LITERACY PARTNERS, INC.

[Pages:16]LITERACY PARTNERS, INC.

FINANCIAL STATEMENTS AND REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

JUNE 30, 2016 AND 2015

LITERACY PARTNERS, INC.

TABLE OF CONTENTS

REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

FINANCIAL STATEMENTS Statement of Financial Position, June 30, 2016 and 2015 Statement of Activities and Changes in Net Assets, Year ended June 30, 2016 with Summarized Information for 2015 Statement of Functional Expenses, Year ended June 30, 2016 with Summarized Information for 2015 Statement of Cash Flows, Years ended June 30, 2016 and 2015 Notes to Financial Statements

Page 1-2

3 4 5 6 7

REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

To the Board of Directors of Literacy Partners, Inc. New York, New York

We have audited the accompanying consolidated financial statements of Literacy Partners, Inc. (the "Organization"), which comprise the statement of financial position as of June 30, 2016 and the related statements of activities and cash flows for the year then ended, and the related notes to the financial statements.

Management 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 organization'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 Organization'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 Literacy partners, Inc. as of June 30, 2016, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

1

To the Board of Directors of Literacy Partners, Inc. New York, New York Report on Summarized Comparative Information We have previously audited Literacy Partners, Inc.'s 2015 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated October 30, 2015. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2015 is consistent, in all material respects, with the audited financial statements from which it has been derived. Philadelphia, Pennsylvania December 12, 2016

2

LITERACY PARTNERS, INC.

STATEMENT OF FINANCIAL POSITION

June 30, 2016 And 2015

ASSETS Cash Investments (Note 3) Accounts receivable and other assets Contributions receivable Grants receivable Prepaid expenses Inventory (Note 2) Equipment, net of accumulated depreciation of $276,828 in 2016 and $258,652 in 2015 Security deposit Total assets

LIABILITIES Accounts payable and other accrued expenses Deferred Rent (Note 4) Total liabilities

NET ASSETS (Note 5) Unrestricted Operations Board designated Total unrestricted net assets Temporarily restricted Permanently restricted Total net assets Total liabilities and net assets

2016

$ 649,863 5,519,525 2,346 17,000 23,900 7,295 -

44,558 63,750

$ 6,328,237

2015

$ 741,314 6,041,316 2,723 50,100 42,489 7,115 112,767

29,803 20,000

$ 7,047,627

$ 34,577 79,114

113,691

$ 12,884 -

12,884

749,858 167,467

917,325

36,119 5,261,102

6,214,546

$ 6,328,237

1,048,264 183,121

1,231,385

542,256 5,261,102

7,034,743

$ 7,047,627

See accompanying notes to financial statements.

3

4

LITERACY PARTNERS, INC.

STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS For The Year Ended June 30, 2016 With Summarized Information For 2015

REVENUES Public Support Foundation grants Community partnership grants Corporate contributions Individuals Government contracts Contributions in-kind Total public support

Other Revenue Fund raising events, net of direct benefit to donors of $161,693 in 2016 and $115,256 in 2015 Investment income Investment return designated for current operations (Note 3) Other revenue Total other revenue Total public support and other revenue

EXPENSES Program services Supporting services Management and general Fundraising Total supporting services Total expenses

Excess of revenues over expenses

Other Changes Investment return in excess of amounts designated for current operations (Note 3) Transfers

Change in net assets

Net Assets Beginning of year

End of year

See accompanying notes to financial statements.

UNRESTRICTED

Board

Operations Designated

Total

$ 278,000 $

-

$ 278,000

734

-

734

10,100

-

10,100

153,966

-

153,966

49,991

-

49,991

589,301

-

589,301

1,082,092

-

1,082,092

843,151 4

425,000 6,051

1,274,206 2,356,298

1,800,422

343,357 510,925 854,282 2,654,704

(298,406)

-

843,151

-

4

-

425,000

-

6,051

-

1,274,206

-

2,356,298

-

1,800,422

-

343,357

-

510,925

-

854,282

-

2,654,704

-

(298,406)

-

(298,406)

(15,654) -

(15,654)

(15,654) -

(314,060)

1,048,264 $ 749,858

183,121 $ 167,467

1,231,385 $ 917,325

Temporarily Permanently

Restricted

Restricted

2016

2015

$

-

$

- $ 278,000 $ 167,950

-

-

734

27,031

-

-

10,100

25,500

-

-

153,966

277,278

-

-

49,991

90,000

-

-

589,301

205,332

-

-

1,082,092

793,091

-

-

843,151

926,014

-

-

4

5

-

-

425,000

350,000

-

-

6,051

1,020

-

-

1,274,206 1,277,039

-

-

2,356,298 2,070,130

-

-

1,800,422 1,178,756

-

-

343,357

355,326

-

-

510,925

354,348

-

-

854,282

709,674

-

-

2,654,704 1,888,430

-

-

(298,406)

181,700

(506,137) -

(506,137)

542,256 $ 36,119

-

(521,791) (333,075)

-

-

-

-

(820,197) (151,375)

5,261,102 $ 5,261,102

7,034,743 $ 6,214,546

7,186,118 $ 7,034,743

LITERACY PARTNERS, INC.

STATEMENT OF FUNCTIONAL EXPENSES For The Year Ended June 30, 2016 With Summarized Information For 2015

Salaries Payroll taxes and benefits Contributions in-kind

Instruction and facility Books Program video Other Instructional and testing materials Occupancy Telephone Printing/postage Office supplies and equipment Travel and conferences Professional fees Fund-raising / special events Insurance Consultants/outside services Computer expenses Staff development Miscellaneous Depreciation

Total Expenses - 2016

Total Expenses - 2015

Educational Support

$ 449,697 107,637

316,869 88,616 1,157 100,054 6,585 1,458 7,155 2,447 10,915 7,420 5,966 269 10,837 -

$ 1,117,082

$ 843,589

Program Services

Basic

Family

Educational Literacy

Centers

Centers

$ 214,873 51,431

$ 84,658 20,264

2016

Total Program $ 749,228

179,332

68,951 112,767

709 47,808 3,146 998 2,664 3,749 5,216 30,000 2,851 219 -

$ 545,382

$ 145,324

110 18,836 1,240 847 4,365 44 2,055 1,123 4,416 -

$ 137,958

$ 189,843

68,951 112,767 316,869

88,616 1,976 166,698 10,971 3,303 14,184 6,240

18,186 37,420 9,940 269 15,472 -

$ 1,800,422

$ 1,178,756

Support Services

General And Administrative Fundraising

Total

$ 132,673 31,756

$ 127,548 30,529

$ 1,009,449 241,617

20,450 133 29,519 1,943 2,884 13,557 2,027 35,400 3,220 9,198 1,760 1,120 39,541 18,176

$ 343,357

$ 355,326

94,415 28,379 1,868 28,672 6,728 192 122,819 3,096 52,641 1,692 1,145 11,201 -

$ 510,925

$ 354,348

68,951 112,767 316,869 203,481

2,109 224,596

14,782 34,859 34,469 8,459 35,400 122,819 24,502 99,259 13,392 2,534 66,214 18,176

$ 2,654,704

2015

Total

$ 833,585 195,828

92,565 -

2,296 246,156

17,477 24,463 26,939 7,041 24,825 199,831 27,700 99,064 17,136 4,070 49,707 19,747

$ 1,888,430

5

See accompanying notes to financial statements.

LITERACY PARTNERS, INC.

STATEMENT OF CASH FLOWS

June 30, 2016 And 2015

CASH FLOWS FROM OPERATING ACTIVITIES Increase in net assets Adjustments to reconcile increase in net assets to net cash provided by operating activities Depreciation Realized and unrealized losses on investments (Increase) decrease in current assets Accounts receivable and other assets Prepaid expenses Inventory Security Deposit Increase (decrease) in liabilities Accounts payable and accrued expenses Deferred rent Net cash provided by (used for) operating activities

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of investments Purchase of investments Purchase of furniture, fixtures and equipment Net cash provided by investing activities

Net increase (decrease) in cash

CASH Beginning of year End of year

2016 $ (820,197)

2015 $ (151,375)

18,176 344,839

52,066 (180)

112,767 (43,750)

21,693 79,114 (235,472)

1,519,250 (1,342,298)

(32,931) 144,021

(91,451)

19,747 289,325

302,862 31,601 (112,767)

-

(41,568) -

337,825

1,300,791 (1,257,040)

(7,179) 36,572

374,397

741,314 $ 649,863

366,917 $ 741,314

See accompanying notes to financial statements.

6

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download