family promise of brevard, inc....family promise of brevard, inc. (the “organization”) is a...

FAMILY PROMISE OF BREVARD, INC.

COMPILED FINANCIAL STATEMENTS

For the Year Ended December 31, 2017

Family Promise of Brevard, Inc.Table of Contents

For the year ended December 31, 2017

REPORT:Accountants’ Compilation Report 1

FINANCIAL STATEMENTS:Statement of Financial Position 2 Statement of Activities 3

Notes to Financial Statements 4

1

Carr, Riggs & Ingram, LLC

215 Baytree Drive

Melbourne, Florida 32940

(321) 255-0088

(321) 259-8648 (fax)

www.cricpa.com

ACCOUNTANTS’ COMPILATION REPORT

To the Board of Directors Family Promise of Brevard, Inc.

Management is responsible for the accompanying financial statements of Family Promise of Brevard, Inc. (a nonprofit organization), which comprise the statement of financial position as of December 31, 2017, and the related statements of activities for the year then ended, and the related notes to the financial statements in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the financial statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any form of assurance on these financial statements.

A statement of cash flows for the year ended December 31, 2017, has not been presented. Accounting principles generally accepted in the United States of America require that such a statement be presented when financial statements purport to present financial position and results of operations.

We are not independent with respect to Family Promise of Brevard, Inc.

Melbourne, FloridaFebruary 19, 2018

Family Promise of Brevard, Inc.Statement of Financial Position

See accompanying notes and accountants’ compilation report.

2

December 31, 2017

ASSETS

Cash and cash equivalents 255,483$ Certificates of deposit 100,887Beneficial interest in community foundation 11,132Equipment, net of accumulated depreciation of $1,982 2,592

Total assets 370,094$

LIABILITIESAccounts payable 1,500$ Accrued payroll 7,216

Total liabilities 8,716

NET ASSETS

Unrestricted 331,519 Temporarily restricted 29,859

Total net assets 361,378 Total liabilities and net assets 370,094$

Family Promise of Brevard, Inc.Statement of Activities

See accompanying notes and accountants’ compilation report.

3

Unrestricted

Temporarily

restricted TotalPublic support and revenue

Support:

Grants -$ 177,779$ 177,779$ Contributions 113,998 12,917 126,915 Special events 139,983 - 139,983 In-kind donations 64,944 - 64,944 Interest 1,239 - 1,239 Realized and unrealized gains on beneficial

interest in community foundation 764 - 764 Transfer to temporarily restricted (10,250) 10,250 -

Net assets released from restrictions 171,087 (171,087) - Total public support and revenue 481,765 29,859 511,624 Expenses

Program services

Resource center operations 25,227 - 25,227

Resource center supplies 30,756 - 30,756

Client transportation 29,515 - 29,515

Salaries and benefits 131,757 - 131,757

Total program services 217,255 - 217,255

Management and generalTelephone and utilities 4,766 - 4,766 Supplies 27,308 - 27,308 Professional services 12,793 - 12,793

Staff development 2,772 - 2,772

Insurance 5,445 - 5,445


National affiliate fee 3,403 - 3,403

Total management and general 92,423 - 92,423

Fundraising

Development 34,516 - 34,516


Total fundraising 60,913 - 60,913

Total expenses 370,591 - 370,591

Change in net assets 111,174 29,859 141,033

Net assets, beginning of year 220,345 - 220,345

Net assets, end of year 331,519$ 29,859$ 361,378$

Family Promise of Brevard, Inc.Notes to Financial Statements

4

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Family Promise of Brevard, Inc. (the “Organization”) is a Florida not-for-profit dedicated to keeping homeless families together as a unit, providing them temporary shelter and meals through an interfaith network of congregations, and assisting them in obtaining human services, permanent employment, and safe affordable housing, so they can achieve self-sufficiency and lasting independence.

Basis of Accounting

The financial statements of the Organization have been prepared on the accrual basis of accounting and accordingly reflect all significant receivables, payables, and other liabilities.

Basis of Presentation

Financial statement presentation follows the recommendations of the Financial Accounting Standards Board (FASB). Under these standards, the Organization is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets and permanently restricted net assets. The Organization does not currently have any permanently restricted net assets.

Subsequent Events

Subsequent events have been evaluated through the date of the accountants’ compilation report, the date which the financial statements were made available.

Tax Status

The Organization is exempt from income tax under Section 501(c)(3) of the U.S. Internal Revenue Code and has been determined to be an organization which is not a private foundation. Contributions to the Organization qualify as charitable contributions.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Organization considers all highly liquid investments available for current use with an initial maturity of three months or less to be cash equivalents.

Certificates Of Deposit

The certificates have maturities of fifteen to eighteen months, with penalties for early withdrawal. Any penalties for early withdrawal would not have a material effect on the financial statements. The certificates had interest rates of .75% and 1.71% at December 31, 2017.


5

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Property, Plant and Equipment

Fixed assets are recorded at cost. The Organization capitalizes all property greater than $1,000. Expenses which materially increase values, change capacities, or extend useful lives are capitalized. Donations of property and equipment are recorded at their estimated fair value. Such donations are reported as unrestricted support unless the donor has restricted the donated asset to a specific purpose. Depreciation is computed on the straight-line method over the following estimated useful lives:

YearsEquipment 5

Restricted and Unrestricted Revenue and Support

Contributions 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 or grantor is reported as an increase in temporarily restricted net assets. 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 revenues, expenses, and changes in net assets as net assets released from restrictions.

Donated Services, Facilities, and Goods

Donated services where they require specialized skills, are provided by individuals possessing those skills and would typically need to be purchased if not provided by donations are recorded at values consistent with those amounts which would be paid for similar services. Professional services of $10,000 of in-kind services are reflected in the accompanying financial statements. Donated facilities are reflected in the accompanying financial statements at the estimated rental value for similar type and size of property. For the year ended December 31, 2017, donated rent was $26,581. Additional goods that would have needed to have been purchased if they had not been donated for the year ended December 31, 2017 was $28,363 and is reflected in the accompanying financial statements.

Volunteers have donated time to the Organization's fundraising efforts and operations; however, no amounts for donated services are recognized since the services provided do not meet the requirements for recognition. The Organization received more than $116,000 of donated servicesfor the year ended December 31, 2017.

Expense Allocation

Directly identifiable expenses are charged to programs services, management and general or fundraising. Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies. Management and general expensesinclude those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the Organization.


6

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Use of Estimates

The preparation of financial statements in conformity with U.S. 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.

Economic Dependency

The Organization receives a grant from the State of Florida. Of the total public support and revenue, 12% came from that grant for the year ended December 31, 2017.

NOTE 2: CONCENTRATION OF CREDIT RISK

The Organization maintains cash accounts with several financial institutions, which are insured by the Federal Deposit Insurance Corporation (FDIC). All deposit accounts are insured up to $250,000 by the FDIC in aggregate per financial institution. The Organization did not have any amounts in excess of the FDIC limitation as of December 31, 2017.

NOTE 3: EQUIPMENT

Equipment at December 31, 2017 consisted of the following:

Equipment 4,574$

Less: accumulated depreciation (1,982) Equipment, net 2,592$

Depreciation expense for the year end December 31, 2017 was $915.

NOTE 4: NET ASSETS

Temporarily restricted net assets at December 31, 2017 consist of $19,609 restricted for the Help Us Move In program, and $10,250 for an endowment (see Note 5).

The following net assets were released from restrictions during the year ended December 31, 2017:

ProgramShelter 149,622$ Help us move in 6,441Homeless prevention 14,157Transportation 867

Total released from restrictions 171,087$


7

NOTE 5: ENDOWMENT

The balance of the temporary restricted net assets consists of the balance of contributions made by the Organization to an endowment fund. In 2017, the Organization’s board of directors designated funds for the endowment in the amount of $10,250, which were subsequently deposited into the Community Foundation of Brevard, Inc. The Organization can withdraw its contributions with a two-thirds vote by the Organization’s board of directors. The Board’s spending policy is that all the earnings are available to be spent, and they expect a 5% annual rate of return.

Changes in the Beneficial Interest in Community Foundation as of December 31, 2017 are as follows:

Temporarily

Restricted Assets

Permanently

Restricted Assets

Unrestricted

Earnings Total Endowment

Beginning balance -$ -$ -$ -$

Donations 10,250 - - 10,250

Interest earnings - - 193 193

Investment gain - - 764 764

Adminstrative expense - - (75) (75) Total 10,250$ -$ 882$ 11,132$

NOTE 6: ACCOUNTING FOR UNCERTAIN INCOME TAX POSITIONS

The Organization is exempt from federal and state income tax under section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and is classified as other than a private foundation. Contributions to the Organization are qualified as a deductible charitable contribution.

The Organization follows the accounting guidance for uncertainty in income taxes using the provisions of FASB ASC 740, Income Taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more-likely-than-not the position will be sustained upon examination by the tax authorities.

As of December 31, 2017, the Organization had no uncertain tax positions that qualify for either recognition or disclosure in the financial statements. Additionally, the Organization had no interest and penalties related to income taxes.

With few exceptions, the Organization is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years before 2014.

NOTE 7: RELATED PARTIES

The Organization purchased accounting services from a company that a Board member worked for during the year ended December 31, 2017 for $100.

family promise of brevard, inc....family promise of brevard, inc. (the “organization”) is a...

Documents