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, memberships and contributions.
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 $8,490,854 ($7,032,779 and $1,458,075 for federal and state, respectively) that have not been recognized at 31 December 2024 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, online services, printing high volume and other, which are allocated on the basis of estimated time and effort spent by employees.
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.
The Association has a defined contribution plan covering substantially all employees. Under the plan, the Association contributes seven percent of eligible employees’ salaries. Employer contribution expense incurred to the plan during the year was approximately $192,000.
Financial assets available for general expenditure, within one year of the statement of financial position date, comprise the following: Cash $508,552 Federal and state awards receivable 1,742,477 Contributions receivable 50,030 $2,301,059 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.
Furniture and equipment $19,011 Software and website 856,377 Accumulated depreciation (616,898) $258,490
Program Administration Fundraising Total Sub-grantees $3,902,839 $642,821 $45,916 $4,591,576 Salaries and related 3,224,567 531,105 37,936 3,793,608 Professional services 498,838 82,162 5,869 586,869 Travel and training 222,573 36,659 2,619 261,851 Office lease 165,144 27,200 1,943 194,287 Depreciation 126,555 20,844 1,489 148,888 Supplies 97,922 16,128 1,152 115,202 Printing high volume 94,211 15,517 1,108 110,836 Lobbying 63,861 10,518 751 75,130 Online services 49,942 8,226 588 58,756 Other 121,925 20,082 1,433 143,440 $8,568,377 $1,411,262 $100,804 $10,080,443
Revenue from three governmental agencies represented 95% of the Association’s total revenue for the year. Additionally, 90% of total receivables were due from these three agencies. At year-end, the Association held approximately $256,000 in bank balances in excess of FDIC coverage. The Association has not experienced any losses due to this.
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 2024. Performance obligations satisfied at a point in time $151,219 Performance obligations satisfied over time $65,543 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.
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 1 and 4 years, respectively. The discount rate applied to calculate lease obligations as of 31 December 2024 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 (411,657) (48,727) $152,553 $97,453 Total lease cost: Office operating lease $163,690 Equipment finance lease: Amortization of ROU asset 24,363 Interest on lease obligation 6,234 $194,287 Future lease payments for the years ending 31 December: Operating lease Finance lease 2025 $180,444 $28,800 2026 0 28,800 2027 0 28,800 2028 0 28,800 180,444 115,200 Less: present value discount (8,593) (13,076) 171,851 102,124 Less: current portion (171,851) (23,694) $0 $78,430 Supplemental cash flow information related to leases: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating lease $177,096 Operating cash flows from finance lease $6,234 Financing cash flows from finance leases $22,565