CLERGY AND LAITY UNITED FOR ECONOMIC JUSTICE-CALIFORNIA (A Nonprofit Corporation) Audited Financial Statements
Year Ended December 31,2009
Clergy and Laity United for Economic Justice-California (A Nonprofit Corporation) Year Ended December 31, 2009 Table of Contents Page
FINANCIAL INFORMATION
Independent Auditors' Report
Statement of Financial Position
2
Statement of Activities
3
Statement of Functional Expenses
4
Statement of Cash Flows
5
Notes to the Financial Statements
6-11
Maria A Contreras, CPA
Certified Pubic Accountant
1004 I Chardonnay Ct.
Sun Valley, CA 91352
Phone: (818) 640-4733
Fax: (818) 252-3864
E-mail: [email protected]
INDEPENDENT AUDITORS' REPORT
To the Board of Directors of
Clergy and Laity United for Economic Justice-California
We have audited the accompanying statement of financial position of Clergy and Laity
United for Economic Justice- California (a nonprofit organization) as of December 31,
2009 and the related statements of activities, functional expenses and cash flows for the
year then ended. These financial statements are the responsibility of the Organization's
management. Our responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with the 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 of material
misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the financial position of Clergy and Laity United for Economic Justice,
California as of December 31, 2009, and the changes in its net assets, and its cash flows
for the year then ended in conformity with accounting principles generally accepted in
the United States of America.
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Sun Valley, California
November 16,2010
CLERGY AND LAITY UNITED FOR ECONOMIC JUSTICE- CALIFORNIA STATEMENT OF FINANCIAL POSITION DECEMBER 31,2009 ASSETS
Current assets
Cash and cash equivalents
Accounts receivable
Prepaid expenses and deposits
Total current assets
$
166,986
163,306
3,134
333,426
Equipment and furniture (net of accumulated
depreciation of $6,752
TOTAL ASSETS
9,576
$ ==3=4=3,=00=2=
LIABILITIES AND NET ASSETS
Current liabilities
Accounts payable
Accrued expenses
Total current liabilities
$
Other liabilities
Deferred revenue
Total liabilities
4,101
41,179
45,280
217,617
262,897
Net assets
Unrestricted
Total net assets
80,105
80,105
TOTAL LIABILITIES AND NET ASSETS
$
343,002
The accompanying notes are an integral part of these financial statements.
2
CLERGY AND LAITY UNITED FOR ECONOMIC JUSTICE- CALIFORNIA STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31,2009 Revenues and other support
Grants and contracts
Contributions
Other income
Interest income
Total revenues and other support
$
1,220,008
61,844
30,509
1,553
1,313,914
Expenses
Program services
998,049
Supporting services
Management and administration
Fundraising
157,583
46,629
1,202,261
Total expenses
Change in net assets
111,653
Net assets-beginning of year
(31,548)
Unrestricted net assets-end of year
$
80,105
The accompanying notes are an integral part of these financial statements.
3
CLERGY AND LAITY UNITED FOR ECONOMIC JUSTICE- CALIFORNIA STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2009 Program
Services
Expenses
Salaries and wages
Employee benefits
Payroll taxes
Total personnel
$
Bank service charges
Contracted services
Contributions
Depreciation
Insurance
Leases
Marketing and promotional
Meetings and conferences
Miscellaneous
Office supplies
Outside services
Postage
Printing
Program expenses
Other program expenses
Contracted services-affiliates
Telephone
Travel and transportation
Total
5 I 1,900
106,2 I 8
35,527
653,645
Supporting Services
Management
and Administration
$
104,688
2 I ,64 I
7,265
133,594
8,109
135,325
14,573
33,471
157,583
$
The accompanying notes are an integral part ofthese financial statements.
4
$
639,631
134,230
44,391
818,252
224
128
35
180
243
89,536
1,448
2,750
7,926
29,536
1,103
38,552
1,103
6,206
3,557
960
5,003
656
430
8,109
135,325
18,209
34,443
99
286
1,064
40
8,609
2,980
542
$
23,043
6,371
1,599
3 1,0 I 3
Total
3,865
450
1,297
4,834
180
6,272
1,103
1,015
582
157
819
4,967
2,847
768
4,004
998,049
$
243
3,515
82, I 56
1,448
2,201
6,343
23,638
883
23,671
$
Fundraising
46,629
$
1,202,261
CLERGY AND LAITY UNITED FOR ECONOMIC JUSTICE- CALIFORNIA STATEMENT OF CASH FLOWS DECEMBER 31, 2009 Cash flows from operating activities
Change in net assets
Adjustments to reconcile change in net assets
to net cash used in operating activities:
Depreciation
(Increase) decrease in:
Accounts receivable
Prepaid expenses and deposits
Increase (decrease) in:
Accounts payable
Accrued expenses
Deferred revenue
Net cash used in operating activities
$
111,653
2,750
(7,300)
9,333
(26,990)
4,635
(159,250)
(65,169)
Cash flows from investing activities
Purchases of furniture and equipment
Net cash used in investing activities
(1,964)
(1,964)
Net decrease in cash
(67,133)
Cash and cash equivalents-beginning of year
234,119
Cash and cash equivalents-end of year
$
The accompanying notes are an integral part of these financial statements.
5
166,986
Clergy and Laity United for Economic Justice-California (A Nonprofit Corporation) Notes to Financial Statements December 31,2009 NOTE 1- NATURE OF ACTIVITIES
Organization and Nature of Activities
Clergy and Laity United for Economic Justice-California (the "Organization") is a
nonprofit corporation formed on September 22, 2000 under the laws of the State
of California. The purpose of the Organization is to assist the religious
community of all faith traditions to support low-wage workers in their struggles
for a living wage, health benefits, respect and a voice in the corporate and
political decisions that affect them. The Organization, contributing the unique gift
of the involvement of the religious community, partners with other organizations
to increase workers' capacity to influence their employers, and to attain worker­
friendly public policies.
NOTE 2-SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The accompanying financial statements have been prepared on the accrual basis
of accounting in accordance with U.S. generally accepted accounting principles.
Financial Statements Presentation
The financial statements are presented based on ASC Topic 958, Not:/or-Profit
Entities. ASC Topic 958, Sections 210 and 225 requires classification of the
Organization's net assets, revenues as well as expenses based on the existence or
absence of donor-imposed restrictions. The statement requires presentation of the
amounts for each of the three classes of net assets - permanently restricted,
temporarily restricted, and unrestricted - in the statement of financial position and
the amounts of change in each of those classes of net assets in the statement of
activities.
Contributions
Contributions received, including unconditional promises to give, are recognized
as revenue at their fair value in the period received. Contributions and net assets
are classified based on the existence or absence of donor-imposed restrictions. As
such, the net assets of the Organization and changes therein are classified and
reported as follows:
Unrestricted net assets - net assets that are not subject to donor-imposed
stipulations and may be expendable for any purpose in performing the objectives
of the Organization.
Temporarily restricted net assets - net assets subject to donor-imposed
stipulations that mayor will be met either by actions of the Organization and/or
the passage of time.
6
Clergy and Laity United for Economic Justice-California (A Nonprofit Corporation) Notes to Financial Statements December 31,2009 NOTE 2-SIGNIFICANT ACCOUNTING POLICIES (continued)
As the restrictions are satisfied, temporarily restricted net assets are reclassified to
unrestricted net assets and reported in the accompanying financial statements as
net assets released from restrictions. Donor-restricted contributions that are
received and expended in the same reporting period are classified as unrestricted in
the accompanying financial statements.
Permanently restricted net assets - net assets subject to donor-imposed stipulations
that resources be maintained in perpetuity. Investment income generated from
these funds is available for general support of the Organization's programs and
operations unless otherwise stipulated by the donor.
Certain grants and contracts are classified as exchange transactions. The
Organization recognizes revenue for exchange transactions on the accrual basis
which is also used by commercial enterprises.
Use of Estimates
The preparation of financial statements in accordance with u.s. generally
accepted accounting principles requires management to make estimates and
assumptions that affect reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements, and the
reported amounts of revenues and expenses, during the reporting period. Actual
results could differ from those estimates.
Cash and Cash Equivalents
For purposes of the statement of cash flows, the Organization considers all highly
liquid investments available for current use with an initial maturity of three
months or less to be cash equivalents. Cash subject to donor-imposed restrictions
is separately identified in the statement of financial position as temporarily
restricted net assets. Temporarily restricted cash equals advances of restricted
programs.
Allowance for Uncollectible Accounts Receivable
No provision has been made for uncollectible accounts receivable. Management
believes that all accounts receivable are collectible.
Property and Equipment
Expenditures in excess of $1,000 for property and equipment are capitalized at
cost. The Organization provides for depreciation on the straight-line method at
rates designed to depreciate the cost of assets over their estimated useful lives,
currently 5 years. When assets become obsolete or are disposed of, they are
removed from the property records and a gain or loss is recorded if applicable.
7
Clergy and Laity United for Economic Justice-California (A Nonprofit Corporation) Notes to Financial Statements December 31,2009 NOTE 2-SIGNIFICANT ACCOUNTING POLICIES (continued)
Revenue Recognition
Grants, contracts and other contributions received are recorded as unrestricted,
temporarily restricted or permanently restricted support, depending on the
existence and nature of any donor restrictions.
All donor-restricted support is reported as an increase in temporarily restricted net
assets, depending on the nature of the restriction. When a restriction expires (that
is when a stipulated time restriction ends or a purpose restriction is
accomplished), temporarily restricted net assets are reclassified to unrestricted net
assets and reported in the statement of activities as net assets released from
restriction.
Contracts and grants are recognized as revenues in the period in which they are
earned. These programs are subject to financial and compliance audits by the
grantors or their representatives, the purpose of which is to assess compliance
with conditions precedent to the granting of funds. Management believes that any
liability for reimbursement, which may arise as the result of these audits, is not
material. Fundraising revenue is reported net of costs of direct benefit to donors.
All other costs associated with the fundraising events are recorded in the
statement of activities as fundraising expenses.
Contributions of donated non-cash assets are recorded at their fair values in the
period received. Contributions of donated services that create or enhance non­
financial assets or that require specialized skills, are provided by individuals
possessing those skills, and would typically need to be purchased if not provided
by donation, are recorded at their fair values in the period received.
As of December 31, 2009, the Organization had $217,617 of deferred revenue
from grants received for contracts beginning in 2008, 2009 and expiring after
January 1, 2010. This revenue will be recognized in the next fiscal year.
Income Taxes
The Organization is exempt from Federal income taxes under Section 501(c) (3)
of the Internal Revenue Code and California income taxes under section 23701(d)
of the California Revenue and Taxation Code. The Organization has adopted
Financial Accounting Standards Board Accounting Standards Codification (ASC)
Section 740-10, which clarifies the accounting for uncertainty in income taxes.
ASC Section 740-10 prescribes a recognition threshold and measurement attribute
for the financial statement recognition and measurement of a tax position taken or
expected to be taken in a tax return. ASC Section 740-10 requires that an
organization recognize in the financial statements the impact of the tax position if
that position will more likely than not be sustained on audit, based on the
technical merits of the position. As of and for the year ended June 30, 2010, the
Organization had no material unrecognized tax benefits, tax penalties or interest.
8
Clergy and Laity United for Economic Justice-California (A Nonprofit Corporation) Notes to Financial Statements December 31, 2009 NOTE 2-SIGNIFICANT ACCOUNTING POLICIES (continued)
Functional Expenses Allocations
The cost of providing the program services have been summarized on a
functional basis in the statements of activities and functional expenses.
Accordingly, certain costs have been allocated to program services, management
and administration, and fundraising based on time or other appropriate usage
factors.
FASB Accounting Standards Codification
In June 2009, the Financial Accounting Standards Board (f AS B) issued the
F ASB Accounting Standards Codification (the ASC). The ASC has become the
single source of non-governmental accounting principles generally accepted in the
United States (GAAP) recognized by the F ASB in preparation of financial
statements. The Organization adopted the ASC as of December 31, 2009. The
ASC does not change GAAP and did not have an effect on the Organization's
statements of financial position. changes in net assets, functional expenses and
cash flows.
NOTE 3- CONCENTRATION OF CREDIT RISK
Financial instruments that potentially expose the Organization to concentrations
of credit risk consist primarily of cash. The Organization places its cash with a
high credit, quality financial institution. At December 31, 2009, cash balances at
such financial institution exceeded by $25,046 the Federal Deposit Insurance
Corporation insurance limit of $250,000. The Organization has not experienced
any losses in such accounts and believes it is not exposed to any significant credit
risk on these deposits.
9
Clergy and Laity United for Economic Justice-California (A Nonprofit Corporation) Notes to Financial Statements December 31, 2009 NOTE4-ACCOUNTSRECEIVABLE Receivables are recorded when billed or accrued and represent claims against
third parties that will be settled in cash. All receivables are unsecured and non­
interest bearing. A summary of accounts receivable at December 31, 2009 is as
follows:
Unite Here, Local 2
$
14,407
Unite Here, Local 11
23,310
SEIU, Local 721
18,600
Unite HERE International
20,650
Orange County Central Labor Council
9,000
Change to Win
12,500
United Food and Commercial Workers (UFCW)
10,000
University of Southern California
25,000
Hunt Family Foundation
15,000
Other
14,839
$
163,306
NOTE 5- EQUIPMENT AND FURNITURE
Equipment and furniture at December 31,2009 consisted of the following:
$
Office equipment
15,468
Furniture
860
16,328
6,752
Less accumulated depreciation
$
9,576
Depreciation expense for the year ended December 31, 2009 amounted to $2,750.
NOTE 6- TEMPORARILY RESTRICTED NET ASSETS AND LIABILITIES
Temporarily restricted net assets and liabilities of $217,617 are available for the
period after December 31, 2009. Net assets will be released from restrictions by
Incurnng expenses satisfying the purpose and time restrictions specified by
donors.
10
Clergy and Laity United for Economic Justice-California (A Nonprofit Corporation) Notes to Financial Statements December 31,2009 NOTE 7- DONATED SERVICES Contributions or services are recognized if the services (a) create or enhance
nonfinancial assets or (b) require specialized skills, are provided by individuals
possessing those skills, and would typically need to be purchased if not provided
by donation.
The Organization received donated services from unpaid volunteers who assist on
a variety of tasks and community service. No amount has been recognized in the
statement of activities because the criteria for recognition under SFAS No. 116
have not been satisfied.
NOTE 8- CONTINGENCIES, RISK AND UNCERTAINTIES
The Organization grants and contracts are subject to inspection and audit by the
appropriate funding agencies. The purpose is to determine whether the program
funds were used in accordance with their respective guidelines and regulations.
The potential exists for disallowance of previously funded program costs. The
ultimate liability, if any, which may result from these audits cannot be reasonably
estimated and, accordingly the Organization has no provisions for the possible
disallowance of program costs on its financial statements.
NOTE 9- SUBSEQUENT EVENTS
Events subsequent to December 31, 2009 have been evaluated through November
16, 2010 the date at which the Organization's audited financial statements were
available to be issued. One of the Organization branches, Clergy and Laity
United for Economic Justice Los Angles, was incorporated in August 2009 as a
separate entity. Clergy and Laity United for Economic Justice-California
transferred some assets and liabilities to the new incorporated entity.
11
Clergy and Laity United for Economic Justice-California (A Nonprofit Corporation) Notes to Financial Statements December 31, 2009 NOTE 7- DONATED SERVICES Contributions or services are recognized if the services (a) create or enhance
nonfinancial assets or (b) require specialized skills, are provided by individuals
possessing those skills, and would typically need to be purchased if not provided
by donation.
The Organization received donated services from unpaid volunteers who assist on
a variety of tasks and community service. No amount has been recognized in the
statement of activities because the criteria for recognition under SFAS No. 116
have not been satisfied.
NOTE 8- CONTINGENCIES, RISK AND UNCERTAINTIES
The Organization grants and contracts are subject to inspection and audit by the
appropriate funding agencies. The purpose is to determine whether the program
funds were used in accordance with their respective guidelines and regulations.
The potential exists for disallowance of previously funded program costs. The
ultimate liability, if any, which may result from these audits cannot be reasonably
estimated and, accordingly the Organization has no provisions for the possible
disallowance of program costs on its financial statements.
NOTE 9- SUBSEQUENT EVENTS
Events subsequent to December 31, 2009 have been evaluated through November
16, 2010 the date at which the Organization's audited financial statements were
available to be issued. One of the Organization branches, Clergy and Laity
United for Economic Justice Los Angles, was incorporated in August 2009 as a
separate entity. Clergy and Laity United for Economic Justice-California has
transferred some assets and liabilities to the new incorporated entity.
11 Clergy and Laity United for Economic Justice-California (A Nonprofit Corporation) Notes to Financial Statements December 31, 2009 NOTE 7- DONATED SERVICES Contributions or services are recognized if the services (a) create or enhance
nonfinancial assets or (b) require specialized skills, are provided by individuals
possessing those skills, and would typically need to be purchased if not provided
by donation.
The Organization received donated services from unpaid volunteers who assist on
a variety of tasks and community service. No amount has been recognized in the
statement of activities because the criteria for recognition under SFAS No. 116
have not been satisfied.
NOTE 8- CONTINGENCIES, RISK AND UNCERTAINTIES
The Organization grants and contracts are subject to inspection and audit by the
appropriate funding agencies. The purpose is to determine whether the program
funds were used in accordance with their respective guidelines and regulations.
The potential exists for disallowance of previously funded program costs. The
ultimate liability, if any, which may result from these audits cannot be reasonably
estimated and, accordingly the Organization has no provisions for the possible
disallowance of program costs on its financial statements.
NOTE 9- SUBSEQUENT EVENTS
Events subsequent to December 31, 2009 have been evaluated through November
16, 2010 the date at which the Organization's audited financial statements were
available to be issued. One of the Organization branches, Clergy and Laity
United for Economic Justice Los Angles, was incorporated in August 2009 as a
separate entity. Clergy and Laity United for Economic Justice-California has
transferred some assets and liabilities to the new incorporated entity.
11