Contents
United Way of York County, Inc. December 31, 2015
Financial Statements: Independent Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Statements of Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Statements of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Statements of Functional Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1 3 4 6 8 9
Statements of Financial Position
United Way of York County, Inc. As of December 31, 2015 and 2014 2015 Current Assets Cash and cash equivalents Investments Other receivables Pledges receivable, less allowance for doubtful accounts of $112,556 and $99,964, 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 $20,297 and $22,564, respectively Beneficial interest in perpetual trusts Assets restricted for permanent endowment
571,864 20,657 21,110 891,229
$
$
532,916 769 35,132 970,406
5,087 1,509,947
10,424 1,549,647
11,439
15,694
160,703
219,035
251,453 34,938 447,094
273,076 35,123 527,234
Total Assets $ 1,968,480 Current Liabilities Accounts payable Accrued expenses Designations payable Program investments payable Current portion of long-term debt
2014
$
2,092,575
$
859 17,037 110,628 640,000 2,648 771,172
Total Current Liabilities
15,420 19,875 75,650 651,000 2,791 764,736
Total Long-Term Liabilities
6,049 6,049
8,840 8,840
Total Liabilities
770,785
780,012
831,584 60,526 2,599
852,545 20,711 4,206
894,709 27,121 275,865 1,197,695
877,462 137,613 297,488 1,312,563
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. 3
1,968,480
$
2,092,575
Statement of Activities
United Way of York County, Inc. For the Year Ended December 31, 2015 Unrestricted Revenues and Other Support Campaign results: Local campaign Estimated uncollectible pledges Donor designated
$
Temporarily Restricted
Total campaign results
1,287,188 $ (60,072) (157,284) 1,069,832
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
101,820 1,937 13,002 1,050 26,250 24,534 12,757 2,240 345 272,275 1,526,042
Expenses Program services Management and general Fundraising Total Expenses
1,281,707 97,516 129,572 1,508,795
Revenues Over (Under) Expenses
17,247
Change in value of beneficial interest in a perpetual trust and endowments
Net assets at beginning of year Net Assets at End of Year $
(110,492)
-
-
1,281,707 97,516 129,572 1,508,795
-
(93,245)
(21,623)
(21,623) (114,868)
877,462
137,613
297,488
27,121
$
1,287,188 (60,072) (157,284) 1,069,832
-
(21,623)
$
$
101,820 1,937 13,002 1,050 26,250 182,592 12,757 5,965 345 1,415,550
(110,492)
894,709
Total
-
17,247
See accompanying independent auditors' report and notes to financial statements. 4
$
158,058 3,725 (272,275) (110,492)
-
Increase (Decrease) in Net Assets
-
Permanently Restricted
275,865
1,312,563 $
1,197,695
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 perpetual trusts and endowment
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
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. 5
$
139,908 300 (188,689) (48,481)
-
Increase (Decrease) in Net Assets
-
Permanently Restricted
$
297,488
$
1,312,563
Statement of Functional Expenses
United Way of York County, Inc. For the Year Ended December 31, 2015 Supporting Services
Program Services Program Investments and Grant Funded Volunteer Programs Center
Community Impact
$
$
Management and General
Total
Fundraising
Total
Personnel expenses: Salaries Payroll taxes and benefits
53,033 -
$
39,962 15,104
156,366 37,048
$
249,361 52,152
$
58,185 14,090
$
57,677 17,692
$
365,223 83,934
Total personnel expenses
53,033
55,066
193,414
301,513
72,275
75,369
449,157
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 Utilities New equipment and repairs Technology contracts Commercial insurance
904,925 5,965 -
1,718 797 257 1,017 250 2,239 458 4,594 675 529 919 561 1,223 902
2,015 4,617 1,770 1,999 4,461 100 5,924 2,296 2,188 545 12,153 1,874 1,402 2,544 1,612 2,168 2,382
906,940 6,335 2,567 2,256 5,478 350 8,163 2,754 2,188 545 5,965 16,747 2,549 1,931 3,463 2,173 3,391 3,284
1,159 559 180 209 631 2,889 1,570 1,123 9,595 12 3,221 473 371 1,216 393 559 632
2,037 851 1,219 1,787 25 2,406 1,648 (635) 4,949 18,719 10,768 95 4,935 725 568 987 603 856 969
906,940 9,531 3,977 3,655 7,474 631 3,264 12,139 5,525 2,188 (90) 4,949 18,719 10,768 9,595 5,965 107 24,903 3,747 2,870 5,666 3,169 4,806 4,885
Expenses before depreciation
963,923
71,205
243,464
1,278,592
97,067
128,881
1,504,540
643
2,472
3,115
449
691
4,255
Depreciation Total Expenses
$
963,923
$
71,848
$
245,936
$
See accompanying independent auditors' report and notes to financial statements. 6
1,281,707
$
97,516
$
129,572
$
1,508,795
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 Personnel expenses: Salaries Payroll taxes and benefits
$
66,414 25,748
Volunteer Center $
25,448 5,940
Supporting Services Community Impact $
Management and General
Total
112,423 31,502
$
204,285 63,190
$
54,393 14,917
Fundraising $
74,736 19,987
Total $
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 Utilities New equipment and repairs Technology contracts Commercial insurance Expenses before depreciation
824,514 1,236 917,912
2,331 710 144 1,181 250 2,149 3,789 829 465 1,060 105 2,788 740 47,929
100 6,236 2,012 2,626 4,477 100 6,260 5,332 2,389 679 11,038 2,475 1,355 3,115 550 2,226 2,156 197,051
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 4,175 655 5,014 2,896 1,162,892
1,876 534 172 407 592 1,688 1,959 7,774 9,350 2,183 3,455 874 424 1,024 206 700 674 103,202
2,702 2,949 337 2,555 25 2,831 30 831 9,898 17,447 (1,333) 4,992 1,231 613 1,463 367 1,010 974 143,645
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 1,228 6,724 4,544 1,409,739
1,558
4,535
6,093
1,414
Depreciation Total Expenses
$
917,912
$
49,487
$
201,586
$
See accompanying independent auditors' report and notes to financial statements. 7
1,168,985
$
104,616
2,045 $
145,690
9,552 $
1,419,291
Statements of Cash Flows
United Way of York County, Inc. For the Years Ended December 31, 2015 and 2014 2015 Operating Activities Increase (Decrease) in net assets Adjustments to reconcile change in net assets to net cash provided (used) by operating activities: Depreciation Change in value of beneficial interest in perpetual trusts Noncash contributions 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
2014
$ (114,868) $
Net Cash Provided by Operating Activities Investing Activities Proceeds from investment sales Purchase of investments Purchases of property and equipment Net Cash Provided (Used) by Investing Activities Financing Activities Repayment of long-term debt Net Cash Used by Financing Activities Net Increase in Cash Cash at beginning of year
58,131
4,254 21,623 (26,659) 10,325
9,552 (5,420) 7,213
127,184 14,022 5,337
21,526 12,271 (2,875)
14,561 2,838 (34,978) 11,000
(9,643) (984) (58,561) (20,000)
34,639
11,210
6,957 -
(3,466) (1,181)
6,957
(4,647)
(2,648)
(2,512)
(2,648)
(2,512)
38,948
4,051
532,916
528,865
Cash at End of Year $
571,864
$
532,916
$
548
$
683
Supplemental Disclosure of Cash Flow Information: Cash paid during the year for interest
See accompanying independent auditors' report and notes to financial statements. 8
Notes to Financial Statements
United Way of York County, Inc. Note A - Summary of Significant Accounting Policies Nature of Activities United Way of York County, Inc. (the “Organization�) is a non-profit corporation founded in 1986 exempt from income tax under section 501(c)(3) of the Internal Revenue Code. The mission of the United Way of York County, Inc. is to strengthen community by bringing people and resources together to effect long-lasting changes that improve lives. The Organization is supported primarily through donations from individuals and businesses in the York County community solicited through yearly campaigns and is governed by a volunteer board of directors. Approximately 76% and 71% of the Organization’s support for the years ended December 31, 2015 and 2014, respectively, came from campaign donations. The Organization also makes applications for grant funding from governmental agencies and private foundations. Basis of Presentation The accompanying financial statements include statements of financial position, statements of activities, statements of functional expenses, and statements of cash flows. The Organization is required to report information regarding its financial position and activities according to three classes of net assets as follows: Unrestricted - Represents those resources that have no donor-imposed restrictions, neither permanently nor temporarily, and can be used for any purpose designated by the Organization's governing board. Temporarily Restricted - Represents resources and the portion of net assets resulting from contributions and other inflows of assets whose use by the Organization is limited by donorimposed stipulations that either expire by passage of time or can be fulfilled and removed by actions of the Organization pursuant to those stipulations. Permanently Restricted - Represents resources and the portion of net assets resulting from contributions and other inflows of assets whose use is limited by donor-imposed stipulations that neither expire by passage of time nor can be fulfilled or otherwise removed by action of the Organization. Contributions Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence and/or nature of any donor restrictions.
9
Notes to Financial Statements - Continued
United Way of York County, Inc. Note A - Summary of Significant Accounting Policies - Continued Revenue and Expense Recognition The financial statements of the Organization have been prepared on the accrual basis of accounting. Revenues received are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and/or nature of any donor restrictions. Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized. All other donor restricted support is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a restriction expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statement of Activities as net assets released from restrictions. Expenses are recognized as incurred. Expense amounts are allocated among the various programs and supporting services 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 $5,965 and $1,236 for the years ended December 31, 2015 and 2014, 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 Organization has not experienced any losses in such accounts. Grants and Accounts Receivable Other receivables consist 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, 2015 and 2014.
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, 2015 and 2014 was $4,255 and $9,552, 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 $3,655 and $3,279 for the years ended December 31, 2015 and 2014, 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, 2015 and 2014 include certificates of deposit with values of $152,462 and $110,037, respectively. The certificates of deposit held at December 31, 2015 have maturity dates ranging from September 2016 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, 2015 and 2014 are as follows: 2015 Receivable in less than one year Less allowance for doubtful accounts, current portion Pledges receivable, current portion
2014
$ 1,003,785 (112,556) 891,229
$ 1,070,370 (99,964) 970,406
Receivable in more than one year Less allowance for doubtful accounts, long-term portion Pledges receivable, long-term portion
181,000 (20,297) 160,703
241,599 (22,564) 219,035
Total pledges receivable, net of allowance
$ 1,051,932
$ 1,189,441
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, 2015 and 2014 as follows: 2014
2015 Equities Mutual funds - balanced fund Beneficial interests in assets held by others
$
$
12
20,657 34,938 251,453 307,048
$
$
769 35,123 273,076 308,968
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: 2015 Interest and dividend income Net realized and unrealized gains (losses) on investments
$
1,937 (21,623) (19,686)
$
2014 $ $
4,799 5,419 10,218
Investments and beneficial interest in assets held by others are reported as: 2014
2015 Short term investments Assets restricted for permanent endowment Beneficial interest in assets held by others
$
$
20,657 34,938 251,453 307,048
$
$
769 35,123 273,076 308,968
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, 2015:
Equities $ Mutual funds - balanced fund Beneficial interests in assets held by others Total investments $
Level 2 Level 1 20,657 $ --34,938 ----55,595 $
251,453 251,453
$
$
Level 3 ---------
$
$
Total 20,657 34,938 251,453 307,048
The following summarizes fair values of investment assets by levels within the fair value hierarchy at December 31, 2014: Level 1 Equities Mutual funds - balanced fund Beneficial interests in assets held by others Total investments
$
$
Level 2
769 35,123 $
---
--35,892 $
273,076 273,076
Level 3
Total
$
---
$
769 35,123
$
-----
273,076 308,968
$
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, 2015:
Board-designated endowment funds Donor-restricted endowment funds Total
Temporarily Unrestricted Restricted $ 10,526 $ ------$ 10,526 $ ---
Permanently Restricted Total $ --- $ 10,526 24,412 24,412 $ 24,412 $ 34,938
Changes in endowment net assets for the year ended December 31, 2015 are as follows: Temporarily Restricted
Permanently Restricted
$
----(185)
$
--(185) 10,526 $
--185 ---
Unrestricted Endowment, beginning of year Contributions received Investment return Appropriation of endowment assets for expenditure Transfers to unrestricted Endowment, end of year
$
$
10,711 -----
$
Total
24,412 $ -----
35,123 --(185)
----24,412 $
----34,938
Endowment net asset composition by type of fund is as follows at December 31, 2014:
Board-designated endowment funds Donor-restricted endowment funds Total Funds
Temporarily Unrestricted Restricted $ 10,711 $ ------$ 10,711 $ --15
Permanently Restricted $ --24,412 $ 24,412
Total 10,711 24,412 $ 35,123
$
Notes to Financial Statements - Continued
United Way of York County, Inc. Note F - Endowment Fund - Continued 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 ---
-------
3,681 (1,085) 2,596
-------
3,681 (1,085) 2,596
--2,596 10,711 $
--(2,596) ---
----24,412
----35,123
$
$
Note G - Property and Equipment Property and equipment consist of the following as of December 31: 2015 Property and equipment Less accumulated depreciation
$ $
63,695 52,256 11,439
2014 $ $
74,702 59,008 15,694
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 (3.5% and 3.25% at December 31, 2015 and 2014, respectively) plus 0.5%. The line renews annually and is unsecured. There was no outstanding balance at December 31, 2015 and 2014.
16
Notes to Financial Statements - Continued
United Way of York County, Inc. Note I - Long-Term Liabilities Long-term debt consists of the following: 2015 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
$
8,840 2,791 6,049
$
2014
$ $
11,488 2,648 8,840
Required future annual principal payments on long-term debt are as follows: 2016 2017 2018
$
$
2,791 2,945 3,104 8,840
Note J - Board Designated Net Assets Board designated net assets consist of the following as of December 31: 2014
2015 Board reserve Partners for a Hunger-Free York County Earnings on permanently restricted
$
$
17
50,000 --10,526 60,526
$
$
--10,000 10,711 20,711
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: 2015 Tools for Schools Volunteer Readers Keep ME Warm Youth Financial Education Fund Early Childhood Conversation Partners for a Hunger Free York County Keep York County Warm Every Child Matters Volunteer Engagement Center
$
543 3,706 3,692 18,337 843 --------27,121
$
2014 $
$
--4,077 --18,337 --108,981 805 413 5,000 137,613
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 $13,002 and $12,580 in 2015 and 2014, 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
2015 Levasseur Trust Ross Trust UWYC Endowment Fund
$
$
18
50,081 201,372 24,412 275,865
$
$
54,125 218,951 24,412 297,488
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. Discretionary Organization contributions may also be made under the plan. Organization contributions vest after one year in the plan. The Organization’s contributions for the years ended December 31, 2015 and 2014 amounted to $11,022 and $10,319, 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 2012 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 $24,903 and $23,274 for the years ended December 31, 2015 and 2014, respectively. The future minimum lease payments at December 31, 2015 for the next four fiscal years are as follows: Operating Leases $ 24,903 24,903 24,903 24,903
2016 2017 2018 2019 Note P - Subsequent Events
Management has made an evaluation of subsequent events to and including July 28, 2016, 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. 19