New Image Youth Center, Inc. (A Not-for-Profit Corporation)

Transcription

1 New Image Youth Center, Inc. FINANCIAL STATEMENTS Years Ended December 31, 2014 and 2013

2 C O N T E N T S Page Number(s) Independent Auditor s Report on the Financial Statements 1 FINANCIAL STATEMENTS Statements of Financial Position 2 Statements of Activities 3-4 Statements of Cash Flows 5 Statements of Functional Expenses 6-7 Notes to Financial Statements 8-13

3 To the Board of Directors New Image Youth Center, Inc. Orlando, Florida Report on the Financial Statements Brehon E. Roberts, Certified Public Accountant Independent Auditor s Report I have audited the accompanying statements of financial position of New Image Youth Center, Inc. as of December 31, 2014 and 2013, and the related statements of activities, cash flows, and functional expenses 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 My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that I plan and perform my audits to obtain reasonable assurance about whether the financial statements are free of 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, I 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. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Opinion In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of New Image Youth Center, 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 conformity with accounting principles generally accepted in the United States of America. Certified Public Accountant Casselberry, Florida November 10 th, 2015 Page 1

4 New Image Youth Center, Inc. STATEMENTS OF FINANCIAL POSITION December 31, ASSETS Cash $ 78,875 $ 41,936 Grants Receivable 1,000 22,117 Furniushings, fixtures and equipment 17,836 11,702 TOTAL ASSETS $ 97,711 $ 75,755 Accounts payable $ - $ 1,202 Accrued expenses COMMITMENTS AND CONTINGENCIES LIABILITIES AND NET ASSETS TOTAL LIABILITIES 733 1,676 NET ASSETS Unrestricted 81,978 74,079 Temporarily restricted 15,000 - Permanenantly restricted - - TOTAL NET ASSETS 96,978 74,079 TOTAL LIABILITIES AND NET ASSETS $ 97,711 $ 75,755 The accompanying notes are an integral part of the financial statements

5 New Image Youth Center, Inc. STATEMENT OF ACTIVITIES For the Year Ended December 31, 2014 Temporarily Unrestricted Restricted Total REVENUES AND PUBLIC SUPPORT Community Foundation Grants $ 72,183 $ - $ 72,183 Contributions - Gifts in kind 44,612-44,612 Corporate and individual contributions 63,596 31,178 94,774 TOTAL REVENUES AND PUBLIC SUPPORT 180,391 31, ,569 NET ASSETS RELEASED FROM RESTRICTIONS Expiration of time and purpose restrictions 16,178 (16,178) - TOTAL REVENUES AND PUBLIC SUPPORT 196,569 15, ,569 EXPENSES Program services Before and after school program 72,794-72,794 Summer Camp 56,087-56,087 Healthy living 17,386-17,386 Student scholorship 4,169-4,169 Total program services 150, ,436 Management and general 19,859-19,859 Fundraising 18,375-18,375 TOTAL EXPENSES 188, ,670 CHANGE IN NET ASSETS 7,899 15,000 22,899 NET ASSETS - BEGINNING OF YEAR 74,079-74,079 NET ASSETS - END OF YEAR $ 81,978 $ 15,000 $ 96,978 The accompanying notes are an integral part of the financial statements

6 New Image Youth Center, Inc. STATEMENT OF ACTIVITIES For the Year Ended December 31, 2013 Temporarily Unrestricted Restricted Total REVENUES AND PUBLIC SUPPORT Community Foundation Grants and other $ 83,135 $ 24,107 $ 107,242 Contributions - Gifts in kind 36,000-36,000 Corporate and individual contributions 56,682-56,682 TOTAL REVENUES AND PUBLIC SUPPORT 175,817 24, ,924 NET ASSETS RELEASED FROM RESTRICTIONS Expiration of time and purpose restrictions 24,107 (24,107) - TOTAL REVENUES AND PUBLIC SUPPORT 199, ,924 EXPENSES Program services Before and after school program 72,739-72,739 Summer Camp 40,783-40,783 Healthy living 29,555-29,555 Student scholorship 5,224-5,224 Total program services 148, ,301 Management and general Fundraising 31,789-31,789 TOTAL EXPENSES 180, ,090 CHANGE IN NET ASSETS 19,834-19,834 NET ASSETS - BEGINNING OF YEAR 54,245-54,245 NET ASSETS - END OF YEAR $ 74,079 $ - $ 74,079 The accompanying notes are an integral part of the financial statements

7 New Image Youth Center, Inc. STATEMENTS OF CASH FLOWS For the Year Ended December 31, OPERATING ACTIVITIES Change in net assets $ 22,899 $ 19,834 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation and amortization 4,811 5,058 Changes in operating assets and liabilities: Grants receivable 21,117 (10,117) Accounts payable (1,202) (201) Accrued expenses 259 (173) NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 47,884 14,401 INVESTING ACTIVITIES Acquisition of property and equipment (10,945) (636) NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (10,945) (636) NET INCREASE (DECREASE) IN CASH 36,939 13,765 CASH AT BEGINNING OF YEAR 41,936 28,171 CASH AT END OF YEAR $ 78,875 $ 41,936 The accompanying notes are an integral part of the financial statements

8 Before and Total Manage- After School Summer Healthy Scholorship Program ment and Fund Program Camp Living Program Services General Raising Total Salaries, wages and contractual services 32,824 33,092 7,143 1,800 74,859 9,360 9,612 93,831 Occupancy expenses 18,885 13,192 5,805-37,882 2,236 1,935 42,053 Student activities and transportation 16,035 7,015 4, ,839 1, ,056 Tutoring and other professional fees ,013 3,825 7,838 Insurance 1, , ,151 Depreciation and amortization 2,887 1, , ,811 Scholorships ,018 2, ,018 Other operating expenses ,772 2,264 5,912 TOTAL EXPENSES 72,794 56,087 17,386 4, ,436 19,859 18, ,670 New Image Youth Center, Inc. STATEMENT OF FUNTIONAL EXPENSES For the Year Ended December 31, 2014 The accompanying notes are an integral part of the financial statements

9 Before and Total Manage- After School Summer Healthy Scholorship Program ment and Fund Program Camp Living Program Services General Raising Total Salaries, wages and contractual services 40,130 24,048 15,711 1,800 81,689 5,400 5,085 92,174 Occupancy expenses 12,816 9,550 8,742-31,108 1,769 1,548 34,425 Student activities and transportation 15,163 4,558 5,102-24, ,720 Tutoring and other professional fees ,123 2,184 12,494 Insurance 1, , ,012 Depreciation and amortization 3,035 2, , ,058 Scholorships ,424 3, ,424 Other operating expenses ,612 3,171 4,783 - TOTAL EXPENSES 72,739 40,783 29,555 5, ,301 19,801 11, ,090 New Image Youth Center, Inc. STATEMENT OF FUNTIONAL EXPENSES For the Year Ended December 31, 2013 The accompanying notes are an integral part of the financial statements

10 New Image Youth Center, Inc NOTES TO FINANCIAL STATEMENTS Years Ended December 31, 2014 and 2013 NOTE 1 - NATURE OF ORGANIZATION AND OPERATIONS New Image Youth Center, Inc. (New Image or the Organization) is a not-for-profit corporation organized under the laws of the state of Florida on March 8, 2005 for the purpose of providing after school and summer programs for underprivileged youths in the greater Orlando area. New Image offers, among other things, tutoring services, communities outreach programs and special educational events. The Organizations mission is to help inner city youth obtain a new image through positive and motivating learning experiences and building character through the promotion of education and recreation. The organization offers year-round programming in the following three capacities described as follows: Academic Support Tutoring Staff and volunteers provide afterschool homework help during the academic year, and academic activities are included in the summer program to maintain progress. College Preparation In addition to national collegiate entrance exam tutoring, New Image provides assistance with the college application process, campus tours, and attendance at workshops and college fairs offered locally. Social Development Mentoring New Image students in need of additional support are matched with adult mentors to provide additional one-to-one guidance. Life Skills All students receive instruction at least twice a week in topics such as public speaking, service-learning, bullying prevention, self-esteem, and peer pressure. Health and Wellness Physical Activity New Image incorporates dance, sporting activities, and other forms of exercise as a key program component. A partnership with Orlando City Soccer has given students the opportunity to participate in training clinics with team members, and a walking club meets on a weekly basis. Page 8

11 NOTE 1 - NATURE OF ORGANIZATION AND OPERATIONS (Continued) General and administrative activities include the functions necessary to provide support the organization s program activities. General and administrative activities include those that provide governance (Board of Directors), oversight, business management, financial recordkeeping, budgeting, legal services, human resource management, and similar activities that ensure an adequate working environment and an equitable employment program. Fundraising activities include publicizing and conducting fundraising campaigns; maintaining donor lists; conducting special fundraising events; and other activities involved with soliciting contributions from corporations, foundations, individuals, and others. The Organization is governed by a volunteer board of directors. NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES Accounting Principles A not-for-profit 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. Accordingly, net assets of the Organization and changes therein are classified and reported as follows: Unrestricted net assets - Net assets that are not subject to donor imposed stipulations, but may be designated for specific purposes by action of the Board of Directors. Temporarily restricted net assets - Net assets subject to donor imposed stipulations that may or will be met either by actions of the Organization and or the passage of time. When the restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in th e statements of activities as net assets released from restrictions. Permanently restricted net assets Net assets subject to donor imposed stipulations that they be permanently maintained by the Organization. The accompanying financial statements have been prepared on the accrual basis of accounting. Cash Equivalents For purposes of the statements of cash flows, the Organization considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. The Organization did not have any cash equivalents as of December 31, 2014 and Page 9

12 NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Continued) Grants receivable and revenues Grants receivable are due from federal, state and local governmental agencies and are stated at net realizable value. The Organization receives various grants from federal, state, and local governmental agencies for program and supporting services. These grants are generally on a cost reimbursement basis or when required services are performed. Revenues from grants are recognized in the statements of activities when expenses are made for the purpose specified. Grant funds that have been received but have not yet been expended for the purposes specified are reported as grant advances. By terms of the Organization's grants, certain funding agencies reserve the right to examine records relating to cost reimbursements. In the event there is a determination of non-qualifying expenditures for which a reimbursement has been made, the funding agency may demand a refund for the appropriate amount. Management of the Organization does not anticipate adjustments to be made for grants. Accordingly, no provision for liability has been made in the accompanying financial statements. Property and Equipment Property and equipment are recorded at cost, if purchased or at fair market value on the date received, if donated. Improvements and betterments are capitalized while repair and maintenance expenditures are expensed. Depreciation of property and equipment is computed using the straight-line method of accounting over the estimated useful lives of the assets, which range from 5 to 7 years. The carrying value of property and equipment is reviewed for impairment whenever events or changes in circumstances indicate such value may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. Contributed services Contributed services are reported at fair value in the financial statements for voluntary donations of services when those services (1) create or enhance nonfinancial assets or (2) require specialized skills provided by individuals possessing those skills and are services which would be typically purchased if not provided by donation. The Organization recorded $36,000 for the professional services contributed by its Executive Director for the years ended December 31, 2014 and In addition, many individuals volunteer time for administrative and program functions. The value of the volunteered time for these functions is not included in the financial statements because it does not meet the criteria for recognition. Page 10

13 NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Continued) Expense Recognition and Allocation The cost of providing the organization s programs and other activities is summarized on a functional basis in the statement of activities and statement of functional expenses. Expenses that can be identified with a specific program or support service are charged directly to that program or support service. Costs common to multiple functions have been allocated among the various functions benefited. General and administrative expenses include those costs that are not directly identifiable with any specific program, but which provide for the overall support and direction of the organization. Fundraising costs are expensed as incurred, even though they may result in contributions received in future years. The organization generally does not conduct its fundraising activities in conjunction with its other activities. In the few cases in which it does, such as when the annual report or donor acknowledgements contain requests for contributions, joint costs have been allocated between fundraising and management and general expenses in accordance with standards for accounting for costs of activities that include fundraising. Additionally, advertising costs are expensed as incurred. Income Taxes The Organization is exempt from federal income taxes under Section 501 (c)(3) of the Internal Revenue Code and from state income taxes under similar provisions of the Florida Statutes. The Organization follows accounting standards relating to accounting for uncertainty in income taxes. The Organization assessed whether there were any uncertain tax positions which may give rise to income tax liabilities and determined that there were no such matters requiring recognition in the accompanying financial statements. The Organization files tax returns in the U.S. federal jurisdiction. Generally, the Organization is no longer subject to U.S. federal income tax examinations by taxing authorities for years before December 31, 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, liabilities. and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and support, and expenses during the reporting period. Actual results could differ from those estimates. Page 11

14 NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Continued) Fair Value of Financial Instruments The carrying values of the Organization s financial instruments approximate their fair values. Recent accounting pronouncements The Financial Accounting Standards Board and other entities issued new or modifications to, or interpretations of, existing accounting guidance during fiscal year The Organization has considered the new guidance, and other than as disclosed in these notes to the financial statements, does not believe that any other new or modified guidance will have a material impact on the Organization's reported financial position or activities in the near term. Subsequent events Management has assessed subsequent events through November 10, 2015, the date the financial statements were available to be issued. NOTE 3 - GRANTS RECEIVABLE The Organization was due approximately $1,000 and $22,000 as of December 31, 2014 and 2013, respectively, for services rendered under certain grant agreements. NOTE 4 - PROPERTY AND EQUIPMENT Property and equipment consists of the following at December 31: Computers and office equipment $ 29,453 $ 20,395 Furniture and fixtures 7,787 7,787 Passenger vehicles 25,947 28,248 63,187 56,430 Less: accumulated depreciation (43,537) (44,728) Property and equipment, net $ 19,650 $ 11,702 NOTE 5 - LEASE AGREEMENT AND RENTS The Organization entered into a lease agreement dated March 1, 2014 for an initial term of 24 months. The lease terms call for, among other things, monthly lease payments of $750. The future minimum lease payments under the lease are $9,000 and $1,500 for the fiscal years ending December 31, 2015 and 2016, respectively. The Organization also rents space for its educational classrooms, kitchen facilities, recreational areas, garden and office space. These rentals are paid on a month-tomonth basis and have no underlying contractual lease obligations. Total rent expense was approximately $31,000 and $25,000 for the fiscal years ended December 31, 2014 and 2013, respectively. Page 12

15 NOTE 6 - CONCENTRATIONS OF RISK Amounts held in financial institutions occasionally are in excess of the Federal Deposit Insurance Corporation and Securities Investor Protection Corporation limits. The organization deposits its cash with high quality financial institutions, and management believes the organization is not exposed to significant credit risk on those amounts. A significant portion, approximately 40 percent, of the organization s annual funding comes from the Community Foundation of Central Florida. The Organization is contracted with the Community Foundation of Central Florida through December 31, The majority of the organization s contributions and grants are received from corporations, foundations, and individuals located in the greater Orlando metropolitan area and from agencies of the state of Florida. As such, the organization s ability to generate resources via contributions and grants is dependent upon the economic health of that area and of the state of Florida. An economic downturn could cause a decrease in contributions and grants that coincides with an increase in demand for the organization s services. Page 13