Title: NOTE 1:ORGANIZATION
Accounting Policies: TAASA uses the accrual method of accounting. Revenues are recognized when earned and expenses are recognized when accrued.
De Minimis Rate Used: N
Rate Explanation: TAASA did not elect to use 10% de minimin cost rate
Texas Association Against Sexual Assault, Inc. (Association) is a nonprofit corporation organized on 23 May 1983. The primary purpose of the Association is to provide network and communication assistance, and facilitates collaboration between agencies and individuals that assist all victims of sexual violence. The Association is supported primarily through federal and state awards, annual conference revenues, and contributions.
Title: NOTE 2:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: TAASA uses the accrual method of accounting. Revenues are recognized when earned and expenses are recognized when accrued.
De Minimis Rate Used: N
Rate Explanation: TAASA did not elect to use 10% de minimin cost rate
METHOD OF ACCOUNTING
The financial statements of the Association have been prepared on the accrual basis of accounting. Under the accrual basis, revenues are recognized in the accounting period in which they are earned. Expenses are recorded in the accounting period incurred.
FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows:
Net Assets Without Donor Restrictions
Net assets available for use in general operations and not subject to donor restrictions.
Net Assets With Donor Restrictions
Net assets subject to donor imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both.
REVENUE AND REVENUE RECOGNITION
Unconditional grants and contributions are recorded as support when the funds are awarded. Contributions received are recorded as support with or without donor restrictions depending on the existence or nature of any donor restrictions. Contributions that are reported as support with donor restrictions are reclassified to net assets without donor restrictions upon expiration of the time or purpose restriction.
Revenue for the annual conference is recognized at the time of the event, when customers receive the benefits. Payments are typically received in advance or at the time of the event.
Revenue from memberships is recognized over the term of the membership as benefits are available to be consumed during the entire period. Memberships are available to individuals and organizations. Memberships are typically paid at the beginning of the term, when the customer joins. Deferred revenue is recognized when cash is received prior to the revenue being earned. In general, revenue does not have a significant financing component because payment terms are relatively short.
Federal and state awards and contributions receivable are recorded when revenue is earned prior to cash being received. The Association considers all federal and state receivables to be 100% collectible based on historical collection rates; therefore, an allowance for doubtful accounts has not been recorded.
A significant portion of the Association’s revenue derived from cost reimbursement federal and state awards, which are conditioned upon certain performance requirements and/or the occurrence of allowable qualifying expenses. Amounts received are recognized as revenue when the Association has incurred expenditures in compliance with specific contract or grant provisions. Amounts received prior to incurring qualifying expenditures are reported as refundable advances in the statement of financial position. The Association received cost reimbursable grants of $13,491,245 ($11,910,140 and $1,581,105 for federal and state, respectively) that have not been recognized at 31 December 2023 because qualifying expenditures have not been incurred.
SUBSEQUENT EVENTS
Management has evaluated subsequent events as of the date of the Independent Auditor’s Report, the date the financial statements were available to be issued.
FIXED ASSETS
The Association capitalizes assets over $5,000 that have a useful life greater than one year. Fixed assets are recorded at cost and depreciated over their estimated useful lives, ranging from three to seven years, using the straight-line method. Donations of fixed assets are recorded at fair value on the date of donation. When assets are retired, or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in the period. Maintenance and repairs are charged to expense as incurred, and significant renewals and betterments are capitalized.
COMPENSATED ABSENCES
The Association expenses paid time off in the year earned. Upon termination, the employee is compensated for any unused accrued paid time off, not to exceed 80 hours.
LEASES
The Association determines if an arrangement is or contains a lease at inception. Leases with a term of more than 12 months are required to be classified as either finance or operating leases. Leases are classified as finance leases when the Association expects to consume a major part of the economic benefits of the leased assets over the remaining lease term. Conversely, the Association is not expected to consume a major part of the economic benefits of assets classified as operating leases.
Leases are included in right of use (ROU) assets and lease obligations in the statement of financial position. ROU assets and lease obligations reflect the present value of the future minimum lease payments over the lease term. Operating lease expense is recognized on a straight-line basis over the lease term. For financing leases, total lease cost is recorded on an accelerated basis whereby interest expense is recorded using the effective interest method, and ROU assets are amortized on a straight-line basis over the remaining lease term. The Association does not report ROU assets and lease liabilities for its short-term leases (leases with a term of 12 months or less). Instead, the lease payments of those leases are reported as lease expense on a straight-line basis over the lease term. Common area maintenance fees are expensed as incurred and included in office lease expense.
INCOME TAX STATUS
The Association is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code, except to the extent it has unrelated business income. Therefore, no provision for income taxes is included in the accompanying financial statements.
ESTIMATES
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 the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
FUNCTIONAL ALLOCATION OF EXPENSES
The Association incurs some expenses that are applicable to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are salaries and related, sub-grantees, professional services, office lease, travel and training, depreciation, lobbying, supplies, and other, which are allocated on the basis of estimated time and effort spent by employees.
Title: NOTE 3: CONTINGENCIES
Accounting Policies: TAASA uses the accrual method of accounting. Revenues are recognized when earned and expenses are recognized when accrued.
De Minimis Rate Used: N
Rate Explanation: TAASA did not elect to use 10% de minimin cost rate
The Association participates in a number of federal and state financial assistance programs. These programs are subject to financial and compliance audits by the grantors and regulatory authorities. The purpose of these audits is to ensure compliance with conditions relating to the granting of funds and other reimbursement regulations. The Association’s management believes that any liability for reimbursement which could arise as the result of these audits would not be material to the financial position of the Association.
Title: NOTE 4: EMPLOYEE BENEFIT PLAN
Accounting Policies: TAASA uses the accrual method of accounting. Revenues are recognized when earned and expenses are recognized when accrued.
De Minimis Rate Used: N
Rate Explanation: TAASA did not elect to use 10% de minimin cost rate
The Association has a defined contribution plan covering substantially all employees. Under the plan, the Association contributes seven percent of eligible employees’ salaries. Contribution expense incurred by the Association during the year was approximately $168,000.
Title: NOTE 5:LIQUIDITY AND AVAILABILITY
Accounting Policies: TAASA uses the accrual method of accounting. Revenues are recognized when earned and expenses are recognized when accrued.
De Minimis Rate Used: N
Rate Explanation: TAASA did not elect to use 10% de minimin cost rate
Financial assets available for general expenditure, within one year of the statement of financial position date, comprise the following:
Cash $371,434
Federal and state awards receivable 1,827,803
$2,199,237
As part of the Association’s liquidity management, financial assets are structured to be available as general expenditures, liabilities, and other obligations come due. The policy is that monthly revenues are to cover monthly expenses. Monthly revenues are deposited and deducted from the Association’s operating accounts.
Title: NOTE 6:FIXED ASSETS
Accounting Policies: TAASA uses the accrual method of accounting. Revenues are recognized when earned and expenses are recognized when accrued.
De Minimis Rate Used: N
Rate Explanation: TAASA did not elect to use 10% de minimin cost rate
Furniture and equipment $19,011
Software and website 625,006
Accumulated depreciation (467,290)
$176,727
Title: NOTE 7:COMMITMENTS
Accounting Policies: TAASA uses the accrual method of accounting. Revenues are recognized when earned and expenses are recognized when accrued.
De Minimis Rate Used: N
Rate Explanation: TAASA did not elect to use 10% de minimin cost rate
The Association is the awarding agency of sub recipients for grant funds, in which the Association is liable to pay out costs incurred during the grant period. These are cost reimbursement grants subject to the grantee incurring allowable costs.
Title: NOTE 8:FUNCTIONAL EXPENSE ALLOCATION
Accounting Policies: TAASA uses the accrual method of accounting. Revenues are recognized when earned and expenses are recognized when accrued.
De Minimis Rate Used: N
Rate Explanation: TAASA did not elect to use 10% de minimin cost rate
Program Administration Fundraising Total
Sub-grantees $2,780,993 $458,046 $32,718 $3,271,757
Salaries and related 2,756,819 454,064 32,433 3,243,316
Professional services 426,031 70,170 5,012 501,213
Travel and training 195,167 32,145 2,296 229,608
Office lease 138,480 22,808 1,629 162,917
Depreciation 106,234 17,497 1,250 124,981
Lobbying 65,066 10,717 765 76,548
Supplies 63,549 10,467 748 74,764
Online services 58,379 9,615 687 68,681
Other 203,684 33,549 2,395 239,628
$6,794,402 $1,119,078 $79,933 $7,993,413
Title: NOTE 9:CONDITIONAL GRANTS
Accounting Policies: TAASA uses the accrual method of accounting. Revenues are recognized when earned and expenses are recognized when accrued.
De Minimis Rate Used: N
Rate Explanation: TAASA did not elect to use 10% de minimin cost rate
During the year, the Association received a multi-year pledge that includes conditional contributions of $25,000 and $50,000, in 2025 and 2026, respectively, if the Association raises matching contributions.
Title: NOTE 10:NET ASSETS WITH DONOR RESTRICTIONS
Accounting Policies: TAASA uses the accrual method of accounting. Revenues are recognized when earned and expenses are recognized when accrued.
De Minimis Rate Used: N
Rate Explanation: TAASA did not elect to use 10% de minimin cost rate
Net assets released from donor restrictions during the year:
Satisfaction of purpose restrictions:
Human trafficking survivors $50,000
Title: NOTE 11:REVENUE FROM CONTRACTS WITH CUSTOMERS
Accounting Policies: TAASA uses the accrual method of accounting. Revenues are recognized when earned and expenses are recognized when accrued.
De Minimis Rate Used: N
Rate Explanation: TAASA did not elect to use 10% de minimin cost rate
DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS
The following table disaggregates the Association’s revenue based on the timing of satisfaction of performance obligations for the year ended 31 December 2023.
Performance obligations satisfied at a point in time $119,772
Performance obligations satisfied over time $37,304
Revenue recognized at a point of time includes client registration fees for the annual conference, which are recognized at the time the meeting or event is held. Revenue recognized over time consists of membership dues, which are recognized over the membership period as services are provided.
Title: NOTE 12:CONCENTRATIONS
Accounting Policies: TAASA uses the accrual method of accounting. Revenues are recognized when earned and expenses are recognized when accrued.
De Minimis Rate Used: N
Rate Explanation: TAASA did not elect to use 10% de minimin cost rate
for the year. Additionally, 84% of the federal and state awards receivable were due from these four agencies.
At year-end, the Association held approximately $120,000 in bank balances in excess of FDIC coverage. The Association has not experienced any losses due to this.
Title: NOTE 13: LEASES
Accounting Policies: TAASA uses the accrual method of accounting. Revenues are recognized when earned and expenses are recognized when accrued.
De Minimis Rate Used: N
Rate Explanation: TAASA did not elect to use 10% de minimin cost rate
The Association’s leases consist of an operating lease for office space and a finance lease for equipment. At year-end, the remaining lease terms for the Association’s operating and finance lease were approximately 2 and 5 years, respectively. The discount rate applied to calculate lease obligations as of 31 December 2023 was 5%, based on the Association’s estimated incremental borrowing rate.
ROU assets: Operating lease Finance lease
Cost $564,210 $146,180
Less: accumulated amortization (267,127) (24,363)
$297,083 $121,817
Total lease cost:
Office operating lease $162,917
Equipment finance lease:
Amortization of ROU asset 24,363
Interest on lease obligation 7,309
$194,589
Future lease payments for the years ending 31 December: Operating lease Finance lease
2024 $177,096 $28,800
2025 180,444 28,800
2026 0 28,800
2027 0 28,800
2028 0 28,800
357,540 144,000
Less: present value discount (25,210) (19,310)
332,330 124,690
Less: current portion (160,479) (22,566)
$171,851 $102,124
Supplemental cash flow information related to leases:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating lease $173,760
Operating cash flows from finance lease $7,309
Financing cash flows from finance leases $21,491