Finance Committee FAQ3

Accountant's Statements

This article will explore the statements prepared by our accountant as part of his formal review of RCOS’s operations. In the previous FAZ, we discussed the Temple’s Budgeting and Reporting system. You will recall that it addresses only those revenues and expenses directly controlled by the Board. It does not include many other facets of RCOS operations independently operated by committees or affiliates, even though they are conducted under the umbrella of RCOS’s tax ID and its non-profit status. What are those operations excluded from the budgeting reports?

Sisterhood

Brotherhood

Cemetery

Torah Endowment Fund

Food Festival

Gift Card Program

Lakin Preschool

Investment Accounts

These last two items, the Lakin Preschool and the Investment accounts have their own reporting systems, independent of the budgeting system. As you can see, these operations are not insignificant. They represent about $200,000 in revenues and expenses and assets of $1.5 million. In order to insure proper oversight, the Board engages an independent certified public accountant to review our books. This past year, the Finance Committee and Board requested proposals from four local accounting firms and awarded the task to Long and Barrell. Working under the standards of generally accepted accounting principles, the accounts put together two sets of statement.

The first set of statements reports on the operations of the Lakin Preschool alone. These statements are required for submittal to the licensing group within the Pennsylvania Department of Education to maintain our pre-school certification. The second set of statements reflects the aggregated operations of RCOS. These statements encompass the breadth of our activities and are the only comprehensive statements available to the Board and its membership. The Board accepted the statements for our fiscal year ending June 30, 2015 at the February board meeting. A copy of these statements is available for review in the Temple office. An excerpt from the consolidated statements is shown below.

The presentation on the accountant’s statements is quite different from our budgeting reports. He reports not only on the total operations, but he reports on the operations of three subsets of our funds, those that are Unrestricted, and those that are either Temporarily Restricted or Permanently Restricted, based on the conditions place of the original donations by their donors. As an example, a gift to the Maintenance and Capital Improvement Fund (formerly the Building Fund) is Temporarily Restricted. The funds, including the original principal, can be used in their entirety, but only for the stated purpose of the fund. On the other hand, a gift to the Cemetery Fund is Permanently Restricted in that the principal may never be used, so that it may grow and generate income sufficient to meet the perpetual care obligations of the Cemetery.

ASSETS

Cash and cash equivalents

Investments

Property and equipment, net

Other assets, at cost:

   Antiquities and fine arts

   RCOS due from Lakin

         TotaI Assets

 

2015

$    61,881

1,279,723

1,514,810

0

42,262

20,325

$3,119,001

 

2014

$  202,148

1,307,671

1,550,638

0

42,262

0

$ 3,102,719

LIABILITIES

Payroll taxes and withholding

Lakin due to RCOS

Deferred revenue

Perpetual care obligation

           Total Liabilities

 

 

$       6,675

20,325

0

173,510

$200,510

 

 

$     2,425

0

25,725

170,285

$198,435

NET ASSETS

Unrestricted

Temporarily restricted

Permanently restricted

         Total Net Assets

 

$2,207,559

407,902

303,030

$2,918,491

 

$2,217,286

381,163

305,835

$2,904,284

   Total Liabilities and Net Assets

  $3,119,001   $3,102,719