THE ALUMNI ASSOCIATION OF
THE UNIVERSITY OF NORTH CAROLINA
AT WILMINGTON
FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2015
(WITH COMPARATIVE TOTALS FOR THE
YEAR ENDED JUNE 30, 2014)
Certified Public Accountants and Advisors Since 1947
Greensboro, NC | Raleigh, NC | Winston-Salem, NC
Member of a Global Association
of Independent Accounting
and Consultancy Firms
THE ALUMNI ASSOCIATION OF THE UNIVERSITY OF NORTH CAROLINA
AT WILMINGTON
Table of Contents
Page No.
Independent Auditor's Report ………………………………………………………………
1
Financial Statements
Statement of Financial Position …………………………………………………………
3
Statement of Activities and Changes in Net Assets ……………………………………
4
Statement of Cash Flows ………………………………………………………………
5
Notes to Financial Statements ………………….………………………………………
6
Certified Public Accountants and Advisors Since 1947
Greensboro, NC | Raleigh, NC | Winston-Salem, NC
Independent Auditor's Report
To the Board of Directors
The Alumni Association of the University
of North Carolina at Wilmington
Wilmington, North Carolina
Report on the Financial Statements
We have audited the accompanying financial statements of The Alumni Association of the University of
North Carolina at Wilmington (the "Association") (a North Carolina nonprofit corporation), which comprise
the statement of financial position as of June 30, 2015, and the related statements of activities and changes
in net assets, and cash flows for the year 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America. Those
standards require that we plan and perform the audit 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 auditor's 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 Association'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 Association'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.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of The Alumni Association of the University of North Carolina at Wilmington as of June 30, 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.
Page 1
Report on Summarized Comparative Information
The financial statements of The Alumni Association of the University of North Carolina at Wilmington as
of June 30, 2014, were audited by other auditors whose report dated September 25, 2014, expressed an
unmodified opinion on those statements. The summarized comparative information presented herein as of
and for the year ended June 30, 2014 is consistent in all material respects with the audited financial
statements from which it has been derived.
Greensboro, North Carolina
September 18, 2015
Page 2
THE ALUMNI ASSOCIATION OF THE UNIVERSITY OF NORTH CAROLINA
AT WILMINGTON
Statement of Financial Position
June 30, 2015
(With Comparative Totals for June 30, 2014)
Unrestricted
2015
Temporarily
Restricted
$
180,759
477,369
-
$
52,314
-
$
233,073
477,369
-
$
221,923
486,336
2,001
$
658,128
$
52,314
$
710,442
$
710,260
$
89
$
-
$
89
$
2014
Total
Total
Assets
Cash and cash equivalents
Investments, net
Pledges receivable
Total Assets
Liabilities and Net Assets
Liabilities:
Accounts payable
Total Liabilities
89
Net Assets:
Unrestricted
Temporarily restricted
658,039
-
52,314
658,039
52,314
658,222
52,038
Total Net Assets
658,039
52,314
710,353
710,260
Total Liabilities and Net Assets
$
658,128
See Notes to Financial Statements
Page 3
-
$
52,314
89
-
$
710,442
-
$
710,260
THE ALUMNI ASSOCIATION OF THE UNIVERSITY OF NORTH CAROLINA
AT WILMINGTON
Statement of Activities and Changes in Net Assets
Year Ended June 30, 2015
(With Comparative Totals for Year Ended June 30, 2014)
Revenues, Gains and Other Support
Royalties and licensing fees
Donations:
Cash
Services
Registration fees
Investment income:
Realized gains
Unrealized gains (losses)
Dividend income
Interest income
Other
Total revenues, gains and other support
Unrestricted
2015
Temporarily
Restricted
$
$
19,717
4,818
75,356
24,837
(2,289)
125,992
Supporting services:
Management and general
Total supporting services
Total expenses
19,112
4,893
75,356
24,837
15,733
50,415
20,989
6,733
(27,866)
18,975
1,086
2,537
126,268
41,350
10,794
14,497
975
1,451
175,316
-
126,268
175,316
-
5,368
31,497
36,865
3,500
38,323
41,823
89,310
89,310
-
89,310
89,310
64,917
64,917
126,175
-
126,175
106,740
276
93
68,576
52,038
710,260
641,684
658,222
$
$
-
276
(183)
Net assets, beginning
19,717
5,368
31,497
36,865
Change in net assets
Net assets, ending
240
2,250
2,565
2,289
Expenses:
Program services:
Contributions to UNCW
Alumni events
Total program services
$
75
-
6,733
(27,866)
18,975
846
287
123,703
Net assets released from restrictions
Total revenues, gains, other support and
net assets released from restrictions
-
2014
Total
Total
658,039
See Notes to Financial Statements
Page 4
$
52,314
$
710,353
$
710,260
THE ALUMNI ASSOCIATION OF THE UNIVERSITY OF NORTH CAROLINA
AT WILMINGTON
Statements of Cash Flows
Year Ended June 30, 2015
(With Comparative Totals for Year Ended June 30, 2014)
Cash flows from operating activities:
Changes in net assets
Adjustments to reconcile changes in net assets
to net cash provided by operating activities:
Net realized (gains) losses on investments
Net unrealized gains on investments
(Increase) decrease in:
Pledges receivable
Increase (decrease) in:
Accounts payable
Net cash provided by operating activities
Unrestricted
2015
Temporarily
Restricted
$
$
Page 5
$
68,576
2,001
-
2,001
(518)
89
10,729
(75)
15,839
276
-
187,877
(187,456)
421
(41,350)
(10,794)
583,041
(591,074)
(8,033)
10,874
276
11,150
7,806
169,885
52,038
221,923
214,117
52,314
$ 233,073
$ 221,923
$ 180,759
See Notes to Financial Statements
93
21,133
(12,587)
421
Cash and cash equivalents, beginning
$
-
187,877
(187,456)
Net increase in cash and cash equivalents
276
21,133
(12,587)
89
10,453
Cash flows from investing activities:
Proceeds from sales or maturities
of investments
Purchases of investments
Net cash provided by (used in)
investing activities
Cash and cash equivalents, ending
(183)
2014
Total
Total
$
THE ALUMNI ASSOCIATION OF THE UNIVERSITY OF NORTH CAROLINA
AT WILMINGTON
Notes to Financial Statements
NOTE 1 - NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
The Alumni Association of the University of North Carolina at Wilmington (the "Association") was
organized as a North Carolina not-for-profit corporation in December 1979. The purpose of the
Association is to promote and encourage fellowship and friendship among its members; to foster
goodwill on the part of its members and others toward continuing to participate in the growth and
development of the University of North Carolina at Wilmington (the "University"); and in general,
to assist in the evaluation of institutional effectiveness and to carry out projects and services as the
Association adopts. The University is the Association's sole beneficiary.
A summary of the Association's significant accounting policies follows:
Comparative Financial Information
The financial statements include certain prior period summarized comparative information in totals
but not by net asset class. Such information does not include sufficient detail to constitute a
presentation in conformity with generally accepted accounting principles. Accordingly, such
information should be read in conjunction with the Association's financial statements for the year
ended June 30, 2014, from which the summarized information was derived.
Basis of Accounting
The Association uses the accrual basis of accounting; therefore, revenues are recognized when
earned and expenses are recognized when incurred. This basis of accounting conforms to
accounting principles generally accepted in the United States of America.
Basis of Presentation
Financial statement presentation follows the recommendations of the Financial Accounting
Standards Board in Accounting Standards Codification (ASC) Topic 958-205, Not-for-profit
Entities - Presentation of Financial Statements. Under ASC Topic 958-205, the Association 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. Net assets are defined as follows:
Unrestricted - Unrestricted net assets include resources which are available for the support of
the Association's operating activities.
Temporarily restricted - Temporarily restricted net assets include resources that have been
donated to the Association subject to restrictions as defined by the donor. These net assets may
be used only for the purposes specified by the donor or in accordance with the Association's
investment fund spending policy.
Permanently restricted - Permanently restricted net assets are subject to donor-imposed
stipulations or interpretation of applicable law that they be maintained permanently by the
Association. Generally, the donors of these assets or applicable law permit the Association to
use the income earned on any related investments for specific purposes. At June 30, 2015 and
2014, the Association did not have any permanently restricted net assets.
Page 6
THE ALUMNI ASSOCIATION OF THE UNIVERSITY OF NORTH CAROLINA
AT WILMINGTON
Notes to Financial Statements
NOTE 1 - NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
Revenue Recognition
Contributions are generally available for unrestricted use in the year received unless specifically
restricted by the donor. Contributions are reported as temporarily restricted support if they are
received with donor stipulations that limit the use of the donated assets. When a donor restriction
expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished,
temporarily restricted net assets are reclassified to unrestricted net assets and reported in the
statements of activities and changes in net assets as net assets released from restrictions.
Cash and Cash Equivalents
Cash equivalents consist of short-term, highly liquid investments, with original maturities at time of
purchase of less than ninety days.
Contributions
Contributions are recognized as revenues in the period received. Contributions of assets other than
cash are recorded at their estimated fair value at the date of the gift.
Investments
Investments in equity securities with readily determinable fair values and all investments in debt
securities are measured at fair value at the statement of financial position date. The fair value of the
Association's investments is disclosed in Note 3. Gains and losses on investments are reported in
the statements of activities and changes in net assets as increases or decreases in unrestricted net
assets unless their use is temporarily or permanently restricted by explicit donor stipulations. The
stated fair value of investments at June 30, 2015 and 2014 was $477,369 and $486,336,
respectively.
Income Tax Status
The Association is a not-for-profit corporation that is exempt from income taxes from activities
directly related to its exempt purpose under Section 501(c)(3) of the Internal Revenue Code. The
Association has also been classified as an entity that is not a private foundation within the meaning
of Section 509(a) and qualifies for deductible contributions as provided in Section 170(b)(1)(A)(iv).
It is the Association's policy to evaluate all tax positions to identify any that may be considered
uncertain. All identified material tax positions are assessed and measured by a "more-likely-thannot" threshold to determine if the tax position is uncertain and what, if any, the effect of the
uncertain tax position may have on the financial statements. No material uncertain tax positions
were identified for 2015.
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
certain reported amounts and disclosures. Accordingly, actual results could differ from those
estimates.
Page 7
THE ALUMNI ASSOCIATION OF THE UNIVERSITY OF NORTH CAROLINA
AT WILMINGTON
Notes to Financial Statements
NOTE 1 - NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
Subsequent Events
Management has evaluated events and transactions for potential recognition or disclosure through
September 18, 2015, which is the date the financial statements were available to be issued.
NOTE 2 - FAIR VALUE MEASUREMENTS
Investments are recorded at fair value using a fair value hierarchy that prioritizes the inputs to
valuation techniques used to measure fair value. The hierarchy gives the highest priority to
unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements)
and the lowest priority to unobservable inputs (level 3 measurements).
The three levels of the fair-value hierarchy are described as follows:
Level 1
Quoted prices in active markets for identical assets or liabilities at the measurement date;
Level 2
Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted
prices in active markets for similar assets or liabilities, quoted prices for identical or
similar assets or liabilities in markets that are not active, or other inputs that are
observable or can be corroborated by observable market data for substantially the full
term of the assets or liabilities; or
Level 3
Unobservable inputs that are supported by little or no market activity and that reflect the
Association’s own assumptions about market participants prices.
The following table sets forth by level, within the fair value hierarchy, the Association's investments
at fair value as of June 30, 2015 and 2014:
Money market funds and cash
Securities:
Equity
Mutual fund
Alternatives
Total
Money market funds and cash
Securities:
Equity
Mutual fund
Alternatives
Total
Fair Value Measurements at June 30, 2015
Total Fair
Value
Level 1
Level 2
Level 3
$
5,739
$
5,739
$
$
-
$
128,036
178,548
165,046
477,369
$
128,036
178,548
165,046
477,369
$
-
$
-
Fair Value Measurements at June 30, 2014
Total Fair
Value
Level 1
Level 2
Level 3
$
9,719
$
9,719
$
$
-
$
131,798
179,570
165,249
486,336
Page 8
$
131,798
179,570
165,249
486,336
$
-
$
-
THE ALUMNI ASSOCIATION OF THE UNIVERSITY OF NORTH CAROLINA
AT WILMINGTON
Notes to Financial Statements
NOTE 3 - INVESTMENTS
At June 30, 2015 and 2014, the net unrealized gains and market values of investments were as
follows:
2015
477,369
473,674
$
3,695
Aggregate fair value
Aggregate amortized cost
Net unrealized gains
$
2014
486,336
454,775
$
31,561
$
For the years ended June 30, 2015 and 2014, brokerage fees included in management and general
expenses were $6,846 and $6,606, respectively.
The Association invests in various investment securities. Investment securities are exposed to
various risks, such as interest rate, market, and credit risks. Due to the level of risk associated with
certain investment securities, it is at least reasonably possible that changes in the values of
investment securities will occur in the near term and that such changes could materially affect the
Association's account balances and the amounts reported in the statements of financial position.
NOTE 4 - PLEDGES RECEIVABLE
As of June 30, 2015, no pledge contributions were received by the Association. At June 30, 2014,
pledge contributions receivables to the Association were $2,210, less the allowance for uncollectible
accounts of $209.
NOTE 5 - TEMPORARILY RESTRICTED NET ASSETS
Temporarily restricted net assets are available for use in the maintenance and renovations of the
Wise House (AKA Wise Alumni House) in Wilmington, North Carolina.
NOTE 6 - RELATED PARTY TRANSACTION
As described in Note 1, the University of North Carolina at Wilmington is the sole beneficiary of
the Association. Contributions to the University totaled $5,368 and $3,500 for the years ended
June 30, 2015 and 2014, respectively.
NOTE 7 - DONATED SERVICES
Higher level positions, for which the Association would otherwise be required to pay in order to
maintain the quality of its program, have been provided to the Association by the University of
North Carolina at Wilmington employees. These amounts were included in the statements of
activities and changes in net assets as both a contribution and an expense. Total value of these
services was $75,356 and $50,415 for the years ended June 30, 2015 and 2014, respectively.
Page 9
THE ALUMNI ASSOCIATION OF THE UNIVERSITY OF NORTH CAROLINA
AT WILMINGTON
Notes to Financial Statements
NOTE 7 - DONATED SERVICES (Continued)
A substantial number of volunteers donated significant amounts of their time towards the
completion of the Association's program services during the year. No amounts have been
recognized in the accompanying statements of activities and changes in net assets for these
volunteers because the services donated are not identical to services the donor would usually charge
a fee to provide; therefore, a monetary amount cannot be assigned to the value of these services.
NOTE 8 - FUNCTIONAL EXPENSES
Expenses and their functional classifications for the years ended June 30, 2015 and 2014, consist of
the following:
2015
Contributions
Alumni
Management
to UNCW
Events
and General
Total
Scholarships
$
5,368
$
$
$
5,368
Professional services
3,890
10,554
14,444
Supplies and materials
26,315
684
26,999
Fixed charges
1,588
1,588
Donated services
75,356
75,356
Current services
1,292
1,128
2,420
Total expenses
$
5,368
$
31,497
$
89,310
$ 126,175
Scholarships
Professional services
Supplies and materials
Fixed charges
Donated services
Current services
Total expenses
Contributions
to UNCW
$
3,500
$
3,500
2014
Alumni
Management
Events
and General
$
$
3,738
11,806
33,466
15
1,520
50,415
1,119
1,161
$
38,323
$
64,917
Total
$
3,500
15,544
33,481
1,520
50,415
2,280
$ 106,740
There were no fund-raising expenses for the Association for the years ended June 30, 2015 and
2014. Contributions to UNCW represent unrestricted donations to the University of North Carolina
at Wilmington for scholarships and administrative support.
Page 10
THE ALUMNI ASSOCIATION OF THE UNIVERSITY OF NORTH CAROLINA
AT WILMINGTON
Notes to Financial Statements
NOTE 9 - RISKS AND UNCERTAINTIES
Cash is on deposit with the North Carolina State Treasurer and is pooled with state agencies and
similar institutions in the State Treasurer's short-term investment fund (STIF). These monies are
invested in accordance with G.S. 147-69.1 and as required by law are "readily convertible into
cash."
All investments of the fund are held either by the Department of State Treasurer or its agent in the
State's name. Money market funds held by brokerage firms are deposited in banks and insured by
the Federal Deposit Insurance Corporation.
Page 11
THE ALUMNI ASSOCIATION OF THE UNIVERSITY OF NORTH CAROLINA
AT WILMINGTON
Time and Costs for the Audit
Year Ended June 30, 2015
The Alumni Association of the University of North Carolina at Wilmington's audit was conducted
in approximately 30 hours at a total cost of $5,500.