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Home My WebLink AboutFinancial StatementsFINANCIAL STATEMENTS DECEMBER 31, 2009 AND 2008 DO THE RIGHT THING, INC. MIAMI, FLORIDA ryE & ASSOCIATES, LLP CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS ADVISORS Miami Lakes Office Center 15291 NW 60th Avenue, Suite 100 Miami Lakes, FL 33014 INDEPENDENT AUDITORS' REPORT To the Board of Directors Do The Right Thing, Inc. Miami, Florida Telephone: 305-377-0777 Facsimile: 305-556-5601 www.turnercpas.com We have audited the accompanying statements of financial position of Do The Right Thing, Inc. (a nonprofit organization) as of December 31, 2009 and 2008, and the related statements of activities and cash flows for the years 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 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 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 statement presentation. We believe that our audits provide 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 Do The Right Thing, Inc. as of December 31, 2009 and 2008, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. May 13, 2010 STATEMENTS OF FINANCIAL POSITION DECEMBER 31, 2009 AND 2008 DO THE RIGHT THING, INC. 2009 2008 ASSETS CURRENT ASSETS Cash $ 198,899 $ 158,182 Contributions receivable 122,252 114,252 Prepaid expenses 11,100 6,622 Total current assets 332,251 279,056 Property and equipment, net 2,270 3,285 Trademark 453 649 Total assets $334,974 $282,990 LIABILITIES AND UNRESTRICTED NET ASSETS CURRENT LIABILITIES Accrued expenses $ - $ 1,879 Accrued payroll and payroll taxes 2,469 3,114 Total current liabilities 2,469 4,993 UNRESTRICTED NET ASSETS 332,505 277,997 Total liabilities and unrestricted net assets $334,974 $282,990 STATEMENTS OF ACTIVITIES YEARS ENDED DECEMBER 31, 2009 AND 2008 DO THE RIGHT THING, INC. 2009 2008 CHANGES IN UNRESTRICTED NET ASSETS: REVENUES LETF Grant $ 113,000 $ 110,000 Contributions 98,350 103,515 In -kind donations 45,456 80,278 Chapter fees 500 259 Interest income 158 91 Total revenue 257,464 294,143 EXPENSES Program services: Awards program 89,449 81,890 Activities and events 61,704 120,553 Total program services 151,153 202,443 Support services: Management and general 51,803 63,566 Total support services 51,803 68,566 Total expenses 202,956 266,009 Increase in unrestricted net assets 54,508 28,134 UNRESTRICTED NET ASSETS, beginning of year 277,997 249,863 UNRESTRICTED NET ASSETS, end of year $ 332,505 $ 277,997 STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2009 AND 2008 DO THE RIGHT THING, INC. 2009 2008 CASH FLOWS FROM OPERATING ACTIVITIES: Change in unrestricted net assets $ 54,508 $ 28,134 Adjustments to reconcile change in unrestricted net assets to net cash provided by operating activities: Depreciation and amortization 1,211 1,430 (Increase) decrease in assets: Contribution receivable (8,000) (1,139) Prepaid expenses (4,478) (6,260) Increase (decrease) in liabilities: Accrued expenses (1,879) (701) Accrued payroll and payroll taxes (645) 275 Net cash provided by operating activities 40,717 21,739 CASH FLOWS FROM INVESTING ACTIVITIES: (2 440) Purchase of furniture Net cash provided by investing activities - (2,440) Net change in cash 40,717 19,299 CASH, beginning of year 158,182 138,883 CASH, end of year $ 198,899 $ 158,182 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 AND 2008 DO THE RIGHT THING, INC. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NATURE OF ACTIVITIES Do The Right Thing, Inc. is a Florida non-profit corporation founded in 1990, and dedicated to recognizing and rewarding youth for positive behavior, accomplishments, and deeds, through an ongoing awards program as well as community projects and activities with an emphasis on crime prevention in Miami - Dade County, Florida. BASIS OF ACCOUNTING The financial statements have been prepared on the accrual basis of accounting in accordance with generally accepted accounting principles. Financial statement presentation follows the recommendations of the Financial Accounting Standard Board (FASB) in its Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not -for -Profit Organizations. Under SFAS No. 117, the Organization 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. CONCENTRATION OF CREDIT RISK At various times during the year, the Organization may have cash in excess of federally insured limits. However, the Organization maintains its cash with high quality financial institutions, which the Organization believes, limits their risks. CONTRIBUTIONS The Organization accounts for contributions in accordance with SFAS No. 116, Accounting for contributions Received and Contributions Made. Contributions, including unconditional promises to give, are recognized as revenues in the period received at their fair market value. Conditional promises to give are not recognized until they become unconditional; that is, when the conditions on which they depend are substantially met. Contributions, which are restricted by the donor, are reported as increases in unrestricted net assets if the restriction expires in the same year in which the contributions are recognized. All other donor -restricted contributions are reported as increased in temporarily or permanently restricted net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets. All contributions receivable are due in Tess than one year. Do The Right Thing, Inc. receives a majority of its grant revenue from the City of Miami Police Department Law Enforcement Trust Fund (LETF). These funds are recognized in revenue on an annual basis for various programs and support expenses. Other revenue is generated from new chapter franchise fees and contributions received directly from the public. Page 5 of 7 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 AND 2008 DO THE RIGHT THING, INC. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) DONATED SERVICES Donated services are recognized as contributions in accordance with SFAS No. 116, Accounting for contributions Received and Contributions Made, if the services create or enhance non -financial assets, or require specialized skills, are performed by people with those skills, and would otherwise be purchased by the Organization. Volunteers also provided fund-raising and other services throughout the year that are not recognized as contributions in the financial statements since these are not susceptible to objective measurement or valuation. In -kind donations consist of travel tickets received from airline, newspaper advertisements and various other local entertainment tickets. Tickets are, in turn, awarded to the youths that achieve the organization's purpose and advertising is used to promote the program in the community. EXPENSE ALLOCATION The costs of providing various programs and other activities have been summarized on the functional basis in the statement of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefitted. FIXED ASSETS It is Do The Right Thing, Inc.'s policy to capitalize property and equipment over $500. Purchased property and equipment is capitalized at cost. Property and equipment are depreciated using the straight-line method. ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. INCOME TAXES The Project is a not -for -project organization that is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code. The Project has also.been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in Section 170(b)(1)(A)(vi). CASH AND CASH EQUIVALENTS For purposes of the statements of cash flows, Do The Right Thing, Inc. considers all highly liquid investments available for current use with an initial maturity of three months or less to be cash equivalents. Page 6 of 7 NOTES T0FINANCIAL STATEMENTS DECEM8ER31.2000AND 2UU8 DO THE RIGHT THING, INC. NOTE - FIXED ASSETS As of December 31, 2009 and 2008, fixed assets consist of� Furniture Computer equipment Less accumulated depreciation Total fixed assets - Page 7 of 7 $13.187 7.853 $13.187 7.053 20.840 20.840 18.570 17.555 $ 2.270 $_3,285 �x u