The Urban League of Broward County, (“ULBC”) was founded in 1974 as a not-for-profit social and human services organization by a diverse group of community leaders to alleviate some of the racial tensions brought on by forced desegregation of the county’s public schools. The ULBC, which was given affiliate status in 1975 as the National Urban League’s 94th affiliate, employs 95 employees and directly serves over 27,184 people annually. The ULBC is widely regarded as one of the most progressive Urban League affiliates in the nation. Established in 1910, the National Urban League, headquartered in New York City, spearheads the non-partisan efforts of the 90 local affiliates. The National Urban League is the nation’s oldest and largest community-based movement devoted to empowering African Americans.
The consolidated financial statements of the ULBC have been prepared on the accrual basis in accordance with U.S. generally accepted accounting principles (GAAP). The Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) is the source of authoritative GAAP. Revenues are recorded when earned and realized/realizable. Expenses are recorded when materials are received or services are provided. Expenses incurred at fiscal year-end have been accrued and expenses applicable to future periods have been deferred.
Restricted cash at June 30, 2023 and 2022, respectively, represent amounts to be used specifically for: “See the Notes to the SEFA for chart/table” on page 16
Investments represent one Endowment Fund of mutual equity and fixed income funds held by the Community Foundation of Broward on behalf of ULBC, as well as a portfolio of equities and debt securities held and managed by TD Bank. Investments are at fair market value at June 30, 2023 and 2022 and consist of the following: “See the Notes to the SEFA for chart/table” on page 17
ULBC reports its fair value measures using a fair value hierarchy defined by generally accepted accounting principles in the United States. The additional disclosures required about fair value measurements include, among other things, (a) the amounts and reasons for certain significant transfers among the three hierarchy levels of inputs, (b) the gross, rather than net, basis for certain Level 3 roll-forward information, (c) use of a “class” basis rather than a “major category” basis for assets and liabilities, and (d) valuation techniques and inputs used to estimate Level 2 and Level 3 fair value measurements. “See the Notes to the SEFA for chart/table” on page 18 - 19
“See the Notes to the SEFA for chart/table” on page 19
“See the Notes to the SEFA for chart/table” on page 20
County, Florida, to purchase a property for $5,360,000. As of the date of these financial statements, the sale and purchase of the property had not been executed; however, per the agreement a deposit in the amount of $536,000 had been made to the escrow account as well as an additional $15,000 payment to extend the date of completion for the inspection period. Accordingly, as of June 30, 2023, $551,000 is reflected as funds held in escrow on the statement of financial position. The sale and purchase agreement reflects specific entitlement approvals and milestones for finalization of the purchase of the property.
Beginning in November 2021, CCCDC incurred costs associated with the construction of three homes that are to be sold upon completion. As of the date of these financial statements, two of the three sales have been finalized. Accordingly, loss on sale of assets has been recorded on the statement of activities and the corresponding assets sold have been reduced. The remaining $253,839 is reflected as other assets on the statement of financial position. As of the date of these financial statements, the third sale has been finalized and the activity will be reflected in the June 30, 2024 financial statements.
“See the Notes to the SEFA for chart/table” on page 21 - 22
In August 2022, ULBC entered into an operating lease with one of its subsidiaries for the use of office space. On July 1, 2022, ULBC implemented FASB ASU No. 2016-02, Leases (Topic 842) and as a result has recorded right-of-use asset and liability in the consolidating statement of financial position. An interest rate of 3.99% was used to discount the annual lease payments and recognize the intangible right to use this asset and the lease liability as of August 1, 2022. The right-of-use asset was recorded at $2,202,349, which equals the initial calculation of the right-to-use liability of $2,202,349. During the year ended June 30, 2023, the lease expense of the right-of-use assets totaled $276,000. These amounts are eliminated in consolidation. “See the Notes to the SEFA for chart/table” on page 23
During the years ended June 30, 2023 and 2022, contributed non-financial assets recognized within the statement of activities included: “See the Notes to the SEFA for chart/table” on page 23
Agency Endowment Fund on its behalf. Contributions to the fund and existing assets held therein are included in net assets with donor restrictions to be held in perpetuity. The principal of ULBC’s fund is invested by the Foundation in mutual stock funds. The market value of the mutual funds at June 30, 2023 and 2022 was $93,225 and $89,333, respectively. “See the Notes to the SEFA for chart/table” on page 24
On January 28, 2011, ULBC secured financing in the amount of $3,680,000 through a tax-exempt Industrial Revenue Bond issued by Broward County and financed as a direct placement by TD Bank, N.A. Financing terms included an 18-month construction period during which interest only payments are made on the balance of construction draws from bond proceeds. Following the 18-month construction period, the principal balance will be amortized over 20 years at a rate of 4.84%. The loan term matures on July 28, 2032 and there is a call option 7 years after completion of the 18-month interest only period. On February 4, 2013, ULBC executed the first amendment with TD Bank N.A., the Bondholder, to reduce the interest rate by 25 basis points. As a result of the amendment, the interest rate was reduced from 4.84% to 4.59% effective February 1, 2013. On January 31, 2017, ULBC executed a second amendment with TD Bank N.A., to reduce the interest rate by 60 basis points. As a result of the amendment, the interest rate was reduced from 4.59% to 3.99% effective March 1, 2017. The current bond rate of 3.99% remains in effect. The call date was set for July 28, 2026, and a rate option on the bond was available to the bank, however, the bank did not exercise its right to tender or reset the rate. “See the Notes to the SEFA for chart/table” on page 25
“See the Notes to the SEFA for chart/table” on page 26
The primary function of the Fund Development Department is to generate unrestricted funding from contributions, memberships, and special events. The fund development expenses are fundraising expenses, which are expensed as incurred. For the years ended June 30, 2023 and 2022, fundraising expenses were approximately $416,963 and $338,651, respectively.
Effective October 1991, the Urban League of Broward County, Inc., adopted a retirement plan (Tax Deferred Annuity Plan) for the benefit of its employees. All full-time employees who are at least age 21 and have completed one year of service with the Urban League of Broward County (ULBC) are eligible. ULBC’s contribution to the plan is an amount up to 5% of the employee’s annual compensation. ULBC’s contribution totaled approximately $144,998 and $108,627 for the years ended June 30, 2023 and 2022, respectively.
The ULBC receives a significant portion of its funding from public grants. A significant reduction in the level of this funding, if this were to occur, would have an effect on the agency’s ability to carry out its programs and activities.
ULBC has an agreement with the Community Foundation of Broward, Inc. (the “Foundation”) to administer an Agency Endowment Fund on its behalf for the “Campaign for Change”. The contributions of approximately $483,000 paid to the Foundation by third parties on behalf of ULBC are to be held into perpetuity by the Foundation on behalf of ULBC. At June 30, 2023 and 2022, the fund balance with earnings (losses) less distributions totaled approximately $478,868 and $458,871, respectively. In accordance with FASB ASC 958-205-50-1B “Transfer of Assets to a Not-For-Profit Organization or Charitable Trust That Raises or HoldsContributions For Others”, this balance is not recorded as an asset of ULBC.
During the Legislature, the State of Florida made a provision for a grant award to ULBC in Specific Appropriation Item 2256A in the 2014-2015 General Appropriations Act in the amount of $1,500,000 for the purpose of establishing, administering and marketing a revolving loan guarantee program to stimulate access to credit for under-resourced business and specifically providing that $1,000,000 of the grant shall be used to establish a loan loss reserve account. The remaining $500,000 was used to provide administrative services relating to the loan guarantee program.
On May 14, 2019, CCCDC, a subsidiary of ULBC, purchased loan receivables totaling $745,000 under the SBA Program from NDC Community Impact Loan Fund (“NDC”). As part of the purchase agreement, NDC maintains the billing and collection of funds and then remits collections of outstanding principal and interest to CCCDC.Subsequent to this original purchase the organization has given additional loan amounts to localbusinesses. The organization’s loan portfolio is composed of loans that are primarily secured by the borrower’sbusiness assets. The loans bear interest at various rates between 4.39% and 9.77% and have minimumpayments between $515 and $2,834. The loans have various maturity dates between September 2022 throughNovember 2029. The loan portfolio consisted of the following at June 30, 2023 and 2022: “See the Notes to the SEFA for chart/table” on page 29
Campaign for Change / Community Empowerment Campaign In an effort to meet the growing and ever changing needs of its constituents, ULBC initiated its “Campaign for Change”, a program to mobilize public and private resources necessary to transform Central Broward’s 33311 zip code area by developing its children. A key element in this program is to build a new comprehensive community center in the area, deliver programs that value, and reward self-help and personal responsibility.
In April 2020, ULBC received loan proceeds of $782,884 from a financial institution through the Small Business Administration Paycheck Protection Program (“PPP”). The loan proceeds are to be used for payroll, rent, utilities, and interest expense. The loan matures on April 13, 2022 and bears annual interest at 1%. The loan is payable monthly with a deferral of payments for the first twelve months. The entire principal balance and accrued interest are forgivable in whole or in part in accordance with the Coronavirus Aid, Relief and Economic Security (“CARES”) Act. Pursuant to the terms of the CARES Act and any implementing rules and regulations, ULBC may apply for the loan to be forgiven by the SBA in whole or in part beginning no sooner than twenty-four (24) weeks from the date of the Note. Any loan balance remaining following forgiveness by the SBA will be fully amortized over the remaining term of the loan. During the year ended June 30, 2022, the entire balance of $782,884 was forgiven is recognized as revenue in the accompanying statement of activities.
ULBC monitors its liquidity so that it is able to meet its operating needs while maximizing the investment of its excess operating cash. ULBC has the following financial assets that could be made readily available within one year of the statement of financial position date to fund operating expenses without limitation, such as donor-imposed or contractual restrictions or internal designations, as of June 30, 2023 and 2022: “See the Notes to the SEFA for chart/table” on page 30
During the year ended June 30, 2022, The Oaks at Pompano, Ltd., a company in which Urban Pompano, Inc. had a 0.02% interest and served as a general partner, sold their property and refinanced existing debt which yielded proceeds to Urban Pompano, Inc. and liquidation of the interest held. As per the partnership agreement with The Oaks at Pompano, Ltd., Urban Pompano, Inc. received a total of $4,418,240 which is included in other income for the year ended June 30, 2022 in the accompanying statement of activities. Additionally, income taxes associated with this revenue have been recorded on the statement of activities in the amount of $1,074,000.