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HomeMy WebLinkAboutFinancial Statement - DraftFINANCIAL STATEMENTS DECEMBER 31. 2010 AND 2009 MIAMI POLICE ATHLETIC LEAGUE. INC. MIAMI. FLORIDA TURNER & ASSOCIATES, LLP CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS ADVISORS Southeast Financial Center 200 South Biscayne Blvd., 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, 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 eve uating the overall financial statement presentat . ; W= i,'-ve thrt our tidityp * vile a reasonable basis for our opinion. In our opinion, the fit nn°al = e '- n's ref abo • resent fairly, in all material respects, the financial position of Miami Police Athletic League, 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. Page 1 of 7 Members American Institute of Certified Public Accountants and Florida Institute of Certified Public Accountants STATEMENTS OF FINANCIAL POSITION DECEMBER 31, 2010 AND 2009 MIAMI POLICE ATHLETIC LEAGUE, INC. 2010 2009 ASSETS CURRENT ASSETS Cash and cash equivalents $202,785 $ 119,424 Grants receivable 102,380 250,000 Prepaid expenses 26.898 29.559 332,064 398,983 Total current assets PROPERTY AND EQUIPMENT, NET Total assets 2.084 2.482 $334,147 . $401.465 LIABILITIES AND UNRESTRICTED, NET ASSETS CURRENT LIABILITIES Accrued expenses Uneamed revenue $ 6,776 7.500 $ 4,621 Total current Iiabil 14,276 4,621 UNRESTRICTED, NET ASSETS 319.871 396.844 Total liabilities and unrestricted, net assets $334,147 $401,465 The accompanying notes are an integral part of these financial statements. Page 2 of 7 STATEMENTS OF ACTIVITIES YEARS ENDED DECEMBER 31, 2010 AND 2009 MIAMI POLICE ATHLETIC LEAGUE, INC. 2010 2009 REVENUES LETF Grant $100,000 $250,000 Contributions 42,157 46,063 In -kind donations 379,023 452,371 Interest 181 172 Unrestricted grants 54,450 16,960 Other income 11,098 Total revenue 575,811 776.664 EXPENSES Program services: Awards program Activities and events 3,228 431 484.182 508.952 Total program services 487.410 509,383 Support services: Management and general 164,792 173,894 Fund-raising 582 3,384 Total support se`r y 65.374 177.278 Total expenses . 652.784, 686,061 Change in unrestricted net assets (77,973) 90,003 UNRESTRICTED, NET ASSETS, beginning of year 396.844 306.841 UNRESTRICTED, NET ASSETS, end of year $319,871 $396,844 The accompanying notes are an integral part of these financial statements. Page 3 of 7 STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2010 AND 2009 MIAMI POLICE ATHLETIC LEAGUE, INC. 2010 2009 OPERATING ACTIVITIES: Change in unrestricted net assets $(76,973) $ 90,003 Adjustments to reconcile change in unrestricted net assets to net cash (used in) provided by operating activities: Depreciation 398 686 Change in assets and Liabilities Grants receivable 147,620 (248,866) Prepaid expenses 2,661 5,279 Accrued expenses 2,155 (124) Unearned revenue 7.500 (5.000) Net cash provided by (used in) operating activities 83.361 (158.022) Net increase (decrease) in cash 83,361 (158,022) CASH, beginning of year 119.424 277.446 CASH, end of year $202.785 $119.424 The accompanying notes are an integral part of these financial statements. Page 4 of 7 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2010 AND 2009 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 s 9L Miami PAL -cei-sstana all s gr $ t revenue from the City of Miami Police De. = • •, =n V";... ,w or Tru and (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, 2010 AND 2009 MIAMI POLICE ATHLETIC LEAGUE, INC. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) CONTRIBUTED SERVICES To assist in carrying out its mission, the organization receives advertising services donated by several community businesses as well as significant donated hours of service from individuals. No amounts have been reflected in the financial statements for those services since they do not meet the criteria for recognition under FASB ASC 958-605, 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•rinciples requires ana•em ent to make estimates and assumptions that affect am g nts - i c osu es. Accordingly, actual results could differ fe o tim INCOME V S 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, 2010 AND 2009 MIAMI POLICE ATHLETIC LEAGUE, INC. NOTE 4 - FIXED ASSETS As of December 31, 2010 and 2009, fixed assets consists of: Furniture and equipment Computer equipment Less accumulated depreciation Total fixed assets Page 7 of 7 2010 2009 $15,030 $15,030 14.243 14.243 29,273 29,273 27.189 26.791 $ 2,084 $ 2.482 TURNER & ASSOCIATES, LLP CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS ADVISORS Southeast Financial Center 200 South Biscayne Blvd., Suite 1770 Miami, Florida 33131 August 30, 2012 Chief Manuel Orosa City of Miami Police Department 400 N.W. 2nd Avenue Miami, FL 33128 Re: Miami Police Athletic League, Inc. Dear Chief Orosa: Telephone: 305-377-0707 Facsimile: 305-377-0787 www.turnercpas.com For your reference, attached is a draft of the 2010 audited financial statements for Miami Police Athletic League, Inc. Due to the absence of an executive director, some of the documents and accounting data pertaining to the 2010 financial statements were recently submitted to our office. Once the additional data is reviewed, and some administrative tasks are completed, we will finalize the 2010 fmancial statements. We do not anticipate any significant modifications to the draft version of the 2010 financial statements. If you should have any questions, please contact me. Very truly yours, f tin E. Go . han Certified Public Accountant KEG/lgl Members American Institute of Certified Public Accountants and Florida Institute of Certified Public Accountants TURNER & ASSOCIATES, LLP CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS ADVISORS Southeast Financial Center 200 South Biscayne Blvd., Suite 1770 Miami, Florida 33131 August 28, 2012 Chief Manuel Orosa City of Miami Police Department 400 N.W. 2nd Avenue Miami, FL 33128 Re: Miami Police Athletic League, Inc. Dear Chief Orosa: The purpose of this letter is to inform you that our firm has been engaged by Athletic League, Inc. (PAL) to audit the 2011 financial statements. In the absence of an executive director for PAL, we are currently working with the remaining documents and accounting records in order to perform our audit. If you should have any questions, please contact me. Very truly yours, itiktOU Kristin E. Gaughan Certified Public Accountant KEG/lgl Telephone: 305-377-0707 Facsimile: 305-377-0787 www.turnerepas.com the Miami Police the staff to gather Members American Institute of Certified Public Accountants and Florida Institute of Certified Public Accountants