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Keshet Audited Financials 2017

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Keshet Audited Financials 2017 KESHET, INC. FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016 KESHET, INC. CONTENTS Independent Auditors’ Report.................................................................................................. 1-2 Financial Statements Statements of Financial Position ................................................................................................3 Statements of Activities and Changes in Net Assets ............................................................. 4-5 Statements of Functional Expenses ....................................................................................... 6-7 Statements of Cash Flows ..........................................................................................................8 Notes to Financial Statements ................................................................................................. 9-18 INDEPENDENT AUDITORS’ REPORT To the Board of Directors of Keshet, Inc. Report on the Financial Statements We have audited the accompanying financial statements of Keshet, Inc. (a nonprofit organization), which comprise the statements of financial position as of December 31, 2017 and 2016, and the related statements of activities and changes in net assets, 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. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. 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 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 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 auditors consider 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. 1 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Keshet, Inc. as of December 31, 2017 and 2016, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Boston, Massachusetts November 15, 2018 2 KESHET, INC. STATEMENTS OF FINANCIAL POSITION DECEMBER 31, 2017 AND 2016 2017 2016 Assets Cash $ 739,585 $ 382,878 Grants receivable and promises to give, net 1,267,920 1,279,433 Contributions receivable 2,802 15,681 Property and equipment, net 17,145 19,715 Security deposits 12,523 7,058 Prepaid expense 64,076 48,844 Total Assets $ 2,104,051 $ 1,753,609 Liabilities and Net Assets Accounts payable $ 17,637 $ 26,014 Accrued expenses 79,597 38,361 Deferred revenue 1,968 3,133 Total Liabilities 99,202 67,508 Net Assets Unrestricted 198,975 182,933 Temporarily restricted 1,805,874 1,503,168 Total Net Assets 2,004,849 1,686,101 Total Liabilities and Net Assets $ 2,104,051 $ 1,753,609 The accompanying notes are an integral part of these financial statements. 3 KESHET, INC. STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS FOR THE YEAR ENDED DECEMBER 31, 2017 Temporarily Unrestricted Restricted Total Support and Revenue Grants $ 261,084 $ 1,429,000 $ 1,690,084 Contributions 748,136 -- 748,136 Special events, net of expenses 163,486 -- 163,486 Training and consulting fees 42,643 -- 42,643 Other income 14,438 -- 14,438 Net assets released from restriction 1,126,294 (1,126,294) -- Total Support and Revenue 2,356,081 302,706 2,658,787 Expenses Program services 1,779,266 -- 1,779,266 Support services General and administrative 308,055 -- 308,055 Fundraising 252,718 -- 252,718 Total Expenses 2,340,039 -- 2,340,039 Increase in Net Assets 16,042 302,706 318,748 Net Assets at Beginning of Year 182,933 1,503,168 1,686,101 $ 198,975 $ 1,805,874 $ 2,004,849 Net Assets at End of Year The accompanying notes are an integral part of these financial statements. 4 KESHET, INC. STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2016 Temporarily Unrestricted Restricted Total Support and Revenue Grants $ 85,000 $ 2,032,963 $ 2,117,963 Contributions 749,168 -- 749,168 Special events, net of expenses 112,913 -- 112,913 Training and consulting fees 57,162 -- 57,162 Other income 16,435 -- 16,435 Fundraising 10,819 -- 10,819 Net assets released from restriction 885,361 (885,361) -- Total Support and Revenue 1,916,858 1,147,602 3,064,460 Expenses Program services 1,325,463 -- 1,325,463 Support services General and administrative 136,225 -- 136,225 Fundraising 347,641 -- 347,641 Total Expenses 1,809,329 -- 1,809,329 Increase in Net Assets 107,529 1,147,602 1,255,131 Net Assets at Beginning of Year 75,404 355,566 430,970 Net Assets at End of Year $ 182,933 $ 1,503,168 $ 1,686,101 The accompanying notes are an integral part of these financial statements. 5 KESHET, INC. STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2017 Program General and Services Administration Fundraising Totals Salaries $ 938,822 $ 112,659 $ 200,282 $ 1,251,763 Payroll taxes and employee benefits 227,107 27,253 48,449 302,809 Consultants and contractors 170,037 30,625 22,760 223,422 Occupancy 105,285 56,290 4,233 165,808 Travel and accomodations 86,355 7,578 15,397 109,330 Professional services 44,212 44,212 -- 88,424 Space rental 67,304 1,408 6,426 75,138 Food and entertainment 42,869 1,736 25,106 69,711 Printing and reproduction 27,415 203 19,873 47,491 Office and program supplies 18,280 6,139 2,992 27,411 Postage and shipping 14,042 2,853 9,658 26,553 Merchant account fees 6,313 6,267 46 12,626 Miscellaneous expense and bad debt 5,855 5,855 -- 11,710 Marketing and promotion 5,941 2,002 1,150 9,093 Mebership dues and subscriptions 5,418 94 2,253 7,765 Program evaluation 6,969 -- -- 6,969 Insurance 2,616 2,615 -- 5,231 Event registration expense 3,099 76 144 3,319 Professional development 1,327 190 194 1,711 1,779,266 308,055 358,963 2,446,284 Less special events -- -- 106,245 106,245 Total Functional Expenses $ 1,779,266 $ 308,055 $ 252,718 $ 2,340,039 The accompanying notes are an integral part of these financial statements. 6 KESHET, INC. STATEMENT OF FUNCTIONAL EXPENSES (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2016 Program General and Services Administration Fundraising Totals Salaries $ 773,760 $ 94,988 $ 178,284 $ 1,047,032 Payroll taxes and employee benefits 159,341 19,561 33,318 212,220 Program consultants 101,241 -- 450 101,691 Events and meeting costs 24,870 268 67,522 92,660 Rent and utilities 70,118 6,833 13,291 90,242 Travel 50,939 763 30,537 82,239 Professional fees 36,256 4,451 7,581 48,288 Other consultants 8,765 122 22,095 30,982 Postage and shipping 3,324 312 20,401 24,037 Office and program supplies 15,480 1,169 3,409 20,058 Website 12,908 1,585 2,699 17,192 Events consultants 7,318 -- 9,607 16,925 Depreciation 12,700 1,559 2,655 16,914 Bank and credit card processing fees 11,281 1,358 2,317 14,956 Telephone 10,989 1,058 1,801 13,848 Computer and equipment 6,842 553 3,859 11,254 Printing and publishing 2,603 38 8,361 11,002 Miscellaneous expense and bad debt 5,203 822 2,023 8,048 Advertising and promotion 4,161 -- 2,655 6,816 Repairs and maintenance 3,753 461 785 4,999 Insurance 2,489 306 520 3,315 Professional development 1,122 18 118 1,258 1,325,463 136,225 414,288 1,875,976 Less special events -- -- 66,647 66,647 $ 1,325,463 $ 136,225 $ 347,641 $ 1,809,329 Total Functional Expenses The accompanying notes are an integral part of these financial statements. 7 KESHET, INC. STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016 2017 2016 Cash Flows from Operating Activities Change in net assets $ 318,748 $ 1,255,131 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation expense 9,632 16,914 Bad debt expense 9,610 3,702 Changes in operating assets and liabilities: Prepaid expenses (15,232) (40,126) Contributions receivable 12,879 (7,799) Grants receivable and promises to give 1,903 (974,523) Security deposits (5,465) (500) Accounts payable (8,377) (36,999) Accrued expenses 41,236 (18,438) Deferred revenue (1,165) 3,133 Total Adjustments 45,021 (1,054,636) Net Cash Provided by Operating Activities 363,769 200,495 Net Cash Used in Investing Activities Purchase of property and equipment (7,062) -- Net Increase in Cash 356,707 200,495 Cash at Beginning of Year 382,878 182,383 Cash at End of Year $ 739,585 $ 382,878 The accompanying notes are an integral part of these financial statements.
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