Fillable Printable Financial Statement Template
Fillable Printable Financial Statement Template
Financial Statement Template
Galapagos Conservancy
Financial Report
March 31, 2013
Contents
Independent Auditor’s Report
1
Financial Statements
Balance Sheet
2
Statement Of Activities
3
Statement Of Functional Expenses
4
Statement Of Cash Flows
5
Notes To Financial Statements
6 – 12
1
Independent Auditor’s Report
To the Board of Directors
Galapagos Conservancy
Fairfax, Virginia
Report on the Financial Statements
We have audited the accompanying financial statements of Galapagos Conservancy which comprise the
balance sheet as of March 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 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 audits. We
conducted our audits 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 involves performing
procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a reasonable
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 Galapagos Conservancy as of March 31, 2013, 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.
Vienna, Virginia
May 29, 2013
2
Galapagos Conservancy
Balance Sheet
March 31, 2013
Assets
Current Assets
Cash and cash equivalents 384,231 $
Prepaid expenses 117,079
Inventory 14,230
Total current assets
515,540
Investments 4,516,147
Property And Equipment
Furniture 2,266
Equipment and software 78,705
80,971
Less accumulated depreciation (36,410)
44,561
5,076,248 $
Liabilities And Net Assets
Current Liabilities
Accounts payable and accrued expenses 34,081 $
Grants payable 696,538
Total current liabilities
730,619
Commitments
Net Assets
Unrestricted 1,577,277
Temporarily restricted 296,539
Permanently restricted 2,471,813
4,345,629
5,076,248 $
See Notes To Financial Statements.
3
Galapagos Conservancy
Statement Of Activities
Year Ended March 31, 2013
Temporarily Permanently
Unrestricted Restricted Restricted Total
Revenue and support:
Contributions 1,557,453 $ 680,534 $ 38,625 $ 2,276,612 $
Investment income 347,639 - 347,639
Sales 22,355 - - 22,355
Net assets released from
restrictions 521,567 (521,567) - -
Total revenue and support 2,449,014 158,967 38,625 2,646,606
Expenses:
Program services:
Strategic Partnerships 835,979 - - 835,979
Allocated program costs 458,396 - - 458,396
Ecosystem Restoration 357,642 - - 357,642
Sustainable Society 270,214 - - 270,214
Cost of goods sold 12,155 - - 12,155
1,934,386 - - 1,934,386
Support services:
Management and general 198,217 - - 198,217
Fundraising 530,813 - - 530,813
Total expenses 2,663,416 - - 2,663,416
Change in net assets (214,402) 158,967 38,625 (16,810)
Net assets:
Beginning 1,791,679 137,572 2,433,188 4,362,439
Ending 1,577,277 $ 296,539 $ 2,471,813 $ 4,345,629 $
See Notes To Financial Statements.
4
Galapagos Conservancy
Statement Of Functional Expenses
Year Ended March 31, 2013
Total Management
Environmental Outreach Program And
Programs Programs Services General Fundraising Total
Grants 1,463,835 $ -$ 1,463,835 $ -$ -$ 1,463,835 $
Salaries, benefits and taxes 235,898 - 235,898 101,893 123,655 461,446
Consultants 65,932 - 65,932 39,542 50,287 155,761
Printing - 21,584 21,584 - 111,498 133,082
Postage and shipping 4,704 17,880 22,584 2,821 77,835 103,240
Mail house - 3,897 3,897 - 61,571 65,468
Professional fees 25,219 - 25,219 15,125 18,355 58,699
Rent 24,402 - 24,402 14,635 17,761 56,798
Investment and management fees 11,977 - 11,977 7,242 8,635 27,854
Travel 19,394 2,020 21,414 1,652 3,338 26,404
Telemarketing - - - - 20,158 20,158
Cost of goods sold 12,155 - 12,155 - - 12,155
Premiums - - - - 11,476 11,476
Bank and caging fees 4,604 - 4,604 2,761 3,351 10,716
Depreciation 4,221 - 4,221 2,552 3,043 9,816
Permits 4,111 - 4,111 2,466 2,992 9,569
Dues and subscription 3,444 - 3,444 2,066 2,507 8,017
Computer and website expense - - - - 7,722 7,722
Office supplies 2,725 - 2,725 1,634 1,983 6,342
Miscellaneous 2,094 - 2,094 1,256 1,524 4,874
Telephone 1,720 - 1,720 1,031 1,252 4,003
Payroll fees 1,221 - 1,221 732 889 2,842
Insurance 993 - 993 595 722 2,310
Training 356 - 356 214 259 829
1,889,005 $ 45,381 $ 1,934,386 $ 198,217 $ 530,813 $ 2,663,416 $
See Notes To Financial Statements.
Support Services
Program Services
5
Galapagos Conservancy
Statement Of Cash Flows
Year Ended March 31, 2013
Cash Flows From Operating Activities
Change in net assets (16,810) $
Adjustments to reconcile change in net assets to
net cash used in operating activities:
Depreciation 9,816
Realized and unrealized gain on investments (187,322)
Contributions received for permanent endowment (38,625)
Changes in assets and liabilities:
(Increase) decrease in:
Prepaid expenses 14,899
Inventory (1,666)
Increase (decrease) in:
Accounts payable and accrued expenses 14,169
Deferred revenue (62,750)
Grants payable 180,722
Net cash used in operating activities
(87,567)
Cash Flows From Investing Activities
Proceeds from sale of investments 1,753,764
Purchase of property and equipment (21,107)
Purchases of investments (1,800,868)
Net cash used in investing activities
(68,211)
Cash Flows From Financing Activities
Contributions received for permanent endowment 38,625
Net decrease in cash and cash equivalents
(117,153)
Cash And Cash Equivalents
Beginning 501,384
Ending 384,231 $
See Notes To Financial Statements.
Galapagos Conservancy
Notes To Financial Statements
6
Note 1. Nature Of Activities And Significant Accounting Policies
Nature of activities: Galapagos Conservancy (the Conservancy) is a not-for-profit organization
incorporated under the laws of Delaware. The objectives of the Conservancy are to promote science,
conservation and environmental education in the Galapagos Islands and other island ecosystems.
A summary of the significant accounting policies of the Conservancy follows:
Basis of accounting: The financial statements are prepared on the accrual basis of accounting, whereby,
revenue is recognized when earned and expenses are recognized when incurred.
Basis of presentation: The Conservancy follows the Not-for-Profit Topic of the FASB Accounting
Standards Codification (the Codification). Under this topic, the Conservancy 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.
Cash and cash equivalents: For the purpose of reporting cash flows, the Conservancy considers all highly
liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.
Financial risk: The Conservancy maintains its cash balances in bank deposit accounts which, at times,
may exceed federally insured limits. The Conservancy has not experienced any losses in such accounts.
The Conservancy believes it is not exposed to any significant credit risk on cash.
The Conservancy invests in shares of equity mutual funds (Note 2). Such investments are exposed to
various risks, such as market and credit. Due to the level of risk associated with such investments and the
level of uncertainty related to changes in the value of such investments, it is at least reasonably possible
that changes in risks in the near term would materially affect investment balances and the amounts
reported in the financial statements.
Inventory: Inventory is available for sale to members and the general public and is recorded at the lower
of cost using first-in, first-out basis, or market.
Investments: Investments with readily determinable values are recorded at fair value. Unrealized gains
and losses are reported in the statement of activities as part of investment income.
Property and equipment: Property and equipment purchases are recorded at cost and, if donated at fair
value, depreciation is computed on the straight-line basis over their estimated useful lives. All property
and equipment purchases with an estimated useful life over one year and cost greater than $500 are
capitalized.
Restricted and unrestricted revenue: Contributions received are recorded as unrestricted, temporarily
restricted or permanently restricted revenue, depending on the existence and/or nature of any donor
restrictions.
All donor-restricted revenue is reported as an increase in temporarily or permanently restricted net assets,
depending on the nature of the restriction. When a restriction expires (that is, when a stipulated time
restriction ends or purpose of 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.
Unconditional promises to give are measured at fair value and reported as increases in net assets.
Conditional promises to give are recognized when the conditions on which they depend are substantially
met.
Galapagos Conservancy
Notes To Financial Statements
7
Note 1. Nature Of Activities And Significant Accounting Policies (Continued)
Functional 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. Costs which could be directly
identified with a specific program were charged to that program, but items for general use or not directly
identifiable were allocated to each program based on direct labor hours.
Income taxes: The Conservancy is exempt from income taxes on income derived from any sources
related to its exempt purposes under Section 501(c)(3) of the Internal Revenue Code (IRC). Income
which is not related to exempt purposes, less applicable deductions, is subject to federal and state
corporate income taxes. The Conservancy had no unrelated business income for the year ended
March 31, 2013. In addition, the Conservancy has been determined by the Internal Revenue Service not
to be a private foundation as defined in IRC Section 509(a)(2).
The accounting standard on accounting for uncertainty in income taxes, which addresses the
determination of whether tax benefits claimed or expected to be claimed on a tax return should be
recorded in the financial statements. Under this guidance, the Conservancy may recognize the tax benefit
from an uncertain tax position only if it is more likely than not that the tax position will be sustained on
examination by taxing authorities, based on the technical merits of the position. The tax benefits
recognized in the financial statements from such a position are measured based on the largest benefit
that has a greater than 50% likelihood of being realized upon ultimate settlement. The guidance on
accounting for uncertainty in income taxes also addresses de-recognition, classification, interest and
penalties on income taxes, and accounting in interim periods.
Management evaluated the Conservancy’s tax positions and concluded that the Conservancy had taken
no uncertain tax positions that require adjustment to the financial statements to comply with the
provisions of this guidance. With few exceptions, the Conservancy is no longer subject to income tax
examinations by the U.S. federal, state or local tax authorities for years before 2010.
Use of estimates: The preparation of the financial statements requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent
assets and liabilities at the date of the financial statements, and the reported amounts of revenue and
expenses during the reporting period. Actual results could differ from those estimates.
Subsequent events: The Conservancy evaluated subsequent events through May 29, 2013, which is the
date the financial statements were available to be issued.
Note 2. Investments
Investments consist of the following at March 31, 2013:
Mutual funds 3,773,554 $
Bonds 460,563
Money market 282,030
4,516,147 $
Investment income consists of the following for the year ended March 31, 2013:
Interest 160,317 $
Unrealized gain on investments 187,322
347,639 $
Galapagos Conservancy
Notes To Financial Statements
8
Note 3. Line Of Credit
The Galapagos Conservancy has a $200,000 line of credit that expires on October 5, 2013. The line of
credit accrues interest at the bank’s prime lending rate of 5.25% and is secured by all assets of the
Conservancy. The bank also requires the Conservancy to comply with certain administrative covenants.
There was no outstanding balance on the line at March 31, 2013.
Note 4. Temporarily Restricted Net Assets
Temporarily restricted net assets as of March 31, 2013, are available for the following purposes or
periods.
March 31, Restricted Restriction
March 31,
Program 2012 Contributions Accomplished
2013
Library Fund
-$ 100,000 $ -$
100,000 $
Celebrity Expeditions
103,719 48,137 72,077
79,779
Education
19,380 101,500 71,015
49,865
Lonesome George
- 31,000 9,000
22,000
Web Cams
- 20,000 -
20,000
Botany
- 10,000 -
10,000
Knowledge Management – Tinker
7,098 1,000 -
8,098
Tortoise Workshop/Restoration
5,000 3,397 5,000
3,397
Galapagos Travel
2,375 2,150 2,475
2,050
Operation
- 108,350 107,000
1,350
Marine – Offield
- 250,000 250,000
-
Peter Kramer
- 5,000 5,000
-
137,572 $ 680,534 $ 521,567 $
296,539 $
Note 5. Permanently Restricted Net Assets
Permanently restricted net assets are restricted to investments in perpetuity, the income from which is
expendable to support various scientific researches of the Galapagos Islands:
March 31,
March 31,
2012 Contributions
2013
General Endowment 1,583,535 $ -$
1,583,535 $
USAID Endowment 500,000 -
500,000
Marine Endowment 319,653 38,625
358,278
Darwin Scholars Endowment 30,000 -
30,000
2,433,188 $ 38,625 $
2,471,813 $
Galapagos Conservancy
Notes To Financial Statements
9
Note 5. Permanently Restricted Net Assets (Continued)
Endowment Activity for the year ended March 31, 2013, consists of the following:
Temporarily Permanently
Restricted Restricted
Endowment net assets, beginning of year -$ 2,433,188 $
Contributions - 38,625
Investment income:
Net realized and unrealized gains 106,601 -
Interest and dividends 91,233 -
Appropriated for expenditure (197,834) -
Endowment net assets, end of year -$ 2,471,813 $
In August 2008, the Codification on Endowments of Not-for-Profit Organizations: Net Asset Classification
of Funds Subject to an Enacted Version of the Uniform Prudent Management of Institutional Funds Act,
and Enhanced Disclosures for All Endowment Fund was issued. The Codification addresses accounting
issues related to guidelines in the Uniform Prudent Management of Institutional Funds Act of 2006
(UPMIFA), which was adopted by the National Conferences of Commissioners on Uniform State Laws in
July 2006 and enacted in the Commonwealth of Virginia on July 1, 2008. The Management of the
Conservancy has interpreted UPMIFA as requiring the preservation of the fair value of original donor-
restricted endowment gifts as of the date of the gift absent explicit donor stipulations to the contrary. As a
result of this interpretation, the Conservancy classifies as permanently restricted net assets (a) the
original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to
the permanent endowment, and (c) accumulations to the permanent endowment made in accordance
with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund.
The remaining portion of donor-restricted endowment funds not classified in permanently restricted net
assets is classified as temporarily restricted net assets until those amounts are appropriated for
expenditure by the Conservancy in a manner consistent with the standard of prudence prescribed by
UPMIFA. In accordance with UPMIFA, the Conservancy considers the following factors in making a
determination to appropriate or accumulate donor-restricted endowment funds:
The duration and preservation of the fund
The purposes of the Conservancy endowment fund
General economic conditions
The possible effect of inflation and deflation
The expected total return from income and the appreciation of investments
Investment policies
Return objective and risk parameters: The Conservancy’s objective is to earn a respectable, long-term,
risk-adjusted total rate of return to support their programs. The Conservancy is primarily invested in
publicly traded mutual funds, equities, and corporate bonds.
Spending policies: The earnings from these endowments are available in support of programs of the
Conservancy. The Board of Directors appropriates the entire balance of the annual earnings to be
available for grants in support of the Conservancy’s mission.
