivable at June 30, 2014 and 2013, is approximately $77,000 and $45,000, respectively, due from these Massachusetts departments. (8) PENSION PLAN ATASK has a defined contribution pension plan pursuant to IRC Section 403(b), which covers all qualifying full-time employees. Employees may make voluntary contributions to the plan up to the maximum amount allowed by the IRC. ATASK did not make any contributions to this plan in fiscal years 2014 and ATASK has a profit sharing plan (the Plan) under Section 401(k) of the IRC. The Plan covers substantially all eligible employees. Employees become eligible to participate after completing 1,000 hours of service and attaining the age of 21. Employees may contribute up to 96% of eligible compensation, not to exceed IRC limits. Employee contributions may be matched, at the discretion of the Board of Directors. Employer contributions vest over a certain period as described in the Plan. ATASK elected not to match employee contributions made to the Plan during fiscal years 2014 and (9) RELATED PARTY TRANSACTIONS During the year ended June 30, 2014, ATASK received a $30,000 grant from a foundation; subsequent to June 30, 2014, ATASK received notification that it had received an additional $30,000 award for the year ending June 30, The Executive Director of ATASK is a member of the Board of Directors of the grantor foundation. ATASK used this funding for two licensing agreements, totaling $5,500 and $30,000, respectively, for the years ended June 30, 2014 and 2015, with a corporation. The Executive Director of ATASK is a part time employee of a subsidiary of the licensor. (10) RECLASSIFICATIONS Certain amounts in the fiscal year 2013 financial statements have been reclassified to conform with the fiscal year 2014 presentation