COMPEER, INC.
FINANCIAL REPORTS
DECEMBER 31, 2009
Certified Public Accountants | 1870 Winton Road S., Suite 200 | Rochester, New York 14618 | 585.295.2400 | EFPRotenberg.com
INDEPENDENT AUDITORS’ REPORT
To the Board of Directors
of Compeer, Inc.
We have audited the statements of financial position of Compeer, Inc. as of December 31, 2009 and 2008, and the
related statements of activities and changes in net deficit, 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 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 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 Compeer, Inc. as of December 31, 2009 and 2008, and the changes in its net deficit and its cash flows
for the years then ended in conformity with accounting principles generally accepted in the United States of
America.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a
whole. The supplemental statement of changes in unrestricted net deficit for the year ended December 31, 2009 is
presented for purposes of additional analysis and is not a required part of the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic financial statements
and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a
whole.
EFP Rotenberg, LLP
Rochester, New York
June 1, 2010
COMPEER, INC.
Statements of Financial Position
December 31, 2009 and 2008
2009
2008
ASSETS
Assets
Cash and cash equivalents
Accounts receivable
Prepaid expenses
Office equipment - net of accumulated depreciation
of $1,807 and $1,204, respectively
Total Assets
$
63,451
20,389
408
$
1,004
1,037
25,625
807
$
85,252
$
27,469
$
1,972
6,660
2,399
89,617
73,906
$
16,866
3,658
2,300
96,912
31,875
LIABILITIES AND NET DEFICIT
Liabilities
Accounts payable
Accrued payroll and payroll taxes
Payable to affiliate
Loan payable - affiliate
Deferred revenue
Total Liabilities
174,554
151,611
Net Deficit
Unrestricted
Temporarily restricted
Total net deficit
(89,302)
(89,302)
(129,142)
5,000
(124,142)
Total Liabilities and Net Deficit
$
85,252
The accompanying notes are an integral part of these financial statements.
-2-
$
27,469
COMPEER, INC.
Statement of Activities and Changes in Net Deficit
For the Year Ended December 31, 2009
Support and Revenue
Program services
Contributions
Membership dues
Other income
Net assets released from restrictions
Total support and revenue
Unrestricted
Temporarily
Restricted
$
$
Expenses
Program services
Management and general
Total expenses
7,500
31,675
9,869
252,319
301,363
208,267
47,640
255,907
Change in Net Assets Before Other Expense
Net Deficit - Beginning
Net Deficit - Ending
$
247,319
7,500
31,675
9,869
296,363
208,267
47,640
255,907
(5,000)
5,616
Change in Net Deficit
$
-
45,456
Other Expense
Interest expense
247,319
(252,319)
(5,000)
Total
40,456
-
5,616
39,840
(5,000)
34,840
(129,142)
5,000
(124,142)
(89,302)
$
-
The accompanying notes are an integral part of these financial statements.
-3-
$
(89,302)
COMPEER, INC.
Statement of Activities and Changes in Net Deficit
For the Year Ended December 31, 2008
Support and Revenue
Program services
Contributions
Membership dues
Other income
Net assets released from restrictions
Total support and revenue
Unrestricted
Temporarily
Restricted
$
$
10,000
34,900
2,331
247,653
294,884
Expenses
Program services
Management and general
Total expenses
242,001
63,422
305,423
Change in Net Assets Before Other Expense
(10,539)
Other Expense
Interest expense
Net Deficit - Beginning
Net Deficit - Ending
$
$
-
247,153
15,500
34,900
2,331
299,884
242,001
63,422
305,423
5,000
6,489
Change in Net Deficit
247,153
5,500
(247,653)
5,000
Total
(5,539)
-
6,489
(17,028)
5,000
(12,028)
(112,114)
-
(112,114)
(129,142)
$
5,000
The accompanying notes are an integral part of these financial statements.
-4-
$
(124,142)
COMPEER, INC.
Statement of Functional Expenses
For the Year Ended December 31, 2009
NYS Program
OMH pass through
Salaries
Consultants
Meetings and travel
Occupancy (rent and utilities)
Legal and professional
Payroll taxes
Employee benefits
Insurance
Supplies
Telephone and internet
Postage and shipping
Public relations
Client enrichment
Conferences
Miscellaneous
Subcontractors
Equipment rental
Depreciation
Dues and subscriptions
Printing
Janitorial
Service charge
Total functional expenses
$
$
99,000
29,423
7,862
4,708
2,147
552
2,617
1,211
631
720
173
253
1,312
1,068
602
541
30
158
127
153,135
Livingston
County
Program
$
$
28,164
1,215
3,207
2,028
4,149
872
1,023
1,226
1,002
904
1,022
306
197
45,315
International
Program
Management
and
General
$
$
$
1,875
884
1,177
294
(151)
912
965
618
542
818
594
471
344
126
135
130
39
32
12
9,817
$
21,120
17,184
6,239
1,714
781
602
47,640
The accompanying notes are an integral part of these financial statements.
-5-
2009
Total
$
$
99,000
80,582
17,184
9,961
9,092
6,239
6,183
5,331
4,401
3,199
2,475
2,264
1,895
1,869
1,783
1,718
728
676
602
357
197
159
12
255,907
COMPEER, INC.
Statement of Functional Expenses
For the Year Ended December 31, 2008
NYS Program
OMH pass through
Salaries
Consultants
Legal and professional
Occupancy (rent and utilities)
Employee benefits
Telephone and internet
Payroll taxes
Conferences
Insurance
Public relations
Meetings and travel
Equipment rental
Miscellaneous
Supplies
Postage and shipping
Subcontractors
Client enrichment
Depreciation
Dues and subscriptions
Service charge
Printing
Total
$
$
96,500
29,660
4,770
410
1,989
1,887
3,080
1,860
834
1,255
1,191
810
406
672
98
42
145,464
Livingston
County
Program
$
$
26,052
3,897
5,565
2,215
2,189
355
413
822
1,493
273
167
192
764
149
618
218
22
9
45,413
International
Program
Management
and
General
$
$
$
24,024
4,770
4,265
4,139
2,200
1,688
1,861
2,391
861
1,560
751
1,004
802
673
92
43
51,124
$
12,936
29,766
16,634
2,333
1,151
602
63,422
The accompanying notes are an integral part of these financial statements.
-6-
2008
Total
$
$
96,500
92,672
29,766
16,634
13,437
12,573
8,343
7,427
5,123
4,134
3,213
3,188
3,088
2,109
2,006
1,972
1,494
618
602
218
212
94
305,423
COMPEER, INC.
Statements of Cash Flows
For the Years Ended December 31, 2009 and 2008
2009
Cash Flows from Operating Activities
Change in net deficit
Adjustments
Depreciation
Equipment given to landlord in lieu of cash
Forgiveness of amounts owed to affiliate
Changes in assets and liabilities
Accounts receivable
Prepaid expenses
Accounts payable
Accrued payroll and payroll taxes
Payable to affiliate
Deferred revenue
Net cash flows from operating activities
$
34,840
2008
$
602
-
602
1,000
(2,000)
5,236
(408)
(14,894)
3,002
99
42,031
70,508
Cash Flows from Investing Activities
Purchases of equipment
(12,028)
5,442
1,674
4,288
(4,658)
300
(2,325)
(7,705)
(799)
-
Cash Flows from Financing Activities
Repayments on loan to affiliate
(7,295)
-
Net Change in Cash and Cash Equivalents
62,414
(7,705)
1,037
8,742
Cash and Cash Equivalents - Beginning
Cash and Cash Equivalents - Ending
$
63,451
The accompanying notes are an integral part of these financial statements.
-7-
$
1,037
COMPEER, INC.
Notes to Financial Statements
Note 1.
Summary of Significant Accounting Policies and Organization
Organization - The primary purpose of Compeer, Inc. (Compeer) is to support and disseminate, on a
national and international basis, the Compeer model for providing volunteer companion services to
individuals being treated for mental illnesses or other emotional issues.
Standards of Accounting and Financial Reporting - The financial statements are presented in
accordance with ASC 958-205 (formerly: SFAS No. 117, “Financial Statements of Not-For-Profit
Organizations”). Under ASC 958-205, Compeer is required 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, defined as 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 will be
met either by actions and/or the passage of time.
Permanently Restricted Net Assets - Net assets subject to donor-imposed stipulations that they
be maintained permanently. Generally, the donors of these assets permit the use of all or part of
the income earned on the related investments for general or specific purposes.
Compeer accounts for contributions in accordance with ASC 605-10 (formerly: SFAS No. 116,
“Accounting for Contributions Received and Contributions Made”), whereby contributions received are
recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the
existence and/or nature of any donor restrictions. Temporarily restricted net assets are reclassified to
unrestricted net assets upon satisfaction of the time or purpose restrictions.
Expenses are reported as decreases in unrestricted net assets. Gains and losses on assets or liabilities
are reported as increases or decreases in unrestricted net assets unless their use is restricted by explicit
donor stipulation or by law. Expirations of temporary restrictions on net assets are reported as
satisfaction of restrictions.
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 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.
Cash and Cash Equivalents - For the purposes of the statements of financial position and the
statements of cash flows, all short-term investments with an original maturity of three months or less are
considered to be cash equivalents.
Accounts Receivable - Compeer considers accounts receivable to be fully collectible; accordingly, no
allowance for doubtful accounts is required. If amounts become uncollectible, they will be charged to
operations when that determination is made.
Office Equipment - Office equipment is recorded at cost. Depreciation is computed on the straight-line
method over an estimated useful life of five years. Expenditures for maintenance, repairs and renewals
of relatively minor items are generally charged to earnings as incurred. It is the Organization’s policy to
capitalize all assets in excess of $50 and an estimated useful life of more than one year.
Deferred Revenue - Membership dues are recorded as revenues when earned. Accordingly, amounts
billed and paid prior to being earned are recorded as deferred revenue and recognized when services are
rendered.
Deferred revenue is also comprised of amounts received in advance of contract periods.
-8-
COMPEER, INC.
Notes to Financial Statements
Member Agencies - Compeer allocates funds to member agencies which provide services which
rehabilitate and support men, women and children receiving mental health care.
Income Taxes - Compeer is exempt from federal income tax under Section 501(c)(3) of the Internal
Revenue Code. However, income from certain activities not directly related to the Organization’s taxexempt purpose is subject to taxation as unrelated business income.
In June 2006, the Financial Accounting Standards Board issued ASC 740-10-50 (formerly: FASB
Interpretation No. 48, “Accounting for Uncertainty in Income Taxes”), which prescribed a comprehensive
model for how an organization should measure, recognize, present, and disclose in its financial
statements uncertain tax positions that the organization has taken or expects to take on their
informational returns. ASC 740-10-50 is effective for nonpublic entities for years beginning after
December 15, 2008. The Facility adopted ASC 740-10-50 as of January 1, 2009 and, thereafter,
recognizes the tax benefits from uncertain tax positions only if it is more likely than not that the tax
position will be sustained on examination by the taxing authorities. Management believes that Compeer
is currently operating in compliance with the applicable requirements of the Internal Revenue Code.
Therefore, no liability for unrecognized tax benefits has been included on Compeer’s financial
statements. The exempt Compeer’s informational returns are subject to audit by various taxing
authorities and its open audit periods are 2006 through 2009.
Subsequent Events - On May 28, 2009, the FASB issued ASC 855-10 (formerly: SFAS No. 165
"Subsequent Events"). ASC 855-10 provides guidance on management's assessment of subsequent
events and requires additional disclosure about the timing of management's assessment of subsequent
events. It does not significantly change the accounting requirements for the reporting of subsequent
events. ASC 855-10 is effective for interim or annual financial periods ending after June 15, 2009.
Compeer adopted ASC 855-10 as of December 31, 2009 and accordingly assessed subsequent events
in these annual financial statements from December 31, 2009 through June 1, 2010, the date these
financial statements were issued. The adoption of this standard did not materially impact Compeer’s
financial position, activities and changes in net deficit, or disclosures in the financial statements.
Note 2.
Related Party Transactions
Compeer Rochester, Inc. (Rochester) is a related party through common board members and interim
management.
As of December 31, 2009, Compeer has a liability to Rochester of $2,399 for 401K and shared office use
expenses. As of December 31, 2008, Compeer had a liability to Rochester of $2,300 for donations
erroneously deposited by Compeer.
Compeer has a term loan due to Rochester in monthly installments of $1,076, including interest at 6%
due December 2018. Amounts owed to Rochester from Compeer were $89,617 and $96,912 at
December 31, 2009 and 2008, respectively. Interest expense was $5,616 and $6,489 for the years
ended December 31, 2009 and 2008, respectively.
Annual maturities of the term loan payable are as follows:
2010
2011
2012
2013
2014
Thereafter
Total
$
$
-9-
7,745
8,222
8,729
9,268
9,840
45,813
89,617
COMPEER, INC.
Notes to Financial Statements
Note 3.
Concentrations
Approximately 85% of Compeer’s revenues are received from two funding sources.
Note 4.
Lease Commitments
Compeer rented office space and equipment from a company owned by its former president on a monthto-month basis through September 30, 2008. Office space and equipment is rented from a related party
beginning October 1, 2008. Rent expense totaled $5,187 and $10,600 for the years ended
December 31, 2009 and 2008, respectively. Equipment rental expense totaled $676 and $3,089 for the
years ended December 31, 2009 and 2008, respectively.
Compeer’s Livingston County program rents office space from an unrelated company on a month-tomonth basis with a required 30 day notice given to renegotiate the lease at a future time. They are also
required to pay a portion of the utilities under another co-tenant agreement with another unrelated
company. Rent and utility expense under the agreements totaled $2,400 and $2,200 for the years ended
December 31, 2009 and 2008, respectively.
Note 5.
Benefit Plan
Compeer sponsors a defined contribution plan covering all employees who have reached the age of 21
years and completed one year of service. Compeer matches 100% of employee contributions up to 3%
of employee wages. In addition, the Board of Directors may approve a discretionary contribution to the
Plan.
Matching contributions to the plan totaled $1,204 and $2,043 for the years ended December 31, 2009
and 2008, respectively. There were no discretionary contributions during 2009 or 2008.
Note 6.
Supplemental Cash Flow Information
2009
Cash paid during the year for:
Interest
$
- 10 -
5,616
2008
$
6,489
COMPEER, INC.
Supplemental Statement of Changes in Unrestricted Net Deficit
For the Year Ended December 31, 2009
NYS
Program
Revenues
Contributions, contracts, and grants
Other income
Membership dues
Total revenues
$
197,224
197,224
Expenses
OMH pass through
Overhead allocation
Salaries
Consultants
Meetings and travel
Occupancy
Legal and professional
Payroll taxes
Interest
Employee benefits
Insurance
Supplies
Telephone and internet
Postage and shipping
Public relations
Client enrichment
Conferences
Miscellaneous
Subcontractors
Equipment rental
Depreciation
Dues and subscriptions
Printing
Janitorial
Service charge
Total expenses
99,000
38,030
29,423
7,862
4,708
2,147
5,616
552
2,617
1,211
631
720
173
253
1,312
1,068
602
541
30
158
127
196,781
Change in Net Deficit
443
Net Deficit - Beginning
Net Deficit - Ending
Livingston
County
Program
International
Program
Management
and
General
$
$
$
4,805
28,164
1,215
3,207
2,028
4,149
872
1,023
1,226
1,002
904
1,022
306
197
50,120
(3,915)
(1,318)
$
(1,343)
13,081
9,288
31,675
54,044
$
-
4,805
1,875
884
1,177
294
(151)
912
965
618
542
818
594
471
344
126
135
130
39
32
12
14,622
(25)
(4,358)
$
50,095
50,095
Total
$ 260,400
9,288
31,675
301,363
(47,640)
21,120
17,184
6,239
1,714
781
602
-
99,000
80,582
17,184
9,961
9,092
6,239
6,183
5,616
5,331
4,401
3,199
2,475
2,264
1,895
1,869
1,783
1,718
728
676
602
357
197
159
12
261,523
39,422
-
39,840
(123,466)
-
(129,142)
(84,044)
$
The accompanying notes are an integral part of these financial statements.
- 11 -
-
$
(89,302)