Financial Statements
December 31, 2013
Contents
United Way of York County, Inc. December 31, 2013
Financial Statements: Independent Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Statements of Financial Position as of December 31, 2013 and 2012. . . . . . . . . . . . . . . . Statements of Activities for the Year Ended December 31, 2013 and 2012 . . . . . . . . . . . Statements of Functional Expenses for the Year Ended December 31, 2013 and 2012 . . Statements of Cash Flows for the Years Ended December 31, 2013 and 2012. . . . . . . . . Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1 3 4-5 6-7 8 9
Independent Auditors’ Report
To the Board of Directors United Way of York County, Inc. Kennebunk, Maine
We have audited the accompanying financial statements of the United Way of York County, Inc. (a non-profit corporation), which comprise the statement of financial position as of December 31, 2013, and the related statements of activities, functional expenses, 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. 1
Statements of Financial Position
United Way of York County, Inc. As of December 31, 2013 and 2012 2013 Current Assets Cash and cash equivalents Investments Accounts receivable Pledges receivable, less allowance for doubtful accounts of $115,315 and $72,794, respectively Prepaid expenses
$
Total Current Assets Property and Equipment, net of accumulated depreciation Other Assets Pledges receivable, long-term portion Beneficial interest in perpetual trusts Assets restricted for permanent endowment
528,865 47,403 1,081,157
2012 $
395,942 1,219 26,189 1,344,381
7,549
7,445
1,664,974
1,775,176
24,064
20,930
137,023 267,656 32,427 437,106
233,997 27,872 261,869
Total Assets $
2,126,144
$
2,057,975
$
$
Total Current Liabilities
10,502 18,021 169,189 660,000 2,511 860,223
8,958 22,787 194,453 647,756 1,828 875,782
Total Long-Term Liabilities
11,489 11,489
1,597 1,597
Total Liabilities
871,712
877,379
748,190 18,115 10,064
364,379 10,000 20,930
776,369 186,094 291,969 1,254,432
395,309 526,978 258,309 1,180,596
Current Liabilities Accounts payable Accrued expenses Designations payable Program investments payable Current portion of capital lease Current portion of long-term debt
Long-Term Liabilities Capital lease, net of current portion Long-term debt, net of current portion
Net Assets Unrestricted: Available for operations Board designated Investment in property and equipment, net of related debt Total Unrestricted Temporarily restricted Permanently restricted Total Net Assets Total Liabilities and Net Assets $
See accompanying independent auditors' report and notes to financial statements. 3
2,126,144
$
2,057,975
Statement of Activities
United Way of York County, Inc. For the Year Ended December 31, 2013 Unrestricted Revenues and Other Support Campaign results: Local campaign Estimated uncollectible pledges Donor designated
$
Total campaign results
Temporarily Restricted
1,238,691 $ (88,642) (170,390) 979,659
Other campaign Investment income Trust income Donations Corporate sponsorships Grant income In-kind revenue Miscellaneous income Net assets released from restrictions Total Revenues and Other Support
Revenues Over (Under) Expenses Indirect cost recovery Change in value of beneficial interest in a perpetual trust and endowments
Increase (Decrease) in Net Assets Net assets at beginning of year, as previously stated Reclassification (See Note O) Net assets at beginning of year, as restated
1,238,691 (88,642) (170,390)
-
177,705 7,849 12,863 5,700 16,850 263,565 4,010 4,569 1,472,770
-
-
1,186,135 105,605 152,674 1,444,414
(10,514)
38,870
-
28,356
11,820
-
-
11,820
11,820
-
33,660 33,660
33,660 45,480
1,306
38,870
33,660
73,836
526,978 (379,754) 147,224
258,309 258,309
1,180,596 1,180,596
235,208 (196,338) 38,870
776,369
$
186,094
See accompanying independent auditors' report and notes to financial statements. 4
$
979,659
395,309 379,754 775,063
Net Assets at End of Year $
-
Total
-
1,186,135 105,605 152,674 1,444,414
Total Expenses
$
-
177,705 7,849 12,863 5,700 16,850 28,357 4,010 4,569 196,338 1,433,900
Expenses Program services Management and general Fundraising
-
Permanently Restricted
$
291,969
$
1,254,432
Statement of Activities
United Way of York County, Inc. For the Year Ended December 31, 2012 Unrestricted Revenues and Other Support Campaign results: Local campaign Estimated uncollectible pledges Donor designated
$
Total campaign results
202,808 202,808
Other campaign Investment income Trust income Corporate sponsorships Grant income In-kind revenue Miscellaneous income Net assets released from restrictions
8,100 10,447 15,050 149,213 2,232 1,110 843,088
Total Revenues and Other Support
Temporarily Restricted
$
1,232,048
Expenses Program services Management and general Fundraising
1,082,227 125,319 127,834 1,335,380
Total Expenses Revenues Over (Under) Expenses
Net assets at beginning of year Net Assets at End of Year $
$
1,317,869 24,177 (180,980) 1,161,066
-
135,500 8,100 10,447 15,050 242,705 2,232 1,110 -
344,162
-
1,576,210
-
1,082,227 125,319 127,834 1,335,380
-
240,830
14,772
14,772
-
(103,332)
344,162
14,772
255,602
498,641
182,816
243,537
924,994
395,309
$
526,978
See accompanying independent auditors' report and notes to financial statements. 5
-
Total
135,500 93,492 (843,088)
344,162
-
Increase (Decrease) in Net Assets
1,115,061 $ 24,177 (180,980) 958,258
-
(103,332)
Change in value of beneficial interest in perpetual trusts and endowment
Permanently Restricted
$
258,309
$
1,180,596
Statement of Functional Expenses
United Way of York County, Inc. For the Year Ended December 31, 2013 Program Services Program Investments and Grant Funded Programs
Volunteer Center
Supporting Services Community Impact
Management and General
Total
Fundraising
Total
Personnel expenses: Salaries Payroll taxes and benefits
$
64,235 18,627
$
24,842 9,035
Total personnel expenses
82,862
33,877
Community investment expenses Office and photocopy Postage Marketing and communication Travel Publications and periodicals Memberships UWW dues Staff and volunteer development Contracted services Special events Campaign materials and expenses Loaned executive program Third party processing fees Professional fees In-kind expenses Miscellaneous and interest Rent Cleaning and maintenance Telephone Electricity and heat
817,882 3,960 -
12,030 1,827 585 321 2,871 500 1,631 55 3,002 1,003 450 927
New equipment and repairs Technology contracts Commercial insurance
-
Expenses before depreciation
904,704
Depreciation Total Expenses
$
904,704
$
$
124,784 34,594
$
159,378
213,861 62,256
$
276,117 829,912 6,923 2,955 2,092 8,213 690 7,970 353 4,800 1,321 3,960 (50) 14,666 4,984 2,213 4,562
5,096 2,370 1,771 5,342 190 6,339 298 4,800 1,321 (50) 11,664 3,981 1,763 3,635
62,204 15,093
$
73,651 21,057
$
349,716 98,406
77,297
94,708
448,122
1,462 1,253 367 35 568 1,495 1,962 1,034 451 10,500 50 531 3,611 1,183 537 1,106
2,157 3,324 1,458 3,746 228 2,716 1,545 253 1,157 10,128 6,331 10,769 4,997 1,673 749 1,545
829,912 10,542 7,532 3,917 11,994 796 2,185 12,648 2,932 5,504 2,478 10,128 6,331 10,769 10,500 4,010 481 23,274 7,840 3,499 7,213
(1,295) 794 677
799 1,138 933
1,215 5,129 4,353
393 649 561
1,318 2,548 2,182
1,711 3,197 2,743
60,682
213,946
1,179,332
103,618
150,354
1,433,304
1,393
5,410
6,803
1,987
2,320
11,110
62,075
$
219,356
See accompanying independent auditors' report and notes to financial statements. 6
$
1,186,135
$
105,605
$
152,674
$
1,444,414
Statement of Functional Expenses
United Way of York County, Inc. For the Year Ended December 31, 2012 Program Services Program Investments and Grant Funded Programs
Volunteer Center
Supporting Services Community Impact
Management and General
Total
Fundraising
Total
Personnel expenses: Salaries Payroll taxes and benefits
$
17,356 7,081
$
19,193 4,318
$
129,338 33,556
$
165,887 44,955
$
70,047 17,280
$
69,783 21,332
$
305,717 83,567
Total personnel expenses
24,437
23,511
162,894
210,842
87,327
91,115
389,284
Community investment expenses Office and photocopy Postage Marketing and communication Travel Publications and periodicals Memberships UWW dues Staff and volunteer development Contracted services Special events Campaign materials and expenses Loaned executive program Third party processing fees Professional fees In-kind expenses Miscellaneous and interest Rent Cleaning and maintenance Telephone Electricity and heat
800,166 342 2,527 2,163 1,179 155 2,172 2,280 396 492 878
813 467 401 1,704 18 104 1,893 5 66 905 766 58 282
3,029 827 664 4,932 165 414 5,515 2,313 1,928 93 10,888 4,001 1,712 2,898
800,166 4,184 1,294 1,065 9,163 183 518 7,408 4,481 3,173 155 2,172 93 14,073 5,163 2,262 4,058
5,851 1,240 408 375 1,052 2,134 1,608 291 855 10,763 234 3,666 861 592 1,335
2,284 1,144 622 2,208 67 286 3,392 945 166 1,550 11,344 6,388 (7,511) 60 5,535 2,064 877 1,523
800,166 12,319 3,678 2,095 11,371 625 1,856 12,934 7,034 3,630 2,560 11,344 6,388 (7,511) 10,763 2,232 327 23,274 8,088 3,731 6,916
2,893 -
234 -
101 1,279 -
335 4,172 -
182 828 4,013
292 1,092 -
809 6,092 4,013
840,080
31,227
203,653
1,074,960
123,615
125,443
1,324,018
2,048
5,219
7,267
1,704
2,391
11,362
New equipment and repairs Technology contracts Commercial insurance Expenses before depreciation Depreciation Total Expenses
$
840,080
$
33,275
$
208,872
See accompanying independent auditors' report and notes to financial statements. Certain amounts have been reclassified for comparative purposes. 7
$
1,082,227
$
125,319
$
127,834
$
1,335,380
Statements of Cash Flows
United Way of York County, Inc. For the Years Ended December 31, 2013 and 2012 2013 Operating Activities Increase (Decrease) in net assets Adjustments to reconcile change in net assets to net cash provided (used) by operating activities: Depreciation Change in value of beneficial interest in perpetual trusts Change in allowance for doubtful accounts (Increase) Decrease in operating assets: Pledges receivable Accounts receivable Prepaid expenses Increase (Decrease) in operating liabilities: Accounts payable Accrued expenses Designations payable Program investments payable
$
73,836
2012 $
255,602
11,110 (33,659) 42,521
11,362 (14,772) (98,123)
83,680 (21,214) (104)
(18,180) (5,895) 52
1,544 (4,766) (25,264) 12,244
8,959 1,286 (6,694) (151,144)
139,928
(17,547)
(3,336) (16,307)
15,737 (2,392)
(19,643)
13,345
14,000 (1,362)
(1,733)
Net Cash Provided (Used) by Financing Activities
12,638
(1,733)
Net Increase (Decrease) in Cash
132,923
(5,935)
Net Cash Provided (Used) by Operating Activities Investing Activities Sales (purchases) of investments, net Purchases of property and equipment Net Cash Provided (Used) by Investing Activities Financing Activities Proceeds from long-term borrowings Repayment of long-term borrowings
Cash at beginning of year
401,877
395,942 Cash at End of Year $
See accompanying independent auditors' report and notes to financial statements. 8
528,865
$
395,942
Notes to Financial Statements
United Way of York County, Inc. Note A - Summary of Significant Accounting Policies Nature of Activities United Way of York County, Inc. (the “Organization�) is a non-profit corporation founded in 1986 exempt from income tax under section 501(c)(3) of the Internal Revenue Code. The mission of the United Way of York County, Inc. is to strengthen community by bringing people and resources together to effect long lasting changes that improve lives. The Organization is supported primarily through donations from individuals and businesses in the York County community solicited through yearly campaigns and is governed by a volunteer board of directors. Approximately 80% and 82% of the Organization’s support for the years ended December 31, 2013 and 2012, respectively, came from campaign donations. The Organization also makes applications for grant funding from governmental agencies and private foundations. Basis of Presentation The accompanying financial statements include statements of financial position, statements of activities, statements of functional expenses, and statements of cash flows. The Organization is required to report information regarding its financial position and activities according to three classes of net assets as follows: Unrestricted - Represents those resources that have no donor-imposed restrictions, neither permanently nor temporarily, and can be used for any purpose designated by the Organization's governing board. Temporarily Restricted - Represents resources and the portion of net assets resulting from contributions and other inflows of assets whose use by the Organization is limited by donorimposed stipulations that either expire by passage of time or can be fulfilled and removed by actions of the Organization pursuant to those stipulations. Permanently Restricted - Represents resources and the portion of net assets resulting from contributions and other inflows of assets whose use is limited by donor-imposed stipulations that neither expire by passage of time nor can be fulfilled or otherwise removed by action of the Organization. Contributions Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence and/or nature of any donor restrictions.
9
Notes to Financial Statements - Continued
United Way of York County, Inc. Note A - Summary of Significant Accounting Policies - Continued Revenue and Expense Recognition The financial statements of the Organization have been prepared on the accrual basis of accounting. Revenues received are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and/or nature of any donor restrictions. Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized. All other donor restricted support is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a restriction expires (that is, when a stipulated time restriction ends or 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. Expenses are recognized as incurred. Expense amounts are allocated among the various programs and supporting services on both directly and in accordance with a cost allocation basis. Donated Services and Materials Amounts are reported in the financial statements for voluntary donations of services when those services create or enhance non-financial assets or require specialized skills provided by individuals possessing those skills and which typically would be purchased if not provided by donation. Donated materials are recorded at the fair value at the date of the gift. Various skilled labor and materials are donated to the Organization each year. The value of those services and materials was $4,010 and $2,232 for the years ended December 31, 2013 and 2012, respectively. Skilled labor donated services were mostly used for the Days of Caring. Estimates The preparation of financial statements in conformity with 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. Cash and Cash Equivalents For purposes of the statements of cash flows, the Organization considers all unrestricted highly liquid investments with an initial maturity of three months or less to be cash equivalents. The Organization maintains cash with local banks, and at times, balances may exceed the Federal Deposit Insurance Corporation limit of $250,000 per depositor. The uninsured balance at December 31, 2013 was $53,594 and none as of December 31, 2012. The Organization has not experienced any losses in such accounts. Grants and Accounts Receivable Other receivables consist mostly of grants receivable from the State of Maine and other organizations and charges for services from other organizations. The Organization expects to collect these amounts in full; therefore, no allowance for doubtful accounts has been established for other receivables as of December 31, 2013 and 2012. 10
Notes to Financial Statements - Continued
United Way of York County, Inc. Note A - Summary of Significant Accounting Policies - Continued Pledges Receivable Pledges are recorded in the financial statements upon receipt of pledge information from the campaigns. The Organization honors designations made to other organizations. All pledges that are expected to be collected within one year are recorded at their net realizable value; this is achieved by creating allowances for estimated uncollectible pledges and for estimated expenses incurred by others. The Organization uses the allowance method to determine uncollectible pledges receivable. An allowance for doubtful accounts is booked in the initial campaign year based upon management estimates of current economic factors applied to gross campaign, excluding donor designations. This allowance is revisited and recalculated as deemed necessary by management as of December 31 of the collection year based on receipts through the collection year and the first quarter of the following year. Investments The Organization reports investments in marketable securities with readily determinable fair values and all investments in debt securities at their fair values in the statement of financial position. Unrealized gains and losses are included in the change in net assets, in the accompanying statement of activities. Property and Equipment Acquisitions of buildings and equipment are presented as assets of the Organization. Fixed assets acquired with unrestricted resources of the Organization are capitalized at cost; assets donated to the Organization are capitalized at fair market value. Assets are depreciated or amortized on a straight-line basis over their estimated useful lives ranging from 3 to 8 years. Expenditures for repairs and maintenance are expended when incurred and betterments are capitalized. Assets sold or otherwise disposed of are removed from the accounts, along with the related depreciation allowances, and any gain or loss is recognized. Depreciation expense for the years ended December 31, 2013 and 2012 was $11,110 and $11,362, respectively. Deferred Revenue Resources received in exchange transactions are recognized as deferred revenue to the extent that the earnings process has not been completed. These resources are recorded as unrestricted revenues when the related obligations have been satisfied. Expense Allocation Expenses are charged to each program based on direct expenditures incurred. Any expenditures not directly chargeable are allocated to a program based on related salary expenses or other appropriate basis. Advertising Expenses Advertising costs are expensed as incurred. Advertising expense was $3,917 and $2,095 for the years ended December 31, 2013 and 2012, respectively. 11
Notes to Financial Statements - Continued
United Way of York County, Inc. Note A - Summary of Significant Accounting Policies - Continued Comparative Data The financial statements include prior year information. Such information was not audited by the auditor of the current year and should be read in conjunction with the Organization’s financial statements for the year ended December 31, 2012, from which the information was derived. Some prior year balances have been reclassified to conform with the current year presentation.
Note B - Certificates of Deposit The cash and cash equivalents on December 31, 2013 and 2012 include certificates of deposit with values of $107,953 and $127,034, respectively. The certificates of deposit held at December 31, 2013 have maturity dates ranging from September 2014 to June 2018. Any penalties for early withdrawal would not have a material effect on the financial statements.
Note C - Pledges Receivable Pledges receivable as of December 31, 2013 and 2012 are as follows: 2012
2013 Receivable in less than one year Receivable in one to five years Less allowance for doubtful accounts Total pledges receivable, net of allowance
$ 1,196,472 137,023 (115,315) $ 1,218,180
$ 1,417,175 --(72,794) $ 1,344,381
Note D - Investments and Beneficial Interest in Assets Held by Others Investments and beneficial interest in assets held by others consist of mutual funds, stocks, bonds and other assets and are stated at fair value as of December 31, 2013 and 2012 as follows: 2012
2013 Mutual funds - balanced fund Equities Beneficial interests in assets held by others
$
$
12
32,427 --267,656 300,083
$
$
27,872 1,219 233,997 263,088
Notes to Financial Statements - Continued
United Way of York County, Inc. Note D - Investments and Beneficial Interest in Assets Held by Others - Continued Investment returns from these investments for the years ended December 31 are summarized as follows: 2013 Interest and dividend income Net realized and unrealized gains (losses) on investments
$
3,349 38,160 41,509
$
2012 $ $
6,411 16,461 22,872
Investments and beneficial interest in assets held by others are reported as: 2012
2013 Short term investments Assets restricted for permanent endowment Beneficial interest in assets held by others
$
$
--32,427 267,656 300,083
$
$
1,219 27,872 233,997 263,088
Investment income is recorded net of investment fees. Note E - Fair Value Measurements The Organization applies a framework for measuring fair values under generally accepted accounting principles which applies to all financial instruments that are measured and reported at fair value. The framework for measuring fair value of financial assets and liabilities includes a hierarchy of three levels for observable independent market inputs and unobservable market assumptions. A description of the inputs used in the valuation of assets and liabilities under this hierarchy is as follows: Level 1 – Quoted prices are available in active markets, such as the New York or American Stock Exchange markets, for identical investments as of the reporting date. Level 1 also includes U.S. Treasury and federal agency securities and mortgage-backed securities traded by brokers or dealers in active markets. Level 2 – Pricing inputs are observable for the investments, either directly or indirectly, as of the reporting date, but are not the same as those used in Level 1. Fair values are obtained from third party pricing services that may use models or other valuation methodologies to derive market value. These may be investments traded in less active dealer or broker markets. Level 3 – Pricing inputs are unobservable for investments and valuations are derived from other methodologies not based on market exchange, dealer or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets and liabilities. The types of investments in this category would generally include debt and equity securities issued by private entities and partnerships. 13
Notes to Financial Statements - Continued
United Way of York County, Inc. Note E - Fair Value Measurements - Continued The following summarizes fair values of investment assets by levels within the fair value hierarchy at December 31, 2013:
Mutual funds - balanced fund Beneficial interests in assets held by others Total investments
$
$
Level 2 Level 1 32,427 $ ----32,427 $
267,656 267,656
$
Level 3 ---
$
-----
$
Total 32,427
$
267,656 300,083
The following summarizes fair values of investment assets by levels within the fair value hierarchy at December 31, 2012:
Mutual funds - balanced fund Equities Beneficial interests in assets held by others Total investments
$
$
Level 1 Level 2 27,872 $ --1,219 ----29,091 $
233,997 233,997
$
$
Level 3 ---------
$
$
Total 27,872 1,219 233,997 263,088
Note F - Endowment Fund The Organization has endowment funds established for a number of purposes. 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 funds are recorded at fair value and the principal is permanently or temporarily restricted depending on the intention of the donor. Earnings and losses on these funds are considered temporarily restricted or unrestricted depending on donor intentions and are recorded as such. The State of Maine has adopted the Uniform Prudent Management of Institutional Funds Act of 2006 (UPMIFA). In accordance with UPMIFA the Organization classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the Organization in a manner consistent with the standard of prudence prescribed by UPMIFA.
14
Notes to Financial Statements - Continued
United Way of York County, Inc. Note F - Endowment Fund - Continued In accordance with UPMIFA, the Organization considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds: (1) the duration and preservation of the various funds, (2) the purposes of the donor-restricted endowment funds, (3) general economic conditions, (4) the possible effect of inflation and deflation, (5) the expected total return from income and the appreciation of investments, (6) other resources of the Organization, and (7) the Organization’s investment policies. The Organization has not adopted a formal investment policy. Currently, the endowment is invested with a mutual fund company and the Board of Directors evaluates the fund’s performance annually and then determines if any changes need to be made. The Organization has not adopted a formal spending policy. Currently, all earnings and losses on the donor-restricted endowment are considered unrestricted upon appropriation. Endowment net asset composition by type of fund is as follows at December 31, 2013:
Board-designated endowment funds Donor-restricted endowment funds Total
Temporarily Unrestricted Restricted $ 8,115 $ ------$ 8,115 $ ---
Permanently Restricted $ --24,312 $ 24,312
Total 8,115 24,312 $ 32,427 $
Changes in endowment net assets for the year ended December 31, 2013 are as follows:
Unrestricted Endowment, beginning of year $ Contributions received Investment return: Investment income, net Realized and unrealized gains (losses) Total investment return Appropriation of endowment assets for expenditure Transfers to unrestricted Endowment, end of year
$
3,560 ---
Temporarily Restricted
Permanently Restricted
$
$
-------
--4,555 8,115 $
15
----3,644 911 4,555
--(4,555) ---
$
Total
24,312 $ ---
27,872 ---
-------
3,644 911 4,555
----24,312 $
----32,427
Notes to Financial Statements - Continued
United Way of York County, Inc. Note F - Endowment Fund - Continued Endowment net asset composition by type of fund is as follows at December 31, 2012:
Board-designated endowment funds Donor-restricted endowment funds Total Funds
Temporarily Unrestricted Restricted $ 3,560 $ ------$ 3,560 $ ---
Permanently Restricted $ --24,312 $ 24,312
Total $ 3,560 24,312 $ 27,872
Changes in endowment net assets for the year ended December 31, 2012 are as follows:
Unrestricted Endowment, beginning of year $ Contributions received Investment return: Investment income, net Realized and unrealized gains (losses) Total investment return Appropriation of endowment assets for expenditure Transfers to unrestricted Endowment, end of year $
734 ---
Temporarily Restricted
Permanently Restricted
$
$
--------2,826 3,560 $
-----
24,312 ---
Total $
25,046 ---
426 2,400 2,826
-------
426 2,400 2,826
--(2,826) ---
----24,312
----27,872
$
$
Note G - Property and Equipment Property and equipment consist of the following as of December 31: 2012
2013 Property and equipment Less accumulated depreciation
$ $
16
73,521 49,457 24,064
$ $
102,382 81,452 20,930
Notes to Financial Statements - Continued
United Way of York County, Inc. Note H - Board Designated Net Assets Board designated net assets consist of the following as of December 31: 2013 Youth Financial Education Fund Earnings on Permanently Restricted
$
10,000 8,115 18,115
$
2012 $ $
10,000 --10,000
Note I - Temporarily Restricted Net Assets Temporarily restricted net assets consist of the following as of December 31: 2013 Day of Caring Service Enterprise 2013 Strategic Planning Volunteer Readers Volunteer Solutions Coordinator Youth Financial Education Fund MSAD 60 (Nellie Mae) Partners for a Hunger Free York County Pledges receivable Allowance for doubtful accounts Designations and program investments payable Fundraising fees receivable Third party processing fees Designations to be paid directly by other agencies
$
$ See Note O for reclassification of temporarily restricted net assets.
17
--10,700 --7,652 2,100 30,810 806 134,026 ------------186,094
2012 $
250 --7,000 ----27,250 19,941 72,783 1,417,175 (72,794) (842,209) 19,100 (17,220) (104,298) $ 526,978
Notes to Financial Statements - Continued
United Way of York County, Inc. Note J - Permanently Restricted Net Assets The Organization is the beneficiary under two irrevocable perpetual trusts. These funds are held and controlled by HM Payson, as trustee. The Organization is entitled to 16.67% and 10% of the fair value of the Levasseur and Ross trusts, respectively. Trust principal is permanently restricted, and as such the Organization is not permitted to spend the principal of the trusts, nor does it have control over the investment of the trust assets. Annual distributions from the trusts are reported as trust income and amounted to $12,863 and $10,447 in 2013 and 2012, respectively. The Organization also maintains an endowment in which principal must be maintained in perpetuity and earnings are considered unrestricted. Permanently restricted net assets consist of the following as of December 31: 2013 Levasseur Trust Ross Trust UWYC Endowment Fund
$
$
74,027 193,630 24,312 291,969
2012 $
$
47,300 186,697 24,312 258,309
Note K - Retirement Plan The Organization provides a defined contribution retirement plan under section 403(b) of the Internal Revenue Code. The plan is funded exclusively through the purchase of annuity contracts. All employees who work a minimum of twenty hours per week may contribute to the plan through salary reduction. After one year of service, the Organization will contribute at a rate equal to a percentage of their compensation which is determined by the Board annually. Organization contributions vest after one year in the plan. The Organization’s contributions for the years ended December 31, 2013 and 2012 amounted to $11,688 and $8,874, respectively.
Note L - Line of Credit The Organization has an operating line of credit with a local bank with a maximum amount available for borrowing of $250,000 with an interest rate at the Wall Street Prime (3.25% at December 31, 2013 and 2012) plus 0.5%. The line renews annually and is unsecured. There was no outstanding balance at December 31, 2013 and 2012.
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Notes to Financial Statements - Continued
United Way of York County, Inc. Note M - Long-Term Liabilities Debt Long-term debt consists of the following: 2012
2013 Note payable to bank with monthly payments of $266, which includes interest of 5.25%. The note matures December 2018 and is secured by a photocopier. Less current portion Long-term debt, net of current portion
$ $
14,000 2,511 11,489
$
-------
$
Required future annual principal payments on long-term debt are as follows: 2014 2015 2016 2017 2018
$
$
2,511 2,648 2,791 2,945 3,105 14,000
Capital Lease Obligation The Organization had a capital lease obligation that was paid off in 2013 when the Organization purchased a new copier and the remaining balance on the copier acquired through the capital lease obligation was satisfied by the copier company. 2013 Capital lease obligation - copier lease contract
$
Less current portion Capital lease obligation, net of current portion
19
$
2012 -------
$ $
3,425 1,828 1,597
Notes to Financial Statements - Continued
United Way of York County, Inc. Note N - Income Taxes The United Way of York County, Inc. qualifies as an organization exempt from federal income tax under Internal Revenue Code Section 501(c)(3) and files a Form 990 tax return. With few exceptions, the Organization is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2010 due to the statute of limitations. The Organization has adopted the provisions of FASB ACS, Income Taxes. Management of the Organization believes it has no material uncertain tax positions and, accordingly it will not recognize any liability for unrecognized tax benefits.
Note O - Net Asset Reclassifications During the year ended December 31, 2013, the following reclassifications were made between unrestricted net assets and temporarily restricted net assets as of January 1, 2013: To correctly reflect the treatment that the net pledges receivable (after the allowance, designations and program investments payable) is not restricted for future periods, or donor restricted for specific purposes, at December 31, 2012
$
To correct an understatement of the temporarily restricted portion of funds held for the Partners for a Hunger Free York County at December 31, 2012 Total effect on temporarily restricted net assets
(399,754)
20,000
$
(379,754)
Note P - Subsequent Events Management has made an evaluation of subsequent events to and including August 14, 2014, which was the date the financial statements were available to be issued, and determined that any subsequent events that would require recognition or disclosure have been considered in the preparation of the financial statements.
20