PRISM FY2008 Annual Audit
Description
PEOPLE RESPONDINGIN SOCIAL MINISTRYREPORT ON AUDITJANUARY 31, 2009INDEPENDENT AUDITOR'S REPORTTo the Board of DirectorsPeople Responding In Social MinistryWe have audited the accompanying statement of financial position ofPeople Responding In Social Ministry ( a Minnesota nonprofitorganization) as of January 31, 2009 and 2008, and the relatedstatements of activities, functional expenses, and cash flows forthe years t hen ended. T hese financial statements are theresponsibility of the Organization's management. Our responsibilityis to express an opinion on these based on ouraudits.We conducted our audits in accordance with auditing standardsgenerally accepted in the United States of America. Those require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in thefinancial statements. A n audit also includes assessing theaccounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statementpresentation. We believe that our audits provide a reasonable basisfor our opinion.In our opinion, the financial statements referred to above presentfairly, in all material respects, the financial position of PeopleResponding In Social Ministry as of January 31, 2009 and 2008, andthe changes in its net assets and its cash ...
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| Publié par | Chuwyung |
| Nombre de lectures | 13 |
| Langue | English |
Extrait
PEOPLE RESPONDING IN SOCIAL MINISTRY
REPORT ON AUDIT
JANUARY 31, 2009
INDEPENDENT AUDITOR'S REPORT To the Board of Directors People Responding In Social Ministry
We have audited the accompanying statement of financial position of People Responding In Social Ministry (a Minnesota nonprofit organization) as of January 31, 2009 and 2008, and the related statements of activities, functional expenses, and cash flows for the years then ended. These financial statements are the responsibility of the Organization's management. 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of People Responding In Social Ministry as of January 31, 2009 and 2008, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.
LETHERT, SKWIRA, SCHULTZ & CO. LLP
PEOPLE RESPONDING IN SOCIAL MINISTRY
INDEX PAGE NO.
Statement of Financial Position
Statement of Activities
Statement of Functional Expenses
Statement of Cash Flows
Notes to Financial Statements
1
2
3
4
5-14
PEOPLE RESPONDING IN SOCIAL MINISTRY
Statement of Financial Position January 31, 2009 and 2008 ASSETS 2009 Current Assets Cash $ 234,929 $ Accounts receivable (Note 4) 65,309 Unconditional promises to give (Note 5) 9,000 Auto shop receivables, net of allowance for doubtful accounts, 2009 , $850 and 2008, $850 5,580 Ways to Work receivable, net of allowance for doubtful accounts, 2009 , $1,000 and 2008, $9,500 14,257 PFC loans receivable net of allowance for doubtful accounts, 2009 , $5,500 and 2008, $5,500 75,368 Prepaid expenses 15,212 Inventory (Note 7) 274,633 Total Current Assets 694,288 Property and Equipment Furniture and equipment 89,742 Vehicles 254,075 Leasehold improvements 245,848 Total 589,665 Less: Accumulated depreciation 429,056 Total Property and Equipment 160,609 Other Assets Deposits 7,623 Opportunity Fund (Note 8) 5,242 Total Other Assets 12,865 TOTAL ASSETS 867,762 $ LIABILITIES AND NET ASSETS Current Liabilities Current maturities of long-term debt Accounts payable United Way car funding Accrued wages Accrued vacation Deferred revenue Ways to Work, Inc. loan reserve (Note 9) Total Current Liabilities Long-Term Debt (Note 10) Notes payable Less: Current maturities Total Long-Term Debt
Unrestricted Temporarily restricted (Note 12) Total Net Assets TOTAL LIABILITIES AND NET ASSETS
$
$
77,022 38,323 120 11,386 11,916 4,108 20,000 162,875 229,919 77,022 152,897
41,820 510,170 551,990 867,762 $
1
2008 248,646 52,208 -3,351 83,092 49,189 36,886 136,637 610,009 84,202 258,100 245,848 588,150 337,016 251,134 7,623 7,711 15,334 876,477
14,353 28,569 180 10,295 3,801 --57,198 243,770 14,355 229,415
210,172 379,692 589,864 876,477
The accompanying notes are an integral part of this financial statement.
PEOPLE RESPONDING IN SOCIAL MINISTRY
Statement of Activities Years Ended January 31, 2009 and 2008
Support and Revenue Support Member churches Other churches Corporations and foundations Organizations Individuals Ride donations Other donations In kind contributions (Note 13) Special events Family car contributions Grants from Governmental Agencies Metropolitan council grants Municipal grants FEMA grants Revenue Thrift shop revenue Auto shop revenue Miscellaneous Investment income (loss) (Note 8) Gain (loss) on disposal of assets Total Support and Revenue
Restrictions satisfied by payments Expenses Program services Management and general Fund raising Total Expenses Increase (Decrease) in Net Assets Net Assets, Beginning of Year Net Assets, End of Year
2009 Temporarily Unrestricted Restricted
$ 96,282 $ 7,674 $ 7,459 7,191 119,623 126,195 22,579 74,668 163,365 22,067 755 29,046 16,264 15,883 202,919 1,494,882 60,624 867 108,890 11,429
- 186,996 36,620 3,500 - 23,068
15,345 -214,783 -20,272 3,871 (1,608) -176 -1,084,348 2,007,337
1,876,859 (1,876,859)
2,950,768 -61,033 -117,758 -3,129,559 -(168,352) 130,478 210,172 379,692 $ 41,820 $ 510,170 $
The accompanying notes are an integral part of this financial statement.
Total
103,956 14,650 245,818 97,247 185,432 29,801 32,147 1,697,801 61,491 120,319
186,996 40,120 23,068
15,345 214,783 24,143 (1,608) 176 3,091,685
-
2,950,768 61,033 117,758 3,129,559 (37,874) 589,864 551,990
2008 Temporarily Unrestricted Restricted
$ 79,271 $ 6,124 $ 6,129 4,495 251,135 193,753 68,475 70,345 132,971 53,637 - 24,536 3,644 10,721 - 1,440,123 70,064 250 - 43,311
- 200,157 24,250 -- 20,541
10,207 -134,377 520 8,921 4,104 5,620 -(720) -794,344 2,072,617
2,104,561 (2,104,561)
2,746 181 -, 82,397 -83,972 -2,912,550 -(13,645) (31,944) 223,817 411,636 $ 210,172 $ 379,692 $
Total
85,395 10,624 444,888 138,820 186,608 24,536 14,365 1,440,123 70,314 43,311
200,157 24,250 20,541
10,207 134,897 13,025 5,620 (720) 2,866,961
-
2,746,181 82,397 83,972 2,912,550 (45,589) 635,453 589,864
2
PEOPLE RESPONDING IN SOCIAL MINISTRY 3 Statement of Functional Expenses Years Ended January 31, 2009 and 2008 2009 2008 Program Management and Program Management and Services General Fund Raising Total Services General Fund Raising Total Salaries $ 654,634 $ 23,354 $ 51,816 $ 729,804 $ 570,460 $ 22,130 $ 22,130 $ 614,720 Payroll taxes 47,624 1,698 3,770 53,092 42,768 1,659 1,659 46,086 Employee benefits 46,827 1,671 3,706 52,204 43,387 1,683 1,683 46,753 Total Personnel Expenses 749,085 26,723 59,292 835,100 656,615 25,472 25,472 707,559 Donated toys and other 183,161 - - 183,161 145,503 - - 145,503 Donated food 966,412 - - 966,412 925,977 - - 925,977 Donated clothing and household 242,997 - - 242,997 336,627 - - 336,627 Food purchases 13,302 - - 13,302 19,712 - - 19,712 Toys and school supplies - - - -2,787 - - 2,787 Specific assistance 20,795 - - 20,795 25,355 - - 25,355 Supplies 11,996 215 443 12,654 6,382 241 242 6,865 Telephone 15,797 3,083 385 19,265 11,413 1,253 1,098 13,764 Postage and shipping 1,875 104 3,230 5,209 3,507 102 6,528 10,137 Occupancy costs 187,609 3,364 6,927 197,900 147,168 3,386 3,387 153,941 Printing and copying 12,926 5,577 6,843 25,346 3,469 11,789 12,946 28,204 Insurance 10,140 182 374 10,696 10,342 238 238 10,818 Professional services 39,801 13,680 10,313 63,794 43,818 29,800 10,816 84,434 Contract services 16,844 - - 16,844 8,930 - - 8,930 Equipment rental and repair 6,366 227 504 7,097 9,680 375 376 10,431 Transportation expenses 86,893 - - 86,893 93,240 - - 93,240 Fund raising - - 20,321 20,321 - - 12,543 12,543 Membership dues 5,977 398 1,594 7,969 - 4,844 - 4,844 Miscellaneous 23,801 5,196 935 29,932 10,646 2,091 1,209 13,946 Interest 12,146 124 124 12,394 15,409 239 238 15,886 Family Car and Ways to Work expenses 11,782 - - 11,782 24,635 - - 24,635 Auto shop expenses 168,901 - - 168,901 84,712 - - 84,712 Bad debts 76,265 - - 76,265 70,061 - - 70,061 Advertising 458 46 1,784 2,288 1,917 239 6,539 8,695 Total Expenses Before Depreciation 2,865,329 58,919 113,069 3,037,317 2,657,905 80,069 81,632 2,819,606 Depreciation 85,439 2,114 4,689 92,242 88,276 2,328 2,340 92,944 Total Expenses $ 2,950,768 $ 61,033 $ 117,758 $ 3,129,559 $ 2,746,181 $ 82,397 $ 83,972 $ 2,912,550 The accompanying notes are an integral part of this financial statement.
PEOPLE RESPONDING IN SOCIAL MINISTRY Statement of Cash Flows Years Ended Januar and 2008
Cash Flows Fro Operating Activities Decrease in net assets Adjustments to reconcile decrease in net assets to net cash provided by operating activities: Depreciation (Gain) loss on dis Unrealized loss on investments Increase in cash flows from: Accounts receivable Unconditional Auto sho Ways to Work receivable PFC loans receivable Pre Inventor Accounts Accrued wa Accrued vacation Deferred revenue Ways to Work, Inc. loan reserve United Wa Net Cash Provided b Operating Activities Cash Flows Fro Investing Activities Proceeds from sale of Purchase of Purchase of investments Net Cash Used b Investing Activities Cash Flows Used by Financing Activities Re Net Decrease in Cash Cash, Beginning of Year Cash, End of Year
$
$
2009
92 2 68 21 9 1 8 4 20 1 4
248 234
$
$
4
2008 (45,589)
92,944 720 -20,133 -373 4,546 (29,605) (18,568) 39,643 (976) 2,714 (4,414) --(33,220) 28,701 -(61,722) -(61,722) (9,235) (42,256) 290,902 248,646
Supplemental Disclosures of Cash Flows Information During the ended Januar 31 2009 and 2008, the Organization made interest payments of $12 and $15,886, respectively.
The accompanying notes are an integral part of this financial statement.
PEOPLE RESPONDING IN SOCIAL MINISTRY Notes to Financial Statements Januar and 2008
5
NOTE 1 People Responding in Social Ministry (the Organization) is incorporated under the laws of the state of Minnesota as a nonprofit corporation. The Organization offers support-based programming with emergency services supported by communities of faith, schools, local governments, businesses, community groups, foundations, and individuals.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND USE OF ACCOUNTING ESTIMATES Financial Statement Presentation The financial statements of the Organization have been prepared on the accrual basis of accounting and are presented in accordance with the Financial Accounting Standards Board's Statement of Financial Accounting Standards (SFAS) No. 117, "Financial Statements of Not-for-Profit Organizations". SFAS No. 117 requires the Organization to report information regarding its financial position and activities according to three classes of net assets: unrestricted, temporarily restricted, and permanently restricted net assets. Assets accumulated and resources received and expended by the Organization are either unrestricted as to use or purpose or restricted by the donor for a particular purpose. Permanently restricted net assets account for donations restricted for specific purposes whereby the restriction does not expire. Temporarily restricted net assets represents contributions to the Organization whose use is limited by donor imposed stipulations that either expire by passage of time or can be fulfilled by expending the funds for their restricted purpose. As of January 31, 2009 and 2008, the Organization had not received any permanently restricted gifts. The Organization has chosen to report contributions with donor imposed restrictions that are met in the same reporting period they are received as temporarily restricted contributions with an accompanying reclassification for net assets released from restrictions.
PEOPLE RESPONDING IN SOCIAL MINISTRY
Notes to Financial Statements Januar and 2008
6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND USE OF ACCOUNTING ESTIMATES (CONTINUED) Accounting 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 the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents For purposes of the statement of cash flows, the Organization considers all highly liquid debt instruments with maturities of three months or less to be cash equivalents.
The Organization utilizes the reserve method to account for bad debts. The allowance is calculated based on the best estimate of management. Accounts and other receivables are presented net of allowances for bad debts of $7,592 and $16,396 for the years ended January 31, 2009 and 2008, respectively. Accounts receivable are due upon invoice. Loan receivable payments are due every 30 days from the date of the loan. Accounts are written-off at the discretion of management after all efforts to collect have been exhausted. For the years ended January 31, 2009 and 2008, bad debt expense was $76,265 and $70,061, respectively. Inventory Inventory consists of food, clothing, toys, autos, and other items donated by various contributors and is reflected in the financial statements at $2 per pound for food, $4 per pound for clothing, a range of $4-$25 dollars for toys depending on size, and estimated fair market value for autos. Investments Investments are stated at the readily determinable fair market value in accordance with Statement of Financial Accounting Standard ("SFAS") No. 124, "Accounting for Certain Investments Held by Not-For-Profit Organizations" . Unrealized and realized gains and losses are included in the Statement of Activities.
PEOPLE RESPONDING IN SOCIAL MINISTRY
Notes to Financial Statements Januar and 2008
7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND USE OF ACCOUNTING ESTIMATES (CONTINUED) Property and Equipment Property and equipment are stated at cost. Depreciation is provided on the straight-line method over an estimated useful life of 3 to 5 years. Contributed items are recorded at fair market value at the date of the contribution. Major renewals are capitalized. Maintenance and repairs of property and equipment are charged to operations, and major renewals are capitalized. Donated Materials and Services Donated materials are reflected as contributions in the financial statements at their estimated fair values at the date of receipt. Contributions of donated services that create or enhance nonfinancial assets or that require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation are recorded at their fair values in the period received. For the years ended January 31, 2009 and 2008, the Organization received $5,887 and $-, respectively in contributed services meeting the requirements for recognition in the financial statements. Total volunteer service hours not meeting the requirements for recognition in the financial statements were 32,652 and 29,321 for the years ended January 31, 2009 and 2008, respectively. Income Taxes The Organization was granted tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. The Organization is not classified as a private foundation. Accordingly, no provision for income taxes has been provided for in these financial statements. Management has elected to defer the application of FAS FIN 48, "Accounting for Uncertain Tax Positions" in accordance with FSP FIN 48-3. The Organization will continue to follow FAS 5, "Accounting for Contingencies," until it adopts FIN 48. Functional Expenses The expenses included in the accompanying statement of functional expenses were allocated to, or specifically identified with, the various functions as follows: Salaries and related expenses - based on job descriptions and management's estimate of where time was expended. Other expenses - based on the best estimates of management.
PEOPLE RESPONDING IN SOCIAL MINISTRY
Notes to Financial Statements Januar and 2008
8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND USE OF ACCOUNTING ESTIMATES (CONTINUED) Advertising Advertising costs are expensed as incurred. Advertising expense totaled $2,288 and $8,695 for the years ended January 31, 2009 and 2008, respectively.
Government Grants and Contracts Government grants and contract funds are recorded as revenue when earned. Revenue is earned when eligible expenditures, as defined in each grant or contract, are made. Funds received but not yet earned are shown in the restricted net assets. Expenditures under government contracts are subject to review by the granting authority. To the extent, if any, that such a review reduces expenditures allowable under these contracts, the Organization will record such disallowance at the time the final assessment is made. Unemployment Compensation The Organization has elected to self-insure unemployment tax claims. Any amounts incurred will be recorded as expense when payable.
NOTE 3 CONCENTRATIONS OF CREDIT RISK ARISING FROM CASH DEPOSITED IN EXCESS OF INSURED LIMITS Financial instruments that potentially subject the Organization to concentrations of credit risk consist principally of cash. The Organization maintains its cash balances at two financial institutions. These institutions are insured by the Federal Deposit Insurance Corporation (FDIC) up to $100,000. Accounts at other institutions may be privately insured. Amounts in excess of $100,000 at January 31, 2008 were approximately $157,000. On October 3, 2008, the FDIC deposit insurance temporarily increased the FDIC limits. Through December 31, 2013, amounts are generally insured at $250,000 or more. At January 31, 2009 , amounts in excess of $250,000 were approximately $0 .
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