Annual board meeting minutes, June 7, 1994 (financial statements omitted)

JEWISH FEDERATION OF LAS VEGAS ANNUAL BOARD MEETING MINUTES JUNE 7, 1994 Douglas Unger, Chairman of the Nominating Committee, said it was the task of the Committee to introduce new leadership on the Federation Board of Directors, and to formulate and Executive Committee. He thanked the following member of his Nominating Committee for their assistance in accomplishing this import task: Elaine Galatz Melanie Greenberg Dan Goldfarb Edythe Katz Sandy Ma11in Arne Rosencrantz Doug announced the following as proposed Board Members to the Federation Board: Sheldon Adelson Shelley Berkley Dr. Allan Boruszak Mark Fine Gene Greenberg Danny Greenspun David Gross Judge Jack Lehman Emily Novick Michael Novick Irene Perer David Ober Milton I. Schwartz Dennis Stein Deanne Stralser Dr. Harris Waters Doug Unger asked for nominations from the floor and then he motioned that the aforementioned be elected as Board Members of the Jewish Federation of Las Vegas. The motion was seconded and Elaine Galatz called for the vote. The motion carried. Doug Unger motioned the following be elected as Officers of the Federation Board: Treasurer, Ira Fischbein Secretary, Sandy Mallin Second Vice President, Doug Unger First Vice President, Mike Novick President, Dr. Allan Boruszak The motioned was seconded and Elaine Galatz called for the vote. The motion carried. Meeting adjourned. JEWISH FEDERATION OF LAS VEGAS (A NON-PROFIT ORGANIZATION) FINANCIAL STATEMENTS JUNE 30, 1994 JEWISH FEDERATION OF LAS VEGAS JUNE 30, 1994 TABLE OF CONTENTS PAGE NO. INDEPENDENT AUDITORS' REPORT 1 FINANCIAL STATEMENTS Balance Sheet 2-3 Statement of Activity 4 Statement of Functional Expenses 5 Statement of Changes in Financial Position 6 Notes to Financial Statements 7-15 ( M a i n G o r m a n & C o . Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Board of Directors of Jewish Federation of Las Vegas Las Vegas, Nevada We have audited the accompanying balance sheet of Jewish Federation of Las Vegas (a non-profit organization) as of June 30, 1994, and the related statements of activity, functional expenses, and changes in financial position for the year ended then ended. These financial statements are the responsibility of the Federation's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. 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 Jewish Federation of Las Vegas, as of June 30, 1994, and the results of its operations and the changes in its financial position for the year then ended in conformity with nonoraiiv/ arronto^ accounting principles. South Sixth Street ? Suite 200 ? Las Vegas. Nevada 89101 ? (702) 386-4100 ? Fax (702) 386-4144 Mailing Address: Post Office Box 1200 ? Las Vegas. Nevada 89125-1200 JEWISH FEDERATION OF LAS VEGAS NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 1994 NOTE 1 - ORGANIZATION The Jewish Federation of Las Vegas (the "Federation") was incorporated on February 25, 1966 as a non-profit corporation and was formed for the purpose of acquiring, administering and allocating funds for charitable purposes to international, national and local Jewish institutions and associations. The Jewish Federation of Las Vegas encompasses two major groups of funds: the Federation and the Foundation. The Federation was established to account for those resources available for use at the discretion of the governing board. The Foundation administers resources over which the board has less discretion as to use because of externally imposed restrictions. In addition to contributions generated by the General Campaign, the Federation also includes support from two major campaigns: Project Renewal and Operation Exodus, contributions from which are earmarked for a specific purpose. The Foundation administers the endowment funds which represent the principal amount of gifts and bequests accepted with the donor-stipulation that the principal be maintained intact in perpetuity or until the occurrence of a specified event, or for a special period (term endowment). Only the income from investment of the corpus can be expended for purposes specified by the donor. The Foundation is also the recipient of donations which are maintained in philanthropic funds and are used - 7 - JEWISH FEDERATION OF LAS VEGAS NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 1994 NOTE 1 - ORGANIZATION (CONTINUED) for worthy causes or projects as directed and approved by the Board of Directors' Endowment Committee and the donor. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Fund Accounting In order to ensure observance of limitations and restrictions placed on the use of the resources available to the Federation, the accounts are maintained in accordance with the principles of "fund accounting." This is the procedure by which resources for various purposes are classified for accounting and reporting purposes into funds that are in accordance with activities or objectives specified. Separate accounts are maintained for each fund; however, in the accompanying financial statements, funds that have similar characteristics have been combined into fund groups. Accordingly, all financial transactions have been recorded and reported by fund group. Within each fund group, funds restricted by outside sources are so indicated and are distinguished from unrestricted funds designated for specific purposes by action of the governing board. Externally restricted funds may only be utilized in accordance with the purposes established by the sources of such - 8 - JEWISH FEDERATION OF LAS VEGAS NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 1994 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Fund Accounting (Continued) funds and are in contrast with unrestricted funds over which the governing board retains full control to use in achieving any of its purposes. Cash and Cash Equivalents For purposes of this statement, the Federation considers all highly liquid investments to be cash equivalents. Property and Equipment Property and equipment are stated at cost or, if acquired by donation, at values established as representative of fair value at the date of acquisition. Additions, replacements, and improvements which significantly extend the life of an asset are capitalized. Repair and maintenance expenditures are charged to operations. Depreciation is computed using the straight-line method with estimated useful lives of 3 to 31 1/2 years. When assets are sold or retired, the cost and accumulated depreciation are removed from the appropriate accounts, and the resulting gain or loss is included in operations. - 9 - JEWISH FEDERATION OF LAS VEGAS NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 1994 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Income Taxes The Federation has been granted tax-exempt status under section 501(c)(3) of the Internal Revenue Code of 1954. Therefore, no provision for Federal income taxes has been made in these statements. Deferred Revenue Cash donations and pledges received which are specified by the donor for use in future periods are recorded as deferred revenue. The donation or pledge is recorded as revenue or support in the year in which it may be used. General campaign donations of marketable securities and State of Israel Bonds, which are restricted by nature of the instrument itself, are recorded as deferred revenue. Donated Materials and Services Donated materials are recorded as contributions in the accompanying statements at their estimated fair values at date of receipt. No amounts have been reflected in the statements for donated services inasmuch as no objective basis is available to measure the value of such services; however, a substantial number 10 - JEWISH FEDERATION OF LAS VEGAS NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 1994 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Donated Materials and Services (Continued) of volunteers have donated significant amounts of their time in the organization's program services and in its fund-raising campaigns. Statement of Functional Expenses Direct costs are charged to program services or management and general, based upon services provided or based upon their direct applicability to the area. Indirect costs are generally allocated based on direct costs charged to those areas. NOTE 3 - INVESTMENTS Investments at June 30, 1994, are stated at the lower of cost of market value. Investments are composed of the following: Money Market Funds $ 606,405 Certificates of Deposit 281,000 U.S. Treasury Bonds 76,898 Guaranteed Mortgage Obligations 175,453 Mutual Funds 76,514 Corporate Securities 90,289 State of Israel Bonds 315,360 1,621,919 Less, Short-term Investments 1,012,764 $ 609.155 Certain investments in State of Israel Bonds and marketable equity securities are carried as long-term investments in the accompanying financial statements. Both the bonds and the securities are unavailable for use as support until future - 11 - JEWISH FEDERATION OF LAS VEGAS NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 1994 NOTE 3 - INVESTMENTS (CONTINUED) periods due to certain restrictions implicit in the instruments themselves and, as such, are recorded as deferred revenue until those restrictions lapse or the instruments become available for use in the operations of the Federation. NOTE 4 - NOTES RECEIVABLE Notes receivable consist of the following: 10% note receivable, principal and interest due in annual installments of $19,784 including interest, through 1994, collateralized by land $ 17,989 10% note receivable, due in semi-annual installments of $7,500, plus interest, through 1995, collateralized by land 22,500 9% note receivable, due in semi-annual installments of $5,055 including interest through 1996, collateralized A portion of the proceeds from the sale of certain land donated to the Foundation has been restricted by the donor for payment to Pardes Hanna, an agricultural school in Israel. As collections are made on the notes receivable, payments are remitted to the school. . At June 30, 1994, the Foundation has recorded a liability to the school in the amount of $32,391. by land 33,343 73,832 Less, Short-term Notes Receivable 52,436 $ 73,832 - 12 - JEWISH FEDERATION OF LAS VEGAS NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 1994 NOTE 5 - PROPERTY AND EQUIPMENT Property and equipment consist of the following: Land $ 221,000 Building and Improvements 1,161,815 Furniture and Equipment 100,944 Signs 32,760 1,516,519 Less, Accumulated Depreciation 156,142 $1,360,377 NOTE 6 - EMPLOYEE RETIREMENT BENEFITS The Federation has a defined contribution retirement plan that covers all employees who have completed 30 months of service. Contributions to the plan are made at the discretion of the Board of Directors. Contribution expense under the Plan was $14,668 for the year ended June 30, 1994. The Federation is liable for vested severance pay for employees hired prior to January 1, 1988. The liability is approximately $21,410 at June 30, 1994. The Board originally has designated $50,000 of the Federation's current unrestricted fund balance as a reserve for this liability. NOTE 7 - FOUNDATION DONATION During 1991, the Federation received approximately $300,000 upon the death of a prominent benefactor. An additional donation of approximately $39,000 was received during 1992. Those donations are restricted for ten years for the specific purpose - 13 - JEWISH FEDERATION OF LAS VEGAS NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 1994 NOTE 7 - FOUNDATION DONATION (CONTINUED) of establishing a Jewish Home for the Aged in Las Vegas, Nevada. If, at the end of the ten-year period a Jewish Home for the Aged has not been established, then the donation becomes available for use at the discretion of the Board of Directors. The donations, plus earned interest, are included in deferred revenue in the accompanying financial statements. NOTE 8 - NOTE PAYABLE Note payable consists of the following: 8.25% note, originated September 23, 1993, payable in 59 monthly principal and interest payments of $2,184 with a balloon payment of approximately $109,000 at September 23, 1998 $ 168,822 NOTE 9 - PRIOR PERIOD ADJUSTMENTS In prior years, land acquired by donation was recorded at $1 as the fair value of such land could not be readily determined. Management received information during the current fiscal year which has made it possible to record the land at its value as of the date of contribution. Accordingly, a prior period adjustment of $237,000 has been made to the Foundation Fund to adjust the land to its fair value. - 14 - JEWISH FEDERATION OF LAS VEGAS NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 1994 NOTE 9 - PRIOR PERIOD ADJUSTMENTS (CONTINUED) In the prior year, the Federation changed its year-end from a calendar to a fiscal year end of June 30. As a result of this change, all 1993 campaign pledges not collected at June 30, 1993 were deferred to the following year. Expense allocations related to these pledges should have also been deferred to the following year. Accordingly, a prior period adjustment has been made to the Federation Fund to recognize these expense allocations in the year in which the pledges have been recorded as support. - 15 -