HAPPINESS IS CAMPING, INC.
FINANCIAL STATEMENTS
Years Ended December 31, 2014 and 2013
HAPPINESS IS CAMPING, INC.
FINANCIAL STATEMENTS
Years Ended December 31, 2014 and 2013
TABLE OF CONTENTS
Page
INDEPENDENT AUDITOR’S REPORT
1
FINANCIAL STATEMENTS:
Statements of Financial Position
2
Statements of Activities
3
Statement of Functional Expenses for the Year Ended December 31, 2014
4
Statement of Functional Expenses for the Year Ended December 31, 2014
5
Statements of Cash Flows
6
Notes to Financial Statements
7 - 12
THOMAS G. RANDEL
CE RT IF IED P U BLI C A C CO UN T A NT
FOUR COUNTRY LANE
HAMBURG, NEW JERSEY 07 419
(973) 879-0086
E-MAIL: TRANDEL@EMBARQMAIL.COM
INDEPENDENT AUDITOR’S REPORT
To the Board of Trustees of Happiness is Camping, Inc.
I have audited the accompanying combined financial statements of Happiness is Camping, Inc. (a nonprofit
organization) and its affiliate, which comprise the combined statement of financial position as of December 31, 2014,
and the related combined statements of activities, functional expenses and cash flows for the year then ended, and the
related notes to the combined financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these combined 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
My responsibility is to express an opinion on these combined financial statements based on my audit. I conducted my
audit in accordance with auditing standards generally accepted in the United States of America. Those standards
require that I plan and perform the audit to obtain reasonable assurance about whether the combined financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the combined
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks
of material misstatement of the combined 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
combined 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, I 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 combined financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In my opinion, the combined financial statements referred to above present fairly, in all material respects, the financial
position of Happiness is Camping Inc. and its affiliate as of December 31, 2014, and the changes in their net assets
and their cash flows for the year then ended in accordance with accounting principles generally accepted in the United
States of America.
Thomas G. Randel
October 2, 2015
Hamburg, New Jersey
1
Happiness is Camping, Inc.
Statements of Financial Position
December 31, 2014 and 2013
New
Jersey
2013
New
York
$46,370
$17,076
$8,742
14,210
14,210
13,114
13,114
2,500
2,500
2,500
2,500
63,080
32,690
1,769,267
1,821,866
$1,832,347
$1,854,556
$69,562
$73,547
$73,547
994
994
New
Jersey
2014
New
York
Combined
Combined
ASSETS
CURRENT ASSETS
Cash & Cash Equivalents
$34,662
Prepaid Expenses
Deposits
Total Current Assets
51,372
$11,708
11,708
8,742
$25,818
41,432
Property & Equipment, net of
Accumulated Depreciation of $2,262,054
TOTAL ASSETS
1,769,267
$1,820,639
$11,708
1,821,866
$8,742
$1,863,298
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts Payable & Accrued Expenses
$69,562
Cash Overdraft
Other Current Liabilities
18,030
18,030
Current Portion of Long-term Debt
17,968
17,968
31,871
31,871
Notes Payable & Line-of-Credit
70,195
70,195
118,397
118,397
Total Current Liabilities
175,755
175,755
224,809
224,809
Mortgage Payable
218,905
218,905
224,641
224,641
NET ASSETS
Unrestricted Net Assets
TOTAL LIABILITIES AND NET ASSETS
1,425,979
11,708
1,437,687
1,405,105
8,743
1,413,848
$1,820,639
$11,708
$1,832,347
$1,854,555
$8,743
$1,863,298
See accompanying notes to financial statements and auditor's report
2
Happiness is Camping, Inc.
Statements of Activities
December 31, 2014 and 2013
New
Jersey
2014
New
York
Eliminations
Combined
New
Jersey
2013
New
York
Eliminations
Combined
SUPPORT & REVENUE
Outdoor Education & Group Camping
$488,858
$488,858
$343,802
$343,802
Camping - Program
640,000
640,000
640,000
640,000
Grant Income
416,412
222,500
312,900
$222,500
($416,412)
$250,500
($312,900)
250,500
Public Support - Individual
138,626
138,626
47,719
47,719
Public Support - Corporate
16,610
16,610
17,366
17,366
Fund Raising
41,641
41,641
Use of Contributed Facility
30,000
30,000
Contributed Services
TOTAL SUPPORT & REVENUE
24,800
1,570,070
449,377
(416,412)
57,598
57,598
30,000
24,800
24,800
1,603,035
1,379,100
1,401,045
1,385,221
30,000
24,800
345,585
(312,900)
1,411,785
EXPENSES
Program Services
1,401,045
Grants Paid
Management & General
Fund Raising
TOTAL EXPENSES
Excess of Revenue over Expenses
Net Assets, Beginning of Year
Net Assets, End of Year
416,412
146,810
(416,412)
0
30,000
312,900
176,810
114,678
1,341
9,252
1,579,196
1,509,151
342,900
1,341
(416,412)
1,385,221
(312,900)
30,000
0
144,678
9,252
1,549,196
446,412
20,874
2,965
23,839
(130,051)
2,685
(127,366)
1,405,105
8,743
1,413,848
1,535,156
6,058
1,541,214
$1,425,979
$11,708
$1,437,687
$1,405,105
$8,743
$0
See accompanying notes to financial statements and auditor's report
3
(312,900)
$0
1,539,151
$1,413,848
Happiness is Camping, Inc.
Statements Functional Expenses
December 31, 2014
FUNCTIONAL EXPENSES
Salaries
Payroll Taxes
Other Benefits
Total
Management
Programs
& General
Total
Fundraising
Expense
$164,304
$85,173
$249,477
15,372
8,045
23,417
0
24,552
24,552
Total Personal Services
179,676
117,770
297,446
Food and Kitchen
202,128
202,128
International Staff
33,776
33,776
Contributed Services
24,800
24,800
Program - Free Camp
640,000
640,000
Office Expense
16,029
Telephone
7,372
Occupancy
9,991
26,020
6,188
13,560
30,000
30,000
Repairs and Maintenance
64,176
64,176
Utilities
45,033
45,033
Pool & Waterfront
942
942
Permits & Fees
5,208
5,208
Travel
4,667
Conferences & Dues
2,046
1,041
5,708
2,046
Interest
20,351
Depreciation
51,901
Insurance
53,235
Contracted &Professional Fees
30,294
Camp Program Activity Expense
17,935
17,935
200
200
1,276
1,276
Donations
Medical Expenses
TOTAL FUNCTIONAL EXPENSES
20,351
698
52,599
53,235
11,122
$1,401,045
$176,810
$1,341
$1,341
See accompanying notes to financial statements and auditor's report
4
42,757
$1,579,196
Happiness is Camping, Inc.
Statements Functional Expenses
December 31, 2013
FUNCTIONAL EXPENSES
Salaries
Payroll Taxes
Other Benefits
Total
Management
Programs
& General
Total
Fundraising
Expense
$208,300
$39,598
$5,129
$253,027
15,391
3,020
946
19,357
51,035
9,674
1,302
62,011
Total Personal Services
274,726
52,292
7,377
334,395
Food and Kitchen
172,223
172,223
International Staff
11,820
11,820
Contributed Services
24,800
24,800
Program - Free Camp
640,000
640,000
Office Expense
16,605
Telephone
7,425
Occupancy
20,085
36,690
6,121
13,546
30,492
30,492
Repairs and Maintenance
38,197
38,197
Utilities
37,249
37,249
Travel
5,210
Conferences & Dues
1,950
1,108
6,318
1,950
Interest
17,508
17,508
66,102
Depreciation
65,404
698
Insurance
21,374
7,124
Professional Fees/Contracted Services
24,381
9,250
Camp Program Activity Expense
42,137
42,137
1,720
1,720
Medical Expenses
TOTAL FUNCTIONAL EXPENSES
$1,385,221
$144,678
See accompanying notes to financial statements and auditor's report
5
28,498
1,875
$9,252
35,506
$1,539,151
Happiness is Camping, Inc.
Statements of Cash Flows
December 31, 2014 and 2013
New
Jersey
2014
New
York
$20,874
$2,965
New
Jersey
2013
New
York
Combined
$23,839
($130,051
)
$2,685
($127,366
)
52,599
66,102
66,102
1,668
1,668
Combine
d
Cash Flows from Operating Activities
Increase (Decrease) in Net Assets
Adjustments to Reconcile Net Assets to
Net Cash Provided (used) by Operating Activities
Provision for Depreciation & Amortization
52,599
Increase/Decrease in:
Inventory
Prepaid Expenses
(1,096)
(1,096)
(13,114)
(13,114)
Accounts Payable
(3,985)
(3,985)
30,444
30,444
Other Current Liabilities
18,030
18,030
0
0
(994)
(994)
994
994
88,393
(43,957)
0
0
(57,411)
(57,411)
0
0
(57,411)
(57,411)
125,054
125,054
Cash Overdraft
NET CASH FROM OPERATING ACTIVITIES
85,428
2,965
2,685
(41,272)
Cash Flows from Investing Activities
Purchase of Property & Equipment
NET CASH FROM INVESTING ACTIVITIES
Cash Flows from Financing Activities
Proceeds from Increase in Notes Payable
Repayment of Mortgage payable
(19,639)
(19,639)
(13,215)
(13,215)
Repayment of Notes Payable
(48,202)
(48,202)
(14,475)
(14,475)
(67,841)
(67,841)
97,364
97,364
NET CASH FROM FINANCING ACTIVITIES
NET INCREASE IN CASH & CASH
EQUIVALENTS
Cash & Cash Equivalents , Beginning of year
CASH & CASH EQUIVALENTS, END OF
YEAR
17,587
2,965
20,552
(4,004)
2,685
(1,319)
17,075
8,743
25,818
21,079
6,058
27,137
$34,662
$11,708
$46,370
$17,075
$8,743
$25,818
$20,065
$0
$20,065
$17,508
$0
$17,508
SUPPLEMENTAL DISCLOSURE
Cash paid during the year for interest
See accompanying notes to financial statements and auditor's report
6
HAPPINESS IS CAMPING, INC.
Notes to Financial Statements
December 31, 2014 and 2013
NOTE A. NATURE OF ORGANIZATION
Happiness is Camping, Inc. (the “Organization”) provides a camping facility for children with cancer. The
Organization was founded in 1960. Approximately 320 children, boys and girls aged six through fifteen years, attend
the overnight camp annually. There are four weekly sessions and children stay anywhere from one to all four
sessions. The camp is free to all and is supported by donations, grants and revenues generated from running camp
activities for other groups.
The medical staff, doctors and nurses, from Memorial Sloan-Kettering, Montefiore and other regional facilities,
provides medical supervision of the highest quality. Some of the children will continue treatment, including
chemotherapy, while at the camp and the medical staff attends to their needs.
Happiness is Camping is a special place where the remarkable is routine. The Organization is a regular sleep away
camp for normal kids, boys and girls who just happen to have cancer.
The two entities that comprise the combined financial statements are: Happiness is Camping (New York), founded in
1960, is primarily responsible for administration including fund raising; Happiness is Camping (New Jersey), founded
in 1978, is responsible for operating the campground located in Hardwick, New Jersey.
NOTE B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The financial statements of the Organization have been prepared in accordance with Generally Accepted Accounting
Principles (“GAAP”). A summary of the relevant accounting policies follows:
Basis of Presentation
Happiness is Camping, Inc. prepares its financial statements in accordance with Statement of Financial Accounting
Standards ASC 958-310-50, “Accounting for Contributions Received and Made,” and ASC 958-210-50, “Financial
Statements of Not-for-Profit Organizations.” ASC 958-210-45 establishes standards for external financial accounting
and reporting purposes into the following three net asset categories according to externally (donor) imposed
restrictions: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. ASC 958310-50 requires that unconditional promises to give be recorded as receivables and revenue and requires the
Organization to distinguish between contributions received for each net asset category in accordance with donorimposed restrictions.
Basis of Accounting
The financial statements of Happiness is Camping, Inc. have been prepared on the accrual basis of accounting and
accordingly reflect all significant receivables, payables, and other liabilities.
Reclassification
Certain amounts previously reported in the 2013 financial statements, have been reclassified to conform to the 2014
presentation. These reclassifications have no effect on the net assets of the Organization.
7
HAPPINESS IS CAMPING, INC.
Notes to Financial Statements
December 31, 2014 and 2013
Promises to Give
Promises to give are recognized when the donor makes a promise to give to the Organization that is, in substance,
unconditional. Contributions that are restricted by the donor are reported as increases to unrestricted net assets if the
restrictions expire in the fiscal year in which the contributions are recognized. All other donor-restricted contributions
are reported as increases in temporary or permanently restricted net assets depending upon the nature of the
restrictions. When a restriction expires, temporarily restricted net assets are classified to unrestricted net assets.
Unrestricted net assets are resources representing the portion of expendable funds available for support of the
Organization’s programs and general operations. These resources are not subject to donor-imposed restrictions.
Temporarily restricted net assets are net assets subject to donor-imposed stipulations that may or will be met, either by
actions of the Camp and/or the passage of time. When a restriction expires, temporarily restricted net assets are
reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions.
Permanently restricted net assets are net assets subject to donor-imposed stipulations to be maintained permanently by
the School. Generally, donors of these assets permit the School to use all or part of the income earned on any related
investments for general or specific purposes. At June 30, 2015 and 2014 there were no permanently restricted net
assets.
Revenue and Support Recognition
Contributions are recognized as revenue and receivables when they are received or unconditionally pledged.
Unconditional promises to give due in the next year are recorded at their net realizable value. Unconditional promises
to give due in subsequent years are reported at the present value of their net realizable value, using risk-free interest
rates applicable to the years in which the promises are to be received.
The Organization reports 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 is met during the accounting period in
which the gift was received, the gifts are reported as unrestricted contributions in the statement of activities.
Income Taxes
The Organization has received an exemption from the Internal Revenue Service (IRS) from Federal income taxes
under Section 501(a), as an entity described in Section 501(c)(3) of the Internal Revenue Code. The Organization is
required to make the appropriate tax payments on any income considered unrelated to its exempt purpose.
The provisions of FASB ASC Topic 740-10, Accounting for Income Taxes, had no impact on the Organization’s
financial statements and, accordingly, no interest or penalties were accrued as of December 31, 2014. Management
believes it has no material uncertain tax positions or any related penalties and interest to accrue for the years ended
June 30, 2015 and 2014, and, accordingly, there is no liability for unrecognized tax benefits.
Cash and Cash Equivalents
For purposes of the statement of cash flows, the Organization considers all short-term investments with a maturity of
three months or less to be cash equivalents.
8
HAPPINESS IS CAMPING, INC.
Notes to Financial Statements
December 31, 2014 and 2013
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the report amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and
expenses during the reported period. Actual results could differ from those estimates.
Fair Value of Financial Instruments
Unless otherwise indicated, the fair value of all reported assets and liabilities, which represent financial instruments
(none of which are held for trading purposes) approximate the carrying values of such amounts.
Functional Allocation of Expenses
The costs of providing the various programs and activities for the Organization have been summarized on a functional
basis in the combined statements of functional expenses. Accordingly, certain costs have been allocated among the
programs, and supporting services benefited.
Property and Equipment
Property and equipment are recorded at cost when purchased or at fair market value at date of gift, when donated.
Major renewal and betterments are also capitalized. Maintenance and repairs, which do not improve or extend the
lives of the respective assets, are expensed. When equipment is retired or otherwise disposed of, the asset and
accumulated depreciation accounts are adjusted accordingly and the gain or loss, if any, arising from disposition, is
credited or charged to income. Proceeds from the sale of fixed assets, if unrestricted, are transferred to unrestricted
net assets or, if restricted, to defer amounts restricted for fixed asset acquisitions. Depreciation is provided for by the
straight-line method over the estimated useful lives of the assets.
Contributed Services
Contributed services, which require a specialized skill and which the Organization would have paid for if not donated,
are recorded at the estimated fair value at the time services are rendered. The organization also receives donated
services that do not require specific expertise, but are nonetheless central to the Organization’s operations. See also
Note D for the breakdown of the contributed services.
NOTE C. CAMPING - PROGRAM ACTIVITIES
Each summer the Organization provides approximately four one-week sessions of camping activities for children
between six and fifteen years of age with cancer services provided, including sophisticated medical care treatment.
The camp allows each camper to bring his/her siblings to experience the joys and freedom of a supervised summer
camp and nature. The campers and their siblings are not charged a fee. The services provided include food, lodging,
programs, and a wide range of camp activities. The value of the service provided amounts to $2,000 per camper and
there are 320 campers annually at a total in-kind value of $640,000. A corresponding amount of $640,000 is charged
to Program – free camp expense.
When the camp is not in use by children or teen campers, the facilities are rented to other non-profit organizations for
retreats, meetings, and conferences. The fees are based on the number of days and the number of participants, which
include fees for the use of the recreational equipment, room and board.
9
HAPPINESS IS CAMPING, INC.
Notes to Financial Statements
December 31, 2014 and 2013
NOTE D. CONTRIBUTED SERVICES
Contributed services consist of cabin counselors, nurses and doctors. The value of the services has been quantified
and included in the financial statements. There are four volunteer camp counselors at a weekly rate of $425 or $6,800
annually. There are two volunteer nurses at a weekly rate of $1,000 or $8,000 annually. One physician is on call
weekly at a rate of $1,500 or $6,000 annually. Finally, the nursing director is valued at a weekly rate of $1,000 or
$4,000 annually. The total contributed services recorded for the years ended December 31, 2014 and 2013 was
$24,800 per year. Note the 2013 contributed services were added to the financial statement, which had no impact on
the prior year’s unrestricted net assets.
NOTE E. PROPERTY AND EQUIPMENT
Property and Equipment consist of:
New Jersey
Land
Leasehold Improvements
Total Property & Equipment
Less: Accumulated Depreciation
Net Property & Equipment
592,313
3,439,008
4,031,321
(2,262,054)
$ 1,769,267
December 31, 2014
December 31, 2013
New York
New York
$
$
-
(Combined) New Jersey
$ 592,313 $ 592,313
3,439,008
3,439,008
4,031,321
4,031,321
(2,262,054) (2,209,455)
$1,769,267 $1,821,866
$
-
.
(Combined)
$ 592,313
3,439,008
4,031,321
(2,209,455)
$1, 821,866
Depreciation expense for the Center for the years ended December 31, 2014 and 2013 are $52,599 and $66,102,
respectively.
NOTE F. CONSERVATION OF LAND AND EASEMENTS
Conservation land is real property with significant ecological value. A conservation easement was granted May 23,
2001, between the Organization and the State of New Jersey, Department of Environmental Protection, in perpetuity,
pursuant to the laws of New Jersey, for the exclusive purpose of assuring that the youth camping facility provides
public trail access and that the open space character, wildlife habitat and scenic qualities of the Property will be
conserved and maintained forever and that the uses of the land, which are inconsistent with these Conservation Values
will be prevented or corrected.
Conservation easements are comprised of listed rights and /or restrictions over the owned property that are conveyed
to the property owner, in perpetuity, in order to protect the owned property as a significant natural area, as defined in
the federal tax regulations. The land may be sold or transferred to others as long as the assignee agrees to carry out, in
perpetuity, the conservation purposes intended by the original grantor. Conservation easements, by their very nature,
do not generate material amounts of cash flow annually.
NOTE G. CONCENTRATIONS OF CREDIT RISK
Financial instruments that potentially subject the Organization to concentrations of credit risk consist primarily of
temporary cash investments. The Organization places its temporary cash investments with financial institutions and
limits the amount of credit exposure to any one financial institution. As of December 31, 2014 and 2013, the
Organization had no significant concentrations of credit risk.
10
HAPPINESS IS CAMPING, INC.
Notes to Financial Statements
December 31, 2014 and 2013
NOTE H. MORTGAGE PAYABLE
On November 6, 2010, the Organization entered into a mortgage note with PNC Bank. The gross proceeds of the
mortgage amount to $300,000 with the first payment due December 6, 2010. The mortgage matures after 14 years on
November 6, 2024. Interest on this mortgage is calculated utilizing the “interest calculation Method.” The interest
rate is fixed at 5.99%. The monthly payment of principal and interest is $2,655.88. The mortgage is fully
collateralized by the Organization’s real estate.
Mortgage payable
Less: current portion
Long-term Mortgage payable
December 31, 2014
$236,873
(17,968)
$218,905
Future minimum principal payments are as follows:
Year Ended December 31,
2015
2016
2017
2018
2019
2020 and thereafter
$ 17,968
19,091
20,283
21,551
22,897
135,083
$236,873
NOTE I. NOTES PAYABLE AND LINE-OF-CREDIT
On October 25, 2010, the Organization borrowed $60,000 from a board member which was an unsecured twenty-four
month note with an interest rate of 3.99%. This note was paid off in February 2013.
On May 1, 2013 the Organization borrowed $35,000 and entered into an unsecured note with a board member at a rate
of 3.99%. The duration of the note is twenty-four (24) months. The balance as of December 31, 2014 was $14,923.
On May 6, 2013 the Organization borrowed $25,000 and entered into an unsecured note with a board member at a rate
of 3.99%. The duration of the note is twenty-four (24) months. The balance as of December 31, 2014 was $11,706.
On June 21, 2013, the Organization obtained a Line-of-Credit from PNC Bank. The credit line is $50,000 at an
interest rate of 7.80%. Payments are made monthly and the balance as of December 31, 2014 was $43,566. The
terms of the credit agreement are reviewed annually with PNC bank.
On September 24, 2013 the Organization received a $17,510 transfer from a personal line-of-credit from the
Executive Director. The camp has been making payments on the line of credit. This line-of-credit was paid off in
December 2014.
11
HAPPINESS IS CAMPING, INC.
Notes to Financial Statements
December 31, 2014 and 201
NOTE J. IN-KIND OCCUPANCY
Happiness is Camping, Inc. occupies partial space in a basement office located at 2169 Grand Concourse in the
Bronx, New York. The use of this space is consistent with the building’s certificate of occupancy. The agreement is
renewed on an annual basis. The Organization provided for contributed income of $30,000 in the accompanying
financial statements as contributed use of facility and rental expense for the years ended December 31, 2014 and
2013.
NOTE K. SUBSEQUENT EVENTS
The Organization has evaluated subsequent events through October 2, 2015, which is the date the combined financial
statements were available to be issued. There were no other events that require adjustments to or disclosure in the
Organization’s combined financial statements for the year ended December 31, 2014.
12