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HomeMy WebLinkAbout12/31/2002 RECEIVED MAY 1 6 2003 ~oulhold Town CierI NORTH FORK ANIMAL WELFARE LEAGUE. INC. FINANCIAL STATEMENTS DECEMBER 31. 2002 I-g $-,;W-tl3 NORlH FORK ANIMAL WELFARE LEAGUE. INC. TABLE OF CONTENTS December 31, 2002 Paee 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 NORTH FORK ANIMAL WELFARE LEAGUE. INC. 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, Iuc. P.O. Box 297 Southold, NY 11971 Dear Members of the Board: We have audited the accompanying statement offmancial position of North Fork Animal Welfare League, Inc. as of December 31,2002, and the related statements of activities and cash flows for the year then ended. These fmancial statements are the responsibility of the organization's management. Our responsibility is to express an opinion on these fmancial 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 fmancial 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 fmancial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Iu our opinion, the fmancial statements referred to above present fairly, in all material respects, the fmaneial position of North Fork Animal Welfare League, Inc. as of December 31,2002, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. ~0!~ Certified Public Accountant May 11,2003 Greenport, NY ASSETS CURRENT ASSETS Cash - Demand deposits Cash - Time deposits Invesunents Security deposits LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable Accrued Expenses (Note B) Taxes payable NET ASSETS Unrestricted - undesignated Restricted NORTII FORK ANIMAL WIlLF ARE LEAGUE. INC. STATEMENT OF FINANCIAL POSITION December 31, 2002 TOTAL CURRENTS ASSETS TOTAL ASSETS TOTAL CURRENT LIABILITIES TOTAL NET ASSETS TOTAL LIABILITIES AND NET ASSETS 2 See accompanying notes to [mancial statements $ 15910. 5390. 455568. 600. 477468. 477468. 4919. 32997. -----1L 37963. 439505. O. 439505. $ 477468. SUPPORT AND REVENUE Membership dues Donations Town contract income Interest income Dividend income Net capital gains Fund raising events Sundry Fees NORTH FORK ANIMAL WELFARE LEAGUE. INe. STATEMENT OF ACTIVITIES For the Year Ended December 31, 2002 Unrestricted Restricted $10530. 72445. 140039. 11209. 17776. 5220. 32542. 8296. 298057. TOTAL OTHER INCOME TOTAL SUPPORT & REVENUE 298057. EXPENDITURES Program services Management & General (Note B) TOTAL EXPENDITURES 233033. 150987. 384020. INCREASE (DECREASE) IN NET ASSETS (85963.). NET ASSETS - BEGINNING OF YEAR 525468. NET ASSETS - END OF YEAR $439505. 3 See accompanying notes to fmancial statements Total $10530. 72445. 140039. 11209. 17776. 5220. 32542. 8296. 298057. 298057. 233033. 150987. 384020. (85963.) 525468. $439505. NORTII FORK ANIMAL WELFARE LEAGUE. INC. STATEMENTS OF CASH FLOWS December 31, 2002 CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets Adjustment to reconcile net income to net cash provided by operating activities: Decrease in accounts payable Increase in Accrued Expenses Decrease 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 fmancial statements $<85963.> <3206.> 32997. <1000.> <57172.> o. 38727. 38727. <18445.> 34355. $15910. NORTH FORK ANIMAL WELFARE LEAGUE. INe. STATEMENT OF FUNCTIONAL EXPENSES For the Year Ended December 31, 2002 Program Management % Services & General Total Admin. EXPENDITURES Personnel 104399. 26100. 130499. 20% Employee benefits 9334. 2334. 11668. 20% Payroll taxes 8993. 2248. 11241. 20% Accounting rees 6000. 1510. 7510. 20% Supplies 16943. 16943. Telephone 3002. 750. 3752. 20% Postage & Shipping 1482. 371. 1853. 20% Equipment rental & repairs 795. 795. ConferencesfTravel 2822. 2822. Veterinarian fees 29884. 29884. Truck expense 1388. 1388. Utilities 3540. 885. 4425. 20% Office expense 1646. 1646. 3292. 50% Insurance 6289. 6289. Advertising 6994. 777. 7771. 10% Bank charges 100. 100. Garbage 2506. 2506. Fund raising 26235. 26235. Legal rees (Note B) 114196. 114196. Miscellaneous expenses 681. 170. 851. 20% TOTAL EXPENDITURES $233033. 150987. 384020. 5 See accompanying notes to fmancial statements NORTH FORK ANIMAL WELFARE LEAGUE. INC. NOTES TO FINANCIAL STATEMENT December 31, 2002 NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization: North Fork Animal Welfare League, Inc., a non-profit organization, was incorporated July 19, 1963 and is exempt from federal income tax under the provisions of Section 501(c) (3) of the Internal Revenue Code, and has been designated as an organization which is not a private foundation. The mission of the League is to promote animal welfare by means of neutering, human care and protection of stray and abandoned animals. The organization uses the accrual method of accounting. Contractual Agreement with Southold Town: Under the current 3 year contractual agreement which commenced the first day ofJanuary 2000 and is to expire December 31,2002 the League is to perform the duties and responsibilities of dog control officer in the enforcement of the provisions of Article 7 of the Agricultural and Markets Law and the Town of South old rules and regulations. The sum of money to be paid by the Town was in the amount of$ll,669.92/month ($140,039 for the year) for the calendar year 2002. 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 of 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 Eslimates in the Preoaration of Financial Statements: Management of the League uses estimates and assumptions in preparing [mancial 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 Eouivalents: 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. Note B. Extraordinary item - Legal fees: The NF A WL was a defendant in a civil suit brought by potential candidates for the Board of Directors whose candidate filings were deemed invalid by the present board. Legal fees to defend this suit for the year ended December 31, 2002 were $114916. The effect on the [mancial statements if not for these extraordinary expenses would be an increase of net assets of $28953. Decrease in net assets per Financial Statements Extraordinary item Net increases in net assets before extraordinary item <$85963.> +114916. $28953. The accrued expenses of $32997.00 on the December 31, 2002 Balance sheet reflect year 2002 legal fees paid in the year 2003. 6