ALZHEIMER S DISEASE AND RELATED DISORDERS ASSOCIATION, INC., WEST VIRGINIA CHAPTER

Transcription

1 ALZHEIMER S DISEASE AND RELATED DISORDERS ASSOCIATION, INC., WEST VIRGINIA CHAPTER FINANCIAL REPORT YEARS ENDED JUNE 30, 2015 AND 2014

2 CONTENTS INDEPENDENT AUDITORS REPORT... 1 FINANCIAL STATEMENTS Statements of financial position... 2 Statement of activities, June 30, Statement of activities, June 30, Statement of functional expenses, June 30, Statement of functional expenses, June 30, Statements of cash flows... 7 Notes to financial statements... 8

3 INDEPENDENT AUDITORS REPORT To the Board of Directors Alzheimer s Disease and Related Disorders Association, Inc., West Virginia Chapter Charleston, West Virginia We have audited the accompanying statements of financial statements of Alzheimer s Disease and Related Disorders Association, Inc., West Virginia Chapter (a nonprofit organization), which comprise the statements of financial position as of June 30, 2015 and 2014, and the related statements of activities, functional expenses and cash flows for the years 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 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 Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves 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, we 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Alzheimer s Disease and Related Disorders Association, Inc., West Virginia Chapter as of June 30, 2015 and 2014, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Charleston, West Virginia November 17, 2015 Your Success is Our Focus 2 Players Club Drive, Suite 100 P.O. Box 1988 Charleston, WV Fax:

4 ALZHEIMER'S DISEASE AND RELATED DISORDERS ASSOCIATION, INC., WEST VIRGINIA CHAPTER STATEMENTS OF FINANCIAL POSITION AT JUNE 30, 2015 AND 2014 ASSETS CURRENT ASSETS Cash and cash equivalents $ 241,026 $ 39,861 Marketable equity securities 284, ,346 Bequest in transit - 65,424 Due from National 41,540 29,035 Promises to give - unconditional 14,920 24,376 Grants receivable 3,234 22,484 Health insurance premiums credit receivable - 4,024 Restricted cash Other current assets TOTAL CURRENT ASSETS 585, ,857 FIXED ASSETS Property and equipment 112, ,191 Less: Accumulated depreciation (63,128) (54,382) TOTAL FIXED ASSETS 49,391 57,809 TOTAL ASSETS $ 634,810 $ 806,666 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable $ 27,378 $ 28,870 Due to National 170,523 60,456 Accrued expenses 13,661 15,628 Accrued and withheld payroll taxes Funds held for others TOTAL CURRENT LIABILITIES 211, ,667 NET ASSETS Unrestricted 401, ,953 Temporarily restricted 21,999 59,046 TOTAL NET ASSETS 423, ,999 TOTAL LIABILITIES AND NET ASSETS $ 634,810 $ 806,666 See Notes to Financial Statements. 2

5 ALZHEIMER'S DISEASE AND RELATED DISORDERS ASSOCIATION, INC., WEST VIRGINIA CHAPTER STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2015 UNRESTRICTED TEMPORARILY RESTRICTED TOTAL REVENUE: Contributions, gifts, grants and pledges: Direct public support: Walk to End Alzheimer's & Wrap Around Events $ 469,226 $ - $ 469,226 Memorials and tributes 32,124-32,124 Bequest 140, ,000 Corporations 11,240-11,240 Individuals 31,530 11,278 42,808 Foundations 15,643-15,643 Organizations 13,831 1,250 15,081 Major gifts 13,000-13,000 Indirect public support: United Way Government grants 12,938 54,000 66,938 Private grants 5,593 42,615 48,208 National Grants - 12,000 12,000 Special fundraising events: Thanks for the Memories Luncheon 22,010-22,010 Dancing Through Time 31,007-31,007 Rockin' on the Rooftop 6,111-6,111 Non-cash donations 44,500-44,500 Less: Event costs benefiting donors (10,700) - (10,700) Conferences 4,298-4,298 Sales 1,763-1,763 Fees for services 15,170-15,170 Investment return 19,038-19,038 Other 1,299-1,299 Net Association share to National (288,260) - (288,260) Net assets released from restrictions 158,190 (158,190) - TOTAL REVENUE 749,601 (37,047) 712,554 EXPENSES: Program Services: Patient and family services 212, ,965 Public awareness and education 450, ,126 Public policy 46,052-46,052 Management and general 94,839-94,839 Fundraising 185, ,396 TOTAL EXPENSES 989, ,378 CHANGE IN NET ASSETS (239,777) (37,047) (276,824) NET ASSETS AT BEGINNING OF YEAR 640,953 59, ,999 NET ASSETS AT END OF YEAR $ 401,176 $ 21,999 $ 423,175 See Notes to Financial Statements. 3

6 ALZHEIMER'S DISEASE AND RELATED DISORDERS ASSOCIATION, INC., WEST VIRGINIA CHAPTER STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2014 TEMPORARILY UNRESTRICTED RESTRICTED TOTAL REVENUE: Contributions, gifts, grants and pledges: Direct public support: Walk to End Alzheimer's & Wrap Around Events $ 393,650 $ - $ 393,650 Memorials and tributes 36,061-36,061 Bequest 89,741-89,741 Corporations 15,339-15,339 Individuals 17,510 20,750 38,260 Foundations 9,525-9,525 Organizations 2,349 27,024 29,373 Major gifts 3,000-3,000 Indirect public support: United Way 1,530-1,530 Government grants 16,438 45,000 61,438 Private grants 5,500 8,000 13,500 National Grants 11,500-11,500 Special fundraising events: Thanks for the Memories Luncheon 32,975-32,975 Dancing through time 43,892-43,892 Non-cash donations 29,941-29,941 Less: Event costs benefiting donors (7,044) - (7,044) Conferences 6,492-6,492 Sales Fees for services 16,264-16,264 Investment return 92,612-92,612 Other 1,342-1,342 Net Association share to National (173,936) - (173,936) Net assets released from restrictions 103,478 (103,478) - TOTAL REVENUE 748,768 (2,704) 746,064 EXPENSES: Program Services: Patient and family services 231, ,207 Public awareness and education 364, ,158 Public policy 59,144-59,144 Management and general 59,804-59,804 Fund development 158, ,511 TOTAL EXPENSES 872, ,824 CHANGE IN NET ASSETS (124,056) (2,704) (126,760) NET ASSETS AT BEGINNING OF YEAR 765,009 61, ,759 NET ASSETS AT END OF YEAR $ 640,953 $ 59,046 $ 699,999 See Notes to Financial Statements. 4

7 ALZHEIMER'S DISEASE AND RELATED DISORDERS ASSOCIATION, INC., WEST VIRGINIA CHAPTER STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED JUNE 30, 2015 PROGRAM MGMT AND FUND- TOTAL SERVICES GENERAL RAISING Salaries and wages $ 484,522 $ 396,744 $ 23,420 $ 64,358 Fringe benefits 61,074 49,492 3,377 8,205 Payroll taxes 39,956 33,346 1,813 4,797 Professional fees 42,363 2,302 39, Outside and contract labor 31,222 26,244 4, Office supplies 30,323 20,163 4,537 5,623 Program supplies 2,310 2,308-2 Telephone 10,161 8, ,077 Postage 12,587 10, ,007 Rent 35,884 29,778 1,705 4,401 Utilities 8,394 6, ,137 Insurance - liability 3,138 2, Repairs and maintenance 3,073 1, Printing, publications and subscriptions 91,067 27,941-63,126 Staff development Advertising 7,962 6,887-1,075 Conferences 11,235 7, ,094 Volunteer development 1, ,105 Travel 40,090 21,996 5,204 12,890 Dues and subcriptions 2,548 2, Caregiver funds 39,766 39, Interest and bank charges 11,676-5,784 5,892 Miscellaneous 2, , Bad debt expense 1, ,207 Depreciation 13,673 11, ,845 TOTAL FUNCTIONAL EXPENSES $ 989,378 $ 709,143 $ 94,839 $ 185,396 See Notes to Financial Statements. 5

8 ALZHEIMER'S DISEASE AND RELATED DISORDERS ASSOCIATION, INC., WEST VIRGINIA CHAPTER STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED JUNE 30, 2014 PROGRAM MGMT AND FUND- TOTAL SERVICES GENERAL RAISING Salaries and wages $ 433,850 $ 359,152 $ 14,245 $ 60,453 Fringe benefits 45,881 35,390 1,958 8,533 Payroll taxes 38,486 32,638 1,202 4,646 Professional fees 44,711 15,000 23,369 6,342 Outside and contract labor 43,131 40, ,403 Office supplies 30,566 22,718 3,609 4,239 Program supplies Telephone 9,415 8, ,076 Postage 8,564 6, ,940 Rent 34,766 26,421 1,609 6,736 Utilities 8,119 5, ,744 Insurance - liability 2,220 1, Repairs and maintenance 1,451 1, Printing, publications and subscriptions 69,890 35,893 1,200 32,797 Staff development 5,941 5, Advertising 2,745 2, Conferences 13,415 8,459-4,956 Volunteer development Travel 49,940 36,576 2,758 10,606 Dues and subcriptions 1,728 1, Caregiver funds Interest and bank charges 9,229-7,084 2,145 Miscellaneous Bad debt expense 5, ,570 Depreciation 10,431 7, ,241 TOTAL FUNCTIONAL EXPENSES $ 872,824 $ 654,509 $ 59,804 $ 158,511 See Notes to Financial Statements. 6

9 ALZHEIMER'S DISEASE AND RELATED DISORDERS ASSOCIATION, INC., WEST VIRGINIA CHAPTER STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30, 2015 AND CASH FLOWS FROM OPERATING ACTIVITIES: Cash from contributions $ 814,052 $ 539,718 Cash from special events 59,128 76,867 Cash from grants 146,396 82,339 Cash from program services 15,170 16,264 Cash from miscellaneous revenue 10,670 7,094 Cash from investment income 15,663 14,704 OPERATING RECEIPTS 1,061, ,986 Cash paid to personnel (588,445) (513,378) Cash paid to vendors (357,521) (301,036) Cash paid to National (190,698) (152,751) OPERATING DISBURSEMENTS (1,136,664) (967,165) NET CASH USED IN OPERATING ACTIVITIES (75,585) (230,179) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (5,255) (11,914) Sale of maketable equity securities 277, ,904 Purchase of marketable equity securities, net 4,180 (25,181) NET CASH PROVIDED BY INVESTING ACTIVITIES 276, ,809 NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS 201,165 (20,370) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 39,861 60,231 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 241,026 $ 39,861 RECONCILIATION OF CHANGE IN NET ASSETS TO NET CASH USED IN OPERATING ACTIVITIES: Change in Net Assets $ (276,824) $ (126,760) ADJUSTMENTS TO RECONCILE CHANGE IN NET ASSETS TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Net unrealized gain on marketable equity securities (3,375) (77,908) Depreciation 13,673 10,431 (Increase) decrease in promises to give 9,456 (11,337) (Increase) decrease in bequest 65,424 (65,424) (Increase) decrease in grants receivable 19,250 (4,099) (Increase) decrease in health insurance premiums credit receivable 4,024 (2,063) (Increase) decrease in other current assets 324 (38) (Increase) decrease in due to/due from National 97,562 21,185 Increase (decrease) in accounts payable (1,492) 20,281 Increase (decrease) in accrued expenses (1,967) 4,764 Increase (decrease) in accrued and withheld payroll taxes (926) 75 Increase (decrease) in restricted funds/funds held for others (714) 714 NET CASH USED IN OPERATING ACTIVITIES $ (75,585) $ (230,179) See Notes to Financial Statements. 7

10 NOTES TO FINANCIAL STATEMENTS Alzheimer s Disease and Related Disorders Association, Inc., West Virginia Chapter June 30, 2015 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of activities The Alzheimer s Disease and Related Disorders Association, Inc., West Virginia Chapter (the Association) was created in October 2001 from the merger of three existing chapters. The Association provides education to health care professionals and the public, guidance and support for patients, their families and caregivers, and encourages and supports research of Alzheimer s disease and related disorders. The Association is supported from a variety of sources such as donor contributions, government and private grants, and special events. Their primary activities take place within the State of West Virginia and certain counties in eastern Ohio. Financial statement presentation The statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (GAAP), and accordingly, the Association 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. Promises to give Contributions, including unconditional promises to give, or contributions receivable, are recognized as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and/or nature of any donor restrictions, in the period the donor s commitment is received. Unrestricted unconditional promises to give for future operations are recognized as temporarily restricted revenues unless the donor explicitly stipulates its use to support current period activities. Promises to give are expected to be collected in less than one year and are reported at net realizable value. Conditional promises to give are not recognized until they become unconditional, that is, when the conditions on which they depend are substantially met. However, there have not been any unconditional promises to give during 2015 or Contributions of assets other than cash are recorded at their estimated fair value. Contributions to be received after one year are discounted at an appropriate discount rate commensurate with the risks involved. Amortization of the discount is recorded as additional contribution revenue in accordance with donor-imposed restrictions, if any, on the contributions. An allowance for uncollectible contributions receivable is provided based upon management s judgment, including such factors as prior collection history, type of contribution, and nature of the fundraising activity. Contributions received with donor-imposed restrictions that are met in the same year as received are reported as revenues of the temporarily restricted net asset class, and a reclassification to unrestricted net assets is made to reflect the expiration of such restrictions. Contributions of land, buildings, and equipment, or of cash or other assets to be used to acquire them, without donor stipulations concerning the use of such long-lived assets, are reported as revenues of the temporarily restricted net asset class; the restrictions are considered to be released when the asset is placed in service. (continued) 8

11 NOTES TO FINANCIAL STATEMENTS Alzheimer s Disease and Related Disorders Association, Inc., West Virginia Chapter June 30, 2015 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Contributed services The Association also receives donated services from a variety of unpaid volunteers assisting with various programs and services. No amounts have been recognized as revenue and expenses in the accompanying financial statements because the criteria for recognition of such volunteer effort under GAAP have not been satisfied. Cash and equivalents The Association considers all highly liquid investments with maturities of three months or less to be cash equivalents. The Association occasionally carries deposits in financial institutions which are in excess of federally insured amounts. Grants receivable Grants are reported as temporarily restricted support if they are received with stipulations that limit the use. When the restriction expires the temporarily restricted assets are reclassified to unrestricted net assets. Grants receivable are presented on the statement of financial position net of amounts written-off based on management s assessment of collectability. Grants deemed uncollectible are charged to bad debt expense based upon Management s periodic review of the receivables. Based on the composition of grants receivable as of the statement of financial position dates and managements analysis, management believes no reserve for bad debts is required. Use of estimates Preparation of financial statements requires the Association s management to make estimates and assumptions that affect reported amounts of assets, liabilities, support and expenses. Actual results could differ from those estimates. Concentration of funding The Association hosts annual Walks to End Alzheimer s in various locations. These walks represent a significant portion of total contributions received during the year. The Association received approximately 66% and 52% of total revenue from the Walks to End Alzheimer s in 2015 and 2014 respectively. Functional allocation of expenses The Statement of Activities presents expenses by functional classification. Accordingly, certain costs have been allocated among the program services, fundraising, and management and general classifications. Expenses that are not specifically identifiable among the categories are assigned a percentage based on the full time equivalent of staff that are assigned to each classification or allocated based on the percent of time each staff spends working on or in that classification. Allocations of the expenses related to occupancy are based on square footage of the office space and the square footage of the area designated for that classification. Advertising The Association expenses advertising costs when incurred. 9 (continued)

12 NOTES TO FINANCIAL STATEMENTS Alzheimer s Disease and Related Disorders Association, Inc., West Virginia Chapter June 30, 2015 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Property and equipment Property and equipment is stated at cost if purchased or estimated fair value if donated and is depreciated using the straight-line method over the estimated useful lives of the assets. Major improvements and repairs are capitalized while expenditures for minor repairs and maintenance are expensed when incurred. Income taxes The Chapter qualifies as part of the national affiliate as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code, and is classified by the Internal Revenue Service as other than a private foundation. Therefore, no provision for income tax is provided in these financial statements. Reclassifications Amounts in prior statements may have been reclassified to conform to current presentation. NOTE 2 - OPERATING LEASES The Association rents office space in three locations throughout West Virginia. The Morgantown lease agreement is set to expire August 31, 2016 with payments of $730 monthly. The Parkersburg location is a month-to-month agreement with monthly payments totaling $7,200. In April 2012, the Charleston office entered into a five year lease at $1,600 per month. Under the terms of the new lease, the Association agreed to pay $20,000 in leasehold improvements to make the office move-in ready. The total rent expense for the years ended June 30, 2015 and 2014 was $35,884 and $34,766. The future minimum lease payments for the years ended June 30, 2016, and 2017 are $27,960 and $14,400, respectively. NOTE 3 - JOINT COSTS For the years ended June 30, 2015 and 2014, the Association incurred joint costs related to the quarterly newsletter for printing and postage. Printing and postage costs are allocated based on the number of pages that are devoted to each area listed below. Printing Postage Management & General $ 762 $ 1,043 $ 392 $ 413 Fundraising 2,371 2,004 1, Program Service 4,038 6,053 2,080 2,394 Total $ 7,171 $ 9,100 $ 3,693 $ 3,600 10

13 NOTES TO FINANCIAL STATEMENTS Alzheimer s Disease and Related Disorders Association, Inc., West Virginia Chapter June 30, 2015 NOTE 4 COMMITMENTS The Association entered into an agreement with a government relations, lobbying and organizational development firm for assistance in developing a comprehensive legislative and grassroots strategy. The agreement required monthly payments of $1,000 through June 2013 and was on a month-to-month basis. The agreement was canceled during Total consulting expense for the year ended June 30, 2014 in connection with this agreement was $9,000. NOTE 5 - PENSION PLAN The Association initiated a pension plan for employees effective September 1, The plan permits only employee salary reduction contributions made pursuant to voluntary salary reduction agreements between the Association and its eligible employees which are excluded from gross income under Code Section 403(b). All employees are eligible and the plan does not provide for any other contributions by the Association. NOTE 6 INVESTMENTS Authoritative guidance issued by the Financial Accounting Standards Board established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels: Level 1 inputs consist of unadjusted quoted prices in active markets for identical assets and have the highest priority, Level 2 inputs consist of observable inputs other than quoted prices for identical assets, and Level 3 inputs are unobservable, reflecting management s own assumptions about the inputs used in pricing the asset or liability The Association uses appropriate valuation techniques based on the available inputs to measure the fair value of its marketable equity securities. When available, the Association measures fair value using Level 1 inputs because they generally provide the most reliable evidence of fair value. Level 3 inputs are used only when Level 1 or Level 2 inputs are not available. (continued) 11

14 NOTES TO FINANCIAL STATEMENTS Alzheimer s Disease and Related Disorders Association, Inc., West Virginia Chapter June 30, 2015 NOTE 6 INVESTMENTS (continued) All marketable equity securities are invested in publicly traded mutual funds and are valued using level 1 inputs. The following tables summarize the investments by asset type: U.S. Equities Funds Mid Cap Blend $ 38,773 $ 116,851 Large Cap Blend 52,913 60,933 Non-U.S. Equities Funds Large Cap Blend 11,775 45,033 Fixed Income Funds Short Duration-Medium Quality 33,273 74,299 Medium Duration-High Quality 63,616 91,873 Long Duration-Medium Quality 26,698 35,745 Floating Rate-Closed In 12,666 47,137 Real Estate & Tangible Funds 44,716 90,475 Total marketable equity securities at fair value $ 284,430 $ 562,346 The following schedule summarizes the investment return and its classification in the statement of activities for the years ended June 30, 2015 and 2014: Interest and dividend income $ 15,663 $ 14,704 Net realized and unrealized gains 3,375 77,908 Total investment return $ 19,038 $ 92,612 12

15 NOTES TO FINANCIAL STATEMENTS Alzheimer s Disease and Related Disorders Association, Inc., West Virginia Chapter June 30, 2015 NOTE 7 - TEMPORARILY RESTRICTED NET ASSETS Temporarily restricted net assets are available for the following purposes: Government and national grants $ - $ 99 Scholarships, training and respite 999 6,251 Lending library and support groups 15,543 14,472 Outreach 5,457 21,488 Parkinson s support group - 16,736 $ 21,999 $ 59,046 Temporarily restricted net assets are included in the Statements of Financial Position as follows: Cash and cash equivalents $ 21,999 $ 51,046 Grants receivable - 8,000 $ 21,999 $ 59,046 Net assets were released from donor restrictions by incurring expenses satisfying the purpose or time restrictions specified by donors as follows: Government and national grants $ 66,099 $ 45,482 Scholarships, training and respite 5, Lending library and support groups 1,929 2,063 Special events 22,514 - Outreach 54,396 48,333 Caregiver manuals 8,000 7,500 $ 158,190 $ 103,478 NOTE 8 - REVENUE SHARING AGREEMENT The Association is affiliated with the National Alzheimer s Disease and Related Disorders Association, Inc. (National Organization). A formal Statement of Relationship outlines the rights and responsibilities of the National Organization and the Association. These responsibilities include that the Association comply with policies. These policies include Shared Fundraising (SFR), which unifies and coordinates fundraising efforts within the Association s territory. (continued) 13

16 NOTES TO FINANCIAL STATEMENTS Alzheimer s Disease and Related Disorders Association, Inc., West Virginia Chapter June 30, 2015 NOTE 8 - REVENUE SHARING AGREEMENT (continued) SFR requires that the National Organization, the Association, and a Mission Fund share unrestricted contributed revenue raised in the territory. The Mission Fund is a fund to be used for the benefit of the Association and the National Organization. During the years presented revenue was shared as follows: 60% to the Association, 30% to the National Organization, and 10% to the Mission Fund. Revenue sharing between the Association and National was as follows: Association s share of National income $ 106,425) $ 47,717)) National s share of Association income (394,686) (221,653) Net Association loss $ (288,260) $ (173,936) NOTE 9 UNCERTAIN INCOME TAX POSITIONS Accounting Standards prescribe a recognition threshold and measurement attribute for a tax position taken or expected to be taken in a tax return where there is uncertainty about whether a tax position will ultimately be sustained upon examination. The Association adopted the recognition and disclosure provisions of the standard. The adoption of this standard did not have an effect on the Company s financial position or changes in net assets. Management believes there have been no uncertain tax positions taken in the entity s tax filings for any reporting period open to normal jurisdictional examination (currently 2011 through 2014). Accordingly, no liability for uncertain tax positions (or associated penalties and interest) is provided in these financial statements. NOTE 10 CONTINGENCIES The Association entered into an agreement with National to purchase certain information technology services. The Association will pay National $1,565 a year for these services. The original agreement ended on June 30, 2013, but is automatically extended for a successive twelve month periods until either party informs the other party of its intent to terminate the agreement. NOTE 11 SUBSEQUENT EVENTS Subsequent events have been evaluated through November 17, 2015 the date that the financial statements were available to be issued. 14