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HomeMy WebLinkAboutFinancial StatementsFINANCIAL STATEMENTS DECEMBER 31. 2009 AND 2008 MIAMI POLICE ATHLETIC LEAGUE, INC. MIAMI, FLORIDA TURNER& ASSOCIATES, LLP CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS ADVISORS Wachovia Financial Center 200 South Biscayne Boulevard, Suite 1770 Miami, Florida 33131 • INDEPENDENT AUDITORS' REPORT Telephone: 305-377-0707 Facsimile: 305-377-0787 www.turnercpas.com To the Board of Directors of Miami Police Athletic League, Inc. Miami, Florida We have audited the accompanying statements of financial position of Miami Police Athletic League, 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 n 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 Miami Police Athletic. League, 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. September 10, 2010 Page 1 of 7 Members American Institute of Certified Public Accountants and Florida Institute of Certified Public Accountants ePrinted on recycled paper STATEMENTS OF FINANCIAL POSITION DECEMBER 31, 2009 AND 2008 MIAMI POLICE ATHLETIC LEAGUE, INC. 2009 2008 ASSETS CURRENT ASSETS Cash and cash equivalents $119,424 $ 277,446 Grants receivable 250,000 1,134 Prepaid expenses 29,559 34,838 Total current assets 398,983 313,418 PROPERTY AND EQUIPMENT, NET 2,482 3,168 Total assets $401,465 $316,586 LIABILITIES AND UNRESTRICTED, NET ASSETS CURRENT LIABILITIES Accrued expenses Unearned revenue $ 4,621 $ 4,745 5,000 Total current liabilities 4,621 9,745 UNRESTRICTED, NET ASSETS 396,844 306,841 Total liabilities and unrestricted, net assets $401,465 $316,586 The accompanying notes are an integral part of these financial statements. Page 2 of 7 STATEMENTS OF ACTIVITIES YEARS ENDED DECEMBER 31, 2009 AND 2008 MIAMI POLICE ATHLETIC LEAGUE, INC. 2009 2008 REVENUES LETF Grant $250,000 $292,000 Contributions 46,063 21,237 In -kind donations 452,371 420,663 Interest 172 52 Unrestricted grants 16,960 12,933 Other income 11,098 Total revenue 776,664 746,885 EXPENSES Program services: Awards program 431 2,256 Activities and events 508,952 444.061 Total program services 509,383 446,317 Support services: Management and general 173,894 162,567 Fund-raising 3, 384 3,567 Total support services 177.278 166,134 Total expenses 686,661 612,451 Change in unrestricted net assets 90,003 134,434 UNRESTRICTED, NET ASSETS, beginning of year 306,841 172,407 UNRESTRICTED, NET ASSETS, end of year $396,844 $306,841 The accompanying notes are an integral part of these financial statements. Page 3 of 7 STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2009 AND 2008 MIAMI POLICE ATHLETIC LEAGUE, INC. 2009 2008 OPERATING ACTIVITIES: Change in unrestricted net assets $ 90,003 $134,434 Adjustments to reconcile change in unrestricted net assets to net cash (used in) provided by operating activities: Depreciation 686 973 Change in assets and liabilities Grants receivable (248,866) 100,266 Prepaid expenses 5,279 8,755 Accrued expenses (124) 1,562 Unearned revenue (5,000) 5,000 Net cash (used in) provided by operating activities (158,022) 250,990 Net (decrease) increase in cash (158,022) 250,990 CASH, beginning of year 277,446 26,456 CASH, end of year $119,424 $277,446 The accompanying notes are an integral part of these financial statements. Page 4 of 7 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 AND 2008 MIAMI POLICE ATHLETIC LEAGUE, INC. NOTE 1. - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NATURE OF ACTIVITIES The Police Athletic League (PAL) started in New York City in the 1930's providing organized sports activities with police participation and supervision as an alternative to juvenile delinquency. A not -for -profit organization, PAL is a basic crime prevention program offering at -risk youth a positive alternative to the negative influences in the community. PAL relies heavily on athletics and related activities to create and cement the bond between police officers and the kid in the street. PAL is based on the belief that children can develop a strong, positive attitude towards police and that police officers can influence the attitudes and values of children through their interaction. The Miami Police Department incorporated its own local PAL chapter in December 1995 under the laws of the State of Florida, Miami Police Athletic League, Inc. (Miami PAL), with a variety of planned programs merging sports and recreation with good citizenship activities, supplemented by substance abuse education, tutoring, and career counseling. Miami PAL's diversified activities will provide the opportunity for every child in the city, regardless of their abilities, to participate. BASIS OF ACCOUNTING The financial statements have been prepared on the accrual basis of accounting in accordance with generally accepted accounting principles. REVENUE Miami PAL receives substantially all of its grant revenue from the City of Miami Police Department Law Enforcement Trust Fund (LETF), and the Florida Department of Education. These funds are recognized in revenue during the period for which they are awarded. Other revenue is generated from contributions - received directly from the public. CONTRIBUTIONS Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence and/or nature of any donor restrictions. Miami PAL has not received any contributions with donor - imposed restrictions that would result in temporarily or permanently restricted net assets. In -kind donations predominantly consist of the use of equipment, facilities and personnel of the Miami Police Department. The equipment is used to transport the youth to athletic events and related activities. Page 5 of 7 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 AND 2008 MIAMI POLICE ATHLETIC LEAGUE, INC. NOTE .1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) CONTRIBUTED SERVICES To assist in carrying out its mission, the organization receivesadvertising services donated by several community businesses as well as significant donated hours of service from individuals. Noamounts have been reflected in the financial statements for those services since they do not meet the criteria for recognition under SFAS No. 116, Accounting for Contributions Received and Contributions Made. GRANTS RECEIVABLE Contributions and grants are recognized when the donor makes a promise to give to the Organization that is, in substance, unconditional. Management believes that the grants receivable are fully collectible; accordingly, the Organization has provided no allowance for uncollectible amounts. FIXED ASSETS It is Miami PAL'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 Miami PAL is a not -for -profit organization that is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code and classified by the Internal Revenue Service as other than a private foundation. NOTE 2 - PREPAID EXPENSES Prepaid expenses predominantly consist of sports related equipment used in different youth activities that are generally used within twelve months of purchase. NOTE 3 - CONCENTRATION OF CREDIT RISK Miami PAL maintains its cash in bank deposit accounts which, at times, may exceed federal insured limits. The exposure to Miami PAL from these transactions was solely dependent upon daily bank balances and the financial strength of the respective financial institution. Page 6 of 7 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 AND 2008 MIAMI POLICE ATHLETIC LEAGUE, INC. NOTE 4 - FIXED ASSETS As of December 31, 2009 and 2008, fixed assets consists of: Furniture and equipment Computer equipment Less accumulated depreciation Total fixed assets Page 7 of 7 2009 2008 $15,030 $15,030 14,243 14,243 29,273 29,273 26,791 26,105 $ 2,482 $ 3,168 TURNER. & ASSOCIATES, LLP Pnrted on recycled paper CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS ADVISORS