HABITAT FOR HUMANITY OF OSCEOLA COUNTY, INC.

Transcription

1 HABITAT FOR HUMANITY OF OSCEOLA COUNTY, INC. FINANCIAL STATEMENTS June 30, 2011 & June 30, 2010 WITH AUDITOR S REPORT THEREON

2 TABLE OF CONTENTS Independent Auditor s Report 3 Statement of Financial Position 4 5 Statement of Activities 6 Statement of Cash Flows 7 Statement of Functional Expenses 8 Notes to Financial Statements 9 11

3 Shyam Sam Kotwal, CPA, PA Village Park Dr, Orlando, Florida [407] Fax: (407) Independent Auditor s Report Board of Directors Habitat for Humanity, for Osceola County Inc N ORANGE BLOSSOM TRL Kissimmee, Florida I have audited the accompanying Statement of Financial Position of Habitat for Humanity, of Osceola County Inc. as of June 30, 2011 and June 30, 2010, and the Statement of Functional Expenses, Statement of Cash Flows, and the related Statement of Activities for the year ended June 30, 2011 and June 30, These financial statements are the responsibility of the Organization s management. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that I plan and perform the 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. I believe that my audit provides a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Habitat for Humanity, of Osceola County Inc. as of June 30, 2011 and June 30, 2010 and the results of its operations for the year ended June 30, 2011, and June 30, 2010 in conformity with accounting principles generally accepted in the United States of America. December 6, 2011 (Shyam Kotwal, CPA, PA) 3

4 Statement of Financial Position Habitat for Humanity of Osceola County, Inc. June 30, 2011 and June 30, 2010 ASSETS Current Assets 30-Jun 30-Jun Cash $14,179 $24,779 Money Market Account 20,624 22,107 Escrow Account 33,450 0 Petty Cash Notes Receivables 637, , , ,893 Fixed Assets Land & Building 879, ,852 Land Poinciana - 0 Leaehold Improvements 16,933 16,933 Equipment and Furniture 32,491 27,677 Accumulated Depreciation (114,669) (92,109) 814, ,353 Other Assets [Note 6] Land for future Const.: Lincoln Street 59,000 59,000 Land for future Const.: Delaware Ave 50,531 0 Home Minnesota 46,000 0 Work In Progress :Alma Street - 127,896 Customer Deposit 2,356 0 Total Other Assets 157, ,896 Total Assets $1,678,531 $1,640,142 The accompanying accountant s reports and notes to the financial statements are an integral part of this statement. 4

5 Statement of Financial Position Habitat for Humanity of Osceola County, Inc. June 30, 2011 and June 30, 2010 LIABILITIES AND NET ASSETS 30-Jun 30-Jun Liabilities Current Liabilities Accounts Payable $1,675 $13,587 - Accrued Payroll Expenses 2,412 $4,166 Escrow Accounts 17,428 4,170 Customer Deposit 1, Sales Tax Payable 7,314 2,377 Payroll Tax Payable 4,020 1,112 33,849 25,811 Mortgage Notes Payable- First Commercial 783, ,927 Mortgage Notes Payable-Sid Spafford 50, , ,927 Total Liabilities 867, ,738 Net Assets Unrestricted 810, ,404 Temporarily Restricted Permanently Restricted , ,404 $1,678,531 $1,640,142 The accompanying accountant s reports and notes to the financial statements are an integral part of this statement. 5

6 Statement of Activities Habitat for Humanity of Osceola County, Inc. Year Ended June 30, 2011 Unrestricted Restricted Total Revenues, Grants & Other Support Contributions & Donations $24, $24,190 Program Income 109, ,062 Grants & Reimbursements 3, ,000 Mortgage Income 10, ,505 Store Revenue 250, ,645 Interest Income Other Income 1, ,136 Insurance Proceeds 74, ,921 Reimbursements Grants [13] 65, ,864 In Kind Labor Satisfaction of Program Restrictions Total Revenue, Grants and 539, ,455 Other Support Expenses Programs 376, ,621 General and Administrative 57, ,330 Total Expenses before capitalization 433, ,951 Capitalization of Const. Expenses Expenses net of capitalization 433, ,951 Change in Net Assets 105, ,503 Net Assets Beginning of Year 836, ,868 Adjustment to Net Assets [12] (131,374) (131,374) Net Assets End of Year 810, $810,997 The accompanying accountant s reports and notes to the financial statements are an integral part of this statement. 6

7 Statement of Cash Flows Habitat for Humanity of Osceola County, Inc. June 30, 2011 and Year Ended June 30, Jun 30-Jun Cash Flows from Operating Activities Changes in Net Assets $105,503 $71,956 Adjustments to Reconcile Changes in Net Assets to Net Cash Used by Operating Activities Depreciation 22,560 14,130 (Increase) Decrease in Assets Receivables -- Grants (63,536) (39,743) Customer Deposit (2,356) 980 Increase (Decrease) in Liabilities Other Liabilities 7,779 (16,654) Payroll Liabilities 1,154 - Payroll Tax Payable 315 Net Cash Provided by Operating Activities 71,104 30,984 Cash Flows from Investing Activities Purchase of Equipment and Building (4,814) Land Poinciana - - Equipment - - Costruction Costs & Land (71,314) - Net Cash Used by Investing Activities (71,314) - Cash Flows from Financing Activities Notes Notes Payable 20,759 (7,011) Net Cash Used by Financing Activities 20,759 (7,011) Net Increase (Decrease) in Cash 20,549 23,973 Cash at Beginning of Year 46,782 22,809 Cash at End of Year $67,331 $46,782 Supplemental Data Interest Paid $43,775 Income Tax Expense -0- The accompanying accountant s reports and notes to the financial statements are an integral part of this statement. 7

8 Statement of Functional Expenses Habitat for Humanity of Osceola County, Inc. Year Ended June 30, 2011 Program Services Support Services General and Total Programs Administrative Expenses Functional Expenses Payroll and Related Expenses $148,108 $28,211 $176,319 Home Const/Renovation Costs 61,468-61,468 Other Automobile Expense 12, ,411 Bank Charges 2,679 2,679 5,358 Contributions ,200 Depreciation and Amortization 21,432 1,128 22,560 Dues and Subscriptions 0 2,678 2,678 Fund Raising Expense Insurance 20,802 1,095 21,897 Interest Expense 42,755 2,250 45,005 Marketing Office Expense 12,369 2,183 14,552 Postage & Printing 1, ,925 Professional Services 12,195 12,195 24,389 Rent 1, ,658 Repairs 2, ,550 Supplies Taxes 7, ,928 Telephone 4,423 1,106 5,529 Travel and Training 6,837 1,709 8,546 Utilities Expense 14, ,237 Total Functional Expenses $376,621 $57,330 $433,951 The accompanying accountant s reports and notes to the financial statements are an integral part of this statement. 8

9 Notes of Financial Statements Habitat for Humanity for Osceola County, Inc. June 30, 2011 Summary of Significant Accounting Policies Organization and Purpose. Habitat for Humanity of Osceola County, Inc. was incorporated in the State of Florida on September 16, 1996 to provide low income housing to residents of Osceola County, Florida. 1. Basis of Accounting. Habitat for Humanity of Osceola County, Inc. follows standards of accounting and financial reporting prescribed for voluntary health and welfare agencies. It uses the accrual basis of accounting, which recognizes revenue when earned and expenses as incurred. Federal, state, and local government grants are recorded as support when performance occurs under the terms of the grant agreement. The costs of providing the various programs and other activities have been detailed in the statement of functional expenses and summarized on a functional basis in the Statement of Activities. Expenses that are associated with a specific program are charged directly to that program. Expenses that benefit more than one program are allocated to the various programs based on the relative benefit provided. 2. Promises to Give. Contributions are recognized when the donor makes a promise to give the Organization that is, in substance, unconditional. Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire in the fiscal year in which the contributions are recognized. All other donor-restricted contributions are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets. The Organization uses the allowance method to determine uncollectible unconditional promises receivable. The allowance is based in prior years experience and management s analysis of specific promises made. No allowance has been provided for in Note Receivable The individuals that participate in the Habitat for Humanity program sign a mortgage note with the organization for the cost of the home they receive. This mortgage note bears no interest and the repayment schedule is based upon the individual s ability to repay the mortgage note. The amounts due to the organization at June 30, 2011 and June 30, 2010 were $ 637,646 and $521,477 respectively. 9

10 4. Contributed Services. During the period ended June 30, 2011, the value of other contributed services, mainly volunteers for community service and workforce other than construction was $29,240, but did not meet the criteria of SFAS 116, hence not been recorded in financial statements.. 5. Property and Depreciation. Habitat for Humanity of Osceola County, Inc. follows the practice of capitalizing all expenditures for equipment in excess of $500, or if donated, at fair market value at the date of acquisition. Uses of operating funds for acquisitions and principal debt service payments are accounted for as transfers to the equipment fund. Proceeds from the sale of fixed assets, if unrestricted, are transferred to operating fund balances, or, if restricted, to deferred amounts restricted for plant acquisitions. Depreciation expense for assets is calculated on straight line depreciation over the assets estimated useful lives. Depreciation expenses for the year s ended June 30, 2011 and June 30, 2010 were $22,560 and $14,130, respectively. 6. Construction Work In Progress: During the period ended June 30, 2011 organization acquired the Home at Minnesota and will be used as rental property for now. Other assets are land at Delaware Street and Lincoln Street. Delaware Ave Lincoln Street Minnesota Land $ 50,531 $59,000 $46,000 ((Home) In Kind Labor Materials, Permit Labor Total $50,531 $59,000 $46, Cash and Cash Equivalents For purposes of the statement of cash flows, the Organization considers all highly liquid investments available for current use with an initial maturity date of three months or less. 8. Mortgage Notes Payable: Mortgage notes payable at June 30, 2011 and June 30, 2010 were $783,686 and $812,927 respectively. Notes payable balance on another note Sid Spafford was $50,000 Interest expense for the years ended June 30, 2011 and June 30, 2010 was $43,775 and $24,139, respectively. 10

11 9. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. 10. Income Taxes. The Organization has been granted an exemption from income taxes under Internal Revenue Code, Section 501(C) (3) as a non-profit corporation. 11. Change in Accounting Period. The Organization changed its accounting period from calendar year to Fiscal year ending June 30. It is consistent with accounting period followed by Habitat for Humanity at International level. The change took effect in The financial statement for 2010 are for a partial year compared to Sale of Home: The home build at Alma Street was sold on December 20, 2010 for $124,000. Habitat for Humanity, City of Kissimmee and Osceola County hold 1 st mortgage 2 nd and 3 rd for the amount of $86000, $15,000 and $28,338 respectively and plus closing costs. 13. Reimbursements were from Neighborhood Stabilization Program and other related organizations like Habitat for Humanity International etc. to cover payroll and related expenses. 11