2007-Audit
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AUSTIN COMMUNITY FOUNDATION FOR THE CAPITAL AREA, INC. Consolidated Financial Statements December 31, 2007 and 2006 (With Independent Auditors’ Report Thereon) Independent Auditors’ Report To the Board of Governors of Austin Community Foundation for the Capital Area, Inc.: We have audited the accompanying consolidated statements of financial position of Austin Community Foundation for the Capital Area, Inc. (the “Foundation”) and its affiliate as of December 31, 2007 and 2006, and the related consolidated statements of activities and cash flows for the years then ended. These consolidated financial statements are the responsibility of the Foundation’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated 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 ...
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| Publié par | Fiwyur |
| Nombre de lectures | 29 |
| Langue | English |
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AUSTIN COMMUNITY FOUNDATION FOR THE CAPITAL AREA, INC. Consolidated Financial Statements December 31, 2007 and 2006 (With Independent Auditors Report Thereon)
Independent Auditors Report
To the Board of Governors of Austin Community Foundation for the Capital Area, Inc.: We have audited the accompanying consolidated statements of financial position of Austin Community Foundation for the Capital Area, Inc. (the Foundation) and its affiliate as of December 31, 2007 and 2006, and the related consolidated statements of activities and cash flows for the years then ended. These consolidated financial statements are the responsibility of the Foundations management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated 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 our audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Foundation and its affiliate as of December 31, 2007 and 2006, and the changes in their net assets and their cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. PMB HELIN DONOVAN, LLP
June 18, 2008 Austin, Texas
AUSTIN COMMUNITY FOUNDATON FOR THE CAPITAL AREA, INC. Consolidated Statements of Financial Position As of December 31, 2007 and 2006
Assets Cash and cash equivalents (note 2) Investments, at fair value Marketable securities (note 3) Real estate investments (note 4) Other Notes receivable, net Property and equipment, net Total assets
Liabilities and Net Assets Accounts and grants payable Funds held for others (note 8) Funds held for others - Agency (note 9) Total liabilities Net assets Unrestricted Temporarily restricted (note 6) Permanently restricted (note 7) Total net assets Total liabilities and net assets
See accompanying notes and independent auditors' report.
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2007 2006
$ 41,415,115 $ 13,329,284 70,039,173 68,683,917 1,371,861 6,252,458 1,297,474 1,675,243 164,728 664,148 140,541 31,038 $ 114,428,892 $ 90,636,088
$ 812,129 $ 867,681 376,619 397,853 5,001,541 2,770,240 6,190,289 4,035,774
39,223,614 29,543,241 25,104,366 15,782,312 43,910,623 41,274,761 108,238,603 86,600,314 $ 114,428,892 $ 90,636,088
AUSTIN COMMUNITY FOUNDATION FOR THE CAPITAL AREA, INC. Consolidated Statement of Activities Year Ended December 31, 2007
Temporarily Permanently Unrestricted Restricted Restricted Total
Revenues, Gains and Support Contributions $ 19,983,226 $ 17,672,169 $ 2,567,574 $ 40,222,969 Investment return 882,822 2,042,850 68,288 2,993,960 -Other income, net 8,171 89,545 97,716 Appreciation on investments, net 868,867 1,743,922 - 2,612,789 Net assets released from restrictions 12,226,432 (12,226,432) - -Total revenues, gains and support 33,969,518 9,322,054 2,635,862 45,927,434 Expenses and Losses Program services: Community grant funding 17,514,255 - - 17,514,255 Special projects funding and program costs 6,189,685 - - 6,189,685 Total program services 23,703,940 - - 23,703,940 Supporting services: Management and general Fundraising Total supporting services Total expenses and losses Changes in net assets Net assets at beginning of year et assets at end of yea
490,913 - - 490,913 94,292 - - 94,292 585,205 - - 585,205 24,289,145 - - 24,289,145 9,680,373 9,322,054 2,635,862 21,638,289 29,543,241 15,782,312 41,274,761 86,600,314 $ 39,223,614 $ 25,104,366 $ 43,910,623 $ 108,238,603
See accompanying notes and independent auditors' report.
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AUSTIN COMMUNITY FOUNDATION FOR THE CAPITAL AREA, INC. Consolidated Statement of Activities Year Ended December 31, 2006
Temporarily Permanently Unrestricted Restricted Restricted Total
Revenues, Gains and Support Contributions $ 7,684,497 $ 8,718,369 $ 4,826,260 $ 21,229,126 Investment return 686,315 1,433,099 - 2,119,414 Other income, net 49,951 44,509 - 94,460 Appreciation on investments, net 230,410 3,334,447 51,881 3,616,738 Net assets released from restrictions 10,766,874 (10,615,795) (151,079) -Total revenues, gains and support 19,418,047 2,914,629 4,727,062 27,059,738 Expenses and Losses Program services: Community grant funding 12,324,845 - - 12,324,845 Special projects funding and program costs 4,637,967 - - 4,637,967 Total program services 16,962,812 - - 16,962,812 Supporting services: Management and general Fundraising Total supporting services Total expenses and losses Changes in net assets Net assets at beginning of year et assets at end of yea
518,550 - - 518,550 84,910 - - 84,910 603,460 - - 603,460 17,566,272 - - 17,566,272 1,851,775 2,914,629 4,727,062 9,493,466 27,691,466 12,867,683 36,547,699 77,106,848 $ 29,543,241 $ 15,782,312 $ 41,274,761 $ 86,600,314
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See accompanying notes and independent auditors' report.
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AUSTIN COMMUNITY FOUNDATION FOR THE CAPITAL AREA, INC. Consolidated Statements of Cash Flows Years Ended December 31, 2007 and 2006
Cash flows from operating activities Increase in net assets Adjustments to reconcile increase in net assets to net cash provided by operations Depreciation Non-cash contribution Non-cash grant Appreciation on investments (Increase) decrease in operating assets Accounts receivable Increase (decrease) in operating liabilities Accounts payable and grants payable Funds held for others Funds held for others - agencies Net cash provided by operating activities Cash flows from investing activities Purchase of fixed assets Purchase of investments Proceeds from sale of investments Net cash provided by (used in) investing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Non-cash investing activities Land contributed Land granted
See accompanying notes and independent auditors' report.
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2007 2006
$ 21,638,289 $ 9,493,456 12,710 2,202 (208,000) (1,740,724) 2,984,800 - (2,612,789) (3,616,738) 499,420 127,840 (55,552) 552,669 (21,234) 95,075 2,231,301 1,102,579 24,468,945 6,016,359
(122,213) (29,055) (5,936,737) (3,535,775) 9,675,836 - 3,616,886 (3,564,830) 28,085,831 2,451,529 13,329,284 10,877,755 $ 41,415,115 $ 13,329,284
$ 208,000 $ 1,740,724 $ 2,984,800 $ -
(1)
AUSTIN COMMUNITY FOUNDATION FOR THE CAPITAL AREA, INC. Notes to the Consolidated Financial Statements December 31, 2007 and 2006 Organization and Summary of Significant Accounting Policies Organization Austin Community Foundation for the Capital Area, Inc. (the “Foundation) is a Texas non-profit corporation chartered in 1977. The Foundation’s primary mission is to receive gifts, bequests, and donations to be administered in charitable, scientific, literary, educational, social, and public welfare activities for the benefit of the Capital Area community. The Foundation is exempt from federal income tax under the Internal Revenue Code Section 501 (c) (3) for income related to its exempt purpose. The Foundation is classified by the Internal Revenue Service as an organization other than a private foundation. The Foundation manages more than 600 charitable funds, established by individual donors, corporations and non-profit agencies. The Foundation invests these funds for growth so that they can flow back into the community to support a wide range of charitable efforts, including grants and scholarships. In addition, the Foundation received general membership and memorial contributions, which are put into an unrestricted fund. The Foundation’s grants, whether from specific charitable funds or from the general fund, support health, human services, arts and culture, the environment, community development and community service, education and training, recreation, and animal-related services. The Foundation has a spectrum of fund types to help donors meet their philanthropic goals. Summary of Significant Accounting Policies (a) Basis of Presentation The financial statements are presented on the basis of unrestricted, temporarily restricted, and permanently restricted net assets. The consolidated financial statements include the accounts of the Foundation and its affiliate, Charitable Holdings as of December 31, 2007 and 2006 and for the years then ended. (b) Basis of Accounting The financial statements of the Foundation have been prepared on the accrual basis of accounting in accordance with accounting principals generally accepted in the United States of America. They are presented in accordance with the provisions of Statement of Financial Accounting Standards No. 117, “ Financial Statements of Not-for-Profit Organizations .
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(1)
AUSTIN COMMUNITY FOUNDATION FOR THE CAPITAL AREA, INC. Notes to the Consolidated Financial Statements December 31, 2007 and 2006 Organization and Summary of Significant Accounting Policies (continued) Summary of Significant Accounting Policies (continued) (c) Contributions The Foundation reports contributions as restricted support if the support is received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. However, if a restriction is fulfilled in the same period in which the contribution is received, the Foundation reports the support as unrestricted. Donated assets are recorded at their estimated fair market values at the date of receipt. The Foundation reports contributions of land, buildings, and equipment as unrestricted, unless explicit donor stipulations specify how the donated assets must be used. Gifts of assets with explicit restrictions that specify how the assets are to be used are accounted for as restricted support. The Foundation reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in service. (d) Contributed Services During the years ended December 31, 2007 and 2006, the value of contributed services meeting the requirements for recognition in the financial statements was not material and no amounts have been recorded. Although individuals volunteer their time and perform a variety of tasks that assist the organization, these services do not meet the criteria for recognition as contributed services. (e) Cash and Cash Equivalents The Foundation considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. (f) Investments Investments in equity securities with readily determinable fair values and all investments in debt securities are measured at fair value. All non cash contributions are recorded at fair value at the date of receipt. Land is recorded at appraised value. Stock is recorded at the average of the high and low selling price on the date received. Investments sold are recorded at amount received. Investment income is reported as an increase in unrestricted net assets unless the donor placed restrictions on the income’s use. The change in fair value between years along with realized gains or losses are reflected in the statement of revenues and expenses in the year of the change. Gains and losses are reflected as increases or decreases in unrestricted net assets unless the donor places temporary or permanent restrictions on the gains and losses. (g) Property and Equipment Furniture, equipment, software and vehicles are capitalized at cost. Property and equipment are depreciated over estimated useful lives of five years using the straight-line method.
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(1)
(2)
AUSTIN COMMUNITY FOUNDATION FOR THE CAPITAL AREA, INC. Notes to the Consolidated Financial Statements December 31, 2007 and 2006 Organization and Summary of Significant Accounting Policies (continued) Summary of Significant Accounting Policies (continued) (h) Consolidation The consolidated financial statements include the accounts of the Foundation and its affiliate, Charitable Holdings. Charitable Holdings was formed in October 1991 to assist the Foundation in carrying out the charitable purposes for which the Foundation was organized and operated. All inter-company transactions have been eliminated in consolidation. (i) Income Taxes The Foundation is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code. Unrelated business income, of which the Foundation had no significant amounts for the years ended December 31, 2007 and 2006, is subject to federal income taxes. Accordingly, there is no provision or liability for federal income taxes in the accompanying financial statements. (j) Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimated. (k) Functional Expenses The Foundation reports its expenses on its statement of activities by function. The Foundation may allocate certain indirect operational expenses (insurance, maintenance, utilities, depreciation) between program and supporting services based on estimates made by management. Cash and Cash Equivalents Cash and cash equivalents consist of the following at December 31, 2007 and 2006: 2007 2006 Cash $ (744,880) $ 523,633 Certificates of Deposit 1,000,000 -Money market funds 41,159,995 12,805,651 Total cash and cash equivalent $ 41,415,115 $ 13,329,284
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(3)
(4)
AUSTIN COMMUNITY FOUNDATION FOR THE CAPITAL AREA, INC. Notes to the Consolidated Financial Statements December 31, 2007 and 2006 Marketable Securities Marketable securities are stated at fair value based on quoted market prices and consist of the following as of December 31, 2007 and 2006: Fair Market Value 2007 2006 U.S. government securities $ 1,767,168 $ 2,077,851 Fixed income securities 20,589,299 20,011,150 Equity securities 47,682,706 46,594,916 Total marketable securities $ 70,039,173 $ 68,683,917 Equity securities were disbursed across a range of equity mutual funds and individual common stocks. There was a significant concentration in two individual equity securities at December 31, 2007 and 2006 as follows: Fair Market Value 2007 2006 Dell, Inc. common stock $ 2,156,880 $ 3,186,430 National Instruments, Inc. common stock 333,300 3,730,627 The following schedule summarizes the investment return and its classification in the Statement of Activities for the years ended December 31, 2007 and 2006: 2007 2006 Interest, dividends and other income $ 2,993,960 $ 2,119,414 Appreciation on investments 2,612,789 3,616,738 $ 5,606,749 $ 5,796,152 Real Estate Investments and Other Investments The real estate and other investments consist of the following at December 31, 2007 and 2006: Land $ Oil and gas leasehold Investment in limited partnership Total real estate investments $
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2007 2006 1,052,720 $ 5,496,898 230,115 682,215 89,026 73,345 1,371,861 $ 6,252,458
(4)
AUSTIN COMMUNITY FOUNDATION FOR THE CAPITAL AREA, INC. Notes to the Consolidated Financial Statements December 31, 2007 and 2006 Real Estate Investments and Other Investments (continued) The real estate investments are accounted for at estimated fair value at time of gift and may be subsequently re-valued at estimated fair value for subsequent appreciation or depreciation for pending sales or distributions. The Foundation sold an interest in land in January 2007 and received net proceeds of approximately $1,740,000 which approximated the carrying value of the land at December 31, 2006. The proceeds from this sale were transferred to the Austin Community Foundation during 2007. At December 31, 2006, the land was concentrated in 16.324 acres of land in Travis County, Texas with a fair value of $3,640,000 in addition to the tract noted above. A significant portion of the 16.324 acres was granted to another not for profit organization during 2007. Effective September 1, 2006, Charitable Holdings received the ownership interest in approximately 216 acres of land. The 216 acres is required to be maintained as a wildlife park and nature preserve under the donor’s will and the deed from the Texas Parks and Wildlife Department and cannot be sold by Charitable Holdings. Under the court order allowing the Texas Parks and Wildlife Department to convey the property to Charitable Holdings, the Foundation has the responsibility to manage and maintain the property in accordance with the terms of the will and the deed. Therefore, the Foundation has an on-going obligation to perform maintenance and provide for other costs of the property. As a result of the restriction on sale and the expenses required to maintain the property, the Foundation’s management has determined the fair value of the land at $1 at December 31, 2006. During 2007, the Foundation increased the value of the 216 acres to $208,000 based on the assessed values of the property by the Travis County Appraisal District. The increase in value was treated as additional contribution revenue in 2007. The other investments consist of the following at December 31, 2007 and 2006: 2007 2006 Split interest agreements $ 101,875 $ 80,868 Cash value of life insurance policy 1,050,319 1,037,131 Riverboat, net of accumulated depreciation - 395,500 Other 145,280 161,744 Total other investments $ 1,297,474 $ 1,675,243
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