Financial Statement 3/31/2002
HUMANE ANIMAL CARE COALITION, INC.
FINANCIAL STATEMENTS FOR THE YEAR
ENDED MARCH 31, 2002
AND INDEPENDENT AUDITOR'S REPORT
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HUMANE ANIMAL CARE COALITION, INC.
FINANCIAL STATEMENTS
MARCH 31, 2002
TABLE OF CONTENTS
INDEPENDENT AUDITOR'S REPORT
FINANCIAL STATEMENTS
Statement Of Financial Position
Statement Of Activities
Schedule of Functional Expenses
Statement of Cash Flows
Notes To Financial Statements
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MAGRAM, MAG RAM, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
GARY R. MAG RAM, C.P.A.
HOWARD J. MAG RAM, C.P.A.
MEMBERS: AMERICAN INSTITUTE OF C.P.A. 'S
FLORIDA INSTITUTE OF C.PA 'S
- HERBERT M. NEUMAN, C.P.A.
INDEPENDENT AUDITOR'S REPORT
Board of Directors
Humane Animal Care Coalition, Inc.
We have audited the accompanying statement of financial position
of Humane Animal Care Coalition, Inc. (a nonprofit organization)
as of March 31, 2002, and the related statement of activities,
functional expenses, and cash flows for the year then ended.
These financial statements are the responsibility of the
Organization's Management. 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 of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
Management, as well as evaluating the overall financial
statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position
of Humane Animal Care Coalition, Inc. as of March 31, 2002 and
the changes in its net assets and its cash flows for the year
then ended in conformity with accounting principles generally
accepted in the united States.
The schedule of functional expenses is presented for purposes of
additional analysis and is not a required part of the basic
financial statements. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial
statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a
whole.
~~~(/!t~1A
October 10, 2002
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11410 N. Kendall Drive, Suite 207 Miami, Florida 33176 (305) 275-2557 Fax 275-2588
103400 Overseas Highway Suite 204 Key Largo, Florida 33037 (305)451-0444
HUMANE ANIMAL CARE COALITION, INC.
STATEMENT OF FINANCIAL POSITION
MARCH 31, 2002
ASSETS
Cash
Contract receivable
Prepaid expense
Property and equipment, net of
accumulated depreciation
utility deposit
$ 24,901
17,360
2,606
TOTAL ASSETS
25,111
1. 145
$ 71.123
LIABILITY AND NET ASSETS
Accrued payroll
$ 2.117
NET ASSETS
Unrestricted
Temporarily restricted
65,974
3.032
TOTAL NET ASSETS
69.006
$ 71.123
TOTAL LIABILITIES AND NET ASSETS
See accompanying notes to financial statements
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HUMANE ANIMAL CARE COALITION, INC.
STATEMENT OF ACTIVITIES
YEAR ENDED MARCH 31, 2002
UNRESTRICTED NET ASSETS
Donations
Interest
$ 14,825
733
TOTAL UNRESTRICTED SUPPORT
15,558
Net assets released from restrictions
Restrictions satisfied by payments
222.739
TOTAL UNRESTRICTED SUPPORT AND
RECLASSIFICATIONS
238.297
Expenses
Program expenses
Animal control
Spay and neuter
General and administrative
201,254
13,423
13.307
TOTAL EXPENSES
227.984
INCREASE IN UNRESTRICTED NET ASSETS
10.313
TEMPORARILY RESTRICTED NET ASSETS
County contract
Grants
208,316
11.500
TOTAL TEMPORARILY RESTRICTED NET
ASSETS
219,816
Net assets released from restrictions
222.739
DECREASE IN TEMPORARILY RESTRICTED
NET ASSETS
(2.923)
INCREASE IN NET ASSETS
7,390
NET ASSETS - BEGINNING OF YEAR
61.616
S 69.006
NET ASSETS - END OF YEAR
See accompanying notes to financial statements
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HUMANE ANIMAL CARE COALITION, INC.
SCHEDULE OF FUNCTIONAL EXPENSES
YEAR ENDED MARCH 31, 2002
Spay General
Animal and and
Control Neuter Administrative Total
Animal disposal $ 400 $ $ $ 400
Depreciation 5,203 2,564 781 8,548
Educational expense 1,122 1,122
Insurance expense 11,669 11,669
Licenses and permits 70 70
Maintenance and repairs 2,116 2,116
Office expense 3,000 7,272 10,272
Professional fees 5,184 5,184
Salaries, payroll taxes
and employee benefits 146,652 146,652
Supplies 17,554 17,554
Uniforms 1,474 1,474
Utilities and telephone 8,524 8,524
Vehicle expense 3,540 3,540
veterinarian fees
and supplies 10.859 10.859
$ 201. 254 $13.423 $ 13.307 $ 227.984
See accompanying notes to financial statements
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HUMANE ANIMAL CARE COALITION, INC.
STATEMENT OF CASH FLOWS
YEAR ENDED MARCH 31, 2002
CASH FLOWS FROM OPERATING ACTIVITIES:
Increase in net assets
Adjustments to reconcile increase
in net assets to net cash provided
by operating activities:
Depreciation
Changes in Assets and Liabilities
Increase in contract receivable
Decrease in prepaid expense
Decrease in accounts payable
Increase in accrued expenses
NET CASH PROVIDED BY OPERATING ACTIVITIES
CASH FLOWS (USED) BY INVESTING ACTIVITIES:
Purchase of property and equipment
NET INCREASE IN CASH
CASH - BEGINNING OF YEAR
CASH - END OF YEAR
SUPPLEMENTAL CASH FLOW DISCLOSURE OF CASH
INFORMATION AND NON-CASH INVESTING
ACTIVITIES
Cash Flow Information
Interest paid
See accompanying notes to financial statements
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$
7,390
8,548
(17,360)
4,800
(78)
176
3,476
(2,297)
1,179
23,722
$ 24,901
$
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HUMANE ANIMAL CARE COALITION, INC.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED MARCH 31, 2002
NOTE 1 - NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
Nature of Activities
The Humane Animal Care Coalition, Inc. (the Organization) is a
not-for-profit organization incorporated in Key Largo, Florida on
May 7, 1997. Its stated purpose is to provide humane animal care
services for the animals in Monroe County and free spay and
neutering to prevent animal overpopulation.
Basis of Accounting
The financial statements of the Organization have been prepared
on the accrual basis.
Basis of Presentation
Financial statement presentation follows the recommendations of
the Financial Accounting Standards Board in its Statement of
Financial Accounting Standards (SFAS) No. 117, Financial
Statements of Not-for-Profit Organizations. Under SFAS No. 117,
the Center 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.
Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles includes the use of
estimates that affect the financial statements. Accordingly,
actual results could differ from those estimates.
Contributions
The organization accounts for contributions in accordance with
the recommendations of the Financial Accounting Standards Board
in SFAS No. 116, Accounting for Contributions Received and
Contributions Made. In accordance with SFAS No. 116,
contributions received are recorded as increases in unrestricted,
temporarily restricted, or permanently restricted net assets,
depending on the existence or nature of any donor restrictions.
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HUMANE ANIMAL CARE COALITION, INC.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED MARCH 31, 2002
(CONTINUED)
All donor-restricted contributions are reported as increases 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.
Cash and Cash Eauivalents
For purposes of the statement of cash flows, cash equivalents
include time deposits, certificates of deposit, and all highly
liquid debt instruments with original maturities of three months
or less. There were no cash equivalents at March 31, 2002.
Grant and Contract Revenues
Revenues from the grants and contract are recorded based upon
terms of the grantor allotment which generally provide that
revenues are earned when the allowable costs of the specific
provisions have been incurred.
Income Tax Status
Th e 0 r g ani z at ion i s c I ass i fie d a s a S e c t ion 5 0 1 ( c) (3)
Organization under the Federal Internal Revenue Code and
therefore has made no provision for federal income taxes in the
accompanying financial statements. There was no unrelated
business income for the year ended March 31, 2002.
Property and Eauipment
The Organization follows the practice of capitalizing, at cost,
all expenditures for fixed assets in excess of $500. Depreciation
is provided by the straight-line method over the estimated useful
lives of the respective assets ranging from 5 to 39 years.
Pension Plan
The Company has a simplified employee pension plan (SEP).
Contributions to the plan are based upon 15% o~ the total
earnings by eligible employees. For the year ended March 31, 2002
contributions to the plan were $11,455.
NOTE 2 - RESTRICTIONS ON NET ASSETS
Temporarily restricted net assets are available for animal care
in Monroe County, Florida.
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HUMANE ANIMAL CARE COALITION, INC.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED MARCH 31, 2002
(CONTINUED)
NOTE 3 - ALLOCATION OF EXPENSES
The costs of providing the various programs and other 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.
NOTE 4 - PROPERTY AND EQUIPMENT
As of March 31, 2002, the cost of such assets are as follows:
Vehicle
Furniture and equipment
Leasehold improvements
Less accumulated depreciation
$ 18,998
23,475
2.090
44,563
19.452
$ 25.111
Depreciation expense was $8,548 for the year and has been
allocated among the various cost centers in the Schedule of
Functional Expenses.
The Organization has a policy of charging expenditures for
maintenance and repairs to operations as incurred. Expenditures
for betterments and major renewals will be capitalized and
depreciated over their estimated useful lives.
NOTE 5 - RELATED PARTY TRANSACTION
During the fiscal year ending March 31, 2002 the Organization
paid the executive director $6,000 for office allowance.
NOTE 6 - CONTINGENCY
The Organization is subject to county audit examinations to
determine compliance with contract conditions. In the event that
expenditures would be disallowed, repayment could be required.
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