JUMA VENTURES FINANCIAL STATEMENTS Year Ended December 31, 2012
TABLE OF CONTENTS Page
Independent Auditors' Report ........................................................................................................1 Financial Statements: Statement of Financial Position .........................................................................................3 Statement of Activities .......................................................................................................4 Statement of Functional Expenses .....................................................................................5 Statement of Cash Flows ...................................................................................................6 Notes to the Financial Statements ......................................................................................7
JUMA VENTURES STATEMENT OF FINANCIAL POSITION December 31, 2012 and 2011 2012
2011
Assets Current assets Cash and cash equivalents Grants and contributions receivable Accounts receivable Investments Inventory Prepaid expenses Total current assets
$ 3,400,301 684,381 110,548 352,394 15,829 41,783 4,605,236
$ 2,364,128 360,097 35,145 505,808 23,433 24,904 3,313,515
Other assets Deposits Property and equipment, net Total other assets Total Assets
33,381 82,158 115,539 $ 4,720,775
24,226 91,086 115,312 $ 3,428,827
$
$
Liabilities and Net Assets Current liabilities: Accounts payable Accrued liabilities Total current liabilities Net assets Unrestricted net assets Temporarily restricted Total net assets Total Liabilities and Net Assets
718,289 249,791 968,080
1,017,785 2,734,910 3,752,695 $ 4,720,775
See accompanying notes to financial statements. 3
296,362 200,206 496,568
874,935 2,057,324 2,932,259 $ 3,428,827
JUMA VENTURES STATEMENT OF ACTIVITIES Year Ended December 31, 2012 (with comparative totals for 2011) 2012
Revenues, gains, and other support Grants and contributions Employment projects Investment income (includes interest from certificates of deposit) Special event income, net of expenses of $65,126 Miscellaneous income Net assets released from restrictions: Satisfaction of program restrictions Total revenues, gains, and other support Expenses: Program services: Support services: Management and general Fundraising Total expenses Change in net assets Net assets, beginning of year Net assets, end of year
Unrestricted
Temporarily Restricted
$
889,715 1,968,311
$ 3,167,355
7,286 30,971 58,245
-
2,489,769
Total
$
(2,489,769)
2011 Total
4,057,070 1,968,311
$ 2,786,111 1,683,229
7,286 30,971 58,245
8,530 73,979 43,030
-
-
5,444,297
677,586
6,121,883
$ 4,594,879
4,689,498
-
4,689,498
3,898,366
238,484 373,465
-
238,484 373,465
248,431 318,541
5,301,447
-
5,301,447
4,465,338
142,850
677,586
820,436
129,541
874,935
2,057,324
2,932,259
2,802,718
$ 1,017,785
$ 2,734,910
3,752,695
$ 2,932,259
See accompanying notes to financial statements. 4
$
JUMA VENTURES STATEMENT OF FUNCTIONAL EXPENSES Year Ended December 31, 2012 (with comparative totals for 2011) 2012 Program Services Business Employment
Workforce Resources
Supporting Services
Replication
Total
Management and General
Fund-raising
Total
2012 Total
2011 Total
Employee compensation Salaries Payroll taxes and benefits Total personnel Other expenses Business fees/permits Consultants & professional services Cost of goods sold & concession fees Depreciation & amortization Equipment Financial assistance Insurance and property taxes Interest and bank charges/losses Marketing/public relations Postage, printing, and supplies Project costs Recruiting/conferences/retention/evaluation Refund to Earn Rent Repairs & maintenance Telephone, internet, email Training stipend costs Training supplies and costs Travel and transportation Union fee Utilities Total expenses
$
$
620,568 113,202 733,770
6,329 27,546 1,110,827 13,343 7,352 12,760 498 11,268 7,769 12,040 4,029 16,202 9,539 5,304 5,341 3,296 20,606 453 2,008,272
$
$
965,543 176,035 1,141,578
77,180 2,395 587,341 5,867 787 150 11,831 340,814 15,724 170,379 5,071 8,430 52,126 11,021 24,605 4,655 2,459,954
$
$
110,347 20,103 130,450
45,982 14,132 3,044 27,664 221,272
$
$
1,696,458 309,340 2,005,798
6,329 150,708 1,110,827 13,343 9,747 587,341 18,627 1,285 11,418 19,600 366,986 22,797 186,581 14,610 13,734 52,126 16,362 55,565 20,606 5,108 4,689,498
$
$
See accompanying notes to financial statements. 5
116,038 21,237 137,275
16,819 20,503 1,652 4,930 818 4,155 18,016 24,303 601 3,287 5,445 680 238,484
$
239,910 43,888 283,798
$
6,489 -
$
648 1,984 334 4,080 1,999 49,422 5,092 16,202 242 2,318 404 453 373,465
$
355,948 65,125 421,073
23,308 20,503 2,300 6,914 1,152 4,080 6,154 49,422 23,108 40,505 843 5,605 5,849 1,133 611,949
$
$
2,052,406 374,465 2,426,871
6,329 174,016 1,110,827 33,846 12,047 587,341 25,541 2,437 15,498 25,754 416,408 45,905 227,086 15,453 19,339 52,126 16,362 61,414 20,606 6,241 5,301,447
$
$
1,917,960 355,652 2,273,612
5,411 195,699 891,029 42,873 13,060 150,000 24,544 918 7,718 30,645 318,024 34,198 134,842 200,481 19,216 26,990 21,133 13,557 41,339 16,616 3,433 4,465,338
JUMA VENTURES STATEMENT OF CASH FLOWS Years Ended December 31, 2012 and 2011 2012 CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets Adjustments to reconcile change in net assets to net cash provided (used) by operating activities Depreciation and amortization (Increase) decrease in operating assets: Grants and contributions receivable Accounts receivable Inventory Prepaid expenses Deposits Increase (decrease) in operating liabilities: Accounts payable Accrued liabilities
$
Net cash provided (used) by operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Collections on notes receivable Purchase of equipment Proceeds from investments Purchase of investments Net cash provided (used) by investing activities
820,436
2011 $
129,541
33,846
42,873
(324,284) (75,403) 7,604 (16,879) (9,155)
67,780 (16,358) (8,795) 5,964 (3,832)
421,927 49,585
8,500 (4,656)
907,677
221,017
(25,009) 255,668 (102,163)
38,959 (11,857) 154,400 (353,245)
128,496
(171,743)
NET INCREASE IN CASH AND CASH EQUIVALENTS
1,036,173
49,274
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
2,364,128
2,314,854
CASH AND CASH EQUIVALENTS, END OF YEAR
See accompanying notes to financial statements. 6
$
3,400,301
$
2,364,128
JUMA VENTURES NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2012
NOTE 1: DESCRIPTION OF THE ORGANIZATION Juma Ventures (Juma Ventures or Juma) is a nonprofit, youth development organization whose mission is to break the cycle of poverty by ensuring that young people complete a four-year college education. Founded in 1993, Juma empowers low-income youth to make successful transitions to independence in adulthood. Through innovative programs that integrate employment in social enterprises, college preparation, career services, financial capability training, and asset-building services, Juma ensures college access and success. Juma owns and operates small businesses that provide meaningful employment and development opportunities to low-income youth. Youth receive job experience complemented by programs that focus on college completion. These programs include after-school programming and college preparation. Youth have access to opportunities for leadership development and financial capability training, including access to matched savings accounts, which multiply and leverage student savings from job earnings. Juma offers three core program components that, together with one-on-one case management, give youth a unique set of comprehensive services. The support and coaching that youth receive through personalized case management services provide youth with a stable and supportive environment. Over the course of their work with a Youth Development Coordinator (YDC), youth establish goals for building personal capabilities and life skills and receive support in working toward realizing them. With support from the YDC, youth pursue their future goals for educational and economic success and self-sufficiency through these core program components: •
Job skills training and part-time employment offered at Juma’s social enterprise concessions businesses at major sports stadiums. Employment opportunities are offered year-round and provide training and hands-on skill building in customer service, cash transactions, work readiness, personal responsibility, sales, and supervision.
•
Education services and academic supports encourage college matriculation and graduation among all youth. Juma participants develop an education plan with the support of their YDC. Youth determine individual goals for higher education and plan the steps to reach those goals in partnership with their YDC. Youth participate in college and career tours with major employers that aid youth in understanding the relevance of college. Juma specifically provides assistance with college and financial aid applications, as well as standardized testing preparation, after school tutoring, and career workshops with panelists from various industries that encourage college completion.
•
Financial capability training and asset-building services teach youth how to manage their money through budgeting, debt and credit management, banking services, and learning to save. New youth complete a financial assessment and develop a financial plan. Through Individual Development Accounts, matching every dollar that students save, youth are incentivized to save and to focus on college.
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JUMA VENTURES NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2012
NOTE 1: DESCRIPTION OF THE ORGANIZATION (continued) Juma’s CollegeSet program scales asset-building services and financial capability training to additional low-income students across the United States. CollegeSet partners with other college-access and success organizations to open Individual Development Accounts for participants. The program also provides deposits and match-savings for tuition and other qualified college expenses, supports youth in completing the Free Application for Federal Student Aid, and operates through an online platform to connect individual donors with youth savers. Juma’s Aspire Program pilots the effectiveness of reaching low-income youth at an earlier point in their life. Aspire provides support to middle school youth in San Francisco’s Mission district. Youth receive early interventions throughout one of the most vulnerable and challenging times in their academic lives— the transition from middle school to high school. Juma’s replication efforts comprise the establishment of new enterprise and programmatic operations in new and existing markets. Key replication activities include staff travel, infrastructure development, and start-up of new social enterprise operations at major sports and entertainment venues. Juma’s leadership team travels to prospective markets for purposes of fund development and oversight of social enterprise start-up and operations. Direct staff travels to the San Francisco headquarters for orientation and training as part of Juma's new site development process. In 2012, Juma opened a new office in New Orleans to operate at the Superdome and New Orleans Arena. This was the first step in realizing a strategic effort to align corporate social responsibility strategies of major sports franchises, national vending and concessions companies, financial institutions, and other corporate partners toward a common vision: to create jobs for low-income young people throughout the country. Juma Ventures receives the majority of its revenues through grants, contributions, and sales generated from its employment projects which are located in the San Francisco Bay Area, San Diego, and New Orleans. NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Net Assets Juma Ventures reports information regarding its financial position and activities according to three classes of net assets: unrestricted, temporarily restricted and permanently restricted. Unrestricted net assets – The portion of net assets that is neither temporarily restricted nor permanently restricted by donor-imposed stipulations. Temporarily restricted net assets – The portion of net assets whose use by Juma Ventures is limited by donor-imposed stipulations that either expire by passage of time or can be fulfilled and removed by actions of Juma Ventures. Temporarily restricted net assets at December 31, 2012 represent revenues restricted for program services.
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JUMA VENTURES NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2012
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Description of Net Assets (continued) Permanently Restricted Net Assets – The portion of net assets whose use by Juma Ventures is limited by donor-imposed stipulations that neither expire by passage of time nor can otherwise be removed by actions of Juma Ventures. At December 31, 2012, Juma Ventures did not have any permanently restricted net assets. Revenue Recognition Unconditional contributions and grants are recognized at their fair value when the donor/grantor makes an unconditional promise to give to Juma Ventures. Contributions restricted by the donor are reported as an increase in unrestricted net assets if the restriction is released in the same reporting period in which the support is received. If the restriction is released in a different reporting period, such revenue is reported as temporarily restricted support and then reclassified to unrestricted net assets upon expiration of the restrictions. Revenue from government contracts is recognized as expenses are incurred. Revenue from employment projects is presented in the statement of activities before deduction of related costs. Related costs of goods sold and concession fees of $1,110,827 are presented in the statement of functional expenses. Net revenue from employment projects is $857,484 after deduction for these costs. Cash and Cash Equivalents Juma Ventures considers investments with an initial maturity of three months or less to be cash equivalents. Cash and cash equivalents include cash in banks, certificates of deposit, and money market funds. Investments Investments consist of certificates of deposit with initial maturities greater than three months and money market funds and are recorded at fair market value. Inventory Inventory is stated at the lower of cost or market, using the first-in, first-out method, and consists primarily of ice cream, beverages, food, and paper products. Property and Equipment Property and equipment are recorded at cost and are depreciated using the straight-line method over estimated useful lives of three to twenty years.
9
JUMA VENTURES NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2012
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Income Taxes Juma Ventures has been determined to be exempt from federal and state income taxes pursuant to Section 501(c)(3) of the Internal Revenue Code and Section 23701(d) of the California Revenue and Taxation Code. The Financial Accounting Standards Board issued new guidance on accounting for uncertainty in income taxes. Juma Ventures adopted this new guidance for the year ended December 31, 2009. Management evaluated Juma Ventures tax positions and concluded that Juma Ventures had maintained its tax exempt status and had taken no uncertain tax position that require adjustment to the financial statements. Therefore, no provision or liability for income taxes has been included in the financial statements. Advertising Costs Advertising costs are expensed as incurred. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain amounts and disclosures. Accordingly, actual results could differ from those estimates. Indirect Expense Allocation Indirect expenses are allocated to program and support services based on estimates of time and usage determined by management. NOTE 3: CONTRIBUTIONS AND ACCOUNTS RECEIVABLE Contribution receivables of $684,381 are due from foundations and governmental agencies as of December 31, 2012. Management has deemed all receivables to be fully collectable and therefore no allowance for doubtful accounts has been provided by management. NOTE 4: INVESTMENTS ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:
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JUMA VENTURES NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2012
NOTE 4: INVESTMENTS (continued) ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. In accordance with ASC 820, these inputs are summarized in the three broad levels listed below: Level 1 – Valuations based on quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access. Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement. As of December 31, 2012, the investments held by Juma Ventures were deemed to be Level 1 assets. NOTE 5: PROPERTY AND EQUIPMENT Property and equipment and related accumulated depreciation, as of December 31, 2012 are as follows: Furniture and equipment Less: Accumulated depreciation/amortization Net property and equipment
$ $
437,211 (355,053) 82,158
Depreciation and amortization of leasehold improvements and equipment for the year ended December 31, 2012 totaled $33,846 NOTE 6: LEASES Juma Ventures is obligated under operating leases for its facility. The approximate future minimum lease payments related to these leases are as follows: 2013 2014 2015 2016 2017 Total
$
$
231,528 189,439 187,087 197,907 8,265 814,226
Total rent expense for the year ended December 31, 2012 was $227,086.
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JUMA VENTURES NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2012
NOTE 7: COMMITMENTS AND CONTINGENCIES Grant awards require the fulfillment of certain conditions as set forth in the grant instruments. Failure to fulfill the conditions could result in return of the funds to the grantors. Juma Ventures deems this contingency remote. Management is of the opinion that Juma Ventures has complied with the terms of all grants. NOTE 8: TEMPORARILY RESTRICTED NET ASSETS As of December 31, 2012, temporarily restricted net assets of $1,500,715 are available for program services and employment development activities. Temporarily restricted net assets of $1,234,195 are restricted for the Individual Development Account (IDA) program participants’ savings match claims over a period of up to three years from the time the participant enters the program. NOTE 9: CONCENTRATIONS Juma Ventures has defined its financial instruments, which are potentially subject to credit risk as cash, investments and accounts receivable. At December 31, 2012, Juma Ventures had approximately $1,398,321 of cash deposits in excess of federally insured limits. Investments consist of money market funds and certificates of deposit. Grants and contributions receivables consist primarily of unsecured amounts due from foundations and governmental agencies. Approximately 94% of these receivables are due from two donors. For the year ended December 31, 2012, one concessionaire provided approximately 74% of the employment projects revenue through exclusive contracts with multiple venues. NOTE 10: SUBSEQUENT EVENTS Juma Ventures has reviewed the results of operations for the period of time from December 31, 2012 through September 4, 2013, the date the financial statements are available to be issued, and has determined that no adjustments are necessary to the amounts reported in the accompanying financial statements and no subsequent events have occurred, the nature of which would require disclosure.
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