FINANCIAL STATEMENTS AND REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT THE SUPPLY EDUCATION GROUP December 31, 2012
CONTENTS Page Report of Independent Certified Public Accountant 3 Financial Statements Statement of Financial Position 4 Statements of Activities 5 Statement of Functional Expenses 6 Statement of Cash Flows 7 Notes to Financial Statements 8 10
WR Accounting and Managerial Services C E R T I F I E D P U B L I C A C C O U N T A N T REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT Board of Directors THE SUPPLY EDUCATION GROUP We have audited the accompanying statement of financial position of The Supply Education Group. (a nonprofit Organization) as of December 31, 2012, and the related statements of activities, functional expenses and cash flows for the year then ended. These financial statements are the responsibility of the Organization s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The Supply Education Group A Nonprofit Corporation as of December 31, 2012, and the changes in net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. Bethpage, NY November 07, 2013 226 N Wantagh Ave 31-10 23 rd Ave Bethpage, NY 11714 Astoria, NY 11105 o 516.644.5877 o 718.626.6767 f 516.938.6480 f 718.267.0282 wramos@wrtax.com
STATEMENT OF FINANCIAL POSITION December 31, 2012 ASSETS Cash and cash equivalents Cash $ 14,250 Property and equipment, net of accumulated depreciation of $378 4,914 Total assets $ 19,164 LIABILITIES AND NET ASSETS Liabilities Accounts payable and accrued expenses $ 17,479 Total Current Liabilities 17,479 Net assets Net assets - unrestricted 1,685 Total net assets 1,685 Total liabilities and net assets $ 19,164 The accompanying notes are an integral part of these statements -4-
STATEMENT OF ACTIVITIES For the year ended December 31, 2012 Grants and contributions Temporarily 2012 Unrestricted Restricted Total Grants and contributions $ 260,663 - $ 260,663 Total grants and contributions 260,663 260,663 Other income Interest and dividends - - - Total other revenues - - - Total revenues 260,663-260,663 Expenses Program 176,930-176,930 Fundraising 47,902-47,902 Management and general 58,374-58,374 Total expenses 283,206 283,206 Changes in net assets (22,543) - (22,543) Transfer between funds - - Net assets at beginning of period 24,228-24,228 Net assets at end of period $ 1,685 $ - $ 1,685 The accompanying notes are an integral part of these statements -5-
STATEMENT OF FUNCTIONAL EXPENSES For the year ended December 31, 2012 Operating expenses Program Management Fund Raising Expenses and General Expenses Total Payroll and related expenses $ 62,821 $ 21,266 $ 14,751 $ 98,838 Occupancy and rental costs - 9,060-9,060 Employee benefits - 3,622-3,622 Insurance - 3,607 136 3,743 Research programs 44,117 3,134-47,251 Field project 63,756 - - 63,756 Fund raising events - - 18,488 18,488 Telephone and communication 98 - - 98 Professional fees - 5,276-5,276 Travel 5,233-2,815 8,048 Advertising and marketing - - 11,712 11,712 Depreciation - 378-378 Office cost 904 12,032-12,936 Total operating expenses $ 176,929 $ 58,375 $ 47,902 $ 283,206 The accompanying notes are an integral part of these statements -6-
STATEMENTS OF CASH FLOWS For the year ended December 31, 2012 Cash flows from operating activities Change in net assets $ (22,543) Adjustments to reconcile decrease in net assets To net cash provided by operating activities Depreciation and amortization 378 Changes in operating assets and liabilities Accounts payable 17,479 Accounts receivable 4,315 Net cash used by Operating activities (371) Cash flows from investing activities Acquisition of equipment 5,292 Net cash provided by Investing activities 5,292 Cash flows from financing activities - NET INCREASE IN CASH AND CASH EQUIVALENTS 4,921 Cash and cash equivalents Beginning of year 9,329 End of year $ 14,250 The accompanying notes are an integral part of these statements -7-
NOTES TO FINANCIAL STATEMENTS December 31, 2012 NOTE A- GENERAL DESCRIPTION OF THE ORGANIZATION The Supply Education Group, A Nonprofit Corporation was incorporated under the laws of the State of New Jersey on April 22, 2010, as a non for profit corporation under section 501 (c)(3) of the Internal Revenue Code. The purpose of the organization is to activate urban slum youth to create the cities of tomorrow through a network of community secondary schools centered on service and learning. NOTE B- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1. Use of 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 in determining the report amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and may have an impact on future periods. 2. Method of Accounting The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with US generally accepted accounting principles. 3. Basis of Presentation The organization follows Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements for Not For Profit Organizations. Under SFAS No. 117, the organization is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets and permanently restricted net assets. There were no permanently restricted assets as of December 31, 2012. - 8 -
NOTES TO FINANCIAL STATEMENTS December 31, 2012 4. Cash and Cash Equivalents Cash and cash equivalents consist of cash in interest and non-interest bearing depository accounts. The organization considers investments with original maturities of six months or less when purchased to be cash equivalents. 5. Concentration of Risk Financial instruments that potentially subject the organization to concentrations of risk consist primarily of cash in banks. The Organization usually limits the amount of credit exposure to any one financial institution by not exceeding federal deposit insurance amounts. The balances are insured by Federal Deposit Insurance Corporation up to $100,000. As of December 31, 2012, there were no amounts exceeding these limits. 6. Donated Services Donated services that have met SFAS 116 and 117 requirements have been included in the financial statement. 7. Expense Allocation The Cost of Providing 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 benefited. 8. Fair values The Supply Education Group has determined that the estimated fair value of the financial assets and liabilities do not differ considerably from their book value. - 9 -
NOTES TO FINANCIAL STATEMENTS December 31, 2012 9. Fixed Assets Fixed assets are recorded at cost. Depreciation is provided over the estimates useful lives of the assets using the straight line method. Maintenance and repairs are charged to expenses as incurred, major renewals or improvements are capitalized. Fixed assets consists of the following: 2012 Equipment and Furniture $ 5,292 Total $ 5,292 Less: Accumulated depreciation (378) Net fixed assets $ 4,914 Depreciation expense for December 31, 2012 is $ 378. 10. Support and revenue All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. Amounts received that are designated for future periods or restricted by the donor for specific purposes are reported as temporarily restricted or permanently restricted support that increases those net asset classes. When a temporary restriction expires, assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions 11. Tax Exempt Status The Supply Education Group, is a non-for profit organization formed under Section 501 (c)(3) of the Internal Revenue Code. - 10 -