Long Beach Area Council, Boy Scouts of America
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LONG BEACH AREA COUNCIL, BOY SCOUTS OF AMERICA FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2018 LONG BEACH AREA COUNCIL, BOY SCOUTS OF AMERICA FINANCIAL STATEMENTS CONTENTS As of and for the year ended December 31, 2018 Page Independent auditor’s report 1 – 2 Financial statements: Statements of financial position as of December 31, 2018 and 2017 3 Statements of activities and changes in net assets for the years ended December 31, 2018 and 2017 4 – 5 Statements of functional expenses for the years ended December 31, 2018 and 2017 6 Statements of cash flows for the years ended December 31, 2018 and 2017 7 Notes to financial statements 8 – 21 INDEPENDENT AUDITOR’S REPORT To the Board of Directors Long Beach Area Council, Boy Scouts of America Long Beach, California We have audited the accompanying statement of financial position of the Long Beach Area Council, Boy Scouts of America (the “Council”) (a California nonprofit organization) as of December 31, 2018, and the related statement of activities and changes in net assets, functional expenses, 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 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 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 opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Council as of December 31, 2018, and the changes in its net assets and its cash flows for the year then ended in accordance with the accounting principles generally accepted in the United States of America. 1 INDEPENDENT AUDITOR’S REPORT (Continued) Report on Summarized Comparative Information We have previously audited the Council’s 2017 financial statements, and our report dated May 23, 2018, expressed an unmodified opinion on those audited financial statements. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2017 is consistent, in all material respects, with the audited financial statements from which it has been derived. Long Beach, California May 21, 2019 2 LONG BEACH AREA COUNCIL, BOY SCOUTS OF AMERICA STATEMENTS OF FINANCIAL POSITION Operating Capital Endowment Prior year- As of December 31, 2018 Fund Fund Fund Total 2017 ASSETS Current assets: Cash and cash equivalents $ 102,006 $ 915,531 $ 85,481 $ 1,103,018 $ 515,121 Pledges and bequests receivable 12,500 14,000 1,878,326 1,904,826 1,268,923 Other receivables 82,142 108,263 - 190,405 103,883 Inventories 106,945 - - 106,945 91,296 Prepaid expenses and other current assets 30,637 - - 30,637 34,120 Total current assets 334,230 1,037,794 1,963,807 3,335,831 2,013,343 Long-term assets: Property and equipment, net of accumulated depreciation of $2,130,720 and $2,237,127 - 2,303,884 - 2,303,884 1,834,217 Long-term investments - - 7,249,723 7,249,723 7,597,674 Other assets - 59,750 - 59,750 13,000 Inter-fund loans (122,369) - 122,369 - - Total long-term assets (122,369) 2,363,634 7,372,092 9,613,357 9,444,891 Total assets $ 211,861 $ 3,401,428 $ 9,335,899 $ 12,949,188 $ 11,458,234 LIABILITIES AND NET ASSETS Current liabilities: Accounts payable $ 37,665 $ 22,924 $ - $ 60,589 $ 47,168 Accrued expenses and other current liabilities 26,572 24,434 70,000 121,006 87,655 Deferred revenue 20,115 - - 20,115 39,165 Custodian accounts 93,715 - - 93,715 120,544 Capital lease obligation - current - 19,993 - 19,993 19,859 Total current liabilities 178,067 67,351 70,000 315,418 314,391 Long-term debt: Notes payable - 61,406 - 61,406 83,959 Total liabilities 178,067 128,757 70,000 376,824 398,350 Commitments Net assets: Without donor restrictions (2,949) 1,816,290 - 1,813,341 1,413,780 Without donor restrictions - board designated - - 4,349,100 4,349,100 4,323,881 With donor restrictions 36,743 1,456,381 4,916,799 6,409,923 5,322,223 Total net assets 33,794 3,272,671 9,265,899 12,572,364 11,059,884 Total liabilities and net assets $ 211,861 $ 3,401,428 $ 9,335,899 $ 12,949,188 $ 11,458,234 The accompanying notes are an integral part of these financial statements 3 LONG BEACH AREA COUNCIL, BOY SCOUTS OF AMERICA STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS Operating Capital Endowment Prior year- For the year ended December 31, 2018 Fund Fund Fund Total 2017 Changes in net assets without donor restrictions Public support and revenue: Public support: Friends of Scouting $ 180,128 $ - $ - $ 180,128 $ 192,118 Special events, net of direct costs of $22,166 and $27,545 41,719 - - 41,719 77,960 Legacies and bequests - - 25,219 25,219 - Foundations, trusts, and other contributions 142,269 555,964 - 698,233 429,893 United Way - designated contributions 26 - - 26 228 Total public support 364,142 555,964 25,219 945,325 700,199 Revenue: Scout Shop sales, net of costs of goods sold of $134,702 and $147,529 89,222 - - 89,222 93,567 Product sales, net of commissions paid to units and costs of goods sold totaling $81,711 and $65,322 65,009 - - 65,009 57,833 Camping revenue 577,287 - - 577,287 598,124 Activity revenue 77,813 - - 77,813 216,956 NRCS grant revenue - 189,900 - 189,900 56,428 Miscellaneous revenue 8,429 800 - 9,229 64,305 Gain (loss) on disposal of assets - (4,264) - (4,264) 10,000 Total revenue 817,760 186,436 - 1,004,196 1,097,213 Net assets released from restrictions: Satisfaction of program restrictions 145,646 195,813 - 341,459 80,607 Appropriation from donor endowment and subsequent satisfaction of related donor restrictions 400,000 - - 400,000 400,000 Total net assets released from restriction 545,646 195,813 - 741,459 480,607 Total public support and revenue 1,727,548 938,213 25,219 2,690,980 2,278,019 Expenses: Program services 1,616,209 418,582 - 2,034,791 1,916,059 Management and general 128,006 8,354 - 136,360 133,902 Fundraising 70,838 4,177 - 75,015 82,225 Total expenses by function 1,815,053 431,113 - 2,246,166 2,132,186 Charter and national service fee 20,034 - - 20,034 19,002 Total expenses 1,835,087 431,113 - 2,266,200 2,151,188 Change in net assets without donor restrictions $ (107,539) $ 507,100 $ 25,219 $ 424,780 $ 126,831 The accompanying notes are an integral part of these financial statements 4 LONG BEACH AREA COUNCIL, BOY SCOUTS OF AMERICA STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS (CONTINUED) Operating Capital Endowment Prior year- For the year ended December 31, 2018 Fund Fund Funds Total 2017 Changes in net assets with donor restrictions Changes in net assets with time restrictions Public support: Legacies and bequests $ - $ - $ 1,901,126 $ 1,901,126 $ - Foundations, trusts, and other contributions 103,544 73,800 - 177,344 716,459 Total public support 103,544 73,800 1,901,126 2,078,470 716,459 Revenue: Interest and dividends, net of investment fees of $68,367 and $58,682 - - 213,431 213,431 153,960 Gain (loss) on investments - - (462,742) (462,742) 309,323 Interest income on note receivable - - - - 40,489 Total revenue - - (249,311) (249,311) 503,772 Net assets released from restriction (145,646) (195,813) (400,000) (741,459) (480,607) Change in net assets with donor restrictions $ (42,102) $ (122,013) $ 1,251,815 $ 1,087,700 $ 739,624 Summary of changes in net assets Net assets, beginning of year: Without donor restrictions$ 104,590 $ 1,309,190 $ - $ 1,413,780 $ 1,305,315 Without donor restrictions - board designated - - 4,323,881 4,323,881 4,305,515 With donor restrictions 78,845 1,578,394 3,664,984 5,322,223 4,582,599 183,435 2,887,584 7,988,865 11,059,884 10,193,429 Changes in net assets: Without donor restrictions (107,539) 507,100 - 399,561 108,465 Without donor restrictions - board designated - - 25,219 25,219 18,366 With donor restrictions (42,102) (122,013) 1,251,815 1,087,700 739,624 (149,641) 385,087 1,277,034