Adding up
Consolidated Financial Statements and Report
of Independent Certified Public Accountants and
Single Audit Reports
YMCA OF THE USA
May 2013
introduction
What follows are YMCA of the
HEADING
USA’s 2012 and 2011consolidated
financial statements
and report
Introduction
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the USA’s finance department at
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1
Contents
Page
Report of Independent Certified Public Accountants
4
Consolidated Financial Statements
Statements of financial position
7
Statements of activities
8
Statements of cash flows
10
Statements of functional expenses
11
Notes to consolidated financial statements
13
Supplementary Information
Consolidating statement of financial position
36
Consolidating statement of activities
37
Single Audit Reports
Schedule of expenditures of federal awards
39
Notes to schedule of expenditures of federal awards
40
Report of Independent Certified Public Accountants on
Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with
Government Auditing Standards
42
Report of Independent Certified Public Accountants on
Compliance for Each Major Federal Program and on
Internal Control Over Compliance
44
Schedule of findings and questioned costs
47
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Board of Directors
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
Report on the financial statements
We have audited the accompanying consolidated financial statements of the
National Council of Young Men’s Christian Associations of the United States of
America and Affiliates (Y-USA), which comprise the consolidated statements of
financial position as of December 31, 2012 and 2011, and the related
consolidated statements of activities, cash flows and functional expenses 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
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 and the
standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those
standards require that we plan and perform the audit 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 consolidated financial statements.
The
procedures selected depend on the auditor’s judgment, including the
Grant Thornton LLP
U.S. member firm of Grant Thornton International Ltd
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 Y-USA’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 Y-USA’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 reasonable basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of the National Council of
Young Men’s Christian Associations of the United States of America and Affiliates
as of December 31, 2012 and 2011, and the changes 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.
Supplementary Information
Our audits were conducted for the purpose of forming an opinion on the
consolidated financial statements as a whole. The consolidating information as
of and for the year ended December 31, 2012, on pages 36 and 37 and the
schedule of expenditures of federal awards, as required by the U.S. Office of
Management and Budget Circular A-133, Audits of States, Local Governments,
and Non-Profit Organizations, are presented for purposes of additional analysis
and are not a required part of the consolidated financial statements. Such
supplementary 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 audits of the consolidated
financial statements and certain additional procedures.
These additional
procedures include 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 the auditing standards generally
accepted in the United States of America. In our opinion, the supplementary
information is fairly stated, in all material respects, in relation to the
consolidated financial statements as a whole.
Grant Thornton LLP
U.S. member firm of Grant Thornton International Ltd
Other reporting required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our
report dated May 13, 2013, on our consideration of Y-USA’s internal control over
financial reporting and on our tests of its compliance with certain provisions of
laws, regulations, contracts, and grant agreements and other matters. The
purpose of that report is 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 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 Y-USA’s internal control
over financial reporting and compliance.
Chicago, Illinois
May 13, 2013
Grant Thornton LLP
U.S. member firm of Grant Thornton International Ltd
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
December 31,
(In thousands)
ASSETS
2012
2011
ASSETS
Cash and cash equivalents
Prepaid expenses and other assets
Accounts receivable, net
Related-party accounts receivable, net
Investments
Land held for sale, net
Land, building and equipment, net
Jerusalem property development
Beneficial interests in perpetual trusts
$ 18,381
2,124
23,977
182
77,558
9,448
10,977
7,697
$ 20,969
1,126
22,377
152
72,108
10,905
9,844
10,747
7,157
TOTAL ASSETS
$ 150,344
$ 155,385
$ 16,528
1,991
168
10,405
$ 18,700
1,712
10,803
10,642
29,092
41,857
11,672
45,917
11,618
45,016
57,589
56,634
41,448
22,215
35,626
21,268
121,252
113,528
$ 150,344
$ 155,385
LIABILITIES AND NET ASSETS
LIABILITIES
Accounts payable and accrued liabilities
Deferred revenue
Notes payable
Deferred lease payments
Total liabilities
NET ASSETS
Unrestricted
Undesignated
Board-designated
Total unrestricted
Temporarily restricted
Permanently restricted
Total net assets
TOTAL LIABILITIES AND NET ASSETS
The accompanying notes are an integral part of these statements.
7
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
CONSOLIDATED STATEMENT OF ACTIVITIES
For the year ended December 31, 2012
(In thousands)
Revenues and support
Contributions and support
Government and other grants
Corporate and foundation gifts
General
Jerusalem International YMCA
World Service campaign
Unrestricted
Temporarily
restricted
$
$
Total contributions and support
5,093
141
222
5,456
Financial support from member YMCAs
Program and service revenue
Jerusalem International YMCA program revenue
Royalties and other revenue
Interest and dividends
Net assets released from restrictions
$
24,351
52,496
5,969
4,878
2,387
1,038
21,904
Total revenues and support
19,714
3,209
275
1,153
Permanently
restricted
298
(21,904)
Total
407
-
$ 24,807
3,209
823
222
1,153
407
30,214
-
52,496
5,969
4,878
2,387
1,336
-
94,128
2,745
407
97,280
38,777
26,029
21,413
-
-
38,777
26,029
21,413
86,219
-
-
86,219
10,681
2,181
-
-
10,681
2,181
Total supporting services
12,862
-
-
12,862
Total expenses
99,081
-
-
99,081
Change in net assets from operations
(4,953)
2,745
407
(1,801)
5,908
-
3,077
-
540
8,985
540
5,908
3,077
540
9,525
955
5,822
947
7,724
56,634
35,626
21,268
113,528
22,215
$ 121,252
Expenses
Program activities
Social responsibility
Youth development
Healthy living
Total program activities
Supporting services
Management and general
Fund-raising
Non-operating activities
Net realized and unrealized gains on investments
Change in beneficial interests in perpetual trusts
Total non-operating activities
CHANGE IN NET ASSETS
Net assets at beginning of year
Net assets at end of year
$
The accompanying notes are an integral part of this statement.
8
57,589
$
41,448
$
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
CONSOLIDATED STATEMENT OF ACTIVITIES
For the year ended December 31, 2011
(In thousands)
Revenues and support
Contributions and support
Government and other grants
Corporate and foundation gifts
General
Jerusalem International YMCA
World Service campaign
Unrestricted
Temporarily
restricted
Permanently
restricted
$
$
$
Total contributions and support
4,344
92
421
366
5,223
Financial support from member YMCAs
Program and service revenue
Jerusalem International YMCA program revenue
Royalties and other revenue
Interest and dividends
Net assets released from restrictions
44,005
56,324
5,049
4,801
1,106
934
41,149
Total revenues and support
Expenses
Program activities
Consulting and other services to local associations
Awards and grants to associations
Jerusalem International YMCA
Activate America
Movement advancement and national positioning
Public policy and government relations
International movement strengthening
Innovation activities
Total program activities
Supporting services
Management and general
Fund-raising
Total supporting services
Total expenses
Changes in net assets from operations
Non-operating activities
Net realized and unrealized losses on investments
Change in beneficial interests in perpetual trusts
21,170
21,047
115
1,673
244
(41,149)
Total
477
-
$ 25,514
21,139
1,013
366
1,673
477
49,705
-
56,324
5,049
4,801
1,106
1,178
-
114,586
3,100
477
118,163
36,633
29,959
6,825
2,520
20,855
1,997
1,285
2,450
-
-
36,633
29,959
6,825
2,520
20,855
1,997
1,285
2,450
102,524
-
-
102,524
9,453
2,200
-
-
9,453
2,200
11,653
-
-
11,653
114,177
-
-
114,177
409
3,100
477
3,986
(1,458)
-
(905)
-
(534)
(2,363)
(534)
Total non-operating activities
(1,458)
(905)
(534)
(2,897)
CHANGE IN NET ASSETS
(1,049)
Net assets at beginning of year
2,195
57,683
Net assets at end of year
$
The accompanying notes are an integral part of this statement.
9
56,634
(57)
33,431
$
35,626
$
1,089
21,325
112,439
21,268
$ 113,528
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31,
(In thousands)
Cash flows from operating activities
Change in net assets
Adjustments to reconcile change in net assets to net cash
used in operating activities
Depreciation and amortization
Net realized and unrealized (gains) losses on investments
Change in beneficial interests in perpetual trusts
Permanently restricted contributions
Changes in operating assets and liabilities
Accounts payable and accrued liabilities
Accounts receivable
Deferred revenue and lease payments
Prepaid expenses and other assets
2012
2011
$ 7,724
$ 1,089
1,558
(8,985)
(540)
(407)
1,385
2,363
534
(477)
(2,172)
(1,600)
42
(998)
(5,342)
(5,037)
805
(75)
(5,378)
(4,755)
10,905
(1,371)
1,141
(1,163)
3,913
(407)
(1,119)
1,528
(596)
2,937
(477)
13,018
2,273
407
(10,635)
477
(4,272)
(10,228)
(3,795)
(2,588)
(6,277)
20,969
27,246
Cash and cash equivalents at end of year
$ 18,381
$ 20,969
Supplemental disclosure of cash flow information
Cash paid for interest
$
$
Net cash used in operating activities
Cash flows from investing activities
Disposal of land held for sale
Jerusalem property development
Jerusalem property development - arbitration award
Acquisitions of land, building and equipment, net
Sales of investments
Purchases of investments
Net cash provided by investing activities
Cash flows from financing activities
Permanently restricted contributions
Payments on notes payable
Net cash used in financing activities
NET DECREASE IN CASH AND
CASH EQUIVALENTS
Cash and cash equivalents at beginning of year
The accompanying notes are an integral part of these statements.
10
204
62
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
CONSOLIDATED STATEMENT OF FUNCTIONAL EXPENSES
For the year ended December 31, 2012
(In thousands)
Personnel costs
Awards and grants to associations
Purchased, contract or donated services
Conferences and meetings
Printing, publications and promotions
Occupancy
Business-related travel costs
Supplies
Equipment - expendable or rented
Volunteer costs
Business insurance
Provisions
Telecommunications
Depreciation and amortization
Postage and shipping
Financing costs
Social
responsibility
Program activities
Youth
Healthy
development
living
$
$
16,051
9,282
4,855
1,297
1,091
1,166
1,610
395
305
487
317
301
297
608
139
169
Miscellaneous
407
Total functional expenses
$
38,777
The accompanying notes are an integral part of this statement.
11
$
Total
11,468
5,198
4,012
729
209
980
1,200
281
247
314
201
153
192
400
94
118
$ 9,968
3,780
2,699
952
177
799
1,184
222
248
239
163
120
152
331
92
101
$ 37,487
18,260
11,566
2,978
1,477
2,945
3,994
898
800
1,040
681
574
641
1,339
325
388
233
186
826
26,029
$ 21,413
$ 86,219
Supporting services
Management
and general
Fund-raising
$
5,999
1,864
233
29
339
486
133
424
186
122
270
106
219
45
51
$
175
$
10,681
$
Total
Total
1,780
5
163
169
46
10
8
-
$ 7,779
1,864
233
34
502
655
179
424
186
122
270
116
219
53
51
$ 45,266
18,260
13,430
3,211
1,511
3,447
4,649
1,077
1,224
1,226
803
844
757
1,558
378
439
-
175
1,001
2,181
$ 12,862
$ 99,081
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
CONSOLIDATED STATEMENT OF FUNCTIONAL EXPENSES
For the year ended December 31, 2011
(In thousands)
Program services
Consulting
and other
services
to local
associations
Personnel costs
Awards and grants to associations
Purchased, contract or donated services
Business-related travel costs
Printing, publications and promotions
Occupancy
Conferences and meetings
Supplies
Equipment - expendable or rented
Volunteer costs
Business insurance
Provisions
Telecommunications
Depreciation and amortization
Postage and shipping
Organizational dues
Financing costs
$
Miscellaneous
21,107
690
5,344
2,780
215
1,252
1,289
488
489
765
338
281
561
498
84
198
88
Awards and
grants to
associations
$
166
Total functional expenses
$
The accompanying notes are an integral part of this statement.
12
36,633
3,921
20,885
1,640
553
141
419
1,333
140
170
125
92
117
129
140
28
102
24
Jerusalem
International
YMCA
$
$
29,959
3,728
24
851
58
61
663
27
203
625
3
63
45
277
1
37
159
Activate
America
$
$
6,825
1,221
75
555
208
38
15
97
85
41
6
28
13
46
43
11
13
7
Movement
advancement
and national
positioning
$
18
$
2,520
2,712
10
904
103
16,126
180
153
47
108
47
21
173
72
74
112
13
Supporting services
Public
policy and
government
relations
$
$
20,855
1,309
241
154
5
77
31
36
19
20
9
34
31
4
11
5
International
movement
strengthening
$
11
$
1,997
751
83
17
55
2
29
15
9
47
174
18
8
23
27
1
7
6
Innovation
activities
$
13
$
1,285
$
Total
1,538
313
40
49
90
9
18
252
24
11
36
36
4
13
6
$ 36,287
21,767
9,865
3,951
16,637
2,725
2,923
1,021
1,768
1,092
630
460
1,047
1,124
207
493
308
11
219
2,450
$ 102,524
Management
and general
Fund-raising
$
$
5,719
1,482
376
19
263
82
157
176
197
138
70
261
16
187
34
276
$
9,453
$
Total
Total
1,771
167
19
152
58
27
6
-
$ 7,490
1,482
543
38
415
82
215
176
197
138
70
27
261
22
187
34
$ 43,777
21,767
11,347
4,494
16,675
3,140
3,005
1,236
1,944
1,289
768
530
1,074
1,385
229
680
342
-
276
495
2,200
$ 11,653
$ 114,177
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2012 and 2011
(In thousands)
NOTE A - DESCRIPTION OF ORGANIZATION
The National Council of Young Men’s Christian Associations of the United States of America
and Affiliates and Jerusalem International YMCA (JIY) (collectively, Y-USA or the
Organizations) is an Illinois not-for-profit organization with headquarters in Chicago, Illinois.
As the national resource office for the nation’s 2,700 YMCAs, Y-USA’s basic objective is to
build the capacity of YMCAs to advance our cause of strengthening community through
youth development, healthy living and social responsibility. Youth development aims to
nurture the potential of every child and teen through programs such as childcare, education
and leadership, swim and camp. Healthy living programs aim to improve the nation’s health
and well-being through programs that focus on family time, well-being and fitness, sports
and recreation. Social responsibility incorporates giving back and providing support to our
neighbors with programs that include social services, global services, volunteerism and
advocacy.
Y-USA’s funding comes from various sources, the most significant being from YMCA
associations throughout the United States.
These associations are autonomous
corporations, separately incorporated in their respective states, have independent boards
and issue separate, individual financial statements, which are not included in the
accompanying consolidated financial statements.
Y-USA is governed by its Board of Directors (the National Board). Objectives, purposes,
powers and functions of Y-USA are performed, carried out and made effective by the
National Board.
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying consolidated financial statements have been prepared on the accrual
basis of accounting and include the accounts of Y-USA and its subsidiary, JIY. Interorganization balances and transactions have been eliminated in consolidation. JIY is
registered in Israel as a not-for-profit in accordance with the Association’s Law (1980).
The Investment Committee has the responsibility of overseeing and protecting the
endowment assets. Certain endowments and gifts contain restrictions that specify the use
of income and/or principal. All distributions from the endowment fund continue to be made
in accordance with the original donor restrictions and board designations and are accounted
for in accordance with accounting principles generally accepted in the United States of
America, adherence to Illinois law and the Uniform Prudent Management of Institutional
Funds Act (UPMIFA). All disbursements are made for the express purpose of furthering
YMCA work throughout the world.
These consolidated financial statements include the accounts and transactions of Y-USA and
JIY.
13
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
December 31, 2012 and 2011
(In thousands)
For the year ended December 31, 2012, Y-USA has changed the presentation of its
functional expenses. This change enables Y-USA to report its functional expenses that are
aligned with Y-USA’s strategic plan by each of the areas of focus. Accordingly, the
functional expenses have been presented in the three categories for social responsibility,
youth development and healthy living.
Net Assets
Net assets have been recorded and reported as changes in unrestricted, temporarily
restricted or permanently restricted net assets.
Unrestricted - Unrestricted net assets consist of resources that are available for use in
carrying out the mission of the Organizations and include those expendable resources that
have been designated for special use by the National Board.
Temporarily restricted - Temporarily restricted net assets represent those amounts that are
donor restricted with respect to purpose or time. When a donor restriction expires, that is,
when a stipulated time restriction ends or the purpose of a restriction is accomplished,
temporarily restricted net assets are reclassified to unrestricted net assets and reported in
the consolidated statement of activities as net assets released from restrictions.
Permanently restricted - Permanently restricted net assets result from contributions with
donor restrictions that mandate the original principal be invested in perpetuity.
Permanently restricted net assets include beneficial interests in perpetual trusts held by
third parties. The majority of the earnings from permanently restricted net assets are
available for the general use of the Organizations.
Revenues
In the absence of donor restrictions, contributions and bequests are considered to be
available for unrestricted use. All revenue is recognized in the period when the contribution,
pledge or unconditional promise to give is received.
Contributed Services
A substantial number of unpaid volunteers have made significant contributions of their time
in the furtherance of Y-USA’s activities. Such services do not meet the criteria for
recognition as contributions; therefore, their value is not reflected in the accompanying
consolidated financial statements.
Contributed services are reported as contributions if such services create or enhance nonfinancial assets or if they would have been purchased if not provided by contribution,
require specialized skills, and are provided by individuals possessing such specialized skills.
Contributed services are recognized at their estimated fair values at date of receipt with an
equal and offsetting amount in unrestricted functional expenses in the consolidated
statements of activities, resulting in no net impact on the change in net assets during the
year. Contributed services recognized related to consulting work were $400 and $-0- for
the years ended December 31, 2012 and 2011, respectively.
14
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
December 31, 2012 and 2011
(In thousands)
Awards and Grants to Associations
These grants represent amounts distributed to member and international YMCAs to assist
them in furthering their individual missions.
Cash and Cash Equivalents
Cash equivalents consist of short-term, highly liquid investments with maturities of three
months or less.
Investments
Publicly traded investments are recorded at fair value determined on the basis of closing
market prices or bid quotations. Other investments are recorded at fair value based on
Y-USA’s unit share of the fair value of the underlying investments. Purchases and sales of
investments are recorded on a trade-date basis. Dividend income is recorded on the
ex-dividend date. Net realized and unrealized gains and losses are reflected in nonoperating activities.
Accounts Receivable
Accounts receivable are due from member associations and other entities net of allowances
for uncollectible accounts. Y-USA determines its allowance for uncollectible accounts by
considering a number of factors, including the length of time receivables are past due,
Y-USA’s previous collection history, the member association’s or entity’s current ability to
pay its obligation to Y-USA, and the condition of the general economy and the industry as a
whole. Y-USA writes off accounts receivable when they become uncollectible, and the
payments subsequently received on such receivables are credited to the appropriate
allowance for uncollectible accounts.
Land, Building and Equipment
Land, building, equipment and leasehold improvements are recorded at cost. Depreciation
is provided using the straight-line method based on the estimated useful lives of the related
assets, ranging from three to thirty years. Amortization on leasehold improvements is
provided over the life of the lease. Y-USA’s fixed asset capitalization policy is to capitalize
long-lived assets with a value greater than $5.
Beneficial Interests in Perpetual Trusts
Y-USA has beneficial interests in certain perpetual trusts, which are held by third parties.
Y-USA recognizes contribution revenue equal to its proportionate share of the fair value of
the trust assets upon notification and determination that its right to receive benefits under
the agreement is unconditional and irrevocable. Changes in the fair value of Y-USA’s
interest in the trust assets are reflected as gains or losses in the consolidated statements of
activities in the period in which they occur. The distributions are recognized as investment
income.
15
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
December 31, 2012 and 2011
(In thousands)
Concentration of Credit Risk
Y-USA has certain financial instruments that subject it to potential credit risk. Those
financial instruments consist primarily of cash and cash equivalents. Y-USA maintains its
cash balance with financial institutions. At times, these balances may exceed the Federal
Deposit Insurance Corporation insured limits. Y-USA has not experienced any loss on these
accounts and believes there is no significant exposure of credit risk on cash and cash
equivalents.
Use of Estimates
Management of the Organizations has made certain estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the consolidated financial statements, and the reported amounts of
revenue and expenses during the year. Actual results could differ from those estimates.
Income Taxes
Y-USA adopted Accounting Standards Codification (ASC) 740-10 as of January 1, 2009.
ASC 740-10 clarifies the accounting for uncertainty in tax positions taken or expected to be
taken in a tax return, including issues relating to financial statement recognition and
measurement. This section provides that the tax effects from an uncertain tax position can
be recognized in the financial statements only if the position is more likely than not to be
sustained if the position were to be challenged by a taxing authority. The assessment of the
tax position is based solely on the technical merits of the position, without regard to the
likelihood that the tax position may be challenged.
Y-USA is exempt from income tax under Internal Revenue Code (IRC) Section 501(c)(3) and
is only subject to tax on income unrelated to its exempt purposes, unless that income is
otherwise excluded by the IRC. The tax years ended 2009, 2010, 2011 and 2012 are still
open to audit for both federal and state purposes. The adoption of ASC 740-10 did not have
any impact on the Organizations’ financial statements. Y-USA had no liability for uncertain
tax positions as of December 31, 2012 and 2011.
Fair Value Measurements
The Financial Accounting Standards Board (FASB) has issued guidance that defines fair
value, establishes a framework for measuring fair value, specifies a fair value hierarchy
based on the inputs used to measure fair value, and specifies disclosure requirements for
fair value measurements. The guidance also maximizes the use of observable inputs by
requiring that observable inputs be used when available.
Observable inputs are inputs that market participants would use in pricing an asset or
liability based on market data obtained from independent sources. Unobservable inputs
reflect assumptions that market participants would use in pricing the asset or liability based
on the best information available in the circumstances. The fair value hierarchy is broken
down into three levels based on the transparency of inputs as follows:
16
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
December 31, 2012 and 2011
(In thousands)
Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of
the report date. A quoted price for an identical asset or liability in an active market
provides the most reliable fair value measurement because it is directly observable to the
market.
Level 2 - Pricing inputs are other than quoted prices in active markets, which are either
directly or indirectly observable as of the report date, as well as investments measured at
net asset value (NAV), or its equivalent, that are redeemable at or near the reporting date.
The nature of these securities includes investments for which quoted prices are available but
which are traded less frequently and investments that are fair valued using securities, the
parameters of which can be directly observed.
Level 3 - Assets that lack sufficient pricing observability as of the report date, and
investments measured at NAV or its equivalent asset value that are not redeemable at or
near the reporting date. These assets are measured using management’s best estimate of
fair value, where the inputs into the determination of fair value are not observable and
require significant management judgment or estimation.
Inputs are used in applying the various valuation techniques and broadly refer to
assumptions that market participants use to make valuation decisions, including
assumptions about risk. Inputs may include price information, volatility statistics, specific
and broad credit data, liquidity statistics and other factors. A financial instrument’s level
within the fair value hierarchy is based on the lowest level of any input that is significant to
the fair value measurement. However, the determination of what constitutes observable
requires significant judgment by the Organizations. The Organizations consider observable
data to be market data that is readily available, regularly distributed or updated, reliable
and verifiable, not proprietary, and provided by independent sources that are actively
involved in the relevant market. The categorization of a financial instrument within the fair
value hierarchy is based on the pricing transparency of the instrument and does not
necessarily correspond to the Organizations’ perceived risk of that instrument.
Investments for which values are based on quoted market prices in active markets, and are
therefore classified within Level 1, include mutual funds, common and preferred stock, and
short-term money market mutual funds. The Organizations do not adjust the quoted price
for such instruments, even in situations where the Organizations hold a large position and a
sale could reasonably impact the quoted price.
Investments that trade in markets that are not considered to be active, but that are valued
based on quoted market prices, dealer quotations or alternative pricing sources supported
by observable inputs, are classified within Level 2. These include certain commingled funds
and limited partnerships. As Level 2 investments include positions that are not traded in
active markets and/or subject to transfer restrictions, valuations may be adjusted to reflect
illiquidity and or/non-transferability, which are generally based on available market
information. Also included in Level 2 are investments measured using an NAV per share or
its equivalent that may be redeemed at that NAV at the reporting date or in the near term,
which is generally considered to be within 90 days.
17
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
December 31, 2012 and 2011
(In thousands)
Investments classified within Level 3 have significant unobservable inputs as they trade
infrequently or not at all. Level 3 instruments include certain limited partnerships and an
investment with the Jerusalem Foundation. When observable prices are not available for
these investments, the Organizations use one or more valuation techniques (e.g., the
market approach, the income approach or the cost approach) for which sufficient and
reliable data is available. Also included in Level 3 are investments measured using an NAV
per share or its equivalent that will not be redeemed at that NAV at the reporting date or in
the near term, or for which redemption at that NAV is uncertain due to lockup periods or
other investment restrictions.
Y-USA’s beneficial interests in perpetual trusts held by others are valued using the fair value
of the assets in the trust as a practical expedient, unless facts and circumstances indicate
that the fair values of the assets in the trust differ from the fair value of the beneficial
interests. Perpetual trusts held by others are classified within Level 3 of the fair value
hierarchy.
Y-USA adopted new guidance issued by the FASB that clarifies existing disclosures and
requires new disclosures about fair value measurements. The requirement that purchases,
sales, issuances and settlements be presented gross in the Level 3 reconciliation was
adopted in 2011. Since this guidance only amends the disclosure requirements, it did not
have any impact on Y-USA’s financial statements.
Transfers between levels are recognized at the end of the accounting period. The transfers
out of Level 3 into Level 2 were the result of a notice of intent to redeem shares which
requires a 100-day notice. In September 2012, Y-USA exercised its option to redeem 100%
of its Class B shares. The fair value of the redemption is $1,581.
The carrying value of Y-USA’s cash and cash equivalents, invested cash in pending
securities, accounts and pledges receivable, accounts payable, accrued liabilities and notes
payable approximate their fair values due to their short-term nature.
Recently Adopted Accounting Pronouncement
In May 2011, the FASB issued Accounting Standards Update (ASU) No. 2011-04, “Fair Value
Measurements (Topic 820): Amendments to Achieve Common Fair Value Measurement and
Disclosure Requirements in US GAAP and IFRS.” ASU No. 2011-04 clarifies or changes
certain fair value measurement principles and enhances the disclosure requirements,
particularly for Level 3 fair value measurements. Y-USA adopted ASU No. 2011-04 as of
December 31, 2012, and has included the required disclosures in the footnotes. ASU
No. 2011-04 had no impact on Y-USA’s financial position or results of operations.
Prior-Year Revisions
Certain amounts previously reported have been revised to conform to the current-year
presentation.
18
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
December 31, 2012 and 2011
(In thousands)
NOTE C - ACCOUNTS RECEIVABLE
Accounts receivable consist of the following at December 31:
Pledges due in varying amounts through 2014, noninterest-bearing, with interest imputed at 5%
Present value discount
Total pledges
YMCA dues
Other trade receivables
Related-party accounts receivable
Total accounts receivable
Less allowance for doubtful accounts
Accounts receivable, net
2012
2011
$15,824
(154)
$15,192
(451)
15,670
14,741
6,070
6,328
182
5,961
6,181
152
28,250
27,035
(4,091)
(4,506)
$24,159
$22,529
Pledges receivable at December 31, 2012 and 2011, are due in future periods as follows:
Less than one year
One to five years
Total pledges
Less
Provision for uncollectible accounts
Discount to present value
$13,677
2,147
$10,043
5,149
15,824
15,192
$15,562
Pledges are restricted for the following purposes:
YMCA
YMCA
YMCA
YMCA
YMCA
2011
(108)
(154)
Pledges, net
·
·
·
·
·
2012
Activate America initiatives
child care initiatives
family initiatives
work in selected immigrant communities
of the USA strategic plan initiatives
19
(161)
(451)
$14,580
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
December 31, 2012 and 2011
(In thousands)
NOTE D - ALLOWANCE FOR DOUBTFUL ACCOUNTS
Changes in Y-USA’s allowance for doubtful accounts receivable and financial support are as
follows for the years ended December 31:
Beginning balance
Provision for bad debts
Accounts written off
Total allowance for doubtful accounts
2012
2011
$ 4,506
680
(1,095)
$4,231
530
(255)
$ 4,091
$4,506
NOTE E - INVESTMENTS
At December 31, 2012 and 2011, investments comprised the following:
Publicly traded
Mutual funds
Common and preferred stock
Short-term money market mutual fund
Total publicly traded
Other investments
Commingled funds
Invested cash in pending security purchases
Limited partnership
Jerusalem Foundation
Total other investments
Total investments
20
2012
2011
$ 9,675
40,460
180
$13,117
34,212
6,870
50,315
54,199
21,175
2,357
3,146
565
7,079
7,500
2,815
515
27,243
17,909
$77,558
$72,108
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
December 31, 2012 and 2011
(In thousands)
NOTE F - FAIR VALUE MEASUREMENTS
The following table summarizes assets by fair value measurement level as of December 31:
Level 1
Mutual funds
Common and preferred stock
Short-term money market mutual fund
Commingled funds
Limited partnership
Jerusalem Foundation
Total investments at fair value
2012
Level 2
Level 3
$ 9,675
40,460
180
-
$
21,175
1,581
-
$50,315
$22,756
$
Total
1,565
565
$ 9,675
40,460
180
21,175
3,146
565
$2,130
75,201
Invested cash in pending security purchases
2,357
Total investments
$77,558
Beneficial interests in perpetual trusts
$7,697
Level 1
Mutual funds
Common and preferred stock
Short-term money market mutual fund
Commingled funds
Limited partnership
Jerusalem Foundation
Total investments at fair value
2011
Level 2
Level 3
$13,117
34,212
6,870
-
$
7,079
-
$54,199
$ 7,079
$
$ 7,697
Total
2,815
515
$13,117
34,212
6,870
7,079
2,815
515
$3,330
64,608
Invested cash in pending security purchases
7,500
Total investments
$72,108
Beneficial interests in perpetual trusts
$7,157
$ 7,157
All net realized and unrealized gains or losses in the table above are reflected in the
accompanying consolidated statements of activities.
21
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
December 31, 2012 and 2011
(In thousands)
Investments valued at NAV as of December 31, 2012 and 2011, consisted of the following:
Fair
value
Limited partnership
Commingled funds
Commingled funds
Commingled funds
Commingled funds
Commingled funds
$ 3,146
8,774
2,023
5,406
3,189
1,782
$
-
$24,320
$
-
Fair
value
Commingled funds
Limited partnership
Unfunded
commitments
Unfunded
commitments
$ 7,079
2,815
$
-
$ 9,894
$
-
2012
Redemption
frequency
Annual
Anytime
Anytime
Anytime
Monthly
Quarterly
Redemption
notice period
100 days
Trade plus five days
Trade plus 7 days
Trade plus 10 days
Trade plus 30 days
Trade plus 20 days
2011
Redemption
frequency
Anytime
Annually
Redemption
notice period
Trade plus five days
100 days
The changes in Level 3 assets for the years ended of December 31, 2012 and 2011,
consisted of the following:
Balance,
December 31,
2011
Limited partnership
Beneficial interests in
perpetual trust funds
Jerusalem Foundation
Total Level 3
assets
$ 2,815
Additions
$
7,157
515
$10,487
-
$
-
22
Balance,
December 31,
2012
Transfers
Change
in value
$(1,581)
$ 331
$ 1,565
540
50
7,697
565
$ 921
$ 9,827
$(1,581)
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
December 31, 2012 and 2011
(In thousands)
Balance,
December 31,
2010
Limited partnership
Beneficial interests in
perpetual trust funds
Jerusalem Foundation
Total Level 3
assets
$ 2,915
Additions
$
7,691
602
$11,208
-
Distributions
$
$
-
$
-
Change
in value
Balance,
December 31,
2011
$(100)
$ 2,815
(100)
(534)
13
7,157
515
(100)
$(621)
$10,487
Commingled Funds
Harris Associates L.P. (Harris)
Harris is an international value-oriented manager.
All of the underlying assets are
marketable securities. Harris’ strategy is to invest in companies that trade at a substantial
discount to their underlying business value and are run by managers that think as owners.
By purchasing quality businesses at a discount to underlying value, the managers hope to
produce superior performance with below-average risk. The fund may invest up to 15% of
the fund’s assets in emerging markets. The fund utilizes the MSCI EAFE benchmark. The
fund allows for monthly redemptions with 30 days’ notice. Proceeds are payable within 30
days of withdrawal. In the first year of investment, any withdrawal is subject to a 2%
charge, which may be waived at the sole discretion of the general partner. The fair value of
the fund was $3,189 and $-0- at December 31, 2012 and 2011, respectively.
Barings International Equity (Barings)
The Barings Focused International Plus Equity Fund is an international fund that employs a
“Growth as a Reasonable Price” investment style. The fund seeks to identify unrecognized
growth by investing in companies where earnings growth prospects are better than
consensus, and whose earnings growth is not fully discounted. The fund may have up to
20% invested in emerging markets but, in recent periods, has been below 15%. The fund
utilizes the MSCI EAFE benchmark. All of the underlying assets are marketable securities.
The fund allows for monthly withdrawals with 10 business days’ written notice, and will be
payable within five business days. The fair value of the fund was $5,406 and $-0- at
December 31, 2012 and 2011, respectively.
Prudential Institutional Core Plus Fixed Income (Prudential)
Prudential is a fixed income portfolio. All of the underlying assets are marketable securities.
This is an actively managed strategy targeting +150 basis points over the Barclays
Aggregate benchmark. Both benchmark and non-benchmark sectors are used in the
portfolio, with an emphasis on credit-oriented sectors.
The fund, in aggregate, is
investment-grade. On average, approximately 65% of the portfolio is rated A3/A- or better.
The fund allows for liquidity upon five days’ written notice. The fair value of the fund was
$6,848 and $7,079 at December 31, 2012 and 2011, respectively.
23
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
December 31, 2012 and 2011
(In thousands)
Oppenheimer Funds, Inc.
The OFI Institutional Emerging Markets Equity Fund, LP is an emerging markets fund. The
fund invests in common stocks of companies whose principal activities are in at least three
developing markets. The fund invests in growth companies in any market capitalization.
The selection process takes into account some top-down thematic trends: Mass Affluence,
Restructuring, Technology and Trading.
The fund is benchmarked against the MSCI
Emerging Markets Index. All of the underlying assets are marketable securities. The fund
allows for daily withdrawals with three to five days’ written notice, and will be payable next
day. The fair value of the fund was $1,926 and $-0- at December 31, 2012 and 2011,
respectively.
Polunin Capital Partners Limited
The Polunin Emerging Markets fund invests in emerging market companies that have strong
balance sheets and whose value relative to replacement costs are compelling based on
Polunin’s proprietary evaluation process. Trading liquidity is a key consideration. Typically,
the portfolio comprises up to 100 stocks across 25 countries and 20 industrial sectors, and
the majority of the portfolio is made up of out-of-index stocks at any point in time. This
fund des not hedge currency exposure. The fund is benchmarked against the MSCI
Emerging Markets Index. All of the underlying assets are marketable securities. The fund
allows for monthly withdrawals with seven business days’ written notice, and will be payable
within five business days. The fair value of the fund was $2,023 and $-0- at December 31,
2012 and 2011, respectively.
Permal Fixed Income Holdings
This fund is registered with the U.S. Securities and Exchange Commission. The objective of
the fund is to achieve above-average returns over time while maintaining a lower risk profile
than traditional investments. The pool is globally focused and the investments are both
credit spread and non-credit spread related. The credit spread strategies include Fixed
Income - Hedged and Fixed Income - Developed and Emerging Markets. The non-credit
spread strategies include Global Macro, Relative Value Arbitrage and Event Driven
strategies. The NAV of the fund is determined monthly. The fund allows for quarterly
liquidity with 20 days’ written notice. The fair value of the fund was $1,782 and $-0- at
December 31, 2012 and 2011, respectively.
Limited Partnership
The Investment Fund for Foundations (TIFF) Absolute Return Pool
TIFF is a non-profit organization, the mission of which is to improve the investment returns
of endowed non-profit organizations. The objective of the Absolute Return Pool is to
generate, over three-year periods, an annualized return greater than 91-day treasury bills
plus 5%. The pool holds domestic and international holdings. The NAV of the fund is
determined monthly using the market value or fair value if market data is unavailable, of all
of the underlying securities. The fund allows liquidity based on the class of shares held.
There is a three-year initial lock on Class A shares and an initial one-year lock on Class B
24
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
December 31, 2012 and 2011
(In thousands)
shares. Redemption is annual. Notice of intent to redeem is required in September (100
days’ notice), with distribution the following January. The fair value of the fund was $3,146
and $2,815 at December 31, 2012 and 2011, respectively.
NOTE G - LAND, BUILDING AND EQUIPMENT
Land, building and equipment consist of the following at December 31:
2011
2012
Land
Building
Leasehold improvements
Equipment
$
346
1,419
11,546
16,110
Total land, building and equipment
Less depreciation and amortization
Land, building and equipment, net
$
346
1,419
11,513
14,981
29,421
28,259
(19,973)
(18,415)
$
9,448
$
9,844
NOTE H - JERUSALEM PROPERTY DEVELOPMENT
This project involves the expansion of the JIY YMCA facilities and the construction of
residential units, an underground parking structure and retail space. In December 1999, a
contract was signed with an Israeli developer to carry out the project. The contract,
amended in 2002, called for an up-front payment of $9,000 followed by payments of $250
quarterly through 2006. Y-USA has received a total of $10,750 to date. The developer has
exercised its right to withhold the remaining balances ($3,750) pending the final
determination of Y-USA’s tax liability. In addition to the cash payment, the developer will
construct and deliver to Y-USA, as custodian, a new sports center, a portion of the parking
structure and related improvements. Y-USA has received assurance of performance of the
developer through bank guarantees. The developer has received a 150-year lease on the
land, ownership of the condominiums and a portion of the parking structure. Revenue will
be recognized over the 150-year lease period. The future revenue is included in deferred
lease payments totaling $10,405 and $10,642 as of December 31, 2012 and 2011,
respectively. Y-USA has also invested $10,977 and $10,747 in this project through
December 31, 2012 and 2011, respectively.
Y-USA has been in legal dispute with the developer of a wellness facility and parking
structure since 2008 in Jerusalem, Israel. This dispute is the result of a 1998 agreement to
exchange a long-term land lease for a facility and $14,000 in cash. As of April 2013, the
developer still owed Y-USA $3,800. Y-USA received arbitration awards for the delays and
25
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
December 31, 2012 and 2011
(In thousands)
arbitration expenses of $1,411 and $1,528 for 2012 and 2011 respectively. The wellness
facility was substantially completed in early 2012, and possession of the wellness facility
and parking structure was given to Y-USA and JIY on March 15, 2012. The developer has
secured certain warranties and completion with bank guarantees to Y-USA.
It is the intention of JIY to open the wellness facility as soon as the final modifications are
completed. The facility will be an operating asset of JIY.
NOTE I - NOTES PAYABLE
Notes payable consisted of the following at December 31:
2012
Note payable for the Three Arches Hotel at an interest rate
of LIBOR plus 1.5%, with principal and interest
payments due through December 2016
2011
$143
$153
25
50
Mortgage payable for purchase of land at an interest rate
of LIBOR plus 0.7%, with interest payments due
quarterly and principal due on July 28, 2012
-
6,000
Note payable at an interest rate of LIBOR plus 1.5%, with
interest payments due quarterly and principal due on
December 10, 2013
-
4,600
$168
$10,803
Note payable at an interest rate of 3.25%, with principal and
interest payments due annually through August 31, 2013
Total notes payable
Maturities of the notes payable as of December 31, 2012, are as follows:
2013
2014
2015
2016
$ 53
38
38
39
$168
The covenant related to the $6,000 note, collateralized by the land held for sale, required
that Y-USA maintain a debt service coverage ratio greater than 1.5 and a liquidity ratio
greater than 0.06 to be in compliance. The covenant related to the $4,600 note required
Y-USA to maintain tangible assets in an amount not less than $90,000, as well as
unrestricted cash and investment balance of at least $30,000. Y-USA was in compliance
with all covenants related to its debt until the sale of the property.
26
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
December 31, 2012 and 2011
(In thousands)
NOTE J - LETTERS OF CREDIT
Y-USA has elected to assume the risk of a $1,000 deductible on its general liability
insurance coverage. At December 31, 2012, Y-USA maintained unsecured, irrevocable
letters of credit in the amount of $150 to secure the $1,000 deductible on its general
liability coverage. No claims have been made against these letters of credit.
As of December 31, 2011, Y-USA is no longer the obligor of letters of credit issued by a
bank following the successful commutation of Y-Mutual. On April 8, 2011, Y-Mutual’s board
of directors voted to commute the remaining insurance liability to Discover Reinsurance
Company. Subsequently, Y-Mutual, without any remaining liabilities, was de-registered as a
Bermuda entity and closed.
Y-USA paid $4,600 to Y-Mutual in order to fund the
commutation and expenses to close Y-Mutual’s operations. Y-Mutual officially ceased being
an entity in November 2011. As of December 31, 2012, Y-Mutual has been successfully
commuted.
NOTE K - BOARD-DESIGNATED NET ASSETS
At December 31, 2012 and 2011, board-designated net assets consisted of the following:
Armed services work
Y-USA board designated
International work
Advancing our cause
Education and training
Other domestic work
Total board-designated net assets
27
2012
2011
$34,206
3,073
5,438
1,912
803
485
$31,890
3,073
5,059
3,762
675
557
$45,917
$45,016
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
December 31, 2012 and 2011
(In thousands)
NOTE L - TEMPORARILY RESTRICTED NET ASSETS
At December 31, 2012 and 2011, temporarily restricted net assets were available for the
following purposes:
Activate America
Specific grant programs
International work
Other programs
Specific sponsored programs
Armed services work
Other scholarship
Time restricted
World Service campaign
Geographically restricted domestic work
Jerusalem work
J.R. Mott Scholarship
Total temporarily restricted net assets
2012
2011
$21,354
4,377
2,357
1,932
1,357
2,411
255
2,934
997
744
331
2,399
$ 8,455
13,756
2,108
1,999
1,097
2,204
185
1,734
1,187
626
117
2,158
$41,448
$35,626
Net assets were released from donor restrictions by incurring expenses satisfying the
purpose restriction specified by donors as follows:
Specific grant programs
Specific sponsorship programs
Activate America
Other programs
World Service campaign
Scholarships
28
2012
2011
$15,142
2,256
2,778
1,389
339
$20,775
7,039
9,445
1,326
1,864
700
$21,904
$41,149
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
December 31, 2012 and 2011
(In thousands)
NOTE M - PERMANENTLY RESTRICTED NET ASSETS
Permanently restricted net assets are restricted as investments in perpetuity and include
the beneficial interests in perpetual trusts, with restrictions specified by donors and
consisting of the following at December 31:
Endowments
Beneficial interests in perpetual trusts
Other
Total permanently restricted net assets
2012
2011
$14,317
7,697
201
$14,111
7,157
-
$22,215
$21,268
The following table illustrates the purpose of the earnings of permanently restricted net
assets at December 31:
Unrestricted
International work
Time-restricted endowment
Specific programs
Scholarships
Jerusalem work
Armed services work
Total permanently restricted net assets
2012
2011
$ 7,055
3,939
2,459
1,566
1,707
4,575
914
$ 6,486
3,862
2,259
1,566
1,707
4,489
899
$22,215
$21,268
NOTE N - ENDOWMENTS
Y-USA’s endowment consists of various individual funds established for different purposes
as detailed above, but primarily to support YMCA programs worldwide. The endowment
consists of donor-restricted endowment funds and board-designated endowments. Net
assets associated with the endowment funds are classified and reported based on the
existence or absence of donor-imposed restrictions.
UPMIFA, as enacted by the state of Illinois, applies to Y-USA’s donor-restricted endowment
funds. As required by UPMIFA, Y-USA accounts for endowment net assets by preserving the
fair value of the original gift as of the gift date of the donor-restricted endowment fund
absent explicit donor stipulations to the contrary.
As a result, Y-USA classifies as
permanently restricted net assets (1) the original value of gifts donated to the permanent
endowment, (2) the original value of subsequent gifts to the permanent endowment and
(3) 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
29
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
December 31, 2012 and 2011
(In thousands)
remaining portion of the donor-restricted endowment fund that is not classified in
permanently restricted net assets is classified as temporarily restricted net assets, according
to donor stipulations, until those amounts are appropriated for expenditure by management
for the donor-stipulated purpose. Y-USA considers the following factors in making a
determination to appropriate or accumulate donor-restricted endowment funds:
·
The duration and preservation of the fund.
·
The purpose of Y-USA and the donor-restricted endowment fund.
·
General economic conditions.
·
The possible effects of inflation and deflation.
·
The expected total return from income and the appreciation of investments.
·
Other resources of Y-USA.
·
The investment policies of Y-USA.
From time to time, the fair value of assets associated with individual donor-restricted
endowment funds may fall below the level the donor requires the fund to retain as a fund of
perpetual duration. Deficiencies of this nature are reported in unrestricted net assets of
$592 and $856 as of December 31, 2012 and 2011, respectively. These deficiencies
resulted from unfavorable market fluctuations that occurred shortly after the investment of
new permanently restricted contributions and continued appropriation for certain programs
that was deemed prudent by the board of directors.
Y-USA has 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. Under this policy, as
approved by the board of trustees, the endowment assets are invested in a manner that is
intended to provide adequate liquidity, maximize returns on all funds invested and achieve
full employment of all available funds as earning assets. Y-USA has an active Investment
Committee that meets regularly to ensure that the objectives of the investment policies are
met, and that the strategies used to meet the objectives are in accordance with the
investment policies.
The board of directors has adopted a spending policy calculated as 5% of the funds’
28-quarter rolling average balance, with a cap of no more than 6% of the funds’ current
market value as of June 30. In establishing spending policy, the board of directors
considered the long-term expected return on its endowment. Over the long term, the board
of directors expects the current spending policy to allow its endowment to grow at an
average of 4% annually. This is consistent with Y-USA’s objective of maintaining the
purchasing power of the endowment assets held in perpetuity or for a specified term, as
well as to provide additional real growth through new gifts and investment return.
30
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
December 31, 2012 and 2011
(In thousands)
Endowment net assets composition by type of fund as of December 31, 2012, consisted of
the following:
Unrestricted
Internally designated endowment
funds
Donor-restricted endowment
funds
Board-designated endowment
funds
Total funds
$10,528
Temporarily
restricted
-
$
Total
-
$10,528
12,076
14,317
25,801
40,342
-
-
40,342
$50,278
$12,076
$14,317
$76,671
(592)
$
Permanently
restricted
During the year ended December 31, 2012, Y-USA had the following endowment-related
activities:
Unrestricted
Endowment net assets,
beginning of year
Investment return
Investment income
Net appreciation (realized and
unrealized)
Total investment return
Contributions and additions
Other changes
Appropriation of endowment
assets for expenditures
Endowment net assets, end of
year
Temporarily
restricted
Permanently
restricted
Total
$47,263
$ 9,900
$14,111
$71,274
334
105
-
439
5,875
3,077
-
8,952
6,209
3,182
-
9,391
-
-
206
206
(3,194)
$50,278
31
(1,006)
$12,076
$14,317
(4,200)
$76,671
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
December 31, 2012 and 2011
(In thousands)
Endowment net assets composition by type of fund as of December 31, 2011, consisted of
the following:
Unrestricted
Internally designated endowment
funds
Donor-restricted endowment
funds
Board-designated endowment
funds
Total funds
$10,528
Temporarily
restricted
-
$
Total
-
$10,528
9,900
14,111
23,155
37,591
-
-
37,591
$47,263
$9,900
$14,111
$71,274
(856)
$
Permanently
restricted
During the year ended December 31, 2011, Y-USA had the following endowment-related
activities:
Unrestricted
Endowment net assets,
beginning of year
Investment return
Investment income
Net depreciation (realized and
unrealized)
Total investment return
Contributions and additions
Other changes
Appropriation of endowment
assets for expenditures
Endowment net assets, end of
year
Temporarily
restricted
Permanently
restricted
Total
$50,912
$11,474
$13,632
$76,018
511
161
-
672
(1,490)
(905)
-
(2,395)
(979)
(744)
-
(1,723)
-
(2,670)
$47,263
-
(830)
$ 9,900
479
$14,111
479
(3,500)
$71,274
NOTE O - RETIREMENT PLAN
Y-USA participates in a defined contribution, individual account, money purchase retirement
plan that is administered by the YMCA Retirement Fund (a separate corporation). This plan
is for the benefit of all eligible professional and support staff of Y-USA who qualify under
applicable participation requirements.
32
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
December 31, 2012 and 2011
(In thousands)
The YMCA Retirement Fund is operated as a church pension plan and is a not-for-profit, taxexempt, state of New York corporation. Participation is available to all duly organized and
recognized YMCAs in the United States.
As a defined contribution plan, the YMCA
Retirement Fund has no unfunded benefit obligations.
In accordance with the agreement with the YMCA Retirement Fund, Y-USA and employee
contributions are a percentage of the participating employees’ salaries, paid for by Y-USA,
and are remitted to the YMCA Retirement Fund monthly. Y-USA contributions charged to
retirement expense were $3,367 and $3,316 for the years ended December 31, 2012 and
2011, respectively.
NOTE P - COMMITMENTS AND CONTINGENCIES
Minimum rental commitments for office space and office equipment under operating leases
in effect as of December 31, 2012, are as follows:
Payable in years ending December 31,
2013
2014
2015
2016
2017
Thereafter
$ 1,731
1,755
1,800
1,768
1,621
13,226
Total commitments
$21,901
Rental expense related to these operating leases was $2,336 and $2,313 for the years
ended December 31, 2012 and 2011, respectively.
Member associations are separate autonomous corporations, the operations of which are not
under the control of Y-USA. However, Y-USA has, on occasion, been included as a
defendant in litigation arising from incidents at member associations. Y-USA has generally
been dismissed from these cases or settled within its insurance limits. In addition, litigation
has been filed against Y-USA as the sole defendant for personal injury, intellectual property
and human resource matters, and there is potential litigation pending against a related
entity.
Counsel, named by Y-USA insurers during the discovery process, is normally unable to
express an opinion as to the liability and damage aspects of the cases. If Y-USA were to be
held liable, it is possible that the plaintiff may, to the extent that the liability of Y-USA
exceeds its insurance coverage, attempt enforcement action against the funds of Y-USA. It
is the opinion of management that the outcome of any present litigation matters will not
materially affect the net assets of Y-USA.
33
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
December 31, 2012 and 2011
(In thousands)
NOTE Q - SUBSEQUENT EVENTS
Y-USA evaluated its December 31, 2012, financial statements for subsequent events
through May 13, 2013, the date the financial statements were available to be issued.
Y-USA is not aware of any subsequent events that would require recognition or disclosure in
the financial statements.
34
SUPPLEMENTARY INFORMATION
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
CONSOLIDATING STATEMENT OF FINANCIAL POSITION
December 31, 2012
(In thousands)
ASSETS
Y-USA
JIY
Eliminations
Consolidated
ASSETS
Cash and cash equivalents
Prepaid expenses and other assets
Accounts receivable, net
Related-party accounts receivable, net
Investments
Land, building and equipment, net
Jerusalem property development
Beneficial interests in perpetual trusts
$ 18,033
2,101
23,422
182
77,558
8,431
10,977
7,697
$
348
23
615
1,017
-
$
(60)
-
$
18,381
2,124
23,977
182
77,558
9,448
10,977
7,697
TOTAL ASSETS
$ 148,401
$ 2,003
$
(60)
$
150,344
$ 11,364
1,648
25
10,405
$ 5,224
343
143
-
$
(60)
-
$
16,528
1,991
168
10,405
23,442
5,710
15,517
45,917
(3,845)
-
-
11,672
45,917
61,434
(3,845)
-
57,589
-
41,448
22,215
-
121,252
LIABILITIES AND NET ASSETS
LIABILITIES
Accounts payable and accrued liabilities
Deferred revenue
Notes payable
Deferred lease payments
Total liabilities
NET ASSETS
Unrestricted
Undesignated
Board-designated
Total unrestricted
Temporarily restricted
Permanently restricted
Total net assets
TOTAL LIABILITIES AND
NET ASSETS
41,310
22,215
124,959
$ 148,401
36
(60)
138
(3,707)
$ 2,003
$
(60)
29,092
$
150,344
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
CONSOLIDATING STATEMENT OF ACTIVITIES
For the year ended December 31, 2012
(In thousands)
Y-USA
JIY
Eliminations
Consolidated
$
$
Revenues and support
Contributions and support
The National Fund Inc. grants
Government and other grants
Corporate and foundation gifts
General
Jerusalem International YMCA
World Service campaign
$
Total contributions and support
3,993
24,807
3,209
994
1,153
$
207
722
-
(4,200)
(171)
(500)
-
34,156
929
52,496
5,969
2,328
1,336
4,878
59
-
96,285
5,866
(4,871)
97,280
41,535
23,978
19,362
2,113
2,051
2,051
(4,871)
-
38,777
26,029
21,413
84,875
6,215
(4,871)
86,219
10,681
2,181
-
-
10,681
2,181
Total supporting services
12,862
-
-
12,862
Total expenses
97,737
6,215
Change in net assets from operations
(1,452)
Financial support from member YMCAs
Program and service revenue
Jerusalem International YMCA program revenue
Royalties and other revenue
Interest and dividends
Total revenues and support
Expenses
Program activities
Social responsibility
Youth development
Healthy living
Total program activities
Supporting services
Management and general
Fund-raising
Non-operating activities
Net realized and unrealized gains on investments
Change in beneficial interests in perpetual trusts
(4,871)
24,807
3,209
823
222
1,153
30,214
-
52,496
5,969
4,878
2,387
1,336
(4,871)
(349)
99,081
-
(1,801)
8,985
540
-
-
8,985
540
Total non-operating activities
9,525
-
-
9,525
CHANGE IN NET ASSETS
8,073
(349)
-
7,724
116,886
(3,358)
-
113,528
$ 124,959
$ (3,707)
Net assets at beginning of year
Net assets at end of year
37
$
-
$
121,252
SINGLE AUDIT REPORTS
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year ended December 31, 2012
Federal
CFDA
number
Federal grantor/pass-through grantor/program title
U.S. Department of Health and Human Services
Centers for Disease Control and Prevention: Investigations
and Technical Assistance
Passed through
National Association of Chronic Disease Directors Centers
for Disease Control and Prevention: Investigations
and Technical Assistance
Pass-through
entity or
contract
identifying
number
$ 4,647,916
93.283
93.283
Federal
expenditures
1062012/0792012
Total
176,855
4,824,771
PPHF 2012: Community Transformation Grants and National
Dissemination and Support for Community Transformation
Grants - financed solely by 2012 Prevention and Public Health Funds
93.531
1,391,232
Health Care Innovation Awards (HCIA)
93.610
389,216
PPHF 2012: Chronic Disease Innovation Grants - financed solely
by 2012 Prevention and Public Health Funds
93.739
63,450
PPHF 2012: Racial and Ethnic Approaches to Community Health
Program financed solely by 2012 Prevention and Public
Health Funds
93.738
41,684
Passed through
University of Colorado Denver
Research on Healthcare Costs, Quality and Outcomes
Northwestern University
Assistance Programs for Chronic Disease Prevention
and Control
National Association of Chronic Disease Directors
Chronic Diseases: Research, Control, and Prevention
Total expenditures of federal awards
93.226
FY11 219 005
93.945
60030231 YMCA
93.068
1042012
114,222
15,877
2,628
$ 6,843,080
The accompanying notes are an integral part of this schedule.
39
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year ended December 31, 2012
NOTE A - NATURE OF ENTITY
The National Council of Young Men’s Christian Associations of the United States of America
and Affiliates (Y-USA) is an Illinois not-for-profit organization with headquarters in Chicago,
Illinois. The basic objectives of Y-USA are to serve as a means through which YMCAs can
achieve their purposes and goals as a national movement, and to make available services
that will enrich and strengthen YMCAs in carrying out their work.
Federal Program Background
Y-USA receives its federal funding from the U.S. Agency for International Development, the
U.S. Department of Health and Human Services (HHS) and the U.S. Fish and Wildlife
Service.
The funding from Centers for Disease Control and Prevention (CDC) supports the following
programs:
Pioneering Healthier Communities (PHC), Action Communities for Health,
Innovation and Environmental Change (ACHIEVE), Community Transformation Grants (CTG)
and Racial and Ethnic Approaches to Community Health financed solely by 2012 Prevention
and Public Health Funds (REACH). PHC seeks to expand community health promotion
leadership and enhance the capacity of Y-USA, which results in the integration of public
health practice in communities and community institutions to increase the quality,
availability and effectiveness of educational and community-based programs designed to
prevent disease, improve health and quality of life, embrace diversity, connect people and
resources, and create a sense of community. ACHIEVE is a community leadership initiative
that brings together local leaders and stakeholders in a collaborative approach to building
healthier communities by promoting policy, systems and environmental change strategies
that focus on physical activity, nutrition, tobacco cessation, obesity, diabetes and
cardiovascular disease. CTG should support, disseminate and amplify successful program
models and activities to address five strategic directions outlined in the CTG program:
tobacco-free living, active living and healthy eating, high-impact, evidence-based clinical
and other preventative services, social and emotional wellness, and healthy and safe
physical environment.
REACH seeks to reduce or eliminate chronic disease health
disparities in racial and ethnic groups.
Y-USA partnered with the National Association of Chronic Disease Directors as a subrecipient of an award from CDC. The primary goal is to establish a national dissemination
framework for the delivery of evidence-based arthritis interventions with an emphasis on
populations that are not currently reached via CDC’s state arthritis programs.
Y-USA partnered with the University of Colorado Health Sciences Center as a sub-recipient
of an award from Agency for Healthcare Research and Quality. The goal of this program is
to promote innovative efforts to improve the management of obese patients in primary care
through Y-USA’s Diabetes Prevention Program.
40
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS - CONTINUED
Year ended December 31, 2012
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying schedule of expenditures of federal awards includes the federal grant
activity of Y-USA and is presented on the accrual basis of accounting. The information in
the schedule is presented in accordance with the requirements of U.S. Office of
Management and Budget Circular A-133, Audits of States, Local Governments, and NonProfit Organizations. Therefore, some amounts presented in this schedule may differ from
amounts presented in, or used in the preparation of, the basic consolidated financial
statements.
Sub-recipients
Of the federal expenditures presented in the schedule of expenditures of federal awards,
Y-USA provided federal awards to sub-recipients as follows:
CFDA number or
contract number
Amount
provided to
sub-recipients
93.283
$2,381,000
PPHF 2012: Community Transformation Grants
and National Dissemination and Support for
Community Transformation Grants – financed
solely by 2012 Prevention and Public Health
Funds
93.531
700,000
Research on Healthcare Costs, Quality and
Outcomes
93.226
36,222
Program title
U.S. Department of Health and Human Services
Centers for Disease Control and Prevention:
Investigations and Technical Assistance
41
REPORT OF INDEPENDENT CERTIFIED PUBLIC
ACCOUNTANTS ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS
Grant Thornton LLP
175 W Jackson Boulevard, 20th Floor
Chicago, IL 60604-2687
T 312.856.0200
F 312.565.4719
GrantThornton.com
linkd.in/GrantThorntonUS
twitter.com/GrantThorntonUS
Board of Directors
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
We have audited, in accordance with the auditing standards generally accepted
in the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards issued by the Comptroller General
of the United States, the consolidated financial statements of the National
Council of Young Men’s Christian Associations of the United States of America
and Affiliates (collectively, Y-USA), which comprise the consolidated statement
of financial position as of December 31, 2012, and the related consolidated
statements of activities, cash flows and functional expenses for the year then
ended, and the related notes to the financial statements, and have issued our
report thereon dated May 13, 2013.
Internal control over financial reporting
In planning and performing our audit of the consolidated financial statements,
we considered Y-USA’s internal control over financial reporting (internal control)
to design audit procedures that are appropriate in the circumstances for the
purpose of expressing our opinion on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of Y-USA’s internal
control. Accordingly, we do not express an opinion on the effectiveness of
Y-USA’s internal control.
A deficiency in internal control exists when the design or operation of a control
does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, misstatements on a
timely basis.
A material weakness is a deficiency, or a combination of
deficiencies, in internal control, such that there is a reasonable possibility that a
material misstatement of Y-USA’s financial statements will not be prevented, or
detected and corrected, on a timely basis.
Grant Thornton LLP
U.S. member firm of Grant Thornton International Ltd
Our consideration of internal control was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in
internal control that might be material weaknesses. Given these limitations,
during our audit we did not identify any deficiencies in Y-USA’s internal control
that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
Compliance and other matters
As part of obtaining reasonable assurance about whether Y-USA’s consolidated
financial statements are free from material misstatement, we performed tests of
its compliance with certain provisions of laws, regulations, contracts and grant
agreements, noncompliance with which could have a direct and material effect
on the determination of financial statement amounts. However, providing an
opinion on compliance with those provisions was not an objective of our audit,
and, accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Intended purpose
The purpose of this report is solely to describe the scope of our testing of
internal control and compliance and the results of that testing, and not to
provide an opinion on the effectiveness of entity-USA’s internal control or on
compliance. This report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering Y-USA’s internal control and
compliance. Accordingly, this report is not suitable for any other purpose.
Chicago, Illinois
May 13, 2013
Grant Thornton LLP
U.S. member firm of Grant Thornton International Ltd
REPORT OF INDEPENDENT CERTIFIED PUBLIC
ACCOUNTANTS ON COMPLIANCE FOR EACH MAJOR
FEDERAL PROGRAM AND ON INTERNAL CONTROL
OVER COMPLIANCE
Grant Thornton LLP
175 W Jackson Boulevard, 20th Floor
Chicago, IL 60604-2687
T 312.856.0200
F 312.565.4719
GrantThornton.com
linkd.in/GrantThorntonUS
twitter.com/GrantThorntonUS
Board of Directors
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
Report on compliance for each major federal program
We have audited the compliance of National Council of Young Men’s Christian
Associations of the United States of America and Affiliates (collectively, Y-USA)
with the types of compliance requirements described in the U.S. Office of
Management and Budget’s OMB Circular A-133 Compliance Supplement that
could have a direct and material effect on each of its major federal programs for
the year ended December 31, 2012. Y-USA’s major federal programs are
identified in the summary of auditor’s results section of the accompanying
schedule of findings and questioned costs.
Management’s responsibility
Management is responsible for compliance with the requirements of laws,
regulations, contracts and grants applicable to Y-USA’s federal programs.
Auditor’s responsibility
Our responsibility is to express an opinion on compliance for each of Y-USA’s
major federal programs based on our audit of the types of compliance
requirements referred to above. We conducted our audit of compliance in
accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States; and
OMB Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations.
The above-mentioned standards and OMB Circular A-133 require that we plan
and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above
that could have a direct and material effect on a major federal program
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occurred. An audit includes examining, on a test basis, evidence about Y-USA’s
compliance with those requirements and performing such other procedures as
we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on
compliance for each major federal program. However, our audit does not
provide a legal determination of Y-USA’s compliance.
Opinion on each major federal program
In our opinion, Y-USA complied, in all material respects, with the types of
compliance requirements referred to above that could have a direct and material
effect on each of its major federal programs for the year ended December 31,
2012.
Report on internal control over compliance
Management of Y-USA is responsible for designing, implementing, and
maintaining effective internal control over compliance with the types of
compliance requirements referred to above. In planning and performing our
audit of compliance, we considered Y-USA’s internal control over compliance
with the types of requirements that could have a direct and material effect on
each major federal program to design audit procedures that are appropriate in
the circumstances for the purpose of expressing an opinion on compliance for
each major federal program and to test and report on internal control over
compliance in accordance with OMB Circular A-133, but not for the purpose of
expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of Y-USA’s
internal control over compliance.
A deficiency in internal control over compliance exists when the design or
operation of a control over compliance does not allow management or
employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, noncompliance with a type of compliance
requirement of a federal program on a timely basis. A material weakness in
internal control over compliance is a deficiency, or a combination of deficiencies,
in internal control over compliance, such that there is a reasonable possibility
that material noncompliance with a type of compliance requirement of a federal
program will not be prevented, or detected and corrected, on a timely basis.
Our consideration of internal control over compliance was for the limited
purpose described in the first paragraph of this section and was not designed to
identify all deficiencies in internal control over compliance that might be
material weaknesses or significant deficiencies. Given these limitations, during
our audit, we did not identify any deficiencies in Y-USA’s internal control over
Grant Thornton LLP
U.S. member firm of Grant Thornton International Ltd
compliance that we consider to be material weaknesses.
weaknesses may exist that have not been identified.
However, material
This purpose of this report on internal control over compliance is solely to
describe the scope of our testing of internal control over compliance and the
results of that testing based on the requirements of OMB Circular A-133.
Accordingly, this report is not suitable for any other purpose.
Chicago, Illinois
May 13, 2013
Grant Thornton LLP
U.S. member firm of Grant Thornton International Ltd
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year ended December 31, 2012
I.
SUMMARY OF AUDITOR’S RESULTS
Financial Statements
Type of auditor’s report issued:
Unmodified
Internal control over financial reporting:
·
·
Material weakness(es) identified?
Significant deficiency(ies) identified that are
not considered to be material weaknesses?
Noncompliance material to financial statements
noted?
Yes
X
No
Yes
X
None reported
Yes
X
No
Yes
X
No
X
None reported
X
No
Federal Awards
Internal control over major programs:
·
·
Material weakness(es) identified?
Significant deficiency(ies) identified that are
not considered to be material weaknesses?
Type of auditor’s report issued on compliance
for major programs?
Any audit findings disclosed that are required to
be reported in accordance with Section 510(a)
of OMB Circular A-133?
Yes
Unmodified
Yes
Identification of major programs:
CFDA Number(s)
Name of Federal Program or Cluster
93.283
U.S. Department of Health and
Human Services
Centers for Disease Control and
Prevention: Investigations and
Technical Assistance
93.610
Centers for Medicare and
Medicaid Services: Health
Care Innovation Awards
(HCIA)
47
National Council of Young Men’s Christian Associations
of the United States of America and Affiliates
SCHEDULE OF FINDINGS AND QUESTIONED COSTS - CONTINUED
Year ended December 31, 2012
I.
SUMMARY OF AUDITOR’S RESULTS - Continued
CFDA Number(s)
Name of Federal Program or Cluster
U.S. Department of Health and
Human Services - Continued
PPHF 2012: Community
Transformation Grants and
National Dissemination and
Support for Community
Transformation Grants financed solely by 2012
Prevention and Public Health
Funds
93.531
Dollar threshold used to distinguish between
type A and type B programs:
$300,000
Auditee qualified as low-risk auditee?
X
Yes
II. FINANCIAL STATEMENT FINDINGS
No matters reported.
III. FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS
No matters reported.
48
No
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