SAFE HORIZON, INC. Financial Statements (Together with Independent Auditors' Report) Years Ended June 30, 2019 and 2018
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SAFE HORIZON, INC. Financial Statements (Together with Independent Auditors’ Report) Years Ended June 30, 2019 and 2018 SAFE HORIZON, INC. FINANCIAL STATEMENTS (Together with Independent Auditors' Report) YEARS ENDED JUNE 30, 2019 AND 2018 TABLE OF CONTENTS Page Independent Auditors' Report ............................................................................................................................... 1 Statements of Financial Position .......................................................................................................................... 2 Statements of Activities ....................................................................................................................................... 3 Statements of Functional Expenses ................................................................................................................ 4-5 Statements of Cash Flows ................................................................................................................................... 6 Notes to Financial Statements ....................................................................................................................... 7-16 Marks Paneth LLP 685 Third Avenue New York, NY 10017 P 212.503.8800 F 212.370.3759 markspaneth.com INDEPENDENT AUDITORS' REPORT The Board of Directors Safe Horizon, Inc. We have audited the accompanying financial statements of Safe Horizon, Inc. (“Safe Horizon”), which comprise the statements of financial position as of June 30, 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 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. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Safe Horizon as of June 30, 2019 and 2018, 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. Emphasis of Matter As discussed in Note 2 to the financial statements, during the year ended June 30, 2019, Safe Horizon adopted Accounting Standards Update (ASU) 2016-14, Not-for-Profit Entities (Topic 958) – Presentation of Financial Statements of Not-for-Profit Entities. Our opinion is not modified with respect to this matter. New York, NY December 13, 2019 SAFE HORIZON, INC. STATEMENTS OF FINANCIAL POSITION AS OF JUNE 30, 2019 AND 2018 2019 2018 ASSETS Cash and cash equivalents (Notes 2B and 16)$ 4,407,696 $ 5, 294,327 Grants receivable (Notes 2E, 2J and 4) 14,873,227 13,055,759 Grants receivable - DoVE (Notes 2E, 2J and 4) 8,730,466 301,076 Contributions receivable, net (Notes 2D, 2E and 5) 3,073,031 2,658,721 Investments (Notes 2F, 2G and 6) 13,622,469 12,778,802 Prepaid expenses and other assets 1,107,649 925,137 Restricted cash - Domestic Violence Empowerment Program ("DoVE") (Notes 2C and 16) - 4,607,973 Restricted cash - restitution payable (Notes 2C, 7 and 16) 6,661,260 7,476,117 Property and equipment, net (Notes 2I and 8) 4,502,314 4,455,203 Beneficial interest in perpetual trusts (Notes 2H and 11) 687,178 682,603 TOTAL ASSETS $ 57,665,290 $ 52,235,718 LIABILITIES Accounts payable and accrued expenses (Notes 2E and 2L)$ 6,828,125 $ 6,703,268 Accounts payable and accrued expenses - DoVE (Notes 2E and 2L) 8,508,470 4,607,973 Due to grantor (Note 2J) 288,894 141,051 Restitution payable (Note 7) 6,661,260 7,476,117 TOTAL LIABILITIES 22,286,749 18,928,409 COMMITMENTS AND CONTINGENCIES (Note 15) NET ASSETS (Notes 2C, 11 and 12) Without donor restrictions 30,371,535 28,676,689 With donor restrictions (Notes 11 and 12) 5,007,006 4,630,620 TOTAL NET ASSETS 35,378,541 33,307,309 TOTAL LIABILITIES AND NET ASSETS $ 57,665,290 $ 52,235,718 The accompanying notes are an integral part of these financial statements. - 2 - SAFE HORIZON, INC. STATEMENTS OF ACTIVITIES FOR THE YEARS ENDED JUNE 30, 2019 AND 2018 Year Ended June 30, 2019 Year Ended June 30, 2018 Without With Donor Total Without With Donor Total Donor Restrictions Restrictions 2019 Donor Restrictions Restrictions 2018 SUPPORT AND REVENUE: Grants income $ 72,999,147 $ - $ 72,999,147 $ 65,211,289 $ - $ 65,211,289 Contributions 1,905,801 4,014,666 5,920,467 1,678,068 5,099,549 6,777,617 In-kind contributions (Notes 2M and 10) 2,958,669 - 2,958,669 2,769,417 - 2,769,417 Special events (net of direct expenses of $201,525 and $186,781 in 2019 and 2018, respectively) 904,203 - 904,203 1,294,254 - 1,294,254 Investment income, net (Notes 2F and 6) 836,288 7,471 843,759 398,217 5,061 403,278 Fee income (Note 2K) 1,887,039 - 1,887,039 1,754,741 - 1,754,741 Gain on beneficial interest in perpetual trust (Note 2H) - 4,575 4,575 - 27,327 27,327 Miscellaneous income 355,962 - 355,962 472,192 - 472,192 Net assets released from restrictions (Note 11) 3,650,326 (3,650,326) - 3,205,701 (3,205,701) - TOTAL SUPPORT AND REVENUE 85,497,435 376,386 85,873,821 76,783,879 1,926,236 78,710,115 EXPENSES: (Note 2N) Program Services: Domestic violence and hotline 32,544,677 - 32,544,677 28,565,640 - 28,565,640 Community and criminal justice 25,672,130 - 25,672,130 20,866,232 - 20,866,232 Child, adolescent and mental health treatment 14,499,888 -14,499,888 13,204,438 -13,204,438 72,716,695 -72,716,695 62,636,310 -62,636,310 Supporting Services: Management and general 9,133,403 - 9,133,403 9,024,182 - 9,024,182 Fundraising 1,952,491 -1,952,491 2,012,741 -2,012,741 11,085,894 -11,085,894 11,036,923 -11,036,923 TOTAL EXPENSES 83,802,589 -83,802,589 73,673,233 -73,673,233 CHANGE IN NET ASSETS 1,694,846 376,386 2,071,232 3,110,646 1,926,236 5,036,882 Net assets - Beginning of year 28,676,689 4,630,620 33,307,309 25,566,043 2,704,384 28,270,427 NET ASSETS - END OF YEAR $ 30,371,535 $ 5,007,006 $ 35,378,541 $ 28,676,689 $ 4,630,620 $ 33,307,309 The accompanying notes are an integral part of these financial statements. - 3 - SAFE HORIZON, INC. STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED JUNE 30, 2019 (With Comparative Totals for 2018) For the Year Ended June 30, 2019 Program Services Supporting Services Domestic Community Child, Adolescent Total Total Violence and Criminal and Mental Health Program Management Supporting Total Total and Hotline Justice Treatment Services and General Fundraising Services 2019 2018 Salaries $ 10,770,453 $ 16,968,269 $ 6,786,637 $ 34,525,359 $ 5,630,230 $ 934,546 $ 6,564,776 $ 41,090,135 $ 35,906,639 Payroll taxes and employee benefits (Note 13) 2,786,182 4,232,035 1,684,828 8,703,045 1,411,206 235,810 1,647,016 10,350,061 8,522,304 Total Salaries and Related Costs 13,556,635 21,200,304 8,471,465 43,228,404 7,041,436 1,170,356 8,211,792 51,440,196 44,428,943 Professional fees (Notes 2M and 10) 1,016,459 394,542 1,091,052 2,502,053 335,316 213,332 548,648 3,050,701 2,442,642 Client assistance 642,018 252,835 270,772 1,165,625 - - - 1,165,625 1,056,883 Contracted Domestic Violence Empowerment Services 7,967,966 - - 7,967,966 - - - 7,967,966 7,066,899 Program materials and other publications 73,859 146,922 159,841 380,622 - - - 380,622 278,799 Staff development and meetings 92,213 130,777 112,022 335,012 162,152 354,629 516,781 851,793 827,313 Insurance 145,684 221,722 92,417 459,823 73,562 12,421 85,983 545,806 535,470 Occupancy (Notes 2L, 10, 14 and 15) 6,867,294 1,430,042 3,096,325 11,393,661 460,730 69,851 530,581 11,924,242 11,271,360 Furniture and equipment 210,011 163,215 202,270 575,496 21,778 5,306 27,084 602,580 449,278 Supplies, photocopying and delivery 63,731 146,992 50,927 261,650 65,993 31,197 97,190 358,840 313,338 Equipment rentals and maintenance