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HomeMy WebLinkAbout12/31/2008 (2)RECEIVED JUL 2 3 2009 Soull~old Town Cle,r~ NORTH FORK ANIMAL WELFARE LEAGUE, INC. FINANCIAL STATEMENTS DECEMBER 31~ 2008 IRWIN & ODELL, CPAs LLC 6 Sterlington Commons Greenport, NY 119d4 (630 477-$01! (6?0 477-9533 (Fax) INDEPENDENT AUDITORS' REPORT March 31, 2009 Board of Directors North Fork Animal Welfare League, Inc. PO Box 297 Southold, New York 11971 Dear Members of the Board: We have audited the accompanying statements of financial position of The North Fork Animal Welfare League, Inc. as of December 31, 2008 and the related statements of activities and cash flows for the year then ended. These financial statements are the responsibility of the NFAWL management. Our responsibility is to express an opinion on these financial statements based on oar audit. We conducted my 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 financial 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 my audit provides a reasonable basis for my opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the North Fork Animal Welfare League, Inc. as of December 31, 2008, 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 Irwin & Odell, CPAs LLC NORTH FORK ANIMAL WELFARE LEAGUE, INC. TABLE OF CONTENTS December 3 l, 2008 Page INDEPENDENT AUDITORS' REPORT ............................................................. I 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. STATEMENT OF FINANCIAL POSITION December 31, 2008 ASSETS CURRENT ASSETS Cash - Demand deposits Cash - Time deposits Investments - UBS Unrestricted Investments - UBS Restricted Prepaid insurance TOTAL CURRENT ASSETS TOTAL ASSETS LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable Deferred income Taxes payable TOTAL CURRENT LIABILITIES NET ASSETS Unrestricted - undesignated Restricted- temporary TOTAL NET ASSETS TOTAL LIABILITIES AND NET ASSETS $ 62,178 5,983 346,062 290,765 5,604 $ 710,592 $ 7i0,592 8,204 15,208 4,598 $ 28,010 $ 392,456 290,126 $ 682,582 $ 710,592 2 See accompanying notes to financial statements NORTH FORK ANIMAL WELFARE LEAGUE, INC. STATEMENT OF ACTIVITIES For the Year Ended December 31, 2008 Donations/bequests Town contract income Interest income Dividend income Net capital gains Fund raising events Sundry fees Unrealized Loss on Investments TOTAL SUPPORT & REVENUE Unrestricted Restricted Total $ 117,040 $ $ 117,040 180,743 180,743 10,566 6,051 16,617 10,592 10,592 (10,287) 743 (9,544) 24,750 24,750 $ 4,581 $ 4,581 $ (79,019) $ (171) (79,190) $ 258,966 $ 6,623 $ 265,589 EXPENDITURES Program services Management & General TOTAL EXPENDITURES $ 262,665 $ 150.00 $ 63,144 $ $ 325,809 150.00 $ (66,843) $ 6,473 $ 459,299 $ 283,653 $ 392,456 $ 290,126 $ 262,815 $ 63,144 $ 325,959 $ (60,370) $ 742,952 $ 682,582 INCREASE (DECREASE) IN NET ASSETS NET ASSETS - BEGINNING OF YEAR NET ASSETS - END OF YEAR 3 See accompanying notes to financial statements NORTH FORK ANIMAL WELFARE LEAGUE, INC. STATEMENTS OF CASH FLOWS December 31, 2008 CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ (60,370) Adjustment to reconcile net income to net cash provided by operating activities: Decrease in prepaid expenses 1,241 Decrease in accounts payable (1,003) Increase in deferred income 15,208 lncmase taxes payable $ 3,880 NET ASSETS PROVIDED BY OPERATING ACTIVITIES $ (41,044) CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FLOWS FROM FINANCING ACTIVITIES $ CASH FLOWS FROM INVESTING ACTIVITIES Decrease in Investment Principal - Unrestricted $ 68,876 Increase in Investment Principal - Restricted (7,112) NET CASH FLOWS FROM INVESTMENT ACTIVITIES $ 61,764 NET DECREASE IN CASH $ 20,720 CASH BALANCE - BEGINNING $ 41,458 CASH BALANCE - ENDING $ 62,178 4 See accompanying notes to financial statements NORTH FORK ANIMAL WELFARE LEAGUE, INC. NOTES TO FINANCIAL STATEMENT December 31, 2008 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 The mission of the League is to promote animal welfare by means of neutering, human care and protection of stray and abandoned animals. Accounting Basis The organization uses the accrual method of accounting. Under SFAS No. 116 the marketable securities with readily determinable fair market values must account for unrealized gains or losses in the change in net assets. Contractual Agreement with Southold Town: On April 1, 2008 the League entered into a 3-year contractual agreement which will expire on March 3 t, 2011. 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 $14,623.50/month for the first three months: $15208.18 for the last nine months ($180,743. for the calender year 2008). 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 ca~:s are to be an expense of the League. Use of Estimates in the Preparation 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 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 purposes of the statement of cash flows exclude permanently restricted cash and cash equivalents. Temporarily Restricted Funds: When donations are received for a defined purpose they are restricted until the conditions are deemed as met. In 2006 the NFAWL received $264,196 of temporarily restricted funds from the Estate of Patricia Toner Troxel. The will directs that the funds be used exclusively for construction of an animal shelter or a wing in addition to an animal shelter solely owned by the League. At December 31, 2008 the balance is $283,653. With no expenditures other than broker fees have been expended since inception. 6