The Arabian Rescue Mission Inc
[a Non-Profit Organization]
Financial Statements
December 31, 2015
The Arabian Rescue Mission Inc
[a Non-Profit Organization]
Financial Statements
December 31, 2015
C O N T E N T S
Page
Independent Auditor’s Report1
Financial Statements
Statements of Financial Position2
Statements of Activities and Changes in Net Assets3
Statements of Functional Expenses4
Statements of Cash Flows5
Notes to Financial Statements6-7
Independent Auditor’s Report
Board of Directors
The Arabian Rescue Mission Inc
[a Non-Profit Organization]
Report on the Financial Statements
We have audited the accompanying financial statements of The Arabian Rescue Mission, Inc. [a Non-Profit Organization], which comprise the statements of financial position as of December 31, 2015, the related statements of activities and changes in net assets, functional expenses, and cash flows for the year then ended and the related notes to the financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The Arabian Rescue Mission, Inc.[a Non-Profit Organization] as of December 31, 2015 and the changes in its net assets and cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Sabal and Associates
Livingston, New Jersey
August 8, 2016
The Arabian Rescue Mission, Inc
[a Non-Profit Organization]
Statement of Financial Position as of December 31, 2015
ASSETSCURRENT ASSETS
Cash and cash equivalents / $ 16,216
Accounts receivable / 7,467
Prepaid Expenses / 20
Total current assets / 23,703
NET PROPERTY AND EQUIPMENT / 8,900
TOTAL ASSETS / $ 32,603
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable and accrued expenses / $ 116,947
Loans / 6,335
Total current liabilities / 123,282
NET ASSETS
Unrestricted / (90,679)
TOTAL LIABILITIES AND NET ASSETS / $ 32,603
See accompanying Notes to Financial Statements.
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The Arabian Rescue Mission Inc.
[a Non-Profit Organization]
Statement of Activities and Change in Net Assets
Year Ended December 31, 2015
See accompanying Notes to Financial Statements.
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The Arabian Rescue Mission, Inc.
[a Non-Profit Organization]
Statement of Functional Expenses
Year Ended December 31, 2015
See accompanying Notes to Financial Statements.
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The Arabian Rescue Mission, Inc.
[a Non-Profit Organization]
Statement of Cash Flows
Year Ended December 31, 2015
See accompanying Notes to Financial Statements.
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The Arabian Rescue Mission, Inc.
[a Non-Profit Organization]
Notes to Financial Statements
December 31, 2015
Note 1 - Organization and Summary of Significant Accounting Policies
- Nature of the Organization
The Arabian Rescue Mission, Inc is a non-profit corporation organized under the laws of the state of New Jersey. The Arabian Rescue Mission collects fees, solicits donations, and raises funds from other special events. The purpose of the Arabian Rescue Mission is to protect Arabian breed horsesthrough rescue efforts and medical care.
- Basis of Presentation
Under accounting principles generally accepted in the United States of America, The Arabian Rescue Mission is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. The Arabian Rescue Mission does not have any temporarily or permanently restricted net assets.
- Cash and Cash Equivalents
The Organization considers all unrestricted highly liquid investments with an initial maturity of three months or less to be cash equivalents.
- Accounts Receivable and Allowance for Doubtful Accounts
Accounts receivable represents current and collectible balances due from horse boarding fees. The Organization provides an allowance for doubtful accounts for receivables which are specifically identified by management as to their uncertainty in regards to collectability. As of December 31, 2015 management believes there was no need for an allowance for doubtful accounts.
- Property and Equipment
Property and equipment are stated at cost. Depreciation is provided in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives, on a straight-line basis. Property and equipment with a cost over $5,000 are capitalized.
- Support and Revenue
Contributions received are generally available for unrestricted use unless specifically restricted by the donor. All donor restricted support is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a donor restriction expires, that is when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statements of activities as net assets released from restrictions.
- Unrestricted Support
The Organization’s policy is to show restricted contributions whose restrictions are met in the same reporting period as unrestricted support.
- Tax Status
The Organization is exempt from Federal taxes under Section 501(c)(3) of the Internal Revenue Code and is also exempt from state income taxes.
Management evaluated the Organization’s tax positions and concluded that the Organization had taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance. With few exceptions, the Organization is no longer subject to income tax examinations by the U.S. federal, state, or local tax authorities for years before 2012.
- 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 the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
- Evaluation of Subsequent Events
The Organization evaluated subsequent events through July 28, 2016, the date the financial statements were available to be issued.
Note 2 – Property and Equipment
Note 3 – Donated Lease
Donated lease costs are recorded at their estimated fair market value at the date of donation. The donated services and in-kind contributions at December 31, 2015 were $30,000.
Note 4 - Related Party Transactions
The Organization currently has two loans outstanding with related parties. Both loans are demand loans which do not accrue interest. The total balance outstanding at December 31, 2015 was $6,335.
The Organization also purchases nutritional supplements from a vendor that is owned by the executive director. The relationship is conducted at arm’s length, consistent with market rates for such supplements. The total balance paid in 2015 was $4,847.
The Organization also rents a farm which is owned by the executive director. The relationship is conducted at arm’s length, consistent with market rates for such property. The total rent in 2015 was $18,000.
See accompanying Notes to Financial Statements.
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