Approved 9/26/13 Wisconsin Council on Children and

Transcription

Approved 9/26/13
Wisconsin Council on Children and Families, Inc.
Joint WCCF Foundation and Council Board of Directors Meeting
Friday, June 14, 2013
10:45 AM–2:30 PM
Madison Senior Center
330 W. Mifflin Street
Madison, WI 53703
Present:
WCCF President Joy Tapper, WCCF Vice President Helene Nelson, WCCF
Board Members Tonya Brito, Mary Haffenbredl, Nancy Heykes, Missy Jacobus
MacLeod, Donald Maurer (also WCCFF Treasurer), and Harry Ogden; WCCF
Foundation President Donald F. Schultz, WCCFF Board Members Patrick
Neuman; Christine Rew Barden; WCCF Executive Director Ken Taylor, WCCF
Deputy Director Jim Moeser, WCCF Office Manager Barbara Zuccarello, WCCF
Fund Development Coordinator Wenona Wolf, Government Relations Sabrina
Gentile; Wegner LLC Accountant Brian Dahlk.
Absent: WCCF Secretary Sandi Tunis, WCCF Treasurer Steve Mixtacki, WCCF
Board Members Pedro Colόn, Bob Duncan, Sheri Pattillo Johnson, Steve
Kinkade, Mary Rohrer, Susan Shafer-Landau, and Sue Vincent and Joseph Wall;
WCCFF Board members Shannon Davidson.
1. Welcome/Call to Order
President J. Tapper called the Friday, June 14, 2013 Joint WCCF and WCCF
Foundation Board Meeting at the Madison Senior Center to order at 11:00
a.m. Introductions were made around the table.
2. Approval of March 8, 2013 Minutes: WCCF Board Only
See “WCCF March 8, 2013 Minutes.” J. Tapper advised the board that due
to low meeting attendance there was possibly a quorum issue affecting
today’s approval of business items. It was noted that T. Brito was expected to
attend (giving the meeting a quorum). In the event that quorum is not
achieved today, the by-laws state that actions may be approved via email
confirmation by two-thirds of the board. In the meantime, action to approve
the March minutes was taken, pending the arrival of T. Brito or post-meeting
email approval as cited.
ACTION: If quorum is not achieved at today’s meeting, email
board members for vote on items requiring 2/3 board approval
(Responsibility: K. Taylor and B. Zuccarello). Postscript: T.
Brito arrived shortly after this note, establishing a quorum,
and making this action unnecessary for approval of this
meeting’s business items.
WCCF Board Meeting
June 14, 2013
A MOTION was made by M. Haffenbredl to approve the
minutes from the March 8, 2013 meeting. The motion was
seconded by D. Maurer and passed unanimously pending
approval by a quorum at this meeting or post-meeting
approval via email as cited. Note: Upon T. Brito’s arrival to this
meeting, the quorum requirement for approval of business
was met; T. Brito added her approval to this motion and the
minutes were finally and unanimously approved.
3. WCCF Foundation Report (D. Schultz). See “Gift Acceptance Policy,”
“Sample Gift Language” and “WCCFF Items Recommended to WCCF for
Approval.” At the meeting, D. Schultz distributed “Motion Language for
Council to Approve Four Items” as recommended by the Foundation board
today. D. Schultz provided an update on Foundation activities and progress
since the December board meeting noting:
- Beginning market value of the fund on January 1 was $481,794.78. At the
end of the first quarter on March 31, 2013 the market value was $510,988.36.
- Net of fees and a $20,000 distribution to the Council, the fund balance was
$500,793.50 as of 5/31/13; another $20,000 distribution may yet be made to
the Council in 2013;- $197,184.62 has been distributed to the Council since
the inception of the fund in 2004;
- Original deposit to the fund was $473,866—which means that fund is still
$20,000 ahead, through difficult economic times, and after having provided
$200,000 of support to the Council;
- D. Schultz thanked C. Rew Barden and W. Wolf for their work in developing
the planned giving resources;
- “Step Forward Society,” the group name chosen for planned giving donors
was chosen with the intention to focus on the future versus the past; one
person has committed to participate and is the first member of this group so
far;
- The Gift Acceptance Policy recommended for approval will be an aid to
potential contributors as well as protection for the Foundation and Council
from gifts that might be potential problems/liabilities;
- Approval of recommended Gift Language will assist donors;
- No date has been set for the achievement of the recommended $2.5 million
dollar Foundation fundraising goal; when that goal is achieved, the goal will
be increased;
- A planned giving brochure will be available in September 2013.
J. Tapper noted that the Foundation board will remain in session until
Foundation board members has approved the 2012 Audit (next agenda item).
A MOTION was made by N. Heykes to approve as
recommended by the WCCF Foundation board the following
Page 2 of 10
WCCF Board Meeting
June 14, 2013
four items:




“The Step Forward Society” as the name of the WCCF’s
society to encourage and recognize bequests and planned
gifts.
The “Gift Acceptance Policy” for contributions to the
WCCF.
The “Sample Gift Language” to assist donors in making
contributions to the WCCF.
The WCCF’s Foundation’s financial goal of $2.5 million.
The motion was seconded by H. Nelson and was approved
unanimously.
4. Finance Committee Report (K. Taylor)
a. Audit Review (B. Dahlk). See “2012 Audit Short Form” and “2012 Audit
Governance Letter.” K. Taylor introduced Auditor Brian Dahlk and shared
the fun fact that The Council on Human Concerns (former name of WCCF)
was one of the first twelve clients of Wegner LLP; Wegner now has 85 staff
and completes 100’s of audits each year. Brian Dahlk congratulated WCCF
for obtaining a clean and unqualified opinion, which is the highest opinion that
can be received. Accounting-wise 2012 was a very strong year for WCCF.
Brian reviewed the audit documents, noting the following:
- Auditors “test” the financial information an organization has produced during
an audit period; information in this audit report came from staff for “testing”
purpose;
- Auditors review information provided, conduct interviews, etc. in order to
express an opinion; no deficiencies were found in the Council’s internal
controls this year (the cash receipts process had been cited in the past, but is
now handled in a manner that rectifies previously cited deficiencies;
- The audit report combines financials of the Council and Foundation, that is,
consolidates them for formal reporting purposes;
- Financial reports produced internally may differ from audit financials, for
example, awards received in a given year may be reflected as revenue for
that year; WCCF’s deferred revenue is transformed to numbers that reflect
money not actually received within the year; essentially the difference
between “operating accounting” and “audit accounting” is due to when
revenue is “recognized” (timing is different);
- Funds that have been received, but not spent, are reflected in the category
of “temporarily restricted”
- Page 4 lists a brief summary of expenses for the year; page 5 provides a
more detailed expenses report;
Page 3 of 10
WCCF Board Meeting
June 14, 2013
- 90% of Council spending is allocated to program spending;
J. Tapper noted that bringing Accountant Nick Curran on board has improved
financial management.
ACTION: Send Wegner’s Brian Dahlk information requested to
complete tax returns—2012 Foundation and Council board
lists with officers named (Responsibility: B. Zuccarello).
ACTION: Due to hard copy orientation printing error of Audit
report noted at this meeting (some info on right side missing),
if desired, please request corrected hard copy from B.
Zuccarello (Responsibility: All Board Members, B. Zuccarello).
A MOTION was made by WCCF Foundation board member C.
Rew Barden to accept the findings of the 2012 audit as
presented today. The motion was seconded by Foundation
board member P. Neuman and approved unanimously.
A MOTION was made by WCCF board member D. Maurer to
accept the findings of the 2012 audit as presented today. The
motion was seconded by WCCF board member H. Ogden and
approved unanimously.
b. 2013 First Quarter Financials (K. Taylor). See Balance Sheet Prev Year
Comparison as of 03/31/13,” Profit and Loss, January through March
2013,” “P&L Budget vs. Actual, January—March 2013,” and” P&L Prev
Year Comparison, January—March 2013.”
K. Taylor reviewed the financial statements, noting the following:
 Profit &Loss statement through 3/31/13 reflects a negative balance: $6,474.32 (the Council had not yet taken the first $20,000 distribution
from the Foundation; through 5/31/13, the balance shifted to slightly in
the black with a positive balance of $874.00;
 A deficit of $83,000 for 2013 is projected at this time; this has been
discussed with the Finance and Executive Committees; 2013 started
off better than past years with $100,000 to raise to meet the 2013
budget (versus $250,000 needed at beginning of 2012 and $150,000
needed at the beginning of 2011; an 80% sure federal grant through
state government failed to materialize, increasing the amount needing
to be raised from $100,000 to $130,000; so far $50,000 has been
raised, bringing amount to be raised back down to $80,000;
 $100,000 received from three national funders last year failed to
materialize this year; a conservative estimate of what could be
expected this year based on previous success was $40,000, but in
Page 4 of 10
WCCF Board Meeting





June 14, 2013
fact, WCCF will receive no funds from these sources; Voices for
America—instead of providing $40,000—asked WCCF for a donation;
this was a surprise as WCCF is usually successful in getting these
funds; neither 1st Focus or Voices has funds to fund WCCF at this time;
a conference call with Voices is scheduled for Monday and K. Taylor
will be following up with 1st Focus on future possibilities; WCCF has
just applied to Wisconsin Partnership Program for funds in 2014; K.
Taylor has been gathering information on what non-profits may expect
from foundations in coming years and working on becoming better
known by Wisconsin funders that do exist;
J. Moeser, K. Taylor, and S. Gentile have been doing consulting and
advocacy paid work, so consulting revenue will increase a bit;
Fund development targets will need to be met (projected deficit
assumes they will be);
Staff continue to economize as much as possible; a clear message has
been given by both Finance and Executive Committee/board
leadership to not make staff adjustments at this time; staff are now
operating at full capacity (previously decreased by two);
At this time, it is anticipated that there will be a deficit at the end of
2013; N. Curran will close the books July 17; the Finance Committee
will be monitoring progress on a monthly basis;
The $40,000 in distributions from the Foundation in 2013 are written
into the budget.
Board member comments included:
 Staff are encouraged to look at how work today influences future
funding;
 The Council is not unique in this situation;
 The Finance Committee has agreed to avoiding automatic reactions to
unforeseen budget challenges;
 The board is grateful to have a strong Finance Committee to meet
these challenges.
ACTION: Provide feedback to K. Taylor regarding potential
funding, for example, for Race 2 Equity work (Responsibility:
All Board Members).
A MOTION was made by H. Nelson to accept the financial
reports presented at this meeting. The motion was seconded
by M. Jacobus MacLeod and was approved unanimously.
c. Board Designated Reserve Policy (K. Taylor). See “WCCF Board
Designated Reserve Policy.” K. Taylor noted that WCCF has a designated
reserve fund and a policy in place for accessing the reserve should this
become necessary; if there is a structural deficit, it needs to be taken on
openly and early; hopefully, it will not be necessary. A copy of this document
Page 5 of 10
WCCF Board Meeting
June 14, 2013
was provided for reference purposes—no action needs to be taken at this
time.
5. Fund Development (P. Neuman).
a. 2013 Progress. See “Grid as of 6-5-2013.” P. Neuman provided an
overview of current fundraising goals, activities and plans, and an update on
2013 funds received so far.
M. Haffenbredl and S. Tunis are co-chairs for 2013’s Step Forward for Kids.
The goal for 2012 was $43,000 and for 2013 it is $51,000. The SFFK
Committee is working on obtaining individual and corporate sponsorships.
Attendees enjoyed the silent auction at SFFK last year; this year larger items
(such as hotel stays) are being sought for the auction. M. Haffenbredl shared
that she is making her silver pledge ($500) today and encourage others to
make their contribution and to recruit or recommend others to support
WCCF’s mission. J. Tapper thanked M. Haffenbredl for co-chairing again, P.
Neuman for energizing WCCF’s fund development work, and W. Wolf and the
Fund Development Committee for their work on fund development. She noted
that WCCF is looking for training for the board on fund development and
marketing in this new world.
W. Wolf distributed Step Forward for Kids sponsor forms and a draft of
WCCF’s Planned Giving brochure. P. Neuman and W. Wolf reported that
the 2013 fundraising goal is $101,700 and shared the goal thermometer/chart
reflecting that $20,000 has been raised to date. It was noted that Spring
appeal proceeds are running low. A friendraiser is planned at Anne Arnesen’s
home in Madison on July 23 from 5:00-7:00 PM. P. Neuman thanked board
members for donations and pledges, which are almost at 100% for this year
already. P. Neuman noted that individual board member or board member
associate sponsorships for Step Forward for Kids are being requested (SFFK
contributions in addition to board pledges or other contributions).
ACTION: Submit (gold) Step Forward for Kids sponsorship
form to Wenona Wolf as soon as possible (Responsibility: All
Board Members).
ACTION: Email reminder about June 27 friendraiser to be held
at A. Arnesen’s home to all board members (Responsibility: W.
Wolf).
ACTION: Contact P. Neuman to offer help with friendraising
(Responsibility: All Board members).
ACTION: Let M. Haffenbredl or W. Wolf know of any contacts
for possible donations for the September 26 silent auction
(Responsibility: All Board members).
Page 6 of 10
WCCF Board Meeting
June 14, 2013
6. Nominations Committee Report (J. Tapper)
a. Board membership and recruitment. J. Tapper reported that R. Duncan
has volunteered to serve as Nominations Committee Chairperson
beginning July 1, 2013, and the Board Engagement Committee will be
meeting with him in a couple of weeks.
ACTION: Send names of individuals recommended for
consideration for Foundation or Council board membership to
K. Taylor to add to the list of potential candidates
(Responsibility: All Board members, K. Taylor).
7. State Budget Update and Dialogue (S. Gentile)
In the interest of time, this presentation and discussion took place over lunch.
Discussion/comments included:
 New budget reflects programs that cost more money to give people less
(T. Brito).
 There seemed to be no hope on the floor on any children and family
issues.
 WCCF’s next strategy conversation should address this “new
environment” and what it means for campaigns, community, people, and
voices—identify what strategies need to come forward (J. Tapper).
 Not knowing whether the economy will improve or not—not being able to
predict the future—WCCF can still lay the groundwork for whatever
situation develops (N. Heykes).
 $200 million in federal funds were rejected—what do they believe about
that (D. Maurer)?
 WCCF can wait for the dust to settle, sit where we are, then bring light to
the question of what might be (H. Nelson).
 We don’t want to wait too long for dust to settle—when things go wrong
there is a tendency to do what we always do, but harder and faster (J.
Moeser).
 Some organizations re-prioritize and identify and focus on the one target
there is a likelihood of succeeding with (M. Haffenbredl).
 Various groups look to WCCF as a convener; WCCF is seen as middle of
the road with a 130 year history; it is important for WCCF to try to
strengthen its role—other groups have to play an unnamed or background
role due to their funding sources (K. Taylor).
 Juvenile justice issues received some attention, such as, additional money
budgeted for children’s mental health (J. Moeser).
 We need to work on framing internally and with professional partners; and
need to tap into our board, a valuable resource (K. Taylor).
Page 7 of 10
WCCF Board Meeting



June 14, 2013
Kitty Rhoades letter to Ken Taylor regarding BadgerCare Plus coverage is
reflective of continuous follow-up; a small achievement, but clear line to
WCCF for making this change happen (K. Taylor).
Governor originally proposed $0 increase in education funding; voucher
program will go statewide; private school payers will receive $500 credit
for the first year and $1000 credit for the second year; lobbying to take the
caps off in the next budget; income tax reduction for sending kids to
private school ($10,000 for high school tuition and $4,000 for elementary
school tuition with no means testing (college tax reduction is meanstested) (S. Gentile).
There needs to be transparency of the process for key audiences. Is
education one of the few vital priorities for the Council? (J. Tapper).
ACTION: Between now and the September 26 board meeting
discuss arranging a meeting with staff to discuss with staff
how WCCF can be most effective in the world we currently live
in (Responsibility: K. Taylor, H. Nelson).
*****************************************************************************************
Recognition of Joy Tapper’s Contributions. This item was not listed on the
agenda. Time was taken to recognize Joy Tapper as she steps down as WCCF
Board President effective 7-1-2013. H. Nelson and K. Taylor expressed
appreciation for Joy’s dedication and contributions, and presented gifts on behalf
of all. Joy is not leaving the board at this time, just the role of President; Helene
Nelson will assume responsibilities of Council Board President on 7-1-2013.
*******************************************************************************************
8. Poverty Reduction Project (for input).
J. Moeser presented the PowerPoint “Children in Poverty Report:
Highlights for Board Presentation & Discussion-June 14, 2013.”
Comments/discussion included:
 In Dane County, children poverty rate for African American children is
74.9%, much higher than the state average; white child poverty rate is
5.5%, much lower than the state average. African American kids are
worse off in Dane County than in Milwaukee (where rate is 60%) and other
areas around the state (J. Moeser).
 People are skeptical about government and government-based solutions
(H. Nelson).
 People will ask why should they care or be afraid of this trend, and certain
people respond to fear sooner than to good will (D. Maurer).
 People don’t see the interconnections (N. Heykes).
 Can WCCF play a more vital role in the war on poverty? (J. Moeser).
 Should WCCF refresh the Vision 2020 project or pivot away from it? Is
there baggage there? How should new effort be branded? (K. Taylor).
Page 8 of 10
WCCF Board Meeting











June 14, 2013
WCCF has been invited to the Dane County Task Force on poverty
reduction, which is being invigorated (K. Taylor).
WCCF hopes to expand the Race 2 Equity project in Dane County where
race and poverty are the same things for the majority of kids (K. Taylor).
Community conversation around the state tend to be one-off, which don’t
change anything (K. Taylor).
Keep Jon Stellmacher of the Poverty Coalition in the Valley on our radar
(local folks addressing local needs); how can we get them to think
statewide? (N. Heykes).
Recently, YMCA has received pressure from their national organization to
do advocacy. The future is to partner with organizations around the state,
such as, Wisdom, YMCA, Council of Churches (K. Taylor).
Wisconsin Partnership Program—Dr. Marah Curtis—funding proposal for
poverty reduction has been submitted (K. Taylor).
Institute on Poverty in Madison contacts are Maria Cancian and Tim
Smeeding.
Churches/faith community contact is Dave Liners of WISDOM.
Connect with the Hunger Task Force in Milwaukee (M. MacLeod). K.
Taylor noted that he has been in contact as we have testified on some
bills around food stamps.
Who does WCCF need to talk to? We have to start somewhere, but have
limited resources (K. Taylor).
N. Heykes is interested in participating and exploring poverty issues with
H. Nelson and others (N. Heykes).
ACTION: Over next couple of months, speak to board
members individually to discuss what they are interested in
around poverty work (Responsibility: H. Nelson).
9. Other Business (J. Tapper).
a. Updated WCCF Board Roster 06-06-13
10. Adjourn
A MOTION was made by M. Haffenbredl to adjourn the meeting
at 2:35 p.m. The motion was seconded by N. Heykes and was
passed unanimously.
Appendices
Gift Acceptance Policy
Sample Gift Language
2012 Audit Short Form
2012 Audit Governance Letter
Page 9 of 10
WCCF Board Meeting
June 14, 2013
2013 BOARD MEETING SCHEDULE
Thursday, September 26 (special schedule 1:00 p.m. to 4:00 p.m.)
Friday, December 13
Council meetings are scheduled for 10:45 a.m. to 2:30 p.m. unless noted
otherwise.
Location of meeting to be determined prior to each meeting.
Page 10 of 10
WISCONSIN COUNCIL ON CHILDREN AND FAMILIES FOUNDATION
GIFT ACCEPTANCE POLICY
The Wisconsin Council on Children and Families Foundation, a not for
profit organization organized under the laws of the State of Wisconsin, encourages
the solicitation and acceptance of gifts to the Wisconsin Council on Children and
Families Foundation (hereinafter referred to as the Foundation) for purposes that
will help the Foundation to further and fulfill its mission. The following policy
governs the acceptance of gifts made to the Foundation for the benefit of any of its
programs. This policy applies to all other not-for-profit entities related to the
Wisconsin Council on Children and Families (the “Council”), including but not
limited to the Council and Foundation "WCCF". For purposes of this Gift
Acceptance Policy, both the Council and Foundation shall be referred to,
collectively, as "WCCF."
The mission of WCCF is to support the caring mission of WCCF's not-forprofit entities by cultivating relationships to provide funds and other resources
needed to enhance our mission as follows:
1.
Purpose of Policy. The Board of Directors of WCCF ("Board of
Directors") and its staff solicit current and deferred gifts from individuals,
corporations, and foundations to secure the future growth and missions of WCCF.
These policies and guidelines govern the acceptance of gifts by WCCF and
provide guidance to prospective donors and their advisors when making gifts to
WCCF. The provisions of these policies shall apply to all gifts received by WCCF
for any of its programs or services.
2.
Use of Legal Counsel. WCCF shall seek the advice of legal counsel
in matters relating to acceptance of gifts when appropriate. Review by counsel is
recommended for:
(a)
Closely held stock transfers that are subject to restrictions or
buy-sell agreements;
(b)
Documents naming WCCF as Trustee;
(c)
Gifts involving contracts, such as bargain sales or other
documents requiring WCCF to assume an obligation;
(d)
Transactions with potential conflict of interest that may
invoke IRS sanctions; and
(e)
Other instances in which use of counsel is deemed
appropriate by the Board of Directors.
3.
Conflict of Interest. WCCF will urge all prospective donors to seek
the assistance of personal legal and financial advisors in matters relating to their
gifts and the resulting tax and estate planning consequences.
4.
Restrictions on Gifts. WCCF will accept unrestricted gifts, and gifts
for specific programs and purposes, provided that such gifts are not inconsistent
with its stated mission, purposes, and priorities. WCCF will not accept gifts that
are too restrictive in purpose. Gifts that are too restrictive are those that violate the
terms of the corporate charter, gifts that are too difficult to administer, or gifts that
are for purposes outside the mission of WCCF. All final decisions on the
restrictive nature of a gift, and its acceptance or refusal, shall be made by the Gift
Acceptance Committee of the Board of Directors.
5.
The Gift Acceptance Committee. The "Gift Acceptance Committee"
is a special committee of the Board of Directors.
(a)
The Gift Acceptance Committee shall consist of:
(i)
The Executive Director of the WCCF;
(ii)
The WCCF Fund Development Committee Chair;
(iii)
The WCCF Board President; and
(iv)
The WCCF Foundation Board President
(b)
The Gift Acceptance Committee is charged with the
responsibility of reviewing all gifts made to WCCF, properly screening and
accepting those gifts, and making recommendations to the Board on gift
acceptance issues when appropriate. Standing policies of the Gift Acceptance
Committee include:
(i)
Unrestricted cash gifts require no need for Gift
Acceptance Committee involvement.
(ii)
If cash for a standing purpose, staff can handle.
(iii) Any unusual gift or unusual restrictions on a gift
require that the Executive Director review and present the gift to the Gift
Acceptance Committee for determination.
2
6.
Criteria Governing Gifts. The following criteria govern the
acceptance of each gift form:
(a)
Cash: Cash is acceptable in any form. Checks shall be made
payable to "WCCF" and shall be delivered to WCCF Foundation, 555 West
Washington Ave., Suite 200, Madison, WI 53703.
(b)
Tangible Personal Property: All other gifts of tangible
personal property shall be examined in light of the following criteria:
(i)
Does the property fulfill the mission of WCCF?
(ii)
Is the property marketable?
(iii)
Are there any undue restrictions on the use, display, or
(iv)
Are there any carrying costs for the property?
sale of the property?
The final determination on the acceptance of other tangible property gifts shall be
made by the Gift Acceptance Committee.
(c)
Securities: WCCF can accept both publicly traded securities
and closely held securities.
(i)
Publicly Traded Securities: Marketable securities
may be transferred to an account maintained at one or more brokerage firms or
delivered physically with the transferor’s signature or stock power attached. As a
general rule, all marketable securities shall be sold upon receipt unless otherwise
directed by the Gift Acceptance Committee. In some cases marketable securities
may be restricted by applicable securities laws; in such instance the final
determination on the acceptance of the restricted securities shall be made by the
Gift Acceptance Committee.
(ii)
Closely Held Securities: Closely held securities,
which include not only debt and equity positions in non-publicly traded companies
but also interests in LLPs and LLCs or other ownership forms, can be accepted
subject to the approval of the Gift Acceptance Committee. However, gifts must be
reviewed prior to acceptance to determine that:
[a]
there are no restrictions on the security that
would prevent WCCF from ultimately converting those assets to cash;
[b]
the security is marketable, and
3
[c]
the security will not generate any undesirable
tax consequences for WCCF. If potential problems arise on initial review of the
security, further review and recommendation by an outside professional may be
sought before making a final decision on acceptance of the gift. The final
determination on the acceptance of closely held securities shall be made by the
Gift Acceptance Committee and legal counsel when necessary. Every effort will
be made to sell non-marketable securities as quickly as possible.
(d)
Real Estate: Gifts of real estate may include developed
property, undeveloped property, or gifts subject to a prior life interest.
(i)
Prior to acceptance of real estate, WCCF shall require
an initial environmental review of the property to ensure that the property has no
environmental damage. In the event that the initial inspection reveals a potential
problem, WCCF shall retain a qualified inspection firm to conduct an
environmental audit. The cost of the environmental audit shall generally be an
expense of the donor unless specifically agreed to by the WCCF Director and
President.
(ii)
When appropriate, a title insurance commitment or
policy shall be obtained by WCCF prior to the acceptance of the real property gift.
The cost of this title binder shall generally be an expense of the donor. Prior to
acceptance of the real property, the gift shall be approved by the Gift Acceptance
Committee of WCCF and by the WCCF’s legal counsel.
(iii)
Criteria for acceptance of the property shall include:
[a]
Is the property useful for the purposes of
[b]
Is the property marketable?
WCCF?
[c]
Are there any restrictions, reservations,
easements, or other limitations associated with the property?
[d]
Are there carrying costs, which may include
insurance, property taxes, mortgages, or notes, etc., associated with the property?
[e]
Does the environmental audit reflect that the
property is not damaged?
(e)
Remainder Interests In Property: WCCF will accept a
remainder interest in a personal residence, farm, or vacation property subject to the
provisions of paragraphs 4 and 6(d) above. The donor or other occupants may
4
continue to occupy the real property for the duration of the stated life. At the
death of the donor, WCCF may use the property or reduce it to cash. Where
WCCF receives a gift of a remainder interest, expenses for maintenance, real
estate taxes, and any property indebtedness are to be paid by the donor or primary
beneficiary.
(i)
Oil, Gas, and Mineral Interests: WCCF may accept
oil, gas or mineral property interests, when appropriate. Prior to acceptance of an
oil, gas or mineral interest the gift shall be approved by the Gift Acceptance
Committee, and if necessary, by WCCF’s legal counsel.
(f)
Bargain Sales: WCCF will enter into a bargain sale
arrangement in instances in which the bargain sale furthers the mission and
purposes of WCCF. All bargain sales must be reviewed and recommended by the
Gift Acceptance Committee and approved by the Board of Directors. Factors used
in determining the appropriateness of the transaction include:
(i)
WCCF must obtain an independent appraisal
substantiating the value of the property;
(ii)
If WCCF assumes debt with the property, the debt
ratio must be less than 50% of the appraised market value;
(iii) WCCF must determine that it will use the property, or
that there is a market for sale of the property allowing sale within 12 months of
receipt; and
(iv) WCCF must calculate the costs to safeguard, insure,
and expense the property (including property tax, if applicable) during the holding
period.
(g)
Life Insurance: WCCF must be named as both beneficiary
and irrevocable owner of an insurance policy before a life insurance policy can be
recorded as a gift. The gift is valued at its interpolated terminal reserve value, or
cash surrender value, upon receipt. If the donor contributes future premium
payments, WCCF will include the entire amount of the additional premium
payment as a gift in the year that it is made. If the donor does not elect to continue
to make gifts to cover premium payments on the life insurance policy, WCCF
may:
(i)
Continue to pay the premiums;
(ii)
Convert the policy to paid up insurance; or
5
(iii)
Surrender the policy for its current cash value.
(h)
Charitable Gift Annuities: WCCF may offer charitable gift
annuities. The WCCF Executive Director will review the proposed gift for
approval after WCCF staff has obtained from the donor all pertinent information
regarding beneficiaries, charitable intent and the property to be transferred. If the
Charitable Gift Annuity is approved, WCCF staff will arrange for transfer of the
property, real or personal, to the charity, compute the estimated charitable
deduction for the donor and execute all other documents pertaining to the gift:
(a) Illustration of Benefits; (b) Gift Annuity Agreement; (c) Federal Income Tax
Computation; (d) IRS Form 8283, when applicable; and (e) Instructions for
reporting charitable income and gift tax deductions. The minimum gift for
funding is $5,000 initially and $3,000 for each additional contribution or annuity.
The WCCF Executive Director and Board President may make exceptions to this
minimum. The minimum age for life income beneficiaries of a gift annuity shall
be 45. No more than two life income beneficiaries will be permitted for any gift
annuity. Annuity payments to beneficiaries shall be based upon the prevailing
rates recommended by the American Council on Gift Annuities and may be made
quarterly, semi-annually, or annually. Income to the beneficiaries shall accrue
from the date of the gift. Payment for a partial time will be prorated. The WCCF
Executive Director and Board President may approve exceptions to this payment
schedule. WCCF will not accept real estate, tangible personal property, or any
other illiquid asset in exchange for current charitable gift annuities. WCCF may
accept real estate, tangible personal property, or other illiquid assets in exchange
for deferred gift annuities so long as there is at least a 5-year period before the
commencement of the annuity payment date, the value of the property is
reasonably certain, and the WCCF Executive Director and Board President
approve the arrangement. For investment purposes, the assets within each annuity
account may be commingled with the assets of WCCF, but for accounting
purposes, separate accounts will be established for each gift annuity in order to
determine the value of the residuum upon the death of the annuitant. For annuities
paid by WCCF and not reinsured with a commercial life insurance company, the
full value or net proceeds of the gift will be maintained as a separate account. All
earnings of each account shall be credited and all payments to annuitants shall be
debited to the separate accounts. For any annuity paid by WCCF, the [Financial
Officer] will file the following forms with the Internal Revenue Service: (1) Form
1099-R summarizing all payments to annuitants; and (2) Copy A of all Form W2P's are to be attached to Form 1099-R. Once those payments have terminated,
the funds representing the remaining principal contributed in exchange for the gift
annuity shall be transferred to such specific fund as designated by the donor, or if
none specified, to WCCF as an unrestricted gift.
6
(i)
Charitable Remainder Trusts: WCCF may accept designation
as remainder beneficiary of a charitable remainder trust with the approval of the
Gift Acceptance Committee. WCCF will not accept appointment as trustee of a
charitable remainder trust.
(j)
Charitable Lead Trusts: WCCF may accept a designation as
income beneficiary of a charitable lead trust. WCCF will not accept an
appointment as trustee of a charitable lead trust.
(k)
Retirement Plan Beneficiary Designations: Donors and
supporters of WCCF will be encouraged to name WCCF as beneficiary of their
retirement plans. Such designations will not be recorded as gifts to WCCF until
such time as the gift is irrevocable. When the gift is irrevocable, but is not due
until a future date, the present value of that gift may be recorded at the time the
gift becomes irrevocable.
(l)
Bequests: Donors and supporters of WCCF will be
encouraged to make bequests to WCCF under their wills and trusts. Such bequests
will not be recorded as gifts to WCCF until such time as the gift is irrevocable.
When the gift is irrevocable, but is not due until a future date, the present value of
that gift may be recorded at the time the gift becomes irrevocable.
(m) Life Insurance Beneficiary Designations: Donors and
supporters of WCCF will be encouraged to name WCCF as beneficiary or
contingent beneficiary of their life insurance policies. Such designations shall not
be recorded as gifts to WCCF until such time as the gift is irrevocable. Where the
gift is irrevocable, but is not due until a future date, the present value of that gift
may be recorded at the time the gift becomes irrevocable.
7.
Miscellaneous Provisions.
(a)
Securing Appraisals and Legal Fees for Gifts to WCCF: It
will be the responsibility of the donor to secure an appraisal (where required) and
independent legal counsel for all gifts made to WCCF. If IRS Form 8283 is
required by the Donor in order to substantiate his or her charitable deduction, the
Donor is responsible for preparation of such form unless as otherwise provided
herein.
(b)
Valuation of Gifts for Development Purposes: WCCF will
record a gift received by WCCF at its valuation for gift purposes on the date of
gift.
7
(c)
Responsibility for IRS Filings Upon Sale of Gift Items: The
Executive Director of the WCCF is responsible for filing IRS Form 8282 upon the
sale or disposition of any asset sold within two years of receipt by WCCF when
the charitable deduction value of the item is more than $5,000. WCCF must file
this form within 125 days of the date of sale or disposition of the asset. Form
8282 with Filing Instructions is attached as an appendix to these policies.
(d)
Acknowledgement of all Gifts made to WCCF and
Compliance With The Current IRS Requirements: Upon receipt of a gift, WCCF
shall provide to the Donor written acknowledgement of the gift, including the date
the gift was received by WCCF and a statement of the value, if any, of any benefit
received by the Donor in return.
8.
Changes to Gift Acceptance Policies.
These policies have been reviewed and accepted by the Gift Acceptance
Committee for all subsidiaries. The Gift Acceptance Committee and the Board of
Trustees must approve any changes to or deviations from these policies.
Approved on the ________ day of ____________, 2013.
WISCONSIN COUNCIL ON CHILDREN
AND FAMILIES FOUNDATION
By:
Name: Donald F. Schultz
Title: President,
Wisconsin Council on Children and
Families Foundation
By:
Name: Ken Taylor
Title: Executive Director,
Wisconsin Council on Children and
Families Foundation
8
Wisconsin Council on Children and Families
Sample Gift Language for Wills or Revocable Living Trusts
A gift to the Wisconsin Council on Children and Families or the Wisconsin Council on Children and
Families Foundation (collectively, “WCCF”) in your will or revocable trust enables you to support WCCF’s
mission and make a difference in the lives of future generations of Wisconsin’s children and families. A
bequest:
 Is easy to arrange,
 Will not alter your current lifestyle in any way,
 Can be easily modified to address the changing needs of your family.
Residual Gift Language: To make a residual gift to the WCCF of all or a portion of your estate after
expenses and specific bequests are paid:
 “ I give and devise to the Wisconsin Council on Children and Families, a not-for-profit charitable
organization located in Madison, WI, all (or state a percentage) of the rest, residue, and
remainder of my estate, both real and personal, to be used for its general support (or for the
support of a specific fund or program).
Specific Gift Language: To give the WCCF a specific amount or asset from your estate:
 “I give and devise to the Wisconsin Council on Children and Families, a not-for-profit charitable
organization located in Madison, WI, the sum of $________ (or asset) to be used for its general
support (or for the support of a specific fund or program).
Contingent Gift Language: To name the WCCF as a contingent beneficiary in your will or revocable trust
if a primary beneficiary predeceases you:
 “If (insert name) is not living at the time of my death, then such bequest shall pass to the
Wisconsin Council on Children and Families, a not-for profit charitable organization located in
Madison, WI, the sum of $_______ (or all or a percentage of the residue of my estate) to be
used for its general support (or for support of a specific fund or program).
Retirement Plan Beneficiary Language: You may name the WCCF as a beneficiary of your IRA or other
qualified retirement benefits. Donors should consult with their legal and tax advisors regarding the tax
benefits of such gifts.
Naming the WCCF as the beneficiary of a qualified retirement plan asset such as a 401(k), 403(b) IRA,
Keogh, or profit sharing pension plan will accomplish a charitable goal and may also realize significant
income and/or estate tax savings.
Request a beneficiary designation form from your plan administrator and consult with your attorney or
tax advisor to ensure the accurate completion of the new beneficiary designation form. Please return
the form to your plan administrator and notify the WCCF.
Customized Language
If you or your attorney would like the WCCF to provide you with customized beneficiary language that is
specific to your goals and interests, please contact us. This information is not offered as legal or tax
advice.
WISCONSIN COUNCIL ON CHILDREN AND FAMILIES, INC. AND
WISCONSIN COUNCIL ON CHILDREN AND FAMILIES FOUNDATION, INC.
CONSOLI DATED FINANCIAL STATEMENTS WITH
SUPPLEMENTARY INFORMATION
December 31,2012 and 2011
CONTENTS
Independent Auditor's Report.............................................................................................................
1
Consolidated Statements of Financial Position....................................................
3
Consolidated Statements of Activities
4
Consolidated Statements of Functional Expenses.............................................................................
5
Consolidated Statements of Cash Flows...........................................................................................
6
Notes to Consolidated Financial Statements........
7
Consolidating Schedules of Financial Position
14
Consolidating Schedules of Activities.................................................................................................
15
~
Wegner CPAs
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors
Wisconsin Council on Children and Families, Inc.
Madison, Wisconsin
We have audited the accompanying consolidated financial statements of Wisconsin Council on Children
and Families, Inc. and Subsidiary, which comprise the consolidated statements of financial position as of
December 31, 2012 and 2011, and the related consolidated statements of activities, functional expenses,
and cash flows for the years 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 consolidated 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 consolidated 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 consolidated financial statements based on our
audits. We conducted our audits 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 consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the consolidated financial statements. The procedures selected depend on the auditor's judgment,
including the assessment of the risks of material misstatement of thé consolidated 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 consolidated 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 consolidated 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 consolidated financial statements referred to above present fairly, in all material
respects, the consolidated financial position of Wisconsin Council on Children and Families, Inc. and
Subsidiary as of December 31, 2012 and 2011, and the changes in their net assets and their cash flows
for the years then ended in accordance with accounting principles generally accepted in the United States
of America.
Janesville Office:
101 E. Milwaukee Street
Suite 425
Janesville, WI 53545
P: (608) 756-4020
Baraboo Office:
123 Second Street
P.O. Box 150
Baraboo, WI 53913
P: (608) 356-3966
F: (608) 356-2966
Pewaukee Office:
W239 N3490 Pewaukee Road
Suite 200
Pewaukee, WI 53072
P: (262) 522-7555
F: (262) 522-7550
Madison Office:
2110 Luann Lane
Madison, WI 53713
P: (608) 274-4020
F: (608) 274-0775
www.wegnercpas.com
info@wegnercpas.com
(888) 204-7665
Report on Consolidating Information
Our audits were conducted for the purpose of forming an opinion on the consolidated financial statements
as a whole. The consolidating schedules of financial position and activities are presented for purposes of
additional analysis on the consolidated financial statements, rather than to present the financial position,
changes in net assets, and cash flows for the individual entities, and are not a required part of the
consolidated financial statements. Such information is the responsibility of management and was derived
from and relates directly to the underlying accounting and other records used to prepare the consolidated
financial statements. The consolidating information has been subjected to the auditing procedures applied
in the audit of the consolidated financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used
to prepare the consolidated financial statements or to the consolidated financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the consolidating information is fairly stated in all material respects in
relation to the consolidated financial statements as a whole.
~~CI~u.p
Wegner CPAs, LLP
Madison, Wisconsin
May 30,2013
WISCONSIN COUNCIL ON CHILDREN AND FAMILIES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
December 31, 2012 and 2011
2011
2012
ASSETS
CURRENT ASSETS
Cash
Receivables
Promises to give
Prepaid expenses
$
Total current assets
Equipment - net
OTHER ASSETS
Unemployment reserve fund
Investments
400,121
29,394
305,697
25,225
$
187,142
39,133
107,772
14,265
760,437
348,312
2,293
1,311
13,052
738,314
12,931
691,155
Total assets
$
1,514,096
$
1,053,709
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable
Provision for UC claims
Accrued vacation and related liabilities
$
54,352
19,736
17,880
$
32,976
19,817
14,355
Total liabilities
NET ASSETS
Undesignated
Designated for operating reserve
Designated for endowment
Total unrestricted net assets
Temporarily restricted
Total net assets
Total liabilities and net assets
$
See accompanying notes.
3
91,968
67,148
100,734
256,519
481,795
86,791
255,730
435,425
839,048
583,080
777,946
208,615
1,422,128
986,561
1,514,096
$
1,053,709
CONSOLIDATED STATEMENTS OF ACTIVITIES
Years ended December 31,2012 and 2011
2012
2011
$ 1,111,123
$ 1,330,006
164,105
59,518
24,512
48,873
8,030
170,476
61,517
23,698
4,940
8,715
1,416,161
1,599,352
1,422,821
1,405,826
104,887
35,966
130,499
37,581
1,563,674
1,573,906
189,865
18,750
159,375
26,077
61,102
210,898
583,080
28,654
(189,865)
(18,750}
(159,375)
(26,077}
374,465
(156,798}
Change in net assets
435,567
54,100
Net assets - beginning of year
986,561
932,461
UNRESTRICTED NET ASSETS
SUPPORT AND REVENUE
Grants
Projects, forums, and conferences
Contributions
Administrative fees
Investment return - net
Other
Total unrestricted support and revenue
EXPENSES
Program services
State education and public issues
Supporting activities
Management and general
Fundraising
Total expenses
NET ASSETS RELEASED FROM RESTRICTIONS
Expiration of time restrictions
Satisfaction of purpose restrictions
Change in unrestricted
net assets
TEMPORARIL Y RESTRICTED NET ASSETS
Contributions and grants
Net assets released from restrictions
Change in temporarily
restricted
net assets
$ 1,422,128
Net assets - end of year
4
$
986,561
WISCONSIN COUNCIL ON CHILDREN AND FAMillES,
INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FUNCTIONAL EXPENSES
State
Education
and Public
Issues
Personnel
Professional services
Occupancy
Travel, food, and lodging
Office expenses
Dues, fees, and subscriptions
Printing and copying
Telephone
Conferences and training
Postage and mailing
Depreciation
Advertising
$
Total expenses
$
674,269
622,512
52,571
19,989
19,384
12,531
8,730
5,142
2,929
2,645
1,886
233
$
1,422,821
$
State
Education
and Public
Issues
Personnel
Professional services
Occupancy
Travel, food, and lodging
Office expenses
Dues, fees, and subscriptions
Printing and copying
Telephone
Conferences and training
Postage and mailing
Depreciation
Advertising
Equipment
Other
$
Total expenses
$
Management
and General
76,054
15,799
6,043
2,018
1,889
1,395
133
591
345
301
217
102
$
104,887
$
Management
and General
726,684
546,843
50,760
38,234
13,869
12,533
5,651
5,262
1,237
1,405
965
1,580
803
$
1,405,826
$
84,186
31,344
5,881
1,367
1,583
3,756
209
610
22,041
2,112
1,812
7,086
567
419
1,596
178
5
$
772,364
640,423
60,426
29,093
21,840
14,345
10,459
5,911
3,274
3,036
2,168
335
$
1,563,674
90
65
35,966
2011
Total
Fundraising
$
30,861
194
2,156
2,123
581
532
76
223
,$
$
37,581
841,731
578,381
58,797
41,724
16,033
16,821
5,936
6,095
1,237
1,626
1,118
1,830
930
1,647
I
59
41
67
34
634
162
112
183
93
1,013
130,499,
2012
Total
Fundraising
$
1,573,906
CONSOLIDATED STATEMENTS OF CASH FLOWS
2011
2012
CASH FLOWS FROM OPERATING ACTIVITIES
Adjustments to reconcile change in net assets
to net cash provided by operating activities
Depreciation
Unrealized (gain) loss on investments
Realized gain on sale of investments
(Increase) decrease in assets
Receivables
Promises to give
Prepaid expenses
Increase (decrease) in liabilities
Accounts payable
$
435,567
$
54,100
2,168
(23,499)
(12,277)
1,118
15,786
(7,889)
9,739
(197,925)
(10,960)
(26,292)
43,335
3,813
21,376
(81)
3,525
(17,314)
(830)
{6,925}
227,633
58,902
(370,345)
358,962
(3,150)
{121}
(781,240)
766,234
Net cash used in investing activities
{14,654}
{15,070}
Change in cash
212,979
43,832
Cash - beginning of year
187,142
143,310
Net cash provided by operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments
Proceeds from sale of investments
Purchases of equipment
Cash - end of year
$
6
400,121
{64}
$
187,142
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2012 and 2011
Wisconsin Council on Children and Families, Inc. (WCCF) is a state wide voluntary association of citizens
and organizations dedicated to improving governmental and voluntary health and social welfare services.
The significant accounting policies followed are described below to enhance the usefulness of the
financial statements to the reader.
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Principles of Consolidation
The consolidated financial statements include the accounts of Wisconsin Council on Children and
Families, Inc. (Council) and Wisconsin Council on Children and Families Foundation, Inc.
(Foundation). The Council Board of Directors appoints a majority of the Directors of the
Foundation. The Foundation Board of Directors elects the remaining balance of the Directors of
the Foundation, subject to the approval of the Council Board of Directors. The Foundation was
formed primarily to support the Council. All significant interorganization transactions have been
eliminated.
Basis of Presentation
WCCF is required to report information regarding its financial position and activities according to
three classes of net assets:
Unrestricted net assets-Net assets that are not restricted by donors. Designations are voluntary
board-approved
investments.
segregations
of unrestricted
Temporarily restricted net assets-Net
net assets
for specific
purposes,
projects,
or
assets whose use has been limited by donor-imposed
time restrictions or purpose restrictions.
Permanently restricted net assets-Net
assets that have been restricted
by donors to be
maintained by WCCF in perpetuity.
Receivables
WCCF considers all receivables to be fully collectible. Accordingly, no allowance for doubtful
accounts is required. If receivables become uncollectible, they will be charged to operations
when that determination is made.
Promises to Give
Unconditional promises to give are recognized as support in the period the promises are
received. All unconditional promises to give are receivable within one year. Conditional promises
to give are recognized only when the conditions on which they depend are substantially met and
the promises become unconditional. WCCF considers all promises to give to be fully collectible.
Accordingly, no allowance for doubtful accounts is required.
If promises to give become
uncollectible, they will be charged to operations when that determination is made.
7
POLICIES (continued)
Equipment
Acquisitions of equipment in excess of $2,000 are capitalized.
Purchases of equipment are
recorded at cost. Donations of equipment are recorded as support at their estimated fair value on
the date of donation. Depreciation is provided using the straight-line method over the estimated
useful lives of the assets. In some instances, a funding source may have a reversionary interest
in equipment purchased with grant funds. Accumulated depreciation at December 31, 2012 and
2011 was $6,446 and $4,278.
Investments
WCCF carries investments in marketable securities with readily determinable fair values and all
investments in debt securities at their fair values in the consolidated statements of financial
position. Realized and unrealized gains and losses are included in the change in net assets in
the accompanying consolidated statements of activities.
Government Grants
Certain programs of WCCF are funded in part by service contracts with various government
agencies. Costs are allocated to these programs in accordance with established procedures and
are subject to audit by the government agency contracted to fund such programs.
No
determination has been made regarding the effect, if any, such audit could have on the
consolidated financial statements.
Financial awards received and expended are subject to review by
Wisconsin Department of Health Services, or other agencies providing
pursuant to authority given by law or regulation. Such reviews could
WCCF for disallowed costs or noncompliance with the provisions
agreements. No provision has been made for any liabilities that may
since the amount, if any, cannot be presently determined.
Milwaukee County, the
direct or indirect funding
result in claims against
of contracts and grant
arise from such reviews
Contributions'
Contributions are recognized when the donor makes a promise to give that is, in substance,
unconditional.
Contributions that are restricted by the donor are reported as increases in
unrestricted net assets if the restrictions expire in the year in which the contributions are
recognized. All other donor-restricted contributions are reported as increases in temporarily or
permanently restricted net assets depending on the nature of the restrictions. When a restriction
expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported
in the consolidated statements of activities as net assets released from restrictions.
Revenue Recognition
Projects revenue is recognized when WCCF has incurred expenses in accordance with specified
requirements.
Such amounts earned, but not received, are reported as receivables.
Such
amounts received, but not earned, are reported as deferred revenue.
8
POLICIES (continued)
Expense Allocation
The costs of providing the program services and supporting activities have been summarized on
a functional basis in the consolidated statements of activities and in the consolidated statements
of functional expenses.
Accordingly, certain costs have been allocated among the program
services. and supporting activities benefited. The following describes the state education and
public issues program included in the accompanying consolidated financial statements:
WCCF is a statewide agency working to improve the well-being of children and their families.
Council staff analyzes policy proposals, does research on children's issues and programs
and provides the information from these efforts to the public through conferences, forums and
publications.
Education and analysis of state policy on children's issues are provided
papers, blag postings and media outreach, and social media. Topics such
juvenile justice, welfare, health and early childhood education are the focus
and analysis. Education is also provided at conferences and public
implemented during the year.
through policy
as child abuse,
of this research
issues forums
Income Tax Status
The Council and Foundation are exempt public charities under Section 501 (c)(3) of the Internal
Revenue Code and therefore are not subject to federal and state income or franchise taxes. The
Council's and the Foundation's federal exempt organization returns are subject to examination by
the Internal Revenue Service, generally for three years after they are filed. With few exceptions,
the Council and the Foundation are are no longer subject to such examinations for tax years
before 2009.
Estimates
The preparation of consolidated financial statements requires management to make estimates
and assumptions that affect certain reported amounts and disclosures.
Accordingly, actual
results could differ from those estimates.
Reclassifications
Certain amounts in the prior year consolidated financial statements have been reclassified for
comparative purposes to conform with the presentation in the current year consolidated financial
statements.
Date of Management's Review
Management has evaluated subsequent events through May 30, 2013, the date which the
consolidated financial statements were available to be issued.
9
NOTE 2 - INVESTMENTS
Investments consisted of the following at December 31,2012 and 2011:
2011
2012
Council
$
Money market funds
256,519
$
255,730
Foundation
435,425
481,795
Mutual funds
$
Investments
738,314
$
691,155
Investment return consisted of the following for 2012 and 2011:
2011
2012
998
$
Operational interest
Investments Interest and dividends
, Realized gain
Unrealized gain (loss)
Investment return
Less investment fees
$
819
$
16,145
12,277
23,499
15,825
7,889
{15,786~
52,919
4,046
8,747
3,808
48,873
4,939
$
NOTE 3 - TEMPORARILY RESTRICTED NET ASSETS
Temporarily restricted net assets at December
following purposes or periods:
31, 2012 and 2011 were restricted
2011
2012
Wisconsin tax fairness project
Early learning for children at risk
Expanding health insurance to children
Early childcare quality rating system
Wisconsin Recovery Act impact
Subsequent year's activities
$
Temporarily restricted net assets
$
10
63,793
50,000
9,583
7,500
$
10,000
8,750
3,556
186,309
452,204
583,080
for the
$
208,615
NOTE 4 - CONDITIONAL
PROMISE TO GIVE
At December 31, 2012 WCCF had a conditional promise to give for $100,000. The award is
conditioned upon satisfactory progress on a project of advocacy for early learning for at-risk
children. If the conditions are met, half the award will be received in 2013 and the other half will
be received in 2014.
NOTE 5 - CONCENTRATION
OF CREDIT
WCCF maintains its cash balances at three financial institutions located in Madison, Wisconsin.
The balances are insured by the Federal Deposit Insurance Corporation up to $250,000. At
December 31,2012, WCCF's uninsured cash balances totaled $13,155.
NOTE 6 - FAIR VALUE MEASUREMENTS
Fair values of assets measured on a recurring basis at December 31,2012 were as follows:
Quoted
Prices in
Active Markets
for Indentical
Assets
{Level1)
Fair Value
Money market funds
Mutual funds
Significant
Other
Observable
Inputs
{Level2)
Significant
Unobservable
Inputs
{Level3)
$
265,343
472,971
$
265,343
472,971
$
$
$
738,314
$
738,314
$
$
Fair values of assets measured on a recurring basis at December 31, 2011 were as follows:
Quoted
Prices in
Active Markets
for Indentical
Assets
{LeveI1}
Fair Value
Money market funds
Mutual funds
Significant
Other
Observable
Inputs
{LeveI2}
Significant
Unobservable
Inputs
{LeveI3}
$
285,478
405,677
$
285,478
405,677
$
$
$
691,155
$
691,155
$
$
Fair values for money market and mutual funds are determined by reference to quoted market
prices and other relevant information generated by market transactions.
11
NOTE 7 - RETIREMENT PLAN
WCCF maintains a profit sharing plan pursuant to IRC Section 401(k) wherein eligible employees
may elect to contribute a percentage of their annual compensation (elective deferrals). Eligible
employees are defined as an employee who has attained 21 years of age. WCCF makes
discretionary matching contributions dollar for dollar up to 100% of a participant's elective
deferral. This maximum matching contribution may be adjusted at the discretion of the Board of
Directors. For 2012 and 2011 the match was 3%. In addition, discretionary contributions may be
made annually by WCCF as determined by the Board of Directors. WCCF made contributions to
the plan of $13,853 and $14,073 for 2012 and 2011.
NOTE 8 - CONTINGENCIES
Unemployment
WCCF has elected to fund unemployment on a direct reimbursement basis. WCCF has accrued
as a provision for future unemployment claims 3% of the three-year average of annual wages for
2012 and 2011.
Economic Dependency
WCCF received approximately 33% and 35% of its unrestricted support and revenue from the
Milwaukee County Mental Health Division in 2012 and 2011. If there were a significant reduction
in the level of this funding, it may have an effect on WCCF's programs and activities.
NOTE 9 - FOUNDATION ENDOWMENT
The Foundation's endowment consists of funds designated by the board of directors to function
as an endowment. As required by generally accepted accounting principles, net assets
associated with endowment funds, including funds designated by the board of directors to
function as endowments, are classified and reported based on the existence or absence of donorimposed restrictions. The Foundation's endowment is classified as unrestricted net assets; there
are no temporarily or permanently restricted endowment net assets.
The Foundation has adopted a statement of investment policy to ensure that all involved parties
have a clear understanding of the investment guidelines, goals and objectives for the assets of
the Wisconsin Council on Children and Families Foundation. Further, the policy establishes the
investment horizon for the Foundation portfolio, defines and assigns the responsibilities of all
involved parties, and clearly defines the parameters and limitations regarding the investment of
the Foundation's assets.
12
NOTE 9 - FOUNDATION ENDOWMENT (continued)
Changes in endowment net assets for 2012 and 2011 are as follows:
2011
2012
Board-designated endowment funds - beginning of year
Contributions
Interest and dividends
Realized gain
Unrealized gain (loss)
Investment fees
Amounts appropriated for expenditure
$
Board-designated endowment funds - end of year
$
435,425
$
429,933
3,700
13,496
7,889
(15,786)
(3,807)
$
435,425
14,640
12,277
23,499
(4,046)
481,795
The long-term investment objective of the Foundation's portfolio is growth, while also avoiding
excessive risk to principal.
In keeping with this objective, the Foundation's assets shall be
invested in accordance with the standard of care described in Wisconsin Statutes, Sections
881.01, the Uniform Prudent Investor Act, which require care, skill, prudence and diligence in the
decision-making process. Further, while the Board understands the inherent risk associated with
an investment portfolio, unnecessary levels of risk should be avoided, and sound asset allocation
policies and investment diversification are required to reduce the overall risk profile of the
portfolio.
.
The Board has established strategic asset allocation targets and ranges for the management of
the Foundation's portfolio. The asset allocation should be within 45% to 65% equities and 35% to
55% fixed income.
Each year the Foundation may distribute a portion of the Foundation's assets. The distribution
amount for any given year shall be determined by the Board. The amount of distribution is
determined during the year and is based on the operating needs of the Council.
NOTE 10 - LEASING ARRANGEMENTS
WCCF leases office space in Madison under an operating lease agreement that expires in
Decemoerzütê.
The lease requires monthly payments of $5,036, with annual increases of 2% of
the base rental. WCCF also leases two copiers under an operating lease agreement that
requires monthly payments of $495 and expires in March 2014. Lease expense was $66,366 and
$64,737 for 2012 and 2011. Future minimum lease payments are as follows:
2013
2014
2015
2016
$
67,780
64,562
64,339
65,625
Future minimum lease payments
$
262,306
13
WISCCONSIN COUNCIL ON CHILDREN AND FAMILIES, INC. AND WISCONSIN COUNCIL ON CHILDREN AND FAMILIES FOUNDATION, INC.
CONSOLIDATING SCHEDULES OF FINANCIAL POSITION
Council
ASSETS
CURRENT ASSETS
Cash
Receivables
Promises to give
Prepaid expenses
$
Total current assets
EQUIPMENT
Office equipment
Less accumulated depreciation
Equipment - net
OTHER ASSETS
Investments
Foundation
400,121
29,394
305,697
25,225
$
-
2012
Total
Eliminations
-
$
4,651
-
400,121
29,394
305,697
25,225
$
(4,651)
Council
$
Foundation
187,142
39,133
107,772
14,265
$
-
2011
Total
Eliminations
$
2,651
-
-
187,142
39,133
107,772
14,265
$
(2,651)
-
760,437
4,651
(4,651)
760,437
348,312
2,651
(2,651)
348,312
8,739
6,446
-
-
-
8,739
6,446
5,589
4,278
-
-
5,589
4,278
2,293
-
-
2,293
1,311
-
-
1,311
13,052
256,519
-
-
13,052
738,314
12,931
255,730
-
-
481,795
435,425
-
12,931
691,155
-
Total assets
$ 1,032,301
$
486,446
$
{4,651}
$ 1,514,096
$
618,284
$
438,076
$
{2,651}
$ 1,053,709
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable
$
$
-
$
(4,651)
$
$
35,627
19,817
14,355
$
-
$
(2,651)
$
Total liabilities
NET ASSETS
Undesignated
Designated for operating reserve
Designated for endowment
59,003
19,736
17,880
-
-
-
54,352
19,736
17,880
96,619
-
(4,651)
91,968
69,799
-
96,083
256,519
4,651
-
100,734
256,519
481,795
84,140
255,730
2,651
-
435,425
-
-
-
(2,651)
67,148
-
86,791
255,730
435,425·
777,946
208,615
-
481,795
Total unrestricted net assets
Temporarily restricted
352,602
583,080
486,446
-
839,048
583,080
339,870
208;615
438,076
-
-
-
Total net assets
935,682
486,446
-
1,422,128
548,485
438,076
-
Total liabilities and net assets
$ 1,032,301
$
486,446
$
(4,651)
14
$ 1,514,096
$
618,284
$
438,076
$
32,976
19,817
14,355
(2,651)
-
986,561
$ 1,053,709
WISCCONSIN
COUNCIL ON CHILDREN AND FAMILIES, INC. AND WISCONSIN COUNCIL ON CHILDREN AND FAMILIES FOUNDATION,
CONSOLIDATING SCHEDULES OF ACTIVITIES
Years ended December 31, 2012 and 2011
Council
UNRESTRICTED NET ASSETS
SUPPORT AND REVENUE
Grants
Contributions
Projects, forums, and conferences
Administrative fees
Other
$1,111,123
57,518
164,105
2,503
24,512
8,030
Total unrestricted support and revenue
Total expenses
NET ASSETS RELEASED FROM RESTRICTIONS
net assets
Change in temporarily
restricted
net assets
-
$
2,000
46,370
-
48,370
Council
-
$ 1,111,123
59,518
164,105
48,873
24,512
8,030
$ 1,330,006
55,166
170,476
3,148
23,698
8,715
-
1,416,161
1,591,209
1,422,821
1,405,826
104,887
35,966
Foundation
2011
Total
Eliminations
-
-
$ 1,330,006
61,517
170,476
4,940
23,698
8,715
-
1,599,352
-
-
1,405,826
130,499
37,581
-
-
130,499
37,581
$
$
6,351
1,792
8,143
1,422,821
-
-
104,887
35,966
-
-
1,563,674
-
-
1,563,674
1,573,906
-
-
1,573,906
189,865
18,750
-
-
189,865
18,750
159,375
26,077
-
-
159,375
26,077
-
61,102
202,755
-
210,898
-
12,732
TEMPORARILY RESTRICTED NET ASSETS
Contributions and grants
Net assets released from restrictions
2012
Total
Eliminations
$
1,367,791
EXPENSES
Program services
State education and public issues
Supporting activities
Management and general
Fundraising
Change in unrestricted
Foundation
INC.
48,370
-
8,143
583,080
-
-
583,080
28,654
-
-
28,654
(189,865)
{18,750~
-
-
(189,865)
{18,750~
(159,375)
(26,077)
-
-
(159,375)
(26,077)
374,465
-
-
374,465
(156,798)
-
-
(156,798)
387,197
48,370
-
435,567
45,957
8,143
-
54,100
Net assets - beginning of year
548,485
438,076
-
986,561
502,528
429,933
-
932,461
-
$ 1,422,128
Net assets - end of year
$
935,682
$
486,446
$
15
$
548,485
$
438,076
$
-
$
986,561

Approved 9/26/13 Wisconsin Council on Children and

Transcription

Similar documents

share. don`t keep us a secret anymore. Let your friends and family in

Five Love Languages Summary

Brownlee House Project Receives $500,000 Grant

WCCF Executive Committee Meeting Friday, February 20, 2015 1:30

return exchange - Vermont Teddy Bear Company

TUNE TOWN REWARDS PROGRAM - North Valley Orthodontics

mr kold kuts.indd - U Save Coupon Book

Raffles Fun Stuff Food Entrance Fee Family Event Trucks in

Consultant`s Home Party Guide

here

Help Support Our Cause For Paws!