Fillable Printable Nonprofit Financial Statement Template
Fillable Printable Nonprofit Financial Statement Template
Nonprofit Financial Statement Template
Financial Statements
June 30, 2014
Habitat for Humanity of Utah County
Habitat for Humanity of Utah County
Table of Contents
June 30, 2014
Independent Auditor’s Report .................................................................................................................................... 1
Financial Statements
Statement of Financial Position ................................................................................................................................. 2
Statement of Activities ............................................................................................................................................... 3
Statement of Functional Expenses ............................................................................................................................. 4
Statement of Cash Flows ........................................................................................................................................... 5
Notes to Financial Statements .................................................................................................................................... 6
5 Triad Center, Ste. 750 | Salt Lake City, UT 84180-1128 | T 801.532.2200 | F 801.532.7944 | EOE
Independent Auditor’s Report
Board of Directors
Habitat for Humanity of Utah County
Orem, Utah
Report on the Financial Statements
We have audited the accompanying financial statements of Habitat for Humanity of Utah County (a Utah not-for-
profit organization) (the “Organization”), which comprise the statement of financial position as of June 30, 2014,
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 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 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 Habitat for Humanity of Utah County as of June 30, 2014, and the results of its operations and its cash
flows for the year then ended in accordance with accounting principles generally accepted in the United States of
America.
Salt Lake City, Utah
November 17, 2014
See Notes to Financial Statements 2
Habitat for Humanity of Utah County
Statement of Financial Position
June 30, 2014
2014
Assets
Current Assets
Cash and cash equivalents 241,536$
Short-term investments 100,063
Accounts receivable, net 43,123
Prepaid expenses 22,017
Other assets 50,767
Homes under construction and held for sale 381,774
ReStore inventory 24,831
Interest bearing mortgage loans receivable - current portion 2,670
Non-interest bearing mortgage loans receivable - current
portion, net of discount 55,344
Total Current Assets 922,125
Property and equipment, net 1,894,790
Non-interest bearing mortgage loans receivable, net of unamortized
discount of $2,255,837 and $2,173,088 and net of current portion 1,999,714
Interest bearing mortgage loans, net of current portion 22,932
Total Assets 4,839,561$
Liabilities and Net Assets
Current Liabilities
Accounts payable 76,448$
Accrued liabilities 67,535
Income taxes payable -
Mortgage payable - current portion 57,040
Total Current Liabilities 201,023
Long-Term Liabilities
Mortgage Payable - net current portion 1,250,438
Total Liabilities 1,451,461
Net Assets
Unrestricted 3,326,553
Temporarily restricted 61,547
Total Net Assets 3,388,100
Total Liabilities and Net Assets 4,839,561$
See Notes to Financial Statements 3
Habitat for Humanity of Utah County
Statement of Activities
Year Ended June 30, 2014
Temporarily
Unrestricted Restricted Total
Support
Contributions 367,386$ 157,211$ 524,597$
Grants 543 207,564 208,107
In-kind donations 119,231 - 119,231
Special events:
Special event revenue
- 11,660 11,660
Less cost of direct benefit to
special event donors
- (982) (982)
Net revenue from special events
- 10,678 10,678
Net assets released from restrictions 313,906 (313,906) -
Total Support 801,066 61,547 862,613
Revenues
Retail sales 924,664 - 924,664
Mortgage discount amortization 155,816 - 155,816
Transfer of homes 505,000 - 505,000
Other program income 5,424 - 5,424
Interest 2,695 2,695
Gain on sale of property and equipment 25,477 - 25,477
Total Revenue 1,619,076 - 1,619,076
Total Support and Revenue 2,420,142 61,547 2,481,689
Expenses
Program services expense
Volunteer and family programs 1,311,566 - 1,311,566
Home improvement retail outlets 778,765 - 778,765
Supporting services expense
Management and general 90,054 - 90,054
Fundraising and development 80,381 - 80,381
Income Taxes 954 - 954
Total Expenses
2,261,720 - 2,261,720
Change in Net Assets 158,422 61,547 219,969
Net Assets, Beginning of Year 3,168,131 - 3,168,131
Net Assets, End of Year 3,326,553$ 61,547$ 3,388,100$
2014
See Notes to Financial Statements 4
Habitat for Humanity of Utah County
Statement of Functional Expenses
Year Ended June 30, 2014
Volunteer Home
and Family Improvement Management Fundraising and
Programs Retail Outlets Total and General Development Total
Bad Debt Expense
1,951$ -$ 1,951$ -$ -$ 1,951$
Construction Expense
13,197 - 13,197 - - 13,197
Cost of Homes Transferred
503,849 - 503,849 - - 503,849
Cost of Inventory Sold
- 86,294 86,294 - - 86,294
Depreciation Expense
8,344 50,137 58,481 5,283 6,008 69,771
Equipment Expense
2,099 - 2,099 2,037 2,037 6,174
Insurance
5,539 13,044 18,583 4,947 804 24,333
Interest
4,879 56,309 61,188 4,640 4,640 70,469
Mission Specific Costs
40,380 - 40,380 - - 40,380
Mortgage Discounts
353,872 353,872 - - 353,872
Mortgage Servicing
4,800 - 4,800 - - 4,800
Occupancy Costs
2,934 117,406 120,340 1,835 1,588 123,763
Office Supplies
2,076 - 2,076 2,015 2,015 6,105
Other
1,945 - 1,945 562 11,560 14,067
Postage
1,035 - 1,035 1,035 236 2,306
Printing
1,510 - 1,510 1,154 - 2,664
Professional Services
- - - 8,000 - 8,000
Public Relations
28,295 11,414 39,709 - - 39,709
Retail Store Expenses
- 78,639 78,639 8,000 - 86,639
Salary and Benefits
277,085 360,197 637,282 46,936 45,222 729,440
Tithe to Habitat for Humanity International
40,730 - 40,730 - - 40,730
Travel and Training
11,621 6,307 17,928 1,914 3,815 23,657
Utilities
5,426 5,426 1,695 2,456 9,578
Total expenses by function 1,311,566 779,747 2,091,313 90,054 80,381 2,261,748
Less expenses included with revenues
on the statement of activities
- (982) (982) - - (982)
Total expenses included in the expense section
on the statement of activities 1,311,566 778,765 2,090,331 90,054 80,381 2,260,766
Program Services Supporting Services
See Notes to Financial Statements 5
Habitat for Humanity of Utah County
Statement of Cash Flows
Year Ended June 30, 2014
2014
Operating Activities
Change in net assets 219,969$
Adjustments to reconcile change in net assets to
net cash from operating activities:
Depreciation 69,771
Bad debt expense 1,951
Gain on sale of property and equipment (25,477)
In-kind donations, capitalized (110,731)
Mortgage discount amortization (155,816)
Discount on mortgages 353,872
Gain on transfer of homes (1,151)
Changes in operating assets and liabilities:
Accounts receivable (17,817)
Prepaid expenses (7,340)
Other assets (3,089)
Homes under construction and held for sale (238,537)
Inventory 2,172
Accounts payable (46,446)
Accrued liabilities (13,027)
Income tax payable (4,655)
Net Cash From for Operating Activities 23,649
Investing Activities
Purchase of short-term investments (100,063)
Proceeds from sale of land and equipment 32,728
Purchase of equipment (32,332)
Collections on mortgage loans 203,877
Net Cash from Investing Activities 104,210
Financing Activities
Payments on mortgage payable (55,078)
Net Cash Used for Financing Activities (55,078)
Net Change in Cash and Cash Equivalents 72,781
Cash and Cash Equivalents at Beginning of Period 168,755
Cash and Cash Equivalents at End of Period 241,536$
Supplemental Disclosure of Cash Flow Information and Non-Cash Financing Activites
Acquisition of home under construction through accounts payable 49,880$
Cash Payments for
Interest 70,371$
Income taxes 9,887$
6
Habitat for Humanity of Utah County
Notes to Financial Statements
June 30, 2014
Note 1 - Principal Activity and Significant Accounting Policies
Organization
Habitat for Humanity of Utah County (the Organization) a nonprofit corporation, was incorporated on December
5, 1991. The Organization is an affiliate of Habitat for Humanity International (Habitat International), a
nondenominational Christian not-for-profit organization whose purpose is to create decent, affordable housing for
those in need and to make decent shelters a matter of conscience with people everywhere. Although Habitat
International assists with information resources, training, publications, prayer support, and in other ways, the
Organization is primarily and directly responsible for its own operations.
The Organization is governed by an independent, volunteer Board of Directors who oversees the Organization’s
operations. Revenues to support the Organization are primarily received from donations of cash, materials, and
services.
In April 2007, the Organization opened a discount home improvement outlet, called the ReStore in Orem, Utah.
In April 2013, the Organization opened a second location in Spanish Fork, Utah. The ReStore sells to the general
public, and most of the store’s merchandise has been donated by building supply stores, construction companies,
and individuals in the community.
The accompanying financial statements have been prepared in accordance with standards for not-for-profit
organizations adopted by the Financial Accounting Standards Board. They are stated on the accrual basis of
accounting whereby expenses are recorded when incurred, donations are recorded when notice is received, and
grant revenues are recorded when earned. ReStore donations are recorded when the items are sold as discussed
below.
Financial Statement Presentation
The Organization reports 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, as
applicable.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and their reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Cash and Cash Equivalents
For purposes of the financial statements, the Organization considers all cash and highly liquid debt instruments
purchased with an original maturity of three months or less to be cash equivalents. In addition, management also
considers money market funds to be cash equivalents. From time to time during the year, the Organization’s cash
balance in financial institutions has exceeded the FDIC insurance limits. At June 30, 2014, the Organization had
no deposits with financial institutions that exceeded FDIC insurance.
7
Habitat for Humanity of Utah County
Notes to Financial Statements
June 30, 2014
Short Term Investments
Short term investments consist of certificates of deposit with original maturities greater than 90 days.
ReStore Home Improvement Outlets
The store’s merchandise consists primarily of items that have been donated by building supply stores,
construction companies, and individuals in the community. Because many of the donations are the result of
overstocked items or are used items, the value of donations is not readily determinable until such merchandise is
sold. Therefore, retail inventory from donated items of the store has not been recorded in these financial
statements. Retail sales on these donated items are recorded at the point of sale. The remaining inventory which
consists of purchased items is stated at the lower of cost or market determined by the first-in first-out method.
Homes Under Construction and Held For Sale
Homes under construction includes the direct and indirect costs of construction, land, and the donated value of
materials and professional services used in the construction of homes. Transfer to homeowners is recorded when
the home is occupied and title is transferred.
Property and Equipment
Equipment and leasehold improvements are recorded on the basis of cost for purchased assets or fair value at the
date of donation for donated assets. The Organization capitalizes all acquisitions in excess of $1,000.
Depreciation is recorded using the straight-line method.
Non-Interest Bearing Mortgage Loans
Mortgage loans are recorded when a homeowner occupies the home and title is transferred. Habitat International
requires local chapters to discount their mortgage loans. The loan is recorded at the gross amount of payments to
be received over the life of the mortgage, and an offsetting discount is recorded based on prevailing market rates
at the inception of the mortgage. Discounts are amortized over the lives of the loans using the effective interest
method.
Interest Bearing Mortgage Loans
Interest bearing mortgage loans are recorded at the gross amount of payments to be received over the life of the
mortgage. Interest is recorded in the period which it is earned.
Contributions and Donor Restrictions
Contributions received are recorded as unrestricted or temporarily restricted depending on the existence and/or
nature of any donor restrictions. Contributions not subject to donor restrictions are reported as unrestricted
support. Temporarily restricted support represents contributions that are restricted by the donor for construction
activities or for specific equipment purchases. Net assets restricted for construction are released from restricted
net assets when construction costs are paid. If temporarily restricted contributions are released from restricted net
assets in the same year as the contribution is received, the contribution is reported as temporarily restricted
support on the statement of activities.
Contributions related to special events are recognized in the period that the event occurs.
8
Habitat for Humanity of Utah County
Notes to Financial Statements
June 30, 2014
Government Grants
The Organization receives funding from several federal financial assistance programs that supplement its
traditional funding sources. Habitat recognizes the award as government grant revenue as the expenses stipulated
in the grant agreement have been incurred.
In-Kind Support
The Organization receives donations from a variety of sources for services and materials in the furtherance of its
objectives. The in-kind support consists principally of discounts on services of professionals, building materials,
and land. In-kind support is recorded at its fair value on the date of donation.
Program Services
Volunteer and Family Programs: Includes activities associated with completing homes, providing mortgage loans
to program participants, and creating community awareness and participation. Volunteer and Family Programs
also includes the Organization’s neighborhood revitalization activities, which includes home repairs for needy
individuals.
Home Improvement Retail Outlet: Includes the operations of the discount home improvement retail outlet, the
ReStore.
Allocated Administrative Expenses
The costs of providing the programs and services have been summarized on a functional basis in the statement of
functional expenses. Accordingly, certain costs have been allocated among the programs and services benefited.
Income Taxes
Habitat for Humanity of Utah County is organized as a state of Utah nonprofit corporation and has been
recognized by the Internal Revenue Service (IRS) as exempt from federal income taxes under Section 501(a) of
the Internal Revenue Code as an organization described in section 501(c)(3), qualifies for the charitable
contribution deduction under Section 170(b)(1)(A)(vi), and has been determined not to be a private foundation
under sections 509(a)(1). Habitat for Humanity of Utah County is required to file a return of Organization Exempt
from Income Tax (Form 990) with the IRS. In addition, the agency is subject to income tax on net income that is
derived from business activities that are unrelated to their exempt purposes. The Organization files an exempt
Organization Business Income Tax Return (Form 990-T) with the IRS to report is unrelated business taxable
income.
The Organization believes that it has appropriate support for any tax positions taken affecting its annual filing
requirements, and as such, does not have any uncertain tax positions that are material to the financial statements.
The Agency would recognize future accrued interest and penalties related to unrecognized tax benefits in income
tax expense if such interest and penalties are incurred. The Organization’s Forms 990-T and other income tax
filings required by state, local, or non-U.S. tax authorities are no longer subject to tax examination for years
before 2010.
9
Habitat for Humanity of Utah County
Notes to Financial Statements
June 30, 2014
Subsequent Events
Subsequent events have been evaluated through November 17, 2014 which is the date the financial statements
were available to be issued.
Note 2 - Homes Under Construction and Held for Sale
A summary of activity in homes under construction and building lots for the years ended June 30, 2014 and 2013
is as follows:
Balance - June 30, 2013
486,475$
Purchase of property
55,196
Taxes and additions
37,138
Construction costs
306,814
Transfer of homes
(503,849)
Balance - June 30, 2014
381,774$
Note 3 -
Property and Equipment
As of June 30, 2014, the cost of property and equipment was as follows:
Depreciable
Lives Balance
Office Equipment and Improvements 5-7 years 9,876
Construction Equipment 5-10 years 106,951
Retail Store Equipment and Improvements 5-7 years 12,587
Building 40 years 2,094,757
2,224,171
Less accumulated depreciation (329,381)
Total, net
1,894,790$
Note 4 - Non-Interest Bearing Mortgage Loans
As of June 30, 2014, the Organization held 50 non-interest bearing mortgage loans. The mortgage loan maturities
range from 20 to 40 years. These mortgages are secured by the underlying real estate that is located primarily in
Utah County in Utah. All mortgages are secured with a security interest and trust deed in each property. Cash
reserves for insurance and taxes on each property are held in a third-party trust and are not included in the
