The Peninsula Bridge Program - A Review

Transcription

1 F'INANCIAL STATEMENTS FOR THE YEATI. ENDED DECEMBER

2 JONES ACCOUNTANCY DRVID D. JONES. CPA. MS To The Board of Directors The Peninsula Bridge Program Palo Alto, California I have reviewed the accompanying stalement of financial position of The Peninsula Bridge Program (a non-profit organization) as of December 31, 2012, and the related statements of activities, functional expenses, and cash flows for the year then ended. A review includes prirnarily applying analytical procedures to management's financial data and making inquires of management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole, Accordingly, I do 1ot express such an opinion. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintairring internal control relevant to the preparation and fair presentation of financial statements. My responsibility is to conduct the review in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. Those standards require me to perform procedures to obtain limited assurance that there are no material modifications that should be made to the financial statements. I believe that the results of my procedures provide a reasonable basis for my report. Based on my review, I am not awate of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America, -/ro Jones Accountancy June 18, PENINSULA AVENUE, SUITE 5. SAN MATEo, ca944c'1 (650) FAx (650) 54A JoNESAccoUNTANCY@SBcGLoBAL NET

3 STATEMENT OF FINANCIAL POSITION DECEMBER3I,2OI2 ASSETS Cash and cash equivalents Pledges receivable Less: Discount for multi-year pledges Less: Allowance for doubtful accounts $263,08I $2r1,rr7 (9,1 5 1) (12,667) t89,2gg TOTAL ASSETS $452,3 80 LIABILITIES Accounts Payable NET ASSETS Unrestricted net assets Temporarily restricted net assets Permanently restricted net assets TOTAL NET ASSETS $0 43 8, , ,380 TOTAL LIABILITIES AND NET ASSETS See accompanying notes to financial statements. Page 1

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5 STATEMENT OF FTINCTIONAL EXPENSES FOR THE YEAR ENDED DECEMBER General & Administrative Fund Raisine Program Services Total Executive Director Other Salaries Payroll taxes and fees Rent Professional Insurance Other Program Costs Development Office Expenses Other Expenses $ 10,308 12,055 2,348 2,154 7,430 1,616 1,643 '\ /{/ $20,615 83,277? 5)) JrZ)Z ) 4)\ l g,07g 2, $72,155 65,236 17,609 16,157 12,123 65,010 12,320 15,062 $ 103, ,569 )? nq 21,543 7,430 16,164 65, ,078 16,427 21,369 $43,291 $13s, s.672 $ See accompanying notes to financial statements. Page 3

6 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2012 CASH FLOWS FROM (TO) OPERATING ACTIVITIES Increase (decrease) in net assets Decrease (increase) in Pledges receivable Increase (decrease) in Discount on multi-year pledges Increase (decrease) in Reserve for doubtful accounts Increase (decrease) in Accounts Payable ($54, I 25) 95,218 (6,666) (2,653) (27,715) Net cash provided (used) by operating activities CASH FLOWS FROM INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES 4, NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, beginrring of year CASH AND CASH EQUIVALENTS, end of year 4, ,962 $ See accompanying notes to financial statements. Page 4

7 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2012 NO' E A - Nature of Activities and Summary of Significant Accounting Policies Nature of Activities The Peninsula Bridge Program is a California Corporation quatrified as a Non-Profit entity under Internal Revenue Code 501(c)(3) pursuant to a determination letter dated October 4,1995.,As an education-based organization, Peninsula Bridge works with four public schl districts, two community-based private schls and eight independent schls to provide rigorous enrichment programs for promising students in grades five through eight, in order to motivate and prepare these students for success in the next step of their education. The target participants are students who are ai risk of failing to achieve their academic and personal potential because of the social and economic conditions into which they were born. The program brings students from nearby public schls to the campuses of eight independent schls for summer and select year-round programs. The independent schl participants include Sacred Heart Schls, Wdside Priory, Menlo Schl, Castilleja Schl, Crystal Springs Uplands Schl, St. Matthew's Episcopal Day Schl, Pinewd Schl and St. Francis High Schl. During 2012, the Program served 400 middle schl students from East Palo Alto, Menlo Park, Redwd City, San Mateo and Mountain View. The Program's focus is to improve math and English proficiency in order to prepare students for college track classes in high schl. In2012, 55% of the Program's graduates successfully passed Algebra I in Bt'' grade, which is one of the Program's indicators of success: This compares to an average of 20Yo for similar demographics. The Program also works with the families of the students in order to stress the importance of a quality education and the environmental issues that affect these students. The Program supports these families with tls and education in order to improve the educational opportunities of the students. Since 1989, Peninsula Bridge Program has raised and disbursed over $9,687,000 in funds which was used to serve over middle schl students. Basis of Accoqntine The accounts of the Program are maintained and the financial statements are prepared on the accrual basis of accounting. Accordingly, revenues are recognized when earned, and expenses are recognized when incurred. Page 5

8 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER Use of Estimates The financial statements include estimates and assumptions made by management that affect the carrying amounts of assets and liabilities and the reported amounts of revenues and expenses. Actual results may differ from those estimates. Cash and Cash Equivalents For purposes of the statement of cash flows, the Program considers all unrestricted highly liquid investments with an initial maturity of three months or less to be cash equivalents, Property. Furniture and Equipment The Program currently has not incurred any significant expenses for Property, Furniture and Equipment. Acquisitions in excess of $ 1,000 per item will be capitalized and depreciated over estimated lives ranging from 3 to 40 years. Revenue and Support Revenues are recognized when earned. Resources restricted by tlie donor, grantor, or other outside party for particular purposes are deemed to be earned when the Program has comolied with specific restrictions Income Taxes The Peninsula Bridge Program is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code and did not conduct unrelated business activities. Therefore, the Organrzation has made no provision for federal income taxes in the accompanying financial statements, Functional Allocation of Expenses The costs of providing the various programs and other activities have been summarized on a functional basis in the statement of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefitted. Page 6

9 TFIE PENINSULA BRIDGE PROGRAM NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. 2OI2 Promises to Give' Contributions are recognized when the donor makes a promise to give to the Program that is, in substance, unconditional. Contributions that are restricted by the donor are reporlecl as increases in unrestricted net assets if the restrictions expire dr.rring the year in which the contributions are recognized. All other donor-restricted contributions are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets. The program had pledges receivable at December 31, 2\lz,totaling $211,1I7. Many of the receivables are multi-year pledges with approximately $109,000 due in years after 201i. Those pledges wer:e discounted to their net present value using a discount rate of 5Yo per year resulting in a net reduction in the caffyrng amount of $9,151. In addition, management has recorded a provision for potential doubtful accounts of approxim ately 60/o of the net dlscounted receivables, br 512,667. The accompanying table summarrzes the gross outstanding pledges receivable by year, the discount by year and the allowance for doubtful accounts: Total Pledges by Year $r02,167 $53,550 $32,650 $11,350 $ 1 1,400 $211,117 Discount - 5% (2,550) (3,035) (1,545) (2,02t) (9,1 5 1) Subtotal 102,167 51,000 29,615 9,805 9, ,966 Allowance for doubtful accounts Net Pledges (r2,667) $ 189,299 Investment Rislcs Investments which potentially subject the foundation to risk consist primarily of cash and cash equivalents' By policy, the Program places cash and other liquid investments with bankilg institutions' At year end the balance in this account did not exceed the insurance limits of the Federal Deposit Insurance Corporation (FDIC). Page 7

10 THE PENINST]LA BRIDGE PROGRAM NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER3,2OI2 NOTE B - Contributions and Restricted Assets The accompanying financial statements have been prepared in accordance with standards set forth in Statements of Financial Accounting Standards Board ("FASB") Accounting Standards Codifications ("ASC'1) "Revent,te Recognitiorz," ASC "Prese-ntation of Financial Statements" and the guidelines set forth in the industry audit guide and accounting guide "lot-for-profit Entities" issued by the American Institute of Certified Public Accountants. Under these guidelines, contribution of cash and other assets are classified as one of the following categories: Unrestricted- Unrestricted net assets represent resources that are not subject to donor-imposed stipulations and arc avallable to support all activities of the organization. Temporarily restricted - Temporarily restricted net assets represent contributions that are limited in use in accordance with donor imposed restrictions. These restrictions may expire with time andlor may be satisfied by the actions of the organrzation according 111 the intention of the donor. Upon satisfaction of such restrictions, the associated net assets are released from temporarily restricted net assets and reported as unrestricted, If a restriction is fulfilled in the same fiscal year in which the contribution was received, the contribution is reported as temporarily restricted support and net assets released from restriction in that period, Permanently restricted - Permanently restricted net assets represent contributions to be invested and held in perpetuity as directed by the donor. During 2012 the Program received $25,000 in funds which were restricted to specific program events and schls. At the endof 2012 the Program had $14,030 in funds whicir were restricted to providing services related to a program called "Journaling Through Art.,, NOTE C - Accounts Payable The Program did not have any Accounts Payable outstanding at December 31, Page 8