BOYS AND GIRLS CLUBS OF BELLEVUE. Financial Statements. For the Year Ended December 31, 2014

Transcription

1 Financial Statements

2 Table of Contents Independent Auditor s Report 1 2 Financial Statements: Statement of Financial Position 3 Statement of Activities and Changes in Net Assets 4 Statement of Cash Flows 5 Notes to Financial Statements 6 14 Supplementary Information: Schedule of Functional Expenses 15 Page

3 Independent Auditor s Report To the Board of Directors Boys and Girls Clubs of Bellevue Bellevue, Washington We have audited the accompanying financial statements of the Boys and Girls Clubs of Bellevue (the Club), which comprise the statement of financial position as of December 31, 2014 and the related statements of activities and changes in net assets 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 Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit 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. T: T: F: NE 4th St Suite 1700 Bellevue WA clarknuber.com 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 the Club as of December 31, 2014, and the changes in net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

4 Report on Summarized Comparative Information We have previously audited the Club s 2013 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated April 25, In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2013 is consistent, in all material respects, with the audited financial statements from which it has been derived. Report on Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The schedule of functional expenses 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. Certified Public Accountants May 8,

5 Statement of Financial Position December 31, 2014 (With Comparative Totals for 2013) Assets Current Assets: Cash and cash equivalents $ 801,737 $ 233,549 Cash held for others (Note 1) 7,563 3,643 Accounts and grants receivable 67, ,293 Current operating promises to give (Note 3) 50,000 19,537 Investments (Note 4) 637, ,211 Prepaid facility use, current portion (Note 2) 50,000 50,000 Prepaid expenses and deposits 142, ,922 Total Current Assets 1,756,597 1,200,155 Cash designated for collateral (Note 6) 500,000 Cash held for capital campaign 755,177 1,309,663 Long term operating promises to give (Note 3) 144,194 Long term capital campaign promises to give, net (Notes 3 and 12) 5,138,630 4,111,853 Prepaid facility use, long term portion (Note 2) 2,221,612 1,050,000 Property and equipment, net (Note 5) 9,683,198 3,416,816 Total Assets $ 20,199,408 $ 11,088,487 Liabilities and Net Assets Current Liabilities: Accounts payable and accrued liabilities $ 124,182 $ 61,246 Construction costs payable 466,003 Deferred revenue 133, ,080 Current portion of long term debt (Note 7) 328,572 33,936 Assets held for others (Note 1) 7,563 3,643 Total Current Liabilities 1,060, ,905 Long term debt, net of current portion (Note 7) 5,040,471 1,066,663 Total Liabilities 6,100,642 1,346,568 Net Assets: Unrestricted 10,908,956 4,795,478 Temporarily restricted (Note 8) 3,189,810 4,946,441 Total Net Assets 14,098,766 9,741,919 Total Liabilities and Net Assets $ 20,199,408 $ 11,088,487 See accompanying notes. 3

6 Statement of Activities and Changes in Net Assets (With Comparative Totals for 2013) Operating Activities Temporarily Unrestricted Restricted 2014 Total 2013 Total Public Support and Revenue: Program service fees $ 2,739,924 $ $ 2,739,924 $ 2,424,828 Less scholarships awarded (Note 11) (745,123) (745,123) (641,146) 1,994,801 1,994,801 1,783,682 Government support 208, , ,766 Grants and contributions 531, , , ,694 United Way of King County 31,453 43,750 75,203 86,330 In kind contributions 159, ,371 66,875 Special events, net (Note 9) 691, , ,275 Membership dues 144, , ,070 Return on cash and investments (Note 4) 1,219 1,219 1,553 Other revenue 55,865 55,865 50,527 Net assets released from restriction 167,079 (167,079) Total Public Support and Revenue 3,985, ,671 4,231,695 3,598,772 Expenses: Program services 3,291,885 3,291,885 3,063,135 Management and general 358, , ,590 Fundraising 268, , ,981 Total Expenses 3,918,841 3,918,841 3,542,706 Change in Net Assets Before Depreciation, Amortization, Interest Expense and Nonoperating Activities 66, , ,854 56,066 Depreciation and amortization (174,284) (174,284) (176,498) Interest expense (45,331) (45,331) (32,874) Nonoperating Activities: Capital campaign contributions (Note 12) 4,264,308 4,264,308 2,660,190 In kind contributions for capital assets 218, ,928 Capital campaign expenses (221,086) (221,086) (193,964) Investment income for capital campaign (Note 4) 1,458 1, Net assets released from restriction 6,269,068 (6,269,068) Change in Net Assets From Nonoperating Activities 6,266,910 (2,003,302) 4,263,608 2,466,666 Total Change in Net Assets 6,113,478 (1,756,631) 4,356,847 2,313,360 Beginning of year net assets 4,795,478 4,946,441 9,741,919 7,428,559 End of Year Net Assets $ 10,908,956 $ 3,189,810 $ 14,098,766 $ 9,741,919 See accompanying notes. 4

7 Statement of Cash Flows (With Comparative Totals for 2013) Cash Flows From Operating Activities: Change in net assets $ 4,356,847 $ 2,313,360 Adjustments to reconcile change in net assets to net cash used by operating activities Depreciation and amortization of prepaid facility use 174, ,498 Capital campaign contributions (4,264,308) (2,660,190) In kind contribution of capitalized construction services (218,928) Changes in assets and liabilities: Accounts and grants receivable 42,123 18,241 Promises to give (174,657) Prepaid expenses and deposits 5,132 (12,470) Accounts payable and accrued liabilities 62,936 (13,362) Construction costs payable 3,373 Deferred revenue (47,229) 52,974 Net Cash Used by Operating Activities (60,427) (124,949) Cash Flows From Investing Activities: Cash restricted for capital campaign use 554,486 (706,336) Cash designated for collateral (500,000) Purchases of property and equipment (5,709,108) (1,103,050) Prepayment of facility use asset (1,221,612) Purchases of investments (1,386,301) (1,046,841) Sales of investments 1,385,175 1,403,510 Net Cash Used by Investing Activities (6,877,360) (1,452,717) Cash Flows From Financing Activities: Proceeds from loan payable 5,000,000 Principal payments on long term debt (731,556) (32,484) Cash collected from capital campaign promises to give 3,237,531 1,402,650 Net Cash Provided by Financing Activities 7,505,975 1,370,166 Change in Cash and Cash Equivalents 568,188 (207,500) Cash and cash equivalents balance, beginning of year 233, ,049 Cash and Cash Equivalents Balance, End of Year $ 801,737 $ 233,549 Supplemental Disclosure of Cash Flow Information: Cash paid during the year for interest $ 45,331 $ 32,874 Additions to property and equipment included in accounts payable $ 462,630 $ Contribution of construction services $ 218,928 $ See accompanying notes. 5

8 Notes to Financial Statements Note 1 Organization and Significant Accounting Policies Operations Boys and Girls Clubs of Bellevue (the Club) is an independent nonprofit corporation organized to provide recreational, athletic, social, and cultural programs for young people and is affiliated with Boys and Girls Clubs of America. The Club also operates a preschool and after school education programs for youth and auxiliary classes for parents of members and adults. The Club is located in Bellevue, Washington and is primarily supported by public and governmental support, service fees, and United Way. Basis of Presentation The Club s financial statements have been prepared on the accrual basis of accounting. The Club classifies net assets, revenues, gains, and losses based on the existence or absence of donor imposed restrictions. Net assets are classified as unrestricted, temporarily restricted, and permanently restricted. Unrestricted Net Assets Net assets that are not subject to donor imposed restrictions. Items that affect this net asset category include earnings and fees, unrestricted contributions, and related expenses associated with the core activities of the Club. In addition to these transactions, changes in this category of net assets include restricted contributions whose donor imposed restrictions were met during the fiscal year. Temporarily Restricted Net Assets Net assets subject to donor imposed stipulations that will be met either by actions of the Club and/or the passage of time. Permanently Restricted Net Assets Support received from donors in the form of endowment funds are considered permanently restricted. The Club had no permanently restricted net assets as of December 31, 2014 and Cash and Cash Equivalents Cash and cash equivalents consist of checking, savings and money market accounts. The Club maintains deposits in an account which exceeds federally insured limits. The Club acts as an agent for a cash account held on behalf of the Greater Eastside Junior Football Association, a separate nonprofit entity. Balances at December 31, 2014 and 2013, totaled $7,563 and $3,643, respectively. All cash held for others has been recorded as both an asset and liability on the statement of financial position. Accounts and Grants Receivable Receivables are stated at their net realizable value and consist of amounts due from government agencies, corporations and individuals. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts or grants receivable. There is no allowance for accounts and grants receivable as of December 31, 2014 and Promises to Give Unconditional promises to give are stated at net realizable value. In accordance with financial accounting standards, unconditional promises to give are recognized as support in the period the pledge is received. Conditional promises to give are recognized when the conditions on which they depend are substantially met. At December 31, 2014 and 2013, three and two donors accounted for 62% and 61% of total combined promises to give, respectively. 6

9 Notes to Financial Statements Note 1 Continued Property and Equipment Property and equipment are stated at cost for purchased assets or at fair value on date of donation for donated assets. Property and equipment that exceed $1,000 are capitalized as assets. Depreciation is provided using the straight line method over the estimated useful life. The costs of repairs and maintenance are expensed as incurred. The estimated useful lives of property and equipment are as follows: Buildings Land and building improvements Furniture and equipment Vehicles 40 years 5 15 years 5 years 5 7 years Program Revenue Recognition Revenues received in exchange for participation in programs or other services are deferred and recognized when the program occurs or the services are provided. Restricted and Unrestricted Support Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the year in which the support is recognized. All other donor restricted support is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When restrictions expire (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported as net assets released from restrictions. Gifts of equipment are reported as unrestricted support unless explicit donor stipulations specify how the donated assets must be used. Gifts of long lived assets with explicit restrictions that specify how the assets are to be used and gifts of cash or other assets that must be used to acquire long lived assets are reported as restricted support. Absent explicit donor stipulations about how long those assets must be maintained, expirations of donor restrictions are reported when the donated or acquired long lived assets are placed in service. Income Taxes The Internal Revenue Service has recognized the Club as exempt from federal income taxes under provision Section 501(a) of the Internal Revenue Code (IRC) as an entity described in Section 501(c)(3) and not as a private foundation. In addition, the Club has obtained property tax exemption from the State of Washington. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Donated Materials and Services Donated materials and equipment are recorded as contributions at their estimated fair value at the date of receipt. In accordance with U.S. GAAP, the financial statements reflect only those contributed services requiring specific expertise or which are for constructing a fixed asset, which the organization would otherwise need to purchase. Contributed services are recorded at rates that would have been paid for similar services in an arms length transaction. Management estimates that during the years ended December 31, 2014 and 2013, respectively, approximately 1,880 and 1,860 volunteers donated in excess of 98,000 and 97,000 hours (unaudited) of their time in the Club s program services and in its fund raising programs. The value of this donated time is not reflected in these financial statements because the criteria for recognition under U.S. GAAP have not been satisfied. 7

10 Notes to Financial Statements Note 1 Continued In kind contributions as of December 31 are as follows: Goods $ 142,563 $ 66,875 Services 235,736 Total In Kind Contributions $ 378,299 $ 66,875 Donations for the year ended December 31, 2014 were comprised of donated project management services for the Hidden Valley construction project, legal services, dental services, technology devices and goods to support the Club s program services and fundraising programs. Donations for the year ended December 31, 2013 were comprised of donated goods to support the Club s program services and fundraising programs. Functional Allocation of Expenses The cost of providing the various programs and other activities has been summarized on a functional basis in the statement of activities and changes in net assets. Accordingly, certain costs have been allocated among the programs and supporting services benefited. Summarized Information for Prior Year The financial statements include certain prior year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with U.S. GAAP. Accordingly, such information should be read in conjunction with the Club s financial statements for the year ended December 31, 2013, from which the summarized information was derived. Reclassifications Certain reclassifications have been made to the 2013 financial statements to conform to the 2014 presentation. Such reclassifications have no effect on the previously reported change in net assets or net assets. Subsequent Events The Club has evaluated subsequent events through May 8, 2015, the date on which the financial statements were available to be issued. Note 2 Prepaid Facility Use In 2004, the Club entered into a 30 year joint operating agreement with the City of Bellevue (the City) for the operation of the South Bellevue Community Center. The Club paid $1.5 million to the City during the construction of the $13 million facility and has capitalized that amount as a prepaid facility use asset. The City is the sole owner of the property; however the Club will receive use of the facilities for its programs for a 30 year term beginning January 1, 2006, with the option of two 5 year extensions. The Community Center offers a variety of City and Club run programs for adults, children and families. The Club is responsible for all costs associated with its program areas. The Club recognized $50,000 of facility use expense for the years ended December 31, 2014 and 2013, based on a 30 year amortization period. In 2013, the Club entered into a second 50 year joint operating agreement with the City for the operation of the Hidden Valley Sports Park. As of December 31, 2014 the Club has paid the first two installments of the joint operating agreement totaling $1.2 million. The amounts were capitalized as a prepaid facility use asset. The remaining two installments are due to the city during the year ended December 31, The City is the sole owner of the property; however the Club received use of the facilities for its programs for a 50 year term beginning April 3, 2013, with the option of two 10 year extensions. 8

11 Notes to Financial Statements Note 2 Continued The Park offers a variety of City and Club run programs for adults, children and families. The Club is responsible for all costs associated with its program areas. The Club will begin to recognize a facility use expense, based on a 50 year amortization period upon completion of the project. Note 3 Promises to Give Promises to give as of December 31 are as follows: Capital Campaign Operations 2014 Total 2013 Total Amounts due in less than one year $ 1,769,762 $ 50,000 $ 1,819,762 $ 1,317,752 Amounts due in one to five years 3,236, ,000 3,386,524 3,009,667 Amounts due thereafter 331, ,000 5,337, ,000 5,537,286 4,327,419 Present value discount (2.0%) (198,656) (5,806) (204,462) (196,029) $ 5,138,630 $ 194,194 $ 5,332,824 $ 4,131,390 All pledges to the capital campaign (Note 12) are considered long term on the statement of financial position, regardless of when they are expected to be collected because they will be expended for long term purposes. During the year ended December 31, 2012, the Club received a $2 million pledge in support of the capital campaign (Note 12). The Club received $500,000 during 2012 and $496,988 during 2014 with the remaining amount conditional upon meeting certain fundraising and construction milestones. Since the pledge represents a conditional promise to give, the remaining amount will not be recorded as contribution revenue until the donor condition is met. Note 4 Investments Investments were comprised entirely of certificates of deposits totaling $637,337 and $636,211 for the years ended December 31, 2014 and 2013, respectively and are valued at cost. The certificates of deposit are held at various banks with amounts invested at any one bank limited to $250,000. It is the Club s policy to include certificates of deposit with original maturities of three months or less as part of investments since its intent is to reinvest until such time as the funds are needed. All certificates of deposit held have maturities within the next twelve months. No amounts were restricted for capital campaign at December 31, 2014 or Return on cash and investments held for operations and for the capital campaign consisted entirely of interest of $2,677 and $1,993 for the years ended December 31, 2014 and 2013, respectively. 9

12 Notes to Financial Statements Note 4 Continued The Club considers the return on investments earned on capital campaign (Note 12) funds as nonoperating because of the campaign s long term nature. All other return on cash and investments is considered operating, as follows, for the years ended December 31: Operating return on cash and investments $ 1,219 $ 1,553 Nonoperating return on investments 1, Total Return on Cash and Investments $ 2,677 $ 1,993 Note 5 Property and Equipment A summary of property and equipment at December 31 is as follows: Land and land improvements $ 717,676 $ 717,676 Buildings and improvements 2,353,325 2,321,925 Furniture and equipment 896, ,265 Vehicles 68,441 68,441 Construction in progress 7,576,283 1,222,926 11,612,404 5,232,233 Less accumulated depreciation (1,929,206) (1,815,417) Property and Equipment, Net $ 9,683,198 $ 3,416,816 Note 6 Letter of Credit The Club has two irrevocable standby letters of credit totaling $500,000 and $1,896,000 which expire February 28, The $500,000 letter of credit is collateralized by designated cash shown separately on the statement of financial position and the $1,896,000 letter of credit is guaranteed by three board members. Interest accrues on any outstanding balance at a per annum rate equal to the Prime Rate. Payment of principal and interest are due on demand. To date, the Club has not drawn down on the letter of credit. 10

13 Notes to Financial Statements Note 7 Long Term Debt Long term debt consists of the following at December 31: Note payable to a bank for $1,162,500. The note bears interest at the 5 year Federal Home Loan Bank of Seattle Amortizing Intermediate/long Term, Fixed Rate Advances, plus 2.75% for the year ended December 31, 2014 (4.22% at December 31, 2014) and at the LIBOR rate plus 2.8% for the year ended December 31, 2013 (2.96% at December 31, 2013). Principal and interest payments of $6,259 are due monthly with a final payment of $833,317 due on February 20, The note is secured by a deed of trust on the property at Lake Hills Boulevard, Bellevue WA. $ 1,071,565 $ 1,100,599 Note payable to a bank for $5,000,000. The note bears interest at the LIBOR rate plus 2.0% (2.19% at December 31, 2014). Payments of interest are due monthly with a varying annual principal payment due by December 31, 2015 through 2017 and a lump sum payment of $2,000,000 due by December 31, The note is secured by capital campaign pledges held and a deed of trust on the property at th Ave NE, Bellevue WA. 4,297,478 5,369,043 1,100,599 Less current portion (328,572) (33,936) Total Long Term Debt $ 5,040,471 $ 1,066,663 Scheduled minimum principal payments for long term debt are as follows: For the Year Ending December 31, 2015 $ 328, ,032, ,033, ,035, ,716 Thereafter 902,332 $ 5,369,043 Total interest expense for the years ended December 31, 2014 and 2013 was $45,331 and $32,874, respectively. 11

14 Notes to Financial Statements Note 8 Temporarily Restricted Net Assets Temporarily restricted net assets at December 31 were available as follows: Summer camp scholarships $ 50,000 $ 50,000 Time restricted United Way of King County funding 43,750 41,625 Purpose and time restricted for capital campaign contributions 2,821,515 4,824,817 Other purpose restricted funds 74,545 Time restricted promises to give for operations 200,000 29,999 Total Temporarily Restricted Net Assets $ 3,189,810 $ 4,946,441 Net assets were released from donor temporary restrictions during the year ended December 31 by incurring expenses satisfying the restricted purposes or by the passage of time as follows: Time restrictions $ 111,624 $ 48,794 Purpose restrictions 6,324,523 1,431,198 $ 6,436,147 $ 1,479,992 Note 9 Special Events The Club records individual and corporate contributions as special events revenue if the gifts are given at an event. The Club conducted the following fundraising activities during the year ended December 31, 2014: Auction Breakfast Other Total Revenues $ 500,164 $ 166,991 $ 177,714 $ 844,869 Expenses (101,804) (16,909) (35,126) (153,839) Excess of Fundraising Revenues Over Expenses $ 398,360 $ 150,082 $ 142,588 $ 691,030 12

15 Notes to Financial Statements Note 9 Continued The Club conducted the following fundraising activities during the year ended December 31, 2013: Other Auction Breakfast Events Total Revenues $ 549,385 $ 158,742 $ 156,541 $ 864,668 Expenses (123,427) (21,542) (6,424) (151,393) Excess of Fundraising Revenues Over Expenses $ 425,958 $ 137,200 $ 150,117 $ 713,275 Note 10 Pension Plan The Club participates in a defined contribution pension plan under IRC Section 403(b) covering all eligible employees with twenty four months or more of service. Pension contribution costs totaled $222,682 and $117,928 for the years ended December 31, 2014 and 2013, respectively. Contributions are made at a rate of 10% of the employee s annual salary. Note 11 Scholarships The Club s policy is to never turn a child away because of their inability to pay. The Club provides scholarships for every feebased program it offers. For the years ended December 31, 2014 and 2013, the Club provided $745,123 and $641,146 in scholarships for after school, summer and athletic programs, respectively. Included in scholarships for the years ended December 31, 2014 and 2013, is approximately $110,000 and $103,000, respectively, in subsidized programming provided through its three sites located in public housing complexes in Bellevue and one elementary school site. Note 12 Be Great Bellevue In 2004, the Club began a capital campaign with a goal to raise $7 million, called Campaign for Kids. Several projects were completed including securing space in the South Bellevue Community Center (Note 2) during 2004 and Remaining funds from that campaign of nearly $850,000 have been board designated for use in the new campaign, Be Great Bellevue. The Be Great Bellevue campaign has a goal of $20 million and will invest funds to renovate the current main clubhouse and construct a new field house building. As of December 31, 2014, the Club has raised approximately $10.6 million in addition to the remaining Campaign for Kids funds. The Be Great Bellevue campaign support and expenses are included in the nonoperating activities on the statement of activities and changes in net assets. Note (c) Agencies Trust Reserve The Club is a member of the 501(c) Agencies Trust (the Trust). The Trust facilitates the utilization by member agencies using the reimbursement financing method of meeting obligations under State Unemployment Insurance Statutes. At December 31, 2014 and 2013, the Club had $112,221 and $106,050, respectively, on deposit with the Trust to fund these obligations. This deposit is included in prepaid expenses and deposits in the statement of financial position. 13

16 Notes to Financial Statements Note 14 Commitments During the year ended December 31, 2014, the Club entered into several contracts related to the renovation of the current main clubhouse and construction of a new field house building. The total contract sum for all contracts entered into is $6,057,778. As of December 31, 2014, estimated costs to complete the projects are approximately $740,000. As discussed in Note 2, the Club has committed to pay two additional payments to the City of Bellevue under a joint operating agreement for the Hidden Valley Sports Park during the year ending December 31, As of the report date the third of four payments has been made for approximately $674,000, the fourth and final payment amount has not yet been determined by the City of Bellevue. 14

17 SUPPLEMENTARY INFORMATION

18 Schedule of Functional Expenses (With Comparative Totals for 2013) Program Management Capital Services and General Fundraising Campaign 2014 Total 2013 Total Salaries and wages $ 1,740,187 $ 184,332 $ 210,828 $ 57,977 $ 2,193,324 $ 2,066,398 Employee benefits 326,321 33,841 38,705 3, , ,329 Payroll taxes 145,966 15,462 17,684 4, , ,966 Total Salaries and Related Expenses 2,212, , ,217 66,639 2,779,965 2,609,693 Program supplies 381, , ,702 Professional fees 55, , , ,972 In kind expenses 155, ,871 66,875 Special events 153, , ,393 Maintenance and supplies 127,215 11, , ,589 Bank fees 134, , ,118 Other 61,608 32,087 1,000 94,695 68,641 Insurance 75,285 9,757 85,042 72,108 Telephone and utilities 63,396 3, ,511 70,495 Postage and printing 34,008 1,467 5,038 40,513 38,852 Meetings and conferences 20,965 2,597 23,562 3,772 Lease of equipment 9,184 8,791 17,975 17,529 Dues and subscriptions 15,225 15,225 15,324 Total expenses before depreciation, amortization and interest expense 3,291, , , ,086 4,293,766 3,888,063 Depreciation and amortization of prepaid facility 168,070 6, , ,498 Interest expense 45,331 45,331 32,874 Total Expenses From Operations 3,505, , , ,086 4,513,381 4,097,435 Less special event expenses netted with revenues on the statement of activities (153,839) (153,839) (151,393) Total Expenses $ 3,505,286 $ 365,131 $ 268,039 $ 221,086 $ 4,359,542 $ 3,946,042 See independent auditor s report. 15