THE GIVE AN HOUR NONPROFIT CORPORATION

Transcription

1 FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS REPORT

2 Financial Statements Contents Independent Auditors Report Financial Statements Statements of Financial Position Statements of Activities Statements of Cash Flows Notes to Financial Statements Supplemental Information Schedules of Functional Expenses

3 INDEPENDENT AUDITORS REPORT To the Board of Directors The Give An Hour Nonprofit Corporation We have audited the accompanying financial statements of The Give An Hour Nonprofit Corporation (the Organization) which comprise the statements of financial position as of, and the related statements of activities and cash flows for the years then ended, and the related notes to the financial statements. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 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 auditors consider 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.

4 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The Give An Hour Nonprofit Corporation as of, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As described in Note 10, the 2013 financial statements have been restated to properly include certain contributions promised during the year ended June 30, Our opinion is not modified with respect to this matter. Other Matter Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The schedules of functional expenses on pages 13 and 14 are presented for purposes of additional analysis and are 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 audits 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. HAN GROUP LLC McLean, Virginia October 8, 2014

5 Statements of Financial Position 2013 (Restated 2014 Note 10) Assets Cash and cash equivalents $ 1,275,115 $ 529,769 Grants and contributions receivable 193, ,095 Prepaid expenses 54,674 9,331 Investments 4,169 - Website, net 2,501 5,834 Total assets $ 1,530,105 $ 957,029 Liabilities and Net Assets Liabilities Accounts payable and accrued expenses $ 52,458 $ 150,739 Accrued salaries and vacation 107,102 78,910 Total liabilities 159, ,649 Net Assets Unrestricted 709,801 41,147 Temporarily restricted 660, ,233 Total net assets 1,370, ,380 Total liabilities and net assets $ 1,530,105 $ 957,029 See accompanying notes. 3

6 Statement of Activities Year Ended June 30, 2014 Temporarily Unrestricted Restricted Total Revenue and Support Grants and contributions $ 907,678 $ 1,127,777 $ 2,035,455 Donated services and facilities 1,454,225-1,454,225 Special event 398, ,594 Investment income 1,073-1,073 Release from purpose restrictions 1,138,266 (1,138,266) - Release from time restrictions 15,000 (15,000) - Total revenue and support 3,914,836 (25,489) 3,889,347 Expenses Program services: Mental health services 3,106,909-3,106,909 Supporting services: Management and general 51,569-51,569 Fundraising 87,704-87,704 Total supporting services 139, ,273 Total expenses 3,246,182-3,246,182 Changes in Net Assets 668,654 (25,489) 643,165 Net Assets, beginning of year 41, , ,380 Net Assets, end of year $ 709,801 $ 660,744 $ 1,370,545 See accompanying notes. 4

7 Statement of Activities Year Ended June 30, 2013 (Restated Note 10) Temporarily Unrestricted Restricted Total Revenue and Support Grants and contributions $ 274,273 $ 563,500 $ 837,773 Donated services 1,058,707-1,058,707 Special event 390, ,339 Investment income Release from purpose restrictions 1,263,184 (1,263,184) - Total revenue and support 2,987,434 (699,684) 2,287,750 Expenses Program services: Mental health services 2,576,272-2,576,272 Supporting services: Management and general 68,940-68,940 Fundraising 317, ,395 Total supporting services 386, ,335 Total expenses 2,962,607-2,962,607 Changes in Net Assets 24,827 (699,684) (674,857) Net Assets, beginning of year 16,320 1,385,917 1,402,237 Net Assets, end of year $ 41,147 $ 686,233 $ 727,380 See accompanying notes. 5

8 Statements of Cash Flows Years Ended 2013 (Restated 2014 Note 10) Cash Flows from Operating Activities Change in net assets $ 643,165 $ (674,857) Adjustments to reconcile change in net assets to net cash provided by (used in) operating activities: Amortization 3,333 3,333 Unrealized gain on investments (130) - Fair value of stock donations received (4,039) - Change in operating assets and liabilities: Decrease in grants and contributions receivable 218, ,159 (Increase) decrease in prepaid expenses (45,343) 15,075 (Decrease) increase in accounts payable and accrued expenses (98,281) 143,400 Increase in accrued salaries and vacation 28, Decrease in grants payable - (68,000) Net cash provided by (used in) operating activities 745,346 (18,246) Net Increase (Decrease) in Cash and Cash Equivalents 745,346 (18,246) Cash and Cash Equivalents, beginning of year 529, ,015 Cash and Cash Equivalents, end of year $ 1,275,115 $ 529,769 See accompanying notes. 6

9 Notes to Financial Statements 1. Nature of Operations The Give An Hour Nonprofit Corporation (the Organization) was incorporated in the state of Maryland on September 26, The Organization s mission is to develop national networks of volunteers capable of responding to both acute and chronic conditions that arise within society. The Organization s first target population is the U.S. troops and families who are being affected by the current military conflicts in Afghanistan and Iraq. The Organization asks mental health professionals nationwide to donate an hour of their time each week to provide free mental health services to military personnel and their families. As of June 30, 2014, the Organization had over 7,000 providers offering to donate their time to provide direct counseling to returning troops and their families, education and outreach efforts, and support services to community and mental health organizations working with military families. The Organization funds its program and supporting services primarily through foundation, corporate and individual grants and contributions. 2. Summary of Significant Accounting Policies Basis of Accounting and Presentation The Organization s financial statements are prepared on the accrual basis of accounting and in accordance with accounting principles generally accepted in the United States of America. Cash and Cash Equivalents For the purpose of the statements of cash flows, the Organization considers as cash equivalents all highly liquid investments, which can be converted into known amounts of cash and have a maturity period of ninety days or less at the time of purchase. Investments Investments are stated at fair value, based on quoted market prices. All realized and unrealized gains and losses are included in investment income in the accompanying statements of activities. Website Direct costs incurred by the Organization during the website development application stage are capitalized and amortized over an estimated useful life of three years. The total cost of website capitalized was $10,000 with accumulated amortization of $7,499 and $4,166 at June 30, 2014 and 2013, respectively. 7

10 Notes to Financial Statements 2. Summary of Significant Accounting Policies (continued) Classification of Net Assets Unrestricted net assets represent funds that are not subject to donor-imposed stipulations and are available for support of the Organization s operations. Temporarily restricted net assets represent funds subject to donor-imposed restrictions that are met either by actions of the Organization or the passage of time. Revenue Recognition Unconditional grants and contributions are recognized as revenue when received or promised and are reported as temporarily restricted support if they are received with donor stipulations that limit the use of donated assets. When a donor restriction expires, 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 in the statements of activities as net assets released from restrictions. Temporarily restricted net assets are reported as unrestricted net assets if the restrictions are met in the same period received. Certain contributions of donated services are recorded at their fair values in the period received. Revenue from all other sources is recognized when earned. Donated Services and Facilities Donated services are recognized as contributions in accordance with Financial Accounting Standards Board Accounting Standards Codification (ASC) , Accounting for Contributed Services, if the services (a) create or enhance nonfinancial assets or (b) require specialized skills, are performed by people with those skills, and would otherwise be purchased by the Organization. The Organization received $1,327,438 and $1,034,571 of donated mental health services and $118,987 and $24,136 of donated other professional and consulting services during the years ended, respectively. In addition, the Organization received donated facilities for a special event valued at $7,800 during the year ended June 30, A substantial number of volunteers have donated significant amounts of time to the Organization and its programs and activities such as donated time on education and other services which are not reflected in the accompanying financial statements as these services do not meet the criteria for recognition as donated services. 8

11 Notes to Financial Statements 2. Summary of Significant Accounting Policies (continued) Donated Stock The Organization received stocks as contribution from one contributor with the objective to use proceeds from sales of these investments for its program and supporting services. The Organization records investment contributions received at fair value at grant date. Investments with donor-imposed restrictions related to purpose or time are classified as temporarily restricted in the statements of financial position. Fair value for publicly traded securities is based upon the closing market trading price for such security. Advertising Advertising costs are expensed as incurred. Advertising expense was $29,036 and $45,317 for the years ended, respectively. Functional Allocation of Expenses The costs of providing various programs and other activities have been summarized on a functional basis in the accompanying statements of activities. Accordingly, certain costs have been allocated among the program and supporting services benefited. Certain management and staff expenses have been allocated to program and supporting services on the basis of time spent. 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 certain amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. 3. Concentrations Financial instruments that potentially subject the Organization to significant credit risk consist of cash and cash equivalents. The Organization maintains cash and cash equivalents with financial institutions that may, from time to time, exceed the Federal Deposit Insurance Corporation (FDIC) insured limit of $250,000 per depositor per institution. The Organization monitors the creditworthiness of these institutions and has not experienced any losses on its cash and cash equivalents. 9

12 Notes to Financial Statements 4. Grants and Contributions Receivable Grants and contributions receivable are comprised of unconditional promises to give and are receivable as follows at June 30, 2014: Receivable in less than one year $ 178,646 Receivable in one to five years 15,000 Total grants and contributions receivable $ 193,646 The Organization has not recorded an allowance for uncollectible accounts, as management believes all amounts are fully collectible. Additionally, a discount for pledges due in over one year has not been recorded due to immateriality. 5. Investments At June 30, 2014, investments consisted of mutual funds. There were no investments at June 30, Investment income consists of the following for the years ended June 30: Interest and dividends $ 943 $ 931 Unrealized gain Total investment income $ 1,073 $ Fair Value Measurements The three levels of the fair value hierarchy for recurring fair value measurements are prioritized based on the inputs to valuation techniques used to measure fair value and are as follows: Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Organization has the ability to access. 10

13 Notes to Financial Statements 6. Fair Value Measurements (continued) Level 2: Inputs to the valuation methodology include (1) quoted prices for similar assets or liabilities in active markets; (2) quoted prices for identical or similar assets or liabilities in inactive markets; (3) inputs other than quoted prices that are observable for the asset or liability; and (4) inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Investments at June 30, 2014 are measured under fair value measurements hierarchy level Temporarily Restricted Net Assets Temporarily restricted net assets consist of the following at June 30: Retreat Coverage $ 204,425 $ 289,741 Got Your 6 151,099 50,000 Wins 4 Warriors 125,932 - DC Outreach 65,278 - Community Blueprint Demonstration 53, ,558 New York Outreach 22,603 75,000 Guard 8,025 - Student Veterans of America - 2,934 Time restricted 30,000 45, Income Taxes Total temporarily restricted net assets $ 660,744 $ 686,233 Under Section 501(c)(3) of the Internal Revenue Code, the Organization is exempt from the payment of taxes on income other than net unrelated business income. No tax expense was recorded in the accompanying financial statements for the years ended as there was no unrelated business income. 11

14 Notes to Financial Statements 8. Income Taxes (continued) ASC , Income Taxes, provides guidance for reporting uncertainty in income taxes. The Organization has performed an evaluation of uncertain tax positions for the years ended June 30, 2014 and 2013, and determined that no material uncertain tax positions qualify for either recognition or disclosure in the financial statements. Income tax and information returns for the years ended June 30, 2011 or later remain subject to examination by various taxing authorities. 9. Subsequent Events In preparing these financial statements, the Organization has evaluated events and transactions for potential recognition or disclosure through October 8, 2014, the date the financial statements were available to be issued. 10. Restatement During the year ended June 30, 2014, the Organization determined that certain contributions that were promised during the year ended June 30, 2013 were not properly recorded as 2013 contribution revenue. Accordingly, the financial statements presented for the year ended June 30, 2013 have been restated to include these contribution revenues. The effects on the June 30, 2013 financial statements were to increase grants and contributions receivable and revenues by $95,000 and increase temporarily restricted net assets by $95,000. The restatement had no effect on the cash provided by or used in operating activities. 12

15 SUPPLEMENTAL INFORMATION

16 Schedule of Functional Expenses Year Ended June 30, 2014 Program Services Supporting Services Management and General Fundraising Total Donated mental health services $ 1,327,438 $ - $ - $ 1,327,438 Salaries and related expenses 1,117,909 32,614 38,724 1,189,247 Consulting fees 238, ,936 Special event 100,674-43, ,155 Promotional expenses 65, ,704 Special project Community Blue Print 64, ,701 Travel 49,230 5,272 2,153 56,655 Professional services 48, ,104 Grant expenses 30, ,000 Website 23, ,846 Supplies 7,844 2, ,055 Telephone and communications 9, ,080 Printing and reproduction 8, ,603 Insurance 7, ,137 Postage and delivery 5, ,247 Facility expenses 1,105 5,021-6,126 Amortization expense - 3,333-3,333 Meetings and conferences 1, ,324 Other expenses 543 1,063 1,885 3,491 Total Expenses $ 3,106,909 $ 51,569 $ 87,704 $ 3,246,182 13

17 Schedule of Functional Expenses Year Ended June 30, 2013 Program Services Supporting Services Management and General Fundraising Total Donated mental health services $ 1,034,571 $ - $ - $ 1,034,571 Salaries and related expenses 976,318 41,059 61,203 1,078,580 Consulting fees 176,212 2, ,852 Special event , ,405 Promotional expenses 81, ,083 83,280 Special project Community Blue Print 158, ,333 Travel 57,389 1,533 10,464 69,386 Professional services 5,788 7,531-13,319 Website 36, ,199 Supplies 4,626 7, ,962 Telephone and communications 5, ,899 Printing and reproduction 5, ,789 8,605 Insurance 7, ,393 Postage and delivery 4, ,692 Facility expenses 5,652 2,783-8,435 Amortization expense - 3,333-3,333 Meetings and conferences ,149 Provider and staff development 9, ,596 Public relations 5, ,850 Other expenses ,655 2,768 Total Expenses $ 2,576,272 $ 68,940 $ 317,395 $ 2,962,607 14