Hartford Foundation for Public Giving Financial Statements, December 31
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HARTFORD FOUNDATION FOR PUBLIC GIVING FINANCIAL STATEMENTS DECEMBER 31, 2014 AND 2013 HARTFORD FOUNDATION FOR PUBLIC GIVING CONTENTS Independent Auditors’ Report 1-2 Statements of Financial Position - December 31, 2014 and 2013 3 Statements of Activities for the Years Ended December 31, 2014 and 2013 4 Statements of Cash Flows for the Years Ended December 31, 2014 and 2013 5 Notes to Financial Statements 6-22 Schedules of Operating Activity for the Years Ended December 31, 2014 and 2013 23 Schedule of Grants for the Year Ended December 31, 2014 24-55 Schedule of Net Asset Balances - December 31, 2014 56-78 Schedule of Donations and Bequests for the Year Ended December 31, 2014 79-83 29 South Main Street Tel 860.561.4000 P.O. Box 272000 Fax 860.521.9241 West Hartford, CT 06127-2000 blumshapiro.com Independent Auditors’ Report To the Board of Directors Hartford Foundation for Public Giving We have audited the accompanying financial statements of Hartford Foundation for Public Giving, which comprise the statements of financial position as of December 31, 2014 and 2013, and the related statements of activities 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- Blum, Shapiro & Company, P.C. An independent member of Baker Tilly International Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hartford Foundation for Public Giving as of December 31, 2014 and 2013, 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. Report on Supplementary Information Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The schedules of operating activity, grants, net asset balances, and donations and bequests are presented for the 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 audits 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. West Hartford, Connecticut April 8, 2015 -2- HARTFORD FOUNDATION FOR PUBLIC GIVING STATEMENTS OF FINANCIAL POSITION DECEMBER 31, 2014 AND 2013 2014 2013 ASSETS Investments, at Market Value U.S. equities $ 351,779,695 $ 384,314,612 International equities 214,358,307 215,433,174 Fixed income 204,655,743 186,768,481 Alternative investments 49,543,561 49,191,079 Emerging market equities 53,546,235 47,493,079 Cash equivalents 43,278,271 23,947,958 Split-interest agreements 9,222,504 9,167,839 Other investments 404,730 404,730 Total investments 926,789,046 916,720,952 Other Assets Cash 2,262,975 1,374,086 Accrued investment income 1,455,321 991,701 Contributions receivable - split-interest agreements 3,082,442 2,958,238 Property and equipment, net 307,846 317,700 Other assets 314,511 319,328 Total Assets $ 934,212,141 $ 922,682,005 LIABILITIES AND NET ASSETS Liabilities Grants and other payables $ 28,951,568 $ 23,571,625 Annuity liability 2,905,638 3,036,082 Agency endowments 3,506,946 3,136,354 Other liabilities 269,348 241,621 Total liabilities 35,633,500 29,985,682 Net Assets Unrestricted net assets 28,208,064 27,862,364 Temporarily restricted net assets 870,370,577 864,833,959 Total net assets 898,578,641 892,696,323 Total Liabilities and Net Assets $ 934,212,141 $ 922,682,005 The accompanying notes are an integral part of the financial statements -3- HARTFORD FOUNDATION FOR PUBLIC GIVING STATEMENTS OF ACTIVITIES FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 2014 2013 Temporarily Temporarily Unrestricted Restricted Total Unrestricted Restricted Total Revenues, Gains and Other Support Donations and bequests $ $ -19,733,486 $ 19,733,486 $ $ - 10,310,277 $ 10,310,277 Investment income, net of investment and trustees fees of $847,566 in 2014 and $794,458 in 2013 671,847 13,069,986 13,741,833 761,831 14,427,144 15,188,975 Change in value of split-interest agreements and other assets (207,151) 177,340 (29,811) 42,471 296,395 338,866 Net assets released from restrictions 44,738,658 (44,738,658) - 37,372,484 (37,372,484) - Other revenues 656,052 355,223 1,011,275 490,739 373,358 864,097 Total revenues, gains and other support 45,859,406 (11,402,623) 34,456,783 38,667,525 (11,965,310) 26,702,215 Expenses Program expenses: Grants authorized, net 32,637,343 32,637,343 - 29,385,934 - 29,385,934 Related program activities and Foundation administered projects 2,526,912 - 2,526,912 2,582,375 - 2,582,375 Funds transferred out 3,698,644 - 3,698,644 181,710 - 181,710 Management and general: Operating expenses 7,345,485 - 7,345,485 6,974,114 - 6,974,114 Total expenses 46,208,384 46,208,384 - 39,124,133 - 39,124,133 Decrease in Net Assets Before Realized and Unrealized Appreciation on Investments and Other Assets (348,978) (11,402,623) (11,751,601) (456,608) (11,965,310) (12,421,918) Realized and Unrealized Appreciation on Investments and Other Assets, Net of Investment and Trustees Fees of $4,097,898 in 2014 and $3,629,357 in 2013 694,678 16,939,241 17,633,919 5,043,185 118,206,852 123,250,037 Increase in Net Assets 345,700 5,536,618 5,882,318 4,586,577 106,241,542 110,828,119 Net Assets - Beginning of Year 27,862,364 864,833,959 892,696,323 23,275,787 758,592,417 781,868,204 Net Assets - End of Year $ 28,208,064 $ 870,370,577 $ 898,578,641 $ 27,862,364 $ 864,833,959 $ 892,696,323 The accompanying notes are an integral part of the financial statements -4- HARTFORD FOUNDATION FOR PUBLIC GIVING STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 2014 2013 Cash Flows from Operating Activities Increase in net assets $ 5,882,318 $ 110,828,119 Adjustments to reconcile increase in net assets to net cash used in operating activities: Depreciation expense 78,705 72,332 Realized and unrealized appreciation of investments and other assets (17,633,919) (123,250,037) (Increase) decrease in operating assets: Accrued investment income (463,620) 1,105,317 Contributions receivable - split-interest agreements (214,161) (1,125,370) Other assets 40,109 577,043 Increase (decrease) in operating liabilities: Grants payable 5,379,943 625,585 Annuity liability (130,444) 104,271 Agency endowments 370,593 379,172 Other liabilities 27,727 34,865 Net cash used in operating activities (6,662,749) (10,648,703) Cash Flows from Investing Activities Purchases of investments (685,730,786) (342,208,829) Proceeds from sales of investments 693,351,276 353,211,617 Purchases of property and equipment (68,852) (46,027) Net cash provided by investing activities 7,551,638 10,956,761 Net Increase in Cash 888,889 308,058 Cash - Beginning of Year 1,374,086 1,066,028 Cash - End of Year $ 2,262,975 $ 1,374,086 The accompanying notes are an integral part of the financial statements -5- HARTFORD FOUNDATION FOR PUBLIC GIVING NOTES TO FINANCIAL STATEMENTS NOTE 1 - DESCRIPTION OF THE FOUNDATION Hartford Foundation for Public Giving (the Foundation) is a community foundation serving the Greater Hartford area.