HomeMy WebLinkAboutFinancial StatementsFINANCIAL STATEMENTS
DECEMBER 31, 2012 AND 2011
DO THE RIGHT THING, INC.
MIAMI, FLORIDA
E-' & ASSOCIATES, LLP
CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS ADVISORS
Miami Lakes Office Center
15291 NW 60th Avenue, Suite 100
Miami Lakes, FL 33014
To the Board of Directors
Do The Right Thing, Inca
Miami, Florida
INDEPENDENT AUDITORS' REPORT
Telephone: 305-377-0777
Facsimile: 305-556-5601
www.turnercpas.com
We have audited the accompanying financial statements of Do the Right Thing, Inc. (a nonprofit
organization), which comprise the statement of financial position as of December 31, 2012, and
the related statements of activities 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 the accounting principles generally accepted in the United States; 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.
Auditors' 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 Do the Right Thing, Inc. as of December 31, 2012, and the changes in its net
assets and its cash flows for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
May 10, 2013
0422-(tit41-2
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Members American Institute of Certified Public Accountants and Florida Institute of Certified Public Accountants
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STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, 2012.AND 2011
DO THE RIGHT THING, INC.
2012 2011
ASSETS
CURRENT ASSETS
Cash $193,393 $230,160
Contributions receivable 130,000 120,000
Prepaid expenses 18,722 11,135
Total current assets 342,115 361,295
Property and equipment, net 1,364 2,082
Trademark, net 60
Total assets $343.479 $363,437
LIABILITIES AND UNRESTRICTED NET ASSETS
CURRENT LIABILITIES
Accrued expenses $ 4,823 $ 8 544
Total current liabilities 4,823 8,544
NET ASSETS, UNRESTRICTED 338,656 354,893
Total liabilities and unrestricted net assets $343,479 $363,437
The accompanying notes are an integral part of these financial statements.
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STATEMENTS OF ACTIVITIES
YEARS ENDED DECEMBER 31, 2012 AND 2011
DO THE RIGHT THING, INC.
2012 2011
CHANGES IN UNRESTRICTED NET ASSETS:
REVENUES
LETF Grant $ 130,000 $ 120,000
Contributions 50,417 49,979
In -kind donations 51,923 38,509
Chapter fees 1,000 500
Interest income 605 924
Total revenue
EXPENSES
Program services:
Awards program
Activities and events
Total program services
Support services:
Management and general
233,945 209,912
104,045
31,677
56,503
99,499
135,722 156,002
114,460 65,237
Total support services 114,460 65,237
Total expenses 250,182 221,239
Increase (decrease) in unrestricted net assets (16,237) (11,327)
UNRESTRICTED NET ASSETS, beginning of year 354,893 366,220
UNRESTRICTED NET ASSETS, end of year $ 338,656 $ 354,893
The accompanying notes are an integral part of these financial statements.
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STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2012 AND 2011
DO THE RIGHT THING, INC.
2012 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Change in unrestricted net assets $ (16,237) $ (11,327)
Adjustments to reconcile change in unrestricted
net assets to net cash used in operating activities:
Depreciation and amortization 778 1,157
(Increase) decrease in assets:
Contribution receivable (10,000) (2,970)
Prepaid expenses (7,587) (4,004)
Increase (decrease) in liabilities:
Accrued expenses (2,895) 3,112
Accrued payroll and payroll taxes (826) 2,717
Net cash provided by used in activities (36,767) (11,315)
Net change in cash (36,767) (11,315)
CASH, beginning of year 230,160 241,475
CASH, end of year $193,393 $230,160
The accompanying notes are an integral part of these financial statements.
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NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2012 AND 2011
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, 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.
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NOTE 1
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2012 AND 2011
DO THE RIGHT THING, INC.
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 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.
NOTE 2 - FIXED ASSETS
As of December 31, 2012 and 2011, fixed assets consist of:
Furniture
Computer equipment
Less accumulated depreciation
Total fixed assets
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2012 2011
$13,187
9,569
$13,187
9,569
22,756 22,756
(21,392) (20,674)
$ 1,364 $ 2,082