Gleaners Community Food Bank of Southeastern Michigan Financial Statements
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Gleaners Community Food Bank of Southeastern Michigan Year Ended September 30, Financial 2014 Statements (with comparative totals for 2013) GLEANERS COMMUNITY FOOD BANK OF SOUTHEASTERN MICHIGAN TABLE OF CONTENTS PAGE Independent Auditors’ Report 1-2 Financial Statements for the Year Ended September 30, 2014 (with comparative totals for 2013) Statements of Financial Position 3 Statement of Activities 4 Statement of Functional Expenses 5 Statements of Cash Flows 6 Notes to Financial Statements 7-18 Supplementary Information Schedule of Operating Highlights 19 Rehmann Robson 1500 W. Big Beaver Rd. 2nd Floor Troy, MI 48084 Ph: 248.952.5000 Fx: 248.952.5750 rehmann.com INDEPENDENT AUDITORS’ REPORT January 19, 2015 Board of Directors Gleaners Community Food Bank of Southeastern Michigan Detroit, Michigan Report on the Financial Statements We have audited the accompanying financial statements of Gleaners Community Food Bank of Southeastern Michigan (a nonprofit organization), which comprise the statement of financial position as of September 30, 2014, and the related statements of activities, functional expenses, and cash flows 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. Independent 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 and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from 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 auditor 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 auditor considers 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. Rehmann is an independent member of Nexia International. CPAs & Consultants Wealth Advisors Corporate Investigators Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Gleaners Community Food Bank of Southeastern Michigan as of September 30, 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. Report on Summary Comparative Information We have previously audited the Gleaners Community Food Bank of Southeastern Michigan’s 2013 financial statements, and our report dated January 7, 2014, expressed an unmodified opinion on those audited financial statements. In our opinion, the summarized comparative information presented herein as of and for the year ended September 30, 2013, is consistent, in all material respects, with the audited financial statements from which it has been derived. Report on Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The Schedule of Operating Highlights, which is the responsibility of management, is presented for purposes of additional analysis and is not a required part of the financial statements. Such information, marked “unaudited”, has not been subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we do not express an opinion or provide assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 19, 2015 on our consideration of Gleaners Community Food Bank of Southeastern Michigan’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Gleaners Community Food Bank of Southeastern Michigan’s internal control over financial reporting and compliance. 2 GLEANERS COMMUNITY FOOD BANK OF SOUTHEASTERN MICHIGAN STATEMENTS OF FINANCIAL POSITION September 30 ASSETS 2014 2013 Current assets Cash and cash equivalents$ 2,754,885 $ 1,683,969 Receivables Trade - net of allowance for doubtful accounts of $10,463 in 2014 and 2013 327,850 381,370 Grants 409,085 172,041 Promises to give 784,162 954,614 Promises to give for the use of facilities 141,960 141,960 Food inventories Donated 2,473,329 1,687,843 Purchased 320,649 231,318 Prepaid expenses and other current assets 66,022 92,692 Total current assets 7,277,942 5,345,807 Net property and equipment 3,581,632 3,679,440 Property held for sale - 764,000 Promises to give 24,587 468,130 Promises to give for the use of facilities 340,399 476,797 Cash surrender value of life insurance 95,256 86,389 Beneficial interest in charitable remainder unitrust 1,245,322 1,093,019 Beneficial interest in Community Foundation Endowment Fund 1,747,694 1,703,059 Total assets$ 14,312,832 $ 13,616,641 LIABILITIES AND NET ASSETS Current liabilities Accounts payable$ 1,199,005 $ 1,564,741 Accrued liabilities 245,260 262,280 Current portion of note payable 37,033 36,729 Total current liabilities 1,481,298 1,863,750 Noncurrent portion of note payable - 37,033 Total liabilities 1,481,298 1,900,783 Unrestricted net assets Cash and other activities 4,916,283 4,009,152 Noncash food donations/distributions 2,473,329 1,687,843 Total unrestricted net assets 7,389,612 5,696,995 Temporarily restricted net assets 3,598,972 4,229,415 Permanently restricted net assets 1,842,950 1,789,448 Total net assets 12,831,534 11,715,858 Total liabilities and net assets$ 14,312,832 $ 13,616,641 The accompanying notes are an integral part of these financial statements. 3 GLEANERS COMMUNITY FOOD BANK OF SOUTHEASTERN MICHIGAN STATEMENT OF ACTIVITIES YEAR ENDED SEPTEMBER 30, 2014 (with comparative totals for 2013) Unrestricted Cash and Noncash Food Other Donations/ Total Activities Distributions Unrestricted Revenue and other support Donated food received$ - $ 38,044,359 $ 38,044,359 Contributions, grants and other revenue Contributions 10,229,473 - 10,229,473 Special events revenue 459,398 - 459,398 United Way 162,198 - 162,198 Grants and indirect support 1,993,200 - 1,993,200 Purchased food revenue 4,232,634 - 4,232,634 Agency shared maintenance 771,349 - 771,349 Investment income 167,804 - 167,804 Change in beneficial interest in Community Foundation Endowment Fund - - - Change in beneficial interest in charitable remainder unitrust - - - Contribution for the use of facilities - - - Contributed services 42,910 - 42,910 Other 235,021 - 235,021 Total contributions, grants, and other revenue 18,293,987 - 18,293,987 Net assets released from restrictions 2,097,895 - 2,097,895 Total revenue and other support 20,391,882 38,044,359 58,436,241 Expenses Program services - food bank Personnel expense 3,916,808 - 3,916,808 Purchased food distributed 5,755,751 - 5,755,751 Donated food distributed - 37,258,873 37,258,873 Transportation expense 718,572 - 718,572 Occupancy expense 1,760,225 - 1,760,225 General and administrative expense 3,606,189 - 3,606,189 Total program services - food bank 15,757,545 37,258,873 53,016,418 Supporting services Management and general 973,684 - 973,684 Fundraising 2,753,522 - 2,753,522 Total supporting services 3,727,206 - 3,727,206 Total expenses 19,484,751 37,258,873 56,743,624 Impairment loss on property held for sale - - - Change in net assets 907,131 785,486 1,692,617 Net assets, beginning of year 4,009,152 1,687,843 5,696,995 Net assets, end of year$ 4,916,283 $ 2,473,329 $ 7,389,612 The accompanying notes are an integral part of these financial statements. 4 Temporarily Permanently 2014 2013 Restricted Restricted Total Total $ - $ - $ 38,044,359 $ 51,536,947 1,065,149 - 11,294,622 12,665,788 - - 459,398 746,934 150,000 - 312,198 177,732 100,000