SOP 2023 Audit Report - FINAL

SEEDS OF PEACE, INC. FINANCIAL STATEMENTS AND AUDITORS' REPORT

December 31, 2023

Skody Scot & Co. CPAs, P.C.

SEEDS OF PEACE, INC. TABLE OF CONTENTS

PAGE INDEPENDENT AUDITORS' REPORT FINANCIAL STATEMENTS Statement of financial position as of December 31, 2023

1-2

3

Statement of activities for the year ended December 31, 2023

4

Statement of expenses by function and natural classification for the year ended December 31, 2023

5

Statement of cash flows for the year ended December 31, 2023

6

Notes to financial statements

7 - 17

Skody Scot & Co. CPAs, P.C.

INDEPENDENT AUDITORS’ REPORT To:

The Board of Directors of Seeds of Peace, Inc.

Opinion We have audited the financial statements of Seeds of Peace, Inc. (a nonprofit organization), which comprise the statement of financial position as of December 31, 2023, and the related statements of activities, expenses by function and natural classification, and cash flows for the year then ended, and the related notes to the financial statements.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of Seeds of Peace, Inc. as of December 31, 2023, 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.

Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Seeds of Peace, Inc. and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Seeds of Peace, Inc.’s ability to continue as a going concern for one year after the date that the financial statements are available to be issued.

-1Skody Scot & Co. CPAs, P.C.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they could reasonably be expected to influence the judgment made by a reasonable user based on these financial statements.

In performing an audit in accordance with GAAS, we:

•

Exercise professional judgment and maintain professional skepticism throughout the audit.

•

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

•

Obtain an understanding of internal control relevant to the audit 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 Seeds of Peace, Inc.’s internal control.

Accordingly, no such opinion is expressed.

•

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

•

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Seeds of Peace, Inc.’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

Skody Scot & Company, CPAS, P.C.

New York, NY March 25, 2025

-2Skody Scot & Co. CPAs, P.C.

SEEDS OF PEACE, INC. STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2023 ASSETS

Cash and cash equivalents: Unrestricted Restricted for compensating balance Investments Contributions receivable Prepaid expenses Property and equipment, net Intangible assets, net Right-of-use asset - operating lease Security deposits Endowment: Cash equivalents Investments Total assets

$ 1,394,104 34,010 122,848 57,804 54,416 615,595 32,355 141,377 109 12,016 379,408 $ 2,844,042

LIABILITIES AND NET ASSETS

Liabilities: Accounts payable and accrued expenses Refundable advance Lease liability - operating lease

$

802,204 20,697 144,478

Total liabilities

967,379

Commitments and contingencies (see notes) Net Assets: Without donor restrictions With donor restrictions

1,400,393 476,270

Total net assets

1,876,663

Total liabilities and net assets

$ 2,844,042

See accompanying notes to the financial statements.

-3Skody Scot & Co. CPAs, P.C.

SEEDS OF PEACE, INC. STATEMENTS OF ACTIVITIES YEAR ENDED DECEMBER 31, 2023

Support and Revenues: Contributions - financial Contributions - nonfinancial Government grants Program service revenue Investment return Insurance pay-out Special events: Event related revenue and support Less: related costs

Without Donor Restrictions

With Donor Restrictions

$

$

4,484,930 3,585 48,678 995,205 40,229 235,025

32,131 -

Total $

4,484,930 3,585 48,678 995,205 72,360 235,025

910,453 (139,168)

-

910,453 (139,168)

771,285

-

771,285

413,220 12,293 7,004,450

(413,220) (12,293) (393,382)

6,611,068

484,405 570,790 355,031 175,812 2,286,603

-

484,405 570,790 355,031 175,812 2,286,603

3,872,641

-

3,872,641

Supporting Services: Management and general Fundraising

2,024,425 488,618

-

2,024,425 488,618

Total expenses

6,385,684

-

6,385,684

Increase/(Decrease) in Net Assets

618,766

(393,382)

225,384

Net assets, beginning of year

781,627

869,652

1,651,279

Net special event income and support Net assets released from restriction: Satisfaction of purpose restrictions Expiration of time restrictions Total support and revenues Expenses: Program Expenses: Regional International GATHER Special Camp Total program expenses

Net assets, end of year

$

1,400,393

$

476,270

$

1,876,663

See accompanying notes to the financial statements.

-4Skody Scot & Co. CPAs, P.C.

SEEDS OF PEACE, INC. STATEMENT OF EXPENSES BY FUNCTION AND NATURAL CLASSIFICATION YEAR ENDED DECEMBER 31, 2023 Program Expenses Regional Compensation and related expenses: Salaries Payroll taxes Employee benefits

$

Total Direct expenses: Background checks Bad debt Bank and credit card fees Computer and IT expenses Consultants Depreciation and amortization Equipment leases and rentals Equipment purchases Insurance Interest Marketing and promotion Meals/food service Office supplies and expenses Printing and copying Program expenses - other Real estate taxes Rent and utilities Repairs and maintenance Scholarships Staff and volunteer training Telephone and communications Travel and meetings Total direct expenses Total expenses

$

113,735 8,187 73,138

International $

444,990 32,033 -

GATHER $

185,652 13,364 23,159

Special $

106,687 7,680 16,612

Camp $

Total

554,636 39,926 85,040

$ 1,405,700 101,190 197,949

Supporting Services Management & General Fundraising $

829,505 59,712 152,646

$

Total Expenses

292,623 21,064 54,038

$ 2,527,828 181,966 404,633

195,060

477,023

222,175

130,979

679,602

1,704,839

1,041,863

367,725

3,114,427

24 2,008 169,398 13,796 108 89 9,630 6,291 12 24,865 11,780 552 1,031 541 49,220

82,892 1,215 141 1,572 21 4,427 (476) 42 3,933

579 100,047 26 16,900 325 734 1,542 12,703

453 33,568 303 986 1,708 201 1,921 2,218 1,198 2,277

8,291 9,379 3,837 226,711 56,861 50,549 50,712 48,997 1,580 134,063 45,744 12,380 42,769 32,820 97,649 149,855 174,050 15,590 3,980 441,184

8,291 9,403 6,877 612,616 71,872 50,549 50,961 50,684 18,783 145,025 58,904 12,593 68,700 32,820 111,350 152,625 174,050 16,621 5,761 509,317

20,263 8,046 31,860 50,751 319,770 30,835 7,107 87,077 162,327 15,358 127,073 412 38,819 2,775 52,751 34 13,786 13,518

5,699 10,442 18,745 247 12,627 44 1,204 19,573 46,026 16 6,270

28,554 8,046 46,962 68,070 951,131 102,954 57,656 150,665 213,011 15,358 145,856 145,481 98,927 34,941 68,700 32,820 210,127 152,625 174,050 16,671 19,547 529,105

289,345

93,767

132,856

44,833

1,607,001

2,167,802

982,562

120,893

3,271,257

175,812

$ 2,286,603

$ 3,872,641

$ 2,024,425

488,618

$ 6,385,684

484,405

$

570,790

$

355,031

$

$

See accompanying notes to the financial statements.

-5Skody Scot & Co. CPAs, P.C.

SEEDS OF PEACE, INC. STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2023 Cash flows from operating activities: Increase/(decrease) in net assets

$

225,384

Adjustments for non-cash items included in operating activities: Depreciation and amortization Loss/(gain) on investments Donation of investments Bad debt Amortization of pledge discount Amortization of right-of-use asset Accretion of lease liability

102,954 (56,467) (424,145) 8,046 (2,870) 97,652 13,199

Changes in assets and liabilities: Contributions receivable Grants receivable Other receivables Inventory Prepaid expenses Accounts payable and accrued expenses Refundable advance Payment of operating lease

106,164 89,030 2,521 14,865 139,340 227,418 20,697 (109,803)

Net cash provided/(used) by operating activities

453,985

Cash flows from investing activities: Sale of investments Purchase of investments Purchase of property, equipment and intangibles

428,487 (6,758) (295,101)

Net cash provided/(used) by investing activities

126,628

Cash flows from financing activities: Repayment of line of credit

(250,000)

Net cash provided/(used) by financing activities

(250,000)

Net increase/(decrease) in cash and cash equivalents

330,613

Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

1,109,517 $

Supplemental information: Interest paid

1,440,130 9,107

See accompanying notes to the financial statements.

-6Skody Scot & Co. CPAs, P.C.

1.

Nature of Activities and Summary of Significant Accounting Policies Organization: Seeds of Peace, Inc. (hereafter referred to as the Organization) is a not-for-profit corporation, incorporated in the State of Delaware on March 8, 1993.

The primary purpose of the Organization is to empower young leaders from regions of conflict with the leadership skills required to advance reconciliation and coexistence.

As young teens, they live together in a summer camp for three weeks to learn conflict management skills. After attending camp, the Organization provides participants with follow-up leadership training and dialogue through their college years, and after college, a graduate program to maintain cross-border network and dialogue.

Tax-exempt status: The Organization has been granted tax-exempt status by the Internal Revenue Service under Internal Revenue Code Section 501(c)(3) on July 2, 1993. Accordingly, no provision for federal, state or local income taxes has been recorded. The Organization does not believe its financial statements include any uncertain tax positions.

Programs and services provided: The Organization’s five major program areas include the following: Regional – Local initiatives for Camp alumni from the United States designed to reinforce relationships and build leadership skills; International – Convening fellowship programs in the Middle East, South Asia, and the United States for Camp alumni and other change-makers designed to accelerate their impact as they work to transform conflict; GATHER – Local and international convenings and fellowship for camp alumni to offer personal and project-based support; Special – Conducting an online course for young adults from India and Pakistan to learn new dialogue skills and operating community based programs in the Middle-East, U.S. and Europe with a focus on middle school youth ; and Camp – Summer leadership development program in Maine for teenagers and educators from communities divided by conflict.

Major sources of income: The Organization derives most of its income from contributions from individuals, corporations and foundations, government grants, program service revenue and special events.

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.

Estimates and assumptions: Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that were used.

Skody Scot & Co. CPAs, P.C.

1.

Nature of Activities and Summary of Significant Accounting Policies (continued) Net assets: Net assets, revenues, gains and losses are classified based on the existence or absence of donor or grantor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions - Net assets available for use in general operations and not subject to donor (or certain grantor) restrictions. This classification includes net assets designated by the board or management for a specified purpose.

Net Assets With Donor Restrictions - Net assets subject to donor (or certain grantor) imposed restrictions. Some donor-imposed restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature (endowment), where the donor stipulates that resources be maintained in perpetuity.

Cash equivalents: For purposes of the statement of financial position and the statement of cash flows, the Organization considers as cash equivalents money market funds and all highly liquid resources, such as certificates of deposit with an original maturity, to the Organization, of three months or less.

Property, equipment and intangibles: The Organization capitalizes certain property, equipment and intangibles with estimated lives of three years or more.

Property, equipment and intangibles are stated at cost or, if donated, the fair value on the date of donation, less accumulated depreciation and amortization.

Depreciation and amortization are computed on the straight-line and accelerated basis over the respective assets’ estimated useful lives of five to ten years.

Expenditures for maintenance and repairs are charged to current operations.

Skody Scot & Co. CPAs, P.C.

1.

Nature of Activities and Summary of Significant Accounting Policies (continued) Revenue recognition: The Organization recognizes contributions when cash and other financial assets, nonfinancial assets/services, or unconditional promises to give are received. Nonfinancial assets/services are valued based on the type of asset/service received. Conditional promises to give, which have a measurable performance or other barrier and a right of return, are not recognized until the conditions on which they depend have been met. Amounts received prior to the meeting of these conditions are reported as refundable advances in the statement of financial position. As of December 31, 2023, government grants totaling $20,697 have not been recognized in the accompanying statement of activities because the conditions on which they depend have not been met. The recognition of this grant is conditioned on the Organization meeting certain programmatic goals.

All contributions are considered available for the Organization’s general programs unless specifically restricted by the donor. Amounts received that are designated for future periods or restricted for a purpose by the donor are reported as support with donor restrictions and increases in net assets with donor restrictions. Contributions received with restrictions that are met in the same reporting period are reported as support without donor restrictions and increases in net assets without donor restrictions.

Investment income and gains are reported based upon the existence or absence of a donor restriction. Restricted investment income is reported as increases in net assets without donor restrictions if any applicable restrictions are met in the reporting period in which the income and gains are recognized. When a restriction expires, net assets with donor restrictions are reclassified to net assets without donor restrictions.

The Organization receives grants from governmental agencies. Depending upon the terms of the grant, it can be either an exchange transaction or a contribution. In accordance with grant provisions, the grant can be an expense reimbursement grant which requires that approved expenses be incurred prior to reimbursement by the grantor. Other grants permit advances of grant funds or full payment of grant funds at the start of the grant. If the grant is an exchange type grant, all unreimbursed expenses, for approved purposes, as of year-end are recorded as receivables and any unexpended advances are recorded as either refundable advances or deferred income. If the grant is a contribution, it is recognized in accordance with the contribution recognition policy described above.

Program service revenue relates to fees received in exchange for attending camp and all of the services provided during the campers’ time there. Camp fees are recognized at the conclusion of the camp when obligations are satisfied and benefits are transferred. Camp fees paid in advance are deferred to the period in which the related performance obligations are satisfied.

Skody Scot & Co. CPAs, P.C.

1.

Nature of Activities and Summary of Significant Accounting Policies (continued) The Organization receives special events revenue which contains both an exchange component and a conditional contribution component. Both components are recognized when the event takes place. Any event revenue received in advance of the event is recorded as deferred income.

Receivables: Receivables that are expected to be collected within one year are recorded at their net realizable value. Receivables that are expected to be collected in future years are recorded at the present value of estimated future cash flows.

Receivables are written off as bad debts in the year deemed uncollectible and are reported as such in the statement of expenses by function and natural classification.

All receivables are expected to be received in one year, and as such, are stated at their net realizable value in the statement of financial position.

Investments: All marketable debt and equity securities and mutual funds are measured at fair value on a recurring basis and are reported at their fair market values as of December 31, 2023 in the statement of financial position.

The Organization initially records the investments it receives as a donation at the fair value as of the dates the investments are donated to the Organization and thereafter carries such investments at current fair values.

Functional expense allocation: The costs of providing various programs and other activities have been summarized on a functional basis in the statement of activities and in the statement of expenses by function and natural classification. Accordingly, certain costs have been allocated among the programs and supporting services benefited. The expenses that are allocated include salaries and related expenses and consultants based on estimated time and effort and all other expenses based on usage. The Organization classifies expenses which are not directly related to a specific program as management and general expenses.

Skody Scot & Co. CPAs, P.C.

2.

Fair Value Measurement of Investments The Financial Accounting Standards Board (FASB) requires enhanced disclosures about investments that are measured and reported at fair value. FASB establishes a hierarchal disclosure framework which prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is impacted by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available active quoted prices, or for which fair value can be measured from actively quoted prices, generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Investments measured and reported at fair value are classified and disclosed in one of the following categories: Level 1: Investments falling within Level 1 of the fair value hierarchy are valued using inputs based upon quoted prices in active markets for identical investments.

Investments that are typically included in Level 1 are listed equity securities, publicly traded mutual funds, and exchange-traded funds.

Level 2: Investments falling within Level 2 of the fair value hierarchy are valued using significant observable inputs other than prices quoted in active markets. Examples of Level 2 inputs are model-driven prices, quoted prices for similar investments in active markets, and quoted prices for identical or similar investments in inactive markets.

Investments that are typically included in Level 2 are municipal bonds, corporate bonds, and government debt securities.

Level 3: Investments falling within Level 3 of the fair value hierarchy are valued using methodology that is unobservable and significant to the fair value measurement. Level 3 inputs require significant management judgment or estimation. Investments that are typically included in this category are investments in limited partnerships and investments in private companies or unregistered securities.

The investment’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

As of December 31, 2023, all of the Organization’s investments were Level 1 investments.

Skody Scot & Co. CPAs, P.C.

3.

Cash and Cash Equivalents As of December 31, 2023, the components of cash and cash equivalents are as follows: Unrestricted cash Money market funds: Restricted for endowment Restricted for compensating balance Total

$ 1,394,104 12,016 34,010 $ 1,440,130

Cash and cash equivalents include cash that is reserved as a compensating balance for a line of credit as part of a lease stipulation as well as cash that is restricted for an endowment.

4.

Property, Equipment and Intangibles Property, equipment and intangibles by major class consisted of the following at December 31, 2023: Furniture and fixtures Equipment and software Leasehold improvements Website design Less: accumulated depreciation and amortization

5.

$

39,540 253,567 1,424,907 169,029

( 1,239,093) $ 647,950

Investments The Organization’s investments are stated at fair values, based on quoted prices in active markets, and consist of marketable securities and mutual funds. Fair values at December 31, 2023 are summarized as follows: Fair market values Less: Cost Unrealized appreciation/ (depreciation)

$ 502,256 ( 527,262) $( 25,006)

Skody Scot & Co. CPAs, P.C.

6.

Endowment As required by Generally Accepted Accounting Principles, net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed restrictions. The Organization’s endowment is comprised of one donor-restricted fund (Fund) which was established to provide future program support.

When amounts are appropriated for expenditure by the Organization in a manner consistent with the standard of prudence prescribed by the New York Prudent Management of Institutional Funds Act (NYPMIFA), the Organization reclassifies net assets with donor restrictions to net assets without donor restrictions.

The Organization follows the provisions of NYPMIFA, which allows appropriation or accumulation of so much of the donor-restricted endowment as is prudent for the uses, benefits, purposes, and duration for which the fund is established, subject to the intent of the donor as expressed in the gift instrument. As a result, appropriations below the historic dollar value of the fund’s original gift instrument are permitted unless: the donor of an endowment fund established before September 17, 2010, who is available, opts to retain the historic dollar value limit, or the donor of an endowment fund received after September 17, 2010, includes an explicit prohibition on spending below historic dollar value.

In deciding whether to appropriate from an endowment fund, the Organization’s Board of Directors must act in good faith, with the care that an ordinary prudent person in a like position would exercise under similar circumstances. In addition, the following factors must be considered prior to appropriation: (1) the duration and preservation of the Fund (2) the purposes of the Organization and the donor-restricted Fund (3) general economic conditions (4) the possible effect of inflation and deflation (5) the expected total return from income and the appreciation of the investments (6) other resources of the Organization (7) alternatives to expenditure of the Fund, giving due consideration to the effect that such alternatives may have on the Organization (8) the Organization’s investment policies Investment Return Objectives, Risk Parameters and Strategies. The Organization has adopted investment and spending policies, approved by the Board of Directors, for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment fund while also maintaining the purchasing power of those endowment assets over the long-term. Accordingly, the investment process seeks to achieve an after-cost total real rate of return, including investment income, with acceptable levels of risk.

Endowment assets are invested in a mix that is intended to result in a consistent inflation-protected rate of return that has sufficient liquidity to make an annual distribution, if appropriate, while growing the Funds if possible. Therefore, the Organization expects its endowment assets, over time, to produce an average rate of return of approximately 1% annually. Actual returns in any given year may vary from this amount. Investment risk is measured in terms of the total endowment fund; investment assets and allocation between asset classes and strategies are managed in order not to expose the Fund to unacceptable levels of risk.

Skody Scot & Co. CPAs, P.C.

6.

Endowment (continued) Spending Policy. The donor restriction states that annual distributions from the investment account can be made to support the facilitator training course in Jerusalem. For the first five years, the aggregate distribution is not allowed to exceed the greater of $20,000 or 5% of the total fair market value of the account.

After these five years have ended, the aggregate distribution cannot exceed the greater of $25,000 or 7% of the total fair market value of the account. The Organization expects the current spending policy to allow its endowment fund to grow at a nominal average rate of 1% annually, which is consistent with the Organization’s objective to maintain the purchasing power of the endowment assets as well as to provide additional real growth through investment return.

Changes and composition of endowment net assets for the year ended December 31, 2023 are as follows: Donor-restricted endowment, beginning of year $ 359,293 Investment return 32,131 Donor-restricted endowment, end of year $ 391,424

7.

Retirement Plan On February 1, 2002, the Organization adopted a salary reduction, 401(K) retirement plan that is funded by voluntary employee contributions and discretionary employer contributions. The plan was converted to a tax-deferred 403(b) plan in 2010. Organization contributions to the plan amounted to $6,000 for the year ended December 31, 2023.

8.

Loans and Notes Payable In September 2022, the Organization opened a credit line of $250,000 with a financial institution which was secured by all present and future personal property and fixtures of the Organization. Interest is to be paid monthly on the outstanding balance based on two percent above the prime rate in effect. During the year ended December 31, 2023, the outstanding balance was paid off.

Skody Scot & Co. CPAs, P.C.

9.

Leases On March 17, 2022, the Organization incurred a lease liability by entering into a noncancellable operating lease agreement to obtain a right-of-use asset (ROU asset).

The lease is set to expire in 2025. The lease liability and ROU asset represent the present value of the Organization’s lease obligations and the value of its right to use the leased office space over the remaining term of the lease. Since the lease does not contain a stated interest rate, the lease payments are discounted using the Organization’s incremental borrowing rate on the lease commencement date.

As of December 31, 2023, the minimum aggregate annual lease commitments are as follows: Year ended December 31, 2024 2025 Total lease payments Less: imputed interest (7%) Present value of lease liability

$ ( $

112,915 37,988 150,903 6,425) 144,478

Total rent expenses charged to operations for the year ended December 31, 2023 was $110,851.

The Organization has elected to apply the short-term lease exception to all leases with a term of one year or less.

Camp lease: The Organization leases property located in Pleasant Lake, Otisfield, Maine, under a short-term, non-cancelable operating lease that expired on March 30, 2023. The lease was extended for one year on April 1, 2023. The Lessor has agreed to forgo receiving rent during the lease period as long as the Organization continues to maintain and make capital improvements on the property. The Organization expects to continue paying to maintain and improve the property and therefore the use of the space is not considered to be donated.

10.

Concentrations Insurance coverage: The Organization maintains its cash, cash equivalents, and investments in various accounts. The Federal Deposit Insurance Corporation (FDIC) insures bank deposits up to $250,000 per financial institution. The Securities Investor Protection Corporation insures cash and securities, including money market funds, up to $500,000 per financial institution. At times, the balances of the accounts have exceeded the insured limits during the year ended December 31, 2023.

Skody Scot & Co. CPAs, P.C.

11.

Liquidity and Availability of Financial Assets The Organization regularly monitors liquidity required to meet its operating needs and other obligations as they come due.

For purposes of analyzing resources available to meet general expenditures over a 12month period, the Organization considers all expenditures related to its ongoing activities to be general expenditures. Amounts available for general expenditures over a 12-month period include donor-restricted amounts that are available for ongoing programmatic and support expenditures.

The following reflects the Organization’s financial assets, as of December 31, 2023, reduced by amounts not available for general use within one year because of contractual, donor-imposed, or internal restrictions and designations: Financial assets Cash and cash equivalents Receivables, net Investments Total financial assets

$

1,440,130 57,804 502,256 2,000,190

( ( (

34,010) 12,016) 379,408)

Financial assets available to meet cash needs for general expenditures within one year $

1,574,756

Less those unavailable for general expenditures within one year: Cash restricted for compensating balance Cash restricted for endowment Investments restricted for endowment

12.

Nonfinancial Contributions The Organization received nonfinancial contributions that meet the criteria for being recognized in accordance with US GAAP. For the year ended December 31, 2023, amounts recognized in the statement of activities are as follows: Travel coffee mugs – used by the Organization for programmatic Functions

$

3,585

The nonfinancial contributions received during the year ended December 31, 2023 did not have any donor-imposed restrictions.

The nonfinancial contributions received by the Organization were valued based on the estimated cost to the Organization if purchased

Skody Scot & Co. CPAs, P.C.

13.

Government Grants The Organization was awarded various government grants to support its programs.

All of the revenue recognized under the grants during the year ended December 31, 2023 came from Federal grantors.

14.

Net Assets With Donor Restrictions As of December 31, 2023, net assets with donor restrictions are available as follows: Subject to passage of time or purpose: Multinational programming 2024 operations Endowment: Subject to spending policy and appropriation Total

15.

$

$

69,846 15,000 84,846

391,424 476,270

Revenue from Contracts with Customers All of the revenue derived from contracts with customers during 2023 was fully earned in the same annual reporting period. Detail of revenue from contracts with customers during the year ended December 31, 2023 is as follows: Camp fees and miscellaneous Special events - exchange component

16.

$ 995,205 139,168

Subsequent Events Management has evaluated subsequent events through March 25, 2025, the date the financial statements were available to be issued, to evaluate whether any such events warrant adjustment to any reported amounts or inclusion of additional disclosures. No such adjustments or disclosures were judged to be necessary.

Skody Scot & Co. CPAs, P.C.