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HomeMy WebLinkAbout12/2010RECEIVED MAR 2 9 2011 Soufhold Town C'ferk NORTH FORK ANIMAL WE~!,I~ARE LEAGUE, INC. FINANCIAL STATEMENTS DECEMBER 31 2010 NORTH FORK ANIMAL WELFARE LEAGUE, INC. TABLE OF CONTENTS December 31, 2010 Page 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 IRWIN & ODELL, CPAs LLC 6 Sterh'ngton Commons Greenport, NY 11944 (631) 477-3011 (631) 477-9533 (~ax) INDEPENDENT AUDITORS' REPORT March 17, 2011 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, 2010 and the related statements of activities and cash flows for the year then ended. These fmancial statements are the responsibility of the NFAWL management. Our responsibility is to express an opinion on these financial statements based on our 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 31,2010, 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. STATEMENT OF FINANCIAL POSITION December 31, 2010 ASSETS CURRENT ASSETS Cash - Demand deposits Cash - Time deposits Investaaents - UBS Unrestricted Investments - UBS Restricted Prepaid insurance Security Deposit TOTAL CURRENT ASSETS TOTAL ASSETS LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable Taxes payable TOTAL CURRENT LIABILITIES NETASSETS Unrestricted - undesignated Restricted- temporary TOTAL NET ASSETS TOTAL LIABILITIES AND NET ASSETS $ 56,170 10,015 482,253 301,973 6,478 5,000 $ 861,889 $ 861,889 $ 6,421 396 $ 6,817 $ 553,099 301,973 $ 855,072 $ 861,889 2 See accompanying notes to financial statements NORTH FORK ANIMAL WELFARE LEAGUE, INC. STATEMENT OF ACTIVITIES For the Year Ended December 31, 2010 SUPPORT AND REVENUE Donations/bequests Grant Town contract income Interest income Dividend income Net capital gains Fund raising events Sundry fees Restriction Satisfied TOTAL SUPPORT & REVENUE Unrestricted Restricted Total $ 234,853 $ $ 234,853 $ $ 10,000 $ 10,000 195,492 195,492 5,371 10,225 15,596 7,400 618 8,018 3,431 56 3,487 16,084 16,084 4,074 4,074 10,015 $ (10,015) $ 476,720 $ 10,884 $ 487,604 $ 308,458 $0 $ 308,458 63,146 $ 63,146 $ 371,604 $ 371,604 $ 105,116 $ 10,884 $ 116,000 $ 447,983 $ 291~089 $ 739,072 $ 553,099 $ 301,973 $ 855,072 EXPENDITURES Program services Management & General TOTAL EXPENDITURES 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, 2010 CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ 116,000 Adjustment to reconcile net income to net cash provided by operating activities: Increase in time deposits (3,844) Increase in prepaid expenses (989) Increase in secumty deposits Decrease in accounts payable (2,911) Decrease in deferred income Decrease taxes payable (5,514) NET ASSETS PROVIDED BY OPERATING ACTIVITIES $ 102,742 CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FLOWS FROM FINANCING ACTIVITIES $ CASH FLOWS FROM INVESTING ACTIVITIES Increase in Investment Principal - Unrestricted Increase in Investment Principal - Restricted NET CASH FLOWS FROM INVESTMENT ACTIVITIES NET DECREASE IN CASH CASH BALANCE-BEGINNING $ (66,203) (10,884) $ (77,087) $ 25,655 $ 30,515 CASH BALANCE - ENDING $ 56,170 4 See accompanying notes to financial statements NORTH FORK ANIMAL WELFARE LEAGUE, INC. STATEMENT OF FUNCTIONAL EXPENSES For the Year Ended December 31, 2010 Program Management Services & General Total E~ENDITU~S Personnel $ 166,347 $ 41,587 $ 207,934 Employee benefits 18,864 4,716 23,580 Payroll taxes 14,776 3,694 18,470 Legal fees 6,680 6,680 Accounting/Bookkeeping fees 7,760 1,940 9,700 Supplies 43,079 43,079 Telephone 1,680 420 2,100 Postage & Shipping 2,418 605 3,023 Repairs & maintenance 1,323 1,323 Conferences/Travel 1,832 1,832 Veterinarian fees 18,077 18,077 Track expense 7,029 7,029 Office expense 3,008 3,008 6,016 Insurance 13,511 13,511 Advertising 317 317 Bank charges/Credit Card Fees 968 968 Garbage 2,496 2,496 Licenses~Permits 572 572 Fencing 2,418 2,418 Miscellaneous expenses $ 1,983 $ 496 $ 2,479 - TOTAL EXPENDITURES $ 308,458 $ 63,146 $ 371,604 % Admin. 20% 20% 20% 20% 20% 20% 50% 20% 5 See accompanying notes to financial statements NORTH FORK ANIMAL WELFARE LEAGUE, INC. NOTES TO FINANCIAL STATEMENT December 31, 2010 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 fi.om 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. Accounting Basis The organization uses the accrual method of accounting. The Financial Statements uses the Cost basis to in reporting of its marketable securities. As of December 31, 2010 the FMV of the two brokerage accounts are as follows: Wells Fargo - Unrestricted account Wells Fargo - Restricted account $474,465.97 $306,533.30 Contractual Agreement with Southold Town: On April 1, 2008 the League entered into a 3-year contmctaal agreement which will expire on March 31,2011. 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 Agricuitaral and Markets Law and the Town of Southold rules and regulations. The sum of money paid by the Town was in the amount of $15816.50/month for the first three months: $16449.17 for the last nine months ($195492. for the calendar year 2009). 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 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 contingant 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 - Troxel Estate: 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 solely owned by the League. At December 31, 2010 the FMV balance is $306,533.30 No expenditures other than broker fees have been expended since inception. 6 NORTH FORK ANIMAL WELFARE LEAGUE, ENC. NOTES TO FINANCIAL STATEMENT December 31, 2009 Temporarily Resla-icted Funds - Anonymous Grant: A grant of $10,000. was received in March 2010 whereby the donor wished to be anonymous. The funds were to be used for care of dogs and the full mount was expended in 2010. Unce~almies about the Fut~e: On Febmm'3, 9,20!0 the No.~& Fork Animal We!f~e Lea,m_,e, Inc. (NFAWL) received a" Copy of a request for proposal to bid for the new contract'"'from the Southold Town attorney. The Town of Southold had decided to put out to bid the contract but as of this report date they have received no other bidders. The NFAWL and the Town of Southold are in the process of negotiating a new contract with the specifics not yet determinable. In the opinion of the director it is very likely that a new contract will be implemented although it may be prolonged beyond the March 31, 2011 current contract expiration date. _7