NATIONAL VOLUNTARY ORGANIZATIONS ACTIVE IN DISASTER, INC.

Transcription

1 NATIONAL VOLUNTARY ORGANIZATIONS ACTIVE IN DISASTER, INC. FINANCIAL STATEMENTS AND REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS DECEMBER 31, 2011 and 2010 TAIT, WELLER & BAKER LLP

2 TABLE OF CONTENTS REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 1 Page FINANCIAL STATEMENTS Statements of Financial Position, December 31, 2011 and Statements of Activities, Year ended December 31, 2011 with Summarized Information for Statements of Cash Flows, Years ended December 31, 2011 and Notes to Financial Statements 5

3 REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS To the Board of Directors National Voluntary Organizations Active In Disaster, Inc. Arlington, Virginia We have audited the accompanying statement of financial position of the National Voluntary Organizations Active In Disaster, Inc. (a nonprofit organization) as of December 31, 2011, and the related statements of activities 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 2010 financial statements and, in our report dated August 2, 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. Those standards require that we 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. 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 National Voluntary Organizations Active In Disaster, Inc. at December 31, 2011, 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. Philadelphia, Pennsylvania May 11,

4 STATEMENTS OF FINANCIAL POSITION December 31, 2011 and 2010 ASSETS CURRENT ASSETS Cash and cash equivalents $ 129,785 $ 77,914 Dues receivable 19,525 38,232 Grant receivable 37,721 39,856 Prepaid expenses 22,791 8,277 Total Current Assets 209, ,279 NON-CURRENT ASSETS Security deposit 6,531 9,760 Property and equipment, net of accumulated depreciation of $1,695 in 2011 and $507 in ,658 2,162 Total Non-Current Assets 30,189 11,922 $ 240,011 $ 176,201 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable and payroll liabilities $ 21,310 $ 12,894 Deferred revenue 25,750 - Total Current Liabilities 47,060 12,894 NET ASSETS Unrestricted 142, ,307 Temporarily restricted 50,000 50,000 Total Net Assets 192, ,307 Total Liabilities and Net Assets $ 240,011 $ 176,201 See accompanying notes to financial statements. 2

5 STATEMENTS OF ACTIVITIES Year ended December 31, 2011 with Summarized Information for 2010 Temporarily Unrestricted Restricted Total Total SUPPORT AND REVENUE Funding, grants and pledges $ 79,929 $ 100,000 $179,929 $ 178,057 Conference revenue 317, , ,002 Membership dues 211, , ,325 Interest income Miscellaneous 5,444-5,444 1,548 Net assets released from restriction 100,000 (100,000) - - Total Support and Revenue 715, , ,796 EXPENSES Program expenses 263, , ,645 Personnel and subcontractors 264, , ,597 Rent 52,528-52,528 43,561 Office and admin expenses 105, ,213 92,259 Total Expenses 685, , ,062 Change in unrestricted net assets 29,644-29,644 8,734 NET ASSETS Beginning of year 113,307 50, , ,573 Ending of year $ 142,951 $ 50,000 $192,951 $163,307 See accompanying notes to financial statements. 3

6 STATEMENTS OF CASH FLOWS Years ended December 31, 2011 and CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ 29,644 $ 8,734 Adjustments to reconcile change in net assets to net cash provided by operating activities Depreciation 1, Changes in operating assets and liabilities Dues receivable 18,707 (30,972) Grant receivable 2,135 (22,336) Prepaid expenses (14,514) (721) Security deposit 3,229 - Accounts payable and payroll liabilities 8,416 (387) Deferred revenue 25,750 (75) Net cash provided by (used for) operating activities 74,555 (45,299) CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (22,684) (699) Net cash used for investing activities (22,684) (699) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 51,871 (45,998) CASH AND CASH EQUIVALENTS Beginning of year 77, ,912 End of year $ 129,785 $ 77,914 See accompanying notes to financial statements. 4

7 NOTES TO FINANCIAL STATEMENTS December 31, 2011 and 2010 (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION AND NATURE OF ACTIVITIES National Voluntary Organizations Active In Disaster, Inc. ( National VOAD ) was re-domesticated as a non-profit organization in the Commonwealth of Virginia on June 25, The purpose of National Voluntary Organizations Active In Disaster is to provide a forum where organizations share knowledge and resources throughout the disaster cycle-preparation, response and recovery-to help disaster survivors and their communities. Specifically, National VOAD members form a coalition of non-profit organizations that respond to disasters as part of their overall mission. INCOME TAXES National VOAD is exempt from federal income tax purposes under Section 501(c)(3) of the internal revenue code (the Code ) and has been classified as a public charity under Section 509(a)(1) of the Code. National VOAD has reviewed their tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on federal and state tax returns for the open tax years ( ) or expected to be taken in the current year. CONTRIBUTIONS National VOAD records unconditional promises to give as a receivable and revenue in the year pledged, net of the discount to present value of the future cash flows. Gifts of cash and other assets are reported as restricted support if they are received with donor stipulations that limit the use of the donated assets. 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. ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires the use of management s estimates. SUBSEQUENT EVENTS Subsequent events after the balance sheet date through the date that the financial statements were available for issuance May 11, 2012, have been evaluated in the preparation of the financial statements. CASH AND CASH EQUIVALENTS National VOAD considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents for purposes of the statement of cash flows exclude permanently restricted cash and cash equivalents. 5

8 NOTES TO FINANCIAL STATEMENTS (Continued) December 31, 2011 and 2010 PROPERTY AND EQUIPMENT Property and equipment are stated at cost. Depreciation is provided on a straight-line basis over their estimated useful lives, which is 3-7 years. Depreciation expense for the years ended December 31, 2011 and 2010 was $1,188 and $458, respectively. FUNCTIONAL ALLOCATION OF EXPENSES The costs of providing the various programs and activities have been summarized on a functional basis in the statement of activities based on management estimates of time spent and costs to support activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited. (2) NET ASSETS Temporarily restricted net assets at December 31, 2011 and 2010 are available for the following purposes: Operations $ 50,000 $ 50,000 For the year ending December 31, 2011, net assets of $100,000 were released from restrictions by incurring expenses satisfying the restricted purposes. (3) LEASES National VOAD leases its offices facilities in Arlington Virginia under an operating lease expiring in August The lease is subject to adjustments for escalations in annual rent. Future minimum rental under its operating lease at December 31, 2011 is as follows: Year ending Amount 2012 $ 78, ,542 Total $ 139,502 6