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NORTH FORK ANIMAL WELFARE LEAGUE. INC.
FINANCIAL STATEMENTS
DECEMBER 31. 2004
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NORTH FORK ANIMAL WELFARE LEAGUE. INC.
TABLE OF CONTENTS
December 31, 2004
Pa!!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.O. 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 31,2004, and the related statements of activities and cash flows for the year then
ended. These [mancial statements are the responsibility of the 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 [mancial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the [mancial statements. An audit also includes assessing the accounting
principles used and siguificant 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 [mancial statements referred to above present fairly, in all material respects, the
[mancial position of North Fork Animal Welfare League, Inc. as of December 31, 2004, and the results of
its operations and its cash flows for the year then ended in conformity with generally accepted accounting
principles.
~j b1 1""--
Joseph W. Irwin, CPA
Certified Public Accountant
May 10, 2005
Greenport, NY
ASSETS
CURRENT ASSETS
Cash - Demand deposits
Cash - Time deposits
Investments
Security deposits
Prepaid insurance
NORTH FORK ANIMAL WELFARE LEAGUE. INC.
STATEMENT OF FINANCIAL POSITION
December 31, 2004
TOTAL CURRENT ASSETS
CURRENT LIABILITIES
LIABILITIES AND NET ASSETS
TOTAL ASSETS
Accounts payable
Deferred 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
$ 29471.
5442.
404058.
600.
3747.
443318.
443318.
18333.
13520.
771.
32624.
410694.
O.
410694.
$ 443318.
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NORTH FORK ANIMAL WELFARE LEAGUE, INC.
STATEMENT OF ACTIVITIES
For the Year Ended December 3 I, 2004
Unrestricted
Restricted
SUPPORT AND REVENUE
Membership dues $ 7380,
Donationslbequests 71991,
Town contract income 156000,
Interest income 11345,
Dividend income 4609.
Net capital gains 1839,
Fund raising events 42456.
Sundry fees 5230,
Conditions of restriction met 4013.
TOTAL SUPPORT & REVENUE 304863.
4013,
(4013.)
EXPENDITURES
Program services
Management & General (Note B)
TOTAL EXPENDITURES
255864,
106297,
362161.
INCREASE (DECREASE) IN NET ASSETS
NET ASSETS - BEGINNING OF YEAR
(57298,)
467992.
NET ASSETS - END OF YEAR $410694.
3
See accompanying notes to financial statements
Total
$ 7380.
76004.
156000.
11345.
4609.
1839.
42456.
5230.
304863.
255864.
106297.
362161.
(57298,)
467992.
$410694.
NORTH FORK ANIMAL WELFARE LEAGUE. INC.
STATEMENTS OF CASH FLOWS
December 31, 2004
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 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
Subtraction from 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
$(57298.)
(2054.)
10525.
13520.
70.
(35237.)
o.
35895.
35895.
658.
28813.
$29471.
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NORTH FORK ANIMAL WELFARE LEAGUE. INC.
STATEMENT OF FUNCTIONAL EXPENSES
For the Year Ended December 3 I, 2004
Program Management %
Services & General Total Admin.
EXPENDITURES
Personnel 114407. 28602. 143009. 20%
Employee benefits 8639. 2160. 10799. 20%
Payroll taxes 11535. 2884. 14419. 20%
Accounting fees 6400. 1600. 8000. 20%
Supplies 27017. 27017.
Telephone 2673. 668. 3341. 20%
Postage & Shipping 1789. 447. 2236. 20%
Repairs & maintenance 2682. 2682.
ConferencesfI'ravel 4223. 4223.
VeteTinarian fees 30036. 30036.
Truck expense 2210. 2210.
Utilities 3153. 788. 3941. 20%
Office expense 1338. 1339. 2677. 50%
Insurance 7139. 7139.
Advertising 4845. 538. 5383. 10%
Bank charges 178. 178.
Garbage 2461. 2461.
Fund raising 23713. 23713.
Legal fees (Note B) 66914. 66914. 100%
Miscellaneous expenses 1426. 357. 1783. 20%
TOTAL EXPENDITURES $255864. 106297. 362161.
5
See accompanying notes to [mancial statements
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NORTH FORK ANIMAL WELFARE LEAGUE. INC.
NOTES TO FINANCIAL STATEMENT
December 3 I, 2004
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization: North Fork Animal Welfare League, Inc., a non-profit organization, was incoTPorated
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
ofstray and abandoned animals.
The organization uses the accrual method of accounting.
Contractual Agreement with Southold Town: On December 31, 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 11,2004 the League entered into a4-year contractual agreement
which will expire on December 3 I, 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$13,000.00/month
($156,000.00 for the year) for the calendar year 2004.
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 fmancial 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 Equivalents: 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 PUTPoses of the
statement of cash flows exclude permanently restricted cash and cash equivalents.
Temporarilv Restricted Funds: When donations are received for a defmed PUTPose they are restricted until
the conditions are deemed as met. in 2004 the NF A WL received $4,013.00 of temporarily restricted
money and expended it for the deemed pUTPoses.
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Note B. Extraordinary item - Legal fees:
The League incurred $66,914.00 oflegal fees during the fiscal year 2004. 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 of2003, general counsel was in discussion and negotiation with the Trustee
of the Estate about this bequest. The Trustee assesses the value of the residuary estate at approximately
$300,000.
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. In April
2005, the Surrogates Courts ruling awarded the Bequest to the NF AWL. A conference to determine how
the funds are to be spent by The League will be discussed in a conference with the Court set for May 1 I,
2005. As of the report date the results of the conference are unknown and no money has been released.
7
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NORTH FORK ANIMAL WELFARE LEAGUE
FINANCIAL STATEMENT
FOR THE YEAR ENDED DECEMBER 31,2004
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JOSEPH W. IRWIN, CPA
6 Sterlington Commons
Greenport, NY 11944
(631) 477-3011
(631) 477-9533 (fax)
February 11,2005
North Fork Animal Welfare League, Inc.
P.O. Box 297
Southold, NY 11971
ACCOUNTANT'S REPORT
We have compiled the accompanying statement of financial position of North Fork
Animal Welfare League, Inc. (a Non-Profit Corporation) as of December 31, 2004 and
2003 and the related statements of activities for the year then ended, in accordance with
Statements on Standards for Accounting and Review Services issued by the American
Institute of Certified 'Public Accountants.
A compilation is limited to presenting in the form of financial statements information that
is the representation of management. We have not audited or reviewed the accompanying
financial statements and, accordingly, do not express an opinion or any other form of
assurance on them.
Management has elected to omit substantially all of the disclosures and statement of cash
flows required by generally accepted accounting principles. If the omitted disclosures
and statements were included in the fmancial statements, they might influence the user's
conclusions, about the company's financial position, results of operations, and cash
flows. Accordingly, these financial statements are not designed for those who are not
informed about such matters.
~Jt-J.)~
Joseph W. Irwin, CPA
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N F ANIMAL WELFARE LEAGUE INC
COMPARATIVE BALANCE SHEET
ASSETS
Cash-SCNE General Checking
Paine Webber General Trust
MM-NFB&T
Petty Cash/General
Security Deposits
Prepaid Insurance
$
DEC. 31, 2004
TOTAL ASSETS
LIABILITIES
Accounts Payable
Deferred Income
Other Taxes Payable
State W/H Tax Payable
TOTAL LIABILITIES
FUND BALANCES
Fund Balance League
TOTAL FUND BALANCES
TOTAL LIABILITIES & EQUITY
29,241
404,058
5,442
230
600
3,747
443,318
18,333
13,520
468
303
32,624
410,694
410,694
443,318
EXHIBIT A
PAGE 1
DEC. 31, 2003
$
28,583
439,941
5,454
230
600
1,693
476,501
7,808
o
482
219
8,509
467,992
467,992
476,501
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REVENUES
Dues
Shelter Donations
Bequests
Trust Fund
Interest Income
Accrued Interest Paid
Dividend Income
Net Capital Gain (Loss)
Fund Raising Events
Dogs
Dogs S-N
Cats
Cats S-N
Memorials
Guardian Angels
Rabies Clinic
Sponsorship Income
Town Contract Income
Total Revenues
EXPENSES
Salaries
Payroll Taxes
Employee Benefits
Kennel Supplies
Veternarian Fees
Repairs & Maintenance
Auto Expense
Travel Expenses
Telephone
Utilities
Office Expense
Insurance
Advertising
Professional Fees
Bookkeeping
Bank Charges
Miscellaneous
Garbage
Postage
Education Expenses
N F ANIMAL WELFARE LEAGUE INC
COMPARATIVE INCOME STATEMENT
FOR THE PERIODS
EXHIBIT B
PAGE 1
JAN. 1, 2004
TO
DEC. 31, 2004
JAN. 1, 2003
TO
DEC. 31, 2003
$
7,380
57,439
o
14,282
11,397
52)
4,609
1,839
42,456
750
614
1,980
1,152
3,013
1,150
734
120
156,000
$
12,510
61,516
50,000
16,637
11,527
108)
8,109
437)
43,793
o
725
740
986
1,340
2,000
690
50
150,000
304,863
360,078
143,009
14,419
10,799
22,137
11,545
2,682
2,210
952
3,341
3,941
2,677
7,139
5,383
66,914
6,000
178
1,784
2,461
2,236
3,271
131,312
12,900
9,423
10,456
10,550
2,279
2,244
319
4,302
6,964
4,273
6,517
6,817
59,221
6,000
10
2,330
2,404
2,344
150
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N F ANIMAL WELFARE LEAGUE INC
COMPARATIVE INCOME STATEMENT
FOR THE PERIODS
EXHIBIT B
PAGE 2
JAN. 1, 2004
TO
DEC. 31, 2004
Accounting
Cat Medical & Veternarian
Cat Food
Fund Raising Expenses
$
2,000
18,491
4,880
23,713
JAN. 1, 2003
TO
DEC. 31, 2003
$ 2,000
20,020
5,149
23,609
TOTAL EXPENSES
362,162
331,593
Net Profit (Loss)
57,299)
28,485