Workers Assistance Program, Inc. (WAP) was incorporated in the State of Texas in 1977. Their mission is to create better workplaces, schools, and communities; and is committed to providing affordable services that help individuals and organizations achieve optimum states of performance and well-being. WAP was founded on the fact that personal well-being of the American worker is of vital importance of businesses. Assistance is provided through work based, community based, and school based activities from grants and contributions and counseling services. Programs Include: * Alliance Work Partners (AWP) - Outfitting the workplace with healthier, more productive employees and lowering healthcare costs by providing a world-class employee assistance program. * Child and Adult Care Food Program - Offering nutritional training and funding for food supplements to day care providers to assist in compliance with the USDA’s Child and Adult Care Food Program. * Youth Advocacy - Empowering youth to communicate with respect, lead substance-free lives, and experience greater opportunities by focusing on the client’s strengths. * Peer Assistance Leadership (PAL) - Mentoring students through a program, adopted by the state, as an elective course to fight teen pregnancy, gang participation, and climbing dropout rates. * Texas Workers Relief Fund - The Texas Workers Relief fund is established to assist union workers and their families in their time of need during situations such as worker strikes and natural disasters. * Independent Case Management Services - Provides assistance, advocacy, and resource linkages to youth and their caregivers while youth are involved in the juvenile justice system.
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. NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING WAP uses the accrual basis of accounting. Contracts and grants are recorded as revenue when the funds are considered earned, regardless of when cash is received. Cost reimbursement contracts are recorded as revenue when the costs are incurred and contributions are recorded as support when the funds are awarded. Expenses are recorded when incurred regardless of when cash is disbursed. SUBSEQUENT EVENTS Management of WAP 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. ESTIMATES The preparation of the financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION 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. These allocated expenses include payroll and related and other, which are allocated based on management’s estimate of time and effort; and travel, contractual services, services, professional fees, printing, telephone, bank and merchant fees, rent and leases, and other, which are allocated based on management’s review and analysis of individual accounts and transactions. Expenses that are identifiable to a program are allocated to that specific program. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, WAP is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying financial statements. FIXED ASSETS Fixed assets are stated at cost if purchased or fair market value at the date of receipt if donated. Purchases are capitalized if the cost exceeds $5,000 and there is a useful life greater than one year. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5-10 years for equipment, 12 years for furniture and equipment and 39 years for buildings. NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REVENUE AND RECEIVABLES 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 counseling and training services are recognized at the time the service takes place. Payments for counseling services are typically made after the counseling session. Payments for training services are typically made prior to or at the time of the event. Deferred revenue is recognized when cash is received prior to the revenue being earned. In general, revenue does not have a financing component because payment terms are relatively short. WAP has elected to apply the exemption for disclosing the remaining performance obligations because WAP recognizes revenue in an amount that it has the right to invoice when that amount corresponds directly with the value to the customer of services provided. A significant portion of WAP’s revenue is derived from cost reimbursement federal awards and grants, which are conditioned upon certain performance requirements and/or the incurrence of allowable qualifying expenses. Amounts received are recognized as revenue when WAP has incurred expenditures in compliance with specific contract or grant provisions. Grants and accounts receivable are recorded when revenue is earned prior to cash being received. Accounts receivable are considered past due based upon the terms of the agreements. WAP analyzes all receivables individually throughout the year for purposes of determining collectibility of each receivable category at year-end (0-30 days, 30-60 days 60-90 days, 90+days). As of year-end an allowance for doubtful accounts of $58,269 has been recorded. LEASES WAP determines if an arrangement is or contains a lease at inception. 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, and ROU assets also include prepaid or accrued rent. Operating lease expense is recognized on a straight-line basis over the lease term. For finance 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. WAP does not report ROU assets and leases obligations 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. Non-lease components, such as service fees and common area maintenance charges, are separated from lease components based on the terms of the related lease. Non-lease components are expensed as incurred.
Financial assets available for general expenditure, within one year of the statement of financial position date, comprise the following: Cash $2,470,476 Grants receivable 89,134 Accounts receivable 320,360 2,879,970 Less: amounts unavailable for general expenditure due to donor restrictions for disaster relief (249,908) $2,630,062 As part of WAP’s liquidity management, it has a policy to structure its financial assets to be available as its general expenditures, liabilities and other obligations come due. The policy is that monthly revenues are to cover monthly expenses. Monthly revenues and expenditures are deposited in and deducted from WAP’s operating accounts.
For the year-ended 31 August 2025, funding provided by one governmental agency represented 17% of total revenue. Grants receivable due from this funding source represented 22% of total receivables at year-end. At year-end, WAP had cash balances in excess of FDIC insurance amounting to $2,237,059.
Land $26,000 Buildings 723,385 Furniture and equipment 3,469 Accumulated depreciation (230,722) $522,132
WAP receives substantial funding under cost reimbursement grants. Any of the funding sources may, at their discretion, request reimbursement for expenses or return of funds as a result of noncompliance with the terms of the grant contracts. Management believes requests for reimbursement, if any, would not be significant.
WAP has a defined contribution plan covering substantially all employees. WAP contributes 5% of eligible employee compensation to the plan. After five years of employment, WAP matches employee contributions up to 5%, which increases to 15% upon 15 years of service. WAP’s contribution to the plan for the fiscal year was approximately $178,000.
WAP evaluated current contracts to determine which met the criteria of a lease. The ROU asset represents WAP’s right to use the underlying asset for the lease term, and the lease obligation represents WAP’s obligation to make lease payments arising from the lease. The ROU asset and lease obligation, which arise from one finance lease, were calculated based on the present value of future lease payments over the lease term. A discount rate of 5% was applied to the finance lease to calculate the lease obligation, which was based on the U.S. Treasury rate in effect at the time the lease was executed. The lease expires in April 2030. Lease costs Amortization of ROU asset $79,211 Interest on lease obligation 14,659 $93,870 Supplemental balance sheet information related to finance lease ROU assets Equipment $79,211 Accumulated amortization (8,801) $70,410 Remaining lease term 56 months Supplemental cash flow information related to finance lease Cash paid for amounts included in the measurement of lease obligations Financing cash flows from finance leases $10,430 Components of lease expense for the fiscal year Payments on short-term leases for equipment and storage $58,813 Finance lease 12,762 $71,575 NOTE 8: LEASES Future minimum lease payments for the years ended 31 August: 2026 $17,880 2027 17,880 2028 17,880 2029 17,880 2030 11,921 83,441 Less: discount (10,699) 72,742 Less: current portion (14,243) Long-term lease obligations $58,499
DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS The following table disaggregates WAP’s revenue based on the timing of satisfaction of performance obligations for the year-ended 31 August 2025. Performance obligations satisfied at a point in time $5,266,708 Revenue recognized at a point in time includes fees for counseling services and training fees. CONTRACT BALANCES Accounts receivable from contracts consist of WAP’s right to payment from customers for services that have been provided to the customers. The balance of contract receivables at 31 August 2025 and 2024 was $320,360 and $260,262, respectively. Contract liabilities consist of prepayments for by the customer for services not yet received. Balances of contract liabilities at 31 August 2025 and 2024 were $183,986 and $191,039, respectively. PERFORMANCE OBLIGATIONS Program service fees are recognized at a point of time, based on when the service is provided to the customer. Typically, control of the service is deemed to transfer at the date at which the service is provided. Fees are billed monthly as services are provided. Payment is typically due upon completion of the services. Transaction prices vary depending the service provided.
Allowance for credit losses, beginning of year $58,269 Provision for credit losses 3,619 Charge offs (19,151) Recoveries 15,532 Allowance for credit losses, end of year $58,269
Program Services Alliance Work Partners Child and Adult Care Food Program Peer Assistance Leadership Independent Case Management Services Youth Advocacy Texas Workers Relief Fund Total Program Services General and Admin Total Payroll and related $1,588,197 $130,053 $173,648 $74,320 $57,971 $0 $2,024,189 $874,265 $2,898,454 Contractual services 1,306,672 0 0 0 0 0 1,306,672 455 1,307,127 Subgrants 0 921,157 0 0 0 0 921,157 0 921,157 Services 359,196 1,479 0 0 0 0 360,675 105,826 466,501 Travel 57,131 5,249 3,360 19,326 0 0 85,066 14,096 99,162 Rent and leases 8,039 3,839 1,254 0 9,968 0 23,100 48,475 71,575 Professional fees 0 4,375 0 0 0 0 4,375 62,445 66,820 Bank and merchant fees 15,849 993 1,933 0 1,012 0 19,787 41,100 60,887 Telephone 19,181 3,579 2,166 433 6,105 0 31,464 15,374 46,838 Depreciation 0 0 0 0 0 0 0 18,548 18,548 Disaster relief 0 0 0 0 0 14,500 14,500 0 14,500 Printing 1,690 641 10,157 0 0 0 12,488 0 12,488 Other 93,364 2,891 1,734 3,787 2,327 0 104,103 21,786 125,889 $3,449,319 $1,074,256 $194,252 $97,866 $77,383 $14,500 $4,907,576 $1,202,370 $6,109,946