ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION Bloomington, Illinois FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION September 30, 2016 and 2015
TABLE OF CONTENTS
INDEPENDENT AUDITORS’ REPORT
1
FINANCIAL STATEMENTS Statements of Financial Position Statements of Activities Statements of Cash Flows Notes to Financial Statements
3 4 6 7
SUPPLEMENTARY INFORMATION Schedule of Contributions by Club and Division
17
CliftonLarsonAllen LLP CLAconnect.com
INDEPENDENT AUDITORS' REPORT
Board of Directors Illinois-Eastern Iowa District of Kiwanis International Spastic Paralysis Research Foundation Bloomington, Illinois Report on the Financial Statements We have audited the accompanying financial statements of Illinois-Eastern Iowa District of Kiwanis International Spastic Paralysis Research Foundation, which comprise the statements of financial position as of September 30, 2016 and 2015, and the related statements of activities and cash flows for the years then ended, and the related notes to the financial statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with 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 financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our 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 financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
1
Board of Directors Illinois-Eastern Iowa District of Kiwanis International Spastic Paralysis Research Foundation
Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Illinois-Eastern Iowa District of Kiwanis International Spastic Paralysis Research Foundation as of September 30, 2016 and 2015, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Report on Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The 2016 supplementary information is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statement and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the 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 financial statements as a whole. Prior Period Financial Statements As discussed in Note 2, Illinois-Eastern Iowa District of Kiwanis International Spastic Paralysis Research Foundation has restated its 2015 financial statements during the current year to properly present its Board designated funds in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
a CliftonLarsonAllen LLP Bloomington, Illinois February 22, 2017
2
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION STATEMENTS OF FINANCIAL POSITION (AS RESTATED) September 30, 2016 and 2015
ASSETS 2016 Cash and cash equivalents Investments Prepaid expenses TOTAL ASSETS
2015
$
61,848 1,296,214 796
$
175,447 1,110,115 -
$
1,358,858
$
1,285,562
$
819
LIABILITIES AND NET ASSETS LIABILITIES Accounts payable
$
NET ASSETS Unrestricted: Designated by the board for: Amador Medallion fund Don Miller fund Research grants Other designations Undesignated Total unrestricted net assets
TOTAL LIABILITIES AND NET ASSETS
$
-
373,114 41,956 440,000 503,788
334,308 38,278 520,000 5,500 386,657
1,358,858
1,284,743
1,358,858
$
1,285,562
The accompanying notes are an integral part of the financial statements. 3
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION STATEMENT OF ACTIVITIES Year Ended September 30, 2016
Unrestricted REVENUES, GAINS, AND PUBLIC SUPPORT Contributions Clubs Endowment Other Special events Bowl-a-Thon Convention Interest and dividends Unrealized gains Realized losses Miscellaneous income
$
95,289 8,275 5,569 53,956 8,214 58,719 79,487 (22,215) 24
Total revenues, gains, and public support
287,318
EXPENSES Program services Spastic paralysis research grants Other grants Total program expenses
180,000 5,948 185,948
Supporting services Office Professional fees Promotion Printing Miscellaneous Total supporting expenses
4,509 12,125 796 387 9,438 27,255
Total expenses
213,203
CHANGES IN NET ASSETS
74,115
NET ASSETS, BEGINNING OF YEAR NET ASSETS, END OF YEAR
1,284,743 $
1,358,858
The accompanying notes are an integral part of the financial statements. 4
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION STATEMENT OF ACTIVITIES (AS RESTATED) Year Ended September 30, 2015
Unrestricted REVENUES, GAINS, AND PUBLIC SUPPORT Contributions Clubs Endowment Other Special events Bowl-a-thon Convention Centennial Interest and dividends Unrealized losses Realized gains Miscellaneous income
$
92,416 11,104 5,366 35,730 6,515 60,193 57,264 (83,266) 1,776 5,990
Total revenues, gains, and public support
193,088
EXPENSES Program services Spastic paralysis research grants Other grants Total program expenses
200,000 125,519 325,519
Supporting services Office Professional fees Promotion Printing Miscellaneous Total supporting expenses
4,509 12,168 5,463 387 6,947 29,474
Total expenses
354,993
CHANGES IN NET ASSETS
(161,905)
NET ASSETS, BEGINNING OF YEAR NET ASSETS, END OF YEAR
1,446,648 $
The accompanying notes are an integral part of the financial statements. 5
1,284,743
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION STATEMENTS OF CASH FLOWS Years Ended September 30, 2016 and 2015
2016 CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets Adjustments to reconcile change in net assets to net cash provided by (used in) operating activities: Unrealized (gains) losses on investments Realized (gains) losses on investments Contributions for Board designated funds Effects of changes in operating assets and liabilities Prepaid expenses Accounts payable
$
74,115
$
(79,487) 22,215 -
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments Proceeds from sale of investments Maturities of certificates of deposit Net cash provided by (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Investment in endowment
604 819
15,228
(90,096)
(240,829) 112,002 -
(91,447) 20,910 114,094
(128,827)
43,557
-
NET DECREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
$
(161,905)
83,266 (1,776) (11,104)
(796) (819)
Net cash provided by (used in) operating activities
CASH AND CASH EQUIVALENTS, END OF YEAR
2015
11,104
(113,599)
(35,435)
175,447
210,882
61,848
$
The accompanying notes are an integral part of the financial statements. 6
175,447
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS September 30, 2016 and 2015 NOTE 1 – NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES The summary of significant accounting policies of the Illinois-Eastern Iowa District of Kiwanis International Spastic Paralysis Research Foundation (the Foundation) is presented to assist in understanding the Foundation's financial statements. The financial statements and notes are presentations of the Foundation's management, who are responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of the financial statements. Nature of Activities The Foundation is a nonprofit corporation organized for the purpose of providing research funds for spastic paralysis and applied diseases of the central nervous system. The Foundation's primary source of funding is from contributions made by clubs in the Illinois-Eastern Iowa District of Kiwanis clubs. The Foundation's fiscal year end is September 30. Basis of Accounting The accompanying financial statements are presented in accordance with the accrual basis of accounting, whereby, revenue and support is recognized when earned and expenses are recognized when incurred. Financial Statement Presentation Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Account Standards Codification (ASC) ASC 958-605 "Revenue Recognition" and ASC 958-205 "Presentation of Financial Statements." ASC 958-605 requires the Foundation to distinguish between contributions received for each net asset category in accordance with donor-imposed restrictions. As such, contributions are recognized as revenue when they are received. ASC 958-205 requires the Foundation to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. A description of the net asset categories that are applicable to the Foundation follows. Unrestricted net assets - Net assets that are not subject to donor-imposed stipulations. Temporarily restricted net assets - Net assets subject to donor-imposed stipulations that may or will be met, either by actions of the Foundation and/or the passage of time. When a restriction is met, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statement of Activities as net assets released from restrictions. As of September 30, 2016 and 2015, there were no temporarily restricted net assets. Permanently restricted net assets - Net assets subject to donor-imposed stipulations that they be maintained permanently by the Foundation. All Foundation permanently restricted net assets are maintained in endowment funds where it is permitted that the Foundation use all or part of the income earned for general or specific purposes. As of September 30, 2016 and 2015, there were no permanently restricted net assets. 7
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS September 30, 2016 and 2015 NOTE 1 – NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Cash and Cash Equivalents For financial statement purposes, cash equivalents primarily include money market funds, savings accounts, and certificates of deposits with an initial maturity of three months or less. Financial Risk The Foundation maintains its cash in bank accounts which, potentially subject the Foundation to concentrations of credit risk. Balances are insured by FDIC. As of September 30, 2016 and 2015 the Foundation had no uninsured deposits. As of September 30, 2016, the Foundation had $8,045 with a brokerage firm which consisted of cash and money market accounts. This balance is not covered under FDIC or other collateral. The brokerage firm is a member of Securities Investors Protection Corporation (SIPC). The Foundation also has $1,296,214, in marketable securities that are subject to market fluctuations. As of September 30, 2015 the Foundation had $28,419 with a brokerage firm which consisted of cash and money market accounts. This balance is not covered under FDIC or other collateral. The brokerage firm is a member of SIPC. The Foundation also had $1,110,115 in marketable securities that are subject to market fluctuations. Investments Investments in marketable securities with readily determinable fair values and all investments in debt securities are reported at their fair values (rather than cost) in the statements of financial position. Unrealized gains and losses are included in the change in net assets. Fair Value Measurements The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). Financial assets and financial liabilities recorded at fair value are categorized based on the reliability of inputs to the valuation techniques as follows: Level 1 - Financial assets and financial liabilities whose values are based on unadjusted quoted prices in active markets for identical assets. Level 2 - Financial assets and financial liabilities whose values are based on quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in non-active markets; or valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability. Level 3 - Financial assets and financial liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect estimates of the assumptions that market participants would use in valuing the financial assets and financial liabilities.
8
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS September 30, 2016 and 2015 NOTE 1 – NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Fair Value Measurements (Continued) The hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. See Note 3. Contributions and Support Contributions received are recorded as increases in unrestricted, temporarily restricted, or permanently restricted net assets, depending on the existence and/or nature of any donor restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Contributions fully spent during the year received are recorded as unrestricted support. Unconditional promises to give are recognized as revenue or gains in the period received and as assets, decreases of liabilities, or expenses depending on the form of the benefits received. Conditional promises to give are recognized when the conditions on which they depend are substantially met. Contributions to the endowment fund are restricted whereby only the investment earnings are available to support current research grants and the Foundation's operations. In-kind Contributions and Contributed Services In-kind contributions are reflected as contributions at their fair value at date of donation and are reported as unrestricted support unless explicit donor stipulations specify how donated assets must be used. The Foundation benefits from donated public items and supplies for its program beneficiaries and fundraising activities. This amount is then reported as both in-kind contribution revenue and in-kind expense on the statement of activities. For the years ended September 30, 2016 and 2015, the Foundation did not recognize the receipt of any in-kind contributions. The Foundation recognizes the fair value of contributed services received if such services a) create or enhance nonfinancial assets or b) require specialized skills that are provided by individuals possessing those skills that would typically need to be purchased if not contributed. A substantial number of volunteers have donated significant amounts of their time to the Foundation's programs and fundraising activities; however, these donated services are not reflected in the financial statements since they do not meet the criteria for recognition as contributed services. Income Taxes The Foundation is exempt from federal income taxes under provisions of Section 501(c)(3) of the Internal Revenue Code. Therefore, no provision for federal or state income taxes has been recorded.
9
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS September 30, 2016 and 2015 NOTE 1 – NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Income Taxes (Continued) The Foundation is required to evaluate its tax positions and recognize a liability for any positions that would not be considered "more likely than not" to be upheld under tax authority examination. If such issues exist, the Foundation's policy will be to recognize any tax liability so recorded including applicable interest and penalties, as a component of income tax expense. Management is not aware of any violation of its tax status exempt from income taxes, or any exposure to unrelated business income tax or other tax liabilities. The Foundation's federal income tax and informational returns filed remain subject to examination by the Internal Revenue Service and the Illinois state taxing authorities. Advertising Advertising costs are expensed as incurred. 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 disclosure 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. Reclassifications Certain amounts in the September 30, 2015 financial statements have been re-classified to conform with the current year presentation. The reclassification had no effect on previously reported changes in net assets or net asset balances. NOTE 2 – RESTATEMENT During the year ended September 30, 2016, the Foundation determined it had been incorrectly accounting for its Board designated funds for the Amador Medallion and Don Miller Funds. Previously, the Foundation had recorded these investment balances and the activity as permanently restricted, however, since these investments are considered Board designated, they should be recorded as unrestricted net assets.
10
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS September 30, 2016 and 2015 NOTE 2 – RESTATEMENT (Continued) The effect of this correction had no overall effect on the total net assets of the Foundation; however, the effect of this correction did have an effect on the net asset classification in the statements of financial position and statements of activities as follows: September 30, 2015 As Reported As Adjusted Statements of Financial Position: Unrestricted net assets Permanently restricted net assets
$ 1,016,578 268,165
Statements of Activities: Decrease in unrestricted net assets Increase in permanently restricted net assets
(173,009) 11,104
$ 1,284,743 (161,905) -
NOTE 3 – FINANCIAL INSTRUMENTS At September 30, 2016 and 2015, the Foundation's financial instrument balances consisted of the following: 2016 Amador Medallion Other Account Accounts
Miller Endowment Account
Total
Checking account(s) Money market(s)
$
-
$
8,002
$
53,804 $ 42
53,804 8,044
Total
$
-
$
8,002
$
53,846 $
61,848
2015 Amador Medallion Other Account Accounts
Miller Endowment Account
Total
Checking account(s) Money market(s)
$
-
$
6,500
$
147,028 $ 21,919
147,028 28,419
Total
$
-
$
6,500
$
168,947 $
175,477
11
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS September 30, 2016 and 2015 NOTE 4 – INVESTMENTS Investments in marketable securities with readily determinable fair values and all investments in debt securities are valued at their fair values in the statements of financial position. Investment income including interest, dividends, realized and unrealized gains and losses are included in the change in net assets in the accompanying statement of activities. The investments at September 30, 2016 and 2015 consist of the following: 2016
2015
Cost Mutual funds Balance funds Growth funds Fixed income funds Other funds Total mutual funds
Fair Value
Cost
$
704,104 81,448 262,817 109,987
$
828,230 $ 92,757 271,152 104,075
522,631 171,895 253,973 102,848
$
1,158,356
$
1,296,214 $
1,051,347
Fair Value 579,087 187,846 254,361 88,821 $
1,110,115
The following schedule summarizes the investment return in the statement of activities for the years ended September 30, 2016 and 2015: Total September 30, 2016 Interest and dividends Realized losses Unrealized gains Total September 30, 2015 Interest and dividends Realized gains Unrealized losses Total
12
$
58,719 (22,215) 79,487
$
115,991
$
57,264 1,776 (83,266)
$
(24,226)
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS September 30, 2016 and 2015 NOTE 4 – INVESTMENTS (Continued) The following table presents the Foundation's approximate fair value hierarchy for the assets measured at fair value on a recurring basis as of September 30, 2016 and 2015: 2016 (Level 1) Mutual funds Balance funds Growth funds Fixed income funds Other funds Total
2015 Fair Value
(Level 1)
Fair Value
$
828,230 92,757 271,152 104,075
$
828,230 $ 92,757 271,152 104,075
579,087 187,846 254,361 88,821
$
579,087 187,846 254,361 88,821
$
1,296,214
$
1,296,214 $
1,110,115
$
1,110,115
NOTE 5 – BOARD DESIGNATED NET ASSETS The Board of Directors of the Illinois-Eastern Iowa District of Kiwanis International Spastic Paralysis Research Foundation has designated net assets for future programs, special research projects which apply the knowledge gained from the research in clinical and other settings to benefit children, and to pay future grants for spastic paralysis research. These designations as of September 30, 2016 and 2015 are as follows: Amador Medallion Fund
$
2016 373,114 $
2015 334,308
Don Miller Fund
41,956
38,278
Research Grant Designations Dr. Daniel Tranel Dr. Elliot J. Roth Dr. Rodger Elble Dr. Grayson Holmbeck Dr. Stephanie Ceman Dr. Daniel Llano Dr. Brad Schlagger Dr. Roberto Galvez Dr. Robin Bowman
60,000 40,000 40,000 20,000 60,000 60,000 60,000 20,000 80,000
80,000 60,000 60,000 40,000 80,000 80,000 80,000 40,000 -
440,000
520,000
Total research grant designations Other Grant Designations Supplies and equipment Penguin project Total other grant designations Total board designated net assets
$ 13
-
5,000 500
-
5,500
855,070 $
898,086
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS September 30, 2016 and 2015 NOTE 6 – RELATED PARTY TRANSACTIONS The Foundation has various officers that are also officers of the Illinois-Eastern Iowa District of Kiwanis International (District). These officers do not have the ability to influence the Foundation's operations for the benefit of the District, as this benefit would violate the Foundation's purpose of providing research funds for spastic paralysis and applied diseases of the central nervous system. While the District has control of the Foundation, it does not have an economic interest in the Foundation. Therefore, its operations are not consolidated in the financial statements of the District. These two entities share occupancy and office supplies expenses. The Foundation reimbursed the District for its estimated share of expenses in the amount of $4,000 and $4,000, respectively, for the years ended September 30, 2016 and 2015. The Foundation also made grant disbursements to the following nonvoting Board of Director members: 2016 Dr. Rodger Elble, Medical Director Dr. Stephanie Ceman, Assistant Medical Director
14
$
25,000 $ -
2015 20,000 20,000
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS September 30, 2016 and 2015 NOTE 7 – MEDICAL RESEARCH GRANTS The Foundation provides payments to the following for research relating to spastic paralysis and related disease:
Dr. Daniel Tranel Dr. Grayson Holmbeck Dr. Robin Bowman Dr. Andrew Morgan Dr. David O. McClone and Dr. Chandra Mayanil Dr. Elliot J. Roth Dr. Rodger Elble Dr. Stephanie Ceman Dr. Daniel Llano Dr. Bradley Schlagger Dr. Roberto Galvez Total research grant payments
$
Other grant payments Supplies and equipment - Dr. Elble Special one-time grant Total other grant payments Total grant payments
$
2016 2015 Actual Budget Actual 20,000 $ 20,000 $ 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 180,000
20,000 20,000 20,000 20,000 20,000 20,000 180,000
20,000 20,000 20,000 20,000 20,000 20,000 20,000 200,000
5,000 948
6,000 -
125,519
5,948 185,948 $
186,000 $
125,519 325,519
NOTE 8 – FUNCTIONAL ALLOCATIONS OF EXPENSES The costs of providing the various programs and other activities have been summarized on a functional basis. Costs are charged on a direct functional basis whenever practicable and all other costs are allocated on the basis of the proportional use of the services provided. NOTE 9 – SUBSEQUENT EVENTS Management evaluated subsequent events through February 22, 2017, the date the financial statements were available to be issued.
This information is an integral part of the accompanying financial statements. 15
SUPPLEMENTARY INFORMATION
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION SCHEDULE OF CONTRIBUTIONS BY CLUB AND DIVISION Year Ended September 30, 2016 (See independent auditor' report.)
Governor Gifts and Other
Parade of Love Archer Road, Chicago Hickory Hills Oak Lawn Southeast Area, Chicago Southwest Chicago Total Division 3
$
-
$
-
15
15 15 15 45
-
100 1,015 15 15 1,145
-
100 100 200 100 100 250 100 100 100 397 1,547
100 100 200 100 100 250 100 100 100 397 1,547
-
490 500 4,945 285 6,164 12,384
590 500 4,945 785 6,664 13,484
30 30 30 30 30 58 298
100 150 100 250 200 800
220 30 130 300 180 130 280 30 1,000 58 2,358
250 50 100 50 50 100 58 658
250 200 120 300 1,229 2,099
1,000 1,250 100 170 400 1,250 1,579 58 5,807
15 -
100 1,000 1,100
-
-
Bensenville-Wood Dale-Franklin Park Forest Park Montclare-Elmwood Park Northlake River Forest/Oak Park Total Division 6
100 500 500 1,100
Evanston Evanston, Breakfast Glenview-Northbrook Highland Park-Highwood Lake Bluff-Lake Forest Libertyville-Mundelein-Vernon Hills Lindenhurst-The Lakes Area Skokie Valley Zion-Benton Division 7 Clubs Total Division 7
190 300 770 1,260
Bloomingdale-Roselle Des Plaines Edison-Norwood Greater Chicago-eKiwanis Palatine Park Ridge - Morning Streamwood Division 8 Clubs Total Division 8
500 1,000 100 1,200 250 3,050
Brookfield Darien La Grange Oak Brook Westchester Western Springs - Hinsdale Willowbrook-Burr Ridge WHBCD Breakfast Club Woodridge Division 5 Clubs Total Division 5
17
$
Total Contributions
1,013 277 50 150 50 1,540
50 50
Lansing Golden K Orland Park Palos Heights Tinley Park Total Division 4
Special Events
30 30 30 -
$
1,013 277 50 165 100 1,605
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION SCHEDULE OF CONTRIBUTIONS BY CLUB AND DIVISION (Continued) Year Ended September 30, 2016 (See independent auditor' report.)
Governor Gifts and Other
Parade of Love Addison Central Dupage County Downers Grove Elmhurst Glen Ellyn Glendale Heights Lombard Villa Park Wheaton Total Division 9
$
100 100 100 250 500 100 500 1,650
$
-
Special Events $
554 1,045 1,021 154 435 1,538 1,600 6,347
Total Contributions $
100 654 100 1,295 1,521 254 935 1,538 1,600 7,997
Batavia Campton Hills Elgin Elgin-Golden K Geneva St. Charles St. Charles-Golden K Total Division 10
150 100 2,102 665 3,017
-
421 22 162 602 1,112 1,222 277 3,816
571 122 162 602 1,112 3,324 942 6,833
McHenry Total Division 11
1,000 1,000
-
-
1,000 1,000
Alpine, Rockford Boone County Freeport Freeport, Lincoln-Douglas Freeport-Golden K Parks (the), Loves Park Rock Valley Heritage Rockford Rockford-Golden K Total Division 12
2,050 100 750 500 500 200 250 536 350 5,236
120 350 124 150 50 794
698 477 60 10 215 80 1,540
2,748 100 1,347 850 500 384 260 901 480 7,570
Byron Dixon Dixon-Golden K Oregon Rochelle-Golden K Sterling Division 13 Clubs Total Division 13
1,000 300 400 1,000 2,700
100 50 150
300 620 50 1,600 300 600 113 3,583
300 1,720 50 1,950 700 1,600 113 6,433
DeKalb Kishwaukee-DeKalb Sycamore Tri-County Total Division 14
1,550 350 1,000 500 3,400
100 150 150 400
-
1,650 500 1,000 650 3,800
Dubuque Maquoketa Total Division 15
2,262 200 2,462
-
-
2,262 200 2,462
18
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION SCHEDULE OF CONTRIBUTIONS BY CLUB AND DIVISION (Continued) Year Ended September 30, 2016 (See independent auditor' report.)
Governor Gifts and Other
Parade of Love Bettendorf Camanche Clinton, IA Davenport Total Division 16
$
500 350 1,000 750 2,600
$
-
Annawan East Moline-Silvis Geneseo Kewanee Moline Rock Island Division 17 Clubs Total Division 17
500 1,000 1,000 1,000 500 4,000
-
Burlington Carthage Fort Madison Keokuk Total Division 18
500 1,000 300 200 2,000
Galesburg Macomb McDonough County Total Division 19
500 200 700
Special Events $
-
Total Contributions $
500 350 1,000 750 2,600
300 255 800 350 310 460 2,475
300 755 1,800 1,350 1,310 960 80 6,555
-
-
500 1,000 300 200 2,000
-
345 115 460
345 615 200 1,160
400 100 1,245 200 220 150 1,250 100 500 540 620 5,325
400 100 1,745 200 320 200 1,375 100 850 540 1,120 336 7,286
80 80
East Peoria Elmwood Eureka Greater Area Grand Prairie Peoria Metamora Morton Pekin Pekin Sunset Peoria Peoria Downton Earlybirds South-West Peoria Division 20 Clubs Total Division 20
500 100 50 250 500 1,400
125 100 336 561
Aurora Naperville-Evening Total Division 21
2,000 1,000 3,000
-
-
2,000 1,000 3,000
Bloomington Bloomington Golden K Lexington Total Division 22
1,500 1,000 90 2,590
-
300 300
1,800 1,000 90 2,890
19
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION SCHEDULE OF CONTRIBUTIONS BY CLUB AND DIVISION (Continued) Year Ended September 30, 2016 (See independent auditor' report.)
Governor Gifts and Other
Parade of Love Chicago Heights Frankfort Joliet Kankakee New Lenox Park Forest Will County 321 Total Division 23
$
1,500 500 2,500 150 500 5,150
$
-
Special Events $
-
Total Contributions
15 105 480 75 359 967 2,001
$
1,500 15 605 2,980 225 859 967 7,151
Mendota Morris Streator Total Division 24
1,087 1,100 2,187
-
-
1,087 1,100 2,187
Danville Golden K Danville, Breakfast Total Division 25
200 200
-
-
200 200
Mattoon Paris Total Division 26
100 540 640
-
-
100 540 640
500 500 1,500 147 1,000 3,647
-
-
500 500 1,500 147 1,000 3,647
Springfield Downtown Total Division 28
135 135
-
-
135 135
Jacksonville Quincy Quincy, Gem City Total Division 29
2,172 285 150 2,607
-
-
2,172 285 150 2,607
60 75 200 335
-
-
60 75 200 335
200 100 500 1,000 1,800
-
100 300 8 36 100 44 393 981
Clinton, IL Decatur Early Birds Decatur-Golden K Sullivan Tuscola
Greenville Northern Macoupin County Taylorville Total Division 30 Alton-Godfrey Bethalto Bunker Hill Area Collinsville-Sunrise Edwardsville Glen Carbon Jerseyville Wood River Township Division 31 Clubs Total Division 31
20
52 52
300 400 8 500 36 100 44 1,393 52 2,833
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION SCHEDULE OF CONTRIBUTIONS BY CLUB AND DIVISION (Continued) Year Ended September 30, 2016 (See independent auditor' report.)
Governor Gifts and Other
Parade of Love Benton McLeansboro Mount Carmel Mount Vernon Salem Division 33 Clubs Total Division 33
$
1,300 300 1,600
$
138 138
Special Events $
226 244 50 274 250 1,044
Total Contributions $
Belleville Fairview Heights O'Fallon Division 34 Clubs Total Division 34
150 100 300 550
-
Anna Carbondale Harrisburg Marion Metropolis Murphysboro Division 36 Clubs Total Division 36
100 100
500 400 100 250 138 1,388
200 1,184 548 200 200 275 70 2,677
200 1,684 1,048 200 300 525 208 4,164
61,267
4,630
48,918
114,814
31,033 31,033
-
2,114 2,424 500 5,038
2,114 33,457 500 36,071
-
-
8,214 2,990 939 24 8,275
8,214 2,990 939 24 8,275
Subtotal Kiwanis' club contributions and special events Aktion Clubs Key Clubs Builders Clubs Total sponsored leadership programs Convention events Prior year contributions Memorial, personal, and corporate contributions Amazon Smile Foundation Amador Endowment Fund contributions
TOTAL
$
21
92,299
-
226 244 50 1,574 550 138 2,781
52 52
$
4,630
$
74,399
150 100 300 52 602
$
171,328
TABLE OF CONTENTS
INDEPENDENT AUDITORS’ REPORT
1
FINANCIAL STATEMENTS Statements of Financial Position Statements of Activities Statements of Cash Flows Notes to Financial Statements
3 4 6 7
SUPPLEMENTARY INFORMATION Schedule of Contributions by Club and Division
17
CliftonLarsonAllen LLP CLAconnect.com
INDEPENDENT AUDITORS' REPORT
Board of Directors Illinois-Eastern Iowa District of Kiwanis International Spastic Paralysis Research Foundation Bloomington, Illinois Report on the Financial Statements We have audited the accompanying financial statements of Illinois-Eastern Iowa District of Kiwanis International Spastic Paralysis Research Foundation, which comprise the statements of financial position as of September 30, 2016 and 2015, and the related statements of activities and cash flows for the years then ended, and the related notes to the financial statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with 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 financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our 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 financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
1
Board of Directors Illinois-Eastern Iowa District of Kiwanis International Spastic Paralysis Research Foundation
Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Illinois-Eastern Iowa District of Kiwanis International Spastic Paralysis Research Foundation as of September 30, 2016 and 2015, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Report on Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The 2016 supplementary information is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statement and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the 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 financial statements as a whole. Prior Period Financial Statements As discussed in Note 2, Illinois-Eastern Iowa District of Kiwanis International Spastic Paralysis Research Foundation has restated its 2015 financial statements during the current year to properly present its Board designated funds in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
a CliftonLarsonAllen LLP Bloomington, Illinois February 22, 2017
2
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION STATEMENTS OF FINANCIAL POSITION (AS RESTATED) September 30, 2016 and 2015
ASSETS 2016 Cash and cash equivalents Investments Prepaid expenses TOTAL ASSETS
2015
$
61,848 1,296,214 796
$
175,447 1,110,115 -
$
1,358,858
$
1,285,562
$
819
LIABILITIES AND NET ASSETS LIABILITIES Accounts payable
$
NET ASSETS Unrestricted: Designated by the board for: Amador Medallion fund Don Miller fund Research grants Other designations Undesignated Total unrestricted net assets
TOTAL LIABILITIES AND NET ASSETS
$
-
373,114 41,956 440,000 503,788
334,308 38,278 520,000 5,500 386,657
1,358,858
1,284,743
1,358,858
$
1,285,562
The accompanying notes are an integral part of the financial statements. 3
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION STATEMENT OF ACTIVITIES Year Ended September 30, 2016
Unrestricted REVENUES, GAINS, AND PUBLIC SUPPORT Contributions Clubs Endowment Other Special events Bowl-a-Thon Convention Interest and dividends Unrealized gains Realized losses Miscellaneous income
$
95,289 8,275 5,569 53,956 8,214 58,719 79,487 (22,215) 24
Total revenues, gains, and public support
287,318
EXPENSES Program services Spastic paralysis research grants Other grants Total program expenses
180,000 5,948 185,948
Supporting services Office Professional fees Promotion Printing Miscellaneous Total supporting expenses
4,509 12,125 796 387 9,438 27,255
Total expenses
213,203
CHANGES IN NET ASSETS
74,115
NET ASSETS, BEGINNING OF YEAR NET ASSETS, END OF YEAR
1,284,743 $
1,358,858
The accompanying notes are an integral part of the financial statements. 4
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION STATEMENT OF ACTIVITIES (AS RESTATED) Year Ended September 30, 2015
Unrestricted REVENUES, GAINS, AND PUBLIC SUPPORT Contributions Clubs Endowment Other Special events Bowl-a-thon Convention Centennial Interest and dividends Unrealized losses Realized gains Miscellaneous income
$
92,416 11,104 5,366 35,730 6,515 60,193 57,264 (83,266) 1,776 5,990
Total revenues, gains, and public support
193,088
EXPENSES Program services Spastic paralysis research grants Other grants Total program expenses
200,000 125,519 325,519
Supporting services Office Professional fees Promotion Printing Miscellaneous Total supporting expenses
4,509 12,168 5,463 387 6,947 29,474
Total expenses
354,993
CHANGES IN NET ASSETS
(161,905)
NET ASSETS, BEGINNING OF YEAR NET ASSETS, END OF YEAR
1,446,648 $
The accompanying notes are an integral part of the financial statements. 5
1,284,743
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION STATEMENTS OF CASH FLOWS Years Ended September 30, 2016 and 2015
2016 CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets Adjustments to reconcile change in net assets to net cash provided by (used in) operating activities: Unrealized (gains) losses on investments Realized (gains) losses on investments Contributions for Board designated funds Effects of changes in operating assets and liabilities Prepaid expenses Accounts payable
$
74,115
$
(79,487) 22,215 -
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments Proceeds from sale of investments Maturities of certificates of deposit Net cash provided by (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Investment in endowment
604 819
15,228
(90,096)
(240,829) 112,002 -
(91,447) 20,910 114,094
(128,827)
43,557
-
NET DECREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
$
(161,905)
83,266 (1,776) (11,104)
(796) (819)
Net cash provided by (used in) operating activities
CASH AND CASH EQUIVALENTS, END OF YEAR
2015
11,104
(113,599)
(35,435)
175,447
210,882
61,848
$
The accompanying notes are an integral part of the financial statements. 6
175,447
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS September 30, 2016 and 2015 NOTE 1 – NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES The summary of significant accounting policies of the Illinois-Eastern Iowa District of Kiwanis International Spastic Paralysis Research Foundation (the Foundation) is presented to assist in understanding the Foundation's financial statements. The financial statements and notes are presentations of the Foundation's management, who are responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of the financial statements. Nature of Activities The Foundation is a nonprofit corporation organized for the purpose of providing research funds for spastic paralysis and applied diseases of the central nervous system. The Foundation's primary source of funding is from contributions made by clubs in the Illinois-Eastern Iowa District of Kiwanis clubs. The Foundation's fiscal year end is September 30. Basis of Accounting The accompanying financial statements are presented in accordance with the accrual basis of accounting, whereby, revenue and support is recognized when earned and expenses are recognized when incurred. Financial Statement Presentation Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Account Standards Codification (ASC) ASC 958-605 "Revenue Recognition" and ASC 958-205 "Presentation of Financial Statements." ASC 958-605 requires the Foundation to distinguish between contributions received for each net asset category in accordance with donor-imposed restrictions. As such, contributions are recognized as revenue when they are received. ASC 958-205 requires the Foundation to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. A description of the net asset categories that are applicable to the Foundation follows. Unrestricted net assets - Net assets that are not subject to donor-imposed stipulations. Temporarily restricted net assets - Net assets subject to donor-imposed stipulations that may or will be met, either by actions of the Foundation and/or the passage of time. When a restriction is met, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statement of Activities as net assets released from restrictions. As of September 30, 2016 and 2015, there were no temporarily restricted net assets. Permanently restricted net assets - Net assets subject to donor-imposed stipulations that they be maintained permanently by the Foundation. All Foundation permanently restricted net assets are maintained in endowment funds where it is permitted that the Foundation use all or part of the income earned for general or specific purposes. As of September 30, 2016 and 2015, there were no permanently restricted net assets. 7
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS September 30, 2016 and 2015 NOTE 1 – NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Cash and Cash Equivalents For financial statement purposes, cash equivalents primarily include money market funds, savings accounts, and certificates of deposits with an initial maturity of three months or less. Financial Risk The Foundation maintains its cash in bank accounts which, potentially subject the Foundation to concentrations of credit risk. Balances are insured by FDIC. As of September 30, 2016 and 2015 the Foundation had no uninsured deposits. As of September 30, 2016, the Foundation had $8,045 with a brokerage firm which consisted of cash and money market accounts. This balance is not covered under FDIC or other collateral. The brokerage firm is a member of Securities Investors Protection Corporation (SIPC). The Foundation also has $1,296,214, in marketable securities that are subject to market fluctuations. As of September 30, 2015 the Foundation had $28,419 with a brokerage firm which consisted of cash and money market accounts. This balance is not covered under FDIC or other collateral. The brokerage firm is a member of SIPC. The Foundation also had $1,110,115 in marketable securities that are subject to market fluctuations. Investments Investments in marketable securities with readily determinable fair values and all investments in debt securities are reported at their fair values (rather than cost) in the statements of financial position. Unrealized gains and losses are included in the change in net assets. Fair Value Measurements The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). Financial assets and financial liabilities recorded at fair value are categorized based on the reliability of inputs to the valuation techniques as follows: Level 1 - Financial assets and financial liabilities whose values are based on unadjusted quoted prices in active markets for identical assets. Level 2 - Financial assets and financial liabilities whose values are based on quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in non-active markets; or valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability. Level 3 - Financial assets and financial liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect estimates of the assumptions that market participants would use in valuing the financial assets and financial liabilities.
8
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS September 30, 2016 and 2015 NOTE 1 – NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Fair Value Measurements (Continued) The hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. See Note 3. Contributions and Support Contributions received are recorded as increases in unrestricted, temporarily restricted, or permanently restricted net assets, depending on the existence and/or nature of any donor restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Contributions fully spent during the year received are recorded as unrestricted support. Unconditional promises to give are recognized as revenue or gains in the period received and as assets, decreases of liabilities, or expenses depending on the form of the benefits received. Conditional promises to give are recognized when the conditions on which they depend are substantially met. Contributions to the endowment fund are restricted whereby only the investment earnings are available to support current research grants and the Foundation's operations. In-kind Contributions and Contributed Services In-kind contributions are reflected as contributions at their fair value at date of donation and are reported as unrestricted support unless explicit donor stipulations specify how donated assets must be used. The Foundation benefits from donated public items and supplies for its program beneficiaries and fundraising activities. This amount is then reported as both in-kind contribution revenue and in-kind expense on the statement of activities. For the years ended September 30, 2016 and 2015, the Foundation did not recognize the receipt of any in-kind contributions. The Foundation recognizes the fair value of contributed services received if such services a) create or enhance nonfinancial assets or b) require specialized skills that are provided by individuals possessing those skills that would typically need to be purchased if not contributed. A substantial number of volunteers have donated significant amounts of their time to the Foundation's programs and fundraising activities; however, these donated services are not reflected in the financial statements since they do not meet the criteria for recognition as contributed services. Income Taxes The Foundation is exempt from federal income taxes under provisions of Section 501(c)(3) of the Internal Revenue Code. Therefore, no provision for federal or state income taxes has been recorded.
9
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS September 30, 2016 and 2015 NOTE 1 – NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Income Taxes (Continued) The Foundation is required to evaluate its tax positions and recognize a liability for any positions that would not be considered "more likely than not" to be upheld under tax authority examination. If such issues exist, the Foundation's policy will be to recognize any tax liability so recorded including applicable interest and penalties, as a component of income tax expense. Management is not aware of any violation of its tax status exempt from income taxes, or any exposure to unrelated business income tax or other tax liabilities. The Foundation's federal income tax and informational returns filed remain subject to examination by the Internal Revenue Service and the Illinois state taxing authorities. Advertising Advertising costs are expensed as incurred. 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 disclosure 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. Reclassifications Certain amounts in the September 30, 2015 financial statements have been re-classified to conform with the current year presentation. The reclassification had no effect on previously reported changes in net assets or net asset balances. NOTE 2 – RESTATEMENT During the year ended September 30, 2016, the Foundation determined it had been incorrectly accounting for its Board designated funds for the Amador Medallion and Don Miller Funds. Previously, the Foundation had recorded these investment balances and the activity as permanently restricted, however, since these investments are considered Board designated, they should be recorded as unrestricted net assets.
10
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS September 30, 2016 and 2015 NOTE 2 – RESTATEMENT (Continued) The effect of this correction had no overall effect on the total net assets of the Foundation; however, the effect of this correction did have an effect on the net asset classification in the statements of financial position and statements of activities as follows: September 30, 2015 As Reported As Adjusted Statements of Financial Position: Unrestricted net assets Permanently restricted net assets
$ 1,016,578 268,165
Statements of Activities: Decrease in unrestricted net assets Increase in permanently restricted net assets
(173,009) 11,104
$ 1,284,743 (161,905) -
NOTE 3 – FINANCIAL INSTRUMENTS At September 30, 2016 and 2015, the Foundation's financial instrument balances consisted of the following: 2016 Amador Medallion Other Account Accounts
Miller Endowment Account
Total
Checking account(s) Money market(s)
$
-
$
8,002
$
53,804 $ 42
53,804 8,044
Total
$
-
$
8,002
$
53,846 $
61,848
2015 Amador Medallion Other Account Accounts
Miller Endowment Account
Total
Checking account(s) Money market(s)
$
-
$
6,500
$
147,028 $ 21,919
147,028 28,419
Total
$
-
$
6,500
$
168,947 $
175,477
11
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS September 30, 2016 and 2015 NOTE 4 – INVESTMENTS Investments in marketable securities with readily determinable fair values and all investments in debt securities are valued at their fair values in the statements of financial position. Investment income including interest, dividends, realized and unrealized gains and losses are included in the change in net assets in the accompanying statement of activities. The investments at September 30, 2016 and 2015 consist of the following: 2016
2015
Cost Mutual funds Balance funds Growth funds Fixed income funds Other funds Total mutual funds
Fair Value
Cost
$
704,104 81,448 262,817 109,987
$
828,230 $ 92,757 271,152 104,075
522,631 171,895 253,973 102,848
$
1,158,356
$
1,296,214 $
1,051,347
Fair Value 579,087 187,846 254,361 88,821 $
1,110,115
The following schedule summarizes the investment return in the statement of activities for the years ended September 30, 2016 and 2015: Total September 30, 2016 Interest and dividends Realized losses Unrealized gains Total September 30, 2015 Interest and dividends Realized gains Unrealized losses Total
12
$
58,719 (22,215) 79,487
$
115,991
$
57,264 1,776 (83,266)
$
(24,226)
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS September 30, 2016 and 2015 NOTE 4 – INVESTMENTS (Continued) The following table presents the Foundation's approximate fair value hierarchy for the assets measured at fair value on a recurring basis as of September 30, 2016 and 2015: 2016 (Level 1) Mutual funds Balance funds Growth funds Fixed income funds Other funds Total
2015 Fair Value
(Level 1)
Fair Value
$
828,230 92,757 271,152 104,075
$
828,230 $ 92,757 271,152 104,075
579,087 187,846 254,361 88,821
$
579,087 187,846 254,361 88,821
$
1,296,214
$
1,296,214 $
1,110,115
$
1,110,115
NOTE 5 – BOARD DESIGNATED NET ASSETS The Board of Directors of the Illinois-Eastern Iowa District of Kiwanis International Spastic Paralysis Research Foundation has designated net assets for future programs, special research projects which apply the knowledge gained from the research in clinical and other settings to benefit children, and to pay future grants for spastic paralysis research. These designations as of September 30, 2016 and 2015 are as follows: Amador Medallion Fund
$
2016 373,114 $
2015 334,308
Don Miller Fund
41,956
38,278
Research Grant Designations Dr. Daniel Tranel Dr. Elliot J. Roth Dr. Rodger Elble Dr. Grayson Holmbeck Dr. Stephanie Ceman Dr. Daniel Llano Dr. Brad Schlagger Dr. Roberto Galvez Dr. Robin Bowman
60,000 40,000 40,000 20,000 60,000 60,000 60,000 20,000 80,000
80,000 60,000 60,000 40,000 80,000 80,000 80,000 40,000 -
440,000
520,000
Total research grant designations Other Grant Designations Supplies and equipment Penguin project Total other grant designations Total board designated net assets
$ 13
-
5,000 500
-
5,500
855,070 $
898,086
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS September 30, 2016 and 2015 NOTE 6 – RELATED PARTY TRANSACTIONS The Foundation has various officers that are also officers of the Illinois-Eastern Iowa District of Kiwanis International (District). These officers do not have the ability to influence the Foundation's operations for the benefit of the District, as this benefit would violate the Foundation's purpose of providing research funds for spastic paralysis and applied diseases of the central nervous system. While the District has control of the Foundation, it does not have an economic interest in the Foundation. Therefore, its operations are not consolidated in the financial statements of the District. These two entities share occupancy and office supplies expenses. The Foundation reimbursed the District for its estimated share of expenses in the amount of $4,000 and $4,000, respectively, for the years ended September 30, 2016 and 2015. The Foundation also made grant disbursements to the following nonvoting Board of Director members: 2016 Dr. Rodger Elble, Medical Director Dr. Stephanie Ceman, Assistant Medical Director
14
$
25,000 $ -
2015 20,000 20,000
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS September 30, 2016 and 2015 NOTE 7 – MEDICAL RESEARCH GRANTS The Foundation provides payments to the following for research relating to spastic paralysis and related disease:
Dr. Daniel Tranel Dr. Grayson Holmbeck Dr. Robin Bowman Dr. Andrew Morgan Dr. David O. McClone and Dr. Chandra Mayanil Dr. Elliot J. Roth Dr. Rodger Elble Dr. Stephanie Ceman Dr. Daniel Llano Dr. Bradley Schlagger Dr. Roberto Galvez Total research grant payments
$
Other grant payments Supplies and equipment - Dr. Elble Special one-time grant Total other grant payments Total grant payments
$
2016 2015 Actual Budget Actual 20,000 $ 20,000 $ 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 180,000
20,000 20,000 20,000 20,000 20,000 20,000 180,000
20,000 20,000 20,000 20,000 20,000 20,000 20,000 200,000
5,000 948
6,000 -
125,519
5,948 185,948 $
186,000 $
125,519 325,519
NOTE 8 – FUNCTIONAL ALLOCATIONS OF EXPENSES The costs of providing the various programs and other activities have been summarized on a functional basis. Costs are charged on a direct functional basis whenever practicable and all other costs are allocated on the basis of the proportional use of the services provided. NOTE 9 – SUBSEQUENT EVENTS Management evaluated subsequent events through February 22, 2017, the date the financial statements were available to be issued.
This information is an integral part of the accompanying financial statements. 15
SUPPLEMENTARY INFORMATION
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION SCHEDULE OF CONTRIBUTIONS BY CLUB AND DIVISION Year Ended September 30, 2016 (See independent auditor' report.)
Governor Gifts and Other
Parade of Love Archer Road, Chicago Hickory Hills Oak Lawn Southeast Area, Chicago Southwest Chicago Total Division 3
$
-
$
-
15
15 15 15 45
-
100 1,015 15 15 1,145
-
100 100 200 100 100 250 100 100 100 397 1,547
100 100 200 100 100 250 100 100 100 397 1,547
-
490 500 4,945 285 6,164 12,384
590 500 4,945 785 6,664 13,484
30 30 30 30 30 58 298
100 150 100 250 200 800
220 30 130 300 180 130 280 30 1,000 58 2,358
250 50 100 50 50 100 58 658
250 200 120 300 1,229 2,099
1,000 1,250 100 170 400 1,250 1,579 58 5,807
15 -
100 1,000 1,100
-
-
Bensenville-Wood Dale-Franklin Park Forest Park Montclare-Elmwood Park Northlake River Forest/Oak Park Total Division 6
100 500 500 1,100
Evanston Evanston, Breakfast Glenview-Northbrook Highland Park-Highwood Lake Bluff-Lake Forest Libertyville-Mundelein-Vernon Hills Lindenhurst-The Lakes Area Skokie Valley Zion-Benton Division 7 Clubs Total Division 7
190 300 770 1,260
Bloomingdale-Roselle Des Plaines Edison-Norwood Greater Chicago-eKiwanis Palatine Park Ridge - Morning Streamwood Division 8 Clubs Total Division 8
500 1,000 100 1,200 250 3,050
Brookfield Darien La Grange Oak Brook Westchester Western Springs - Hinsdale Willowbrook-Burr Ridge WHBCD Breakfast Club Woodridge Division 5 Clubs Total Division 5
17
$
Total Contributions
1,013 277 50 150 50 1,540
50 50
Lansing Golden K Orland Park Palos Heights Tinley Park Total Division 4
Special Events
30 30 30 -
$
1,013 277 50 165 100 1,605
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION SCHEDULE OF CONTRIBUTIONS BY CLUB AND DIVISION (Continued) Year Ended September 30, 2016 (See independent auditor' report.)
Governor Gifts and Other
Parade of Love Addison Central Dupage County Downers Grove Elmhurst Glen Ellyn Glendale Heights Lombard Villa Park Wheaton Total Division 9
$
100 100 100 250 500 100 500 1,650
$
-
Special Events $
554 1,045 1,021 154 435 1,538 1,600 6,347
Total Contributions $
100 654 100 1,295 1,521 254 935 1,538 1,600 7,997
Batavia Campton Hills Elgin Elgin-Golden K Geneva St. Charles St. Charles-Golden K Total Division 10
150 100 2,102 665 3,017
-
421 22 162 602 1,112 1,222 277 3,816
571 122 162 602 1,112 3,324 942 6,833
McHenry Total Division 11
1,000 1,000
-
-
1,000 1,000
Alpine, Rockford Boone County Freeport Freeport, Lincoln-Douglas Freeport-Golden K Parks (the), Loves Park Rock Valley Heritage Rockford Rockford-Golden K Total Division 12
2,050 100 750 500 500 200 250 536 350 5,236
120 350 124 150 50 794
698 477 60 10 215 80 1,540
2,748 100 1,347 850 500 384 260 901 480 7,570
Byron Dixon Dixon-Golden K Oregon Rochelle-Golden K Sterling Division 13 Clubs Total Division 13
1,000 300 400 1,000 2,700
100 50 150
300 620 50 1,600 300 600 113 3,583
300 1,720 50 1,950 700 1,600 113 6,433
DeKalb Kishwaukee-DeKalb Sycamore Tri-County Total Division 14
1,550 350 1,000 500 3,400
100 150 150 400
-
1,650 500 1,000 650 3,800
Dubuque Maquoketa Total Division 15
2,262 200 2,462
-
-
2,262 200 2,462
18
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION SCHEDULE OF CONTRIBUTIONS BY CLUB AND DIVISION (Continued) Year Ended September 30, 2016 (See independent auditor' report.)
Governor Gifts and Other
Parade of Love Bettendorf Camanche Clinton, IA Davenport Total Division 16
$
500 350 1,000 750 2,600
$
-
Annawan East Moline-Silvis Geneseo Kewanee Moline Rock Island Division 17 Clubs Total Division 17
500 1,000 1,000 1,000 500 4,000
-
Burlington Carthage Fort Madison Keokuk Total Division 18
500 1,000 300 200 2,000
Galesburg Macomb McDonough County Total Division 19
500 200 700
Special Events $
-
Total Contributions $
500 350 1,000 750 2,600
300 255 800 350 310 460 2,475
300 755 1,800 1,350 1,310 960 80 6,555
-
-
500 1,000 300 200 2,000
-
345 115 460
345 615 200 1,160
400 100 1,245 200 220 150 1,250 100 500 540 620 5,325
400 100 1,745 200 320 200 1,375 100 850 540 1,120 336 7,286
80 80
East Peoria Elmwood Eureka Greater Area Grand Prairie Peoria Metamora Morton Pekin Pekin Sunset Peoria Peoria Downton Earlybirds South-West Peoria Division 20 Clubs Total Division 20
500 100 50 250 500 1,400
125 100 336 561
Aurora Naperville-Evening Total Division 21
2,000 1,000 3,000
-
-
2,000 1,000 3,000
Bloomington Bloomington Golden K Lexington Total Division 22
1,500 1,000 90 2,590
-
300 300
1,800 1,000 90 2,890
19
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION SCHEDULE OF CONTRIBUTIONS BY CLUB AND DIVISION (Continued) Year Ended September 30, 2016 (See independent auditor' report.)
Governor Gifts and Other
Parade of Love Chicago Heights Frankfort Joliet Kankakee New Lenox Park Forest Will County 321 Total Division 23
$
1,500 500 2,500 150 500 5,150
$
-
Special Events $
-
Total Contributions
15 105 480 75 359 967 2,001
$
1,500 15 605 2,980 225 859 967 7,151
Mendota Morris Streator Total Division 24
1,087 1,100 2,187
-
-
1,087 1,100 2,187
Danville Golden K Danville, Breakfast Total Division 25
200 200
-
-
200 200
Mattoon Paris Total Division 26
100 540 640
-
-
100 540 640
500 500 1,500 147 1,000 3,647
-
-
500 500 1,500 147 1,000 3,647
Springfield Downtown Total Division 28
135 135
-
-
135 135
Jacksonville Quincy Quincy, Gem City Total Division 29
2,172 285 150 2,607
-
-
2,172 285 150 2,607
60 75 200 335
-
-
60 75 200 335
200 100 500 1,000 1,800
-
100 300 8 36 100 44 393 981
Clinton, IL Decatur Early Birds Decatur-Golden K Sullivan Tuscola
Greenville Northern Macoupin County Taylorville Total Division 30 Alton-Godfrey Bethalto Bunker Hill Area Collinsville-Sunrise Edwardsville Glen Carbon Jerseyville Wood River Township Division 31 Clubs Total Division 31
20
52 52
300 400 8 500 36 100 44 1,393 52 2,833
ILLINOIS-EASTERN IOWA DISTRICT OF KIWANIS INTERNATIONAL SPASTIC PARALYSIS RESEARCH FOUNDATION SCHEDULE OF CONTRIBUTIONS BY CLUB AND DIVISION (Continued) Year Ended September 30, 2016 (See independent auditor' report.)
Governor Gifts and Other
Parade of Love Benton McLeansboro Mount Carmel Mount Vernon Salem Division 33 Clubs Total Division 33
$
1,300 300 1,600
$
138 138
Special Events $
226 244 50 274 250 1,044
Total Contributions $
Belleville Fairview Heights O'Fallon Division 34 Clubs Total Division 34
150 100 300 550
-
Anna Carbondale Harrisburg Marion Metropolis Murphysboro Division 36 Clubs Total Division 36
100 100
500 400 100 250 138 1,388
200 1,184 548 200 200 275 70 2,677
200 1,684 1,048 200 300 525 208 4,164
61,267
4,630
48,918
114,814
31,033 31,033
-
2,114 2,424 500 5,038
2,114 33,457 500 36,071
-
-
8,214 2,990 939 24 8,275
8,214 2,990 939 24 8,275
Subtotal Kiwanis' club contributions and special events Aktion Clubs Key Clubs Builders Clubs Total sponsored leadership programs Convention events Prior year contributions Memorial, personal, and corporate contributions Amazon Smile Foundation Amador Endowment Fund contributions
TOTAL
$
21
92,299
-
226 244 50 1,574 550 138 2,781
52 52
$
4,630
$
74,399
150 100 300 52 602
$
171,328
