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UNITED WAY OF CAY UGA COUNTY, NC.

AUDITED FINANCIA L STATEMENTS

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For the Years Ended December 31.20 l 3 and 2012


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UNlTED WAY OF CAYUCA COUNTY, INC.

Audited Financial Statements


Independent Auditors· Report on Financial Statements 1

Audited Financial Statements

Statements or Financial Positiou 3

Statements of Activities 4

Statements of Functional Expenses 6

Statements or Cash Flows 8

Notes to Financial Stntcments 9


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PAUL L. Cunov, CPA

RICHARD D. WARD, CPA

CDDY & \ r.\RD,LLP

Cntifird Publ,. Arroun tants

110 Gt:NESEE STRBl!T - St:l1'E 230

AueuRN, N&w YORK 13021

PHON'E 315-253-8424 FAX 315-253-8458

\VW\V,cuddyondwnrdcpa.com


RICHARD L. B&\UCHINE, CPA, MST FRANK L.DEROSA, CPA, CMC



INDEPE DENT AUDITO RS' REPORT ON FINANC IAL STATEMENTS


The Board of Directors

Un ited Way of Cayuga Coumy, I nc. Aubum, New York


We have audited the accompanying financial statemems of the United Way of Cayuga County. Inc. (a nonprofit organization), wltich comprise the statement of financial position as of December 31. 2013 and 2012 and the related statements of activities, funct ional expenses and cash nows for the years then ended. and the related notes to the financial statements.


Management's Res1ionsi bility for the Financial Statemen ts


Management is responsible for the preparat ion and fair presentat ion of these financial statements in accordance with accou nt ing principles generally accepted in the United States of America: tltis includes the design. implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that arc free from material misstatement. whether due to fraud or error.


Aud itor's Responsibility


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Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with audit i ng standards generally accepted in the United States of America. Those standards req uire that we plan and perfonn the audit to obtain reasonable assurance about whether the financial statements arc free of 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 aud itor considers intemal cont rol relevant to the ent ity's preparation and fair presentation of the financial statement s in order to design audit proced u res that are appropriate in the circumstances, but not for the purpose of expressing an opin ion on the efTecti veness of the entity's internal cont rol. Accord i ngly, we express no such opinion . An audit a lso i ncludes evaluating the appropriateness of accou nt i ng policies used and the 1·easo11ableness of signi ficant accounting est imates made by management , as well as evaluat ing the overal l presentation of the financial statements.


We bel ieve that the audit evidence we have obtained is suflicicnt and appropriate to provide a basis for our audit opinion.


- 1-


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Opinion


In our opinion, the financial statemerns referred to above present fairly. in all material respect s. the financial position of the United Way of Cayuga County, Inc. as of December 31, 2013 and 2012, and the changes in its net assets and its cash flows for the years then ended in conformi ty with account ing principles generally accepted in the United States of America.


Respectfully submitted.


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Cuddy & Ward, LLP

Cenified Public Accountants


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Auburn, NY January 29, 2014


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UNITED WAY OF CAYUGA COUNTY, INC. STATEMENTS OF FINANCIAL POSITION

December 31. 2013 and 2012


2013

2012


ASSETS

CURRENT ASSETS

Cash and cash equivalents

$ 604.854

$ 566,613

Pledges receivable, nc1of allowance

757.539

890.274

Gift annui1y receivable

144,747

Fixed assels, net

1,293

2.548

Investments

1,643,190

1,472,128

Deposi1

2,000

2.000


TOTAL ASSETS $ 3. 153. 623 $ 2,933,563 LIABI LITIES AND NET ASSETS

LIABILITIES


Designa1ions payable

$ 21.546

$ 17,495

Accounts payable and accrued expenses

1,162

1 16

Deferred income

14,000

20,000


TOTAL LIABI LITIES 36,708 37,611

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ET ASSETS

Unres1ric1cd net assets:


Undesignaled

489,958

334,397

Board designa1ed

1,643, 1 90

1,472,128

Total unrestricted net assets

2. 1 33.148

1,806,525

Temporarily restricted net assets

983,767

1,089,427

TOTAL NET ASSETS

3. 116,915

2.895.952

TOTAL LIADIUTIES AND

1£T ASSETS

s 3. 153. 623 s 2,933.563


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Sec notes to fi nancial statcmc111s and accountanls' rcpol't

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UNITED WAY OF CAYUGA COUNTY, INC. STATEMENT OF ACTI VITIES

For 1he Year Ended December 31. 2013


TEMPORARILY

2013

UNRESTRICTED

R ESTRICTED

Total


PUBLIC SUPPORT AND REV ENUES

Campaign revenue - 2013 $ 1,145,488 $ s I , 145.488

Campaign pledges - 20 14

1,012,045

1 ,0 12.045

Less: donor designat ions

( 21,546)

( 21.546)

Less: provision for uncollec1iblc pledges

! 58,510)

! 58.510)

Net campaign revenue - 20 l 4

931,989

931,989


Program income


24,250


24,250

01her con1ribU1ions

153,141

153,141

Dona1ions in kind

19,312

19,312

Dcsignmions from other United Ways

31,60I

32,362

63,963

Goven11nen1campaigns

19,385

17,064

36.449

Service fee income

1,545

2,352

3.897

Interest income

3.664

3.664

Ncl i nvcstment income

230,688

230.688

Miscellaneous income

8,079

8.079

01her ne1asse1s released from res1ric1ion

{

52,531 )

52.531)

Less: donor designalions ( 17,495) ( 17.495) Less: provision for uncollec1iblc pledges ( 64,423) 64.423

Released from reslriclion s

( 1,101,319)

( 1. 101.319)

Nel campaign revenue - 2013

1,063,570

( 1,036,896)

26,674



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TOTAL PUBLIC SUPPORT AND REVEXUES 1,555.235 ( 105,660) 1.449,575 EXPENSES

Alloca t ions:

Gross funds awarded 865,400 865,400 Less: donor designa1ions ( 17,495) ( 17.495) Net funds awarded 847.905 847.905

Program services 104,302 104.302

Supponing services 276,405 276.405


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TOTAL EXPENSES 1,228,612 1,228. 612 Cl IANGE IN NET ASSETS 326,623 ( 105,660) 220,963 NET ASSETS AT BEGINNING OF YEAR 1,806,525 l ,089,427 2.895. 952

NET ASSETS AT END OF YEAR $ 2.133.148 s 983,767 s 3. 116,915


Sec notes 10 financial stntemenls and ac.countants' report

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UN ITED WAY OF CAYUGA COUNTY, IN C. STATEM ENT OF ACTIVITIES

For the Ycar Ended December 31. 2012


TEMPORARILY

2012

UNRESTR ICTED

RESTRICTED

Total

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PUBLIC SUPPORT AND REVENU ES

Campaign revenue - 2012 s 1,326,733 $ $ l ,326.733

Less: donor designations ( 19,481) ( 19,48 1)

Less: provision for uncollectible pledges ( 69,612) 69,612


Released from restrictions

( 1.253.539)

( 1.253.539)

ct campaign revenue - 2012

1.237.640

( 1.183.927)

53,713


Campaign pledges - 2013


1,118,814


1,1 18.814

Less:donor designations

( 17,495)

( 17.495)

Less: provision formicollcct iblc pledges

L_ 64,423)

( 64.423)

Net campaign revenue - 20l 3

1,036,896

l . 036,896


Program income


24,700


24,700

Other contributions

7,430

7,430

Donat ions in kind

21.195

21,195

Designations from other United Ways

33,554

31,601

65.155

Government campaigns

23.944

19,385

43,329

Service fee income

1,588

1,545

3.133

Interest income

4,914

4,914

Net investment income

146,098

146.098

Misccllancous income

6,9 16

6.916

Other net assets released from restriction

( 59,086)

( 59,086)

TOTAL PUBLIC SUPPORT AND REVENU ES 1,507,979 ( 153,586) 1.354,393

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EXPENSES

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Allocat ions:


Gross funds awarded Less: donor designations

964,714

964.714

L 19.481)

( 1 9.48 1)

Net funds awarded

945,233

945.233

Program services

1 13,767

1 1 3.767

Supporting services

314,701

314.701


TOTAL EXPENSES


1,373,701



1.373,701

CHANGE IN NET ASSETS

134,278

( 153,586)

( 19.308)

NET ASSETS AT BEGINNING OF YEA R

1,672,247

1.243.0 13

2,915.260

NET ASSETS AT END OF YEA R

$ 1.806.525

$ 1.089,427

s

2,895.952


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Sec notes to financial statements and accou ntants' report

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UN ITED WAY OF CAYUGA COUNTY, Ii'C. STATEM ENT OF FUNCTIONAL EX PENSES

For t he Year Ended December 31 . 2013

PROGRAM SERVICES SUPPORTING SERVICES


Total

Total

Allocation

Other

Program

Organizational

Fund

Supporting

TOTAL

Services Prosrams Services Administ rati on Raising Services 201 3 A l localions/Awards $ 865,400 $ $ 865,400 $ - $ - $ - s 865,400


Less: donor designations

( 17.495)

( 17, 495) - - ( 17, 495)

Subtotal

847,905

847,905

847.905


Professional staff salaries

15,728

27,436

43, 164

93,526

32,251

125,777

168.941

Payrol l taxes

1,266

2,208

3,474

7,528

2,597

10,125

13,599

Employee benefits

2, 30 1

4,015

6,316

13. 688

4, 72 1

18.409

24 ,725

Subtotal

867,200

33,659

900,859

1 14.742

39.569

1 54.31 1

1 .055.170


Community response funding

Community indicators project

9,000

9,000

CA$1I ta x program

- 18,393

18,393

21 1 Init iative

- 1,000

1,000

- . - 9.000 18,393

1,000

Professional fees 6.300 - 6.300 6,300


1,173

285

4 16

214

84

1 17

245

303

3,032

565

339

157

236

1,198

-

-

35,666

13,242

35.666

13,242

2,047 3,220

6,977

2,406

9,383

497 782

1,696

585

2,28 1

725 1,141

2,471

852

3,323

374 588

1,275

440

1,715

146 230

497

170

667

204 321

695

239

934

427 672

1,455

502

1,957

529 832

1 ,802

62 1

2,423

5,289 8,321

18.029

6,217

24.246

986 1,551

3,360

1,159

4.519

592 931

2.017

695

2,712

274 431

936

323

1.259

4 12 648

1,406

485

1.891

2,089 3.287

7,121

2.455

9.576

s 875,564 s 76,643 s 952,207

$ 170.779

$ 105,626

s

276,405

$

Campaign promotions - -

Services in-kind Office expense Telephone

Postage and shipping Conferences and meetings Dues and subscriptions Depreciat ion

Equipment repa irs and renta l Insurance

Rem

Rent in-kind Ut ilit ies Miscella neous

United Way NYS dues United Way Worldwide dues


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TOTAL EX PENSES

See notes to financinl sta tements and accountnnts' repo11

-<>-

35.666

13,242

12.603

3.063

4.464

2.303

897

1,255

2.629

3,255

32.567

6.070

3,643

1 ,690

2,539

12.863


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1,228.612



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UN ITED WAY OF CAYUGA COUNTY, INC. STATEM ENT OF FUNCTIONAL EX PENSES

For the Ycar Ended December 31, 20 12

PROGRAM SERVICES SUPPORTING SERVICES



Allocation Other

Services Proi:ran1s

Total

Total

Program

Organizational

Fund

Supponing

TOTAL

Service s

Admi nistrat ion

Rai sing

Services

2012

llocat ionsf Awnrds $ 964,714 $ - $ 964,714 $ - $ - $ - $ 964,714 Less: do11or dcsignntions ( 19, 481} - ( 19, 481) - ( 19,481)

Subtotal

945,233

-

945,233

-

945,233

A


Professiona l staff salaries

16,095

30,558

46,653

94,946

48,673

143,619

190.272

Payroll taxes

1.309

2,485

3,794

7.722

3,960

1 1 ,682

15,476

Employee benefits

2. 1 16

4, 0 19

6,135

1 2.485

6,402

18.887

25.022

Subtotal

964,753

37,062

1,00 l ,815

1 15.153

59.035

174.188

1,176,003

Community response funding -

Community indicators project

CASH tax program -

211 initiative -

Professional fees

9,181

9,18 1

6,352

6.352

16,867

16,867

1.000

-

1,000

-

3,666


5,597

476

727

644

983

570

870

103

157

367

560

413

630

445

679

5.268

8.043

494

754

495

756

294

449

417

637

1.928

2,943

s

86,042

$ 1,059,000

$

- - 9,181

- - 6,352

- - - 16,867

- 1 ,000

6.100 - 6.100 6,100

Campaign promot ions - - - 43,076 43.076 43,076

Services in-k ind -

Office expense 1 ,931

Telephone 25 1

Postage and shipping 339

Conferences and meet i ngs 300

Dues and subscriptions 54

Depreciation 193

Equipment repairs and rental 217

Insurance 234

Rent 2.775

Rent in-kind 260

Utilities 261

Miscellaneous 155

United Way NYS dues 220

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United Way Worldwide dues 1.0 15

TOTAL EX l't!NSES $ 972,958

1.707 16,413 18,120 18,120

I 1,390 5,838 17,228 22,825

1 ,479 758 2,237 2,964

2,000 1,025 3,025 4,008

1,772 910 2.682 3,552

320 165 485 642

l ,140 584 1,724 2,284

1,282 657 1.939 2,569

1,383 709 2.092 2,771

16.367 8,390 24,757 32,800

1,534 787 2,321 3,075

1,538 789 2,327 3,083

912 467 1,379 1,828

1,296 665 1,961 2.598

5,989 3,071 9,060 12,003


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171 .362 $ 143,339 $ 314,70 1 $ I .373,701

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Sec not es 10 finnncial statements and accountants' rcpo11

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UN ITED WAY OF CAYUGA COUNTY, INC. STATEM ENTS OF CASH FLOWS

For the Years Ended Dccember 31. 2013 and 2012



CASH FLOWS FROM OPERATING ACTIVITIES

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2013 2012

Change in net assets s 220,963 s ( 19,308)

Adjustments to reconcile change in net assets

to net cash provided (used) by operating activities:


Depreciat ion and amortization

1,255

2,284

Realized and unrealized (gain) loss on invest ments Changes in operating assets and liabilities:

( 206,90 1 )

( 1 19,571)

(Increase) decrease in:

Pledges receivable

1 32,735

13,899

Gift annuity receivable

( 144,747)

Increase (decrease) in:

Designations payable

4,051

( 1,736)

Accounts payable and accrued expenses

1.046

( 458)

Deferred rc,·enue

( 6. 000)

20. 000


N ET CASH PROV IDED (USED) BY OPERATING ACTIVITIES


2,402


( 104,890)


CASll FLOWS FROM INVESTING ACTIV ITIES

Acqu isi tion of fixed assets

( 847)

Acqu isi tion of investments

( l .984.040)

( 1,352,750)

Proceeds from sale of investments

2,0 19,872.

1,386,225


NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES


35.839


32,628


NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS


38.241


( 72,262)

CASH AND CASH EQUIVALENTS AT BEGINNI G OF YEAR

566,613

638.875

CASH AND CASH EQU IVALENTS AT EN D OF YEAR

$ 604,854

$ 566,613


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SUPPLEMENTA L DISCLOSURES

Interest paid.cash basis s s _


Taxes paid, cash basis s s -----


See notes to financial statements and accountants' repo11

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UNITED WAY OF CAYUGA COUNTY, INC. NOTES TO flNANCIAL STATEMENTS


NOTE A SUMMARY OF ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES


Organizat ion

The U nited Way of Cayuga County, Inc. is a not-for-profit corporation founded in 1922, whose mission is to increase the organized capacity of people to care for one another. The Organization is affiliated wit h the United Way Worldwide, an international organ ization. The Organization is governed by a volunteer board of directors.


PrognHns

The Organizat ion funds the following programs:



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NOTE A

UNITED WAY 01' CAYUGA COUNTY, INC.

NOTES TO FINANCIAL STATEMENTS


SUMMARY OF ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)


Basis of Account ing

The financial statements of t hc United Way of Cayuga County, Inc. have been prepared on the accrual basis of accounting and, accordingly, reflect a ll significant receivables, payables and other liabilities.


Basis of Presentation

Financial statement presenta tion requires the Organizat ion to repon 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.


Restricted and U nrestricted Revenue and Suppo11

Contribut ions received are recorded as unrestricted, temporarily restricted or permanently restricted suppon,depending on the existence and/or nature of any donor restrictions.


Suppon that is restricted by the donor is reponed as an increase in unrestricted net assets if the rest riction expires in the reponing period in which the support is recognized . All other donor­ restricted support is reported as an increase i n temporarily or permanently restricted net assets, depending on the nature of the rest rict ion. When a restrict ion expire.s, that is, when a stipulated time restriction ends or pmvose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statement of Act ivities as net assets released from restrictions.


Use of Est ima t es

The preparation of financial statements in confonuity with generally accepted accounting principles requires management to make estimates and assumpt ions that affect the reported amounts of assets and liabilit ies and disclosure of contingent assets and liabilit ies at the date of the financial statements and the repo11ed amounts of revenues and expenses during the repo11ing period. Actual results could differ from those est imates.


Fixed Asset s

All acquisitions of fixed assets in excess of $500, and all expendit ures for repairs, maintenanc.e, renewals and betterments that materially prolong the use ful lives of assets are capitalized. Fixed assets are carried at cost or, if donated, at the approxima te fair value at the date of donation . Depreciat ion is computed using primarily the straight-line method.


Invest ments

The Organization carries investments i n marketable securities with readily determinable fair values, and all debt securities, at their fair values in the Statement of Financial Position. Unrealized gains and losses are included in the change in unrestricted net assets in the accompany ing Statements of Activities.


Donations In-Kind


2013

20 12

Facilit ies s

6,070

$ 7,075

Printing

5.838

6.471

Helping hands

6,094

6,043

Food services

I ,3JO

1,606

Tota l s

19,312

$ 2 1, 195


In addit ion, n umerous volunteers have donated sign i ficant amou nts or t ime to the Organizat ion's fundraisi ng campaign and program services. No amounts have been recognized i n the fmancial statements because they did not meet the criteria for recognit ion under generally accepted accounting principles.

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NOTE A


NOTE B


NOTE C

UNITED WAY OF CAYUGA COUNTY,INC.

NOTES TO FINANClAL STATEME TS


SUMMARY OF ORGANIZATION AND SIG IFICANT ACCOUNTING POLICLES (continued)


Advenisi ng Costs

Advenising costs are expensed as incurred and were $7.506 and $12,530 for the yenrs ended December 31, 20 13 and 2012, respect ively.


Governmema l Ca m paign Reve n ue

The Organization is a recipient of campaign revenue from state and federal governmental campaigns. These amounts are reponed separate from general c<impaign revenues.


Income Taxes

Tiic Organization is a not-for-profit corporation organized under the laws of New York State and is exempt from income taxes uoder hllemal Revenue Code Sec. 501(c)3. In addition, the Organizat ion qualifies for !he charitable comribut ion deduct ion under Section 170(b)(l )(a) and has been classified as an organizat ion that is not a private foundation under Section 509(a)(2).


Functional Expenses

Functional expenses have been allocated between program services and supporting services based upon direel expenditures, analysis of personnel rime, space and u1ili1ies for the related ac1ivi1ies.


Supplemental Qisclosures - S1a1emenl of Cash Flows

For the purpose of the S1a1emen1 of Cash Flows, 1hc Organization considers all inves1men1 ins1rumen1s wi1h an original ma1u ri1y of 1hrec months or less 10 be cash equivalems. Operat ing activi1ics reflect in1erest and laxes paid of $-0- on a cash basis for each of t he years ended December 31, 2013 and 2012.


CONCENTRATIONS OF CR EDIT RISK


Cash

The Organi1.a1ion periodically maimains balances a1 financial insti1u1ions in excess of Federal Deposi1 Insurance Corpora1ion limi1s.


Accoun ts Recei vable

Financial i11s1n11nents Iha!potent ia lly su bject the Organizat ion lo concentrations of credit risk consist principally of pledges receivable. The Organ i zation 's abilily to collect 1>ledges receivable may be affoclcd by economic fluct uat ions i n the loca l ity. Concentrat ions of credi1 risk with respect lo pledges receivable are limiled due lo!he large num ber of contributors comprising the Organi1.a1ion·s suppon base. The Organiza1ion has provided for allowances for potenlial pledge losses and such losses have been "iihin 1he Organizalion·s cxpeciaiions.


PLEDG ES RECEIVABLE


Pledges receivable are recorded at fair value and represent amou nts pledged from annual fundraising campaigns t hat arc held from August to December. The Organizat ion provides for an allowance for uncollect i blc pledges based upon the revenues amicipalcd and historic uncollectible amounts. The allowances arc reviewed period ical l y lo determine if adequate. Allowances for uncolleclible pledges were based on 5.50% of 101al campa ign pledges a1 December 31 . 2013 and 20 12. respectively. Pledges recei vable and allowances for uncollectible amoun1s al D<'.Ccmber 31. 2013 and 2012 are as follows:


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NOTE C

UNITED WAY OF CAYUGA COUNTY, INC.

NOTES TO FINANCIAL STATEMENTS


PLEDGES RECEIVABLE (continued)



NOTE D


Unrestricted:

Pledges receivable for prior year campaign (2012/2011) $

Pledges receivable for curreot year campaign (2013/20 12)

716,560

839,489

Less: a llowance for uncollect iblc pledges

(58,510)

(64,423)

658,050

775,066

Net pledges receivable

$ 757,539

$ 890,274

Less: allowance for uncollectible pledges Temporarily restricted:


FIXED ASSETS

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20 13 2012

163,9l2 $ 184.820

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(64,423) (69,612) 99,489 115,208

Fixed assets at December 31, 20 13 and 2012 consisted of the followi ng:


20 13

2012

Equipment

$ 66,753

s

66,753

Less: accumulated depredation

65,460

64,205

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FIXED ASSETS, NET $ 1, 293 s 2,548


NOTE E

INV ESTMENTS


Investments are stated at fair value. The cost and market values consist of the following at December 31, 2013 and 2012:


2013 2012

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Cost Fair Value Cost Fair Value


Cash and cash equivalents

$ 1,227,501

$ 1,227,501

$ 1 13,282

$ 1 13,282

Mutual funds Corporate stocks

256,410

263,549


893,075


952,710

Corporate bonds

153,025

152,140

380,381

406, 136

s 1, 636,936 $ 1,643, 190 $ 1,386, 738 $ 1,472, 128

United Way of Cayuga County, Inc. i nvests in a variety of i ndividual fixed income and equity investments i ncluding common stock, corporate bonds, international bonds and bonds issued by the U nited States Government and its agencie.s. The Organization invested in 13 and -0- mutual funds of which 3 were under water at December 31, 2013.The Orgaiiization invested in -0- and 51 individual securities, of which 3 had a market value below cost as of December 31, 2012. The Organizat ion invested in 6 corporate bonds,of which 5 and -0- had a market value below cost as of December 31, 20 13 and 2012, respectively.The following table shows the investments gross unrealized losses and fair value, aggregated by i nvestment catego1y as of December 31, 20 13 and 20 12. Management bel ieves the decline in market value is temporary in nature as they rellect general market conditions instead of permanen t decline in the value of the individual securit ies.


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UN TEDWAY OF CAYUGA COUNTY,INC.

NOTES TO FINANCIAL STATEMENTS


NOTE E INVESTMENTS (continued)


A su mmary of investments as of December 31, 2013 and 20 12, with fa ir values below cost is summarized as follows:


2013

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Fair Va lue Losses


Fair Value

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2012

Losses

Conunon stock $ $ $ Mutua l funds 38,770 515

99,179 $

2,061

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Corporate Bonds 143, 851 904

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Total $ 182,62I $ 1,4 19 $ Net investment income is summarized as follows:

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99, 179 $ 2,061

2013 2012

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Interest and dividends $ 35,90 I $ 39,659 Net realized and unrealized ga i ns (losses) 206,90 1 119,57 1 Interest expense 14 ( 166)

lnvestrnem fees (12,1 28} ( 12,966} Net investment income (loss) $ 230, 688 s 146,098


NOTE F INVESTMENTS - FAIR VALUE MEASUREM ENTS


Investments are subject to varying degrees of risk and, as such, to market value fluctuation. The Organization, in conjunction with new accounting guidance, expanded the required disclosures pertaining to the methods used to determine fair values, which did not have a material effect on the financial statements.


Account i ng guidance established a three-level fair value hierarchy that priorit izes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of input used to measure fai r value are as follows:

Assets measured at fa ir value on a recurring ba sis are summarized below, by input level:

December 31, 20 I 3


Corporate stocks

$ $

Mutual funds

263,549

263,549

Corporate bonds

152, I 40

152,140

Total

$ 415,689 s

415 ,689

Asse t s


- 13-


Level I

Fair Value

Measurements

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UN ITED WAY Of CAYUGA COUNTY, INC. NOTES TO FINANCIAL STATEMENTS


NOTE G


NOTE H


'OTE I

INVESTM ENT SPENDING POLICY


The Organiza1ion follows a 101al re1um policy for inves1men1eamings 1ha1 amicipa1es a grea1er long· 1erm retum by inves1ing for capirn l apprecia1ion and, as such. accep1s lower current yields for

d ividends and imcrest. In order 10 offset t he impact of lower yields on cu nent operations, a spending policy has been adopted whereby the amount of investment re1urn available 10 supp011oper111ions is de1ennined by applying 4% to the inves1ment market va lue measured over a three year rolling average as of September 30, or $60,000. whichever is grea1er. The amount of inves1mcnt rctum authorized by 1he board of directors to suppon operat ions for the year ended December 31, 2013 and 2012 was S60,000.


GITT AN UITY RECEIVABLE


During 200 I , a donor established an annui ty with Uni1ed Way Worldwide, naming the United Way of Cayuga Cou nty, Inc. as the lead beneficiary of a charitable gilt annui ty. Under tenns of the splil­ i ntercst agrcemcnl, the ann uity p1·ovidcs payment of distribu tions to the donor during the donor·s l i fe1ime. Al 1he t ime of 1he donor's dca1h. the trust is to term i nate and remaining trust assels arc to be

distributed 101he Uni1ed Way of Cayuga County. Inc. Based on donor life expectancy and the use of 5.6% discounl rate, 1he present value or fomre benefits expected to be received by 1hc Organizaiion was es1ima1ed 10 be $106,163, which was reported in 2001 as a temporarily restricled contribut ion and a con1ribution receivable from a charitable gift annuity. The presen1 value of future benefits expected 10be received by the Organiu11ion is S-0-, during the years ending 2012 and 201 I.


A second annuity was established during 2002, wilh t he United Way of Cayuga County, lnc. as 1he lead beneficiary of t he charitable gill ann u il y, u nder the same terms as the original gi ll annu i1y. Based on donor l i fe expectancy and the use of a 4.2% discount rate 1he presen t va lue or future benefi ts expected to be received by the Organization was estimated 10 be $77,942 which was reported in 2002 as a 1emporarily restricted contribut ion and a contribut ion receivable from a charitable gill annuity. The present value of future benefits expec1ed to be received by the Organization is S-0-. during 1he years ending 2013 and 2012.


COMM ITM ENTS


Alloca1io 11s

The Board of Directors approved a budget for 2014 and 2013 agency base allocations of $769.246 and $851.653, respectively, which is approximately 1hc amount of the 20 13 and 2012 pledges adjus1ed for u ncollec1ible pledges and general and administrat ive costs.



Pledges

Suppleme111 (to)lfrom reserves

2013 2012


s


1.063,823

s


1,171,345

$

1,063,823

$

1.171,345


$


769,246

s


851 ,653


1.000


1,000

212.765

234,269

58,510

64,423

22,302

20,000

$

1,063, 823

s

1,171.345

-14-

Distribut ion:

Agency base alloca1ions Commu nity initiatives Community response gram fund 2-1-1 lnitia1ive

General and administrative costs Allowance for uncollectible pledges Outside designat ions



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NOTE !


NOTE J


NOTE K

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UNITED WAY OF CAYUGA COUNTY, INC. NOTES TO FINANCIAL STATEMENTS

COMMITM ENTS (continued) Leases

The Organizaiion entered into a lease for rental of office space, effective January I, 2007, for seven

years. On January 28, 2014, the Organizat ion signed an amendment to to the lease for office space, as described in Note M. In addition, the Organization also leases office equ ipment, beginning September I , 201 1 for five years.


Rent expense amounted to $34,776 and $32,800 for the years ending 2013 and 2012, res1:>ectively . This amount does not renect the area the lessor is donating to the organization.


Future mi nimum lease payments are as follows:


2014

$ 2,028

20 15

2,028

2016

1,352

Total

$ 5,408


RETIREME IT PLANS


403(bl Thrift Plan

On May I, 2009 the United Way of Cayuga County terminated its Defined Contribution Plan and Tax Defen-ed Annuity Plan, aud adopted a 403(b) Thrift Plan. The plan covers all full time employees who have attained the age of 2 1, and have satisfied the minimu m service requirement of one year. Employer base contributions will be 6% of each part icipant 's compensation. Total Employer contributions for the year ended December 31, 2013 and 2012 were $10,763 and SI 0,403, respectively. El igible employees may also elect to pai1icipate in the salary reduction portion of the plan, directing the U nited.Way to contribute a po11ion of their compensation to the 403(b) Thrift Plan on their behalf. Employee contributions to the plan are allowed up the maximum allowed by the Internal Revenue Code.


RESTRICTIONS ON ASSETS


The composition of temporarily resuicted net assets at December 3I,20 13 and 2012 is as follows:


20 13

20 12


Campaign pledges


$ 1,063,823


$ 1,17 1,345

Less: allowance for uncollectible pledges

(58,5[0)

(64,423)

Designations payable

(21,546)

(17,495)

Temporari ly restr icted net assets

$ 983,767

s 1,089,427


" 15-

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UNITED WAY OF CAYUGA COUNTY, INC.

NOTES TO FINANCIAL STATEMENTS


NOTE K

RESTRICTIONS ON ASSETS (continued)


In addition to these funds wh ich have been temporari ly restricted by donors, the Organization 's Board of Directors has set aside the following unrestricted net assets for the pmvoses descri bed below:



Set aside for long-tenn investment, with a specified amount of income to be used

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2013 2012

to support operations $ 1.643.I 90 S I ,472,128


Total board designated funds included in

unrestricted assets $ 1,643,I 90 $ 1,472,128


NOTE L


NOTE M

UNCERTAINTY IN INCOME TAXES


The Organization files informational returns i n the U.S. Federal and New York State ju risdictions. The Organization has not been informed of any tax examinations by either the I.ntemal Revenue Service (IRS) or New York State tax authorities for any years not barred by statute of limitations.


The Organization has adopted the provisions of the Financial Accounting Standards Board (FASB) Account ing Standards Codification (ASC) No. 740 "Income Taxes .. as amended by FASB Accounting Standards Update (ASU) No. 2009-06, "!111ple111e111a1ion Guidance 011 Acco1111ti11g for U11cer1ai111y in Income Toxes and Disclosure A111e11d111e1!(s for No11p11b/ic Emi1ies " effective January I , 2009. As of January I , 2009, management has detennined there were no liabilities for unrecognized tax benefits as a result of the implementation of FASB ASC No. 740, as amended. Furthermore, management has est imated that there are no material unrecognized tax benefits for either the U.S. Federa l or New York State ju risdictions for which it is subject 10 reporting as of December 31, 20 13.


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The Organization has not recognized any interest or penalties related to unrecognized tax benefits in the statement of activities nor has it acciued any in the statemen.t of financia l position as of December 31, 2013.


SUBSEQUENT EVENTS


The Organization has evaluated events and transactions that occurred bet ween January I , 2013 and January 30, 20 14, which is the date the financial statements were available to be issued, for possible disclosure and recognition in the financial statements. Subsequent to year end, the Organization signed an extension on their office lease agreement through December 2018. Future minimum lease payments are as follows:


Year Ended Decmeber 31

2014

$ 30,000

2015

30,800

2016

31,600

2017

32,400

2018

33,200

Total

$ 158,000


-16-

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PAUL L.Cuoov, CPA

RICHARD D. WARD, CPA

CrDDY & \\TARD , LLP

Certified Public Acrountants

110 GENESEE STREET - SU TE 230 AUBURN,NEW YORK 13021

PHONE 315-253-8424 FAX 315-253-8458

\\'\11\\1.cuddyandwardcpa.coJn


RICHARD L. BEAUCHINE , CPA, MST

FRANK L. DEROSA, CPA, CIC



January 30, 2014

To the Board of Direc1ors

United Way of Cayuga County, Inc.

We have audi1ed the financial statements of United Way of Cayuga County, Inc. for the year ended December 31, 2013, and have issued our report !hereon da1ed January 30, 20 14. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards (and, if applicable, Govemme/l/ Auditing Stondards and OMB Circular A-133), as well as certain information related to the planned scope and timing of our audit. We have communicated such infonnation in our letter to you da1ed .January 7, 20 14-: Professional standards also require that we communica te to you the following information related to our audit.

Significant Audit Findings

Qualitative Aspects of Accounting Practices

Management is responsible for the selection and use of appropriate accou nting policies. The significant accounting policies used by United Way of Cayuga County, Inc. are described in Note A to the financial statements. No new accounting policies were adopted and the appl ication of existing policies was not changed during 2013. We noted no transactions entered into by the Organ ization during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial s1a1ements in the proper period.

Accounting estimates are an integral part of the financia l statemen1s prepared by management and are based on management 's knowledge and experience about past and current events and assumpt ions about future events. Certain accouming estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. There were no sensitive est imates affecting the financial statements.

Certain financial siatemem disclosures are particularly sensitive because of their signi ficance to financial statement users. There were no sensitive disclosures affecting the financial statements.

The financial statement disclosures are neutral, consistent, and clear.

D!l]iculties Encowzu:red in Pe1.fi>rming tlte Audir

We encountered no signi ficant difficulties i n dealing with management in perfonning and completing our audit.

Correc:letl 111ul Uncorrectetl Missu11e111e111s

Professional standards require us to accumulate all misstatements identified during the audit, other than those that are clearly trivial, and communica1e them 10 the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a resu lt of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statementstaken as a whole.

Disagree1nenls 11;i1h Ma11agenu:111

For purposes of t his letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements aroseduring the course of om·audit.

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Ma11agemem Represe111mio11s

We have requested certa in representations from nrnnagement that are included in the management representa tion letter dated January 30, 2013.

Ma11age111e111 Co11s11/u11io11s u·i1h Oilier lndepe111/e11t Accou11ta111s

In some cases, management may decide to consult with other accountants about auditing and account ing matters, similar to obtaining a ' second opin ion" on certain situations. If a consultation i nvolves applicat ion of an accounting principle to the Organizat ion's financial statements or a determination of the type of auditor's opin ion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to detennine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

01/1er AudiIFindings or Issues

We generally discuss a variety of matters, including the application of accounting principles and audit ing standards, with management each year prior to retention as the Organ ization's auditors. However , these discussions occurred in the nonnal course of our professional relationsh ip and our responses were not a condition to our retention.

Other Matters

With respect to the supplementary information accompanying the financial statements, we made ce11ain inquiries of management and evaluated the form, content, and methods of preparing the infonnation to determ i ne that t he information complies with U.S. genet'ally accepted accouming principles, the method of preparing it has not changed from the prior period, and t he infonnat ion is appropriate and complete i n relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

This infonnation is intended solely for the use of the Board of Directors of United Way of Cayuga County, Inc. and is not intended to be, and should not be, used by anyone other than these specified pa11ies.

Very truly yours,


Cuddy & Ward, LLP Certified Public Accountants

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PAUi. L.CUDDY, CPA RICHARD D. WARD, CPA

CIC'DDY & 1\VARD,LILP

Ctrt ifird Puhlir Accountants

110 G&NESEE STREET - Sum:230

Avo1;R>1, New YoRK 13021

PHOJ<E 315-253-8424 FAX 315-253-8458

www.cuddyandwardcpa.com


RICHARD L.Bt:AUCHINE, CPA, MST

FRANK L. DERoSA, CPA, C IC


The 13oard of Directors

United Way of Cayuga County, Inc. Auburn, New York 1302 1


In planning and perfonning our audit of the financia l statements of United Way of Cayuga County, Inc. as of and for the year ended December 31, 20 13, in accordance with auditing standards generally accepted in the United States of America, we considen'.<1 United Way of C<lyuga County. lnc s internal control over financial reponing as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements. but not for the purpose of expressing an opinion on the effectiveness of the Organi.u1t ion·s internal control. Accordingly. "e do not express an opinion on the effcct i,enessof the Organization 's internal control.


A deficiency in i nternal control exists when t he design or operation of a control does not allow management or employees, in the nonnal course of perforn1ing t heir assigned functions, to prevent or detect misstatements on a timely basis. A nl(l!crial weakness is a deficiency, or combination of deficiencies in imcrnal cont rol , such that there is a reasona ble possibil ity t hat a material m isstatement of the ent ity's financial statements will not be prevented, or detected and corrected on a timely basis.


Our consideration of internal control was for the limited purpose described in the first 1>aragraph and was not designed to ident i fy al l deficiencies in internal control that might be significant deficiencies or material weaknesses and, therefore, there can be no assurance that all such deficiencies have been identified. We did not identify any deficiencies in internal control that we consider to be material weaknesses.


This communicat ion is intended solely for the infom1ation and use of management, the board of directors.and others within the organization and is not intended to be and should not be used by anyone other than these specified pan.ies.


We would like to take this opponunity to thank management and staff for their cooperation wit h us during the course of our exam i nat ion. If we can be of funher assistance. please contact us at your convenience.


Respectfu l l y Submitted ,


  1. afUIJ1d <!- LJ.Jaflcl ,&JiP

    CU DDY & WARD, LL P

    Cenified Public Accountants


    Feb111ary 1 1.20 14 Aubu m, New York

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    UNITED WAY OF CAYUGA COUNTY, INC.

    Memorandum of Significant Deficiencies December 31, 2013


    1. Preparation of Financial Statements


Under current accounting standards, it is considered an internal control deficiency if the Organization cannot prepare its financial statements, including full footnote disclosures. Currently, the Organization does not have staff with the expertise to prepare the financial statements. The Organization is aware of th is issue and feels that it is not cost effective to have this control in place and will continue to rely on the auditor prepared financial statements.


2. Internal Control over Credit Cards


During the audit process, it was detennined that there is no formal process with regard to credit card purchases. It is our recommendation that the Organization develop and adopt a pol icy, where corporate credit cards are kept locked in the safe, and are signed out when an appropriate business purpose is determined. In addition, the Organization should adopt a policy about personal use of credit cards, and appropriate supporting documentation of credit card charges.