Embed Size (px)
Citation preview
FOOD BANK OF CONTRA COSTA AND SOLANO
FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2019
This Page Left Intentionally Blank
INTRODUCTORY SECTION
This Page Left Intentionally Blank
FOOD BANK OF CONTRA COSTA AND SOLANO
Financial Statements For the Year Ended June 30, 2019
Table of Contents
I INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................. i
Food Bank of Contra Costa and Solano Board of Directors and Management ............................................ ii
Trans1nittal Letter ........................................................................................................................................... iii
I FINANCIAL SECTION I Independent Auditor's Report ..................................................................................................................... 1
Financial Statements
Statement of Financial Position ............................................................................................................... 4
Statement of Activities ............................................................................................................................ 5
Statement of Functional Activities .......................................................................................................... 6
State1nent of Cash Flows ....................................................................................................................... 10
Notes to Financial Statements ............................................................................................................... 11
I SUPPLEMENTAL INFORMATION I Sources of Support and Revenues, Last Ten Years .............................................................................. 28
Functional Expenses - By Expense Category, Last Ten Years ............................................................ 29
Sources of Food, Current Year .............................................................................................................. 30
Food Distribution - By Program in Pounds, Current Year ................................................................... 31
Cost Per Pound - By Program, Last Four Years ................................................................................... 3 2
FOOD BANK OF CONTRA COSTA AND SOLANO
BOARD OF DIRECTORS
JUNE 30, 2019
OFFICERS
Tracy Tomkovicz, Chair Bill Bodnar, Vice Chair
Richard Golinski, Secretary-Treasurer
BOARD MEMBERS
TomA1iz Bill Bodnar
Stephanie Caronna Tom Chowaniec
Paul Gabbard Richard Golinski
Jim Gray Chris Green
Melissa Jones Howard Jordan
David Le Kitty Lenhart Marc Lewis Laura Moran Jacob Perez
Bruce Phelps Glenn Smith
Judy Teichman Tracy Tomkovicz
MANAGEMENT
Larry Sly Executive Director Hisham Hamdy Operations Director
Kim Castaneda - Development Director Caitlin Sly - Programs Director
HuLynne Besharatpour - Finance Director Lisa Sherrill - Communications Director Holly Neu - Human Resources Director
ii
0 NK
of Contra Costa & Solano
MAILING ADDRESS
P.O. Box 6324 Concord, CA 94524
www.foodbankccs.org
Federal Tax IDll 94-2418054
CONCORD LOCATION:
4010 Nelson Avenue Concord, CA 94520
P: (925) 676-7543
F: (925) 671-7933
October 2019
FAIRFIELD LOCATION: 2339 Courage Drive, Suite F
Fairfield, CA 94533
P: (707) 421-9777 F: (707) 421-0205
Mc.-mllurol
FEED NG. AMER CA
The Food Bank of Contra Costa and Solano continues to play a critical role providing food to people in need in our community. The Food Bank distributed over 25 million pounds of food in Contra Costa and Solano Counties in FY19, and we assisted partner groups in the North State area with disaster response and the ongoing needs in rural and remote areas. People who need food assistance get help from our partner agencies and the direct distribution programs we operate.
We are able to do this important work because the community cares. We receive financial support from individuals, businesses, faith communities, foundations and those who care about people in need. Because we manage our resources well, we remain a financially stable organization that can continue to do our important work into the future.
The Food Bank works toward the long-term goal of ending hunger while we continue to feed people every day. I am grateful we live in a community that wants to see this work continue.
Sincerely,
hA/ Larry Sly Executive Director
iii ~ - ~ r _,__ .- • -- - - -_..._t'~' •-- ;_••· -- ' - - -,,1. ' ·----. - -,.,-~,=, - ,, ,- . - ,,,
Ending hunger: together . · _ -. ~ - - _ !,•_ -_ · - • - - ~~
This Page Left Intentionally Blank
FINANCIAL SECTION
This Page Left Intentionally Blank
INDEPENDENT AUDITOR'S REPORT
Board of Directors Food Bank of Contra Costa and Solano Concord, California
Report on Fi11a11cial Statements
We have audited the accompanying financial statements of the Food Bank of Contra Costa and Solano (a nonprofit organization), which comprise the statement of financial position as of June 30, 2019, and the related statements of activities, functional activities, and cash flows for the year then ended, and the related notes to the financial statements.
Ma11ageme11t's Respo11sibility for the Fi11a11cial Stateme11ts
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Respo11sibility
Our responsibility is to express an opm10n on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosmes in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Food Bank of Contra Costa and Solano's preparation and fair presentation of the financial statements in order to design audit procedmes that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Food Bank of Contra Costa and Solano' s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Accountancy Corporation
3478 Buskirk Avenue, Suite 2-15
Pleasant Hill , CA 94523 1
T 925.930.0902 F 925.930.01 35
w mazeassoclates.com
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Food Bank of Contra Costa and Solano as of June 30, 2019, and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.
Report on Summarized Comparative Information
We have previously audited the Food Bank of Contra Costa and Solano 's 2018 financial statements, and we expressed an unmodified audit opinion on those financial statements in om report dated October 2, 2018. In our opinion, the summarized comparative information as of and for the year ended June 30, 2018 is consistent, in all material respects, with the audited financial statements from which it is derived.
Other Matters
Other Iriformation
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Food Bank's basic financial statements. The Introductory Section and Supplemental Information, listed in the Table of Contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The Supplemental Information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and ce1tain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplemental Information is fairly stated in all material respects in relation to the basic financial statements as a whole.
The Introductory Section has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
Other Reporting Required by Govemment Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated September 20, 2019, on our consideration of the Food Bank of Contra Costa and Solano' s internal control over financial reporting and on our tests of its compliance with ce1tain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial repo1ting and compliance and the results of that testing, and not to provide an opinion on internal control over financial repo1ting or on compliance. That repmt is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Food Bank of Contra Costa and Solano's internal control over financial repo1ting and compliance.
Pleasant Hill, California September 20, 2019
2
This Page Left Intentionally Blank
FOOD BANK OF CONTRA COST A AND SOLANO STATEMENT OF FINANCIAL POSITION
AS OF JUNE 30, 2019 WITH COMPARATIVE AMOUNTS AS OF JUNE 30, 2018
ASSETS
Current Assets: Cash and cash equivalents (Note 2C) Investments without donor restrictions (Note 4): Certificates of deposit Mutual funds
Accounts receivable (Note 6) Inventory (Note 7):
Purchased Donated
Prepaid expenses and deposits
Total Current Assets
Non Current Assets: Investments with donor restrictions (Note 4):
Mutual funds Rent and other deposits Fixed assets, net of accumulated
depreciation (Note 8)
Total Non Current Assets
Total Assets
LIABILITIES
Current Liabilities: Accrued liabilities Accrued vacation (Note 2H) Refundable advances (Note 9)
Total Current Liabilities
NET ASSETS (Note 2A)
Without Donor Restrictions: Board reserved for:
Building maintenance/ enhancement Designated for investment in property and equipment Designated for inventory
Unreserved, undesignated
Total Without Donor Restrictions
With Donor Restrictions: Cherie Howard Endowment Fund (Note 12C)
With Donor Restrictions in Perpetuity: Laurel Resources Endowment Fund (Note 12C)
Total Net Assets
Total Liabilities and Net Assets
2019
$5,714,412
1,008,119 9,461
493,342
421,878 2,936,092
154 362
10,737,666
81,134 79,185
2,730,442
2,890,761
$13,628,427
$633,657 262,601 717381
1,613,639
100,000 2,730,442 3,357,970 5,735 783
11,924,195
14,993
75 600
12,014,788
$13,628,427
See accompanying notes to financial statements
4
2018
$4,229,659
1,006,988 8,319
370,459
377,649 2,407,752
95,683
8,496,509
92,173 77,866
2,795,230
2,965,269
$11,461,778
$653,848 229,210 411 525
1,294,583
100,000 2,795,230 2,785,401 4,394,391
10,075,022
16,573
75 600
IO 167 195
$11,461,778
FOOD BANK OF CONTRA COSTA AND SOLANO STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2019 WITH SUMMARIZED AMOUNTS FOR THE YEAR ENDED JUNE 30, 2018
Without Donor Restrictions Property & With With Donor
Operating Equipment Donor Restrictions
Account Account Restrictions in Perpetuity
SUPPORT AND REVENUES (Note 2B)
Support Contributions:
Corporate $1,313,931
Organizational 108,216
Individual 7,851,818 Donated food (Note 3) 75,908,236
Grants: Foundation 1,893,347
Government 1,690,723
Total Support 88,766,271
Revenues
Food sales to other agencies 778,401 Agency service fee 188,269
Investment earnings 59,326 $378 $1,801
Unrealized gains 22,251 490 5,212
Rental income (Note 10) 132,768
Miscellaneous 67,354
Total Revenues 1,248,369 868 7,013
Net assets released from restrictions: Satisfaction of usage restrictions 9,461 (2,448) (7,013)
Total Support and Revenues 90,024,101 (1,580)
EXPENSES Program services 85,435,381 $246,535
Management and general expenses 685,393 5,789 Fund raising 1,788,612 13,218
Total Expenses 87,909,386 265,542
CHANGES IN NET ASSETS BEFORE
EQUIPMENT PURCHASE TRANSFER 2,114,715 (265,542) (1,580)
EQUIPMENT PURCHASE TRANSFER (200,754) 200,754
Changes in Net Assets 1,913,961 (64,788) (1,580)
Net Assets at Beginning of Year 7,279,792 2,795,230 16,573 75,600
Net Assets at End of Year $9,193,753 $2,730,442 $14,993 $75,600
See accompanying notes to financial statements
5
Totals
2019 2018
$1,313,931 $1,502,114 108,216 113,734
7,851,818 6,575,831 75,908,236 59,918,618
1,893,347 1,990,589 1,690,723 1,307,814
88,766,271 71,408,700
778,401 738,738
188,269 183,125
61,505 37,536 27,953 270
132,768 131,800
67,354 85,455
1,256,250 1,176,924
90,022,521 72,585,624
85,681,916 69,222,419
691,182 506,622
1,801,830 1,963,840
88,174,928 71,692,881
1,847,593 892,743
1,847,593 892,743
10,167,195 9,274,452
$12,014,788 $10,167,195
FOOD BANK OF CONTRA COSTA AND SOLANO STATEMENT OF FUNCTIONAL ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2019 WITH SUMMARIZED AMOUNTS FOR THE YEAR ENDED JUNE 30, 2018
Pro ram Services Food Food
Pantry/Sonp Senior Food Assistance Other For Farm2 Kitchens Program Program Agencies Children Kids
SUPPORT AND REVENUES Support
Contributions:
Corporate $22,613 $1,000 $50,267 $73,465 $94,460 Organizational Individual 500 11,319 $5,431 250 9,651 1,825 Donated food 23,078 I 77,356
Grants Foundation 119,708 77,054 1,192 12,200 51,274 86,878 Government 219,721 154,698 635,870 13,213 16,270 1,806
Total Support 385,620 244,071 642,493 253,286 150,660 184,969
Revenues Food sales to other agencies 414,423 101,030 Agency service fee 141,616 46,240 Investment earnings (332) (36) (78) (33) (15) (41) Unrealized gains (losses) Rental income Discounts earned and other
Total Revenues 555,707 (36) (78) 147,237 (15) (41)
Total Support and Revenues 941,327 244,035 642,415 400,523 150,645 184,928
FUNCTIONAL EXPENSES Salaries and wages 892,096 190,556 356,887 169,859 85,102 197,128 Donated food 24,004,206 1,751,138 4,230,445 1,953,189 477,467 2,366,610 Food purchases 531,872 151,660 13,996 158,011 116,426 48,450 Payroll taxes 77,226 16,434 30,355 14,762 7,157 17,079 Employee benefits 226,708 46,515 86,398 42,164 19,628 49,070 Other staffing expenses 55,229 6,176 12,726 5,517 2,827 7,428 Warehouse rental 135,158 15,836 33,310 14,138 6,662 18,196 Maintenance and repair 42,933 5,483 I 1,250 4,911 2,315 6,319 Insurance 6,072 1,307 2,377 1,188 561 1,527 Food acquisition expense 716,486 77,798 167,479 69,230 32,612 89,129 Telephone and utilities 30,385 6,420 11,889 8,177 2,750 7,486 Garbage removal 33,031 3,587 7,721 3,189 1,503 4,109 Equipment 41,691 5,516 11,479 4,947 2,332 6,364 Dues and subscriptions 7,626 1,484 2,748 1,352 636 1,731 Fees and service charges 10,227 1,568 3,030 1,416 668 1,820 Printing and publications 1,244 527 521 242 722 55 Postage and shipping 1,060 254 124 565 55 79 Warehouse supplies 89,418 9,208 21,341 8,204 4,443 10,549 Professional services 92,463 19,154 34,310 16,723 8,308 20,132 Transportation 269,189 29,229 62,923 26,011 12,252 33,572 Special events and promotional expense 14,317 1,555 3,347 1,383 652 1,781 Property taxes Office supplies 10,266 1,728 3,109 1,691 748 1,983 Travel and conferences 32,263 2,881 5,099 2,827 900 2,845 Gift certificates distributed 37,075 54,100 Miscellaneous 63,379 1,232
Total Before Depreciation 27,421,620 2,400,114 5,112,864 2,510,928 786,726 2,893,442
Depreciation (Note 8) 106,073 13,813 28,188 12,381 5,836 15,929
Total Functional Expenses 27,527,693 2,413,927 5,141,052 2,523,309 792,562 2,909,371
CHANGE IN NET ASSETS ($26,586,366) ($2,169,892) ($4,498,637) ($2,122,786) ($641,917) ($2,724,443)
See accompanying notes to financial statements
6
Program Services Education
Extra Cal Harvest to Community and Donated Heleings Fresh Home Produce Advocac:l'. Food
SUPPORT AND REVENUES Support
Contributions:
Corporate $2,804 $5,456 Organizational 1,500 Individual $1,100 10,515 Donated food
Grants Foundation 25,095 $465,818 132,704 61,001 Government 158,234 225,974 $192 20,556
Total Support 184,429 691,792 192 168,079 66,457
Revenues Food sales to other agencies
Agency service fee Investment earnings (3) (4) (99) Unrealized gains (losses) Rental income Discounts earned and other 1,062
Total Revenues (3) (4) (99) 1,062
Total Support and Revenues 184,426 691,792 188 167,980 67,519
FUNCTIONAL EXPENSES Salaries and wages 71,873 348,262 22,658 485,076 229,808 Donated food 83,574 346,664 6,095,539 Food purchases 67,005 Payroll taxes 6,018 31,562 1,918 43,072 20,284 Employee benefits 19,744 80,476 5,408 126,922 41,625 Other staffing expenses 60,918 2,221 731 17,027 4,601 Warehouse rental 2,051 4,358 1,865 43,472 2,891 Maintenance and repair 984 3,082 638 15,055 2,045 Insurance 529 2,432 145 3,594 1,614 Food acquisition expense 6,356 9,258 213,495 Telephone and utilities 2,393 11,525 715 17,653 7,140 Garbage removal 293 427 9,842 Equipment 1,095 7,989 640 15,148 6,337 Dues and subscriptions 554 4,866 165 4,081 4,043 Fees and service charges 462 4,172 178 4,309 1,277 Printing and publications 4 96,295 6 5,265 2,426 Postage and shipping 34 3,290 6 164 219 Warehouse supplies 752 45 1,096 46,198 Professional services 7,451 148,091 2,116 51,095 47,680 Transportation 2,388 54 3,478 91,146 78 Special events and promotional expense 127 185 4,266 6,357 Property taxes Office supplies 707 4,066 189 4,794 2,760 Travel and conferences 1,608 24,034 256 8,201 18,121 Gift certificates distributed 1,000 7,840 Miscellaneous 856 9,483
Total Before Depreciation 337,920 777,676 398,742 7,305,414 416,629
Depreciation (Note 8) 2,625 8,617 1,605 37,932 5,718
Total Functional Expenses 340,545 786,293 400,347 7,343,346 422,347
CHANGE IN NET ASSETS {$156,119) ($94,501) ($400,159) ($7,175,366) ($354,828)
( Continued)
7
FOOD BANK OF CONTRA COSTA AND SOLANO STATEMENT OF FUNCTIONAL ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2019 WITH SUMMAR1ZED AMOUNTS FOR THE YEAR ENDED JUNE 30, 2018
Program Services Sueeorting Services Mobile NOR/Cluster Total Management Total Food and Other Program and Supporting Pantry Food Banks NOR/CSFP Services General Fundraising Services
SUPPORT AND REVENUES Support
Contributions:
Corporate $91,767 $341,832 $6,863 $965,236 $972,099 Organizational 1,500 106,716 106,716 Individual 10,540 51,131 7,800,687 7,800,687 Donated food 75,707,802 75,908,236
Grants Foundation 33,515 1,066,439 826,908 826,908 Government $64,806 $179,133 1,690,473 250 250
Total Support 64,806 75,843,624 179,133 79,059,611 6,863 9,699,797 9,706,660
Revenues Food sales to other agencies 262,948 778,401 Agency service fee 413 188,269 Investment earnings (641) 62,124 22 62,146 Unrealized gains (losses) 27,953 27,953 Rental income 132,768 132,768 Discounts earned and other 61,242 62,304 5,050 5,050
Total Revenues 324,603 1,028,333 227,895 22 227,917
Total Support and Revenues 64,806 76,168,227 179,133 80,087,944 234,758 9,699,819 9,934,577
FUNCTIONAL EXPENSES Salaries and wages 19,407 264,767 96,921 3,430,400 407,773 618,429 1,026,202 Donated food 112,744 31,601,635 2,410,175 75,433,386 309 309 Food purchases 14,523 247,363 1,349,306 Payroll taxes 2,146 21,628 7,869 297,510 27,582 49,781 77,363 Employee benefits 6,020 66,427 16,867 833,972 62,333 73,866 136,199 Other staffmg expenses 287 940 544 177,172 1,959 14,999 16,958 Warehouse rental 2,923 1,031 281,891 2,928 6,684 9,612 Maintenance and repair 2,067 729 97,811 2,071 4,730 6,801 Insurance 1,631 576 23,553 8,539 6,835 15,374 Food acquisition expense 4,900 1,386,743 Telephone and utilities 7,217 2,547 116,297 7,230 16,507 23,737 Garbage removal 63,702 Equipment 6,740 878 111,156 2,494 6,098 8,592 Dues and subscriptions 1,671 589 31,546 1,959 16,468 18,427 Fees and service charges 2,732 455 32,314 64,527 17,766 82,293 Printing and publications 326 785 108,418 624,845 624,845 Postage and shipping 333 24 6,207 306 17,984 18,290 Warehouse supplies 541 165 191,960 Professional services 1,435 22,127 8,247 479,332 53,972 241,001 294,973 Transportation 3,555 7,497 541,372 Special events and promotional expense 33,970 24 39,596 39,620 Property taxes 15,250 15,250 Office supplies 2,654 722 35,417 2,210 8,317 10,527 Travel and conferences 89 8,507 1,536 109,167 8,621 6,504 15,125 Gift certificates distributed 3,515 103,530 17,893 17,893 Miscellaneous 30,737 53,562 159,249 15,615 15,615
Total Before Depreciation 161,073 32,308,176 2,604,057 85,435,381 685,393 1,788,612 2,474,005
Depreciation (Note 8) 5,779 2,039 246,535 5,789 13,218 19,007
Total Functional Expenses 161,073 32,313,955 2,606,096 85,681,916 691,182 1,801,830 2,493,012
CHANGE IN NET ASSETS ($96,267) $43,854,272 ($2,426,963) {$5,593,972) {$456,424) $7,897,989 $7,441,565
8
Totals
2019 2018
$1,313,931 $1,502,114 108,216 113,734
7,851,818 6,575,831 75,908,236 59,918,618
1,893,347 1,990,589 1,690,723 1,307,814
88,766,271 71,408,700
778,401 738,738
188,269 183,125 61,505 37,536 27,953 270
132,768 131,800 67,354 85,455
1,256,250 1,176,924
90,022,521 72,585,624
4,456,602 4,013,834 75,433,695 59,911,782
1,349,306 1,239,044 374,873 345,141 970,171 888,829 194,130 153,216 291,503 283,687 104,612 85,815 38,927 36,620
1,386,743 1,336,491 140,034 150,373 63,702 55,794
119,748 129,653 49,973 30,257
114,607 42,714 733,263 833,078
24,497 27,804 191,960 173,711 774,305 687,639 541,372 481,478
73,590 61,518 15,250 14,951 45,944 57,617
124,292 104,555 121,423 116,673 174,864 115,281
87,909,386 71,377,555
265,542 315,326
88,174,928 71,692,881
$1,847,593 $892,743
9
FOOD BANK OF CONTRA COSTA AND SOLANO STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2019 WITH COMPARATIVE AMOUNTS FOR THE YEAR ENDED JUNE 30, 2018
CASH FLOWS FROM OPERA TING ACTIVITIES
Changes in net assets
Adjustments to reconcile to net cash provided by operating activities:
Depreciation Loss on disposal of property and equipment (Increase) in accounts receivables (Increase) in inventory (Increase) decrease in prepaid expenses (Increase) in rent and other deposits (Decrease) increase in accrued liabilities Increase in accrued vacation Increase (decrease) in refundable advances
Total Adjustments
Net Cash Provided by Operating Activities
CASH FLOWS PROVIDED (USED) BY INVESTING ACTIVITIES:
Purchase of investments Proceeds from sale of investments Purchase of property and equipment
Net Cash Provided (Used) by Investing Activities
NET INCREASE IN CASH AND CASH EQUIVALENTS
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
Supplemental disclosure of cash flow information:
No taxes or interest were paid by the Organization during 2019 or 2018.
Donation of food - Noncash activity
See accompanying notes to financial statements
10
2019
$1,847,593
265,542 641
(122,883) (572,569)
(58,679) (1,319)
(20,191) 33,391
305,856
070,211)
1,677,382
(75,779) 84,546
(201,396)
(192,629)
1,484,753
4,229,659
$5,714,412
$75,908,236
2018
$892,743
315,326
(66,609) (78,977) 34,335
(79) 73,990
186 (462,470)
(184,298)
708,445
(316,375) 315,239 (26,505)
(27,641)
680,804
3,548,855
$4,229,659
$59,918,618
FOOD BANK OF CONTRA COSTA AND SOLANO NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
I NOTE 1- REPORTING ENTITY
A. Organization
The Food Bank of Contra Costa and Solano (Food Bank) was incorporated on July 28, 1975. The Food Bank was established in order to efficiently gather, warehouse and distribute food products to Contra Costa charities meeting emergency food needs. In November 1996 the Food Bank took over responsibility for providing food to Solano County charities. In furtherance of its purpose, the Food Bank provides food to supplemental feeding programs, promotes awareness of hunger, food waste and the value of proper nutrition. The Food Bank is governed by a Board of Directors comprising sixteen members. The Food Bank receives funding from private and public sources.
B. Programs
The Food Bank's programs include:
Pantry/Soup Kitchens Program - this program provides food to local non-profit agencies that provide food baskets and hot meals to people in need in Contra Costa and Solano Counties.
School Pantry Program - this program provides shelf-stable food items to high schools and middle schools where 50% or more of the students receive free or reduced price lunches.
Senior Food Program - needy senior citizens in Contra Costa and Solano Counties are provided with a nutritious bag of food on a twice a month basis under this program.
Food Assistance Program - this U.S. Department of Agriculture program funds the distribution of commodities to people in need in Contra Costa and Solano Counties.
Other Agencies Program - these include local charitable organizations.
Food for Children Program - this program provides over 25 pounds of groceries every month to nearly nine hundred children from low-income families in Contra Costa County and Solano Counties.
Farm 2 Kids Program - this program provides fresh fruits and vegetables to children of low-income families through partnerships with after school programs.
Extra Helpings Program - this program serves low income individuals in Contra Costa County who are chronically ill and in case management. Funding for this program comes from the Ryan White Care Act.
Cal Fresh Program - Food Bank staff and volunteers help clients determine if they are eligible and assist in applying for Cal Fresh (formally known as Food Stamps.) This helps increase the number of people who are eligible receive benefits as well as debunk common myths surrounding the program.
Harvest to Home - Fresh produce and bread are distributed to low-income housing complexes twice a month.
11
FOOD BANK OF CONTRA COSTA AND SOLANO NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
I NOTE 1 - REPORTING ENTITY (Continued) I Community Produce Program - this program distributes fresh fruits and vegetables to low-income neighborhoods throughout Contra Costa and Solano Counties. Two refrigerated trucks serve as mobile distribution vehicles and together make 100 stops per month.
Education and Advocacy Program - The Food Bank continues its efforts to educate the public about the reasons hunger exists in our community. By educating the community and urging them to take steps to address hunger, the Food Bank hopes to improve the circumstances of people in need. The Food Bank is involved in Nutrition Education and Advocacy.
Mobile Food Pantry Program -The Mobile Food Pharmacy is a mobile pantry with healthy food at Solano County Public Health clinics. Public health patients who are food insecure are prescribed healthy food boxes to help reduce instances of diet-related diseases. They are given a box of shelfstable items as well as fresh produce.
NOR/Cluster Program and Other Food Banks - The Food Bank of Contra Costa and Solano has the responsibility for distributing food to collaborating food banks in Nmihern California and Nevada through the "cluster" distribution system encouraged by our national network. In addition, Food Bank shares food with local food banks in the Bay Area/Northern California area in order to increase the amount and variety of food available to the Food Bank and other partners.
NORICSFP Program - Retail grocery stores in Contra Costa and Solano Counties participate in the Grocery Recovery Program, donating millions of pounds of food each year. The Food Bank's Food Resource Developer develops and maintains the Food Bank's relationships with donor groceries, ensuring that donations are optimized through coordinated scheduling and regular communication. Donated food is collected and loaded onto the Food Bank's refrigerated trucks and transported to the warehouse in Concord, where it is weighted, logged, and checked for food safety by trained Food Bank staff and volunteers. Rescued food is then distributed through the Food Bank's 180 partner agencies. Some of the pick-ups are done directly by Food Bank partner agencies. Agencies report all pounds collected by category through an online portal called Meal Connect.
I NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (GAAP). The financial statement presentation follows the recommendations of the Financial Accounting Standards Board (F ASB) in the Accounting Standards Codification (ASC), No. 958, Financial Statements a/Not-for-Profit Organizations.
The Food Bank reports information regarding its financial position and activities according to two classes of net assets:
Net Assets Without Donor Restrictions - Net assets available for use in general operations that are not subject to or are no longer subject to donor-imposed restrictions. The governing board has designated, from net assets without donor restrictions, reserves for building maintenance/enhancement, property and equipment, and inventory.
12
FOOD BANK OF CONTRA COSTA AND SOLANO NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
I NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) I
Net Assets With Donor Restrictions - Net assets whose use is limited by donor-imposed time and/or purpose 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.
Revenues are reported as increases in net assets without donor restriction unless use of the related assets is limited by donor-imposed restrictions. Expenses are rep01ted as decreases in net assets without donor restrictions. Gains and losses on investments and other assets or liabilities are reported as increases or decreases in net assets without donor restrictions on the net assets are reported as reclassifications between the applicable classes of net assets.
B. Support and Revenues
The Food Bank relies on contracts with governmental units, grants from foundations, contributions from individuals and corporations, and donations of food. Public contributions are recorded upon receipt. All contributions and grants are considered to be available for unrestricted use unless specifically restricted by the donor. Amounts received that are designated for future periods or restricted by the donor for specific purposes are reported as support and revenues with donor restrictions. When a restriction expires, restricted net assets are reclassified to net assets without donor restriction and reported in the statement of activities as net assets released from restrictions.
C. Cash and Cash Equivalents
The Food Bank considers all highly liquid instruments purchased with a maturity of three months or less to be cash and cash equivalents. At June 30, the Food Bank's cash and cash equivalents were held in three financial institutions and consisted of the following:
D. Investments
Cash in bank Money market
Total
2019
$3,052,859 2,661,553
$5,714,412
2018
$1,657,212 2,572,447
$4,229,659
Investments are measured at fair value on the statements of financial position. Unless donor or law restricts the income or loss, investment income or loss (including realized and unrealized gains and losses on investments, interest, and dividends) is included in the increase in net assets without donor restrictions.
E. Co11ce11tratio11 of Credit Risk
The Federal Deposit Insurance Corporation (FDIC) insures account balances at each insured institution up to $250,000. At various times during the year, cash at these institutions exceeded federally insured limits, however, management believes the Food Bank is not exposed to any significant credit risk related to cash.
13
FOOD BANK OF CONTRA COSTA AND SOLANO NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
I NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) I F. Accounts Receivable
Receivables are recorded net of an allowance for expected losses. The allowance is recorded based on an estimate of the expected collectability of the amounts. Management considers the receivables recorded at June 30, 2019 to be fully collectible.
G. Inventory
Inventory consists of purchased and donated food. Purchased food is recorded at cost, which is lower than market. Donated food is valued at $1.52 per pound as determined by Feeding America. Food Bank uses the first-in first-out (FIFO) basis of inventory valuation
H. Accrued Vacation
Accrued vacation is comprised of unused vacation leave and certain compensated time off, which are accrued as earned. The liability is determined monthly. Management has determined that all balances are classified as current.
I. Functional Allocation of Expenses
The costs of providing the various programs and activities have been summarized on a functional basis in the statement of activities. Expenses are charged directly to program or management and general categories based on specific identification. Those expenses which cannot be specifically identified by function type have been allocated to functions based upon management's best estimate of usage. Personnel costs, including salaries and fringe benefits, are allocated based on the estimated percentage of time each position works in each program or administration. Other costs are allocated using the pounds distributed and/or the full-time equivalent ratio for personnel in each program.
J. Advertising Costs
Advertising costs, if any, are expensed as incurred.
K. Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that effect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
L. Fair Value Measurements
The Food Bank reports ce1iain assets and liabilities at fair value in the financial statements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Accounting standards set a framework for measuring fair value using a three tier hierarchy based on observable and nonobservable inputs. Observable inputs consist of data obtained from independent sources. Nonobservable inputs reflect industry assumptions. These two types of inputs are used to create the fair value hierarchy, giving preference to observable inputs.
14
FOOD BANK OF CONTRA COSTA AND SOLANO NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
I NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) I The three-tier hierarchy categorizes the inputs as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that can be accessed at the measurement date.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, and market-corroborated inputs.
Level 3: Unobservable inputs for the asset or liability. In these situations, the Food Bank develops inputs using the best information available in the circumstances.
M. Prior Year Totals
The financial statements include certain prior year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the Food Bank's financial statements for the year ended June 30, 2018, from which the summarized information was derived.
N. Income Tax Status
The Food Bank is exempt from income tax under Section 501(c)(3) of U.S. the Internal Revenue Code. Accordingly, no provision for income taxes has been provided in these financial statements. In addition, the Food Bank qualifies for the charitable contribution deduction under Section 170(b)(l)(a) and has been classified as an organization that is not a private foundation under Section 509(a)(l). Unrelated business income, if any, may be subject to income tax. The Food Bank paid no taxes on unrelated business income in the years ended June 30, 2019 or 2018.
Generally accepted accounting principles require the recognition, measurement, classification, and disclosure in the financial statements of uncertain tax positions taken or expected to be taken in the organization's tax returns. Management has determined that the Food Bank does not have any uncertain tax positions and associated unrecognized benefits that materially impact the financial statements or related disclosures. Since tax matters are subject to some degree of uncertainty, there can be no assurance that the Food Bank's tax returns will not be challenged by the taxing authorities and that the Food Bank will not be subject to additional tax, penalties, and interest as a result of such challenge. Generally, the Food Bank's tax returns remain open for federal income tax examination for three years from the date of filing.
15
FOOD BANK OF CONTRA COSTA AND SOLANO NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
I NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) I 0. New Accounting Pronouncement
During the year ended June 30, 2019, the Food Bank adopted the requirements of the Financial Accounting Standards Board's (FASB) Accounting Standards Update No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities (ASU 2016-14). The Update addresses the complexity and understandability of net asset classification, deficiencies in information about liquidity and availability of resources, and the lack of consistency in the type of information provided about expenses and investment return between not-for-profit entities. A key change required by ASU 2016-14 is the net asset classes used in these financial statements. Amounts previously reported as unrestricted net assets are now reported as net assets without donor restrictions and amounts previously reported as temporarily restricted net assets and permanently restricted net assets are now reported as net assets with donor restrictions. A footnote on liquidity has also been added (see Note 15).
P. Subsequent Events
The Food Bank evaluated subsequent events for recognition and disclosure through September 20, 2019, the date which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2019 that requires recognition or disclosure in such financial statements.
I NOTE 3 - IN-KIND DONATIONS I The Food Bank receives substantial donations of food (which includes personal hygiene items and other staples), equipment and volunteer services. Contributions of food and equipment are recorded at their fair values in the period received (see Note 7).
The Food Bank recognizes the fair value of donated services if the services meet the recognition criteria which include a) requiring specialized skills; b) provided by someone with those skills; and c) would have to be purchased if they were not donated. During the years ended June 30, 2019 and 2018, the value of contributed services meeting the requirements for recognition in the financial statements was not material and has not been recorded.
In addition, many individuals volunteer their time and perfonn a variety of services for the Food Bank. These services do not meet the recognition criteria. These individuals contributed 108,359 hours of their time in fiscal 2019 and 118,188 hours in fiscal 2018 for the Contra Costa and Solano programs combined.
16
FOOD BANK OF CONTRA COSTA AND SOLANO NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
I NOTE 4 - CASH AND INVESTMENTS
Cash and investments consist of the following as of June 30:
2019 2018
Investments Without donor restrictions:
Certificates of deposit $1,008,119 $1,006,988 Mutual funds 9,461 8,319
Total investments 1,017,580 1,015,307
With donor restrictions:
Mutual funds 81,134 92,173
Total investments 81,134 92,173
Total investments 1,098,714 1,107,480
Cash and cash equivalents 5,714,412 4,229,659
Total cash and investments $6,813,126 $5,337,139
Investments in money market, mutual funds, and certificates of deposit are reported at their fair market values in the statement of financial position. All investments are level 1 identical assets (see Note 2L). There are no level 2 or level 3 assets as of June 30, 2019 and 2018, respectively. Unrealized gains and losses are included in the statement of activities.
Investments in money market accounts are insured up to $5,000,000 of which $500,000 is insured by the Securities Investor Protection Corporation and $4,500,000 is insured by Aetna Insurance Company.
At June 30, 2019, investments with donor restrictions include $14,993 in mutual funds for the Cherie Howard Endowment. The Cherie Howard Endowment Fund requires the principal and income be used for Food Bank operations equally over a twenty-five year period.
At June 30, 2019, investments with donor restrictions in perpetuity consist of$75,600 in mutual funds for the Laurel Resources Endowment Fund. The Laurel Resources Endowment Fund requires the principal be invested in perpetuity, and the income be used for Food Bank's operations.
I NOTE 5 - LINE OF CREDIT l The Food Bank has a $500,000 line of credit with a bank. The line of credit carries a floating interest rate equal to the greater of the Index rate plus 0.50% or the Floor rate of 5.00%. The Index Rate is the Prime Rate set by the Bank. There were no draws or repayments made throughout the year, and no outstanding balance against the line of credit as of June 30, 2019 or 2018.
17
FOOD BANK OF CONTRA COSTA AND SOLANO NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
I NOTE 6 -ACCOUNTS RECEIVABLE I Accounts receivable comprise the following at June 30:
Granting Agency 2019
City of Concord $4,362
Contra Costa County 20,681
Solano County 26,949
Contra Costa County Cal Fresh 22,433
Contra Costa County Health Services 22,139
Local Charitable Agencies 85,359
The Emergency Food Assistance Program 211,726
Department of Health Services 43,368
Food Bank of Yolo County 6,186
Napa Valley Food Bank 11,043
North State Food Bank
Placer Food Bank 17,329
Sacramento Food Bank 8,077
Other 13,690
Total accounts receivable $493,342
I NOTE 7 - INVENTORY I
2018
$4,105
20,676
20,466
23,252
29,040
139,001
32,070
13,531
13,904
570
17,104
7,314
49,426
$370,459
Inventory comprises purchased and donated food. Purchased food is recorded at cost, which is lower than market, using the first-in first-out (FIFO) basis of inventory valuation. Purchases are made with the Food Bank's funds that are without donor restrictions and with private and government grant funds awarded specifically for that purpose.
Purchased inventory includes the following at June 30:
Food purchased with operating funds
Food purchased with grant funds
Total purchased inventory
18
2019
$362,782
59,096
$421,878
2018
$341,822
35,827
$377,649
FOOD BANK OF CONTRA COSTA AND SOLANO NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
J NOTE 7 - INVENTORY (Continued) ! Donated food was valued at $1.70 per pound as determined by Feeding America, the national food bank network, for financial statement purposes, and includes the following at June 30:
Donated food
Donated gift ce1ti:ficates
Total donated inventory
2019
$2,900,295
35,797
$2,936,092
2018
$2,390,849
16,903
$2,407,752
The NOR/Cluster Program pounds in inventory at June 30, 2019 and 2018 were 175,272 pounds and 75,123 pounds, respectively, valued at $266,413 and $126,207, respectively.
Food distribution activity, in pounds, was as follows:
Food held for distribution, beginning of year
Food Received
Food Distributed
Unusable Product
Food held for distribution, end of year
Donated Pounds
1,418,511
44,648,160
(44,001,880)
(480,927)
1,583,864
19
2019 Purchased
Pounds
556,903
1,900,517
(1,934,716)
522,704
Total 2018
1,975,414 1,924,006
46,548,677 37,177,972
(45,936,596) (36,601,064)
(480,927) (525,500)
2,106,568 1,975,414
FOOD BANK OF CONTRA COSTA AND SOLANO NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
J NOTE 8 - FIXED ASSETS I Fixed assets balances and activity are summarized below for the year ended June 30, 2019:
Non-depreciable assets:
Land
Construction in Progress
Total non-depreciable assets
Depreciable assets:
Building and improvement Leasehold improvement Furniture and equipment Computer hardware Computer software Warehouse equipment and vehicles
Total depreciable assets
Less accumulated depreciation
Total net depreciable assets
Total fixed assets, net
Balance Beginning
ofYear
$500,237
500,237
4,232,876 7,195
1,753,936 61,238 73,017
1,669,324
7,797,586
{5,502,593)
2,294,993
$2,795,230
Balance End
Additions Retirements ofYear
$500,237
$39,533 39,533
39,533 539,770
20,188 4,253,064 7,195
70,913 ($12,096) 1,812,753 61,238
37,144 110,161 33,618 {19,0662 1,683,876
161,863 {31,1622 7,928,287
(265,542) 30,520 {5,737,615)
{103,6792 {6422 2,190,672
($64,1462 ($6422 $2,730,442
Purchased furniture and equipment are stated at cost. Furniture and equipment contributed to the Food Bank are stated at estimated fair value at the time of contribution. Such donations are reported as support without donor restrictions unless the donor has restricted the donated asset for a specific purpose. Assets donated with explicit restrictions regarding their use and contributions of cash that must be used to acquire furniture and equipment are reported as support with donor restrictions. Absent donor stipulations regarding how long those donated assets must be maintained, the Food Bank repmis expirations of donor restrictions when the donated or acquired assets are placed in service as instructed by the donor. The Food Bank reclassifies net assets without donor restrictions to net assets with donor restrictions at that time. Expenditures that materially increase the value or life of a fixed asset are capitalized and depreciated over the remaining useful life of the asset.
All fixed asset purchases above $5,000 are capitalized. Depreciation is computed by the straightline method over the estimated useful lives of the assets (ranging from three to thhiy years). Depreciation is charged as an expense against operations, and accumulated depreciation is reported on the statement of financial position.
Fully depreciated assets in use at June 30, 2019 and 2018 amounted to $2,961,698 and $3,012,365, respectively, and are included in the furniture and equipment and accumulated depreciation accounts.
20
FOOD BANK OF CONTRA COSTA AND SOLANO NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
!NOTE 9 - REFUNDABLE ADVANCES I The Food Bank obtains cost-reimbursement contracts from various sources. Under the terms of these agreements, funds are advanced to finance program expenditures and are conditional on performance of the agreement. Refundable advances constitute the excess of advances over related program expenditures and comprise the following at June 30:
FEMA Grant Chronicle - Season of Sharing Gift Certificates Feeding America Pass Thru Grants - Campfire Other
Total Refundable Advances
!NOTE 10-RENTALINCOME I
2019
$468,961 35,787
133,399 79,234
$717,381
2018
$30,901 274,101
16,892 78,051
11,580
$411,525
The Food Bank rents one of its buildings at 4000 Nelson Avenue in Concord to a company under a noncancelable lease at a monthly base rent of $10,125 at June 30, 2019, that adjusts at the expiration of each 12 month period by 3%. The original lease was effective October 1, 2015 through September 30, 2018, and provided the tenant an option to extend the lease for another 5 years. The tenant exercised its option to extend until September 30, 2021. During fiscal years ending June 30, 2019 and 2018, the Food Bank received $132,768 and $131,800, respectively, from this lease.
Future rental income to be received under this lease as of June 30, 2019 is as follows:
Fiscal Year Future Rental Ended Income
2020 $135,756
2021 139,830
2022 35,214 $310,800
21
FOOD BANK OF CONTRA COSTA AND SOLANO NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
!NOTE 11- INSURANCE COVERAGE I The following insurance was in force at June 30, 2019:
Coverage Commercial:
General Liability
Personal Prope1iy
Real Prope1iy
Automobile
Crime
Cyber Liability
Electronic Equipment
Special Floater
Earthquake
Directors & Officers
Employment Practice
Umbrella
Worker's Compensation
!NOTE 12 - ENDOWMENTS I
Limit
$2,000,000
1,166,880
5,709,959
1,000,000
50,000-200,000
1,000,000
478,500
346,179
6,206,534
1,000,000
1,000,000
3,000,000
1,000,000 (per occurrence)
Deductible
$0
6,000
6,000
500-1,000
1,000
10,000
1,000
1,000
50,000
0-5,000
10,000
10,000
0
Food Bank's endowments consist of the Laurel Resource Endowment Fund and the Cherie Howard Endowment Fund, which were established to generate income, as restricted by the donors. The Laurel Resources Endowment Fund requires the principal be invested in perpetuity, and the income be used for Food Bank's operations. The Cherie Howard Endowment Fund requires the principal and income be used for Food Bank operations equally over a twenty-five year period beginning January 1, 2004. As required by Generally Accepted Accounting Principles, net assets associated with endowment funds, including funds designated by the Board of Directors to function as endowments, are classified and reported based on the existence or absence of donor-imposed restrictions.
A. Interpretation of Relevant Law
The Food Bank is subject to the Uniform Prudent Management of Institutional Funds Act (UPMIFA). The Board of Directors of the Food Bank has interpreted UPMIFA as not requiring the preservation of the fair value of the original gift amount contributed to an endowment fund, unless a donor stipulates the contrary. As a result of this interpretation, the Food Bank retains in perpetuity (a) the original value of initial and subsequent gift amounts donated to the Endowment and (b) any accumulations to the Endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added. Donor-restricted amounts not retained in perpetuity are subject to appropriation for expenditure by the Food Bank in a manner consistent with the standard of prudence prescribed by UPMIF A. The Food Bank considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds:
22
FOOD BANK OF CONTRA COSTA AND SOLANO NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
!NOTE 12 - ENDOWMENTS (Continued) j
• The duration and preservation of the endowment fund • The purposes of the organization and the endowment fund • General economic conditions • The possible effect of inflation and deflation • The expected total return from income and the appreciation of investments • Other resources of the Food Bank • The investment policies of the Food Bank
B. Return Objective and Risk Parameters
The Food Bank has adopted an investment policy with the primary investment objective to attempt to maximize total return, while assuming an appropriate level of risk given the nature of the funds under management. The goal is to produce a growing level of income and principal to ensure that the funding for the activities supported by the endowment can be maintained in the face of inflation.
C. Strategies Employed for Achieving Objectives
Endowment assets are invested in mutual funds. Investment risk is measured in terms of the total endowment fund; investment assets and allocation between asset classes and strategies are managed to not expose the fund to unacceptable levels of risk.
Changes in Endowment Net Assets for the fiscal year ended June 30, 2019 are as follows:
With Donor Restrictions
Cherie Howard Endowment
Beginning Balance at July 1, 2018 $16,573
Dividends and realized gains 378
Unrealized gains and adjustments 490
Appropriation of endowment for expenditure {2,4482
Endowment net assets at June 30, 2019 $14,993
23
With Donor Restrictions in Pereetuitl'.
Laurel Resources Endowment
$75,600
1,801
5,212
(7,0132
$75,600
Without Donor
Restrictions
$2,262,128
49,985
83,485
9,461
$2,405,059
Total
$2,354,301
52,164
89,187
$2,495,652
FOOD BANK OF CONTRA COSTA AND SOLANO NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
INOTE 13 - COMMITMENTS AND CONTINGENT LIABILITIES I A. Lease Commitments
On July 29, 2010, the Food Bank entered into a lease for its Solano County food distribution center. On May 1, 2012, the Food Bank expanded its Solano County food distribution center. During fiscal year 2015-2016, the lease agreement was extended until December 31, 2021.
As of June 30, 2019, the Food Bank has entered into noncancelable operating lease agreements for the rental of office equipment and two vehicles. The lease expense under all leases was $386,910 for the year ended June 30, 2019.
Minimum lease payments, on an annual basis are as follows:
June 30 Amount
2020 $417,962 2021 372,059 2022 219,964 2023 59,632 2024 22,468
$1,092,086
B. Contingent Grant Liabilities
The Food Bank's federal and State grant programs have been audited by its auditors in accordance with the provisions of the Federal Single Audit Act, as amended, and applicable State requirements. No cost disallowances were proposed as a result of these audits; however, the programs are still subject to further audit by the grantors. If further audits are performed, the Food Bank expects any disallowances that might result to be immaterial.
INOTE 14-RETIREMENT PLAN I The Food Bank maintains a 403(b) defined contribution retirement plan for all qualified employees. The Food Bank matches up to 3% of qualified compensation for the benefit of qualified employees. For the fiscal years ended June 30, 2019 and 2018, employer contributions to the plan were $94,388 and $91,955, respectively.
24
FOOD BANK OF CONTRA COSTA AND SOLANO NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
!NOTE 15 - LIQUIDITY AND AVAILABILITY OF RESOURCES I Financial assets available for general expenditure, that is, without donor or other restrictions limiting their use, within one year of the statement of financial position date, consisted of the following at June 30, 2019:
Total current financial assets:
Cash and cash equivalents
Certificates of deposit
Mutual funds
Accounts receivable
Total current financial assets
Contractual or donor-imposed restrictions:
Cherie Howard endowment
Laurel Resources endowment
Total contractual or donor-imposed restrictions
Board designation for building and maintenance reserve
Financial Assets Available to Meet Cash Needs
for Expenditures Within One Year
25
$5,714,412
1,008,119
9,461
493,342
7,225,334
(14,993)
(75,600)
(90,593)
(100,000)
$7,034,741
This Page Left Intentionally Blank
SUPPLEMENTAL INFORMATION
N 00
$9,000,000
$8,000,000
$7,000,000
$6,000,000 -
$5,000,000
$4,000,000
$3 ,000,000
$2,000,000
$1,000,000 n tTI $0 IL ~ 20 10 201 I
Fiscal Corporate Organizational Year Contributions Contributions
20 10 $1 ,054,038 $179,328 2011 1,075,984 152,137 20 12 940,693 166,956 20 13 1,396,35 1 11 9,43 1 20 14 1,193,938 114,97 1 2015 1,055 ,823 118,949 2016 1,262,270 116,552 2017 1,359,237 117,997 2018 1,502,114 113,734 2019 1,3 13,93 1 108,216
[i:
FOOD BANK OF CONTRA COSTA AND SOLANO SOURCES OF SUPPORT AND REVENUES
(EXCLUSIVE OF DONATED FOOD) LAST TEN YEARS
,___
~ ll n: L It ~ 20 12 2013 2014 2015 20 16 2017
Food Sales Individual Foundation Government to Other Agency
Contributions Grants Grants Agencies Service Fee
$4,084,341 $1 ,207,338 $1,189,602 $630,327 $ 114,860
4,012,778 1,424,323 85 1,239 778,221 199,747 5,540,674 983,481 882,400 674,063 182,826
5,064,337 1,351,176 847,702 719,211 213,414 5,956,734 1,474,1 16 847,415 686,523 212,553 6,126,553 1,127,282 959,420 801,990 228,407 5,922,829 1,449,701 734,820 877,598 215,716 6,08 1,946 1,449,373 1,11 6,184 701,482 164, 180 6,575,831 1,990,589 1,307,814 738,738 183,125
7,851 ,818 1,893,347 1,690,723 778,401 188,269
Source: Food Bank of Contra Costa and Solano Audited Financial Statements.
• Corporate Contributions
• Organizational Contributions
• IndividuaJ Contributions
• Foundation Grants
• Government Grants
• Food Sales to Other Agencies
C Agency Service Fee
• Other Revenue
- -
L, ln 2018 2019
Other Revenue Total
$272,614 $8,732,448 269,493 8,763,922 247,073 9,618,166 310,30 1 10,02 1,923 567,268 11 ,053,518 246,047 10,664,471 120,970 10,700,456 22 1,908 IJ ,212,307 255,061 12,667,006 289,580 14,114,285
Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Management and General
1%
Program Services
$33,538,078 37,117,085 46,490,063 48,145,918 56,492,588 60,643,262 59,468,587 65,021 ,05 1 69,222,419 85,681,916
FOOD BANK OF CONTRA COST A AND SOLANO FUNCTIONAL EXPENSES BY EXPENSE CATEGORY
LAST TEN YEARS
2019
Fund Raising 2%
Program Services
97%
Management and
• Program Se1vices
Iii Management and General
• Fund Raising
Total Functional
General Fund Raising Exeenses $393,316 $1 ,269,728 $35,201 ,122
448,785 1,293,598 38,859,468 442,837 1,411,674 48,344,574 469,726 1,601,155 50,2 16,799 493,087 1,837,568 58,823,243 500,048 2, 178,075 63,321,385 446, 183 1,932,993 61,847,763 510,420 1,982,642 67,514, 113 506,622 1,963,840 71,692,881 691 , 182 1,80 1,830 88, 174,928
Source: ·Food Bank of Contra Costa and Solano Audited Financial Statements.
29
\.;.}
0
Feeding America
Pounds 133,604 Percentages 0.29%
• Purchased Food 2.48%
• Federal Commodities 7.90%
Local Food Donors
39,637,267 85.15%
Source: Food Bank of Contra Costa and Solano
FOOD BANK OF CONTRA COSTA AND SOLANO SOURCES OF FOOD
(IN POUNDS) YEAR ENDED JUNE 30, 2019
• Fund Foods 1.60%
• Feeding America 0.29%
Federal Commodities Food Drives
3,678,569 1,198,720 7.90% 2.58%
Purchased Food
1,153,925 2.48%
• Feeding America
• Local Food Donors
• Federal Co=odities
• Food Drives
• Purchased Food
• Fund Foods
Fund Foods Total 746,592 46,548,677 1.60% 100.00%
w
20,000,000
18.000,000
16,000,000
14,000,000
12,000,000
10.000.000
8,000,000
6,000.000
4.000,000
2,000.000 _, - -0
FOOD BANK OF CONTRA COSTA AND SOLANO FOOD DISTRIBUTION
BYPROGRAM
IN POUNDS
YEAR ENDED JUNE 30, 2019
~ .., - • ,., .. o'V❖ ~~ <.~ ~ -v..~ 0~
~ <15 ._..;:.Q. ~o o~
~o c," <"'-"'
,r;,.,$
~,o~ 'vu
.... ~❖ .,,_1$
v'~ -~c,
~❖v~ .le-
• ❖q ,,c:-"-'
x.,-f} .§-§> "-"'< xo"'l:,
<>' o,s'
4;>~~ '\,
'X~$-
.,$-❖
,q__<..()~
'b..:::,,Ve,
0..$-f!.J
"'-"~ .:i.~''
~.., ..... '-?.'-0 ""' <i."'"'
""' ❖~~ xo"'l:,
·>-"
v,/' <,."'"'l::,
o,<
,x e,">'<
~o<iS
~,f-~ '?~❖,c
Pantry/Soup School Kitchen Pantry
Pounds 14,828,406 82,591 Percentage 31.35% 0.17%
Source: Food Bank of Contra Costa and Solano
Senior Food
Program 1,238,439
2.62%
.. ~ l:,~
~,_§5
Extra Helein~s 106,588 0.23%
<i.<" j-"-4,
,$'
cP<S
Food Assistance Food For Other Pro
$3.50
$3.00
$2.50
$2.00 .. .- ,. -$1.50
,,. r"
$1.00
$0.50
>---= f-- - f--w $0.00 N C: ~ E V,
" c l" a,
-5 C:
"' a, ·a. ~ 0.. e " 0 0.. I a. 0 .,, :, ,= l" 0 0
" 0 x (/) (/)
~ LL w 5 c
"' ·2:
0.. " (/)
Pantry/Soup School Senior Food Extra Year Kitchen Pantry Pro
