CLERGY AND LAITY UNITED FOR ECONOMIC JUSTICE-CALIFORNIA Financial Statements Year Ended December 31, 2011 CLERGY AND LAITY UNITED FOR ECONOMIC JUSTICE-CALIFORNIA TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2011
Page
FINANCIAL INFORMATION
Independent Auditors' Report
1
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
10041 Chardonnay Ct.
Sun Valley, CA 91352
Phone: (818) 640-4733
Fax: (818) 252-3864
[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,
2011 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, 2011, 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.
Ir-t~ cA..e~
Sun Valley, California
June 26, 2012
CLERGY AND LAITY UNITED FOR ECONOMIC JUSTICE- CALIFORNIA STATEMENT OF FINANCIAL POSITION DECEMBER 31,2011 ASSETS
Current assets
$
Cash and cash equivalents
Accounts receivable
Prepaid expenses and deposits
Total current assets
223,076
95,253
15,842
334,171
1,359
Equipment and furniture, net
TOTAL ASSETS
$
335,530
$
105,298
227,028
332,326
LIABILITIES AND NET ASSETS
Liabilities
Accounts payable and accrued expenses
Deferred revenue
Total liabilities
Net assets
3,204
3,204
Unrestricted
Total net assets
TOTAL LIABILITIES AND NET ASSETS
$
335,530
The accompanying notes are an integral part of these financial statements.
2
CLERGY AND LAITY UNITED FOR ECONOMIC JUSTICE- CALIFORNIA STATEMENT OF ACTIVITIES
YEAR ENDED DECEMBER 31, 2011
Revenues and support
$
Grants and contracts
Governmental revenue
Contributions
Interest income
Total revenues and support
909,976
102,396
17,597
793
1,030,762
Expenses
Program services
926,306
Supporting services
Management and administration
Fundraising
167,874
27,642
Total expenses
1,121,822
Change in net assets
(91,060)
94,264
Net assets-beginning of year
Unrestricted net assets-end of year
$
3,204
The accompanying notes are an integral part ofthese financial statements.
3
CLERGY AND LAITY UNITED FOR ECONOMIC JUSTICE- CALIFORNIA STATEMENT OF FUNCTIONAL EXPENSES YEAR ENDED DECEMBER 31, 2011 Program
Services
Expenses
$
Salaries and wages
Employee benefits
Payroll taxes
Total personnel
Bank service charges
Contracted services
Contributions
Depreciation
Insurance
Leases
Meetings and conferences
Miscellaneous
Supplies
Postage
Printing
Program expenses
Other program expenses
Contracted services-affiliates
Telephone
Travel and transportation
Total
325,821
107,899
26,391
460,111
Supporting Services
Management
and Administration
$
73,334
23,643
5,940
102,917
$
14,324
7,034
1,160
22,518
Total
$
137
35
352
703
177
1,802
7,621
1,598
414
101
103
1,841
448
456
413,479
138,576
33,491
585,546
162
176,783
600
3,964
998
10,163
18,539
2,965
2,336
569
579
162
48,116
128,667
600
3,124
786
8,009
10,918
1,367
81
20
20
8,084
8,084
254,643
254,643
6,831
41,788
$
Fundraising
926,306
$
1,537
2,623
300
2,812
167,874 $
27,642
The accompanying notes are an integral part of these financial statements.
4
8,668
47,223
$
1,121,822
CLERGY AND LAITY UNITED FOR ECONOMIC JUSTICE- CALIFORNIA STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2011 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 and accrued expenses
Deferred revenue
Net cash used in operating activities
$
(91,060)
3,964
(18,171 )
(9,559)
67,546
12,097
(35,183)
Cash flows from investing activities
Dispositions of equipment
Net cash used in investing activities
(610)
(610)
Net decrease in cash
(35,793)
Cash and cash equivalents-beginning of year
258,869
Cash and cash equivalents-end of year
$
The accompanying notes are an integral part of these [mancial statements.
5
223,076
CLERGY AND LAITY UNITED FOR ECONOMIC JUSTICE-CALIFORNIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2011 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-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The accompanying financial statements have been prepared on the accrual basis
of accounting in accordance with accounting principles generally accepted in the
United States of America, as codified by the Financial Accounting Standards
Board.
Basis of Presentation
In accordance with Generally Accepted Accounting Principles ("GAAP"), the
Organization reports information regarding its financial position and operating
activities in three classes of net assets:
Unrestricted Net Assets
Unrestricted net assets are net assets that are not subject to any donor-imposed
stipulations and are available for the general operations of the Organization.
Temporarily Restricted Net Assets
Temporarily restricted net assets are net assets subject to donor-imposed
restrictions on their use that may be met either by action of the Organization or
the passage of time. The Organization did not have any temporarily restricted
net assets as of December 31, 2011.
Permanently Restricted Net Assets
Permanently restricted net assets are net assets resulting from contributions and
other inflows of assets whose use by the Organization is limited by donor­
imposed stipulations that neither expire by the passage of time nor can be
fulfilled or otherwise removed by actions of the Organization. The
Organization did not have any permanently restricted net assets as of
December 31, 2011.
6
CLERGY AND LAITY UNITED FOR ECONOMIC JUSTICE-CALIFORNIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2011 NOTE 2-SIGNIFICANT ACCOUNTING POLICIES (continued)
Use of Estimates
The preparation of the financial statements in conformity with accounting
principles generally accepted in the United States of America 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.
Actual results could differ from those estimates.
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.
Contributions received are recorded as unrestricted, temporarily restricted, or
permanently restricted net assets depending on the existence or nature of any
donor restrictions.
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 at the date they are purchased to be cash equivalents.
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
Purchases of property and equipment having a unit cost per established guidelines
and a useful life of three years or more are capitalized at cost. Donations of
property and equipment are recorded as contributions at the estimated fair value at
date of receipt. Such donations are reported as unrestricted contributions unless
the donor has restricted the donated assets to a specific purpose. Assets donated
with explicit restrictions regarding their use and contributions of cash that must be
used to acquire property and equipment are reported as restricted contributions.
Depreciation is computed using the straight-line method over the estimated useful
lives of the assets ranging from three to five 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 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2011 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, 2011, the Organization had $227,028
of deferred revenue from grants received for contracts beginning in years 2010,
2011 and expiring after December 31, 2011. This revenue will be recognized in
years 2012 and 2013.
Income Taxes
The Organization is exempt from Federal income taxes under Section SOl(c) (3)
of the U.S. Internal Revenue Code and California income taxes under section
23701(d) of the California Revenue and Taxation Code. As a result, no provision
for income tax is included in the financial statements. The Organization is subject
to audit by tax authorities, including a review of its nonprofit status, which
management believes would be upheld upon examination. The Organization's tax
forms 990, Return of Organization Exempt from Income Tax are subject to
examination by the federal taxing authorities within three years from the latest
filing date. The Organization's tax forms 199 California Exempt Organization
Annual Information Return are subject to examination by the state taxing
authorities within four years from the latest filing.
8
CLERGY AND LAITY UNITED FOR ECONOMIC JUSTICE-CALIFORNIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2011 NOTE 2-SIGNIFICANT ACCOUNTING POLICIES (continued)
Contributed Services
Contributions or services are reported at fair value in the financial statements for
voluntary donations of services when those services (a) create or enhance non­
financial 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 generally pays for services requiring specific
expertise. However, some individuals volunteer their time and perform a variety
of tasks that assist the Organization operations, but these services do not meet the
criteria for recognition as contributed services.
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.
Fair Value Measurements
Financial Accounting Standard Board ("F ASB") Accounting Standards
Codification ("ASC") 820 establishes the fair value hierarchy that prioritizes the
inputs to valuation techniques used to measure fair value. This hierarchy consists
of three broad levels:
• Level 1 inputs are quoted prices (unadjusted) in active markets for
identical assets or liabilities that the reporting entity has the ability to
access at the measurement date.
• Level 2 inputs are inputs other than quoted prices included within Level 1
that are observable for the asset or liability, either directly or indirectly
through corroboration with observable market data (market-corroborated
inputs).
• Level 3 inputs are unobservable inputs for the asset or liability, that is,
inputs that reflect the reporting entity's own assumptions about the
assumptions market participants would use in pricing the asset or liability
(including assumptions about risk) developed based on the best
information available in the circumstances.
The carrying amounts of cash and cash equivalents, accounts receivable,
prepaid expenses, accounts payable, accrued expenses and other current
liabilities approximate fair value because of the short-term maturity of these
instruments.
9
CLERGY AND LAITY UNITED FOR ECONOMIC JUSTICE-CALIFORNIA NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2011
NOTE 2-SIGNIFICANT ACCOUNTING POLICIES (continued)
Subsequent Events
Events subsequent to December 31, 2011 have been evaluated by management
through June 26, 2012 the date at which the Organization's audited financial
statements were available to be issued. Management is not aware of any
subsequent events which require recording or disclosure in the financial
statements.
NOTE 3- CONCENTRATION OF CREDIT RISK
Financial instruments that potentially expose the Organization to concentrations
of credit risk consist primarily of cash, and accounts receivable. The
Organization places its cash with high credit, quality financial institutions. The
Organization has not experienced any losses in such accounts and believes it is
not exposed to any significant credit risk on these deposits.
NOTE4-ACCOUNTSRECEIVABLE
Accounts receivable are recorded when billed or accrued and represent claims
against third parties that will be settled in cash. All accounts receivable are
unsecured and non-interest bearing. A summary of accounts receivable at
December 31, 2011 is as follows:
u.s. Department of Labor
$
26,948
Change to Win
25,000
Unite Here, Local 2
20,557
U.S. Conference of Catholic Bishops
10,000
Unite Here, Local 11
7,770
California Federation of Teachers
3,000
Other
1,978
$
10 95,253
CLERGY AND LAITY UNITED FOR ECONOMIC JUSTICE-CALIFORNIA NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2011
NOTE 5- EQUIPMENT AND FURNITURE
Equipment and furniture at December 31, 2011 consisted of the following:
Office equipment
$
Less accumulated depreciation
5,272
3,913
Equipment and furniture, net
$
1,359
Depreciation expense for the year ended December 31, 2011 was $3,964.
NOTE 6- 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 7- PENSION PLAN
The Organization participates in a defined contribution retirement plan sponsored
by National Organizers Alliance. The plan is a voluntary elective 403(b) plan for
employees. The Organization contributes an amount equivalent to 5% of each
employee's salary on a monthly basis to the plan. Employees may elect to make a
contribution to the plan on their own behalf in an amount up to the maximum
contribution allowed by the Internal Revenue Service. The Organization made
contributions to the plan of $20,468 during the year ended December 31, 2011.
11