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  • FRANKIE LEMMON FOUNDATION, INC.

    Raleigh, North Carolina

    AUDITED FINANCIAL STATEMENTS

    FOR THE YEARS ENDED JUNE 30, 2019 AND 2018

  • CONTENTS

    PAGES

    Independent Auditor’s Report 2-3

    Exhibits:

    “A” Statements of Financial Position 4

    “B” Statements of Activities and Changes in Net Assets 5-6

    “C” Statements of Cash Flows 7

    “D” Statements of Functional Expenses 8-9

    Notes to Financial Statements 10-18

  • INDEPENDENT AUDITOR’S REPORT

    Page 1 of 2

    To the Board of Directors of Frankie Lemmon Foundation, Inc. Raleigh, North Carolina

    We have audited the accompanying financial statements of Frankie Lemmon Foundation, Inc., (a nonprofit organization), which comprise the statements of financial position as of June 30, 2019 and 2018, and the related statements of activities and changes in net assets, cash flows, and functional expenses 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 financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

    Auditor’s Responsibility

    Our responsibility is to express an opinion on these financial statements based on our 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 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 procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

    We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

  • 3

    Page 2 of 2

    Opinion

    In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Frankie Lemmon Foundation, Inc., as of June 30, 2019 and 2018, and the changes in its net assets and its cash flows for the years then ended, in accordance with accounting principles generally accepted in the United States of America.

    Chapel Hill, North Carolina February 10, 2020

  • 4

    EXHIBIT A

    2019 2018 CURRENT ASSETS:

    Cash and cash equivalents 1,044,713$ 888,308$ Investments 3,725,415 3,470,348 Accounts receivable 81,243 119,154 Due from School - 487 Promises to give, net 91,697 158,651 Inventory 14,455 468 Prepaid expenses 3,374 3,763

    TOTAL CURRENT ASSETS 4,960,897 4,641,179

    PROPERTY AND EQUIPMENT: Land - 5,800 Furniture and fixtures 5,885 5,885 Office equipment 5,577 11,090 Less: accumulated depreciation (11,419) (16,077)

    NET PROPERTY AND EQUIPMENT 43 6,698

    OTHER ASSETS: Restricted cash and cash equivalents 13,824 13,824 Security deposit 4,172 4,172

    TOTAL OTHER ASSETS 17,996 17,996

    TOTAL ASSETS 4,978,936$ 4,665,873$

    CURRENT LIABILITIES: Accounts payable and accrued expenses 21,706$ 146,374$ Deferred rent, current portion 1,539 -

    TOTAL CURRENT LIABILITIES 23,245 146,374

    LONG-TERM LIABILITIES: Deferred rent 8,304 9,839

    TOTAL LIABILITIES 31,549 156,213

    NET ASSETS: Without donor restrictions 4,887,925 4,319,752 With donor restrictions 59,462 189,908

    TOTAL NET ASSETS 4,947,387 4,509,660

    TOTAL LIABILITIES AND NET ASSETS 4,978,936$ 4,665,873$

    FRANKIE LEMMON FOUNDATION, INC.

    STATEMENTS OF FINANCIAL POSITION

    June 30, 2019 and 2018

    ASSETS

    LIABILITIES AND NET ASSETS

    The accompanying Notes to Financial Statements are an integral part of these financial statements.

  • 5

    EXHIBIT B

    Page 1 of 2

    2018

    Total Total

    SUPPORT AND REVENUE:

    Contributions 386,168$ 25,103$ 411,271$ 1,444,572$

    In-Kind Contributions - - - 5,800

    Special events, net 1,763,848 - 1,763,848 1,774,611

    Net investment return 367,959 - 367,959 193,396

    Other expense 386 - 386 (384)

    2,518,361 25,103 2,543,464 3,417,995

    Net assets released from restrictions 155,549 (155,549) - -

    TOTAL SUPPORT AND REVENUE 2,673,910 (130,446) 2,543,464 3,417,995

    EXPENSES:

    Program 1,472,842 - 1,472,842 1,495,782

    Management and general 165,574 - 165,574 225,326

    Fundraising 369,633 - 369,633 424,506

    TOTAL FUNCTIONAL EXPENSES 2,008,049 - 2,008,049 2,145,614

    Bad debt expense 97,688 - 97,688 3,559

    TOTAL EXPENSES 2,105,737 - 2,105,737 2,149,173

    CHANGES IN NET ASSETS 568,173 (130,446) 437,727 1,268,822

    NET ASSETS - BEGINNING OF PERIOD 4,319,752 189,908 4,509,660 3,240,838

    NET ASSETS - END OF PERIOD 4,887,925$ 59,462$ 4,947,387$ 4,509,660$

    2019

    Without

    Donor

    Restrictions

    With Donor

    Restrictions

    FRANKIE LEMMON FOUNDATION, INC.

    STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS

    For the Years Ending June 30, 2019 and 2018

    The accompanying Notes to Financial Statements are an integral part of these financial statements.

  • 6

    EXHIBIT B

    Page 2 of 2

    Without With

    Donor Donor

    Restrictions Restrictions Total

    SUPPORT AND REVENUE:

    Contributions 1,274,989$ 169,583$ 1,444,572$

    In-kind contributions 5,800 - 5,800

    Special events, net 1,774,611 - 1,774,611

    Net investment return 193,396 - 193,396

    Other expense (384) - (384)

    3,248,412 169,583 3,417,995

    Net assets released from restrictions 92,714 (92,714) -

    TOTAL SUPPORT AND REVENUE 3,341,126 76,869 3,417,995

    EXPENSES:

    Program 1,495,782 - 1,495,782

    Management and general 225,326 - 225,326

    Fundraising 424,506 - 424,506

    TOTAL FUNCTIONAL EXPENSES 2,145,614 - 2,145,614

    Bad debt recovery 3,559 - 3,559

    TOTAL EXPENSES 2,149,173 - 2,149,173

    CHANGES IN NET ASSETS 1,191,953 76,869 1,268,822

    NET ASSETS - BEGINNING OF PERIOD 3,127,799 113,039 3,240,838

    NET ASSETS - END OF PERIOD 4,319,752$ 189,908$ 4,509,660$

    FRANKIE LEMMON FOUNDATION, INC.

    STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS

    For the Years Ending June 30, 2019 and 2018

    2018

    The accompanying Notes to Financial Statements are an integral part of these financial statements.

  • 7

    EXHIBIT C

    2019 2018

    CASH FLOWS FROM OPERATING ACTIVITIES:

    Changes in net assets 437,727$ 1,268,822$

    Adjustments to reconcile changes in net assets to net cash

    used in operating activities: