Audited Financial Statements. The Wooden Floor for Youth Movement (dba The Wooden Floor) August 31, 2017

Transcription

1 Audited Financial Statements The Wooden Floor for Youth Movement (dba The Wooden Floor) August 31, 2017

2 Audited Financial Statements The Wooden Floor for Youth Movement (dba The Wooden Floor) As of and for the (With summarized comparative information as of and for the year ended August 31, 2016)

3 THE WOODEN FLOOR FOR YOUTH MOVEMENT Table of Contents Page Independent Auditors Report Financial Statements Statement of Financial Position 3 Statement of Activities 4 Statement of Functional Expenses 5 Statement of Cash Flows 6 Notes to Financial Statements 7

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6 THE WOODEN FLOOR FOR YOUTH MOVEMENT Statement of Financial Position As of August 31, 2017 (With summarized comparative information as of August 31, 2016) ASSETS Cash and cash equivalents $ 1,316,589 $ 484,901 Investments (Note 5) 5,587,600 4,848,319 Contributions receivable, net of discounts of $213,803 and $243,809, respectively (Note 6) 1,862,590 3,233,991 Prepaid expenses 15,668 3,473 Property and equipment, net (Note 7) 3,032,966 3,058,467 Total assets $ 11,815,413 $ 11,629,151 Liabilities Accounts payable $ 85,331 $ 174,885 Accrued expenses 95,116 97,970 Capital lease obligations 6,759 16,407 Total liabilities 187, ,262 Commitments (Note 8) LIABILITIES AND NET ASSETS Net assets (Notes 3 and 4) Unrestricted $ 4,236,964 $ 3,927,472 Temporarily restricted 3,401,187 3,444,681 Permanently restricted 3,990,056 3,967,736 Total net assets 11,628,207 11,339,889 Total liabilities and net assets $ 11,815,413 $ 11,629,151 See accompanying notes to the financial statements and independent auditors report. 3

7 THE WOODEN FLOOR FOR YOUTH MOVEMENT Statement of Activities For The (With summarized comparative information for the year ended August 31, 2016) Temporarily Permanently Total Unrestricted Restricted Restricted 2017 Total 2016 Revenues and support Gifts and grants $ 1,379,417 $ 1,284,148 $ 7,320 $ 2,670,885 $ 5,820,763 Donated materials and services 71, ,130 60,747 Annual concerts 18, ,420 13,568 Interest and dividend income 36,155 66, ,155 93,534 Realized gain on investments - 116, ,429 73,940 Unrealized (loss) gain on investments (9,491) 152, , ,252 Other income 28, ,492 36,718 Total revenues 1,524,123 1,619,400 7,320 3,150,843 6,246,522 Net assets released from restriction 1,647,894 (1,662,894) 15, Total revenues and support 3,172,017 (43,494) 22,320 3,150,843 6,246,522 Expenses Program services 1,930, ,930,731 2,003,478 Supporting activities 931, , ,800 Total expenses 2,862, ,862,525 2,961,278 Change in net assets 309,492 (43,494) 22, ,318 3,285,244 Net assets, beginning of year 3,927,472 3,444,681 3,967,736 11,339,889 8,054,645 Net assets, end of year $ 4,236,964 $ 3,401,187 $ 3,990,056 $ 11,628,207 $ 11,339,889 See accompanying notes to the financial statements and independent auditors report. 4

8 THE WOODEN FLOOR FOR YOUTH MOVEMENT Statement of Functional Expenses For The (With summarized comparative information for the year ended August 31, 2016) Supporting Activities Community Fund- Total Outreach raising Sub-total 2017 Program Services Year-Round Spring Children & Dance Free Programs Concert Families Weeks Academic Sub-total Management and General Total 2016 Academic tutoring $ - $ - $ - $ - $ 23,151 $ 23,151 $ - $ - $ - $ - $ 23,151 $ 22,935 Administration 35,627 14,027 12,011 1,771 23,254 86,690 12,169 7,648 26,085 45, , ,540 Auto and travel 6,015 40, ,302 52,954 2, ,680 4,842 57,796 50,144 Bad debt expenses , ,000 4,000 5,000 Community relations ,449-11,449 11,449 18,499 Costumes and t-shirts - 35, , ,320 30,459 Dancewear 10, , ,194 11,058 Depreciation 114, ,120 8, , , ,421 Employee benefits 39,899 19,106 21,081 2,124 31, ,510 7,897 3,920 22,845 34, , ,900 Instructors 184,441 36,799-8, , , ,107 Insurance - other 20, ,449 1, ,539 21,988 17,980 Interest expense ,281 Miscellaneous 7,912 4, , ,398 5,573 Payroll taxes 22,334 11,747 10,059 1,483 19,475 65,098 6,664 3,961 21,846 32,471 97,569 94,226 Printing 20,961 27,052 3, ,333 58,099 2,167 9,154 14,970 26,291 84,390 71,443 Production - annual concert 16,560 70, , ,090 64,049 Professional fees 15, ,234 23, , , , ,353 Repairs and maintanance 76,083 9,760 8,358 1,232 16, ,613 9,867 3,291 18,150 31, , ,369 Salaries and wages 252, , ,227 16, , ,983 75,877 45, , ,590 1,106,573 1,289,091 Special events , , , ,135 Student services ,883-69,500 90, ,383 96,987 Utilities 57,540 2,435 2, ,037 66,404 5, ,529 10,714 77,118 74,385 Volunteer gifts ,050-18,050 18,050 4,343 Total expenses $ 880,912 $ 404,613 $ 193,615 $ 33,562 $ 418,029 $ 1,930,731 $ 160,806 $ 103,849 $ 667,139 $ 931,794 $ 2,862,525 $ 2,961,278 See accompanying notes to the financial statements and independent auditors report. 5

9 THE WOODEN FLOOR FOR YOUTH MOVEMENT Statement of Cash Flows For The (With summarized comparative information for the year ended August 31, 2016) Cash flows from operating activities Change in net assets $ 288,318 $ 3,285,244 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation expense 122, ,421 Realized gain on investments (116,429) (73,940) Unrealized gain on investments (143,332) (147,252) Change in discounts on contributions receivable (30,006) 221,872 (Increase) decrease in: Contributions receivable 1,401,407 (2,896,018) Prepaid expenses (12,195) 864 Increase (decrease) in: Accounts payable (89,554) 139,992 Accrued expenses (2,854) (3,997) Net cash provided by operating activities 1,418, ,186 Cash flows used in investing activities Acquisition of property and equipment (97,209) (5,000) Purchases of investments (3,330,332) (2,642,096) Proceeds from sales of investments 2,850,812 1,992,697 Net cash used in investing activities (576,729) (654,399) Cash flows used in financing activities Payments on capital lease obligations (9,648) (9,087) Net cash used in financing activities (9,648) (9,087) Net change in cash and cash equivalents 831,688 (15,300) Cash and cash equivalents, beginning of year 484, ,201 Cash and cash equivalents, end of year $ 1,316,589 $ 484,901 Supplemental disclosures of cash flow information: Disposals of property and equipment $ 51,683 $ 10,271 Interest paid on capital lease obligation $ 754 $ 1,281 See accompanying notes to the financial statements and independent auditors report. 6

10 1. Organization Overview THE WOODEN FLOOR FOR YOUTH MOVEMENT Notes to Financial Statements Founded in 1983, The Wooden Floor for Youth Movement (dba The Wooden Floor) (the Organization ) is one of the foremost creative youth development nonprofit organizations in the country. The Organization transforms the lives of young people in low-income communities through the power of dance and access to higher education. In Orange County, California and through its national licensed partners, the Organization uses a long-term approach grounded in exploratory dance education to foster the confidence and gifts within each child to innovate, communicate, and collaborate skills necessary for success in school and in life. 100% of students who graduate from The Wooden Floor immediately enroll in higher education. Its students become change agents and beacons of hope within their own families, their neighborhoods, the community, and the world. In Santa Ana, California, The Wooden Floor serves 375 students year-round, after-school with holistic year-round programs: dance education, academic tutoring, college and career-readiness, and family support services. In addition, an approximate 3,000 third and fourth grade students are served throughout Central Orange County with Dance Free Weeks - an in-school dance immersion program each fall. The Organization s strong commitment to excellence is reflected in a cutting edge dance education curriculum that is strategically integrated with academic tutoring, college and career readiness as well as family services. The Organization fulfills its mission through the following programs: Year-round Programs Activities related to year-round operations of the after school dance education classes, academic tutoring, and college and careerreadiness, and student and family services and enrichment programs. Annual Concert and Performance Opportunities The Annual Concert and other performance opportunities allow students to collaborate with recognized choreographers to create unexpected and challenging works of contemporary dance. The students learn to put forth their best effort and strive for excellence in all they do in the studio, on stage, in the classroom, and in life. Student and Family Services Activities tailored to support the overall well-being of each student and their family that includes: counseling sessions and crisis intervention, social service referrals, workshops, donated tickets to arts performances, wilderness leadership camps, and advanced dance training intensives. 7

11 1. Organization (continued) Overview (continued) THE WOODEN FLOOR FOR YOUTH MOVEMENT Dance Free Weeks A three week-long dance training program provided free of charge to economically-disadvantaged school children in Orange County. College & Career Readiness Activities designed to ensure students succeed in school and in life, including free academic tutoring programs, pre-collegiate mentoring, SAT and ACT preparation courses and merit-based scholarships. A Plan for Our Future In 2009, The Wooden Floor s Board of Directors and staff embarked on a significant strategic planning process, resulting in an ambitious ten-year Strategic Vision : to advance the Organization s current model, grow local impact, and increase visibility and advocacy. Now seven years in its plan and thriving, it has arrived at a time when intentional growth and advancement are needed for three key reasons. We must go deeper. The Wooden Floor s record of student success has fueled internal growth in its student body through a high retention rate. It must expand current programming to sustain outcomes for larger numbers of middle and high school students in its college preparatory pipeline. We must start earlier. The college access landscape is rapidly changing. Fouryear college eligibility is increasingly competitive, and the bar is higher for students persistence in college. The Organization must advance to help students overcome challenges to access higher education. We must serve more. Across the past five years, the Organization has been forced to turn away nearly 80% of the children who line up for Annual Auditions Day to enroll due to its high retention rate and current space constraints. The Wooden Floor has been called to pursue collaborative growth opportunities to serve more children. After an extensive feasibility study, the Board of Directors approved the launch of a four-year Comprehensive Campaign in January 2016 to pursue and fund the following three strategic focus areas by 2020: 1. Growth and Excellence with Existing Programs 2. Extension of The Wooden Floor Campus In Depot at Santiago, a second location to serve 100 more students 3. Sustainability and Excellence through Endowment Growth 8

12 1. Organization (continued) Overview (continued) THE WOODEN FLOOR FOR YOUTH MOVEMENT Gifts and pledges will be made to the Comprehensive Campaign over a four-year period, which began in Summary of Significant Accounting Policies Basis of Presentation The Organization s financial statements have been prepared on the accrual basis of accounting. Accordingly, the Organization recognizes revenues when earned, and contributions, including unconditional promises to give, when received. Expenses are recognized when the related obligation is incurred. The Organization prepares its financial statements in accordance with accounting principles generally accepted in the United States of America, which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the reporting period. Actual results could differ from those estimates. The Organization reflects net assets and revenues, gains, expenses, and losses based on the existence or absence of donor-imposed restrictions. Accordingly, net assets of the Organization and changes therein are classified and reported as unrestricted, temporarily restricted, and permanently restricted, as follows: Unrestricted net assets - net assets that are not subject to donor-imposed restrictions and are available to support general operations. Temporarily restricted net assets - net assets that are subject to donor-imposed restrictions that require the passage of time, or the occurrence of a specific event. Temporarily restricted contributions that are received and whose restrictions are satisfied in the same year as related funds are expended are reported as unrestricted contributions. Permanently restricted net assets - net assets that are subject to donor-imposed restrictions that the principal be maintained in perpetuity and invested for the purposes of producing present and future income for unrestricted use by the Organization. 9

13 THE WOODEN FLOOR FOR YOUTH MOVEMENT 2. Summary of Significant Accounting Policies (continued) Income Taxes The Organization has qualified for tax-exempt status under Section 501(c)(3) of the United States Internal Revenue Code and Section 23701(d) of the California Code. Accordingly, no provision for income taxes has been made in the accompanying financial statements. The Organization s tax filings are subject to examination by federal and state taxing authorities for three and four years, respectively, after they are filed. Cash and Cash Equivalents The Organization considers cash equivalents to be highly liquid investments with maturities of three months or less when acquired. Concentration of Credit Risk The Organization deposits its funds in financial institutions that are considered by management to be of high-credit quality. At times, balances in cash accounts may exceed the Federal Deposit Insurance Corporation ( FDIC ) limit of $250,000. Insurance safeguards on the Organization s investments are afforded through the Securities Investor Protection Corporation ( SIPC ) up to $500,000 and the Customer Asset Protection Company ( CAPCO ). Investments Investments are stated at fair value and consist of debt and equity securities, mutual funds and brokered certificates of deposit (Note 5). Fair value is defined as the price that the Organization would receive to sell an asset in an orderly transaction between market participants at the measurement date. Inputs to the valuation of an asset or liability may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset. Observable inputs reflect the assumptions market participants would use in pricing the asset based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity s own assumptions about the assumptions that market participants would use in pricing the asset developed based on the best information available under the circumstances. The Organization s investments are assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below. Level 1: inputs are quoted prices in active markets. Level 2: inputs are observable, directly or indirectly. 10

14 THE WOODEN FLOOR FOR YOUTH MOVEMENT 2. Summary of Significant Accounting Policies (continued) Investments (continued) Level 3: inputs are unobservable and reflect assumptions made by the reporting entity. The Organization s investments are summarized in Note 5, and based on the nature of the Organization s investments, the fair value of investments as of August 31, 2017 was based on quoted prices in active markets, which are considered Level 1 inputs. Contributions Unrestricted contributions and unconditional promises to give are recorded at their estimated fair value and recognized as revenue by net asset class when they are received. Conditional promises to give are recognized as revenues when all conditions on which they depend are substantially met. An allowance for estimated uncollectible contributions receivable is recorded based on management s judgment and analysis of the donor s creditworthiness, past collection experience and other relevant factors. Management has determined that no allowance for uncollectible contributions receivable is necessary as of August 31, Promises to give in future years are discounted to present value using risk-adjusted discount rates established in the years in which those promises are received. Amortization of such discounts is included in contributions. Property and Equipment Property and equipment are carried at cost. Depreciation is provided on the straight-line method over an estimated useful life of 40 years for the building, 15 years for land improvements, seven years for furniture, and three to five years for vehicles and office equipment. Property and equipment are reviewed for impairment whenever management determines that events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. During the year ended August 31, 2017, management determined that no such events or changes in circumstances occurred. Donated Materials and Services Donated non-cash assets and goods are recorded at their estimated fair values in the period received. Donated services that create or enhance non-financial assets, or require specialized skills, which would typically need to be purchased, are recorded at their estimated fair values in the period received. For the year ended August 31, 2017, donated materials and services aggregated $71,

15 THE WOODEN FLOOR FOR YOUTH MOVEMENT 2. Summary of Significant Accounting Policies (continued) Functional Allocation of Expenses The cost of providing various programs and supporting activities has been summarized on a functional basis in the accompanying Statement of Functional Expenses. Accordingly, certain costs have been allocated among the programs and supporting activities based on actual usage and estimates made by management. Recent Accounting Pronouncement In August 2016, the Financial Accounting Standards Board issued Accounting Standard Update No , Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities. This update simplifies and improves how a not-forprofit organization classifies its net assets, as well as the information it presents in financial statements and notes about its liquidity, financial performance, and cash flows. The new standard will be effective for the Organization for its fiscal year ending August 31, 2019, with early application permitted. Management is currently evaluating the impact of the adoption of this standard. Comparative Financial Information The accompanying financial statements include prior year summarized comparative information in total, but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the Organization s August 31, 2016 financial statements, from which the summarized information was derived. Subsequent Events The Organization has evaluated subsequent events that occurred through January 5, 2018, the date the financial statements were available to be issued. 12

16 3. Endowments THE WOODEN FLOOR FOR YOUTH MOVEMENT Accounting Standards Codification contains guidance on the net asset classification of donor restricted endowment funds for a not-for-profit organization that is subject to an enacted version of the Uniform Prudent Management of Institutional Funds Act of 2006 ( UPMIFA ), as well as requires disclosures about an organization s endowment funds (both donor-restricted endowment funds and board-designated endowment funds) whether or not the organization is subject to UPMIFA. The State of California adopted UPMIFA effective January 1, Endowment assets may include donor-restricted funds that the Organization must hold in perpetuity, donor-restricted funds that must be used for specified purposes, and funds designated by the Board of Directors to function as endowments. Under this interpretation, the Organization classifies as permanently restricted net assets (a) the original value of 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 donorrestricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure in a manner consistent with the standard of prudence prescribed by UPMIFA. In accordance with UPMIFA, the Organization considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds: 1) The duration and preservation of the fund 2) The purpose of the organization and the donor-restricted endowment fund 3) General economic conditions 4) The possible effect of inflation and deflation 5) The expected total return from income and the appreciation of investments 6) Other resources of the organization 7) The investment policy of the organization Return Objectives and Risk Parameters The Organization has adopted investment and spending policies for endowment assets that attempt to preserve the real purchasing power of the endowment fund and to provide a relatively predictable and stable stream of current income for annual operational needs. 13

17 3. Endowments (continued) THE WOODEN FLOOR FOR YOUTH MOVEMENT Return Objectives and Risk Parameters (continued) To satisfy its long-term rate-of-return objectives, the Organization relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). The Organization targets a diversified asset allocation that places a greater emphasis on equity-based investments to achieve its long-term return objectives within prudent risk constraints. The fair value of assets associated with endowment funds may fall below the level that the donor or UPMIFA requires the Organization to retain as a fund of perpetual duration. Spending Policy and How the Investment Objectives Relate to Spending Policy Endowment assets are governed by a spending policy that may distribute up to seven percent (7%) (inclusive of broker fees) of the fair value of the investment portfolio as a whole. To protect the intrinsic value of the endowment assets against the unexpected impact of inflation, the Organization s Finance Committee sets a payout rate for the endowment assets earnings and income that provides a preset rate of real growth of the portfolio while also providing a relatively constant and predictable funding stream. The main objective is to maintain or grow the real (inflation-adjusted) value of the portfolio after accounting for the overall spending. To achieve this objective, the long-term total return of the portfolio should meet or exceed the spending rate plus inflation as measured by an appropriate benchmark, such as the Consumer Price Index. Earnings and income in excess of the payout rate shall be reinvested in the portfolio according the Organization s investment policy. If the payout rate exceeds the endowment yield, then previously reinvested income and accumulated realized gains shall be transferred to current funds to ensure the payout rate. In addition, the Organization s Finance Committee is authorized to pay reasonable fees and expenses, primarily management fees, of the endowment portfolio. The distribution of endowment spending must be incorporated into the Organization s annual budget and, consequently, reviewed and approved by the Organization s Board of Directors. The distribution may be timed to provide maximum benefit to overall cash flow needs. By special action and upon the recommendation of the Organization s Finance Committee, the Board of Directors may temporarily suspend distributions. Distributions may trigger an evaluation of the portfolio s asset allocation as established by the investment policy. 14

18 3. Endowments (continued) THE WOODEN FLOOR FOR YOUTH MOVEMENT Composition of Endowment Investment Assets The following tables show the composition of the Organization s endowment investment funds classified by restriction as of August 31, 2017, and the related activity of endowment investment funds for the year then ended. Endowment Net Asset Composition by Type as of August 31, 2017: Temporarily Permanently Unrestricted Restricted Restricted Total Donor restricted endowment $ - $ 392,456 $ 3,990,056 $ 4,382,512 Included in Permanently Restricted Net Assets are endowment contribution receivables of $409,087 (net of discounts of $50,913) as of August 31, Changes in Endowment Net Assets for the year ended August 31, 2017: Endowment net assets, beginning Temporarily Permanently Unrestricted Restricted Restricted Total $ - $ 282,716 $ 3,967,736 $ 4,250,452 Investment return: Interest and dividend income - 66,000-66,000 Net realized and unrealized investment gains - 269, ,252 Investment fees - (36,866) - (36,866) Total investment return - 298, ,386 Net assets released from restriction ,000 15,000 Contributions - 1,354 7,320 8,674 Appropriations - (190,000) - (190,000) Net change in endowment assets - 109,740 22, ,060 Endowment net assets, end of the year $ - $ 392,456 $ 3,990,056 $ 4,382,512 15

19 THE WOODEN FLOOR FOR YOUTH MOVEMENT 4. Board Designated Net Assets The Board of Directors of the Organization has designated certain unrestricted net assets for the following purposes as of August 31, 2017: For use in subsequent periods $ 1,157,093 Building maintenance 305,567 1,462,660 Undesignated unrestricted net assets 2,774,304 Total unrestricted net assets $ 4,236, Investments Investments at August 31, 2017 consist of the following: Equity securities $ 2,342,052 Government debt securities 798,407 Corporate debt securities 1,056,674 Certificates of deposit 1,156,861 Mutual funds 233,606 $ 5,587,600 Based on the nature of the Organization s investments, the fair value of investments as of August 31, 2017 was based on quoted prices in active markets, which are considered Level 1 inputs in the fair value hierarchy. Investments are exposed to various risks, such as interest rate, market and credit risk. Risk is managed through frequent monitoring of macroeconomic conditions, investment valuations and communication with investment managers. It is at least reasonably possible that changes in the near term could materially affect the amounts reported in the financial statements. 16

20 6. Contributions Receivable THE WOODEN FLOOR FOR YOUTH MOVEMENT At August 31, 2017, the Organization had gross contributions receivables totaling $2,076,393. The Organization has presented these receivables in the accompanying financial statements at their net present value of future cash flows using a discount rate of 4.25%. Contributions receivables are expected to be paid to the Organization as follows: Temporarily Permanently Unrestricted Restricted Restricted Total 2018 $ - $ 733,893 $ 117,500 $ 851, , , , , , , ,700 12, ,200-1,616, ,000 2,076,393 Less discount - (162,890) (50,913) (213,803) $ - $ 1,453,503 $ 409,087 $ 1,862, Property and Equipment Property and equipment as of August 31, 2017 consist of the following: Land $ 800,229 Land improvements 16,874 Buildings 3,292,498 Building improvements 535,250 Property and equipment 503,253 5,148,104 Less accumulated depreciation (2,115,138) $ 3,032,966 17

21 THE WOODEN FLOOR FOR YOUTH MOVEMENT 7. Property and Equipment (continued) The Organization leases certain office equipment under a capital lease obligation, which requires a monthly payment of $864, net of a maintenance fee of $50 per month, for a period of 60 months through 2018 at an imputed interest rate of 5.99%. Future minimum lease payments during the year ending August 31, 2018 are $6,912 and the principal component of this amount is $6,759. At August 31, 2017, the related asset and accumulated depreciation under this capital lease obligation were $44,702 and $38,740, respectively. 8. Commitments Merit Based Scholarship Awards The Organization provides financial assistance to selected graduates pursuing a two-year community college or four-year college or university degree. The awards may be up to four years in length and range between $1,000 and $2,500 per year. The Organization may temporarily or permanently revoke awards based on the academic standing of the recipient, adherence to defined guidelines and other factors. As of August 31, 2017, the maximum amount of awards that may be required to be provided by the Organization over the next four years totaled $329,595. Retirement Plan The Organization implemented a 403(b) Retirement Plan (the Plan ) during October The Plan covers all eligible employees with over one year of service. The Plan provides for partial vesting of the employer s contributions after two years of service and full vesting after five years of service. The participants contributions are automatically fully vested. The Organization s contribution to the Plan for the year ended August 31, 2017 was approximately $42,