CONTENTS INDEPENDENT ACCOUNTANTS REVIEW REPORT 1

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2 CONTENTS PAGE INDEPENDENT ACCOUNTANTS REVIEW REPORT 1 FINANCIAL STATEMENTS Statements of financial position 2 Statements of activities 3 Statements of cash flows 4 Notes to financial statements 5-9

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4 STATEMENTS OF FINANCIAL POSITION ASSETS ASSETS Cash $ 49,234 $ 84,287 Contributions receivable 12,145 Marketable securities (Note 2) 68,056 67,722 $ 129,435 $ 152,009 LIABILITIES AND NET ASSETS LIABILITIES Accounts payable $ 17,515 $ Accrued liabilities 1,461 1,540 18,976 1,540 NET ASSETS Unrestricted 71,329 85,231 Temporarily restricted 39,130 65, , ,469 $ 129,435 $ 152,009 See independent accountants' review report and notes to financial statements. -2-

5 STATEMENTS OF ACTIVITIES For the years ended 2015 % 2014 % Changes in Unrestricted Net Assets Revenue and support - In-kind $ 50, $ 49, Special events 45, , Donor contributions 44, , Other income (Note 6) , Total unrestricted revenue and support 140, , Net assets released from satisfaction of time and purpose restrictions 138, , Total unrestricted revenue, support, and net assets released from restrictions 279, , Expenses - School programs 177, , Services 41, , Total program services 219, , In-kind 50, , Fundraising 15, , General and administrative expenses, net of allocation 7, , Total expenses 292, , Increase (Decrease) in Unrestricted Net Assets (13,902) (5.0) (16,542) (7.4) Changes in Temporarily Restricted Net Assets Contributions 112, , Net assets released from restrictions (138,958) (49.8) (86,490) (38.9) Increase (Decrease) in Temporarily Restricted Net Assets (26,108) (9.4) 2, Increase (Decrease) in Net Assets (40,010) (14.3) (14,271) (6.4) NET ASSETS, beginning of year 150, ,740 NET ASSETS, end of year $ 110,459 $ 150,469 See independent accountants' review report and notes to financial statements. -3-

6 STATEMENTS OF CASH FLOWS For the years ended CASH FLOWS FROM OPERATING ACTIVITIES - Change in net assets $ (40,010) $ (14,271) Adjustments to reconcile change in net assets to net cash provided (used) by operating activities - (Increase) decrease in operating assets - Contributions receivable (12,145) - Increase (decrease) in operating liabilities - Accounts payable 17,515 - Accrued liabilities (79) 174 Net cash provided (used) by operating activities (34,719) (14,097) CASH FLOWS FROM INVESTING ACTIVITIES - Marketable securities (334) (6,178) NET INCREASE (DECREASE) IN CASH (35,053) (20,275) CASH, beginning of year 84, ,562 CASH, end of year $ 49,234 $ 84,287 See independent accountants review report and notes to financial statements. -4-

7 NOTES TO FINANCIAL STATEMENTS NOTE 1. SIGNIFICANT ACCOUNTING POLICIES : Organization and Nature of Activities Communities in Schools of Auburn ( CISA ) was established in 1985 as the Auburn School Lunch Fund, a not-for-profit corporation in the State of Washington. In 2001, CISA became part of the National Communities in Schools Network, embracing the CISA mission to champion the connection of community resources with schools. As of June 30, 2015 and 2014, CISA provided services to over 5,600 students: a. Students in Need: CISA helps students in need at all 22 Auburn, Washington schools. They purchase clothing, alarm clocks and medical supplies, and provide Camp Auburn scholarships, certificates for eye exams and glasses, and other needs. In addition to direct purchases, the organization secures in-kind donations such as school supplies, grooming aids, clothing, curriculum materials and household goods that are distributed to assist students and families in need. b. School Programs: As of, CISA offered high quality day time and after school tutoring at five elementary schools and four middle schools using a combination of volunteers and CISA staff. All site coordinators support enrichment activities such as soccer programs and middle school career conferences in partnership with other agencies. CISA receives a majority of its support from corporate contributions and other non-profit organizations and foundations. Basis of Presentation CISA presents its financial statements in accordance with FASB ASC 958, Financial Statements of Not-for-Profit Organizations. Under FASB ASC 958, CISA 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. Accordingly, net assets of CISA and changes therein are classified and reported as follows: Unrestricted net assets - Net assets that are not subject to donor-imposed stipulations. See independent accountants review report. -5-

8 NOTES TO FINANCIAL STATEMENTS, CONTINUED NOTE 1. SIGNIFICANT ACCOUNTING POLICIES, CONTINUED : Basis of Presentation, Continued Temporarily restricted net assets - Net assets subject to donor-imposed stipulations that may or will be met, either by actions of CISA and/or the passage of time. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Temporarily restricted net assets totaled $39,130 and $65,238 as of, respectively. Permanently restricted net assets - Net assets subject to donor-imposed stipulations that may be maintained permanently by CISA. Generally, the donors of these assets permit CISA to use all or part of the income earned on any related investments for general or specific purposes. There were no permanently restricted net assets as of. Fair Value Measurements Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement determined based on assumptions that market participants would use in pricing an asset or liability. There are three levels which prioritize the inputs used in measuring fair value as follows: Level 1: Observable market inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: Observable market inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs where there is little or no market data, which require the reporting entity to develop its own assumptions. An asset or liability s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. See independent accountants review report. -6-

9 NOTES TO FINANCIAL STATEMENTS, CONTINUED NOTE 1. SIGNIFICANT ACCOUNTING POLICIES, CONTINUED : Contributions CISA also presents its financial statements in accordance with FASB ASC , Accounting for Contributions Received and Contributions Made. Under FASB ASC , contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and/or nature of any donor restrictions. Recognition of Donor-Restricted Contributions Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized. All other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America includes the use of estimates that affect the financial statements. Accordingly, actual results could differ from those estimates. Donated Goods and Services Donations of property and equipment are recorded as support at their estimated fair value. Such donations are reported as unrestricted support unless the donor has restricted the donated asset to a specific purpose. Assets donated with explicit restrictions regarding their use and contributions of cash that must be used to acquire property and equipment are reported as restricted support. Absent donor stipulations regarding how long temporarily restricted donated net assets must be maintained, CISA reports expirations of donor restrictions when the donated or acquired assets are placed in service as instructed by the donor. Contributions of donated non-cash assets are recorded at their fair values in the period received. See independent accountants review report. -7-

10 NOTES TO FINANCIAL STATEMENTS, CONTINUED NOTE 1. SIGNIFICANT ACCOUNTING POLICIES, CONTINUED : In-Kind Contributions In-kind contributions represent professional services and donations of materials and supplies that are based on fair values of such services, materials, and supplies on the date of donation and are included in revenue and expenses. Services provided by volunteers are not recorded as contributions because there is no objective basis to determine their fair value. Volunteer time totaled approximately 6,197 and 6,062 hours for the years ended June 30, 2015 and 2014, respectively. Cash Flow Information During 2015 and 2014, CISA did not pay cash for either interest or income taxes. Income Tax Status CISA is classified as a Section 501(c)(3) organization under the Federal Internal Revenue Code and is not a private foundation under the meaning of Section 509(a) of the Code. Accordingly, no provision for taxes has been made. NOTE 2. MARKETABLE SECURITIES : The marketable securities represent investments in mutual funds valued using quoted market prices. These investments are classified within Level 1 of the fair value hierarchy. As of June 30, 2015 we have recognized all realized and unrealized gains or losses associated with these investments. NOTE 3. CONTRIBUTIONS RECEIVABLE : Contributions receivable as of June 30, 2015 were received subsequent to year-end. Accordingly, there was no allowance for doubtful accounts as of June 30, See independent accountants review report. -8-

11 NOTES TO FINANCIAL STATEMENTS, CONTINUED NOTE 4. CONCENTRATIONS : During the years ended, CISA received approximately 75% and 67% of its in-kind contributions from two and three donors, respectively. During the years ended, CISA received approximately 45% and 53% of its donor contributions from one donor, respectively. During the years ended, the Organization s annual spring auction accounted for approximately 33% and 28% of its total unrestricted revenue and support, respectively. NOTE 5. GENERAL AND ADMINISTRATIVE EXPENSES ALLOCATION : General and administrative expenses are allocated to the various programs based on management s estimate of the time spent on each program. For the years ended June 30, 2015 and 2014, 95% of general and administrative expenses were allocated accordingly: School programs ~ 42% School programs ~ 43% Students in need ~ 42% Students in need ~ 42% Fundraising ~ 6% Fundraising ~ 10% NOTE 6. OTHER INCOME : During the year ended June 30, 2014, included in other income was $3,823 in unspent tutoring funds returned to CISA. NOTE 7. SUBSEQUENT EVENTS : Management has evaluated subsequent events through October 15, 2015, the date on which the financial statements were available to be issued. See independent accountants review report. -9-