Audited Financial Statements June 30, 2011 and 2010 Contents Independent Auditors' Report... 1 Financial Statements: Statements of Financial Position... 2 Statement of Activities... 3 Statement of Cash Flows... 4 Notes to Financial Statements... 5
Statements of Financial Position June 30, 2011 and 2010 Assets 2011 2010 Current assets: Cash $ 49,076 36,953 Prepaid expenses 10,033 - Total current assets 59,109 36,953 Property and equipment, net (note 2) - 1,119 $ 59,109 38,072 Liabilities and Net Assets (Deficit) Current liabilities: Accounts payable $ 2,401 15,720 Deferred revenue 4,358 - Total current liabilities 6,759 15,720 Net assets (deficit): Unrestricted: Operating 22,831 (8,737) Net investment in property and equipment - 1,119 22,831 (7,618) Temporarily restricted (note 5) 29,519 29,970 Total net assets 52,350 22,352 Commitments and related party transactions (notes 3 and 4) $ 59,109 38,072 See accompanying notes to financial statements. 2
Statement of Activities Year ended June 30, 2011 (With Comparative Totals for 2010) Temporarily Total Unrestricted Restricted 2011 2010 Support and revenue (note 4): Contributions $ 138,140 68,585 206,725 114,651 Program revenues 95,750-95,750 69,197 233,890 68,585 302,475 183,848 Net assets released from restrictions 69,036 (69,036) - - Total support and revenue 302,926 (451) 302,475 183,848 Expenses: Program services 201,943-201,943 113,416 Management and general 70,534-70,534 45,243 Total expenses 272,477-272,477 158,659 Increase (decrease) in net assets 30,449 (451) 29,998 25,189 Net assets (deficit) at beginning of year (7,618) 29,970 22,352 (2,837) Net assets at end of year $ 22,831 29,519 52,350 22,352 See accompanying notes to financial statements. 3
Statement of Cash Flows Year ended June 30, 2011 (With Comparative Totals for 2010) 2011 2010 Cash flows from operating activities: Increase in net assets $ 29,998 25,189 Adjustments to reconcile increase in net assets to net cash provided by operating activities: Depreciation 1,119 1,307 Decrease (increase) in prepaid expenses (10,033) 5,000 Decrease in accounts payable and accrued expenses (13,319) (1,454) Increase in deferred revenues 4,358 - Net cash provided by operating activities 12,123 30,042 Net increase in cash 12,123 30,042 Cash at beginning of year 36,953 6,911 Cash at end of year $ 49,076 36,953 See accompanying notes to financial statements. 4
Notes to Financial Statements June 30, 2011 and 2010 (1) Description of Foundation and Summary of Significant Accounting Policies (a) Description of Foundation USF Health International Foundation (the Foundation) is a private interest foundation organized in the Republic of Panama and was legally incorporated on February 22, 2008. The Foundation has as its mission the following goals: To operate exclusively for education purposes, that is, strictly social ones, within the Republic of Panama and at the installations and areas designated within the City of Knowledge (Ciudad del Saber) as an education center to contribute to the academic formation of students. To operate for research purposes, to promote collaboration between national and international institutions for the development of health programs and teaching, including student exchange, courses and continuing education, within an academic program in the City of Knowledge in Panama, where the Foundation has been authorized to function. To help support in Panama (along with collaborating institutions), a quality international health research and educational program that assists as a catalyst for Panama to serve as a Latin American research and education center. To help people with the success of abilities to assume leadership positions as professionals to contribute to private, public and non-profit organizations. Likewise, the Foundation will generate programs that contribute to societal development. To provide educational assistance by implementing research and educational activities that will bring about the development of new knowledge. To offer and make possible research and educational opportunities for program participants to develop new knowledge in the Republic of Panama and the Latin American region through the support of academic programs. To carry out widely-distributed continuing educational and research in the areas of medicine, nursing, physical therapy and public health in general. To generate, adapt and disseminate knowledge in the Health Sciences environment as applicable to local and international communities in a global context. 5 (Continued)
Notes to Financial Statements (b) Financial Statement Presentation These financial statements, which are presented on the accrual basis of accounting, have been prepared to focus on the Organization as a whole and to present net assets and revenues, expenses, gains, and losses based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified as follows: Unrestricted net assets consist of unrestricted amounts that are available for use in carrying out the operations of USF Health International Foundation. Temporarily restricted net assets represent those amounts which are not available until future periods or are donor restricted for specific purposes. When a donor restriction expires, that is, when a stipulated time restriction ends or a purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Revenues are reported as increases in unrestricted net assets unless use of the related assets is limited by donor-imposed restrictions. Expenses are reported as decreases in unrestricted net assets. Gains and losses on investments and other assets or liabilities are reported as increases or decreases in unrestricted net assets unless their use is restricted by explicit donor stipulation or by law. Contributions received with donor-imposed restrictions that are met in the same year as received are reported as revenues of the unrestricted net asset class. The financial statements include certain prior-year summarized comparative information in total. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the Organization's financial statements for the year ended June 30, 2010, from which the summarized information was derived. (c) Financial Accounting Standards In June 2009, the Financial Accounting Standards Board (FASB) issued authoritative guidance establishing two levels of U.S. generally accepted accounting principles (GAAP) - authoritative and nonauthoritative - and making the Accounting Standards Codification (ASC) the source of authoritative, nongovernmental GAAP, except for rules and interpretive releases of the Securities and Exchange Commission. This guidance, which was incorporated into ASC Topic 105 - Generally Accepted Accounting Principles, was effective for interim and annual periods ending after September 15, 2009. The adoption changed certain disclosure references to U.S. GAAP, but did not have any other impact on the Organization's financial statements. 6 (Continued)
Notes to Financial Statements (d) Property and Equipment Property and equipment are stated at cost, if purchased, or at estimated fair value at the date of receipt if acquired by gift. The Foundation capitalizes all expenditures for property and equipment in excess of $500. Major renewals and betterments are capitalized. Maintenance, repairs, and minor renewals are charged to expense as incurred. Property and equipment are depreciated over estimated useful lives ranging from three to five years using the straight-line method. (e) Estimates in Financial Statements 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 the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of increases or decreases in net assets during the period. Actual results could differ from those estimates. (f) Income Taxes In accordance with Panamanian law, foundations dedicated to non-profit activities are exempted from income tax. Accordingly, no provision for income taxes has been included in the accompanying financial statements. The Organization has adopted FASB guidance regarding Uncertainty in Income Taxes as codified in FASB ASC 740-10. At June 30, 2011, management does not believe it has taken any tax positions that are subject to a significant degree of uncertainty. (g) Functional Allocation of Expenses The costs of providing the Foundation's various programs and other activities have been summarized on a functional basis in the statement of activities. Accordingly, certain costs have been allocated to program services and supporting services. (h) Fair Value of Financial Instruments The fair values of the Organization's financial instruments which include cash and accounts payable are equal to their carrying amounts as presented in the accompanying statements of financial position. 7 (Continued)
Notes to Financial Statements (2) Property and Equipment Property and equipment consists of the following at June 30, 2011 and 2010: 2011 2010 Furniture and equipment $ 9,526 9,526 Less accumulated depreciation 9,526 8,407 $ - 1,119 Depreciation expense for the years ended June 30, 2011 and 2010 was $1,119 and $1,307, respectively. (3) Operating Lease The Foundation has a three year lease for office space. The lease requires a monthly payment of $1,200 through January 2012. The lease may be cancelled by the Foundation without penalty with one month s notice to the landlord. Rent expense was approximately $14,000 for each of the years ended June 30, 2011 and 2010. Future minimum lease payments under the office lease at June 30, 2011 were as follows: (4) Related Party Transactions Year ending June 30, 2012 $ 8,400 For the fiscal year ended June 30, 2011 and 2010, the Foundation received support from the USF Health Professions Conferencing Corporation (HPCC) of approximately $211,000 and $131,000, respectively. In addition, certain members of management of HPCC also serve as members of Foundation management but are not compensated by the Foundation. HPCC also provides accounting services to the Foundation at no charge. The Foundation s manager in Panama is also an employee of the University of South Florida College of Public Health. (5) Temporarily Restricted Net Assets At June 30, 2011, temporarily restricted net assets consist of $29,519 of grant funds received during fiscal 2011 which are restricted to supporting the San Felix Project 2011. At June 30, 2010, temporarily restricted net assets consist of $29,970 of grant funds received during fiscal 2010 which were restricted to supporting the Clinical Research Diplomado program. 8 (Continued)
Notes to Financial Statements (6) Subsequent Events For purposes of disclosure, the Foundation evaluated events occurring between the end of its most recent fiscal year (June 30, 2011) and October 21, 2011, the date the financial statements were available for issuance. * * * * * * * * * * * * * * 9