L.A.CHAMDAGN HP Certified Public Accountants

Transcription

1 LIVINGSTON YOUTH AND FAMILY COUNSELING, INC. DENHAM SPRINGS, LOUISIANA DECEMBER 31, 2014 &Co. L.A.CHAMDAGN HP Certified Public Accountants 4911 BENNINGTON AVENUE, BATON ROUGE, LOUISIANA 708O (225) ~ FAX: (225) ~ lac@laccpa.com

2 TABLE OF CONTENTS Independent accountant's review report Financial statements: Statements of finaneial position 1 Statements of activities 2 Statements of cash flows 3 Statements of functional expenses 4 Notes to financial statements 5-9

3 Michael A. Tham, CPA Robert L. Stamey, CPA Susan S. Tham, CPA Kimberly G. Sanders, CPA, MBA Alvin J. Callais, CPA &Co. U. A.CHAMDAGN UP Certified Public Accountants Member of the Private Companies Practice Section of the American Institute of CPAs INDEPENDENT ACCOUNTANT'S REVIEW REPORT To the Board of Directors Livingston Youth and Family Counseling, Inc. Denham Springs, Louisiana We have reviewed the accompanying statements of financial position of Livingston Youth and Family Counseling, Inc. (a nonprofit organization) as of December 31, 2014 and 2013, and the related statements of activities, cash flows, and fimctional expenses for the years then ended. A review includes primarily applying analytical procedures to management's financial data and making inquiries of the organization's management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the Unites States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the review in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. Those standards require us to perform procedures to obtain limited assurance that there are no material modifications that should be made to the financial statements. We believe that the results of our procedures provide a reasonable basis for our report. Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America. ^,0.- -V A). L.LP April 28, Bennington Avenue Baton Rouge, Louisiana Phone (225) Fax (225) lac@iaccda.conn 1234 Del Este, Ste 503 Denham Springs, LA Phone (225)

4 LIVINGSTON YOUTH AND FAMILY COUNSELING, INC. STATEMENTS OF FINANCIAL POSITION December 31, 2014 and 2013 (See Independent Accountant's Review Report) ASSETS CURRENT ASSETS Cash $ Certificates of deposit Accounts and other receivables Prepaid expenses Total current assets PROPERTY AND EQUIPMENT Property and equipment, net of depreciation Total assets $ ,456 $ 21,919 39,046 38,968 12,924 16,155 5,203 5, ,629 82,240 12,035 3, ,664 $ 85,659 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts and other payables $ Payroll taxes payable Accrued compensated absences Current portion, capital lease obligation Total current liabilities LONG-TERM LIABILITIES Capital lease obligation Total long-term liabilities NET ASSETS Unrestricted Total net assets Total liabilities and net assets $ 261 $ 574 4,280 3,411 1,169 1,941 2,025-7,735 5,926 5,286 5, ,643 79, ,643 79, ,664 $ 85,659 See accompanying notes -1-

5 LIVINGSTON YOUTH AND FAMILY COUNSELING, INC. STATEMENTS OF ACTIVITIES Years Ended December 31, 2014 and 2013 (See Independent Accountant's Review Report) SUPPORT AND REVENUE Contributions United Way allocations Donated facilities In kind donations Program service fees Grants Investment Income Miscellaneous $ Unrestricted ,028 $ 50, , ,500 21,800 21,800 11,720 14,905 11,787 10,623 39,471 31, , ,018 EXPENSES Functional: Program services Management and general Fundraising 139, , ,271 96,890 18,019 21, , ,471 Change in net assets 23,910 20,547 Net assets - beginning of year Net assets - end of year 79,733 59,186 $ 103,643 $ 79,733 See accompanying notes -2-

6 LIVINGSTON YOUTH AND FAMILY COUNSELING, INC. STATEMENTS OF CASH FLOWS Years Ended December 31, 2014 and 2013 (See Independent Accountant's Review Report) CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ 23,910 $ 20,547 Adjustments to reconcile change in net assets to net cash used in operating activities: Depreciation 1,623 1,305 In kind fundraising expenses 11,720 14,905 In kind donation of fundraising supplies and services (11,720) (14,905) Decrease (increase) in receivables 3,230 (12,979) Increase in prepaid expenses (5) (57) Decrease in accounts payable (313) (356) Increase (decrease) in payroll taxes payable 869 (3,282) Increase (decrease) in accrued compensated absences (772) 371 Total adjustments 4,632 (14,998) Net cash provided by operating activities 28,542 5,549 CASH FLOWS FROM INVESTING ACTIVITIES Acquisitions of property and equipment (2,699) (445) Acquisition of certificate of deposit (78) (39,114) Redemption of certificate of deposit - 38,948 Net cash used in investing activities (2,777) (611) CASH FLOWS FROM FINANCING ACTIVITIES Payments on capital lease obligation (228) - Net cash used in financing activities (228) - NET INCREASE IN CASH 25,537 4,938 Cash-beginning of year 21,919 16,981 Cash-end of year $ 47,456 $ 21,919 See accompanying notes -3-

7 LIVINGSTON YOUTH AND FAMILY COUNSELING, INC. STATEMENTS OF FUNCTIONAL EXPENSES Years Ended December 31, 2014 and 2013 (See Independent Accountant's Review Report) Management and General Fundraising Total Management and General Fundraising Total Program Services Program Services Salaries $ 79,056 $ 75,956 $ - $ 155,012 $ 75,121 $ 72,176 $ - $ 147,297 Payroll taxes 6,488 6,234-12,722 5,999 5,764-11,763 Employee benefits 9,104 8,746-17,850 10,420 10,012-20,432 Total compensation 94,648 90, ,584 91,540 87, ,492 Insurance 6,134 2,386 _ 8,520 6,739 2,621-9,360 Professional fees 3,042 1,183-4,225 3,146 1,224-4,370 Fundraising ,019 18, ,428 21,428 Supplies 4,470 1,739-6,209 1, ,527 Telephone and utilities 6, ,447 7, ,986 Postage Occupancy 20,768 2,832-23,600 20,768 2,832-23,600 Travel and training Printing and publishing Miscellaneous Repairs and maintenance 1, , ,012 Depreciation 1, , ,305 Interest expense $ 139,758 $ 101,271 $ 18,019 $ 259,048 $ 133,153 $ 96,890 $ 21,428 $ 251,471 See accompanying notes -4-

8 LIVINGSTON YOUTH AND FAMILY COUNSELING, INC. NOTES TO FINANCIAL STATEMENTS December 31, 2014 (See Independent Accountant's Review Report) A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of activities Livingston Youth and Family Counseling, Inc. (the Organization) is a not-for-profit corporation organized under the laws of the State of Louisiana for the purpose of providing supportive counseling services to families and children with emotional and social problems. The Organization's office is located at 940 Government Drive, Denham Springs, Louisiana. Basis of presentation Financial statement presentation follows the recommendations of the Financial Accounting Standards Board Accoimting Standards Codification (FASB ASC) , Financial Statements ofnot-for-profit Organizations. Under FASB ASC , the Organization is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted, temporarily restricted, and permanently restricted. Unrestricted net assets are comprised of resources that are free of donor-imposed or time restrictions and are available at the direction of the governing board. Temporarily restricted net assets are resources that are limited by donor-imposed stipulations that either expire by passage of time or can be fulfilled and removed by actions of the Organization pursuant to those stipulations. Permanently restricted net assets are those resources whose use by the Organization is limited to donor-imposed stipulations that neither expire by passage of time nor can be fulfilled or otherwise removed by actions of the Organization. At December 31, 2014 and 2013, all of the Organization's net assets are considered unrestricted. Contributions and expenses Contributions received and unconditional promises to give are measured at their fair values and are reported as an increase in net assets. The Organization reports gifts of cash and other assets as restricted support if they are received with donor stipulations that limit the use of the donated assets, or if they are designated as support for future periods. When donor restrictions expire, that is, when the stipulated time restriction ends or the purpose of the restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activity as net assets released from restrictions. Donor-restricted contributions whose restrictions are met in the same reporting period are reported as unrestricted support. All contributions received during the years ended December 31, 2014 and 2013, are considered unrestricted. Expenses, including advertising, are recorded when incurred in accordance with the accrual basis of accounting. Contributed services Contributed services are recognized as contributions in accordance with FASB ASC , Accounting for Contributions Received and Contributions Made, if the services (a) create or -5-

9 A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) enhance non-financial assets or (b) require specialized skills, are performed by people with those skills, and would otherwise be purchased by the Organization. During the years ended December 31,2014 and 2013, the value of contributed services meeting the requirements for recognition in the financial statements were $4,500 and $3,300, respectively. Contributed facilities The Organization occupies, without charge, certain premises in which their counseling center is located. The estimated fair rental value ($21,800 for 2014 and 2013) of the premises is reported as support and expense in these financial statements. Accounts receivable Uncollectible accounts receivable are charged directly against net assets when they are determined to be uncollectible. Use of this method does not result in a material difference from the valuation method required by generally accepted accounting principles. Gifts of noncash items Noncash gifts and donations are recorded as contributions at their fair values at the date of the donation. During the years ended December 31, 2014 and 2013, all gifts of noncash items were used in ftindraising events and charged to ftmdraising expense. Use of estimates 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 and disclosure 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. Property and equipment and depreciation Property and equipment is recorded at cost for purchased assets and fair market value on the date of contribution for donated assets, less accumulated depreciation with depreciation being computed on the straight-line method over a useful life of five to ten years for furniture, fixtures and equipment, three to five years for software, and ten years for leasehold improvements. When property is retired or otherwise disposed of, the accounts are relieved of the applicable cost and accumulated depreciation and any resulting gain or loss is reflected in revenue. Major additions are capitalized and charges for maintenance and repairs are expensed as incurred. Cash and cash equivalents For the purpose of the statement of cash flows, the Organization considers all unrestricted cash, short-term savings and time deposits purchased with a maturity of three months or less to be cash. -6-

10 A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Employee benefits The Organization offers its employees fringe benefits that include health insurance coverage and professional liability insurance coverage, as well as several retirement plan options described in detail in Note E. Functional expenses Certain expenses are charged directly to functional classifications. Other expenses are allocated between program, fundraising, and management and general based upon estimates of staff time spent on each function or other appropriate allocation bases, such as square footage utilized by the program. Income tax status Livingston Youth and Family Counseling, Inc., is a not-for-profit organization which has qualified as such under Section 501 (c)(3) of the Intemal Revenue Code and is not subject to federal or state income taxes. The Organization applies the standards in FASB ASC in accounting for uncertainty in income taxes. The Organization files a United States Return of Organization Exempt fi:om Income Tax. The Organization's returns for 2011,2012,2013, and 2014 are subject to examination by the Intemal Revenue Service. B: PROPERTY AND EQUIPMENT Property and equipment consist of the following: Leasehold improvements $ 17,237 $ 17,237 Furniture, fixtures, and equipment 16,886 16,886 Office equipment 19,816 9,577 53,939 43,700 Less accumulated depreciation (41,904) (40,281) $ 12,035 $ 3,419 C: LEASE COMMITMENTS The Organization entered into a capital lease agreement with LCA Bank Corporation for office equipment in Terms of the lease are 1 initial payment of $360 and 35 equal monthly payments of $281. The lease includes a bargain purchase option of $1 at the end of the lease term. The lease covers office equipment with a carrying value of $7,540 and accumulated depreciation of $126 as of December 31,

11 C: LEASE COMMITMENTS (Continued) Future minimum lease payments as of December 31, 2014, are as follows: 2015 $ 2, , ,791 $ 7,311 D: CONCENTRATION OF CREDIT RISK Sources of revenue that potentially subject the Organization to concentrations of revenue sources consist principally of United Way funding, which comprises approximately 53% and 52% of total revenue for the years ended December 31,2014 and 2013, respectively. In addition, contributions and grants are received exclusively from the Baton Rouge metropolitan area. Adverse economic changes to this area could negatively impact the Organization's ability to fund its programs. E: EMPLOYEE RETIREMENT PLANS The Organization established a Section 457(b) Deferred Compensation Plan effective January, The plan covers full-time employees who have received a favorable performance evaluation and have been employed by the Organization for at least one year. The Organization makes aimual contributions at the discretion of the Board of Directors. No contributions were made in 2014 or The Organization also sponsors a 403(b) retirement plan. All employees are eligible to participate in this plan upon completion of a probationary period. Currently, the Organization does not match any employee contributions made to this plan and incurred no expenses for this plan in 2014 or F: NGN CASH INVESTING AND FINANCING ACTIVITIES Non cash investing and financing activities for 2014 and 2013 were as follows: Acquisition of equipment under capital lease obligation $ 7,540 $ G: SUBSEQUENT EVENTS Subsequent events were evaluated through April 28,2015, which is the date the financial statements were available to be issued. -8-

12 E: COMPENSATION, BENEFITS, AND OTHER PAYMENTS TO THE AGENCY HEAD The following is a summary of compensation, benefits, and other payments to the agency head(s). Agency Head(s): Kelvin McCoy, Executive Director(Current), Ligia Soileau, Executive Director(Former) Purpose McCoy Soileau Compensation $ 21,667 $ 40,206 Mileage Reimbursement: Conferences, travel, and meals