Westerville Area Resource Ministry

Transcription

•• •••••
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• •••••
·WA.R.M .
December 31, 2014 and 2013
1 O)l..JJKA~ @ CO>IVllPA~Y
CERTIFIED PUBLIC ACCOUNTANTS
&
BUSINESS ADVISORS
An lndcpcndcmr Mombcr of/ho
p lante moran
ALLI A NC:E
INDEPENDENT AUDITOR'S REPORT
To the Board of Trustees of
We have audited the accompanying financial statements of Westerville Area Resource Ministry (a nonprofit
organization), which comprise the statements of financial position as of December 31, 2014 and 2013, and the
related statements of activities 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.
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 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 Westerville Area Resource Ministry as of December 31 , 2014 and 2013, 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.
Westerville, Ohio
July 10, 2015
"GOING BEYOND THE NUMBERS" ~=============~
575
CHARRING CROSS DRIVE, SUITE 200
614.9oi.7100
WESTERVILLE, OHIO 43081
FAX 614 .9oi.7no
www.toukan.com
Statements of Financial Position
As of December 31, 2014 and 2013
ASSETS
2014
CURRENT ASSETS
Cash and Cash Equivalents
Cash - Restricted
Unconditional Promises to Give
Unconditional Promises to Give - Related
Accounts Receivable
Grants Receivable
Inventory
Prepaid Expenses
Total Current Assets
$
FIXED ASSETS
Equipment
Building
Vehicles
Furniture
Improvements
Less: Accumulated Depreciation
Total Fixed Assets
178,357
967,326
141,066
121,210
4,167
47,389
121,336
5 932
1,586,784
$
897
4 879
5,776
$
2,890,273
617,045
0
0
0
4,167
0
146,041
8 849
776,102
84,431
0
15,923
23,052
18,987
{6025882
81,805
117,686
1,204,614
28,094
36,754
0
{8924352
1,297,713
OTHER ASSETS
Deposits
Capitalized Loan Costs, Net of Amort
Total Other Assets
TOTAL ASSETS
2013
897
0
897
$
858,804
The accompanying notes are an integral part of these financial statements.
2
As of December 31, 2014 and 2013
LIABILITIES AND NET ASSETS
2014
CURRENT LIABILITIES
Accounts Payable
Credit Cards Payable
Current Portion of Note Payable
Accrued Other Expenses
Total Current Liabilities
$
4,814
13,419
53,172
61145
132,550
2013
$
4,098
16,315
0
122230
32,643
LONG-TERM LIABILITIES
Note Payable
Less Current Portion
Total Long-Term Liabilities
783,901
0
0
0
Total Liabilities
916,451
32,643
839,987
1)3\835
734,147
92 014
129732822
826)61
837,073
~5321722
NET ASSETS
Unrestricted Net Assets
Temporarily Restricted Net Assets
Total Net Assets
TOT AL LIABILITIES AND NET ASSETS
$
2.890.273
$
858.804
3
Statements of Activities
For the Years Ended December 31, 2014 and 2013
Dec. 31, 2014
Amount
UNRESTRICTED NET ASSETS:
PUBLIC SUPPORT AND REVENUE:
Public Support:
Cash Contributions
Capital Campaign
Donated Food
Donated Goods
Donated Services
Total Public Support
Revenue:
Special Events Income
Grants Revenue
Interest and Dividends
Gain/(Loss) on Sale of Asset
Miscellaneous Income
Total Revenue
Total Public Support and Revenue
Net Assets Released From Restrictions
Dec. 31, 2013
Amount
$
500,467
378,080
817,232
28,293
14 135
1,738,207
$
485,873
0
688,855
12,449
10,502
1,197,680
$
47,649
268,157
1,637
(15,131)
685
302,997
$
62,617
222,276
738
0
583
286,214
2,041,204
92 014
2,133,218
1,483,894
74 000
1,557,894
EXPENSES:
Program Services:
Resource Center
Supporting Services:
Management and General
Fund Raising
Total Program & Supporting Services
1,656,793
1,301,177
119,425
251,160
2,027,378
72,139
198 473
1,571,789
Total Expenses
2,027,378
1571,789
105,840
(13,895)
Increase/(Decrease) in Unrestricted Net Assets
4
Dec. 31, 2014
Amount
Dec. 31, 2013
Amount
TEMPORARILY RESTRICTED NET ASSETS:
Grants Revenue
Capital Campaign
General Contributions
Restrictions Satisfied by Payments
Increase/(Decrease) in Temporarily
Restricted Net Assets
56,689
1,059,849
17,297
{9220142
92,014
0
0
{742000}
1,04t821
18 014
Increase/(Decrease) in Net Assets
1,147,661
4,119
826)61
822,042
Net Assets at Beginning of Year
Net Assets at End of Year
$
1,973.822
$
826,161
5
Statements of Cash Flows
2014
CASH FLOWS FROM OPERATING ACTIVITIES
Increase/(Decrease) in Net Assets
Adjustments to Reconcile Increase/(Decrease) in Net Assets
to Net Cash Provided by Operating Activities:
Depreciation and Amortization
(Gain)/Loss on Sale of Fixed Assets
Decrease (Increase) in Current Assets:
Accounts Receivable
Grants Receivable
Inventory
Prepaids
Increase (Decrease) in Current Liabilites:
Accounts Payable
Net Cash Provided (Used) by
Operating Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures
Proceeds from Sale of Asset
Certificate of Deposit
Investing Activities
$
1,147,661
2013
$
4,119
33,144
15,131
13,385
0
(262,276)
(0)
(47,389)
24,705
2,917
0
(2,091)
59,000
(27,157)
(4,168)
715
(2,896)
48 915
384
5,627
304
960,627
49,403
(1,263,741)
2
0
(9,520)
0
69 388
(1,263,739)
59,867
6
Statements of Cash Flows
2014
CASH FLOWS FROM FINANCING ACTIVITIES
Note Payable Proceeds
Note Payable Payments
Capitalized Loan Costs
Financing Activities
2013
960,000
(122,927)
{5!3232
0
0
0
831,750
0
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS
528,638
109,271
CASH AT BEGINNING OF PERIOD
617,045
507,774
CASH AT END OF PERIOD
Interest Paid
$
1.145.683
19,452
$
617.045
0
7
Westerville Area Resource Ministry (WARM)
Notes to Financial Statements
I.
Organization and Nature ofActivities
In the early 1970s, volunteers from St. Paul's Catholic Church created an emergency food pantry,
originally known as Paul' s Pantry, in the basement of St. Paul's rectory. Families in need received food, clothing,
and emergency financial assistance through the efforts of these volunteers. In the 1980s, ministers from other
area churches decided to combine their efforts rather than have each church work individually. The Westerville
Area Ministerial Association adopted the project and the Westerville Area Resource Ministry (WARM) was
formed. WARM's services are concentrated on helping families that reside within the 52 square mile area
representing the Westerville school district and live at or below 200% of the poverty thresholds established by the
U.S. Department of Health and Human Services.
WARM expanded services and obtained 501(c)(3) non-profit status, exempt from federal income taxes,
from the Internal Revenue Service in 2001. During 2014, the organization purchased the building at 150
Heatherdown Drive, Westerville, Ohio and moved all operations to this location.
WARM is a faith-based organization serving the Westerville community. The organization works with
individuals and families that are on the economic and spiritual journey to self-sufficiency. The organization
provides compassionate, short-term assistance, educational services, and spiritual support in order to encourage
individuals to achieve a God-reliant, self-sufficient life while restoring dignity and hope. With an emphasis on
self-sufficiency, WARM works to provide "a hand up, not a hand out" to clients in need. A description of
WARM' s programs and resource center services is included in Note 17 of this document.
WARM is funded through private donations from Westerville-area churches, businesses, individuals,
civic organizations, and foundations. The organization also holds an annual Community Prayer Breakfast and
other fundraising events which helps support the ongoing programs.
2.
Summary ofSignificant Accounting Policies
(a)
Basis of Accounting
The accompanying financial statements of Westerville Area Resource Ministry (WARM) are prepared on
the accrual basis of accounting and accordingly reflect all significant receivables, payables, and other
liabilities.
(b)
Basis of Presentation
WARM reports its financial statements under the FASB ASC 958-10 (formerly Statement of Financial
Accounting Standards (SF AS) No. 117, "Financial Statements of Not-for-Profit Organizations") issued by
the Financial Accounting Standards Board (F ASB). Under FASB ASC 958-10, the Organization is
required to report information regarding its financial position and activities according to three classes of
net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets.
In addition, the Organization is required to present a statement of cash flows. As permitted by this new
statement, the Organization has discontinued its use of fund reporting and has, accordingly, reclassified
its financial statements to present the three classes of net assets required.
8
2.
Summary ofSignificant Accounting Policies (cont.)
(c)
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results may differ from these estimates.
(d)
Cash and Cash Equivalents
For the purpose of balance sheet classification and the statements of cash flows, the Organization
considers all short-term, highly liquid investments with maturities of six months or less at the date of their
acquisition to be cash and cash equivalents.
(e)
Cash - Restricted
Cash is restricted by donors for purposes defined in the Capital Campaign as described in Note 4.
(t)
Contributions are recognized when the donor makes a promise to give to the Organization that is, in
substance, unconditional. Contributions that are restricted by the donor are reported as increases in
unrestricted net assets if the restrictions expire in the fiscal year in which the contributions are recognized.
All other donor-restricted contributions are reported as increases in temporarily or permanently restricted
net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted
net assets are reclassified to unrestricted net assets.
The Organization uses the allowance method to determine uncollectible promises receivable. The
allowance is based on management's analysis of specific promises made. As of December 31, 2014,
management believes all promises will be collected.
(g)
Depreciation
The Organization capitalizes expenditures over $500 for furniture, fixtures, and equipment at historical
cost or, if donated, at the approximate fair value at the date of donation. Depreciation is computed using
primarily the straight-line method over the estimated useful lives of the related assets, which range from
three to forty years.
(h)
Revenue Recognition
Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted
support, depending on the existence and/or nature of any donor restrictions. Contributions received with
donor-imposed restrictions that are met in the same year in which the contributions are received are
classified as unrestricted contributions.
9
2.
Summary ofSignificant Accounting Policies (cont)
(h)
Revenue Recognition (cont.)
All donor-restricted contributions are reported as an increase in temporarily or permanently restricted net
assets, depending on the nature of the restriction. When a restriction expires (that is, when a stipulated
time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are
reclassified to unrestricted net assets and reported in the statement of activities as net assets released from
restrictions.
3.
Tax Status & Accounting for Uncertainty in Income Taxes
WARM qualifies as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code (as an
association of churches) and, accordingly, is not subject to Federal income tax. The Internal Revenue Service has
determined this status in their determination letter dated March 16, 2001. The Organization does file an income
tax return (Form 990) in the U.S. federal jurisdiction. The Organization is no longer subject to U.S. federal
income tax examinations by tax authorities for years before 2011.
In addition, WARM is incorporated in the State of Ohio and is registered as a nonprofit organization. As such,
the Organization is required to file annual reports with the Attorney General for the State of Ohio.
The Financial Accounting Standards Board (FASB) has issued FASB ASC 740-10 (formerly Interpretation No.
48), Accounting for Uncertainty in Income Taxes. FASB ASC 740-10 clarifies the accounting for uncertainty in
income taxes recognized in an enterprise's (including non-profit enterprises) financial statements in accordance
with FASB ASC 740-10-125 (formerly FASB Statement No. 109) Accounting for Income Taxes. FASB ASC
740-10 also prescribes a recognition threshold and measurement standard for the financial statement recognition
and measurement of an income tax position taken or expected to be taken in a tax return. In addition, FASB ASC
740-10 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods,
disclosure and transition.
The Organization treats tax positions taken using the more-likely-than-not recognition threshold. Tax positions
are measured in the year that the Organization believes that the position is more-likely-than-not to be sustained.
Any positions that are not expected to be sustained will be recorded as a liability.
The Organization believes that none of the tax positions taken would be material to the financial statements.
4.
Capital Campaign
Some temporary restrictions on net assets at the end of 2014 are related to funds raised through the capital
campaign, a drive to raise funds for the purchase of a building. The Organization plans to move, expand the
operations, infrastructure support, and strengthen sustainability during the next three years. The Organization
purchased and moved into the building during 2014. The Organization has raised support of $1,588,929, of which
$491,580 has been spent. Cash and promises to give are restricted to payments related to the campaign, the
building purchase (including repayment of debt incurred to acquire the building), moving costs, renovation costs,
and program and service expansion. See Note 13 for restrictions on net assets.
IO
5.
Concentration of Credit Risk
The Organization has concentrated its credit risk by maintaining cash balances in a single financial institution
located in Westerville, Ohio. In 2014 and 2013 the Organization's cash balances exceeded federally insured
limits that were in place. As of December 31, 2014 and 2013, the Organization had uninsured cash balances of
$905,833 and $351,069, respectively. The Organization does not anticipate any loss resulting from this risk.
6.
Unconditional promises to give are contributions restricted for the purposes defined in the Capital Campaign as
described in Note 4 and consist of the following:
2014
Non-related parties
Related parties
Gross unconditional promises to give
Less: Unamortized discount
Net unconditional promises to give
Amounts due in:
Less than one year
One to five years
$ 143,795
123,452
267,247
(4,971)
$ 262,276
$ 157,517
109,730
$ 267,247
Unconditional promises to give due in more than one year are recognized at fair value, using present value
techniques and a discount rate of 2.75%, when the donor makes an unconditional promise to give to the
Organization.
7.
Grants Receivable
Grants receivable consists of grants that have been awarded during the current year. All grants receivable funds
have been or will be received in a subsequent year.
8.
Inventories
The organization maintains inventories of food and household items to meet the needs of their clients. As the
majority of the inventory is donated to the organization, the actual cost of the inventory is not known.
The ending inventory at December 31, 2014 and 2013 has been estimated at $121,336 and $146,041, respectively,
based on a physical inventory of the items on hand. The value of food is measured based on a value assigned to
measurements of pounds of food. Based upon established measurements, a pound of food for 2014 and 2013 has
a value of $1.71 and $1.68 per pound, respectively. WARM also receives and provides household goods to its
clients. The value of which has been included as an integral part of the food inventory. The cost per pound
difference of these household goods was not determined during 2014 or 2013. The impact to the inventory value
is determined to be immaterial to the overall financial statements. At December 31, 2014 and 2013, WARM had
on hand food and household items of 70,957 pounds and 86,929 pounds, respectively. Therefore, the inventory
value has been estimated at $121,336 for 2014 and $146,041for2013. See notes 18 and 19.
It is at least reasonably possible that the Organization's estimate of the inventory on hand will change in the near
term.
11
9.
Accounts Payable
Accounts payable include the expense reimbursements for the Executive Director, a related party.
10.
The organization maintains five business credit cards, with an overall limit of $30,000. The credit cards have
been assigned to the executive director, the coordinator of pantry services, the manager of programs & projects,
the director of development & communications and the manager of resource center & volunteer services. The
credit cards assist the organization with control over purchases and efficiency in operations.
Credit card charges made prior to year end but not paid until the next year were reported as credit cards payable at
December 31 , 2014 and 2013 in the amount of $13,419 and $16,315, respectively.
11.
Accrued other expenses consist of amounts owed for wages, paid time off, employer payroll taxes and real estate
tax. The amounts due for each of these items for the years presented are as follows:
Accrued Wages
Accrued Employer Taxes
Accrued Paid Time Off
Accrued Real Estate Tax
Total
12.
2014
2013
$ 7,186
532
8,338
45,089
$ 61,145
$ 6,773
358
5,098
0
$ 12,230
Note Payable
The Organization' s notes payable consist of the following:
2014
Note payable to Cooperative Business Services, interest
at three year Treasury Index plus 2.5%, currently 2.75%,
monthly payments of $4,431, matures April 2023.
Collateralized by building located at 150 Heatherdown,
Westerville, OH
Less amounts due within one year
Total long-term debt
$837,073
($53 ,172)
$783,901
Maturities of long-term debt are as follows:
2015
2016
2017
2018
2019
Thereafter
$ 53,172
53,172
53,172
53 ,172
53,172
571,213
$ 837,073
12
13.
Restrictions on Cash and Net Assets
The board of directors has restricted the use of cash to require a minimum cash reserve of $70,000 to be
maintained at all times.
Temporarily restricted net assets were designated for the Capital Campaign, the Kids Summer Lunch Club, the
FEED (Food Pantry) Program, and for the general development of the Organization. All are for use in subsequent
years. Temporarily restricted net assets are available for use in the following purpose and year:
2014
Capital Campaign
Kids Summer Lunch Club
FEED Program
Development
Total
14.
$ 1,097,349
22,597
0
13,889
$ 1,133,835
2013
0
64,378
20,000
7,636
$ 92,014
$
Donated Food & Goods
A primary operating activity of the Organization is a food pantry located at 150 Heatherdown Drive in
Westerville, Ohio. Throughout the year, there were in kind donations of food and other goods to the pantry from
the following sources:
•
•
•
•
•
•
Mid Ohio Food Bank
Westerville Area Churches
Annual Post Office Food Drive
Westerville School District Food Drives
Area Business Food Drives
Otterbein College Food Drives
•
•
•
•
•
Area Grocery Stores
Area food distributors & restaurants
Local farmers & produce vendors
Individual Donations
Civic Organization Food Drives
During the years ended December 31, 2014 and 2013, the Organization received an estimated 404,997 lbs
(estimated value of $692,545) and 295,480 lbs (estimated value of $497,011) of food and donations. Based on
their considerable purchasing power, the Organization also receives significant purchase discounts from the MidOhio Food Bank and local grocery stores. These purchase discounts were estimated at $124,687 for 2014 and
$191,844 for 2013. Therefore, total donated food support recognized during 2014 and 2013 was $817,232 and
$688,855, respectively.
The Organization participates in Giant Eagle's "fuelperks!" program which gives customers an opportunity fo
earn fuel discounts at GetGo gas stations based on how much they spend on groceries and other items at Giant
Eagle stores. The Organization purchases meat and other perishable food items to distribute through the food
pantry at Giant Eagle on a regular basis, typically in large quantities. As such, the Organization has earned
significant discounts on fuel purchases at GetGo. WARM uses these fuel discounts when ptl.rchasing fuel for the
box truck owned and operated by the Organization. Because of the significant discounts earned, the Organization
has been able to fuel the truck many times throughout the year with no actual cost to the Organization. For 2014
and 2013, the discounts on fuel purchases were approximately $2,223 and $2,846, respectively. Since these
discounts are available to any individual or organization they are not considered donations to the Organization
and, therefore, are not recorded in the financial statements.
13
15.
Donated Services
The Organization relies on hundreds of volunteers annually to assist in the food pantry as well as educational and
spiritual support classes. The total number of volunteer hours given during 2014 and 2013 was approximately
21 ,102 and 16,675 hours, respectively. No amounts have been reflected in the financial statements for those
services since they do not meet the criteria for recognition under FASB ASC 958-605-25-16 (formerly SFAS No.
116, "Accounting for Contributions Received and Contributions Made").
During the year ended December 31, 2014 and 2013, the Organization received contributed services from several
sources that meet the criteria for recognition under FASB ASC 958-605-25-16. These services, recorded at fair
value, include the following items:
2014
Management and general:
Approx. 21 and 62 hours, respectively
$ 525
$ 2,656
Fundraising:
11 ,510
6,323
Resource Center:
Total contributed services
16.
2013
2,100
1,523
$14,135
$10,502
Special Events
WARM holds one major annual fundraising event called the "Community Prayer Breakfast" in the spring. Most
of the supplies and services for this event are provided at no cost to the Organization. During 2014 and 2013, the
annual prayer breakfast revenue was $42,745 and $46,115. WARM held miscellaneous other fundraising events
during the years ended December 31, 2014 and 2013 which produced revenue of $2,077 and $7,310, respectively.
The expenses directly related to these special events are considered immaterial.
During 2014 and 2013, WARM held "The Great Westerville Food Truck Fest". This event was designed to raise
awareness regarding poverty and hunger. The event included approximately 20 food truck vendors, live
entertainment, and volunteer opportunities. The event also allows attendees an opportunity to package meals to
be distributed to those at risk for hunger in the Westerville area. For 2014, the gross fundraising receipts from
this event totaled $14,026 and the Organization incurred approximately $11,199 in expenses directly related to
this special event for an approximate net fundraising effort of $2,827. For 2013 , the gross fundraising receipts
from this event totaled $24,274 and the Organization incurred approximately $15,082 in expenses directly related
to this special event for an approximate net fundraising effort of$9,192. The Organization currently plans to hold
this event annually.
14
17.
Program Services and Resource Center
WARM operates a variety of programs to achieve its mission to support families who are on the economic and
spiritual journey to self-sufficiency. The programs consist of the following:
~
WORK - Work Opportunities, Resource & Keystones - The WORK initiative (formerly STOP) is a
unique self-sufficiency program that "helps people help themselves." More than just an employment
preparation program, WORK combines employment support, educational and training services, shortterm emergency assistance and spiritual support. Economically disadvantaged, unemployed and
underemployed Westerville school district residents gain the confidence and skills they need to secure and
retain full-time employment, leading to a more productive life and increased family stability.
Highlights of the WORK program include:
o Limited Financial Assistance
o Individual goal plans and employability plans
o Budget training
o One-on-one employment coaching
o Workshops providing assistance with resume writing and interviewing skills
o Women's support groups
o Goal achievement meetings with program staff
~
HOPE - Elderly and Disabled Clients - This program empowers clients to maximize limited resources
by providing assistance with budgets and personal goals while meeting nutritional needs. While these
clients may not be able to achieve self-sufficiency, steps are taken to ensure that they are able to live as
independently as possible. Clients are encouraged to work whenever able and/or to volunteer in their
community, if at all possible.
~
FEED - Client Choice Food Pantry-The Client Choice Food Pantry provides a 6 day supply of food to
eligible clients. Individuals may visit the pantry twice a month for food assistance. In addition to
providing a supply of food, this program also strives to:
o
o
o
Empower clients to choose food based on need and preference.
Educate clients about improved diet and nutrition.
Improve pantry efficiency by reducing waste.
~
HELP - Transient Assistance -The transient program serves those who are passing through Westerville
and find themselves in need of emergency assistance. The program is operated in collaboration with
Chaplains from the Westerville Area Ministerial Association and the Westerville Police Department.
WARM provides bus passes, food coupons and gift certificates as part of this program.
~
Benefit Bank - Resource Referral - The benefit bank is a web-based program designed to connect lowincome families with federal, state, and local public assistance available to them. The program also offers
free tax preparation assistance to low income families.
15
17.
Program Services and Resource Center (cont.)
);:>-
18.
Kids Summer Lunch Club - This program provides eligible children with free, nutritious meals and
coordinated activities when school is not in session. Beginning in 2011, the Organization entered into a
contractual agreement with the Ohio Department of Education to serve as a Sponsoring Agency under the
United States Department of Agriculture's National Lunch Act and Summer Food Service Program for
Children. Under this agreement, the Ohio Department of Education reimburses the Organization for the
cost of qualified meals provided in this program, but the Organization remains solely responsible for the
administrative and financial support of the program. During 2014, the Organization expanded the number
of lunch sites due to increased demand and funding. During 2014 and 2013, the Organization received
$64,937 and $34,599, respectively, in reimbursements from the State of Ohio. The Organization also
received corporate sponsorship donations from Trinity Health to support the 2013 program totaling
$52,000 for the year. The Organization has also received numerous grants and general contributions in
2014 and 2013 to help fund this program.
Assistance to Individuals
Amounts paid on behalf of families and individuals as assistance in 2014 and 2013 consisted of the following
types of expenditures:
Auto Expense
Holiday Expense
Other Donated Goods
Client Education Expense
Food Purchased
Gift Certificates & Vouchers
Housing/Rent Expense
Legal Expense
Utilities Expense
Insurance Expense
Medical Expense
2014
Amount
$ 2,806
1,870
1,242
3,830
170,612
4,650
7,348
0
7,807
172
0
Total Cost of Assistance Given
Food Donated & Distributed
$ 200,337
841,937
Total Assistance for Individuals
19.
$ 1,042,274
2013
Amount
$ 4,322
8,756
1,711
1,665
137,437
5,864
4,125
96
7,339
0
50
$
171,365
661,698
$ 833,063
Food Distributed
In addition to its other services, WARM provides assistance of food and household items to its clients throughout
the year with additional assistance during Easter, Thanksgiving and Christmas. Through the Client Choice Food
Pantry program, the clients of WARM are permitted to select their own food choices within guidelines provided
by WARM.
16
19.
Food Distributed (cont.)
WARM measures its pantry assistance by pounds of food and household items provided and count of families
served. Each encounter with a family during the year is measured as a "family served".
All food and household items donated to the organization during the fiscal year ended December 31, 2014 and
2013 were weighed as received (see Note 8). During 2014 and 2013, WARM's pantry served 5,847 and 5,669
families, respectively.
The cost of providing food and household items to clients consists of the food served to clients, as well as cost of
expired food and food given to other programs. During the years ended December 31, 2014 and 2013 , food and
household items provided to clients were estimated at approximately 504,797 lbs (approx $922,381) and 428,936
lbs (approx $752,821), respectively. The organization incurred waste (due to expired dating on perishables) and
provided food items to other organizations that were nearing expiration for immediate use of approximately
52,730 lbs (approx $90,168) in 2014 and 27,568 lbs (approx $46,314) in 2013. Therefore, the total cost of food
and household items provided during 2014 and 2013 were $1,012,549 and $799,135 (of which WARM purchased
only $170,612 and $137,437 for 2014 and 2013, respectively.)
20.
Leasing Arrangements
During 2013, the Organization extended the original two-year lease agreement (dated May 25, 2006) and
subsequent renewals for office space for another 12 month period that expired September 30, 2014. The lease
payments for the total space were $15,400 for 2014 and $26,400 for 2013, or $2,200 per month. Lease payments
included taxes, but did not include gas and electric utilities. These utilities were paid directly by WARM to the
appropriate provider. The Organization purchased a building and moved to this new location in July 2014. The
Organization was able to negotiate the end of the previously mentioned lease to July 31, 2014 instead of through
September 30, 2014 without incurring any costs.
WARM currently pays for the use of New Org Online Fundraising Software & Database on a month-to month
basis at a monthly fee of $500.
21.
Pension Plan
Effective February 1, 2011, WARM established a contributory profit sharing plan as defined under Section
403(b)(7) of the U.S. Internal Revenue Code covering substantially all employees. The Plan allows for pre-tax
deferral and Roth deferral contributions by the participants and discretionary matching contributions by the
employer. An employee becomes 100% vested with respect to employer contributions after completing five years
of service. The Board of Trustees of the Organization approved and funded a bonus to the Executive Director in
the form of a $3,000 matching contribution for each 2014 and 2013. The organization has contracted with a third
party administrator (TPA) to assist in setting up and administering the plan. In 2014 and 2013, WARM paid
$1,150 and $1,350, respectively, in fees for services provided by the TPA which was included in the professional
fees account.
22.
Concentrations
WARM relies on hundreds of volunteers to carry out their program services. The organization also relies on food
donations from a variety of sources (see note 14). Diversification of sources is done in an effort to minimize risk
from any one major contributor or source of volunteers. In the event that these sources of support were to be
eliminated, it is likely that the Organization would need to reduce its current operations, at least temporarily. The
Organization does not expect that this support will be lost in the near term.
17
22.
Concentrations (cont)
During 2014, the Organization received a one-time donation as part of the Capital Campaign that represented
approximately forty-four percent of the Orgai"1ization's cash support.
23.
Functional Expense Allocation
The costs of providing the various programs and activities have been summarized on a functional basis in the
statement of activities. Accordingly, certain costs have been allocated among the programs and supporting
services benefited.
24.
Subsequent Events
Subsequent events were evaluated through July 10, 2015, the date the financial statements were available to be
issued. No significant events have occurred subsequent to year end.
18
ADDITIONAL
INFORMATION
Independent Auditor's Report
on Additional Information
We have audited the financial statements of Westerville Area Resource Ministry as of and for the years ended
December 31, 2014 and 2013, and have issued our report thereon dated July 10, 2015, which contained an
unmodified opinion on those financial statements. Our audit was performed for the purpose of forming an opinion
on the financial statements as a whole. The statements of financial position schedules, statements of activities
schedules, and statements of functional expenses are presented for the 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 accepting 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.
Westerville, Ohio
July 10, 2015
19
Schedules
As of December 31, 2014 and 201~
2014
Cash and Cash Equivilents
Kemba Checking
Kemba Operating Account
Kemba Pantry Debit
Kemba Pantry Savings
Kemba Reserves Account
Kemba Emergency Fund
HNB Checking
Pantry Debit Account
HNB Analyzed Checking
HNB Non-Profit Money Market
Ameriprise Account
Gift Certificate Inventory
HNB Premier Money Market
Total Cash
2013
$
$
2,517
67,073
1,757
5
2,352
70,097
0
0
0
0
24,908
9,650
0
178.359
$
0
0
0
0
0
0
(1,184)
883
295,215
69,821
0
3,185
2492125
617 045
Cash - Restricted
Kemba Building Campaign
Total Cash - Restricted
$
$
967,326
967.326
$
$
0
0
Inventory
Food Inventory
Total Inventory
$
$
1212336
121,336
$
$
146 041
146.041
$
0
5 932
5.932
$
2,200
6 649
8 849
117,686
1,204,614
28,094
36,754
0
{892435}
1.297,713
$
Prepaid Expenses
Prepaid Rent
Prepaid Expenses
Total Prepaid Expenses
Fixed Assets
Equipment
Building
Vehicles
Furniture
Improvements
Accumulated Depreciation
Total Fixed Assets
$
$
$
$
$
$
84,431
0
15,923
23,052
18,987
{602588}
81,805
See Independent Auditor's Report on Additional Information
20
Schedules
December 31, 2014
Amount
%
Cash Contributions
Civic Groups & Other
Individual
Churches
Businesses
City & Schools
United Way (Donor Choice)
Foundations
Total Cash Contributions
Special Events Income
Prayer Breakfast
Coin Jar Contributions
Other Special Events
Total Special Events Income
$
$
$
$
December 31, 2013
Amount
%
12,739
176,058
137,479
91,927
4,046
10,460
67 758
500.467
0.62
8.57
6.69
4.47
0.20
0.51
3.30
24.36
$
42,745
2,077
2 827
47 649
2.08
0.10
0.14
2.32
$
$
$
8,609
229,342
120,903
111,356
4,846
10,818
0
485 874
0.58
15.46
8.15
7.51
0.33
0.73
0.00
32.76
46,115
2,704
13 799
62,618
3.11
0.18
0.93
4.22
21
Statements of Functional Expenses
Resource
Center
Supporting Services
Management
Fund
and General
Raising
2014
Total
Expenses
2013
Total
Expenses
SALARIES AND RELATED EXPENSES:
Compensation of Officers
Salary and Wages
Payroll Taxes
Group Insurance
Workers' Compensation Insurance
TOTAL SALARIES AND
RELATED EXPENSES:
$
EXPENSES:
Assistance to Individuals
Professional Fees
Supplies
Telephone
Postage and Shipping
Occupancy
Repairs and Maintenance
Printing and Publications
Meetings and Conventions
Insurance
Travel & Entertainment
Interest Expense
Other Expenses
TOTAL EXPENSES BEFORE
DEPRECIATION
Depreciation Expense
TOTAL EXPENSES
$
22,925
372,294
25,830
2,526
2,786
$
28,051
35,138
4,130
2,547
445
$
37,433
117,728
10,141
2,526
1,094
426,361
70,291
1,042,274
18,028
27,952
2,272
1,319
63,893
24,681
3,968
474
7,976
2,222
11,671
2,353
-
-
11,806
9,844
361
306
10,275
535
576
375
1,750
3,748
2,918
3,227
1,635,444
21,349
1,656,793
$
$
$
85,395
402,707
30,807
6,594
3,909
665,574
529,412
11,156
8,423
1,364
2,880
16,786
1,001
15,757
180
3,474
5,422
4,863
2,550
1,042,274
40,990
46,219
3,997
4,505
90,954
26,217
20,301
1,029
13,200
11,392
19,452
8,130
833,063
52,901
39,508
2,443
3,546
40,891
7,283
21,245
3,242
7,239
8,836
ll6,012
242,778
1,994,234
1,558,404
3,413
8,382
33,144
13,385
119,425
168,922
88,409
525,160
40,101
7,579
4,325
$
251,160
$
2,027,378
8,795
$
1,571,789
22

Westerville Area Resource Ministry

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