Yellowstone Boys and Girls Ranch Foundation,
Inc.
Billings, Montana
CONSOLIDATED FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION WITH INDEPENDENT AUDITORS’ REPORT
June 30, 2023 and 2022
Consolidated Statements of Financial Position
Consolidated Statements of Activities
Consolidated Statements of Functional Expenses
Consolidated Statements of Cash Flows
Notes to the Consolidated Financial Statements
ADDITIONAL INFORMATION SECTION
Independent Auditors’ Report on Additional Information
Consolidating Statements of Financial Position
Consolidating Statements of Activities
INDEPENDENT AUDITORS’ REPORT
To the Board of Directors
Yellowstone Boys and Girls Ranch Foundation, Inc.
Billings, Montana
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the consolidated financial statements of the Yellowstone Boys and Girls Ranch Foundation, Inc. and its subsidiary, a nonprofit organization (the Foundation), which comprise the consolidated statements of financial position as of June 30, 2023 and 2022; the related consolidated statements of activities, functional expenses, and cash flows for the years then ended; and the related notes to the consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Foundation as of June 30, 2023 and 2022, 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 (GAAP).
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to be independent of the Foundation and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with GAAP, and for 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.
In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Foundation’s ability to continue as a going concern within one year after the date that the consolidated financial statements are available to be issued.
INDEPENDENT AUDITORS’ REPORT
(Continued)
Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements, including omissions, are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.
In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated fina ncial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Foundation’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Foundation’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control‐related matters that we identified during the audit.
June 24, 2024
Billings, Montana
FINANCIAL SECTION
Yellowstone Boys and Girls Ranch Foundation, Inc.
Yellowstone Boys and Girls Ranch Foundation, Inc.
Yellowstone Boys and Girls Ranch Foundation, Inc.
CONSOLIDATED STATEMENTS OF ACTIVITIES
(Continued)
Yellowstone Boys and Girls Ranch Foundation, Inc.
CONSOLIDATED STATEMENTS OF FUNCTIONAL EXPENSES
7,5127606708,942
621,3858782,325
Yellowstone Boys and Girls Ranch Foundation, Inc.
CONSOLIDATED STATEMENTS OF FUNCTIONAL EXPENSES
(Continued)
Yellowstone Boys and Girls Ranch Foundation, Inc.
Years Ended June 30
(1,375,528)
Yellowstone Boys and Girls Ranch Foundation, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Continued)
Years Ended June 30
Yellowstone Boys and Girls Ranch Foundation, Inc.
1. NATURE OF ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Yellowstone Boys and Girls Ranch Foundation, Inc. (the Foundation) is a nonprofit 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 consolidated 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:
Without Donor Restrictions: Net assets that are not subject to donor‐imposed stipulations and donor restricted contributions whose restrictions are met in the same reporting period.
With Donor Restrictions: 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, and 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.
Revenues are reported as increases in net assets without donor restrictions unless use of the related assets is limited by donor‐imposed restrictions. Expenses are reported as decreases in net assets without donor restrictions. Gains and losses on investments and other assets are reported as increases or decreases in net assets without donor restrictions 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.
Yellowstone Boys and Girls Ranch Foundation, Inc.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
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 consolidated statement of financial position date are shown as increases in net assets with donor restrictions and are reclassified to net assets without donor restrictions 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 without donor‐restricted 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 with donor‐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.
The Foundation’s policy for determining the timing of significant transfers between levels 1, 2, and 3 is at the end of the reporting period. There were no transfers for the years ended June 30, 2023 and 2022.
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, 2023 or 2022.
Exchange‐Traded Funds (ETFs): ETFs are valued at the closing price reported in the active market in which the funds 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.
Yellowstone Boys and Girls Ranch Foundation, Inc.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
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 its general operating account 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. Federal Deposit Insurance Corporation (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. At June 30, 2023 and 2022, bank accounts exceeded insured limits by $ 872,222 and $490,065, respectively.
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, 2023 and 2022, the Foundation held investments in exchange‐traded funds, which are broad stock and bond index funds.
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 consolidated 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 partnerships. 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 mainly of mineral rights, oil royalties, collectibles, 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.
Yellowstone Boys and Girls Ranch Foundation, Inc.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(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, 2023 and 2022, was $36,540 and $44,155, respectively. Property and equipment are depreciated using the straight‐line method based on the estimated useful lives of the assets as follows:
Building and improvements
8–30 years
Furniture, fixtures, and equipment4–12 years
Computer software6 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 some of 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 (IRS) 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, 2023 and 2022:
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.
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 consolidated statements of activities as changes in value of split‐interest agreements. These changes are classified as net assets without or with donor restriction—depending on the classification used when the contribution was recognized initially.
Yellowstone Boys and Girls Ranch Foundation, Inc.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
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 IRS 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. Yellowstone Foundation Properties, LLC 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 consolidated financial statements.
Functional Allocation of Expenses The Foundation's president and his assistant’s time and benefits are allocated based on an estimate of time spent between deferred giving program, general and administrative, and fundraising. Any further allocations are based on the full‐time equivalent per area.
Use of Estimates The preparation of consolidated 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.
Evaluation of Subsequent Events Management has evaluated subsequent events through June 24, 2024, the date the consolidated financial statements were available to be issued.
RESTRICTED CASH AND CASH EQUIVALENTS
Restricted cash and cash equivalents included amounts for the following purposes:
June 30
Yellowstone Boys and Girls Ranch Foundation, Inc.
3. INVESTMENTS – SECURITIES
Investments in securities were comprised of the following:
Investments held to satisfy annuity obligations was $8,143,144 and $7,148,307, as of June 30, 2023 and 2022, respectively, and are included in investments ‐ securities in the accompanying consolidated statements of financial position.
Yellowstone Boys and Girls Ranch Foundation, Inc.
The components of investment income were as follows:
INVESTMENTS ACTIVITY – LEVEL 3
Yellowstone Boys and Girls Ranch Foundation, Inc.
TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
The alternative investments are valued using level 3 category inputs and are reported at NAV 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 $16,556,758 toward private equity funds within this program. As of June 30, 2023, $5,946,351 of further funding commitments remain outstanding and will be satisfied upon notice of equity call from the funds, by using cash distributions from active alternative investments, selling funds and new cash. By design, these investments should be considered illiquid in nature with currently 35.0% of the holdings using 10 to 15 years to cash out from date of first funding and the balance of the holdings allowing limited redemptions on a quarterly basis.
Yellowstone Boys and Girls Ranch Foundation, Inc.
6. INVESTMENTS HELD IN TRUSTS
Investments held in trusts consisted of the following:
Yellowstone Boys and Girls Ranch Foundation, Inc.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
Yellowstone Boys and Girls Ranch Foundation, Inc.
7. OTHER RECEIVABLES
The Foundation has knowledge of irrevocable interests it has in trusts held by other third‐party trustees. As soon as the Foundation becomes aware of an irrevocable interest in a trust held by a third party and the fair market value of the assets, the Foundation records the present value of those interests in other receivables.
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, 2023 and 2022. Quarterly payments are expected through 2032.
8. PROPERTY AND EQUIPMENT
Property and equipment were comprised of the following: June 30 20232022
9. TRUST OBLIGATIONS
The Foundation’s trust obligations were comprised of the following: June 30 20232022
Yellowstone Boys and Girls Ranch Foundation, Inc.
10. NET ASSETS
Yellowstone Boys and Girls Ranch Foundation, Inc.
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 donor‐imposed 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 net assets with donor restriction to be held in perpetuity (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 net assets with donor restrictions to be held in perpetuity are classified as time restricted for future periods 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, 2023, there were no funds with deficiencies.
Yellowstone Boys and Girls Ranch Foundation, Inc.
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 donor‐specified 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 were as follows:
Yellowstone Boys and Girls Ranch Foundation, Inc.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
Changes in net asset composition by type of fund were as follows:
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 $70,629 and $53,579 for the years ended June 30, 2023 and 2022, respectively.
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 was $3,263,333 and $3,261,317 for the years ended June 30, 2023 and 2022, respectively.
Yellowstone Boys and Girls Ranch Foundation, Inc.
The Foundation has a long‐term grant commitment payable to the YBGR. The original commitment was $1,958,550 payable over 20 years, discounted to present value using 1.8%. The present value of the long‐term grant commitment at June 30, 2023 and 2022, was $759,481 and $997,786, respectively.
14. COMMITMENTS AND CONTINGENCIES
Funding Commitment
As of June 30, 2023 and 2022, the Foundation had committed up to $3,022,128 and $3,125,448, respectively, of grant funding to YBGR, 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 ultimate realization of income from these reserves is dependent on future exploration, extraction activities, and changes in market prices of the underlying asset. However, the Foundation has not received any updated valuations of these reserves. Accordingly, no amount is deemed appropriate to disclose or record in the accompanying consolidated financial statements.
15. LIQUIDITY AND AVAILABILITY
The Foundation’s financial assets available for general expenditure include only those without contractual or donor‐imposed restrictions within one year of the consolidated statement of financial position date. Management has identified the following assets available for general operations:
Yellowstone Boys and Girls Ranch Foundation, Inc.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
Financial assets not included are those set aside for long‐term investing as board designated that could be drawn upon if the governing Board approves that action. However, amounts already appropriated from either the donor‐restricted endowment or board‐designated endowment for general expenditure are included. See note 11 for further discussion on the endowment spending policy.
ADDITIONAL INFORMATION SECTION
INDEPENDENT AUDITORS’ REPORT ON ADDITIONAL INFORMATION
To the Board of Directors
Yellowstone Boys and Girls Ranch Foundation, Inc.
Billings, Montana
We have audited the consolidated financial statements of the Yellowstone Boys and Girls Ranch Foundation, Inc. and subsidiary as of and for the years ended June 30, 2023 and 2022, and issued our report thereon dated June 24, 2024, which expressed an unmodified opinion on those consolidated financial statements, appearing on page 1. Our audits were conducted for the purpose of forming an opinion on the consolidated financial statements taken as a whole. The accompanying consolidating statements of financial position, consolidating statements of activities, and the schedule of investments held in trusts 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 bee n 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.
June 24, 2024
Billings, Montana
Yellowstone Boys and Girls Ranch Foundation, Inc.
CONSOLIDATING STATEMENTS OF FINANCIAL POSITION
Boys and GirlsYellowstone RanchFoundationEliminatingConsolidated June 30, 2023 Foundation, Inc.Properties, LLCEntriesTotal
CONSOLIDATING STATEMENTS OF FINANCIAL POSITION
(Continued)
June 30, 2022
STATEMENTS OF ACTIVITIES
STATEMENTS OF ACTIVITIES
(Continued)