UNCW STUDENT AID ASSOCIATION, INC.
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
UNCW STUDENT AID ASSOCIATION, INC.
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
UNCW Student Aid Association, Inc.
Wilmington, North Carolina
Report on the Financial Statements
We have audited the accompanying financial statements of UNCW Student Aid Association, Inc. (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.
Page 1
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of UNCW Student Aid Association, Inc. 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.
Report on Summarized Comparative Information
The financial statements of UNCW Student Aid Association, Inc. as of June 30, 2014, were audited by
other auditors whose report dated October 1, 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
UNCW STUDENT AID ASSOCIATION, INC.
Statement of Financial Position
June 30, 2015
(With comparative totals for June 30, 2014)
Unrestricted
2015
Temporarily
Restricted
$
$
2014
Total
Total
Assets
Current assets:
Cash and cash equivalents
Due from (to) other funds
Due from the University
Contributions receivable, current
Total current assets
Other assets:
Contributions receivable, non-current
CSV of life insurance
Total other assets
Total Assets
192,527
37,579
14,695
575,708
(37,579)
100,000
158,801
$
768,235
100,000
173,496
$
443,267
25,060
244,801
796,930
1,041,731
468,327
65,693
79,939
106,424
-
172,117
79,939
333,030
71,213
145,632
106,424
252,056
404,243
$
390,433
$
903,354
$ 1,293,787
$
872,570
$
55
-
$
250,000
$
$
72,500
-
Liabilities and Net Assets
Liabilities:
Accounts payable
Due to individuals
Refundable advance
Total liabilities
55
250,000
55
250,000
250,055
72,500
Net Assets:
Unrestricted
Temporarily restricted
390,378
-
653,354
390,378
653,354
313,113
486,957
Total net assets
390,378
653,354
1,043,732
800,070
903,354
$ 1,293,787
Total Liabilities and Net Assets
$
390,433
See Notes to Financial Statements
Page 3
$
$
872,570
UNCW STUDENT AID ASSOCIATION, INC.
Statement of Activities and Changes in Net Assets
Year Ended June 30, 2015
(With Comparative Totals for Year Ended June 30, 2014)
Unrestricted
2015
Temporarily
Restricted
$
$
Total
2014
Total
$ 1,282,000
2,561
(3,655)
8,726
241,215
164,028
-
$ 1,081,645
1,410
9
9,033
255,544
99,908
-
Support and Revenues:
Contributions
Interest income
Realized gains (losses) on investments
Unrealized gains on investments
Other income
Donated services
Net assets released from restrictions
565,308
542
(28)
8,726
131,292
164,028
658,610
1,528,478
Total support and revenues
716,692
2,019
(3,627)
109,923
(658,610)
166,397
1,694,875
1,447,549
Expenses:
Contributions to UNCW Athletics
Fundraising
Management and general
Total expenses
1,080,944
164,743
205,526
-
1,080,944
164,743
205,526
1,002,678
155,757
139,930
1,451,213
-
1,451,213
1,298,365
Change in net assets
77,265
166,397
243,662
149,184
Net assets, beginning
313,113
486,957
800,070
650,886
653,354
$ 1,043,732
Net assets, ending
$
390,378
See Notes to Financial Statements
Page 4
$
$
800,070
UNCW STUDENT AID ASSOCIATION, INC.
Statement of Cash Flows
Year Ended June 30, 2015
(With Comparative Totals for Year Ended June 30, 2014)
Cash flows from operating activities:
Change in net assets
Adjustments to reconcile change in net assets to
net cash provided by operating activities:
Changes in assets and liabilities:
Due (from) to other funds
Contributions receivable
Due from the University
CSV of life insurance
Accounts payable and accrued liabilities
Refundable advance
Unrestricted
2015
Temporarily
Restricted
Total
2014
Total
$
$ 166,397
$ 243,662
$ 149,184
77,265
6,865
58,887
(8,726)
55
-
(6,865)
(46,410)
(100,000)
(72,500)
250,000
12,477
(100,000)
(8,726)
(72,445)
250,000
(22,543)
(9,033)
72,500
-
Net cash provided by operating activities
134,346
190,622
324,968
190,108
Net change in cash and cash equivalents
134,346
190,622
324,968
190,108
58,181
385,086
443,267
253,159
$ 192,527
$ 575,708
$ 768,235
$ 443,267
Cash and cash equivalents, beginning
Cash and cash equivalents, ending
See Notes to Financial Statements
Page 5
UNCW STUDENT AID ASSOCIATION, INC.
Notes to Financial Statements
NOTE 1 - NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
The UNCW Student Aid Association, Inc. (the "Association") was organized as a North Carolina
nonprofit corporation on July 18, 1966, in order to aid, foster, and promote the education of student
athletes by obtaining donations for the scholarship program at the University of North Carolina at
Wilmington (the "University"). The Association also raises funds for the improvement and
construction of physical facilities used by the University for athletic purposes, for the University's
athletic scholarship endowment fund, and to provide operational and supplementary support for the
entire sports program. In addition, the Association exists to encourage a fraternal spirit of loyalty
and interest in the University by alumni, friends, and benefactors. 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 Presentation
The financial statements 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, revenues, expenses, gains, and losses are classified
based on the existence or absence of donor-imposed restrictions. Accordingly, net assets of the
Association and changes therein are classified and reported as follows:
Unrestricted net assets are net assets that are not subject to donor-imposed stipulations and are
currently available at the discretion of the board for use in the Association's operations or for
investment in fixed assets.
Temporarily restricted net assets are net assets subject to donor-imposed stipulations that require
actions of the Association or the passage of time. When a restriction expires as a result of the
lapse of a time restriction or achieving the specific operating purpose stipulated, temporarily
restricted net assets are reclassified to unrestricted net assets and reported in the statement of
activities and changes in net assets as net assets released from restrictions.
Permanently restricted net assets are net assets subject to donor-imposed stipulations that they be
maintained permanently by the Association. Generally, the donors of these assets permit the
Association to use all the income earned on any related investments. At June 30, 2015, the
Association did not have any permanently restricted net assets.
Principles of Reporting
The accompanying financial statements have been prepared on the accrual basis of accounting in
accordance with accounting principles generally accepted in the United States of America.
Page 6
UNCW STUDENT AID ASSOCIATION, INC.
Notes to Financial Statements
NOTE 1 - NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
Support and Revenue
Contributions are recognized as support and revenue when cash or ownership of donated assets are
unconditionally promised to the Association. Contributions to be received after one year are
discounted at an appropriate discount rate commensurate with the involved risks. An allowance for
uncollectible pledges receivable is provided based upon management's judgment.
Long-Lived Assets
The Association reports gifts of land, buildings, and equipment as unrestricted support unless
explicit donor stipulations specify how the donated assets must be used. Gifts of long-lived assets
with explicit restrictions that specify how the assets are to be used and gifts of cash or other assets
that must be used to acquire long-lived assets are recorded as restricted support. Absent explicit
donor stipulations about how long these long-lived assets must be maintained, the Association
reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in
service.
Cash and Cash Equivalents
For purposes of the statements of cash flows, the Association considers all highly liquid investments
available for current use within an initial maturity of three months or less to be cash equivalents.
Refundable Advance
The Association received a donor contribution for the construction of an athletic facility. Any
portion of the contribution that is remaining is to be returned to the donor if enough funds are not
raised to construct the facility. As of June 30, 2015, the Association has not raised the total funds
needed for the construction. Construction has not started on the facility. Therefore, contributions
received as of June 30, 2015, totaling $250,000 are shown as refundable advance on the statement
of financial position.
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.
Subsequent Events
The Association has evaluated subsequent events (events occurring after June 30, 2015) through
September 18, 2015, which is the date the financial statements were available to be issued. There
were no subsequent events during the period that require disclosure.
Page 7
UNCW STUDENT AID ASSOCIATION, INC.
Notes to Financial Statements
NOTE 1 - NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
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.
NOTE 2 - CASH AND CASH EQUIVALENTS
The Association had the following cash and cash equivalents available for operations at June 30,
2015.
Cash on deposit with State Treasurer
Other funds
$
766,595
1,640
$
768,235
The cash on deposit with the State Treasurer is pooled with State agencies and similar institutions in
the State Treasurer's short-term investment fund. 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. Any cash not invested by the fund is either covered by federal depository insurance
or, pursuant to 20 NCAC 7, is collateralized to secure all deposits in excess of the federal
depository insurance coverage.
NOTE 3 - PLEDGES AND UNCONDITIONAL PROMISES
Pledges and unconditional promises to give are recorded at fair market value. Contributions
scheduled to be received after one year are considered long term and have been discounted at
3.25%. For the year ended June 30, 2015, scheduled contributions in the form of pledges and
unconditional promises to give consisted of the following:
2016
2017
2018
$
277,574
93,227
1,871
Total scheduled contributions - gross
372,672
Less present value discount on long term contributions
Less allowances for uncollectible accounts and discounts
(8,867)
(18,192)
Net contributions receivable
Less: current
345,613
(173,496)
Non-current
$
Page 8
172,117
UNCW STUDENT AID ASSOCIATION, INC.
Notes to Financial Statements
NOTE 4 - CASH SURRENDER VALUE OF LIFE INSURANCE
The Association has an agreement with The Foundation of the University of North Carolina at
Wilmington, Inc. in regards to a life insurance policy on one of its contributors. In exchange for
paying half of the $19,452 annual premium, the Association will receive an equal share of the cash
surrender value if the policy is terminated, or upon the death of the insured an equal share of the
death benefit. As of June 30, 2015, the Association’s share of the cash surrender value was
$79,939. Premiums paid for the year ended June 30, 2015 were $9,725.
NOTE 5 - TEMPORARILY RESTRICTED NET ASSETS
Temporarily restricted net assets are available for University athletic scholarships and various other
support programs provided by the Association. For the year ended June 30, 2015, temporarily
restricted net assets available for use totaled $653,354.
NOTE 6 - RELATED PARTY TRANSACTIONS
As described in Note 1, The University of North Carolina at Wilmington is the sole beneficiary of
the Association. For the year ended June 30, 2015, contributions to the University totaled
$1,080,944.
Contributions to the University include the activities from multi-year sponsorship agreements that
the Association entered into with third parties. The agreements provide for benefits to the sponsors
which are provided by the University. When the Association receives payments from a sponsor the
contribution is recognized by the University and designated for athletic facility improvements.
At June 30, 2015, outstanding sponsorship agreements consist of the following:
2016
2017
2018
2019
2020 and Thereafter
$
105,000
15,000
15,000
15,000
30,000
Total
$
180,000
The Association advanced money to the University relating to unearned income described in Note 1.
If the Association was required to repay any of that unearned income, the Association would be
refunded the advances made to the University. The balance of money advanced to the University is
shown as due from the University on the statement of financial position, and the balance of
advances as of June 30, 2015 totaled $100,000.
Page 9
UNCW STUDENT AID ASSOCIATION, INC.
Notes to Financial Statements
NOTE 7 - FUNCTIONAL EXPENSES
Expenses and their functional classifications for the year ended June 30, 2015 are as follows:
Contributions
to UNCW
Athletics
Professional services
Supplies and materials
Donated services
Travel
Communications
Printing and binding
Current services
Fixed charges
Prizes and awards
UNCW scholarship support
UNCW other support
Total expenses
Fundraising
Management
and General
647,922
433,022
$
27,861
53,231
6,687
4,715
10,120
59,129
3,000
-
$
18,574
13,308
164,028
743
1,179
1,124
6,570
-
$
$ 1,080,944
$
164,743
$
205,526
$ 1,451,213
$
Total
46,435
66,539
164,028
7,430
5,894
11,244
65,699
3,000
647,922
433,022
NOTE 8 - DONATED PROPERTY
Donated property that is received but not sold during the fiscal year is reflected as support in the
statements of activities and changes in net assets at its fair value at the date of receipt. The fair
value is obtained from University faculty, staff, and others who have expertise in the field of the
property being donated. All donated property is subsequently transferred to the University for use
in its operations or sold to bidders at events with proceeds remaining within the Association. Any
donated property received and sold during the fiscal year is recorded as a contribution at the value
received for the sold property.
NOTE 9 - DONATED SERVICES
Higher level positions, for which the Association would otherwise be required to pay in order to
maintain the quality of its programs, have been provided to the Association by the University of
North Carolina at Wilmington. These amounts were included in the statements of activities and
changes in net assets as both a contribution and an expense. Donated services for the year ended
June 30, 2015 totaled $164,028.
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 do not meet the criteria noted above.
Page 10
UNCW STUDENT AID ASSOCIATION, INC.
Time and Costs for the Audit
Year Ended June 30, 2015
The UNCW Student Aid Association, Inc.'s audit was conducted in approximately 30 hours at a
total cost of $5,000.