STARLIGHT CHILDREN’S FOUNDATION GLOBAL OFFICE Financial Statements December 31, 2013

Transcription

STARLIGHT CHILDREN’S FOUNDATION GLOBAL OFFICE Financial Statements December 31, 2013
STARLIGHT CHILDREN’S FOUNDATION
GLOBAL OFFICE
Financial Statements
December 31, 2013
(With Independent Auditors’ Report Thereon)
STARLIGHT CHILDREN’S FOUNDATION
GLOBAL OFFICE
Financial Statements
December 31, 2013
Table of Contents
Page
Independent Auditors’ Report
1
Statement of Financial Position
3
Statement of Activities
4
Statement of Functional Expenses
5
Statement of Cash Flows
6
Notes to Financial Statements
7
KPMG LLP
Suite 700
20 Pacifica
Irvine, CA 92618-3391
Independent Auditors’ Report
The Board of Directors
Starlight Children’s Foundation:
Report on the Financial Statements
We have audited the accompanying financial statements of Starlight Children’s Foundation (Global
Office), which comprise the statement of financial position as of December 31, 2013, and the related
statements of activities, 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 U.S. generally accepted accounting principles; 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 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 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 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 Starlight Children’s Foundation (Global Office) as of December 31, 2013, and the
changes in its net assets and its cash flows for the year then ended in accordance with U.S. generally
accepted accounting principles.
KPMG LLP is a Delaware limited liability partnership,
the U.S. member firm of KPMG International Cooperative
(“KPMG International”), a Swiss entity.
Emphasis of Matter
As discussed in note 8 to the financial statements, the Foundation has disclosed certain financial
information about unconsolidated domestic chapters which is unaudited. Our opinion is not modified with
respect to this matter.
June 19, 2014
Los Angeles, California
2
STARLIGHT CHILDREN’S FOUNDATION
GLOBAL OFFICE
Statement of Financial Position
December 31, 2013
Assets
Cash and cash equivalents
Pledges receivable
Inventory
Prepaid expenses and other assets
Property and equipment (net)
Total assets
$
4,219,834 174,697 92,498 599,802 419,343 $
5,506,174 $
533,329 108,722 Liabilities and Net Assets
Liabilities:
Accounts payable and accrued liabilities
Deferred revenue
Total liabilities
642,051 Net assets:
Unrestricted
Temporarily restricted
4,573,327 290,796 Total net assets
4,864,123 Total liabilities and net assets
$
See accompanying notes to financial statements.
3
5,506,174 STARLIGHT CHILDREN’S FOUNDATION
GLOBAL OFFICE
Statement of Activities
Year ended December 31, 2013
Unrestricted
Revenue and support:
Special events:
Gross receipts
Less direct benefit to donors
$
Temporarily
restricted
Total
574,599 (83,341) — — 574,599 (83,341) 491,258 — 491,258 Contributed goods, services and use of facilities
Contributions
Revenue from related parties
Miscellaneous
Net assets released from restrictions
1,359,260 4,022,247 254,123 11,831 294,324 — 186,942 — — (294,324) 1,359,260 4,209,189 254,123 11,831 — Total revenue and support
6,433,043 (107,382) 6,325,661 4,636,853 594,716 371,341 — — — 4,636,853 594,716 371,341 5,602,910 — 5,602,910 830,133 (107,382) 722,751 3,743,194 398,178 4,141,372 4,573,327 290,796 4,864,123 Net special events revenue
Expenses:
Program services
Management and general
Fundraising
Total expenses
Change in net assets
Net assets – beginning of year
Net assets – end of year
$
See accompanying notes to financial statements.
4
STARLIGHT CHILDREN’S FOUNDATION
GLOBAL OFFICE
Statement of Functional Expenses
Year ended December 31, 2013
Starlight
Fun Centers
Advertising
Bad debt expense
Bank charges
Depreciation
Donated professional services
Donated materials and supplies
Donated use of facilities
Equipment for program use
Equipment rental and repair
Facilities rent and parking
Fees
Grants to affiliates
Impairment loss
Insurance
Membership dues
Miscellaneous
Office supplies
Regulatory and other renewal fees
Outside IT Services
Postage, shipping and delivery
Printing and publications
Professional services
Renovation expense – Starlight Sites
Salaries and employee benefits
Telephone
Travel and automobile
Total functional
expenses
Starlight
Wish Lists
Starlight
Tablets
Program services
Starbright
Great
World
Escapes
Starlight
Sites
Other
programs
Total program
services
Supporting services
Management
and general
Fundraising
Total
$
849 — — 43,335 16,058 21,768 43,001 735,423 73,172 8,306 2,722 — — 12,663 4,058 2,241 8,048 1,727 65,167 99,132 5,942 13,355 — 550,859 9,387 9,961 560 — — 28,562 547,424 38,012 28,342 33,028 1,811 5,474 2,206 — — 8,346 2,674 1,541 5,304 1,138 76,114 1,064 3,435 8,802 — 331,792 6,187 6,565 136 — — 6,939 2,571 899 6,886 145,421 440 1,330 436 — — 2,028 650 359 2,390 277 10,436 8,701 835 2,139 — 80,612 1,503 1,595 195 — — 9,946 22,138 531 9,869 — 630 1,906 716 — — 2,906 1,026 534 1,847 396 61,020 398 1,196 4,165 — 271,287 2,154 3,550 299 — — 15,241 5,648 297,237 15,124 — 966 4,498 970 — — 4,454 1,427 2,900 3,070 607 22,920 1,008 1,833 4,697 — 217,580 3,301 3,683 77 — — 3,928 1,456 210 3,898 — 249 753 247 — — 1,148 368 3,336 729 157 5,907 146 639 6,461 79,468 45,631 851 903 164 — — 8,387 28,155 448 8,322 — 532 1,608 612 160,096 — 3,409 785 735 1,558 451 13,064 1,186 1,009 2,585 — 97,429 1,817 1,928 2,280 — — 116,338 623,450 359,105 115,442 913,872 77,800 23,875 7,909 160,096 — 34,954 10,988 11,646 22,946 4,753 254,628 111,635 14,889 42,204 79,468 1,595,190 25,200 28,185 601 1,000 19,042 30,667 11,364 1,550 30,431 — 1,944 5,411 1,926 — 36,298 8,961 2,871 1,586 5,695 1,222 26,682 1,142 3,689 97,269 — 292,015 6,614 6,736 339 — — 15,274 5,660 37,814 15,156 — 1,024 2,695 12,355 — — 4,463 1,430 18,777 2,837 609 16,989 861 8,436 74,530 — 145,441 3,294 3,357 3,220 1,000 19,042 162,279 640,474 398,469 161,029 913,872 80,768 31,981 22,190 160,096 36,298 48,378 15,289 32,009 31,478 6,584 298,299 113,638 27,014 214,003 79,468 2,032,646 35,108 38,278 $
1,727,174 1,138,381 276,583 396,410 607,463 156,562 334,280 4,636,853 594,716 371,341 5,602,910 See accompanying notes to financial statements.
5
STARLIGHT CHILDREN’S FOUNDATION
GLOBAL OFFICE
Statement of Cash Flows
Year ended December 31, 2013
Cash flows from operating activities:
Change in net assets
Adjustment to reconcile change in net assets to net cash provided by operating activities:
Donated property and equipment
Depreciation and amortization
Bad debt expense
(Increase) decrease in:
Contributions and pledges receivable
Related party receivables
Inventory
Prepaid expenses and other assets
Increase (decrease) in:
Accounts payable and accrued liabilities
Related party payables
Deferred revenue
$
722,751 (70,290) 162,279 1,000 5,799 800 (9,904) 257,377 57,855 (18,283) (256,192) Net cash provided by operating activities
853,192 Cash flows from investing activities:
Purchases of property and equipment
(501,162) Net cash used in investing activities
(501,162) Net increase in cash and cash equivalents
352,030 Cash and cash equivalents – beginning of year
3,867,804 Cash and cash equivalents – end of year
$
See accompanying notes to financial statements.
6
4,219,834 STARLIGHT CHILDREN’S FOUNDATION
GLOBAL OFFICE
Notes to Financial Statements
December 31, 2013
(1)
Organization
Since 1982, Starlight Children’s Foundation has dedicated itself to improving the life and health of kids
and families around the world.
For 32 years, Starlight has grown into a leading global charity partnering with innovators in healthcare,
entertainment, and technology to create a unique blend of family centered services from hospital to home.
Today, Starlight partners with healthcare facilities and major pediatric hospitals around the world,
serving millions of children every year.

Starbright World online community: The first-ever private social network for teens with chronic and
life-threatening medical conditions, and their siblings. Members are able to connect globally with
others experiencing similar medical journeys.

Starlight Fun Centers mobile entertainment units: Equipped with the latest gaming system that
provides bedside entertainment and bring the healing power of play to pediatric patients. For
children facing surgery, enduring long outpatient treatments or fighting loneliness after hospital
visiting hours have ended, Fun Center units provide a comforting break and fun distraction.

Starlight Tablets: Starlight Tablets are a critical resource for healthcare professionals to support the
ongoing needs of kids while in the hospital. Starlight Tablets are iPads with six of Starlight’s
award-winning online educational programs pre-loaded on the devices and a connection to Starbright
World. Feedback from Child Life Specialists and other healthcare experts indicates that having a
Starlight Tablet allows them to deliver superior patient care.

Starlight Sites: A Starlight Site is a beautifully designed, inviting hospital environment created to
support the healing of pediatric patients during their hospital stay. Since 1990, Starlight has been
transforming designated areas of sterile hospital environments into colorful, entertaining oases that
can be enjoyed by young patients and their families. These playrooms, teen lounges, and
playgrounds offer a variety of diversions, including video games, computers, toys, crafts, music, and
best of all, the company of other children.

Starlight Wish Lists: The world’s first technology platform that allows everyday philanthropists to
improve pediatric care, one dollar at a time. This cutting edge technology platform enables donors to
fill specific unmet needs directly and efficiently. This platform simplifies philanthropy by
connecting donors with partner facilities to fulfill critical needs in pediatric care. Wish Lists were
launched in July, 2013. More than $275,000 in support was provided through the Wish List program
during its six months of operation at December 31, 2013.
Starlight Children’s Foundation provides ongoing support to children, parents and siblings throughout the
United States of America through its Global Office located in Los Angeles, California. Two territories are
operated through a domestic chapter: Midwest and NY*NJ*CT. Each chapter is independently governed
by a Board of Directors operating under Starlight’s standards and is responsible for its own fundraising,
financial reporting and related tax filing obligations. Chapter Agreements entered into between the
U.S. Chapters and Starlight Children’s Foundation provide for common purposes and policy direction. The
Chapter Agreements also provide Starlight Children’s Foundation with a security interest in the assets of
the U.S. Chapters (see note 8).
7
(Continued)
STARLIGHT CHILDREN’S FOUNDATION
GLOBAL OFFICE
Notes to Financial Statements
December 31, 2013
The Starlight Children’s Foundation previously operated through three other chapters in the MidAtlantic,
Colorado and Northwest. During 2013 and through the first part of 2014, the individual board of directors
of each of these chapters officially voted to dissolve the respective corporations. The states previously
served by these chapters are now served by the Global Office.
Starlight Children’s Foundation also provides ongoing support to children, parents and siblings throughout
the United Kingdom, Canada and Australia through international affiliates (International Affiliates).
Affiliate Agreements entered into between each International Affiliate and Starlight provide for common
purposes and policy direction (see note 8).
The accompanying financial statements were prepared for the purpose of presenting the separate financial
information of Starlight Children’s Foundation (Global Office) (referred to herein as the Foundation). The
Foundation has elected not to consolidate the International Affiliates or U.S. Chapters’ financial results
into the accompanying financial statements, based on Accounting Standards Codification
(ASC) 958-810-25, Consolidation.
(2)
Summary of Significant Accounting Policies
(a)
Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of accounting in
accordance with U.S. generally accepted accounting principles.
(b)
Net Assets
The Foundation’s net assets and changes therein are classified and reported as follows:

Unrestricted. Net assets that are not subject to restrictions imposed by donors or law. The
Foundation has $4,573,327 of unrestricted net assets at December 31, 2013.

Temporarily Restricted. Net assets subject to restrictions imposed by donors or law that may
be met either by actions of the Foundation or the passage of time. When a donor restriction
expires, that is, when a stipulated time restriction ends or the purpose of the 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. The Foundation
reports restricted contributions whose restrictions are met in the same reporting period as
unrestricted contributions. The Foundation has $290,796 in temporarily restricted net assets at
December 31, 2013 (see note 2(d) and note 6).

Permanently Restricted. Net assets subject to donor-imposed restrictions that the principal be
maintained in perpetuity. Generally, the donors of these assets permit the Foundation to
expend all of the income (or other economic benefits) derived from the donated assets. The
Foundation has no permanently restricted net assets at December 31, 2013.
8
(Continued)
STARLIGHT CHILDREN’S FOUNDATION
GLOBAL OFFICE
Notes to Financial Statements
December 31, 2013
(c)
Cash and Cash Equivalents
The Foundation considers all highly liquid debt instruments purchased with original maturities of
three months or less to be cash and cash equivalents. The carrying value of cash and cash equivalents
at December 31, 2013 approximates its fair value.
The Foundation maintains its cash, cash equivalents and investments in bank deposit accounts and
other investment accounts, which, at times, may exceed federally insured limits. The Foundation has
not experienced any losses in such accounts. As of December 31, 2013 the Foundation has
$4,219,834 in cash and cash equivalents.
(d)
Contributions and Pledges Receivable
Contributions, including pledges, representing unconditional promises to give are recorded at
estimated fair value, and recognized as revenue in the period received. The Foundation reports
unconditional contributions as restricted support if they are received with donor stipulations that
limit the use of the donated assets. At December 31, 2013, none of the pledges receivable includes
restricted support. Total pledges receivable were $174,697 which are expected to be collected in
their entirety within one year from December 31, 2013.
(e)
Inventory
Inventory includes Starlight tablets and videogame players, monitors and other electronics that make
up the Starlight Fun Centers. Other inventory includes comfort kit back packs and donated tickets
and other materials collected for distribution through the Foundation’s programs. Purchased
inventory is stated at cost. Donated inventory is recorded at estimated fair value at the time of
donation. The Foundation reviews the carrying value of its inventory for possible impairment
whenever events or changes in circumstances indicate that the fair value may have declined since it
was originally acquired. An impairment loss is recognized when the fair value of the inventory is
lower than the carrying amount, in which case a write-down is recorded to reduce the related asset to
its estimated fair value. An impairment loss of $36,298 was recognized during the year ended
December 31, 2013 for donated materials and supplies.
(f)
Prepaid Expenses and Other Assets
Prepaid expenses and other assets primarily include a prepayment to Nintendo of America of
$442,784 for Starlight Fun Centers and prepaid operating expenses and insurance of $92,443.
9
(Continued)
STARLIGHT CHILDREN’S FOUNDATION
GLOBAL OFFICE
Notes to Financial Statements
December 31, 2013
(g)
Property and Equipment
Property and equipment having a useful life of more than one year are recorded at cost if purchased.
Donated assets are capitalized at the estimated fair value at the date of receipt and restrictions are
released once the asset has been placed into service. Depreciation is computed on the straight-line
basis over the estimated useful lives of the related assets. Maintenance and repair costs are charged
to expenses as incurred. Property and equipment are capitalized if the cost of an asset is greater than
or equal to $5,000. The estimated useful lives of property and equipment are as follows:
Software and computers
Furniture and fixtures
Office equipment
3 Years
7 Years
5 Years
Leasehold improvements are amortized on the straight-line basis over the term of the lease or the
estimated useful life, whichever is shorter.
(h)
Long-Lived Assets
The Foundation reviews the carrying values of its long-lived assets for possible impairment
whenever events or changes in circumstances indicate that the book value of the assets may not be
recoverable. An impairment loss is recognized when the sum of the undiscounted future cash flows
is less than the carrying amount of the asset, in which case a write-down is recorded to reduce the
related assets to its estimated fair value. No impairment losses were recognized during the year
ended December 31, 2013.
(i)
Deferred Revenue
Deferred revenue is primarily related to advances received by the Foundation from certain affiliates
for the future purchase of Fun Centers. As the Fun Centers had not been shipped by the Foundation
to the affiliates as of December 31, 2013, the advances were recorded as deferred revenue at year end
(see note 8).
(j)
Contributed Goods, Services, and Use of Facilities
Contributions of donated noncash assets are recorded at fair value in the period received.
Contributions of donated services that create or enhance nonfinancial assets or that require
specialized skills, are provided by individuals possessing those skills, and would typically need to be
purchased if not provided by donation, are recorded at fair value in the period received. Contributed
goods generally consist of event tickets, toys, videos, DVD’s, and other tangible goods. For the year
ended December 31, 2013, the Foundation received $1,359,260 of contributed goods, services and
use of facilities (see note 5).
10
(Continued)
STARLIGHT CHILDREN’S FOUNDATION
GLOBAL OFFICE
Notes to Financial Statements
December 31, 2013
(k)
Fair Value of Financial Instruments
Fair Value Determination
The fair value of the Foundation’s financial instruments as of December 31, 2013, represents
management’s best estimates of the amounts that would be received to sell those assets in an orderly
transaction between market participants at that date. Those fair value measurements maximize the
use of observable inputs. However, in situations where there are little, if any, observable inputs,
management’s own judgments about the assumptions of market participants were used in pricing the
asset. Although the Foundation uses its best judgment in determining the fair value of financial
instruments, there are inherent limitations in any methodology. Therefore, the values presented
herein are not necessarily indicative of the amount the Foundation could realize in a current
transaction. Future confirming events could affect the estimates of fair value and could be material to
the financial statements. These events could also affect the amount realized upon liquidation of the
investments.
Fair Value Hierarchy
The Foundation’s fair value hierarchy prioritizes the inputs to valuation techniques used to measure
fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for
identical assets (Level I measurements) and the lowest priority measurements involving significant
unobservable inputs (Level III measurements). The three levels of the fair value hierarchy are as
follows:

Level I inputs are quoted prices (unadjusted) in active markets for identical assets that the
Foundation has the ability to access at the measurement date.

Level II inputs are inputs other than quoted prices included within Level I that are observable
for the asset, either directly or indirectly, such as quoted prices for similar assets or liabilities,
quoted prices in markets that are not active, or other observable inputs that can be corroborated
by observable market data.

Level III are unobservable inputs that are supported by little or no market activity and that are
significant to the fair value of the asset.
The level in the fair value hierarchy within which a fair value measurement in its entirety falls is
based on the lowest-level input that is significant to the fair value measurement in its entirety.
Due to the short-term nature of cash equivalents, receivables, other assets, accounts payable and
accrued liabilities, fair value approximates carrying value.
(l)
Income Taxes
The Foundation is exempt from federal income taxes under Section 501(c)(3) of the Internal
Revenue Service Code and corresponding California provisions. However, the Foundation remains
subject to income taxes on any net income that is derived from a trade or business, regularly carried
on and not in furtherance of the purpose for which it was granted exemption. No income tax
11
(Continued)
STARLIGHT CHILDREN’S FOUNDATION
GLOBAL OFFICE
Notes to Financial Statements
December 31, 2013
provision has been recorded as the net income, if any, from any unrelated trade or business, in the
opinion of management, is not material to the financial statements taken as a whole.
ASC Topic 740, Income Taxes (ASC 740), prescribes a recognition threshold and measurement
attribute for the financial statement recognition and measurement of a tax position taken or expected
to be taken in a tax return, and provides guidance on derecognition, classification, interest and
penalties, disclosure, and transition. Management believes that there are no such uncertain tax
positions for the Foundation at December 31, 2013.
(m)
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
the reported amounts of assets and liabilities, revenues and expenses as of the date and for the period
presented. Actual results could differ from those estimates.
(n)
Functional Allocation of Expenses
The costs of providing the Foundation’s programs and other activities have been presented in the
statement of functional expenses. Indirect or shared costs are allocated among program and support
services by a method that best measures the relative degree of benefit.
(3)
Property and Equipment
Property and equipment at December 31, 2013 consist of the following:
Software and computers
Furniture and fixtures
Leasehold improvements
$
621,952
26,555
74,328
Total
722,835
Less accumulated depreciation
Property and equipment (net)
(303,492)
$
419,343
Depreciation expense was $162,279 for the year ended December 31, 2013.
12
(Continued)
STARLIGHT CHILDREN’S FOUNDATION
GLOBAL OFFICE
Notes to Financial Statements
December 31, 2013
(4)
Accounts Payable and Accrued Liabilities
Accounts payable and accrued liabilities at December 31, 2013 consist of the following:
Accounts payable
Accrued payroll
Accrued paid time off
Accrued warranty reserve – fun centers
Other accrued liabilities
Total accounts payable
and accrued liabilities
$
115,013
31,220
45,746
242,581
98,769
$
533,329
The $242,581 warranty reserve relates to Fun Centers purchased from Nintendo of America. The
Foundation is required to repair Fun Centers donated to health care facilities for 3 years after the units are
distributed to the respective facilities.
(5)
Contributed Goods, Services and Use of Facilities
Contributed goods, services, and use of facilities revenues during the year ended December 31, 2013 are as
follows:
Donated professional services
Donated materials and supplies
Donated use of facilities
Total
(6)
$
778,395
419,836
161,029
$
1,359,260
Temporarily Restricted Net Assets
Temporarily restricted net assets are comprised for the following as of December 31, 2013:
Purpose restrictions
Time restrictions
(7)
$
146,644
144,152
$
290,796
Defined Contribution Pension Plan
The Foundation maintains a 403(b) defined contribution pension plan with no matching contributions.
13
(Continued)
STARLIGHT CHILDREN’S FOUNDATION
GLOBAL OFFICE
Notes to Financial Statements
December 31, 2013
(8)
Related Party Disclosures
As of and for the year ended December 31, 2013, the combined U.S. Chapters’ financial results (excluding
the Foundation, the financial results of which are presented in the accompanying financial statements) were
as follows:
Not Covered by
Accompanying
Independent
Auditors’ Report
(unaudited)
Total assets
$
4,075,784
Total liabilities
$
263,331
Total net assets
$
3,812,453
Total revenues
$
6,065,454
Total expenses
$
6,602,360
The accounts of the Foundation’s International Affiliates are not included in the accompanying 2013
financial statements. The following table summarizes certain financial information from the audited (by
other auditors) financial statements of the International Affiliates.
Not Covered by Accompanying
Independent Auditors’ Report
United
Kingdom
Affiliate as of
and for the
year ended
March 31,
2013 (GEP)
Australia
Affiliate as of
and for the
year ended
December 31,
2013 (AUS)
Canada Affiliates
Quebec
Ontario
Affiliate as
Affiliate as
of and for the
of and for the
year ended
year ended
March 31,
September 30,
2013 (CAD)
2013 (CAD)
Total assets
$
12,853,742
£
9,908,812
$
550,054
$
2,434,032
Total liabilities
$
2,064,514
£
303,099
$
222,265
$
646,746
Net assets
$
10,789,228
£
9,605,713
$
327,789
$
1,787,286
Total revenues
$
26,300,409
£
9,946,947
$
1,320,581
$
4,246,579
Total expenses
$
25,607,020
£
10,514,013
$
1,448,538
$
4,027,769
14
(Continued)
STARLIGHT CHILDREN’S FOUNDATION
GLOBAL OFFICE
Notes to Financial Statements
December 31, 2013
The Foundation provided Starlight Fun Centers to its U.S. chapters during the year ended December 31,
2013. During this fiscal period, the Foundation received revenue from the U.S. chapters totaling $68,123.
Of that amount, $64,800 were for Starlight Fun Centers. There were no receivables or payables to the
U.S. Chapters at December 31, 2013. The Foundation had received $36,000 from the New York Chapter as
of December 31, 2013 related to future Fun Center purchases which is included in deferred revenue as of
December 31, 2013.
The Foundation also provides Starlight Fun Centers to its Canadian affiliate. During this fiscal period, the
Foundation received revenue for Starlight Fun Centers from the Canadian affiliate totaling $180,000. The
Foundation provided services related to Starbright World to the Australian affiliate and received revenue
from the Australian affiliate of $6,000. Receivables from and payables to International Affiliates were both
zero at December 31, 2013. The Foundation had received $72,000 from its Canadian affiliate as of
December 31, 2013 related to future Fun Center purchases which is included in deferred revenue as of
December 31, 2013.
(9)
Commitments
The Foundation leases certain facilities and equipment under long-term operating lease agreements that
expire through December, 2016. Future minimum lease payments for leases that have a remaining
noncancelable term in excess of one year at December 31, 2013 are as follows.
2014
2015
2016
Total noncancelable lease
commitments
$
6,401
5,724
5,717
$
17,840
Rent expense for the period January 1, 2013 to December 31, 2013 was $12,940.
The Foundation also has certain commitments to Nintendo of America for the purchase of Fun Centers
totaling approximately $333,851 as of December 31, 2013.
(10) Subsequent Events
The Foundation has evaluated events and transactions occurring subsequent to the statement of financial
position date of December 31, 2013 for items that should potentially be recognized or disclosed in these
financial statements. The evaluation was conducted through June 19, 2014, the date these financial
statements were available to be issued.
15