boys & girls clubs of sarasota county, inc. financial statements

BOYS & GIRLS CLUBS OF SARASOTA COUNTY, INC.

FINANCIAL STATEMENTS

SEPTEMBER 30, 2019 AND 2018

WITH INDEPENDENT AUDITORS' REPORT

TABLE OF CONTENTS

Page

DWEPENDENT AUDITORS'REPORT....................................................................................................................... 1-2

FINANCIAL STATEMENTS

Statements of FmancialPosition.......................................................................................................^

Statements of Activities.................................................................................................................

Statements of Functional Expenses.......................................................................................................^ 5A-5B

Statements of Cash Flows.....................................................................................................................^

Notes to Fmancial Statements .....................................................................................................................................7-14

OTHER SCHEDULES AND REPORTS

Schedule and Notes to Schedule of Expenditures of Federal Awards..................................................................... 15-16

Independent Auditors5 Report on Internal Control over Financial Reporting and on

Compliance and Other Mattejrs Based on an Audit ofFmancial Statements Performed

in Accordance with G(9v^772772^^^z/J^^g5^nrf^r<A..............................................^

Independent Auditors5 Report on Compliance for Each Major Program and onInternal Control Over Compliance Required by The Uniform Guidance ........................................................19-20

Schedule of Fmdmgs and Questioned Costs...............................................................................................^

BOYS AND GIRLS CLUBS OF SARASOTA COUNTY, INC.

STATEMENTS OF FINANCIAL POSITION


ASSETS

2019 2018

$ 2,494,679

37,545

547,576

481,535

104,829

3,666,164

582,171

440,607

80,565

892,152

8,537,895

$ 14,199,554

$ 1,099,444

75,275

170,023

592,981

85,580

2,023,303

100,000

279,667

50,335

893,453

13,635

8,741,054

$ 12,101,447

Current Assets

Cash and cash equivalents

Accounts receivable

Contributions receivable

Grants receivable

Prepaid expenses

Total Current Assets

Long-term contributions receivable, net of current portion

Investments

Charitable gift annuity receivable

Beneficial interest in assets held by others

Deposits

Property and equipment, net

TOTAL ASSETS

LIABILITIES AND NET ASSETS

Current Liabilities

Accounts payable $ 168,221 $ 66,960

Accrued expenses 262,496 361,037

Deferred income 360,819 75,813

Due to Foundation - 260,642

Total Current Liabilities

Total Liabilities

Net Assets

Without donor restrictions

With donor restrictions

Total Net Assets

TOTAL LIABILITIES AND NET ASSETS

791,536

791,536

8,578,473

4,829,545

13,408,018

$ 14,199,554

764,452

764,452

10,247,999

1,088,996

11,336,995

$ 12,101,447

The accompanying notes are an integral part of these financial statements

3


STATEMENTS OF ACTIVITIES

FOR THE YEARS ENDED SEPTEMBER 30, 2019 AND 2018

2019 2018

Revenues, Gains (Losses), and

Other Support:Contributions:

Operating

Capital campaignGrants:

OperatingSpecial events, net of expenses

Program service fees

Change in value of

charitable gift annuity receivableChange in value of beneficial

interests in assets held by others

Interest and investment income

Realized and unrealized gains (losses)Net gain from disposition of assets

Contract revenue

Miscellaneous

Net assets released from restrictions

Total Revenues, Gains (Losses), and

Other Support

Expenses:

Program services

General and administrative

Fund-raising

Total Expenses

Donation to Foundation

Loss on pledge write-offs and other

prior year adjustments

Total Expenses, Donations, and Losses

Increase (Decrease) in Net Assets

Net Assets, Beginning of Year

Net Assets, End of Year

Without Donor

Restrictions

With DonorRestrictions Total

Without DonorRestrictions

With DonorRestrictions Total

1,154,391

2,984,978

763,417683,985

$ 1,813,222

1,930,879

432,302

$ 2,967,613

1,930,879

3,417,280

763,417683,985

$ 1,783,623

2,855,631740,605706,729

6,051,784

5,481,470

729,237552,038

6,762,745

893,942

30,230 30,230

3,866,811 9,918,595 6,706,146

5,481,470

729,237552,038

5,405,815

601,204430,895

6J62J45

893,942

6,437,914

333,474

64,623

7,721,310

(1,669,526)

10,247,999

126,262

126,262

3,740,549

1,088,996

190,885

7,847,572

2,071,023

11,336,995

473,286 $ 2,256,909

2,855,631

740,605706,729

(5,811)7,8952,8602,000

68,32641,760

347,983

9,554

(1.393)

(5,811)17,449

1,4672,000

68,32641,760

35,76525,21721,114

45,00067,825

424,637

2,772

8,358

(424,637)

35,76527,98929:472

45,00067,825

59,779 6,765,925

5,405,815

601,204430,895

6,437,914

333,474

6,771,388

(65,242)

10,313,241

32,913

32,913

26,866

1,062,130

32,913

6,804,301

(38,376)

11,375,371

8,578,473 4,829,545 $ 13,408,018 $ 10,247,999 $ 1,088,996 $ 11,336,995


4


STATEMENT OF FUNCTIONAL EXPENSES

FOR THE YEAR ENDED SEPTEMBER 30,2019

Program Services Supporting Services Total

Personnel

Employee benefits

Advertising

Automobile and bus

Computer hardware & software

Contract labor

Donor cultivation

Dues and subscriptions

Insurance

Licenses and taxes

Miscellaneous

OfficeProfessional fees

Program supplies

Repairs and maintenance

Scholarship expense

Seminars and education

Telephone

Travel

Utilities

Total Direct Expenses

Depreciation and

amortization c

Total Expenses

Lee

Wetherington

Youth

Club

$ 778,31963,016

2,906

42,157

4,582

11.463

7,357

5,851

53,842

11,102

1,757

17,152

15,000

136.892

118,581

51,729

1,001

6,934

14,399

92,644

1,436,684

215,596

$ 1,652,280

Roy

McBean

Youth

Club

$ 308,88315,179

68,075

1,588

4.815

2,784

22,844

5.950

4,273

12,000

69,826

51,187

200269

2,733

1,203

43,337

555,152

68,020

$ 623,172

Gene

Matthews

Club

$ 317.11721,170

73427,140

776

152,942

21,449

9,111

5,210

1ZOOO

63,428

56.943

2,226

2J254,109

33,193

580,288

66,050

$ 646,338

Robert &

Joan Lee

Club

$ 308.60715,646

80024,870

624250200

3,220

40,305

5,348

6,461

13,620

41,352

42,302

1803.985

2,551

41,998

552,319

124,185

$ 676,504

Newtown

Club

$ 341.63118,407

5914,227

5,721

19,775

3752,901

319987

9,000

122,404

50

800105

1,044

537,805

$ 537,805

Arcadia

Club

$ 125J558,974

4,001

2,216

5,032

22,500

1,673

1,227

6,203

9,319

3,806

320

1,286

367

192,679

248

$ 192,927

School

Sites

$ 265,822

4,440

99612,163

11,582

526

153

295,682

$ 295,682

Program

Support

Services

$ 558,207118,694

502,480

13,156

4.650

6,315

1,270

22214,340

29,170

51,774

2,108

30,137

2,100

1,599

18,677

854,949

1,813

$ 856,762

Total

Program

Expenses

$ 3,004,341

265,5268,556

121,165

32,475

70,966

12,597

25,686139,667

32,781

2,298

54.626

90J90

506,577

274.977

82,066

7.422

18,081

43,422

211,539

5,005,558

475,912

$ 5,481,470

General

and

Administrative

$ 452,857 S65,299

5,094

3019,976

40.015

49029,64316,768

(7,274)908

41,549

22,590

(771)4,358

5J155,510

10,548

5,538

718,843

10,394

$ 729,237 3

Fund-

Raising

? 353,59743,595

41,539

9,614

3,757

1,550

5587,137

69,092

1,078

1,443

672639

17,767

552,038

> 552,038

Total

Supporting

Services

Expenses

$ 806,454108,894

46.633

3029,590

40,015

4,247

31,193

16.768

(7,274)1,466

48,686

91,682

3075,801

6,387

6,149

28,315

5,538

1,270,881

10,394

$ 1,281,275

Program &

Supporting

Services

Expenses

$ 3,810,795

374.420

55,189

121,195

62,065

110,981

16,844

56,879

156,435

25,507

3,764

103,312

182,472

506,884

280J7882,066

13,809

24.230

71,737

217,077

6.276,439

486,306

$ 6,762,745


5A


STATEMENT OF FUNCTIONAL EXPENSES


Program Services Supporting Services Total

Personnel

Employee benefitsAdvertisingAutomobile and busContract laborDues and subscriptionsInsurance

Licenses and taxes

MiscellaneousOfficeProfessional feesProgram suppliesRepairs and maintenance

Scholarship expenseSeminars and educationSecurity systemTelephoneTravelUtilities

LeeWetherington

YouthClub

$ 697,13647,841

1,43445,07512,2735,266

55,33911,450

28320,267

7,500108,185148,555

1,2797,3352,9418,0078,400

99,339

RoyMcBean

YouthClub

$ 340,18615,205

58011,7804,1052,714

33,9728,251

773,8266,000

84,72536,782

2,4982,6433,447

59543,170

Gene

MatthewsClub

$ 325,23520,089

54727,489

7002,814

28,05511,440

5,6516,000

43,87556,870

634920

3,452390

34,064

Robert &Joan Lee

Club

$ 290,20313,652

89519,37748,562

2,84345,633

7,095155

4,9997,890

47,50433,643

1762,0325,105

13850,948

Newtown

Club

$ 362,95914,376

1014,01715,0832,7996,424

259746

4,500108,535

5,7021,3841,230

4206,463

ArcadiaClub

$ 28,7243,172

17132

5,625678

590

17,9939,737

12296

1,194

SchoolSites

$ 316,93713,896

11,174

4,778

831

224

ProgramSupportServices

$ 540 J 87101,362

5552,6673,6509,2278,2521,4224,334

13,21946,992

137,19017,81920,83912,571

2,18022,767

TotalProgram

Expenses

$ 2,901,567229,593

4,192120,437101,17226,341

177,67539,658

5,10849,29878,882

552,785309,10823,50225,287

8,83222,61140,171

227,521

General

andAdministrative

$ 404,04753,654

790

32,3504,5924,395

70

26,70213,424

11,251

17,759260

6,2397,5995,539

Fund-

Raising

$ 291,73035,54250,056

56

1,0151,677

6898,190

250173

5,808

17,989

1,73315,987

Total

SupportingServices

Expenses

$ 695,77789,19650,846

5632,350

5,6076,072

70689

34,89213,674

17317,059

35,748260

7,97223,586

5,539

Program &Supporting

Services

Expenses

$ 3,597,344318,789

55,038120,493133,52231,948

183,74739,728

5,79784,19092,556

552,958326,16723,50261,035

9,09230,58363,757

233,060

Total Direct Expenses

Depreciation and

amortization

Total Expenses

1,287,905 600,556 568,225 580,850 544,907 68,224 347,840

202,218 70,374 60,770 125,970 767 62

945,233 4,943,740

1,914 462,075

588,671 430,895 1,019,566

12,533 12,533

5,963,306

474,608

$ 1,490,123 $ 670,930 $ 628,995 $ 706,820 $ 545,674 $ 68,286 $ 347,840 $ 947,147 $ 5,405,815 $ 601,204 $ 430,895 $ 1,032,099 $ 6,437,914

The accompanying notes are an mtegral part of these financial statements5B


STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED SEPTEMBER 30, 2019 AND 2018

2019 2018Cash Flows From Operating Activities:

Increase (Decrease) in Net Assets

Adjustments to reconcile change in net assetsto cash provided by operating activities:

Depreciation and amortization

Unrealized (gains) losses on investments

Realized losses (income) on investments

Gain on sale of equipmentStock contributions

Change in value of charitable gift annuity receivable

Change in value of beneficial interest in assets held by others

(Increase) decrease in:

Accounts receivableContributions receivable

Grants receivable

Due from Foundation

Prepaid expenses

Deposits

Increase (decrease) in:

Accounts payable

Accrued expenses

Due to Foundation

Deferred income

Total Adjustments

Net cash provided by operating activities

Cash Flows From Investins Activities:

Cash transferred from investment fund

Proceeds from disposition of assets

Purchase of property and equipment

Net cash used by investing activities

Cash Flows From Financing Activities:

Net increase in cash and cash equivalents

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

$ 2,071,023

486,3065,136

(11,318)(2,000)

(184,079)(30,230)

1,301

37,730(859,724)111,446

(19,249)13,635

101,261(98,541)

(260,642)285,006

(423,962)

1,647,061

29,321

2,000(283,147)

(251,826)

1,395,235

1,099,444

$ 2,494,679

$ (38,376)

474,608(25,103)

(7,874)

4,043

(56,405)

(15,566)30,631

(108,450)79,661

8,262(10,354)

(13,154)402

260,64261,527

682,870

644,494

4,000

(238,595)

(234,595)

409,899

689,545

$ 1,099,444


6

BOYS & GIRLS CLUBS OF SARASOTA COUNTY, WC.NOTES TO THE FINANCIAL STATEMENTS


Note 1 - Summary of Significant Accountins Policies

Omanization and Purposes

Boys & Girls Clubs of Sarasota County, Inc., (the Organization) has been a leading youth-ser/ing

organization since its incorporation in 1967 and provides enriching after-school and summer programs to

thousands of youth, ages 6-18, at six Clubs in Sarasota, Venice, North Port, and Arcadia. The Organization'smission is to enable all young people, especially those who need services the most, to reach their full

potential as productive, caring, responsible citizens. The programs empower youth to excel in school, becomeleaders, adopt healthy habits, and succeed after high school graduation.

Basis of Accounting

The financial statements of the Organization have been prepared on the accrual basis of accounting andaccordingly reflect all significant receivables, payables, and other liabilities.

Basis of Presentation

The financial statements for the Organization are presented in accordance with U.S. generally accepted

accounting principles (U.S. GAAP) as applicable for not-for-profit organizations.

Net assets, revenue, expenses, gains, and losses are classified based on the existence or absence of donor-unposed restrictions. Accordingly, net assets of the Club and changes therein are classified and reported asfollows:

Without donor restrictions -Net assets that are not subject to donor-imposed stipulations.

With donor restrictions - Net assets subject to donor-imposed stipulations that may be met either by

actions of the Organization or the passage of time, as well as net assets subject to donor-imposed

restrictions that must be maintained permanently.

Revenue RecomitionContributions received with donor stipulations that limit the use of donated assets are treated as increases in

net assets without donor restrictions if the restrictions expire (that is, when a stipulated time restriction ends

or purpose restriction is accomplished) m the reporting period in which the revenue is recognized. All otherdonor-restricted contributions are reported as increases in net assets with donor restrictions. When the

purpose of the restriction is accomplished, net assets are reclassified and reported in the statement of activities

as net assets released from restrictions.

Functional Allocation of ExpensesThe costs of providing various programs and other activities have been summarized on a functional basis in

the statement of activities. The expense analysis in the statement of functional expenses present the natural

classification detail of expenses by function. Accordingly, certain costs have been allocated among theprogram and supporting services benefited. Salaries and related expenses have been allocated based on

employee time and effort. Other costs are classified in each functional category based on the underlying

purpose of each transaction.

Cash and Cash Eauivalents

For the purpose of the statement of cash flows, the Organization considers all highly liquid mvestments with

an initial maturity of three months or less to be cash equivalents.

InvestmentsThe Organization has adopted FASB Accounting Standards Codification 958-320-45, Accounting forCertain Investments Held by Not-for-Profit Organizations ("FASB ASC 958-320-45"). This statement

requires reporting investments in equity securities that have readily determinable fair values and for all

investments in debt securities at fair value.

Gains and losses are reported in the statement of activities as increases or decreases in net assets withoutdonor restrictions unless the use of the investments are restricted by explicit donor stipulations.

BOYS & GIRLS CLUBS OF SARASOTA COUNTY, INC.NOTES TO THE FINANCIAL STATEMENTS


Note 1 - Summary of Significant Accounting Policies fcontinued)

Investments fcontinuecT)

Dividends, interest, and other investment income is reported in the period earned as increases in in net assetswithout donor restrictions unless the use of the asset received is limited by donor-imposed restrictions.

Donor-restricted investment income is reported as an increase in net assets with donor restrictions.

Donated Materials and Services

The Organization's policy is to record donated materials and equipment at their estimated fair market values

at the date of receipt. No amounts have been reflected in the statements for donated services, since noobjective basis is available to measure the value of such services. A substantial number of volunteers donated

significant amounts of their time to provide the organization services in its fund-raising efforts.

Promises toGiye

Contributions are recognized when the donor makes a promise to give to the organization that is, in

substance, unconditional. Contributions that are restricted by the donor are reported as increases in net assets

without donor restrictions if the restrictions expire in the fiscal year in which the contributions are recognized.

All other donor-restricted contributions are reported as mcreases in net assets with donor restrictions. When a

restriction expires, net assets are reclassified to net assets without donor restrictions.

The Organization used the allowance method to determine uncollectible unconditional promises receivable.

The allowance is based on prior years' experience and management's analysis of specific promises made.

Deferred IncomeRevenue received from ticket sales and sponsorships for events to be held in the subsequent year is recorded

as deferred revenue and is recognized in the year in which the event takes place.

Allocated Expenses

The costs of providing various programs and other activities have been summarized on a functional basis in

the Statement of Activities and in the Statement of Functional Expenses. Accordingly, certain costs have

been allocated among the programs and supporting services benefited.

Estimates

The preparation of financial statements in confonnity with generally accepted accounting principles reqmresmanagement to make estimates and assumptions that affect certain reported amounts and disclosures.

Accordingly, actual results could differ from those estimates.

Income TaxesThe Organization is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code.

In addition, the organization has been determined by the Internal Revenue Ser/ice not to be a "privatefoundation" within the meaning of Section 509(a) of the Internal Revenue Code.

ASC Topic 740 requires the Company recognize in the financial statements the impact of a tax position, ifthat position is more likely than not of being sustained on audit, based on technical merits of the positions.

The Company has determmed that it does not have any material unrecognized tax benefits or obligations as of

September 30, 2019 and 2018. The tax years 2016 to 2018 remain subject to examination by the InternalRevenue Service.

BOYS & GIRLS CLUBS OF SARASOTA COUNTY, ENC.NOTES TO THE FmANCIAL STATEMENTS


Note 1 - Summary of Sisnificant Accountins Policies (continued)

Fair Value MeasurementsThe Organization adopted FASB Accounting Standards Codification. 820-10 Fair Value Measurements

("FASB ASC 820-10"), which defines fair value, expands disclosure requirements around fair value and

specifies a hierarchy of valuation techniques. FASB ASC 820-10 applies to all assets and liabilities

required to be measured and reported at fair value on a recurring or nonrecumng basis. The fair value

hierarchy is as follows:

Level 1: Quoted prices for identical instruments in active markets.

Level 2: Quoted prices for similar or identical instruments in active markets or non-active markets or

other significant observable inputs.

Level 3: Valuations derived from valuation techniques in which one or more significant inputs or

significant value drivers are unobservable.

The level in the fair value hierarchy within which a fair measurement in its entirety falls is based on the

lowest level input that is significant to the fair value measurement m its entirety.

The following methods and assumptions were used by the Organization in estimating the fair value of its

financial instruments:

Cash and cash equivalents, accounts receivable, and accounts payable - The carrying amount reported inthe statement of financial position approximates fair value because of the short maturity of thoseinstruments.

Investments - The fair value of investments in certain U.S. government securities, corporate bonds andnotes, common and preferred stocks, and money market funds are based on quoted prices in principalactive markets for identical assets as of the valuation date (Level 1). The fair value of commodities,

certain debt and equity securities are valued based on significant other observable inputs, particularly

dealer market prices for comparable investments as of the valuation date (Level 2).Contributions Receivable - The fair value of contributions receivable is estimated by discounting future

cash flows using rates currently offered for deposits of similar remaining maturities or other significant

observable inputs (Level 3).

New Accounting PronouncementsThe Financial Accounting Standards Board recently issued Accounting Standards Update (ASU) No.

2016-14, Not-for'Profit (Topic 958) Presentation of Financial Statements of Not-for-Profit Entities. ThisASU significantly amends the standards for the presentation and accompanying disclosures for nonprofit

organizations. Some of the changes include the following:

• Requires a functional and natiral classifications of expenses.

• Requires the presentation of two classes of net assets instead of three.

• Requires additional disclosure of how a nonprofit organization manages liquidity and communicates

the availability of financial assets to meet cash needs for general expenditures.

• Requires additional disclosures of the amounts and purposes of any Board of Directors3 net asset

designations.

• Requires additional disclosures of the methods used to allocate costs among programs and support

functions.

This standard became effective for nonprofit entities with fiscal years beginning after December 15, 2017

and was adopted by the Organization as of September 30, 2019. The associated reclassifications had no

effect on the reported results of operations.

BOYS & GIRLS CLUBS OF SARASOTA COUNTY, INC.NOTES TO THE FINANCIAL STATEMENTS


NOTE 2 - Liquidity and Availability of Financial Assets

Financial assets available for general expenditure within one year of September 30, 2019 are as

follows:

Fmancial assets, at year end $ 4,584,113

Less those unavailable for general expenditures within one

year, due to:

Restricted by donor with time or purpose restrictions (2,727,082)

Accounts receivable due in more than one year (5825171)

Fhancial assets available within one year $ 1,274,860

The Organization manages its financial assets to be available as its operating expenditures, liabilities,

and other obligations become due. In addition, the Organization invests cash in excess of its current

requirements m a portfolio of investments designed to maximize long-term investments.

Note 3 - Investments

The Organization held the following investments at September 30, 2019 and 2018:

Cash and equivalentsTreasury bills

Corporate bondsCommon stocksMutual funds

Total S 440.607 $ 279.667

Investment income from cash equivalents and investments consisted of the following for the years ended

September 30, 2019 and 2018:2019 2018

Interest and dividend income $ 17,449 $ 27,989Net realized and unrealized gains 1,467 29,472

Total investment income S 18.916 S 57.461

2019

15,580202,096

47,158127,18948.584

Fair Value2018

$ 10,676

56,358139,57373.060

Ngte4-Promises to Give

Unconditional promises to give at September 30, 2019 and 2018, are as follows:2019 2018

Receivable in less than one year $ 608,417 $ 200,026Receivable in one to five years 697,326 100,000

Total unconditional promises to give 1,305,743 300,026

Less discounts to net present value (45,423)Less allowance for uncollectible promises receivable fl30,573) f30,003)

Net unconditional promises to give $ 1.129.747 $ 270.023

Promises to give that are receivable m more than one year are discounted at 5%.

The Organization has also received conditional promises to give. It is not practical to estimate the net

realizable value of such promises.

10

BOYS & GIRLS CLUBS OF SARASOTA COUNTY, INC.NOTES TO THE FmANCIAL STATEMENTS


Note 5 - Property and Equipment

The Organization follows the practice of capitalizing all expenditures for property, furniture, fixtures, and

office equipment in excess of $1,000. Depreciation or amortization of all such items is computed on astraight-line basis over the estimated useful lives for the assets generally as follows:

Furniture and equipment 3-10 yearsVehicles 5 years

Leasehold improvements Life of the lease

Building and building improvements 40 years

The Organization leases land for three facilities under long-term lease agreements with governmental

entities requiring nominal annual payments. No amounts have been recognized for the value of these

lease agreements due to the uncertainty of the value of the leased land at the inception of the leases.

Property and equipment consist of the following at cost:

2019 2018Land $ 54,473 $ 54,473Buildings and improvements 12,912,939 12,796,695

Automotive equipment 134,256 116,265

Furniture and equipment 1,670,648 1,664,145

Landscapmg 379,241 357,997

Swimming pool 626,607 626,607

Tennis/hardbaU courts 57,448 57,448

Total Cost 15,835,612 15,673,630

Less: Accumulated depreciation (7,297,717) (6,932,576)

$ 8,537,895 $ 8,741,054

Depreciation expense for the years ended September 30, 2019 and 2018 was $486,306 and $474,608,

respectively.

Note 6-Leases

The Organization leases office equipment under a noncancelable operating lease, which expires January

2020. At September 30, 2019, future minimum lease payments by year for an operating lease are as follows:

Year ending September 30:

2020 $2021202220232024Thereafter

Total $_

9,7819,7819,7816,0226,0221.004

$ 42.391

Total lease expense for tiie years ended September 30, 2019 and 2018 was $16,618 and $22,579,

respectively.

Note 7 - Trusts Held by Others

There are three known trusts not included in these financial statements for the years ended September 30,2019 and 2018. The first known trust has a bank trust department sendng as trustee and will pay 33.33% of

the remaining value of the trust assets to the Organization upon death of the Grantor's daughter. As of

September 30, 2019 and 2018, the lawyer for the trust believes that there will be no assets left m the trust for

distribution to charity. The second known trust has a bank tmst department serving as tmstee and mcluded theOrganization as one of four charities named as beneficiaries. The Organization's share is 25% of the interest

earned on the total trust assets, which are held in perpetuity at the Community Foundation. Interest is to be

11

BOYS & GIRLS CLUBS OF SARASOTA COUNTY, WC.NOTES TO THE FmANCIAL STATEMENTS


Note 7 - Trusts Held by Others (continued)

paid to the Club annually at a rate established by the Community Foundation's set policy. The third known

trust has a bank tmst department serving as tmstee and will pay 50% of the remaining value of the tmst assetsto the Organization upon death of the Grantor's nephews. As of September 30, 2019, the Organization did

not have a reasonable basis for determining the value of its mterest in the trust.

In 2015, a donor established a charitable gift: annuity with Boys and Girls Club of America nammg theOrganization as beneficiaries of the charitable gift annuity. The terms of this annuity require distribution to

the Organization of the remamder interest on the death of the annuitants. Based on donor life expectancy, the

assumption that the annual rate ofretim will equal the 7.6% payout that is paid to the grantor each year, and

the use of a 2.2% discount rate, the present value of the future benefit expected to be received by the

Organization was estimated to be $80,565 and $50,335 at September 30,2019 and 2018, respectively.

In 2016, a donor established a trust naming the Organization as beneficiary. The terms of this trust requiredistributions to the Organization equal to the greater of 1) the net income of the trust for the period the

distribution is made, or 2) four percent (4%) of the net fair market value of the tmst. The trust was recognizedas an asset m the fiscal year ended September 30, 2019 based on additional information and further

evaluation. Fair market value of the assets held in the trust totaled $892,152 at September 30, 2019 and is

reported as beneficial interest in assets held by others. Distributions totaling $33,200 and $21,140 were

received for the years ended September 20,2019 and 2018, respectively.

Note 8 - Concentration of Credit Risk

The Organization maintains its cash accounts at commercial banks. Such amounts on deposit are insured by

the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per institution. At September 30, 2019and 2018, cash on deposit at commercial banks was $918,955 and $381,562 in excess of the portion msured

by the FDIC, respectively.

Note 9 - Net Assets with Donor Restrictions

Net assets with donor restrictions are available for the following purposes at September 30, 2019 and 2018:

2019 2018Capital projects - see Note 14

Buildhg mamtenance reserves

Contributions receivable

Interest in charitable gift annuityBeneficial mterest in trust

Specific programsTotal net assets with donor restrictions

Note 10 - Retirement Plan

The Organization has a defined contribution plan for the benefit of its employees through the Boys & GMsClubs of America Pension Trust. The annual contribution is 5% of the wages of the employees who meet the

eligibility requirements during the plan year. The plan expense was $89,827 and $69,877 for the years ended

September 30, 2019 and 2018, respectively.

As of January 1, 2017, the Club also began contributing a 2.5% match to a 403(b) retirement plan for eligible

employees. The matching expense was $27,155 and $45,051 for the year ended September 30, 2019 and

2018, respectively.

$

$

1,932,442

691,752484,446

80,565

892,152748,188

4,829,545

$

$

302,611

158,086270,022

50,335

307,9421,088,996

12

BOYS & GIRLS CLUBS OF SARASOTA COUNTY, INC.NOTES TO THE FmANCIAL STATEMENTS


Note 11 - Fair Value Measurements

The following are the assets measured at fair value on a recurring basis at September 30,2019:

Fair Value Measurements at Reporting Date Usins

Mutual FundsCorporate bonds

Common stocks

Charitable gift annuity receivable, netof discount

Total

The following are the assets measured

Mutial FundsCorporate bonds

Common stocks

Charitable gift annuity receivable, netof discount

Total

9/30/2019$ 48,584

47,158329,285

80,565

$ 505.592

I at fair value

9/30/2018$ 73,060

56,358139,573

50.335

$ 319.326

Reconciliation of Level 3 Fair Value Measurements

Balance as of September 30, 2017Change in value of annuity

Balance as of September 30, 2018Change in value of annuity

Balance as of September 30, 2019

Quoted Pricesin ActiveMarkets

for IdenticalAssets (Level 1)$ 48,584

47,158329,285

$ 425.027

on a recurring basis

SignificantObservable

InputsflLevel 2)

$

$ _^____-

at September 30,

SignificantOther

Unobservable

Inputs.evel3'

$

80,565

$ 80.565

2018:

Fair Value Measurements at Reporting Date Using

Quoted Pricesin Active

Markets

for IdenticalAssets (Level 1)

$ 73,06056,358

139,573

$ 268.991

Charitablegift annuity

receivable

$ 50,335

$ 50,33530.230

$ 80.565

SignificantObservable

InputsflLevel 2)

$

s_-_

SignificantOther

Unobservable

Inputs

fLevel$

50,335

$ 50.335

The unrealized losses included in changes in net assets for the period above are reported in net realized

and unrealized losses on investments in the statement of activities for the year ended September 30, 2019

and 2018.

Note 12 - Beneficial Interest in Assets Held by Others

In May 1991, the Board of Directors of the Boys & Girls Clubs ofSarasota County, Inc. ("the Club") and

the Boys & Girls Clubs of Sarasota County Foundation, Inc. ("the Foundation") entered into a mutual

agreement regarding excess funds received by the Club. The agreement calls for all unrestricted majorgifts, defined as those m excess of $20,000, be delivered to the Foundation if they are not needed by the Club

for current operations. The Foundation was not granted variance power over those distributions.

A portion of the income from the Foundation's investments on behalf of the Club is to be distributed to

the Club on a monthly basis for operating purposes. For the years ended September 30, 2019 and 2018

the income received by the Club amounted to $298,944 and $320,502, respectively.

13

BOYS & GIRLS CLUBS OF SARASOTA COUNTY, WC.NOTES TO THE FINANCIAL STATEMENTS


Note 12-Bene^alIntei^stMA^

The Club retained the limited right to withdraw specified principal from the Foundation account upondeclaration of a fiscal emergency if the only reasonable remedy to avoid curtailing essential Clubprograms and maintain fiscal solvency is to draw on the principal of assets transferred to the Foundation.

This declaration must be made by the Board of the Club by vote oftwo-thirds of its directors.

During December 2011, the Foundation transferred an initial deposit of $407,386 to the Community

Foundation of Sarasota County, Inc. ("the Community Foundation"). The Community Foundation is a

nonprofit community foundation that, among other things, offers donors such as the Organization the abilityto participate in the Foundation's investment pool.

The Community Foundation will have the responsibility and authority for the investment of the assets of

the Fund. The Fund may be commingled with other funds held by the Community Foundation to

maximize investment value. The Fund shall be continued as long as the need therefore exists and money

or other property is available in the Fund for its purpose. Variance power was granted to the CommunityFoundation. The exercise of such power shall not be effective until the Community Foundation notifies

the Organization of any decision made to exercise the variance power. Notification should be deliveredin writing within 30 days following the Board's decision. The Community Foundation shall also notify

the Organization of any other action instituted or proposed by any person to vary the purposes, uses ormethod of administration of the Fund.

The beneficial interest is recorded at the fair market value of the Fund as reported by the CommunityFoundation. Changes in the value of the Fund are recorded as changes in beneficial interest in assets held

by others in the statement of activities. As of September 30, 2018, the fair market value of the Fund was$893,453 and the change in the value of the Fund for the year ended September 30, 2018 was $35,765.

In April 2019, the Board elected to formally transfer the entire value of the Fund to the Foundation, and a

donation to the Foundation was recorded for $893,942. The change in the value of the Fund for the year

ended September 30, 2019 was $(5,811).

Note 13-Related Party Ti^nsact^

As of September 30, 2018, the Club owed the Foundation $260,642. As of September 30, 2019, there was

no amount due to or from the Foundation.

Note 14-Capital CamDaign

Boys & Girls Clubs of Sarasota County began operating its sixth club in Arcadia, Desoto County, in July

2018 and started providing children, ages 6 to 11, with year-round programs that help them excel in

school, become leaders and adopt healthy habits. The Club is currently serving at maximum capacity with

nearly 75 children participating in programs each day.

Earlier this year, the City ofArcadia transferred the lease of the Smith-Brown Recreation Center that sits

adjacent to the Boys & Girls Clubs of Sarasota County building. Our goal is to transfonn the structure

into a multi-purpose gymnasium and classrooms for youth with designated space for physical activities,prqject-based learning and enrichment programs that further fosters their personal development. Thefacility will also be available for community use outside of the Club's operating hours and will become a

valuable community asset. Construction is set to begin in early 2020 and is fully funded with donor

contributions. Contributions totaling $1,600,290 have been received as of September 30, 2019 and areincluded in net assets with donor restrictions.

Note 15 - Subsequent Events

Subsequent events have been evaluated through February 11, 2020, the date the financial statements wereavailable to be issued.

14

BOYS & GIRLS CLUBS OF SARASOTA COUNTY, INC.SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


Federal Grantor/

Pass through Grantor/Program Title

U.S. Bureau of Justice Assistance

Passed through the Boys & Girls Clubs of AmericaOJJDP 2018 National Mentormg Program



U.S. Bureau of Justice AssistancePassed through the Boys & Girls Clubs of AmericaOJJDP 2019 National Mentoring Program


Passed through the Boys & Girls Clubs of AmericaOJJDP 2019 National Mentoring Program



U.S. Bureau of Justice AssistancePassed through the Boys & Girls Clubs of America

OJJDP 2019 National Mentoring Program

U.S. Bureau of Justice AssistancePassed through the Boys & Girls Clubs of AmericaOJJDP 2019 National Mentormg Program


Passed through the Boys & Girls Clubs of AmericaOJJDP 2019 National Mentoring Program

U.S. Department of Education21st Century Community Learning Centers

U.S. Department of Education

21 Century Community Learning Centers



Federal

CFDANumber

Grant

Number

Federal

Expenditures

16.726

16.726

16.726

16.726

16.726

16.726

16.726

16.726

84.287

84.287

84.287

84.287

2017-42414 $

2017-42416

2018-43567

2018-43569

2018-43568

2018-43571

2018-43570

2018-43572

93T-2448B-8PGD1

93T-2449B-9PGD1

93T-2448B-8PCC1

93T-2449B-9PCC1

Total expenditures of federal awards IL

353

356

15,200

15,200

15,200

15,200

11,200

15,200

2,647

370,453

13,433

431.578

906.020

See accompanying notes to the schedule of expenditures of federal awards.

15

BOYS & GIRLS CLUBS OF SARASOTA COUNTY, INC.NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


Note A - Basis of Presentation

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity

of Boys and Girls Clubs of Sarasota County, Inc. under programs of the federal government for the year endedSeptember 30, 2019. The infonnation in this Schedule is presented in accordance with the requirements of Title 2

U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of

the operations of Boys and GMs Clubs of Sarasota County, Inc., it is not intended to and does not present the

financial position, changes in net assets, or cash flows of Boys and Guis Clubs ofSarasota County, Inc..

Note B - Summary ofSismficant Accountins Policies

(1) Expenditires reported on the Schedule are reported on the accrual basis of accounting. Such expenditures

are recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement.

(2) Pass-through entity identifying numbers are presented where available.

Note C - Indirect Cost Rate

Boys and GMs Clubs of Sarasota County, Inc. has not elected to use the 10% de minimis indirect cost rate asallowed under the Uniform Guidance.

Note D - Subrecipients

There were no subrecipients paid using federal funds during the year ended September 30,2019.

16

BOYS & GIRLS CLUBS OF SARASOTA COUNTY, INC.SCHEDULE OF FINDINGS AND QUESTIONED COSTS


Summary of Audit Results

.1. The auditors' report expresses an unmodified opinion on the financial statements of Boys & Girls ClubsofSarasota County, Inc.

2. No significant deficiencies relating to the audit of the fmancial statements are reported in the Independent

Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other MattersBased on an Audit of Financial Statements Performed in Accordance with Government Auditing

Standards.

3. No instances of noncompliance material to the financial statements of Boys & Girls Clubs of Sarasota

County, Inc. were disclosed during the audit.

4. No significant deficiencies relating to the audit of the major federal award programs are reported in theIndependent Auditors5 Report on Compliance for Each Major Federal Program and on Internal Control

Over Compliance Required by the Uniform Guidance.

5. The auditors5 report on compliance for the major federal award programs for Boys & Guis Clubs of

Sarasota County, Inc. expresses an unmodified opinion.

6. There were no audit fmdings relative to the major federal award programs for Boys & GMs Clubs ofSarasota County, Inc.

7. The programs tested as major programs mcluded:

CFDANos, Names

84.287 21 Century Community Learning Center

8. The threshold for distinguishing Types A and B programs was $750,000.

9. Boys & Gu-ls Clubs of Sarasota County, Inc. did not qualify as a low-risk auditee.

Findings - Financial Statements Audit

None

Findings and Questioned Costs - Major Federal Award Programs Audit

QuestionedCosts

None None

21

Documents

boys & girls clubs of sarasota county, inc. financial statements