New Israel Fund and Truth to Power Foundation

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New Israel Fund and Truth to Power Foundation COMBINED FINANCIAL STATEMENTS NEW ISRAEL FUND AND TRUTH TO POWER FOUNDATION FOR THE YEAR ENDED DECEMBER 31, 2018 WITH SUMMARIZED FINANCIAL INFORMATION FOR 2017 NEW ISRAEL FUND AND TRUTH TO POWER FOUNDATION CONTENTS PAGE NO. INDEPENDENT AUDITOR'S REPORT 2 - 3 EXHIBIT A - Combined Statement of Financial Position, as of December 31, 2018, with Summarized Financial Information for 2017 4 - 5 EXHIBIT B - Combined Statement of Activities and Change in Net Assets, for the Year Ended December 31, 2018, with Summarized Financial Information for 2017 6 EXHIBIT C - Combined Statement of Functional Expenses, for the Year Ended December 31, 2018, with Summarized Financial Information for 2017 7 EXHIBIT D - Combined Statement of Cash Flows, for the Year Ended December 31, 2018, with Summarized Financial Information for 2017 8 NOTES TO COMBINED FINANCIAL STATEMENTS 9 - 21 SUPPLEMENTAL INFORMATION SCHEDULE 1 - Combining Schedule of Financial Position, as of December 31, 2018 22 - 23 SCHEDULE 2 - Combining Schedule of Activities, for the Year Ended December 31, 2018 24 SCHEDULE 3 - Combining Schedule of Change in Net Assets, for the Year Ended December 31, 2018 25 SCHEDULE 4 - Schedule of Grants, for the Year Ended December 31, 2018 26 - 33 1 INDEPENDENT AUDITOR'S REPORT To the Board of Directors New Israel Fund and Truth to Power Foundation San Francisco, California We have audited the accompanying combined financial statements of New Israel Fund (NIF) and Truth to Power Foundation (the Foundation), collectively the Organizations, which comprise the combined statement of financial position as of December 31, 2018, and the related combined statements of activities and change in net assets, functional expenses and cash flows for the year then ended, and the related notes to the combined financial statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these combined 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 combined financial statements based on our audit. We did not audit the financial activity of the New Israel Fund-Israel office (NIF - Israel), a field office located in Jerusalem, Israel, which statements reflect total assets constituting 11% of the combined total assets as of December 31, 2018, and total revenues constituting 17% of the combined total revenues for the year then ended. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the NIF - Israel office, is based solely on the report of the other auditors that was dated May 1, 2019. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the combined financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the combined financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the combined 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 combined 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 combined financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 4550 MONTGOMERY AVENUE · SUITE 650 NORTH · BETHESDA, MARYLAND 20814 (301) 951-9090 · FAX (301) 951-3570 · WWW.GRFCPA.COM ___________________________ MEMBER OF CPAMERICA INTERNATIONAL, AN AFFILIATE OF HORWATH INTERNATIONAL MEMBER OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS' PRIVATE COMPANIES PRACTICE SECTION 2 Opinion In our opinion, based on our report and the report of the other auditors, the combined financial statements referred to above present fairly, in all material respects, the combined financial position of the Organizations as of December 31, 2018, and the combined change in their net assets and their cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Report on Summarized Comparative Information We have previously audited the Organizations' 2017 financial statements, and we expressed an unmodified opinion on those audited financial statements in our report dated June 25, 2018. The financial activity of the NIF-Israel office included in those financial statements was audited by other auditors, whose report dated May 20, 2018, was furnished to us, and our opinion, insofar as it related to the amounts included for the NIF-Israel office, was based solely on the report of the other auditors. 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. Other Matter Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The Combining Schedule of Financial Position on pages 22 - 23, Combining Schedule of Activities on page 24, Combining Schedule of Change in Net Assets on page 25 and the Schedule of Grants on pages 26 - 33 are presented for purposes of additional analysis and are not a required part of the 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 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 financial statements or to the 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 financial statements as a whole. June 18, 2019 3 NEW ISRAEL FUND AND TRUTH TO POWER FOUNDATION COMBINED STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31, 2018 WITH SUMMARIZED FINANCIAL INFORMATION FOR 2017 ASSETS 2018 2017 CURRENT ASSETS Cash and cash equivalents $ 7,794,310 $ 7,856,780 Investments 5,259,622 5,690,214 Pledges receivable, current portion, net of allowance for doubtful accounts of $88,953 and $62,700 in 2018 and 2017, respectively 3,685,674 2,408,365 Accounts receivable 152,536 256,173 Prepaid expenses 165,422 133,757 Total current assets 17,057,564 16,345,289 FURNITURE, EQUIPMENT AND LEASEHOLD IMPROVEMENTS Furniture and equipment 2,650,064 2,559,640 Leasehold improvements 171,093 226,492 2,821,157 2,786,132 Less: Accumulated depreciation and amortization (2,320,253) (2,284,380) Net furniture, equipment and leasehold improvements 500,904 501,752 OTHER ASSETS Pledges receivable, net of current portion 123,223 48,309 Deposits 137,211 137,211 Total other assets 260,434 185,520 TOTAL ASSETS $ 17,818,902 $ 17,032,561 See accompanying notes to combined financial statements. 4 EXHIBIT A LIABILITIES AND NET ASSETS 2018 2017 CURRENT LIABILITIES Accounts payable and accrued liabilities $ 1,439,452 $ 1,814,202 Grants payable 2,681,982 2,640,555 Annuity payable, current portion 6,078 9,010 Deferred rent abatement, current portion 611 31,633 Total current liabilities 4,128,123 4,495,400 LONG-TERM LIABILITIES Accrued severance 164,440 176,968 Deferred rent abatement, net of current portion 135,587 112,976 Annuity payable, net of current portion 18,566 24,644 Total long-term liabilities 318,593 314,588 Total liabilities 4,446,716 4,809,988 NET ASSETS Without Donor Restrictions: Undesignated 5,393,288 3,673,000 Board designated 2,894,470 2,994,477 Total without donor restrictions 8,287,758 6,667,477 With Donor Restrictions 5,084,428 5,555,096 Total net assets 13,372,186 12,222,573 TOTAL LIABILITIES AND NET ASSETS $ 17,818,902 $ 17,032,561 See accompanying notes to combined financial statements. 5 EXHIBIT B NEW ISRAEL FUND AND TRUTH TO POWER FOUNDATION COMBINED STATEMENT OF ACTIVITIES AND CHANGE IN NET ASSETS FOR THE YEAR ENDED DECEMBER 31, 2018 WITH SUMMARIZED FINANCIAL INFORMATION FOR 2017 2018 2017 Without Donor With Donor Restrictions Restrictions Total Total REVENUE Contributions $ 28,223,961 $ 2,975,805 $ 31,199,766 $ 28,699,405 Donor-advised funds 781,055 - 781,055 - Special events 610,868 - 610,868 429,019 Other revenue 82,886 - 82,886 103,422
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