Caring for Military Families: The Elizabeth Dole Foundation

Transcription

1 Caring for Military Families: The Elizabeth Dole Foundation Financial Statements For The Year Ended December 31, 2013 And For The Period From February 23, 2012 (Date Of Inception) To December 31, 2012

2 Table Of Contents For The Year Ended December 31, 2013 And For The Period From February 23, 2012 (Date Of Inception) To December 31, 2012 Independent Auditor s Report Financial Statements Statements Of Financial Position... 3 Statements Of Activities... 4 Statements Of Cash Flows... 5 Notes To Financial Statements

3 Independent Auditor s Report To The Board Of Directors Caring for Military Families: The Elizabeth Dole Foundation 600 New Hampshire Avenue, NW Washington, DC We have audited the accompanying financial statements of Caring for Military Families: The Elizabeth Dole Foundation (a nonprofit organization), which comprise the statements of financial position as of December 31, 2013 and 2012, and the related statements of activities and cash flows for the year ended December 31, 2013 and for the period from February 23, 2012 (date of inception) to December 31, 2012, 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 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 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 Caring for Military Families: The Elizabeth Dole Foundation as of December 31, 2013 and 2012, and the results of its operations and its cash flows for the year ended December 31, 2013 and for the period from February 23, 2012 (date of inception) to December 31, 2012 in accordance with accounting principles generally accepted in the United States of America. Greater Washington, D.C. Northern Virginia Baltimore 1803 Research Boulevard Suite 215 Rockville, Maryland Members: American Institute of Certified Public Accountants Maryland Association of Certified Public Accountants Greater Washington Society of Certified Public Accountants

4 Independent Auditor s Report Page 2 Concentration Of Revenue As discussed in Note 2 to the financial statements, Caring for Military Families: The Elizabeth Dole Foundation received approximately 77% of its revenue from one contributor. Any significant reduction in funding from contributors may impact the Foundation s ability to carry out its program and other activities. Our opinion is not modified with respect to that matter. Hertzbach & Company, P.A. Rockville, Maryland August 7, 2014

5 F I N A N C I A L S T A T E M E N T S

6 Statements Of Financial Position December 31, ASSETS CURRENT ASSETS Cash $ 1,216,281 $ 47,650 Contributions Receivable 25,000 - Prepaid Expenses And Other Current Assets 12,250 - Related Party Receivables - 765,000 Total Current Assets 1,253, ,650 PROPERTY AND EQUIPMENT, NET Website Design And Development 40,300 25,500 Less: Accumulated Depreciation 12, Total Property And Equipment, Net 27,392 24,792 TOTAL ASSETS $ 1,280,923 $ 837,442 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts Payable $ 318 $ 18,990 Accrued Expenses 8,788 - Total Current Liabilities 9,106 18,990 NET ASSETS Unrestricted 1,271, ,452 TOTAL LIABILITIES AND NET ASSETS $ 1,280,923 $ 837,442 See Independent Auditor s Report And Accompanying Notes To The Financial Statements 3

7 Statements Of Activities For The Period From February 23, 2012 For The Year Ended (Date Of Inception) To December 31, 2013 December 31, 2012 Revenue Grants And Contributions $ 1,818,856 $ 1,296,721 Interest Income 1,272 - Total Revenue 1,820,128 1,296,721 Expenses Program Services: Awareness 190,490 6,118 Caregiver Fellows 31,950 74,224 Innovation Grants 115,000 29,750 Legal Support Resources 68,544 - Military Caregivers Week 87,883 - RAND Study 600, ,718 Total Program Services 1,093, ,810 Supporting Services: General And Administrative 194, ,491 Fundraising 77,964 63,968 Total Supporting Services 272, ,459 Total Expenses 1,366, ,269 Change In Unrestricted Net Assets 453, ,452 Unrestricted Net Assets, Beginning of Period 818,452 - Unrestricted Net Assets, End of Period $ 1,271,817 $ 818,452 See Independent Auditor s Report And Accompanying Notes To The Financial Statements 4

8 Statements Of Cash Flows For The Period From February 23, 2012 For The Year Ended (Date Of Inception) To December 31, 2013 December 31, 2012 CASH FLOWS FROM OPERATING ACTIVITIES Change In Unrestricted Net Assets $ 453,365 $ 818,452 Adjustments To Reconcile Change In Unrestricted Net Assets To Net Cash Provided By Operating Activities Depreciation 12, (Increase) Decrease In Operating Assets: Contributions Receivable (25,000) - Prepaid Expenses And Other Current Assets (12,250) - Related Party Receivables 765,000 (765,000) Increase (Decrease) In Operating Liabilities: Accounts Payable (18,672) 18,990 Accrued Expenses 8,788 - Net Cash Provided By Operating Activities 1,183,431 73,150 CASH FLOWS FROM INVESTING ACTIVITIES Purchases Of Property And Equipment (14,800) (25,500) Net Cash Used In Investing Activities (14,800) (25,500) NET INCREASE IN CASH 1,168,631 47,650 Cash, Beginning of Period 47,650 - Cash, End of Period $ 1,216,281 $ 47,650 See Independent Auditor s Report And Accompanying Notes To The Financial Statements 5

9 Notes To Financial Statements For The Year Ended December 31, 2013 And For The Period From February 23, 2012 (Date Of Inception) To December 31, NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NATURE OF ORGANIZATION Caring for Military Families: The Elizabeth Dole Foundation (the Foundation) was formed on February 23, 2012 as a nonprofit organization incorporated in Virginia. The purpose of the Foundation is to uplift American military caregivers by strengthening the services afforded to them through innovation, evidence-based research, and collaboration. METHOD OF ACCOUNTING The Foundation s financial statements are prepared on the accrual method of accounting, which recognizes income when it is earned and expenses when they are incurred. In compliance with financial accounting standards for not-for-profit organizations, the Foundation reports its financial position and activities according to three classes of net assets: unrestricted, temporarily restricted, and permanently restricted. 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 revenue and expenses during the reporting period. Actual results could differ from those estimates. CASH EQUIVALENTS For the purpose of the statements of cash flows, the Foundation considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of December 31, 2013 and 2012, the Foundation had no cash equivalents. RECEIVABLES Receivables are reported at the amount management expects to collect from outstanding principal balances. In reviewing receivables, management considers the knowledge of the accounts and historical activity in establishing an allowance for doubtful accounts. Management is of the opinion that all receivables are fully collectible and therefore no allowance for doubtful accounts is provided. PROPERTY AND EQUIPMENT Property and equipment are recorded at cost, or if donated, the assets are capitalized at the estimated fair value at the date of receipt. Depreciation is calculated using the straight-line method over the estimated useful lives of three years. The Foundation capitalizes all expenditures for property and equipment over $2,500. When assets are sold or otherwise disposed of, the asset and related accumulated depreciation and amortization are removed from the accounts, and any remaining gain or loss is included in the statement of activities. REVENUE RECOGNITION Contributions and grants are recognized as revenues when they are received or unconditionally promised (pledged). The Foundation reports gifts of cash and other assets as temporarily restricted support if they are received with donor stipulations that limit the use of the donated assets as to a particular purpose or to future periods. When a donor restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the accompanying statements of activities as net assets released from restrictions. Restrictions expire when a stipulated time restriction ends or a purpose restriction is accomplished. FUNCTIONAL ALLOCATION OF EXPENSES The costs of providing various programs and supporting services have been summarized on a functional basis in the accompanying statements of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited, on the basis of time records, support, equally, or on estimates made by the Foundation's management. See Independent Auditor s Report 6

10 Notes To Financial Statements (Continued) For The Year Ended December 31, 2013 And For The Period From February 23, 2012 (Date Of Inception) To December 31, NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) INCOME TAXES The Foundation is a non-profit organization and is exempt from the payment of taxes on income other than net unrelated business income under Section 501(c)(3) of the Internal Revenue Code. The Foundation received its exemption letter from the IRS on December 5, No provision for income taxes is required for the year ended December 31, 2013 and for the period from February 23, 2012 (date of inception) to December 31, 2012, as the Foundation had no significant net unrelated business income. In accordance with FASB Accounting Standards Codification (ASC) 740, Income Taxes, which clarified the accounting for uncertainty in income taxes, the Foundation has concluded that there are no significant uncertain tax positions requiring recognition in the financial statements. No interest or penalties have been recorded as a result of tax uncertainties. The tax years December 31, 2012 through December 31, 2013 remain open to examination by tax jurisdictions to which the Foundation is subject. 2. CONCENTRATION OF CREDIT RISK FINANCIAL INSTITUTIONS The Foundation maintains cash balances at various financial institutions. These balances are secured by the Federal Deposit Insurance Corporation (FDIC). At December 31, 2013, cash balances exceeded the federally insured amounts by $789,642. MAJOR CONTRIBUTORS During the period ended December 31, 2012, the Foundation received $1,000,000 of support from one contributor, representing approximately 77% of its total revenue. The Foundation relies on the support of contributors to ensure the continuing operations of the organization. Any significant reduction in funding from contributors may impact the Foundation s ability to carry out its program and other activities. During the year ended December 31, 2013, no one contributor exceeded 33% of total revenue. 3. COMMITMENTS AND CONTINGENCIES OPERATING LEASE On September 1, 2012, the Foundation entered into an agreement to rent office space in Washington, DC. This lease was entered into with an unrelated third-party. The lease agreement calls for monthly rent of $1,900. The lease is effective on a month-to-month basis and may be terminated by either party with thirty days written notice. 4. PROGRAM SERVICES AWARENESS PROGRAM The Awareness program was created to support military and veteran caregiver needs by launching a national multi-channel awareness campaign that includes Military and Veterans Caregivers Week, innovative events, media appearances and partnerships, and web and social media efforts. CAREGIVER FELLOWS PROGRAM The Caregiver Fellows Program was created to engage active military and veteran caregivers directly in the Foundation's initiatives, provide input to the RAND study, allowing them an opportunity to advise other Foundation programs and to play a leading role in raising awareness. INNOVATION GRANTS The Foundation created the Innovation Grants program to award grants in 2013 to three top-rated nonprofits across the country that are addressing significant, clearly recognized, unmet, military and veteran caregiver needs. See Independent Auditor s Report 7

11 Notes To Financial Statements (Continued) For The Year Ended December 31, 2013 And For The Period From February 23, 2012 (Date Of Inception) To December 31, PROGRAM SERVICES (CONTINUED) LEGAL SUPPORT RESOURCES Legal Support Resources, also known as Lawyers for Heroes, is a collaboration between the American Bar Association, Public Counsel, and the Military Officers Association of America coordinated and spearheaded by the Foundation to provide free legal assistance to caregivers and their families. MILITARY CAREGIVERS WEEK Military and Veteran s Caregiver Week took place in March Passed by Congress, this week was dedicated to support and raise awareness for the needs of our nation s military and veteran caregivers. RAND STUDY The Foundation commissioned the RAND Corporation to provide the first-ever comprehensive evidence based research on military and veteran caregiver needs. This research will point to a national strategy engaging the public, private and nonprofit sectors in RELATED PARTY TRANSACTIONS During the period ended December 31, 2012, a nonprofit organization contributed $1,000,000 to the Foundation. As of December 31, 2012, a balance of $765,000 was due from the nonprofit organization. The President of the nonprofit organization is the President of the Foundation. This balance was paid in full during the year ended December 31, During the year ended December 31, 2013 and the period ended December 31, 2012, the President of the Foundation paid $-0- and $104,000 of expenses on behalf of the Foundation, respectively. 6. SUBSEQUENT EVENTS Management has evaluated subsequent events and transactions for potential recognition or disclosure through the independent auditor's report date, the date the financial statements were available to be issued. There were no events that required recognition or disclosure in the financial statements. See Independent Auditor s Report 8