HAIRY CELL LEUKEMIA FOUNDATION New York, New York

Transcription

1 New York, New York FINANCIAL STATEMENTS DECEMBER 31, 2016 (See independent auditors' report)

2 New York, New York FINANCIAL STATEMENTS December 31, 2016 TABLE OF CONTENTS INDEPENDENT AUDITORS' REPORT 1 FINANCIAL STATEMENTS Statement of Assets and Net Assets Cash Basis 3 Statement of Support, Revenue, and Expenses Cash Basis 4 NOTES TO FINANCIAL STATEMENTS 5 SUPPLEMENTARY INFORMATION Schedule 1 - Schedule of Functional Expenses Cash Basis 8

3 Mowery & Schoenfeld LLC 475 Half Day Road Suite 250 Lincolnshire, Illinois P F CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS INDEPENDENT AUDITORS' REPORT The Board of Directors Hairy Cell Leukemia Foundation New York, New York We have audited the accompanying financial statements of Hairy Cell Leukemia Foundation (a nonprofit organization), which comprise the statement of assets and net assets cash basis as of December 31, 2016, and the related statement of support, revenue, and expenses cash basis for the year 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 the cash basis of accounting as described in Note 2; this includes determining that the cash basis of accounting is an acceptable basis for the preparation of the financial statements in the circumstances. Management is also responsible for 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. Auditors Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit 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

4 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the assets and net assets of Hairy Cell Leukemia Foundation as of December 31, 2016, and its support, revenue, and expenses for the year then ended in accordance with the cash basis of accounting as described in Note 2. Basis of Accounting We draw attention to Note 2 of the financial statements, which describes the basis of accounting. The financial statements are prepared on the cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Report on Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The schedule of functional expenses cash basis, which is the responsibility of management, is presented for purposes of additional analysis and is not a required part of the financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we do not express an opinion or provide any assurance on it. Mowery & Schoenfeld, LLC Lincolnshire, Illinois October 31,

5 STATEMENT OF ASSETS AND NET ASSETS - CASH BASIS DECEMBER 31, 2016 ASSETS CURRENT ASSETS Cash and cash equivalents $ 339,021 Total current assets 339,021 $ 339,021 LIABILITIES AND NET ASSETS NET ASSETS Unrestricted $ 264,021 Temporarily restricted 75, ,021 $ 339,021 See accompanying notes to financial statements

6 STATEMENT OF SUPPORT, REVENUE, AND EXPENSES - CASH BASIS FOR THE YEAR ENDED DECEMBER 31, 2016 Temporarily Unrestricted Restricted Total SUPPORT AND REVENUE Contributions $ 210,827 $ - $ 210,827 Interest income Total support and revenue 210, ,869 EXPENSES (Schedule 1) Program services 274, ,654 Management and general 12,189-12,189 Fundraising 19,160-19,160 Total expenses 306, ,003 Change in net assets (95,134) - (95,134) NET ASSETS, BEGINNING OF YEAR 359,155 75, ,155 NET ASSETS, END OF YEAR $ 264,021 $ 75,000 $ 339,021 See accompanying notes to financial statements

7 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 1 ORGANIZATION AND PURPOSE Hairy Cell Leukemia Foundation (the "Organization ) is an Illinois nonprofit corporation established in 1984 under the laws of the State of Illinois. The Organization is dedicated to improving outcomes for patients by advancing research into the causes and treatment of hairy cell leukemia, as well as by providing educational resources and comfort to all those affected by hairy cell leukemia. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The accompanying financial statements have been prepared on the cash basis of accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. That basis differs from generally accepted accounting principles in that certain support and revenue and related assets are recognized when received rather when earned or promised and certain expenses are recognized when paid rather than when the obligation is incurred. Accounts receivable, pledges receivable, accrued expenses, account payables, deferred expenses, and other assets and liabilities which may be material in amount are not reflected; and the financial statements are not intended to present the results of operations and financial position in conformity with generally accepted accounting principles. Contributions and Financial Statement Presentation All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. When a temporary restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of support, revenue, and expenses cash basis as net assets released from restrictions. Contributions received with donorimposed restrictions that are met in the same year in which the contributions are received are classified as unrestricted contributions. As of December 31, 2016, Hairy Cell Leukemia Foundation has $75,000 of temporarily restricted net assets to be used toward the patient data registry. Accounting Estimates The preparation of financial statements in conformity with the cash basis of accounting requires management to make estimates and assumptions that may 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 amount of revenues and expenses during the reporting period. Actual results could differ from those estimates

8 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Cash and Cash Equivalents The Organization presents its cash flows using the indirect method. The Organization considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Joint Costs Allocated The costs of providing programs have been summarized on a functional basis in the statement of support, revenue, and expenses cash basis. Expenses are charged to program or support services based upon specific identification and allocation estimates. Indirect payroll and operational expenses have been allocated based on direct salary expenditures. Income Taxes The Organization received notification that it qualifies as a tax-exempt organization under section 501(c)(3) of the U.S. Internal Revenue Code and corresponding provisions of state law and, accordingly, is not subject to federal or state income tax. There was no unrelated business income for the year ended December 31, Accordingly, no provision for income tax has been included in the accompanying financial statements. Adoption of New Accounting Standards Effective December 31, 2016, the Organization adopted Financial Accounting Standards Board (FASB) Accounting Standards Update No , Presentation of Financial Statements Going Concern (Subtopic ): Disclosure of Uncertainties about an Entity s Ability to Continue as a Going Concern (ASU ), which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management of the Organization to perform each reporting period an assessment of an entity s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity s ability to continue as a going concern. Management does not expect the adoption of this standard to have a material impact on the financial statements. Subsequent Events Events that occurred subsequent to December 31, 2016 have been evaluated by management through the time of issuing this report on October 31,

9 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 3 LEASES The Organization leases its office facilities on a month-to-month basis. The lease remains under the same terms as the original operating lease agreement that expired October 31, The monthly payments for the facility are approximately $1,500. Rent expense totaled $19,827 for the year ended December 31, NOTE 4 MAJOR CONTRIBUTORS Contributors are considered major when contributions exceed 10% of total net support for the year. For the year ended December 31, 2016, the Organization received 60% of the Organization s revenue and other support from three donors. NOTE 5 RELATED PARTY TRANSACTIONS For the year ended December 31, 2016, the Organization received donations directly or indirectly from the Board of Directors approximating $90,000. NOTE 6 CONCENTRATIONS OF CREDIT RISK The Organization maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Organization has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. NOTE 7 COMMITMENT As of January 1, 2015, the Organization entered into a grant agreement with The Ohio State University, which committed a total of $379,750 toward the development of the patient data registry. The Organization owes $181,375 of this amount as of December 31, During the year ended December 31, 2016, the Organization committed funding to research grants. The Organization owes a total of $129,131 for awarded research grants as of December 31,

10 SUPPLEMENTARY INFORMATION

11 Schedule 1 SCHEDULE OF FUNCTIONAL EXPENSES - CASH BASIS FOR THE YEAR ENDED DECEMBER 31, 2016 Support Services Program Management Fund- Services and General Raising Total Expenses Grants $ 125,360 $ - $ - $ 125,360 Legal fees Office expense - 4,757 2,927 7,684 Information technology Meetings and events 62, ,960 Salaries 66,000 4,125 12,375 82,500 Payroll taxes 4, ,891 Rent 15, ,974 19,827 Insurance - 1,445-1,445 Total expenses $ 274,654 $ 12,189 $ 19,160 $ 306,