The National Center for Farmworker Health, Inc. (NCFH) is a 501(c)(3) nonprofit corporation created in 1975 whose purpose is to provide the exchange of medical information among community based migrant health centers in order to achieve continuity of health care for migrant farmworkers nationwide. NCFH is supported primarily through federal and other grants.
BASIS OF ACCOUNTING The financial statements of NCFH are prepared using the accrual basis of accounting whereby revenues and expenses are recognized in the period earned or incurred. FINANCIAL STATEMENT PRESENTATION Net assets, revenues, gains, and losses are classified based on the existence or absence of donor or grantor 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. 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 the passage of time or other events specified by 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. CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of demand deposits such as cash in bank and money market funds. INVESTMENTS Investments are stated at fair value in the statement of financial position with any realized or unrealized gains and losses reported in the statement of activities. Certificates of deposits are carried at amortized cost. FIXED ASSETS Fixed assets with a useful life of more than one year and an original cost equal to or greater than $10,000 are recorded at cost or, if donated, recorded at fair market value on the date of donation. Maintenance and repairs which neither materially add to the value of the property nor appreciably prolong its life, are charged to expense as incurred. 9 NATIONAL CENTER FOR FARMWORKER HEALTH, INC. NOTES TO FINANCIAL STATEMENTS NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Depreciation expense is recorded using the straight-line method and the following estimated useful lives: Buildings 40 years Building Improvements 10-20 years Furniture & Equipment 5-7 years RECEIVABLES NCFH considers all recorded accounts and grants receivables to be fully collectible. Accordingly, no allowance for doubtful accounts is required. REVENUE AND REVENUE RECOGNITION Revenue is recognized when earned. Program service fees and payments under cost-reimbursable contracts received in advance are deferred to the applicable period in which the related services are performed or expenditures are incurred, respectively. Contributions are recognized when cash, securities or other assets, or an unconditional promise to give is received. Conditional promises to give are not recognized until the conditions on which they depend have been substantially met. Contract revenue from training and technical assistance services is recognized over time as the service is performed; payment is due upon completion of the services. FEDERAL AWARDS A significant portion of NCFH’s revenue is derived from cost reimbursable federal grants, which are conditioned upon certain performance requirements and/or the incurrence of allowable qualifying expenses. Amounts received are recorded as revenue when NCFH has incurred expenditures in compliance with specific contract or grant provisions. NCFH has been awarded cost reimbursable grants of $18,946,948 that have not been recognized as revenue at year end because qualifying expenditures have not been incurred. ESTIMATES The preparation of financial statements in conformity with U.S. generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts and disclosures. Accordingly, actual results could differ from those estimates. INVENTORY Inventory, consisting of prints, posters, note cards, books and pamphlets, videos, and other educational materials are carried at the lower of cost or net realizable value. Revenues from Resource Center sales are used to replenish the Resource Center inventory in order to fund scholarships. INCOME TAX STATUS NCFH is a nonprofit organization exempt from Federal income taxes under IRS Code Section 501(c)(3), except to the extent it has unrelated business activities. Therefore, no provision has been made for Federal income taxes in the accompanying financial statements. NCFH’s policy is to record interest and penalties related to income taxes as interest and other expense, respectively. 10 NATIONAL CENTER FOR FARMWORKER HEALTH, INC. NOTES TO FINANCIAL STATEMENTS NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FUNCTIONAL EXPENSES The costs of providing various programs and other activities have been summarized on a functional basis in the financial statements. Accordingly, certain costs have been allocated among the programs and supporting services benefitted. NCFH allocates salaries, payroll taxes, other employee benefits, supplies, telephone, postage/shipping, office/computer equipment, travel, conferences & meetings, consultants/contracts, subscriptions, Resource Center, printing and publications, training and development, and miscellaneous costs between program and administrative by estimating the percentage of personnel time spent on each area as estimated by management. The estimates are reviewed periodically and the allocations revised, if necessary, to reflect changes in the activities of the organization. COMPENSATED ABSENCES NCFH expenses paid time off in the year earned. Upon termination, the employee is compensated for any accrued but unused time, not to exceed the maximum of hours allowed per the personnel policy based on years of service. MEMORANDUM ONLY SUMMARIZED COMPARATIVE INFORMATION FOR PRIOR YEAR The financial statements include certain prior year summarized comparative information. 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 NCFH’s financial statements for the year ended December 31, 2023, from which the summarized information was derived, and the Independent Auditor’s Report on pages 1- 3. SUBSEQUENT EVENTS Management of NCFH has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the financial statements were available to be issued.
Quoted prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3 Investments $1,942,370 $0 $0
Investments consist of the following: Certificates of deposit $15,818 Municipal bonds 75,156 Mutual funds 1,851,396 $1,942,370
NCFH provides a 401(k) retirement and profit sharing plan that covers all employees that have completed one year of service and have also attained age 21. Under the plan, the employees contribute a percentage or dollar amount of their salary to the plan and NCFH makes discretionary contributions determined on an annual basis by management. The total discretionary contributions for the year ended December 31, 2024 were $95,318.
NCFH’s financial instruments exposed to concentration of credit risk consist of investments which are held in brokerage accounts. NCFH has not experienced any losses due to this credit risk. Investment balances in excess of SIPC coverage were $1,442,370. Bank balances held in financial institutions in excess of FDIC coverage were $620,885 at year-end. Three grants represented 97% of NCFH’s total revenue for the year and two grants represented 89% of total grant receivables due at year end.
Revenue, disaggregated by training services and sales: Training and technical assistance services recognized based on goods and services transferred to customers over time $149,291 Resource Center sales earned at a point in time 847 Artwork sales earned at a point in time 24,760 $174,898 Contract revenue consists of revenue received from training and technical assistance services as well as Resource Center and artwork sales which are included in contracts and other revenues on the statement of activities. Topic 606 applies to revenue received from training and technical assistance services and sales. Revenue is recognized over time as prep work, training, sale, and reporting are completed. At year end, all training and technical assistance revenue was earned.
Financial assets available for general expenditure, that is, without donor or other restrictions limiting their use, within one year of the statement of financial position date, comprise the following: Cash and cash equivalents $759,427 Funds held by USIO 520,735 Grants receivable 1,040,864 Other receivables 96,915 $2,417,941 As part of NCFH’s liquidity management plan, NCFH invests cash in excess of daily requirements in investments, certificates of deposit, and money market funds.
NCFH is funded by grants and contracts that are subject to financial and compliance audits by the grantor agencies. These grants and contracts have certain compliance requirements and, should audits by the grantor agencies disclose any areas of substantial noncompliance, NCFH may be required to refund any disallowed costs. Management does not believe any instances of substantial noncompliance exist.