NATIONAL MULTIPLE SCLEROSIS SOCIETY DELAWARE CHAPTER

Transcription

1 FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2014 AND 2013

2 CONTENTS INDEPENDENT AUDITOR'S REPORT 1 FINANCIAL STATEMENTS Statements of Financial Position 2 Statements of Activities 3 Statements of Functional Expenses 5 Statements of Cash Flows 7 Notes to Financial Statements 8

3 INDEPENDENT AUDITOR'S REPORT Board of Trustees National Multiple Sclerosis Society Delaware Chapter We have audited the accompanying financial statements of National Multiple Sclerosis Society, Delaware Chapter (a nonprofit organization) which comprise the statements of financial position as of September 30, 2014 and 2013, and the related statements of activities, functional expenses and cash flows for the years then ended and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of National Multiple Sclerosis Society, Delaware Chapter as of September 30, 2014 and 2013, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Philadelphia, Pennsylvania December 6,

4 STATEMENTS OF FINANCIAL POSITION September 30, 2014 and 2013 ASSETS CURRENT ASSETS Cash $ 303,385 $ 410,548 Investments - 23,342 Contributions and other receivables 85,045 62,861 Prepaid expenses 14,225 11,530 Total current assets 402, ,281 NONCURRENT ASSETS Property and equipment, net 23,407 48,432 Total assets $ 426,062 $ 556,713 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Due to Home Office Payable to Home Office $ 11,588 $ 4,421 Due to other chapters 1,096 - Accounts payable and accrued expenses 92, ,111 Deferred revenue 25,530 27,145 Total current liabilities 131, ,677 NET ASSETS Unrestricted 124, ,547 Temporarily restricted 170, ,489 Total net assets 294, ,036 Total liabilities and net assets $ 426,062 $ 556,713 See accompanying notes -2-

5 STATEMENT OF ACTIVITIES Year ended September 30, 2014 with comparative totals for 2013 Temporarily Totals Unrestricted Restricted Public support Received directly Special events (includes in-kind donations of $104,039 in 2014 and $120,050 in 2013) $ 1,375,526 $ - $ 1,375,526 $ 1,481,722 Less benefits to donor costs 234, , ,948 1,141,220-1,141,220 1,275,774 Contributions 72, , , ,148 Legacies 10,000-10,000 - Total received directly 1,224, ,455 1,328,619 1,516,922 Received indirectly Federated fundraising organizations 34,751-34,751 39,137 Total received indirectly 34,751-34,751 39,137 Total public support 1,258, ,455 1,363,370 1,556,059 Grants from government agencies 17,136-17,136 17,136 Other revenue Investment income 2,292-2,292 42,136 Service program fees ,107 Miscellaneous 352, ,360 1,858 Total other revenue 355, ,537 47,101 Net assets released from restrictions 88,894 (88,894) - - Total public support and revenue 1,720,482 15,561 1,736,043 1,620,296 EXPENSES Program services Research 448, , ,229 Society activities 324, , ,465 Client programs 290, , ,129 Community programs 197, , ,913 Professional education and training 143, , ,320 Public education 64,929-64,929 74,483 Total program services expenses 1,469,669-1,469,669 1,414,539 Supporting services Fundraising 231, , ,050 Management and general 158, , ,979 Total supporting services expenses 390, , ,029 Total expenses 1,860,207-1,860,207 1,837,568 CHANGE IN NET ASSETS (139,725) 15,561 (124,164) (217,272) NET ASSETS Beginning of year 264, , , ,308 End of year $ 124,822 $ 170,050 $ 294,872 $ 419,036 See accompanying notes -3-

6 STATEMENT OF ACTIVITIES Year ended September 30, 2013 Temporarily Unrestricted Restricted Total Public support Received directly Special events (includes in-kind donations of $120,050) $ 1,481,722 $ - $ 1,481,722 Less benefits to donor costs 205, ,948 1,275,774-1,275,774 Contributions 86, , ,148 Total received directly 1,362, ,248 1,516,922 Received indirectly Federated fundraising organizations 39,137-39,137 Total received indirectly 39,137-39,137 Total public support 1,401, ,248 1,556,059 Grants from government agencies - 17,136 17,136 Other revenue Investment income 42,136-42,136 Service program fees 3,107-3,107 Miscellaneous 1,858-1,858 Total other revenue 47,101-47,101 Net assets released from restrictions 109,743 (109,743) - Total public support and revenue 1,558,655 61,641 1,620,296 EXPENSES Program services Research 414, ,229 Society activities 325, ,465 Client programs 319, ,129 Community programs 170, ,913 Professional education and training 110, ,320 Public education 74,483-74,483 Total program services expenses 1,414,539-1,414,539 Supporting services Fundraising 280, ,050 Management and general 142, ,979 Total supporting services expenses 423, ,029 Total expenses 1,837,568-1,837,568 CHANGE IN NET ASSETS (278,913) 61,641 (217,272) NET ASSETS Beginning of year 543,460 92, ,308 End of year $ 264,547 $ 154,489 $ 419,036 See accompanying notes -4-

7 STATEMENT OF FUNCTIONAL EXPENSES Year ended September 30, 2014 with comparative totals for 2013 Professional Society Client Community Education Research Activities Programs Programs and Training Salaries $ - $ - $ 144,918 $ 140,610 $ 102,924 Employee benefits ,912 11,557 8,460 Payroll taxes - - 9,023 8,755 6, , , ,792 Printing - - 2,239 1, Postage and shipping - - 1, Telephone - - 2,091 2,005 1,468 Supplies Dues and memberships Professional and other contract service fees - - 8,369 7,028 5,145 Donated public service announcements and advertising Travel - - 4,883 2, Meetings - - 6, Occupancy ,886 14,444 10,573 Furniture and equipment Direct financial assistance , Awards and prizes Miscellaneous expense ,438 1,855 1,357 Depreciation and amortization expense - - 5,624 5,457 3,994 Chapter support of Society research investment 448, Total expenses before Chapter support of Society activities 448, , , ,693 Chapter support of Society activities - 324, Total expenses $ 448,251 $ 324,595 $ 290,983 $ 197,218 $ 143,693 Less: Benefit to donor expenses Total expenses as reported on the statement of activities See accompanying notes -5-

8 Total Program Total and Benefit Public Program Fund Management Supporting To Donor Totals Education Services Raising and General Services Costs $ 43,308 $ 431,760 $ 99,350 $ 113,738 $ 644,848 $ - $ 644,848 $ 534,047 3,560 35,489 8,166 9,349 53,004-53,004 88,448 2,696 26,882 6,186 7,082 40,150-40,150 40,306 49, , , , , , ,801 4,718 8,798 22, ,734-31,734 38, ,635 6, ,249-11,249 12, ,182 1,417 1,622 9,221-9,221 8, , ,342 8,099 12,441 11, ,165 22,707 18,346 5,685 46,738-46,738 77, ,500-42,500-42,500 49, ,404 8,585 1,065 18, , ,403 90, ,971 1, ,921 2,590 11,511 17,522 4,449 44,352 10,205 11,683 66,240 14,073 80,313 71, , ,701-1,701 4,710-63, ,463-63,463 91, ,843 56,982 80, ,221 1,311 1,500 20,032 52,352 72,384 58,985 1,681 16,756 3,855 4,414 25,025-25,025 25, , , , ,229 64,929 1,145, , ,790 1,535, ,306 1,769,918 1,718, , , , ,465 $ 64,929 $ 1,469,669 $ 231,748 $ 158,790 $ 1,860,207 $ 234,306 2,094,513 2,043,516 (234,306) (205,948) $ 1,860,207 $ 1,837,568

9 STATEMENT OF FUNCTIONAL EXPENSES Year ended September 30, 2013 Professional Society Client Community Education Research Activities Programs Programs and Training Salaries $ - $ - $ 123,418 $ 109,800 $ 71,028 Employee benefits ,440 18,185 11,764 Payroll taxes - - 9,315 8,287 5, , ,272 88,153 Printing - - 3,597 1, Postage and shipping - - 1, Telephone - - 2,095 1,689 1,076 Supplies - - 2,382 1, Dues and memberships Professional and other contract service fees ,460 5,993 3,877 Donated public service announcements and advertising Travel - - 8,182 1, Meetings , Occupancy ,629 13,014 8,419 Furniture and equipment - - 1, Direct financial assistance , Awards and prizes Miscellaneous expense ,572 2,821 1,825 Depreciation and amortization expense - - 5,952 5,295 3,425 Chapter support of Society research investment 414, Total expenses before Chapter support of Society activities 414, , , ,320 Chapter support of Society activities - 325, Total expenses $ 414,229 $ 325,465 $ 319,129 $ 170,913 $ 110,320 Less: Benefit to donor expenses Total expenses as reported on the statement of activities See accompanying notes -6-

10 Total Program Total and Benefit Public Program Fund Management Supporting To Donor Education Services Raising and General Services Costs Total $ 41,282 $ 345,528 $ 96,396 $ 92,123 $ 534,047 - $ 534,047 6,837 57,226 15,965 15,257 88,448-88,448 3,115 26,078 7,275 6,953 40,306-40,306 51, , , , , ,801 7,625 13,126 24, ,911-38,911 1,857 4,950 6, ,407-12, ,485 1,460 1,395 8,340-8, , ,280 5,594 11, ,108 24,438 48,492 5,028 77,958-77, ,312-49,312-49, ,990 7, ,165 71,496 90, ,970 1, ,942 2,580 17,522 4,893 40,955 11,426 10,919 63,300 8,442 71, , ,710-4,710-91, ,951-91, ,971 80,065 1,060 16,278 2,476 2,366 21,120 37,865 58,985 1,991 16,663 4,649 4,442 25,754-25, , , ,229 74,483 1,089, , ,979 1,512, ,948 1,718, , , ,465 $ 74,483 $ 1,414,539 $ 280,050 $ 142,979 $ 1,837,568 $ 205,948 2,043,516 (205,948) $ 1,837,568

11 STATEMENTS OF CASH FLOWS Years ended September 30, 2014 and 2013 CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ (124,164) $ (217,272) Adjustments to reconcile change in net assets to net cash provided by (used for) operating activities Depreciation and amortization expense 25,025 25,754 Net realized and unrealized gain on investments (1,149) (32,607) (Increase) decrease in Contributions and other receivables (22,184) 38,175 Prepaid expenses (2,695) 19,167 Due from Home Office - 19,098 Increase (decrease) in Due to Home Office 8,263 4,421 Accounts payble and accrued expenses (13,135) (34,129) Deferred revenue (1,615) 2,255 Net cash used for operating activities (131,654) (175,138) CASH FLOWS FROM INVESTING ACTIVITIES Net proceeds from sale of investments 24, ,542 Increase (decrease) in cash (107,163) 67,404 CASH Beginning of year 410, ,144 End of year $ 303,385 $ 410,548 See accompanying notes -7-

12 NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 (1) ORGANIZATION The National Multiple Sclerosis Society, Delaware Chapter (the "Chapter") is a nonprofit organization which raises funds in the Delaware area to provide services to people with multiple sclerosis, support multiple sclerosis research through its national organization and educate the public about the impact of multiple sclerosis. Objectives include locating people with the disease, determining their needs, meeting those needs to the extent feasible and bringing clients into contact with existing community agencies which can assist in filling those needs. (2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The financial statements have been prepared on the accrual basis of accounting and, accordingly, reflect all significant receivables, payables and other liabilities. Financial Statement Presentation The Chapter reports information regarding its financial position and activities according to three classes of net assets as follows: Unrestricted net assets Net assets that are not subject to donor-imposed restrictions and, therefore, are fully available at the discretion of management and the Board of Trustees for the Chapter to utilize in any of its program or supporting services. Temporarily restricted net assets Net assets that are subject to donor-imposed restrictions that will be satisfied by actions of the Chapter and/or the passage of time. When a restriction is satisfied, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statements of activities as net assets released from restrictions. Permanently restricted net assets Net assets that are subject to donor-imposed restrictions that such assets be maintained in perpetuity but permit the Chapter to expend all or a portion of the income derived from the donated assets. There were no permanently restricted net assets as of September 30, 2014 and Accounting Estimates In preparing financial statements in conformity with U.S. generally accepted accounting principles, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. -8-

13 NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 Fair Value Measurements of Assets and Liabilities Generally accepted accounting principles ("GAAP") define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Chapter. Unobservable inputs reflect the Chapter's assumptions about the inputs market participants would use in pricing the asset or liability based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows: Level 1 Valuations based on quoted prices in active markets for identical assets or liabilities that the Chapter has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these assets and liabilities does not require a significant degree of judgment. Level 2 Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 Valuations based on inputs that are unobservable, that is, inputs that reflect the Chapter's own assumptions. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Chapter believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Cash and Cash Equivalents The Chapter considers highly liquid investments with maturities of three months or less when purchased to be cash equivalents. The Chapter had no cash equivalents at September 30, 2014 and Investments Investments in marketable securities with readily determinable fair values and all investments in debt securities are reported at fair value with gains and losses included in the statements of activities. Donated securities are recorded as contributions at their fair value at date of receipt. Interest and dividend income is recorded as earned. Property and Equipment Property and equipment is recorded at cost. Donated property and equipment is recorded as contributions at fair value as of the date of receipt. Depreciation of furniture and equipment is computed on the straight-line method over the estimated useful lives of the assets. Amortization of leasehold improvements is computed on the straight-line method over the estimated lives of the leasehold assets, not exceeding the remaining term of the lease. Special Event Revenue and Expenses Special event revenue and expenses are recognized during the period in which the related event occurs. Accordingly, revenue received in advance for special events that are held subsequent to year-end is deferred and expenses paid in advance for special events that are held subsequent to year end are included in prepaid expenses. -9-

14 NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 During 2014 and 2013, the Chapter received approximately 55% and 64% of its total public support and revenue in connection with two special events. Contributions and Grants from Government Agencies Contributions and grants from government agencies received are recorded as unrestricted, temporarily restricted or permanently restricted net assets depending on the absence or existence and nature of any donor restrictions. Donor-restricted contributions and grants from government agencies whose restrictions are satisfied in the same period are reported as unrestricted support. Unconditional contributions and grants from government agencies are recognized as revenue when the related promise to give is received. Conditional contributions and grants from government agencies are recognized as revenue when the conditions are satisfied. Contributions and other receivables consist primarily of public support for special events held before year end and are recorded at their net realizable value. Donated Services and Materials The Chapter receives a significant amount of donated time from a substantial number of volunteers without compensation for its various program and supporting services. The financial statements do not reflect the value of these contributed services since they do not meet the criteria for recognition. The Chapter also receives donated materials, consisting primarily of direct benefit to donor items and promotional items, in connection with its special events. The donated materials are recorded as both public support and expenses in the accompanying statements of activities and functional expenses at their estimated value on the date of receipt. The Chapter received donated materials of $104,039 in 2014 and $120,050 in Advertising Costs Advertising costs are expensed as incurred. Advertising expense was $49,312 for 2013, all of which was donated advertising and public service announcements. There was no advertising expense in Functional Allocation of Expenses The costs of providing the program and supporting services have been presented on a functional basis in the statements of activities and functional expenses. Accordingly, certain costs have been allocated among the program and supporting services benefited. Income Tax Status The Chapter qualifies as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code, and no liability or provision for federal income taxes is included in the accompanying financial statements. Management has analyzed the tax positions taken by the Chapter and concluded that, as of September 30, 2014, there were no uncertain tax positions taken or are expected to be taken. Accordingly, no interest or penalties related to uncertain tax positions have been recorded in the accompanying financial statements. The Chapter is subject to audits by various taxing jurisdictions; however, no audit for any tax period is currently in progress. Management believes that the Chapter is no longer subject to such audits for years ended on or prior to September 30,

15 NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 Concentrations of Credit Risk Financial instruments that potentially subject the Chapter to concentration of credit risk include cash and contributions and other receivables. The Chapter maintains its cash in a non-interest bearing account at one local financial institution. At times, the balance in this account may exceed federally-insured limits. The Chapter has not experienced any losses on its cash account and the Chapter believes that it will not be exposed to significant credit risk. The contributions and other receivables, which consist primarily of amounts due in connection with special events held prior to year end, are expected to be collected in Reclassifications Certain items in the 2013 financial statements have been reclassified in order to conform to the 2014 presentation. (3) INVESTMENTS Investments at September 30, 2014 and 2013 consisted of the following: Money market fund $ - $ 185 Mutual funds equity - 18,090 Certificate of deposit - 5,067 $ - $23,342 The investment income for the years ended September 30, 2014 and 2013 consisted of the following: Interest and dividend income $ 1,143 $ 9,529 Net realized and unrealized gains 1,149 32,607 $ 2,292 $42,136 (4) PROPERTY AND EQUIPMENT Property and equipment at September 30, 2014 and 2013 consisted of the following: Leasehold improvements $ 58,566 $ 58,566 Furniture and equipment 39,011 39,011 97,577 97,577 Less accumulated depreciation and amortization (74,170) (49,145) $ 23,407 $ 48,

16 NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 (5) RETIREMENT PLAN The Chapter participates in a noncontributory defined contribution retirement plan through the National Multiple Sclerosis Society, which covers substantially all employees. The Chapter's contributions are based on a percentage of the eligible employees' compensation. For the years ended September 30, 2014 and 2013, contributions were based on 3% of the eligible employees' gross compensation. Contributions for the years ended September 30, 2014 and 2013 were $7,421 and $13,600, respectively. (6) LEASES The Chapter leases its office facility in Wilmington, Delaware pursuant to a noncancelable operating lease that expires December 31, Rent expense was $66,240 for 2014 and $63,300 for The minimum annual lease commitments under this lease are $67,560 for the year ending September 30, 2015 and $16,890 for the year ended September 30, In February 2012, the Chapter entered into a month-to-month sublease pursuant to which it receives $100 per month. Rental income was $1,000 for 2014 and $1,200 for (7) TEMPORARILY RESTRICTED NET ASSETS Temporarily restricted net assets at September 30, 2014 and 2013 are available for the following purposes: 2014 Balance Balance September 30, 2013 Additions Releases September 30, 2014 Purpose Restrictions Home Able Program $ 60,090 $ 26,000 $ (1,000) $ 85,090 Scholarships 44,300 43,819 (27,925) 60,194 Computer upgrades 8, ,266 Emergency financial assistance program 25,333 18,136 (43,469) - Time Restrictions Contributions receivable 16,500 16,500 (16,500) 16,500 $ 154,489 $104,455 $(88,894) $170, Balance Balance September 30, 2012 Additions Releases September 30, 2013 Purpose Restrictions Home Able Program $19,431 $ 88,300 $ (47,641) $ 60,090 Scholarships 36,139 43,448 (35,287) 44,300 Computer upgrades 9,982 - (1,716) 8,266 Emergency financial assistance program 27,296 23,136 (25,099) 25,333 Time Restrictions Contributions receivable - 16,500-16,500 $92,848 $171,384 $(109,743) $154,

17 NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 (8) TRANSACTIONS WITH NATIONAL HEADQUARTERS The National Multiple Sclerosis Society (the "Society") calculates the National Programs Expense, which funds research and other Society activities, for each Chapter in advance of the fiscal year after a complete review by the Budget Review Committee and National Board. The Chapter's National Programs Expense is calculated using the average of the previous two years' audited results as the revenue base. The remittance percentage is subject to adjustment each year to ensure that the Society meets its programmatic goals and that all donor restrictions are honored. The Chapter's National Programs Expense under this policy was calculated to be $772,846 for 2014 and $739,694 for By setting the Chapter's National Programs Expense in advance, the Chapters and the Home Office are in a better position to control resources through their respective budgeting and planning processes. During 2014, the Chapter received a subsidy of $350,000 from the Society in response to a cash flow shortage, resulting from reduced participation in the special events and employee severance costs. The subsidy of $350,000 is included in other miscellaneous revenue in the accompanying 2014 statement of activities. (9) ASSETS MEASURED AT FAIR VALUE The following table presents information about the Chapter's assets that are measured at fair value and the valuation inputs used to value them: 2014 Quoted Prices in Significant Other Significant Active Markets Observable Inputs Unobservable Total (Level 1) (Level 2) Inputs (Level 3) Contributions receivable $ 16,500 $ - $ 16,500 $ Quoted Prices in Significant Other Significant Active Markets Observable Inputs Unobservable Total (Level 1) (Level 2) Inputs (Level 3) Investments Money market fund $ 185 $ 185 $ - $ - Mutual funds equity 18,090 18, Certificate of deposit 5,067-5,067 - Contributions receivable 16,500-16,500 - $ 39,842 $ 18,275 $ 21,567 $ - (10) LIQUIDITY A significant amount of the Chapter's annual revenues is derived from special events that have been negatively impacted by the challenging economic environment. As a result, the Chapter has experienced reductions in its net assets over the last several years. During 2014 and again in October 2014 (fiscal 2015) the Society provided subsidies to the Chapter amounting to $350,000 and $75,000, respectively, to assist with these declining cash flows. -13-

18 NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 The Chapter has implemented continued efforts to increase revenues and control expenses, however, the Chapter may be dependent upon continued additional financial support from the Society for the foreseeable future. The Society has communicated to Chapter management that it supports the ongoing viability of the Chapter and is committed to providing ongoing financial support to ensure the continuation of the important work the Chapter is doing to provide essential services to people living with multiple sclerosis. The Chapter is also exploring the opportunity to realign its activities with the Greater Delaware Valley Chapter resulting in the formation of a new Chapter. Such a merger would require Society approval and the consent of the Board of Trustees of both chapters. (11) SUBSEQUENT EVENTS Management has evaluated subsequent events through December 6, 2014, the date on which the financial statements were available to be issued. No material subsequent events have occurred since September 30, 2014 that required recognition or disclosure in the financial statements. -14-