Title: NOTE 1:ORGANIZATION
Accounting Policies: El Buen uses the accrual basis method of accounting. Using this method of accounting, revenue and accounts receivable are reported when funds are considered earned, regardless of when cash is received. Expenses and accounts payable are reported when obligations are incurred, regardless of when cash is disbursed.
De Minimis Rate Used: Y
Rate Explanation: El Buen elected to use the deminimis cost rate.
El Buen Samaritano Episcopal Mission (El Buen) was incorporated under the State of Texas Non-Profit Corporation Act on 1 October 1987. El Buen is an outreach ministry of the Episcopal Diocese of Texas (Diocese of Texas) committed to recognize the dignity of all by ensuring access to healthcare, education and essential needs that lead to healthy, productive and secure lives. Since its inception, El Buen has been at the forefront of responding to the many social-environmental factors leading to lack of access to health care, social services, education, and nutrition. Over time, El Buen has adapted to meet the community needs that come with population growth, immigration, economic fluctuations, and recently the COVID-19 pandemic and Winter Storm Uri. This adaption has led to El Buen’s comprehensive strategy centered on addressing the social determinants of health, utilizing an anti-oppressive framework to provide a “one stop shop” addressing the needs of the Latino and Spanish-speaking community in Travis County and surrounding areas. El Buen provides education (ESL, Digital Literacy, Adult Basic Education and High School Equivalency in Spanish), workforce development, child and adolescent development (parenting and school-readiness, after school tutoring, and summer camp), health literacy and access to health services, a year-round, no-cost food pantry, and a community garden. In response to the community needs resulting from the pandemic and winter storms, El Buen initiated its cash and rent assistance programs. All services at El Buen are provided by bilingual bi-cultural staff.
Title: NOTE 2:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: El Buen uses the accrual basis method of accounting. Using this method of accounting, revenue and accounts receivable are reported when funds are considered earned, regardless of when cash is received. Expenses and accounts payable are reported when obligations are incurred, regardless of when cash is disbursed.
De Minimis Rate Used: Y
Rate Explanation: El Buen elected to use the deminimis cost rate.
BASIS OF ACCOUNTING
El Buen uses the accrual basis method of accounting. Using this method of accounting, revenue and accounts receivable are reported when funds are considered earned, regardless of when cash is received. Expenses and accounts payable are reported when obligations are incurred, regardless of when cash is disbursed.
FINANCIAL STATEMENT PREPARATION
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 (or certain grantor) restrictions. These result from governmental awards, rental, investment, and other operating revenues and unrestricted contributions, less expenses incurred in operations to raise contributions and for administrative functions.
Net Assets With Donor Restrictions
Net assets subject to donor (or certain grantor) imposed restrictions. Some donor imposed restrictions are temporary in nature, such as those that will be met by 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 the restriction expires, which includes when the stipulated time has elapsed, when the stipulated purpose for which the restricted resource has been fulfilled, or both.
FIXED ASSETS
Fixed assets are capitalized at cost if the value of the item is more than $2,500 and the estimated useful service life of the item is more than one year. Depreciation is computed over the estimated useful service life of the asset (generally 3 to 39 years) using the straight line method. Donations of fixed assets are recorded as support at their estimated fair value at the date of donation. Assets donated with explicit restrictions regarding their use and contributions of cash that must be used to acquire property and equipment are reported as restricted support. Absent donor stipulations regarding how long those donated assets must be maintained, El Buen reports expirations of donor restrictions when the donated or acquired assets are placed into service as instructed by the donor. El Buen reclassifies net assets with donor restrictions to net assets without donor restrictions at that time.
The Diocese of Texas holds title to all real property purchased by El Buen, even though El Buen pays and incurs debt for these purchases. El Buen has included real property in the property and equipment balances on the statements of financial position because substantially all benefits and risks incident to the ownership of the property remains with El Buen. Therefore, any real property is accounted for as an acquisition of an asset, despite the Diocese of Texas holding title.
CONTRIBUTIONS
Unconditional grants and contributions received are recorded as increases in net assets without donor restrictions or as increases in net assets with donor restrictions, depending on the existence or nature of any donor restrictions. As donor or time restrictions are satisfied, net assets are reclassified to net assets without donor restrictions. El Buen’s policy is to report restricted support that is satisfied in the year of receipt as support without donor restrictions.
CONDITIONAL CONTRIBUTIONS
Revenue from grants and contributions that are considered to be conditional contributions are recognized as conditions are substantially met or reimbursable expenses are incurred.
RECEIVABLES
Uncollectible receivables are provided for using the allowance method of accounting for bad debts, whereby a provision for uncollectible accounts is charged to expense. This estimate is based on management’s experience with tenants, individual grantors and donors. El Buen considers all receivables to be fully collectible; accordingly, no allowance for doubtful accounts has been recorded.
GOVERNMENT AWARDS
El Buen considers all government awards to be exchange transactions rather than contributions. El Buen recognizes revenue as eligible expenditures are incurred and/or as services are provided. Eligible expenditures incurred in excess of grant fund reimbursements are recorded as receivables.
CONTRIBUTED GOODS AND SERVICES
Contributed services that create or enhance non-financial assets or that require specialized skills, which are provided by individuals possessing those skills, and which would typically need to be purchased if not provided by donation, are recorded at their fair values in the period received. Contributed goods are recorded at their fair value in the period received.
FUNCTIONAL ALLOCATION OF EXPENSES
The financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. Expenses are allocated based on estimates of personnel time and management’s review and analysis of individual transactions and costs. Expenses that are allocated are payroll and related, contract labor, equipment lease, communications, rental assistance, professional fees, facilities, equipment purchases and repairs, special events, and other.
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 certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
FEDERAL INCOME TAX
El Buen is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code, except to the extent it has unrelated business activities. As such, no provision for federal income taxes has been made in the accompanying financial statements.
SUBSEQUENT EVENTS
El Buen has evaluated subsequent events as of the date of the Independent Auditor’s Report, the date the financial statements were available to be issued.
Title: NOTE 3:INVESTMENTS
Accounting Policies: El Buen uses the accrual basis method of accounting. Using this method of accounting, revenue and accounts receivable are reported when funds are considered earned, regardless of when cash is received. Expenses and accounts payable are reported when obligations are incurred, regardless of when cash is disbursed.
De Minimis Rate Used: Y
Rate Explanation: El Buen elected to use the deminimis cost rate.
Mutual funds $842,186
Exchange traded products 847,400
Cash and cash alternatives 9,323
$1,698,909
Title: NOTE 4: FAIR VALUE MEASUREMENTS
Accounting Policies: El Buen uses the accrual basis method of accounting. Using this method of accounting, revenue and accounts receivable are reported when funds are considered earned, regardless of when cash is received. Expenses and accounts payable are reported when obligations are incurred, regardless of when cash is disbursed.
De Minimis Rate Used: Y
Rate Explanation: El Buen elected to use the deminimis cost rate.
Carrying
Amount Quoted Prices in Active Markets for Identical Assets
(Level 1) Significant
Other
Observable
Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Mutual funds $842,186 $842,186 N/A N/A
Exchange traded products $847,400 $847,400 N/A N/A
Title: NOTE 5: CONCENTRATIONS
Accounting Policies: El Buen uses the accrual basis method of accounting. Using this method of accounting, revenue and accounts receivable are reported when funds are considered earned, regardless of when cash is received. Expenses and accounts payable are reported when obligations are incurred, regardless of when cash is disbursed.
De Minimis Rate Used: Y
Rate Explanation: El Buen elected to use the deminimis cost rate.
El Buen received 69% of its revenue from two sources. 88% of receivables were due from two sources.
Cash balances at year-end exceeded FDIC coverage by $246,373.
Title: NOTE 6: LINE OF CREDIT
Accounting Policies: El Buen uses the accrual basis method of accounting. Using this method of accounting, revenue and accounts receivable are reported when funds are considered earned, regardless of when cash is received. Expenses and accounts payable are reported when obligations are incurred, regardless of when cash is disbursed.
De Minimis Rate Used: Y
Rate Explanation: El Buen elected to use the deminimis cost rate.
On 26 May 2015, El Buen executed a line of credit with a bank for $500,000. This note has been renewed to extend the maturity date to December 2025. The note is secured by El Buen’s rights, titles and interests in certain brokerage accounts held by a securities intermediary. There was no balance outstanding at 30 September 2024.
Title: NOTE 7: RETIREMENT PLAN
Accounting Policies: El Buen uses the accrual basis method of accounting. Using this method of accounting, revenue and accounts receivable are reported when funds are considered earned, regardless of when cash is received. Expenses and accounts payable are reported when obligations are incurred, regardless of when cash is disbursed.
De Minimis Rate Used: Y
Rate Explanation: El Buen elected to use the deminimis cost rate.
El Buen participates in a multi-employer defined contribution plan through the Episcopal Church Pension Fund (Plan). Employees are enrolled on the first day of the month following their date of hire. El Buen contributes 5% of eligible compensation to participant accounts. In addition, El Buen matches participant contributions, dollar for dollar, up to 4% of eligible compensation. Participants are fully vested in all participant contributions. During the year El Buen contributed $234,510 to the Plan.
Title: NOTE 8: LEASES
Accounting Policies: El Buen uses the accrual basis method of accounting. Using this method of accounting, revenue and accounts receivable are reported when funds are considered earned, regardless of when cash is received. Expenses and accounts payable are reported when obligations are incurred, regardless of when cash is disbursed.
De Minimis Rate Used: Y
Rate Explanation: El Buen elected to use the deminimis cost rate.
El Buen leases office equipment under a contract that expires in July 2029. Lease expense for the year was approximately $30,000. Future remaining minimum lease payments at 30 September 2024 are $61,944.
Title: NOTE 9: NET ASSETS WITH DONOR RESTRICTIONS
Accounting Policies: El Buen uses the accrual basis method of accounting. Using this method of accounting, revenue and accounts receivable are reported when funds are considered earned, regardless of when cash is received. Expenses and accounts payable are reported when obligations are incurred, regardless of when cash is disbursed.
De Minimis Rate Used: Y
Rate Explanation: El Buen elected to use the deminimis cost rate.
Net Assets subject to purpose restrictions at 30 September 2024:
Hands for Hope $98,898
Coordinated Care Network 50,000
Tournament of Champions 20,000
Strengthening Family Self Sufficiency and Literacy 20,000
Education 15,000
Connecting Generations 19,602
Other 11,664
$235,164Satisfaction of purpose restrictions during the year ended 30 September 2024:
Hands for Hope $141,102
Education 50,000
ACF - Comiendo Saludable 25,000
Strengthening Family Self Sufficiency and Literacy 20,000
Summer Camp 17,393
Support Development of Computer Lab and Digital Literacy 16,676
STEAM Education and Leadership 10,085
Tournament of Champions 10,000
Coordinated Care Network 9,190
Other 36,629
$336,075
Title: NOTE 10: FIXED ASSETS
Accounting Policies: El Buen uses the accrual basis method of accounting. Using this method of accounting, revenue and accounts receivable are reported when funds are considered earned, regardless of when cash is received. Expenses and accounts payable are reported when obligations are incurred, regardless of when cash is disbursed.
De Minimis Rate Used: Y
Rate Explanation: El Buen elected to use the deminimis cost rate.
Buildings and improvements $5,580,240
Furniture and equipment 857,206
Land 520,702
Software 51,088
Vehicles 108,279
Accumulated depreciation (3,458,892)
$3,658,623
Title: NOTE 11: CONTRIBUTED GOODS AND SERVICES
Accounting Policies: El Buen uses the accrual basis method of accounting. Using this method of accounting, revenue and accounts receivable are reported when funds are considered earned, regardless of when cash is received. Expenses and accounts payable are reported when obligations are incurred, regardless of when cash is disbursed.
De Minimis Rate Used: Y
Rate Explanation: El Buen elected to use the deminimis cost rate.
El Buen recognized revenue from contributed nonfinancial assets which were received without donor imposed restrictions. Food pantry goods $1,127,399
Professional services 77,178
$1,204,577
El Buen receives donated food and grocery products for distribution in the food pantry. Donated food and grocery products are recorded in the financial statements at an estimated fair value based on current rates for similar products.Contributed professional services comprise educational services provided by qualified instructors received in support of its programs. Contributed educational services are valued and reported at the estimated fair value in the financial statements based on current rates for similar services.
El Buen also received 220 hours of volunteer service for the food pantry valued at $59,085 and 117 hours of volunteer service for administration and events valued at $11,634, however these services were not recorded in the financial statement because they did not meet the criteria under accounting standards for recognition
Title: NOTE 12: RELATED PARTY TRANSACTIONS
Accounting Policies: El Buen uses the accrual basis method of accounting. Using this method of accounting, revenue and accounts receivable are reported when funds are considered earned, regardless of when cash is received. Expenses and accounts payable are reported when obligations are incurred, regardless of when cash is disbursed.
De Minimis Rate Used: Y
Rate Explanation: El Buen elected to use the deminimis cost rate.
Total contributions from Board members for the year were $21,317.
Title: NOTE 13: LIQUIDITY AND AVAILABILITY
Accounting Policies: El Buen uses the accrual basis method of accounting. Using this method of accounting, revenue and accounts receivable are reported when funds are considered earned, regardless of when cash is received. Expenses and accounts payable are reported when obligations are incurred, regardless of when cash is disbursed.
De Minimis Rate Used: Y
Rate Explanation: El Buen elected to use the deminimis cost rate.
As part of El Buen’s liquidity management, financial assets are structured to be available as general expenditures, liabilities, and other obligations come due. El Buen invests cash in excess of daily requirements in investments. Financial assets available for general expenditure, within one year of the statement of financial position date, comprise the following:Cash $364,442
Investments 1,698,909
Government awards receivable 2,218,225
4,281,576
Net assets unavailable for general expenditure due to donor imposed
restrictions (Note 8):
(235,164)
$4,046,412
Title: NOTE 14: CONTINGENCIES
Accounting Policies: El Buen uses the accrual basis method of accounting. Using this method of accounting, revenue and accounts receivable are reported when funds are considered earned, regardless of when cash is received. Expenses and accounts payable are reported when obligations are incurred, regardless of when cash is disbursed.
De Minimis Rate Used: Y
Rate Explanation: El Buen elected to use the deminimis cost rate.
El Buen receives cost reimbursement grants from the City of Austin to assist with implementation of its program. Should El Buen not comply with the terms of the grants or should any costs be determined to be ineligible, El Buen will be responsible for reimbursing the grantor for these amounts. Management believes there will be no such disallowance.
El Buen has been named in a negligence lawsuit resulting from a person who was injured on the property on 30 March 2021. Substantial investigation and discovery has been conducted. The deposition of the Plaintiff and other relevant parties have been completed. No other depositions are anticipated at this time. El Buen’s attorney is currently working towards moving to get thePlaintiff’s claims against El Buen dismissed by way of dispositive motion (Motion for Summary Judgment). Should the Motion for Summary Judgment be unsuccessful, then litigation in this matter as it relates to El Buen will continue until the case is resolved via jury trial or pre-trial settlement. Should this matter go trial, and a jury finds liability on El Buen, said apportionment of liability will be split between the Plaintiff’s own comparative fault and co-defendant Stevan Buren Roofing, Inc. El Buen will only be liable for its apportionment of liability relevant to the damages being claimed by Plaintiff. Currently, Plaintiff is asserting past incurred medical expenses totaling $146,426. This figure does not include claims for non-economic damages such as past and future pain/suffering, mental anguish, physical impairment and disfigurement. The attorney believes the case against El Buen is defensible. Furthermore, should El Buen be found to be even partially responsible for Plaintiff’s injuries, its liability for money damages will be limited to a maximum of $500,000. El Buen anticipates the cost of defense and indemnification to be provided by its insurance carrier. At this time, El Buen’s attorney has not received response on the motion.
Title: NOTE 15: COST-REIMBURSEMENT GRANTS
Accounting Policies: El Buen uses the accrual basis method of accounting. Using this method of accounting, revenue and accounts receivable are reported when funds are considered earned, regardless of when cash is received. Expenses and accounts payable are reported when obligations are incurred, regardless of when cash is disbursed.
De Minimis Rate Used: Y
Rate Explanation: El Buen elected to use the deminimis cost rate.
A significant portion of El Buen’s revenue is derived from cost-reimbursement government grants, which are conditioned upon the incurrence of allowable qualifying expenses. Amounts received are recognized as revenue when El Buen has incurred expenditures in compliance with specific contract provisions. Cash amounts received prior to incurring qualifying expenditures are reported as refundable advances in the statement of financial position. There were no refundable advances at year-end. El Buen has been awarded cost reimbursable grants of $2,166,898 that have not been recognized as revenue at 30 September 2024 because qualifying expenditures have not been incurred.
Title: NOTE 16: FUNCTIONAL EXPENSES
Accounting Policies: El Buen uses the accrual basis method of accounting. Using this method of accounting, revenue and accounts receivable are reported when funds are considered earned, regardless of when cash is received. Expenses and accounts payable are reported when obligations are incurred, regardless of when cash is disbursed.
De Minimis Rate Used: Y
Rate Explanation: El Buen elected to use the deminimis cost rate.
Program Administrative Fundraising Total
Rental assistance $10,281,157 $12,862 $2,766 $10,296,785
Payroll and related 2,420,887 1,029,598 327,309 3,777,794
Contributed food and services 1,204,577 0 0 1,204,577
Contract labor 611,075 33,949 33,949 678,973
Facilities 310,689 17,261 17,261 345,211
Special events 174,973 24,996 49,992 249,961
Depreciation 0 247,930 0 247,930
Equipment purchases and
repairs 132,399 15,576 7,788 155,763
Professional fees 136,038 7,558 7,558 151,154
Program materials and
supplies
114,752
0
0
114,752
Communications 14,192 19,256 8,558 42,006
Equipment lease 25,662 3,019 1,510 30,191
Other 141,535 32,817 20,099 194,451
$15,567,936 $1,444,822 $476,790 $17,489,548