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Registration Forms www.sunbiz.org - Department of State Page 1 of2 Home Contact Us E-Filing Services Document Searches Forms Help Previous on List Next on List Return To List IEntity Name Search No Events No Name History Detail by Entity Name 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. Previous on List Next on List Return To List IEntity Name Search No Events No Name History I Home I Contact us I Document Searches I E-Filinq Services I Forms I Help I 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 qc;q--S o~- 3as { 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-