National Multiple Sclerosis Society, Ohio Valley Chapter

Transcription

1 National Multiple Sclerosis Society, Ohio Valley Chapter Financial Statements with Supplemental Information September 30, 2013 and 2012 and Independent Auditors Report

2 September 30, 2013 and 2012 Contents Page Independent Auditors Report 1 Financial Statements: Statements of Financial Position 2 Statements of Activities 3 4 Statements of Functional Expenses 5 6 Statements of Cash Flows 7 Notes to Financial Statements 8 13 Independent Auditors Report on Supplemental Information 14 Supplemental Information: Schedule of Income from Special Events and New Campaigns 15 Schedule of Amount Due National MS Society 16 Schedule of Memberships and Contributions 17

3 Independent Auditors Report Board of Trustees National Multiple Sclerosis Society, Ohio Valley Chapter We have audited the accompanying financial statements of National Multiple Sclerosis Society, Ohio Valley Chapter (a nonprofit organization), which comprise the statements of financial position as of September 30, 2013 and 2012, 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 National Multiple Sclerosis Society, Ohio Valley Chapter as of September 30, 2013 and 2012, 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. Cincinnati, Ohio January 21, East Fourth Street l Cincinnati, OH l Tel l Fax Member, PKF International

4 NATIONAL MUTLIPLE SCLEROSIS SOCIETY Statements of Financial Position September 30, 2013 and Assets Current assets Cash and cash equivalents $ 317,381 $ 308,751 Contributions receivable 114,762 84,166 Contributions receivable from home office 4,872 - Due from other chapters 4,000 5,767 Prepaid expenses 16,188 1,254 Total current assets 457, ,938 Noncurrent assets Property and equipment, at cost, net of accumulated depreciation and amortization 13,413 - Due from home office - Charitable Gift Annuities 24,642 18,578 Rent deposit 7,752 7,752 Total noncurrent assets 45,807 26,330 Total assets $ 503,010 $ 426,268 Liabilities and net assets Current liabilities Due to home office: Remittance due to home office $ - $ 5,265 Other payables to home office 1,398 1,400 Due to other chapters 2,680 - Accounts payable and accrued expenses 133,739 80,939 Deferred revenue 1, Total liabilities 139,078 87,884 Net assets Unrestricted 332, ,471 Temporarily restricted 31,461 23,913 Total net assets 363, ,384 Total liabilities and net assets $ 503,010 $ 426,268 See accompanying notes to financial statements 2

5 Statement of Activities Year Ended September 30, 2013 Temporarily Unrestricted Restricted Total SUPPORT AND REVENUE Public Support Received Directly: Special events (includes in-kind donations of $52,387) $ 1,555,220 $ 690 $ 1,555,910 Less benefit to donor costs 211, ,827 Total special events 1,343, ,344,083 Membership and contributions (includes in-kind donations of $40,439) 290, , ,638 Legacies 43,096-43,096 Received at home office (other than legacies) Total received directly 1,677, ,420 1,821,817 Total received indirectly Federated fund raising organization Total public support 1,677, ,420 1,822,388 Net assets released from restrictions 138,759 (138,759) - Total public support and reclassifications 1,816,727 5,661 1,822,388 Expenses Program Services Research 318, ,876 Society activities 250, ,546 Client programs 333, ,552 Community programs 211, ,153 Professional education and training 46,795-46,795 Public education 252, ,885 Total program services 1,413,807-1,413,807 Supporting Services Fundraising 287, ,656 Management and general 56,152-56,152 Total supporting services 343, ,808 Total expenses 1,757,615-1,757,615 Change in net assets before other changes 59,112 5,661 64,773 Other Changes Other changes 475 1,887 2,362 Legal settlement (41,587) - (41,587) Total other changes (41,112) 1,887 (39,225) Change in net assets 18,000 7,548 25,548 Net assets, beginning of year, as restated 314,471 23, ,384 Net assets, end of year $ 332,471 $ 31,461 $ 363,932 See accompanying notes to financial statements 3

6 Statement of Activities Year Ended September 30, 2012 Temporarily Unrestricted Restricted Total SUPPORT AND REVENUE Public Support Received Directly: Special events (includes in-kind donations of $56,809) $ 1,571,939 $ - 1,571,939 Less benefit to donor costs 362, ,458 Total special events 1,209,481-1,209,481 Membership and contributions (includes in-kind donations of $5,370) 198,675 72, ,762 Legacies 25,238-25,238 Received at home office (other than legacies) 39,535-39,535 Total received directly 1,472,929 72,087 1,545,016 Total received indirectly Federated fund raising organization Total public support 1,473,618 72,087 1,545,705 Net assets released from restrictions 86,630 (86,630) - Total public support and reclassifications 1,560,248 (14,543) 1,545,705 Expenses Program Services Research 311, ,599 Society activities 244, ,828 Client programs 349, ,620 Community programs 203, ,986 Professional education and training 56,547-56,547 Public education 235, ,739 Total program services 1,402,319-1,402,319 Supporting Services Fundraising 335, ,264 Management and general 75,391-75,391 Total supporting services 410, ,655 Total expenses 1,812,974-1,812,974 Change in net assets before other changes (252,726) (14,543) (267,269) Other Changes 5,163-5,163 Change in net assets (247,563) (14,543) (262,106) Net assets, beginning of year 562,034 38, ,490 Net assets, end of year $ 314,471 $ 23,913 $ 338,384 See accompanying notes to financial statements 4

7 Statement of Functional Expenses Year Ended September 30, 2013 PROGRAM SERVICES SUPPORTING SERVICES Professional Management Benefit to National Client Community Education Public Fund and Sub- Donor Research Activities Programs Programs and Training Education Total Raising General Total costs Total Expenses Salaries $ - $ - $147,460 $ 135,171 $ 30,721 $165,892 $ 479,244 $ 98,306 $ 36,865 $ 614,415 $ - $ 614,415 Employee benefits ,553 12,424 2,824 15,247 44,048 9,036 3,388 56,472-56,472 Payroll taxes ,717 11,657 2,649 14,307 41,330 8,478 3,179 52,987-52,987 Total salaries and related expenses , ,252 36, , , ,820 43, , ,874 Printing ,250-20,341-20,341 Postage and shipping - - 1, ,894 7, ,230-9,230 Telephone , ,689-3,689 Supplies - - 2,109 2, ,312 7,038 2, ,888 25,758 35,646 Dues and memberships , , ,566-3,566 Professional and contract service fees ,081 17,078 3,875 20,923 92,957 84,155 4, , ,761 Travel - - 3,831 4, ,878 10,355 14, , , ,708 Meetings , ,101 1, ,955 7,427 11,382 Occupancy ,399 21,449 4,875 26,323 76,046 15,599 5,850 97,495 2,421 99,916 Furniture and equipment , ,867-1,867 Insurance (property and casualty) Funding of other Organizations that support individuals with MS Direct financial assistance , , ,165-73,165 Awards and Prizes ,954 55,557 Miscellaneous expense - - 1,357 1, ,527 4,411 23, ,849 3,818 31,667 Depreciation and amortization - - 1,356 1, ,526 4, ,651-5,651 Restricted contributions to Society Research Investment Chapter Support of Society Research Investment 318, , , ,876 Total expenses before Chapter Support of Society Activities 318, , ,153 46, ,885 1,163, ,656 56,152 1,507, ,827 1,718,896 Chapter Support of Society Activities - 250, , , ,546 Total expenses $ 318,876 $ 250,546 $ 333,552 $ 211,153 $ 46,795 $ 252,885 $ 1,413,807 $ 287,656 $ 56,152 $ 1,757,615 $ 211,827 1,969,442 Less Direct Benefit to Donor Costs. (211,827) Total expenses as reported on the statement of activities $ 1,757,615 See accompanying notes to financial statements 5

8 Statement of Functional Expenses Year Ended September 30, 2012 PROGRAM SERVICES SUPPORTING SERVICES Professional Management Benefit to National Client Community Education Public Fund and Sub- Donor Research Activities Programs Programs and Training Education Total Raising General Total Costs Total Expenses Salaries $ - $ - $149,434 $ 124,529 $ 37,359 $155,661 $ 466,983 $ 105,849 $ 49,811 $ 622,643 $ - $ 622,643 Employee benefits ,136 10,113 3,034 12,642 37,925 8,596 4,045 50,566-50,566 Payroll taxes ,180 10,984 3,295 13,730 41,189 9,336 4,393 54,918-54,918 Total salaries and related expenses , ,626 43, , , ,781 58, , ,127 Printing ,575-24,703-24,703 Postage and shipping ,839 8, ,767-10,767 Telephone - - 1,867 1, ,945 5,905 1, ,849-7,849 Supplies - - 2,544 1, ,236 7,315 3, ,140 28,618 39,758 Dues and memberships , , ,084-3,084 Professional and contract service fees ,084 18,633 2,872 11, , ,829 3, , ,213 Travel - - 6,269 5, ,142 16,162 16,444 1,005 33, , ,800 Meetings - - 8,073 2, , ,729 11,950 23,679 Occupancy ,666 21,389 6,417 26,736 80,208 18,180 8, ,943 6, ,773 Furniture and equipment - - 1,359 1, ,415 4, ,661-5,661 Insurance (property and casualty) - - 1,520 1, ,583 4,749 1, ,332-6,332 Funding of other Organizations that support individuals with MS Direct financial assistance , , ,714-26,714 Awards and Prizes ,587 48,587 Miscellaneous expense - - 3,406 2, ,923 9,368 24, , , ,651 Depreciation and amortization Restricted contributions to Society Research Investment Chapter Support of Society Research Investment 311, , , ,599 Total expenses before Chapter Support of Society Activities 311, , ,986 56, ,739 1,157, ,264 75,391 1,568, ,458 1,930,604 Chapter Support of Society Activities - 244, , , ,828 Total expenses $ 311,599 $ 244,828 $ 349,620 $ 203,986 $ 56,547 $ 235,739 $ 1,402,319 $ 335,264 $ 75,391 $ 1,812,974 $ 362,458 2,175,432 Less Direct Benefit to Donor Costs. (362,458) Total expenses as reported on the statement of activities $ 1,812,974 See accompanying notes to financial statements 6

9 Statements of Cash Flows Years Ended September 30, 2013 and CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ 25,548 $ (262,106) Adjustments to reconcile change in net assets to net cash from operating activities: Depreciation and amortization 5,652 - Change in value - charitable gift annuities (6,064) (4,232) Changes in operating assets and liabilities Contributions receivable (30,596) 4,341 Contributions receivable from home office (4,872) - Prepaid expenses (14,934) 10,594 Accounts payable and accrued expenses 52,800 19,930 Due from/to home office/other chapters (820) 5,031 Deferred revenue Net cash provided by (used in) operating activities 27,695 (226,442) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of investments - 76,374 Purchases of property and equipment (19,065) - Net cash provided by (used in) investing activities (19,065) 76,374 Net change in cash and cash equivalents 8,630 (150,068) Cash and cash equivalents, beginning of year 308, ,819 Cash and cash equivalents, end of year $ 317,381 $ 308,751 See accompanying notes to financial statements 7

10 Notes to Financial Statements NOTE 1 ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Organization The National Multiple Sclerosis Society, Ohio Valley Chapter (the "Chapter") is a not-for-profit voluntary health agency which raises funds in Southern Ohio and Northern Kentucky to provide and connect people with multiple sclerosis to services and resources, support multiple sclerosis research and educate the public about the impact of multiple sclerosis. Services include, but are not necessarily limited to, supporting education, centers providing medical, recreational and other therapy and care for those living with multiple sclerosis, counseling and support, advocacy for local and national change, and information and resources through in-person and online programs. Net Asset Classifications Resources for various purposes are classified for accounting and financial reporting purposes into net asset categories established according to their nature and purpose as follows: Unrestricted Net Assets: Unrestricted net assets represent funds which are fully available, at the discretion of management and the Board of Trustees, for the Chapter to utilize in any of its program or supporting services. Temporarily Restricted Net Assets: Temporarily restricted net assets are comprised of funds which are restricted by donors for specific purposes. The restrictions are satisfied either by the passage of time or by actions of the Chapter. When both restricted and unrestricted resources are available for use, it is the Chapter s policy to use restricted resources first, then unrestricted resources as they are needed. Revenue Recognition and Deferred Revenue Contributions are recorded as revenue when received or promised (pledged) unconditionally, at their fair value. The fair value of long-term contributions receivable are measured based on the present value of future cash flows, with consideration of expectation about possible variations in the amount and/or timing of the cash flows and other specific factors that would be considered by market participants. The fair value measurements also consider donors' credit risk. Gifts received with donor stipulations that limit the use of the donated assets are reported as temporarily restricted support. The Chapter recognizes income from legacies and bequests when an unassailable right to the gift has been established by the court and the proceeds are measurable in amount. It is the Chapter s policy to record temporarily restricted contributions received and fulfilled in the same accounting period in the unrestricted net asset class. When a prior year s donor restriction expires, that is, when a time restriction ends or purpose restriction is fulfilled, temporarily restricted net assets are reclassified as unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Conditional contributions are recognized as revenue when the conditions on which they depend have been substantially met. All revenue received in advance for special events that are held subsequent to year-end is deferred and recognized in the year of the event. Expense Allocations Functional expenses that are not specifically attributable to program services or supporting services are allocated by management based on various allocation factors. 8

11 Notes to Financial Statements (Continued) NOTE 1 ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Concentration of Credit Risk Deposits at the Chapter s financial institutions are insured by the Federal Deposit Insurance Corporation up to $250,000. The Chapter has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on its cash and investments. The Chapter had no uninsured cash and investment balances at September 30, 2013 and Cash and Cash Equivalents The Chapter considers highly liquid investments with maturities of three months or less when purchased to be cash equivalents. At September 30, 2013, the Chapter's cash was held by one bank. Contributions and Other Receivables Contributions and other receivables consist of accruals of public support received after year end that pertained to fundraising events held during fiscal 2013 and 2012, respectively. Receivables are recorded at net realizable value, net of an allowance for uncollectible accounts. The Chapter believes that the pledges receivable are fully collectible. The current portion of contributions receivable are expected to be collected within one year. There are no identifiable concentrations of credit risk related to these receivables. Property and Equipment Property and equipment are recorded at cost. Depreciation and amortization are provided on the straight-line basis over the estimated useful lives of the assets or the terms of the lease, as appropriate. Expenditures for maintenance and repairs are charged to operations as incurred. The Chapter capitalizes all equipment purchases exceeding $500 with useful lives in excess of one year. Donated Goods and Services Donated goods and services used by the Chapter in programs, special events, and supporting services are reflected as in-kind contributions and expensed in the accompanying financial statements at their estimated fair value at the date of receipt Donated goods $ 54,257 $ 58,679 Donated services 38,569 3,500 $ 92,826 $ 62,179 In addition, a number of volunteers have donated significant amounts of their time to the Chapter's program services and supporting services. No amounts have been reflected in the accompanying financial statements for those donated services because they do not meet the criteria for revenue recognition established by ASC Section (formerly Statement of Financial Accounting Standards No. 116, Contributions Received and Contributions Made). 9

12 Notes to Financial Statements (Continued) NOTE 1 ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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. Research and National Activities Expense The Society calculates the National Programs Expense for each Chapter in advance of the fiscal year after a complete review by the Budget Review Committee and national Board. The Chapter s National Programs Expense will be calculated using the average of the previous two year s audited results as the revenue base. The remittance percentage is subject to adjustment each year to ensure that the Society s meets its programmatic goals and that all donor restrictions are honored. In FY13, the Chapter s National Programs Expense under the new policy was calculated to be $569,422. By setting the Chapter s National Programs Expense in advance, the Chapters and the national organization are in a better position to control resources through their respective budgeting and planning processes. The Chapter participates in Home Office s direct marketing program. In FY12, unrestricted public support received under the program by the home office that was attributable to Chapter sources was credited to and recorded by the Chapter at 50% of the net revenue from the program. These amounts were recorded as contributions received from Home Office in FY12 in the accompanying statement of activities. In order to drive Society initiatives, the Direct Marketing Program revenue distribution has been revised for FY13. The Chapter no longer records the net revenue from the program as contributions received from home office, but rather received credit towards its National Programs Expense for 50% of the actual FY11 audited Direct Marketing revenue. Reclassifications Certain reclassifications have been made to the FY12 balances to conform to the FY13 presentation. Namely, $14,347 was reclassified from unrestricted net assets to temporarily restricted net assets. This reclassification was changed in the FY12 net assets released from restrictions. The reclassification had no effect on the FY12 change in net assets. Advertising Costs Advertising costs are expensed as incurred. Advertising expense was $12,435 and $57,862 in 2013 and 2012, respectively, consisting of $-0- and $2,994 in donated advertising and public service announcements. NOTE 2 INCOME TAXES The Chapter qualifies as a charitable organization as defined by Internal Revenue Code 501(c)(3), and, accordingly, it is exempt from federal income taxes under Internal Revenue Code Section 501(a). Additionally, since the Chapter is publicly supported, contributions made to the Chapter qualify for the maximum charitable contributions deduction under the Internal Revenue Code. The Chapter is also exempt from Ohio state and local income tax. 10

13 Notes to Financial Statements (Continued) NOTE 2 INCOME TAXES (Continued) Management analyzed the tax positions taken by the Chapter and concluded that, as of September 30, 2013, there were no uncertain tax positions taken or are expected to be taken. Accordingly, no interest or penalties related to uncertain tax positions have been accrued in the accompanying financial statements. The Chapter is subject to audits by taxing jurisdictions; however, no audit for any tax period is currently in progress. Management believes that the Chapter is no longer subject to such audits for years ended on or prior to September 30, 2009 under federal and Ohio tax jurisdictions. NOTE 3 FAIR VALUE MEASUREMENTS The Chapter adopted the provisions of ASC Section (formerly known as FASB Statement of Financial Accounting Standards No. 157), Fair Value Measurements ( FAS 157'') effective October 1, FAS 157 establishes a fair value hierarchy for the inputs used to measure fair value based on the nature of the data input, which generally range from quoted prices for identical instruments in a principal trading market (Level 1) to estimates determined using related market data (Level 3). Multiple inputs may be used to measure fair value; however, the level of fair value of each financial asset or liability presented below is based on the lower significant input level within this fair value hierarchy. Fair value measurements based on Level 1 inputs: Measurements that are most observable are based on quoted prices of identical instruments obtained from the principal markets in which they are traded. Closing prices are both readily available and representative of fair value. Market transactions occur with sufficient frequency and volume to ensure liquidity. Fair value measurements based on Level 2 inputs: Measurements derived indirectly from observable inputs or from quoted prices from markets that are less liquid are considered Level 2. Measurements may consider inputs that other market participants would use in valuing a portfolio, quoted market prices for similar securities, interest rates, credit risks, and others. Fair value measurements based on Level 3 inputs: Measurements that are least observable are estimated from related market data, determined from sources with little or no market activity for comparable contracts, or are positions with longer durations. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Chapter believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following paragraph provides the fair value hierarchy of the Chapter's financial assets as of September 30, 2013 and 2012: LEVEL 1 Cash and cash equivalents at September 30, 2013 and 2012 of $317,381 and $308,751, respectively, that are interest-bearing and are included in cash and cash equivalents in the accompanying statement of financial position. 11

14 Notes to Financial Statements (Continued) NOTE 4 PROPERTY AND EQUIPMENT At September 30, property and equipment consisted of the following: Computer hardware and purchased software $ 19,064 $ - Furniture and fixtures 19,983 19,983 Equipment 12,500 12,500 51,547 32,483 Less accumulated depreciation 38,134 32,483 Net property and equipment $ 13,413 $ - NOTE 5 LEASES Office rent expense for the years ended September 30, 2013 and 2012 was approximately $97,000 and $107,000, respectively. The future minimum annual rental commitments under noncancellable lease agreements at September 30, 2013 are as follows: 2014 $ 93, , , , ,937 Thereafter 26,175 NOTE 6 PENSION PLAN $ 517,133 The Chapter participates in the Society s noncontributory Defined Contribution Retirement Plan, which covers substantially all of the Chapter s employees, based on defined eligibility for covered employees. Temporary employees and independent contractors are not eligible. Employees become eligible on the first day of the first month after beginning employment and all covered employees receive a contribution on September 30 each year. Employees are fully vested at the end of five years. The contribution rate for the years ended September 30, 2013 and 2012, as determined by the Society s President & Chief Executive Officer, was 3% of gross annual salary. In accordance with the Plan s provisions, contributions required in any given year are first offset by forfeitures of unvested Chapter contributions for terminated participants. The pension expense incurred by the Chapter related to this plan for the years ended September 30, 2013 and 2012 was $14,408 and $17,475, respectively NOTE 7 TEMPORARILY RESTRICTED NET ASSETS As of September 30, 2013 and 2012, temporarily restricted net assets are amounts restricted due to donor-imposed purpose restrictions for programs in the amount of $6,819 and $5,334, respectively. The remaining balance of temporarily restricted net assets, $24,642 and $18,579 as of September 30, 2013 and 2012, respectively, will expire by the passage of time. 12

15 Notes to Financial Statements (Continued) NOTE 8 CONTRIBUTIONS RESTRICTED FOR LOCAL USE During the fiscal years ended September 30, 2013 and 2012, the Chapter received contributions of $94,781 and $32,855, respectively, that were restricted by the donors to be used solely for local chapter services and sponsorship for special events. These restricted contributions were tested as part of our independent audit procedures and were in compliance with the restricted gift policy of the National Multiple Sclerosis Society. NOTE 9 GIFT ANNUITY The Chapter is the beneficiary of a number of split-interest agreements with donors, whereby home office controls and invests the donated assets and shares with the donor or the donor s designee income generated from these assets until such time as stated in the agreement (usually upon the death of the donor or the donor s designee). Effective fiscal year 2012, the Chapter Relations Committee (CRC) of the Board of Directors of the Society adopted a new policy which allocates 100% of the residual assets to the Chapter in a split-interest agreement where a Chapter is designated as a beneficiary by the donor. The CRC also applied the policy to all such agreements entered into as of September 30, 2011, resulting in the reallocation, during fiscal year 2012, to the Chapters of the portion of contributions previously credited to home office as of that date. Home office continues to hold, manage, invest and control the donated assets. The year-end values of the Chapter split-interest agreements for 2013 and 2012 were $24,642 and $18,578, respectively. Income derived from changes in value of the agreements for 2013 and 2012 was $6,064 and $4,232, respectively. NOTE 10 CONTINGENCIES In the opinion of management, there are no pending legal actions for which the ultimate liability will have a material effect on the net assets of the Organization. NOTE 11 SUBSEQUENT EVENTS Subsequent events have been evaluated through January 21, 2014, which is the date the financial statements were available to be issued. There were no subsequent events that are required to be recognized or disclosed in the accompanying financial statements. 13

16 SUPPLEMENTAL INFORMATION

17 Independent Auditors Report on Supplemental Information Board of Trustees National Multiple Sclerosis Society, Ohio Valley Chapter We have audited the financial statements of National Multiple Sclerosis Society, Ohio Valley Chapter (a non-profit organization) as of and for the year ended September 30, 2013, and have issued our report thereon dated January 21, 2014, which contained an unmodified opinion on those financial statements. Our audit was performed for the purpose of forming an opinion on the financial statements as a whole. The supplemental information presented in the following section of this report 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. Cincinnati, Ohio January 21, East Fourth Street l Cincinnati, OH l Tel l Fax Member, PKF International 14

18 Schedule of Income from Special Events and New Campaigns Year Ended September 30, 2013 Total Other Sponsership Benefit to Other Sponsorship Restricted Other Campaign Donor Event Total Event Cash Inkind Income Restricted Income Total Costs Costs Costs Walk MS $ 96,076 $ 23,325 $ 690 $ 120,091 $ 532,219 $ 652,310 $ 63,073 $ 21,306 $ 84,379 Bike MS 34,541 24,062-58, , ,105 99,816 27, ,155 MuckFest MS - 5,000-5,000 61,800 66,800 1,438 62,375 63,813 Dinner of Champions , ,075 25,471 3,539 29,010 Women on the MOVE 17, ,200 50,917 68,117 17,118 3,602 20,720 Other Leadership Events Leadership Event - Class 5, ,000 34,508 39,508 4,911 6,774 11,685 Total Other Leadership 5, ,000 34,508 39,508 4,911 6,774 11,685 Other Special Events (List): Marathon Strides ,995 2,995-2,609 2,609 Total Other Special Events ,995 2,995-2,609 2,609 Total $ 152,817 $ 52,387 $ 690 $ 205,894 $ 1,350,016 $ 1,555,910 $ 211,827 $ 127,544 $ 339,371 15

19 Schedule of Amount Due National MS Society Year Ended September 30, 2013 REMITTANCE: Total FY13 National Programs Expense per Annual Remittance Invoice $ 569,422 Add: Research Honor roll contributed from chapter reserves - Research Honor roll contributed from specific gifts - Restricted to Home Office other than Research received at the chapter - Total National Programs Expense 569,422 Chapter Payments: Oct thru Sept ,422 Less Payments for FY12 (including honor roll of $ 0 ) - Less Payments for FY11 and prior years - Total Paid for FY13 569,422 Credits: Miscellaneous Credits - Total Credits - Total Payments Credits and Adjustments 569,422 Balance Due Home Office or (Chapter) for FY13 - Remittance Indebtedness: Remittance Balance Due Home Office or (Chapter) as of 9/30/12 (previous yr) 6,665 Less Payments for FY12 in current year (6,665) Less Payments for FY11 and prior years during current year - Less Other reduction to Past Debt by Home Office (e.g, move to Memo Debt) Adjusted Balance Due Home Office or (Chapter) for prior years - Total REMITTANCE Balance Due Home Office (Chapter) at 9/30/ Current - Long-term - OTHER PAYABLES TO HOME OFFICE: Campaign Supplies Loans & Advances Health Insurance Society College Scholarships Other (List and describe individually): OHG Benefits for Q3 1,020 Convio - September TOTAL OTHER PAYABLES TO HOME OFFICE: 1,398 IN ADDITION - AMOUNTS PAYABLE TO/FROM OTHER CHAPTERS: Northern Kentucky Chapter - check for Walmart (4,000) Home Office (4,872) NMSS Ohio Buckeye - MS CAN 4th Quarter 2,680 Total due to (from) other Chapters at 9/30/13 $ ( 6,192 ) 16

20 Schedule of Memberships and Contributions Year Ended September 30, 2013 Amount of In kind Temporarily Permanently included Unrestricted Restricted Restricted Total in Total Individual Contributions General Gifts $ 82,057 $ 35,860 $ $ 117,917 $ Tributes & Memorials 21,962 21,962 Workplace Giving 32,084 32,084 Total Individual Contributions 136,103 35, ,963 Corporate Contributions Corporate Gifts 46,161 46,161 40,439 Matching Gifts 28,848 25,000 53,848 Total Corporate contributions 75,009 25, ,009 40,439 Foundation gifts & grants 32,356 82, ,226 Other Campaign Income: Community (Third Party) Event Income 47,440 47,440 Total Other campaign income 47,440 47,440 Total Contributions $ 290,908 $ 143,730 $ $ 434,638 $ 40,439 17