The Peninsula Bridge Program - A Review

THE PENINSULA BRIDGE PROGRAM

F'INANCIAL STATEMENTS

JONES

ACCOUNTANCY

DRVID

D. JONES.

CPA.

MS

To The Board of Directors The Peninsula Bridge Program Palo

Alto,

California

I

have reviewed the accompanying stalement of financial position of The Peninsula Bridge Program (a

non-profit

organization) as of December 31, 2012, and the related statements

of

activities, functional expenses, and cash flows for the year then ended.

A

review includes

prirnarily

applying analytical procedures to management's

financial

data and making inquires

of

management.

A review is

substantially less

in

scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a

whole,

Accordingly,

I

do 1ot express such an opinion.

Management is responsible for the preparation and fair presentation of the financial statements

in

accordance

with

accounting principles generally accepted in the United States of America and

for

designing, implementing, and maintairring internal control relevant to the preparation and

fair

presentation of financial statements.

My

responsibility is to conduct the review

in

accordance

with

Statements on Standards

for

Accounting and Review Services issued by the American Institute

of

Certified Public

Accountants.

Those standards require me to perform procedures to obtain

limited

assurance that there are no material modifications that should be made to the financial

statements.

I believe that the results of my procedures provide a reasonable basis for my report.

Based on my review,

I

am

not

awate

of

any material modifications that should be made to the accompanying financial statements in order for them to be

in

conformity

with

accounting principles generally accepted in the United States of America,

-/rO

Jones Accountancy June 18,2013

PENINSULA AVENUE, SUITE 5 . SAN MATEo, cA944C'1 (650) 5413-4040. FAx (650) 54A-9093

EMAIL: JoNESAccoUNTANCY@SBcGLoBAL NET

THE PENINSULA BRIDGE PROGRAM STATEMENT OF FINANCIAL POSITION

DECEMBER3I,2OI2

ASSETS

Cash and cash equivalents

Pledges receivable

Less: Discount for multi-year pledges Less: Allowance for doubtful accounts

TOTAL ASSETS

LIABILITIES

Accounts Payable NET ASSETS

Unrestricted net assets

Temporarily restricted net assets Permanently restricted net assets

TOTAL NET ASSETS

TOTAL LIABILITIES AND NET ASSETS

$263,08I $2r1,rr7 (9,1 5 1)

(12,667)

t89,2gg $452,3 80 $0 43 8,3 50 14,030 0 452,380

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THE PENINSULA BRIDGE PROGRAM STATEMENT OF FTINCTIONAL EXPENSES FOR THE YEAR ENDED DECEMBER 31. 2012

Executive Director

Other Salaries

Payroll taxes and fees

Rent Professional

Insurance

Other Program Costs

Development Office Expenses Other Expenses General

&

Administrative $ 10,308 12,055 2,348 2,154 7,430 1,616 1,643

'\

/{/

Fund Raisine $20,615 83,277 ?

5))

JrZ)Z

) 4)\

l g,07g 2,464 570 Program Services $72,155 65,236 17,609 16,157 12,123 65,010 12,320 15,062 Total $ 103,078 160,569 )?

nq

21,543 7,430 16,164 65,01 0 19,078 16,427 21,369 $43,291

$13s,183

527s.672 $454. 1 46

THE PENINSULA BRIDGE PROGRAM STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2012

CASH FLOWS FROM (TO) OPERATING ACTIVITIES

Increase (decrease) in net assets

Decrease (increase) in Pledges receivable

Increase (decrease) in Discount on multi-year pledges Increase (decrease) in Reserve for doubtful accounts Increase (decrease) in Accounts Payable

Net cash provided (used) by operating activities

CASH FLOWS FROM INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, beginrring of year

CASH AND CASH EQUIVALENTS, end of year

($54, I 25) 95,218 (6,666) (2,653) (27,715) 4,119 0 0 4,119 258,962 $263.081

THE

PENINSULA

BRIDGE PROGRAM NOTES TO

FINANCIAL

STATEMENTS FOR THE

YEAR

ENDED

DECEMBER

31, 2012

NO'|E A

- Nature of

Activities

and Summary

of

Significant Accounting Policies

Nature of

Activities

The Peninsula Bridge Program is a California Corporation quatrified as a

Non-Profit

entity under

Internal Revenue Code 501(c)(3) pursuant to a determination letter dated October

_4,1995.

,As an

education-based organization, Peninsula Bridge works

with

four

public

school districts, two

community-based private schools and eight independent schools to provide rigorous enrichment

programs for promising students

in

grades five through eight,

in

order to motivate and prepare

these students

for

success in the next step of their education.

The target participants are students

who

are aI

risk

of

failing

to achieve their academic and

personal potential because of the social and economic conditions into which they were

born.

The

program brings students from nearby public schools to the campuses of eight independent schools

for summer and select year-round

programs.

_{The independent school participants include} Sacred

Heart Schools, Woodside Priory,

Menlo

School, Castilleja School, Crystal Springs Uplands

School, St. Matthew's Episcopal Day School, Pinewood School and St. Francis

High

School.

During 2012, the Program served 400 middle school students from East Palo

Alto,

Menlo Park,

Redwood

City,

San Mateo and Mountain

View.

The Program's focus is to improve math and

English proficiency

in

order to prepare students

for

college track classes in high school.

In2012,

55% of the Program's graduates successfully passed Algebra

I in

Bt'' grade, which is one of the

Program's indicators

of

success: This compares to an average of 20Yo

for

similar demographics.

The Program also works

with

the families of the students in order to stress the importance of a

quality education and the environmental issues that affect these

students.

The Program supports

these families

with

tools and education in order to improve the educational opportunities of the

students.

Since 1989, Peninsula Bridge Program has raised and disbursed over $9,687,000

in

funds which

was used to serve over 5.700 middle school students.

Basis of Accoqntine

The accounts of the Program are maintained and the financial statements are prepared on the

accrual basis of

accounting.

Accordingly, revenues are recognized when earned, and expenses

are recognized when incurred.

THE

PENINSULA

BRIDGE PROGRAM NOTES TO

FINANCIAL

STATEMENTS FOR THE

YEAR

ENDED

DECEMBER 31.2012

Use of Estimates

The financial statements include _{estimates and assumptions made by management that affect the} carrying amounts of assets and

liabilities

and the reported amounts of revenues and expenses. Actual results may

differ

from those estimates.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Program considers all unrestricted highly

liquid

investments with an initial maturity of three months or less to be cash equivalents,

Property. Furniture and Equipment

The Program currently has not incurred any significant expenses for Property, Furniture and

Equipment.

Acquisitions

in excess

of $ 1,000 per item

will

be _{capitalized and depreciated over} estimated lives ranging

from 3

to 40 years.

Revenue and Support

Revenues are recognized when

earned. Resources restricted by

tlie donor, grantor, or other outside party for particular purposes are deemed to be earned when the Program has comolied

with

specific restrictions

Income Taxes

The Peninsula Bridge Program is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code and did not conduct unrelated business activities. Therefore, the

Organrzation has made no provision

for federal income taxes

in the accompanying financial statements,

Functional

Allocation

of Expenses

The costs of providing the various programs and other activities have been summarized on a

functional basis in the statement of

activities.

Accordingly, certain costs have been allocated among the programs and supporting services benefitted.

TFIE

PENINSULA

BRIDGE PROGRAM NOTES

TO

FINANCIAL

STATEMENTS FOR THE

YEAR

ENDED

DECEMBER

31. 2OI2

Promises to Give'

Contributions are _{recognized when the donor makes a promise to give to the Program that is,}

_in

substance,

unconditional.

Contributions that are restricted by the donor are reporlecl as increases

in unrestricted net assets

if

the restrictions expire dr.rring 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. The program

had pledges receivable at December 31,

2\lz,totaling

$211,1I7

.

Many of the receivables are

multi-year pledges

with

approximately $109,000 due in years after

201i.

Those pledges wer:e

discounted to their net present value using a discount rate

of

5Yo per year resulting

in a

net

reduction in the caffyrng amount

of

$9,151.

In addition, management has recorded a provision

for potential doubtful accounts of approxim ately 60/o of the net dlscounted receivables,

_br

_{512,667 .}

The accompanying table summarrzes the gross outstanding pledges receivable by year, the

discount by year and the allowance

for

doubtful accounts:

Investment Rislcs

Investments which potentially _{subject the foundation to}

_risk

_consist

_primarily

_{of cash and cash}

equivalents'

By

policy,

_{the Program places cash and other}

_liquid

_investments

_{with bankilg}

institutions'

At

year end the balance in this account did not exceed the insurance

limits

of the

Federal Deposit Insurance Corporation (FDIC).

2013 2014 2015 2016 2017

Total

Pledges by Year $r02,167 $53,550 $32,650 $11,350 $ 1 1,400 _$211,117 Discount - 5% (2,550) (3,035) (1,545)

(2,02t)

(9,1 5 1) Subtotal 102,167 51,000 29,615 9,805 9,379 201,966 Allowance

for

doubtful accounts

(r2,667)

Net Pledges $ 189,299 Page 7

THE PENINST]LA BRIDGE PROGRAM NOTES TO

FINANCIAL

STATEMENTS

FOR

THE YEAR

ENDED

DECEMBER3|,2OI2

NOTE B - Contributions and Restricted Assets

The accompanying financial statements have been prepared in accordance

with

standards set forth

in

Statements _{of Financial Accounting Standards Board}

_("FASB")

_{Accounting Standards}

Codifications ("ASC'1) 958-605 "Revent,te Recognitiorz," ASC 958-205 "Prese-ntation of Financial

Statements" and the guidelines set forth in the industry audit guide and accounting guide

"lot-for-Profit

Entities" issued by the American Institute of Certified Public

Accountants.

Under these guidelines, _{contribution of cash and other assets are classified as one of the}

_following

categories:

Unrestricted-

Unrestricted net assets _{represent resources that are not subject to}

donor-imposed stipulations and arc avallable to support

all

activities of the organization.

Temporarily restricted

_-

Temporarily restricted net assets represent contributions that are

limited

in use

in

accordance

with

donor imposed

restrictions.

These restrictions may

expire with

time

_{andlor may be satisfied by the actions of}

_the

_{organrzation according} 111 the

intention of the

donor.

Upon satisfaction of such restrictions, the associated net assets are released from temporarily restricted net assets and reported as

unrestricted,

If

a restriction

is

fulfilled

in the same fiscal year in which the contribution was received, the contribution

is reported as temporarily _{restricted support and net} assets released from restriction in that period,

Permanently restricted

_-

_{Permanently restricted net} assets represent contributions to be invested and held in perpetuity as directed by the donor.

During _{2012 the Program received $25,000}

_in

_{funds which were restricted to specific program}

events and

schools.

At

the endof _{2012 the Program had $14,030 in funds whicir were restricted to} providing services related to a program called _{"Journaling Through Art.,,}

NOTE

C - Accounts Payable

The Program did _{not have any Accounts Payable outstanding at December 31, 2012.}