WILDLIFE REHABILITATION CENTER OF MINNESOTA FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

(1)

WILDLIFE

REHABILITATION

CENTER

OF

MINNESOTA

FINANCIAL

STATEMENTS

FOR

THE

YEAR

ENDED

DECEMBER

31,

2014

(2)

WILDLIFEREHABILITATIONCENTEROFMINNESOTA

FINANCIALSTATEMENTS

FortheYearEndedDecember31,2014 (WithComparativeTotalsfor2013)

TABLEOFCONTENTS

Page

IndependentAuditor’sReport 1

FinancialStatements:

StatementofFinancialPosition 3

StatementofActivitiesandChangesinNetAssets 4

StatementofFunctionalExpenses 5

StatementofCashFlows 6

NotestoFinancialStatements 7

(3)

10 River Park Plaza, Suite 800 | Saint Paul, MN 55107 Phone: 651.227.6695 Fax: 651.227.9796 | www.mucr.com

DĂŚŽŶĞǇhůďƌŝĐŚŚƌŝƐƟĂŶƐĞŶZƵƐƐW͘͘

Zd/&/Wh>/KhEdEd^

(Continued)

INDEPENDENT

AUDITOR’S

REPORT

TotheBoardofDirectors

WildlifeRehabilitationCenterofMinnesota Roseville,Minnesota

WehaveauditedtheaccompanyingfinancialstatementsofWildlifeRehabilitationCenterofMinnesota(a nonprofitorganization),whichcomprisethestatementoffinancialpositionasofDecember31,2014,and therelatedstatementsofactivitiesandchangesinnetassets,functionalexpensesandcashflowsforthe yearthenended,andtherelatednotestofinancialstatements.

Management’sResponsibilityfortheFinancialStatements

Managementisresponsibleforthepreparationandfairpresentationofthesefinancialstatementsin accordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica;thisincludes thedesign,implementation,andmaintenanceofinternalcontrolrelevanttothepreparationandfair presentationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraud orerror.

Auditor’sResponsibility

Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.Weconducted ourauditinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmerica.Those standardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthe financialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresin thefinancialstatements.Theproceduresselecteddependontheauditor’sjudgment,includingthe assessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudor error.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheentity’s preparationandfairpresentationofthefinancialstatementsinordertodesignauditproceduresthatare appropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessof theentity’sinternalcontrol.Accordingly,weexpressnosuchopinion.Anauditalsoincludesevaluatingthe appropriatenessofaccountingpoliciesusedandthereasonablenessofsignificantaccountingestimates madebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisfor ourauditopinion.

(4)

Opinion

Inouropinion,thefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,the financialpositionofWildlifeRehabilitationCenterofMinnesotaasofDecember31,2014,andthechanges initsnetassetsanditscashflowsfortheyearthenendedinaccordancewithaccountingprinciples generallyacceptedintheUnitedStatesofAmerica.

ReportonSummarizedComparativeInformation

WehavepreviouslyauditedWildlifeRehabilitationCenterofMinnesota’s2013financialstatements,and we expressed an unmodified opinion on those audited financial statements in our report dated September9,2014.Inouropinion,thesummarizedcomparativeinformationpresentedhereinasofand fortheyearendedDecember31,2013,isconsistent,inallmaterialrespects,withtheauditedfinancial statementsfromwhichithasbeenderived.

SaintPaul,Minnesota

(5)

WILDLIFEREHABILITATIONCENTEROFMINNESOTA STATEMENTOFFINANCIALPOSITION

December31,2014

2014 2013

ASSETS

Cash $101,192 $111,503

Prepaidexpenses 8,022 5,379

Merchandiseinventory 1,300 Ͳ

Propertyandequipment,net 1,332,374 1,370,865

Totalassets $1,442,888 $1,487,747

LIABILITIESANDNETASSETS

Accountspayable $19,473 $13,096

Accruedpayrollandrelatedexpenses 6,718 6,896

Totalliabilities 26,191 19,992

Netassets: Unrestricted:

Undesignated 1,291,196 1,350,254

Boarddesignatedfund 95,501 92,501

Totalunrestricted 1,386,697 1,442,755

Temporarilyrestricted 30,000 25,000

Totalnetassets 1,416,697 1,467,755

Totalliabilitiesandnetassets $1,442,888 $1,487,747

(WithComparativeTotalsfor2013)

(6)

STATEMENTOFACTIVITIESANDCHANGESINNETASSETS FortheYearEndedDecember31,2014

(WithComparativeTotalsfor2013)

Unrestricted

Temporarily

Restricted Total 2013

Revenueandsupport:

Contributions $688,321 $30,000 $718,321 $767,386

Specialeventsincomenetof directdonorbenefitsof$59,302

in2014and$53,332in2013 68,576 Ͳ 68,576 65,479

Otherrevenues 18,556 Ͳ 18,556 15,127

Netassetsreleasedfrom

restrictions 25,000 (25,000) Ͳ Ͳ

Totalrevenueandsupport 800,453 5,000 805,453 847,992

Expenses:

Programservices 723,623 Ͳ 723,623 670,252

Managementandgeneral 43,195 Ͳ 43,195 45,632

Fundraising 89,693 Ͳ 89,693 89,962

Totalexpenses 856,511 Ͳ 856,511 805,846

Changeinnetassets (56,058) 5,000 (51,058) 42,146

Netassets:

Beginningofyear 1,442,755 25,000 1,467,755 1,425,609

Endofyear $1,386,697 $30,000 $1,416,697 $1,467,755

2014

(7)

STATEMENTOFFUNCTIONALEXPENSES

Program Management

services andgeneral Fundraising Total 2013

Salaries $344,326 $15,175 $10,281 $369,782 $355,150

Employeebenefits 37,438 1,218 824 39,480 41,400

Payrolltaxes 24,835 1,033 701 26,569 26,652

Totalsalariesandrelated

expenses 406,599 17,426 11,806 435,831 423,202

Professionalfees 4,498 6,913 41,607 53,018 53,925

Food 53,592 Ͳ 22,660 76,252 72,789

Bankchargesandcreditcardfees 10,333 1,764 1,195 13,292 13,491

Telephoneandinternet 3,379 577 390 4,346 3,621

Printingandpostage 2,339 311 20,271 22,921 20,366

Utilities 47,504 4,773 4,546 56,823 46,542

Rental Ͳ Ͳ 25,629 25,629 22,462

Interest Ͳ 2,818 Ͳ 2,818 4,434

Insurance 7,104 714 680 8,498 8,718

Equipmentrentaland

maintenance 29,936 1,397 1,330 32,663 22,350

Licenses 710 Ͳ Ͳ 710 1,363

Depreciation 45,309 4,553 4,335 54,197 53,503

Travel 1,421 242 164 1,827 2,344

Duesandsubscriptions 1,276 Ͳ 817 2,093 1,276

Stafftraining 3,550 Ͳ Ͳ 3,550 4,206

Supplies:

Medical 69,281 Ͳ Ͳ 69,281 62,561

Office 32,283 1,707 4,316 38,306 33,034

Volunteerrecognition 3,246 Ͳ Ͳ 3,246 2,950

Miscellaneousexpenses 1,263 Ͳ 9,249 10,512 6,041

723,623

43,195 148,995 915,813 859,178

Lessspecialeventsdirect

donorbenefits Ͳ Ͳ (59,302) (59,302) (53,332)

Totalexpenses $723,623 $43,195 $89,693 $856,511 $805,846

2014

(8)

WILDLIFEREHABILITATIONCENTEROFMINNESOTA STATEMENTOFCASHFLOWS

Increase(Decrease)inCash

2014 2013

Cashflowsfromoperatingactivities:

Changeinnetassets $(51,058) $42,146

Adjustmentstoreconcilethechangeinnetassets tonetcashfromoperatingactivities:

Depreciation 54,197 53,503

Contributionsforpurchaseofpropertyandequipment (30,000) Ͳ

Changesinoperatingassetsandliabilities:

Prepaidexpenses (2,643) 1,034

Merchandiseinventory (1,300) Ͳ

Accountspayable 6,377 3,167

Accruedexpenses (178) (1,639)

Netcashfromoperatingactivities (24,605) 98,211

Cashflowsfrominvestingactivities:

Purchaseofpropertyandequipment (15,706) (7,590)

Netcashfrominvestingactivities (15,706) (7,590)

Cashflowsfromfinancingactivities:

Contributionsforpurchaseofpropertyandequipment 30,000 Ͳ

Repaymentoflineofcredit Ͳ (20,000)

Netcashfromfinancingactivities 30,000 (20,000)

Netincrease(decrease)incash (10,311) 70,621

Cash,beginningofyear 111,503 40,882

Cash,endofyear $101,192 $111,503

Supplementaldisclosuresofcashflowinformation:

Cashpaidforinterestexpense $2,818 $4,434

(9)

(Continued)

NOTESTOFINANCIALSTATEMENTS

1. ORGANIZATION

TheWildlifeRehabilitationCenterofMinnesota(theCenter)isaMinnesotanonprofitcharitable corporationformedin1997. ThepurposeoftheCenteristoprovidequalitymedicalcareand rehabilitationforallinjured,sickandorphanedwildlifeandshareitsknowledgewiththepeople whocareaboutthem.TheCenterisoneofthelargestwildliferehabilitationclinicsofitskindinthe country,treatingmorethan9,000animalseachyear(unaudited).

TheCenteralsoprovidesprofessionaltrainingandcommunityeducationforindividualslocallyand aroundtheworld.

TheCenter’sactivitiesaresupportedprimarilybyindividualandfoundationcontributions.

2. SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES

FinancialStatementPresentation ͲTheCenterisrequiredtoreportinformationregardingits financialpositionandactivitiesinthefollowingnetassetcategories:

x Unrestrictednetassetsrepresenttheportionofnetassetsthatarenotsubjecttodonor restrictions.

x Temporarilyrestrictednetassetsarisefromcontributionsthatarerestrictedbydonorsfor specificpurposesortimeperiods.

x Permanentlyrestrictednetassetsarisefromcontributionswithrestrictionsfromdonorsthatdo notexpireandthatallow,incertaincases,onlytheincomeearnedthereontobeexpended.At thistime,theCenterhasnopermanentlyrestrictednetassets.

UseofEstimatesͲThepreparationoffinancialstatementsinconformitywithgenerallyaccepted accountingprinciplesrequiresmanagementtomakeestimatesandassumptionsthataffectthe reportedamountsofassetsandliabilitiesanddisclosureofcontingentassetsandliabilitiesatthe dateofthefinancialstatementsandthereportedamountsofrevenuesandexpensesduringthe reportingperiod.Actualresultscoulddifferfromthoseestimates.

MerchandiseInventory–Merchandiseinventoryisvaluedatthelowerofcostormarket.Costis determinedonthefirstͲin,firstͲoutmethod.

(10)

(Continued)

2. SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)

PropertyandEquipment ͲPropertyandequipmentarecarriedatcost,withtheexceptionof donatedequipmentwhichisrecordedatfairmarketvalueatdateofgift. Depreciationis computedusingthestraightͲlinemethodovertheestimatedusefullifeofeachasset.Maintenance andrepairsareexpensedasincurred. Majorrenewalsorbettermentsthatextendthelivesof propertyandequipmentarecapitalized.Managementevaluatestheseassetsforimpairment whenevereventsorchangesincircumstancesindicatethatthecarryingamountofanassetmay notberecoverable.

Absentexplicitdonorrestrictionsregardinghowlongdonatedassetsmustbemaintained,the Centerreportsexpirationofdonorrestrictionswhenthedonatedoracquiredassetsareplacedin service.

ContributionRevenueRecognition ͲContributionsarerecognizedwhenthedonormakesan unconditionalpromisetogivetotheCenter. Conditionalcontributions,suchasbequests,are recordedwhentheconditionshavebeenmetandtheconditionalpromisebecomesunconditional. Contributionsareconsideredtobeunrestrictedunlessspecificallyrestrictedbythedonor.

DonorͲrestrictedcontributionsarereportedasincreasesintemporarilyorpermanentlyrestricted netassetsdependingonthenatureoftherestrictions.Whenaspecifictimerestrictionendsora purposeisaccomplished,temporarilyrestrictednetassetsarereclassifiedtounrestrictednet assets. Ifatemporaryrestrictionisfulfilledduringthesameperiodinwhichthecontributionis received,thecontributionisreportedasunrestricted.

DonatedMaterialsandServicesͲDonatedmaterialsarerecordedascontributionsattheir estimatedfairmarketvalue.Donatedservicesarerecordedascontributionsattheirestimatedfair valueonlyifthe servicescreateorenhanceanonfinancialassetoriftheservicesrequire specializedskills,areprovidedbyindividualspossessingthoseskills,andwouldtypicallyneedtobe purchasedifnotprovidedbydonation.TheCenterrecordednocontributedservicesin2014or 2013.

TheCenterregularlyreceivesdonatedservicesfrommanyvolunteers(seenote7).Howeverno amountshavebeenrecognizedfortheseservicesbecausetheydonotmeetthecriteriadescribed above.

SpecialEventsͲRevenuefromspecialeventsisreportednetofthecostsofdirectdonorbenefits.

(11)

(Continued)

2. SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)

FunctionalExpenses ͲExpenseshavebeenallocatedbetweenprogramandsupportingservices classificationsbasedupondirectexpendituresandestimatesmadebymanagement. Expenses whicharecommontoprogramandtosupportiveservicesareallocatedbasedonsquarefootage occupiedbytheactivitiesortimeallocationsdeterminedbymanagement.

ComparativeTotalColumn ͲThefinancialstatementsincludecertainprioryearsummarized comparativeinformationintotalbutnotbynetassetclass.Suchinformationdoesnotinclude sufficientdetailtoconstituteapresentationinconformitywithgenerallyacceptedaccounting principles. Accordingly,suchinformationshouldbereadinconjunctionwiththefinancial statementsfortheyearendedDecember31,2013,fromwhichthesummarizedinformation wasderived.

IncomeTaxes ͲTheCenterisexemptfromincometaxesunderInternalRevenueCodeSection 501(c)(3)andapplicableMinnesotaStatutes,excepttotheextentithastaxableincomefrom businessesthatarenotrelatedtoitsexemptpurpose.ManagementbelievestheCenterdidnot haveanyunrelatedbusinessincomeoruncertaintaxpositionsin2014or2013.

3. PROPERTYANDEQUIPMENT

Propertyandequipmentconsistedofthefollowing:

2014 2013

EstimatedUseful LifeͲYears

Landimprovements $5,000 $5,000 15

Building 1,873,538 1,864,793 10Ͳ39

Equipment 171,917 164,956 3Ͳ10

2,050,455 2,034,749

Accumulateddepreciation (718,081) (663,884)

$1,332,374 $1,370,865

(12)

(Continued)

4. LINEOFCREDIT

TheCenterhasa$100,000lineofcreditwiththeNonprofitsAssistanceFundthatmatureson October31,2015. Theinterestrateonadvanceswas7%duringthebeginningof2014and decreasedto6.5%inJune2014.ThelineofcreditissecuredbyallassetsoftheCenter.Therewas nobalanceoutstandingonthelineofcreditatDecember31,2014or2013.

5. BOARDDESIGNATEDNETASSETS

During2012,theBoardofDirectorscreatedaboarddesignatedfundtobeknownastheNestEgg Fund.ThepurposeofthefundistobuildsufficientcashreservestohelptheCenterthroughlow periodsinitscashflowcycle.

TheNestEggFundwasestablishedwith$50,000during2012. Thesefundsareheldinthe operatingcheckingaccount.TheCenterhadtemporarilyborrowed$41,000and$21,000fromthe fundatDecember31,2014and2013.

Thefirst$20,000ofeachbequestisallocatedtooperationsandanyremainderisallocatedtothe NestEggFund(Note9).

6. TEMPORARILYRESTRICTEDNETASSETS

Temporarilyrestrictednetassetsin2014areforpurchasinganewxͲraymachine.

Temporarily restricted net assets in 2013 are for expanding outdoor capacity for patient rehabilitation.

7. VOLUNTEERHOURS(Unaudited)

TheCenterreliesextensivelyonvolunteersfordailyanimalcareservices(feeding,cagecleaning, etc.), technical, and administrative services. In 2014, nearly 600 volunteers contributed approximately44,000hours,theequivalentofabout21fullͲtimeemployees,totheCenter.The volunteerhourshavenotbeenrecordedinthefinancialstatementsbecausetheydonotmeetthe requirementsestablishedbygenerallyacceptedaccountingprinciplesforcontributedservices.

(13)

8. LANDLEASE

During2000,theCenterenteredintoalongͲtermleasewiththeCityofRoseville,Minnesotaforthe landthebuildingresides on.The lease requiresannual rent of $1. Theleasetermends September30,2050.Upontermination,thebuildingwillautomaticallybecomethepropertyofthe City. TheleaseagreementallowstheCitytoappointonemembertotheCenter’sboardof directors.SeeNote9foranadditionalcommitment.

9. COMMITMENTSANDCONTINGENCIES

TheCenterdependsoncontributionsforasignificantportionofitsrevenue. Theabilityofthe Center’scontributorstocontinuegivingamountscomparabletoprioryearsmaybedependent uponfutureeconomicconditionsandthecontinueddeductibilityforincometaxpurposesof contributionstotheCenter.WhiletheCenter’sboardofdirectorsandmanagementbelievethe Centerwillhavesufficientresourcestocontinueitsprograms,itsabilitytodosoandtheextentto whichitcontinuesmaybedependentonthefactorsnoted.

TheCenterhasbeenbequeathedmoneyinthewillsofseverallivingdonors.TheCenterisunable tovaluethesecontributionsbecausetheyarenotawareofalltheindividualswhohavenamedthe Centerintheirwills,andthebequestsaren’talwaysaspecificdollarvaluebutratheranallocated portionoftheestate,oraremainder.Theseconditionalcontributionsarerecordedwhenthereis onlyaremotepossibilitythattheconditionswillnotbemet.Thefirst$20,000ofeachbequestis allocatedtooperationsandanyremainderisallocatedtotheNestEggFund(Note5).

ThelandleaseagreementwiththeCityofRosevillerequirestheCentertopaysuchfundsas necessaryforparkinglot,drivewayandrelatedimprovementsincludingexpansionandrelocation tobeconstructedatthediscretionoftheCityifneeded.ThiscommitmentexpiresDecember31, 2018.

10. SUBSEQUENTEVENTS

ManagementhasevaluatedsubsequenteventsthroughOctober2,2015,thedateonwhichthe financialstatementswereavailableforissue,andidentifiednosignificanteventsortransactionsto disclose.