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Iola Foundation Dba: It Gets Better Project Financial IOLA FOUNDATION DBA: IT GETS BETTER PROJECT FINANCIAL STATEMENTS DECEMBER 31, 2019 PASADENA A Trusted Nonprofit Partner OAKLAND 234 E Colorado Blvd 1901 Harrison Street Suite M150 Main Fax: 626.403.6866 Suite 1150 Pasadena, CA 91101 Oakland, CA 94612 p: 626.403.6801 www.npocpas.com p: 510.379.1182 C O N T E N T S Independent Auditors’ Report 1-2 Statement of Financial Position 3 Statement of Activities 4 Statement of Functional Expenses 5 Statement of Cash Flows 6 Notes to Financial Statements 7-17 INDEPENDENT AUDITORS’ REPORT To the Board of Directors IOLA Foundation dba: It Gets Better Project Report on the Financial Statements We have audited the accompanying financial statements of IOLA Foundation dba: It Gets Better Project (a nonprofit organization), which comprise the Statement of Financial Position as of December 31, 2019, 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. 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 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 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 IOLA Foundation dba: It Gets Better Project as of December 31, 2019, 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. PASADENA A Trusted Nonprofit Partner OAKLAND 234 E Colorado Blvd 1901 Harrison Street Suite M150 Main Fax: 626.403.6866 Suite 1150 Pasadena, CA 91101 Oakland, CA 94612 p: 626.403.6801 www.npocpas.com p: 510.379.1182 INDEPENDENT AUDITORS’ REPORT continued Other Matter Report on Summarized Comparative Information We have previously audited IOLA Foundation dba: It Gets Better Project’s 2018 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated July 19, 2019. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2018, is consistent, in all material respects, with the audited financial statements from which it has been derived. Pasadena, California April 15, 2020 IOLA FOUNDATION DBA: IT GETS BETTER PROJECT STATEMENT OF FINANCIAL POSITION December 31, 2019 With comparative totals at December 31, 2018 2019 2018 ASSETS Cash $ 1,353,928 $ 419,141 Restricted cash - board reserve 115,772 80,520 Accounts receivable 10,000 - Prepaid expenses 6,887 10,171 Property and equipment (Note 4) 20,740 13,969 TOTAL ASSETS$ 1,507,327 $ 523,801 LIABILITIES AND NET ASSETS LIABILITIES Accounts payable and accrued liabilities $ 40,627 $ 28,952 TOTAL LIABILITIES 40,627 28,952 NET ASSETS Without donor restrictions 1,466,700 494,849 TOTAL NET ASSETS 1,466,700 494,849 TOTAL LIABILITIES AND NET ASSETS $ 1,507,327 $ 523,801 The accompanying notes are an integral part of these financial statements. 3 IOLA FOUNDATION DBA: IT GETS BETTER PROJECT STATEMENT OF ACTIVITIES For the year ended December 31, 2019 With comparative totals for the year ended December 31, 2018 Without Donor With Donor Restrictions Restrictions 2019 2018 REVENUE AND SUPPORT Contributions$ 2,205,833 $ 14,583 $ 2,220,416 $ 926,653 Interest income 290 290 117 Merchandise income - net of cost of goods sold of $11,047 (5,183) (5,183) (11,302) Net assets released from restrictions 14,583 (14,583) - - TOTAL REVENUE AND SUPPORT 2,215,523 - 2,215,523 915,468 EXPENSES Program services 1,068,662 1,068,662 648,366 Administrative 107,482 107,482 95,514 Fundraising 67,528 67,528 30,688 TOTAL EXPENSES 1,243,672 - 1,243,672 774,568 CHANGE IN NET ASSETS 971,851 - 971,851 140,900 NET ASSETS, BEGINNING OF YEAR 494,849 - 494,849 353,949 NET ASSETS, END OF YEAR $ 1,466,700 $ - $ 1,466,700 $ 494,849 The accompanying notes are an integral part of these financial statements. 4 IOLA FOUNDATION DBA: IT GETS BETTER PROJECT STATEMENT OF FUNCTIONAL EXPENSES For the year ended December 31, 2019 With comparative totals for the year ended December 31, 2018 Program Services Total Community Program Total Expenses Education Media Engagement International Services Administrative Fundraising 2019 2018 Salaries$ 29,787 $ 158,651 $ 59,271 $ 105,887 $ 353,596 $ 47,772 $ 21,900 $ 423,268 $ 383,244 Production expenses 28,693 95,899 46,952 78,254 249,798 249,798 - Independent contractors 900 68,883 47,837 27,968 145,588 27,968 173,556 129,643 Travel and meeting expenses 2,715 16,635 81,907 27,691 128,948 1,876 1,733 132,557 62,825 Rent 4,335 20,051 7,587 13,548 45,521 5,961 2,710 54,192 21,670 Global grant recipients - - 33,633 33,633 33,633 27,505 Payroll taxes 2,586 11,958 4,525 8,080 27,149 3,555 1,616 32,320 29,638 Medical insurance 2,364 10,932 4,136 7,387 24,819 3,250 1,477 29,546 16,833 Office expenses 1,776 8,218 3,110 5,552 18,656 2,103 1,109 21,868 5,609 Accounting fees - - - 13,440 13,440 11,332 Dues and subscriptions 885 4,091 1,548 2,764 9,288 1,216 553 11,057 11,384 Audit and tax preparations - - - 8,800 8,800 8,800 Vacation accrual 534 2,469 934 1,668 5,605 734 334 6,673 3,768 Events - 6,576 6,576 - Insurance 455 2,103 796 1,421 4,775 625 284 5,684 3,699 Postage and shipping 443 2,051 776 1,386 4,656 610 277 5,543 3,461 Internet and telephone 418 1,933 731 1,306 4,388 575 261 5,224 4,383 Payroll fees - - - 5,175 5,175 1,258 Bank charges - - - 5,101 5,101 6,775 Printing and copying 399 1,847 699 1,248 4,193 549 250 4,992 4,776 Legal fees - 4,913 4,913 4,453 Depreciation 379 1,752 663 1,184 3,978 521 237 4,736 4,158 Meals 168 775 293 524 1,760 230 105 2,095 1,491 Workers compensation 153 709 268 479 1,609 211 96 1,916 5,043 Staff and board meetings 50 229 87 155 521 68 31 620 612 Advertising 17 80 30 54 181 24 11 216 9,765 Taxes and licenses - - - 173 173 5,792 Moving and storage expenses - - 4,528 Equipment and software - - 1,623 Training - - 500 TOTAL 2019 FUNCTIONAL EXPENSES$ 77,057 $ 409,266 $ 262,150 $ 320,189 $ 1,068,662 $ 107,482 $ 67,528 $ 1,243,672 TOTAL 2018 FUNCTIONAL EXPENSES$ - $ 248,805 $ 170,929 $ 228,632 $ 648,366 $ 95,514 $ 30,688 $ 774,568 The accompanying notes are an integral part of these financial statements. 5 IOLA FOUNDATION DBA: IT GETS BETTER PROJECT STATEMENT OF CASH FLOWS For the year ended December 31, 2019 With comparative totals for the year ended December 31, 2018 2019 2018 CASH FLOWS FROM OPERATING ACTIVITIES: Change in net assets $ 971,851 $ 140,900 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 4,736 4,158 (Increase) decrease in operating assets: Restricted cash (35,252) (46,067) Accounts receivable (10,000) 2,000 Prepaid expenses 3,284 (2,376) Increase (decrease) in operating liabilities: Accounts payable and accrued liabilities 11,675 9,097 NET CASH PROVIDED BY OPERATING ACTIVITIES 946,294 107,712 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of equipment (11,507) (7,336) NET CASH (USED) BY INVESTING ACTIVITIES (11,507) (7,336) NET INCREASE IN CASH 934,787 100,376 CASH, BEGINNING OF YEAR 419,141 318,765 CASH, END OF YEAR$ 1,353,928 $ 419,141 The accompanying notes are an integral part of these financial statements. 6 IOLA FOUNDATION DBA: IT GETS BETTER PROJECT NOTES TO FINANCIAL STATEMENTS 1. Organization IOLA Foundation dba: It Gets Better Project (“IOLA Foundation”) is a California nonprofit corporation classified by the Internal Revenue Service as tax-exempt under Section 501(c)(3).
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