Transitional Living Centers of Oklahoma, Inc. Financial Statements and Independent Auditor s Report. December 31, 2014 and 2013

Transcription

1 Financial Statements and Independent Auditor s Report December 31, 2014 and 2013

2 Table of Contents PAGE Independent Auditor s Report... 3 Financial Statements Statements of Financial Position... 4 Statements of Activities... 5 Statements of Functional Expenses Statements of Cash Flows... 8 Notes to the Financial Statements

3 Independent Auditor s Report Board of Directors Transitional Living Centers of Oklahoma, Inc. We have audited the accompanying financial statements of Transitional Living Centers of Oklahoma, Inc., which comprise the statements of financial position as of December 31, 2014 and 2013, and the related statements of activities, functional expenses, and cash flows for the years then ended, and the related notes to the financial statements. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits 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 auditors 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 Transitional Living Centers of Oklahoma, Inc., as of December 31, 2014 and 2013, 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. Tulsa, Oklahoma March 12, 2015

4 Statements of Financial Position December 31, Assets Current Assets Cash $ 139,172 $ 209,535 Accounts receivable Pledges receivable - 2,204 Cash held for program participants 17,214 8,036 Total current assets 156, ,035 Property and Equipment Land 60,000 60,000 Building and improvements 392, ,445 Furniture and fixtures 9,434 5, , ,445 Less accumulated depreciation (43,819) (28,406) Net property and equipment 418, ,039 Total assets $ 574,867 $ 547,074 Liabilities and Net Assets Current Liabilities Liability to program participants $ 17,214 $ 8,036 Other accrued liabilities 2,704 6,532 Total current liabilities 19,918 14,568 Long-Term Liabilities Mortgage payable 60,782 95,782 Net Assets Unrestricted 434, ,064 Temporarily restricted 60,078 92,660 Total net assets 494, ,724 Total liabilities and net assets $ 574,867 $ 547,074 The accompanying notes are an integral part of these financial statements

5 Statements of Activities Years ended December 31, Changes in unrestricted net assets Revenue: Contributions $ 229,963 $ 183,983 Other income 9,158 34,268 Net assets released from restrictions 93,784 39,093 Total revenue 332, ,344 Expenses: Program 126, ,050 Management and general 86,716 82,205 Fund-raising 29,436 30,506 Total expenses 242, ,761 Increase in unrestricted net assets 90,025 36,583 Changes in temporarily restricted net assets Contributions 61,202 47,641 Net assets released from restrictions (93,784) (39,093) Increase (decrease) in temporarily restricted net assets (32,582) 8,548 Increase in net assets 57,443 45,131 Net assets, beginning of year 436, ,593 Net assets, end of year $ 494,167 $ 436,724 The accompanying notes are an integral part of these financial statements

6 Statement of Functional Expenses Year ended December 31, 2014 Management and Fund- Program General Raising Total Payroll $ 65,133 $ 55,206 $ 18,402 $ 138,741 Legal & Accounting - 16,627-16,627 Utilities 14, ,556 Depreciation 14, ,413 Maintenance 9, ,302 Insurance 7,712 1,882-9,594 Fund-Raising - - 8,676 8,676 Program Activities 6, ,499 Household Supplies 3, ,757 Phone & Computer - 3,420-3,420 Office Supplies - 3,033-3,033 Public Relations - - 2,358 2,358 Interest 2, ,348 Staff Development - 1,972-1,972 Taxes 1, ,561 Mileage 1, ,124 Other Expenses - 1,899-1,899 Total Expenses $ 126,728 $ 86,716 $ 29,436 $ 242,880 The accompanying notes are an integral part of these financial statements

7 Statement of Functional Expenses Year ended December 31, 2013 Management and Fund- Program General Raising Total Payroll $ 54,279 $ 61,384 $ 20,588 $ 136,251 Maintenance 18,165 1,211-19,376 Utilities 13, ,944 Fund-Raising - - 9,228 9,228 Depreciation 7, ,279 Insurance 3,355 4,444-7,799 Legal & Accounting - 5,018-5,018 Phone & Computer - 4,549-4,549 Program Activities 3, ,937 Interest 3, ,286 Office Supplies - 2,335-2,335 Household Supplies 1, ,690 Taxes 1, ,468 Mileage 1, ,128 Public Relations Bank Charges Other Expenses - 1,134-1,134 Total Expenses $ 108,050 $ 82,205 $ 30,506 $ 220,761 The accompanying notes are an integral part of these financial statements

8 Statements of Cash Flows Years ended December 31, Cash flows from operating activities Increase in net assets $ 57,443 $ 45,131 Adjustments to reconcile increase in net assets to net cash provided by (used in) operating activities: Depreciation 15,413 8,279 (Increase) decrease in: Accounts receivable 240 (260) Pledges receivable 2,204 22,796 Cash held for program participants (9,178) - Increase (decrease) in: Liability to program participants 9,178 (7,421) Other accrued liabilities (3,828) 6,532 Net cash provided by operating activities Cash flows from investing activities Additions to property and equipment 71,472 75,057 (106,835) (52,958) Cash flows from financing activities Payments on mortgage payable (35,000) (35,500) Decrease in cash Cash, beginning of year Cash, end of year (70,363) (13,401) 209, ,936 $ 139,172 $ 209,535 The accompanying notes are an integral part of these financial statements

9 Notes to the Financial Statements December 31, 2014 and 2013 Note A Operations and Summary of Significant Accounting Policies 1. Organization Transitional Living Centers of Oklahoma, Inc. (the Organization ) provides housing and services to homeless or near-homeless women caring for children. The Lindsey House provides furnished apartments and social services, budgeting classes and family assistance to the resident families. The mission is to support these families as they transition from homelessness, learn important life skills, and regain the confidence to become self-sufficient. Transitional Living Centers of Oklahoma, Inc. was incorporated as a non-profit organization under the provisions of Section 501(c)(3) of the Internal Revenue Code. 2. Basis of Accounting The Organization prepares its financial statements on the accrual basis of accounting. Accordingly, revenues are recognized when earned, and expenses are recognized when incurred. 3. Basis of Presentation The financial statements are presented in accordance with FASB ASC 958, Not-for-Profit Entities, which requires the Organization to report information regarding its financial position and activities according to three classes of net assets: unrestricted, temporarily restricted, and permanently restricted net assets. The Organization has no permanently restricted net assets, so this class of net assets is not shown on the financial statements. 4. 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 amount of assets and liabilities and disclosures. Actual results could differ from those estimates. 5. Cash Cash consists of cash on deposit at federally-insured financial institutions. At December 31, 2014 and 2013, there were no balances in excess of insured limits. 6. Pledges Receivable Pledges receivable consist of unconditional promises to pay. In conformity with generally accepted accounting principles, conditional promises to pay are not recorded until the donor conditions are met

10 Notes to the Financial Statements December 31, 2014 and 2013 Note A Operations and Summary of Significant Accounting Policies Continued 7. Property and Equipment The Organization follows the practice of capitalizing, at cost, all the expenditures for fixed assets in excess of $2,500. Depreciation is provided using the straight-line method over the estimated useful lives of the related assets, generally as follows: Buildings and improvements Furniture and fixtures years 5 years Expenditures for maintenance and repairs are charged to expense as incurred, whereas renewals and improvements that materially extend the useful life of assets are capitalized. The Organization records impairments to its property and equipment when it becomes probable that the carrying value of the assets will not be fully recovered over their estimated useful lives. Impairments are recorded to reduce the carrying value of the assets to their estimated fair values determined by the Organization based on facts and circumstances in existence at the time of the determination, estimates of probable future economic conditions and other information. No impairments were recorded in 2014 or Income Taxes The Organization is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code and is not classified as a private foundation. Therefore, no provision for income taxes is included in these financial statements. Information returns filed with the IRS are open for examination for three years from the date filed. 9. Net Assets To ensure observance of limitations and restrictions placed on the use of resources available to Transitional Living Centers of Oklahoma, Inc., net assets are segregated according to any restrictions placed on the resources by the donor. In the accompanying financial statements, net asset restrictions, which have similar characteristics, have been combined, though the accounting records maintain more detailed accounts. The net assets of Transitional Living Centers of Oklahoma, Inc. are segregated as follows: Unrestricted: This category reflects net assets, which are generally available for authorized expenditures in furtherance of the goals and objectives of the Organization and represent unrestricted contributions and earnings of funds other than those whose use has been specified by the donor. Temporarily Restricted: This category reflects contributions provided by donors for specified activities and pledges related to facility improvements and maintenance. During 2014 and 2013, $93,784 and $39,093 of these funds were spent for their restricted purpose

11 Notes to the Financial Statements December 31, 2014 and 2013 Note A Operations and Summary of Significant Accounting Policies Continued 7. Property and Equipment The Organization follows the practice of capitalizing, at cost, all the expenditures for fixed assets in excess of $2,500. Depreciation is provided using the straight-line method over the estimated useful lives of the related assets, generally as follows: Buildings and improvements Furniture and fixtures years 5 years Expenditures for maintenance and repairs are charged to expense as incurred, whereas renewals and improvements that materially extend the useful life of assets are capitalized. The Organization records impairments to its property and equipment when it becomes probable that the carrying value of the assets will not be fully recovered over their estimated useful lives. Impairments are recorded to reduce the carrying value of the assets to their estimated fair values determined by the Organization based on facts and circumstances in existence at the time of the determination, estimates of probable future economic conditions and other information. No impairments were recorded in 2014 or Income Taxes The Organization is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code and is not classified as a private foundation. Therefore, no provision for income taxes is included in these financial statements. Information returns filed with the IRS are open for examination for three years from the date filed. 9. Net Assets To ensure observance of limitations and restrictions placed on the use of resources available to Transitional Living Centers of Oklahoma, Inc., net assets are segregated according to any restrictions placed on the resources by the donor. In the accompanying financial statements, net asset restrictions, which have similar characteristics, have been combined, though the accounting records maintain more detailed accounts. The net assets of Transitional Living Centers of Oklahoma, Inc. are segregated as follows: Unrestricted: This category reflects net assets, which are generally available for authorized expenditures in furtherance of the goals and objectives of the Organization and represent unrestricted contributions and earnings of funds other than those whose use has been specified by the donor. Temporarily Restricted: This category reflects contributions provided by donors for specified activities and pledges related to facility improvements and maintenance. During 2014 and 2013, $93,784 and $39,093 of these funds were spent for their restricted purpose