Board of Directors Meeting

Transcription

1 Board of Directors Meeting October 22, 2015

2 Item BOARD OF DIRECTORS MEETING October 22, 2015 MEETING PACKET INDEX Page Number Fire Safe Council of Nevada County P.O. Box 1112 Grass Valley, CA Phone (530) Fax (530) BOARD ACTION ITEMS... pages 1 to 23 Meeting Notice & Agenda... 2 Minutes from 09/24/15 Board Meeting... 5 October Front Page Financial Audit Board Elections REPORTS... pages 24 to 54 September 2015 Balance Sheet September 2015 Profit & Loss by Class September 2015 Profit & Loss Year to Date September 2015 Profit & Loss by Month September 2015 Profit & Loss Budget vs. Actual September 2015 Project Summary September 2015 Fixed Assets September 2015 Check Register September 2015 Donations/Fundraising Executive Director Report Firewise Communities List Profit & Loss by Job - Chipping Fiscal Year to Date Chipping Reports Office Report, Social Media & Web Tracking Partnership Report Membership Report Website Hits Report OTHER... pages 55 to 84 Correspondence/News Articles... pages 55 to 84 ORGANIZATIONAL REFERENCE... pages 85 to 92 Board of Directors Roster Meeting & Holiday Schedule Committees Rosters FSCNC Mission & Vision Statement FSCNC Acronym List Board Resolutions Tracking Log... 92

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12 FIRE SAFE COUNCIL OF NEVADA COUNTY AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, of 92

13 FIRE SAFE COUNCIL OF NEVADA COUNTY FINANCIAL STATEMENTS JUNE 30, 2015 TABLE OF CONTENTS Independent Auditor s Report. 1 Financial Statements Statement of Financial Position 3 Statement of Activities and Changes in Net Assets.. 4 Statement of Cash Flows....5 Notes to the Financial Statements.6 Supplemental Information Statement of Functional Expense of 92

14 To the Board of Directors Fire Safe Council of Nevada County Grass Valley, California INDEPENDENT AUDITOR S REPORT I have audited the accompanying financial statements of the Fire Safe Council of Nevada County (a nonprofit organization) which comprise the Statement of Financial Position as of June 30, 2015 and the related Statement of Activities and Cash Flows 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 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. Auditor s Responsibility My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes 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, I 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. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion of 92

15 Opinion In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Fire Safe Council of Nevada County as of June 30, 2015, 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. Other Matter My audit was conducted for the purpose of forming an opinion on the basic financial statements as a whole. The schedule of functional expenses on page 10 is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain other procedures including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In my opinion, the information is fairly stated in all material respects in relation to the financial statement as a whole. Certified Public Accountant Auburn, California October 8, of 92

16 FIRE SAFE COUNCIL OF NEVADA COUNTY STATEMENT OF FINANCIAL POSITION JUNE 30, 2015 A S S E T S Current Assets Cash and Cash Equivalents $ 70,477 Accounts Receivable 22,980 Prepaid Insurance 3,235 Total Current Assets 96,692 Fixed Assets Vehicles 80,495 Chipper 28,202 Office Furniture and Equipment 6,491 Less: Accumulated Depreciation ( 94,057 ) Total Fixed Assets 21,131 Other Asset Deposits 1,040 Total Other Asset 1,040 TOTAL ASSETS $ 118,863 LIABILITIES AND NET ASSETS LIABILITIES Current Liabilities Accounts Payable $ 7,525 Accrued Expenses 14,589 Defered Grant Revenue 38,610 Total Current Liabilities 60,724 TOTAL LIABILITIES 60,724 NET ASSETS Temporarily Restricted Net Assets 21,131 Unrestricted Net Assets 37,008 TOTAL NET ASSETS 58,139 TOTAL LIABILITIES AND NET ASSETS $ 118,863 See accompanying notes and accountant's report of 92

17 FIRE SAFE COUNCIL OF NEVADA COUNTY STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2015 Temporarily Unrestricted Restricted Total SUPPORT Federal Grants $ - $ 65,817 $ 65,817 State and Local Government Grants - 59,588 59,588 Business and Foundation Grants - 74,734 74, , ,139 OTHER INCOME Fundraising 23,170-23,170 Less: Direct Benefit to Participants ( 12,641 ) - ( 12,641 ) Donations 31,716-31,716 Memberships 8,016-8,016 In-Kind Contributions 75,253-75,253 Interest , ,544 TOTAL REVENUE AND OTHER INCOME 125, , ,683 NET ASSETS RELEASED FROM RESTRICTIONS 212,015 ( 212,015 ) - TOTAL SUPPORT, REVENUE AND OTHER INCOME 337,559 ( 11,876 ) 325,683 EXPENSES Program Services: Firewise Communities 214, ,636 Community Chipping 63,542-63,542 Fuels Reduction Projects 39,430-39, , ,608 Administration 9,252-9,252 Fund Raising 4,125-4,125 Total Expenses 330, ,985 Change in Net Assets 6,574 ( 11,876 ) ( 5,302 ) Net Assets, Beginning of Year 30,434 33,007 63,441 Net Assets, End of Year $ 37,008 $ 21,131 $ 58,139 See accompanying notes and accountant's report of 92

18 FIRE SAFE COUNCIL OF NEVADA COUNTY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2015 CASH FLOWS FROM OPERATING ACTIVITIES: Change in Net Assets ( $ 5,302 ) Adjustments to Reconcile the Decrease In Net Assets to Cash Used by Operations Depreciation Expense 11,876 (Increase) Decrease In: Accounts Receivable 36,004 Prepaid Expense ( 1,736 ) Increase (Decrease) In: Accounts Payable ( 15,584 ) Accrued Expenses 2,780 Deferred Grant Revenue 30,644 Net Cash Used by Operations 58,682 CASH FLOWS FROM INVESTING ACTIVITIES: - CASH FLOWS FROM FINANCING ACTIVITIES: Net Cash Provided / (Used) by Financing Activities - NET CHANGE IN CASH AND CASH EQUIVALENTS 58,682 CASH AND CASH EQUIVALENTS BEGINNING OF PERIOD 11,795 CASH AND CASH EQUIVALENTS END OF PERIOD $ 70,477 Supplemental Disclosure: Interest Paid $ - Income Tax Paid $ - See accompanying notes and accountant's report of 92

19 FIRE SAFE COUNCIL OF NEVADA COUNTY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2015 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Nature of the Organization The Fire Safe Council of Nevada County (the Council) was formed on 1998 by a small group of concerned citizens in an effort to start a movement to create a fire safe Nevada County. The Council was incorporated in the State of California on January 14, The purpose of the Council is to reduce the risk of life and property loss from wildfire through fuel reduction and public education projects; and to increase public awareness of the threat of loss due to fire and what steps can be taken to reduce the probability of a devastating wildfire. The Council s provides the following programs: Chipping Program The Council provides chipping services to Nevada County landowners who have accumulated brush piles while working to clear defensible space and evacuation routes. Firewise Communities / USA - is a national program developed by the National Fire Protection Association in partnership with federal land management agencies. Under this program the Council provides community wildfire hazard assessments, training of defensible space advisors, children s education, clearing of defensible space for low income seniors and the disabled, scotch broom removal and community outreach and education. Fuel Break Projects The council manages strategic community fuel breaks created pursuant to its Community Wildfire Protection Plan. The Council s Vision is: To educate, help motivate and assist the citizens and policymakers of Nevada County to understand the significant and eminent threat of catastrophic wildfire while promoting a healthy ecosystem and economy. As volunteers we will act to coordinate stakeholders and the community to provide for our organizations continuity and success in achieving this vision. The Council s Mission is: To provide Firewise education and programs to enhance emergency preparedness for catastrophic wildfire to all citizens in Nevada County in order to reduce loss of life, property, and natural resources and to promote Firewise Communities; to network with other Fire Safe Councils, Firewise Communities, government agencies and foundations for the benefit of the citizens of Nevada County. Further information about it programs is available on the Council s website Major funding of the Council s programs is achieved through grants from Federal, State and Local governments, private foundations, corporations and individuals. Basis of Accounting The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) on the accrual basis of accounting and accordingly, reflect all significant receivables, payables and other liabilities. Revenue is recognized when earned rather than when received and expenditures are recognized when incurred rather than when paid. See the Accompanying Accountant s Report of 92

20 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): Basis of Presentation The financial statements are presented in accordance with the provisions of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 958, Not-For-Profit Entities. Under ASC 958, the Council is required to report information regarding its financial position and activities in three classes of net assets: unrestricted net assets, temporarily restricted net assets and permanently restricted net assets. Fair Value Measurements The Council follows guidance issued by the Financial Accounting Standards Board on fair value measurements, which establishes a framework for measuring fair value, clarifies the definition of fair value within that framework, and expands disclosures about the use of fair value measurements. This guidance applies whenever fair value is the applicable measurement. The guidance establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair values into Levels 1, 2 and 3. Level 1 inputs consist of unadjusted quoted prices in active markets for identical instruments and have the highest priority. Level 2 inputs include quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, or inputs other than quoted prices that are directly or indirectly observable. Level 3 inputs are unobservable and are given the lowest priority. For purposes of financial reporting, the Council has determined that the fair values of its financial instruments, which include cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate the carrying values at June 30, 2015 based on their short maturities. Cash and Cash Equivalents Cash and cash equivalents include cash held in checking, money market accounts, certificates of deposit and petty cash. The carrying value of cash and cash equivalents approximates the fair value due to the short maturities of those instruments. The fair value of these assets is based upon Level 1 measurements. Fixed Assets Fixed assets are valued at historical cost or fair value as of the date of acquisition. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which ranges from five to seven years. Upon the sale or retirement of fixed assets, the related cost and accumulated depreciation are removed from the respective accounts and the resulting gain or loss is included in current operations. Additions and betterments of $1,000 or more are capitalized, while maintenance and repairs that do not improve or extend the lives of the respective assets are expensed currently. Temporarily Restricted Net Assets Temporarily restricted net assets represent the value of fixed assets net of depreciation. -7- NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): 18 of 92

21 Concentration of Credit and Market Risk Financial instruments that potentially expose the Council to concentrations of credit and market risk consist primarily of cash and cash equivalents. Cash and cash equivalents are maintained at high-quality financial institutions and accounts at each are insured by Federal Deposit Insurance Corporation up to $250,000. As of June 30, 2015, the Council had no uninsured deposits at these institutions. The Council has not experienced any losses on its cash and cash equivalents. Contributions Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted depending on the nature of any donor restrictions. Donated Materials and Services Significant materials and services are donated to the Council by various individuals, corporations and other organizations. The estimated value of donated services received are recognized in the financial statements if the services (a) create or enhance non-financial assets or (b) require specialized skills, are performed by people with those skills and would otherwise be purchased by the Council. Donations other than services are recognized in the financial statements if they would otherwise have to be purchased by the Council. Throughout the year volunteers contributed in excess of 10,500 hours performing fuel reduction and related tasks. Included in this total is approximately 2,965 hours of service provided by AmeriCorps and the California Conservation Corp crews. The value of AmeriCorps and CCC labor is estimated to be $68,400 based upon rates established by the U.S. Forest Service and is reflected in the financial statements because they include specialized skills that otherwise would have been purchased. The estimated value of services not reflected in the financial statements is $173,835. These values were computed using an average hourly rate of $ Contributed office space valued at $4,500 and auction items valued at $2,353 are recorded in the accompanying financial statements. Functional Allocation of Expenses The costs of providing various programs and other activities have been summarized on a function basis in the Statement of Activities and the supplemental Statement of Functional Expenses. Accordingly, certain costs have been allocated among the program and supporting services benefited based upon a cost allocation plan that is driven by staff compensation. Advertising Advertising costs are expensed as incurred. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from these estimates. NOTE 2 EMPLOYEE BENEFITS: of 92

22 In accordance with the Council s personnel policies, vacation leave is recognized and accrued each pay period up to the maximum as defined in the employee manual. Vacation leave paid during the fiscal year was $5,965. The Council adopted a health savings account plan (HSA) and a savings incentive match individual retirement plan (SIMPLE IRA). The Council matches employee contributions to the plan up to 6%. The employer portion of the HSA and SIMPLE IRA benefits totaled $5,400 and $4,022, respectively, during the year ended June 30, NOTE 3 OPERATING LEASE: The Council executed a lease for office space with the City of Grass Valley at a discounted rate of $1 per year. The contract was renewed for three years on March 27, Rent expense for the year ended June 30, 2015 of $4,500 is the estimated value of the office space provided by the City of Grass Valley. This donation and expense are recorded in the accompanying financial statements. The Council entered into a contract to lease a new copy machine for a minimum rental payment of $149 per month for a term of 5 years effective January 24, Operating lease payments on copy machines totaled $1,935 for the year ended June 30, Minimum lease payments are as follows: NOTE 4 INCOME TAXES: FY ,788 FY ,788 FY ,788 FY ,043 No provision for federal or state income taxes has been made in the accompanying financial statements, as the Council is a tax-exempt organization under 501(c)(3) of the Internal Revenue Code and Section 23701d of the Revenue and Taxation Code of the State of California. The Council has been designated as an organization that is not a private foundation. NOTE 5 OPEN TAX YEARS: The Council s tax form 990, Returns of Organizations Exempt From Income Tax for tax years 2011, 2012 and 2013 are subject to examination by the Internal Revenue Service for three years after they are filed. Open years include 2010 through 2013 for California which has a four year statute of limitations. NOTE 5 ECONOMIC DEPENDENCE: Funding for the operation of the Council is provided primarily by grants from Federal, State and Local governments and a private foundation. The Council is dependent upon these grants to provide its chipping services, and to conduct its fuels reduction projects and firewise education and outreach activities. NOTE 6 MANAGEMENT EVALUATION OF SUBSEQUENT EVENTS: The Council has evaluated events subsequent to June 30, 2014, to assess the need for potential recognition or disclosures in the financial statements. Such events were evaluated through October 8, 2015, the date that the financial statements were available to be issued. Based upon this evaluation, it was determined that no other subsequent events occurred that require recognition or additional disclosure in the financial statements of 92

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24 FIRE SAFE COUNCIL OF NEVADA COUNTY STATEMENT OF FUNCTIONAL EXPENSE FOR THE YEAR ENDED JUNE 30, 2015 PROGRAM FUND SERVICES ADMINISTRATION RAISING TOTAL Salaries $ 92,855 $ 2,400 $ 365 $ 95,620 In-Kind Services 68, ,400 Fringe Benefits and Payroll Taxes - 34,875-34,875 Accounting and Professional Services - 12,296-12,296 Administrative Fees - 1,017-1,017 Bank Fees Advertising 1, ,271 2,963 Dues and Subscriptions - 1,478-1,478 Depreciation Expense 11, ,876 Fuels Reduction and Contract Services 53, ,589 Food and Beverages - - 7,339 7,339 Entertainment Insurance - 2,581-2,581 Interest License and Permits Meetings Supplies 9,893 4,435 4,250 18,578 Community Outreach Postage and Delivery ,833 Printing & Copying 88 4,755-4,843 Raffle Prizes - - 2,354 2,354 Rent - 4,501-4,501 Telephone & Internet - 3,080-3,080 Training 1, ,344 Travel 10, ,899 Utilities - 1,906-1,906 Allocated Fringe Benefits and Payroll Taxes 33,946 ( 34,066 ) Allocated Overhead 32,153 ( 32,227 ) ,608 9,252 16, ,626 Less: Expenses deducted from Income - - ( 12,641 ) ( 12,641 ) $ 317,608 $ 9,252 $ 4,125 $ 330,985 See accompanying notes and accountant's report of 92

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