KING"S RANSOM FOUNDATION

Transcription

1 KING"S RANSOM FOUNDATION FINANCIAL STATEMENTS With Independent Auditors" Report December 31, 2014 and 2013

2 KING"S RANSOM FOUNDATION Table of Contents Independent Auditors" Report 1 Financial Statements Statements of Financial Position 3 Statements of Activities 4 Statements of Cash Flows 5 Notes to Financial Statements 6 Page

3 INDEPENDENT AUDITORS REPORT Board of Directors King's Ransom Foundation Kerrville, Texas We have audited the accompanying financial statements of King's Ransom Foundation, which comprise the statements of financial position as of December 31, 2014 and 2013, and the related statements of activities 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 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. Auditors' 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. -1-

4 Board of Directors King's Ransom Foundation Kerrville, Texas Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of King's Ransom Foundation as of December 31, 2014 and 2013, and the changes in its net assets and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Dallas, Texas December 23,

5 Statements of Financial Position December 31, ASSETS: Cash and cash equivalents $ 728,628 $ 377,791 Other Assets 24,217 24,217 Total Assets $ 752,845 $ 402,008 NET ASSETS: Unrestricted: $ 494,044 $ 402,008 Temporarily restricted net assets 258,801 - Total Net Assets $ 752,845 $ 402,008 See notes to financial statements -3-

6 Statements of Activities Year Ended December 31, SUPPORT AND REVENUE: Contributions $ 1,009,327 $ 2,310,287 $ 3,319,614 $ 935,074 $ 1,305,513 $ 2,240,587 Reclassifications: Satisfaction of purpose restrictions 2,051,486 (2,051,486) - 1,305,513 (1,305,513) - Total Revenues and Reclassifications 3,060, ,801 3,319,614 2,240,587-2,240,587 Expenses: Program services: International grants to organizations 2,601,639-2,601,639 1,540,694-1,540,694 Domestic grants to organizations 205, , , ,243 Domestic grants to individuals 109, , , ,864 2,917,127-2,917,127 2,295,801-2,295,801 Supporting activities: General and administrative 19,641-19,641 33,666-33,666 Fundraising 32,009-32,009 3,160-3,160 51,650-51,650 36,826-36,826 Total Expenses 2,968,777-2,968,777 2,332,627-2,332,627 Total Change in Net Assets 92, , ,837 (92,040) - (92,040) Net Assets, Beginning of Year 402, , , ,048 Net Assets, End of Year $ 494,044 $ 258,801 $ 752,845 $ 402,008 $ - $ 402,008 See notes to financial statements -4-

7 Statements of Cash Flows Year Ended December 31, CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from donor contributions $ 3,319,614 $ 2,240,587 Cash paid for grants and operating expenses (2,968,777) (2,332,627) Net Cash Provided (Used) by Operating Activities 350,837 (92,040) Net Increase (Decrease) in Cash and Cash Equivalents 350,837 (92,040) Cash and Cash Equivalents, Beginning of Year 377, ,831 Cash and Cash Equivalents, End of Year $ 728,628 $ 377,791 See notes to financial statements -5-

8 Notes to Financial Statements December 31, 2014 and NATURE OF ORGANIZATION: King's Ransom Foundation (KRF), a nonprofit organization incorporated in the State of California, is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code (the Code). With a strong conviction to give into the hand of those in need, KRF was formally established in 2009 and dedicated to serving people in need, especially families and children worldwide. We seek to reflect the character of God through giving according to Matthew 25. We desire that all may reach their full potential and spread the Gospel of Jesus Christ. Today KRF continues to uphold the cause of the orphan, poor and needy by providing food, shelter, and safe water. KRF also provides support to abused women and children, help to free those trapped in slavery, help for disaster victims, widows and others in need. We are giving in our local community, the USA, India, Belize, Haiti, Israel, Africa, Thailand, Mexico, Nicaragua, Central America and many other countries. The support KRF provides comes in the form of grants to organizations and individuals located in these countries. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: KRF maintains its accounts and prepares its financial statements on the cash basis of accounting in conformity with accounting principles generally accepted in the United States of America. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of any contingent assets and liabilities at the date of the financial statements, and the reported revenues and expenses during the reporting periods. Actual results could differ from the estimates. The significant accounting policies followed are described below to enhance the usefulness of the financial statements to the reader. CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of cash and short-term, highly liquid investments with an original maturity term of three months or less. The balances, at times, may exceed federally insured limits. KRF has not experienced any losses on such accounts and believes it is not exposed to any significant credit risk. CLASSES OF NET ASSETS The net assets of KRF are reported in the following classes: Unrestricted net assets are currently available at the discretion of the board for use in KRF's operations and those resources invested in property and equipment. Temporarily restricted net assets include assets of KRF related to gifts with explicit donor-imposed restrictions that have not been met as to the specified purpose or to later periods of time or after specified dates. -6-

9 Notes to Financial Statements December 31, 2014 and SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued: SUPPORT AND REVENUE Contributions are recorded when made, which may be when cash and other assets are received or when unconditionally promised. KRF reports gifts of cash and other assets as restricted support if they are received with donor stipulations that limit the use of the contributed amounts. FUNCTIONAL ALLOCATION OF EXPENSES The costs of providing various program services and supporting activities have been summarized on a functional basis in the statements of activities. Accordingly, certain costs have been allocated among the program services and supporting activities benefited. UNCERTAIN TAX POSITIONS The financial statement effects of a tax position taken or expected to be taken are recognized in the financial statements when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. Interest and penalties, if any, are included in expenses in the statements of activities. As of December 31, 2014, KRF had no uncertain tax positions that qualify for recognition or disclosure in the financial statements. -7-

10 Notes to Financial Statements December 31, 2014 and TEMPORARILY RESTRICTED NET ASSETS: Temporarily restricted net asssets consists of: December 31, December 31, 2013 Contributions Reclassification 2014 International grants to organizations $ - $ 2,601,639 $ (2,368,330) $ 233,309 Domestic grants to organizations - 205,683 (201,491) 4,192 Domestic grants to individuals - 109,805 (88,505) 21,300 $ - $ 2,917,127 $ (2,658,326) $ 258,801 December 31, December 31, 2012 Contributions Reclassification 2013 International grants to organizations $ - $ 1,540,694 $ (1,540,694) $ - Domestic grants to organizations - 331,243 (331,243) - Domestic grants to individuals - 423,864 (423,864) - $ - $ 2,295,801 $ (2,295,801) $ - 4. RELATED PARTY TRANSACTIONS: An organization related to the board chairman and founder of KRF provides a substantial amount of support that amounted to approximately $1,009,000 and $934,900 for the years ended December 31, 2014 and This support represented appoximately 30 percent and 42 percent of total support and revenue for the years ended December 31, 2014 and A portion of this support from the corporate sponsor is designed to cover the operating expenses of KRF so 100 percent of donor contributions can be spent on program activities. 5. SUBSEQUENT EVENTS: Subsequent events have been evaluated through the report date, which represents the date the financial statements were available to be issued. Subsequent events after that date have not been evaluated. -8-