HomeMy WebLinkAbout12/31/2005
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RECENED
MAY 1 6 2006
Southord Town Clerk
NORTH FORK ANIMAL WELFARE LEAGUE. INC.
FINANCIAL STATEMENTS
DECEMBER 31. 2005
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NORTH FORK ANIMAL WELFARE LEAGUE. INC.
TABLE OF CONTENTS
December 31,2005
Pal!e
INDEPENDENT AUDITORS' REPORT............................................................. 1
FINANCIAL STATEMENTS
Statement of Financial Position... .............................................................. 2
Statement of Activities................................................................................ 3
Statement of Cash Flows............................................................................ 4
Statement of Functional Expenses............................................................. 5
Notes to Financial Statements.................................................................. 6,7
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JOSEPH W. IRWIN, CPA
6 Sterlington Commons
Greenport, NY 11944
(631) 477-3011
(631) 477-9533 (fax)
INDEPENDENT AUDITORS' REPORT
Board of Directors
North Fork Animal Welfare League, Inc.
P ,0, Box 297
Southold, NY 11971
Dear Members of the Board:
We have audited the accompanying statement of financial position of North Fork Animal Welfare League,
Inc. as of December 31, 2005, and the related statements of activities and cash flows for the year then
ended. These financial statements are the responsibility ofthe organization's management. Our
responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. 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 fmancial 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 audit provides 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 North Fork Animal Welfare League, Inc. as of December 3 1,2005, and the results of
its operations and its cash flows for the year then ended in conformity with generally accepted accounting
principles,
Joseph W. Irwin, CPA
Certified Public Accountant
May 10, 2006
Greenport, NY
ASSETS
CURRENT ASSETS
Cash - Demand deposits
Cash - Time deposits
Investments
Security deposits
Prepaid insurance
Loans & Exchanges
NORTH FORK ANIMAL WELFARE LEAGUE. INC.
STATEMENT OF FINANCIAL POSITION
December 3 I. 2005
TOTAL CURRENT ASSETS
CURRENT LIABILITIES
LIABILITIES AND NET ASSETS
TOTAL ASSETS
Accounts payable
DefelTed income
Taxes payable
NET ASSETS
Unrestricted - undesignated
Restricted - temporary
TOTAL CURRENT LIABILITIES
TOTAL NET ASSETS
TOTAL LIABILITIES AND NET ASSETS
2
See accompanying notes to financial statements
$ 54908.
5464.
397598.
600.
6032.
192.
464794.
464794.
5796.
14061.
413.
20270.
444524.
O.
444524.
$ 464794
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NORTH FORK ANIMAL WELFARE LEAGUE. INC.
STATEMENT OF ACTIVITIES
For the Year Ended December 31,2005
SUPPORT AND REVENUE
Membership dues
Donations/bequests
Town contract income
Interest income
Dividend income
Net capital gains
Fund raising events
Sundry fees
Conditions of restriction met
TOTAL SUPPORT & REVENUE
EXPENDITURES
Program services
Management & General (Note B)
TOTAL EXPENDITURES
INCREASE (DECREASE) IN NET ASSETS
NET ASSETS - BEGINNING OF YEAR
NET ASSETS - END OF YEAR
Unrestricted
Restricted
Total
$ 6260.
104875.
162240.
9367.
5005.
909.
39521.
8516.
2825.
339518.
2825.
$ 6260.
107700.
162240.
9367.
5005.
909.
39521.
8516.
(2825.)
339518.
245677. 255864.
60011. 60011.
305688. 305688.
33830. 33830.
410694. 410694.
$444524 $444524
3
See accompanying notes to financial statements
NORTH FORK ANIMAL WELFARE LEAGUE. INC.
STATEMENTS OF CASH FLOWS
December 31, 2005
CASH FLOWS FROM OPERATING ACTIVITIES
Change in net assets
Adjustment to reconcile net income to net cash
provided by operating activities:
Increase in prepaid expenses
Increase in Loans & Exchanges
Increase in accounts payable
Increase in deferred income
Increase taxes payable
NET ASSETS PROVIDED BY OPERATING ACTIVITIES
EXTRAORDINARY ITEM (NOTE B)
CASH FLOWS FROM FINANCING ACTIVITIES
NET CASH FLOWS FROM FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Change in investment principle
NET CASH FLOWS FROM INVESTMENT ACTIVITIES
NET INCREASE IN CASH
CASH BALANCE - BEGINNING
CASH BALANCE - ENDING
4
See accompanying notes to financial statements
$33830.
(2285.)
(192.)
(12537.)
541.
(358.)
18999.
o.
6438.
6438.
25437.
29471.
$54908
NORTH FORK ANIMAL WELFARE LEAGUE. INC.
STATEMENT OF FUNCTIONAL EXPENSES
For the Year Ended December 31, 2005
Program Management %
Services & General Total Admin.
EXPENDITURES
Personnel 11 0076. 27519. 137595. 20%
Employee benefits 9987. 2497. 12484. 20%
Payroll taxes 14538. 3635. 18173. 20%
AccountingIBookkeeping fees 6960. 1740. 8700. 20%
Supplies 23666. 23666.
Telephone 3222. 806. 4028. 20%
Postage & Shipping 1225. 306. 1531. 20%
Repairs & maintenance 671. 671.
Conferences/TraveJ 1521. 1521.
Veterinarian fees 29788. 29788.
Truck expense 1460. 1460.
Utilities 433. 108. 541. 20%
Office expense 1256. 1256. 2511. 50%
Insurance 6888. 6888.
Advertising 4053. 450. 4503. 10%
Bank charges 156. 156.
Garbage 2908. 2908.
Fund raising 25057. 25057.
Legal fees (Note B) m 21242. 21242. 100%
Miscellaneous expenses 1812. 453. 2265. 20%
TOTAL EXPENDITURES $245677. 60012. 305688.
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See accompanying notes to financial statements
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NORTH FORK ANIMAL WELFARE LEAGUE. INC.
NOTES TO FINANCIAL STATEMENT
December 31, 2005
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Ore:anization: North Fork Animal Welfare League, Inc., a non-profit organization, was incorporated
July 19, 1963 and is exempt from federal income tax under the provisions of Section 501(c) (3) of the
Internal Revenue Code, and has been designated as an organization which is not a private foundation.
The mission of the League is to promote animal welfare by means of neutering, human care and protection
of stray and abandoned animals.
The organization uses the accrual method of accounting.
Contractual Ae:reement with Southold Town: On December 3 I, 2002, the previous 3 year contractual
agreement with the Town of Southold expired and the League entered into a I year contract for the year
ended December 31,2003. On May I 1,2004 the League entered into a 4-year contractual agreement
which will expire on December 31, 2007. The agreement calls for a 4% annual increase over the term of
the contract. The League is to perform the duties and responsibilities of dog control officer in the
enforcement of the provisions of Article 7 of the Agricultural and Markets Law and the Town of Southold
rules and regulations. The sum of money paid by the Town was in the amount of $ I 3,520.00/month
($162,240.00 for the year) for the calendar year 2005.
In addition, the League is to operate and maintain at its own expense the Town Animal Shelter in Peconic,
NY; properly shelter, feed and water and otherwise care for all dogs in the shelter and comply with all of
the duties outlined in the contract.
Any humanitarian needs pertaining to the welfare of cats are to be an expense of the League.
Use of Estimates in the Preoaration of Financial Statements: Management of the League uses estimates
and assumptions in preparing financial statements in accordance with generally accepted accounting
principles. Those estimates and assumptions affected the reported amounts of assets and liabilities, the
disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could
vary from the estimates that management uses.
Cash and Cash Eauivalents: The League considers all highly liquid investments with a maturity of three
months or less when purchased to be cash equivalents. Cash and cash equivalents for purposes of the
statement of cash flows exclude permanently restricted cash and cash equivalents.
Temoorarilv Restricted Funds: When donations are received for a defined purpose they are restricted until
the conditions are deemed as met. In 2004 the NFA WL received $2,825.00 of temporarily restricted
money and expended it for the deemed purposes.
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Note B. Extraordinary item - Legal fees:
The League incurred $21,242.00 oflegal fees during the fiscal year 2005. Of that amount approximately
20% was for general counsel of a recurring and ordinary nature. The remaining fees can be attributed to an
extraordinary item as described below.
The league was named as residuary beneficiary of the Estate of Patricia Toner Troxel.
Commencing in the summer of 2003, general counsel was in discussion and negotiation with the Trustee
of the Estate about this bequest. The Trustee assessed the value of the residuary estate at approximately
$300,000 at that time.
In December 2003, the Trustee commenced a proceeding in Suffolk County Surrogates Court asserting that
the League cannot comply with the terms of the gift and suggesting that the residuary should be given to
another animal welfare organization.
As of the report date, litigation to have this bequest released to the NF A WL has been concluded. On
March 30, 2005, the Surrogate Courts ruling awarded the Bequest to the NF A WL. The League will receive
the residuary estate of approximately $260,000. As of the report date, the monies had not yet been
received. The League has agreed that it will hold these monies in a restricted account to be used solely for
the purposes identified in the will of Patricia Toner Troxel
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