Financial Statements
December 31, 2014
Contents
United Way of York County, Inc. December 31, 2014
Financial Statements: Independent Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Statements of Financial Position as of December 31, 2014 and 2013. . . . . . . . . . . . . . . . Statements of Activities for the Years Ended December 31, 2014 and 2013 . . . . . . . . . . Statements of Functional Expenses for the Years Ended December 31, 2014 and 2013 . Statements of Cash Flows for the Years Ended December 31, 2014 and 2013. . . . . . . . . Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1 3 4-5 6-7 8 9
Independent Auditors’ Report
To the Board of Directors United Way of York County, Inc. Kennebunk, Maine We have audited the accompanying financial statements of the United Way of York County, Inc. (a non-profit corporation), which comprise the statement of financial position as of December 31, 2014 and 2013, and the related statements of activities, functional expenses, and cash flows for the years then ended, and the related notes to the financial statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these 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 audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 1
Statements of Financial Position
United Way of York County, Inc. As of December 31, 2014 and 2013 2014 Current Assets Cash and cash equivalents Investments Other receivables Pledges receivable, less allowance for doubtful accounts of $99,964 and $103,466, respectively Prepaid expenses
$
Total Current Assets Property and Equipment, net of accumulated depreciation Other Assets Pledges receivable, non-current portion, less allowance for doubtful accounts of $22,564 and $11,849, respectively Beneficial interest in perpetual trusts Assets restricted for permanent endowment
532,916 769 35,132 970,406
$
$
528,865 47,403 1,093,006
10,424 1,549,647
7,549 1,676,823
15,694
24,064
219,035
125,174
273,076 35,123 527,234
267,656 32,427 425,257
Total Assets $ 2,092,575 Current Liabilities Accounts payable Accrued expenses Designations payable Program investments payable Current portion of long-term debt
2013
$
2,126,144
$
10,502 18,021 169,189 660,000 2,511 860,223
Total Current Liabilities
859 17,037 110,628 640,000 2,648 771,172
Total Long-Term Liabilities
8,840 8,840
11,489 11,489
Total Liabilities
780,012
871,712
852,545 20,711 4,206
748,190 18,115 10,064 776,369 186,094 291,969 1,254,432
Long-Term Liabilities Long-term debt, net of current portion
Net Assets Unrestricted: Available for operations Board designated Net investment in property and equipment Total Unrestricted Temporarily restricted Permanently restricted Total Net Assets Total Liabilities and Net Assets $
See accompanying independent auditors' report and notes to financial statements. Certain amounts have been reclassified for comparative purposes. 3
877,462 137,613 297,488 1,312,563 2,092,575
$
2,126,144
Statement of Activities
United Way of York County, Inc. For the Year Ended December 31, 2014 Unrestricted Revenues and Other Support Campaign results: Local campaign Estimated uncollectible pledges Donor designated
$
Temporarily Restricted
Total campaign results
1,309,645 $ (83,300) (188,660) 1,037,685
Other campaign Investment income Trust income Donations Corporate sponsorships Grant income Grant administration reimbursement In-kind revenue Miscellaneous income Net assets released from restrictions Total Revenues and Other Support
139,942 4,799 12,580 2,145 26,950 79,093 26,381 936 1,184 188,689 1,520,384
Expenses Program services Management and general Fundraising Total Expenses
1,168,985 104,616 145,690 1,419,291
Revenues Over (Under) Expenses
101,093
Change in value of beneficial interest in a perpetual trust and endowments
Net assets at beginning of year Net Assets at End of Year $
(48,481)
-
Total
$
1,309,645 (83,300) (188,660) 1,037,685
100 100
139,942 4,799 12,580 2,245 26,950 219,001 26,381 1,236 1,184 1,472,003
-
1,168,985 104,616 145,690 1,419,291
100
52,712
-
5,419 5,419
5,419 5,419
101,093
(48,481)
5,519
58,131
776,369
186,094
291,969
1,254,432
877,462
$
137,613
See accompanying independent auditors' report and notes to financial statements. 4
$
139,908 300 (188,689) (48,481)
-
Increase (Decrease) in Net Assets
-
Permanently Restricted
$
297,488
$
1,312,563
Statement of Activities
United Way of York County, Inc. For the Year Ended December 31, 2013 Unrestricted Revenues and Other Support Campaign results: Local campaign Estimated uncollectible pledges Donor designated
$
Temporarily Restricted
Total campaign results
1,238,691 $ (88,642) (170,390) 979,659
Other campaign Investment income Trust income Donations Corporate sponsorships Grant income Grant administration reimbursement In-kind revenue Miscellaneous income Net assets released from restrictions Total Revenues and Other Support
177,705 7,849 12,863 5,700 16,850 28,357 11,820 4,010 4,569 196,338 1,445,720
Expenses Program services Management and general Fundraising
-
Permanently Restricted
$
235,208 (196,338) 38,870
-
Total
$
1,238,691 (88,642) (170,390) 979,659
-
177,705 7,849 12,863 5,700 16,850 263,565 11,820 4,010 4,569 1,484,590
-
-
1,186,135 105,605 152,674 1,444,414
Total Expenses
1,186,135 105,605 152,674 1,444,414
Revenues Over (Under) Expenses
1,306
38,870
-
40,176
-
-
33,660 33,660
33,660 33,660
1,306
38,870
33,660
73,836
526,978 (379,754) 147,224
258,309 258,309
1,180,596 1,180,596
Change in value of beneficial interest in perpetual trusts and endowment
Increase in Net Assets Net assets at beginning of year, as previously stated Reclassification (See Note P) Net assets at beginning of year, as restated
395,309 379,754 775,063
Net Assets at End of Year $
776,369
$
186,094
See accompanying independent auditors' report and notes to financial statements. Certain amounts have been reclassified for comparative purposes. 5
$
291,969
$
1,254,432
Statement of Functional Expenses
United Way of York County, Inc. For the Year Ended December 31, 2014 Program Services Program Investments and Grant Funded Programs
Volunteer Center
Supporting Services Community Impact
Management and General
Total
Fundraising
Total
Personnel expenses: Salaries Payroll taxes and benefits
$
66,414 25,748
$
25,448 5,940
$
112,423 31,502
$
204,285 63,190
$
54,393 14,917
$
74,736 19,987
$
333,414 98,094
Total personnel expenses
92,162
31,388
143,925
267,475
69,310
94,723
431,508
Community investment expenses Office and photocopy Postage Marketing and communication Travel Publications and periodicals Memberships UWW dues Staff and volunteer development Contracted services Special events Campaign materials and expenses Loaned executive program Third party processing fees Professional fees In-kind expenses Miscellaneous and interest Rent Cleaning and maintenance Telephone Electricity and heat
824,514 1,236 -
2,331 710 144 1,181 250 2,149 3,789 829 465 1,060
100 6,236 2,012 2,626 4,477 100 6,260 5,332 2,389 679 11,038 2,475 1,355 3,115
824,614 8,567 2,722 2,770 5,658 350 8,409 5,332 2,389 679 1,236 14,827 3,304 1,820 4,175
1,876 534 172 407 592 1,688 1,959 7,774 9,350 2,183 3,455 874 424 1,024
2,702 2,949 337 2,555 25 2,831 30 831 9,898 17,447 (1,333) 4,992 1,231 613 1,463
824,614 13,145 6,205 3,279 8,620 592 2,063 13,199 13,136 2,389 1,510 9,898 17,447 (1,333) 9,350 1,236 2,183 23,274 5,409 2,857 6,662
105 2,788 740
550 2,226 2,156
655 5,014 2,896
206 700 674
367 1,010 974
1,228 6,724 4,544
47,929
197,051
1,162,892
103,202
143,645
1,409,739
1,558
4,535
6,093
1,414
2,045
9,552
New equipment and repairs Technology contracts Commercial insurance
-
Expenses before depreciation
917,912
Depreciation Total Expenses
$
917,912
$
49,487
$
201,586
See accompanying independent auditors' report and notes to financial statements. 6
$
1,168,985
$
104,616
$
145,690
$
1,419,291
Statement of Functional Expenses
United Way of York County, Inc. For the Year Ended December 31, 2013 Supporting Services
Program Services Program Investments and Grant Funded Programs
Volunteer Center
Community Impact
Management and General
Total
Fundraising
Total
Personnel expenses: Salaries Payroll taxes and benefits
$
64,235 18,627
$
24,842 9,035
$
124,784 34,594
$
Total personnel expenses
82,862
33,877
Community investment expenses Office and photocopy Postage Marketing and communication Travel Publications and periodicals Memberships UWW dues Staff and volunteer development Contracted services Special events Campaign materials and expenses Loaned executive program Third party processing fees Professional fees In-kind expenses Miscellaneous and interest Rent Cleaning and maintenance Telephone Electricity and heat
817,882 3,960 -
12,030 1,827 585 321 2,871 500 1,631 55 3,002 1,003 450 927
New equipment and repairs Technology contracts Commercial insurance Expenses before depreciation
904,704
393 649 561 60,682
1,318 2,548 2,182 213,946
1,711 3,197 2,743 1,179,332
1,393
5,410
6,803
Depreciation Total Expenses
$
904,704
$
62,075
159,378
213,861 62,256
5,096 2,370 1,771 5,342 190 6,339 298 4,800 1,321 (50) 11,664 3,981 1,763 3,635
$
219,356
See accompanying independent auditors' report and notes to financial statements. 7
$
$
62,204 15,093
$
73,651 21,057
$
349,716 98,406
276,117
77,297
94,708
448,122
829,912 6,923 2,955 2,092 8,213 690 7,970 353 4,800 1,321 3,960 (50) 14,666 4,984 2,213 4,562
1,462 1,253 367 35 568 1,495 1,962 1,034 451 10,500 50 531 3,611 1,183 537 1,106
2,157 3,324 1,458 3,746 228 2,716 1,545 253 1,157 10,128 6,331 10,769 4,997 1,673 749 1,545
829,912 10,542 7,532 3,917 11,994 796 2,185 12,648 2,932 5,504 2,478 10,128 6,331 10,769 10,500 4,010 481 23,274 7,840 3,499 7,213
(1,295) 794 677 103,618
799 1,138 933 150,354
1,215 5,129 4,353 1,433,304
2,320
11,110
1,186,135
1,987 $
105,605
$
152,674
$
1,444,414
Statements of Cash Flows
United Way of York County, Inc. For the Years Ended December 31, 2014 and 2013 2014 Operating Activities Increase in net assets Adjustments to reconcile change in net assets to net cash provided (used) by operating activities: Depreciation Change in value of beneficial interest in perpetual trusts Change in allowance for doubtful accounts (Increase) Decrease in operating assets: Pledges receivable Other receivable Prepaid expenses Increase (Decrease) in operating liabilities: Accounts payable Accrued expenses Designations payable Program investments payable
$
Net Cash Provided by Operating Activities Investing Activities Sales (purchases) of investments, net Purchases of property and equipment Net Cash Used by Investing Activities Financing Activities Proceeds from long-term borrowings Repayment of long-term borrowings Net Cash Provided (Used) by Financing Activities Net Increase in Cash Cash at beginning of year Cash at End of Year $
See accompanying independent auditors' report and notes to financial statements. 8
58,131
2013 $
73,836
9,552 (5,420) 7,213
11,110 (33,659) 42,521
21,526 12,271 (2,875)
83,680 (21,214) (104)
(9,643) (984) (58,561) (20,000)
1,544 (4,766) (25,264) 12,244
11,210
139,928
(3,466) (1,181)
(3,336) (16,307)
(4,647)
(19,643)
(2,512)
14,000 (1,362)
(2,512)
12,638
4,051
132,923
528,865
395,942
532,916
$
528,865
Notes to Financial Statements - Continued
United Way of York County, Inc. Note A - Summary of Significant Accounting Policies - Continued Revenue and Expense Recognition The financial statements of the Organization have been prepared on the accrual basis of accounting. Revenues received are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and/or nature of any donor restrictions. Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized. All other donor restricted support is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a restriction expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statement of Activities as net assets released from restrictions. Expenses are recognized as incurred. Expense amounts are allocated among the various programs and supporting services both directly and in accordance with a cost allocation basis. Donated Services and Materials Amounts are reported in the financial statements for voluntary donations of services when those services create or enhance non-financial assets or require specialized skills provided by individuals possessing those skills and which typically would be purchased if not provided by donation. Donated materials are recorded at the fair value at the date of the gift. Various skilled labor and materials are donated to the Organization. The value of those services and materials was $1,236 and $4,010 for the years ended December 31, 2014 and 2013, respectively. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Cash and Cash Equivalents For purposes of the statements of cash flows, the Organization considers all unrestricted highly liquid investments with an initial maturity of three months or less to be cash equivalents. The Organization maintains cash with local banks, and at times, balances may exceed the Federal Deposit Insurance Corporation limit of $250,000 per depositor. The uninsured balance at December 31, 2014 was $0 and $53,594 as of December 31, 2013. The Organization has not experienced any losses in such accounts. Grants and Accounts Receivable Other receivables consist mostly of grants receivable from the State of Maine and other organizations and charges for services from other organizations. The Organization expects to collect these amounts in full; therefore, no allowance for doubtful accounts has been established for other receivables as of December 31, 2014 and 2013.
10
Notes to Financial Statements - Continued
United Way of York County, Inc. Note A - Summary of Significant Accounting Policies - Continued Pledges Receivable Pledges are recorded in the financial statements upon receipt of pledge information from the campaigns. The Organization honors designations made to other organizations. Pledges are recorded at their net realizable value; this is achieved by creating allowances for estimated uncollectible pledges and for estimated expenses incurred by others. Pledges not expected to be collected within one year are reported as non-current in the statement of financial position. The Organization uses the allowance method to determine uncollectible pledges receivable. An allowance for doubtful accounts is booked in the initial campaign year based upon management estimates of current economic factors applied to gross campaign, excluding donor designations. This allowance is revisited and recalculated as deemed necessary by management as of December 31 of the collection year based on receipts through the collection year and the first quarter of the following year. Investments The Organization reports investments in marketable securities with readily determinable fair values and all investments in debt securities at their fair values in the statement of financial position. Unrealized gains and losses are included in the change in net assets, in the accompanying statement of activities. Property and Equipment Acquisitions of buildings and equipment are presented as assets of the Organization. Fixed assets acquired with unrestricted resources of the Organization are capitalized at cost; assets donated to the Organization are capitalized at fair market value. Assets are depreciated or amortized on a straight-line basis over their estimated useful lives ranging from 3 to 8 years. Expenditures for repairs and maintenance are expended when incurred and betterments are capitalized. Assets sold or otherwise disposed of are removed from the accounts, along with the related depreciation allowances, and any gain or loss is recognized. Depreciation expense for the years ended December 31, 2014 and 2013 was $9,552 and $11,110, respectively. Deferred Revenue Resources received in exchange transactions are recognized as deferred revenue to the extent that the earnings process has not been completed. These resources are recorded as unrestricted revenues when the related obligations have been satisfied. Expense Allocation Expenses are charged to each program based on direct expenditures incurred. Any expenditures not directly chargeable are allocated to a program based on related salary expenses or other appropriate basis. Advertising Expenses Advertising costs are expensed as incurred. Advertising expense was $3,280 and $3,917 for the years ended December 31, 2014 and 2013, respectively. 11
Notes to Financial Statements - Continued
United Way of York County, Inc. Note B - Certificates of Deposit The cash and cash equivalents as of December 31, 2014 and 2013 include certificates of deposit with values of $110,037 and $107,953, respectively. The certificates of deposit held at December 31, 2014 have maturity dates ranging from June 2015 to December 2019. Any penalties for early withdrawal would not have a material effect on the financial statements.
Note C - Pledges Receivable Pledges receivable as of December 31, 2014 and 2013 are as follows: 2014 Receivable in less than one year Less allowance for doubtful accounts, current portion Pledges receivable, current portion
2013
$ 1,070,370 (99,964) 970,406
$ 1,196,472 (103,466) 1,093,006
Receivable in more than one year Less allowance for doubtful accounts, long-term portion Pledges receivable, long-term portion
241,599 (22,564) 219,035
137,023 (11,849) 125,174
Total pledges receivable, net of allowance
$ 1,189,441
$ 1,218,180
Note D - Investments and Beneficial Interest in Assets Held by Others Investments and beneficial interest in assets held by others consist of mutual funds, stocks, bonds and other assets and are stated at fair value as of December 31, 2014 and 2013 as follows: 2013
2014 Equities Mutual funds - balanced fund Beneficial interests in assets held by others
$
$
12
769 35,123 273,076 308,968
$
$
--32,427 267,656 300,083
Notes to Financial Statements - Continued
United Way of York County, Inc. Note D - Investments and Beneficial Interest in Assets Held by Others - Continued Investment returns from these investments for the years ended December 31 are summarized as follows: 2014 Interest and dividend income Net realized and unrealized gains (losses) on investments
$
2,203 8,016 10,219
$
2013 $ $
3,349 38,160 41,509
Investments and beneficial interest in assets held by others are reported as: 2013
2014 Short term investments Assets restricted for permanent endowment Beneficial interest in assets held by others
$
$
769 35,123 273,076 308,968
$
$
--32,427 267,656 300,083
Investment income is recorded net of investment fees. Note E - Fair Value Measurements The Organization applies a framework for measuring fair values under generally accepted accounting principles which applies to all financial instruments that are measured and reported at fair value. The framework for measuring fair value of financial assets and liabilities includes a hierarchy of three levels for observable independent market inputs and unobservable market assumptions. A description of the inputs used in the valuation of assets and liabilities under this hierarchy is as follows: Level 1 – Quoted prices are available in active markets, such as the New York or American Stock Exchange markets, for identical investments as of the reporting date. Level 1 also includes U.S. Treasury and federal agency securities and mortgage-backed securities traded by brokers or dealers in active markets. Level 2 – Pricing inputs are observable for the investments, either directly or indirectly, as of the reporting date, but are not the same as those used in Level 1. Fair values are obtained from third party pricing services that may use models or other valuation methodologies to derive market value. These may be investments traded in less active dealer or broker markets. Level 3 – Pricing inputs are unobservable for investments and valuations are derived from other methodologies not based on market exchange, dealer or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets and liabilities. The types of investments in this category would generally include debt and equity securities issued by private entities and partnerships. 13
Notes to Financial Statements - Continued
United Way of York County, Inc. Note E - Fair Value Measurements - Continued The following summarizes fair values of investment assets by levels within the fair value hierarchy at December 31, 2014:
769 $ 35,123
Level 2 -----
--35,892 $
273,076 273,076
Level 1 Equities Mutual funds - balanced fund Beneficial interests in assets held by others Total investments
$
$
$
$
Level 3 ---------
Total $
$
769 35,123 273,076 308,968
The following summarizes fair values of investment assets by levels within the fair value hierarchy at December 31, 2013:
Mutual funds - balanced fund Beneficial interests in assets held by others Total investments
Level 1 Level 2 $ 32,427 $ ---
$
--32,427 $
267,656 267,656
Level 3 $ ---
$
Total 32,427
-----
$
267,656 300,083
$
Note F - Endowment Fund The Organization has endowment funds established for a number of purposes. As required by generally accepted accounting principles, net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed restrictions. The funds are recorded at fair value and the principal is permanently or temporarily restricted depending on the intention of the donor. Earnings and losses on these funds are considered temporarily restricted or unrestricted depending on donor intentions and are recorded as such. The State of Maine has adopted the Uniform Prudent Management of Institutional Funds Act of 2006 (UPMIFA). In accordance with UPMIFA the Organization classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the Organization in a manner consistent with the standard of prudence prescribed by UPMIFA.
14
Notes to Financial Statements - Continued
United Way of York County, Inc. Note F - Endowment Fund - Continued In accordance with UPMIFA, the Organization considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds: (1) the duration and preservation of the various funds, (2) the purposes of the donor-restricted endowment funds, (3) general economic conditions, (4) the possible effect of inflation and deflation, (5) the expected total return from income and the appreciation of investments, (6) other resources of the Organization, and (7) the Organization’s investment policies. The Organization has not adopted a formal investment policy. Currently, the endowment is invested with a mutual fund company and the Board of Directors evaluates the fund’s performance annually and then determines if any changes need to be made. The Organization has not adopted a formal spending policy. Currently, all earnings and losses on the donor-restricted endowment are considered unrestricted upon appropriation. Endowment net asset composition by type of fund is as follows at December 31, 2014:
Board-designated endowment funds Donor-restricted endowment funds Total
Temporarily Unrestricted Restricted $ 10,711 $ ------$ 10,711 $ ---
Permanently Restricted Total $ --- $ 10,711 24,412 24,412 $ 24,412 $ 35,123
Changes in endowment net assets for the year ended December 31, 2014 are as follows:
Unrestricted Endowment, beginning of year $ Contributions received Investment return: Investment income, net Realized and unrealized gains (losses) Total investment return Appropriation of endowment assets for expenditure Transfers to unrestricted Endowment, end of year
$
8,115 ---
Temporarily Restricted
Permanently Restricted
$
$
-----
Total
24,312 $ 100
32,427 100
-------
3,681 (1,085) 2,596
-------
3,681 (1,085) 2,596
--2,596 10,711 $
--(2,596) ---
----24,412 $
----35,123
15
$
Notes to Financial Statements - Continued
United Way of York County, Inc. Note F - Endowment Fund - Continued Endowment net asset composition by type of fund is as follows at December 31, 2013:
Board-designated endowment funds Donor-restricted endowment funds Total Funds
Temporarily Unrestricted Restricted $ 8,115 $ ------$ 8,115 $ ---
Permanently Restricted $ --24,312 $ 24,312
Total $ 8,115 24,312 $ 32,427
Changes in endowment net assets for the year ended December 31, 2013 are as follows:
Unrestricted Endowment, beginning of year $ Contributions received Investment return: Investment income, net Realized and unrealized gains (losses) Total investment return Appropriation of endowment assets for expenditure Transfers to unrestricted Endowment, end of year $
3,560 ---
Temporarily Restricted
Permanently Restricted
$
$
--------4,555 8,115 $
-----
Total
24,312 ---
$
27,872 ---
3,644 911 4,555
-------
3,644 911 4,555
--(4,555) ---
----24,312
----32,427
$
$
Note G - Property and Equipment Property and equipment consist of the following as of December 31: 2013
2014 Property and equipment Less accumulated depreciation
$ $
74,702 59,008 15,694
$ $
73,521 49,457 24,064
Note H - Line of Credit The Organization has an operating line of credit with a local bank with a maximum amount available for borrowing of $250,000 with an interest rate at the Wall Street Prime (3.25% at December 31, 2014 and 2013) plus 0.5%. The line renews annually and is unsecured. There was no outstanding balance at December 31, 2014 and 2013. 16
Notes to Financial Statements - Continued
United Way of York County, Inc. Note I - Long-Term Liabilities Long-term debt consists of the following: 2014 Note payable to bank with monthly payments of $266, which includes interest of 5.25%. The note matures December 2018 and is secured by a photocopier. Less current portion Long-term debt, net of current portion
$
11,488 2,648 8,840
$
2013
$ $
14,000 2,511 11,489
Required future annual principal payments on long-term debt are as follows: 2015 2016 2017 2018
$
$
2,648 2,791 2,945 3,104 11,488
Note J - Board Designated Net Assets Board designated net assets consist of the following as of December 31: 2014 Youth Financial Education Fund Partners for a Hunger-Free York County Earnings on Permanently Restricted
$
$
17
--10,000 10,711 20,711
2013 $
$
10,000 --8,115 18,115
Notes to Financial Statements - Continued
United Way of York County, Inc. Note K - Temporarily Restricted Net Assets Temporarily restricted net assets consist of the following as of December 31: 2014 Service Enterprise Volunteer Readers Volunteer Solutions Coordinator Youth Financial Education Fund MSAD 60 (Nellie Mae) Partners for a Hunger Free York County Keep York County Warm Every Child Matters Volunteer Engagement Center
$
--4,077 --18,337 --108,981 805 413 5,000 137,613
$
2013
$
10,700 7,652 2,100 30,810 806 134,026 ------186,094
See Note P for reclassification of temporarily restricted net assets for the year ended December 31, 2013.
Note L - Permanently Restricted Net Assets The Organization is the beneficiary under two irrevocable perpetual trusts. These funds are held and controlled by HM Payson, as trustee. The Organization is entitled to 16.67% and 10% of the fair value of the Levasseur and Ross trusts, respectively. Trust principal is permanently restricted, and as such the Organization is not permitted to spend the principal of the trusts, nor does it have control over the investment of the trust assets. Annual distributions from the trusts are reported as trust income and amounted to $12,580 and $12,863 in 2014 and 2013, respectively. The Organization also maintains an endowment in which principal must be maintained in perpetuity and earnings are considered unrestricted. Permanently restricted net assets consist of the following as of December 31: 2014 Levasseur Trust Ross Trust UWYC Endowment Fund
$
$
18
54,125 218,951 24,412 297,488
2013 $
$
54,233 213,424 24,312 291,969
Notes to Financial Statements - Continued
United Way of York County, Inc. Note M - Retirement Plan The Organization provides a defined contribution retirement plan under section 403(b) of the Internal Revenue Code. The plan is funded through the purchase of mutual funds. All employees who work a minimum of twenty hours per week may contribute to the plan through salary reduction. After one year of service, there is a matching element where the Organization matches an eligible employee’s selfcontribution dollar for dollar up to a maximum of 4% of the employee’s gross compensation. Organization contributions vest after one year in the plan. The Organization’s contributions for the years ended December 31, 2014 and 2013 amounted to $10,319 and $11,688, respectively.
Note N - Income Taxes The United Way of York County, Inc. qualifies as an organization exempt from federal income tax under Internal Revenue Code Section 501(c)(3) and files a Form 990 tax return. With few exceptions, the Organization is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2011 due to the statute of limitations. The Organization has adopted the provisions of FASB ASC, Income Taxes. Management of the Organization believes it has no material uncertain tax positions and, accordingly it will not recognize any liability for unrecognized tax benefits.
Note O - Lease Arrangements The Organization leases space in Kennebunk, Maine from a third party under an operating lease which expires in December 2019. Rent is payable in fixed monthly installments of $2,075. Total rental expense was $23,274 for each of the years ended December 31, 2014 and 2013. The future minimum lease payments at December 31, 2014 for the next five fiscal years are as follows: Operating Leases $ 24,903 24,903 24,903 24,903 24,903
2015 2016 2017 2018 2019
19
Notes to Financial Statements - Continued
United Way of York County, Inc. Note P - Net Asset Reclassifications During the year ended December 31, 2013, the following reclassifications were made between unrestricted net assets and temporarily restricted net assets as of January 1, 2013: To correctly reflect the treatment that the net pledges receivable (after the allowance, designations and program investments payable) is not restricted for future periods, or donor restricted for specific purposes, at December 31, 2012
$
To correct an understatement of the temporarily restricted portion of funds held for the Partners for a Hunger Free York County at December 31, 2012 Total effect on temporarily restricted net assets
(399,754)
20,000
$
(379,754)
Note Q - Subsequent Events Management has made an evaluation of subsequent events to and including July 30, 2015, which was the date the financial statements were available to be issued, and determined that any subsequent events that would require recognition or disclosure have been considered in the preparation of the financial statements.
20