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University of Louisiana at Monroe Foundation UNIVERSITY OF LOUISIANA MONROE FOUNDATION Foundation FINANCIAL REPORT FOR THE YEARS ENDED JUNE 30,2020 AND 2019 UNIVERSITY OF LOUISIANA MONROE FOUNDATION Monroe, Louisiana Table of Contents For the Year Ended June 30. 2020 Page Independent Auditors' Report 1 Statements of Financial Position 3 Statements of Activities and Changes in Net Assets 4 Statements of Functional Expenses 6 Statements of Cash Flows 7 Notes to Financial Statements 8 Schedule 1 - Analysis of Endowed Principal Funds - Fair Market Value Basis 30 Schedule 2 - Analysis of Endowed Operating Funds - Fair Market Value Basis 37 Schedule 3 - Analysis of Agency Endowment Accounts - Principal - Fair Market Value Basis 43 Schedule 4 - Analysis of Agency Endowment Accounts - Operating - Fair Market Value Basis 46 Schedule 5 - Analysis of Temporarily Restricted Funds - Departmental - Fair Market Value Basis 49 Schedule 6 - Analysis of Temporarily Restricted Funds - Scholarships - Fair Market Value Basis 54 1100 North 18th Street, Suite 200 Monroe, LA 71201 &"ASSOCIATES! ll • I U M INDEPENDENT AUDITORS' REPORT To the Board of Trustees of University of Louisiana Monroe Foundation We have audited the accompanying financial statements of the University of Louisiana Monroe Foundation (a nonprofit organization), which comprise the statement of financial position as of June 30, 2020 and 2019, and the related statements of activities, functional expenses and cash flows for the years 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. Auditor's Responsibility Our responsibility is to express an opinion on these 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 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 the auditor's 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. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the University of Louisiana Monroe Foundation as of June 30, 2020 and 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. WWW.AFULLSERVICECPAF1RM.COM University of Louisiana Monroe Foundation Monroe, Louisiana Report on Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. Schedules 1 - 6 are presented for purposes of additional analysis and are not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. (A Professional Accounting Corporation) Monroe, Louisiana November 10,2020 UNIVERSITY OF LOUISIANA MONROE FOUNDATION Monroe, Louisiana Statements of Financial Position For the Years Ended June 30. 2020 and 2019 ASSETS As of June 30 2020 2019 Current Assets Cash and Cash Equivalents 658,321 $ 1,296,474 Receivables Receivables 10,567 39,436 Pledges Receivable - Current Year (Note 2) 832,731 755,634 Total Receivables 843,298 795,070 Other Current Assets Prepaid Expenses & Other Current Assets 6,271 4,861 Total Current Assets 1,507,890 2,098,405 Noncurrent Assets Property and Equipment Land (Note 3) 5,522,816 5,716,149 Office and Farm Equipment 239,210 235,208 Buildings 20,117 476,884 Construction in Progress 0 1,472,481 Less: Accumulated Depreciation (195,057) (589,933) Net Property and Equipment 5,587,086 7,310,789 Investments Held By Trustees Bank Trusts (Note 4) Cash and Cash Equivalents 1,803,254 1,803,254 Other Investments 63,378,827 59,903,607 Total Investments Held By Trustees 65,182,081 61,706,861 Other Assets Other Securities 155,272 163,845 Art and Collectibles (Note 6) 135,608 135,608 Pledges Receivable - Long Term (Note 2) 747,162 970,077 Total Other Assets 1,038,042 1,269,530 Total Noncurrent Assets 71,807,209 70,287,180 TOTAL ASSETS 73,315,099 $ 72,383,585 LIABILITIES Current Liabilities Accounts Payable - Trade 22,726 56,140 Accounts Payable - University of Louisiana Monroe 126,192 237,859 Construction In Progress - Retalnage 0 2,850 Gift Annuity Liability (Note 7) 78,687 78,687 Deferred Revenue 0 400,000 Other Liabilities 60,993 9,719 Total Current Liabilities 288,598 785,255 Noncurrent Liabilities Funds Held For Others 617,841 633,978 Gift Annuity Liability (Note 7) 467,158 487,794 Funds Held As Agent (Note 8) 31,884,999 31,824,618 Total Noncurrent Liabilities 32,989,998 32,948,390 TOTAL LIABILITES 33,258,598 33,731,845 NET ASSETS Without Donor Restrictions 12,604,748 12,456,757 With Donor Restrictions 27,451,755 26,195,183 TOTAL NET ASSETS 40,058,503 38,851,940 TOTAL LIABILITIES AND NET ASSETS 73,315,099 $ 72,383,585 The accompanying notes are an Integral part of these financial statements. UNIVERSITY OF LOUISIANA MONROE FOUNDATION Monroe, Louisiana Statements of Activities and Changes in Net Assets For the Year Ended June 30. 2020 Without 'With Donor Restrictions Donor Departments & Endowment Endowment Restri ctions Scholarships Loans Income Principal Total SUPPORT, REVENUES AND GAINS Support Cash Contributions $ 118,996 1,111,888 - 11,129 3,042,096 4,284,109 Noncash Contributions 8,805 49,909 - - - 58,714 Total Support 127,801 1,161,797 - 11,129 3,042,096 4,342,823 Revenues and Gains Interest, Dividends, and Royalties 219,832 - - - 610,861 830,693 Farm and Lease Income 113,834 - - - - 113,834 Gain/(Loss) on Investments (30,027) - - - (155,066) (185,093) Setvice Charges Earned 876,406 - - - - 876,406 Change in Value of Split-interest Agreements - - - - 20,636 20,636 Other 550,242 29,072 - 228 28,819 608,361 Total Revenues and Gains 1,730,287 29,072 - 228 505,250 2,264,837 Net Assets Released From Restrictions and Transfers Restrictions Satisfied by Payments 4,145,878 (3,052,945) - (557,771) (535,162) 0 Transfer between Funds (708,428) 258,419 - 613,201 (163,192) 0 Transfer to Funds Held As Agent - (20,000) - 299,695 (335,244) (55,550) Total Support, Revenues and Gains 5,295,538 (1,623,657) - 366,482 2,513,747 6,552,110 EXPENSES Program Services Scholarships 804,537 - - - - 804,537 Academic Support 283,919 - - - - 283,919 Bad Debt Expense 83,772 - - - - 83,772 Departmental Expenses 1,469,380 1,469,380 Donations to ULM 1,098,014 - - - - 1,098,014 Total Program Setvices 3,739,622 - - - - 3,739,622 Supporting Services Fund Raising and Promotion 108,328 - - - - 108,328 Management and General 1,299,598 - - - - 1,299,598 Total Supporting Setvices 1,407,926 - - - - 1,407,926 Total Expenses 5,147,547 - - - - 5,147,547 Change in Net Assets 147,991 (1,623,657) - 366,482 2,513,747 1,404,563 Net Assets at Beginning of Year 12,456,757 $ 4,724,338 $ $ 1,285,030 $ 20,185,815 38,651,940 NETASSETSATENDOF YEAR $ 12,604,748 $ 3,100,681 $ - $ 1,651,512 $ 22,699,562 $ 40,056,503 The accompanying notes are an integral part of this financial statement A UNIVERSITY OF LOUISIANA MONROE FOUNDATION Monroe. Louisiana Statements of Activities and Changes in Net Assets For the Year Ended June 30, 2019 without VVIth Donor Restrictions Donor Departments & Endowment Endowment Restrictions Scholarships Loans Income Principal Total SUPPORT, REVENUES AND GAINS Support Cash Contributions $ 118,369 1,866,047 36,302 1,312,762 3,333,480 Noncash Contributions 18,328 122,709 - - 141,037 Total Support
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