abc sample fs

7/28/2019 ABC Sample Fs

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THE ABC NONPROFIT, INC.

SAMPLEFinancial Statements

For the Year Ended June 30, 2002

(With Summarized Financial Information for the Year Ended June 30, 2001)

and

Report Thereon


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INDEPENDENT AUDITOR'S REPORT

To the Board of Directors ofThe ABC Nonprofit, Inc.

We have audited the accompanying statement of financial position of The ABC Nonprofit,Inc. (ABC) as of June 30, 2002, and the related statements of activities, functional expensesand cash flows for the year then ended. These financial statements are the responsibility ofABCs management. Our responsibility is to express an opinion on these financialstatements based on our audit. The prior year summarized comparative information has

been derived from ABCs 2001 financial statements and, in our report dated October 11,2001, we expressed an unqualified opinion on those financial statements.

We conducted our audit in accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we plan and perform the audit to obtain reasonable assuranceabout 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 auditalso 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 areasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, thefinancial position of ABC as of June 30, 2002 and the changes in its net assets and its cash flows forthe year then ended in conformity with accounting principles generally accepted in the United States ofAmerica.

SAMPLE

Raffa & Associates, P.C.

Washington, DCSeptember 28, 2002


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NOTES TO FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL POSITION

June 30, 2002

(With Summarized Financial Information as of June 30, 2001)

_______________

2002 2001

ASSETSCurrent Assets

Cash and cash equivalents $ 863,100 $ 181,400Accounts receivable 50,900 62,100Grants receivable 132,000 468,500Pledges receivable 208,100 536,800Charitable trust receivable 360,700 360,700Inventory 100,600 53,600

Total Current Assets 1,715,400 1,663,100

Other AssetsNet property and equipment 10,753,600 11,154,100Investments 1,568,300 1,642,700Deposits 20,800 15,200

TOTAL ASSETS $ 14,058,100 $ 14,475,100

LIABILITIES AND NET ASSETSCurrent Liabilities

Accounts payable and accrued expenses $ 307,200 $ 665,000Prepaid camp registration fees 141,600 175,100

Current portion of notes payable 428,200 299,000Total Current Liabilities 877,000 1,139,100

Long-term LiabilitiesNotes payable 984,600 600,000

TOTAL LIABILITIES 1,861,600 1,739,100

Net AssetsUnrestricted

Undesignated 9,407,100 9,047,800Internally designated 1,000,000 1,000,000

Total Unrestricted 10,407,100 10,047,800

Temporarily restricted 86,000 1,014,800Permanently restricted 1,703,400 1,673,400

TOTAL NET ASSETS 12,196,500 12,736,000

TOTAL LIABILITIES AND NET ASSETS $ 14,058,100 $ 14,475,100

SAMPLE FINANCIAL STATEMENTThe accompanying notes are an integral part

of these financial statements.

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STATEMENT OF ACTIVITIES

For the Year Ended June 30, 2002

(With Summarized Financial Information as of June 30, 2001)

_______________

Temporarily Permanently

Unrestricted Restricted Restricted

REVENUE AND SUPPORTContributions $ 1,466,500 $ 242,000 $ 30,000

Programs 1,163,000 - - Membership dues 1,017,500 - - Grants 133,600 56,500 - Rent 153,500 - - Other 58,300 - - Gift shop sales 57,900 - - United Way 10,300 - -

Advertising 8,900 - - Investment loss (88,200) - - Net assets released from restrictions 1,227,300 (1,227,300) -

TOTAL REVENUE AND SUPPORT 5,208,600 (928,800) 30,000

EXPENSESProgram Services 3,888,900 - - Supporting Services

Management and general 638,700 - - Fundraising 321,700 - -

TOTAL EXPENSES 4,849,300 - -

Change in Net Assets 359,300 (928,800) 30,000

NET ASSETS, BEGINNING OF YEAR 10,047,800 1,014,800 1,673,400

NET ASSETS, END OF YEAR $10,407,100 $ 86,000 $1,703,400

SAMPLE FINANCIAL STATEMENTThe accompanying notes are an integral part

of these financial statements.

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_______________

1. Organization and Summary of Significant Accounting Policies

Organization

The ABC Nonprofit, Inc. (ABC) is a non-profit organization established to provide health, welfare,and cultural benefits to members of the community and other interested individuals. ABC wascreated on July 1, 1985, when it separated from the XYZ Nonprofit Center, Inc. The primarysources of ABCs revenues are contributions, program fees, and membership dues.

Cash and Cash Equivalents

For purposes of the statement of cash flows, ABC considers all demand deposits and investmentswith a purchased maturity of three months or less to be cash and cash equivalents. Money market

funds held as a part of ABCs long-term investment portfolio are not considered cash equivalents.

Investments

Investments consist of marketable debt and equity securities and are carried at fair value, asdetermined by quoted market prices.

Property and Equipment and Related Depreciation

Property and equipment are stated at cost. Expenditures for major additions, renewals and

betterments are capitalized; conversely, expenditures for repairs and maintenance are charged toexpense when incurred. Upon the retirement or disposal of assets, the cost and accumulateddepreciation are eliminated from the accounts and the resulting gain or loss is included in revenueor expenses. Depreciation of property and equipment is computed using the straight-line methodover the estimated useful service lives of the assets ranging from three to five years, except for landand artwork, which are not depreciated.

In fiscal year 1997, ABC occupied and commenced operations in its newly renovated building.The building is being depreciated using the straight-line method over its estimated useful servicelife of 30 years.

SAMPLE FINANCIAL STATEMENT

Continued

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abc sample fs

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