Financial Statements with Independent Auditors' Report
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JOINT DEVELOPMENT ASSOCIATES INTERNATIONAL, INC. Financial Statements With Independent Auditors' Report December 31, 2019 and 2018 JOINT DEVELOPMENT ASSOCIATES INTERNATIONAL, INC. Table of Contents Page Independent Auditors' Report 1 Financial Statements Statements of Financial Position 3 Statements of Activities 4 Statement of Functional Expenses–2019 5 Statement of Functional Expenses–2018 6 Statements of Cash Flows 7 Notes to Financial Statements 8 INDEPENDENT AUDITORS’ REPORT Board of Directors Joint Development Associates International, Inc. Grand Junction, Colorado We have audited the accompanying financial statements of Joint Development Associates International, Inc. which comprise the statements of financial position as of December 31, 2019 and 2018, 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. 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 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. 2435 Research Parkway, Suite 200 Colorado Springs, CO 80920 719.528.6225 capincrouse.com Board of Directors Joint Development Associates International, Inc. Grand Junction, Colorado Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Joint Development Associates International, Inc., as of December 31, 2019 and 2018 and the changes in its net assets and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter Joint Development Associates International, Inc., has adopted Financial Accounting Standards Board Accounting Standards Update No. 2018-08, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made , as described in Note 2. This has had a material effect on the presentation of the December 31, 2019 financial statements. Our opinion is not modified with respect to this matter. Colorado Springs, Colorado April 15, 2020 -2- JOINT DEVELOPMENT ASSOCIATES INTERNATIONAL, INC. Statements of Financial Position December 31, 2019 2018 ASSETS: Current assets: Cash and cash equivalents $ 240,966 $ 531,331 Accounts receivable 24,678 122,166 Prepaid expenses 7,141 23,846 Total Assets $ 272,785 $ 677,343 LIABILITIES AND NET ASSETS: Current liabilities: Grant payable $ - $ 239,457 Accounts payable and accrued expenses 25,125 83,242 Line of credit 94,500 35,000 119,625 357,699 Net assets: Without donor restrictions 39,021 269,074 With donor restrictions 114,139 50,570 153,160 319,644 Total Liabilities and Net Assets $ 272,785 $ 677,343 See notes to financial statements -3- JOINT DEVELOPMENT ASSOCIATES INTERNATIONAL, INC. Statements of Activities Year Ended December 31, 2019 2018 Without Donor With Donor Without Donor With Donor Restrictions Restrictions Total Restrictions Restrictions Total SUPPORT AND REVENUE: Federal contract and grant revenue $ 680,836 $ 1,473,694 $ 2,154,530 $ 1,677,466 $ - $ 1,677,466 Contributions and donations 73,570 147,336 220,906 45,848 179,097 224,945 Miscellaneous revenue 5,556 - 5,556 4,415 - 4,415 Total Support and Revenue 759,962 1,621,030 2,380,992 1,727,729 179,097 1,906,826 NET ASSETS RELEASED: Purpose restrictions 1,557,461 (1,557,461) - 160,514 (160,514) - EXPENSES: Program services: Rehabilitation 1,473,694 - 1,473,694 184,722 - 184,722 Agriculture 481,772 - 481,772 1,167,218 - 1,167,218 Water development 350,169 - 350,169 207,415 - 207,415 Project development 8,911 - 8,911 57,375 - 57,375 2,314,546 - 2,314,546 1,616,730 - 1,616,730 Supporting activities: General and administrative 228,077 - 228,077 264,913 - 264,913 Fundraising 4,853 - 4,853 4,854 - 4,854 Total Expenses 2,547,476 - 2,547,476 1,886,497 - 1,886,497 Change in Net Assets (230,053) 63,569 (166,484) 1,746 18,583 20,329 Net Assets, Beginning of Year 269,074 50,570 319,644 267,328 31,987 299,315 Net Assets, End of Year $ 39,021 $ 114,139 $ 153,160 $ 269,074 $ 50,570 $ 319,644 See notes to financial statements -4- JOINT DEVELOPMENT ASSOCIATES INTERNATIONAL, INC. Statement of Functional Expenses Year Ended December 31, 2019 Program Services: Supporting Activities: Water Project Total Management Rehabilitation Agriculture Development Development Program and General Fundraising Total Salaries and related expenses $ 331,274 $ 385,049 $ 218,953 $ 8,911 $ 944,187 $ 147,783 $ 4,853 $ 1,096,823 Equipment and materials 590,636 793 63,349 - 654,778 1,038 - 655,816 Office and occupancy 444,193 36,735 25,089 - 506,017 61,811 - 567,828 Travel and transport 107,591 59,195 42,778 - 209,564 17,445 - 227,009 $ 1,473,694 $ 481,772 $ 350,169 $ 8,911 $ 2,314,546 $ 228,077 $ 4,853 $ 2,547,476 -5- JOINT DEVELOPMENT ASSOCIATES INTERNATIONAL, INC. Statement of Functional Expenses Year Ended December 31, 2018 Program Services: Supporting Activities: Water Project Total Management Rehabilitation Agriculture Development Development Program and General Fundraising Total Salaries and related expenses $ 86,253 $ 880,646 $ 133,564 $ 39,681 $ 1,140,144 $ 209,629 $ 4,854 $ 1,354,627 Equipment and materials 25,847 4,123 36,230 63 66,263 1,850 - 68,113 Office and occupancy 10,258 121,424 17,103 5,945 154,730 39,703 - 194,433 Travel and transport 62,364 161,025 20,518 11,686 255,593 13,731 - 269,324 $ 184,722 $ 1,167,218 $ 207,415 $ 57,375 $ 1,616,730 $ 264,913 $ 4,854 $ 1,886,497 -6- JOINT DEVELOPMENT ASSOCIATES INTERNATIONAL, INC. Statements of Cash Flows Year Ended December 31, 2019 2018 CASH FLOWS FROM OPERATING ACTIVITIES: Change in net assets $ (166,484) $ 20,329 Adjustments to reconcile change in net assets to net cash provided (used) by operating activities: Depreciation - 342 Change in operating assets and liabilities: Grant payable (239,457) 239,457 Accounts receivable 97,488 5,373 Prepaid expenses 16,705 8,127 Accounts payable and accrued expenses (58,117) 3,134 Net Cash Provided (Used) by Operating Activities (349,865) 276,762 CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from lines of credit 987,500 903,904 Payments on lines of credit (928,000) (933,904) Net Cash Provided (Used) by Financing Activities 59,500 (30,000) Change in Cash and Cash Equivalents (290,365) 246,762 Cash and Cash Equivalents, Beginning of Year 531,331 284,569 Cash and Cash Equivalents, End of Year $ 240,966 $ 531,331 SUPPLEMENTAL DISCLOSURE: Cash paid for interest $ 5,544 $ 4,766 See notes to financial statements -7- JOINT DEVELOPMENT ASSOCIATES INTERNATIONAL, INC. Notes to Financial Statements December 31, 2019 and 2018 1. NATURE OF ORGANIZATION: Joint Development Associates International, Inc. (JDA) is dedicated to assist in the transformational development of local communities by helping initiate and implement projects in areas of agriculture development, clean water, poverty alleviation, infrastructure development, community health education, and emergency aid and relief. JDA believes each person has unique creative abilities to make a difference in their lives, their families, their communities, and their nation. JDA seeks to empower these individuals and communities to tap into this creative potential by facilitating community projects through organizational and technical support. Certain nonfinancial information in Note 1 is being presented by management. This nonfinancial information has not been subject to audit procedures and therefore does not fall within the scope of the audit opinion to these financial statements. The following programs provide an overview of JDA’s recent involvement in northern Afghanistan and Kurdistan during 2019: Agriculture Development Agriculture is the main livelihood for about 75% of the population in Afghanistan. Growth of the agriculture sector is essential for the nation’s food security and a major economic driver for the country, therefore, rehabilitation of the agricultural sector is vital for Afghanistan’s recovery. In 2014, the Regional Agricultural Development Program North (RADP-North), funded by USAID, was launched to assist the country in its efforts to improve food and economic security for rural Afghan farmers. The goal was to restore Afghanistan’s wheat sector, diversify agriculture and diets, increase farm revenues by introducing high-value crops, and strengthen the livestock sector.