COMMUNITY COLLEGES OF NEW HAMPSHIRE FOUNDATION FINANCIAL REPORT JUNE 30, 2020 CONTENTS Page INDEPENDENT AUDITOR'S REPORT ON THE FIN"ANCIAL STATEMENTS ......................................................................................................... 1 and 2 FIN"ANCIAL STATEMENTS Statements of financial position ................................................................................................................................ 3 Statement of activities and changes in net assets ................................................................................................... 4 Statement of functional expenses ............................................................................................................................. 5 Statements of cash flows ............................................................................................................................................ 6 Notes to financial statements................................................................................................................................ 7-17 COMPANY OCIATION CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS INDEPENDENT AUDITOR'S REPORT To the Board of Directors Community Colleges of New Hampshire Foundation Concord, New Hampshire 03301 Report on the Financial Statements We have audited the accompanying financial statements of Community Colleges of New Hampshire Foundation (the "Foundation''), which comprise the statement of financial position as of June 30, 2020, and the related statement of activities and 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 audit. 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 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 Foundation'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. Page 1 70 Coramercial Street, 4th Floor 5 9 En1erald SiTeet 44 School Street ~w,vv,u, NH 0330] Keene, NH 03431 Lebanon, NH 03766 v: 603-224-5357 603-357-7665 v: 603-448-2650 f: 603-224-3 792 f: 603-224-3792 f: 603-448-24 7 6 Emphasis of Matter As discussed in Note 8 to the financial statements, as a result of the spread of the COVID-19 coronavirus subsequent to year end, economic uncertainties have arisen. Our opinion is not modified with respect to this matter. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Foundation as of June 30, 2020, and the results of its operations and its 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 Foundation's financial statements for the year ended June 30, 2019, and we expressed an unmodified audit opinion on those audited financial statements in our report dated November 12, 2019. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2019 is consistent, in all material respects, with the audited financial statements from which it has been derived. Concord, New Hampshire November 5, 2020 Page2 COMMUNITY COLLEGES OF NEW HAMPSHIRE FOUNDATION STATEMENTS OF FINANCIAL POSITION June 30, 2020 and 2019 ASSETS 2020 2019 CURRENT ASSETS Cash $ 9,899 $ 721 Contributions receivable, current portion 16,552 4,000 Total current assets 26,451 4,721 OTHER ASSETS Cash equivalent portion of invesbnents 136,303 334,586 Contributions receivable, less current portion 4,000 8,000 Invesbnents 4,257,603 3,937,862 4,397,906 4,280,448 Total assets $ 4,424,357 $ 4,285,169 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable $ 1,767 $ 49,146 NET ASSETS Without donor restrictions 176,175 134,643 Board designated 300,533 279,160 Total net assets without donor restrictions 476,708 413,803 With donor restrictions 3,945,882 3,822,220 Total net assets 4,422,590 4,236,023 Total liabilities and net assets $ 4,424,357 $ 4,285,169 See Notes to Financial Statements. Page3 COMMUNITY COLLEGES OF NEW HAMPSHIRE FOUNDATION STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS Year Ended June 30, 2020 (With Comparative Totals for 2019) Without With Donor Donor 2020 2019 Restrictions Restrictions Total Total Revenue and other support: Contributions $ 291 $ 453,257 $ 453,548 $ 468,936 Fundraising 268,179 268,179 66,657 In-kind revenue 421,819 421,819 308,112 Interest and dividend income 11,919 78,775 90,694 89,380 Realized and unrealized gains on investments, net of fees 167 1,507 1,674 52,717 434,196 801,718 1,235,914 985,802 Net assets released from restrictions for satisfaction of purpose and time restrictions 678,056 (678,056) Expenses: Program 681,126 681,126 673,225 General and administrative 214,104 214,104 160,015 Fundraising 154,117 154,117 72,330 1,049,347 1,049,347 905,570 Increase in net assets 62,905 123,662 186,567 80,232 Net assets, beginning of year 413,803 3,822,220 4,236,023 4,155,791 Net assets, end of year $ 476!708 $ 3£945£882 $ 4!422!590 $ 4£236!023 See Notes to Financial Statements. Page4 COMMUNITY COLLEGES OF NEW HAMPSHIRE FOUNDATION STATEMENT OF FUNCTIONAL EXPENSES Year Ended June 30, 2020 (With Comparative Totals for 2019) General and 2020 2019 Program Administrative Fundraising Total Total Scholarships $ 521,006 $ $ $ 521,006 $ 489,553 In-kind- services 120,314 171,878 51,563 343,755 232,772 In-kind - office expenses 16,958 24,227 7,268 48,453 46,071 In-kind - professional fees 2,275 3,250 975 6,500 6,500 In-kind- consulting 3,065 4,378 1,314 8,757 3,853 In-kind- insurance 649 927 278 1,854 2,416 Office supplies and expense 1,144 43,476 44,620 8,998 Professional fees - audit and accounting 5,775 8,250 2,475 16,500 16,500 Professional fees - secretarial 50 50 4,734 Support of Community College System of New Hampshire curriculum and activities 11,084 11,084 75,833 Event expense 46,768 46,768 18,340 Total functional expenses $ 681,126 $ 214,104 $ 154,117 $ 1,049,347 $ 905,570 See Notes to Financial Statements. Page5 COMMUNITY COLLEGES OF NEW HAMPSHIRE FOUNDATION STATEMENTS OF CASH FLOWS Years Ended June 30, 2020 and 2019 2020 2019 CASH FLOWS FROM OPERATING ACTIVITIES Increase in net assets $ 186,567 $ 80,232 Adjustments to reconcile increase in net assets to net cash provided by operating activities: Realized and unrealized gain on investments, net of fees (1,674) (52,717) (Increase) decrease in contributions receivable (8,552) 50,222 Increase (decrease) in accounts payable (47,379) 10,083 Contributions restricted for long-term purposes (113,182) (10,507) Net cash provided by operating activities 15,780 77,313 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments (2,680,881) (547,733) Proceeds from sales of investments 2,362,814 557,263 · Net cash provided by (used in) investing activities (318,067) 9,530 CASH FLOWS PROVIDED BY FINANCING ACTIVITIES Proceeds from contributions restricted for investment in permanent endowment 113,182 10,507 Net increase (decrease) in cash and cash equivalents (189,105) 97,350 Cash and cash equivalents, beginning of year 335,307 237,957 Cash and cash equivalents, end of year $ 146,202 $ 335,307 Cash and cash equivalents consists of: Checking account $ 9,899 $ 721 Cash and cash equivalent portion of investments 136,303 334,586 $ 146,202 $ 335,307 See Notes to Financial Statements. Page 6 COMMUNITY COLLEGES OF NEW HAMPSHIRE FOUNDATION NOTES TO FINANCIAL STATEMENTS Note 1. Nature of Activities Community Colleges of New Hampshire Foundation (the "Foundation'') is a non-profit organization structured to seek and secure private funds and/ or grants in order to supplement the traditional revenue sources of the Community College System of New Hampshire (CCSNH). The Foundation's mission is to support the CCSNH and make higher education