Page 1

YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY FINANCIAL REPORT June 30, 2016 and 2015


CONTENTS

PAGE

INDEPENDENT AUDITOR’S REPORT ............................................................................ 1 and 2 CONSOLIDATED FINANCIAL STATEMENTS Consolidated Statements of Financial Position .......................................................................... 3 Consolidated Statements of Activities ............................................................................. 4 and 5 Consolidated Statements of Cash Flows .......................................................................... 6 and 7 Notes to Consolidated Financial Statements ............................................................ 8 through 26 ADDITIONAL INFORMATION INDEPENDENT AUDITOR’S REPORT ON ADDITIONAL INFORMATION ...................... 27 Consolidating Statements of Financial Position ........................................................... 28 and 29 Consolidating Statements of Activities ........................................................................ 30 and 31


ANDERSON ZURMUEHLEN & CO., P.C. • CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS

402 NORTH BROADWAY,4th FLOOR • P.O. BOX 20435 • BILLINGS, MONTANA 59104-0435 TEL: 406.245.5136 • FAX: 406.245.6056 • WEB: www.azworld.com

M EM BER : A M ER IC A N I N STI TUTE O F C ERTI FI ED P UBLI C A C C O UN TA N TS

INDEPENDENT AUDITOR’S REPORT

To the Board of Directors of Yellowstone Boys and Girls Ranch Foundation, Inc., and Subsidiary Billings, Montana We have audited the accompanying consolidated financial statements of Yellowstone Boys and Girls Ranch Foundation, Inc. (a non-profit corporation) and its subsidiary, which comprise the consolidated statements of financial position as of June 30, 2016 and 2015, and the related consolidated statements of activities and cash flows for the years then ended, and the related notes to the consolidated financial statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these consolidated 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 consolidated 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 consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated 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 consolidated 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 consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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ANDERSON ZURMUEHLEN & CO., P.C. CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS

Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Yellowstone Boys and Girls Ranch Foundation, Inc. and subsidiary as of June 30, 2016 and 2015, and the changes in their net assets and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Billings, Montana November 15, 2016

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CONSOLIDATED FINANCIAL STATEMENTS


YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF FINANCIAL POSITION June 30, 2016 and 2015

2016

ASSETS Cash and cash equivalents Restricted cash and cash equivalents Investment interest receivable Investments - securities Investments - real estate Investments - other Notes and contracts receivable Other receivable Property and equipment, net Other assets Investments held in trusts Total assets

$

2015

2,045,802 30,555 56,633,994 2,822,009 597,592 1,027,597 6,674,827 97,136 54,367 31,729,264 $ 101,713,143

$

275,478 915,142 43,868 59,485,339 1,843,434 585,822 345,357 118,346 44,355 28,576,257 $ 92,233,398

$

$

LIABILITIES AND NET ASSETS LIABILITIES Checks written in excess of bank balances Accounts payable and accrued expenses Long term grants Annuity obligations Trust obligations Total liabilities NET ASSETS Unrestricted: Trusts Other Total unrestricted

538,269 53,590 1,887,063 7,793,156 19,264,411 29,536,489

36,914 8,067,530 17,610,007 25,714,451

2,820,841 16,814,631 19,635,472

2,756,696 10,850,677 13,607,373

Temporarily restricted

10,281,526

11,967,969

Permanently restricted: Trusts Other Total permanently restricted

9,644,009 32,615,647 42,259,656

8,209,554 32,734,051 40,943,605

72,176,654

66,518,947

$ 101,713,143

$ 92,233,398

Total net assets Total liabilities and net assets

The Notes to Consolidated Financial Statements are an integral part of these statements. -3-


YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY CONSOLIDATED STATEMENT OF ACTIVITIES Year Ended June 30, 2016

REVENUES AND SUPPORT Contributions Legacies and bequests Gift value of annuities Gift value of trusts Investment loss Royalty income Grants from not for profits Other revenues Total revenues and support NET ASSETS RELEASED FROM RESTRICTIONS Satisfaction of program restrictions Appropriation of endowment earnings Net assets permanently restricted EXPENSES Program grants Deferred giving program General and administrative Fundraising Total expenses OTHER CHANGES IN NET ASSETS Change in value of split-interest agreements - annuities Change in value of split-interest agreements - trusts

Temporarily

Permanently

Restricted

Restricted

Unrestricted

$

7,488,475 3,274,654 72,024 182,126 (116,804) 130,619 150,766 20,215 11,202,075

453,076 490,216 943,292 4,236,793 374,508 825,081 358,094 5,794,476

$

47,786 (801,050) 80,400 (672,864)

(453,076) (491,694) (68,809) (1,013,579) -

$

Totals

2,485 6,703 172,049 1,073,423 1,254,660

$

7,538,746 3,281,357 244,073 1,255,549 (917,854) 211,019 150,766 20,215 11,783,871

1,478 68,809 70,287

-

-

4,236,793 374,508 825,081 358,094 5,794,476

(204,811)

-

(533,264)

(738,075)

(117,981) (322,792)

-

524,368 (8,896)

406,387 (331,688)

Change in net assets

6,028,099

(1,686,443)

1,316,051

5,657,707

NET ASSETS, beginning of year

13,607,373

11,967,969

40,943,605

66,518,947

$ 19,635,472

$ 10,281,526

$ 42,259,656

$ 72,176,654

NET ASSETS, end of year

The Notes to Consolidated Financial Statements are an integral part of this statement. -4-


YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY CONSOLIDATED STATEMENT OF ACTIVITIES Year Ended June 30, 2015

REVENUES AND SUPPORT Contributions Legacies and bequests Life Estates Gift value of annuities Gift value of trusts Investment income Royalty income Grants from Not For Profits Other revenues Total revenues and support NET ASSETS RELEASED FROM RESTRICTIONS Satisfaction of program restrictions EXPENSES Program grants Deferred giving program General and administrative Fundraising Total expenses OTHER CHANGES IN NET ASSETS Change in value of split-interest agreements - annuities Change in value of split-interest agreements - trusts Change in net assets NET ASSETS, beginning of year NET ASSETS, end of year

Temporarily

Permanently

Restricted

Restricted

Unrestricted

$

564,408 394,268 328,350 4,057 153,227 53,601 296,552 766,394 8,050 2,568,907

331,515 2,090,183 355,533 754,608 355,990 3,556,314

$

1,077,688 1,474,991 204,475 1,178 2,758,332

(331,515) -

$

Totals

240 145,960 685,875 509,386 1,341,461

$

1,642,336 540,228 1,014,225 513,443 153,227 1,528,592 501,027 767,572 8,050 6,668,700

-

-

-

2,090,183 355,533 754,608 355,990 3,556,314

(85,380)

-

(907,407)

(992,787)

(16,390) (101,770)

-

(410,061) (1,317,468)

(426,451) (1,419,238)

(757,662)

2,426,817

23,993

1,693,148

14,365,035

9,541,152

40,919,612

64,825,799

$ 13,607,373

$ 11,967,969

$ 40,943,605

$ 66,518,947

The Notes to Consolidated Financial Statements are an integral part of this statement. -5-


YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS Years Ended June 30, 2016 and 2015

CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets Adjustments to reconcile change in net assets to net cash flows from operating activities: Depreciation Unrealized losses on investments, net Realized (gains) losses on investments, net Contributions of real estate and mineral rights Contributions of other receivables Change in value of split interest agreements Contributions restricted for long-term purposes: Contributions, legacies and bequests Gift value of annuities Life estates Gift value of trusts Changes in assets and liabilities: Investment interest receivable Other assets Checks written in excess of bank balances Accounts payable and accrued expenses Long term grants payable Net cash flows from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from (purchases of) investments, net Payments received on notes and contracts receivable Loans made on notes receivable Purchases of property and equipment Net cash flows from investing activities

2016 $

5,657,707

2015 $ 1,693,148

29,125 955,052 1,382,580 (1,237,500) (6,674,827) 331,688

27,132 2,785,443 (2,766,907) (1,522,244) 1,419,238

(9,188) (172,049) (1,073,423)

(146,200) (509,386) (685,875) -

13,313 (10,012) 538,269 16,676 1,887,063 1,634,474

(1,760) (7,679) 2,985 287,895

1,656,715 40,574 (722,814) (7,915) 966,560

642,185 268,508 (31,295) 879,398

The Notes to Consolidated Financial Statements are an integral part of these statements. -6-


YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) Years Ended June 30, 2016 and 2015

2016

CASH FLOWS FROM FINANCING ACTIVITIES Contributions restricted for long-term purposes: Contributions, legacies and bequests Gift value of annuities Gift value of trusts Trusts and annuities obligation payments Trusts distributions to remaindermen Net cash flows from financing activities

2015

9,188 172,049 1,073,423 (2,926,904) (73,608) (1,745,852)

Net changes in cash and cash equivalents Cash and cash equivalents, beginning of year

146,200 509,386 (2,966,811) (555,834) (2,867,059)

855,182

(1,699,766)

1,190,620

2,890,386

Cash and cash equivalents, end of year

$

2,045,802

$

1,190,620

Shown in the statement of financial position as: Cash and cash equivalents Restricted cash and cash equivalents

$

$

$

2,045,802 2,045,802

$

275,478 915,142 1,190,620

$

-

$

685,875

NONCASH TRANSACTIONS Life estates for long-term purposes

The Notes to Consolidated Financial Statements are an integral part of these statements. -7-


YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2016 and 2015

NOTE 1.

SIGNIFICANT ACCOUNTING POLICIES

Organization and Nature of Activities Yellowstone Boys and Girls Ranch Foundation, Inc. (the Foundation) is a non-profit public benefit corporation. The mission of the Foundation is to support, promote, advance and enable charitable, religious and educational organizations and programs whose services primarily benefit youth and adults with special needs. The Foundation primarily directs its support to the Yellowstone Boys and Girls Ranch which provides residential and community based care and treatment for emotionally troubled youth and K-12 education at the Yellowstone Academy. The Foundation’s main source of support is contributions and investment income. In February 2007, the Foundation formed a limited liability company, Yellowstone Foundation Properties, LLC. This company holds certain real estate donated to or purchased by the Foundation. Basis of Consolidation The accompanying consolidated financial statements include the accounts of the Foundation and its wholly-owned subsidiary, Yellowstone Foundation Properties LLC. Significant intercompany transactions and balances have been eliminated in consolidation. Basis of Presentation The accompanying statements are presented in accordance with accounting principles generally accepted in the United States of America (GAAP), as codified by the Financial Accounting Standards Board. Basis of Accounting The Foundation reports gifts of cash and other assets as restricted support if they are received with donor stipulations that limit the use of the donated assets. Accordingly, net assets of the Foundation and changes therein are classified and reported as follows: 

Unrestricted Net AssetsNet assets that are not subject to donor-imposed stipulations and donor restricted contributions whose restrictions are met in the same reporting period.

Temporarily Restricted Net AssetsNet assets subject to donor-imposed stipulations that may or will be met either by actions of the Foundation and/or the passage of time.

Permanently Restricted Net AssetsNet assets subject to donor-imposed stipulations that they be maintained permanently by the Foundation. The income earned from the investment of these assets is available for use by the Foundation in accordance with donor restrictions.

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YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) June 30, 2016 and 2015

NOTE 1.

SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Accounting (Continued) Revenues are reported as increases in unrestricted net assets unless use of the related assets is limited by donor-imposed restrictions. Expenses are reported as decreases in unrestricted net assets. Gains and losses on investments and other assets are reported as increases or decreases in unrestricted net assets unless their use is restricted by explicit donor stipulation or by law. Expirations of temporary restrictions on net assets (i.e., the donor-stipulated purpose has been fulfilled and/or the stipulated time period has elapsed) are reported as reclassifications between the applicable classes of net assets. Contributions, including unconditional promises to give, are recognized as revenues in the period received. Promises to give that are scheduled to be received more than one year after the statement of financial position date are shown as increases in temporarily or permanently restricted net assets and are reclassified to unrestricted net assets when the cash is received and any purpose restrictions are met. Conditional promises to give are not recognized until they become unconditional, that is when the conditions on which they depend are substantially met. Contributions of assets other than cash are recorded at their estimated fair value on the date contributed. It is the policy of the Foundation to report gifts of land, buildings, and equipment as unrestricted support unless explicit donor stipulations specify how the donated assets must be used. Gifts of long-lived assets with explicit restrictions specifying how the assets are to be used and gifts of cash or other assets that must be used to acquire long-lived assets are recorded as restricted support. Absent explicit donor stipulations about how long those long-lived assets must be maintained, the Foundation reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in service. Fair Value Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs, using the market value approach. GAAP establishes a fair value hierarchy, which prioritizes the valuation inputs into three broad levels: Level 1: Quoted market prices available through public exchange venues for identical assets or liabilities. Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs for the asset or liability due to little or no market activity at the measurement date. -9-


YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) June 30, 2016 and 2015

NOTE 1.

SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Fair Value (Continued) The Foundation’s policy for determining the timing of significant transfers between Levels 1 and 2 is at the end of the reporting period. There were no transfers for the years ended June 30, 2016 and 2015. Following is a description of the valuation methodologies used for investments measured at fair value. There have been no changes in the methodologies used at June 30, 2016 and 2015. Equity securities: Common stocks are valued at the closing price reported in the active market in which the individual securities are traded. Mutual funds:

Valued at market traded price of shares.

Debt securities:

Valued at market traded prices.

Real estate:

Valued at the lesser of most recent appraised value or listed sale value.

Alternative investments: Valued at the net asset value (NAV) of shares held at year-end. Commercial annuities:

Valued at cash surrender value.

The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Foundation believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Cash and Cash Equivalents The Foundation’s cash balances in most of its bank accounts are swept to an institutional money market fund daily. For purposes of reporting cash flows, the Foundation considers all highly liquid investments with original maturities of three months or less to be cash equivalents. FDIC coverage is limited to $250,000 per account holder. From time to time, certain bank accounts that are subject to limited FDIC coverage exceed their insured limits. Concentrations of Credit Risk The Foundation attempts to diversify its investment holdings across various industries as well as in various types of investment holdings. At June 30, 2016 and 2015, the Foundation held investments in marketable securities of corporations, primarily in the following industries: capital and industrial goods, financial institutions, technology, and energy. The investment in marketable debt securities includes bonds issued by corporations and the United States Treasury and shares held in diversified bond funds.

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YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) June 30, 2016 and 2015

NOTE 1.

SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Investments – Securities and Investments Held in Trust Investments are stated at fair value, determined based on quoted market prices (if available), or estimated using quoted market prices for similar securities. Investments are classified within the level of lowest significant input considered in determining fair value. Investments classified within Level 3, whose fair value measurement considers several inputs, may include Level 1 or Level 2 inputs as components of the overall fair value measurement. Unrealized gains and losses are reported with other investment income in the change in net assets in the accompanying statements of activities. Certain investments, such as money market accounts and notes receivable, are stated at historical or amortized cost. Alternative investments include institutional funds, private equity funds, and limited liability companies. Institutional funds are multi-strategy, commingled equity and bond funds. Private equity funds are primarily comprised of investments in limited partnerships. The partnerships generally represent restricted investment securities whose values have been estimated by the managing partner of the partnership in the absence of readily ascertainable market values. Investments – Real Estate Investments in real estate represent real estate received from donors or purchased by the Foundation for investment purposes. Real estate is recorded at its estimated fair value. Fair values are based upon periodic third-party valuations and other periodic inputs, thus, these holdings are categorized as Level 3-valued investments. Realized gains or losses on sales of real estate are recognized upon disposition based on a specific identification basis. Investments – Other Other investments consist of mineral rights, oil royalties, and commercial annuities donated to the Foundation. The donated property is stated at the estimated fair value at the time of donation. Commercial annuities are revalued to cash surrender value at the end of each reporting period. Notes and Contracts Receivable Notes and contracts receivable bear interest at rates ranging from 5% to 7% and are receivable in various monthly, quarterly, and annual payments through 2021. These notes and contracts are primarily from estate assets donated to the Foundation. Management believes these receivables are either collectible or adequately secured. Accordingly, an allowance for doubtful accounts is not deemed necessary as of June 30, 2016 and 2015.

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YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) June 30, 2016 and 2015

NOTE 1.

SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Property and Equipment Property and equipment acquisitions with an original value of at least $500 are recorded at cost, if purchased, or fair market value at date of donation, if donated. Depreciation expense for the years ended June 30, 2016 and 2015, was $29,125 and $27,132, respectively. Property and equipment is depreciated using the straight-line method based on the estimated useful lives of the assets as follows:

Building and improvements Furniture, fixtures, and equipment Computer software

8 - 30 years 4 - 12 years 6 years

Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed Long-lived assets and certain identifiable intangibles are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is determined by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If the carrying amount exceeds the future cash flows, the assets are considered to be impaired and the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceed the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less estimated costs to sell. Split-Interest Agreements The Foundation has entered into split-interest agreements for which the Foundation is the trustee. The Foundation has segregated these assets as separate and distinct funds, independent from other funds and not to be applied to payment of the debts and obligations of the Foundation or any other purpose other than annuity benefits specified in the agreements. Assets are recorded at fair value, when possible. Liabilities incurred in the exchange portion of the agreement are also recognized based on each arrangement’s terms and actuarial assumptions. The liabilities are revalued annually using present value techniques, which factor in actuarial life expectancy tables and Internal Revenue Service discount rates that were in effect at the time the of the original gift. Discount rates range from 1.2% to 10.6%. The following types of agreements are in effect during the years ended June 30, 2016 and 2015: Charitable Gift Annuity Agreements and Charitable Remainder Trusts Under these agreements, the donor contributes assets in exchange for regular distributions to the donor or other beneficiaries, over a period of time, based on life expectancies of the beneficiaries. Distributions are based on the value of the assets contributed and terms specified in the agreement. When the agreement matures, the remaining assets are available for the Foundation’s use, or they are distributed to a separately designated charitable organization.

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YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) June 30, 2016 and 2015

NOTE 1.

SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Split-Interest Agreements (Continued) Charitable Gift Annuity Agreements and Charitable Remainder Trusts (Continued) The difference between the fair value of the assets received and the liability to the donor or other beneficiary is recognized as contribution revenue at the date of inception. During the term of the arrangement, annuity benefits, amortizations, and revaluations in the assets and liabilities are recognized in the accompanying statements of activities as “Changes in value of split-interest agreements and payments to beneficiaries.” These changes are classified as permanently restricted, temporarily restricted, or unrestricted net assets—depending on the classification used when the contribution was recognized initially. Charitable Lead Trusts Under these agreements, the donor transfers assets to the Foundation to hold in trust. The annual distributions from the trust are deemed contributions to either the Foundation, or an unrelated charitable organization. At the end of the specified time, the remaining assets are distributed to the designated beneficiary. Revocable Trusts Under these agreements, the donor transfers assets to the Foundation to hold in trust. The full value of the asset transferred is reported as a liability, as the donor has the legal right to remove such assets from the trust. Legacies and Bequests The Foundation is a named beneficiary in a number of testamentary wills. The value of the Foundation’s interest is unknown until the benefits are received. As a result, benefits received from legacies and bequests are recognized as revenue when the Foundation’s interest becomes irrevocable and unassignable, which is usually at the time the assets are received. Income Tax Matters The Internal Revenue Service has determined that the Foundation is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code. The Foundation is deemed not to be a private foundation. The Foundation and its subsidiary are no longer subject to examinations by federal tax authorities for years before fiscal years ended June 30, 2013. Yellowstone Foundation Properties is a single-member limited liability company; accordingly, it is deemed to be a disregarded entity for income tax purposes, and no provision for income taxes is presented in the accompanying financial statements.

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YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) June 30, 2016 and 2015

NOTE 1.

SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Subsequent Events Management has evaluated subsequent events through November 15, 2016, the date which the financial statements were available for issue.

NOTE 2.

RESTRICTED CASH AND CASH EQUIVALENTS

Restricted cash and cash equivalents as of June 30, 2016 and 2015, include amounts for the following purposes: 2016 Annuity obligations Advised funds Endowments Johnson scholarship fund Yellowstone Foundation Properties, LLC

$

$

- 14 -

634,976 4,287 1,290,627 22,015 93,897 2,045,802

2015 $

$

267,035 41,660 577,729 28,718 915,142


YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) June 30, 2016 and 2015

NOTE 3.

INVESTMENTS – SECURITIES

Investments in securities are comprised of the following: Fair Value as of June 30, 2016 Level 1 Level 3 Total

Cost Money market accounts Certificates of deposit Equity securities: Large cap managed accounts Mutual funds: Allocation - conservative Allocation - world Intermediate bonds Global bonds Non-traditional bond High yield International International - growth Large cap growth Large cap value Real estate investment trust Small cap Bonds: Corporate bond Government agencies Foreign Collateralized mortgage obligations Private equity Alternative investments

$

$

957,286

957,286

- 15 -

$

1,290,774

$

-

$

957,286 1,290,774

17,945,385

-

17,945,385

219,250 747,678 834,595 614,108 82,734 498,639 5,841,163 701,099 3,542,082 3,666,028 35,000 3,268,217

-

219,250 747,678 834,595 614,108 82,734 498,639 5,841,163 701,099 3,542,082 3,666,028 35,000 3,268,217

3,917,889 4,019,622 138,142 1,239,207 $ 48,601,612

1,533,711 5,541,385 7,075,096

3,917,889 4,019,622 138,142 1,239,207 1,533,711 5,541,385 $ 56,633,994

$


YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) June 30, 2016 and 2015

NOTE 3.

INVESTMENTS - SECURITIES (CONTINUED) Fair Value as of June 30, 2015 Level 1 Level 3 Total

Cost Money market accounts Certificates of deposit Equity securities: Large cap managed accounts Mutual funds: Allocation - conservative Allocation - world Commodities/real estate Intermediate bonds Global bonds Non-traditional bond High yield International International - growth Large cap growth Large cap value Real estate investment trust Small cap Bonds: Corporate bond Government agencies Municipal Foreign Collateralized mortgage obligations Private equity Alternative investments

$

$

1,497,272

1,497,272

$

1,064,353

$

-

$

1,497,272 1,064,353

19,009,576

-

19,009,576

162,979 2,553,527 966,510 2,918,915 866,829 503,042 6,450,890 998,923 4,143,179 4,023,520 40,000 3,956,142

-

162,979 2,553,527 966,510 2,918,915 866,829 503,042 6,450,890 998,923 4,143,179 4,023,520 40,000 3,956,142

3,631,948 1,779,280 75,672 318,069 $ 53,463,354

947,639 3,577,074 4,524,713

3,631,948 1,779,280 75,672 318,069 947,639 3,577,074 $ 59,485,339

$

Investments held to satisfy annuity obligations amounted to $9,057,380 and $9,912,904, as of June 30, 2016 and 2015, respectively, and are included in Investments-securities in the accompanying statements of financial position.

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YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) June 30, 2016 and 2015

NOTE 3.

INVESTMENTS - SECURITIES (CONTINUED)

The components of investment income for the years ended June 30, 2016 and 2015, are as follows: 2016

Unrestricted Funds

Interest and dividends Net unrealized gains (losses) Net realized losses

2015

$

107,558 44,715 (269,077) (116,804)

Unrestricted Funds

Interest and dividends Net unrealized losses Net realized gains

NOTE 4.

$

$ $

178,395 (147,578) 22,784 53,601

Temporarily Restricted Funds $

1,312,220 (999,767) (1,113,503) $ (801,050)

Total $

1,419,778 (955,052) (1,382,580) $ (917,854)

Temporarily Restricted Funds $

1,368,733 (2,637,865) 2,744,123 $ 1,474,991

Total $

1,547,128 (2,785,443) 2,766,907 $ 1,528,592

INVESTMENTS – OTHER

Other investments are comprised of the following: 2016 Mineral and oil rights Commercial annuities

$ $

- 17 -

175,500 422,092 597,592

2015 $ $

177,500 408,322 585,822


YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) June 30, 2016 and 2015

NOTE 5.

INVESTMENTS ACTIVITY – LEVEL 3

Investment activity specific to investments valued with Level 3 inputs for the years ended June 30, 2016 and 2015, are reflected in the tables below. Alternative Investments June 30, 2015 Unrealized loss Realized gain (loss) Contributions, issuance, and settlements June 30, 2016

$

$

4,524,713 (45,790) 463 2,595,710 7,075,096

Real Estate $

$

Alternative Investments June 30, 2014 Unrealized losses Realized gain Contributions, issuance, and settlements June 30, 2015

$

$

3,962,897 (548,548) 457,232 653,132 4,524,713

1,843,434 (177,250) 1,155,825 2,822,009

Total $

$

Real Estate $

$

321,190 1,522,244 1,843,434

6,368,147 (45,790) (176,787) 3,751,535 9,897,105 Total

$

$

4,284,087 (548,548) 457,232 2,175,376 6,368,147

The alternative investments are valued using Level 3 category inputs and are reported at net asset values calculated by the third party investment manager. These investments are made via Merrill Lynch utilizing subscription agreements, prospectuses, and offering documents. The Foundation had committed to funding $4,250,000 toward private equity funds within this program. As of June 30, 2016, $2,282,500 of further funding commitments remain outstanding and will be satisfied upon notice of equity call from the funds, by selling other funds and new cash. By design, these investments should be considered illiquid in nature but generally cash out in 10-15 years.

- 18 -


YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) June 30, 2016 and 2015

NOTE 6.

INVESTMENTS HELD IN TRUSTS

Investments held in trusts consist of the following: Fair Value as of June 30, 2016 Level 1 Level 3 Total

Cost Cash Notes receivable Certificates of Deposit Mutual Funds: Allocation World Moderate Allocation Bond Funds: High Yield Intermediate Multi Muni Short Term World Commodities Equity Funds: Emerging Markets International Large Cap International Small Cap Large Cap Mid Cap Small Cap Equipment / Personal property Annuities Real estate

$

$

1,260,890 1,441,708

2,702,598

- 19 -

$

-

$

244,699

-

1,260,890 1,441,708 244,699

2,023,905 502,973

-

2,023,905 502,973

339,837 2,829,157 1,019,196 216,979 517,634 629,814 381,899

-

339,837 2,829,157 1,019,196 216,979 517,634 629,814 381,899

154,798 2,535,481 250,846 9,194,673 1,778,750 1,035,816 4,929,709 $ 28,586,166

40,500 400,000 440,500

154,798 2,535,481 250,846 9,194,673 1,778,750 1,035,816 40,500 4,929,709 400,000 $ 31,729,264

$

-

$


YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) June 30, 2016 and 2015

NOTE 6.

INVESTMENTS HELD IN TRUSTS (CONTINUED) Fair Value as of June 30, 2015 Level 1 Level 3 Total

Cost Money Market Accounts Notes receivable Certificates of Deposit Mutual Funds: Allocation World Conservative Allocation Bond Funds: High Yield Intermediate Multi Muni Short Term World Commodities Equity Funds: Emerging Markets International Large Cap International Small Cap Large Cap Mid Cap Small Cap Annuities Real estate

$

$

1,816,978 293,949

2,110,927

$

249,272

$

-

$

1,816,978 293,949 249,272

2,087,297 414,150

-

2,087,297 414,150

373,032 2,716,092 379,542 213,864 338,229 441,053 362,580

-

373,032 2,716,092 379,542 213,864 338,229 441,053 362,580

77,917 2,560,098 226,254 8,739,842 1,062,274 655,368 5,023,466 $ 25,920,330

545,000 545,000

77,917 2,560,098 226,254 8,739,842 1,062,274 655,368 5,023,466 545,000 $ 28,576,257

$

Investment activity specific to investments held in trust valued with Level 3 inputs for the years ended June 30, 2016 and 2015, are reflected in the table below. 2016 Balance, beginning of year Contributions, issuance, and settlements Balance, end of year

$ $

- 20 -

545,000 (104,500) 440,500

2015 $ $

779,893 (234,893) 545,000


YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) June 30, 2016 and 2015

NOTE 7.

OTHER RECEIVABLE

During the year ended June 30, 2016, the Foundation was named as the beneficiary for a Charitable Lead Annuity Trust. The Foundation has recorded the estimated present value of the future payment stream as a receivable at June 30, 2016. Quarterly payments are expected through 2032.

NOTE 8.

PROPERTY AND EQUIPMENT

Property and equipment as of June 30, 2016 and 2015, are comprised of the following: 2016 Buildings Furniture, fixtures, and equipment Computer software

$

Less - accumulated depreciation Net property and equipment

NOTE 9.

$

431,560 267,596 13,393 712,549 (615,413) 97,136

2015 $

$

431,560 286,088 33,161 750,809 (632,463) 118,346

TRUST OBLIGATIONS

As of June 30, 2016 and 2015, the Foundation’s trust obligations were comprised of the following: Charitable remainder trusts Revocable trusts Remainder due to third parties Total trust obligations

- 21 -

2016

2015

$ 15,849,319 1,212,804 2,202,288 $ 19,264,411

$ 14,175,475 1,342,491 2,092,041 $ 17,610,007


YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) June 30, 2016 and 2015

NOTE 10. NET ASSETS Unrestricted Net Assets Unrestricted net assets are comprised of the following as of June 30, 2016 and 2015: 2016 Undesignated Board-designated Trusts Annuities Total unrestricted

$

9,897,286 4,658,306 2,820,841 2,259,039 $ 19,635,472

2015 $

3,131,012 5,150,000 2,756,696 2,569,665 $ 13,607,373

At June 30, 2016 and 2015, net assets were designated for the following purposes: 2016 General endowment Scholarship endowment

$ $

4,408,306 250,000 4,658,306

2015 $ $

4,900,000 250,000 5,150,000

Temporarily Restricted Net Assets Temporarily restricted net assets are available for the following purposes as of June 30, 2016 and 2015: 2016 Advised funds Johnson scholarship Endowment fund Total

$

1,541,988 1,008,859 7,730,679 $ 10,281,526

2015 $

1,738,236 1,018,177 9,211,556 $ 11,967,969

Permanently Restricted Net Assets Permanently restricted net assets as of June 30, 2016 and 2015, are restricted to: Investments held in perpetuity, the income from which is expendable to support: Activities of the Foundation Trust obligations Annuity obligations Total

- 22 -

2016

2015

$ 33,809,055 9,644,009 (1,193,408) $ 42,259,656

$ 33,458,342 8,209,554 (724,291) $ 40,943,605


YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) June 30, 2016 and 2015

NOTE 11. ENDOWMENT The Foundation’s endowment consists of numerous individual funds. The endowment includes donor-restricted endowment funds. As required by GAAP, net assets associated with endowment funds are classified and reported based on the existence or absence of donorimposed restrictions. Interpretation of Relevant Law The Board of Directors has interpreted the Montana Uniform Prudent Management of Institutional Funds Act (MUPMIFA) as assuming institutions will attempt to preserve the fair value of original gifts as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of the interpretation, the Foundation 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) any 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 Foundation in a manner consistent with the standard of prudence prescribed by MUPMIFA. In accordance with MUPMIFA, the Foundation considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds: 1) The duration and preservation of the fund; 2) The purposes of the Foundation and the donor-restricted endowment fund; 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 Foundation; and 7) The investment policies of the Foundation. Funds with Deficiencies From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the permanently restricted value. In accordance with GAAP, the deficiencies of this nature are reported in unrestricted net assets. As of June 30, 2016, there were no funds with deficiencies.

- 23 -


YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) June 30, 2016 and 2015

NOTE 11.

ENDOWMENT (CONTINUED)

Return Objectives and Risk Parameters The Foundation has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasing power of the endowment assets. Endowment assets include those assets of donor-restricted funds that the Foundation must hold in perpetuity or for a donorspecified period(s) as well as board-designated funds. The policy approved by the Board of Directors invests the endowment assets for long-term growth of the Fund, exclusive of contributions or withdrawals. The policy is intended to earn a long-term rate of return, through a combination of investment income and capital appreciation, in excess of the Fund’s annual distribution rate that equals or exceeds the rate of inflation. Strategies Employed for Achieving Objectives To satisfy its long-term, rate-of-return objectives, the Foundation relies on a total-return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). The Foundation targets a diversified asset allocation including cash equivalents, fixed income, equity securities, and alternative investments to achieve its long-term return objectives within prudent risk constraints. Spending Policy and How the Investment Objectives Relate to Spending Policy It is the policy of the Foundation to annually appropriate an amount determined pursuant to the seven factors contained in MUPMIFA, as previously shown in this note. In establishing this policy, the Foundation considered the long-term expected return on its endowment. Accordingly, over the long term, the Foundation expects the current spending policy to allow its endowment to grow. This is consistent with the Foundation’s objective to maintain the purchasing power of the endowment assets held in perpetuity, or for a donor-specified term, as well as to provide additional real growth through new gifts and investment return. Endowment net asset composition by type of fund as of June 30, 2016 and 2015, are as follows: 2016 Donor-restricted 2015 Donor-restricted

Unrestricted $

Temporarily Restricted

-

$ 7,730,679

Unrestricted

Temporarily Restricted

$

-

- 24 -

$ 9,211,556

Permanently Restricted $

33,809,055 Permanently Restricted

$

33,458,342

Total $ 41,539,734

Total $ 42,669,898


YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) June 30, 2016 and 2015

NOTE 11. ENDOWMENT (CONTINUED) Spending Policy and How the Investment Objectives Relate to Spending Policy (Continued) Changes in net asset composition by type of fund for the years ended June 30, 2016 and 2015 are as follows: 2016

Temporarily Restricted

Endowment net assets - beginning of year Contributions Unrealized losses Royalty income Realized losses Interest and dividends, net of fees Net appropriation of endowment assets for expenditures Transfers: Matured annuities Donor advised funds Matured trusts Endowment net assets - end of the year

$

2015 Endowment net assets - beginning of year Contributions Unrealized losses Royalty income Realized gains Interest and dividends, net of fees Transfers: Matured annuities Matured trusts Endowment net assets - end of the year

Permanently Restricted

Total

9,211,556 (873,512) 80,400 (1,105,248) 907,699

$ 33,458,342 9,188 -

$ 42,669,898 9,188 (873,512) 80,400 (1,105,248) 907,699

(490,216)

-

(490,216)

7,730,679

107,905 70,287 163,333 $ 33,809,055

107,905 70,287 163,333 $ 41,539,734

Temporarily Restricted

Permanently Restricted

Total

7,832,013 (2,534,795) 204,475 2,678,498 1,031,365

$ 32,386,882 832,076 -

$ 40,218,895 832,076 (2,534,795) 204,475 2,678,498 1,031,365

9,211,556

126,048 113,335 $ 33,458,342

126,048 113,335 $ 42,669,898

$

$

$

- 25 -


YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) June 30, 2016 and 2015

NOTE 12. RETIREMENT PLAN The Foundation has a defined contribution retirement plan that covers all employees. The Foundation makes contributions based upon a percentage of eligible employees’ salaries. Contributions to the plan were $26,044 and $24,672 for the years ended June 30, 2016 and 2015, respectively.

NOTE 13. ASSOCIATED PARTIES The Foundation is associated with a separate corporation, Yellowstone Boys and Girls Ranch, Inc. (YBGR). YBGR is independently controlled by its own Board of Directors. YBGR is a favored grantee of the Foundation. Grants and other miscellaneous contributions made to YBGR from the Foundation amounted to $4,135,901 and $2,073,074 for the years ended June 30, 2016 and 2015, respectively. As of June 30, 2016, $1,887,063 of these grants is reported as a long term grant commitment payable by the Foundation to YBGR. This amount represents a total commitment of $1,958,550 payable over 20 years, and discounted to present value using 1.8%. During the year ended June 30, 2016, the Foundation loaned the Ranch $722,813 for campus water related projects, the amount which is recorded under Notes Receivable in the accompanying financial statements. This short term loan accrues no interest, and will be repaid by proceeds from other long term loans to be secured by the Ranch. Accordingly, the Foundation expects to receive these funds in the upcoming fiscal year.

NOTE 14. COMMITMENTS AND CONTINGENCIES Funding Commitment As of June 30, 2016 and 2015, the Foundation had committed up to $2,922,400 and $1,979,598, respectively, of grant funding to the Yellowstone Boys and Girls Ranch, if needed. Contingent Gain The Foundation has been the recipient of several lots of land, which had been transferred to the Foundation inclusive of mineral and oil rights at the time of the gift. In September 2012, the Foundation contracted with a consulting firm to estimate the oil and gas reserves, and the potential future income from exploring these reserves. The present value of this future income flow was estimated at $2,348,000. The ultimate realization of this income stream is dependent on future exploration, extraction activities, and changes in market prices of the underlying asset. Accordingly, this amount is not recorded in the accompanying consolidated financial statements.

- 26 -


ADDITIONAL INFORMATION


ANDERSON ZURMUEHLEN & CO., P.C. • CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS

402 NORTH BROADWAY,4th FLOOR • P.O. BOX 20435 • BILLINGS, MONTANA 59104-0435 TEL: 406.245.5136 • FAX: 406.245.6056 • WEB: www.azworld.com

M EM BER : A M ER IC A N I N STI TUTE O F C ERTI FI ED P UBLI C A C C O UN TA N TS

INDEPENDENT AUDITOR’S REPORT ON ADDITIONAL INFORMATION

To the Board of Directors of Yellowstone Boys and Girls Ranch Foundation, Inc. Billings, Montana We have audited the consolidated financial statements of Yellowstone Boys and Girls Ranch Foundation, Inc. and subsidiary as of and for the years ended June 30, 2016 and 2015, and have issued our report thereon dated , which contained an unmodified opinion on those consolidated financial statements. Our audits were performed for the purpose of forming an opinion on the consolidated financial statements taken as a whole. The accompanying consolidating statements of financial position and consolidating statements of activities are presented for purposes of additional analysis and are not a required part of the consolidated financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the consolidated financial statements. The information has been subjected to the auditing procedures applied in the audits of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the consolidated financial statements as a whole.

Billings, Montana November 15, 2016

- 27 -


(T H I S P A G E I N T E N T I O N A L L Y L E F T B L A N K)


YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY CONSOLIDATING STATEMENT OF FINANCIAL POSITION June 30, 2016

ASSETS Restricted cash and cash equivalents Investment interest receivable Investments - securities Investments - real estate Investments - other Investments held in trusts Notes and contracts receivable Notes receivable - Yellowstone Boys and Girls Ranch, Inc. Property and equipment, net Investment in Yellowstone Foundation Properties, LLC Other assets Total assets

2016 Yellowstone Boys & Girls Yellowstone Ranch Foundation Eliminating Foundation, Inc. Properties, LLC Entries $

2,045,802 30,555 56,633,994 30,515 592,153 31,729,264 1,027,597

$

2,791,494 5,439 -

$

Consolidated Total -

$

-

2,045,802 30,555 56,633,994 2,822,009 597,592 31,729,264 1,027,597

6,674,827 97,136

-

6,674,827 97,136

2,382,811 562,386 $ 101,807,040

$ 2,796,933

(2,382,811) (508,019) $ (2,890,830)

54,367 $ 101,713,143

$

$

$

$

LIABILITIES AND NET ASSETS LIABILITIES Checks written in excess of bank balances Accounts payable and accrued expenses Long term grants Annuity obligations Trust obligations Total liabilities NET ASSETS Unrestricted Temporarily restricted Permanently restricted Total net assets Total liabilities and net assets

632,166

(93,897)

-

538,269

53,590 1,887,063 7,793,156 19,264,411 29,630,386

508,019 414,122

(508,019) (508,019)

53,590 1,887,063 7,793,156 19,264,411 29,536,489

19,635,472 10,281,526 42,259,656 72,176,654

2,382,811 2,382,811

(2,382,811) (2,382,811)

19,635,472 10,281,526 42,259,656 72,176,654

$ 101,807,040

$ 2,796,933

$ (2,890,830)

$ 101,713,143

Refer to Independent Auditor’s Report on Additional Information. - 28 -


YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY CONSOLIDATING STATEMENT OF FINANCIAL POSITION June 30, 2015

ASSETS Cash and cash equivalents Restricted cash and cash equivalents Investment interest receivable Investments - securities Investments - real estate Investments - other Investments held in trusts Notes and contracts receivable Property and equipment, net Investment in Yellowstone Foundation Properties, LLC Other assets Total assets

2015 Yellowstone Boys & Girls Yellowstone Ranch Foundation Eliminating Foundation, Inc. Properties, LLC Entries $

$

29,208 1,614,244 2,000 -

$

Consolidated Total

246,270 915,142 43,868 59,485,339 229,190 583,822 28,576,257 345,357 118,346

$

-

$

275,478 915,142 43,868 59,485,339 1,843,434 585,822 28,576,257 345,357 118,346

451,369 1,238,249 92,233,209

$ 1,645,452

(451,369) (1,193,894) $ (1,645,263)

44,355 $ 92,233,398

36,725 8,067,530 17,610,007 25,714,262

$ 1,194,083 1,194,083

$ (1,193,894) (1,193,894)

$

13,607,373 11,967,969 40,943,605 66,518,947

451,369 451,369

(451,369) (451,369)

13,607,373 11,967,969 40,943,605 66,518,947

92,233,209

$ 1,645,452

$ (1,645,263)

$ 92,233,398

LIABILITIES AND NET ASSETS LIABILITIES Accounts payable and accrued expenses Annuity obligations Trust obligations Total liabilities

$

NET ASSETS Unrestricted Temporarily restricted Permanently restricted Total net assets Total liabilities and net assets

$

Refer to Independent Auditor’s Report on Additional Information. - 29 -

36,914 8,067,530 17,610,007 25,714,451


YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY CONSOLIDATING STATEMENT OF ACTIVITIES Year Ended June 30, 2016

REVENUES AND SUPPORT Contributions Legacies and bequests Gift value of annuities Gift value of trusts Investment income Royalty income Grants from Not For Profits Other revenues Investment income -Yellowstone Foundation Properties, LLC Total revenues and support EXPENSES Program grants Deferred giving program General and administrative Fundraising Total expenses OTHER CHANGES IN NET ASSETS Change in value of split interest agreements - annuities Change in value of split interest agreements - trusts Total other changes in net assets

Yellowstone Boys & Girls Ranch Foundation, Inc. $

7,435,873 2,128,857 244,073 1,255,549 (917,854) 211,019 150,766 20,215

Yellowstone Foundation Properties, LLC $

102,873 1,152,500 -

Eliminating Entries $

Consolidated Total -

(1,245,567) (1,245,567)

$

7,538,746 3,281,357 244,073 1,255,549 (917,854) 211,019 150,766 20,215

1,245,567 11,774,065

1,255,373

11,783,871

4,236,793 374,508 815,275 358,094 5,784,670

9,806 9,806

-

(738,075)

-

-

(738,075)

406,387

-

-

406,387

(331,688)

-

-

(331,688)

4,236,793 374,508 825,081 358,094 5,794,476

Change in net assets

5,657,707

1,245,567

(1,245,567)

5,657,707

NET ASSETS, beginning of year

66,518,947

451,369

(451,369)

66,518,947

-

685,875

(685,875)

-

2,382,811

$ (2,382,811)

$ 72,176,654

Distributions to member NET ASSETS, end of year

$ 72,176,654

$

Refer to Independent Auditor’s Report on Additional Information. - 30 -


YELLOWSTONE BOYS AND GIRLS RANCH FOUNDATION, INC. AND SUBSIDIARY CONSOLIDATING STATEMENT OF ACTIVITIES Year Ended June 30, 2015

REVENUES AND SUPPORT Contributions Legacies and bequests Gift value of annuities Gift value of trusts Investment income Royalty income Administrative fees Other revenues Investment income -Yellowstone Foundation Properties, LLC Total revenues and support EXPENSES Program grants Deferred giving program General and administrative Fundraising Total expenses OTHER CHANGES IN NET ASSETS Change in value of split interest agreements - annuities Change in value of split interest agreements - trusts Total other changes in net assets Change in net assets NET ASSETS, beginning of year Distributions to member NET ASSETS, end of year

Yellowstone Boys & Girls Ranch Foundation, Inc. $

1,313,986 540,228 1,014,225 513,443 153,227 1,528,592 501,027 767,572 8,050

Yellowstone Foundation Properties, LLC $

328,350 -

Eliminating Entries $

Consolidated Total -

1,642,336 540,228 1,014,225 513,443 153,227 1,528,592 501,027 767,572 8,050

321,128 6,661,478

328,350

2,090,183 355,533 747,386 355,990 3,549,092

7,222 7,222

-

(992,787)

-

-

(992,787)

(426,451)

-

-

(426,451)

(1,419,238)

-

-

(1,419,238)

1,693,148 64,825,799 $ 66,518,947

$

(321,128) (321,128)

$

6,668,700 2,090,183 355,533 754,608 355,990 3,556,314

321,128

(321,128)

1,693,148

235,241 (105,000) 451,369

(235,241) 105,000 (451,369)

64,825,799 $ 66,518,947

$

Refer to Independent Auditor’s Report on Additional Information. - 31 -

YBGRF Financial Report June 30 2016  

Yellowstone Boys and Girls Ranch Foundation Audited Financial Statements June 30, 2016

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