The URL can be used to link to this page

Home My WebLink AboutCOM 0696.003 2008-2010 • 6 HAWAII ISLAND HUNIANE I SOCIETY CL,,.ti ; . , June 16, 2010 Mayor Kenoi, Police Chief Kubojiri, Ms. Crawford, Mr. Yoshimoto, Ms. Schrandt, and Ms. Ishii: Attached are files containing the 2006 Review, 2007 Review and 2008 Financial Audit. The Final Drafts of these documents will be delivered to you on Thursday June 17 I welcome the independent review proposed by Nori and Marshall and can be available at any time. Please feel free to call with any questions or comments at 329 -8002. Sincerely, 6 0,,,,,,a. :,0■-eil Donna Whitaker Executive Director P.S. The Financial Audit for FYE 2010 is scheduled to begin the third week of August and will be delivered by the October 31S deadline. Comm. No. G • 3 I To: F C. Lt. Lwe,WR 1 8 , fl IT 74 -5225 Queen Kaahumanu Hwy • Kailua -Kona, HI 96740 • Telephone (808) 329 -1175 • Fax (808) 329 -4618 Keaau (808) 966 -5458 • Kamuela (808) 885 -4558 HAWAII ISLAND HUMANE SOCIETY (A Hawaii Nonprofit Corporation) REVIEWED SCHEDULE OF COUNTY PROGRAM ACTIVITY FOR THE YEAR ENDED JUNE 30, 2006 I' Certified Pubic Accountants Carbonaro 1 CPA I& Associates Member: AICPA HSCPA REVIEW REPORT To the Board of Directors Hawaii Island Humane Society Kailua Kona, Hawaii 96740 -2701 We have reviewed the accompanying schedule of County program activity of Hawaii Island Humane Society (a Hawaii non- profit corporation) for the year ended June 30, 2006, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in this schedule is the representation of the management of Hawaii Island Humane Society. A review consists principally of inquiries of Organization personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. The accompanying schedule was prepared to present the revenue and expenditures of one contract — The County of Hawaii contract for animal control and spay and neuter services, and is not intended to be a complete presentation of Hawaii Island Humane Society's revenue and expenditures. Based on our review, we are not aware of any material modifications that should be made to the accompanying schedule in order for it to be in conformity with generally accepted accounting principles Mountain View, Hawaii May 19, 2010 P.O.Box 4372 • Hilo, Hawaii 96720 • Phone: (808) 968 -1002 Fax: 1 -(866) 728 -6430 HAWAII ISLAND HUMANE SOCIETY Schedule of County Program Activity For the Year Ended June 30, 2006 Animal S/N Control CAP Total Receipts: County of Hawaii Contracted Funds $ 94.5,697 $ 50,000 $ 995,697 Total Receipts 945,697 50,000 995,697 Operating Expenses Salaries and Wages $ 556.491 $ - $ 556,491 Surgery Programs and Supplies - 50,000 50,000 Employee Benefits 75,072 - 75,072 Kennel /Animal Disposal /Janitorial Supplies 49,920 - 49,920 Insurance 38,942 - 38,942 Payroll Taxes 55,408 - 55,408 Utilities 69,294 - 69,294 Auto Expense 36,736 - 36,736 Repairs and Maintenance 20,021 - 20,021 Legal and Professional Services 6,561 - 6,561 Network Expense - - - Staff Meeting and Training 6,731 - 6,731 Uniforms 5,480 - 5,480 Office Supplies 9,964 - 9,964 Meals and Travel 7,875 - 7,875 Dues, Licenses, Subs, Taxes 3,436 - 3,436 Contract Labor - - - Postage and Freight 6,140 - 6,140 Office Equipment and Rentals 4,112 - 4,112 Printing 2,728 - 2,728 Advertising 2,981 - 2,981 Bank Fees 472 - 472 Veterinary Care 617 - 617 Total Operating Expenditures 958,981 50,000 1,008,981 Fixed Asset Purchases - - Excess Receipts (Under) Expenditures $ (13,284) $ - $ (13,284) The accompanying notes and Review report are an integral part of this schedule. Page 2 HAWAII ISLAND HUMANE SOCIETY Notes to the Schedule of County Program Activity June 30, 2006 Note 1. ORGANIZATION The Hawaii Island Humane Society is a non - profit organization incorporated under the laws of the State of Hawaii on May 10, 1962. Hawaii Island Humane Society is organized for the prevention of cruel and /or inhumane treatment of animals. They also provide shelter for old, homeless, abandoned, sick or injured animals, as well as, encourage, promote and conduct research relating to the prevention of cruel and inhumane treatment of animals. The Hawaii Island Humane Society is responsible for carrying out animal control for the County of Hawaii for the entire island of Hawaii. They maintain shelters in each of three island locations; Kona, Kea'au and Waimea. Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Method of Accounting: The Organization uses the accrual method of accounting for financial statement reporting according to generally accepted accounting principles. Under this method of accounting, revenue is recognized when earned rather than when received and expenses are recognized when incurred rather than when paid. Property and Equipment: The Society has purchased various fixed assets with County grant funds. As a result, these assets revert back to the grantor upon discontinuance of their intended purposes. However, management plans to use the assets for their intended purposes for the life of the assets and the likelihood of the assets having to be returned is remote. Income Taxes: Hawaii Island Humane Society is exempt from Federal income taxes under Section 501(c)(3) of the Internal Revenue Code and also from State of Hawaii income taxes under Sections 416 -19 and 416 -20 of the Hawaii Revised Statutes. 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 certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. County of Hawaii Contract: The schedule of County program activity represents the revenue and expenditures of one contract for the year ended June 30, 2007. The contract is from the County of Hawaii to the Hawaii Island Humane Society for the services of animal control and spay and neuter. Page 3 HAWAII ISLAND HUMANE SOCIETY Notes to the Financial Statements June 30, 2006 Note 3. RETIREMENT PLAN The Hawaii Island Humane Society maintains an IRA retirement plan for all eligible employees whereby the Organization contributes 5% of each eligible employee's wages. Employees are considered eligible after they have been employed by the Organization for at least two years. During the year, retirement plan expenses totaled $18,634. Note 4. SPAY /NEUTER PROGRAM The Hawaii Island Humane Society sells coupons that enable the client to take their animal to a participating veterinarian for spay /neuter services. As a service to the community, the veterinarian has agreed to perform his services at a reduced rate. The veterinarian accepts the coupon as payment for the spay /neuter services that he has performed and bills the Hawaii Island Humane Society for payment of these services. The County of Hawaii subsidized the payments to the veterinarians by funding Hawaii Island Humane Society the amount of $50,000 for the year. If the program expenses exceed the county funding, the remaining expenses are paid from the revenues generated by coupon sales. The following is a summary of the total Spay /Neuter program: Total Spay /Neuter Coupon Sales $ 126,056 Excess Expenses not covered by County funding $ 118,696 Excess Coupon Sales $ 7,60 Page 4 HAWAII ISLAND HUMANE SOCIETY (A Hawaii Nonprofit Corporation) REVIEWED SCHEDULE OF COUNTY PROGRAM ACTIVITY FOR THE YEAR ENDED JUNE 30, 2007 • Carbonaro Certified Public Accountants C Member: AiCPA C J J 4& Associates HSCPA REVIEW REPORT To the Board of Directors Hawaii Island Humane Society Kailua Kona, Hawaii 96740 -2701 We have reviewed the accompanying schedule of County program activity of Hawaii Island Humane Society (a Hawaii non- profit corporation) for the year ended June 30, 2007, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in this schedule is the representation of the management of Hawaii Island Humane Society. A review consists principally of inquiries of Organization personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. The accompanying schedule was prepared to present the revenue and expenditures of one contract — The County of Hawaii contract for animal control and spay and neuter services, and is not intended to be a complete presentation of Hawaii Island Humane Society's revenue and expenditures. Based on our review, we are not aware of any material modifications that should be made to the accompanying schedule in order for it to be in conformity with generally accepted, accounting principles Mountain View, Hawaii May 19, 2010 P.O.Box 4372 • Hilo, Hawaii 96720 • Phone: (808) 968 -1002 Fax: 1 -(866) 728 -6430 HAWAII ISLAND HUMANE SOCIETY Schedule of County Program Activity For the Year Ended June 30, 2007 Animal S/N Control CAP Total Rcccipts: County of Hawaii Contracted Funds $ 1,049,357 $ 100,000 $ 1,149,357 Total Receipts 1,049,357 100,000 1,149,357 Operating Expenses Salaries and Wages $ 648,693 $ - $ 648,693 Surgery Programs and Supplies - 100,000 100,000 Employee Benefits 81,131 - 81,131 Kennel /Animal Disposal /Janitorial Supplies 54,961 - 54,961 Insurance 36,408 - 36,408 Payroll Taxes 61,376 - 61,376 Utilities 66,138 - 66,138 Auto Expense 37,197 - 37,197 Repairs and Maintenance 26,506 - 26,506 Legal and Professional Services 6,029 - 6,029 Network Expense - - - Staff Meeting and Training 9,802 - 9,802 Uniforms 4,171 - 4,171 Office Supplies 10,768 - 10,768 Meals and Travel 4,365 - 4,365 Dues, Licenses, Subs, Taxes 4,530 - 4,530 Contract Labor - - - Postage and Freight 4,222 - 4,222 Office Equipment and Rentals 2,868 - 2,868 Printing - - - Advertising 3,823 - 3,823 Bank Fees 185 - 185 Veterinary Care - . - - Total Operating Expenditures 1,063,173 100,000 1,163,173 Fixed Asset Purchases 31,184 - 31,184 Excess Receipts (Under) Expenditures $ (45,000) $ - $ (45,000) The accompanying notes and Review report are an integral part of this schedule. Page 2 HAWAII ISLAND HUMANE SOCIETY Notes to the Schedule of County Program Activity June 30, 2007 Note 1. ORGANIZATION The Hawaii Island Humane Society is a non- profit organization incorporated under the laws of the State of Hawaii on May 10, 1962. Hawaii Island Humane Society is organized for the prevention of cruel and /or inhumane treatment of animals. They also provide shelter for old, homeless, abandoned, sick or injured animals, as well as, encourage, promote and conduct research relating to the prevention of cruel and inhumane treatment of animals. The Hawaii Island Humane Society is responsible for carrying out animal control for the County of Hawaii for the entire island of Hawaii. They maintain shelters in each of three island locations; Kona, Kea'au and Waimea. Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Method of Accounting: The Organization uses the accrual method of accounting for financial statement reporting according to generally accepted accounting principles. Under this method of accounting, revenue is recognized when earned rather than when received and expenses are recognized when incurred rather than when paid. Property and Equipment: The Society has purchased various fixed assets with County grant funds. As a result, these assets revert back to the grantor upon discontinuance of their intended purposes. However, management plans to use the assets for their intended purposes for the life of the assets and the likelihood of the assets having to be returned is remote. Income Taxes: Hawaii Island Humane Society is exempt from Federal income taxes under Section 501(c)(3) of the Internal Revenue Code and also from State of Hawaii income taxes under Sections 416 -19 and 416 -20 of the Hawaii Revised Statutes. 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 certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. County of Hawaii Contract: The schedule of County program activity represents the revenue and expenditures of one contract for the year ended June 30, 2007. The contract is from the County of Hawaii to the Hawaii Island Humane Society for the services of animal control and spay and neuter. Page 3 HAWAII ISLAND HUMANE SOCIETY Notes to the Schedule of County Program Activity June 30, 2007 Note 3. RETIREMENT PLAN The Hawaii Island Humane Society maintains an IRA retirement plan for all eligible employees whereby the Organization contributes 5% of each eligible employee's wages. Employees are considered eligible after they have been employed by the Organization for at least two years. During the year, retirement plan expenses totaled $7,757. Note 4. SPAY /NEUTER PROGRAM The Hawaii Island Humane Society sells coupons that enable the client to take their animal to a participating veterinarian for spay /neuter services. As a service to the community, the veterinarian has agreed to perform his services at a reduced rate. The veterinarian accepts the coupon as payment for the spay /neuter services that he has performed and bills the Hawaii Island Humane Society for payment of these services. The County of Hawaii subsidized the payments to the veterinarians by funding Hawaii Island Humane Society the amount of $ 100,000 for the year. If the program expenses exceed the county funding, the remaining expenses are paid from the revenues generated by coupon sales. The following is a summary of the total Spay /Neuter program: Total Spay /Neuter Coupon Sales $ 136,917 Excess Expenses not covered by County funding $ 83,014 Excess Coupon Sales $ 53,903 Page 4 • HAWAII ISLAND HUMANE SOCIETY (A Hawaii Nonprofit Corporation) AUDITED SCHEDULE OF COUNTY PROGRAM ACTIVITY FOR THE YEAR ENDED JUNE 30, 2008 C ertified Public Accountants Ca rbonaro � Member: AICPA CPA Associates HSCPA INDEPENDENT AUDITORS' REPORT To the Board of Directors Hawaii Island Humane Society Kailua Kona, Hawaii 96740 -2701 We have audited the accompanying schedule of County program activity of Hawaii Island Humane Society (a Hawaii non- profit corporation) for the year ended June 30, 2008. This schedule is the responsibility of Hawaii Island Humane Society's management. Our responsibility is to express an opinion on this schedule based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the schedule is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the schedule. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall schedule presentation. We believe that our audit provides a reasonable basis for our opinion. The accompanying schedule was prepared to present the revenue and expenditures of one contract — The County of Hawaii contract for animal control and spay and neuter services, and is not intended to be a complete presentation of Hawaii Island Humane Society's revenue and expenditures. In our opinion, the schedule of County program activity present fairly, in all material respects, the County program receipts and expenditures of Hawaii Island Humane Society for the year ended June 30, 2008, in conformity with accounting principles generally accepted in the United States of America. Mountain View, Hawaii May 19, 2010 P.O.Box 4372 • Hilo, Hawaii 96720 • Phone: (808) 968 -1002 Fax: 1 -(866) 728 -6430 HAWAII ISLAND HUMANE SOCIETY Schedule of County Program Activity For the Year Ended June 30, 2008 Animal S/N Control CAP Total Receipts: County of Hawaii Contracted Funds $ 1,782,477 $ 110,800 $ 1,893,277 Total Receipts 1,782,477 110,800 1,893,277 Operating Expenses Salaries and Wages $ 857,785 $ - $ 857,785 Surgery Programs and Supplies - 110,800 110,800 Employee Benefits 107,226 - 107,226 Kennel /Animal Disposal /Janitorial Supplies 86,183 - 86,183 Utilities 85,692 - 85,692 Payroll Taxes 69,533 - 69,533 Auto Expense 60,021 - 60,021 Insurance 47,655 - 47,655 Repairs and Maintenance 45,907 - 45,907 Legal and Professional Services 24,883 - 24,883 Staff Meeting and Training 20,659 - 20,659 Office Supplies 14,122 - 14,122 Uniforms 11,819 - 11,819 Office Equipment and Rentals 8,990 - 8,990 Meals and Travel 7,712 - 7,712 Postage and Freight 5,210 - 5,210 Advertising 4,095 - 4,095 Veterinary Care 3,658 - 3,658 Dues, Licenses, Subs, Taxes 3,416 - 3,416 Printing 768 - 768 Bank Fees 698 - 698 Network Expense 693 - 693 Total Operating Expenditures 1,466,725 110,800 1,577,525 Fixed Asset Purchases 172,595 - 172,595 Excess Receipts over Expenditures (Note 4) $ 143,157 $ - $ 143,157 The accompanying notes and Auditors' report are an integral part of this schedule. Page 2 HAWAII ISLAND HUMANE SOCIETY Notes to the Schedule of County Program Activity June 30, 2008 Note 1. ORGANIZATION The Hawaii Island Humane Society is a non - profit organization incorporated under the laws of the State of Hawaii on May 10, 1962. Hawaii Island Humane Society is organized for the prevention of cruel and /or inhumane treatment of animals. They also provide shelter for old, homeless, abandoned, sick or injured animals, as well as, encourage, promote and conduct research relating to the prevention of cruel and inhumane treatment of animals. The Hawaii Island Humane Society is responsible for carrying out animal control for the County of Hawaii for the entire island of Hawaii. They maintain shelters in each of three island locations; Kona, Kea'au and Waimea. Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Method of Accounting: The Organization uses the accrual method of accounting for financial statement reporting according to generally accepted accounting principles. Under this method of accounting, revenue is recognized when earned rather than when received and expenses are recognized when incurred rather than when paid. Property and Equipment: The Society has purchased various fixed assets with County grant funds. As a result, these assets revert back to the grantor upon discontinuance of their intended purposes. However, management plans to use the assets for their intended purposes for the life of the assets and the likelihood of the assets having to be returned is remote. Income Taxes: Hawaii Island Humane Society is exempt from Federal income taxes under Section 501(c)(3) of the Internal Revenue Code and also from State of Hawaii income taxes under Sections 416 -19 and 416 -20 of the Hawaii Revised Statutes. 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 certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. County of Hawaii Contract: The schedule of County program activity represents the revenue and expenditures of one contract for the year ended June 30, 2007. The contract is from the County of Hawaii to the Hawaii Island Humane Society for the services of animal control and spay and neuter. Page 3 • HAWAII ISLAND HUMANE SOCIETY Notes to the Schedule of County Program Activity June 30, 2008 Note 3. RETIREMENT PLAN The Hawaii Island Humane Society maintains an IRA retirement plan for all eligible employees whereby the Organization contributes 5% of each eligible employee's wages. Employees are considered eligible after they have been employed by the Organization for at least two years. During the year, retirement plan expenses totaled $33,300. Note 4. DEFERRED REVENUE Deferred Revenue of $143,157 at June 30, 2008, represents the unearned County of Hawaii contract funds that support the Animal Control program. Note 5. SPAY /NEUTER PROGRAM The Hawaii Island Humane Society sells coupons that enable the client to take their animal to a participating veterinarian for spay /neuter services. As a service to the community, the veterinarian has agreed to perform his services at a reduced rate. The veterinarian accepts the coupon as payment for the spay /neuter services that he has performed and bills the Hawaii Island Humane Society for payment of these services. The County of Hawaii subsidized the payments to the veterinarians by funding Hawaii Island Humane Society the amount of $110,800 for the year. If the program expenses exceed the county funding, the remaining expenses are paid from the revenues generated by coupon sales. The following is a summary of the total Spay /Neuter program: Total Spay /Neuter Coupon Sales $ 134,013 Excess Expenses not covered by County funding $ 60,683 Excess Coupon Sales $il3,330 Page 4