BILLINGS CRISIS PREGNANCY CENTER, INC. D.B.A. LaVie FINANCIAL STATEMENTS DECEMBER 31, 2017 and 2016

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1 D.B.A. LaVie FINANCIAL STATEMENTS

2 TABLE OF CONTENTS INDEPENDENT ACCOUNTANT S REVIEW REPORT... 1 FINANCIAL STATEMENTS: Statements of Financial Position... 3 Statements of Activities... 4 Statements of Functional Expenses... 5 Statements of Cash Flows

3 PO Box Billings MT Office: (406) Fax: (888) INDEPENDENT ACCOUNTANT S REVIEW REPORT To the Board of Directors of Billings Crisis Pregnancy Center, Inc. We have reviewed the accompanying financial statements of the Billings Crisis Pregnancy Center, Inc. (a nonprofit organization), which comprise the statements of financial position as of December 31, 2017 and 2016, and the related statements of activities and cash flows for the years then ended, and the related notes to the financial statements. A review is substantially less in scope than audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion. 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. Accountant s Responsibility Our responsibility is to conduct the review engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. Those standards require us to perform procedures to obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the financial statements for them to be in accordance with accounting principles generally accepted in the United States of America. We believe that the results of our procedures provide a reasonable basis for our conclusion. 1

4 Accountant s Conclusion Based upon our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in accordance with accounting principles generally accepted in the United States of America. Kevin T. King & Company, P.C. Kevin T. King & Company, P.C. Billings, Montana August 31,

5 STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2017 AND ASSETS Cash and cash equivalents $ 256,666 $ 210,822 Investments 96,201 78,259 Property and equipment, net 291, ,095 Prepaid expenses and other assets 44,795 8,200 Total Assets $ 689,372 $ 570,376 LIABILITIES AND NET ASSETS Liabilities Accounts payable $ 3,621 $ 4,500 Accrued payroll and related expenses 1,975 3,891 Accrued vacation 1,024 12,369 Accrued interest expense Notes payable 85,543 91,500 Total Liabilities 92, ,565 Net Assets Unrestricted 528, ,146 Temporarily restricted 21,674 19,705 Permanently restricted 46,960 46, , ,811 Total Liabilities and Net Assets $ 689,372 $ 570,376 See accompanying notes and independent accountant's review report 3

6 STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2017 AND Changes in Unrestricted Net Assets Revenue and Support Contributions $ 644,030 $ 534,157 Interest and dividends 1, Unrealized gains and losses 1,705 - Other support 11,530 7,285 In-kind contributions 124, ,743 Total Revenue and Support 783, ,418 Net Assets Released From Restrictions Expiration of time and purpose restrictions 2,348 3,349 Program Expenses 526, ,742 Support Expenses General and administrative 78,309 73,320 Fundraising 43,028 31,986 Total Support Expenses 121, ,306 Total Program and Support Expenses 648, ,048 Increase in Unrestricted Net Assets 137,124 55,719 Changes in Temporarily Restricted Net Assets Unrealized net gains on investments 2,559 11,311 Interest and dividend income 1, Net assets released from restrictions Expiration of time and purpose restrictions (2,348) (3,349) Increase in Temporarily Restricted Net Assets 1,969 8,799 Increase in Net Assets 139,093 64,518 Net Assets, Beginning of Year 457, ,293 Net Assets, End of Year $ 596,904 $ 457,811 See accompanying notes and independent accountant's review report 4

7 STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2017 Program Expenses General and Administrative Fundraising Total Salaries and wages $ 214,144 $ 37,666 $ 11,590 $ 263,400 Clinical services 108, ,607 Advertising and outreach 42,189-19,672 61,861 Payroll taxes and benefits 22,406-10,447 32,853 Depreciation 23,622 4,169-27,791 Professional fees - 9,202-9,202 Office 19,638 4,909-24,547 Insurance 11,673 2,918-14,591 Utilities 14,357 1,598-15,955 Computers and software 5, ,998 Training and recognition 6, ,638 Interest expense 2, ,551 Lease expense 30,331 5,352-35,683 Telephone 1,900 3, ,332 Maintenance 19,642 3,466-23,108 Taxes and fees - 4,364-4,364 Miscellaneous ,037 Education 1, ,802 Total Expenses $ 526,983 $ 78,309 $ 43,028 $ 648,320 See accompanying notes and independent accountant's review report 5

8 STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2016 Program Expenses General and Administrative Fundraising Total Salaries and wages $ 211,919 $ 37,275 $ 11,469 $ 260,663 Clinical services 152, ,525 Advertising and outreach 22,009-10,262 32,271 Payroll taxes and benefits 19,004-8,861 27,865 Depreciation 19,821 3,498-23,319 Professional fees - 7,505-7,505 Office 11,986 2,997-14,983 Insurance 12,076 3,019-15,095 Utilities 15,315 1,702-17,017 Computers and software 4, ,716 Training and recognition 7, ,327 Interest expense 3, ,764 Lease expense 28,140 4,966-33,106 Telephone 1,936 3, ,454 Maintenance 21,098 3,723-24,821 Taxes and fees - 3,846-3,846 Miscellaneous ,094 Education Total Expenses $ 532,742 $ 73,320 $ 31,986 $ 638,048 See accompanying notes and independent accountant's review report 6

9 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2017 AND Cash Flows From Operating Activities Change in net assets $ 139,093 $ 64,518 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 27,791 23,319 Loss on disposal of fixed assets - 3,057 Unrealized (gains) and loss on investments (4,264) (11,311) Prepaid expenses and other assets (36,595) - Accounts payable (879) (7,916) Payroll tax and benefit liabilities (1,916) (310) Accrued vacation (11,345) 1,094 Accrued interest - (280) Total Provided by (Used In) Operating Activities 111,885 72,171 Cash Flows From Investing Activities Purchases of investments (13,678) - Purchase of property and equipment (46,406) (12,608) Total (Used in) Investing Activities (60,084) (12,608) Cash Flows From Financing Activities Payments made on outstanding commitments - (2,925) Principal payments on note payable (5,957) (5,714) Total (Used in) Financing Activities (5,957) (8,639) Increase (Decrease) in Cash and Equivalents 45,844 50,924 Cash and Equivalents - Beginning of Year 210, ,898 Cash and Equivalents - End of Year $ 256,666 $ 210,822 Supplemental Information Cash paid during the year for interest $ 3,551 $ 5,420 See accompanying notes and independent accountant's review report 7

10 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Activities The Billings Crisis Pregnancy Center, Inc. (the Center) d.b.a. LaVie, is a not-for-profit organization in Billings, Montana, that was formed in The Center s mission is to provide a safe environment for women in unplanned pregnancy, offering quality medical, education and counseling services. Medical services provided are: 1). Pregnancy diagnosis and options counseling. This would include urine testing for pregnancy and the use of Limited Obstetric Ultrasound. 2). Limited Sexually Transmitted Infections (STI) testing & treatment. The Center follows Center Disease Control (CDC) guidelines and sends referrals to Riverstone Health as needed for treatment and mandatory reporting. The Center serves the population at high risk for unplanned pregnancy. 3). High school sports physicals. These services increase the Center s community exposure to the Center s target population. Any student requiring further evaluation will be referred to a community provider and no work up will be attempted at our clinic. The Center is funded by the community, acquiring most of its necessary funding through the Sponsor- A-Day program, Baby Bottle Campaign and an Annual Fall Fundraising Event. These funds are primarily used to provide free medical services for women and families in an unplanned pregnancy, i.e. pregnancy medical consultations, pregnancy testing and limited obstetric ultrasound imaging. Basis of Accounting The Center maintains its books on the accrual basis of accounting. Accordingly, revenues are recognized when earned and expenses are recorded when incurred. The statement of presentation is in accordance with FASB (Financial Accounting Standards Board) ASC (Accounting Standards Codification) , Not-for-Profit Entities Presentation of Financial Statements. Under ASC , the Center is required to report information regarding its financial position and activities according to three classes of net assets; unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. 8

11 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Accounting (Continued) Unrestricted net assets Resources that are not restricted by donor-imposed stipulations. Generally these assets represent the operating assets of the Center. Temporarily restricted net assets Resources that are limited by donor stipulations that expire with the passage of time or upon completion of charitable goals. This category consists of undistributed earnings on permanent endowment funds and funds held for a specific project. All temporarily restricted net assets are designated for client services. Permanently restricted net assets Resources from donors to permanent endowments. The value of contributions to permanent endowments is never spent. Generally, the earnings on permanent endowments are classified as temporarily restricted until appropriated for expenditure based upon the Center s payout policy or other terms of the gift agreement. In some cases, the terms of the gift agreement require appreciated earning to also be permanently restricted. All permanently restricted net assets are restricted to client services. Contributions Under FASB ASC , Other Expenses-Contributions Made, contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence of any donor restrictions. It is the Center s policy to report contributions whose restrictions are met in the same reporting period as unrestricted contributions. The Center reports gifts of cash or other assets as temporarily or permanently restricted if they are received with donor stipulations that limit the use of the donated assets. When a donor 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. The Center reports gifts of land, buildings, and equipment as unrestricted support unless explicit donor stipulations specify how the donated assets must be used. Gifts of long-lived assets with explicit restrictions that specify how the assets are to be used and gifts of cash or other assets that must be used to acquire long-lived assets are reported as temporarily restricted. Absent donor stipulations regarding how long the donated assets must be maintained, the Center reports expirations of donor restrictions when the donated or acquired assets are placed in service. The Center does not accept gifts of non-cash assets which are inconsistent and not in accordance with the Center s mission unless such assets can be converted into a form which allows the Center to further its mission. 9

12 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Donated Materials and Services The Center recognizes the fair value of donated materials and services that create or enhance nonfinancial assets or that require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation. A substantial number of unpaid volunteers have made significant contributions of their time to develop the Center s various programs. The value of this unpaid volunteer time is not reflected in the accompanying financial statements since the value of these services cannot be objectively determined. Cash and Cash Equivalents For purposes of the statement of cash flows, the Center considers all unrestricted highly liquid investments with an initial maturity of three months or less to be cash equivalents. The carrying amounts reported on the statement of financial position approximate their fair value due to their short term maturity and/or liquidity. Concentration of Credit Risk Custodial credit risk is the risk that in the event of a bank failure, the Center s deposits may not be returned to it. The Center does not have a deposit policy for custodial credit risk. As of December 31, 2017 and 2016, the Center s bank balances were entirely insured by the FDIC. Investment securities are exposed to various risks, such as interest rate, credit and market risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the value of investment securities will occur in the near term and that such changes could materially affect the investment balances and the amounts reported in the statement of financial position. Investments Investments in marketable equity securities with readily determinable fair values and all investments in debt securities are reported at their fair value in the statement of financial position with the annual change in fair value being recorded as unrealized gains (losses) in current revenue and support for the year. Fair Value Measurements of Investments Investments are stated at fair value following applicable requirements of accounting policies generally accepted in the United States of America. Fair value is defined as the price the Center would receive upon selling an asset in an orderly transaction between market participants at the measurement date. Fair market values are determined by the most relevant available and observable inputs and are classified into three levels. 10

13 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fair Value Measurements of Investments (Continued) Level 1 Quoted prices in active markets for identical assets or liabilities. Example: listed securities. Level 2 Directly or indirectly observable inputs other than quoted prices included in Level 1. Example: thinly traded securities. Level 3 Unobservable inputs that are not corroborated by market data and reflect the entity s assumptions for pricing. Example: private equity funds. Inputs are used in applying the valuation techniques and broadly refer to the assumptions that the Center uses to make valuation decisions, assumptions about risk. Inputs may include quoted market prices, recent transactions, manager statements, periodicals, newspapers, provisions with agreements with investment managers, and other factors. An investment s level within the hierarchy is based upon the pricing transparency of the investment and does not necessarily correspond to the Center s perceived risk of that investment. Investments in cash equivalents, mutual funds, debt securities, and certain domestic and international equities are valued based on quoted market prices, and are therefore, typically classified within Level 1. Although the Center uses its best judgment in determining fair value, the values presented herein are not necessarily indicative of the amount that the Center could realize in a current transaction. Future events could affect the estimates of fair value and could be material to the financial statements. These events could also affect the amount realized upon redemption of the investments. Property and Equipment The Center capitalizes all expenditures for property and equipment in excess of $500. Property and equipment is recorded at historical cost if purchased or at fair market value at the date of acquisition, if donated. Depreciation is provided using the straight-line method over estimated useful lives of the assets with such lives ranging from three (3) to thirty (30) years. Depreciation expense was $27,791 and $23,319 for the years ended December 31, 2017 and 2016, respectively. Functional Expenses Direct identifiable expenses are charged to programs as appropriate. Expenses related to more than one function are charged to programs and supporting services as applicable. Administrative expenses include those expenses that are not directly identifiable with a specific program but provide for the overall support and direction of the Center and are allocated to programs accordingly. 11

14 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Estimates The preparation of the Center s financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Income Taxes The Center is a not-for-profit organization that is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code. Uncertain Tax Positions The Center has adopted FASB ASC , Accounting for Uncertainty in Income Taxes. The Center will record a liability for uncertain tax positions when it is more likely than not that a tax position would not be sustained if examined by the taxing authority. The Center continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. The Center s evaluation on December 31, 2017 revealed no uncertain tax positions that would have a material impact on the financial statements. The December 31, 2014 through December 31, 2017 tax years remain subject to examination by the IRS and Montana Department of Revenue. The Center does not believe that any reasonably possible changes will occur within the next twelve months that will have a material impact on the financial statements. Charity Care Aside from HIV and Sports Physicals, medical services are provided to patients free of charge. The Center primarily serves those who cannot afford health care services due to inadequate resources and/or are uninsured or underinsured. However, free services offered are not contingent upon a patient s inability to pay. Free medical services are considered charity to patients in accordance with the Center's established policies. Free services provided to these patients are not reported as revenue in the statement of activities. The amount of direct and indirect costs for services and supplies furnished under the Center s charity care policy totaled approximately $415,600 and $424,500 for the years ended December 31, 2017 and 2016, and is based on direct costs, plus the fair market value of in-kind clinic services received, related to servicing the Center s patients. 12

15 NOTE 2. PERMANENTLY RESTRICTED NET ASSETS The Center has adopted the provisions of FASB ASC , Not-for-Profit Organizations: Net Asset Classifications of Funds Subject to an Enacted Version of the Uniform Prudent Management of Institutional Funds Act (UPMIFA). The provision provides guidance on classifying net assets associated with donor restriction endowment funds held by organizations that are subject to an enacted version of UPMIFA in The Center s endowment consists of one fund, established to support the Center s mission. The endowment includes donor restricted funds. As required by generally accepted accounting principles, net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed restrictions. Interpretation of Relevant Law Uniform Prudent Management of Institutional Funds Act (UPMIFA) (Montana Code Annotated [MCA] ) - The Board of Directors, has interpreted UPMIFA enacted in the state of Montana as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the Center classifies as permanently restricted net assets (a) the original value of the gifts donated to the permanent endowment (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment fund (primarily realized and unrealized gains and losses and investment income) is classified as temporarily restricted net assets or unrestricted net assets (based on the endowment s purpose) until those amounts are appropriated for expenditure by the Center in a manner consistent with the standard of prudence prescribed by UPMIFA. In accordance with UPMIFA, the Center considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds. The duration and preservation of the fund The purpose of the Center and the donor restricted endowment fund General economic conditions The possible effect of inflation and deflation The expected total return from income and the appreciation of investments Other resources of the Center The investment policies of the Center 13

16 NOTE 2. PERMANENTLY RESTRICTED NET ASSETS (Continued) Endowment net asset composition by type of fund consists of the following as of December 31, 2017: Temporarily Permanently Unrestricted Restricted Restricted Total Donor-restricted endowment funds $ 27,566 $ 21,675 $ 46,960 $ 96,201 Endowment net asset composition by type of fund consists of the following as of December 31, 2016: Temporarily Permanently Unrestricted Restricted Restricted Total Donor-restricted endowment funds $ 11,593 $ 19,706 $ 46,960 $ 78,259 Changes in endowment net assets for the year ending December 31, 2017 are as follows: Temporarily Permanently Unrestricted Restricted Restricted Total Endowment net assets December 31, 2016 $ 11,593 $ 19,706 $ 46,960 $ 78,259 Investment return: Interest and dividends 1,554 1,758-3,312 Net realized and unrealized gains 1,705 2,559-4,264 Total investment return 3,259 4,317-7,576 Additions 10, ,366 Appropriation of endowment expenditures 2,348 (2,348) - - Endowment net assets, December 31, 2017 $ 27,566 $ 21,675 $ 46,960 $ 96,201 14

17 NOTE 2. PERMANENTLY RESTRICTED NET ASSETS (Continued) Changes in endowment net assets for the year ending December 31, 2016 are as follows: Temporarily Permanently Unrestricted Restricted Restricted Total Endowment net assets December 31, 2015 $ 9,104 $ 10,906 $ 46,960 $ 66,970 Investment return: Interest and dividends ,070 Net realized and unrealized gains - 11,311-11,311 Total investment return ,148-12,381 Additions 3, ,348 Appropriation of endowment expenditures (1,092) (3,348) - (4,440) Endowment net assets, December 31, 2016 $ 11,593 $ 19,706 $ 46,960 $ 78,259 Center s investment and payout policies endowment funds The Center has adopted investment and spending policies for endowment assets that are designed and intended to provide a predictable stream of funding to programs while seeking to maintain the purchasing power of the Center s endowment assets. The Center s investment and payout policies work together to achieve these objectives. The investment policy attempts to establish an achievable return objective through diversification of and prescribed allocation amongst asset classes, restrictions on asset quality, and limitations on concentrations of holdings by sector and company. The current long-term return objective is 5 percent. Actual returns in any given year may vary from this objective. To achieve its long-term rate-of-return objectives, the Center relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and income (interest and dividends). The Center s asset allocation places a greater emphasis on equity-based investments in order to achieve its long-term return objectives within prudent risk parameters. The primary endowment fund objective is to ensure the long-term support of the Center s functions by seeking a total return adequate to support a trailing five (5) percent spending policy and to maintaining the purchasing power of the endowment, net of inflation. The payout policy is subject to annual review and modification by the Board of Directors. Changes to the payout policy are guided by the standards described in UPMIFA. 15

18 NOTE 3. OPERATING LEASE OBLIGATIONS The Center has a month to month lease for office space and facilities for its Billings Heights location. The lease calls for monthly rental payments of $500. The Center paid $6,000 related to this lease during the years ended December 31, 2017 and NOTE 4. INVESTMENTS The Center s investments are valued at their current fair market value. Investments are comprised of the following as of December 31, 2017 and 2016: Cost Fair Value Cost Fair Value Cash $ 6,832 $ 6,832 $ 6,496 $ 6,496 Equity Securities 77,709 89,369 65,719 71,763 $ 84,541 $ 96,201 $ 72,215 $ 78,259 For the years ended December 31, 2017 and 2016, investment income consisted of the following: Interest and Dividends $ 3,312 $ 1,070 Net unrealized gains and (losses) 4,264 11,311 $ 7,576 $ 12,381 NOTE 5. FAIR VALUE MEASUREMENTS Generally accepted accounting principles require disclosure of the fair value of financial instruments, whether or not recognized in the statement of financial position. A financial instrument is defined as cash, evidence of ownership interest in an entity, or a contract that both imposes a contractual obligation on one entity to deliver cash or another financial instrument to a second entity. 16

19 NOTE 5. FAIR VALUE MEASUREMENTS (Continued) Investments are carried at fair value and consist of the following as of December 31, 2017: Fair Value Measurents Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 6,832 $ - $ - $ 6,832 Corporate Stocks 22, ,094 Mutual Funds 67, ,275 Total $ 96,201 $ - $ - $ 96,201 Investments are carried at fair value and consist of the following as of December 31, 2016: Fair Value Measurents Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 6,496 $ - $ - $ 6,496 Corporate Stocks 12, ,188 Mutual Funds 59, ,575 Total $ 78,259 $ - $ - $ 78,259 NOTE 6. PROPERTY AND EQUIPMENT Buildings and land improvements $ 360,506 $ 355,746 Office Equipment 109,156 67,510 Land 30,000 30,000 Furniture and fixtures 29,682 29, , ,938 Less accumulated depreciation (237,634) (209,843) Property and equipment, net $ 291,710 $ 273,095 Property and equipment is carried at historical cost or donated value as disclosed in Note 1. 17

20 NOTE 7. NOTES PAYABLE Notes Payable In February 1999, the Center entered into a $170,000 long-term note payable with two individuals payable to First Interstate Bank bearing interest at 6.375%, payable in 360 monthly installments of $1,136, including interest, maturing February In May 2015, the Center refinanced the note with the two individuals bearing interest at 4.00%, payable in installments of $797, with no change to the maturity date. The note is secured by the land and the Center s building. The remaining principal balance due at December 31, 2017 and 2016 was $85,543 and $91,500, respectively. The maturities of notes payable for the year ending December 31 are as follows: 2017 $ 6, , , , ,268 Thereafter 51,939 Total $ 85,543 NOTE 8. PREPAID EXPENSES AND OTHER ASSETS Other assets as of June 30, 2018 and 2017 consist of the following: Prepaid insurance $ 12,380 $ 7,600 Prepaid repairs and maintenance 31,815 - Other assets Total $ 44,795 $ 8,200 The Center prepays for its various types of insurance: general liability, malpractice, errors and omissions, property, in order to take advantage of premium discounts. During the year ended December 31, 2017, the Center had the opportunity to take advantage of some savings related to needed property repairs and maintenance on the Broadwater building, in regards to a hail storm in previous years, if the Center prepaid for the expenses. These expenses are expected to be reimbursed by the Center s insurance company. 18

21 NOTE 9. SUBSEQUENT EVENTS Subsequent events are events or transactions that occur after year end but before the financial statements are issued. The Center recognizes in the financial statements the effect of all subsequent events that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing the financial statements. The Center s financial statements do not recognize subsequent events that provide evidence about the conditions that did not exist at the date of the balance sheet but arose after the balance sheet date and before the financial statements are issued. The Center has evaluated subsequent events through August 31, 2018, which is the date the financial statements were available to be issued. 19