SOROPTIMIST INTERNATIONAL OF THE AMERICAS, INC. …€¦ · 936 Easton Rd., PO Box 754 Warrington, PA 18976 │ 163 S. Broad St., Lansdale, PA 19446 252 W. Swamp Rd., Unit 9, Doylestown,

SOROPTIMIST INTERNATIONAL OF

THE AMERICAS, INC.

FINANCIAL STATEMENTS

YEARS ENDED AUGUST 31, 2014 AND 2013

(See Independent Auditors' Report)

TABLE OF CONTENTS

Independent Auditors' Report 3-4

Financial Statements

Statements of Financial Position 5

Statements of Activities 6-7

Statements of Cash Flows 8

Notes to Financial Statements 9-21

Supplementary Information

Schedule of Agency Funds 23

Schedules of Contributions and Sponsorship 24

Schedules of Net Sales 25

Schedules of Expenses 26-31

Schedules of Program Expenses 32

936 Easton Rd., PO Box 754 Warrington, PA 18976 │ 163 S. Broad St., Lansdale, PA 19446

252 W. Swamp Rd., Unit 9, Doylestown, PA 18901│444 South State St. Suite B12, Newtown, PA 18940

24 Arnett Ave. Suite 111, Lambertville, NJ 08530

215-343-2727 │ www.bbco-cpa.com

INDEPENDENT AUDITORS’ REPORT

To the Board of DirectorsSoroptimist International of the Americas, Inc.Philadelphia, Pennsylvania

We have audited the accompanying statements of Soroptimist International of the Americas,Inc. (SIA) (a non-profit corporation), which comprise the statements of financial position asof August 31, 2014 and 2013, and the related statements of activities and cash flows for theyears 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 financialstatements in accordance with accounting principles generally accepted in the United States ofAmerica; this includes the design, implementation, and maintenance of internal controlrelevant to the preparation and fair presentation of financial statements that are free frommaterial misstatement, whether due to fraud or error.

Auditor’s Responsibility

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 theUnited States of America. Those standards require that we plan and perform the audit toobtain reasonable assurance about whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor’sjudgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the entity’s preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of theentity’s internal control. Accordingly, we express no such opinion. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness ofsignificant accounting estimates made by management, as well as evaluating the overallpresentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all materialrespects, the financial position of Soroptimist International of the Americas, Inc. as of August31, 2014 and 2013, and the changes in its net assets and its cash flows for the years thenended in accordance with accounting principles generally accepted in the United States ofAmerica.

Other Matters

Our audits were conducted for the purposes of forming an opinion on the financial statementsas a whole. The supplementary information on pages 22-32 is presented for purposes ofadditional analysis and is not a required part of the financial statements. Such information isthe responsibility of management and was derived from and relates directly to the underlyingaccounting and other records used to prepare the financial statements. The information hasbeen subjected to the auditing procedures applied in the audit of the financial statements andcertain additional procedures including comparing and reconciling such information directlyto the underlying accounting and other records used to prepare the financial statements or tothe financial statements themselves, and other additional procedures in accordance withauditing standards generally accepted in the Unites States of America. In our opinion, theinformation is fairly stated in all material respects in relation to the financial statements as awhole.

Bee, Bergvall and Company, P.C.Certified Public Accountants

February 10, 2015

Soroptimist International of the Americas, Inc.

Statements of Financial Position

August 31, 2014 and 2013

2014 2013

3,329,598$ 3,429,197$

49,543 21,070

10,315,447 8,958,687

94,407 120,264

214,625 183,476

14,648 14,648

1,657,309 1,733,955

15,675,577$ 14,461,297$

409,542$ 256,254$

1,720 7,794

10,000 8,333

421,262 272,381

2,905,269 2,695,332

1,865,849 1,870,817

10,483,197 9,622,767

15,254,315 14,188,916

15,675,577$ 14,461,297$

Total Net Assets

ASSETS

LIABILITIES AND NET ASSETS

TOTAL ASSETS

Property and equipment, net

Beneficial interest in charitable remainder unitrust

Prepaid expenses

Inventory

Investments

Accounts receivable

ASSETS

Cash and cash equivalents

Total Liabilities

Deferred revenue

Agency funds

Accounts payable and accrued expenses

LIABILITIES

NET ASSETS

TOTAL LIABILITIES AND NET ASSETS

Permanently restricted

Temporarily restricted

Unrestricted

See independent auditors' report and

accompanying notes to the financial statements-5-


Statements of Activities

For the Year Ended August 31, 2014

Program Service Total Temporarily PermanentlyFund Unrestricted Restricted Restricted Total

457,853$ 457,853$ 1,515,886$ -$ 1,973,739$950,890 950,890 - - 950,890150,174 150,174 - - 150,174

1,803,030 1,803,030 129,761 - 1,932,79180,833 80,833 - - 80,833

279,608 279,608 - - 279,608628,941 628,941 - 46,936 675,877

Unrealized gain/(loss) on securities 170,249 170,249 - 813,494 983,743413 413 - - 413

Satisfaction of program restrictions 60,158 60,158 (60,158) - -Satisfaction of time restrictions 1,590,457 1,590,457 (1,590,457) - -

Total Revenue and Support 6,172,606 6,172,606 (4,968) 860,430 7,028,068

115,137 115,137 - - 115,13769,874 69,874 - - 69,874

978,391 978,391 - - 978,391306,361 306,361 - - 306,361

170,642 170,642 - - 170,642104,065 104,065 - - 104,065168,180 168,180 - - 168,18034,056 34,056 - - 34,056

2,407,191 2,407,191 - - 2,407,191281,056 281,056 - - 281,056

128,462 128,462 - - 128,462204,238 204,238 - - 204,23859,938 59,938 - - 59,938

935,078 935,078 - - 935,078

Total Expenses 5,962,669 5,962,669 - - 5,962,669

209,937 209,937 (4,968) 860,430 1,065,399

2,695,332 2,695,332 1,870,817 9,622,767 14,188,916

2,905,269$ 2,905,269$ 1,865,849$ 10,483,197$ 15,254,315$

Convention and meetingsAnnual dues

Sales, net of cost of sales $124,844

Soroptimist International

Contributions

Net assets released from restrictions

Other income

REVENUE AND SUPPORT

Realized gain/(loss) on securitiesInvestment incomeSponsorships

EXPENSES

Fundraising

Board and committeesConventions and meetingsSoroptimist magazineMembership services

Net Assets, end of year

Net Assets, beginning of year

Governors round table

CHANGE IN NET ASSETS

Depreciation

Office and occupancyPersonnel costsPublic relations

Program expensesMiscellaneousProfessional services

2014

Unrestricted

(continued)

See independent auditors' report andaccompanying notes to the financial statements

-6-


Statements of Activities

For the Year Ended August 31, 2013

Program Service Total Temporarily PermanentlyFund Unrestricted Restricted Restricted Total

450,317$ 450,317$ 1,590,457$ -$ 2,040,774$64,265 64,265 - - 64,265

125,036 125,036 - - 125,036

1,428,543 1,428,543 79,736 250,000 1,758,27910,000 10,000 - - 10,000

331,429 331,429 - - 331,429

608,461 608,461 - 37,238 645,699Unrealized gain/(loss) on securities 1,025 1,025 - 398,613 399,638

20,055 20,055 - - 20,055

Satisfaction of program restrictions 160,629 160,629 (160,629) - -Satisfaction of time restrictions 1,593,917 1,593,917 (1,593,917) - -

Total Revenue and Support 4,793,677 4,793,677 (84,353) 685,851 5,395,175

111,474 111,474 - - 111,47447,370 47,370 - - 47,370

2,053 2,053 - - 2,053243,458 243,458 - - 243,458

91,391 91,391 - - 91,391

95,623 95,623 - - 95,623179,026 179,026 - - 179,026

15,526 15,526 - - 15,5262,210,275 2,210,275 - - 2,210,275

223,630 223,630 - - 223,630111,851 111,851 - - 111,851208,107 208,107 - - 208,107

62,810 62,810 - - 62,810946,260 946,260 - - 946,260

Total Expenses 4,548,854 4,548,854 - - 4,548,854

244,823 244,823 (84,353) 685,851 846,321

2,450,509 2,450,509 1,955,170 8,936,916 13,342,595

2,695,332$ 2,695,332$ 1,870,817$ 9,622,767$ 14,188,916$

2013

Unrestricted

CHANGE IN NET ASSETS

Fundraising

Governors round table

Other income

Investment income

Realized gain/(loss) on securities

MiscellaneousProgram expenses

Membership servicesSoroptimist magazine

Conventions and meetingsBoard and committees

REVENUE AND SUPPORTAnnual duesConvention and meetingsSales, net of cost of sales $96,771

ContributionsSponsorships

Office and occupancyDepreciationProfessional services

Net assets released from restrictions

EXPENSES

Net Assets, beginning of year

Net Assets, end of year

Soroptimist InternationalPublic relationsPersonnel costs

See independent auditors' report and

accompanying notes to financial statements-7-


Statements of Cash Flows

For the Years Ended August 31, 2014 and 2013

2014 2013

1,065,399$ 846,321$

to net cash provided (utilized) by operating activities:

128,462 111,851

6,993 10,545

(1,659,620) (1,045,337)

Accounts receivable (28,473) (1,059)

Inventory 18,864 (18,330)

Prepaid expenses (31,149) (48,791)

Accounts payable and accrued expenses 153,288 (11,388)

Agency funds (6,074) (8,608)

Deferred revenue 1,667 (3,460)

(350,643) (168,256)

(51,817) (92,249)

(4,639,108) (3,827,817)

4,941,969 5,126,335

251,044 1,206,269

(99,599) 1,038,013

3,429,197 2,391,184

3,329,598$ 3,429,197$

OPERATING ACTIVITIES

Changes in:

Net realized and unrealized gains on investments

Inventory valuation allowance

Depreciation

Adjustments to reconcile change in net assets

Change in net assets

Cash and cash equivalents, end of year

INCREASE (DECREASE) IN CASH AND

CASH EQUIVALENTS

Proceeds from sales of investments

Net cash provided (utilized) by investing activities

Purchases of investments

Purchases of property and equipment

Cash and cash equivalents, beginning of year

Net cash provided (utilized) by operating activities

INVESTING ACTIVITIES

See independent auditors' report andaccompanying notes to financial statements

-8-


Notes to Financial Statements

August 31, 2014 and 2013

(See Independent Auditors’ Report)

NOTE 1. SUMMARY OF SIGNIFICANT POLICIES

Organization

Soroptimist International of the Americas, Inc. (SIA) (the Organization) wasestablished in 1921. SIA is a volunteer service organization whose memberswork to improve the lives of women and girls in local communities andthroughout the world. The largest groups of members are in the United Statesand Japan, representing 50% and 50% respectively, of the total membership.

Program projects of the Organization are as follows:

Women’s Opportunity Awards: SIA’s major project, the program wasestablished to assist women with primary financial responsibility for theirfamilies to obtain the skills training and education necessary to improve theiremployment status and standard of living for themselves and their family. Thewomen receiving these financial awards may use them for any costs associatedwith their educational efforts, including tuition, books, child care, andtransportation.

Soroptimist STOP Trafficking: Raises awareness in the general populationabout trafficking and sexual slavery.

Violet Richardson Awards: Recognizes young women ages 14-17 engaged involunteer action within their communities or schools.

Soroptimist Workplace Campaign to End Domestic Violence: Raisesawareness about a little addressed domestic violence issue: domestic violenceas a workplace concern.

Soroptimist Club Grants for Women and Girls: Awards Soroptimist clubs tostart or continue projects in their communities that improve the lives of womenand girls.

Soroptimist Disaster Recovery Fund: Provides grants to clubs and regions forrelief work that benefits women and girls in areas affected by a natural disasteror acts of war.

Soroptimist Celebrating Success: Annual awards program to recognizesuccessful club projects that improve the lives of women and girls and thatpromote Soroptimist as an organization with that mission.

-9-



August 31, 2014 and 2013

(See Independent Auditors’ Report)

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Use of estimates

The preparation of financial statements in conformity with accounting principlesgenerally accepted in the United States of America requires management tomake estimates and assumptions that affect the reported amounts of assets andliabilities and disclosure of contingent assets and liabilities at the date of thefinancial statements and the reported amounts of revenue and expenses duringthe reporting period. Actual results could differ from those estimates.

Cash and cash equivalents

The Organization considers short-term securities purchased with a maturity ofthree months or less to be cash equivalents.

Investments

Investments are stated at fair value which is determined by quoted market prices.Donated investments are recorded as contributions at fair value at the time ofdonation.

Inventory

Inventory consists of jewelry, supplies and other items with the SIA insignia,and is stated at the lower of cost or market, as determined on the average costbasis.

Property and equipment

Property and equipment are stated at cost. Items over $1,000 considered to haveuseful life of longer than one year are capitalized. Depreciation is provided overthe estimated useful lives of the respective assets and is calculated on thestraight-line basis over the following useful lives:

Computer software 3 yearsComputer hardware 3 to 5 yearsFurniture and fixtures 5 to 10 yearsBuilding and improvements 30 years

-10-



August 31, 2014 and 2013



Split-interest agreements

SIA has received a contribution in a charitable remainder unitrust.

Under the charitable remainder unitrust arrangement, SIA is not the trustee anddoes not exercise control over the assets contributed to the trust; therefore SIArecognizes this arrangement as beneficial interest in a trust. SIA has recorded astemporary restricted contribution revenue and as a beneficial interest, the fairvalue of the beneficial interest based on the present value of the estimated futurebenefits to be received when the trust assets are distributed. The discount rateused in calculating the present value of these future benefits was 5%.Subsequent changes in fair value of the beneficial interest in the trust assets arerecorded as changes in the value of spit-interest agreements in temporaryrestricted net assets.

Contributions

Contributions, including annual dues, promises to give and grants, are recordedas unrestricted, temporarily restricted or permanently restricted supportdepending on the existence and/or nature of donor restrictions. When a donorrestriction expires, that is, when a stipulated time restriction ends or the purposeof the restriction is accomplished, temporarily restricted net assets arereclassified to unrestricted net assets. Donor restricted contributions that arereceived and expanded within the same fiscal year are reported as unrestrictedsupport.

Net assets are categorized as follows:

Unrestricted net assets are not subject to donor-imposed restrictions or thedonor-imposed restrictions have expired.

Temporarily restricted net assets are subject to donor-imposed restrictionsthat permit SIA to use or expand the assets as specified. The restrictionswill be met either by actions of SIA and/or the passage of time.

Permanently restricted net assets are subject to donor-imposed stipulationsthat neither expire by passage of time nor can be fulfilled or otherwiseremoved by SIA. The related income and/or gains may be available forSIA’s use as specified by the donor.

-11-



August 31, 2014 and 2013



Agency funds

The Organization receives funds from member clubs on behalf of otherorganizations, which it holds and, periodically make remittances to them. Thesefunds are not owned by the Organization nor does it exercise discretion overreceipts or disbursements. Consequently, they are included as a liability on thestatements of financial position. Receipts and disbursements of agency funds arenot included in the statements of activities.

Sponsorships and deferred revenue

SIA receives sponsorship revenue through agreements with third parties forcause-related marketing. Deferred revenue as of August 31, 2014 and 2013represents the unearned portion of the sponsorship revenue and payments forpreorders of a sales item.

Income taxes

SIA is exempt from federal income tax under Section 501 (c)(3) of the InternalRevenue Code. However, certain income from unrelated activities, if any, maybe subject to taxation.

The Organization follows the accounting guidance for uncertainty in incometaxes using the Financial Accounting Standards Board (FASB) ASC 740, IncomeTaxes. Using that guidance, tax positions initially need to be recognized in thefinancial statements when it is more likely than not the position will be sustainedupon examination of the tax authorities. It also provides guidance on therecognition, measurement, and classification of income tax uncertainties, alongwith any related interest or penalties.

The Organization’s federal tax return is subject to audit by taxing authorities.The Organization’s returns open tax audit periods are for the fiscal years August31, 2011-2013. As of August 31, 2014, the Organization had no uncertain taxpositions that qualify for either recognition or disclosure in the 2013 or 2014financial statements.

-12-



August 31, 2014 and 2013



Accounts Receivable

Receivables are estimated to be fully collectible by management and noallowance for bad debts has been recorded. If a receivable is determined to beuncollectible, it will be charged directly to operations in the year thedetermination is made. Receivables are considered to be delinquent when theyare 90 days past their due date.

Fair Value of Financial Instruments

The Organization follows Fair Value Measurements as required by the FASBStandards Codification, which applies to reported balances that are required orpermitted to be measured at fair value under an existing accountingpronouncement. The Codification emphasizes that fair value is a market-basedmeasurement, not an entity-specific measurement. Therefore, a fair valuemeasurement should be determined based on the assumption that marketparticipants would use in pricing the asset or liability and establishes a fair valuehierarchy.

The fair value hierarchy consists of three levels of inputs that may be used to

measure fair value as follows:

Level 1 - Inputs that utilized quoted prices (unadjusted) in active markets for

identical assets or liabilities that the Organization has the ability to access.

Level 2 - Inputs that include quoted prices for similar assets and liabilities in

active markets and inputs that are observable for the asset or liability, either

directly or indirectly, for substantially the full term of the financial

instrument. Fair values for these instruments are estimated using pricing

models, quoted pricing models, quoted prices of securities with similar

characteristics, or discounted cash flows.

Level 3 - Inputs that are unobservable inputs for the asset or liability, which

are typically based on an entity’s own assumptions, as there is little, if any,

related market activity.

-13-



August 31, 2014 and 2013



Fair Value of Financial Instruments (continued)

In instances where the determination of the fair value measurement is based on

inputs from different levels of the fair value hierarchy, the level in the fair value

hierarchy within which the entire fair value measurement falls is based on the

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

The Organization also adopted the Fair Value Option for Financial Assets and

Liabilities under the FASB Standards Codification. This allows entities the

irrevocable option to elect fair value for the initial and subsequent measurement

for certain financial assets and liabilities on an instrument-by-instrument basis.

The Organization has not elected to measure any existing financial instruments

at fair value, as permitted under the Codification. However, the Organization

may elect to measure newly acquired financial instruments at fair value in the

future.

The following table represents the Organization’s fair value hierarchy for those

investments, excluding money market funds, measured at fair value on a

recurring basis as of August 31, 2014 and 2013:

For the year ended August 31, 2014Level 1 Level 2 Level 3

Investments 10,315,447$ -$ -$

For the year ended August 31, 2013

Level 1 Level 2 Level 3

Investments 8,958,687$ -$ -$

Reclassifications

Certain prior year balances have been reclassified to conform with the currentyear presentation

-14-



August 31, 2014


NOTE 2. CONCENTRATION OF CREDIT RISK

The Organization maintains cash accounts that, at times, may exceed federally-insured limits. SIA has not experienced any losses from maintaining cashaccounts in excess of federally-insured limits. At August 31, 2013, uninsuredbalances were $1,526,198. At August 31, 2014, uninsured balances were$1,414,615.

NOTE 3. INVESTMENTS

Investments are composed of the following:

2014 2013

Common stock 7,939,389$ 6,523,551$Government bonds/

Fixed income securities 1,514,060 2,312,467Money Market (CGA Restricted) 107,105 107,105

Mutual funds 754,893 15,564

Total 10,315,447$ 8,958,687$

Mutual funds of $51,240 and $15,564 at August 31, 2014 and 2013, respectively,represent funds restricted for the Executive Director’s pension (see Note 7). Acorresponding liability is included in accounts payable and accrued expenses.

The net realized and unrealized gains on investments are as follows:

2014 2013

Net realized gain on sale of securities 675,877$ 645,699$

Net unrealized gain/(loss) 983,743 399,638

Total 1,659,620$ 1,045,337$

Brokerage and investment fees at August 31, 2014 and 2013 amounted to $113,305and $107,468, respectively, and are included in professional services expenses.

-15-



August 31, 2014


NOTE 4. PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

2014 2013

Computer software 520,669$ 490,669$

Computer hardware 123,438 107,696

Furniture and fixtures 216,017 209,943

Building and improvements 2,324,133 2,324,133

3,184,257 3,132,441

Accumulated depreciation (1,526,948) (1,398,486)

Total 1,657,309$ 1,733,955$

Depreciation expense for the years ended August 31, 2014 and 2013 was$128,462 and $111,851, respectively.

NOTE 5. NET ASSETS

Unrestricted net assets

Unrestricted net assets for the Organization consisted of the Program Service Fund.The Program Service Fund net assets were $2,905,269 and $2,695,332 at August31, 2014 and 2013, respectively. Net assets in the Program Service Fund areundesignated.

Temporarily restricted net assets

Temporarily restricted net assets are available for the following purposes:

Temporarily Restricted Net Assets

2014 2013

Dues received in advance 1,515,886$ 1,590,457$

Charitable remainder unitrust 14,647 14,647

Disaster recovery 335,316 265,713

Total 1,865,849$ 1,870,817$

Net assets during the years ending August 31, 2014 and 2013, were released

from donor restrictions by incurring expenses satisfying the restricted purposes.

-16-



August 31, 2014


NOTE 5. NET ASSETS (Continued)

2014 2013Purpose of Restriction:

Disaster recovery 60,158$ 160,629$Time Restriction: 1,590,457 1,593,917

Total 1,650,615$ 1,754,546$

Permanently restricted net assets

Permanently restricted net assets are invested to earn income to support program

projects. The principal is invested in government obligations, marketable debt

securities, marketable equity securities, and real estate. Income from

investments is recorded as revenue in the unrestricted funds. For the years ended

August 31, 2014 and 2013, income earned on these investments amounted to

$196,817 and $216,924, respectively. Unrealized gains and losses are added to

principal and recorded as revenue in the permanently restricted funds on the

statements of activities. Realized gains are recorded as permanently restricted

and are available for operations under the revenue requirements of the

investment policy. Realized gains in excess of the amounts designated for

operations are recorded as temporarily restricted net assets.

NOTE 6. FUNCTIONAL EXPENSES

Functional expenses for the years ended August 31, 2014 and 2013 are as follows:

2014 2013

4,364,988$ 2,655,206$803,758 1,190,085

374,462 304,868

419,461 398,695

5,962,669$ 4,548,854$

Program awardsMembership

Program Services

Total

Administration

Fundraising

-17-



August 31, 2014


NOTE 7. RETIREMENT PLANS

The Organization provides a deferred contribution savings plan for its employeesunder Section 401(k) of the Internal Revenue Code. Employees may contributea percentage of their salary, up to federal limits. The Organization matchesemployee contributions up to 3%. In addition, the Organization makes anadditional contribution of 3% based on the employees’ annual compensation.For the years ended August 31, 2014 and 2013, employer contributions to theplan were $97,874 and $93,497, respectively.

In addition, the Organization provides a supplemental pension plan for theExecutive Director under Section 457 of the Internal Revenue Code.Contributions to this supplemental pension plan made by the Organization forthe benefit of the Executive Director for the years ended August 31, 2014 and2013 were $51,240 and $15,564, respectively. Funds are maintained in aseparate investment account, and are included within investments on thestatements of financial position.

NOTE 8. COMMITMENTS

SIA leases certain office equipment under an operating lease expiring in April2017. Rent expense for the office equipment for the years ended August 31, 2014and 2013 was approximately $19,953 and $20,742, respectively.

The following is a schedule by year of approximate future minimum rentalpayments required under the equipment operating lease that has a remaining non-cancellable lease term in excess of one year as of August 31, 2014:

Year Ending August 312015 21,561$

2016 12,348

2017 8,112

-18-



August 31, 2014


NOTE 9. ENDOWMENTS

The Organization’s endowments consist of individual funds established for avariety purposes. The endowments consist of unrestricted and permanentlyrestricted investments. As required by GAAP, net assets associated withendowment funds are classified and reported based on the existence or absenceof donor-imposed restrictions.

Interpretation of Relevant Law: The Board of Directors for the Organizationhave interpreted the law as requiring any donor-restricted contributions as beingclassified as unrestricted, temporally restricted, or permanently restricteddepending on the nature for the restriction. The Organization considers thefollowing factors in making a determination to appropriate or accumulateddonor–restricted endowment funds:

(1) The duration and preservation of the fund(2) The purpose of the Organization and the donor-restricted endowment

fund(3) General economic conditions(4) The possible effect of inflation and deflation(5) The expected total return from income and the appreciation of

investments(6) Other resources of the Organization(7) The investment policies of the Organization

The Permanently Restricted Net Asset Reserve Fund (formerly called theEndowment Fund) exists for the purpose of long-term growth of assets for SIA.Preservation of capital is the primary investment objective for the fund withgeneration of operating income as a secondary goal. Interest, dividends andcapital gains from the Restricted Reserve help to fund Soroptimist projects suchas Women’s Opportunity Awards, the Violet Richardson Awards, and specialprojects such as the domestic violence prevention initiatives. As required byGAAP, net assets associated with endowment funds are classified and reportedbased on the existence or absence of donor-imposed restrictions.

-19-



August 31, 2014


NOTE 9. ENDOWMENTS (Continued)

Change in Endowment Net Assets for the Fiscal Year Ended August 31, 2014

Permanently

Unrestricted Restricted Total

Net Assets, Beginning of Year 824,718$ 9,622,767$ 10,447,485$

Investment Return:

Investment Income 196,817 - 196,817

Realized and Unrealized Gain/(Loss) 641,284 860,430 1,501,714

Total Investment Return 838,101 860,430 1,698,531

Donations - - -Appropriations for Operating Expenses - - -

Net Assets, End of Year 1,662,819$ 10,483,197$ 12,146,016$

Change in Endowment Net Assets for the Fiscal Year Ended August 31, 2013

PermanentlyUnrestricted Restricted Total

Net Assets, Beginning of Year 852,000$ 8,936,916$ 9,788,916$

Investment Return:

Investment Income 216,924 - 216,924

Realized and Unrealized Gain/(Loss) 607,794 435,851 1,043,645

Total Investment Return 824,718 435,851 1,260,569

Donations - 250,000 250,000

Appropriations for Operating Expenses (852,000) - (852,000)

Net Assets, End of Year 824,718$ 9,622,767$ 10,447,485$

-20-



August 31, 2014


NOTE 9. ENDOWMENTS (Continued)

Return Objectives and Risk Parameters: The risk measure of the portfolio is tohave no loss in any quarter or consecutive down quarters of more than 10% to15%. This risk figure is measured continuously and not over a market cycle. Forpractical purposes this will be measured as decline in value from the last positivequarter. The total return should meet or exceed the total of the revenue targetincluding the rate of inflation and fees. The specific asset allocation for thisportfolio will be set by the investment manager and the Board of Directors.Allocation provisions will be reviewed on a regular basis and may be changedfrom time to time by the board. In general, the ratio of stocks to bonds in theportfolio should approximate 60:40. These allocations may fluctuate within 10%at the discretion of the money manager.

Strategies Employed for Achieving Objectives: The Restricted Reserve shall beinvested in a portfolio of quality bonds and stocks which shall provide safetythrough diversification of investments and may reflect varying rates of returnprovided the overall rate of return is consistent with the risk that the board iswilling to accept.

Spending Policy and How the Investment Objectives Relate to Spending Policy:In order to meet programmatic goals, the board of directors may authorizewithdrawals from the restricted reserves of up to 10% on an annual basis. A three-year rolling average of the portfolio’s market value, using no less than 6observations, shall be used as the basis for this calculation. The source of thesewithdrawals will be dividends, interest and capital gains. The frequency andamount of each withdrawal will be determined by the executive director andcommunicated with the investment manager.

NOTE 10. SUBSEQUENT EVENTS

The Organization has evaluated events and transactions for potential recognition or

disclosure in the financial statements through the date of this report which is the

date of financial statement were available to be issued.

-21-

SUPPLEMENTARY INFORMATION


Schedule of Agency Funds


Beginning Contributions EndingBalance Received Distributions Balance

1,926$ -$ (1,926)$ -$

Dec. 10 - Birthing in the Pacific 5,868 - (5,868) -Dec. 10 - See Solar, Cook Solar - 4,355 (2,635) 1,720

7,794$ 4,355$ (10,429)$ 1,720$

Beginning Contributions Ending

Balance Received Distributions Balance

4,001$ 6,875$ (8,950)$ 1,926$Dec. 10 - Birthing in the Pacific 12,401 130,192 (136,725) 5,868

Total 16,402$ 137,067$ (145,675)$ 7,794$

Project Matching

Total

Fund

Fund

2014

2013

Project Matching

-23-


Schedules of Contributions and Sponsorship


2014 2013

Founders Pennies 188,312$ 192,062$Region Contributions 2,904 8,802Club Giving 690,890 584,593

Memorials/ Honorariums 4,964 5,270Laurel Society 703,390 519,892Disaster Relief Contributions 129,761 79,731Corporate Contributions 80,833 10,000

Convention Fundraising 10,275 -Combined Federal Campaign 1,732 2,410Bequests 49,264 353,171New Girl Program 28,630 -

Club grant 102,289 -Live Your Dream Contributions 8,550 5,192

Miscellaneous 11,830 7,156

Total 2,013,624$ 1,768,279$

-24-


Schedules of Net Sales


2014 2013

214,005$ 163,584$6,348 3,328

28,019 20,865

Live Your Dream sales 14,254 16,74312,392 17,287

275,018 221,807

(124,844) (96,771)

150,174$ 125,036$

Printed materialJewelry

Total Net Sales

Revenues

Totals revenues

Sales-shipping and handling

Miscellaneous items

Cost of Sales

-25-


Schedules of Expenses


2014 2013

13,561$ 18,747$

10,557 7,601- 519

Club liability insurance 39,288 40,5203,223 5,821

Supplies and miscellaneous 17,762 17,973Travel - -

30,746 20,293

115,137$ 111,474$

23,042$ 31,393$

23,282 11,03423,550 4,943

69,874$ 47,370$

406,090$ -$29,855 -

5,550 -20,748 -16,577 715

170 -

230,775 -Freelance writing 6,040 -

4,063 -131,165 -

4,845 -5,133 2552,318 -

336 1,083

Space rental 51,476 -

Translation 12,361 -Insurance 8,478 -

11,935 -

3,619 -26,857 -

978,391$ 2,053$

Transportation

Gifts and gratuitiesInterpretation/production

PrintingPromotional materialsRegistrationSite visits

Speaker

Tour, special events

MembershipClub mailings with postage

Mail ballot printing/postageNew member kits

Magazine translation

Total Soroptimist Magazine

Digitization of magazine

Translations

Total Membership Services

Soroptimist MagazineMagazine production

Magazine postage and handling

Conventions and MeetingsAudio visualBoards and guest

Credentials and callDecoratorsEntertainmentEquipment rental and labor

Food functions

Total Conventions and Meetings

-26-


Schedules of Expenses (Continued)


2014 2013

76,666$ 66,251$43,217 37,99528,891 32,46765,225 44,280

213,999 180,993

7,815 5,98610,482 6,122

928 43375 -

Supplies and miscellaneous expenses 11,080 10,039

28,329 24,729

59,009 46,919

- -

Region leadership training and support 21,162 5,25012,191 10,296

33,353 15,546

Total Board and Committee Expenses 306,361$ 243,458$

738$ 92$3,912 6,0812,293 1,945

61,115 21,2753,423 5,961

Sponsorship 80,679 -18,482 56,037

170,642$ 91,391$

Lodging

Special assignments

Board training

Board and Committee ExpensesBoard Meetings

Travel

Region leadership travel

Fund development council-meetings

Total Committee Expenses

MealsProduction

Total Board Meetings

Officers' ExpensesPresident

SCLC

Official visits

Total Officers' Expense

Committee Expenses

FundraisingPrintingTranslationsPostage

Laurel Society expensePlanned Giving

Other fundraising expense

Total Fundraising

-27-




2014 2013

52,469$ 45,257$

8,706 17,56813,923 14,304

Translation 3,226 -23,172 13,011

2,569 5,483

104,065$ 95,623$

157,810$ 169,027$- -- 773

10,370 9,226

168,180$ 179,026$

159$ 636$12,904 10,000

7,551 397- -

3,712 4,113Live Your Dream Marketing firm 5,633 -

3,437 -660 380

34,056$ 15,526$

Freelance writingAwards/competitions fees

DuesSI expensesDelegates

Supplies and miscellaneous expensesLive Your DreamsTranslations

Travel, lodging, meals

Total Soroptimist International

Public RelationsNews release/ad placement/misc.New release - photos

Travel

Soropotimist International

Governors Round Table

MealsLodging

InterpretationExpenses and supplies

Total Governors Round Table

Total Public Relations

-28-




2014 2013

140,518$ 130,261$191,206 147,477

1,631,541 1,529,59119,159 8,729

8,265 -884 1,281

132,432 124,61724,207 21,428

2,148,212 1,963,384

122,680 117,9532,308 2,1156,579 5,8296,476 5,558

Commuter benefit fees 802 744Health savings account 22,260 21,195Relocation expense - -

97,874 93,497

258,979 246,891

2,407,191$ 2,210,275$

6,007$ 4,865$7,052 3,423

Staff recognition/luncheon 4,983 4,290

18,392 14,417- -

6,345 870

42,779 27,865

Office and Occupancy Expenses

Staff ExpenseExecutive director expenses

Employee Benefits

Health insuranceLife insuranceDisability insuranceWorkmen's compensation

Pension expense

Total Employee Benefits

Total Personnel Cost

Total Staff Expense

Total Payroll and Payroll Taxes

Personnel CostPayroll and Payroll Taxes

AdministrativeFundraisingProgramTemporary help

InternsRecruitment advertisingPayroll taxes - FICAPayroll taxes - Unemployment

Dues, membership, fees

Educational workshops

Staff travel to regionsGeneral travel and lodging

(continued)

-29-




2014 2013

13,430$ 13,822$43,682 35,006

57,112 48,828

5,734 10,55980,171 55,665

Club/Region website maintenance 300 244Office equipment 2,629 1,762

14,243 15,34315,918 11,967

118,995 95,540

3,561 6,89322,862 12,369

26,423 19,262

Communications26,969 25,287

8,778 6,848

35,747 32,135

281,056$ 223,630$

Office and Occupancy Expenses (Continued)Building Expense

Utilities1709 maintenance

Postage and express

Total Communications

Total Office and Occupancy Expenses

Total Equipment and Maintenance

Telephone/Fax/Internet

Total Building Expense

Equipment and MaintenanceComputerSoftware

Rental and maintenancePostage equipment and maintenance

Supplies

Stationery and paperGeneral office

Total Supplies

-30-




2014 2013

128,462$ 111,851$

21,600$ 18,850$19,430 40,52131,646 28,979

3,655 3,49514,602 8,794

113,305 107,468

204,238$ 208,107$

59,938$ 62,810$

5,027,591$ 3,602,594$

935,078$ 946,260$

5,962,669$ 4,548,854$

Program Expenses

Legal feesInsurance

Total Expenses

Miscellaneous Expenses

Professional ServicesAudit and tax preparation

Grand Total

Depreciation

Payroll services

Other professional supportInvestment fees

Total Professional Services

-31-


Schedules of Program Expenses


2014 2013

501,728$ 461,306$- 2,762

62,078 59,500- -

223,666 156,389- 2,502

60,156 160,629

8,041 4,661Partnership with Soroptimist International of Europe - 152LYD 63,219 98,359

16,190 -

935,078$ 946,260$

Women's Opportunity AwardsSoroptimist STOP TraffickingViolet Richardson AwardsSoroptimist Workplace Campaign to End Domestic Violence

Total

New Girl Project

Soroptimist Club Grants for Women and GirlsRuby Award

Soroptimist Disaster Recovery Fund

Soroptimist Celebrating Success

-32-

Documents

SOROPTIMIST INTERNATIONAL OF THE AMERICAS, INC. …€¦ · 936 Easton Rd., PO Box 754 Warrington, PA 18976 │ 163 S. Broad St., Lansdale, PA 19446 252 W. Swamp Rd., Unit 9, Doylestown,