HomeMy WebLinkAboutFinancial StatementFINANCIAL STATEMENTS
DECEMF3ER 31 2010 AND 2009
DO THE RIGHT THING. INC.
MIAMI. FLORIDA
LT.RiE L! \ l ASSOCIA1 ES7'Tat 11
CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS ADVISORS
Miami Lakes Office Center
15291 NV. 60th Avenue, Suite 100
Miami Lakes, FL 33014
INDEPENDENT AUDITORS' REPORT
Telephone. 305 377-0777
Facsimile: 305-556-5601
viiimiturnercpas.corn
To the Board•of Directors
Do The Right Thing, Inc.
Miami, Florida
We have audited the accompanying statements of financial position of Do The Right Thing,
Inc. (a nonprofit organization) as of December 31, 2010 and 2009, 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, 2010 and
2009, 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.
August 17, 2011
Page 1 of 6
Members American Institute of Certified Public Accountants and Florida Institute of Certified Public Accountants
tS'i Prtr,t i nr.
STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, 2010 AND 2009
DO THE RIGHT THING, INC.
2010 2009
ASSETS
CURRENT ASSETS
Cash $241,475 $198,899
Contributions receivable 117,030 122,252
Prepaid expenses
7,131 11,100
Total current assets
365,636 332,251
Property and equipment, net
3;043 2,270
Trademark, net
256 453
Total assets $368,935 $334,974
LIABILITIES AND UNRESTRICTED NET ASSETS
CURRENT LIABILITIES
Accrued expenses S 2.715 $ 2.469
Total current liabilities
2,715 2,469
NET ASSETS, UNRESTRICTED 365,220 332,505
Total liabilities and unrestricted net assets $368.935 $334.974
The accompanying notes are an integral part of these financial statements.
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STATEMENTS OF ACTIVITIES
YEARS ENDED DECEMBER 31, 2010 AND 2009
DD THE RIGHT THNG, INC.
2010 2009
CHANGES IN UNRESTRICTED NET ASSETS:
REVENUES
LETF Grant $ 110,000 $ 113,000
Contributions 70,046 98,350
In -kind donations 23,376 45,456
Chapter fees 500 500
Interest income 1,577 158
Total revenue 205.499 257,464
EXPENSES
Program services:
Awards program 59,206 89,449
Activities and events 64.846 61,704
Total program services
Support services:
Management and general
124052 151,153
47,732 51,803
Total support services 47.732 51,803
Total expenses 171,784 202,956
Increase in unrestricted net assets 33,715 54,508
UNRESTRICTED NET ASSETS, beginning of year 332,505 277,997
UNRESTRICTED NET ASSETS, end of year $ 366,220 $ 332,505
The accompanying notes are an integral part of these financial statements.
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STATEMENTS OF CASH FLOWS
YEARS ENDED DECEM3ER 31, 2010 AND 2009
DO THE RIGHT THING, INC.
CASH FLOWS FROM OPERATING ACTIVITIES:
Change in unrestricted net assets
Adjustments to reconcile change in unrestricted
net assets to net cash provided by operating ctivities:
Depreciation and amortization
(Increase) decrease in assets:
Contribution receivable
Prepaid expenses
Increase (decrease) in liabilities:
Accrued expenses
Accrued payroll and payroll taxes
Net cash provided by operating activities
2010 2009
$ 33,715 U 54,508
1,340 1,211
5,222 (8,000)
3,969 (4,478)
246 (1,879)
1645)
44,492 40,717
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment (1,916)
Net cash used in by investing activities (1.916)
Net change in cash 42,576 40,717
CASH, beginning of year 198,899 158.182
CASH, end of year $241,475 $198,899
The accompanying notes are an integral part of these financial statements.
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NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
DO THE RIGHT THING, INC.
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NATURE OF ACTIVITIES
Do The Right Thing, Inc. ("the Organization") 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 AND PRESENTATION
The financial statements of the Organization have prepared on the accrual basis of
accounting.
The Organization follows the recommendations of the FASB Accounting Standards
• Codification, (ASC), under statement ASC 958 (SFAS No. 177), in its statement
presentation. Under ASC 958, 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 FASB ASC No. 605.
• 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 less 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.
DONATED SERVICES
Donated services are recognized as contributions in accordance with FASB ASC No. 605,
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 fundraising 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.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
DO THE RIGHT THING, INC.
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
DONATED SERVICES (Continued)
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.
PROPERTY AND EQUIPMENT
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 underSection
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.
NOTE 2 - FIXED ASSETS
As of December 31, 2010 and 2009, fixed assets consist of:
Furniture
Computer equipment
Less accumulated depreciation
Total fixed assets
2010 2009
$13,187
9,569
$13,187
7,653
22,756 20,840
(19,713) (18,570)
$ 3,04.E $ 2,270
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