Texas Network of Youth Services, Inc. (TNOYS) is a nonprofit organization whose mission is to strengthen services and support for Texas youth and families to help them overcome challenges and achieve healthy development. TNOYS was incorporated 25 August 1980 as a membership organization serving nonprofit youth service providers and professionals throughout Texas. TNOYS is principally funded through federal and state cost reimbursement awards, foundation grants, conference income, and memberships. TNOYS works statewide to improve, support, and protect critical services for youth and their families, through the following activities: Policy Advocacy TNOYS’s policy advocacy program includes education, networking with stakeholders, and other efforts by TNOYS to increase awareness of the needs of youth and the organizations that serve young people and their families. Advocacy may include lobbying, but lobbying is typically minimal. TNOYS tracks and reports lobbying in accordance with state and federal legal and ethical guidelines. Professional and Program Development Services TNOYS’s professional and program development services ensure that those in the field are fully equipped to meet the complex needs of youth and their families. Youth Engagement TNOYS’s youth engagement programming challenges negative stereotypes about young people by working in partnership with youth to demonstrate what they are capable of when people invest in them.
BASIS OF ACCOUNTING TNOYS uses the accrual basis of accounting, which recognizes revenue when earned and expenses when incurred. Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor imposed restrictions. ESTIMATES The preparation of 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 and 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. SUBSEQUENT EVENTS TNOYS 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. FINANCIAL STATEMENT PRESENTATION The accompanying financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles. Net assets, revenues, expenses, gains, and losses are classified based on the existence or absence of donor imposed restrictions. Accordingly, net assets of TNOYS 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 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. INCOME TAXES TNOYS is an organization other than a private foundation exempt from Federal income taxes under IRS Code Section 501(c)(3). Therefore, no provision has been made for Federal income taxes in the accompanying financial statements. TNOYS’s policy is to record interest and penalty expense related to income taxes as interest and other expense, respectively. FIXED ASSETS Acquisitions of fixed assets valued at $5,000 or more and a useful life of one year or more are capitalized at cost if purchased, or estimated fair market value, if contributed. Depreciation on fixed assets is computed using the straight-line method over estimated useful lives of the respective assets, generally 5 years. REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue from contracts with customers consists of fee for service contracts, conference income, and memberships. Fee for service contracts consist of training sessions and peer navigator program consulting services. Revenue from the training sessions is recognized at a point in time, at the date of the training session and due in advance or at the date of the event. Revenue from consulting services is recognized over time, as the services are provided, and paid in arrears. Conference income consists of registration and exhibitors fees for the event held by TNOYS. Revenue from conference income is recognized at a point in time, at the date of the event when the benefit is transferred to the customer. Payment is typically received in advance or at the time of the event. Conference sponsorships are considered contributions and recognized upon receipt. Membership revenue is recognized over time, over the term of the membership, which is twelve months from the date the customer becomes a member. Memberships are available to organizations and individuals. Payment is typically received at the date the member enrolls. Members receive benefits and access to members only resources throughout the entire term of their membership, as such the revenue is recognized ratably over the term of the membership as the customer receives and has access to the benefits. Costs incurred to obtain a contract are expensed as incurred when the amortization period is less than a year. In general, revenue recognized does not have a significant financing component because payments are generally received upon execution of the agreement and completion of deliverables or at the time of, or prior to, the event or membership period. RECEIVABLES Receivables are amounts earned by TNOYS, but not collected at year end. The policy for determining when receivables are past due or delinquent is based on management’s knowledge of the accounts. At year end, no receivable amounts were considered uncollectible and no allowance was considered necessary. COST REIMBURSEMENT AWARDS A significant portion of TNOYS’s revenue is derived from cost-reimbursable federal and state awards, which are conditioned upon certain performance requirements and/or the incurrence of allowable qualifying expenses. Amounts received are recognized as revenue when TNOYS has incurred expenditures in compliance with specific grant provisions. Amounts received prior to incurring qualifying expenditures are reported as grant advances in the statement of financial position. TNOYS was awarded cost-reimbursable grants of $1,219,349 that have not been recognized at 31 August 2025 because qualifying expenditures have not been incurred, with advance payments of $22,924 recognized in the statement of financial position as a grant advance. FUNCTIONAL ALLOCATION OF EXPENSES The financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, some expenses require allocation on a reasonable basis that is consistently applied. Wages and benefits, professional services, information technology, travel, insurance, and other are allocated based on time and effort spent by personnel.
Funding from one grantor accounted for 37% of TNOYS’s total revenue and 85% of total receivables are due from three grantors for the year ended 31 August 2025. At 31 August 2025, TNOYS had cash balances in excess of FDIC insurance of $420,260.
TNOYS participates in a number of federal and state financial assistance programs. These programs are subject to financial and compliance audits by 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. TNOYS’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 TNOYS
Financial assets available for general expenditure, that is, within one year from the statement of financial position date, comprise the following: See report for table. As a part of TNOYS’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 TNOYS’s operating account. See Note 6 for additional details regarding the nature of donor imposed restrictions on assets that are not available for general expenditures within one year of the statement of financial position date. As described in Note 10, TNOYS has an existing line of credit totaling $100,000 which can be drawn upon in the event of an unanticipated liquidity need.
See the Notes to the SEFA for chart/table
DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS The following table disaggregates TNOYS’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 $155,230 Performance obligations satisfied over time $64,972 Revenue recognized at a point of time is from exhibitors and registrations included in conference income in the statement of activities and training sessions included in fee for services revenue in the statement of activities. Revenue recognized over time consists of memberships and consulting fee for service contracts. CONTRACT BALANCES Contract receivables consist of TNOYS’s right to payment from customers for services that have been provided to the customers for the conference. TNOYS had contract receivables from conference registrations of $3,830 at 31 August 2025 and $17,169 at 31 August 2024. Contract liabilities consist of TNOYS’s obligation to provide benefits to customers for which TNOYS has received consideration from the customer. Contract liabilities relate to membership dues received for benefits to be provided in a future period. Balances of contract liabilities at 31 August 2025 and 2024 were $23,200 and $17,169, respectively. These amounts are included in deferred membership dues in the statement of financial position. TNOYS has elected the practical expedient not to disclose the allocation to remaining performance obligations because all obligations are expected to be satisfied within one year.
See the Notes to the SEFA for chart/table
During the year, TNOYS received $55,191 in conference income and $13,479 in membership dues from board members and organizations associated with board members.
At 31 August 2025, TNOYS had a $100,000 line of credit with a financial institution maturing on 16 August 2026. Interest is due monthly at a variable rate (9.25% as of 31 August 2025) and all unpaid principal is due upon maturity. TNOYS made draws totaling $95,000 on the line of credit during the year, and there was no balance outstanding at year end. The line of credit is secured by all accounts held at the financial institution.