ACS FY09 Consol Audit Shell 1.28.2010
Description
American Cancer Society, Inc. and Affiliated Entities Combined Financial Statements As of and for the Year Ended August 31, 2009 with summarized financial information for the Year Ended August 31, 2008 and Report of Independent Auditors 0 American Cancer Society, Inc. and Affiliated Entities Contents August 31, 2009 and 2008 Page(s) Report of Independent Auditors ………………………………………………………………………..1 Combined Financial Statements Combined Balance Sheets…………………………………………………………………………………2 Combined Statement of Activities……………………………………………………………………….3-4 Combined Statement of Functional Expenses……………………………………………………......... 5 Combined Statements of Cash Flows…………………………………………………….…………..…. 6 Notes to Combined Financial Statements…………………………………………………………….7-30 Other Financial Information Combining Balance Sheets……………………………………………………………………………….31 Combining Statements of Activities …………………………………………………………………32-33 Combining Statements of Expenses by Natural Classification ………………………………………34 2 Ernst & Young LLP Suite 1000 55 Ivan Allen Jr. Boulevard Atlanta, GA 30308 Tel: +1 404 874 8300 Fax: +1 404 817 5589 www.ey.com Report of Independent Auditors The Boards of Directors The American Cancer Society, Inc. and Affiliated Entities We have audited the accompanying combined balance sheet as of August 31, ...
Informations
| Publié par | Shewyer |
| Nombre de lectures | 35 |
| Langue | English |
Extrait
American Cancer Society, Inc. and Affiliated Entities Combined Financial Statements As of and for the Year Ended August 31, 2009 with summarized financial information for the Year Ended August 31, 2008 and Report of Independent Auditors
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American Cancer Society, Inc. and Affiliated Entities Contents August 31, 2009 and 2008 Page(s) Report of Independent Auditors…………….…….1…………………………………………………… Combined Financial Statements Combined Balance Sheets…………………………………………………………………………………2 Combined Statement of Activities……………………………………………………………………….3-4 Combined Statement of Functional Expenses……………………………………………………......... 5 Combined Statements of Cash Flows…………………………………………………….…………..…. 6 Notes to Combined Financial Statements…………………………………………………………….7-30 Other Financial Information Combining Balance Sheets……………………………………………………………………………….31 Combining Statements of Activities …………………………………………………………………32-33 Combining Statements of Expenses by Natural Classification ………………………………………34
Report of Independent Auditors
Ernst & Young LLP Suite 1000 55 Ivan Allen Jr. Boulevard Atlanta, GA 30308 Tel: +1 404 874 8300 Fax: +1 404 817 5589 www.ey.com
The Boards of Directors The American Cancer Society, Inc. and Affiliated Entities We have audited the accompanying combined balance sheet as of August 31, 2009 of the organizations described in Note 1 (collectively the Society), and the related combined statements of activities, functional expenses and cash flows for the year then ended. These financial statements are the responsibility of the Society’s management. Our responsibility is to express an opinion on these financial statements based on our audit. The prior year summarized comparative information has been derived from the Society’s 2008 combined financial statements and, in our report dated February 23, 2009 we expressed an unqualified opinion on those combined financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Society’s internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Society’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to in the first paragraph present fairly, in all material respects, the combined financial position as of August 31, 2009 of the organizations described in Note 1, and the combined changes in their net assets and their cash flows for the year then ended in conformity with U.S. generally accepted accounting principles. As discussed in Notes 1 and 4 to the combined financial statements, the Society adopted the recognition and disclosure provisions of FASB Staff Position No. FAS 117-1,Endowments of Not-for-Profit Organizations: Net Asset Classification of Funds Subject to an Enacted Version of the Uniform Prudent Management of Institutional Funds Act, and Enhanced Disclosures for all Endowment Funds, as of September 1, 2008. Our audit was conducted for the purpose of forming an opinion on the combined financial statements taken as a whole. The combining balance sheets, combining statements of activities, and combining statements of expenses by natural classification are presented for purposes of additional analysis and are not a required part of the combined financial statements. Such information has been subjected to the auditing procedures applied in our audit of the combined financial statements and, in our opinion, is fairly stated in all material respects in relation to the combined financial statements taken as a whole. EY
January 28, 2010 1001-1126992
A member firm of Ernst & Young Global Limited
AMERICAN CANCER SOCIETY, INC. AND AFFILIATED ENTITIES COMBINED BALANCE SHEETS (In Thousands) ASSETS
August 31, 2009 2008 $ 112,123 $ 104,710 837,011 911,630 34,925 35,642 984,059 1,051,982 163,253 159,298 166,450 162,605 65,494 78,014 30,770 32,860 88,916 97,592 270, 5 343,869 2 7 353,992 356,085 37,740 35,166 $ 2,160,931 $ 2,317,471 $ 217,339 $ 229,687 88,562 84,450 180,273 67,939 56,472 48,307 321,195 204,808 26,230 26,179 166,450 162,605 27,464 32,528 67,851 72,030 826,529 727,837
CASH AND TEMPORARY INVESTMENTS: Cash and cash equivalents Other investments Gift annuity investments Total cash and temporary investments SECURITIES LENT UNDER SECURITIES LENDING PROGRAM COLLATERAL RECEIVED UNDER SECURITIES LENDING PROGRAM RECEIVABLES, net PREPAID EXPENSE AND OTHER ASSETS LEGACIES AND BEQUESTS RECEIVABLE BENEFICIAL INTERESTS IN TRUSTS FIXED ASSETS, net INVESTMENTS, at fair value Total assets LIABILITIES AND NET ASSETS RESEARCH AND OTHER PROGRAM AWARDS AND GRANTS PAYABLE ACCRUED EXPENSES: Accounts payable and other accrued expenses Accrued retirement plan benefits Postretirement medical, dental and life insurance accrual Total accrued expenses GIFT ANNUITY OBLIGATIONS PAYABLE UNDER SECURITIES LENDING PROGRAM OTHER LIABILITIES DEBT Total liabilities COMMITMENTS AND CONTINGENCIES NET ASSETS: Unrestricted: Available for program and supporting activities 556,585 734,198 Net investment in fixed assets 281,719 284,055 Total unrestricted 838,304 1,018,253 Temporarily restricted 273,416 313,649 Permanently restricted 222,682 257,732 Total net assets 1,334,402 1,589,634 Total liabilities and net assets $ 2,160,931 $ 2,317,471 The accompanying notes are an integral part of the combined financial statements. 2
$ 2,766 107 - 4,322 (601) - - 6,594 - 171 (42,401) (42,230) - - -
Total 2009 2008
16,348 3,040 (68) 364 5,142 - 756,937 175,750 175,918 (175,918) 723 (1,309) 21,979 (21,979) 16,777 (16,777) 215,397 (215,983)
$ 124,861 $ 59,184 455,049 68,709 534 - 100,542 30,736 (2,108) (30,148) 22,449 37,249 15,624 8,348 716,951 174,078 25,740 3,821 (9,656) (5,553) - - 16,084 (1,732) 97,903 - (95,423) - 2,480 -
$ 186,811 $ 225,126 523,865 556,446 534 391 135,600 150,644 (32,857) 6,102 59,698 44,831 23,972 24,922 897,623 1,008,462 29,561 47,140 (15,038) (13,530) (42,401) (1,339) (27,878) 32,271 97,903 97,254 (95,423) (96,198) 2,480 1,056
- - - (35,636) - 586 -- 586
19,388 16,184 296 1,071 5,142 19,128 897,051 1,078,172 - -- - - - - - - -
AMERICAN CANCER SOCIETY, INC. AND AFFILIATED ENTITIES COMBINED STATEMENT OF ACTIVITIES FOR THE YEAR ENDED AUGUST 31, 2009, WITH SUMMARIZED FINANCIAL INFORMATION FOR 2008 (In Thousands)
Permanently Restricted
Temporarily Unrestricted Restricted
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NET ASSETS, beginning of year before the effect of adoption and recognition of FASB Staff Position FAS 117-1
Effect of adoption and recognition of FASB Staff Position FAS 117-1
NET ASSETS, beginning of year as adjusted
NET ASSETS, end of year
EXPENSES Program services: Research - support provided to academic institutions and scientists to seek new knowledge about the causes, prevention, and cure of cancer, and to conduct epidemiological and behavioral studies Prevention - programs that provide the public and health professionals with information and education to prevent cancer occurrence or to reduce risk of developing cancer Detection/treatment - programs that are directed at finding cancer before it is clinically apparent and that provide information and education about cancer treatments for cure, recurrence, symptom management and pain control Patient support - programs to assist cancer patients and their families and ease the burden of cancer for them Total program services
Supporting services: Management and general - direction of the overall affairs of the Society through executive, financial, and administrative services Fund-raising - programs to secure charitable financial support for programs and supporting services Total supporting services Total program and supporting services expenses
Net decrease in retirement plan liability
CHANGE IN NET ASSETS
1,019,132 312,256 258,246 1,589,634 1,586,732
(179,949) (40,233) (35,050) (255,232) 2,902
134,604 - - 134,604 34,258
AMERICAN CANCER SOCIETY, INC. AND AFFILIATED ENTITIES COMBINED STATEMENT OF ACTIVITIES (continued) FOR THE YEAR ENDED AUGUST 31, 2009, WITH SUMMARIZED FINANCIAL INFORMATION FOR 2008 (In Thousands)
$ 838,304 $ 273,416 $ 222,682 $ 1,334,402 $ 1,589,634
1,018,253 313,649 257,732 1,589,634 1,586,732
(879) 1,393 (514) - -
177,849 - - 177,849 17% 188,790 18%
62,948 - - 62,948 6% 72,527 7% 222,280 - - 222,280 22% 212,710 20% 285,228 - - 285,228 28% 285,237 27% 1,017,679 - - 1,017,679 100% 1,041,012 100%
Temporarily Permanently Total Unrestricted Restricted Restricted 2009 % 2008 %
149,829 149,829 15% 156,420 15% - -
129,396 - 129,396 13% 142,222 14% - 275,377 - - 275,377 27% 268,343 26% 732,451 - - 732,451 72% 755,775 73%
hTa ertosenieta ncompe acng nanyimoc enibif dcnanalgrar poft he tial statements
EXPENSES Salaries Employee benefits Payroll taxes Professional fees Supplies Telephone Postage and shipping Occupancy Equipment rental, maintenance and information processing Printing and publications Meetings and conferences Travel Special assistance to individuals Awards and grants for program services, net of cancellations Membership dues and subscriptions Depreciation and amortization Interest expense Contributed services and other in-kind contributions Miscellaneous Total program and supporting services expenses
AMERICAN CANCER SOCIETY, INC. AND AFFILIATED ENTITIES COMBINED STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED AUGUST 31, 2009, WITH SUMMARIZED FINANCIAL INFORMATION FOR 2008 (In Thousands)
Program Services Supporting Services Detection/ Patient Research Prevention Treatment Support Management Fund-raising
$ 16,677 $ 80,663 $ 58,849 $ 113,987 $ 29,500 $ 110,298 2,940 17,611 12,898 25,335 6,210 23,949 1,195 6,310 4,684 9,173 2,388 8,827 6,351 14,421 9,144 14,376 5,971 10,423 165 1,377 1,072 2,360 410 2,138 731 3,798 2,672 5,028 1,223 4,049 159 5,136 2,471 4,618 2,331 6,922 1,490 8,633 6,595 16,019 2,536 10,451 818 2,413 1,901 3,507 1,382 2,991 3,312 13,712 8,991 15,719 2,719 12,695 1,165 3,943 2,958 5,167 1,245 5,189 1,348 6,477 4,238 7,756 1,929 7,367 13 375 26,571 - -- 108,938 3,529 3,030 6,460 - - 132 406 230 311 291 334 1,907 5,083 3,744 9,828 2,082 5,154 - 91 67 2,323 239 160 1,968 2,218 3,531 3,195 1,076 6,356 533 2,015 1,946 3,644 1,416 4,977 $ 149,829 $ 177,849 $ 129,396 $ 275,377 $ 62,948 $ 222,280
The accompanying notes are an integral part of the combined financial statements.
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Total 2009 2008
$ 409,974 $ 409,163 88,943 79,802 32,577 31,390 60,686 68,890 7,522 11,041 17,501 18,705 21,637 23,353 45,724 44,376 13,012 14,774 57,148 66,396 19,667 24,387 29,115 39,151 26,959 22,287 121,957 133,765 1,704 1,693 27,798 27,637 2,880 3,257 18,344 7,618 14,531 13,327 $ 1,017,679 $ 1,041,012
AMERICAN CANCER SOCIETY, INC. AND AFFILIATED ENTITIES COMBINED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED AUGUST 31, 2009 AND 2008 (In Thousands) CASH FLOWS FROM OPERATING ACTIVITIES 2009 Change in net assets $ (255,232) Adjustments to reconcile change in net assets to net cash (used in) provided by operating activities: Depreciation and amortization 27,875 Net unrealized losses on perpetual trusts 42,401 Net realized and unrealized investment losses 15,038 Change in value of split-interest agreements 32,857 Gain on disposal of fixed assets (5,142) Other gains 21 Net change in retirement plan liability 134,604 Support from the public restricted for long-term investment (7,177) Support from the public restricted for fixed asset acquisition (5,572) Changes in assets and liabilities: Receivables, net 12,520 Prepaid expenses and other assets 2,090 Legacies and bequests receivable 8,676 Beneficial interests in trusts and gift annuities, net 2,506 Research and other program awards and grants payable (12,348) Accrued expenses (9,952) Other liabilities (4,398) Net cash (used in) provided by operating activities (21,233) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of fixed assets (29,912) Proceeds from disposal of fixed assets 9,213 Support from the public restricted for fixed asset acquisition 5,572 Purchase of investments (667,205) Proceeds from maturity or sale of investments 720,573 Net cash provided by (used in) investing activities 38,241 CASH FLOWS FROM FINANCING ACTIVITIES Payments on debt (5,383) Proceeds from issuance of debt 1,102 (Decrease) increase in bank overdrafts (8,265) Payments on capital lease obligations (628) Payments to annuitants (3,598) Support from the public restricted for long-term investment 7,177 Net cash (used in) provided by financing activities (9,595) NET CHANGE IN CASH AND CASH EQUIVALENTS 7,413 CASH AND CASH EQUIVALENTS, beginning of year 104,710 CASH AND CASH EQUIVALENTS, end of year$ 112,123 SUPPLEMENTAL CASH FLOW INFORMATION Interest paid $ 2,834 NON-CASH INVESTING AND FINANCING ACTIVITIES Fixed assets acquired through capital lease $ 124 Collateral received and payable under the securities lending program $ 3,845
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2008 $ 2,902 27,715 1,339 13,530 (6,102) (19,128) - 34,258 (4,123) (3,679) (10,705) 11,004 (833) 6,500 20,720 (39,359) (3,995) 30,044 (57,155) 22,765 3,679 (658,599) 657,285 (32,025) (3,650) - 7,942 (614) (3,407) 4,123 4,394 2,413 102,297 $ 104,710 $ 3,060 $ 977 $ 22,144
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AMERICAN CANCER SOCIETY, INC. AND AFFILIATED ENTITIES NOTES TO COMBINED FINANCIAL STATEMENTS AUGUST 31, 2009 AND 2008 ORGANIZATION AND ACCOUNTING POLICIES Organization The American Cancer Society (the "Society"), is the nationwide, community-based, voluntary health organization dedicated to eliminating cancer as a major health problem by preventing cancer, saving lives and diminishing suffering from cancer through research, education, advocacy and service. Principles of Combination The accompanying combined financial statements include the consolidated accounts of the American Cancer Society, Inc. (the "National Home Office") and the American Cancer Society of Puerto Rico, Inc. ("Puerto Rico"). Puerto Rico is a membership corporation with the National Home Office as its only member. During fiscal year 2009, the American Cancer Society Foundation ("Foundation"), a membership corporation with the National Home Office as its only member, merged with the National Home Office. These consolidated accounts are combined with the accounts of the American Cancer Society Cancer Action Network (“ACS CAN”) and the Society’s 13 chartered Divisions (the "Divisions"), which are separately incorporated. All significant intra-Society accounts and transactions have been eliminated in the accompanying combined financial statements. The Society (including the National Home Office, its chartered Divisions and Puerto Rico) has received a determination letter from the Internal Revenue Service that it is exempt from income tax under Section 501(a) of the U.S. Internal Revenue Code as an organization described in section 501(c)(3). ACS CAN has received a determination letter from the Internal Revenue Service that it is exempt from income tax under Section 501(a) of the U.S. Internal Revenue Code as an organization described in section 501(c)(4). The Society prepares a separate Internal Revenue Service Form 990 for the National Home Office, ACS CAN, Puerto Rico and each chartered Division. New Accounting Pronouncements In September 2006, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards No. 157,Fair Value Measurements(“Statement 157”). Statement 157 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value measurements. On September 1, 2008, the Society adopted the provisions of Statement 157 related to fair value measurements and related disclosures for all financial assets and liabilities. The adoption of Statement 157 did not have a significant effect on the Society’s financial position at August 31, 2009. The required disclosures have been included in Note 2 of the accompanying combined financial statements. FSP FAS 157-2,Partial Deferral of the Effective Date of Statement 157, deferred the effective date of Statement 157 for all nonfinancial assets and liabilities for fiscal years beginning after November 15, 2008. The Society is in the process of assessing the impact of Statement 157 on its nonfinancial assets and liabilities. In February 2007, the FASB issued Statement No. 159,The Fair Value Option for Financial Assets and Financial Liabilities – Including an amendment of FASB Statement No. 115(“Statement 159”). Statement 159 permits entities to choose to measure many financial instruments and certain other items at fair value. On September 1, 2008, the Society adopted the provisions of Statement 159 related to measuring financial instruments and other items at fair value and the related disclosures. The Society elected fair value accounting for its nonperpetual beneficial interests in trusts held by third parties and its gift annuity obligations. The fair value methodology for these combined financial instruments is discussed later in this footnote. The adoption of Statement 159 did not have a significant impact on the combined financial statements as of Au ust 31, 2009.
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