YWCA of Asheville and Western North Carolina, Inc. Asheville, North Carolina

Transcription

1 Asheville, North Carolina Financial Statements and Supplementary Information Years Ended And Independent Auditor s Report

2 Asheville, North Carolina Years Ended Board of Directors Melissa Williams, President Sue Lomenzo, Vice President Carmella Davis Watkins, Second Vice President Sara Phillips, Third Vice President Jacqui Friedrich, Treasurer Linda Iovacchini, Secretary Nancy Ackermann Cole Barbara Benisch Mary Bennett Leah Broker Lindsay Carver Meta Commerse Judy Daniel Kathy Jackson Chelsea McGowan Ahira Sanchez Lugo Lynn Spaight Laurie Stradley Michelle Webb Alida Woods Lu Young

3 Asheville, North Carolina Contents Independent Auditor s Report 1 Financial Statements Statements of Financial Position 2 Statements of Activities 3 4 Statements of Cash Flows 5 Notes to Financial Statements 6 16 Supplementary Information Schedule of Functional Expenses 18

4 To the Board of Directors of YWCA of Asheville and Western North Carolina, Inc. INDEPENDENT AUDITOR S REPORT We have audited the accompanying financial statements of YWCA of Asheville and Western North Carolina, Inc. (a nonprofit organization), which comprise the statements of financial position as of, 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. 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 YWCA of Asheville and Western North Carolina, Inc. as of, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Other Matter Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The schedule of functional expenses on page 18 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 additional 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 our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Asheville, North Carolina November 19, Sullivan & Sullivan PLLC 3400 Sweeten Creek Road Suite B Arden, North Carolina T F

5 Statements of Financial Position June 30, Assets Cash $ 898,709 $ 859,796 Accounts receivable 67,502 82,915 Grants receivable 12,502 11,751 Promises to give 3,000 6,000 Prepaid expenses and other current assets 45,837 24,343 Property and equipment, net 3,189,100 3,295,845 Investments restricted for endowment 629, ,412 Total assets 4,846,440 4,857,062 Liabilities and Net Assets Liabilities: Accounts payable $ 26,052 $ 49,445 Accrued expenses 43,331 31,971 Accrued compenstated absences 27,365 26,006 Obligations under capital leases 6,735 10,718 Total liabilities 103, ,140 Net assets: Unrestricted 4,294,863 4,310,610 Temporarily restricted 109,596 92,299 Permanently restricted 338, ,013 Total net assets 4,742,957 4,738,922 Total liabilities and net assets $ 4,846,440 $ 4,857,062 The accompanying notes are an integral part of these financial statements. 2

6 Statement of Activities Year Ended June 30, 2012 Support and Revenue: Unrestricted Temporarily Restricted Permanently Restricted Totals Public and institutional support United Way $ $ 226,166 $ $ 226,166 Governmental grants 207, ,199 Contributions and grants 192, ,546 8, ,003 Total public and institutional support 192, ,911 8, ,368 Revenue Program service fees 1,660,678 1,660,678 Memberships 24,555 24,555 Other Income 84,141 14,572 98,713 Total revenue 1,769,374 14,572 1,783,946 Net assets released from restriction 800,598 (800,598) Total support and revenue 2,762,251 (210,115) 8,178 2,560,314 Expenses: Program services Community services 225, ,231 Health and fitness 893, ,759 Children's programs 1,408,509 1,408,509 Total program services 2,527,499 2,527,499 Management and general 215, ,720 Fundraising 93,102 93,102 Total expenses 2,836,321 2,836,321 Increase (decrease) in net assets (74,070) (210,115) 8,178 (276,007) Net assets, beginning of year 4,384, , ,835 5,014,929 Net assets, end of year 4,310,610 92, ,013 4,738,922 The accompanying notes are an integral part of these financial statements. 3

7 Statement of Activities Year Ended June 30, 2013 Support and Revenue: Unrestricted Temporarily Restricted Permanently Restricted Totals Public and institutional support United Way $ $ 218,253 $ $ 218,253 Governmental grants 219, ,298 Contributions and grants 177, ,610 2, ,362 Total public and institutional support 177, ,161 2, ,913 Revenue Program service fees 1,772,323 1,772,323 Memberships 20,576 20,576 Other Income 114,160 39, ,730 Total revenue 1,907,059 39,570 1,946,629 Net assets released from restriction 735,434 (735,434) Total support and revenue 2,819,760 17,297 2,485 2,839,542 Expenses: Program services Community services 241, ,528 Health and fitness 921, ,247 Children's programs 1,347,773 1,347,773 Total program services 2,510,548 2,510,548 Management and general 206, ,700 Fundraising 118, ,259 Total expenses 2,835,507 2,835,507 Increase (decrease) in net assets (15,747) 17,297 2,485 4,035 Net assets, beginning of year 4,310,610 92, ,013 4,738,922 Net assets, end of year 4,294, , ,498 4,742,957 The accompanying notes are an integral part of these financial statements. 4

8 Statements of Cash Flows Years Ended June 30, Cash flows from operating activities: Increase (decrease) in net assets $ 4,035 $ (276,007) Adjustments to reconcile increase in net assets to net cash provided by (used in) operating activities: Depreciation and amortization 168, ,959 (Gain) loss on disposal/sales of assets (1,825) 338 (Increase) decrease in Endowment activity (63,342) (24,118) (Increase) decrease in assets: Accounts receivable 15,412 (7,642) Grants receivable (751) 11,350 Promises to give 3, ,338 Prepaid expenses (21,495) (4,424) (Increase) decrease in liabilities: Accounts payable (23,393) 33,324 Accrued expenses 11,360 (63,747) Accrued compensated absences 1,359 1,890 Net cash provided (used) by operating activities 92, ,261 Cash flows from investing activities: Purchase of investments (2,485) (508,178) Proceeds from sale of investments 12,450 Proceeds from sale of property and equipment 1,825 Purchase of property and equipment (61,480) (51,614) Net cash provided (used) for investing activities (49,690) (559,792) Cash flows from financing activities: Increase (decrease) in capital lease obligation (3,983) (4,592) Net cash provided (used) for financing activities (3,983) (4,592) Net increase (decrease) in cash and cash equivalents 38,913 (203,123) Cash and cash equivalents, beginning of year 859,796 1,062,919 Cash and cash equivalents, end of year $ 898,709 $ 859,796 The accompanying notes are an integral part of these financial statements. 5

9 Notes to Financial Statements Note A Organization and summary of significant accounting policies: Organization YWCA of Asheville and Western North Carolina, Inc. (the Organization or YWCA ) is a North Carolina nonprofit organization whose mission is eliminating racism, empowering women, and promoting peace, freedom, justice, and dignity for all. Its programs meet the needs of area women and families by bridging gaps in education, childcare, achievement, earning power, and health and wellness. The Organization s programs include: Community services: The Organization provides support and guidance for young mothers, education and counseling on adolescent pregnancy prevention, and assistance to help displaced homemakers become more economically self sufficient. Health & Fitness: The Organization provides instruction for aquatics and a health & fitness center. The Organization also operates three preventative health and fitness projects: the Diabetes Wellness Project, which focuses on empowering those with diabetes through exercise; the Diabetes Prevention Project, which focuses on ways to prevent diabetes in high risk individuals through exercise; and the Health Outreach Program, which educates and increases awareness about breast health. Children s Programs: The Organization provides child care, after school programs, youth summer camps, and mentoring to help reduce school drop outs and gang involvement. Basis of Accounting: The accompanying financial statements of the YWCA of Asheville and Western North Carolina, Inc. have been prepared on the accrual basis of accounting and conform to accounting principles generally accepted in the United States of America as applicable to not for profit organizations. The Organization follows FASB ASC and FASB ASC In accordance with FASB ASC , contributions received are recorded as unrestricted, temporarily restricted and permanently restricted, depending on the existence and/or nature of any donor restrictions. When a donor makes a promise to give that is substantially unconditional, the promise to give is recorded as a contribution. Under FASB ASC , the Organization is required to report information regarding its financial position and activities according to three classes of net assets: Advertising Advertising costs are expensed as incurred. Advertising expense for the years ended were $27,123 and $41,605, respectively. 6

10 Notes to Financial Statements Continued Note A Organization and summary of significant accounting policies continued: Unrestricted net assets consist of all resources of the Organization which have no donor imposed restrictions. Unrestricted net assets consist of assets (including land, buildings, and equipment) and public support and revenue available and used for current operations and expenditures for current programs, equipment replacement, or other specific purposes. The Organization s governing board may, at their discretion, designate unrestricted net assets for a specified purpose. Support restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the same reporting period in which the contribution is recognized. Temporarily restricted net assets consist of contributions received whose use by the Organization is limited by donor imposed stipulations that expire by passage of time or can be fulfilled by actions of the Organization. When a donor restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as assets released from restrictions. Permanently restricted net assets consist of contributions received from donors whose use by the Organization is restricted to investment in perpetuity. Income from the investment of permanently restricted net assets is classified as unrestricted or temporarily restricted. Tax exempt status The Organization is exempt from income taxes as a not for profit corporation under Internal Revenue Service Code Section 501(c)(3). YWCA is not a private foundation. Accordingly, the financial statements do not reflect a provision for income taxes. The Organization is subject to a tax on income from any unrelated business. The Organization has also elected to have 501(h) status, which establishes clear guidelines for lobbying expenditures by defining what percentage of an organization s budget may be spent on lobbying without threatening its tax exempt status. Uncertain tax positions The Organization follows the recognition requirements of FASB ASC Under this provision, income tax benefits are recognized for income tax positions taken or expected to be taken in a tax return, only when it is determined that the income tax position will more likely than not be sustained upon examination by taxing authorities. The Organization has analyzed tax positions taken for filing with the Internal Revenue Service and the state of North Carolina. The Organization believes that income tax filing positions will be sustained upon examination and does not anticipate any adjustments that would result in a material adverse affect on the Organization s financial condition, results of operations or cash flows. Accordingly, the Organization has not recorded any reserves, or related accruals for interest and penalties for uncertain income tax positions at June 30, The Organization is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The Organization believes it is no longer subject to income tax examinations for years prior June 30,

11 Notes to Financial Statements Continued Note A Organization and summary of significant accounting policies continued: In kind contributions Donated materials and equipment are reflected as contributions in the accompanying financial statements at their estimated fair market value at date of receipt. Donated services are recognized as contributions in accordance with criteria outlined in FASB ASC If the services (a) create or enhance non financial assets or (b) require specialized skills, are performed by persons who possess those skills, and would otherwise be purchased by the Organization, a contribution is recorded at the fair value of the services. During the years ended, the Organization benefited from numerous volunteer hours that are not recognized as contributions in the accompanying financial statements, since the criteria for recording under FASB ASC were not met. The estimated fair value of these services was $162,004 and $162,005 for the years ended respectively. Cash and cash equivalents For the purposes of the statement of cash flows, the YWCA considers all highly liquid investments with an initial maturity of three months or less to be cash equivalents. Investments The Organization accounts for investment activity in accordance with requirements of FASB ASC According to FASB ASC , the Organization is required to report investments in equity securities that have readily determinable values and all investments in debt securities at fair market values. Accounts receivable and credit policies Accounts are charged to bad debt expense as they are deemed uncollectible based upon a periodic review of the accounts. At, there was no balance in allowance for uncollectible accounts. Property and equipment Prior to January 1, 1975, the YWCA had not carried the value of its property and equipment in its financial statements and provided for no depreciation thereon. The value of the land and existing buildings at January 1, 1975, was estimated by the architect supervising the building additions at that date and should approximate historical cost. The valuation of furniture, equipment, and vehicles acquired prior to January 1, 1975, should approximate historical cost. Additions since that date are recorded at cost or, if donated, at the approximate fair value at the date of donation. Additions and betterments are capitalized and costs of maintenance and repairs are charged to operations as incurred. Property and equipment are depreciated on a straight line basis. The estimated useful lives of the assets are as follows: Life Buildings and improvements Furniture and equipment Vehicles years 3 15 years 5 7 years

12 Notes to Financial Statements Continued Note A Organization and summary of significant accounting policies continued: Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. Fair Value Measurements and Disclosures The Organization follows FASB ASC 820 Fair Value Measurements and Disclosures, which establish a fair value hierarchy to increase consistency and comparability in fair value measurements and related disclosures. The fair value hierarchy is based on inputs to valuation techniques used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity s pricing based upon its own market assumptions. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: Level 1 Quoted prices are available in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 Inputs are unobservable for the asset or liability. All investments are held at a Community Foundation and are considered level 3 inputs. The Community Foundation provides the fair market value of investments on quarterly statements provided to the Organization. 9

13 Notes to Financial Statements Continued Note B Investments: Investments are carried at fair market value, with any income recorded as revenue during the year earned. As of June 30, 2013, the investment accounts consisted of the following: Unrealized Cost Fair Market Value Appreciation Holly Home Fund Endowment $ 37,753 $ 58,454 $ 20,701 Janirve Endowment 300, ,273 37,273 Janirve Reserve Fund 200, ,063 34,063 $ 537,753 $ 629,790 $ 92,037 Investments as of June 30, 2012 are as follows: Unrealized Cost Fair Market Value Appreciation Holly Home Fund Endowment $ 35,268 $ 50,698 $ 15,430 Janirve Endowment 300, ,423 15,423 Janirve Reserve Fund 200, ,291 10,291 $ 535,268 $ 576,412 $ 41,144 Note C Endowments: The Organization s endowment consists of assets transferred to the Community Foundation of Western North Carolina (CFWNC). As required by generally accepted accounting principles, net assets associated with endowment funds, including funds designated by the Board to function as endowments, are classified and reported on the existence or absence of donor imposed restrictions. The Holly Home Fund Endowment and the Janirve Endowment consist of permanently restricted contributions and earnings on those contributions if the earnings are not allocated for expenditure. Earnings on the Holly Home Fund Endowment are intended to support the YWCA Holly Jones Employee Home Buyer Assistance Program. Earnings on the Janirve Endowment may be accessed for use in operations with the approval of the Finance Committee. The Janirve Reserve Fund is Board restricted and intended to support extraordinary opportunity or need. Interpretation of relevant law The Board of the Organization has interpreted the Uniform Prudent Management of Institutional Funds Act (UPMIFA) as requiring the preservation of the fair value of the original gift as of the gift date of the donorrestricted endowment funds, absent explicit donor stipulations to the contrary. Consequently, the Organization classifies permanently restricted net assets as: The original value of gifts donated to the permanent endowment, and The original value of subsequent gifts to the permanent endowment. 10

14 Notes to Financial Statements Continued Note C Endowments continued: The remaining portion of the donor restricted endowment fund not classified as permanently restricted is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the Organization s Board. 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 policies of the Organization Return objectives and risk parameters The Organization s investment and spending policies for endowment assets attempt to provide a predictable stream of funding to the Organization. The benchmark for the Organization s endowment assets is the 60% S&P 500, 40% Barclays Govt./Corp. Index. Spending policy The Organization has granted certain variance powers to the CFWNC, including investment decisions and spendable income calculations. However, the Organization retains the right to access the principal for the fund in full, subject to donor restrictions. CFWNC s standard spending policy for calculating spendable income is 4% of the average market value of the fund over a 16 quarter period. In the event that the fund has declined in value below the historic gift value of the fund available spending is determined by calculating 2% of the average market value of the fund over a 16 quarter period. The Board does not appropriate more than the spendable income limits imposed by the CFWNC. The Organization has considered the long term expected returns on its endowment investments. Accordingly, over the long term, the Organization expects that the current spending policy will allow its endowment to retain the original fair value of the gift. Strategies employed for achieving objectives The Organizations relies on a strategy in which investment returns are achieved through capital appreciation and current yield (interest and dividends). The Organization s assets are maintained in a multi manager fund, which the Organization believes will meet its long term objectives within prudent risk constraints. 11

15 Notes to Financial Statements Continued Note C Endowments continued: Endowment Net Asset Composition by Type of Fund as of June 30, 2013: Temporarily Unrestricted Restricted Permanently Restricted Total Donor restricted endowment funds $ $ 57,974 $ 337,753 $ 395,727 Board restricted endowment funds 234, ,063 Total Funds $ 234,063 $ 57,974 $ 337,753 $ 629,790 Changes in Endowment Net Assets for the Fiscal Year Ended June 30, 2013: Temporarily Unrestricted Restricted Permanently Restricted Total Net assets, beginning of year $ 210,291 $ 30,853 $ 335,268 $ 576,412 Investment return 3,380 5,648 9,028 Net appreciation/depreciations 20,392 33,922 54,314 Total $ 234,063 $ 70,424 $ 335,268 $ 639,755 Contributions $ $ $ 2,485 $ 2,485 Appropriation of endowment assets for expenditure (12,450) (12,450) Net assets, end of year $ 234,063 $ 57,974 $ 337,753 $ 629,790 Endowment Net Asset Composition by Type of Fund as of June 30, 2012: Temporarily Unrestricted Restricted Permanently Restricted Total Donor restricted endowment funds $ $ 30,853 $ 335,268 $ 366,121 Board restricted endowment funds 210, ,291 Total Funds $ 210,291 $ 30,853 $ 335,268 $ 576,412 Changes in Endowment Net Assets for the Fiscal Year Ended June 30, 2012: Temporarily Unrestricted Restricted Permanently Restricted Total Net assets, beginning of year $ $ 16,281 $ 27,835 $ 44,116 Investment return 1,431 2,474 3,905 Net appreciation/depreciations 8,860 12,098 20,958 Total $ 10,291 $ 30,853 $ 27,835 $ 68,979 Contributions $ 200,000 $ $ 307,433 $ 507,433 Appropriation of endowment assets for expenditure Net assets, end of year $ 210,291 $ 30,853 $ 335,268 $ 576,412 12

16 Notes to Financial Statements Continued Note D Promises to give: Promises to give as of, were $3,000 and $6,000, respectively. All pledges are expected to be collected during the next year. Management has determined that the promises to give are fully collectible; therefore, no allowance for uncollectible accounts is considered necessary. Note E Property and equipment, net: Following is a summary of property and equipment and accumulated depreciation at June 30: Land $ 83,000 $ 83,000 Buildings and improvements 4,509,188 4,468,254 Furniture and equipment 433, ,476 Vehicles 291, ,773 $ 5,316,391 $ 5,224,786 Less accumulated depreciation (2,127,291) (1,977,659) Net Property and Equipment $ 3,189,100 $ 3,295,844 Depreciation charged to operations totaled $168,226 and $175,959 for 2013 and 2012, respectively. Note F Lease Obligation The Organization leases equipment under an agreement classified as capital leases. The cost of equipment covered under this agreement is as follows: Solar panels $ 30,111 These amounts are shown as property and equipment on the Statement of Financial Position. Accumulated amortization of the leased assets is $18,999. Amortization of assets under capital leases is included in depreciation expense. The future minimum lease payments required under the capital leases and the present value of the net minimum lease payments as of June 30, 2013, are as follows: Total Year Ending June 30, Principal Interest Payments , , , , , ,634 Total $ 6,734 $ 503 $ 7,238 13

17 Notes to Financial Statements Continued Note G Accrued compensated absences: The YWCA provides vacation and sick leave benefits to its employees and allows for the carryover of certain vacation leave from year to year. At, the Organization was liable for benefits to its employees of approximately $27,365 and $26,006, respectively. Note H Retirement plan: The Organization is a participant in the YWCA Retirement Plan. The Plan is a defined contribution plan. Employees are eligible to participate after two years of service. Contributions were made by the Organization for 2013 and 2012 in the amount of 10% of salary. Retirement expenses for the years ended June 30, 2013 and 2012, were $88,158 and $88,950, respectively. Note I Temporarily restricted net assets: Temporarily restricted support for the years ended June 30 consisted of: Government grants NC Department of Health and Human Services $ 59,345 $ 59,978 NC Department of Public Instruction (6,604) NC Department of Administration 50,859 54,181 NC Department of Justice 5,000 NC Department of Public Health 60,866 94,644 Buncombe County Department of Health 45,728 KESMM 2,500 Total government grants 219, ,199 United Way 218, ,166 Contributions and grants City of Asheville 8,000 8,000 Asheville Citizen Times Preventative Health 10,000 14,999 Women to Women Grant 25,000 Community Foundation of Western North Carolina 757 YWCA of Southeast 29,978 Mission Hospitals 37,500 37,500 Smart Start 14,392 12,284 Sisters of Mercy 35,000 Janirve Legacy 20,000 Other 95,740 69,006 Total contributions and grants 275, ,546 Total temporarily restricted support $ 713,161 $ 575,911 14

18 Notes to Financial Statements Continued Note I Temporarily restricted net assets continued: Net assets for the year ended June 30 were temporarily restricted for the following programs: Preventive Health 3,000 41,146 Mother Love 8,300 Childcare Program 12,000 New Choices 48,622 $ 51,622 $ 61,446 Note J Related party: The YWCA of Asheville and Western North Carolina, Inc. is affiliated with the YWCA of the Southeast and the YWCA USA. A percentage of membership dues were remitted to the YWCA of the Southeast in prior years and were remitted to the YWCA USA in the year ended June 30, Dues paid to the YWCA of the Southeast and YWCA USA for the years ended, were $8,984 and $22,867, respectively. Note K Supplemental cash flow information: A capital lease agreement exists for the Organization. The capital lease agreement was entered into during the year ended June 30, 2010 for solar panels. Interest expense the years ended, were $444 and $650, respectively. Note L Concentrations: YWCA of Asheville and Western North Carolina, Inc. s business activity is with members located within Western North Carolina, resulting in pledges receivable and accounts receivable from individuals and corporations substantially all located in Western North Carolina. The YWCA is exposed to a regional concentration of credit risk in the amount of $83,004 and $100,666 for, respectively, from members and contributors substantially all of whom are local residents. The YWCA banks with institutions that are insured by the Federal Deposit Insurance Corporation (FDIC), up to the FDIC limit. At times during the year, the YWCA s deposits may exceed the FDIC insured limits, especially during periods of high cash flows. As of, balances in accounts at these institutions exceeded the FDIC limit by approximately $134,689 and $166,043, respectively. 15

19 Notes to Financial Statements Continued Note M Contingencies: Federal and State assisted programs The YWCA has received proceeds from various federal and state grants. Periodic audits of these grants are required and certain costs could be questioned as not being appropriate expenditures under the grant agreements. Such audits could result in the refund of grant monies to the grantor agencies. Management believes that any potential required refunds will be immaterial. No provision has been made in the accompanying financial statements for any potential refund of grant monies. Risk management The YWCA is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets; errors and omissions, injuries to employees; and natural disasters. The YWCA carries commercial insurance coverage for all potential risks of loss. Settled claims have not exceeded commercial insurance coverage in any of the past five years. Note N Subsequent events: The Organization has evaluated subsequent events through November 19, 2013, which is the issue date of the financial statements. 16

20 Supplementary Information

21 Schedule of Functional Expenses Year Ended June 30, 2013 (with comparative totals for 2012) Community Services Program Services Health & Fitness Children's Programs Total Supporting Services Management & Fundraising TOTAL TOTAL General Salaries 150, , ,736 1,437,172 75,933 23,735 1,536,840 1,479,234 Payroll Tax 14,158 39,815 68, ,706 7,689 1, , ,052 Health Care & Other Employee Benefits 6,074 36,842 97, ,431 5,186 2, , ,891 Utilities 5,660 41,742 18,395 65,797 4,952 70,749 70,605 Contract Services 9,517 98,594 32, ,057 30, , ,244 Supplies 8,305 30,813 28,751 67,869 11,228 79,097 88,558 Retirement plan 7,354 23,501 51,527 82,382 3,403 2,373 88,158 88,950 Insurance 1,151 5,101 13,736 19, ,789 21,630 Food 5,888 3,144 70,708 79,740 6,274 86,014 91,719 Equipment repairs & maintenance ,445 14,294 30, ,819 27,749 Equipment lease 1,019 1,019 1,019 1,029 Activities 4,670 4,222 44,102 52,994 59, , ,065 Professional services 3,010 4,838 7,848 2,710 5,053 15,611 35,309 Worker's compensation 1,172 5,092 9,393 15,657 9,452 25,109 13,085 Postage & freight 868 2, ,226 3,251 4,552 12,029 10,922 Travel 6,032 1,003 11,162 18,197 1,667 19,864 22,403 Printing 1,021 2,889 4,278 8,188 3,179 9,885 21,252 15,521 Dues 1,486 4,047 5,040 10,573 3,278 13,851 26,627 Marketing 1,600 16, ,671 8,452 27,123 41,605 Telephone 1,574 3, ,745 3,382 9,127 11,222 Building repairs & maintenance 1,157 8,532 3,760 13,449 1,012 14,461 10,296 Training 3,156 1,394 3,897 8,447 2,973 11,420 13,827 Bad debt 1,000 1,000 Miscellaneous ,130 Bank charges 14,853 3,230 18,083 10,689 Total Expenses before Depreciation 232, ,609 1,290,604 2,352, , ,259 2,667,281 2,660,362 Depreciation 9,270 91,638 57, ,077 10, , ,959 Total Expenses 241, ,247 1,347,773 2,510, , ,259 2,835,507 2,836,321 18