ACCOUNTANT S COMPILATION REPORT

Transcription

1 ACCOUNTANT S COMPILATION REPORT To the Management and Board of Directors of Forward Communities: We have compiled the accompanying Statement of Assets, Liabilities and Net Assets - of Forward Communities (a nonprofit corporation) as of May 31, 2014, and the related Statement of Revenues, Expenses and Changes In Net Assets - for the five months then ended. These financial statements have been prepared on the modified cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles, as described in Note 1 to the financial statements. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with the modified cash basis of accounting used by Forward Communities. Management is responsible for the preparation and fair presentation of the financial statements in accordance with the modified cash basis of accounting and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. A statement of functional expenses modified cash basis for the five months ended May 31, 2014 has not been presented. Such a statement is ordinarily presented when modified cash basis financial statements purport to present results of operations. Management has elected to omit substantially all of the disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting. If the omitted disclosures were included in the financial statements, they might influence the user s conclusions about the Organization s assets, liabilities, net assets, revenue and expenses. Accordingly, the financial statements are not designed for those who are not informed about such matters. The supplementary information accompanying the compiled financial statements is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information has been compiled from information that is the representation of management. We have not audited or reviewed the supplementary information, and accordingly we do not express an opinion or provide assurance on such data. We are not independent with respect to Forward Communities. Mig Murphy Sistrom, CPA, PC June 18, 2014

2 Statement of Assets, Liabilities, and Net Assets As of May 31, 2014 Assets Current Assets BB&T Checking $ 13,595 BB&T Savings 11,901 Due from (c)(4) 15,191 Total Current Assets 40,687 Total Assets 40,687 Liabilities and Net Assets Liabilities Current Liabilities Funds Held for Fellows 8,305 Total Current Liabilities 8,305 Total Liabilities 8,305 Net Assets Net Assets at January 1, ,013 Net Income/(Loss) Year-to-Date 4,369 Total Net Assets 32,382 Total Liabilities and Net Assets 40,687 See accompanying notes and accountant s compilation report. 2

3 Statement of Revenues, Expenses, and Changes in Net Assets January 1, 2014 through May 31, 2014 Support and Revenue Individual Donations $ 3,900 Corporate & Foundation Grants Income - Fellowship Contributions 15,000 Earned Income Community Development - Innovation Challenge 12,311 Total Earned Income 12,311 Interest Income 1 Total Support and Revenue 31,212 Expenses Salaries & Wages 16,667 Employee Health Insurance 1,500 FICA Taxes 1,390 Accounting Service Fees 2,693 Other Contracted Services - Office Supplies 170 Telephone 490 Website Hosting 170 Postage & Shipping 17 Printing & Copying 104 Rent - Fellowships 1,000 Events 2,011 Meals & Entertainment 44 Advertising 17 Business Insurance 7 Licenses & Fees 500 Bank Charges 25 E-Commerce Fees 31 Payroll Processing Fees 7 Bad Debt Expense - Total Expenses 26,843 Total Change in Net Assets 4,369 Net Assets at January 1, 2014 (accrual basis) 28,178 Adjustment to Net Assets at January 1, 2013 (to convert from accrual to modified cash basis) Net Assets at May 31, 2014 (modified cash basis) (165) 28,013 Net Assets at May 31, ,382 See accompanying notes and accountant s compilation report. 3

4 Selected Information Substantially All Disclosures Ordinarily Included in Modified Cash Basis Financial Statements Are Not Included Note 1 - Summary of Accounting Basis Used in Financial Statements: The accompanying financial statements are presented on the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Accounting principles generally accepted in the United States of America require depreciation expense to be recorded on fixed assets, all revenue and accounts receivable to be recorded in the period in which revenue is earned or unconditionally promised, and expenses and accounts payable to be recorded in the period in which they are incurred. In the accompanying financial statements, depreciation has not been recorded on fixed assets during interim periods, certain revenue has been recorded when cash is received, and certain expenses have been recorded when cash is disbursed. Accounting principles generally accepted in the United States of America also require not-for-profit entities to classify net assets into permanently restricted, temporarily restricted, and unrestricted net assets based on the existence or absence of donor-imposed restrictions. In the accompanying financial statements, net assets are not classified as permanently restricted, temporarily restricted, and unrestricted, but instead are presented as total net assets. See accompanying financial statements and accountant s compilation report. 4

5 Supplementary Schedule: Budgeted vs. Actual Income & Expense January 1, 2014 through May 31, 2014 percentage of FY expired: 42% Actual Income & Expense January 1, 2014 through May 31, 2014 Budgeted Income & Expense 2014 $ Over or (Under) Budget Actual as % of Budget Support and Revenue Individual Donations $ 3,900 $ 4,000 $ (100) 98% Corporate & Foundation Grants Income - 30,000 (30,000) 0% Fellowship Contributions 15,000 80,000 (65,000) 19% Earned Income Community Development - 5,000 (5,000) 0% Innovation Challenge 12,311 24,622 (12,311) 50% Total Earned Income 12,311 29,622 (17,311) 42% Interest Income 1-1 0% Total Support and Revenue 31, ,622 (112,410) 22% Expenses Salaries & Wages 16,667 45,000 (28,333) 37% Employee Health Insurance 1,500 3,600 (2,100) 42% FICA Taxes 1,390 4,485 (3,095) 31% Accounting Service Fees 2,693 7,500 (4,807) 36% Other Contracted Services - 9,000 (9,000) 0% Office Supplies 170 1,450 (1,280) 12% Telephone (350) 58% Website Hosting (140) 55% Postage & Shipping % Printing & Copying % Rent - 3,000 (3,000) 0% Fellowships 1,000 38,500 (37,500) 3% Events 2,011 1, % Meals & Entertainment % Advertising % Business Insurance (743) 1% Licenses & Fees % Bank Charges (65) 28% E-Commerce Fees % Payroll Processing Fees 7 30 (23) 23% Bad Debt Expense - 12,000 (12,000) 0% Total Expenses 26, ,755 (100,912) 21% Total Change in Net Assets 4,369 15,867 See accountant s compilation report. 5