Financials

The following information may help the reader better understand the content of these documents.

Entities

The audited financial statements are prepared on a consolidated basis. The statements include the accounts of YWCA Seattle | King | Snohomish (“YWCA”) and its controlled subsidiary organizations.

The controlled organizations are described in detail in footnote 2 of the audit. They include other 501(c)(3) organizations with common control, various single member Limited Liability Companies (LLC), and several tax credit entities in which YWCA is the managing member.

The YWCA Form 990 that is posted includes only the activity of YWCA and the single member LLC’s.

Timing

YWCA Seattle | King | Snohomish operates on a calendar year for its fiscal year. The annual financial statement audit is typically issued by mid-June. The Form 990 is filed later in the year, usually by late August.

Non-profit accounting

There are several things to keep in mind when reviewing financial statements of a non-profit entity.

• Accounting for contributions/restricted gifts. Generally Accepted Accounting Principles (GAAP) require reporting for pledges in the year the pledge is received, while the payment and use of those funds may be spread over several years. There also may be timing restrictions on some gifts, so they are recognized as income in one year and spent the following year. These accounting requirements can lead to differences in the year the revenue is reported and when the related expenses are incurred.
• Operating versus Non-Operating items. The budget of YWCA is prepared on an operating basis each year and actual results against budget are reported to the board on a quarterly basis. The Statement of Activities in the audit also separates income and expenses between operating and non-operating.

Activities in the audit also separates income and expenses between operating and non-operating.

All activities are considered operating except for the following:

• Endowment Gifts. Endowment gifts, which have permanent use restrictions, are considered non-operating as only the investment income is used for operations. 
• Unrealized investment gains/losses. Unrealized gains or losses on investment that are above the annual budgeted endowment payout are considered non-operation since they are not available to use for operations. 
• Capital Campaigns. Revenue for campaigns is recorded in the year it is pledged with payments often expected to be received over several years. The amounts paid for the capital portion will not show up as expenses but are capitalized and show up under buildings and equipment in the asset section of the balance sheet.
• Depreciation. Buildings and equipment are depreciated over the useful lives of the assets. Depreciation is an expense of the organization. The source of funds to purchase most building and equipment comes from capital campaigns or organization reserves. Therefore, operating income is not needed to cover the cost of the depreciation for buildings and equipment.

If you have any questions about these documents, please contact our Chief Operations Officer.
 

Additional Documents