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Foreign Non Profit Corporation
THE VETERANS SUPPORT ORGANIZATION, INC.
Filing Information
Document Number F05000006670
FEI/EIN Number 050516084
Date Filed 11/14/2005
State RI
Status ACTIVE
Principal Address
8358 WEST OAKLAWN PARK BOULEVARD
SUITE 302
SUNRISE FL 33351
Changed 01/14/2011
Mailing Address
1464 WARWICK AVENUE
WARWICK RI 02888
Changed 01/14/2011
Registered Agent Name & Address
HOUTEN, RICHARD V
2330 SOUTH WEST 27TH AVENUE
FORT LAUDERDALE FL 33312 US
Name Changed: 02/12/2007
Address Changed: 01/14/2011
Officer/Director Detail
Name & Address
Title D
KISBERT, SHERI
5 CHEYENNE COURT
PALM COAST FL 32137
Title D
CASELLA, STEVE
4900 NW 157TH ST BAY 4470
MARGATE FL 33063
Title P
VAN HOUTEN, RICHARD
http://www.sunbiz.org/scripts/cordet.exe?action=DETFIL&in~ doc _ number=F050000066... 3/18/2011
www.sunbiz.org - Department of State
Page 2 of2
6651 NORTH WEST 22ND STREET
MARGATE FL 33063
Title T
NAKOWICZ, JOHN
125 WATERMAN AVE
WARWICK RI 02889
Title D
CRUZ, ROBERT H
11201 NW 357TH ST FLEET 214
CORRAL SPRINGS FL 33065
Title D
SIRR, CHRIS
440 DIAMOND HILL ROAD
WARWICK RI 02886
Annual Reports
Report Year Filed Date
2009 01/08/2009
2010 01/04/2010
2011 01/14/2011
Document Images
01/14/2011 -- ANNUAL REPORT
01/04/2010 -- ANNUAL REPORT
01/08/2009 -- ANNUAL REPORT'II_t
01/02/2008 --ANNUAL REPORT i_
02/12/2007 --ANNUAL REPORT i_
07/28/2006 --ANNUAL REPORT_
11/14/2005 -- Foreion Non-Profit _
Note: This is not official record. See documents if question or conflict.
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Copvriqht@ and Privacv Policies
State of Florida, Department of State
http://www .sunbiz.org/scripts/cordet.exe?action=DETFIL&in~ doc _ number=F050000066... 3/1812011
Jeff CJt-ej
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Je(f. ~~ e -+h-e.- Vei~'rctn5Sl.fP
~(t-. o~
Martha S. Vergara
From:
Sent:
To:
Subject:
Sara Keeley [sara.keeley@theveteranssupport.org]
Friday, March 18, 2011 10:01 AM
Martha S. Vergara
Veterans Support Org addressess
Good Morning Martha
The addresses you requested
Justin Wells
5065 Rosen Blvd
Boynton Beach, FL 33472
Jeff Coffey
2330 SW27th Ave
Ft Lauderdale, FI 33312
Sara Keeley
Fundraiser Coordinator
Veterans Support Organization
8358 W Oakland Park Blvd Ste 302
Sunrise, FL. 33351
Tel: 954-537-3001 Ext 5
Fax: 954-749-4828
Disclaimer: The information contained in this E-mail is intended only for the person or entities to which it is
addressed and may contain confidential and/or privileged material. If the reader of this message is not the
intended recipient, or an authorized agent of the intended recipient, you are hereby notified that any review,
retransmission, dissemination, distribution, copying, or use of this information by persons or entities other than
the intended recipient is prohibited. If you receive this E-mail in error, please notify the sender immediately
and delete the material from your system. Thank you.
1
Receipt# 007146412
3/21/2011 11 :43:25 AM
Dwight E. Brock
Clerk of the Circuit Court
cp)aHDC~DC9Jn ~~@C~C~DCQ)(S
Customer
JEFF COFFEY
VETERAN'S SUPPORT
ORGANIZATION, INC.
8358 W OAKLAND PARK
BLVD STE 302
SUNRISE, FL 33351-7342
Deputy Clerk
BMR CASHIER
M inutesand Records@CollierClerk.com
239-252-2646
Clerk Office Location
Collier County Govt. Center
Building F, 4th Floor
3299 Tamiami Trail East,
Suite 401
P.O. Box 413044
Naples, Florida 34101-3044
1 Product
QUANTITY DESCRIPTION
1 BMR Solicitation of Contributions
UNIT COST
$5.00
TOTAL AMOUNT DUE:
Check# 2373
BALANCE DUE:
AMOUNT
$5.00
$5.00
($5.00)
$0.00
~@O 0 D@rr~O@rr[ko @@[ffJiJ
Page 1 of 1
20 l\ "v2-
Registratl.on No.
COUNTY OF COLLIER, FLORIDA
APPLICATION FOR LICENSE FOR:PUBLIC
SOLICITATION OF CONTRIBUTIONS
IN ACCORDANCE WITH ORDINANCE 76-57
Name of public solicitor (PLEASE PRINT)
The Veterans Support Organization
(b) Purpose for which contributions are being solicited:
See attached mission statement
2.
(a) Principal Address:
1464 Warwick Ave
Warwick, RI 02888
(b) Local Address:
1464 Warwick Ave
Warwick, RI 02888
(c) If no office maintained, the name and address of the person
having custody of financial records:
NIA
3. Names and addresses of any chapters, branches or affiliates in this
county:
None
4.
(a) Date public solicitor legally established:
2001
(b) Address at that time:
469 Warwick Ave Warwick, RI 02888
(c) Means by which solicitations will be made: Donations Request
(d) If tax-exempt, state appropriate section of Internal Revenue Code
and Tax-Exempt Number: 501 c 3 Tax Exempt number 05-0516084
5. Names and addresses of officers, directors, trustees and principal
salaried executive staff officers (Attach separate page if necessary):
Richard VanHouten CEO: 2330 SW 27th Ave Forth Lauderdale, FL 33321
John Nakowicz CFO; 1464 Warwick Ave Warwick, RI 02888
6. (a) Are you presently authorized by any governmental authority to
solicit funds? No
(b) If yes, state authority:
(c) Are you presently or have you ever been enjoined by any court
from soliciting funds? No
Cd) If yes, state circumstances, including case number and style:
NIA
7. State all purposes for which contributions solicited shall be used:
See attached mission statement
WMcN: iw: 2/8/77
- 1 -
-.
8. Under what name or names will contributipns be solicited?
The Veterans Support Organization (VSO)
Veterans New Life Haven (VNKH)
9. Names, titles and addresses of all individuals who will have final
responsibility for and custody of contributions:
James Coffey- Chapter Manager
Justin Wells- Director of Operations
10. Names, titles and addresses of all individuals who will have responsi-
bility for final distribution of contributions collected:
Richard VanHouten CEO; 2330 SW 27th Ave. Fort Lauderdale, FL 33321
John Nakowicz CFO; 1464 Warwick Ave. Warwick, RI 02888
11. Please furnish a financial statement providing complete disclosure of
all fiscal activities for prior three (3) years. Specifically,
identify the amount of funds raised and give a breakdown of all
expenses incurred in the disbursement of said solicitations. This
financial statement shall be verified under oath and attested to by
the chief fiscal officer of the public solicitor.
For:
...
Applicant (Signature)
-------------------------------------------------------------------------
Above registration form shall be signed by an authorized officer and by
the chief fiscal officer of the public solicitor, shall be verified under
oath, and shall be accompanied by a five dollar ($5.00) registration
fee payable to the Clerk of the Circuit Court.
Each public solicitor shall annually, on or before March 1st, after the
end of the calendar year, file with the Clerk of the Circuit Court a
statement showing the financial condition of the public solicitor as of
the last day of the calendar year. The statement shall be verified by
a certified public accountant or submitted under oath by the executive
officer of the public solicitor.
WMcN:iw:2/8/77
- 2 -
MISSION ST5tT'EM'E:NT
Veterans Support Organization, a 501 (c) 3 tax-exempt non-profit organization founded in
2001, is a band of veterans and non-veterans whose focus is to support needy United States
veterans in the local area. Donations collected provide funding for veterans' delinquent
utility bills, rent or mortgage and provides housing assistance for homeless veterans. VSO
also provides monetary assistance to the local VA hospitals Volunteer Services Depaltment
for the support of various programs offered to veterans. VSO offers a work program for
veterans and non-veterans striving to improve their own person financial status while also
helping the needy veterans of the community.
oun l1ISION
Veterans Support Organization's goal is to open Safe Houses for veterans and their
families, a place where they can find peace, comfort and security - a temporary home.
Our Safe Houses will offer cost free food, shelter, financial and employment counseling
and financial assistance for its guests. The VSO Safe Houses will be a hand up for our
veterans who find themselves in need.
MAKING A DIFFERENCE.....ONEDONATION AT A TIME
THE VETERANS SUPPORT ORGANIZATION
FINANCIAL STATEMENTS
Year Ended
September 30, 2008
TABLE OF CONTENTS
Page No.
INDEPENDENT AUDITORS' REPORT
1
FINANCIAL STATEMENTS
Statement of Financial Position
2
Statement of Activities and
Changes in Unrestricted Net Assets
3
Statement of Cash Flows .......... .......... .............. ............................................... 4
Notes to Financial Statements .......................................................................... 5 - 6
o ~rt~e~tb:~cM~n~~~}atL~~:
INDEPENDENT AUDITORS' REPORT
Board of Directors
The Veterans Support Organization
Lauderhifl, Florida
We have audited the accompanying statement of financial position of The Veterans Support
Organization (Organization) as of September 30, 2008, and the related statements of activities
and changes in unrestricted net assets and cash flows .for the year then ended. These financial
statements are the responsibility of the Organization's management. Our responsibility is to
express an opinion 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. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of the Organization as of September 30, 2008, and 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.
~V() 'frl.n.u..etLU' -l..~
October 7,2009
36 Exchange Terrace Providence, RI 02903-1743 T 401.273.7600 F 401.421.6799
20 Park Plaza, Suite 400 Boston, MA 02116-4326 T 617.948.2111 F 617.948.2501
Mnnber '>.'~DFK Ii worldwide association ofinJepenJ''Il1 iJcclJ/tntingjirms
~'IO~"'HPO'H.V'~ '".
THE VETERANS SUPPORT ORGANIZATION
STATEMENT OF FINANCIAL POSITION
September 30, 2008
ASSETS
CURRENT ASSETS
Cash $ 72,844
Prepaid expenses 15,617
TOTAL CURRENT ASSETS 88,461
PROPERTY AND EQUIPMENT
Office furniture and equipment 17,901
Vehicles 29,508
47,409
Less accumulated depreciation 6,883
40,526
OTHER ASSETS
Deposits 2,400
TOTAL ASSETS $ 131,387
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accrued expenses $ 1 ,442
UNRESTRICTED NET ASSETS 129,945
TOTAL LIABILITIES AND NET ASSETS $ 131,387
See accompanying notes to the financial statements.
-2-
THE VETERANS SUPPORT ORGANIZATION
STATEMENT OF ACTIVITIES
AND CHANGES IN UNRESTRICTED NET ASSETS
Year Ended September 30,2008
REVENUES AND OTHER SUPPORT
Contributions $ 1,024,554
Other 1,240
TOTAL REVENUES AND OTHER SUPPORT 1,025,794
EXPENSES
Program service expenses:
Donations 317,788
Subcontractors 321,337
Automobile expense 41,513
Uniforms 7.458
688,096
Management and general expenses:
Advertising and promotion 53,039
Bank fees 1,519
Depreciation 5,570
Insurance 9,429
Managers 103,735
Miscellaneous 5,994
Office expense 14,343
Professional fees 6,664
Rent 22.033
Salaries and benefits 30,093
Telephone and internet 9.418
Travel and entertainment 8,390
Utilities 788
271,015
TOTAL EXPENSES 959,111
CHANGE IN UNRESTRICTED NET ASSETS 66,683
UNRESTRICTED NET ASSETS, beginning 63,262
UNRESTRICTED NET ASSETS, ending $ 129,945
See accompanying notes to the financial statements.
-3-
THE VETERANS SUPPORT ORGANIZATION
STATEMENT OF CASH FLOWS
Year Ended September 30,2008
CASH FLOWS FROM OPERATING ACTIVITIES
Change in unrestricted net assets
Adjustment to reconcile change in unrestricted
net assets to net cash from operating activities:
Depreciation
Changes in assets and liabilities:
Prepaid expenses
Deposits
Accrued expenses
Total adjustments
NET CASH FROM OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment
NET CASH FROM INVESTING ACTIVITIES
NET CHANGE IN CASH
CASH, beginning
$
66,683
5,570
(13,831)
(650)
1,435
(7,476)
59,207
(30,240)
(30,240)
28,967
43,877
$ 72,844
CASH, ending
See accompanying notes to the financial statements.
-4-
THE VETERANS SUPPORT ORGANIZATION
NOTES TO FINANCIAL STATEMENTS
September 30, 2008
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Operations
Founded in 2001, The Veterans Support Organization (Organization) was
organized to help homelss, needy and disabled vertans. This mission is achieved
through the collection of donations that the Organization in turn contributes to
various organizations including the Department of Veterans Affairs Voluntary
Services to support certain of its programs; including patient emergency needs, the
patient coffee program and recreational activities. The Organization currently
operates in Rhode Island, Florida and Georgia. The Organization is a non-profit
corporation determined to be exempt from income taxes by the Internal Revenue
Service under Section 501 (c)(3) of the Internal Revenue Code.
Basis of AccountinQ
The Organization reports gifts of cash and other assets as restricted support if they
are received with donor stipulations that limit their use. When a donor restriction
expires, that is, when a stipulated time restriction ends or purpose restriction is
accomplished, temporarily restricted net assets are released to unrestricted net
assets and reported in the statement of unrestricted revenues and support,
expenses, and changes in unrestricted net assets. During the year ended
September 30, 2008, the Organization received only cash donations that had no
donor stipulations limiting use of the funds. As a result, all such contributions were
reported as unrestricted contributions in the accompanying statement of activities
and changes in unrestricted net assets.
The Organization reports gifts of land, buildings and equipment as unrestricted
support unless explicit donor stipulations specify how the donated assets must be
used. Gifts of long-lived assets with explicit restrictions that specify how the assets
are to be used and gifts of cash or other assets that must be used to acquire long-
lived assets are reported as restricted support. Absent explicit donor stipulations
about how long those long-lived assets must be maintained, the Organization
reports expirations of donor restrictions when donated or acquired long-lived
assets are placed in service.
Property and EQuipment
Property and equipment are recorded at cost, if purchased, or at fair value, if
donated. These assets are depreciated over their estimated useful lives using the
straight-line method over five years.
AdvertisinQ Costs
The Organization expenses advertising costs as they are incurred. Advertising
expense was $53,039 for the year ended September 30,2008.
-5-
THE VETERANS SUPPORT ORGANIZATION
NOTES TO FINANCIAL STATEMENTS
September 30, 2008
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America (US GAAP) 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.
NOTE 2 - OPERATING LEASES
The Organization leases several offices throughout the states in which it operates
under non-cancelable operating lease agreements, expiring at various dates
through August 2009. Rent and lease expense for the year ended September 30,
2008 was approximately $22,000. Future minimum lease payments due in 2009
on operating leases in effect at September 30,2008 are $8,945.
-6-
THE VETERANS SUPPORT ORGANIZATION
FINANCIAL STATEMENTS
Year Ended
September 30, 2009
TABLE OF CONTENTS
Page No.
INDEPENDENT AUDITORS' REPORT
1
FINANCIAL STATEMENTS
Statement of financial Position
2
Statement of Activities and
Changes in Net Assets ......................... .............................. ............................ 3
Statement of Cash flows ................................. .......... ... ......... .......................... 4
Notes to Financial Statements ....................................... ................................... 5 - 9
o ~rt~e~tt~~J:1~n~~~sltLs~~;
INDEPENDENT AUDITORS' REPORT
Board of Directors
The Veterans Support Organization
Warwick, Rhode Island
We have audited the accompanying statement of financial position of The Veterans Support
Organization (Organization) as of September 3D, 2009, and the related statements of activities
and changes in net assets and cash flows for the year then ended. These financial statements
are the responsibility of the Organization's management. Our responsibility is to express an
opinion 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. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of the Organization as of September 30, 2009, and 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.
~'V() ~v..u' --l.,~
February 10, 2010
36 Exchange Terrace Providence, RI 02903-1743 T 401.273.7600 F 401.421.6799
20 Park Plaza, Suite 400 Boston, MA 02116-4326 T 617.948.2111 F 617.948.2501
Mt'mher' .~ DIPK A worldw;de association of ;"dependerll accounting firm.,
~ ""'~.A'I(lIt"'~'...~,
THE VETERANS SUPPORT ORGANIZATION
STATEMENT OF FINANCIAL POSITION
September 30, 2009
ASSETS
CURRENT ASSETS
Cash
Accounts receivable other
Employee receivable
Inventory
Prepaid expenses
$ 123,178
8,000
9,606
88,740
5,992
235,516
38,819
10,949
5,582
113,736
169,086
28,170
140,916
14,219
$ 390,651
TOTAL CURRENT ASSETS
PROPERTY AND EQUIPMENT
Equipment
Office furniture
Leasehold improvements
Vehicles
Less accumulated depreciation and amortization
OTHER ASSETS
Deposits
TOTAL ASSETS
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Note payable, current portion $ 4,898
Accounts payable 46,100
Accrued expenses 22,331
TOTAL CURRENT LIABILITIES 73,329
LONG-TERM LIABILITIES
Note payable 880
Deferred rent 7,742
8,622
NET ASSETS
Unrestricted 274,559
Temporarily restricted 34,141
TOTAL NET ASSETS 308,700
TOTAL LIABILITIES AND NET ASSETS $ 390,651
See accompanying notes to the financial statements.
- 2 -
THE VETERANS SUPPORT ORGANIZATION
STATEMENT OF ACTIVITIES
AND CHANGES IN NET ASSETS
Year Ended September 30, 2009
Temporarily
Unrestricted Restricted Total
PUBUC SUPPORT AND REVENUE:
Public Support
Contributions $ 2.513.453 $ 34.141 $ 2,547,594
Revenue:
In-kind contributions 22,628 22,628
Rental income 46.479 46,479
Other 5,040 5.040
74,147 74.147
Special Events:
Revenue 2,941 2.941
Expense (21,191) (21.191)
(18.250) (18.250)
TOTAL PUBLIC SUPPORT AND REVENUE 2.569,350 34.141 2.603,491
EXPENSES
Program service expenses:
Automobile expense 88,147 88,147
Coupon books sold 1,260 1,260
Depreciation 13,303 13.303
Donations 404.531 404,531
Solicitation location fees 98,400 98,400
Solicitor pay and payroll taxes 795.452 795,452
Rent 116.774 116,774
Travel 31.055 31,055
Uniforms 21,979 21,979
Miscellaneous 1.574 1.574
1.572,475 1.572.475
Management and general expenses
Advertising and promotion 141,512 141,512
Bank fees 5,087 5,087
Depreciation and amortization 7,984 7,984
Insurance 27,618 27.618
licenses and permits 2,143 2,143
Managers 393,279 393,279
Miscellaneous 12,199 12,199
Office staff 32,276 32,276
Office expense 38,362 38.362
Payroll taxes 23,295 23.295
Postage and printing 7,275 7,275
Professional fees 47,474 47,474
Rent 55,112 55,112
Repairs and maintenance 6,963 6,963
Security 8,119 8,119
Telephone and internet 25,372 25,372
Travel and entertainment 10,183 10,183
Utilities 8,008 8,008
852.261 852.261
TOTAL EXPENSES 2.424,736 2.424,736
CHANGE IN NET ASSETS 144,614 34.141 178,755
NET ASSETS, beginning 129,945 129,945
NET ASSETS, ending $ 274,559 $ 34,141 $ 308.700
See accompanying notes to the financial sta1ements.
- 3-
THE VETERANS SUPPORT ORGANIZATION
STATEMENT OF CASH FLOWS
Year Ended September 30,2009
CASH FLOWS FROM OPERATING ACTIVITIES
Change in net assets $ 178,755
Adjustment to reconcile change in unrestricted
net assets to net cash from operating activities:
Depreciation and amortization 21,287
Changes in assets and liabilities:
Accounts recveivable, other (8,000)
Employee receivable (9,606)
Inventory (88,740)
Prepaid expenses 9,625
Deposits (11,819)
Accounts payable 46,100
Accrued expenses 20,889
Deferred rent 7,742
Total adjustments (12,522)
NET CASH FROM OPERATING ACTIVITIES 166,233
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment (114,402)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of note payable (1,497)
NET CHANGE IN CASH 50,334
CASH, beginning 72,844
CASH, ending $ 123,178
See accompanying notes to the financial statements.
- 4-
THE VETERANS SUPPORT ORGANIZATION
NOTES TO FINANCIAL STATEMENTS
September 30, 2009
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Operations
Founded in 2001, The Veterans Support Organization (Organization) was
organized to help homeless, needy and disabled veterans. This mission is
achieved through the collection of donations that the Organization in turn
contributes to various organizations including the Department of Veterans Affairs
Voluntary Services to support certain of its programs; including patient emergency
needs, the patient coffee program and recreational activities. The Organization
currently operates in Rhode Island, Florida and Georgia. In addition, in 2009 the
Organization began offering transitional housing for homeless veterans in Florida.
Basis of Accounting
The accompanying financial statements are presented on the accrual basis of
accounting consistent with accounting principles generally accepted in the United
States of America (US GAAP), and have been prepared to focus on the
Organization as a whole and to present balances and transactions according to the
existence or absence of donor restrictions. Accordingly, net assets and changes
therin are classified as follows:
Permanentlv restricted net assets - Net assets subject to a donor imposed
restriction requiring they be maintained by the Organization in perpetuity. At
September 30, 2009, the Organization had no permanently restricted net
assets.
Temporarilv restricted net assets - Net assets subject to donor-imposed
restrictions which may only be utilized in accordance with purposes
established by the donor of such funds or the passage of time.
Unrestricted net assets - Net assets not subject to donor-imposed restrictions
or the donor-imposed restriction is satisfied on the temporarily restricted net
asset in the same year the asset is received.
The Organization reports gifts of cash and other assets as restricted support if they
are received with donor stipulations that limit their use. When a donor restriction
expires, that is, when a stipulated time restriction ends or purpose restriction is
accomplished, temporarily restricted net assets are released to unrestricted net
assets and reported as such in the statement of activities.
-5-
THE VETERANS SUPPORT ORGANIZATION
NOTES TO FINANCIAL STATEMENTS
September 30, 2009
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis of Accountina (Continued)
The Organization reports gifts of land, buildings and equipment as unrestricted
support unless explicit donor stipulations specify how the donated assets must be
used. Gifts of long-lived assets with explicit restrictions that specify how the assets
are to be used and gifts of cash or other assets that must be used to acquire long-
lived assets are reported as restricted support. Absent explicit donor stipulations
about how long those long-lived assets must be maintained, the Organization
reports expirations of donor restrictions when donated or acquired long-lived
assets are placed in service.
Property and EQuipment
Property and equipment are recorded at cost, if purchased, or at fair value, if
donated. These assets are depreciated over their estimated useful lives using the
straight-line method over five years.
Contributed Services and Materials
A branch manager of the Organization serves in this capacity on a volunteer basis.
The value of this contributed service is reflected in the accompanying statements
of activities as in-kind contributions and an offsetting expense. The value is
estimated based upon the Organization's compensation policies at the date of
receipt due to the fact that they create or enhance nonfinancial assets or require
specialized skills which, if not provided by donation, would have to be purchased
by the Organization.
Deferred Rent
The Organization recognizes rent expense on a straight-line basis over the term of
the operating lease. Rent escalation provisions are considered in determining
straight-line rent expense to be recorded over the lease term. The lease term
began on the date of initial possession of the lease property for purposes of
recognizing the expense on a straight-line basis over the term of the lease. Lease
renewals are considered on a lease-by-Iease basis and are generally not included
in the lease term. The difference between rent currently due under the terms of the
lease agreement and rent expense is recorded as deferred rent on the
accompanying balance sheet.
-6-
THE VETERANS SUPPORT ORGANIZATION
NOTES TO FINANCIAL STATEMENTS
September 30, 2009
NOTE 1 - Summary of Significant Accounting Policies (Continued)
Inventorv
Inventory is comprised of coupon books purchased for resale. Inventory is stated
at the lower of cost (first-in, first-out method) or market. Inventory consists of
coupon books held for sale by the Organization, as well as on consignment with
other organizations as follows:
Held for sale
Consignment
$
78,660
10,080
88.740
Total
$
Thrift Store Inventorv
During 2009, the Organization began renting space out of which a thrift store would
be run. The thrift store was not operating as of September 30, 2009, but had
begun to collect donations for purposes of stocking the store. Substantially all the
items held for resale at the thrift store are donated to the Organization. Due to the
uncertainty of the value and inadequate inventorying upon receipt, items received
are not reported as inventory. Upon sale or other realization of value, the
Organization will record the net amount received as income.
Income Taxes
The Organization qualifies as a tax-exempt organization as provided under Section
501 (c)(3) of the Internal Revenue code and is classified as other than private
foundation. Accordingly, no provision for federal and state income taxes has been
reflected in the accompanying financial statements.
AdvertisinQ Costs
The Organization expenses advertising costs as they are incurred. Advertising
expense was $141,512 for the year ended September 30,2009.
Estimates
The preparation of financial statements in conformity with US GAAP 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.
- 7 -
THE VETERANS SUPPORT ORGANIZATION
NOTES TO FINANCIAL STATEMENTS
September 30, 2009
NOTE 2 - NOTE PAYABLE
The Organization has a note payable in the original amount of $7,275 with a finance
company for the purchase of a vehicle. Such note payable is secured by the
vehicle for which the note was issued. The note payable charges interest at
12.95% and requires monthly payments of principal and interest of $447 through
November 2010. Future scheduled principal payments under the note payable are
$4.898 and $880 for the fiscal years ending September 30, 2010 and 2011.
respectively.
NOTE 3 - TEMPORARILY RESTRICTED NET ASSET
As of September 30, 2009, the Organization's temporarily restricted net assets of
$34.141 were restricted for the operation of the Organization's transitional housing
program referred to through solicitation literature as New Life Haven.
NOTE 4 - RELATED PARTY TRANSACTIONS
During 2009, the Organization incurred expenses to a Board member totaling
$23,328 for services rendered in connection with financial consulting, bookkeeping
and tax services. As of September 30,2009, all amounts incurred had been paid.
NOTE 5 - OPERATING LEASES
The Organization leases several commercial spaces throughout the states in which
it operates under non-cancelable operating lease agreements, expiring at various
dates through July 2012. Rent and lease expense for the year ended September
30, 2009 was approximately $172,000.
Future minimum lease payments under non-cancelable operating leases are as
follows:
Years Ending
September 30.
Amount
2010
2011
2012
$
76,275
61,200
52,832
-8-
THE VETERANS SUPPORT ORGANIZATION
NOTES TO FINANCIAL STATEMENTS
September 30, 2009
NOTE 6 - SUPPLEMENTAL CASH FLOW INFORMATION
Net cash flows from operating activities, as reported in the accompanying statement
of cash flows, reflect cash payments for interest of $290.
The accompanying statement of cash flows excludes the effects of noncash
investing and financing activities relating to the acquisition of certain transportation
equipment through an the execution of note payable of $7,275.
NOTE 7 - SUBSEQUENT EVENTS
Events that occur after the balance sheet date but before the financial statements
are available to be issued must be evaluated for recognition and disclosure. The
effects of subsequent events that provide evidence about conditions that existed at
the balance sheet date are recognized in the accompanying financial statements.
Subsequent events which provide evidence about conditions that occurred after
the balance sheet date require disclosure in the accompanying notes.
Management evaluated the activity of the Company through February 10, 2010
and concluded that no subsequent events have occurred that would require
recognition in the financial statements or disclosure in the notes to the financial
statements.
-9-
VETERANS SUPPORT ORGANIZATION
FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2010
TABLE OF CONTENTS
INDEPENDENT AUDITORS' REPORT
PaQe
1
FINANCIAL STATEMENTS
Statement of Financial Position
2
Statement of Activities and Changes in Net Assets
3
Statement of Cash Flows
4
Statement of functional expenses
5
Notes to Financial Statements
6-11
STI~I:>m{JN T. GENfILE, C.P.A., LTD
Cl~H'l'IF'm]) PUl3UC ACCOUN'l'AN'l'
109 Alm>Olfr HOAD, UNI'l' 3
W AHW1Cl\, H. I. 02889
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
Veterans Support Organization
Warwick, Rhode Island
I have audited the accompanying statement of financial position of Veterans Support Organization as of
September 30, 2010, and the related statements of activities and changes in net assets and cash flows for
the year then ended. These financial statements are the responsibility of Veterans Support Organization.
My responsibility is to express an opinion on these financial statements based on my audit.
I conducted my audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that I plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. I believe that my audit provides a
reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of Veterans Support Organization as of September 30, 2010, 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.
My audit was conducted for the purpose of forming an opinion on the basic financial statements taken as
a whole. The schedule of functional expenses on page 5 is presented for purposes of additional analysis
and is not a required part of the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated
in all material respects in relation to the basic financial statements taken as a whole.
Warwick, Rhode Island
November 4, 2010
8~ :T f7~ C!7!d, o&L
'l'J~LIWHONJ~ (101) 7il!J.llJlO . FAX: (101) 738-7148
-1-
CURRENT ASSETS
Cash
Accounts receivable-other
Inventory
Prepaid expenses
Total current assets
PROPERTYANDEQUPMENT
Equipment
Office furniture
Leasehold improvements
Vehicles
VETERANS SUPPORT ORGANIZATION
STATEMENT OF FINANCIAL POSITION
SEPTEMBER 30,2010
ASSETS
Less accumulated depreciation and amortization
OTHER ASSETS
Deposits
Other Investment
TOTAL ASSETS
CURRENT LIABILITIES
Accounts payable
Accrued expenses
Note payable, current portion
LIABILITIES AND NET ASSETS
TOTAL CURRENT LIABILITIES
LONG-TERM LIABILITIES
Notes payable
NET ASSETS
Unrestricted
Temporarily restricted
TOTAL NET ASSETS
TOTAL LIABILITIES AND NET ASSETS
See auditors' report and notes to financial statements.
-2-
$
130,719
7,946
49,194
3.600
191,459
36,650
57,467
5,582
242.100
341 , 799
(71,240)
270.559
77,838
49,947
127,785
~,,~~_5El~.aO~
$ 98,121
47,677
24.978
170,776
87,716
331.311
o
331.311
l~,,=~?~~~~!2~
VETERANS SUPPORT ORGANIZATION
STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 2010
PUBLIC SUPPORT AND REVENUE:
Public Support
Contributions
Unrestricted
Temporarily
Restricted
Total
Total public support and revenue
$ 5,653,017 $ 0 $ 5,653.017
107,536 107,536
6,957 0 6,957
114.493 0 114.493
5,767,510 5,767,510
3.997,126 3,997,126
572,620 572,620
379.038 0 379.038
4,948,784 4,948,784
794.060 0 794.060
5,742,844 5,742,844
(1.491 ) 0 ( 1 .491 )
23,175 0 23,175
274,559 34,141 308,700
( 564 ) 0 (564)
273,995 34,141 308,136
34,141 (34,141) 0
~~~__3_3.t.3..U ~ _.oo=-Q ~=,.-_37~L~11.1
Revenue:
Rental income
Other
PROGRAM EXPENSES
Veterans work assistance program
Veterans transitional housing
Veterans grant assistance
Total program expenses
SUPPORTING SERVICES
Management and general
Total expenses
OTHER (EXPENSE)
Loss on disposal of vehicle
CHANGE IN NET ASSETS
NET ASSETS, beginning
Prior period adjustment
Net assets released from restriction
NET ASSETS, ending
See auditors' report and notes to financial statements.
-3-
VETERANS SUPPORT ORGANIZATION
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED SEPTEMBER 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Change in net assets
Adjustments to reconcile change in unrestricted net assets to
net cash from operating activities:
Depreciation and am ortization
Changes in assets and liabilities:
Accounts receivable, other
Employee receivable
Inventory
Prepaid expenses
Deposits
Accounts payable
Accrued expenses
Deferred rent
Total adjustments
NET CASH PROVIDED BY OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment
Purchase of interest in real estate limited liability company
NET CASH (USED) FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of notes payable
NET INCREASE IN CASH
CASH, beginning
CASH. ending
Supplemental disclosures:
Cash flows for the purchase of property and equipment does not include loans to finance the
purchase of vehicles in the amount of $139,206.
Net cash flows from operating activities, as reported in the accompanying statement of cash
flows, reflect cash payments for interest of $1,783.
See auditors' report and notes to financial statements.
-4-
$
23,175
43,070
54
9,606
39,546
5,520
(63,619)
52,021
25,346
(7.742)
103.802
126.977
(38,124)
(49.947)
(88,071 )
(32.283}
6,623
124,096
$.-~~j~~L19
VETERANS SUPPORT ORGANIZATION
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED SEPTEMBER 30,2010
EXPENSES
Salaries and wages $ 856,921 $ 557,136 $ 1,414,057
Payroll taxes 44,513 26,844 71,357
Employee benefits 5,723 932 6,655
Automobile and truck expense 321,469 1,746 323,215
Donations 379,038 0 379,038
Solicitation location fees 151,300 0 151,300
Solicitor pay and payroll taxes 1,747,010 0 1,747,010
Solicitors Travel 84,785 0 84,785
Uniforms 71,860 0 71,860
Transitional Housing 114,714 0 114,714
Cost of coupon books sold 29,946 0 29,946
Other program expenses 22,460 0 22,460
Rent 409,855 31,109 440,964
Insurance 76,845 11,631 88,476
Utilities 63.404 5,597 69,001
Telephone and internet 61,274 8,976 70,250
Security 49.466 6,134 55,600
Office expense 56,263 16,965 73,228
Supplies 113,755 17,542 131,297
Bank fees 0 26,134 26,134
Professional fees 103,737 19,540 123,277
Outside services 11,700 1,712 13.412
Equipment rental 11,479 1,869 13,348
Training 10,077 181 10,258
Advertising and promotion 8.491 22,437 30,928
Licenses and permits 7,254 1,180 8,434
Postage and printing 7,239 1,166 8,405
Dues and subscriptions 1,661 270 1,931
Repairs and maintenance 29,931 1,387 31,318
Travel and entertainment 47,120 22,427 69,547
Special events 0 1,605 1,605
Interest expense 1,533 250 1,783
Miscellaneous 7,022 2,625 9,647
Depreciation 40,939 6.665 47,6Q1
TOTAL EXPENSES Lo~A,~~lM $~-~o~~ ~-~~-Z:~~~4.~
Program
Services
Management
and General
Total
See auditors' report and notes to financial statements.
-5-
VETERANS SUPPORT ORGANIZATION
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Operations
Founded in 2001, The Veterans Support Organization (Organization) was organized to help homeless, needy and
disabled veterans, and other needy Americans. The mission is achieved through the collection of donations that
the Organization in turn contributes to various organizations including the Department of Veterans Affairs
Voluntary Services to support certain of its programs, including patient emergency needs, the patient coffee
program and recreational activities. The Organization currently operates in Rhode Island, Connecticut,
Massachusetts, New Hampshire, Florida, New Jersey, Maryland, New York, Pennsylvania, Georgia, Texas,
Tennessee, Kentucky, Virginia, and Delaware. In addition, the Organization offers transitional housing for
homeless veterans in Florida.
Basis of Accountinq
The accompanying financial statements are presented on the accrual basis of accounting consistent with
accounting principles generally accepted in the United States of America (US GAAP), and have been prepared to
focus on the Organization as a whole and to present balances and transactions according to the existence or
absence of donor restrictions. Accordingly, net assets and changes therein are classified as follows:
Permanentlv restricted net assets - Net assets subject to a donor imposed restriction requiring they be
maintained by the Organization in perpetuity. At September 30, 2010, the Organization had no
permanently restricted net assets.
Temoorarilv restricted net assets - Net assets subject to donor-imposed restrictions which may only be
utilized in accordance with purposes established by the donor of such funds or the passage of time.
Unrestricted net assets - Net assets not subject to donor-imposed restrictions or the donor-imposed
restrictions are satisfied on the temporarily restricted net asset in the same year the asset is received.
The Organization reports gifts of cash or other assets as restricted support if they are received with donor
stipulations that limit their use. When a donor restriction expires, that is, when a stipulated time restriction ends or
purpose restriction is accomplished temporarily restricted net assets are released to unrestricted net assets and
reported as such in the statement of activities.
The Organization reports gifts of land, buildings and equipment as unrestricted support unless explicit donor
stipulations specify how the donated assets must be used. Gifts of long-lived assets with explicit restrictions that
specify how the assets are to be used and gifts of cash or other assets that must be used to acquire long-lived
assets are reported as restricted support. Absent explicit donor stipulations about how long those long-lived
assets must be maintained, the Organization reports expirations of donor restrictions when donated or acquired
long-lived assets are placed in service.
Property and Eauioment
Property and equipment are recorded at cost, if purchased, or at fair value, if donated. These assets are
depreciated over their estimated useful lives using the straight-line method over five years.
See auditors' report.
-6-
VETERANS SUPPORT ORGANIZATION
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Contributed Services and Materials
The value of contributed services and materials is reflected in the accompanying statements of activities as in-kind
contributions and an offsetting expense. The value is estimated based upon the Organization's compensation
policies at the date of receipt due to the fact that they create or enhance non-financial assets or require specialized
skills which, if not provided by donation, would have to be purchased by the Organization. For the year ended
September 30, 2010 there were no amounts recorded in the accompanying financial statements for in-kind
donations.
Inventory
Inventory is comprised of coupon books purchased for resale. Inventory is stated at the lower of cost (first-in, first-
out method) or market. Inventory consists of coupon books held for sale by the Organization as follows:
Held for sale
$
49.194
Thrift Store Inventory
During 2010, the Organization began operating a thrift store. Substantially all the items held for resale at the thrift
store are donated to the Organization. Due to the uncertainty of the value and inadequate inventorying upon
receipt, items received are not reported as inventory. Upon sale or other realization of value, the Organization will
record the net amount received as income.
Income Taxes
The Organization qualifies as a tax-exempt organization as provided under Section 501 (c)(3) of the Internal
Revenue code and is classified as other than private foundation. Accordingly, no provision for federal and state
income taxes has been reflected in the accompanying financial statements.
On October 1, 2009, the Organization adopted the recognition requirements for uncertain tax positions as required
by generally accepted accounting principles, with no cumulative effect adjustment required. Income tax benefits
are recognized for income tax positions taken or expected to be taken in a tax return, only when it is determined
that the income tax position will more-likely-than-not be sustained upon examination by taxing authorities. The
Organization has analyzed tax positions taken for filing with the Internal Revenue Service. The Organization
believes that income tax positions will be sustained upon examination and does not anticipate any adjustments
that would result in a material adverse affect on the Organization's financial condition, results of operations or cash
flows. Accordingly, the Organization has not recorded any reserves, or related accruals for interest and penalties
for uncertain tax positions at September 30,2010.
See auditors' report.
-7-
VETERANS SUPPORT ORGANIZATION
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Advertisinq Costs
The Organization expenses advertising costs as they are incurred. Advertising expense was $30.928 for the year
ended September 30. 2010.
Estimates
The preparation of financial statements in conformity with US GAAP 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.
NOTE 2 - NOTES PAYABLE
The Organization has several notes payable with finance companies for the purchase of vehicles.
At September 30, 2010 outstanding notes payable were as follows:
Note payable to a finance company for the purchase of a vehicle
payable in equal monthly installments of $716.01, including
interest at a rate of 4.9%, through March, 2015
$
33,597
Note payable to a finance company for the purchase of a vehicle
payable in equal monthly installments of $651.12, including
interest at a rate of 2.9%, through February, 2015
31,482
Note payable to a finance company for the purchase of a vehicle
payable in equal monthly installments of $476.48, including
interest at a rate of 1.9%. through December, 2014
23,599
Note payable to a finance company for the purchase of a vehicle
payable in equal monthly installments of $476.48, including
interest at a rate of 1.9%, through December, 2014
23,159
Note payable to a finance company for the purchase of a vehicle
payable in equal monthly installments of $446.67, including
interest at a rate of 12.95%, through November, 2010
857
$
112,694
Less: current portion
(24,978)
Long-term portion .$.~,,_.....",=~LLt6
See auditors' report.
-8-
VETERANS SUPPORT ORGANIZATION
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2010
NOTE 3 - TEMPORARILY RESTRICTED NET ASSET
As of September 30,2010, the Organization's temporarily restricted net assets of $34,141 were released from
restriction when used in full for the operation of the Organization's transitional housing program referred to through
solicitation literature as Veterans New Life Haven. As of September 30,2010 there were no temporarily restrIcted
net assets.
NOTE 4 - RELATED PARTY TRANSACTIONS
During 2010, the Organization entered Into an agreement to co-purchase an interest in a limIted liability company
(the Company) (a for profit partnership) with a Board member. The Company was formed solely to own and
operate a building that will serve as corporate headquarters of the Organization and as general offices for the
board member. (See Notes 8 and 9)
NOTE 5 - OPERATING LEASES
The Organization leases commercial space throughout the states in which it operates under non-cancelable
operating lease agreements, expiring at various dates through October 2014. Rent and lease expense for the
year ended September 30,2010 was approximately $441,000.
For the year ended September 30, 2010, the Organization operated in fifteen states. Leased locatIons in some
areas served several states. During the year, the Organization entered into operating lease agreements for space
in areas in which it will operate in the next fiscal year. The following table presents detailed information about the
leased property.
OFFICE LOCATION
New York
Pennsylvania
Georgia
Texas
Virginia
Florida-ThrIft Store
South Florida
Florida
Florida
FlorIda
Texas
Florida
Texas
Tennessee
LEASE TERM
11/4/09 - 10/31/14
09/15/10 - 09/30/11
09/01/10 - 08/31/12
08/01/10 -7/31/11
09/15/10 - 08/30/12
08/01/09 - 07/31/12
06/01/10 - 5/31/12
09/01/10 - 08/31/11
11/01/09-10/31/10
06/01/10 -05/31/11
01/14/10 - 01/14/12
12/17/09 - 12/31/10
02/08/10 - 01/31/11
01/01/10 -12/31/10
See audItors' report.
-9-
EXPIRATION DATE
10/31/14
09/30/11
08/31/12
07/31/11
08/30/12
07/31/12
05/31/12
08/31/11
1 0/31/10
05/31/11
01/14/12
12/31/10
01/31/11
12/31/10
Total Monthly Payments
BASE
MONTHLY RENT
$ 11,773
1,800
1 ,400
686
1,777
5,000
2,000
1,010
260
1,000
1,500
925
1,475
1,250
. _ 3 L8.5j;~
$---
VETERANS SUPPORT ORGANIZATION
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2010
NOTE 5 - OPERATING LEASES (continued)
Future minimum lease payments under non-cancelable operating leases are as follows:
Years Ending
September 30,
2011
2012
2013
2014
2015
Amount
$ 339,597
$ 248,223
$ 141,276
$ 141,276
$ 11,773
The organization also has several locations that are operated out of commercial space which are on a month-to-
month basis for the use of the space. Total rent for these locations was approximately $3,300 per month for the
fiscal year ended September 30, 2010.
NOTE 6 - SUBSEQUENT EVENTS
Events that occur after the balance sheet date but before the financial statements are available to be issued must
be evaluated for recognition and disclosure. The effects of subsequent events that provide evidence about
conditions that existed at the balance sheet date are recognized in the accompanying financial statements.
Subsequent events which provide evidence about conditions that occurred after the balance sheet date require
disclosure in the accompanying notes. Management evaluated the activity of the Company through February 19,
2011 and concluded that no subsequent events have occurred that would require recognition in the financial
statements or disclosure in the notes to the financial statements.
NOTE 7 - PRIOR PERIOD ADJUSTMENT
In the previous fiscal year ended September 30, 2009, fixed assets were overstated by $564. The effect of this
overstatement was to increase unrestricted net assets by $564. The adjustment made to beginning unrestricted
net assets of $564 made for the prior year correctly states the beginning balance of unrestricted net assets. The
adjustment had no effect on operating activities for the current fiscal year ended September 30, 2010.
Note 8 - FAIR VALUE OF INVESTMENTS
The Organization's investments are reported at fair value in the accompanying statement of net assets.
September 30.2010
Quoted Prices
In Active Markets
For Identical
Assets
(Level 1)
Fair
Value
Investment in Limited Liability Company
49,947
49,947
Statement of Financial Accounting Standards 157, Fair Value Measurements establishes a fair value hierarchy
that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three
broad levels: Level I inputs consist of unadjusted quoted prices in active markets for identical assets and have the
highest priority, and Level 3 inputs have the lowest priority.
See auditors' report.
-10-
VETERANS SUPPORT ORGANIZATION
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2010
Note 8 - FAIR VALUE OF INVESTMENTS (continued)
The Organization uses appropriate valuation techniques based on available inputs to measure the fair value of its
investments. When available, the Organization measures fair value using Level 1 inputs because they generally
provide the most reliable evidence of fair value.
The fair value of the Organization's investment is based on quoted net asset values of investments held by the
Organization at September 30,2010.
Note 9 -INVESTMENTS
The fair market value (FMV) at September 30, 2010 is as follows:
Description of Investment
2010
FMV
$ ______~9,94L
Limited Liability Company
See auditors' report.
-11-