HomeMy WebLinkAboutCommUnity Crisis Services - Audit Financial Review ReportCOMMUNITY CRISIS SERVICES AND FOOD BANK
FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2021 AND 2020
COMMUNITY CRISIS SERVICES AND FOOD BANK
TABLE OF CONTENTS
YEARS ENDED JUNE 30, 2021 AND 2020
INDEPENDENT AUDITORS’ REPORT 1
FINANCIAL STATEMENTS
STATEMENTS OF FINANCIAL POSITION 3
STATEMENTS OF ACTIVITIES 5
STATEMENTS OF FUNCTIONAL EXPENSES 7
STATEMENTS OF CASH FLOWS 9
NOTES TO FINANCIAL STATEMENTS 10
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INDEPENDENT AUDITORS’ REPORT
Board of Directors
CommUnity Crisis Services and Food Bank
Iowa City, Iowa
We have audited the accompanying financial statements of CommUnity Crisis Services and Food Bank
(the Organization), which comprise the statements of financial position as of June 30, 2021 and 2020,
and the related statements of activities, functional expenses,and cash flows for the years 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.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the 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 auditors’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 entity’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 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
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Board of Directors
CommUnity Crisis Services and Food Bank
(2)
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the Organization as of June 30, 2021 and 2020,and the change in their net assets
and their cash flows for the years then ended in accordance with accounting principles generally
accepted in the United States of America.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
November 18, 2021, on our consideration of the Organization’s internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts, and other grant
agreements and other matters.The purpose of that report is solely to describe the scope of our testing
of internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on the effectiveness of the Organization’s internal control over financial reporting or
on compliance.That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the Organization’s internal control over financial reporting and
compliance.
a
CliftonLarsonAllen LLP
Cedar Rapids, Iowa
November 18, 2021
COMMUNITY CRISIS SERVICES AND FOOD BANK
STATEMENTS OF FINANCIAL POSITION
JUNE 30, 2021 AND 2020
See accompanying Notes to Financial Statements.
(3)
2021 2020
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents 1,627,155$ 1,265,333$
Receivables 528,080 562,296
Prepaid Expenses 17,267 24,791
Total Current Assets 2,172,502 1,852,420
INVESTMENTS 724,670 561,743
PROPERTY AND EQUIPMENT
Land 325,000 325,000
Buildings and Improvements 2,300,190 2,232,331
Furniture and Equipment 539,250 424,670
Total Property and Equipment 3,164,440 2,982,001
Less: Accumulated Depreciation (1,368,606) (1,256,576)
Property and Equipment, Net 1,795,834 1,725,425
BENEFICIAL INTEREST IN ASSETS HELD
BY COMMUNITY FOUNDATION 17,989 13,981
Total Assets 4,710,995$ 4,153,569$
COMMUNITY CRISIS SERVICES AND FOOD BANK
STATEMENTS OF FINANCIAL POSITION (CONTINUED)
JUNE 30, 2021 AND 2020
See accompanying Notes to Financial Statements.
(4)
2021 2020
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts Payable 61,770$ 29,608$
Accrued Expenses and Other Liabilities 143,311 129,075
Deferred Revenue - 22,781
Current Portion Capital Lease 4,107 3,798
Current Portion of Note Payable - 8,053
Note Payable - PPP - 306,900
Total Current Liabilities 209,188 500,215
LONG-TERM LIABILITIES
Long-Term Portion of Capital Lease, Less Current Portion Above 14,434 18,541
Total Long-Term Liabilities 14,434 18,541
Total Liabilities 223,622 518,756
NET ASSETS
Without Donor Restrictions:
Undesignated 3,481,288 2,807,070
Board-Designated Endowment 663,341 509,909
Board-Designated Reserve 61,329 51,834
Total W ithout Donor Restrictions 4,205,958 3,368,813
With Donor Restrictions 281,415 266,000
Total Net Assets 4,487,373 3,634,813
Total Liabilities and Net Assets 4,710,995$ 4,153,569$
COMMUNITY CRISIS SERVICES AND FOOD BANK
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(5)
Without Donor With Donor
Restrictions Restrictions Total
SUPPORT AND REVENUE
Support:
Contributions 1,547,262$ 19,851$ 1,567,113$
In-Kind Contributions 2,587,983 - 2,587,983
United Way 15,135 110,068 125,203
Johnson County - 122,669 122,669
City of Iowa City 69,086 - 69,086
City of Coralville 5,000 11,365 16,365
Total Support 4,224,466 263,953 4,488,419
Revenue:
Grants and Contracts 2,200,243 - 2,200,243
Investment Income, Net 165,473 - 165,473
Change in Beneficial Interest in Assets
Held by Community Foundation 4,008 - 4,008
Rental Income 52,498 - 52,498
Loss on Disposal of Property and Equipment (13,593) - (13,593)
Note Payable Forgiveness 309,261 - 309,261
Total Revenue 2,717,890 - 2,717,890
Total Support and Revenue 6,942,356 263,953 7,206,309
NET ASSETS RELEASED FROM RESTRICTIONS
Restrictions Satisfied by Passage of
Time and Payments 248,538 (248,538) -
Total Support and Revenue, Net
Assets Released from Restrictions 7,190,894 15,415 7,206,309
EXPENSES
Program Services:
Crisis Intervention 1,813,862 - 1,813,862
Food Bank 3,168,513 - 3,168,513
Emergency Assistance 585,488 - 585,488
1105 Project 86,151 - 86,151
Total Program Services 5,654,014 - 5,654,014
Supporting Services:
Management and General 459,298 - 459,298
Fundraising 240,437 - 240,437
Total Supporting Services 699,735 - 699,735
Total Expenses 6,353,749 - 6,353,749
CHANGES IN NET ASSETS 837,145 15,415 852,560
Net Assets - Beginning of Year 3,368,813 266,000 3,634,813
NET ASSETS - END OF YEAR 4,205,958$ 281,415$ 4,487,373$
COMMUNITY CRISIS SERVICES AND FOOD BANK
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2020
See accompanying Notes to Financial Statements.
(6)
Without Donor With Donor
Restrictions Restrictions Total
SUPPORT AND REVENUE
Support:
Contributions 1,389,568$ 21,898$ 1,411,466$
In-Kind Contributions 2,410,648 - 2,410,648
United Way 3,325 110,068 113,393
Johnson County - 122,669 122,669
City of Iowa City 66,000 - 66,000
Total Support 3,869,541 254,635 4,124,176
Revenue:
Grants and Contracts 1,398,400 - 1,398,400
Investment Income, Net 10,993 - 10,993
Change in Beneficial Interest in Assets
Held by Community Foundation 272 272
Rental Income 49,230 - 49,230
Loss on Disposal of Property and Equipment (2,253) - (2,253)
Total Revenue 1,456,642 - 1,456,642
Total Support and Revenue 5,326,183 254,635 5,580,818
NET ASSETS RELEASED FROM RESTRICTIONS
Restrictions Satisfied by Passage of
Time and Payments 228,780 (228,780) -
Total Support and Revenue, Net
Assets Released from Restrictions 5,554,963 25,855 5,580,818
EXPENSES
Program Services Expense:
Crisis Intervention 1,364,934 - 1,364,934
Food Bank 2,718,203 - 2,718,203
Emergency Assistance 221,715 - 221,715
1105 Project 72,743 - 72,743
Total Program Services Expense 4,377,595 - 4,377,595
Supporting Services Expense:
Management and General 380,340 - 380,340
Fundraising 195,276 - 195,276
Total Supporting Services Expense 575,616 - 575,616
Total Expenses 4,953,211 - 4,953,211
CHANGES IN NET ASSETS 601,752 25,855 627,607
Net Assets - Beginning of Year 2,767,061 240,145 3,007,206
NET ASSETS - END OF YEAR 3,368,813$ 266,000$ 3,634,813$
COMMUNITY CRISIS SERVICES AND FOOD BANK
STATEMENT OF FUNCTIONAL EXPENSES
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(7)
Total Total Total
Crisis Food Emergency 1105 Program Management Supporting Functional
Intervention Bank Assistance Project Services and General Fundraising Services Expenses
Salaries 1,443,945$ 342,038$ 181,535$ 29,872$ 1,997,390$ 223,041$ 169,518$ 392,559$ 2,389,949$
Other Employee Benefits 64,421 22,799 12,599 3,541 103,360 20,826 9,360 30,186 133,546
Payroll Taxes 96,588 23,557 13,880 2,236 136,261 17,049 12,961 30,010 166,271
Pension Contributions 16,882 4,071 2,231 944 24,128 5,007 4,184 9,191 33,319
Professional Fees 883 5,122 10 2 6,017 15,589 2 15,591 21,608
Advertising 13,840 4,288 - - 18,128 66,450 3,338 69,788 87,916
Office Expenses 17,512 19,733 1,932 1,807 40,984 20,219 20,484 40,703 81,687
Telephone 17,324 8,543 155 5,195 31,217 3,563 1,521 5,084 36,301
Information Technology 33,681 13,479 3,143 562 50,865 18,479 7,101 25,580 76,445
Occupancy 1,204 13,009 226 8,627 23,066 1,580 903 2,483 25,549
Meeting and Conferences 19,226 1,237 405 45 20,913 383 189 572 21,485
Insurance 15,518 8,359 2,202 2,672 28,751 13,512 2,054 15,566 44,317
Special Events - - - - - - 5,108 5,108 5,108
Client Assistance 33,244 2,452,654 363,000 - 2,848,898 414 31 445 2,849,343
Travel 6,199 341 49 - 6,589 383 181 564 7,153
Maintenance 16,202 153,394 2,156 16,317 188,069 6,184 2,290 8,474 196,543
Volunteer Recognition 3,722 1,330 175 - 5,227 553 1,212 1,765 6,992
Interest Expense - - - 196 196 4,116 - 4,116 4,312
Miscellaneous 1,777 1,271 - - 3,048 20,669 - 20,669 23,717
Total Expenses by
Function 1,802,168 3,075,225 583,698 72,016 5,533,107 438,017 240,437 678,454 6,211,561
Depreciation 11,694 93,288 1,790 14,135 120,907 21,281 - 21,281 142,188
Total Expenses 1,813,862$ 3,168,513$ 585,488$ 86,151$ 5,654,014$ 459,298$ 240,437$ 699,735$ 6,353,749$
Program Services Supporting Services
COMMUNITY CRISIS SERVICES AND FOOD BANK
STATEMENT OF FUNCTIONAL EXPENSES
YEAR ENDED JUNE 30, 2020
See accompanying Notes to Financial Statements.
(8)
Total Total Total
Crisis Food Emergency 1105 Program Management Supporting Functional
Intervention Bank Assistance Project Services and General Fundraising Services Expenses
Salaries 1,104,245$ 201,109$ 91,588$ 18,765$ 1,415,707$ 223,802$ 121,082$ 344,884$ 1,760,591$
Other Employee Benefits 51,301 12,835 8,590 4,630 77,356 22,795 5,405 28,200 105,556
Payroll Taxes 66,580 15,259 6,652 1,533 90,024 16,325 8,605 24,930 114,954
Pension Contributions 13,893 4,761 1,217 453 20,324 8,051 3,345 11,396 31,720
Professional Fees 731 413 22 194 1,360 15,056 23 15,079 16,439
Advertising 7,070 583 - - 7,653 28,720 1,237 29,957 37,610
Office Expenses 5,421 9,406 3,631 - 18,458 15,769 12,597 28,366 46,824
Telephone 9,870 6,907 163 4,982 21,922 2,497 1,402 3,899 25,821
Information Technology 18,755 6,974 995 868 27,592 6,180 6,522 12,702 40,294
Occupancy 1,523 9,145 261 9,795 20,724 1,827 1,045 2,872 23,596
Meeting and Conferences 14,426 622 78 7 15,133 1,072 452 1,524 16,657
Insurance 10,242 5,848 1,745 3,094 20,929 6,334 1,316 7,650 28,579
Special Events 1,000 - - - 1,000 271 15,779 16,050 17,050
Client Assistance 26,594 2,339,521 104,561 - 2,470,676 5 102 107 2,470,783
Travel 16,474 345 - - 16,819 2,960 2,201 5,161 21,980
Maintenance 2,350 20,106 389 13,421 36,266 2,937 1,463 4,400 40,666
Volunteer Recognition 2,200 3,871 235 751 7,057 1,647 760 2,407 9,464
Interest Expense - - - - - 751 - 751 751
Miscellaneous 1,200 - - - 1,200 16,215 21 16,236 17,436
Total Expenses by
Function 1,353,875 2,637,705 220,127 58,493 4,270,200 373,214 183,357 556,571 4,826,771
Depreciation 11,059 80,498 1,588 14,250 107,395 7,126 11,919 19,045 126,440
Total Expenses 1,364,934$ 2,718,203$ 221,715$ 72,743$ 4,377,595$ 380,340$ 195,276$ 575,616$ 4,953,211$
Program Services Supporting Services
COMMUNITY CRISIS SERVICES AND FOOD BANK
STATEMENTS OF CASH FLOWS
YEARS ENDED JUNE 30, 2021 AND 2020
See accompanying Notes to Financial Statements.
(9)
2021 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Change in Net Assets 852,560$ 627,607$
Adjustments to Reconcile Change in Net Assets to
Net Cash Provided by Operating Activities:
Note Payable Forgiveness - PPP (306,900) -
Reinvested Interest/Dividends (11,975) (11,221)
Realized and Unrealized Loss (Gain) on Investments (155,628) 393
Depreciation 142,188 126,440
Loss on Disposal of Property and Equipment 13,593 2,253
Change in Beneficial Interests in Assets Held by
Community Foundation (4,008) (272)
Changes in Operating Assets and Liabilities:
Receivables 34,216 (122,059)
Prepaid Expenses 7,524 (19,538)
Accounts Payable 32,162 (9,759)
Accrued Expenses and Other Liabilities 14,236 33,026
Deferred Revenue (22,781) (18,007)
Net Cash Provided by Operating Activities 595,187 608,863
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of Investments (159,361) (297,104)
Proceeds from Sales of Investments 164,037 298,985
Purchases of Property and Equipment (226,190) (5,623)
Net Cash Used by Investing Activities (221,514) (3,742)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Note Payable - PPP - 306,900
Payments on Note Payable (8,053) (17,998)
Payments on Obligations under Capital Lease (3,798) -
Net Cash Provided (Used) by Financing Activities (11,851) 288,902
NET INCREASE IN CASH AND CASH EQUIVALENTS 361,822 894,023
Cash and Cash Equivalents - Beginning of Year 1,265,333 371,310
CASH AND CASH EQUIVALENTS - END OF YEAR 1,627,155$ 1,265,333$
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest Paid 1,951$ 751$
COMMUNITY CRISIS SERVICES AND FOOD BANK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021 AND 2020
(10)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
CommUnity Crisis Services and Food Bank formerly known as The Crisis Center of Johnson
County (herein referred to as the Organization) was incorporated in June 1970 in the state
of Iowa. The Organization offers crisis prevention and intervention programs to people of all
ages. The mission of the Organization is to provide emotional or material support in Johnson
County, Iowa in a nonjudgmental and caring way by providing immediate resources or
referrals. The Organization also works collaboratively with individuals and organizations to
help prevent and prepare for future needs. Significant accounting policies followed by the
Organization are presented below.
Use of Estimates in Preparing Financial Statements
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America (U.S. 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
years. Actual results could differ from those estimates.
Cash and Cash Equivalents
The Organization considers all liquid investments with a maturity of three months or less when
purchased to be cash equivalents.
Receivables
Receivables are unsecured and are reported at their outstanding balances. Management
periodically evaluates the Organization’s past receivables loss experience, known and
inherent risks in receivables populations, adverse situations that may affect an obligor’s
ability to pay, and current economic conditions. The Organization maintained an allowance
for doubtful accounts of $-0-for the years ended June 30, 2021 and 2020.
Investments
Investments are carried at fair value with unrealized and realized gains and losses on
investments reported as an increase or decrease in net assets without donor restrictions.
Investment income is recognized when earned.
Property and Equipment
Property and equipment which were purchased are stated at their original cost. All fixed
assets are depreciated over their estimated useful lives of 5 to 20 years,using the straight-
line method of depreciation. The Organization follows the practice of capitalizing at cost all
expenditures for property and equipment in excess of $1,000 and a useful life greater than
one year.
COMMUNITY CRISIS SERVICES AND FOOD BANK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021 AND 2020
(11)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Impairment of Long-Lived Assets
The Organization reviews long-lived assets for impairment whenever events or changes in
circumstances indicate the carrying amount of an asset may not be recoverable.
Recoverability of assets to be held and used is measured by a comparison of the carrying
amount of an asset to future undiscounted net cash flows expected to be generated by the
asset. If such assets are considered to be impaired, the impairment to be recognized is
measured by the amount by which the carrying amount of the assets exceeds the fair value
of the assets. Assets to be disposed of are reported at the lower of carrying amount or the
fair value less costs to sell.
Beneficial Interest in Assets Held by Community Foundation
Certain funds are held by the Community Foundation of Johnson County (the Foundation),
in permanent designated agency endowment funds,for the benefit of the Organization. The
transactions with the Foundation are deemed to be reciprocal and, therefore, the value of
the funds held by the Foundation is recognized as an asset (beneficial interest in assets
held by community foundation) by the Organization.
Certain other funds held by the Foundation for the benefit of the Organization have been
established (see Note 5)by donors who explicitly granted variance power to the Foundation
in a nonreciprocal transfer. As such, these funds are not recognized as an asset by the
Organization. The distributions received from the Foundation from these funds are
recognized as contribution revenue by the Organization.
Net Assets
Net assets are classified based on the existence or absence of donor-imposed restrictions.
The following is a description of each class:
Net Assets Without Donor Restrictions —Resources over which the board of directors
has discretionary control. Designated amounts represent amounts which the board has
set aside for a particular purpose.
Net Assets With Donor Restrictions —Those resources subject to donor-imposed
restrictions which will be satisfied by actions of the Organization or passage of time.
Recognition of Support and Revenue
The Organization recognizes support when cash, securities or other assets; unconditional
promises to give; or a notification of a beneficial interest is received. Conditional promises to
give, that is, those with a measurable performance or other barrier and a right of return are
not recognized until the conditions on which they depend have been met. The Organization
has not recorded any conditional promises to give.
COMMUNITY CRISIS SERVICES AND FOOD BANK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021 AND 2020
(12)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Recognition of Support and Revenue (Continued)
The Organization records the fair value of contributed goods.The fair value of contributed
food and grocery items are determined by applying an average value per pound to the
amount of donated product. For the years ended June 30, 2021 and 2020, the Organization
received 1,367,481 and 1,283,681 pounds, respectively, of donated goods at a value of
$2,342,350 and $2,169,421, respectively. The value of these in-kind goods is recorded as
both revenue and expense and has no effect on the change in net assets.
The Organization records the fair value of donated services that create or enhance
nonfinancial assets or that require specialized skills that would typically need to be
purchased if not provided by donation, are recorded at their fair values in the statement of
activities. The Organization included $185,627 and $220,318 for the years ended June 30,
2021 and 2020, respectively. The value of these in-kind services is recorded as both
revenue and expense and has no effect on the change in net assets.
Revenue from programs is reported in the amount that reflects the consideration to which
the Organization expects to be entitled in exchange for providing services to their program
participants. Amounts received are recognized as revenue when the Organization has
incurred expenditures in compliance with specific contract or grant provisions. Amounts
received prior to incurring qualifying expenditures are reported as deferred revenue in the
statement of financial position.
Advertising
The Organization expenses advertising costs as incurred.
Tax-Exempt Status
The Organization is exempt from income taxes under Section 501(c)(3) of the Internal
Revenue Code and a similar section of the Iowa income tax law, which provides income tax
exemption for corporations organized and operated exclusively for religious, charitable, or
educational purposes.The Internal Revenue Service has not determined that the Organization
is a private foundation.
The Organization files information returns in the U.S. federal jurisdiction. The Organization
follows the accounting standard for evaluating uncertain tax positions and has determined that
it was not required to record a liability related to uncertain tax positions for the years ended
June 30, 2021 and 2020.
Functional Expenses
The Organization allocates its expenses on a functional basis among its program and
supporting activities. Expenses that can be identified with a specific program are allocated
directly according to their natural expenditure classification. Other expenses that are
common to several functions are allocated by time spent and effort.
COMMUNITY CRISIS SERVICES AND FOOD BANK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021 AND 2020
(13)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Paycheck Protection Program
Grants from the government are recognized when all conditions of such grants are fulfilled
or there is reasonable assurance that they will be fulfilled.On April 22, 2020,the
Organization received a loan from Hills Bank in the amount of $306,900 to fund payroll, rent,
utilities, and interest on mortgages and existing debt through the Paycheck Protection
Program (the “PPP Loan”).The PPP Loan bears interest at a fixed rate of 1.0% per annum,
has a term of two years, and is unsecured and guaranteed by the U.S. Small Business
Administration (SBA).Payment of principal and interest is deferred until the date on which
the amount of forgiveness is remitted to the lender or, if the Organization fails to apply for
forgiveness within the 10 months after the covered period, then payment of principal and
interest shall begin on that date.These amounts may be forgiven subject to compliance and
approval based on the timing and use of these funds in accordance with the program.The
covered period, May 24, 2020 to June 18, 2020, is the time that a business has to spend
their PPP Loan funds.The Organization is following ASC 470, Debt, to account for the initial
receipts related to the PPP Loan.On January 25, 2021, the SBA process the Organization’s
PPP Loan forgiveness application and notified Hills Bank the PPP Loan qualified for full
forgiveness.Loan proceeds were received by the bank from the SBA on this date.
Therefore, the Organization was legally released from the debt and loan forgiveness has
been recorded as a gain on extinguishment of debt, which is included in note payable
forgiveness income during the year ended June 30, 2021.
The SBA may review funding eligibility and usage of funds for compliance with program
requirements based on dollar thresholds and other factors.The amount of liability, if any,
from potential noncompliance cannot be determined with certainty;however, management is
of the opinion that any review will not have a material adverse impact on the Organization’s
financial position.
Change in Accounting Principle
Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU)
2018-13 Fair Value Measurement (Topic 820): Disclosure Framework –Changes to the
Disclosure Requirements for Fair Value Measurement.The ASU removes and modifies
disclosure requirements retrospectively for nonpublic entities.The ASU is effective for fiscal
years beginning after December 15, 2019.Management has adopted the ASU.
NOTE 2 LIQUIDITY AND AVAILABILITY
The Organization regularly monitors liquidity to meet its operating needs and other
commitments, while also striving to maximize the investment of its available funds. The
Organization receives contributions,grants, and program fees on an ongoing basis. For
purposes of analyzing resources available to meet general expenditures over a 12-month
period, the Organization considers all expenditures related to its ongoing activities as well as
the conduct of services undertaken to support those activities to be general expenditures.
COMMUNITY CRISIS SERVICES AND FOOD BANK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021 AND 2020
(14)
NOTE 2 LIQUIDITY AND AVAILABILITY (CONTINUED)
In addition to the financial assets available to meet general expenditures over the next
12 months, the Organization anticipates collecting sufficient support and revenue to cover
general expenditures.
The Organization considers contributions restricted for programs which are ongoing, major,
and central to their operations to be available to meet cash needs for general expenditures.
The following table shows the financial assets available for general expenditures and future
needs of the Organization as of June 30:
2021 2020
Cash 1,627,155$ 1,265,333$
Receivables 264,127 307,661
Investments 61,329 51,834
Total 1,952,611$ 1,624,828$
NOTE 3 INVESTMENTS
Investments consist of the following as of June 30:
2021 2020
Mutual Funds 662,203$ 466,431$
Fixed Income 15,227 55,804
Certificates of Deposit - Nonbrokered 20,794 31,236
Money Market Funds 26,446 8,272
Total 724,670$ 561,743$
NOTE 4 FAIR VALUE MEASUREMENTS
Certain assets of the Organization are reported at fair value. That framework provides 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 –Inputs to the valuation methodology are unadjusted quoted prices for identical
assets or liabilities in active markets that the Organization has the ability to access.
COMMUNITY CRISIS SERVICES AND FOOD BANK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021 AND 2020
(15)
NOTE 4 FAIR VALUE MEASUREMENTS (CONTINUED)
Level 2 –Inputs to the valuation methodology include:
-quoted prices for similar assets or liabilities in active markets;
-quoted prices for identical or similar assets or liabilities in inactive markets;
-inputs other than quoted prices that are observable for the asset or liability;
-inputs that are derived principally from or corroborated by observable market data by
correlation or other means.
Level 3 –Inputs to the valuation methodology are unobservable and significant to the fair
value measurement.
The asset or liability’s fair value measurement level within the fair value hierarchy is based on
the lowest level of any input that is significant to the fair value measurement.Valuation
techniques used need to maximize the use of observable inputs and minimize the use of
unobservable inputs.
Following is a description of the valuation methodologies used for assets measured at fair
value.
Mutual Funds: Securities listed on a national market or exchange and valued at the last
sale price, or if there is no sale and the market is still considered active, at the last
transaction price before year-end.
Fixed Income:Valued at the most recent price of the equivalent quoted yield for such
securities, or those of comparable maturity, quality, and type.
Beneficial Interest in Assets Held by a Community Foundation: The unobservable inputs
are the underlying assets at the Foundation and follow their investment pool.
The preceding methods described may produce a fair value calculation that may not be
indicative of net realizable value or reflective of future fair values. Furthermore, while the
Organization believes its valuation methods are appropriate and consistent with other market
participants, the use of different methodologies or assumptions to determine the fair value of
certain financial instruments could result in a different fair value measurement at the reporting
date.
The following tables set forth by level, within the fair value hierarchy, the Organization’s
assets at fair value as of June 30:
Level 1 Level 2 Level 3 Total
Mutual Funds 662,203$ -$ -$ 662,203$
Fixed Income - 15,227 - 15,227
Total Investments 662,203 15,227 - 677,430
Beneficial Interest in Assets Held by
Community Foundation - - 17,989 17,989
Total Assets at Fair Value 662,203$ 15,227$ 17,989$ 695,419$
2021
COMMUNITY CRISIS SERVICES AND FOOD BANK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021 AND 2020
(16)
NOTE 4 FAIR VALUE MEASUREMENTS (CONTINUED)
Level 1 Level 2 Level 3 Total
Mutual Funds 466,431$ -$ -$ 466,431$
Fixed Income - 55,804 - 55,804
Total Investments 466,431 55,804 - 522,235
Beneficial Interest in Assets Held by
Community Foundation - - 13,981 13,981
Total Assets at Fair Value 466,431$ 55,804$ 13,981$ 536,216$
2020
The following is a summary of changes in the fair value of the Organization’s Level 3 assets
for the years ended June 30:
2021 2020
Balance - Beginning of Year 13,981$ 13,709$
Change in Beneficial Interest 4,008 272
Balance - End of Year 17,989$ 13,981$
The following table details Level 3 holdings as of June 30:
Principal
Valuation Unobservable
Instrument 2021 2020 Technique Inputs
Beneficial Interest in Assets Held 17,989$ 13,981$ Net Value of
by Community Foundation Asset Underlying
Value Assets
Fair Value
NOTE 5 BENEFICIAL INTEREST IN ASSETS HELD BY COMMUNITY FOUNDATION AND
DESIGNATED FUNDS
The Organization has established a fund at The Community Foundation of Johnson County
(the Foundation).The fund is administered by the Foundation for the benefit of the
Organization. Control over the investment or reinvestment of these funds is exercised
exclusively by the Foundation.The transactions with the Foundation are deemed to be
reciprocal and, therefore, the value of the fund held by the Foundation is recognized as an
asset (beneficial interest in assets held by community foundation)by the Organization.
Distributions from the fund are at the discretion of the Organization’s board.The following is
the fund balance and purpose at June 30:
2021 2020
Emergency Assistance 17,989$ 13,981$
COMMUNITY CRISIS SERVICES AND FOOD BANK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021 AND 2020
(17)
NOTE 5 BENEFICIAL INTEREST IN ASSETS HELD BY COMMUNITY FOUNDATION AND
DESIGNATED FUNDS (CONTINUED)
In addition, designated funds for the benefit of the Organization, have been established by
donors with the Foundation.In establishing a designated fund, the donor selects a specific
nonprofit institution as a recipient, and grants are made to it annually as long as the named
institution remains in existence and continues to fulfill its intended purpose. Only the
distributions received by the Organization from these designated funds are included in the
accompanying financial statements. The Organization received $7,964 and $8,537 from
these funds for the years ended June 30, 2021 and 2020, respectively. The amount of
investments held on the Organization’s behalf as of June 30, 2021 and 2020 was $511,723
and $395,691, respectively.
NOTE 6 NOTE PAYABLE
Note payable consists of the following as of June 30:
Description 2021 2020
Note payable, that calls for monthly payments of $851 at
5.30%, with final payment due November 2023. Note is
secured by specific property in Iowa City, Iowa.-$ 8,053$
This note was paid off in April 2021.
The Organization has a $250,000 line of credit of which $-0-was used as of June 30, 2021.
Amounts drawn against the line of credit are payable on demand and bear interest at 3.50%.
The line of credit expires October 21, 2021. The line of credit is collateralized by
substantially all of the Organization’s assets.
NOTE 7 OBLIGATIONS UNDER CAPITAL LEASE
The Organization is leasing office equipment under a capital lease which expires in
June 2025. The lease requires monthly payments of $451. The total cost of the leased
equipment is $22,339 as of June 30, 2021 and 2020.Accumulated depreciation at June 30,
2021 and 2020 is $4,468 and $-0-, respectively.Amortization of the capital lease totaled
$4,468 and $-0-for the years ended June 30, 2021 and 2020, respectively, and is included
in depreciation expense.
COMMUNITY CRISIS SERVICES AND FOOD BANK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021 AND 2020
(18)
NOTE 7 OBLIGATIONS UNDER CAPITAL LEASE (CONTINUED)
Future minimum payments under this lease is as follows:
Year Ending June 30,Amount
2022 5,415$
2023 5,415
2024 5,415
2025 5,415
Total Minimum Lease Payments 21,660
Less: Amount Representing Interest (3,119)
Present Value of Minimum Lease Payments 18,541$
NOTE 8 ENDOWMENTS
The Organization’s endowment consists of various funds to support their general operating
needs. Its endowments consist of funds designated by the board of directors (the board)to
function as endowment. As required by U.S. GAAP, 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 Organization has adopted investment and spending policies for endowment assets that
attempt to provide current income to fund the operations of the Organization as well as to
enhance the future resources available to the Organization through long-term appreciation
of assets.
The endowment assets are invested in a manner that is intended to provide growth of
principal and income. Currently, endowment assets are being held and managed by a local
bank and community foundation. Distributions are approved by the board.
Strategies Employed for Achieving Objectives
The Organization primarily follows the investment strategy to have a target balance of
$400,000 to $500,000 with an allowable variation of $350,000 to $550,000. Fixed income
will be approximately $100,000, the remainder of the funds to be invested in longer term,
higher risk investments, such as equity-based mutual funds and real estate investments
trusts.
Endowment net asset composition by type of fund as of June 30, 2021:
Without Donor With Donor
Restrictions Restrictions Total
Board-Designated
Endowment Funds 663,341$ -$ 663,341$
COMMUNITY CRISIS SERVICES AND FOOD BANK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021 AND 2020
(19)
NOTE 8 ENDOWMENTS (CONTINUED)
Changes in endowment net assets for the year ended June 30, 2021:
Without Donor With Donor
Restrictions Restrictions Total
Net Assets - Beginning of Year 509,909$ -$ 509,909$
Investment Income 10,740 - 10,740
Investment Fees (2,332) - (2,332)
Net Appreciation 145,024 - 145,024
Net Assets - End of Year 663,341$ -$ 663,341$
Endowment net asset composition by type of fund as of June 30, 2020:
With Donor
Unrestricted Restrictions Total
Board-Designated
Endowment Funds 509,909$ -$ 509,909$
Changes in net asset composition by type of fund as of June 30, 2020:
With Donor
Unrestricted Restrictions Total
Net Assets - Beginning of Year 503,081$ -$ 503,081$
Investment Income 9,988 - 9,988
Investment Fees (1,710) - (1,710)
Net Depreciation (1,450) - (1,450)
Net Assets - End of Year 509,909$ -$ 509,909$
NOTE 9 RESTRICTIONS ON NET ASSETS
Net assets with donor restrictions are available for the following purposes as of June 30:
2021 2020
Crisis Intervention 6,089$ 3,089$
Food Bank 102,386 84,128
Future Operations 172,940 175,783
Total 281,415$ 263,000$
COMMUNITY CRISIS SERVICES AND FOOD BANK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021 AND 2020
(20)
NOTE 10 COMMUNITY DEVELOPMENT BLOCK GRANT CONTINGENCIES
The Organization received CDBG funds for the renovation and architectural services for the
1105 Building Project during the year ended June 30, 2013. The grant amount was
$187,400. Funds were awarded on a reimbursement basis, and revenue was recorded
when cash was received at the time of project performance. No liability has been recorded
on the books for the conditional loan. The City recorded a mortgage on the property in the
amount of $187,400. The loan on the property requires no payments as long as the
Organization owns the property and uses it in its operations through June 30, 2030. In the
event the Organization sells, assigns,or transfers its interest in the property, or discontinues
its programs, prior to June 30, 2030 without written concurrence from the City, the
Organization is required to pay back to the City. If the Organization fully complies with the
obligation of the grant and the loan through and including June 30, 2030, then there will be
no loan payments due and the lien against the property will be released by the City.
The Organization was awarded CDBG funds for the removal of existing parking lot and
installation of new parking lot including related work at 1105 Gilbert Court. The grant amount
was $100,000. Funds were awarded on a reimbursement basis, and revenue was recorded
when cash was received at the time of project performance. No liability has been recorded
on the books for the conditional loan. The City recorded a mortgage on the property in the
amount of $100,000. The loan on the property requires no payments as long as the
Organization owns the property and uses it in its operations through December 31, 2024. In
the event the Organization sells,assigns, or transfers its interest in the property, or
discontinues its programs, prior to December 31, 2024, without written concurrence from the
City, the Organization is required to pay back to the City. If the Organization fully complies
with the obligation of the grant and the loan through and including December 31, 2024, then
there will be no loan payments due and the lien against the property will be released by the
City.
The Organization was awarded CDBG funds to increase the size of the warehouse, remodel
client services, and expand the waiting area at 1105 Gilbert Court. The grant amount was
$95,000, the Organization received $38,586 for the year ending June 30, 2019.The City
recorded a mortgage on the property in the amount of $95,000. The loan on the property
requires no payments as long as the Organization owns the property and uses it in its
operations through June 30, 2025. In the event the Organization sells,assigns, or transfers
its interest in the property, or discontinues its programs, prior to June 30, 2025, without
written concurrence from the City, the Organization is required to pay back to the City. If the
Organization fully complies with the obligation of the grant and the loan through and
including June 30, 2025, then there will be no loan payments due and the lien against the
property will be released by the City.
COMMUNITY CRISIS SERVICES AND FOOD BANK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021 AND 2020
(21)
NOTE 11 EMPLOYEE BENEFIT PLAN
Effective January 1, 2017, the Organization adopted a 401(k)plan which covers employees
who meet certain eligibility requirements. Previously the Organization had a simplified
employee retirement (SEP) plan which covered employees who met certain eligibility
requirements. The board of directors determines the annual contribution to the plan. For the
years ended June 30, 2021 and 2020, the contribution to the plans was based on 5%of
compensation paid to eligible employees, and amounted to $33,319 and $31,720,
respectively.
NOTE 12 DISCLOSURE ABOUT CERTAIN CONCENTRATIONS
Cash Concentration
The Organization maintains cash balances that exceed the maximum amount insured by the
Federal Deposit Insurance Corporation. At June 30, 2020, the Organization had $1,634,931
of cash deposited in one bank. Management believes the credit risk related to the uninsured
balance is minimal.
Revenue Concentration
The Organization has certain concentrations of support and revenue. For the years ended
June 30, 2021 and 2020, the Organization received funding from the following major funding
sources, defined as greater than 10% of total support and revenue. The approximate
percentage of support and revenue and the amount of receivables from these sources is as
follows:
Receivable Percentage Receivable Percentage
Funding Source A 90,757$ 13 %83,444$ 16 %
Funding Source B - 12 150,000 12
Funding Source C 36,300 10 6,222 3
2021 2020
COMMUNITY CRISIS SERVICES AND FOOD BANK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021 AND 2020
(22)
NOTE 13 COMMITMENTS AND CONTINGENCIES
Lease Commitment
The Organization has entered into an agreement for copier maintenance and service as part
of a capital lease expiring in June, 2025 with monthly payments of $206. The Organization
assumed a copier lease from a former tenant, lease expires in December, 2024, requiring
monthly payments of $295.The Organization is also leasing a vehicle expiring in April 2024.
The vehicle lease required a down payment of $1,506 and monthly payments of $400.
Future minimum lease payments under these leases are as follows:
Year Ending June 30,Amount
2022 10,813$
2023 10,813
2024 8,899
2025 2,474
Total 32,999$
Total rental expense for the years ended June 30, 2021 and 2020 was $8,119 and $13,806,
respectively.
NOTE 14 RISKS AND UNCERTAINTIES
In early March 2020, the COVID-19 virus was declared a global pandemic. The Organization
cannot predict the length or severity of the pandemic, or the extent to which the disruption
may interrupt operations. Management is closely monitoring the situation and has taken
action to mitigate known vulnerabilities. No adjustments have been made to these financial
statements as a result of this uncertainty.
NOTE 15 SUBSEQUENT EVENTS
Management evaluated subsequent events through November 18, 2021, the date the
financial statements were available to be issued. Events or transactions occurring after June
30, 2021, but prior to November 18, 2021, that provided additional evidence about
conditions that existed at June 30, 2021, have been recognized in the financial statements
for the year ended June 30, 2021. Events or transactions that provided evidence about
conditions that did not exist at June 30, 2021, but arose before the financial statements were
available to be issued, have not been recognized in the financial statements for the year
ended June 30, 2021.