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Emerald Necklace Conservancy, Inc. Report on Financial Statements Years EMERALD NECKLACE CONSERVANCY, INC. FINANCIAL STATEMENTS with INDEPENDENT AUDITORS’ REPORT YEARS ENDED SEPTEMBER 30, 2020 AND 2019 EMERALD NECKLACE CONSERVANCY, INC. REPORT ON FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2020 AND 2019 Mission Statement To restore and improve the Emerald Necklace for all. www.emeraldnecklace.org EMERALD NECKLACE CONSERVANCY, INC. REPORT ON FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2020 AND 2019 C O N T E N T S Pages Independent Auditors’ Report...................................................................................................................................... 1 Statement of Financial Position as of September 30, 2020.......................................................................................... 2 (With Summarized Comparative Totals for 2019) Statement of Financial Position as of September 30, 2019.......................................................................................... 3 Statement of Activities for the Year Ended September 30, 2020................................................................................ 4 (With Summarized Comparative Totals for 2019) Statement of Activities for the Year Ended September 30, 2019................................................................................ 5 Statement of Functional Expenses for the Year Ended September 30, 2020.............................................................. 6 - 7 Statement of Functional Expenses for the Year Ended September 30, 2019.............................................................. 8 - 9 Statements of Cash Flows for the Years Ended September 30, 2020 and 2019.......................................................... 10 Notes to Financial Statements...................................................................................................................................... 11 - 32 INDEPENDENT AUDITORS’ REPORT To the Board of Directors Emerald Necklace Conservancy, Inc. Boston, Massachusetts We have audited the accompanying financial statements of Emerald Necklace Conservancy, Inc. (a Massachusetts nonprofit organization), which comprise the statements of financial position as of September 30, 2020 and 2019, 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 of 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 Organization’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 Organization’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. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Emerald Necklace Conservancy, Inc. as of September 30, 2020 and 2019 and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Westborough, Massachusetts February 23, 2021 1 EMERALD NECKLACE CONSERVANCY, INC. STATEMENT OF FINANCIAL POSITION AS OF SEPTEMBER 30, 2020 (With Summarized Comparative Totals for 2019) GENERAL PROGRAMS/ SHATTUCK OLMSTED TREE 2020 2019 ASSETS OPERATIONS VISITOR CENTER LIFF FUND SOCIETY TOTAL TOTAL CURRENT ASSETS: Cash $ 957,289 $ - $ 109,049 $ 116,866 $ 1,183,204 $ 874,744 Pledges Receivable 3,000 - - - 3,000 22,061 Curley House Receivable 64,270 - - - 64,270 - Prepaid Expenses 81,084 - - - 81,084 36,171 Short-Term Investments 5,091 - - 545,188 550,279 900,238 Total Current Assets 1,110,734 - 109,049 662,054 1,881,837 1,833,214 NET PROPERTY AND EQUIPMENT - 685,810 - - 685,810 708,483 NON-CURRENT ASSETS: Pledges Receivable, Non-Current - - - - - 3,000 Curley House Receivable, Non-Current 192,810 - - - 192,810 - Long-Term Investments - - 3,603,488 - 3,603,488 3,221,470 Shattuck Endowment Investments - 834,560 - - 834,560 754,542 Total Non-Current Assets 192,810 834,560 3,603,488 - 4,630,858 3,979,012 TOTAL ASSETS $ 1,303,544 $ 1,520,370 $ 3,712,537 $ 662,054 $ 7,198,505 $ 6,520,709 LIABILITIES AND NET ASSETS CURRENT LIABILITIES: Accounts Payable and Accrued Expenses $ 88,810 $ - $ 2,404 $ 87,390 $ 178,604 $ 175,254 Accrued Payroll and Related Costs 20,734 - - - 20,734 47,369 Total Current Liabilities 109,544 - 2,404 87,390 199,338 222,623 NON-CURRENT LIABILITIES: Contractual Commitments - - - - - 48,750 Total Non-Current Liabilities - - - - - 48,750 TOTAL LIABILITIES 109,544 - 2,404 87,390 199,338 271,373 NET ASSETS: Net Assets Without Donor Restrictions: Undesignated 495,649 685,810 - - 1,181,459 739,645 Board Designated - - 3,677,308 - 3,677,308 3,331,190 Total Net Assets Without Donor Restrictions 495,649 685,810 3,677,308 - 4,858,767 4,070,835 Net Assets With Donor Restrictions 698,351 834,560 32,825 574,664 2,140,400 2,178,501 Total Net Assets 1,194,000 1,520,370 3,710,133 574,664 6,999,167 6,249,336 TOTAL LIABILITIES AND NET ASSETS $ 1,303,544 $ 1,520,370 $ 3,712,537 $ 662,054 $ 7,198,505 $ 6,520,709 The Accompanying Notes are an Integral Part of these Financial Statements....Page 2 EMERALD NECKLACE CONSERVANCY, INC. STATEMENT OF FINANCIAL POSITION AS OF SEPTEMBER 30, 2019 GENERAL PROGRAMS/ SHATTUCK OLMSTED TREE ASSETS OPERATIONS VISITOR CENTER LIFF FUND SOCIETY TOTAL CURRENT ASSETS: Cash $ 327,199 $ - $ 129,750 $ 417,795 $ 874,744 Pledges Receivable 13,361 - 8,700 - 22,061 Prepaid Expenses 36,171 - - - 36,171 Short-Term Investments 5,598 - - 894,640 900,238 Total Current Assets 382,329 - 138,450 1,312,435 1,833,214 NET PROPERTY AND EQUIPMENT - 708,483 - - 708,483 NON-CURRENT ASSETS: Pledges Receivable, Non-Current 3,000 - - - 3,000 Long-Term Investments - - 3,221,470 - 3,221,470 Shattuck Endowment Investments - 754,542 - - 754,542 Total Non-Current Assets 3,000 754,542 3,221,470 - 3,979,012 TOTAL ASSETS $ 385,329 $ 1,463,025 $ 3,359,920 $ 1,312,435 $ 6,520,709 LIABILITIES AND NET ASSETS CURRENT LIABILITIES: Accounts Payable and Accrued Expenses $ 120,689 $ - $ 28,730 $ 25,835 $ 175,254 Accrued Payroll and Related Costs 47,369 - - - 47,369 Total Current Liabilities 168,058 - 28,730 25,835 222,623 NON-CURRENT LIABILITIES: Contractual Commitments - - - 48,750 48,750 Total Non-Current Liabilities - - - 48,750 48,750 TOTAL LIABILITIES 168,058 - 28,730 74,585 271,373 NET ASSETS: Net Assets Without Donor Restrictions: Undesignated 31,162 708,483 - - 739,645 Board Designated - - 3,331,190 - 3,331,190 Total Net Assets Without Donor Restrictions 31,162 708,483 3,331,190 - 4,070,835 Net Assets With Donor Restrictions 186,109 754,542 - 1,237,850 2,178,501 Total Net Assets 217,271 1,463,025 3,331,190 1,237,850 6,249,336 TOTAL LIABILITIES AND NET ASSETS $ 385,329 $ 1,463,025 $ 3,359,920 $ 1,312,435 $ 6,520,709 The Accompanying Notes are an Integral Part of these Financial Statements....Page 3 EMERALD NECKLACE CONSERVANCY, INC. STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2020 (With Summarized Comparative Totals for 2019) WITHOUT DONOR RESTRICTIONS BOARD TOTAL DESIGNATED WITHOUT DONOR WITH DONOR TOTAL ACTIVITIES SUPPORT, REVENUES AND RECLASSIFICATIONS: UNDESIGNATED LIFF FUND RESTRICTIONS RESTRICTIONS 2020 2019 Public Support and Event Revenues: Gifts, Grants and Contributions $ 1,100,697 $ 72,800 $ 1,173,497 $ 305,008 $ 1,478,505 $ 1,434,357 Paycheck Protection Program - - - 154,000 154,000 - Special Event Proceeds (Note 9) 39,800 - 39,800 - 39,800 1,045,515 Less: Cost of Direct Benefits to Donors - - - - - (506,180) Curley House Donated Facilities (Note 13) 64,270 - 64,270 257,080 321,350 - Donated Goods and Services 42,106 - 42,106 - 42,106 40,728 Other Revenues: Fiscally Sponsored Projects - - - 294,516 294,516 195,617 Investment Return 1,341 480,860 482,201 92,461 574,662 79,938 Reclassification of Net Assets: Net Assets Released from Restrictions 1,348,708 (207,542) 1,141,166 (1,141,166) - - TOTAL SUPPORT, REVENUES AND
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