FINANCIAL STATEMENTS
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Ervin's All American
Youth Club, Inc.
Financial statements
september 30, 1998
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Cronin, Jackson, Nixon & Wilson
CERTIFIED PUBLIC ACCOUNTANTS, P.A,
JAMES L. CARLSTEDT, CPA.
JOHN H. CRONIN, JR., CPA.
ERIC M. DOAN, CPA.
ROBERT H. JACKSON, CPA.
ELIZABETH A. MAY, CPA.
BRENDA W McBARRON, CPA.
ROBERT C NIXON, CPA.
HOLLY M. TOWNER, CPA.
JOHN A. VANTREASE, CPA.
JAMES L. WILSON, CPA.
2560 GULF-TO-BAY BOULEVARD
SUITE 200
CLEARWATER, FLORIDA 33765-4419
(727) 791-4020
FACSIMILE
(727) 797-3602
Independent Auditors' Report
December 15, 1998
To the Board of Directors
Ervin's All American Youth Club, Inc.
We have audited the accompanying statements of financial position of
Ervin's All American Youth Club, Inc. (a non-profit organization) as of
September 30, 1998 and 1997, and the related statements of activities and
functional expenses, and cash flows for the years then ended. These
financial statements are the responsibility of the organization's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Ervin's All American
Youth Club, Inc. as of September 30, 1998 and 1997, and the changes in its
net assets and its cash flows for the years then ended in conformity with
generally accepted accounting principles.
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CRONIN, JACKSON, NIXON & WILSON
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Ervin's All American Youth Club, Inc.
statement of Financial Position
September 30,
1998 1997
Assets
Current assets:
Cash $ 4,939 $ 1,135
Due from Juvenile Welfare Board (Note 3) 2,084 3,922
Due from Department of Community Affairs
(Note 4) 14,610
Accounts receivable 2,681
Inventory 2,384
Prepaid and other assets 846 3.150
22,479 13,272
Property and equipment, less accumulated
depreciation (Note 7) 83.506 83.852
Total assets $ 105.985 $ 97.124
Liabilities and Net Assets
Liabilities:
Current liabilities:
Accounts payable and accrued expenses $ 13,511 $ 36,398
Accounts payable - JWB 5,797
Payroll taxes 23,518
Current portion of long-term debt (Note 8) 38,560 42,048
Deferred revenue - City of Clearwater
(Note 5) 25.325
77,396 107,761
Long-term debt (Note 8) 27.043 36.437
Total liabilities 104,439 144,198
Net assets 1. 546 (47.074)
Total liabilities and net assets $ 105.985 $ 97.124
The accompanying notes are an integral
part of these financial statements
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Ervin's All American Youth Club, Inc.
statement of Activities
For the Year Ended September 30,
Revenue and other support:
National African-American Male Collaboration
(Note 12)
Juvenile Welfare Board (Note 3)
City of Clearwater grant (Note 5)
City of Clearwater in-kind donations (Note 6)
Florida Department of Community Affairs
(Note 4)
Corporate and civic Club donations
other donations
Interest income
Special events (Note 11):
Gross receipts
Less direct donor benefits
Expenses:
Program services:
Youth empowerment program
Support services program
Senior/food program
Ujamaa Village
Arts intervention program
General and administrative
Total expenses
Change in net assets
Net assets at beginning of year
Net assets at end of year
1998
$ 92,500
74,356
118,437
20,100
49,800
11,100
13,425
379.718
12,733
(11.743)
990
380.708
92,500
74,356
5,331
9,764
49.800
231,751
100.337
332.088
48,620
(47.074)
$
1. 546
The accompanying notes are an integral
part of these financial statements
1997
$ 92,500
69,854
117,337
20,100
6,150
3,992
68
310.001
310.001
92,500
69,854
7,063
11,682
181,099
150.617
331. 716
(21,715)
(25.359)
$ (47.074)
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Ervin's Al1 American Youth C1ub, Inc.
statement of Functiona1 Bxpenses
For the Year Ended september 30, 1998
1998
Youth
Empowerment support Senior/Food Ujamaa Arts Genera1
Program Services Program Vi11age Intervention & Admin. Tota1
Expenses:
Sa1aries $ 71,067 $ 41,296 $ 23,082 $ 17,541 $ 152,986
Taxes & fringe benefits 5,437 4,145 1,587 1,215 12,384
Group insurance 2,910 2,607 5,517
Prof.ssiona1 fees 7,561 2,500 7,373 17,434
Contractua1 service. 1,248 1,330 8,663 11,241
Trave1 1,647 585 3,938 6,170
Gaso1ine 423 63 592 1,078
Conference 922 460 1,382
Training 92 330 416 838 -
Te1ephone 1,600 1,296 880 2,359 6,135
Uti1ities 3,314 1,530 3,184 8,028
Water/Sewer/Sanitation 735 509 952 2,196
Rent - Bui1ding 1,515 1,515 3,030
Rent - Equipment 2,737 3,589 6,326
Rent - Bui1ding in-kind 12,000 12,000
Bui1ding R&M - in-kind 7,860 7,860
Pest contro1 - in-kind 240 240
Van renta1 125 95 662 882
Janitoria1 1,200 300 1,500
Postage 278 183 461
Insurance 100 472 $ 2,160 3,552 6,284
Auto insurance 4,403 753 5,156
Repairs & maintenance 333 866 1,199
Promotiona1 activities 200 271 215 686
Printing 324 390 970 1,684
Operating supp1ies & expenses 4,240 5,854 1,996 3,061 2,458 17,609
Transportation 1,767 188 509 2,464
Food/Nutrition 132 $ 5,331 154 5,617
Incentives 1,484 90 167 739 2,480
On-1ine services 241 241
Interest 5,567 3,802 9,369
Depreciation 8,796 8,796 i__
Licenses 0
Dues & subscriptions 210 17 227
Books 200 7 207
Pena1ties 385 385
Bank charges 504 504
Payro11 processing fee 1,013 1,013
Program eva1uation 2,070 2,070
'Fundraising expenses 0
Fami1y activities .... 587 7,171 350 8,152
Networking 0
Other - taxes 257 257
$ 92,500 $ 74,356 $ 5,331 $ 9,764 $ 49,800 $ 100,337 $ 332,088
The accompanying notes are an inteqra1
part of these financia1 statements
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Ervin's All American Youth Club, Inc.
statement of Functional Expenses
For the Year Ended September 30, 1997
1997
Youth
Empowerment Support Senior/Food Ujamaa General
proqram Services proqram Village , Admin. Total
Expenses:
Salaries $ 80,206 $ 41,561 $ 31,305 $ 153,072
Taxes , fringe benefits 6,136 3,828 1,896 11,860
Professional fees 4,805 8,219 13,024
Contractual services 1,200 3,885 5,085
Travel 3,885 1,045 3,220 8,150
Training 330 1,296 1,626
Telephone 1,000 5,779 6,779
Utilities 3,000 $ 1,247 3,861 8,108 -
Water/Sewer/Sanitation 700 1,182 1,882
Rent - Building 2,347 2,347
Rent - Equipment 193 6,211 6,404
Rent - Building in-kind 12,000 12,000
Building R&M - in-kind 7,860 7,860
Pest control - in-kind 240 240
Van rental 830 830
Janitorial 1,248 3,902 5,150
Postage 174 323 497
Insurance 3,497 695 648 4,840
Auto insurance 511 511
Repairs & maintenance 4 7,450 512 7,966
Promotional activities 200 85 784 1,069
Printing 390 182 572
Operating supplies , expenses 457 5,886 1,214 8,714 16,271
Transportation 590 3,870 4,460
Food/Nutrition 1 $ 7,063 46 3,608 10,718
Incentives 228 64 3,420 3,712
On-line services 370 370
Interest 10,202 10,202
Depreciation 8,489 8,489 ,-
Licenses 1,676 1,676
Dues & subscriptions 200 91 291
Books 200 655 855
Penalties 7,769 7,769
Bank charges 3,236 3,236
proqram evaluation 1,500 40 1,540
Fundraising expenses 157 157
Family activities 83 300 1,302 1,685
Networking 25 25
Other - taxes 388 388
$ 92,500 $ 69,854 $ 7,063 $ 11,682 $ 150,617 $ 331,716
The accompanying notes are an integral
part of these financial statements
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Ervin's All American Youth Club, Inc.
statement of Cash Flows
For the Year Ended September 30,
1998
1997
Cash flows from operating activities:
Cash received from supporting agencies
and individuals
Cash paid to employees
Cash paid for operations
Cash paid for interest
$ 399,207 $ 311,876
(154,803) (151,255)
(208,656) (129,126)
(10.612) (8.959)
25.136 22.536
(65,800)
(8.450) (8.807)
(8.450) (74.607)
30,723 140,224
(43.605) (89.199)
(12.882) 51. 025
3,804 (1,046)
1. 135 2.181
$ 4.939 $ 1.135
Net cash provided by operating activities
Cash flows from investing activities:
Purchase of building
Purchase of equipment
Net cash used in investing activities
Cash flows from financing activities:
Issuance of long-term debt
Repayment of long-term debt
Net cash (used in) provided by financing
activities
Net increase (decrease) in cash
Cash at beginning of year
Cash at end of year
(Continued on following page)
The accompanying notes are an integral
part of these financial statements
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Ervin's All American Youth Club, Inc.
statement of Cash Flows
For the Year Ended September 30,
(Continued from previous page)
Reconciliation of change in net assets to
cash provided by operating activities:
Change in net assets
Adjustments to reconcile change in net
assets to net cash provided by operating
activities:
Depreciation
Decrease (increase) in amount due from
Juvenile Welfare Board
Increase in due from Department of
community Affairs
Decrease (increase) in accounts receivable
Decrease in inventory
Decrease in other current assets
(Decrease) increase in accounts payable
and accrued expenses
(Decrease) increase in accounts payable
to JWB
(Decrease) increase in payroll taxes
payable
Increase in deferred revenue - City of
Clearwater
Net cash provided by operating activities
1998
$ 48.620
8,796
1,838
(14,610)
2,681
2,384
2,304
(22,887)
(5,797)
(23,518)
25.325
(23.484)
$ 25.136
The accompanying notes are an integral
part of these financial statements
1997
$ (21. 715)
8,489
(3,922)
(1,522)
220
1,271
22,956
5,797
10,962
44.251
$ 22.536
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Ervin's All American Youth Club, Inc.
Notes to Financial statements
September 30, 1998
Note 1 - Orqanization:
Ervin's All American Youth Club, Inc. (the "Organization") was
organized to provide a club for the youth of the Clearwater, Florida area.
The intent of the Organization is to combat juvenile delinquency by
promoting the development of athletic ability and scholastic achievement.
The organization was incorporated on June 17, 1981, in the State of
Florida to engage exclusively in not-for-profit activities, and is exempt
from federal income taxes under section 501{c) (3) of the Internal Revenue
Code and state income taxes under Section 220.13 of the Florida State Tax
Code. Therefore, no provision for income taxes has been made in these
financial statements.
Note 2 - Summary of siqnificant accountinq policies:
A summary of the major accounting policies followed by the organization
in preparation of the accompanying financial statements is set forth below.
A. Basis of presentation:
Financial statement presentation follows the recommendations of the
Financial Accounting Standards Board in its Statement of Financial
Accounting Standards (SFAS) No. 117, "Financial Statements of Not-
for-Profit Organizations." Under SFAS No. 117, the Organization is
required to report information regarding its financial position and
activities according to three classes of net assets: unrestricted
net assets, temporarily restr icted net assets, and permanently
restricted assets. The Organization does not have any temporarily
restricted or permanently restricted net assets as of
September 30, 1997 or 1998.
B. Depreciation:
Property and equipment are recorded at cost. Depreciation has been
provided based on accelerated methods over periods ranging from 3
to 39 1/2 years.
C. Inventories
Inventories consist of pieces of art
available for purchase by the community.
lower of cost or market.
work and related books
They are presented at the
D. Use of estimates:
The preparation of financial statements in conformity with
generally accepted accounting principles 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 revenue and expense dur ing the reporting
period. Actual results could differ from those estimates.
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Note 2 - Summary of siqnificant accountinq policies (con't.):
E. Cash eauivalents
For purposes of the statement of cash flows, the Organization
considers all highly liquid debt instruments purchased with a
maturity of three months or less to be cash equivalents.
F. Reclassifications
certain amounts in the 1997 financial statements have been
reclassified for comparative purposes to conform with the
presentation in the 1998 financial statements.
G. Contributed services:
The value of the contributed time of unpaid volunteers is not
reflected in the financial statements of the Organization, since it
is not susceptible to objective measurement.
Note 3 - Juvenile Welfare Board grants:
An ongoing source of support for the
Welfare Board of pinellas County ("JWB").
for monthly operating costs based upon
Organization and approved by JWB.
Organization is the Juvenile
JWB reimburses the organization
a budget recommended by the
The support amount from JWB of $74,356 and $69,854 in 1998 and 1997,
respectively, represents expenditures made by the Organization and funded
by JWB. The amounts due from JWB at September 30, 1998 and 1997, of $2,084
and $3,922, respectively, represent expenditures made by the Organization
for which reimbursement has been requested.
Note 4 - Due from Department of Community Affairs:
The Organization received a $50,000 sub-grant award from the State of
Florida, Department of Community Affairs, Division of Housing and community
Development, for a project entitled "Arts Intervention Program for Drug and
Violence" for the year ended September 30, 1998.
The support amount of $49,800 represents expenditures made by the
Organization and funded by the program. The amount due from the Department
of community Affairs at September 30, 1998, of $14,610 represents
expenditures made by the organization for which reimbursement has been
requested.
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Note 5 - city of Clearwater qrant:
Support from the city of Clearwater in the amount of $118,437 and
$117,337 in 1998 and 1997, respectively, represents funding received under
an operational support agreement with the city of Clearwater to provide
educational and recreational acti vi ties for young people from low to
moderate income families.
On August 26, 1998, the Organization signed an Operational Support
Agreement with the city of Clearwater for the fiscal year ending September
30, 1999. The first quarterly payment under this Agreement of $25,325 was
received in September, 1998, and has been recorded as the liability
"Deferred Revenue - City of Clearwater."
Note 6 - city of Clearwater in-kind donations:
The support amounts from City of Clearwater in-kind donations of
$20,100 in both 1998 and 1997 represents donations of building rent,
maintenance, and supplies. The organization occupies facilities owned and
maintained by the city of Clearwater.
Note 7 - Property and equipment:
Property and equipment include the following at September 30:
1998
1997
Land $ 13,000 $ 13,000
Building 52,800 52,800
Furniture and equipment 45,706 43,706
Leasehold improvements 4,803 1,367
Software 576 576
Vehicle 4.754 7.551
121,639 119,000
Less: Accumulated depreciation (38.133) (35.148)
$ 83.506 $ 83.852
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Note 8 - Lonq-term debt due:
Long-term debt is summarized as follows at September 30:
Mortgage payable to an individual,
monthly principal and interest payments
of $506, fixed interest rate at 14
percent, balloon payment due March 15,
1999, collateralized by a building
Note payable to a business, monthly
principal and interest payments of $500
plus interest calculated at prime plus
2%, commencing on November 1, 1997,
with a maturity date of October 30,
1998, collateralized by athletic
equipment
Note payable to bank, monthly principal
and interest payment of $344 payable
through August, 1997, interest at
11.25%, secured by a vehicle
Note payable to bank, unsecured, interest
at 16.50%, payable on October 31, 1997
and December 31, 1997
Note payable to bank, unsecured, interest
at 12%, monthly principal and interest
payments of $503 through March, 2006
1998
$ 35,937
29.666
65,603
Less amount due in one year (38.560)
Maturities of long-term debt are as follows:
Year Ending
September 30.
1999
2000
2001
2002
2003
Thereafter
$38,560
2,956
3,330
3,753
4,229
12.775
$65.603
$ 27.043
1997
$ 36,904
6,000
340
35,241
78,485
( 42. 048 )
$ 36.437
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Note 9 - Commitments and continqencies:
Ervin's All American Youth Club, Inc. receives a substantial amount of
its support from National Foundation programs and local governments. A
significant reduction in the level of this support, if this were to occur,
would have an adverse effect on the Organization's programs and activities.
Note 10 - Commitments:
The organization leases a copy machine under a long-term lease
agreement, which expires in August, 2003. Future minimum payments are
summarized as follows:
1999
2000
2001
2002
2003
$ 3,703
3,703
3,703
3,703
3.394
$18.206
Note 11 - special events:
Direct donor benefits related to special events are displayed as
reductions of related revenue on the accompanying statement of activities.
Direct donor benefits consist primarily of facilities rental, catering,
entertainment, awards to honorees, and promotional items given to
attendees.
Note 12 - Deferred revenue:
The Organization received advance funding in 1998 and 1997 from the
National African-American Male Collaboration, in accordance with a proposal
submitted by the Organization. These funds have been restricted by the
NAAMC for specific expenses. Any unspent funds represent a liability to
the Organization and are recorded as deferred revenue. There were no
unspent funds at September 30, 1998 or 1997.
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