Hartford Foundation for Public Giving Financial Statements, December 31
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HARTFORD FOUNDATION FOR PUBLIC GIVING FINANCIAL STATEMENTS DECEMBER 31, 2013 AND 2012 HARTFORD FOUNDATION FOR PUBLIC GIVING CONTENTS Independent Auditors’ Report 1-2 Statements of Financial Position - December 31, 2013 and 2012 3 Statements of Activities for the Years Ended December 31, 2013 and 2012 4 Statements of Cash Flows for the Years Ended December 31, 2013 and 2012 5 Notes to Financial Statements 6-22 Schedules of Operating Activity for the Years Ended December 31, 2013 and 2012 23 Schedule of Grants for the Year Ended December 31, 2013 24-62 Schedule of Net Asset Balances - December 31, 2013 63-85 Schedule of Donations and Bequests for the Year Ended December 31, 2013 86-90 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, 2013 and 2012, 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, 2013 and 2012, 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 9, 2014 -2- HARTFORD FOUNDATION FOR PUBLIC GIVING STATEMENTS OF FINANCIAL POSITION DECEMBER 31, 2013 AND 2012 2013 2012 ASSETS Investments, at Market Value U.S. equities $ 384,314,612 $ 299,715,120 International equities 215,433,174 167,164,193 Fixed income 186,768,481 189,923,016 Alternative investments 49,191,079 67,344,718 Emerging market equities 47,493,079 49,559,218 Cash equivalents 23,947,958 21,194,869 Split-interest agreements 9,167,839 8,410,232 Other investments 404,730 404,730 Total investments 916,720,952 803,716,096 Other Assets Cash 1,374,086 1,066,028 Accrued investment income 991,701 2,097,018 Contributions receivable - split-interest agreements 2,958,238 2,626,158 Property and equipment, net 317,700 344,005 Other assets 319,328 860,688 Total Assets $ 922,682,005 $ 810,709,993 LIABILITIES AND NET ASSETS Liabilities Grants payable $ 23,571,625 $ 22,946,041 Annuity liability 3,036,082 2,931,811 Agency endowments 3,136,354 2,757,181 Other liabilities 241,621 206,756 Total liabilities 29,985,682 28,841,789 Net Assets Unrestricted net assets 27,862,364 23,275,787 Temporarily restricted net assets 864,833,959 758,592,417 Total net assets 892,696,323 781,868,204 Total Liabilities and Net Assets $ 922,682,005 $ 810,709,993 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, 2013 AND 2012 2013 2012 Temporarily Temporarily Unrestricted Restricted Total Unrestricted Restricted Total Revenues, Gains and Other Support Donations and bequests $ - $ 10,310,277 $ 10,310,277 $ - $ 18,821,029 $ 18,821,029 Investment income, net of investment and trustees fees of $794,458 in 2013 and $690,832 in 2012 761,831 14,427,144 15,188,975 485,959 12,108,471 12,594,430 Change in value of split-interest agreements and other assets 42,471 296,395 338,866 (56,222) 885,141 828,919 Net assets released from restrictions 37,372,484 (37,372,484) - 34,535,945 (34,535,945) - Other revenues 490,739 373,358 864,097 136,137 311,385 447,522 Total revenues, gains and other support 38,667,525 (11,965,310) 26,702,215 35,101,819 (2,409,919) 32,691,900 Expenses Program expenses: Grants authorized, net 29,385,934 - 29,385,934 27,095,572 - 27,095,572 Related program activities and Foundation administered projects 2,582,375 - 2,582,375 2,423,497 - 2,423,497 Transfers out 181,710 - 181,710 152,789 - 152,789 Management and general: Operating expenses 6,974,114 - 6,974,114 6,080,440 - 6,080,440 Total expenses 39,124,133 - 39,124,133 35,752,298 - 35,752,298 Decrease in Net Assets Before Realized and Unrealized Appreciation on Investments and Other Assets (456,608) (11,965,310) (12,421,918) (650,479) (2,409,919) (3,060,398) Realized and Unrealized Appreciation on Investments and Other Assets, Net of Investment and Trustees Fees of $3,629,357 in 2013 and $3,088,514 in 2012 5,043,185 118,206,852 123,250,037 3,480,408 85,333,033 88,813,441 Increase in Net Assets 4,586,577 106,241,542 110,828,119 2,829,929 82,923,114 85,753,043 Net Assets - Beginning of Year 23,275,787 758,592,417 781,868,204 20,445,858 675,669,303 696,115,161 Net Assets - End of Year $ 27,862,364 $ 864,833,959 $ 892,696,323 $ 23,275,787 $ 758,592,417 $ 781,868,204 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, 2013 AND 2012 2013 2012 Cash Flows from Operating Activities Increase in net assets $ 110,828,119 $ 85,753,043 Adjustments to reconcile increase in net assets to net cash used in operating activities: Depreciation expense 72,332 44,724 Realized and unrealized appreciation of investments and other assets (123,250,037) (88,813,441) (Increase) decrease in operating assets: Accrued investment income 1,105,317 255,864 Contributions receivable - split-interest agreements (1,125,370) (208,015) Other assets 577,043 (616,290) Increase (decrease) in operating liabilities: Grants payable 625,585 (2,744,816) Annuity liability 104,271 (210,195) Agency endowments 379,172 192,541 Other liabilities 34,865 33,428 Net cash used in operating activities (10,648,703) (6,313,157) Cash Flows from Investing Activities Purchases of investments (342,208,829) (251,194,215) Proceeds from sales of investments 353,211,617 257,792,362 Purchases of property and equipment (46,027) (254,713) Net cash provided by investing activities 10,956,761 6,343,434 Net Increase in Cash 308,058 30,277 Cash - Beginning of Year 1,066,028 1,035,751 Cash - End of Year $ 1,374,086 $ 1,066,028 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.