LAS VEGAS RESCUE MISSION
AUDITED FINANCIAL STATEMENTS
JUNE 30, 2018 AND 2017
LAS VEGAS RESCUE MISSION
TABLE OF CONTENTS
YEARS ENDED JUNE 30, 2018 AND 2017
PAGE
INDEPENDENT AUDITOR’S REPORT
1
STATEMENTS OF FINANCIAL POSITION
2
STATEMENTS OF ACTIVITIES
3-4
STATEMENTS OF FUNCTIONAL EXPENSES
5-6
STATEMENTS OF CASH FLOWS
7-8
NOTES TO FINANCIAL STATEMENTS
9-16
INDEPENDENT AUDITOR’S REPORT
Board of Directors
Las Vegas Rescue Mission
Las Vegas, Nevada
Report on the Financial Statements
We have audited the accompanying financial statements of Las Vegas Rescue Mission (a nonprofit
organization), which comprise the statements of financial position as of June 30, 2018 and 2017, and the
related 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 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 misstatements, 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.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of Las Vegas Rescue Mission as of June 30, 2018 and 2017 and the changes in its net assets and
its cash flows for the years then ended in conformity with accounting principles generally accepted in the
United States of America.
Las Vegas, Nevada
March 20, 2019
LAS VEGAS RESCUE MISSION
STATEMENTS OF FINANCIAL POSITION
JUNE 30, 2018 AND 2017
2018
2017
ASSETS
CURRENT ASSETS
Cash and equivalents
$
490,142
$
448,118
Cash and equivalents, restricted
399,261
378,630
Investments
80,926
28,060
Accounts receivable
-
4,011
Pledges receivable
94,257
178,945
Grants receivable
-
99,122
Prepaid expenses
58,448
26,697
Employee advances
20,074
10,261
1,143,108
1,173,844
OTHER ASSETS
Property and equipment, net
5,938,997
6,143,177
TOTAL ASSETS
$
7,082,105
$
7,317,021
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable
$
73,387
$
35,985
Accrued liabilities
122,365
116,466
Deferred compensation
21,000
39,000
Capital lease payable, current portion
618
327
Funds held for others
5,364
3,073
222,734
194,851
LONG-TERM DEBT
Capital lease payable, net of current portion
8,520
9,138
Note payable
1,000,000
1,000,000
1,231,254
1,203,989
NET ASSETS
Unrestricted
5,357,333
5,555,457
Temporarily restricted
493,518
557,575
5,850,851
6,113,032
$
7,082,105
$
7,317,021
See notes to financial statements
2
LAS VEGAS RESCUE MISSION
STATEMENTS OF ACTIVITIES
FOR THE YEARS ENDED JUNE 30, 2018 AND 2017
UNRESTRICTED NET ASSETS
2018
2017
Revenue, gains, and other support:
Contributions
$ 2,798,569
$ 2,439,376
Government grants
242,564
858,696
Special event revenue
$
50,141
$
45,360
Less: direct benefits to donors
13,789
15,724
36,352
29,636
Sale of merchandise
341,156
368,641
Program revenue
204,498
187,899
Donated goods
705,695
1,492,379
Investment return
5,120
3,925
Rental revenue
20,232
18,180
Other revenue
2,827
3,034
Release from restriction
142,443
-
Total revenue, gains, and other support
4,499,456
5,401,766
Expenses and losses:
Program services:
Recovery
1,332,552
-
Food services
-
1,410,337
Thrift store
512,070
394,054
Shelter and homeless services
1,546,046
2,099,231
Total program services
3,390,668
3,903,622
Support services:
Management and general
421,053
317,458
Fundraising
885,859
791,574
4,697,580
5,012,654
Loss on disposal
-
20,420
Total expenses and losses
4,697,580
5,033,074
CHANGE IN UNRESTRICTED NET ASSETS
(198,124)
368,692
See notes to financial statements
3
LAS VEGAS RESCUE MISSION
STATEMENTS OF ACTIVITIES (CONTINUED)
FOR THE YEARS ENDED JUNE 30, 2018 AND 2017
TEMPORARILY RESTRICTED NET ASSETS
2018
2017
Contributions
78,386
200,575
Release from restriction
(142,443)
-
CHANGE IN TEMPORARILY RESTRICTED
NET ASSETS
(64,057)
200,575
INCREASE (DECREASE) IN NET ASSETS
(262,181)
569,267
NET ASSETS, BEGINNING OF YEAR
6,113,032
5,543,765
NET ASSETS, END OF YEAR
$ 5,850,851
$ 6,113,032
See notes to financial statements
4
LAS VEGAS RESCUE MISSION
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED JUNE 30, 2018
Program Services
Supporting Services
Shelter and
Special Event
Thrift
Homeless
Management
Direct Benefit
Recovery
Store
Services
and General
Fundraising
To Donors
Total
Wages and payroll taxes
$
417,458
$
257,275
$
313,056
$
233,561
$
270,102
$
-
$
1,491,452
Employee benefits
43,834
27,014
32,871
24,524
28,361
-
156,604
Advertising
-
-
-
7,896
380,314
-
388,210
Bad debt
-
-
-
3,238
-
-
3,238
Bank and merchant fees
-
23,545
-
3,218
-
-
26,763
Depreciation
92,050
52,244
92,050
6,220
6,220
-
248,784
Dues and subscriptions
1,959
1,207
1,469
13,096
1,267
-
18,998
Equipment rental
11,155
6,330
11,155
754
754
-
30,148
Food commodities
315,147
-
858,583
-
-
-
1,173,730
Insurance
26,079
14,801
26,079
1,762
1,762
-
70,483
Interest
-
-
-
6,101
-
-
6,101
Maintenance
46,446
26,361
46,446
3,138
3,138
-
125,529
Meals
501
309
376
280
324
-
1,790
Office supplies
23,773
13,493
23,773
1,606
1,606
-
64,251
Postage and shipping
8,003
4,932
6,001
4,478
145,644
-
169,058
Professional fees
26,326
1,289
1,568
103,303
33,638
-
166,124
Supplies
186,681
7,600
-
-
-
6,009
200,290
Property taxes
-
-
-
-
4,668
-
4,668
Training
2,086
1,288
1,565
1,168
1,351
-
7,458
Transportation
31,751
18,021
31,751
-
-
-
81,523
Utilities
99,303
56,361
99,303
6,710
6,710
-
268,387
Venue
-
-
-
-
-
7,780
7,780
$
1,332,552
$
512,070
$
1,546,046
$
421,053
$
885,859
13,789
4,711,369
Less: direct benefits to donors
(13,789)
(13,789)
$
-
$
4,697,580
See notes to financial statements
5
LAS VEGAS RESCUE MISSION
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED JUNE 30, 2017
Program Services
Supporting Services
Shelter and
Special Event
Food
Thrift
Homeless
Management
Direct Benefit
Services
Store
Services
and General
Fundraising
To Donors
Total
Wages and payroll taxes
$
188,600
$
206,613
$
709,137
$
208,615
$
226,628
$
-
$
1,539,593
Employee benefits
23,814
26,088
89,539
26,341
28,615
-
194,397
Advertising
1,231
1,348
4,628
1,362
510,353
-
518,922
Bank and merchant fees
-
17,631
-
2,731
-
-
20,362
Depreciation
64,364
38,618
146,749
5,149
2,575
-
257,455
Dues and subscriptions
400
438
1,503
442
480
-
3,263
Equipment rental
3,721
4,077
13,992
4,116
4,472
-
30,378
Food commodities
848,974
-
778,124
-
-
-
1,627,098
Insurance
14,646
8,788
33,394
1,172
586
-
58,586
Interest
97
106
363
107
116
-
789
Maintenance
27,265
16,359
62,164
2,181
1,091
-
109,060
Meals
418
459
1,576
464
504
-
3,421
Office supplies
9,389
5,634
21,408
751
376
-
37,558
Postage and shipping
3,935
4,307
14,782
4,348
4,720
-
32,092
Professional fees
3,346
3,666
12,581
53,666
4,021
-
77,280
Supplies
128,462
4,826
-
-
-
-
133,288
Property taxes
-
-
-
-
3,913
-
3,913
Training
181
199
683
201
218
-
1,482
Transportation
18,840
11,304
42,956
-
-
-
73,100
Utilities
72,654
43,593
165,652
5,812
2,906
-
290,617
Venue
-
-
-
-
-
15,724
15,724
$
1,410,337
$
394,054
$
2,099,231
$
317,458
$
791,574
15,724
5,028,378
Less: direct benefits to donors
(15,724)
(15,724)
$
-
$
5,012,654
See notes to financial statements
6
LAS VEGAS RESCUE MISSION
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30, 2018 AND 2017
2018
2017
CASH FLOWS FROM OPERATING ACTIVITIES
Change in in net assets
$
(262,181)
$
569,267
Adjustments to reconcile change in net assets to net cash
provided by (used in) operating activities:
Depreciation
248,784
257,455
Donated investments
(25,040)
-
Donated property and equipment
-
(666,385)
Loss on disposal of property and equipment
-
20,420
Unrealized gain on investments
(4,215)
(2,120)
(Increase) decrease in operating assets:
Accounts receivable
4,011
(644)
Pledges receivable
84,688
(178,945)
Grants receivable
99,122
(28,828)
Prepaid expenses
(31,751)
(737)
Employee advances
(9,813)
(5,271)
Increase (decrease) in operating liabilities:
Accounts payable
37,402
(8,169)
Accrued liabilities
5,899
(4,323)
Deferred compensation
(18,000)
(18,000)
Funds held for others
2,291
(6,327)
Net cash provided by (used in) operating activities
131,197
(72,607)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments
(23,611)
-
Proceeds from sale of investments
-
8,998
Purchases of property and equipment
(51,404)
(80,606)
Proceeds from sale of property and equipment
6,800
-
Net cash used in investing activities
(68,215)
(71,608)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on capital lease obligations
(327)
(19)
Net cash used in financing activities
(327)
(19)
NET INCREASE (DECREASE) IN CASH
62,655
(144,234)
CASH AND EQUIVALENTS, BEGINNING OF YEAR
826,748
970,982
CASH AND EQUIVALENTS, END OF YEAR
$
889,403
$
826,748
See notes to financial statements
7
LAS VEGAS RESCUE MISSION
STATEMENTS OF CASH FLOWS (CONTINUED)
FOR THE YEARS ENDED JUNE 30, 2018 AND 2017
2018
2017
SUMMARY OF CASH ACCOUNTS
Cash and equivalents
$
490,142
$
448,118
Cash and equivalents, restricted
399,261
378,630
$
889,403
$
826,748
SUPPLEMENTAL DISCLOSURES
Interest paid
$
6,101
$
789
See notes to financial statements
8
LAS VEGAS RESCUE MISSION
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2018 AND 2017
NOTE 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Activities
Las Vegas Rescue Mission (the “Mission”) is a non-profit organization located in Southern
Nevada, which was organized solely for educational, religious, scientific and general charitable
purposes. The Mission provides food, shelter, and clothing, and offers programs to help citizens
recover from alcohol and drugs, and spiritual guidance.
The Mission was incorporated under the laws of the State of Nevada on October 3, 1979.
Basis of Accounting
The accompanying financial statements have been prepared on the accrual basis of accounting
in accordance with accounting principles generally accepted in the United States of America
and, accordingly, reflect all significant receivables, payables, and other liabilities.
Income Taxes
The Mission is a not-for-profit organization as described in Section 501(c)(3) of the Internal
Revenue Code and is generally exempt from income taxes on related income pursuant to the
appropriate section of the Internal Revenue Code.
Financial Statement Presentation
Financial statement presentation follows the recommendations of the Financial Accounting
Standards Board (FASB) in its Accounting Standards Codification (ASC). Under FASB ASC,
the Mission is required to report information regarding its financial position and activities
according to three classes of net assets: unrestricted net assets, temporarily restricted net assets,
and permanently restricted net assets.
Use of Estimates
Timely preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect certain reported amounts and disclosures. Accordingly, actual results
could differ from those estimates. See Note 10 for discussion of significant estimates.
Cash and Cash Equivalents
The Mission considers all highly-liquid investments with an initial maturity of three months or
less to be cash equivalents.
9
LAS VEGAS RESCUE MISSION
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED JUNE 30, 2018 AND 2017
NOTE 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Receivables
Receivables are stated at the amount management expects to collect from outstanding balances.
It is the Mission’s policy to charge off uncollectible receivables when management determines
the receivable will not be collected. As of June 30, 2018 and 2017, management expects the
outstanding balances to be collected in full and no allowance was recognized. No interest
income is recognized or charged on receivables. Pledges receivable at June 30, 2018 are
considered collectible, unconditional, and due within one year. Accordingly, no discount has
been recognized.
Property and Equipment
The Mission follows the practice of capitalizing all expenditures for property and equipment
in excess of $2,500 with a useful life over one year. Purchased property and equipment are
carried at cost. Donated property and equipment are carried at the approximate fair value at the
date of donation. Depreciation is computed on the straight-line method over the useful lives of
the assets, generally as follows:
Vehicles
5 Years
Furniture, Fixtures and Equipment
5-7 Years
Buildings and Improvements
5-39 Years
When assets are retired or otherwise disposed, the costs and related accumulated depreciation
are removed from the accounts, and any resulting gain or loss is reflected in the statements of
activities for the period. The cost of maintenance and repairs is expensed as incurred, while
significant renewals and betterments are capitalized.
Impairment of Long-Lived Assets
The Mission periodically evaluates whether events and circumstances have occurred that may
warrant revision of the estimated useful life of property and equipment or whether the
remaining balance of property and equipment should be evaluated for possible impairment.
The Mission uses an estimate of the related undiscounted cash flows over the remaining life of
the property and equipment in measuring their recoverability.
Gift of Long-Lived Assets
The Mission reports gifts of land, buildings, and equipment as unrestricted support unless
explicit donor stipulations specify how the donated assets must be used. Gifts of long-lived
assets with explicit restrictions that specify how the assets are to be used and gifts of cash or
other assets that must be used to acquire long-lived assets are reported as temporarily restricted
support. Absent explicit donor stipulations about how long those long-lived assets must be
maintained, the Mission reports expirations of donor restrictions when the donated or acquired
long-lived assets are placed in service.
10
LAS VEGAS RESCUE MISSION
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED JUNE 30, 2018 AND 2017
NOTE 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Donated Assets and Services
Donated marketable securities and other noncash donations are recorded as contributions at
their estimated fair value at the date of donation. Generally, donated goods, if significant in
amount, are recorded at fair market value provided the Mission has a clearly measurable and
objective basis for determining the value.
Donated services are recognized as contributions in accordance with FASB ASC, if the services
(a) create or enhance nonfinancial assets, or (b) require specialized skills, are performed by
people with those skills, and would otherwise be purchased by the Mission. The Mission
received a substantial amount of donated services from unpaid volunteers. However, the value
of the contributed services is not reflected in the accompanying financial statements as it did
not meet the criteria for recognition under FASB ASC.
Restricted and Unrestricted Revenue and Support
Contributions received are recorded as unrestricted, temporarily restricted, or permanently
restricted support, depending on the existence and/or nature of any donor restrictions. Support
that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction
expires in the reporting period in which the support is recognized. All other donor-restricted
support is reported as an increase in temporarily or permanently restricted net assets, depending
on the nature of the restriction. When a restriction expires (that is, when a stipulated time
restriction ends or purpose restriction is accomplished), temporarily restricted net assets are
reclassified to unrestricted net assets and reported in the statements of activities as net assets
released from restrictions.
Advertising
The Mission uses advertising to promote its programs among the audience it serves. The
production costs of advertising are expensed as incurred. For the years ended June 30, 2018
and 2017, advertising expense was $388,210 and $518,922 respectively.
Expense Allocation
The costs of providing various programs and other activities have been summarized on a
functional basis in the statements of activities and in the statements of functional expenses.
Accordingly, certain costs have been allocated among the programs and supporting services
benefited. Management and general expenses include those expenses that are not directly
identifiable with any other specific function but provide overall support and direction of the
Mission.
Date of Management’s Review
Subsequent events have been evaluated through March 20, 2019, which is the date the financial
statements were available to be issued.
11
LAS VEGAS RESCUE MISSION
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED JUNE 30, 2018 AND 2017
NOTE 2.
FUNDS HELD FOR OTHERS
As of June 30, 2018 and 2017, funds held for others consists of monies held by the Mission for
program participants who do not maintain bank accounts. These monies are readily available
to the individuals.
NOTE 3.
CONCENTRATIONS AND RELATED PARTY
In the ordinary course of business, the Mission maintains cash balances at financial institutions
in excess of federally insured limits. Cash held by banking institutions is insured up to the
Federal Deposit Insurance Corporation (“FDIC”) limit of $250,000. As of the years ended June
30, 2018 and 2017, the total uninsured cash balance was $628,771 and $591,098, respectively.
As of the year ended June 30, 2018, approximately 60% of total pledges receivable was due
from one donor. For the year ended June 30, 2017, the total balance of pledges receivable was
due from one donor.
For the year ending June 30, 2018, approximately 40% of the total pledges receivable balance
was due from a company in which a board member had significant influence. Revenues of
approximately $150,000 were also recognized that were attributable to this board member.
As of the year ended June 30, 2017, the total balance of grants receivable was due from one
grantor.
NOTE 4.
INVESTMENTS AND FAIR VALUE OF ASSETS
In accordance with FASB ASC 820-10, the following are quantitative disclosures about the
fair value measurements. Fair value measurements are categorized on three levels:
Level 1 - Valuations for assets and liabilities traded in active exchange markets, such
as the New York Stock Exchange. Level 1 also includes U.S. Treasury and federal
agency securities, which are traded by dealers and brokers in active markets.
Valuations obtained from readily available pricing.
Level 2 - Valuation for assets and liabilities traded in less active dealer or broker
markets. Valuations are obtained from third-party pricing services for identical or
similar assets or liabilities.
Level
3
- Valuations for assets and liabilities derived from other valuation
methodologies, including option pricing models, discounted cash flow models and
similar techniques, and not based on market exchange, dealer or broker traded
transactions. Level 3 valuations incorporate certain unobservable assumptions and
projections in determining the fair value assigned to such assets and liabilities.
12
LAS VEGAS RESCUE MISSION
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED JUNE 30, 2018 AND 2017
NOTE 4. INVESTMENTS AND FAIR VALUE OF ASSETS (CONTINUED)
For the fiscal years ending June 30, 2018 and 2017, the Mission’s only assets or liabilities
measured at fair value are its investments. Investments measured at fair value on a recurring
basis as of June 30 are as follows:
Level 1
June 30, 2018
Marketable securities
$
25,260
$
25,260
Mutual funds - equity
30,488
30,488
55,748
55,748
REIT investments measured at NAV
-
25,178
$
55,748
$
80,926
Level 1
June 30, 2017
Marketable securities
$
2,221
$
2,221
Mutual funds - equity
25,839
25,839
$
28,060
$
28,060
NOTE 5. PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30:
2018
2017
Buildings and improvements
$
8,246,286
$
8,227,523
Land
343,757
343,757
Vehicles
200,779
196,488
Furniture, fixtures, and equipment
794,857
790,432
Website and software
24,878
8,280
9,610,557
9,566,480
Less: accumulated depreciation
3,671,560
3,423,303
$
5,938,997
$
6,143,177
13
LAS VEGAS RESCUE MISSION
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED JUNE 30, 2018 AND 2017
NOTE 6. NOTE PAYABLE
In December 2007, the Mission was awarded an Affordable Housing Program (“AHP”)
Subsidy for the construction of the Las Vegas Rescue Mission Men’s Center totaling
$1,000,000. These funds have been recognized as a note payable and will be forgiven once the
15-year life of the note payable has expired. The entire $1,000,000 balance of the loan will be
recognized as a gain in the year of expiration.
This agreement includes certain restrictive covenants that must be adhered to by the Mission.
These covenants include compliance with AHP regulations and a requirement that dwellings
remain occupied by individuals whose incomes meet low-income thresholds, among others. If
the Mission fails to meet any of these covenants, it is required to repay the note payable. The
loan is collateralized with the premises located at 480 W. Bonanza Road in Las Vegas, Nevada.
As of June 30, 2018 and 2017, the Mission was in compliance with all such covenants.
NOTE 7.
CAPITAL LEASES
The Organization leases equipment under long-term lease agreements that are classified as
capital leases. Amortization related to these assets are included in depreciation expense. Assets
under capital lease obligations include property and equipment as of June 30:
2018
2017
Furniture and equipment
$
9,484
$
9,484
Less: accumulated amortization
(1,957)
(151)
Total assets under capital lease obligations
$
7,527
$
9,333
Future net minimum rental payments, which are required under the capital leases for the year
ending June 30, 2018, are as follows:
2019
$
6,422
2020
6,422
2021
6,422
2022
6,422
Thereafter
1,069
Total minimum lease payments
26,757
Less: amount representing interest
(17,619)
Total
$
9,138
Current obligations under capital leases
$
618
Long-term obligations under capital leases
8,520
Total obligations under capital leases
$
9,138
14
LAS VEGAS RESCUE MISSION
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED JUNE 30, 2018 AND 2017
NOTE 8.
DEFERRED COMPENSATION
The Mission has a deferred compensation arrangement with a former officer of the Mission.
Providing the Mission is solvent, the recipient is entitled to a defined benefit payment of $1,500
per month for the remainder of the recipient’s life. If the Mission becomes insolvent, payments
to the recipient will cease until such a time that the Mission regains solvency. During times of
insolvency, the defined benefit payment of $1,500 will accrue.
During the years ended June 30, 2018 and 2017, $18,000 was paid to the recipient each year.
As of June 30, 2018 and 2017, the estimated deferred compensation liability was $21,000 and
$39,000, respectively. This amount was calculated using inputs to include the anticipated life
expectancy of the recipient, an estimated return on investment of 0.71%, and a monthly
payment of $1,500 (see Note 10). The Mission expects to fund this liability using unrestricted
cash.
NOTE 9.
RESTRICTED NET ASSETS
Temporarily restricted net assets are restricted for the following purposes at June 30:
2018
2017
Shelter of Hope
$
253,000
$
253,000
Women’s scholarship
48,000
48,000
Transportation
37,374
56,000
Homeless families
27,266
-
Homeless families’ library
25,000
-
Baby essentials
14,274
10,000
Learning Center
13,500
-
Permanent housing
10,000
10,000
Same Kind of Different As Me
5,000
-
Renovations
-
1,630
Information technology
1,785
-
Campus clean-up
1,562
-
Time restricted
56,757
178,945
$
493,518
$
557,575
Temporarily restricted net assets are held as follows at June 30:
2018
2017
Cash and equivalents
$
399,261
$
378,630
Pledges receivable
94,257
178,945
$
493,518
$
557,575
15
LAS VEGAS RESCUE MISSION
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED JUNE 30, 2018 AND 2017
NOTE 10. ESTIMATES
The Mission receives significant amounts of donated food and goods which are recognized as
in-kind revenues and expenses. The valuation of these in-kind donations is a significant
estimate. The amount recorded as donated food revenue and expense is determined using the
estimated average costs per meal multiplied by the number of recipients. The amount recorded
as other in-kind revenue and expense is determined based on the estimated fair value of the
items donated.
The Mission’s estimate of the useful life of the fixed assets is based on general knowledge
about comparative items, which is based on the historical experience with similar items. We
evaluated the key factors and assumptions used to develop estimates of the useful life of fixed
assets in determining that it is reasonable in relation to the financial statements taken as a whole.
The Mission also uses estimates to allocate expenses by function. The Mission’s estimate of
the functional expense allocation is based upon salary and square footage allocations. The
salary allocation is determined based on the estimated time each employee spends working in
each function. The square footage allocation is based on the estimated usage of square footage
amongst the various programs and supporting services benefited.
The deferred compensation liability is estimated using the anticipated life expectancy of the
beneficiary. It is reasonably possible that the actual life of the beneficiary could differ from this
estimate. As of June 30, 2018 and 2017, the effects of the financial statement impact of this
reasonably possible change in estimate are not able to be determined.
NOTE 11. COMMITMENTS
In December 2015, the Mission entered into a line of credit agreement for $250,000 that is
collateralized by the Mission’s property. At June 30, 2018, this line of credit had a maturity
date of November 30, 2018 with an interest rate of 8.5%. As of June 30, 2018 and 2017, this
line of credit had a balance of $0. In November 2018, the line of credit was extended through
November 30, 2021.
NOTE 12. OPERATING LEASES
The Mission leases postage, kitchen and office equipment, and vehicles classified as operating
leases. The leases are renewable and have varying expiration dates. Total rent expense under
these leases for the years ended June 30, 2018 and 2017 was $28,889 and $26,273, respectively.
Future minimum rental payments, which are required under the operating leases for the year
ending June 30, 2018 are as follows:
2019
$
24,737
2020
14,361
2021
3,252
$
42,350
16