united way of the midlands audit report 2019...jun 30, 2019 · positionof united way of the...

UNITED WAY OF THE MIDLANDS AND SUBSIDIARY

FINANCIAL REPORT

JUNE 30, 2019

______________________________________________________________________________________

UNITED WAY OF THE MIDLANDS AND SUBSIDIARY

FINANCIAL REPORT YEAR ENDED JUNE 30, 2019

TABLE OF CONTENTS Page

INDEPENDENT AUDITORS' REPORT …………………………………………………………………………………1 and 2

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated statements of financial position …………………………………………….…………………….………3 Consolidated statement of activities and changes in net assets – 2019……………….…………………….………4 Consolidated statement of activities and changes in net assets – 2018……………….…………………….………5 Consolidated statement of functional expenses – 2019 ………………………………….…………………….………6 Consolidated statement of functional expenses – 2018 ………………………………….…………………….………7 Consolidated statements of cash flows ………………………………………………….…………………….…………8 Notes to consolidated financial statements ……………………………………….………………………….…….9 - 24

SUPPLEMENTAL SCHEDULE

Consolidating statement of financial position …………………………………………….………………..............25 Consolidating statement of activities and changes in unrestricted net assets …………………………..........26 Consolidating statement of activities and changes in temporarily restricted net assets …………….….……27 Consolidating statement of functional expenses..……...………………………………………………….….28 - 30

______________________________________________________________________________ INDEPENDENT AUDITORS’ REPORT

To the Board of Directors United Way of the Midlands Columbia, South Carolina

We have audited the accompanying consolidated financial statement of United Way of the Midlands and its subsidiary which comprise the consolidated statement of financial position as of June 30, 2019 and 2018 and the related consolidated statements of activities and changes in net assets, functional expenses and cash flows for the years then ended, and the related notes to the consolidated financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated 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 audits to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated 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 consolidated 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 consolidated financial statements.

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

508 HAMPTON STREET, 1ST FLOOR • COLUMBIA, SC 29201 • 803-799-5810 • FAX 803-99-5554 • www.mjcpa.com MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

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www.mjcpa.com

______________________________________________________________________________

Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of United Way of the Midlands and its subsidiary as of June 30, 2019 and 2018 and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Report on Supplementary Information

Our audits were conducted for the purpose of forming an opinion on the consolidated financial statements as a whole. The accompanying supplementary information is presented for purposes of additional analysis and is not a required part of the consolidated financial statements. Such information is the responsibility of management, was derived from, and relates directly to the underlying accounting and other records used to prepare the consolidated financial statements. The information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the consolidated financial statements as a whole.

Columbia, South Carolina October 21, 2019

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UNITED WAY OF THE MIDLANDS AND SUBSIDIARY CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

JUNE 30, 2019 AND 2018

ASSETS Current Assets Cash and cash equivalents Investments Annual campaign pledges receivable (net of allowance of $683,702 for 2019 and $716,556 for 2018) Current portion of capital campaign receivable Grants receivable Designations processing income receivable Other receivables Prepaid expenses Total current assets

$

2019

1,926,009 1,719,747

3,149,415 -

269,727 126,197

19,092 63,257

7,273,444

$

2018

2,329,652 1,644,969

3,201,33452,500

270,282129,305

13,70573,528

7,715,275

Non-Current Assets Property and equipment, net Endowed funds Total non-current assets

5,435,935 915,260

6,351,195

5,705,493898,448

6,603,941

Total assets 13,624,639 14,319,216

LIABILITIES AND NET ASSETS Current Liabilities Designations payable Accounts payable Special funds held for agencies Grants payable Compensation related benefit payable Deferred revenue Total current liabilities

959,412 280,747 301,366 157,074 165,177

-1,863,776

1,010,197191,873323,738306,267142,174

5,0001,979,249

Net Assets Without Donor Restrictions Undesignated Board designated for future capital and operating needs

Total without Donor Restrictions With Donor Restrictions - time and purpose Total net assets

8,232,243 3,089,776

11,322,019 438,844

11,760,863

9,668,4992,200,986

11,869,485470,482

12,339,967

Total liabilities and net assets $ 13,624,639 $ 14,319,216

See notes to consolidated financial statements.

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UNITED WAY OF THE MIDLANDS AND SUBSIDIARY CONSOLIDATED STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS

YEAR ENDED JUNE 30, 2019

Without Donor With Donor Restrictions Restrictions Total

Revenues and Other Support Gross campaign results prior years $ 244,691 $ - $ 244,691 Less, donor designations (113,713) - (113,713) Less, provision for uncollectible pledges 33,208 - 33,208 Net campaign revenue prior years 164,186 - 164,186

Gross campaign results 2018 - 9,650,678 9,650,678 Less, donor designations - (2,403,440) (2,403,440) Less, provision for uncollectible pledges - (683,702) (683,702) Capital campaign results - 27,503 27,503 Flood relief fund 4,992 Net campaign revenue 2018 - 6,596,031 6,596,031

Grants 2,205 1,688,207 1,690,412 Public Support to WellPartners 10,385 10,385 Sponsorship 167,609 5,370 172,979 Accounting services income 236,099 - 236,099 Contracts 69,433 69,433 Building rent income 62,520 - 62,520 Gifts in kind 262,891 - 262,891 Investment income 76,799 - 76,799 Unrealized gain on investments 48,126 - 48,126 (Loss) on asset disposal (9,480) - (9,480) Special event revenue 59,404 - 59,404 Miscellaneous income 133,231 220 133,451 Capital campaign income released from restrictions 52,500 (52,500) -Annual campaign income released from restrictions 6,543,356 (6,543,356) -Grant funds released from restrictions 1,725,610 (1,725,610) -Total revenues and other support 9,604,874 (31,638) 9,573,236

Expenses Gross funds awarded 6,147,575 - 6,147,575 Less, donor designations (2,517,153) - (2,517,153) Net funds awarded 3,630,422 - 3,630,422

Grants 2,322,235 - 2,322,235 Other program services 1,771,259 - 1,771,259 Total program services 7,723,916 - 7,723,916

Management and general 790,392 - 790,392 Fundraising 1,638,032 1,638,032 Total supporting services 2,428,424 - 2,428,424 Total functional expenses 10,152,340 - 10,152,340

(Decrease) in net assets (547,466) (31,638) (579,104)

Net assets at beginning of year 11,869,485 470,482 12,339,967

Net assets at end of year $ 11,322,019 $ 438,844 $ 11,760,863


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UNITED WAY OF THE MIDLANDS AND SUBSIDIARY CONSOLIDATED STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS


Without Donor With Donor Restrictions Restrictions Total

Revenues and Other Support Gross campaign results prior years $ 198,500 $ - $ 198,500 Plus, donor designations 133,234 - 133,234 Less, provision for uncollectible pledges (77,925) - (77,925)

Net campaign revenue prior years 253,809 - 253,809

Gross campaign results 2017 - 9,954,149 9,954,149 Less, donor designations - (2,213,671) (2,213,671) Less, provision for uncollectible pledges - (716,556) (716,556) Capital campaign results - 3,521 3,521 Flood relief Fund - 150,050 150,050 Net campaign revenue 2016 - 7,177,493 7,177,493

Grants 91,288 1,503,318 1,594,606 Sponsorship 144,550 - 144,550 Accounting services income 238,155 - 238,155 Contracts 83,132 - 83,132 Building rent income 57,885 - 57,885 Gifts in kind 283,955 - 283,955 Investment income 67,921 - 67,921 Unrealized loss on investments (4,639) - (4,639) (Loss) on asset disposal (3,460) - (3,460) Special event revenue 24,820 - 24,820 Miscellaneous income 83,672 12,040 95,712 Capital campaign income released from restrictions 161,816 (161,816) -Annual campaign income released from restrictions 7,006,257 (7,006,257) -Grant funds released from restrictions 1,961,054 (1,961,054) -Total revenues and other support 10,450,215 (436,276) 10,013,939

Expenses Gross funds awarded 6,320,718 - 6,320,718 Less, donor designations (2,080,436) - (2,080,436) Net funds awarded 4,240,282 - 4,240,282

Grants 2,411,487 - 2,411,487 Other program services 1,672,083 - 1,672,083 Total program services 8,323,852 - 8,323,852

Management and general 643,470 - 643,470 Fundraising 1,827,911 1,827,911 Total supporting services 2,471,381 2,471,381 Total functional expenses 10,795,233 - 10,795,233

(Decrease) in net assets (345,018) (436,276) (781,294)

Net assets at beginning of year 12,214,503 906,758 13,121,261

Net assets at end of year $ 11,869,485 $ 470,482 $ 12,339,967


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UNITED WAY OF THE MIDLANDS AND SUBSIDIARY CONSOLIDATED STATEMENT OF FUNCTIONAL EXPENSES

YEAR ENED JUNE 30, 2019

Expenditures RFP distributions Other payouts

Grants and subcontract s

Communit y events

Salaries Benefits Pa yroll taxes

Professional fees Su pplies

Dental su pplies

Lab costs Tele phone

Posta ge

Occu pancy

E quipment maintenance

Printin g and advertising

Staff develo pment

Membershi p dues

Insuranc e

E quipment/building

De preciation

Other ex penses

United Wa y dues

Totals

Agency Special Distributions Initiatives

$ 3,036,486 $ -1,987 172,292

- 1,139 158 489

- 174,249 - 58,001 - 14,016

6,766 15,438 - 2,560 - -- -- 1,188 - 472 - 73,554 - 3,435

100 8,860 - 15,468 - 210 - 3,333 - 819 - 26,216

100 24 - 13,062

$ 3,045,597 $ 584,825

$

$

Grants

-60,528

378,015 -

901,860 162,035 66,177

209,523 21,726 97,890 59,551 10,133

347 138,868

6,356 8,123

19,344 10,447 4,014

17,177 124,338 25,783

-2,322,235

Communications and Community

Relations

$ ---

149 64,126 19,398 5,084

53,418 501

--

362 1,669 1,977 1,048

183,813 2,381

314 1,017

250 7,997

9 4,163

$ 347,676

Other Program Services

Community Community Impact Resources

$ - $ -3,500 -

- -2,450 2,480

547,288 163,987 148,030 55,291 45,440 12,988 56,477 11,615 5,414 1,099

- -- -

4,660 1,031 1,612 353

25,413 5,621 21,826 2,980 8,694 8,746

11,556 2,120 1,241 217

13,073 2,892 88,841 710

102,826 22,744 (25,231) 25 53,533 12,041

$ 1,116,643 $ 306,940

Total Other

Program Services

$ -3,500

-5,079

775,401 222,719 63,512

121,510 7,014

--

6,053 3,634

33,011 25,854

201,253 16,057 1,772

16,982 89,801

133,567 (25,197) 69,737

$ 1,771,259

Supporting Services

Management Total and Support

General Fundraising Services

$ - $ - $ -- - -- - -

1,031 135,702 136,733 431,694 754,459 1,186,153 114,978 223,413 338,391 35,392 60,671 96,063 41,996 139,611 181,607 4,311 5,933 10,244

- - -- - -

2,505 4,635 7,140 1,805 2,562 4,367

13,661 25,601 39,262 7,243 13,401 20,644

916 55,814 56,730 7,847 20,483 28,330

443 2,799 3,242 7,281 13,002 20,283 1,942 3,194 5,136

55,275 102,272 157,547 33,295 20,947 54,242 28,777 53,533 82,310

$ 790,392 $ 1,638,032 $ 2,428,424

$

$

Total

3,036,486 238,307379,154142,459

3,037,663781,146239,768534,84441,54497,89059,55124,5148,820

284,69556,289

275,06679,19915,67144,612

112,933441,66854,952

165,10910,152,340


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UNITED WAY OF THE MIDLANDS AND SUBSIDIARY CONSOLIDATED STATEMENT OF FUNCTIONAL EXPENSES

YEAR ENED JUNE 30, 2018

Expenditures RFP distributions Other payouts

Grants and subcontract s

Communit y events

Salaries Benefits Pa yroll taxes

Professional fees Su pplies

Dental su pplies

Lab costs Tele phone

Posta ge

Occu pancy

E quipment maintenance

Printin g and advertising

Staff develo pment

Membershi p dues

Insuranc e

E quipment/building

De preciation

Other ex penses

United Wa y dues

Totals

Agency Special Distributions Initiatives

$ 3,344,946 $ -33,333 297,181

- 13,539 - 1,008 - 266,300 - 69,661 - 22,568

13,000 22,518 - 10,597 - -- -- 1,784 - 414 - 78,459 - 5,112

234 5,340 241 14,416

- 842 - 4,425 - 1,131

(297) 36,824 - (3,294) - -

$ 3,391,457 $ 848,825

$

$

Grants

91,280 -

531,607 -

911,439 161,183 71,550 92,641 30,800 86,502 53,412 22,584

255 138,868

3,957 16,557 12,465 5,399 3,210

16,130 130,068 31,580

-2,411,487

Communications and Community

Relations

$ ---

212 63,427 19,617 5,123 5,474 2,219

--

375 2,727 1,865 1,012

210,202 318 177 930 238

7,744 19

3,591 $ 325,270

Other Program Services

Community Community Impact Resources

$ - $ -4,845 3,000

- -4,275 5,137

619,397 80,891 166,798 26,602 53,403 6,791 55,755 9,467 8,386 804

- -- -

5,329 552 1,179 132

26,497 2,743 22,729 1,488 4,770 10,450

21,556 2,501 3,276 566

13,219 1,368 9,725 350

110,014 11,389 (21,973) 27 68,093 5,281

$ 1,177,273 $ 169,539

Total Other

Program Services

$ -7,845

-9,624

763,715 213,017 65,317 70,696 11,409

--

6,256 4,038

31,105 25,229

225,422 24,375 4,019

15,517 10,313

129,147 (21,927) 76,966

$ 1,672,083

Supporting Services

Management Total and Support

General Fundraising Services

$ - $ - $ -- - -- - -

1,625 136,346 137,971 323,036 922,925 1,245,961 69,029 220,782 289,811 28,179 77,512 105,691 45,280 116,420 161,700 5,590 11,444 17,034

- - -- - -

2,841 5,871 8,712 2,054 2,514 4,568

14,126 29,194 43,320 7,665 15,841 23,506 1,217 50,899 52,116 7,211 33,124 40,335 1,342 4,128 5,470 7,253 14,564 21,817 1,964 3,722 5,686

58,652 121,214 179,866 39,207 5,201 44,408 27,199 56,210 83,409

$ 643,470 $ 1,827,911 $ 2,471,381

$

$

Total

3,436,226 338,359545,146148,603

3,187,415733,672265,126360,55569,84086,50253,41239,3369,275

291,75257,804

299,66991,83215,73044,96933,260

475,60850,767

160,37510,795,233


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UNITED WAY OF THE MIDLANDS AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED JUNE 30, 2019 AND 2018

Cash Flows from Operating Activities Change in net assets Adjustments to reconcile changes in net assets to net cash

Used in operating activities: Depreciation Reversal of allowance for uncollectible pledges Unrealized (gain) loss on investments Loss on disposal of property and equipment (Increase) decrease in current assets Annual campaign pledges receivable Capital campaign pledges receivable Grants receivable Designation processing income receivable Other receivables Prepaid expenses

Increase (decrease) in current liabilities Designations and grants payable Accounts payable Special funds held for agencies Other liabilities Net cash (used in) operating activities

$

2019

(579,104)

441,668 (32,854) (48,126)

9,480

84,773 52,500

555 3,108 (5,387)

10,271

(199,978) 111,878

(22,371)(5,000)

(178,587)

$

2018

(781,294)

475,608 (12,049) 4,639 3,460

918,788 158,296 12,418 3,418 2,569

85,239

(852,105)(3,680)

17,104 (64,325)(31,914)

Cash Flows from Investing Activities Purchases of investments Purchases of property and equipment Net cash (used in) investing activities

(43,466) (181,590) (225,056)

(97,025)(37,494)

(134,519)

Net (decrease) in cash (403,643) (166,433)

Cash Beginning

Ending $

2,329,652

1,926,009 $

2,496,085

2,329,652


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__________________________________________________________________

UNITED WAY OF THE MIDLANDS AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

United Way of the Midlands (Organization) is a nonprofit corporation, founded in 1925, that is governed by a volunteer Board of Directors (Board) which consists of diverse local area leadership. The Board is supported by various committees that have oversight over different aspects of the Organization's operations; including finance, resource development, community impact, and communications. The current mission of the Organization is to determine, and respond to, the critical health and human service needs of the six counties (Richland, Lexington, Newberry, Fairfield, Orangeburg, and Calhoun) in the Midlands area of South Carolina. The Organization conducts an annual fundraising campaign throughout the midlands area to raise funds through corporate and individual pledges and gifts. Campaign funds are raised for the purpose of funding specific grant requests from affiliated local agencies that will have the greatest, measurable impact on the quality of health and human services in the midlands. The organization also works in collaboration with others to leverage community impact resources for the purpose of obtaining grants from various funding sources that support the health and human services needs of the area.

Fundraising campaigns are conducted in the fall of each year to fund programs offered through participating agencies in the subsequent year. The Organization is dependent upon undesignated contributions from corporate and individual donors to this campaign to support its program services. The level of such contributions can be affected by economic conditions and other factors. In addition, the choice on the part of some donors to designate their gifts to specific agencies can result in reduced funding available for grant making, grant matching and leveraging grants, and other initiatives that might be undertaken consistent with the mission of the Organization. A decrease in undesignated contributions could adversely affect the Organization's ability to raise funds, maintain infrastructure, provide services, and to invest funds in social service agencies' programs.

The Organization's Community Impact program areas include: 1) Financial Stability which focuses on helping low income individuals and families increase their income to meet basic needs as well as to begin the long-term process of saving and building assets. The Organizaton also provides leadership in reducing homelessness including data management and grant development for the local homeless coalition. The Organization also provides support through other organizations for those in crisis and assists others in critical areas such as free income tax preparation. 2) Education Initiatives include projects such as the Midlands Reading Consortium and other programs, which bring volunteers, and funding together to help at-risk students improve reading skills, academic success, and education levels. This would include supporting after school reading programs, increasing parental involvement and other programs focused on mentoring and assisting at-risk youth. 3) Health Initiatives help ensure access to health care and promote wellness. Funds in this area promote enrollment for uninsured individuals in plans that address chronic disease and primary care management, free dental treatment for children and uninsured adults. The Organization also funds programs that provide meals for seniors.

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__________________________________________________________________ NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Community Partners of the Midlands, LLC DBA WellPartners:

During fiscal 2012/2013, Family Service Center of South Carolina, an agency who received grant funding from the Organization, declared bankruptcy. A portion of the work performed by this agency was the providing of and children's free dental services and eye care. In order to prevent the loss of the services provided by this portion of the agency's work, the Organization formed Community Partners of the Midlands, LLC DBA WellPartners (Community Partners), a wholly owned subsidiary of the Organization. Community Partners is funded primarily by grants from the Organization, Palmetto Health, and Lexington Medical Center to Community Partners.

Community Partners was formed for the purpose of providing free and/or low-cost dental and vision care to indigent children and adults living in the Midlands region of South Carolina. The Children's Volunteer Program works to provide comprehensive dental care for children ages 5 through 18 years of age attending SC schools in the seven districts located in Richland and Lexington Counties. 100% of dental services are provided free-of-charge by volunteer dentists and hygienists to children enrolled in their school's Free or Reduced Lunch Program, and do not receive Medicaid or dental insurance benefits. Community Partners provides the same dental services found in our community general or pediatric dental offices. From July 2018 through June 2019, our Children's Program in Richland and Lexington Counties served 876 individual children with the support of more than 150 volunteer dentists. The Richland and Lexington Adult Dental Program, which works to address dental emergencies and improve the oral health of uninsured, underserved adults over the age of 18 provides free dental care. The Lexington Adult clinic, with the support of core part-time Dental Team, is in operation one and a half days per week. The Richland Adult clinic transitioned to full time in February 2016 with a full time staff team of three. From July 2018 through June 2019, the Adult Program served 3,958 individual adults. In addition, 1630 people received eye care services and/or corrective lenses from the vision clinic.

Consolidation policy:

The consolidated financial statements for the year ended June 30, 2019, include the accounts of the parent company, the Organization and its wholly owned subsidiary, Community Partners, herein collectively referred to as "the Organization". All material intercompany balances and transactions have been eliminated in consolidation.

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Compliance:

The Organization is certified in compliance with all Membership requirements promulgated by United Way Worldwide. Included in these are compliance in the areas of governance, accounting standards and presentation, and Requirement M, which governs the organizations handling of designation payments. The Organization pledges its commitment and is in full compliance with Requirement M. This supplement, promulgated in 2004 and 2005 by United Way Worldwide, governs the calculation of Cost Recovery Rates and the timing of notifications and designation payouts. The organization meets or exceeds these standards in all instances. The Organization's calculation of Cost Recovery Rates is verifiable based on the audited 990 results available to the public. The Cost Recovery Rate consists of a three-year moving average rate that is disclosed to United Way Worldwide, donors, and all organizations receiving designations. Organizations receiving designations receive full reporting on donors designating to their organization, including amounts pledged, collected, and paid.

Accounting method:

The Organization uses the accrual method of accounting reflecting income earned regardless of when received and expenses incurred regardless of when paid.

Net Assets:

Net assets, revenues, gains, and losses are classified based on the existence or absence of donor imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows:

Net Assets Without Donor Restrictions – Net assets available for use in general operations and not subject to donor restrictions. The governing board has designated, from net assets without donor restrictions, net assets for future capital and operating needs. These board designated net assets are legally unrestricted and can be used by the Organization for any purpose.

Net Assets With Donor Restrictions – Net assets subject to donor restrictions. Some donor-imposed restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is, when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both.

Expenditures that relate to the fulfillment of time and purpose restrictions are shown as a reduction in revenue with donor restrictions as net assets released from restrictions.

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Net Assets:

Net assets held in perpetuity are subject to donor-imposed stipulations that neither expire by the passage of time nor can be fulfilled or otherwise removed by actions of the Organization. The restrictions stipulate that the net assets be maintained permanently by the Organization but permit the Organization to expend all or part of the income generated in accordance with the provisions of the agreement. The Organization had no net assets held in perpetuity as of June 30, 2019 and 2018.

To insure observance of limitations and restrictions placed on the use of resources available to the Organization, the accounts of the Organization are maintained in accordance with the principles of fund accounting. This is the procedure by which resources for various purposes are classified for accounting and reporting purposes into funds established according to their nature and purposes.

Unrealized and realized gains and losses, and dividends and interest from investing activities may be included in either of these net asset classifications depending on donor-imposed restrictions and the Organization’s interpretation of relevant state law.

Use of Estimates:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Revenue and Revenue Recognition:

Contributions received and unconditional promises to give are measured at their fair values and are reported as increases in net assets without donor restriction. The Organization reports gifts of cash and other assets as with donor restrictions if they are received with donor stipulations that limit the use of the donated assets, or if they are designated as support for future periods. When a donor restriction expires, that is, when a stipulated time restriction ends, or purpose restriction is accomplished, net assets with donor restrictions are reclassified to net assets without donor restrictions and reported in the statement of activities as net assets released from restrictions.

Unconditional promises to give are recognized when the promises are received, and allowances are provided for promises estimated by management to be collectible. Unconditional promises due within the next fiscal year are reflected as current receivables, while promises due after one year are reflected as long-term receivables.

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Revenue and Revenue Recognition:

Gifts of land, buildings, and equipment are presented as net assets without donor restrictions unless explicit donor stipulations specify how the donated assets must be used. Gifts of long-lived assets with explicit restrictions that specify how the assets are to be used and gifts of cash or other assets that must be used to acquire long-lived assets are reported as net assets with donor restrictions. Absent explicit donor stipulations about how long those long-lived assets must be maintained, the Organization reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in service.

Cash and Cash Equivalents:

The Organization considers all cash accounts, which are not subject to withdrawal restrictions or penalties, and all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. The carrying amount of cash equivalents approximates fair value.

Allowance for Uncollectible Receivables and Pledges:

The allowance for uncollectible pledges has been established to value pledges at their estimated net realizable value. The estimated allowances have been calculated based on management’s judgment of prior collection history and other analysis of individual pledges and are applied to the gross campaign net of direct paid designations. Annual pledges not collected after 18 months are written off against the allowance.

Investments:

Investments are stated at aggregate current market value, as determined by the last reported sales price on the last business day of the fiscal year. Increases or decreases in market value are recognized as income or losses in the period in which they occur. Appreciation (depreciation) in fair value of investments represents an aggregate of increases (decreases) in the market value of investments held throughout the year and the difference between net purchase price and end of the year market value for investments purchased during the year.

Investment in Plant:

Expenditures for the acquisition of property and equipment in excess of $500 are capitalized at cost. Donations of property and equipment are recorded as support unless the donor has restricted the donated asset for a specific purpose. Depreciation is calculated using the straight-line method over the following estimated useful lives:

13



Investment in Plant (Continued):

Years Buildings 20 - 40 Leasehold improvements 5 - 20 Furniture and equipment 5 - 7 Computer software 5

Compensated Absences:

The Organization's employees are entitled to accrue and carry forward annual leave subject to a maximum number of hours and length of employee service. Prior year leave that is carried forward to the next year must be used by December 31 of that year. Any leave that was carried forward from the prior year that is still left at December 31 of the current year is forfeited.

Allocation of Functional Expenses:

The costs of providing the Organization's programs have been summarized in the statement of functional expenses. Expenses directly attributable to a specific functional area of the Organization are reported as expenses of those functional areas. A portion of general and administrative costs that benefit multiple functional areas (indirect costs) have been allocated across programs and supporting services based on the proportion of full-time employee equivalents of a program or supporting service versus the total organizational full-time employee equivalents.

Donated Services and In-Kind Contributions:

A large number of volunteers donate substantial amounts of time toward the annual campaign and the various community activities; however, donated services are only recognized if they require specialized skills, are provided by those individuals or companies that possess those skills, and would need to be purchased if they were not donated, in accordance with the Not-for-Profit Revenue Recognition topic of the Financial Accounting Standards Board Accounting Standards Codification (FASB ASC).

Donated property and other in-kind contributions are recognized in the financial statements at fair market value when received. The Organization received donated services and in-kind contributions of approximately $262,891 for the year ended June 30, 2019, and $283,955 for the year ended June 30, 2018.

14



Fundraising Costs:

The Organization expenses all fundraising costs as they are incurred.

Advertising Expenses:

The Organization expense advertising costs as they are incurred. Advertising costs were approximately $162,043 for the year ended June 30, 2019, and $205,970 for the year ended June 30, 2018.

During fiscal year, 2014/2015 United Way Worldwide (UWW) recommended that each local United Way should begin recording its pro-rata share of donated national advertising from the National Football League, the Ad Council and other organizations, received by UWW on behalf of the member United Ways. The Organization’s share of in-kind national advertising totaled $83,598 for the year ended June 30, 2019, and $88,687 for the year ended June 30, 2018 and is recorded in printing and advertising.

Income Taxes:

The Organization is exempt from federal and state income taxes under Section 501(c)(3) of the Internal Revenue Code. However, the Organization is subject to federal income taxes on unrelated business income. The Organization had no unrelated business income for the years ended June 30, 2019 and 2018. Therefore, no provision for income taxes was made.

Management has evaluated the Organization’s tax positions and concluded that the Organization had taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance.

Concentration of Risk:

Cash and cash equivalents: The Organization maintains its cash in cash deposit accounts, which at times during the year may exceed amounts covered by insurance provided by the U.S. Federal Deposit Insurance Corporation (FDIC). The Organization has not experienced any losses in such accounts and feels the commercial banks they use are financially sound. The organization's cash balances exceeded the FDIC limit by $1,449,071 at June 30, 2019. The Organization does not believe it is exposed to any significant risk on its cash balances.

Investments: The Organization maintains its investments with a brokerage firm, which at times during the year may exceed amounts covered by insurance provided by the U.S. Securities Investment Protection Corporation (SIPC). The Organization's investment balances exceeded that limit by approximately $948,000 at June 30, 2019.

15



Concentration of Risk (Continued):

Pledges receivable/revenue: Substantially all pledges receivable and revenues are from individuals, businesses, or nonprofit organizations in Columbia, South Carolina and surrounding areas. Pledges receivable from one company equaled approximately 41% of net campaign pledges receivable at June 30, 2019, and 34% at June 30, 2018.

Pledge revenues from one company totaled approximately 18% of total revenues and 25% of gross campaign revenues for the year ended June 30, 2019. Pledge revenues from the same company's corporate, payroll, and individual giving equaled approximately 17% of total revenues and 23% of gross campaign revenues for the year ended June 30, 2018.

New Accounting Pronouncement:

During the year ended June 30, 2019, the Organization adopted the requirements of the FASB’s Accounting Standards Update (ASU) 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities. This Update addresses the complexity and understandability of net asset classification, deficiencies in information about liquidity and availability of resources (Note 2), and the lack of consistency in the type of information provided about expenses and investment return between not-for-profit entities. A key change required by ASU 2016-14 is the net asset classes used in these financial statements. Amounts previously reported as unrestricted net assets are now reported as net assets without donor restrictions and amounts previously reported as temporarily and permanently restricted net assets are now reported as net assets with donor restrictions. The ASU has been applied retrospectively to all periods presented.

16


NOTE 2. LIQUIDITY AND AVAILABILITY OF RESOURCES Financial assets available for general expenditure, that is, without donor or other restrictions limiting their use, within one year of the statement of financial position date, comprise the following:

2019 2018

Cash and Cash Equivalents $ 1,926,009 $ 2,329,652 Investments 2,635,007 2,543,417 Pledges Receivable, Net 3,149,415 3,253,834 Grant & Processing Income Receivable 395,924 399,587 Other Receivables 19,092 13,705 Total financial assets available within one year 8,125,447 8,540,195

Less: Amounts unavailable for general expenditures Restrictions by donors with purpose restrictions 438,844 470,482

Amounts unavailable to management without Board Approval Quasi -Endowment 915,260 898,448 Board Designated Capital Reserve Funds 36,880 35,165 Board Designated Operating Reserve Funds 2,137,636 2,165,823

3,089,776 3,099,436

Available to management for general expenditures within one year $ 4,596,827 $ 4,970,277

As part of the budgeting process, the Organization seeks to structure its financial assets to be available as its general expenditures, liabilities, and other obligations come due. To help manage unanticipated liquidity needs the Organization has a committed line of credit of $1,000,000, which it could draw upon. Additionally, the Organization has Board Designated net assets without donor restrictions that, while the Organization does not intend to spend these for purposes other than identified, the amounts could be available for current operations if necessary.

NOTE 3. ANNUAL CAMPAIGN PLEDGES RECEIVABLE

Campaign pledges receivable as of June 30, 2019 and 2018, are summarized as follows:

2019 Net 2018 Net Pledges Due in Pledges Due in Less than one Less Than One

year Year Campaign pledges receivable:

2016 United Way Campaign $ ‐ $ 2,091 2017 United Way Campaign 360 3,198,235 2018 United Way Campaign 3,149,055 1,008

$ 3,149,415 $ 3,201,334

17

__________________________________________________________________

NOTE 3.

NOTE 4.

NOTE 5.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

ANNUAL CAMPAIGN PLEDGES RECEIVABLE (CONTINUED)

The allowance for doubtful accounts was approximately $683,700 at June 30, 2019, and $716,600 at June 30, 2018. Pledges were discounted by the allowance for doubtful accounts. The allowance is calculated based on management’s judgment of prior collection history and other analysis of individual pledges.

Donors may choose to designate all or part of their contributions to specific charitable organizations. These transactions are reported in the statement of activities as part of the current year United Way of the Midlands Annual Campaign and are then deducted as amounts designated to other organizations to arrive at net campaign revenue. Amounts so deducted are carried as liabilities until paid to the designated charitable organization. Also, donor designated pledges are assessed both a fundraising and a management and general fee based on actual historical costs in accordance with United Way Worldwide Membership Requirements as outlined in their publication titled "United Way Worldwide Cost Deduction Standards for Membership Requirement M."

CAPITAL CAMPAIGN PLEDGES RECEIVABLE

The Organization started a capital campaign in fiscal year 2014 - 2015 to raise money for its new building. The capital campaign was completed in 2019 and fully collected. The Organization has no capital campaign pledges receivable as of June 30, 2019.

RESERVE FUND

The Board of Directors (Board) has designated an operating reserve fund at the Organization. The purpose of this fund is to reserve for future cash shortfalls or operating needs. The Board has approved a reserve fund policy for governing these funds. According to the reserve fund policy, the Board must approve any withdrawal or replenishment of the funds. It also sets a required fund balance at 25% of operating expenses expected in the following fiscal year. Furthermore, investments in the reserve fund are invested according to the Organization's investment policy (see Note 6). The fund balance was approximately $125,435 over the required level at June 30, 2019, based on the 2019 -2020 budget, and approximately $143,827 over the required level at June 30, 2018, based on the 2018 - 2019 budget. The reserve fund was made up of the following at June 30, 2019 and 2018:

2019 2018 Cash and cash equivalents $ 457,324 $ 556,016 Investments 1,409,350 1,341,449 Investments - other 270,962 268,356

Total reserve funds 2,137,636 2,165,821

Capital Reserve Fund Investments 36,880 35,165

Total Reserve Fund $ 2,174,516 $ 2,200,986

18


NOTE 5. RESERVE FUND (CONTINUED)

In 2016-2017, the Board designated a capital reserve fund for the purpose of ensuring sufficient funds are available for capital expenditures needed to maintain the Organization’s facilities and property. A policy was established for governing these funds. According to the policy, the Organization shall endeavor to contribute $35,000, or amount the Finance Committee deems appropriate, to the Capital Reserve Fund annually until the targeted reserve of $600,000 is achieved. Investments in the capital reserve fund are invested according to the Organization’s investment policy. No contribution was made for fiscal year 2018-2019.

NOTE 6. INVESTMENTS

The Organization's investment decisions are managed pursuant to a board approved investment policy. All brokerage and banking institutions managing the Organization's investments were provided copies and have agreed to abide by this policy. The policy restricts investments to fixed income investments consisting of certificates of deposit, money market funds, guaranteed government securities, and AA rated or above commercial paper with an average maturity of less than three years.

Short-term investments are carried at fair value, which approximates cost in accordance with the Not-for-Profit Entities - Investments - Debt and Equity Securities topic of the FASB ASC.

Investments consist of certificates of deposit and corporate bonds, which are carried at the quoted market value of the securities as of the last business day of the reporting year. Investment income or loss (including realized gains and losses on investments, interest, and dividends) is included in the change of net assets in the accompanying statement of activities.

The following is a summary of the market value of investments as of June 30, 2019 and 2018:

2019 2018 Certificates of deposits $ 270,962 $ 268,356 Government bonds - -Corporate bonds 1,448,785 1,376,613 Totals $ 1,719,747 $ 1,644,969

The following schedule summarizes the investment return on non-endowed investments, for the years ended June 30, 2019 and 2018:

2019 2018 Interest and dividends $ 43,461 $ 40,288 Unrealized gains (losses) 30,160 (37,312) Totals $ 73,621 $ 2,976

CD's with original maturities greater than three months and remaining maturities less than one year are classified as short-term while those with remaining maturities greater than one year are classified as long-term. CD's are reported at cost plus any accrued interest through the reporting date.

19


NOTE 6. INVESTMENTS (CONTINUED)

Investment securities are exposed to various risks, such as interest rate, market and credit risk. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is at least reasonably possible that changes in risks in the near term would materially affect the amounts reported in the statement of financial position.

Investment fees of $65 were incurred for the years ending June 30, 2019 and 2018. These fees are in the accompanying consolidated statements of activities, netted against investment income. .

NOTE 7. FAIR VALUE MEASUREMENTS

The Organization adheres to the Fair Value Measurements and Disclosures topic of the FASB ASC 820, which defines fair value, establishes a consistent framework for measuring fair value, and expands disclosure requirements about fair value measurements. Topic 820 requires, among other things, the Organization to maximize the use of observable inputs and minimize the use of unobservable inputs in its fair value measurement techniques.

Topic 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Topic 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The standard describes three levels of inputs that may be used to measure fair value:

Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities traded in active markets.

Level 2 Inputs to the valuation methodology included quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted process that are observable for the assets or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the assets or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the assets or liability.

Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

Cash and cash equivalents, accounts receivable, and pledges receivable due in less than one year are stated at the carrying amounts, which approximate the fair value because of the short maturity of these instruments. Pledges receivable due in more than one year are discounted to net present value.

20


NOTE 7. FAIR VALUE MEASUREMENTS (CONTINUED)

Financial assets measured at fair value on a recurring basis are as follows:

June 30, 2019 Level 1 Level 2 Level 3 Total

Assets Corporate bonds $ 1,448,785 $ 1,448,785 Certificates of deposit Endowed funds

270,962 915,260

270,962 915,260

Totals $ 270,962 $ 1,448,785 $ 915,260 $ 2,635,007

June 30, 2018 Level 1 Level 2 Level 3 Total

Assets Corporate bonds $ - $ 1,376,613 $ - $ 1,376,613 Certificates of deposit 268,356 - - 268,356 Endowed funds - 898,448 898,448

Totals $ 268,356 $ 1,376,613 $ 898,448 $ 2,543,417

The Endowed Fund at the Central Carolina Community Foundation ("CCCF") classified as Level 3, consists of long-term investments held by third party (see note 8). Management estimates the investment's fair value using information supplied by the third-party. However, the third-party information supplied does not describe the underlying investments that make up the Organization's funds. As a result, no observable inputs are present in order for the Organization's management to assess fair value. The Endowed Fund at CCCF had the following activity during the years ended June 30, 2019 and 2018.

2019 2018 Beginning Balance $ 898,448 $ 849,168

Interest income 33,338 27,633 Realized gains 16,810 30,575 Unrealized gains 1,156 2,098 Management fees (9,692) (9,800) Deposits and withdrawals, net (24,800) (1,226)

Ending balance $ 915,260 $ 898,448

NOTE 8. ENDOWMENTS

The Organization has transferred funds it has received over the years to two accounts at CCCF and acts as a quasi-endowment. These funds are invested by CCCF and are presented at market value, which was $915,260 as of June 30, 2019, and $898,448 as of June 30, 2018. Each year CCCF allots a certain amount of the original investment, which may be withdrawn by the Organization. The Organization withdrew $24,800 in 2019 and $13,000 in 2018.

Foundation support fees were incurred on the quasi-endowment funds of $9,692 for the year ending June 30, 2019 and $9,800 for the year ending June 30, 2018. The support fee helps to cover the costs of administering each fund and allows the Community Foundation to make important contributions to our community such as acting as a catalyst on local community issues, building community collaborations and offering technical assistance to make local charities more effective in meeting our community's needs.

21


NOTE 9. PROPERTY AND EQUIPMENT

Property and equipment consists of the following as of June 30, 2019 and 2018:

2019 2018 Land $ 534,447 $ 534,447 Buildings and Improvements 4,791,354 4,791,354 Furniture and equipment 1,886,089 1,829,864 Computer software 155,055 149,925 Capital projects in progress 100,000 -

7,466,945 7,305,590 Less: accumulated depreciation (2,031,010) (1,600,097) Property and equipment, net $ 5,435,935 $ 5,705,493

Capital projects in progress represents a new website that begins service in fiscal year 2019-20. There are no future commitments to this project.

NOTE 10. LINE OF CREDIT

At July 1, 2017, the Organization has a $1,000,000 line of credit agreement with a commercial bank. There are no borrowings against the line at June 30, 2019 and 2018. Interest on the outstanding balance is due monthly at the 30-day LIBOR plus 1.5% per annum. The line of credit is unsecured. The line expired December 15, 2018. It was renewed December 13, 2018 for $1,000,000 until December 15, 2019.

NOTE 11. ASSETS RELEASED FROM DONOR RESTRICTIONS

Net assets released from time and purpose restrictions consisted of the following during the years ended June 30, 2019 and 2018:

2019 2018 Time Restriction

Annual campaign pledges $ 6,543,356 $ 7,006,257

Purpose Restriction Special campaign for new building 52,500 161,816 Grants and other programs 1,725,610 1,961,054 Total net assets released from restrictions $ 8,321,466 $ 9,129,127

22

__________________________________________________________________

NOTE 11.

NOTE 12.

NOTE 13.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

ASSETS RELEASED FROM DONOR RESTRICTIONS (CONTINUED)

Net assets with donor restriction were available for the following purposes at June 30, 2019 and 2018:

2019 2018 Time Restriction Future campaign's income $ 19,150 $ 2,888

Purpose Restriction Capital campaign for new building Community partners dental Flood Relief Fund

-153,411

1,118

52,500145,552120,515

Strengthening partnerships 9,192 9,192 Midlands Eye Care UWW - County Health Rankings Healthy SC initiatives

-367 105

9,85118,000

105 Vitamin D program Youth in Transition

72 5,382

727,413

Nord Foundation - Trauma + Resilience 61,152 Eat Smart Move More SC - - BB&T Expanded Youth Support Grant BlueCross BlueShield Grant

-47,733

46,447-

Wells Fargo Food Insecurity Grant Other grants and initiatives Total temporarily restricted net assets

86,800 -54,362 57,947

$ 438,844 $ 470,482

Net assets with donor restrictions at June 30, 2019 and 2018 are included on the statement of financial position as follows:

2019 2018

Cash and Cash Equivalents $ 368,644 $ 338,132 Current portion of Capital Campaign receivable - 52,500 Grants receivable 70,000 79,850 Total restricted $ 438,644 $ 470,482

BENEFIT PLAN

The Organization provides a 401(k) plan for all eligible employees. To be eligible to participate in the Plan, employees must be at least 21 years of age. The Organization will make a matching contribution up to 6% based upon the participating employee's base salary and may make an additional safe harbor contribution of 3% of the participant's compensation. Contributions totaled $229,080 for the year ended June 30, 2019, and $250,694 for the year ended June 30, 2018.

INCENTIVE COMPENSATION PLAN

The Board of Directors approved an incentive compensation payment plan, first adopted in 2008, for all of the employees of the Organization who qualify. The incentive pay is based on reaching Board-approved organizational and departmental goals that are developed at the beginning of each fiscal year. Incentive payments totaled $86,070 for the year ended June 30, 2019, and $90,732 for the year ended June 30, 2018, as a result of the attainment of all or a portion of these goals.

23


NOTE 14. RELATED PARTY TRANSACTIONS

The Organization paid quarterly dues to the United Way Worldwide, its national affiliate, and United Way Association of South Carolina, its state affiliate, of $165,108 for the year ended June 30, 2019, and $160,375 for the year ended June 30, 2018.

The Organization awarded a grant to an organization whose Executive Director serves on the Board of Directors. The Board approved the grant, with the related Board member abstaining from the vote. The total amount paid and accrued to the related organization was $204,468 for the year ended June 30, 2019.

Several Board members are executives in insurance companies that the Organization purchases insurance products from at the prevailing market rate. The total premiums paid for group health insurance coverage were $400,453 and total premiums paid for other insurance products were $47,066 for the year ended June 30, 2018.

NOTE 15. FEDERAL AND STATE CONTRACTS

Expenditures related to federal and state contracts are subject to adjustment based upon review by the granting agencies. It is management's assessment that the amounts, if any, of expenditures, which may be disallowed, would not have a material effect on the Organization's financial position.

NOTE 16. RECLASSIFICATIONS

Certain reclassifications have been made to the prior years’ consolidated financial statements to conform to the current year presentation. These reclassifications had no effect on previously reported results of operations or net assets.

NOTE 17. SUBSEQUENT EVENTS

The Organization has performed an evaluation of subsequent events through October 21, 2019, which is the date the financial statements were issued, noting no additional events which affect the financial statements as of June 30, 2019.

24

UNITED WAY OF THE MIDLANDS AND SUBSIDIARY CONSOLIDATING STATEMENT OF FINANCIAL POSITION


Community United Way Partners Eliminations Consolidated

ASSETS Current Assets Cash and cash equivalent s $ 1,591,762 $ 334,247 $ - $ 1,926,009 Investments - others 1,719,747 - - 1,719,747 Annual campaign pledges receivable (net of allowance of $683,702 for 2019) 3,149,415 - - 3,149,415 Capital campaign receivabl e - - - -Grants receivable 247,315 248,808 (226,396) 269,727 Designations processing income receivabl e 126,197 - 126,197 Other receivables 20,145 (1,053) 19,092 Prepaid expense s

Total current assets

63,257 6,917,838

-583,055

-(227,449)

63,2577,273,444

Non-Current Assets Property and equipment, ne t 4,771,188 664,747 - 5,435,935 Endowed fund s 915,260 - - 915,260

Total non-current assets 5,686,448 664,747 - 6,351,195

Total assets 12,604,286 1,247,802 (227,449) 13,624,639

LIABILITIES AND NET ASSETS Current Liabilities Designations payabl e 959,412 - - 959,412 Accounts payabl e 338,231 44,552 (102,035) 280,747 Special funds held for agencie s 301,366 - - 301,366 Compensation related benefit payabl e 144,763 20,414 - 165,177 Grants payabl e

Total current liabilities

282,488 2,026,260

-64,966

(125,414) (227,449)

157,0741,863,776

Net Assets Without Donor Restriction Undesignated

7,262,337 969,906 - 8,232,243

Board designated for future capital and operating needs

Total net assets without donor restrictions 3,089,776

10,352,113 969,906 --

3,089,776 11,322,019

With Donor Restriction 225,914 212,930 - 438,844

Total net assets 10,578,027 1,182,836 - 11,760,863

Total liabilities and net assets $ 12,604,287 $ 1,247,802 $ (227,449) $ 13,624,639

25

UNITED WAY OF THE MIDLANDS AND SUBSIDIARY CONSOLIDATING STATEMENT OF ACTIVITIES AND CHANGES IN

NET ASSETS WITHOUT DONOR RESTRICTIONS YEAR ENDED JUNE 30, 2019

Without Donor Restrictions

Revenues and Other Support Gross campaign results prior years (2017) Less donor designations Plus provision for uncollectible pledgesNet campaign revenue prior years

United Way

$ 244,691 (113,713)

33,208 164,186

Community Partners

$ ----

Eliminations

$ ----

Total Unrestricted

$ 244,691 (113,713)

33,208 164,186

Gross campaign results 2018 Less, donor designations Less, provision for uncollectible pledges Net campaign revenue 2018

----

----

----

----

Gross campaign revenue 164,186 - - - 164,186

Grants Public Support Sponsorship Accounting services income Contracts Building rent income Gift in kind Investment income Gain on investments Loss on asset disposal Special event revenue Miscellaneous income Capital campaign income released from restrictions Annual campaign income released from restrictions Grant funds released from restrictions Total revenues and other support

--

167,609 236,099 45,483 62,520

124,023 76,799 48,126 (9,480) 59,404

133,231 52,500

6,543,356 1,722,400 9,426,256

564,705 10,385

--

23,950 -

138,868 -------

657,231 1,395,139

(562,500) -------------

(654,021) (1,216,521)

2,20510,385

167,609236,09969,43362,520

262,89176,79948,126(9,480)59,404

133,23152,500

6,543,3561,725,6109,604,874

Expenses Gross funds awarded Less, donor designations Net funds awarded

6,710,075 (2,517,153) 4,192,922

---

(562,500) -

(562,500)

6,147,575(2,517,153)3,630,422

Grants Other program services Total program services

1,583,499 1,771,259 7,547,680

1,392,757 -

1,392,757

(654,021) -

(1,216,521)

2,322,2351,771,2597,723,916

Management and general Campaign Total supporting services

744,549 1,638,032 2,382,581

45,843 -

45,843

---

790,3921,638,0322,428,424

Total expenses 9,930,261 1,438,600 (1,216,521) 10,152,340

(Decrease) in net assets (504,005) (43,461) - (547,466)

Net assets at beginning of year 10,856,118 1,013,367 - 11,869,485

Net assets at end of year $ 10,352,113 $ 969,906 $ - $ 11,322,019

26

UNITED WAY OF THE MIDLANDS AND SUBSIDIARY CONSOLIDATING STATEMENT OF ACTIVITIES AND CHANGES IN

NET ASSETS WITH DONOR RESTRICTIONS YEAR ENDED JUNE 30, 2019

With Donor Restrictions Community Total

United Way Partners Eliminations Restricted Revenues and Other Support Gross campaign results prior years $ - $ - $ - $ -Plus, donor designations - - - -Less, provision for uncollectible pledges

Net campaign revenue prior years --

--

--

--

Gross campaign results 2018 9,650,678 - - 9,650,678 Less, donor designations (2,403,440) - - (2,403,440) Less, provision for uncollectible pledges (683,702) - - (683,702) Capital campaign results (net of discount to NPV) 27,503 - - 27,503 Flood relief fund 4,992 - - 4,992 Net campaign revenue 6,596,031 - - 6,596,031

Grants 1,653,735 688,493 (654,021) 1,688,207 Sponsorship 5,370 - - 5,370 Capital campaign income released from restrictions (52,500) - - (52,500) Annual campaign income released from restrictions (6,543,356) - - (6,543,356) Grant funds released from restrictions (1,722,400) (657,231) 654,021 (1,725,610) Miscellaneous Income 220 - - 220 Total revenues and other support (62,900) 31,262 - (31,638)

(Decrease) in net assets (62,900) 31,262 - (31,638)

Net assets at beginning of year 288,814 181,668 - 470,482

Net assets at end of year $ 225,914 $ 212,930 $ - $ 438,844

27

UNITED WAY OF THE MIDLANDS AND SUBSIDIARY CONSOLIDATING STATEMENT OF FUNCTIONAL EXPENSES


Grants

Total

Distributions Eliminations Agency

Distributions Special

Initiatives United Way

Community Partners Eliminations

Total Grants

Expenses: RFP distributions Other payouts Grants and subcontracts Community events Salaries

$ 3,598,986 1,987

-158

-

$ (562,500) ----

$ 3,036,486 1,987

-158

-

$ -172,292

1,139 489

174,249

$ -60,528

1,032,036 -

269,976

$ ----

631,884

$ --

(654,021) --

$ -60,528

378,015 -

901,860 Benefits - - - 58,001 70,837 91,198 - 162,035 Payroll taxes Professional fees

-6,766

--

-6,766

14,016 15,438

20,215 78,504

45,962 131,019

--

66,177 209,523

Supplies Dental supplies Lab costs

-‐‐

---

---

2,560 ‐‐

226 ‐‐

21,500 97,890 59,551

---

21,726 97,890 59,551

Telephone Postage Occupancy Equipment maintenance Printing and advertising Staff development Membership dues Insurance

----

100 ---

--------

----

100 ---

1,188 472

73,554 3,435 8,860

15,468 210

3,333

----

2,155 6,418

--

10,133 347

138,868 6,356 5,968

12,926 10,447

4,014

--------

10,133 347

138,868 6,356 8,123

19,344 10,447

4,014 Equipment/building Depreciation Other expenses

United Way dues Total functional expenses

--

100 -

$ 3,608,097

----

$ (562,500)

--

100 -

$ 3,045,597

819 26,216

24 13,062

$ 584,825 $

17,177 -

25,427

1,583,499

-124,338

356 -

$ 1,392,757 $

----

(654,021)

17,177 124,338

25,783-

$ 2,322,235

28



Expenses: RFP distributions

Communication

and Community Relations

$ -

Community Impact

$ -

Other Program Services Community

Partners Other

Community Program Resources Services

$ - $ -

Eliminations

$ - $

Total Other

Program

Services

-Other payouts Grants and subcontracts

--

3,500 -

--

--

--

3,500 -

Community events Salaries Benefits Payroll taxes Professional fees Supplies Dental supplies Lab costs

149 64,126 19,398 5,084

53,418 501

‐‐

2,450 547,288 148,030

45,440 56,477

5,414 ‐‐

2,480 163,987 55,291 12,988 11,615

1,099 ‐‐

--------

--------

5,079 775,401 222,719 63,512

121,510 7,014

--

Telephone Postage Occupancy Equipment maintenance Printing and advertising Staff development Membership dues Insurance Equipment/building Depreciation Other expenses United Way Dues Grant Assets Restricted

362 1,669 1,977 1,048

183,813 2,381

314 1,017

250 7,997

9 4,163

-

4,660 1,612

25,413 21,826 8,694

11,556 1,241

13,073 88,841

102,826 (25,231) 53,533

-

1,031 353

5,621 2,980 8,746 2,120

217 2,892

710 22,744

25 12,041

-

-------------

-------------

6,053 3,634

33,011 25,854

201,253 16,057

1,772 16,982 89,801

133,567 (25,197) 69,737

-

Total functional expenses

$ 347,676 $ 1,116,643 $ 306,939 - - $ 1,771,259

29



Supporting Services Management and General

Total Total

Expenses: RFP distributions Other payouts Grants and subcontracts Community events Salaries Benefits Payroll taxes Professional fees Supplies Dental supplies Lab costs Telephone Postage Occupancy Equipment maintenance Printing and advertising Staff development Membership dues Insurance Equipment/building Depreciation Other expenses United Way Dues Grant Assets Restricted

$

United Way

---

1,031 395,485 111,309 32,682 39,027 4,311

‐‐

2,505 1,805

13,661 7,243

916 7,847

443 7,027 1,942

55,275 33,263 28,777

-

Community Partners

$ ----

36,209 3,669 2,710 2,969

----------

254 --

32 --

Eliminations

$ ------------------------

Management and General

$ ---

1,031 431,694 114,978 35,392 41,996 4,311

--

2,505 1,805

13,661 7,243

916 7,847

443 7,281 1,942

55,275 33,295 28,777

-

Fundraising

$ ---

135,702 754,459 223,413 60,671

139,611 5,933

‐‐

4,635 2,562

25,601 13,401 55,814 20,483

2,799 13,002

3,194 102,272 20,947 53,533

-

$

Support Services

---

136,733 1,186,153

338,391 96,063

181,607 10,244

--

7,140 4,367

39,262 20,644 56,730 28,330

3,242 20,283

5,136 157,547 54,242 82,310

-

$

Total

3,036,486 238,307 379,154 142,459

3,037,663 781,146 239,768 534,844

41,544 97,890 59,551 24,514

8,820 284,695

56,289 275,066

79,199 15,671 44,612

112,933 441,668 54,952

165,109 -

Total functional expenses

$ 744,549 $ 45,843 $ - $ 790,392 $ 1,638,032 $ 2,428,424 $ 10,152,340

30

united way of the midlands audit report 2019...jun 30, 2019 · positionof united way of the...

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