THE MONO LAKE FOUNDATION
FINANCIAL STATEMENTS WITH
INDEPENDENT ACCOUNTANT’S REPORT
YEARS ENDED
DECEMBER 31, 2007 AND 2006
INDEPENDENT ACCOUNTANT’S REPORT
Board of Directors
The Mono Lake Foundation
Lee Vining, California
We have reviewed the accompanying statements of financial position of The Mono Lake Foundation as of
December 31, 2007 and 2006, and the related statements of activities, functional expenses, and cash flows
for the years then ended in accordance with Statements on Standards for Accounting and Review Services
issued by the American Institute of Certified Public Accountants. All information included in these
financial statements is the representation of the management of The Mono Lake Foundation.
A review consists principally of inquiries of company personnel and analytical procedures applied to
financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing
standards, the objective of which is the expression of an opinion regarding the financial statements taken
as a whole. Accordingly, we do not express such an opinion.
Based on our reviews, we are not aware of any material modifications that should be made to the
accompanying financial statements in order for them to be in conformity with generally accepted
accounting principles.
GILBERT ASSOCIATES, INC.
Sacramento, California
May 12, 2008
1
THE MONO LAKE FOUNDATION
STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, 2007 AND 2006
2007
2006
ASSETS
CURRENT ASSETS:
Cash and equivalents
Accounts receivable
Bequests receivable
Inventories
Prepaid expenses and other assets
$
309,518
22,860
78,141
1,257
162,189
106,098
150,738
78,525
4,767
411,776
502,317
10,000
15,000
820,568
774,771
1,031,938
1,043,947
$ 2,274,282
$ 2,336,035
$
$
Total current assets
PLEDGES RECEIVABLE
INVESTMENTS
PROPERTY AND EQUIPMENT - Net
TOTAL ASSETS
$
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES:
Accounts payable
Deferred income
54,937
1,905
Total current liabilities
56,842
34,400
104,807
303,039
161,649
337,439
1,301,005
311,128
500,500
1,135,592
150,738
211,766
500,500
2,112,633
1,998,596
$ 2,274,282
$ 2,336,035
NOTE PAYABLE
Total liabilities
NET ASSETS:
Unrestricted:
Undesignated
Board Designated - Facilities
Temporarily restricted
Permanently restricted
Total net assets
TOTAL LIABILITIES AND NET ASSETS
32,972
1,428
The accompanying notes are an integral part of these financial statements.
2
THE MONO LAKE FOUNDATION
STATEMENTS OF ACTIVITIES
YEARS ENDED DECEMBER 31, 2007 AND 2006
2007
2006
$ 1,027,801
$ 1,027,891
156,114
60,563
58,579
46,541
44,791
501
224,826
148,979
39,073
47,791
59,507
32,855
175,755
514
162,768
1,619,716
1,695,133
599,455
308,512
291,572
525,916
373,911
261,108
1,199,539
1,160,935
320,588
84,914
216,847
115,453
1,605,041
1,493,235
INCREASE IN UNRESTRICTED NET ASSETS
14,675
201,898
TEMPORARILY RESTRICTED NET ASSETS:
Contributions and grants
Investment income
Net assets released from restrictions
Net asset reclassification
283,831
40,357
(224,826)
228,215
17,956
(162,768)
29,991
99,362
113,394
UNRESTRICTED NET ASSETS:
REVENUES:
Member contributions
Sales revenue, net of cost of goods sold of $193,967
for 2007 and $180,170 for 2006
Other general contributions
Program service revenue
Interest and investment income
Rental income
Bequests
Other
Net assets released from restrictions
Total revenues
EXPENSES:
Program services:
Public education and outreach
Research and policy development
Membership communications
Total program services
Supporting services:
Fundraising
Management and general
Total expenses
INCREASE IN TEMPORARILY RESTRICTED NET ASSETS
PERMANENTLY RESTRICTED NET ASSETS:
(29,991)
Net asset reclassification
INCREASE IN NET ASSETS
NET ASSETS, Beginning of Year
NET ASSETS, End of Year
The accompanying notes are an integral part of these financial statements.
114,037
285,301
1,998,596
1,713,295
$ 2,112,633
$ 1,998,596
3
THE MONO LAKE FOUNDATION
STATEMENT OF FUNCTIONAL EXPENSES
YEAR ENDED DECEMBER 31, 2007
Personnel
Professional services
Cost of goods sold
Advertising
Printing and copying
Postage and delivery
Grant services
Supplies
Insurance and taxes
Depreciation and amortization
Occupancy
Travel and transportation
Interest
Equipment
Telecommunications
Other
Supporting
Services
Services
Public Educ.
Research &
Membership
& Outreach
Policy Develop.
Comm.
$
Total expenses
Less cost of goods sold,
included with revenues
on the statement of activities
Total expenses included in
the expense section of the
statement of activities
Program
376,254
56,950
126,520
13,143
39,790
12,570
3,596
11,663
17,443
18,801
7,396
12,434
$
142,297
38,986
$
893
141
7,717
6,077
15,621
50,000
1,361
12,560
5,995
18,876
8,295
17,677
2,149
3,449
5,833
725,975
308,512
42,557
90,734
Management
Fundraising
$
93,105
18,659
14,230
41,043
141,630
67,447
10,153
56,105
52,400
20,150
713
2,173
850
1,189
5,337
1,320
2,096
1,122
2,163
2,079
1,571
1,931
533
923
374
618
6,220
1,090
808
5,321
602
774
4,841
645,245
355,875
193,967
118,175
114,716
79,289
53,596
40,590
33,607
30,996
28,777
25,004
17,677
11,932
11,726
37,836
291,572
388,035
84,914
1,799,008
599,455
$
43,094
27,575
$
881
21
89
67,447
126,520
$
Total
& General
$
308,512
The accompanying notes are an integral part of these financial statements.
$
291,572
$
320,588
193,967
$
84,914
$
1,605,041
4
THE MONO LAKE FOUNDATION
STATEMENT OF FUNCTIONAL EXPENSES
YEAR ENDED DECEMBER 31, 2006
Personnel
Professional services
Cost of goods sold
Advertising
Printing and copying
Postage and delivery
Grant services
Supplies
Insurance and taxes
Depreciation and amortization
Occupancy
Travel and transportation
Interest
Equipment
Telecommunications
Other
Supporting
Services
Services
Public Educ.
Research &
Membership
& Outreach
Policy Develop.
Comm.
$
Total expenses
Less cost of goods sold,
included with revenues
on the statement of activities
Total expenses included in
the expense section of the
statement of activities
Program
361,159
37,684
98,290
9,804
22,201
11,881
1,500
9,907
10,691
15,607
6,896
9,301
$
179,033
60,843
$
29,757
58,535
Management
Fundraising
$
84,734
31,349
16,446
27,488
809
1,310
468
119
3,474
1,369
2,093
1,394
1,878
1,581
4,274
2,747
4,696
2,675
8,187
6,374
14,724
62
757
2,021
34,473
1,585
25,789
5,361
17,434
16,673
21,504
1,630
3,447
3,299
47,555
62,498
81,880
21,731
37,480
22,547
317
483
9,293
1,747
1,008
12,073
1,834
1,608
4,595
679,914
240,794
180,170
121,060
92,704
55,048
35,973
44,035
42,932
27,118
30,888
30,646
21,504
13,715
12,920
43,984
624,206
373,911
261,108
298,727
115,453
1,673,405
98,290
$
Total
& General
525,916
$
62,410
21,234
$
4,729
917
2,153
81,880
$
373,911
The accompanying notes are an integral part of these financial statements.
$
261,108
$
216,847
180,170
$
115,453
$
1,493,235
5
THE MONO LAKE FOUNDATION
STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2007 AND 2006
2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Increase in net assets
Reconciliation to net cash provided by operating activities:
Net unrealized gain on investments
Loss on disposal of assets
Donated investments
Depreciation and amortization
Changes in:
Accounts receivable
Bequests receivable
Inventories
Prepaid expenses and other assets
Pledges receivable
Accounts payable
Deferred income
$
114,037
2006
$
(44,808)
285,301
(51,584)
1,835
(16,452)
30,996
27,118
83,238
150,738
384
3,510
5,000
21,965
477
(61,287)
(150,738)
(9,590)
1,544
2,039
5,473
(2,292)
349,085
47,819
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on note payable
(198,232)
(25,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investments
Proceeds from sale of investments
Purchases of property and equipment
(995,729)
1,011,192
(18,987)
(28,385)
60,380
(40,910)
(3,524)
(8,915)
Net cash provided by operating activities
Net cash used by investing activities
NET INCREASE IN CASH AND EQUIVALENTS
147,329
13,904
CASH AND EQUIVALENTS, Beginning of Year
162,189
148,285
CASH AND EQUIVALENTS, End of Year
$
309,518
$
162,189
OTHER CASH FLOW INFORMATION:
Interest paid
$
17,677
$
21,504
The accompanying notes are an integral part of these financial statements.
6
THE MONO LAKE FOUNDATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2007 AND 2006
1.
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Mono Lake Foundation (the Foundation) is a nonprofit corporation whose mission consists
of supporting the restoration and preservation of the Mono Lake ecosystem, educating the public
about Mono Lake and the impacts on the environment of excessive water usage, and promoting
cooperative solutions that protect Mono Lake and meet real water needs without transferring
environmental problems to other areas.
Basis of presentation – The financial statements are presented in conformity with Statement of
Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-For-Profit
Organizations. In accordance with SFAS No. 117, the Foundation reports information regarding
its financial position and activities according to three classes of net assets: unrestricted,
temporarily restricted, and permanently restricted.
Revenue recognition – Contributions and grants are recognized as revenues when received or
unconditionally promised. All donor-restricted contributions and grants are reported as an
increase in temporarily restricted net assets. When restrictions expire, as funds are expended for
the specified purpose or through the passage of time, temporarily restricted net assets are
reclassified to unrestricted net assets and reported in the statement of activities as net assets
released from restrictions.
Contributed services meeting the qualifications for recognition under SFAS No. 116, Accounting
for Contributions Received and Contributions Made, are recognized at their estimated fair value
as of the date of service. During 2007 and 2006, the Foundation received donated professional
services valued at $11,034 and $16,541, respectively. The services primarily benefited
Foundation programs.
Cash and equivalents – For financial statement purposes, the Foundation considers all
investments with a maturity at purchase of three months or less to be cash equivalents.
Inventories consist primarily of educational and artistic materials sold by the Foundation through
its retail store or distributed as membership benefits. Inventories are recorded at the lower of
average cost or market, using the first-in, first-out method. Materials that have become obsolete
are not included in the inventory balance.
Investments are recorded at fair market value.
Property and equipment are stated at cost or, if donated, at the estimated fair market value as of
the date of donation. Assets are depreciated using the straight-line method over estimated useful
lives of 5 to 39 years.
Income taxes – The Foundation is publicly supported and exempt from income taxes under
Internal Revenue Code Section 501(c)(3), except for immaterial amounts of tax on unrelated
business income arising from rental income on debt financed property, sales of certain
merchandise and rental of mailing lists.
7
THE MONO LAKE FOUNDATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2007 AND 2006
Functional allocation of expenses - The costs of providing the program services have been
summarized on a functional basis in the statements of activities and of functional expenses.
Accordingly, certain costs have been allocated among the program services based on employees’
time incurred and on resource usage.
Joint fundraising and educational activities – The financial statements conform with Statement
of Position (SOP) 98-2, Accounting for Costs of Activities of Not-for-Profit Organizations and
State and Local Governmental Entities That Include Fund Raising. See Note 8.
Use of estimates – The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires management to make
estimates and assumptions that affect certain reported amounts and disclosures. Accordingly,
actual results could differ from those estimates.
2.
ACCOUNTS RECEIVABLE
Accounts receivable consist of the following:
2007
2006
Grants
Other accounts receivable
Pledges
$
17,860
5,000
$ 64,463
31,096
10,539
Total
$ 22,860
$ 106,098
In addition to the above pledges, the Foundation has $10,000 of long-term pledges receivable that
are due to be collected between 2008 and 2009.
3.
INVESTMENTS
Investments consist of the following:
2006
2007
Money market funds
Mutual fund
Equity securities
$ 276,339
532,817
11,412
$
2,596
197,194
574,981
Total
$ 820,568
$ 774,771
8
THE MONO LAKE FOUNDATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2007 AND 2006
Interest and investment income consists of the following:
2007
4.
2006
Interest and dividends
Net unrealized gain
$ 42,090
44,808
$ 25,879
51,584
Total
$ 86,898
$ 77,463
PROPERTY AND EQUIPMENT
Property and equipment consist of the following:
2007
5.
Land
Buildings and improvements
Furniture and office equipment
Automobiles
Total
Less accumulated depreciation and amortization
$
460,370
692,886
84,497
14,194
1,251,947
(220,009)
Property and equipment, net
$ 1,031,938
2006
$ 460,370
686,252
78,007
14,194
1,238,823
(194,876)
$ 1,043,947
NOTE PAYABLE
The Foundation incurred a $350,000 long-term note in 2003 to finance the purchase of land and
buildings in Lee Vining, California. The note is secured by the deed of trust and was issued by the
seller of the property at an annual interest rate of 7%, with interest due monthly and a balloon
payment due on July 2, 2008. The Foundation made principal payments of $198,232 and $25,000
for the years ended December 31, 2007 and 2006, respectively. The balance of the note was paid
in January 2008.
9
THE MONO LAKE FOUNDATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2007 AND 2006
6.
NET ASSETS
Temporarily restricted net assets consist of amounts restricted by grantors and donors for the
following purposes:
2007
2006
Research and policy development
Repayment of note payable
Public education
Communications
$ 207,802
77,792
15,206
10,328
$ 178,868
22,570
10,328
Total
$ 311,128
$ 211,766
Permanently restricted net assets represent an endowment restricted in perpetuity. The
endowment principal on the related investment is restricted from withdrawal. Investment and
interest earnings from this balance are restricted by the donor for use in research and policy
development.
In 2006, the Foundation’s board designated $150,738 to apply towards various repairs and
maintenance related to the Foundation’s facilities. This designation has been released as of
December 31, 2007.
7.
PENSION PLAN
The Foundation maintains a “SIMPLE” IRA plan (Plan), under Internal Revenue Code Section
408(p), that includes all employees. Employees may contribute a portion of their gross
compensation to the Plan. The Foundation makes matching contributions up to 3% of each
employee’s gross compensation. Matching contributions totaled $10,013 for 2007 and $2,593 for
2006. All contributions are fully vested and non-forfeitable.
8.
ALLOCATION OF EXPENSES
The Foundation achieves certain programmatic goals by conducting direct mail campaigns that
include appeals for actions that support Mono Lake as well as for contributions. The costs of
conducting these joint activities totaled $155,594 for 2007 and $187,771 for 2006. These joint
costs were allocated as follows:
2007
2006
Membership communications
Fundraising
$ 13,742
141,151
$ 35,491
152,280
Total
$ 155,594
$ 187,771
10
THE MONO LAKE FOUNDATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2007 AND 2006
9.
CONCENTRATIONS OF CASH
The Foundation maintains its cash in bank deposit accounts that, at times, may exceed federally
insured limits. The Foundation has not experienced any losses in such accounts. Management
believes the Foundation is not exposed to any significant credit risk related to cash.
11