Title: Nature of Activities
Accounting Policies: Th SEFA was prepared in accordance with accounting standards generally accepted in the USA (GAAS); the standards applicable to financial audits contained in the Government Auditing Standards issued by the Comptroller General of the United States government; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The ASSISTments Foundation, Inc. (the "Organization") was organized on April 1, 2019 to serve as a group of educators, learning scientists, and software engineers dedicated to improving student learning through responsive online technology that is teacher-paced and evidence based
Title: Basis of Accounting
Accounting Policies: Th SEFA was prepared in accordance with accounting standards generally accepted in the USA (GAAS); the standards applicable to financial audits contained in the Government Auditing Standards issued by the Comptroller General of the United States government; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The financial statement of ASSISTments Foundation, Inc. have been prepared using the accural basis of accounting in accordance with the generally accepted accounting principles promulgated in the United State of America (U.S. GAAP) for not-for-profit entities
Title: Comparative Financial Information
Accounting Policies: Th SEFA was prepared in accordance with accounting standards generally accepted in the USA (GAAS); the standards applicable to financial audits contained in the Government Auditing Standards issued by the Comptroller General of the United States government; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The financial statements include certain prior-year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the Organization's financial statements for the year ended June 30, 2022, from which the summarized information was derived.
Title: Financial Statement Presentation
Accounting Policies: Th SEFA was prepared in accordance with accounting standards generally accepted in the USA (GAAS); the standards applicable to financial audits contained in the Government Auditing Standards issued by the Comptroller General of the United States government; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Financial statement presentation follows the recommendations of the Financial Accounting Standards Boards in its Accounting Standards for Financial Statements of Not-For-Profit Organizations . Under these standards, the Organization is required to report information regarding its financial position and activities according to two classifications of net assets required under ASU No. 2016-14 described as follows:
Accordingly, net assets of the Organization and changes therein are reported in the following net asset categories:
Net Assets Without Donor Restrictions - Net assets that are not subject to donor imposed restrictions and may be expended for any purpose in performing the primary objectives of the Organization. These net assets may be used at the discretion of the Organization's management and the Board of Directors.
Net Assets With Donor Restrictions - Net assets that are subject to stipulations imposed by donors and grantors. Some donor restrictions are temporary in nature. Those restrictions will be met by the Organization or by the passage of time. Other donor restrictions are perpetual in nature where by the donor has stipulated the funds be maintained in perpetuity. Donor restrictions are reported as increases in net assets and transferred to donor restrictions to net assets without donor restrictions, once the stipulations are met, in the statement of activities.
At June 30, 2023 and 2022 there were only net assets without donor restrictions, for each year.
Title: Functional Allocation of Expenses
Accounting Policies: Th SEFA was prepared in accordance with accounting standards generally accepted in the USA (GAAS); the standards applicable to financial audits contained in the Government Auditing Standards issued by the Comptroller General of the United States government; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The costs of providing the various programs and activities have been summarized on a functional basis in the Statement of Activities and in the Statement of Functional Expenses. Expenses that are identified as specific to program expense, general and administrative or fundraising are charged directly to that function. Costs common to multiple functions include salaries and wages and related expenses and are allocated using a reasonable and consistent method. Fundraising costs are expensed as incurred.
Title: Cash and Cash Equivalents
Accounting Policies: Th SEFA was prepared in accordance with accounting standards generally accepted in the USA (GAAS); the standards applicable to financial audits contained in the Government Auditing Standards issued by the Comptroller General of the United States government; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Cash consists of available funds on deposit at financial institutions. The Organizations considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. The Company maintains its cash balances at two financial institutions. Cas balances are insured by the Federal Deposit Insurance Corproation (FDIC) up to 250,000. The Organization's uninsured cash balance totled $91,145 and $319,038 as of June 30, 2023 and 2022, respectively.
Title: Interest Paid
Accounting Policies: Th SEFA was prepared in accordance with accounting standards generally accepted in the USA (GAAS); the standards applicable to financial audits contained in the Government Auditing Standards issued by the Comptroller General of the United States government; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
For the years ended June 30, 2023 and 2022 the Organization paid $87 and $1,235, in interest, respectively.
Title: Accounts Receivable
Accounting Policies: Th SEFA was prepared in accordance with accounting standards generally accepted in the USA (GAAS); the standards applicable to financial audits contained in the Government Auditing Standards issued by the Comptroller General of the United States government; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Accounts receiveable consists of foundation, trust, and government grants. Accounts receivable are stated at the amount the Organization expects to collect. The Organization considers these receivables to be fully collectible. Accoridngly, no allowance for uncollectible accounts is recorded. If amounts become uncollectible, they will be written off in the period that the determination is made.
Title: Income Tax Status
Accounting Policies: Th SEFA was prepared in accordance with accounting standards generally accepted in the USA (GAAS); the standards applicable to financial audits contained in the Government Auditing Standards issued by the Comptroller General of the United States government; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The Organization is a not-for-profit organization as described in Section 501(c)(3) of the Internal Revenue Code and is exempt from federal and state income taxes, though it would be subject to tax on income unrelated to its exempt purposes. No provision has been made for federal or state income taxes or related interest and penalties in the accompanying financial statements.
Management annually reviews for uncertain tax positions along with any related interest and penalties and believes that the Organization has no uncertain tax positions. The Organization's open tax audit periods are 2020-2022.
Title: Use of Estimates
Accounting Policies: Th SEFA was prepared in accordance with accounting standards generally accepted in the USA (GAAS); the standards applicable to financial audits contained in the Government Auditing Standards issued by the Comptroller General of the United States government; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The 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.
Title: Fair Value Measurements
Accounting Policies: Th SEFA was prepared in accordance with accounting standards generally accepted in the USA (GAAS); the standards applicable to financial audits contained in the Government Auditing Standards issued by the Comptroller General of the United States government; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The Organization adopted the methods of calculating fair value of its financial assets and liabilities, when applicable. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a fair value hierarchy that prioritizes observable and unobservable inputs is used to measure fair value into three broad levels, which are described below: Accounting standards establish a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.
Level 2: Observable inputs that are based on inputs not quoted in active markets, but corroborated by market data.
Level 3: Unobservable inputs that are used when little or not market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.
When available, the Organization measures fair value using level 1 inputs because they generally provide the most reliable evidence of fair value. However, level 1 inputs are not available for many of the assets and liabilities the Organization is required to measure at fair value (for example, unconditional promises to give).
The primary uses of fair value measures in the Organization's financial statements are initial measurements of noncash gifts.
Title: Revenue Recognition
Accounting Policies: Th SEFA was prepared in accordance with accounting standards generally accepted in the USA (GAAS); the standards applicable to financial audits contained in the Government Auditing Standards issued by the Comptroller General of the United States government; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Government grants and contracts consist of billings for expenditures submitted for cost-reimbursement contracts with government agencies. These amounts are accounted for as conditional contributions and revenue is recognized when the conditions related to the grant or contract have been satisified. Transfers of assets made prior to conditions being satisfied are accounted for as deferred revenue. Grant and contract revenue from federal or state agencies may be subject to audit, which could result in the disallowance of expenditures under the grant or reduction of future funding. Management does not believe there are any disallowed costs that would materially affect the Organization's financial statements for the years presented. Foundation and trust grants consist of conditional and unconditional contributions from private grantors. Unconditional contributions are recognized when received. These amounts are recorded as an increase to net assets without donor restrictions unless the use of the assets are purpose or time restricted by the grantor. Amounts received that are purpose or time restricted are recorded as an increase to net assets with donor restrictions when received. Conditional contributions are not recognized until conditions on which they depend are sastisfied.
In-kind contributions consist of contributions that the Organization received in the form of pro-bono software development and tutoring services. These contributions are measured at fair value at the time the services are received. Program Service Fees consist of revenue recognized for private grants that the Organization has received to develop software for tutoring platforms for the grantor. Educational Product and Service Sales is revenue recognized for professional development courses that the Organization hosts for tutors. These revenue streams are accounted for as exchange transactions within the scope of FASB ASC 606. The Organization performs the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the Organization satisfies a performance obligation. Program service fees are recognized using an input method such as estimated costs to complete.
Educational product and service sales are recognized at the point in time the training session is completed.