CONSUMER CREDIT COUNSELING SERVIPE OF` ALABAMA

CONSUMER CREDIT COUNSELING
SERVIPE OF' ALABAMA, INCORPORATED
F'INANCIAL STATEMENTS
. DECEMBER 31.2014
TOGETHER WI TH INDEPENDENT AUDITOR'S REPORT
CONSUMER CREDIT COUNSELING
SERVICE OF ALABAMA, INCORPORATED
Financial Statements
December 31,2014
Table of Contents
Independent Auditor's
Repqrt...
Statement of Financial
Position..
Statement of Activities and Chanses
inNet
Statement of Functional Expenses...
...
Statement of Cash Flows....
Notes to Financial
.......1
...........3
Assets
............4
............5
i......
Statements
..........7
Jenkins &S Associates, P.C.
600 SourH COURT $TREET P.O. Box 4246 MoNTGoMERY, ALABAMA 36 103
334.262,7977 . FAx..334.262.77 1O O E-MAIL: FRANKAJ@BELLSOUTH.NET
PHONE:
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors of the
Consumer Credit Counseling Servioe of Alabama, Incorporated
We have audited the accompanying financial statements of the Consumer Credit Counseling Service of
Alabama, Incorporated (a nonprofit organization), which comprise the statement of financial position as
of December 3I, 2014, and the related statements of activities, 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 tho 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 n:raintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
elTor.
Auditoros Responsibility
Our responsibility is to express ax opinion on these financial statements based on our audit. pe
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 from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The progedures selected depend on the auditor's judgment, including {he
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessrarents, 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 intemal 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, fhe
financial position of Consumer Credit Counseling Service of Alabama, Incorporated as of December 31,
2013, and the changes in its net apsets and its cash flows for the year then ended in accordance #ith
accounting principles generally accepted in the United States of America.
Report on Summarized Comparative Information
We have previously audited the Consumer Credit Counseling Service of Alabama, Incorporated's 2Q13
financial statements and we expressed an unmodified audit opinion on those audited financial statemehts
in our report dated July 18, 2014.In our opinion, the summarized comparative information presenfed
herein as of and for the year ended December 31, 2013, is consistent, in all material respects, with
audited financial statements from which it has been derived.
ImAinA and. Q6&dslpl,
August 6,2015
@fu
CONSUMER CREDIT COUNSELING SERVICE OF ALABAMA, INC
MONTGOMERY. ALABAMA
STATEMENTS OF FINANCIAL POSITION
DECEMBER 31.2014 AND 2013
ASSETS
2014
2013
CURRENT ASSETS:
Cash
Program fees receiyable
Prepaid expenses
Total current assets
1
19,640
$
120,501
1,951
PROPERTY AND EQUIPMENT. AT COST:
Building
Computer equipment
Office equipment
Furniture and fixtures
Leasehold lmprovements
Less: Accumulated depreciation
Total prqperty and equipment
4,393
125,984
124,604
105,000
23,637
105,000
23,637
26,524
26,524
669
9,603
165,433
61,774
103,659
669
9,603
165,433
59,410
106,023
4,1 03
$ 229,643 $
Total assets
230,627
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES:
Accounts payable
Accrued payroll and employee benefits
Debtors' escrow payable
Total current liabilities
$
OTHER LIABILITIES:
Mortgage Note Payable
NET ASSETS:
Unrestricted
Temporarily restricted
Total net assets
Total liabilities and net assets
$
1,939
17,066
1,057
1,091
20,062
15,481
2,627
1 9,1 99
69,441
69,441
74,301
74,301
140,140
137,127
140,140
137,127
229,643
The accompanying notes are an integral part of these financial statements
$
230.627
CON$UMER CREDIT COUNSELING SERVICE OF ALABAMA, INC
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31,2014
(WITH COMPAMTIVE TOTALS FOR 2013)
UNRESTRICTED
REVENUE AND SUPPORT:
Program service revenue:
Debit managemgnt program fees
Creditor "fair share" payments
Creditor grants
Housing and other grants
Credit reports
Counseling fees
Restricted grants that met restriction
in current year
Total program service revenue
Other donations and miscellaneous income
lnterest income
Loss on disposition of long term assets
Total revenue and support
'
TEMPORARILY
RESTRICTED
19,589
12,051
TOTALS
2014
$
ot,ozz
$
19,589
12,051
4
,155
20,795
4EE,
1,330
20,795
25,264
51
_-_
18325S
295
51
183,604
183,604
183,258
295
32,490
24,914
93,386
18,638
67,622
62,046
62,046
1
2013
1s63tT
518
53
1
96,593
Expenses:
Program servicqs:
Housing
62,587
62,587
43,072
Debt management
Credit report$
Educational
Total program seryices
48,807
48,807
55,893
Supporting servlces:
Administrative
Fundraising
Total supporting services
Total expenses
58,423
58,423
16931?
16f.,81?
69,1 82
168,147
10,774
10,774
37,241
10.774
10,774
37,241
180.591 205.388
180,591
TNCREASE (DECREASE) rN NET ASSETS
3,013
3,013
NET ASSETS AT BEGINNING OF YEAR
137,127
NET ASSETS AT END OF YEAR
MA 119_ _$____________-_
137,127
_S__99&q_
The accompanying notes are an integral part of these financial statements
(8,795)
145,922
_9_137_Jn_
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CONSUMER CREDIT COUNSELING SERVICE OF ALABAMA, INC
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31,2014 AND 2013
OASH FLOWS FROM (USED FOR) OPERATTNG ACTtVtTtES:
Change in net assets
Adjustments to reconcile ohanges in net assets to net cash from
operating activities:
Depreciation
Loss on disposition of long term assets
Decrease (increase) in operating assets and increase
(decrease) in operating liabilities:
Program fees receivable
Prepaid expenses
Security deposits
AccoUnts payable
Accrued payroll and employee benefits
Debtors' escrow payable
Cash flows used in operating activities
2014
2013
3,013
(8,7e5)
2,364
2,364_
(1
,e51)
(2e0)
847
1,585
(1,570)
3,998
(1
56)
1,Og;
159
(774)
(6,1 10)
CASH FLOWS FROM (USED FOR) tNVEST|NG ACTtVtTtES:
Acquisition of Building, lmprovements and Equipment
Cash flows used in investing activities
CASH FLOWS FROM (USED FOR) INVEST|NG ACTIVITIES:
Loan Proceeds from mortgage
Payments on Mortgage
Cash flows used in financing activities
NET TNCREASE( DECREASE) tN CASH
CASH AT BEGINNING OF YEAR
(4,859)
(4,5e8)
(4,85e)
(4,5e8)
(861)
120,501
(10,708)
131 ,209
CASH AT END OF YEAR
_g__1e,q4_ _q__l2qg9l
INTEREST PAID
3____4,470_ _9___4,226_
The accompanying notes are an integral part of these financial statements
CONSUMER CRE,DIT COUNSELING SERVICE
OF ALABAMA INCORPORATED
NOTES TO FINANCIAL STATEMENTS
DECEMBBR 31. 2014
NOTE A-NATURE OF ACTIVITIES AND SIGNIF'ICANT ACCOUNTING
POLICIES
Nature of Activities-Consumer Credit Counseling Service of Alabama, Incorporated
(CCCSA) is a private, nonprofit organization. The CCCSA's purpose is to provide
financial, education, housing counseling, and debt payment services to the general public.
Services provided by CCCSA include advising persons seeking credit, budget and
financial advice, counselling prospective homebuyers, working with delinquent
homeowners, cooperating with public and private agencies, organizations and
associations; and assisting families and persons experiencing financial difficulties.
CCCSA's services are conducted out of offices in Montgomery, Alabama. Consequently,
economic fluctuations in central Alabama could ultimately affect operating results.
Approximately 36.83 of CCSA's support came from grants during 2014.
Contributions- Contributions are recognized when the donor makes a promise to give to
the Center that is, in substance, unconditional. Contributions that are restricted by the
donor are reported as increases in unrestricted net assets ifthe restrictions expire in the
fiscal 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. The CCCSA uses the
allowance method to detennine uncollectible promises to give. There were no
outstanding promises to give at December 31, 2014.
Contributed Services - No amounts have been reflected in the financial statements for
donated services. The CCCSA generally pays for services requiring specific expertise.
However, individuals volunteer their time and perform a variety of tasks that assist the
CCCSA, but these services do not meet the criteria for recognition as contributed
services.
Estimates - The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that affect
certain reported amounts and disclosures. Accordingly, actual results could differ from
those estimates.
Property and Equipment - The CCCSA capitalizes property and equipment at cost.
Donations of property and qquipment are recorded as contributions at their estimated fair
value. Such donations are reported as unrestricted contributions unless the donor has
restricted the donated asset to a specific pufpose. Assets donated with explicit restrictions
regarding their use and contributions of cash that must be used to acquire property and
CONSUMER CREDIT COUNSELING SERVICES
OF ALABAMAO INCORPORATED
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31. 2014
NOTE A-NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING
POLTCTES (CONTTNUED)
equipment are reported as restricted contributions. Absent donor stipulations regarding
how long those donated assets must be maintained, the CCCSA reports
expirations of doqor restrictions when the donated or acquired assets are placed in
service. The CCCSA reclassifies temporarily restricted net assets to unrestricted net
assets atthat time. Property and equipment are depreciated using the straight-line method
over estimated useful lives. The major categories of properly and equipment are shown in
the statement of financial position.
Income Taxes - The CCCSA is a not-for-proffi organization that is exempt from income
taxes under Section 501(cX3) of the Intemal Revenue Code and classified by the Intemal
Revenue Service as other than a private foundation.
The CCSA's Fotms 990, Return of Organization Exemptfrom Income Tax,for the years
ending 20II,2012, and2013 are subject to examination by the IRS, generally for three
years after they were filed.
Cash and Cash Equivalents - For purposes of the statements of cash flows, the CCCSA
considers all highly liquid investments available for current use with an initial maturity
three months or less to be cash equivalents.
of
NOTE B-NOTE PAYABLB
The CCCSA purchased land and a building for its Montgomery, Alabama offices in April
of 2010. The acquisition cost was$l05,000 and was financed with a mortgage payable of
$90,000. The mortgage is payable in monthly payments of $735 at an annual interest rate
of 5.5Yo. The mortgage obligation balloons at the end of 7 years. The following shows the
debt amortizatron over the next four years. 2015-$5,134; 2016-$5,423;2017-$58,883;
and2017- $58"883.
NOTE C-EVALUATION OF SUBSEQUENT EVENTS
The CCCSA has evaluated subsequent events through August 6,2015, the date which the
financial statements were available to be issued.