Defined Benefit Pension Plan of Trillium Family Services, Inc. (Dba Parry Center for Children)

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Defined Benefit Pension Plan of Trillium Family Services, Inc. (Dba Parry Center for Children) GaryMcGee & Co. LLP CERTIFIED PUBLIC ACCOUNTANTS Defined Benefit Pension Plan of Trillium Family Services, Inc. (dba Parry Center for Children) Financial Statements and Other Information as of and for the Year Ended June 30, 2016 and Report of Independent Accountants T H E A L L I A N C E TABLE OF CONTENTS Page Report of Independent Accountants 3 Financial Statements: Statement of Financial Position 5 Statement of Activities 6 Statement of Cash Flows 7 Notes to Financial Statements 8 Other Information: Governing Board and Management 18 Inquiries and Other Information 19 GaryMcGee & Co. LLP CERTIFIED PUBLIC ACCOUNTANTS REPORT OF INDEPENDENT ACCOUNTANTS The Board of Trustees Oregon Alliance of Independent Colleges & Universities: We have audited the accompanying financial statements of the Oregon Alliance of Independent Colleges & Uni- versities (“The Alliance”), which comprise the statement of financial position as of June 30, 2016, and the related statements of activities 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; 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 audit in accordance with auditing standards generally accepted in the United States. 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 fi- nancial 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 organization’s preparation and fair presenta- tion 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 organization’s internal control. Accord- ingly, 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 posi- tion of the Oregon Alliance of Independent Colleges & Universities as of June 30, 2016, 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. 808 SW Third Avenue, Suite 700 Portland, Oregon 97204 p: 503 222 2515 f: 503 222 6401 www.garymcgee.com 3 Summarized Comparative Information We have previously audited the Oregon Alliance of Independent Colleges & Universities’ 2015 financial state- ments, and we expressed an unmodified audit opinion on those audited financial statements in our report dated September 1, 2015. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2015 is consistent, in all material respects, with the audited financial statements from which it has been derived. September 22, 2016 4 T H E A L L I A N C E STATEMENT OF FINANCIAL POSITION J U N E 3 0 , 2 0 1 6 ( W I T H C O M P A R A T I V E A M O U N T S F O R 2 0 1 5 ) 2016 2015 Assets: Cash and cash equivalents $ 657,981 647,287 Investments (notes 3 and 18) 389,978 386,198 Contributions and grants receivable (note 4) 7,500 63,964 Prepaid expenses and other assets 85,834 100,228 Equipment and furniture (note 5) 7,667 12,433 Deposits held at CASA of Oregon (note 6) 186,050 180,752 Beneficial interest in perpetual trust (notes 9 and 18) 69,870 75,405 Total assets $ 1,404,880 1,466,267 Liabilities: Accounts payable 2,530 8,609 Accrued payroll liabilities 29,560 54,468 Distributions payable (note 7) 229,150 274,100 Capital lease obligations (note 8) 1,675 2,475 Due to Reed College 74,293 129,648 Total liabilities 337,208 469,300 Net assets: Unrestricted: Available for general operations 485,578 381,594 Designated by Board (note 9) 334,426 334,426 Net investment in capital assets 5,992 9,958 Total unrestricted 825,996 725,978 Temporarily restricted (note 9) 171,806 195,584 Permanently restricted (note 9) 69,870 75,405 Total net assets 1,067,672 996,967 Commitments and contingencies (notes 16, 17 and 18) Total liabilities and net assets $ 1,404,880 1,466,267 See accompanying notes to financial statements. 5 T H E A L L I A N C E STATEMENT OF ACTIVITIES Y E A R E N D E D J U N E 3 0 , 2 0 1 6 ( W I T H C O M P A R A T I V E T O T A L S F O R 2 0 1 5 ) 2016 Temporarily Permanently Unrestricted restricted restricted Total 2015 Operating revenues, gains, and other support: Member and Affiliate assessments (note 10) $ 849,021 – – 849,021 764,164 Private contributions and grants (note 11) 311,390 473,331 – 784,721 898,293 In-kind contributions (note 12) 128,290 – – 128,290 119,234 Change in value of beneficial interest in perpetual trust (note 18) – – (5,535) (5,535) (8,202) Net appreciation in the fair value of investments 1,488 – – 1,488 – Interest and other income 3,326 – – 3,326 4,276 Total operating revenues and gains 1,293,515 473,331 (5,535) 1,761,311 1,777,765 Net assets released from restrictions for operating purposes (note 13) 497,109 (497,109) – – – Total operating revenues, gains, and other support 1,790,624 (23,778) (5,535) 1,761,311 1,777,765 Distributions and expenses (notes 14 and 15): Distributions to Members and Affiliates 927,499 – – 927,499 1,086,005 Program services: Education and outreach 131,298 – – 131,298 136,926 Public affairs and advocacy 309,219 – – 309,219 323,722 Total distributions and program services 1,368,016 – – 1,368,016 1,546,653 Supporting services: Management and general 249,279 – – 249,279 247,053 Fundraising 73,311 – – 73,311 73,509 Total supporting services 322,590 – – 322,590 320,562 Total distributions and expenses 1,690,606 – – 1,690,606 1,867,215 Increase (decrease) in net assets 100,018 (23,778) (5,535) 70,705 (89,450) Net assets at beginning of year 725,978 195,584 75,405 996,967 1,086,417 Net assets at end of year $ 825,996 171,806 69,870 1,067,672 996,967 See accompanying notes to financial statements. 6 T H E A L L I A N C E STATEMENT OF CASH FLOWS Y E A R E N D E D J U N E 3 0 , 2 0 1 6 ( W I T H C O M P A R A T I V E T O T A L S F O R 2 0 1 5 ) 2016 2015 Cash flows from operating activities: Cash received from contributors, grantors, and Member and Affiliate schools $ 1,691,798 1,739,167 Interest income received 2,870 2,490 Cash paid to Member and Affiliate schools (852,449) (786,501) Cash paid to employees and suppliers (819,201) (777,701) Net (deposits to) receipts from the Matched College Savings Program (note 6) (5,298) 67,101 Net cash provided by operating activities 17,720 244,556 Cash flows from investing activities: Capital expenditures (3,934) – Reinvested interest income (2,292) (2,129) Net cash used in investing activities (6,226) (2,129) Cash flows from financing activities: Principal payments made on capital lease obligations (800) – Net cash used in financing activities (800) – Net increase in cash and cash equivalents 10,694 242,427 Cash and cash equivalents at beginning of year 647,287 404,860 Cash and cash equivalents at end of year $ 657,981 647,287 Supplemental schedule of noncash investing and financing activities Capital assets financed through capital lease obligations (note 8) $ – 2,475 See accompanying notes to financial statements. 7 T H E A L L I A N C E NOTES TO FINANCIAL STATEMENTS Y E A R E N D E D J U N E 3 0 , 2 0 1 6 1. Organization Affiliates: • Multnomah University – Portland, Oregon The Oregon Alliance of Independent Colleges & • National University of Natural Medicine – Universities (“The Alliance”) is a nonprofit or- Portland, Oregon ganization, tax-exempt under Section 501(c)(3) of • Oregon College of Art & Craft – Portland, the Internal Revenue Code, representing Oregon’s Oregon regionally-accredited independent, nonprofit col- • Pacific Northwest College of Art – Portland, leges and universities. Oregon • The Alliance was founded in 2011 through the University of Western States – Portland, merger of two long-standing organizations, the Oregon • Oregon Independent College Foundation (formed Western Seminary – Portland, Oregon in 1950) and the Oregon Independent College As- sociation (formed in 1969).
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