CONSOLIDATED FINANCIAL STATEMENTS AND
INDEPENDENT AUDITOR’S REPORT
Florence Crittenton Home and Services and
Florence Crittenton Home and Services Foundation
June 30, 2014 and 2013
Florence Crittenton Home and Services and
Florence Crittenton Home and Services Foundation
June 30, 2014 and 2013
TABLE OF CONTENTS
INDEPENDENT AUDITOR’S REPORT ................................................................................................................ 1-2
FINANCIAL STATEMENTS:
Consolidated Statements of Financial Position ........................................................................................... 3
Consolidated Statements of Activities and Changes in Net Assets ........................................................ 4-5
Consolidated Statements of Cash Flows ..................................................................................................... 6
Notes to the Consolidated Financial Statements .................................................................................... 7-15
SUPPLEMENTAL INFORMATION:
Consolidating Statements of Financial Position .................................................................................... 16-17
Consolidating Statements of Activities and Changes in Net Assets...................................................... 18-21
Consolidated Statements of Functional Expense................................................................................... 22-23
Wipfli LLP
910 North Last Chance Gulch
Helena, MT 59601
406.442.5520
fax 406.443.1017
www.wipfli.com
INDEPENDENT AUDITOR’S REPORT
Board of Trustees
Florence Crittenton Home and Services
Helena, Montana
Report on the Consolidated Financial Statements
We have audited the accompanying consolidated financial statements of Florence Crittenton Home and
Services (the Home) and Florence Crittenton Home and Services Foundation (the Foundation), which
comprise the consolidated statement of financial position as of June 30, 2014, and the related consolidated
statements of activities and changes in net assets, and cash flows for the year then ended, and the related
notes to the financial statements.
The consolidated financial statements of Florence Crittenton Home and Services and Florence Crittenton
Home and Services Foundation as of June 30, 2013 were audited by Galusha, Higgins & Galusha, PC which
combined its practice with Wipfli LLP as of December 31, 2014 whose report dated March 11, 2014,
expressed an unmodified opinion on those statements.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated 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 consolidated 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 consolidated 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 consolidated 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 consolidated 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 consolidated 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 consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
-1-
Opinion
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects,
the financial position of Florence Crittenton Home and Services and Florence Crittenton Home and Services
Foundation as of June 30, 2014 and 2013, and changes in their net assets, and cash flows for the years then
ended in accordance with accounting principles generally accepted in the United States of America.
Other Matter
Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements as a
whole. The supplemental information is presented for purposes of additional analysis and is not a required
part of the consolidated 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
consolidated financial statements. The information has been subjected to the auditing procedures applied in
the audit of the consolidated financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the
consolidated financial statements or to the consolidated 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 consolidated financial
statements as a whole.
Wipfli LLP
Helena, Montana
March 30, 2015
-2-
Florence Crittenton Home and Services and
Florence Crittenton Home and Services Foundation
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of June 30,
ASSETS
2014
CURRENT ASSETS
Cash and cash equivalents
Prepaid expenses
Accounts receivable, net
Current grants receivable, net
Current pledges receivable
Total current assets
$
Property and equipment, net
OTHER ASSETS
Investments
Cash surrender value of life insurance
Total other assets
TOTAL ASSETS
258,778
8,742
36,970
57,344
1,250
363,084
2013
$
90,992
8,369
111,763
87,332
7,400
305,856
880,595
919,489
149,302
56,330
205,632
$ 1,449,311
$
256,594
44,585
301,179
1,526,524
$
$
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable
Accrued payroll taxes
Accrued leave payable
Accrued wages payable
Accrued payroll expense
Refundable advance
Planned gift liability
Total current liabilities
OTHER LIABILITIES
Loan payable
Total other liabilities
TOTAL LIABILITIES
NET ASSETS
Unrestricted
Temporarily restricted
Permanently restricted
Total net assets
TOTAL LIABILITIES AND NET ASSETS
10,193
4,985
40,353
18,089
1,429
2,053
514
77,616
369,000
369,000
446,616
369,000
369,000
480,277
668,493
245,753
88,449
1,002,695
$ 1,449,311
644,955
312,843
88,449
1,046,247
1,526,524
The accompanying notes are an integral part of these financial statements.
-3-
24,508
20,082
41,999
24,222
466
111,277
$
Florence Crittenton Home and Services and
Florence Crittenton Home and Services Foundation
CONSOLIDATED STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
for the year ended June 30, 2014
SUPPORT AND REVENUE
Service fees, net of bad debts
Agency contracts
Contributions
Grants
In-kind contributions
Special events
Interest and dividend income
Other income
Change in value of split interest agreements
and cash surrender values
Realized and unrealized gains
on investments
Net assets released from restriction
Total support and revenue
Unrestricted
Temporarily
Restricted
Permanently
Restricted
$
$
$
11,695
EXPENSES
Program services
Management and general
Fundraising
Total expenses
Change in net assets
Net assets at beginning of year
Net assets at end of year
491,106
374,825
242,542
61,998
250,242
157,408
6,577
87,968
$
90,383
387
-
-
-
Totals
$
491,106
374,825
332,925
61,998
250,242
157,408
6,964
87,968
-
11,695
7,384
179,210
1,870,955
21,350
(179,210)
(67,090)
-
28,734
1,803,865
1,257,770
523,829
65,818
1,847,417
23,538
(67,090)
-
1,257,770
523,829
65,818
1,847,417
(43,552)
644,955
668,493
$
312,843
245,753
$
88,449
88,449
The accompanying notes are an integral part of these financial statements.
-4-
1,046,247
$ 1,002,695
Florence Crittenton Home and Services and
Florence Crittenton Home and Services Foundation
CONSOLIDATED STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
for the year ended June 30, 2013
Unrestricted
SUPPORT AND REVENUE
Service fees, net of bad debts
$
589,241
Agency contracts
595,601
Contributions
207,402
Grants
25,611
In-kind contributions
202,006
Special events
173,789
Interest and dividend income
6,512
Other income
19,729
Change in value of split interest agreements
and cash surrender values
2,639
Realized and unrealized gains
on investments
13,854
Loss on asset disposal
(1,863)
Net assets released from restriction
322,924
Total support and revenue
2,157,445
EXPENSES
Program services
Program services - uncollectible pledges
Management and general
Fundraising
Total expenses
Change in net assets
Net assets at beginning of year
Net assets at end of year
Temporarily
Restricted
Permanently
Restricted
$
$
729,593
644,955
-
-
1,525,300
209,688
455,389
51,706
2,242,083
(84,638)
$
34,750
3,150
-
$
-
$
589,241
595,601
242,152
25,611
202,006
173,789
9,662
19,729
2,639
11,846
(322,924)
(273,178)
-
25,700
(1,863)
1,884,267
(273,178)
-
1,525,300
209,688
455,389
51,706
2,242,083
(357,816)
586,021
312,843
$
88,449
88,449
The accompanying notes are an integral part of these financial statements.
-5-
Totals
1,404,063
$ 1,046,247
Florence Crittenton Home and Services and
Florence Crittenton Home and Services Foundation
CONSOLIDATED STATEMENTS OF CASH FLOWS
for the year ended June 30,
2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Change in net assets
Adjustments to reconcile change in net assets to net
cash used by operating activities:
Depreciation
Change in provision for uncollectible accounts
Realized and unrealized gains
Loss on asset disposal
(Increase) decrease in operating assets and liabilities
Prepaid expenses
Accounts receivable
Pledges receivable
Grants receivable
Cash surrender value of life insurance
Increase (decrease) in liabilities
Accounts payable
Accruals
Refundable advances
Charitable gift annuity liability
Net cash from operating activites
$
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of investments
Payments for purchase of investments
Purchase of property and equipment
Net cash from investing activities
Net change in cash and cash equivalents
Beginning cash and cash equivalents
Ending cash and cash equivalents
$
(43,552)
$ (357,816)
68,445
38,468
(28,734)
-
67,688
3,695
(26,576)
1,863
(373)
36,325
6,150
29,988
(11,745)
(2,107)
200,739
1,150
5,385
(2,692)
(14,315)
(21,447)
2,053
48
61,311
9,180
2,150
(9,956)
55
(107,242)
146,909
(10,883)
(29,551)
106,475
61,521
(20,339)
(85,308)
(44,126)
167,786
(151,368)
90,992
258,778
The accompanying notes are an integral part of these financial statements.
-6-
2013
242,360
$ 90,992
Florence Crittenton Home and Services and
Florence Crittenton Home and Services Foundation
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2014 and 2013
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1. Organization - Florence Crittenton Home and Services (Home) operates the only licensed
maternity home in Montana with comprehensive services for pregnant adolescents and young
mothers with infants. The Florence Crittenton Home and Services Foundation (Foundation) was
formed in July 1987, for the purpose of raising funds for future projects and acquiring a building
for the Home. The By-Laws of the Home and Foundation were revised at the end of Fiscal Year
2007 to reflect a combined board of the Home and Foundation. Therefore, according to the ByLaws, each Director of the Foundation will be a member of the Board of Trustees of the Florence
Crittenton Home and Services, Inc., of Helena.
2. Basis of Accounting – The Home and Foundation prepares its consolidated financial statements
in accordance with accounting principles generally accepted in the United States (GAAP), and
accordingly reflect all significant receivables, payables, and other liabilities.
3. Basis for Consolidation - The Florence Crittenton Home and Services consolidates all of the
accounts of the Florence Crittenton Home and Services Foundation. All intercompany
transactions are eliminated in consolidation.
4. Use of Estimates - The preparation of financial statements in conformity with GAAP 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.
Estimates also affect the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
5. Basis of Presentation - Financial statement presentation follows the recommendations of
Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) “Notfor-Profit Entities - Presentation of Financial Statements.” Under this ASC, the Home and
Foundation is required to report information regarding its financial position and activities
according to three classes of net assets: unrestricted, temporarily restricted, and permanently
restricted net assets.

Unrestricted net assets - include assets which are available for general operations of the Home
and Foundation.

Temporarily restricted net assets - include gifts for which donor imposed restrictions have not
been met and pledges receivable for which the ultimate purpose of the proceeds is not
permanently restricted.

Permanently restricted net assets - include gifts, trusts, and pledges which require by donor
restriction that the corpus be invested in perpetuity and only the income be made available for
program operations in accordance with donor restrictions.
6. Cash and Cash Equivalents - For purposes of the statement of cash flows, cash and cash
equivalents include all checking, savings, and certificates of deposits with maturity of three
months or less.
Continued
-7-
Florence Crittenton Home and Services and
Florence Crittenton Home and Services Foundation
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2014 and 2013
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
7. Accounts Receivable - The Home provides an allowance for doubtful accounts when the
collectability of the accounts are determined to be impaired. The Home has analyzed accounts
receivable at June 30, 2014 and 2013 and determined that an allowance of five percent was
necessary. Bad debt (recoveries) expense of $(5,742) and $52,736 is reflected as an offset to
service fees in the year ended June 30, 2014 and 2013, respectively.
8. Net Treatment Fee Revenue – The Home has agreements with third-party payors that provide for
reimbursement to the Home at amounts different from its established rates. Net treatment fee
revenue is reported at the estimated net realizable amounts from patients, third-party payors, and
others for services rendered. Services rendered to Medicaid patients are reimbursed at scheduled
rates. Services rendered to insurance subscribers are reimbursed at billed charges less any
contractual discounts and patient responsibility.
9. Donated Materials - Donated materials are reflected as contributions at their estimated value at
date of receipt and are recorded as in-kind expenses for Home operations for fiscal year 2014
and 2013.
10. Investment Securities - Investments in marketable securities with readily determinable fair values
and all investments in debt securities are valued at their fair values in the statement of financial
position. Unrealized gains and losses are included in the change in net assets.
11. Planned Gift Liabilities - Various planned giving instruments commit the Foundation to future
payments to designated beneficiaries as part of the contribution. The following summarizes the
types of planned giving instruments and associated liabilities carried by the Foundation:
Charitable and Deferred Gift Annuities: Charitable gift annuities require annual payments at a
fixed rate specified in the contract to a designated beneficiary over the beneficiary’s lifetime,
with payments commencing upon contribution. The payment is based on the value of the assets
at the date of donation. Deferred gift annuities are similar but delay the start of annual payments
to a future date. The financial statements include a liability representing the present value of the
payments required by those contracts over the beneficiaries’ expected lives as determined by
mortality tables.
12. Property and Equipment – The Home and Foundation capitalize all purchased property and
equipment over $1,500 and records property and equipment at cost. Donated property and
equipment is recorded at the estimated value on the date it was received. Depreciation expense
reflected in the accompanying consolidated financial statements was computed using the
straight-line method over the following useful lives:
Buildings
Land Improvements
Furniture, fixtures, and equipment
Vehicles
39 years
15 years
5-10 years
3-10 years
Continued
-8-
Florence Crittenton Home and Services and
Florence Crittenton Home and Services Foundation
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2014 and 2013
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
13. Recognition of Donor Restrictions – The Home and Foundation report gifts of cash and other
assets as 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 statement of activities as net assets released from
restrictions. Restrictions met within the same fiscal period are reported as unrestricted.
14. Advertising - Advertising and promotional costs are expensed as incurred.
15. Income Tax Status - The Home and Foundation were granted tax-exempt status under Section
501(c)3 of the Internal Revenue Code and is exempt from federal income taxes on related
income pursuant to Section 501(a) of the Internal Revenue Code except to the extent of unrelated
business taxable income as defined under IRC Sections 511 through 515. They did not incur
unrelated business income tax for the year ended June 30, 2014. Accordingly, no provision has
been made for federal income tax in the accompanying financial statements. The Home and
Foundation’s federal form 990s for the 2010-2014 tax years is subject to examination by the IRS,
generally, for three years after they were filed.
16. Reclassifications – Certain items from 2013 have been changed to reflect the presentation the
2014 categories and grouping without effect on previously reported net assets.
17. Subsequent Events - Management has performed an analysis of the activities and transactions
subsequent to June 30, 2014 to determine the need for any adjustment to and/or disclosures
within the financial statements for the year ended June 30, 2014. Management has performed
this analysis through March 30, 2015, which is the date the consolidated financial statements
were available to be issued.
NOTE B – CONCENTRATION OF CREDIT RISK ARISING FROM CASH DEPOSITS IN EXCESS
OF INSURED LIMITS
The Home and Foundation maintain cash balances at several financial institutions located in
Helena, Montana. The Home and Foundation’s non-interest bearing accounts are subject to
unlimited coverage by the FDIC. From time to time, certain bank accounts that are subject to
FDIC coverage exceeded their insured limits. At June 30, 2014 and 2013, the deposits did not
exceed the insured amounts.
Continued
-9-
Florence Crittenton Home and Services and
Florence Crittenton Home and Services Foundation
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2014 and 2013
NOTE C – INVESTMENTS
At June 30, 2014 and 2013, investments for the Foundation are as follows:
2013
2014
Mutual funds
$
Common stock
$
Cost
115,673
115,673
Market
147,988
1,314
$
149,302
$
$
$
Cost
223,837
2,744
226,581
Market
249,722
6,872
$
256,594
$
Gross unrealized gains for the years ended June 30, 2014 and 2013 were $6,012 and $20,680,
respectively. Gross realized gains for the years ended June 30, 2014 and 2013 were $22,722 and
$5,020, respectively.
NOTE D – FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS
The following methods and assumptions were used by the Foundation in estimating its fair value
disclosures for the financial instruments:
 Common stock: the fair value of investments are in common stock based on quoted marketprices for those investments.

Mutual funds: valued at the net asset value (NAV). The NAV is based on the value of the
underlying assets owned by the fund, minus its liabilities, and then divided by the number of
shares held by the organization at year end. The NAV is quoted in an active market.
The following are the Organizations assets at fair value as of June 30, 2014 and 2013:
Level 1
Level 2
Total
2014
Mutual funds
$
147,988
$
$
147,988
Common stock
1,314
1,314
$
149,302
$
$
149,302
2013
Mutual funds
Common stock
$
$
249,722
6,872
256,594
$
$
-
$
$
249,722
6,872
256,594
Continued
- 10 -
Florence Crittenton Home and Services and
Florence Crittenton Home and Services Foundation
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2014 and 2013
NOTE E – PLEDGES RECEIVABLE NET OF DISCOUNTS
The Foundation pledges receivable (unconditional promises to give) consist of the following at
June 30:
2014
2013
Restricted for Legacy of Love program
$
1,250
$ 5,000
Miscellaneous pledge
2,400
Net unconditional promises to give
$
1,250
$ 7,400
All pledges at June 30, 2014 and 2013 were due in less than one year. Management determined
that it was not necessary to have an allowance for uncollectible pledges.
For fiscal year 2013, the Legacy of Love pledge has been determined as uncollectible for the
remaining amount of the pledge (less a $5,000 payment received in October 2013) based on
communication from the donor that the individual will not be able to satisfy this pledge.
NOTE F – PROPERTY AND EQUIPMENT
Property and equipment consists of the following:
2014
167,943
1,758
91,395
1,571,620
62,561
1,895,277
Furniture and equipment
Software
Automobiles
Buildings
Land
$
Accumulated depreciation
(1,014,682)
$
880,595
$
$
2013
167,943
1,757
91,395
1,542,070
62,561
1,865,726
(946,237)
919,489
NOTE G - LOAN PAYABLE
On April 4, 1994, Lewis and Clark County received a grant of $369,000 under the Montana
Home Investment Partnerships Program (HOME) from the State of Montana Department of
Commerce. The County then loaned these funds to Florence Crittenton Home and Services for
the construction of the new facility on Harris Street in Helena, Montana. The loan will be
forgiven at the end of 20 years from the final approval of the project, which was given October
1995, provided Florence Crittenton Home and Services adheres to all covenants. These funds
have been recorded as a loan payable until the loan is forgiven at which time the funds will be
recognized as income.
Continued
- 11 -
Florence Crittenton Home and Services and
Florence Crittenton Home and Services Foundation
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2014 and 2013
NOTE H - PLANNED GIFT LIABILITIES
The liability for each type of planned gift changes each year with receipt of new gifts, payments
under contracts, change in trust asset values, and the change in the present value of required
payments to beneficiaries. The present value of the future payments over the beneficiaries’
estimated remaining lives was calculated using the original discount rates at the date of the gift
and applicable mortality tables.
The following summarizes the change in planned gift liabilities for the years ended June 30:
2014
Estimated present value of liability at July 1
Change in estimated present value from revaluation
Estimated present value of liability at June 30
$
$
2013
466
48
514
$
$
411
55
466
NOTE I – RESTRICTION ON NET ASSETS
Temporarily restricted net assets result from contributions whose use is restricted for the purpose
intended by the donor. Temporarily restricted net assets consist of the following:
Housing
Outreach
ILT coordinator/activities
Legacy of Love
Other temporarily restricted funds
$
$
2014
63,250
3,000
17,932
133,633
27,938
245,753
$
$
2013
35,750
223,613
53,480
312,843
Assets released from restriction due to fulfillment of donor-imposed restrictions in fiscal 2014
and 2013 include:
2014
2013
Housing
$
32,500
$
Outreach
49,500
ILT coordinator/activities
12,068
Assets for Life
16,429
Legacy of Love and other
134,642
256,995
$ 179,210
$
322,924
Continued
- 12 -
Florence Crittenton Home and Services and
Florence Crittenton Home and Services Foundation
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2014 and 2013
NOTE I – RESTRICTION ON NET ASSETS, continued
Permanently restricted net assets result from contributions whose use is restricted by donorimposed stipulations that neither expire by the passage of time nor can be fulfilled by actions of
the organization.
Permanently restricted net assets for the Foundation were $88,449 as of June 30, 2014 and 2013.
The earnings on these funds are to be used for the operations of the organization.
NOTE J - ENDOWMENT NET ASSETS
As required by generally accepted accounting principles, net assets associated with endowment
funds, including funds designated by the Board to function as endowments, are classified and
reported based on the existence or absence of donor-imposed restrictions.
The Foundation has interpreted the Montana Uniform Prudent Management of Institutional
Funds Act (“MUPMIFA”) as requiring the preservation of the fair value of the original gift as of
the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the
contrary. As a result of this interpretation, the Foundation classifies as permanently restricted
net assets (a) the original value of gifts donated to the permanent endowment, (b) the original
value of subsequent gifts to the permanent endowment, and (c) any accumulations to the
permanent endowment made in accordance with the direction of the applicable donor gift
instrument at the time the accumulation is added to the fund.
The remaining portion of the donor-restricted endowment fund that is not classified in
permanently restricted net assets is classified as temporarily restricted net assets and are
appropriated for expenditure by the Home in a manner consistent with the standard of prudence
prescribed by MUPMIFA.
In accordance with MUPMIFA, the Home and Foundation considers the following factors in
making a determination to appropriate or accumulate donor-restricted endowment funds:
1.
2.
3.
4.
5.
6.
7.
The duration and preservation of the fund,
The purpose of the Home and Foundation and the donor-restricted endowment fund,
General economic conditions,
The possible effect of inflation and deflation,
The expected total return from income and the appreciation of investments,
Other resources of Home and Foundation, and
The investment policies of Home and Foundation.
Continued
- 13 -
Florence Crittenton Home and Services and
Florence Crittenton Home and Services Foundation
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2014 and 2013
NOTE J - ENDOWMENT NET ASSETS, continued
Endowment net asset composition by type of fund is as follows:
Endowment net assets,
June 30, 2012
Unrestricted
Temporarily
Restricted
Permanently
Restricted
$
$
$
Investment return:
Investment income
Net appreciation
Total investment return
-
37,484
88,449
Total
$
125,933
-
3,150
11,846
14,996
-
3,150
11,846
14,996
-
Appropriation for expenditure
Endowment net assets,
June 30, 2013
-
-
-
-
52,480
88,449
140,929
Investment return:
Investment income
Net appreciation
Total investment return
-
387
21,350
21,737
-
387
21,350
21,737
-
(50,725)
-
(50,725)
Appropriation for expenditure
Endowment net assets,
June 30, 2014
$
-
$
23,492
$
88,449
$
111,941
Funds with Deficiencies
From time to time, the fair value of assets associated with individual donor-restricted endowment
funds may fall below the level that the donor or MUPMIFA requires the Home and Foundation
to retain as a fund of perpetual duration.
Return Objectives and Risk Parameters
The Home and Foundation have adopted investment and spending policies for endowment assets
that attempt to provide a predictable stream of funding to programs supported by its endowment
while seeking to maintain the purchasing power of the endowment assets. Endowment assets
include those assets of donor-restricted funds that the Home and Foundation must hold in
perpetuity or for a donor-specified period(s) as well as board-designated funds.
Continued
- 14 -
Florence Crittenton Home and Services and
Florence Crittenton Home and Services Foundation
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2014 and 2013
NOTE J - ENDOWMENT NET ASSETS, continued
Under this policy, as approved by the Board of Trustees, the endowment assets are invested in a
manner that is intended to preserve endowment capital, and to provide a minimum annual target
rate of return of at least inflation, plus the Foundation’s spending policy, plus a real rate of return
net of fees. The Home and Foundation expects the endowment funds, over time, to provide a
reasonable current rate of return.
Strategies Employed for Achieving Objectives
To satisfy its long-term rate-of-return objectives, the Home and Foundation relies on a total return
strategy in which investment returns are achieved through both capital appreciation (realized and
unrealized gains) and current yield (interest and dividends). The Home and Foundation target a
diversified asset allocation including cash equivalents, fixed income, and equity securities to
achieve its long-term return objectives within prudent risk constraints.
NOTE K - RETIREMENT PLAN
The Home established a 403(b) retirement plan for its employees. Employees who are twenty one
years of age may contribute beginning the sixth month after their employment commences. The
Home will match up to 3% of eligible employee salary deferrals to the Plan. Employer matching
contributions are 100% vested upon entering the Plan. Retirement expense was approximately
$7,104 and $10,607 at June 30, 2014 and 2013, respectively.
NOTE L - RELATED PARTY TRANSACTIONS
During 2014 and 2013, the Home incurred rent to the Foundation for the use of the building in the
amount of $75,000, which was forgiven in full as an in-kind donation from the Foundation in both
2014 and 2013. The in-kind amount is the estimated fair value of rent income and expense that
would have been received by the Foundation and paid by the Home.
During 2014 and 2013, the Foundation transferred funds to the Home for its Legacy of Love
program, in the amounts of $33,539 and $49,307, respectively. As of June 30, 2014, the
Foundation owed the Florence Crittenton Home $17,760 and $2,123, respectively, of the amounts
transferred.
All intercompany transactions have been eliminated in the consolidated financial statements.
NOTE M - CONCENTRATIONS OF CREDIT RISK
The Home has several contracts with the Montana State Department of Public Health and
Human Services Child and Family Services Division. The contract terms are generally annual or
bi-annual. The revenue generated by the main contract comprised 7% and 9% of the total
revenues and support of the Home and Foundation for the years ending June 30, 2014 and 2013,
respectively. The related receivable amounts for the main contract were 30% and 13% of the
total accounts receivable for the years ended June 30, 2014 and 2013, respectively. The contract
may be terminated at any time upon the written mutual agreement of both parties.
Concluded
- 15 -
SUPPLEMENTAL INFORMATION
Florence Crittenton Home and Services and
Florence Crittenton Home and Services Foundation
June 30, 2014 and 2013
Florence Crittenton Home and Services and
Florence Crittenton Home and Services Foundation
CONSOLIDATING STATEMENTS OF FINANCIAL POSITION
As of June 30, 2014
See Independent Auditor's Report
ASSETS
CONSOLIDATING INFORMATION
HOME
FOUNDATION ELIMINATIONS
CURRENT ASSETS
Cash and cash equivalents
Prepaid expenses
Accounts receivable, net
Current grants receivable, net
Current pledges receivable
Total current assets
$ 118,551
8,742
54,711
57,344
239,348
Property and equipment, net
OTHER ASSETS
Investments
Cash surrender value of life insurance
Total other assets
TOTAL ASSETS
$
140,227
6,222
1,250
147,699
161,088
719,507
56,330
56,330
$ 456,766
149,302
149,302
1,016,508
$
$
(23,963)
(23,963)
2014
TOTAL
$ 258,778
8,742
36,970
57,344
1,250
363,084
-
$
880,595
(23,963)
149,302
56,330
205,632
$ 1,449,311
(23,963)
(23,963)
$
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable
Accrued payroll taxes
Accrued leave payable
Accrued wages payable
Accrued payroll expense
Refundable advance
Planned gift liability
Total current liabilities
OTHER LIABILITIES
Loan payable
Total other liabilities
TOTAL LIABILITIES
NET ASSETS
Unrestricted
Temporarily restricted
Permanently restricted
Total net assets
TOTAL LIABILITIES AND NET ASSETS
$
16,396
4,985
40,353
18,089
1,429
2,053
83,305
$
17,760
514
18,274
$
10,193
4,985
40,353
18,089
1,429
2,053
514
77,616
83,305
369,000
369,000
387,274
(23,963)
369,000
369,000
446,616
343,078
30,383
373,461
$ 456,766
325,415
215,370
88,449
629,234
1,016,508
(23,963)
668,493
245,753
88,449
1,002,695
$ 1,449,311
- 16 -
$
$
Florence Crittenton Home and Services and
Florence Crittenton Home and Services Foundation
CONSOLIDATING STATEMENTS OF FINANCIAL POSITION
As of June 30, 2013
See Independent Auditor's Report
ASSETS
CONSOLIDATING INFORMATION
HOME
FOUNDATION ELIMINATIONS
CURRENT ASSETS
Cash and cash equivalents
Prepaid expenses
Accounts receivable, net
Current grants receivable, net
Current pledges receivable
Total current assets
Property and equipment, net
OTHER ASSETS
Investments
Cash surrender value of life insurance
Total other assets
TOTAL ASSETS
$ 24,898
8,369
113,867
87,332
1,150
235,616
$
66,094
11,189
6,250
83,533
166,650
752,839
44,585
44,585
$ 446,851
256,594
256,594
1,092,966
$
$
(13,293)
(13,293)
2013
TOTAL
$
-
$
90,992
8,369
111,763
87,332
7,400
305,856
919,489
(13,293)
256,594
44,585
301,179
$ 1,526,524
(13,293)
(13,293)
$
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable
Accrued payroll taxes
Accrued leave payable
Accrued wages payable
Planned gift liability
Total current liabilities
$ 35,678
20,082
41,999
24,222
121,981
OTHER LIABILITIES
Loan payable
Total other liabilities
TOTAL LIABILITIES
121,981
369,000
369,000
371,589
(13,293)
369,000
369,000
480,277
NET ASSETS
Unrestricted
288,120
Temporarily restricted
36,750
Permanently restricted
Total net assets
324,870
TOTAL LIABILITIES AND NET ASSETS $ 446,851
356,835
276,093
88,449
721,377
1,092,966
(13,293)
644,955
312,843
88,449
1,046,247
$ 1,526,524
- 17 -
$
$
2,123
466
2,589
$
$
24,508
20,082
41,999
24,222
466
111,277
Florence Crittenton Home and Services and
Florence Crittenton Home and Services Foundation
CONSOLIDATING STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
for the year ended June 30, 2014
See Independent Auditor's Report
UNRESTRICTED
SUPPORT AND REVENUE
Service fees, net of bad debts
Agency contracts
Contributions
Legacy of Love receipts
Foundation contribution
Grants
Rental income
In-kind contributions
Special events
Interest and dividend income
Other income
Change in value of split interest agreements
and cash surrender values
Realized and unrealized gains
on investments
Net assets released from restriction
Total support and revenue
$
$
11,745
EXPENSES
Program services
Management and general
Fundraising
Total expenses
Change in net assets
Net assets at beginning of year
Net assets at end of year
491,106
374,825
235,918
33,539
115,400
61,998
325,242
157,408
109
87,968
HOME
TEMPORARILY
PERMANENTLY
RESTRICTED
RESTRICTED
$
30,383
-
$
-
-
TOTAL
$
491,106
374,825
266,301
33,539
115,400
61,998
325,242
157,408
109
87,968
-
11,745
36,750
1,932,008
(36,750)
(6,367)
-
1,925,641
1,257,770
553,462
65,818
1,877,050
54,958
(6,367)
-
1,257,770
553,462
65,818
1,877,050
48,591
288,120
343,078
- 18 -
$
36,750
30,383
$
-
$
324,870
373,461
Florence Crittenton Home and Services and
Florence Crittenton Home and Services Foundation
CONSOLIDATING STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
for the year ended June 30, 2014
See Independent Auditor's Report
UNRESTRICTED
- 19 -
SUPPORT AND REVENUE
Service fees, net of bad debts
Agency contracts
Contributions
Legacy of Love receipts
Foundation contribution
Grants
Rental income
In-kind contributions
Special events
Interest and dividend income
Other income
Change in value of split interest agreements
and cash surrender values
Realized and unrealized gains
on investments
Net assets released from restriction
Total support and revenue
$
$
(50)
EXPENSES
Program services
Management and general
Fundraising
Total expenses
Change in net assets
Net assets at beginning of year
Net assets at end of year
6,624
75,000
6,692
-
FOUNDATION
TEMPORARILY
PERMANENTLY
RESTRICTED
RESTRICTED
$
60,000
387
-
$
-
-
TOTAL
$
-
66,624
75,000
7,079
-
ELIMINATIONS
$
(50)
(33,539)
(115,400)
(75,000)
(75,000)
(224)
-
TOTAL
$
-
491,106
374,825
332,925
61,998
250,242
157,408
6,964
87,968
11,695
7,384
142,460
238,110
21,350
(142,460)
(60,723)
-
28,734
177,387
(299,163)
28,734
1,803,865
108,539
160,991
269,530
(31,420)
(60,723)
-
108,539
160,991
269,530
(92,143)
(108,539)
(190,624)
(299,163)
-
1,257,770
523,829
65,818
1,847,417
(43,552)
356,835
325,415
$
276,093
215,370
$
88,449
88,449
$
721,377
629,234
$
-
$
1,046,247
1,002,695
Florence Crittenton Home and Services and
Florence Crittenton Home and Services Foundation
CONSOLIDATING STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
for the year ended June 30, 2013
See Independent Auditor's Report
SUPPORT AND REVENUE
Service fees, net of bad debts
Agency contracts
Contributions
Legacy of Love receipts
Foundation contribution
Grants
Rental income
In-kind contributions
Special events
Interest and dividend income
Other income
Change in value of split interest agreements
and cash surrender values
Realized and unrealized gains
on investments
Gain (loss) on asset disposal
Net assets released from restriction
Total support and revenue
UNRESTRICTED
HOME
TEMPORARILY
PERMANENTLY
RESTRICTED
RESTRICTED
$
$
2,692
EXPENSES
Program services
Program services - uncollectible pledges
Management and general
Fundraising
Total expenses
Change in net assets
Net assets at beginning of year
Net assets at end of year
589,241
595,601
207,402
49,307
25,000
25,611
277,006
173,789
91
18,070
$
34,750
-
$
-
-
TOTAL
$
-
589,241
595,601
242,152
49,307
25,000
25,611
277,006
173,789
91
18,070
2,692
(1,863)
63,929
2,025,876
(63,929)
(29,179)
-
(1,863)
1,996,697
1,525,300
490,391
51,706
2,067,397
(41,521)
(29,179)
-
1,525,300
490,391
51,706
2,067,397
(70,700)
329,641
288,120
- 20 -
$
65,929
36,750
$
-
$
395,570
324,870
Florence Crittenton Home and Services and
Florence Crittenton Home and Services Foundation
CONSOLIDATING STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
for the year ended June 30, 2013
See Independent Auditor's Report
UNRESTRICTED
- 21 -
SUPPORT AND REVENUE
Service fees, net of bad debts
Agency contracts
Contributions
Legacy of Love receipts
Foundation contribution
Grants
Rental income
In-kind contributions
Special events
Interest and dividend income
Other income
Change in value of split interest agreements
and cash surrender values
Realized and unrealized gains
on investments
Gain (loss) on asset disposal
Net assets released from restriction
Total support and revenue
$
$
(53)
EXPENSES
Program services
Program services - uncollectible pledges
Management and general
Fundraising
Total expenses
Change in net assets
Net assets at beginning of year
Net assets at end of year
75,000
6,645
1,659
FOUNDATION
TEMPORARILY
PERMANENTLY
RESTRICTED
RESTRICTED
$
3,150
-
$
-
TOTAL
$
75,000
9,795
1,659
ELIMINATIONS
$
589,241
595,601
242,152
25,611
202,006
173,789
9,662
19,729
-
13,854
258,995
356,100
11,846
(258,995)
(243,999)
-
25,700
112,101
(224,531)
25,700
(1,863)
1,884,267
124,307
209,688
65,222
399,217
(43,117)
(243,999)
-
124,307
209,688
65,222
399,217
(287,116)
(124,307)
(100,224)
(224,531)
-
1,525,300
209,688
455,389
51,706
2,242,083
(357,816)
$
520,092
276,093
$
88,449
88,449
$
1,008,493
721,377
-
$
-
399,952
356,835
(53)
(49,307)
(25,000)
(75,000)
(75,000)
(224)
-
TOTAL
$
-
2,639
1,404,063
$ 1,046,247
Florence Crittenton Home and Services and
Florence Crittenton Home and Services Foundation
CONSOLIDATED STATEMENTS OF FUNCTIONAL EXPENSES
for the year ended June 30, 2014
See Independent Auditor's Report
Salaries and wages
Employee benefits
Payroll taxes
Total personnel expenses
PROGRAM
$ 716,011
34,834
87,056
837,901
Equipment
Professional services
Advertising and marketing
Scholarship
Legacy of Love
Occupancy
Printing
Postage
Maintenance
Depreciation
Board
Insurance
In-kind expenses
Dues and subscriptions
Education and training
Incentives, gifts, rewards
Other
Facilities rent
Meals
Supplies
Travel
Bank, investment and service fees
Total operating expenses
Eliminations
Total consolidated expenses
765
4,915
1,457
75,000
33,539
35,102
770
27
14,531
24,584
243,448
1,035
1,983
3,818
34,224
1,500
42,114
4,030
5,565
1
1,366,309
(108,539)
$ 1,257,770
MANAGEMENT
AND GENERAL
$
299,229
21,447
30,559
351,235
$
- 22 -
1,420
25,313
4,983
6,341
5,550
4,973
623
68,445
439
2,533
10,659
7,381
3,771
83
98,463
104,170
501
7,803
6,121
3,646
714,453
(190,624)
523,829
FUNDRAISING
$
31,910
90
2,966
34,966
596
133
7,284
2,644
$
8,286
7,264
84
4,561
65,818
65,818
TOTAL
$ 1,047,150
56,371
120,581
1,224,102
2,185
30,824
6,573
75,000
33,539
41,443
13,604
7,644
15,154
68,445
439
27,117
254,107
8,416
5,754
3,901
140,973
105,670
42,615
19,097
11,770
8,208
2,146,580
(299,163)
$ 1,847,417
Florence Crittenton Home and Services and
Florence Crittenton Home and Services Foundation
CONSOLIDATED STATEMENTS OF FUNCTIONAL EXPENSES
for the year ended June 30, 2013
See Independent Auditor's Report
Salaries and wages
Employee benefits
Payroll taxes
Total personnel expenses
PROGRAM
$ 941,226
52,695
99,115
1,093,036
Equipment
Professional services
Advertising and marketing
Scholarship
Legacy of Love
Occupancy
Printing
Postage
Maintenance
Depreciation
Board
Insurance
In-kind expenses
Dues and subscriptions
Education and training
Incentives, gifts, rewards
Other
Facilities rent
Meals
Supplies
Travel
Bank, investment and service fees
Write off of uncollectible pledges
Total operating expenses
Eliminations
Total consolidated expenses
103
10,136
10,385
75,000
49,307
42,143
2,825
448
12,450
24,077
187,101
275
16,565
4,131
25,514
2,747
42,578
29,799
17,037
3,950
209,688
1,859,295
(124,307)
$ 1,734,988
MANAGEMENT
AND GENERAL
$
228,384
18,126
25,822
272,332
FUNDRAISING
$
30,448
1,397
4,074
35,919
1,772
28,247
1,424
4,575
4,981
4,459
1,890
67,688
484
2,680
6,583
4,169
1,919
123
34,536
103,191
2,087
2,802
5,740
3,931
555,613
(100,224)
455,389
96
1,023
590
8,619
1,638
95
3,130
275
321
51,706
51,706
- 23 -
TOTAL
$ 1,200,058
72,218
129,011
1,401,287
1,875
38,479
12,832
75,000
49,307
47,308
16,425
6,545
14,340
67,688
484
26,757
193,684
4,539
18,484
4,254
63,180
105,938
44,665
32,601
23,052
8,202
209,688
2,466,614
(224,531)
2,242,083