Expert answer:Answer ALL of the following questions about the organization you have selected (mention which organization you are talking about):Is the audit letter positive or negative?In the Statement of ActivitiesIs the total net income positive or negative in the year(s) included in the audit?How much was released from restrictions in the year(s) presented?Was the net income impacted by non-operational income or expenses?In the Statement of Financial Position (Balance Sheet)What is the organization’s largest asset and liability?Can current assets cover current liabilities? Is the audit presented in such a way that you can answer this questions?Are you comfortable with the balance between unrestricted net assets, temporarily restricted net assets and permanently restricted net assets?In the Statement of Cash FlowsDid the organization gain or lose cash from Operations, Investing, Financing during the year(s) presented?Did the total cash increase or decrease in the year(s) presented?In Note # 1 is the mission of the organization described in a manner that would encourage you to donate? Do you think Note #1 presents the organization in the best light?Is the audit format easy for donors to read and understand?Do you think this organization is doing well or is having financial problems? If you think there are problems, what are they?
week_6_ywca_2014_audit.pdf
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Young Women’s Christian Association of the
United States of America, Inc.
Financial Statements
and Independent Auditors’ Report
August 31, 2014 and 2013
TABLE OF CONTENTS
Page
Independent Auditors’ Report
1
Financial Statements
Statements of Financial Position
2
Statements of Activities and Change in Net Assets
3
Statements of Cash Flows
4
Statements of Functional Expenses
5
Notes to Financial Statements
6
Independent Auditors’ Report
To the Board of Directors
Young Women’s Christian Association of the United States of America, Inc.
Washington, DC
Report on the Financial Statements
We have audited the accompanying financial statements of the Young Women’s Christian Association of the United
States of America, Inc. (YWCA USA), which comprise the statement of financial position as of August 31, 2014, and the
related statements of activities and change in net assets, cash flows and functional expenses for the year then ended,
and the related notes to the financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes the design, implementation and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free
from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America. 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 involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the
auditors consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in
order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of
YWCA USA as of August 31, 2014, and the changes in its net assets and its cash flows for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Prior Period Financial Statements
The financial statements of YWCA USA as of August 31, 2013 were audited by other auditors, whose report dated
January 14, 2014 expressed an unmodified opinion on those statements.
Report on Summarized Comparative Information
The financial statements of YWCA USA as of August 31, 2013 were audited by other auditors, and they expressed an
unmodified audit opinion on those audited financial statements in their report dated January 14, 2014. In our opinion,
the summarized comparative information presented herein as of and for the year ended August 31, 2013 is consistent,
in all material respects, with the audited financial statements from which it has been derived.
Bethesda, Maryland
January 21, 2015
YOUNG WOMEN’S CHRISTIAN ASSOCIATION OF THE UNITED STATES OF AMERICA, INC.
STATEMENTS OF FINANCIAL POSITION
ASSETS
August 31,
CURRENT ASSETS
Cash and Cash Equivalents
Receivables
Prepaid Expenses
Total Current Assets
2014
2013
$ 2,206,570
135,720
42,677
2,384,967
$ 1,087,396
64,915
44,284
1,196,595
62,362,004
55,548,367
3,186,444
3,414,500
6,000
6,000
$ 67,939,415
$ 60,165,462
$
$
INVESTMENTS
PROPERTY AND EQUIPMENT, NET
DEPOSITS
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts Payable and Accrued Expenses
Payable to Beneficiaries
Deferred Rent, Current Portion
Deferred Rental Income, Current Portion
Total Current Liabilities
LONG-TERM LIABILITIES
Deferred Rent, Net of Current Portion
Deferred Rental Income, Net of Current Portion
Total Long-Term Liabilities
Total Liabilities
NET ASSETS
Unrestricted
Temporarily Restricted
Permanently Restricted
Total Net Assets
393,666
313,479
2,038
162,750
871,933
370,401
273,002
3,714
162,750
809,867
571,437
571,437
2,038
719,864
721,902
1,443,370
1,531,769
56,445,249
3,450,237
6,600,559
50,205,743
2,156,665
6,271,285
66,496,045
58,633,693
$ 67,939,415
$ 60,165,462
2
The Accompanying Notes Are An Integral Part Of These Financial Statements
YOUNG WOMEN’S CHRISTIAN ASSOCIATION OF THE UNITED STATES OF AMERICA, INC.
STATEMENTS OF ACTIVITIES AND CHANGE IN NET ASSETS
YEAR ENDED AUGUST 31, 2014
WITH SUMMARIZED TOTALS FOR YEAR ENDED AUGUST 31, 2013
Unrestricted
SUPPORT AND REVENUE
Contributions and Bequests
Interest and Dividends
Realized and Unrealized Gains on Investments
Support Fees
Leadership Development Center Rental Loss, Net of
Expenses of $210,242 and $189,290, Respectively
Change in Value of Split-Interest Agreements
Donated Services
Sponsorship and Registration Income
Other Income
Net Assets Released from Restrictions
Total Support and Revenue
EXPENSES
Program Services:
Advocacy
Communications
Local Initiatives
Global Initiatives
Total Program Services
Supporting Services:
Management and General Administrative
Fundraising
Total Supporting Services
Total Expenses
CHANGE IN NET ASSETS
NET ASSETS, Beginning of Year
NET ASSETS, End of Year
$
725,787
935,862
7,001,928
2,680,111
(61,815)
78,447
143,535
2,696
1,088,828
12,595,379
Temporarily
Restricted
Permanently
Restricted
$ 1,119,230
133,808
1,178,362
–
$
(52,285)
3,285
(1,088,828)
1,293,572
329,274
329,274
Totals
2014
$ 2,174,291
1,069,670
8,180,290
2,680,111
2013
$
437,416
1,019,632
5,092,745
1,742,518
(61,815)
(52,285)
78,447
146,820
2,696
14,218,225
(19,665)
(68,109)
21,524
190,143
15,720
8,431,924
698,237
577,020
4,134,338
191,547
5,601,142
–
–
698,237
577,020
4,134,338
191,547
5,601,142
1,064,602
812,554
2,884,919
221,291
4,983,366
86,881
667,850
754,731
–
–
86,881
667,850
754,731
913,593
466,495
1,380,088
6,355,873
–
–
6,355,873
6,363,454
6,239,506
1,293,572
329,274
7,862,352
2,068,470
50,205,743
2,156,665
6,271,285
58,633,693
56,565,223
$ 56,445,249
$ 3,450,237
$ 6,600,559
$ 66,496,045
$ 58,633,693
3
The Accompanying Notes Are An Integral Part Of These Financial Statements
YOUNG WOMEN’S CHRISTIAN ASSOCIATION OF THE UNITED STATES OF AMERICA, INC.
STATEMENTS OF CASH FLOWS
Year Ended August 31,
2014
2013
CASH FLOWS FROM OPERATING ACTIVITIES
Change in Net Assets
Adjustments to Reconcile Change in Net Assets
to Net Cash Used in Operating Activities:
Realized and Unrealized Gains on Investments
Depreciation and Amortization – Operating
Depreciation and Amortization – Leadership Development Center
Change in Value of Split-Interest Agreements
Loss on Disposal of Fixed Assets
Bad Debt Expense
Permanently Restricted Contributions
Change in:
Receivables
Prepaid Expenses
Accounts Payable and Accrued Expenses
Payable to Beneficiaries
Deferred Rent
Deferred Rental Income
Net Cash Used in Operating Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of Fixed Assets
Purchases of Investments
Proceeds from Sale/Maturity of Investments
Net Cash Provided by Investing Activities
CASH PROVIDED BY FINANCING ACTIVITIES
Proceeds from Permanently Restricted Contributions
$ 7,862,352
$ 2,068,470
(8,180,290)
16,139
210,242
52,285
1,675
15,746
(329,274)
(5,092,745)
16,752
189,290
68,109
–
(86,551)
1,607
23,265
40,477
(3,714)
(148,427)
(524,468)
2,059
8,206
(71,018)
58,030
(3,035)
(169,625)
(2,925,507)
(15,516,349)
16,830,717
1,314,368
(10,129)
(3,770,676)
7,176,131
3,395,326
329,274
–
NET INCREASE IN CASH AND CASH EQUIVALENTS
1,119,174
469,819
CASH AND CASH EQUIVALENTS, Beginning of Year
1,087,396
617,577
$ 2,206,570
$ 1,087,396
CASH AND CASH EQUIVALENTS, End of Year
4
The Accompanying Notes Are An Integral Part Of These Financial Statements
YOUNG WOMEN’S CHRISTIAN ASSOCIATION OF THE UNITED STATES OF AMERICA, INC.
STATEMENTS OF FUNCTIONAL EXPENSES
YEAR ENDED AUGUST 31, 2014
WITH SUMMARIZED TOTALS FOR YEAR ENDED AUGUST 31, 2013
Program Services
Advocacy
Salaries and Benefits
Meetings
Professional Fees
Printing and Printed Materials
Communications
Office Supplies and Postage
Rent and Utilities
Insurance
Travel
Computer, Equipment and Maintenance
Membership and Support
Awards and Grants
World YWCA Allocation
Miscellaneous
Depreciation and Amortization
General and Administrative Allocation
Total Expenses
Communications
Support Services
Local
Initiatives
Global
Initiatives
Total
Management
and General
Administrative
$
372,251
2,611
720
876
8,976
8,100
24,525
280,178
$
300,417
48,083
90
24
1,184
150
227,072
$ 1,580,487
194,579
367,947
22,945
10,969
3,645
2,880
36
335,190
75,375
345,000
3,971
1,191,314
$
5,886
4
457
185,200
–
$ 2,253,155
203,076
416,030
22,945
11,779
4,525
2,880
36
344,647
76,559
8,100
530,200
28,646
1,698,564
$
$
698,237
$
577,020
$ 4,134,338
$
191,547
$ 5,601,142
$
121,908
78,140
1,023,031
9,640
19,945
19,299
360,493
34,215
50,911
69,146
18,557
190,853
22,418
16,139
(1,947,814)
86,881
Totals
Fundraising
Total
$
329,369
285
59,370
3,800
146
2,669
10,763
12,198
249,250
$
$
667,850
$
5
The Accompanying Notes Are An Integral Part Of These Financial Statements
451,277
78,425
1,082,401
13,440
19,945
19,445
360,493
34,215
53,580
79,909
18,557
190,853
34,616
16,139
(1,698,564)
754,731
2014
2013
$ 2,704,432
281,501
1,498,431
36,385
31,724
23,970
363,373
34,251
398,227
156,468
26,657
530,200
190,853
63,262
16,139
–
$ 2,575,653
459,715
1,702,753
32,634
30,646
19,013
357,858
52,459
674,169
78,442
18,154
160,500
152,821
31,885
16,752
–
$ 6,355,873
$ 6,363,454
YOUNG WOMEN’S CHRISTIAN ASSOCIATION OF THE UNITED STATES OF AMERICA, INC.
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2014 AND 2013
NOTE 1 –
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
Young Women’s Christian Association of the United States of America, Inc. (YWCA USA) was
incorporated in 1907 under the laws of the State of New York as a nonprofit corporation to carry out the
mission of providing support for the empowerment of women and the elimination of racism.
The major programs of YWCA USA are as follows:
Advocacy: Identifies, educates and mobilizes members and supporters on critical legislative and public
policy issues and government funding to ensure the interests of YWCA USA are represented before
Congress, the White House and government agencies.
Communications: Builds unified corporate identity and visibility. Conveys mission, programs and
services of YWCA USA with intentional and coordinated efforts.
Local Initiatives: Provides support to local YWCA associations to further mission impact and business
vitality, including: capacity-building training, services and resources; conferences and regular
networking; organizational sustainability and growth initiatives; signature outcomes and model
programs, and fund- and friend-raising collaborations and opportunities.
Global Initiatives: Promotes partnerships and relationship-building with the World YWCA and other
YWCAs worldwide and advocates international public policies consistent with mission.
Basis of Accounting
The financial statements of YWCA USA are presented on the accrual basis of accounting and,
accordingly, revenue is recognized when earned and expenses are recognized when the obligations are
incurred.
Use of Estimates
Management uses estimates and assumptions in preparing these financial statements in conformity with
accounting principles generally accepted in the United States of America. Those estimates and
assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities, and the reported revenue and expenses. Actual results could vary from the estimates that
were used.
6
YOUNG WOMEN’S CHRISTIAN ASSOCIATION OF THE UNITED STATES OF AMERICA, INC.
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2014 AND 2013
NOTE 1 –
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Income Taxes
YWCA USA is exempt from income taxes as an organization described in Section 501(c)(3) of the
Internal Revenue Code and is not classified as a private foundation. Similar to other tax-exempt
organizations, YWCA USA is subject to unrelated business income.
YWCA USA believes that it has appropriate support for any tax positions taken, and as such, does not
have any uncertain tax positions that are material to the financial statements. YWCA USA recognizes
interest accrued related to unrecognized tax benefits and penalties in management and general
administrative expenses on the statements of activities and change in net assets.
During the years ended August 31, 2014 and 2013, YWCA USA did not have net taxable income from
unrelated business activity; therefore, there is no provision in these financial statements for income
taxes or interest and penalties related to unrecognized tax benefits. Tax years prior to 2010 are no
longer subject to examination by the IRS or the tax jurisdiction of the District of Columbia.
Cash and Cash Equivalents
YWCA USA considers all highly liquid investments with a maturity of three months or less, when
purchased, to be cash equivalents.
Concentration of Risk
YWCA USA maintained balances of cash and cash equivalents in excess of Federal Deposit Insurance
Corporation (FDIC) coverage. The amount of uninsured deposits at August 31, 2014 was approximately
$1,888,000.
Receivables
YWCA USA records accounts receivable net of allowances for doubtful accounts when necessary.
Accounts receivable were $63,582 and $54,840 at August 31, 2014 and 2013, respectively. The
allowances are determined based on a review of the estimated collectibility of the specific accounts,
plus a general provision based on historical loss experience and existing economic conditions.
Uncollectible amounts are charged off against the allowance for doubtful accounts once management
determines an account, or a portion thereof, to be uncollectible. As of August 31, 2014 and 2013,
management deemed all accounts receivable to be collectible and, as such, no allowance for doubtful
accounts has been provided for in these financial statements. Bad debt expense related to accounts
receivable was $15,746 and $0 for the years ended August 31, 2014 and 2013, respectively.
7
YOUNG WOMEN’S CHRISTIAN ASSOCIATION OF THE UNITED STATES OF AMERICA, INC.
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2014 AND 2013
NOTE 1 –
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Receivables (Continued)
Pledges receivable represent unconditional promises to give from donors to contribute monies to YWCA
USA. Pledges receivable were $22,138 and $10,075 at August 31, 2014 and 2013, respectively.
Unconditional promises to give from donors are recorded when the promise is made. Unconditional
promises to give from donors where payments are due in the next year are reflected as current
receivables and are recorded at their net realizable amount. Unconditional promises to give from donors
where payments are due in the subsequent years are reflected as long-term receivables and are
reflected at the present value of their net realizable amounts, using risk-free discount rates. The
amortization of the discount on long-term pledges receivable is recorded as contributions and bequests
in the statements of activities and change in net assets. The need for an allowance is determined based
on a review of the estimated collectibility of specific accounts, plus a general provision based on
historical loss experience and existing economic conditions. Uncollectible amounts are charged off
against the allowance for doubtful accounts once management determines an account, or a portion
thereof, to be uncollectible. As of August 31, 2014 and 2013, management deemed all pledges
receivable to be collectible and, as such, no allowance for doubtful accounts has been provided for in
these financial statements. Bad debt expense related to pledges receivable was $0 for each of the
years ended August 31, 2014 and 2013.
Grants receivable represents amounts due to YWCA USA for costs incurred under reimbursable grants,
whether billed or unbilled. Grants receivable were $50,000 and $0 at August 31, 2014 and 2013,
respectively. The need for an allowance is determined based on a review of the estimated collectibility
of specific accounts, plus a general provision based on historical loss experience and existing economic
conditions. Uncollectible amounts are charged off against the allowance for doubtful accounts once
management determines an account, or a portion thereof, to be uncollectible. As of August 31, 2014
and 2013, management deemed all grants receivable to be collectible and, as such, no allowance for
doubtful accounts has been provided for in these financial statements. Bad debt expense related to
grants receivable was $0 for each of the years ended August 31, 2014 and 2013.
Investments
Cash, deposits and money market funds held in investment accounts with investment institutions are
classified as investments on the statements of financial position. Investments are stated at fair value.
The valuation of the investments is based upon quotations obtained from national securities exchanges
where securities are listed on an exchange, or Net Asset Values (NAVs) provided by investment
managers. Investment values in the Wellington Common Trust Funds are determined by pricing agents
of Wellington Management Company, LLP and its affiliates (Wellington Management). Wellington
Management determines the fair value when market quotations are not readily available. Interest and
dividend income, and realized and unrealized gain (loss) on investments are recorded as unrestricted,
temporarily restricted, or permanently restricted net assets in accordance with the donor’s designation.
However, interest and dividend income, and realized and unrealized gain (loss) on investments are
reported as increases in unrestricted net assets if the restrictions are met in the reporting period in
which the investment earnings are recognized. Management intends to hold investments for long-term
purposes.
8
YOUNG WOMEN’S CHRISTIAN ASSOCIATION OF THE UNITED STATES OF AMERICA, INC.
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2014 AND 2013
NOTE 1 –
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Investments (Continued)
Investments include funds with an investment manager employing a variety of strategies to achieve
investment objectives. Investment objectives are consistent with YWCA USA’s Investment Policy. With
respect to Wellington Common Trust Funds investments, redemptions are permitted with written notice
received at least 30 days prior to termination, or a shorter notice period in the event that an
extraordinary circumstance exists that require notice and termination within a shorter period of time.
Property and Equipment
Property and equipment in excess of $1,000 with an estimated useful life of more than one year is
capitalized and stated at cost. Depreciation and amort …
Purchase answer to see full
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