2012 nine month audited financial statements
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Transcript of 2012 nine month audited financial statements
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TableofContents
IndependentAuditorsReport........................................................................................................1
StatementofFinancialPosition.......................................................................................................2
StatementofActivitiesandChangesinNetAssets.........................................................................3
StatementofCashFlows.................................................................................................................4
StatementofFunctionalExpenses..................................................................................................5
NotestoFinancialStatements........................................................................................................6
Note1DescriptionandPurposeoftheOrganization...............................................................7
Note2SummaryofSignificantAccountingPolicies..................................................................7
Note3CreditRisk.....................................................................................................................9
Note4OperatingLease............................................................................................................9
Note5Commitments...............................................................................................................9
Note6RetirementPlan............................................................................................................9
Note7SubsequentEvents.....................................................................................................10
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1 0 4 W O O D M O N T B O U L E V A R D , S U I T E 1 2 0 N A S H V I L L E , T E N N E S S E E 3 7 2 0 5 P H O N E : ( 6 1 5 ) 2 7 9 - 0 0 8 8 F A X : ( 6 1 5 ) 2 7 9 - 9 5 9 9
M c K e r l e y N o o n a n . c o m
IndependentAuditorsReport
TotheBoardofDirectorsofBlood:WaterMission,Inc.Nashville,TNWehaveauditedtheaccompanyingstatementoffinancialpositionofBlood:WaterMission,Inc.(anonprofitorganization)asofSeptember30,2012,and the relatedstatementsofactivitiesand changes innet assets, and cash flows for theninemonths then ended. These financialstatementsare the responsibilityof theOrganizationsmanagement. Our responsibility is toexpressanopiniononthesefinancialstatementsbasedonouraudit.
WeconductedourauditinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStates of America. Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free of materialmisstatements.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsand disclosures in the financial statements. An audit also includes assessing the accountingprinciplesusedandsignificantestimatesmadebymanagement,aswellasevaluatingtheoverallfinancialstatementpresentation.Webelievethatourauditprovidesareasonablebasisforouropinion.
Inouropinion,thefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,thefinancialpositionofBlood:WaterMission,Inc.asofSeptember30,2012,andthechangesinitsnetassetsanditscashflowsfortheninemonthsthenendedinconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.
McKerley&Noonan,P.C.April16,2013
204205.1135849
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Blood:WaterMission,Inc.StatementofFinancialPosition
September30,2012
Assets
CurrentAssets:CashinBank 557,051$MiscellaneousReceivable 537
TotalCurrentAssets 557,588
FixedAssets:OfficeFurnitureandEquipment 82,084LeaseholdImprovements 34,628Vehicles 15,873Less:AccumulatedDepreciation (68,982)
NetFixedAssets 63,603
OtherAssetsDeposits 3,782
3,782
TotalAssets 624,973$
LiabilitiesandNetAssets
CurrentLiabilities:AccountsPayableandAccruedExpenses 62,528$
TotalCurrentLiabilities 62,528
NetAssets:UnrestrictedNetAssets 537,445TemporarilyRestrictedNetAssets 25,000
TotalNetAssets 562,445
TotalLiabilitiesandNetAssets 624,973$
SeeNotestotheFinancialStatements 2
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Blood:WaterMission,Inc.StatementofActivitiesandChangesinNetAssetsFortheNineMonthsEndedSeptember30,2012
TemporarilyUnrestricted Restricted Total
RevenuesandSupport:Contributions 1,221,611$ 919,542$ 2,141,153$InterestIncome 535 535MerchandiseNet 794 794NetAssetsReleasedfromRestriction 894,542 (894,542)
TotalRevenuesandSupport 2,117,482 25,000 2,142,482
Expenses:ProgramServices 1,649,108 1,649,108SupportingServices:
GeneralandAdministrative 321,606 321,606Fundraising 606,767 606,767
TotalExpenses 2,577,481 2,577,481
ChangeinNetAssets (459,999) 25,000 (434,999)
NetAssets,BeginningoftheYear 997,444 997,444
NetAssetsEndoftheYear 537,445$ 25,000$ 562,445$
SeeNotestotheFinancialStatements 3
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Blood:WaterMission,Inc.StatementofCashFlows
FortheNineMonthsEndedSeptember30,2012
CashFlowsfromOperatingActivities:ChangeinNetAssets (434,999)$AdjustmentstoReconcileChangeinNetAssetstoNetCashProvidedbyOperatingActivities:
Depreciation 14,232LossonDisposalofAssets 775IncreaseinMiscellaneousReceivable (526)DecreaseinPrepaids 500IncreaseinAccountsPayableandOtherLiabilities 40,689
TotalAdjustments 55,670NetCashUsedforOperatingActivities (379,329)
CashFlowsfromInvestingActivitiesAcquisitionofFixedAssets (9,479)
NetCashUsedforInvestingActivities (9,479)
NetDecreaseinCash (388,808)
Cash,BeginningoftheYear 945,859
Cash,EndofYear 557,051$
SupplementalCashFlowInformation:InterestPaid $
SeeNotestotheFinancialStatements 4
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Blood:WaterMission,Inc.StatementofFunctionalExpenses
FortheNineMonthsEndedSeptember30,2012
SupportingServicesProgram GeneralandServices Administrative Fundraising Total
HumanResources 503,963$ 138,767$ 209,807$ 852,537$WellProjects 585,927 585,927KigaliFieldOffice 29,655 29,655HIV/AidsProjects 253,258 253,258Education&Storytelling 191,639 227 70,054 261,920Bank&CreditCardFees 2,525 39,874 42,399ProfessionalFees 8,307 30,990 3,500 42,797Printing&Photography 2,519 10,480 826 13,825Supplies&Postage 6,520 18,927 7,240 32,687StrategicDevelopment 173 7,427 310 7,910Occupancy 17,352 20,031 3,856 41,239Travel 27,167 329 1,647 29,143OtherExpenses 22,628 77,671 269,653 369,952Depreciation 14,232 14,232
TotalFunctionalExpenses 1,649,108$ 321,606$ 606,767$ 2,577,481$
SeeNotestotheFinancialStatements 5
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NotestoFinancialStatements
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Blood:WaterMission,Inc.NotestoFinancialStatements
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NOTE1DESCRIPTIONANDPURPOSEOFTHEORGANIZATION
Blood:Water Mission, Inc. (the Organization) is a nonprofit grassroots organization thatempowerscommunitiestoworktogetheragainsttheHIV/AIDSandwatercrisesinAfrica.AlloftheOrganizationsincomeisderivedfromdonationsfromindividuals,churches,companies,andfoundations.
TheorganizationchangeditsfiscalyearendfromDecember31toSeptember30.Therefore,theaccompanying financial statements only reflect the operations for the nine months endedSeptember30,2012.
NOTE2SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES
The financial statements of the Organization have been prepared on the accrual basis ofaccountingwhichmeansthatrevenuesarerecognizedwhenearnedandexpensesarerecordedwhen incurred. ThesignificantaccountingpoliciesoftheOrganizationaredescribedbelowtoenhancetheusefulnessofthefinancialstatementstothereader.
UseofEstimatesThe preparation of financial statements in accordance with generally accepted accountingprinciples requiresmanagement tomakeestimatesandassumptions thataffect the reportedamountofassetsandliabilitiesanddisclosureofcontingentassetsandliabilitiesatthedateofthe financial statements and the reported amounts of revenue and expenses during thereportingperiod.Actualresultscoulddifferfromthoseestimates.
FinancialStatementPresentationFor financial statement presentation, the Organization reports its financial informationaccording to three classes of net assets (unrestricted net assets, temporarily restricted netassets and permanently restricted net assets) based on the existence or absence of donorimposedrestrictions.
UnrestrictedNetAssetsUnrestricted net assets are donations that are not subject to donorimposedstipulations. Monies received without restriction or released from restriction aregenerallyusedtofinancethenormaldaytodayoperationsoftheOrganization.
TemporarilyRestrictedNetAssetsTemporarily restricted net assets are donations that are subject to donorimposedstipulations thatmayorwillbemet,eitherbyactionsof theOrganizationand/or thepassage of time. When a restriction expires, temporarily restricted net assets arereclassifiedtounrestrictednetassetsandreportedinthestatementofactivitiesasnet
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Blood:WaterMission,Inc.NotestoFinancialStatements(Continued)
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assets released from restrictions. At September 30, 2012, there was $25,000 oftemporarilyrestrictedassetsrelatedtoagrantforprogramsinAfrica.
PermanentlyRestrictedNetAssetsPermanentlyrestrictednetassetsaredonationssubjecttodonorimposedstipulationsthat they bemaintained permanently by theOrganization. Generally, the donors ofthese assetspermit theOrganization touse allorpartof the income earnedon anyrelated investmentsforgeneralorspecificpurposes. AsofSeptember30,2012,therewerenopermanentlyrestrictednetassets.
DonatedServicesDonatedservicesthatrequirespecializedskillsandwouldbepurchased ifnotprovidedbythedonorarerecognizedassupportandexpensesbasedonthefairvalueoftheservicesreceived.FromtimetotimetheOrganizationreceivesdonatedservices fromprofessionalmusicians forwhich the value is difficult to estimate; the value of those services are not reflected in thefinancialstatements.
CashandCashEquivalentsFor purposes of the statement of financial position and the statement of cash flows, cashconsistsofcashandotherhighly liquidresourceswithanoriginalmaturityofthreemonthsorlesswhenpurchased.
FixedAssetsFixedassetsarerecordedatcostandaredepreciatedusingthestraightlinemethodbasedonthefollowingestimatedusefullivesoftheassets.
LeaseholdImprovements 15yearsVehicle 5yearsFurniture&Equipment 57yearsIntangibles(Software) 3years
Significant additions and betterments are capitalized. Expenditures formaintenance, repairsandminor renewals are charged to expense as incurred. Depreciation expense for the ninemonthsendedSeptember30,2012amountedto$14,232.
ClassificationofExpensesExpensesareclassifiedfunctionallyasameasureofserviceeffortsandaccomplishments.Directexpenses, incurredforasinglefunction,areallocatedentirelytothatfunction. Jointexpensesapplicable to more than one function are allocated on the basis of objectively summarizedinformationormanagementestimates.
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Blood:WaterMission,Inc.NotestoFinancialStatements(Continued)
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IncomeTaxesThe Organization is recognized as a taxexempt organization under Section 501(c)(3) of theInternal Revenue Code, and therefore, no provision for federal or state income taxes isapplicable.
TheOrganizationhasadoptedtheguidanceinASC740onaccountingforuncertaintyinincometaxes. ForalltaxpositionstakenbytheOrganization,managementbelieves it isclearthatthelikelihood is greater than 50 percent that the full amount of the tax positions takenwill beultimatelyrealized.Withfewexceptions,theOrganizationisnolongersubjecttoU.S.federaltaxexaminationsbytaxauthoritiesforyearsbefore2009.TheOrganizationincurrednointerestorpenaltiesduringtheninemonthsendedSeptember30,2012.
NOTE3CREDITRISK
During2012,theOrganizationmaintainedatvarioustimescashbalancesinexcessof$250,000inhigh creditqualitybanks,which are insuredby the FederalDeposit InsuranceCorporation(FDIC)upto$250,000.
NOTE4OPERATINGLEASE
OnDecember15,2007,theOrganizationenteredintoaleaseforofficespaceforatermofthreeyearsandfourmonths.Theagreementexpiredduring2011,andasofDecember31,2011theOrganizationisrentingtheirspaceonamonthtomonthbasis.TheOrganizationalsoleasesanapartmentinRwandaonamonthtomonthbasis.
Atotalexpenseof$42,364wasincurredbytheOrganizationforoperatingleasesin2012.
NOTE5COMMITMENTS
TheOrganization has entered into nonbindingmemorandums of understanding (MOU)withseveral strategicpartners for thepurposeofaccomplishing theOrganizationsgoals inAfrica.TheseMOUsdocumenttheexpectedcostsofeachproject,thetimeframes involved,andthedesiredresults.
NOTE6RETIREMENTPLAN
TheOrganizationhasaSimpleIRAretirementplaninwhichallemployeeswhohavereceivedatleast$5,000incompensationduringanytwoprioryearsandreasonablyexpectedtoreceiveatleast$5,000incompensationinthecurrentyearareeligible.Employeesmaycontributepretaxdeferralsup to$11,500 for the year. TheOrganizationmatches thosedeferralsup to3%ofcompensation.TheOrganizationmade$15,200ofmatchingcontributionsduring2012.
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Blood:WaterMission,Inc.NotestoFinancialStatements(Continued)
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NOTE7SUBSEQUENTEVENTS
Management has evaluated subsequent events through April 16, 2013, the date that thefinancialstatementswereavailabletobeissued.