family promise of brevard, inc. · 2020. 2. 5. · family promise of brevard, inc. (the...

FAMILY PROMISE OF BREVARD, INC.

COMPILED FINANCIAL STATEMENTS

For the Year Ended December 31, 2018

Family Promise of Brevard, Inc.Table of Contents

For the Year Ended December 31, 2018

REPORT:Accountants’ Compilation Report 1

FINANCIAL STATEMENTS:Statement of Financial Position 2 Statement of Activities 3

Statement of Functional Expenses 4

Statement of Cash Flows 6

Notes to Financial Statements 7

1

Carr, Riggs & Ingram, LLC

215 Baytree Drive

Melbourne, Florida 32940

(321) 255-0088

(321) 259-8648 (fax)

www.cricpa.com

ACCOUNTANTS’ COMPILATION REPORT

To the Board of Directors Family Promise of Brevard, Inc.

Management is responsible for the accompanying financial statements of Family Promise of Brevard, Inc. (a nonprofit organization), which comprise the statement of financial position as of December 31, 2018, and the related statements of activities, functional expenses, and cash flowsfor the year then ended, and the related notes to the financial statements in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the financial statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any form of assurance on these financial statements.

We are not independent with respect to Family Promise of Brevard, Inc.

Melbourne, FloridaFebruary 5, 2019

Family Promise of Brevard, Inc.Statement of Financial Position

See accompanying notes and accountants’ compilation report.

2

December 31, 2018

ASSETSCash and cash equivalents 275,285$ Cash and cash equivalents, restricted 58,396Certificates of deposit 102,404Beneficial interest in community foundation 19,935Equipment, net of accumulated depreciation of $2,897 1,677

Total assets 457,697$

LIABILITIESAccounts payable 109$ Accrued payroll 8,296

Total liabilities 8,405

NET ASSETS

Without donor restrictions (See Note 2) 390,896 With donor restrictions (See Note 2) 58,396

Total net assets 449,292 Total liabilities and net assets 457,697$

Family Promise of Brevard, Inc. Statement of Activities


3

For the year ended December 31, 2018

Without

Donor

Restrictions

With Donor

Restrictions TotalPublic support and revenue

Support:

Grants -$ 110,049$ 110,049$ Contributions 117,742 79,881 197,623 Special events proceeds 187,804$ Direct costs of special events (46,689)

Gain on special events 141,115 - 141,115 In-kind donations 74,185 - 74,185 Investment returns, net 1,317 - 1,317 Net assets released from restrictions

Satisfaction of program restrictions 151,143 (151,143) - Total public support and revenue 485,502 38,787 524,289 Expenses

Program services

Shelter 154,671 - 154,671

Aftercare 67,830 - 67,830

Help us move in 91,418 - 91,418

Total program services 313,920 - 313,920

Supporting services

Management and general 69,569 - 69,569

Fundraising 47,342 - 47,342

Total supporting services 116,911 116,911

Unallocated payment to national affiliate 5,544 - 5,544

Total expenses 436,375 - 436,375

Change in net assets 49,127 38,787 87,914

Net assets, beginning of year (See Note 2) 341,769 19,609 361,378

Net assets, end of year 390,896$ 58,396$ 449,292$


4

For the year ended December 31, 2018 Shelter Aftercare Help Us Move In

Program

Subtotal

Expenses

Equipment 800$ 732$ 394$ 1,926$

Food 30,912 - - 30,912

Insurance - - - -

Miscellaneous 813 - - 813

Professional services 249 228 123 600

Rent & utilities for families 14,543 - 54,948 69,491

Rent & utilities 9,252 8,462 4,550 22,264

Repair & maintenance 991 906 487 2,384

Salaries & benefits 59,850 54,742 29,432 144,024

Supplies 5,399 1,402 754 7,555

Transportation 29,462 - - 29,462

Travel 1,485 1,358 730 3,574

Subtotal expenses before depreciation 153,756 67,830 91,418 313,005

Depreciation 915 - - 915

Total expenses reported by function 154,671 67,830 91,418 313,920

Unallocated payment to national affiliate - - - - Total expenses 154,671$ 67,830$ 91,418$ 313,920$

PROGRAM SERVICES

Family Promise of Brevard, Inc.Statement of Functional Expenses


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Management

And General Fundraising

Supporting

Subtotal Total Expenses

548$ 401$ 949$ 2,875$

- - - 30,912

5,709 - 5,709 5,709

1,619 4,749 6,368 7,181

12,075 6,325 18,400 19,000

- - - 69,491

6,336 4,633 10,969 33,233

680 496 1,176 3,560

40,990 29,970 70,960 214,984

1,050 768 1,818 9,373

- - - 29,462

562 - 562 4,136

69,569 47,342 116,911 429,916

- - - 915

69,569 47,342 116,911 430,831

- - - 5,544 69,569$ 47,342$ 116,911$ 436,375$

SUPPORTING SERVICES

Family Promise of Brevard, Inc.Statement of Cash Flows


6

For the year ended December 31, 2018

Cash flows from operating activities:

Cash received from granting agencies 110,049$

Contributions, donations and fundraising received 385,427

Cash paid to vendors (194,371)

Cash paid to employees (213,904)

Interest received 997

Net cash provided by operating activities 88,198

Cash flows from investing activities:

Purchase of beneficial interest in community foundation (10,000)

Net cash used in investing activities (10,000)

Net increase in cash and cash equivalents 78,198

Net cash and cash equivalents at the beginning of the year 255,483Net cash and cash equivalents at the end of the year 333,681$

Cash and cash equivalents 275,285$

Cash and cash equivalents, restricted 58,396 Cash and cash equivalents total 333,681$

RECONCILIATION OF CHANGE IN NET ASSETS TO NET CASH

PROVIDED BY OPERATING ACTIVITIES:

Change in net assets 87,914$

Adjustments to reconcile change in net assets to net cash

provided by operating activities:

Depreciation expense 915

Unrealized earnings on certificates of deposit (1,517)

Decrease in beneficial interest in community foundation 1,197

Decrease in accounts payable (1,391)

Increase in accrued expenses 1,080 Net cash provided by operating activities 88,198$

Family Promise of Brevard, Inc.Notes to Financial Statements

7

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Family Promise of Brevard, Inc. (the “Organization”) is a Florida not-for-profit committed to ending family homelessness in Brevard County by collaborating with our community to provide families the support and resources they need to put themselves on a path towards long-term housing stability.

Basis of Accounting

The financial statements of the Organization have been prepared on the accrual basis of accounting and accordingly reflect all significant receivables, payables, and other liabilities.

Basis of Presentation

Financial statement presentation follows the recommendations of the Financial Accounting Standards Board (FASB). Under these standards, the Organization is required to report information regarding its financial position and activities according to two classes of net assets: with donor restrictions and without donor restrictions.

Subsequent Events

Subsequent events have been evaluated through February 5, 2019, the date which the financial statements were made available.

Tax Status

The Organization is exempt from income tax under Section 501(c)(3) of the U.S. Internal Revenue Code and has been determined to be an organization which is not a private foundation. Contributions to the Organization qualify as charitable contributions.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Organization considers all highly liquid investments available for current use with an initial maturity of three months or less to be cash equivalents.

Certificates Of Deposit

The certificates have maturities of fifteen to eighteen months, with penalties for early withdrawal. Any penalties for early withdrawal would not have a material effect on the financial statements. The certificates had interest rates of 1.64% and 1.69% at December 31, 2018. The certificates are measured at cost plus accrued interest.


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NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Property, Plant and Equipment

Fixed assets are recorded at cost. The Organization capitalizes all property greater than $1,000. Expenses which materially increase values, change capacities, or extend useful lives are capitalized. Donations of property and equipment are recorded at their estimated fair value. Such donations are reported as unrestricted support unless the donor has restricted the donated asset to a specific purpose. Depreciation is computed on the straight-line method over the following estimated useful lives:

YearsEquipment 5

Restricted and Unrestricted Revenue and Support

Contributions received are recorded without donor restrictions or with donor restrictionsdepending on the existence of any donor restrictions. Support that is restricted by the donor or grantor is reported as an increase in with donor restrictions. When a restriction expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), with donor restrictions are reclassified to without donor restrictions and reported in the statement of revenues, expenses, and changes in net assets as net assets released from restrictions.

Donated Services, Facilities, and Goods

Donated services, where they require specialized skills, are provided by individuals possessing those skills and would typically need to be purchased if not provided by donations, are recorded at values consistent with those amounts, which would be paid for similar services. Professional legal and accounting services of $9,350 of in-kind services are reflected in the accompanying financial statements. Donated facilities are reflected in the accompanying financial statements at the estimated rental value for similar type and size of property. For the year ended December 31, 2018,donated rent was $26,880. Additional goods that would have needed to have been purchased if they had not been donated for the year ended December 31, 2018 were $36,955 and are reflected in the accompanying financial statements.

Volunteers have donated time to the Organization's fundraising efforts and operations; however, no amounts for donated services are recognized since the services provided do not meet the requirements for recognition. The Organization received more than $126,000 of donated servicesfor the year ended December 31, 2018.

Expense Allocation

Directly identifiable expenses are charged to programs services, management and general or fundraising. Expenses that are allocated include equipment, professional services, rent and utilities, repair and maintenance, salaries and benefits, supplies, and travel, which are allocated on the basis of time and effort.


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NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

NOTE 2: ADOPTION OF NEW ACCOUNTING STANDARD

For the year ended December 31, 2018, the Organization adopted ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities. Adoption of this standards update caused a change in the presentation of net assets. The previously issued December 31, 2017 financial statements presented $10,250 that had been in temporarily restricted due to the Uniform Prudent Management of Institutional Funds Act (“UPMIFA”). Since the $10,250 in the quasi-endowment was not restricted by donors, it is now reflected in net assets without donor restrictions as of December 31, 2017. Below is the reclassification of net assets due to the implementation of ASU 2016-14.

Previously reported as of

December 31, 2017 Previous GAAP

Previously

restricted due to

UPMIFA Other Current GAAP

Unrestricted Net Assets 331,519$ 10,250$ (341,769)$ -$

Temporarily Restricted Net Assets 29,859 (10,250) (19,609) -

Without Donor Restrictions - - 341,769 341,769

With Donor Restrictions - - 19,609 19,609 Total net assets 361,378$ -$ -$ 361,378$

Reclassification

NOTE 3: CONCENTRATION OF CREDIT RISK

The Organization maintains cash accounts with several financial institutions, which are insured by the Federal Deposit Insurance Corporation (FDIC). All deposit accounts are insured up to $250,000 by the FDIC in aggregate per financial institution. The Organization did not have any amounts in excess of the FDIC limitation as of December 31, 2018.

NOTE 4: EQUIPMENT

Equipment at December 31, 2018 consisted of the following:

Equipment 4,574$

Less: accumulated depreciation (2,897) Equipment, net 1,677$

Depreciation expense for the year ended December 31, 2018 was $915.


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NOTE 5: NET ASSETS WITH DONOR RESTRICTIONS

Net assets with donor restrictions at December 31, 2018 consist of the following:

Subject to expenditure for specified purpose

Help us move in program 56,495$

Summer camp 185

Appreciation event 1,716Total net asset with donor restrictions 58,396$

The following net assets were released from restrictions during the year ended December 31, 2018:

Purpose

Shelter 92,146$

Help us move in program 57,555

Transportation 484

Summer camp 265

Appreciation event 693 Total released from restrictions 151,143$

NOTE 6: NET ASSETS WITHOUT DONOR RESTRICTIONS

The Board of Directors of the Organization has established an operating reserve with the objective of setting funds aside to be drawn upon in the event of financial distress or an immediate liquidity need. The operating reserve is set at 6 months of the prior fiscal year’s expenses. For the year ended December 31, 2018, the operating reserve balance totaled $218,188.

The Board of Directors of the Organization has also designated funds for a quasi- endowment, to be long-term investments. The board designated net assets for the quasi-endowment totaling $19,935as of December 31, 2018 (See Note 7).

NOTE 7: QUASI-ENDOWMENT

In 2017, the Organization’s board of directors designated funds of $10,250 for the quasi-endowment , which were subsequently deposited into the Community Foundation of Brevard, Inc.In 2018, the Organization’s board of directors designated another $10,000 to be moved into the quasi-endowment. All of the accumulated investment gains are without donor restrictions. The Organization can withdraw its contributions with a two-thirds vote by the Organization’s board of directors. The Board’s spending policy is that all the earnings will be voted on annually if they are to be spent or reinvested, and they expect a 5% annual rate of return. As of December 31, 2018, all earnings are to be reinvested.


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NOTE 7: QUASI-ENDOWMENT (Continued)

Changes in the Beneficial Interest in Community Foundation for the year ended December 31, 2018are as follows:

Without Donor

Restrictions

Accumulated

Earnings

Total Quasi-

Endowment

Beginning balance 10,250$ 882$ 11,132$

Donations 10,000 - 10,000

Investment returns, net - (1,197) (1,197) Total 20,250$ (315)$ 19,935$

NOTE 8: LIQUIDITY

The Organization’s liquidity management has structured its financial assets to be available for its general expenditures and other obligations that come due. There is a operating reserve established by the Board of Directors that may be drawn upon in the event of financial distress or immediate liquidity need upon approval of the Board of Directors. In the event of an unanticipated liquidity need, the Organization also could draw upon the quasi-endowment with a two-third vote by the Organization’s Board of Directors.

Financial Assets at December 31, 2018 * 456,020$

Less those available for general expenditures within one year, due to

Restricted by donors with purpose restrictions (58,396)

Board Designations

Quasi-endowment fund, primarily for long-term investing (19,935)

Operating reserve (218,188) Financial assets available to meet cash needs for general expenditures within one year 159,501$

* Total assets, less nonfinancial assets (equipment)

Cash and cash equivalents 159,501$

Financial assets available for general expenditures, that is, without donor or other restrictions limiting

their use, within one year of the balance sheet date, are comprised of the following:


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NOTE 9: ACCOUNTING FOR UNCERTAIN INCOME TAX POSITIONS

The Organization is exempt from federal and state income tax under section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and is classified as other than a private foundation. Contributions to the Organization are qualified as a deductible charitable contribution.

The Organization follows the accounting guidance for uncertainty in income taxes using the provisions of FASB ASC 740, Income Taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more-likely-than-not the position will be sustained upon examination by the tax authorities.

As of December 31, 2018, the Organization had no uncertain tax positions that qualify for either recognition or disclosure in the financial statements. Additionally, the Organization had no interest and penalties related to income taxes.

With few exceptions, the Organization is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years before 2015.

NOTE 10: RELATED PARTIES

The Organization purchased accounting services from a company that a Board member worked for during the year ended December 31, 2018 for $400.

NOTE 11: MEASURE OF OPERATIONS

The Organization’s operating revenues in excess of expenses includes all operating revenues and expenses that are in integral part of its programs and supporting activities. The measure of operations includes support for operating activities from both donor-restricted net assets and net assets without donor restrictions designated for long-term investment (quasi-endowment) according to the Organization’s spending policy, which is detailed in Note 7.

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