LEAVE NO VETERAN BEHIND, INC. (AN ILLINOIS NOT-FOR-PROFIT CORPORATION) FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2013 AND 2012
125 South Wacker Drive • 10th Floor • Chicago, Illinois 60606-4433 E-mail: bwmail@brookweiner.com • Web : www.brookweiner.com 3 12/629-0900 • Fax 312/629-0901
INDEPENDENT AUDITOR'S REPORT
To those Charged with Governance of Leave No Veteran Behind, Inc.
We have audited the accompanying financial statements of Leave No Veteran Behind, Inc. (a nonprofit organization), wh ich comprise the statement of financial position as of December 31 , 2013, and the related statements of activities and cash flows for the year then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America ; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility
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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects , the financial position of Leave No Veteran Behind , Inc. as of December 31 , 2013, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America .
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Member of TIAG, The International Accounting Group
~TIAG"
Prior Period Financial Statements The December 31, 2012 financial statements were reviewed by us and our report thereon, dated November 13, 2013, stated we were not aware of any material modifications that should be made to those financial statements for them to be in conformity with accounting principles generally accepted in the United States of America . However, a review is substantially less in scope than an audit and does not provide a basis for the expression of an opinion on the financial statements.
Chicago, Illinois June 25, 2014
BROOKWEINER L.L.C.
LEAVE NO VETERAN BEHIND, INC. (AN ILLINOIS NOT-FOR-PROFIT CORPORATION) STATEMENTS OF FINANCIAL POSITION
ASSETS
December 31 , 2012 (Reviewed)
2013 CURRENT ASSETS Cash Accounts receivable Prepaid expenses Total current assets
$
FURNITURE AND EQUIPMENT, NET
Total assets
$
92,731 85,442 178, 173
34,424 42, 159 4,000 80,583
2,255
2,853
180,428
$
$
83,436
LIABILITIES AND NET ASSETS (DEFICIT) CURRENT LIABILITIES Accounts payable Accrued liabilities Current portion of long-term debt Total current liabilities
$
9,619 38 ,790 20,788 69,197
LONG-TERM DEBT
150,000 .
NET ASSETS Un restricted
(38,769)
Total liabilities and net assets (deficit)
$
路 180,428
$ 22 ,500 50,865 73,365
10,071
$
83,436
See Independent Auditors' Report and Notes to Financial Statements. -3-
BROOKWEINER L.L.C.
LEAVE NO VETERAN BEHIND, INC. (AN ILLINOIS NOT-FOR-PROFIT CORPORATION) STATEMENTS OF ACTIVITIES Year ended December 31 , 2013 Un restricted Administrative Program REVENUE Contract services Corporate contributions Individual contributions Foundation contributions Foundation grants In kind Total revenue before restrictions Revenue released from restrictions Total revenue
$
EXPENSES Officers' salaries Other salaries Veteran-provided services Youth-provided services Fundraising activities Payroll taxes Payroll processing fees Rent License renewal Other program expense Education schlolarship Marketing Insurance Telephone and internet services Professional fees Interest and bank charges Office supplies Travel and meals Auto expense Training Miscellaneous Depreciation Total expenses
CHANGE IN NET ASSETS
$
127,403 $ 14,330 23,812 . 5,119 7,500
721,952 81 ,201 134,935 29 ,010 42 ,500
$
Total 849 ,355 95 ,531 158,747 34, 129 50,000
178,164 18,000 196,164
1,009 ,598 102,000 1,111,598
1,187,762 120,000 1,307,762
23 ,831
95 ,325
119,156
34 ,918 42,440 6,337 10,677 2,116 5,970
663,433 169,761 14,785 24 ,912 4,938 13,930
698,351 212,201 21 ,122 35,589 7,054 19,900
6,938 4,268
16, 188 9,960
23,126 14,228
9,962 4,552 18,074 2,809 7,387 5,510 309 12,683 755 851 200 ,387
23 ,244 10,621 38 ,407 6,555 17,236 12,858 722 29 ,594 1,761 1,985 1,156,215
33,206 15,173 56,481 9,364 24,623 18,368 1,031 42 ,277 2,516 2,836 1,356,602
(44,617)
(48 ,840)
(4 ,223)
$
NET ASSETS - BEGINNING
10,071
NET ASSETS - ENDING
$
BROOKWEINER L. t~ . lndependent Auditors' Report and Notes to Financial Statements. -4-
(38, 769)
Years Ended December 31 , 2013 2012 (Reviewed) Temporarily Restricted Total Total
$
$
120,000 120,000 {120,000}
849,355 95,531 158,747 34, 129 170,000
$
1,307,762
12,000 567,220
1,307,762
567,220
119,156
46,901 33,785 392 ,655
698,351 212,201 21, 122 35,589 7,054 19,900
19,676 8,017 5,017 12,000 265 1,637
23,126 14,228
10,108 6,963 12, 154 9,250 6,673 2,580 4,311 4,681 11,795
33 ,206 15,173 56,481 9,364 24,623 18,368 1,031 42 ,277 2,516 2,836 1,356,602
$
$
478,455 39,018 37,747
3,015 591,483
(48,840)
(24 ,263)
10,071
34 ,334
(38 ,769)
$
10,071
BROOKWEINER L.t~(:: _lndependent Auditors' Report and Notes to Financial Statements. -4-
LEAVE NO VETERAN BEHIND, INC. (AN ILLINOIS NOT-FOR-PROFIT CORPORATION) STATEMENTS OF CASH FLOWS
Years Ended December 31 , 2013 2012 (Reviewed} CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets Adjustments to reconcile change in net assets to net cash used in operating activities Depreciation Change in assets and liabilities (Increase) decrease in accounts receivable Decrease in prepaid expenses Increase in accounts payable Increase in accrued liabilities Total adjustments
$
(48 ,840}
$
(24,263}
2,836
3,015
(43 ,283) 4,000 9,619 16,290 (10 ,538}
6,149 990 9,250 19,404
Net cash (used in) operating activities
(59,378}
(4,859}
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property & equipment
(2 ,238}
Net cash (used in) investing activities
(2 ,238}
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from notes payable Payments on notes payable
150,000 (30 ,077)
3,367
119,923
3,367
NET INCREASE (DECREASE) IN CASH
58 ,307
(1,492)
CASH - BEGINNING
34,424
35 ,916
Net cash provided by financing activities
CASH - ENDING
$
92 ,731
$
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Interest paid during the year
$
3,460
$
See Independent Auditors' Report and Notes to Financial Statements. -5-
BROOKWEINER L.L.C.
34,424
3,789
=======
LEAVE NO VETERAN BEHIND, INC. (AN ILLINOIS NOT-FOR-PROFIT CORPORATION) NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2013 AND 2012 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations
Leave No Veteran Behind, Inc. (the Organization) is an Illinois not-for-profit corporation. The Organization provides educational and employment services to veterans who face economic hardship. Through its innovative educational debt relief scholarship, community service, employment training, and job placement programs, the Organization invests in heroes who have honorably served our Nation and seek to continue their service as productive citizens in their communities. Basis of Presentation
The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America . In accordance with these principles, the Organization adheres to guidance provided by Accounting Standards Codification (ASC) No. 958-205. Under ASC 958-205, "Presentation of Financial Statements", the Organization, if applicable, is required to report information regarding its financial position and activities according to three classes of net assets, namely unrestricted, temporarily restricted and permanently restricted . Support that is restricted by donors as being available only in future accounting periods, is reported as restricted support. Additionally, promises to give or pledges are recognized when the conditions of the promise or pledge have been substantially met by the Organization. Revenue and Expense Recognition
The financial statements of the Organization have been prepared on the accrual basis of accounting applying the standards promulgated by the American Institute of Certified Public Accountants Audit Guide for Non-Profit Organizations. Accordingly, all significant receivables, payables, and other liabilities have been reflected . Additionally, revenue is recognized when earned and expenses are recognized when incurred. Support Recognition
Contributions, received or pledged, are recorded as unrestricted unless specifically restricted by the donor. All donor-restricted contributions are reported as an increase in temporarily restricted net assets and are transferred to unrestricted net assets as the restrictions are met. In-Kind
For the year ended December 31 , 2013 the Organization had no In-Kind. The value of In-Kind at December 31, 2012 was $12 ,000 this was for rent expense. Estimates
The financial statements have been prepared in accordance with generally accepted accounting principles and necessarily include amounts based on estimates and assumptions made by management. Actual results could differ from those estimates.
BROOKWEINER L.L.C.
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LEAVE NO VETERAN BEHIND, INC. (AN ILLINOIS NOT-FOR-PROFIT CORPORATION) NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2013 AND 2012 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Functional Expenses
The Organization allocates its expenses on a functional basis among its various programs. Expenses that can be identified with a specific program are allocated according to their natural expenditure classification. Other expenses that are common to several functions are allocated by various formulas. Accounts Receivable
Accounts receivable represent amounts due from service contracts entered into with governmental agencies and are stated at the unpaid balances, less any allowance for doubtful accounts. It is the Organization's policy to charge off uncollectible accounts receivable when management determines the receivable will not be collected . At December 31, 2013 and 2012, there was no balance in the allowance for doubtful accounts as the Organization determined the outstanding balance was fully collectible.
NOTE B - PROPERTY AND EQUIPMENT
Property and equipment are recorded at cost and depreciated over the estimated lives (3 years) of the assets using the straight-line method. The asset cost and related accumulated depreciation are as follows: 2013 2012 Property and equipment Accumulated depreciation
$ 11,282 (9,027)
$ 9,044
Net book value
$
$ 2,853
2,255
(6,191)
Depreciation expense for the years ended December 31 , 2013 and 2012 was $2,836 and $3,015.
NOTE C - NOTE PAYABLE
The Organization has a commercial loan with a local financial institution . The loan bears interest at 7.75%. As of December 31 , 2013 and 2012, the outstanding balance was $20,788 and $50,865. Interest on the debt was accrued through the end of the year. The Organization has an unrestricted Program Related Investment loan from a local Foundation. This is an interest free loan. As of December 31, 2013, the outstanding balance was $150,000. According to the debt agreement, the principal is to be repaid in ten annual installments of $15,000 due on or before December 15 of each year commencing in 2015. NOTED - INCOME TAX STATUS
The Organization adopted the provision of ASC 740 "Accounting for Income Taxes", which clarifies the accounting for uncertainty in income taxes . In accordance with these provisions , a tax position is recognized as a benefit only if it is more than 50% more likely that the ta x position -7-
BROOKWEINER L.L.C.
LEAVE NO VETERAN BEHIND, INC. (AN ILLINOIS NOT-FOR-PROFIT CORPORATION) NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2013 AND 2012
would be upheld in a tax examination . No tax benefit is recorded for tax positions that are less than 50% likely to be upheld in a tax examination. The adoption of ASC 740 had no effect on the Organization 's financial statement for the years ended December 31, 2013 and 2012. The Organization recognizes interest and penalties related to unrecognized tax benefits as interest and income tax expense, respectively. For the years ended December 31, 2013 and 2012, the Organization had no amounts recorded for interest or penalties. The Organization files income tax returns with the U.S. federal government and the state of Illinois. The Organization is no longer subject to U.S. federal, state, and local income tax examinations by tax authorities for fiscal years before 2010. The Organization is a not-for-profit Organization that is exempt from income taxes under Section 501 (c)(3) of the Internal Revenue Code and classified by the Internal Revenue Service as other than a private foundation . Due to its tax-exempt status, the Organization is not subject to U.S. federal or state income taxes .
NOTE F - TEMPORARILY RESTRICTED NET ASSETS
During fiscal year 2013 the Organization received a grant of $120,000 in support of the Summer Youth Employment Program. During 2013 the Organization complied with the grant terms and, as such, the revenue was released from restriction . NOTE G - FINANCIAL INSTRUMENTS
The Organization estimates that the fair values of all financial instruments at December 31, 2013 and 2012 do not differ materially from the aggregate carrying values of its financial instruments recorded in the accompanying statement of financial position.
NOTE H - SUBSEQUENT EVENTS
The Organization has evaluated subsequent events through June 25, 2014, the date the financial statements are available to be issued.
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BROOKWEINER L.L.C.