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Audited Financial JEWISH FAMILY SERVICE OF SAN DIEGO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2013 AND 2012 & L& C Leaf Cole, LLP Certified Public Accountants JEWISH FAMILY SERVICE OF SAN DIEGO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2013 AND 2012 TABLE OF CONTENTS Page Independent Auditor’s Report 1 - 2 Consolidated Statements of Financial Position 3 - 4 Consolidated Statements of Activities 5 - 6 Consolidated Statement of Functional Expenses - 2013 7 - 8 Consolidated Statement of Functional Expenses - 2012 9 - 10 Consolidated Statements of Cash Flows 11 - 12 Notes to Consolidated Financial Statements 13 - 32 Supplementary Information: 2013: Supplementary Consolidating Schedule of Financial Position 33 - 34 Supplementary Consolidating Schedule of Activities 35 - 36 Supplementary Schedule of Functional Expenses - Jewish Family Service 37 Supplementary Schedule of Function Expenses - Charitable Adult Rides & Services, Inc. 38 2012: Supplementary Consolidating Schedule of Financial Position 39 - 40 Supplementary Consolidating Schedule of Activities 41 - 42 Supplementary Schedule of Functional Expenses - Jewish Family Service 43 Supplementary Schedule of Function Expenses - Charitable Adult Rides & Services, Inc. 44 i Steven W. Northcote, C.P.A. Michael S. Schreibman, C.P.A. Michael J. Zizzi, C.P.A. Julie A. Firl, C.P.A. & Nicholas M. Gines, C.P.A. Members L&C Leaf Cole, LLP American Institute of Certified Public Accountants Certified Public Accountants California Society of Certified Public Accountants A Partnership of Professional Corporations Independent Auditor’s Report To the Board of Directors Jewish Family Service of San Diego San Diego, California Report on the Consolidated Financial Statements We have audited the accompanying consolidated financial statements of Jewish Family Service of San Diego, which comprise the consolidated statements of financial position as of June 30, 2013 and 2012, and the related consolidated statements of activities, functional expenses and cash flows for the years then ended, and the related notes to the consolidated financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these consolidated 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. Auditor's Responsibility Our responsibility is to express an opinion on these consolidated 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 consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated 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 consolidated 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 consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 1 2810 Camino Del Rio South, Suite 200, San Diego, California 92108-3820 619.294.7200, 619.294.7077 fax, www.leaf-col e.com , l eaf col e@l eaf -cole.com To the Board of Directors Page 2 Jewish Family Service of San Diego Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Jewish Family Service of San Diego as of June 30, 2013 and 2012, and the changes in their net assets and their 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 consolidated financial statements as a whole. The accompanying supplementary information is presented for purposes of additional analysis and is not a required part of the consolidated 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 consolidated financial statements. The information has been subjected to the auditing procedures applied in the audit 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 consolidated financial statements or to the consolidated 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 consolidated financial statements as a whole. San Diego, California January 29, 2014 2 JEWISH FAMILY SERVICE OF SAN DIEGO CONSOLIDATED STATEMENTS OF FINANCIAL POSITION JUNE 30, 2013 AND 2012 ASSETS 2013 2012 Current Assets: (Notes 1, 3, 4 and 12) Cash and cash equivalents $ 4,107,248 $ 2,423,900 Accounts receivable, net 756,327 760,834 Grants and contracts receivable 1,378,287 1,025,717 HFLA loans receivable, net 47,998 59,539 Other loans receivable, net 14,526 15,022 Prepaid expenses and other assets 245,386 123,185 Unconditional promises to give, net 1,891,370 1,157,658 Total Current Assets 8,441,142 5,565,855 Noncurrent Assets: (Notes 1, 2, 4, 5, 6, 7, 8, 9 and 12) Other loans receivable, net 43,659 53,884 Unconditional promises to give, net 3,747,397 341,150 Investments 10,977,089 16,716,951 Deposits 89,232 135,555 Land, buildings and equipment, net 10,155,795 7,062,023 Beneficial interests in endowment funds 6,698,962 872,691 Total Noncurrent Assets 31,712,134 25,182,254 TOTAL ASSETS $ 40,153,276 $ 30,748,109 The accompanying notes are an integral part of the consolidated financial statements. 3 JEWISH FAMILY SERVICE OF SAN DIEGO CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (CONTINUED) JUNE 30, 2013 AND 2012 LIABILITIES AND NET ASSETS 2013 2012 Current Liabilities: (Note 1) Accounts payable $ 589,181 $ 429,044 Accrued expenses 2,256,270 2,094,533 Unearned revenue 313,580 394,817 Total Current Liabilities 3,159,031 2,918,394 Noncurrent Liabilities: (Notes 8 and 9) Note payable 1,600,000 - Deferred compensation 312,865 306,517 Total Noncurrent Liabilities 1,912,865 306,517 Total Liabilities 5,071,896 3,224,911 Commitments (Note 13) Net Assets: (Notes 1, 10 and 11) Unrestricted 18,690,717 17,304,372 Temporarily restricted 8,812,271 7,920,713 Permanently restricted 7,578,392 2,298,113 Total Net Assets 35,081,380 27,523,198 TOTAL LIABILITIES AND NET ASSETS $ 40,153,276 $ 30,748,109 The accompanying notes are an integral part of the consolidated financial statements. 4 JEWISH FAMILY SERVICE OF SAN DIEGO CONSOLIDATED STATEMENTS OF ACTIVITIES FOR THE YEARS ENDED JUNE 30, 2012 AND 2011 2013 2012 Unrestricted Net Assets: Support and Revenues: Grants and contracts $ 8,898,391 $ 9,045,211 Contributions 5,452,513 3,171,978 Charitable auto sales and fees 5,240,624 5,379,736 Program revenue 1,357,180 1,014,287 Fees and other revenue 139,624 165,861 Gain/(loss) on sale of land, buildings and equipment 4,305 (22,760) Investment income 541,426 (182,482) Net assets released from restrictions 3,014,925 1,186,323 Total Support and Revenues 24,648,988 19,758,154 Expenses: Program Services: Jewish Family Service of San Diego 14,497,852 14,142,762 Charitable Auto Resources, Inc. 1,121,704 1,947,501 Charitable Adult Rides & Services, Inc. 1,162,647 260,549 Total Program Services 16,782,203 16,350,812 Supporting Services: General and administrative 1,379,745 773,960 Fundraising 2,530,213 1,223,931 Total Supporting Services 3,909,958 1,997,891 Total Expenses 20,692,161 18,348,703 Change in Unrestricted Net Assets Before Income Taxes and 3,956,827 1,409,451 Transfer of Net Assets Provision for Income Taxes 142,407 866,757 Transfer of Net Assets (Note 7) (2,428,075) - Change in Unrestricted Net Assets 1,386,345 542,694 (Continued) The accompanying notes are an integral part of the consolidated financial statements. 5 JEWISH FAMILY SERVICE OF SAN DIEGO CONSOLIDATED STATEMENTS OF ACTIVITIES (CONTINUED) FOR THE YEARS ENDED JUNE 30, 2013 AND 2012 2013 2012 Temporarily Restricted Net Assets: Contributions $ 5,524,641 $ 3,101,745 Investment income (loss) 402,508 (71,535) Transfer of net assets (Note 7) (2,034,146) - Net assets released from restrictions (3,001,445) (1,161,624) Change in Temporarily Restricted Assets 891,558 1,868,586 Permanently Restricted Net Assets: Contributions 530,805 410,422 Investment income (loss) 300,733 (47,295) Distributions (13,480) (24,699) Transfer of net assets (Note 7) 4,462,221 - Change in Permanently Restricted Net Assets 5,280,279 338,428 Change in Net Assets 7,558,182 2,749,708 Net Assets at Beginning of Year 27,523,198 24,773,490 NET ASSETS AT END OF YEAR $ 35,081,380 $ 27,523,198 The accompanying notes are an integral part of the consolidated financial statements.
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