Northern California Community Blood Bank
A Non-Profit Corporation
Statement of Cash Flow
For the Year Ended June 30, 2006
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Financial Resources Provided by Operations
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Net Change to Unrestricted Assets
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$389,025
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Non-cash Revenue and Expense Adjustments
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Depreciation
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168,843
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Free Blood Services Accrued
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64,413
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Free Blood Services Utilized
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(17,543)
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Change in Accounts Receivable
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242,024
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Change in Inventory
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28,514
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Change in Prepaid Expenses
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4,584
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Change in Accounts Payable
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(63,162)
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Change in Accrued Liabilities
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6,057
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Financial Resources Provided by Operations
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$822,755
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Financial Resources Used by Investing Activities
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Purchase of Building and Improvements
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(24,024)
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Purchase of Office Furniture and Equipment
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(54,086)
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Purchase of Medical and Lab Equipment
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(251,479)
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Purchase of Transportation Equipment
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(139,753)
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Financial Resources Used by Investing Activities
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(469,342)
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Net Increase in Cash
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353,413
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Cash at Beginning of Year
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736,067
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Cash at End of Year
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$1,089,480
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Interest Paid for Year
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$
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0
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See Accompanying Notes
Notes to Financial Statement
1.
Organization
The Northern
California Community Blood Bank (The Blood Bank) is a not-for-profit
corporation, governed by volunteers. The
organization’s mission is to provide a safe and adequate supply of blood and
other blood services to patients, physicians and hospitals.
Their office is
located in Eureka, California.
In addition to this facility, The Blood Bank operates three blood
mobiles for community collection.
2.
Significant
Accounting Policies
The Blood Bank uses
the accrual basis of accounting.
Acquisitions of
goods or services which benefit more than one year are capitalized and
amortized over their estimated useful lives by the straight-line method.
Inventories and
cost of supplies are stated at cost on a first-in, first-out basis and verified
by physical count at the end of each year.
Blood and Blood Product inventories are computed using a production cost
approach.
3.
Land Buildings and Equipment
Land Buildings
and Equipment are carried at Cost.
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Land and Land Improvements
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$
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14,371
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2520 Buildings and Improvements
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1,181,536
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2524 Buildings and Improvements
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165,129
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Medical and Lab Equipment
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777,671
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Office Furniture and Equipment
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140,016
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Blood Mobiles and Transportation
Equipment
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549,991
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Total
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$
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2,828,714
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4.
Income
Taxes
The Blood Bank
is a not-for-profit organization that is exempt from income tax under Internal
Revenue Code 501 (c)(3) and did not incur any unrelated business income, therefore,
no provision for income taxes are required.
5.
Related
Party Transactions
The Blood Bank
conducts business with members of the board of directors. The transactions consist of selling blood and
blood products to board member organizations and purchasing supplies from board
member businesses. The Blood Bank sold
blood and blood products to and has accounts receivable balances from the
following related parties.
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Sales
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Balance Due
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St. Joseph Hospital
– Surgical
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$
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8,614
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$
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200
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St.
Joseph Hospital – General Hospital
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350
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0
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St. Joseph Hospital
– Lab
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1,153,664
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109,942
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Redwood Memorial
Hospital
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105,089
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|
8,889
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The Blood Bank also
purchased supplies from Times Printing in the amount of $9,899.
The Blood Bank
also does banking with Umpqua Bank.
6.
Free
Blood Services
The Blood Bank has agreed to
provide free blood services to hospitals.
The amount is calculated using an agreed upon formula. The amounts must be used within 13 months of
the fiscal year end. Accrual and
balances at June
30, 2006 are:
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Accrued
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Amount
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Balance
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June
30, 2005
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$
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92,001
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$
|
74,458
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June
30, 2006
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|
64,413
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|
64,413
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7.
Investments
Investments as of June 30, 2006,
consist of the following:
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Series E Savings Bonds
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$
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300
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Stancorp Stock
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1,470
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Total
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$
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1,770
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8.
Estimates
The preparation of financial statements
in conformity with generally accepted accounting principles requires management
to make estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results
could differ from those estimates.
9.
Retirement
The Blood Bank
maintains a 403(b) tax deferred annuity plan with Lincoln National Life
Insurance Company. The program requires
contributions by both the employer and the employee if election to be covered
is made. Employer contributions are
based on the length of service and amount of employee elective contributions
ranging from 1% to 6% of the employees annual salary. All contributions are 100% vested.
10.
Cash
and Cash Equivalents
For purposes of the
statement of cash flows, the Blood Bank considers all highly liquid investments
with an initial maturity of one year or less to be cash equivalents. Investments in savings bonds and stock
securities are not considered cash equivalents as these funds are not readily
available for operation use.
11.
Contributed
Services
Non-professional contributed
services and blood donations have not been recorded in these financial
statements.
12.
Basis
of Presentation
The Blood Bank
reports its financial statements in accordance with Statement of Financial
Accounting Standards (SFAS) No. 117, “Financial Statements of Not-for Profit
Organizations.” Under SFAS No. 117, the
Agency is required to report information regarding its financial position and
activities according to three classes of net assets:
Unrestricted net assets are the part of
net assets of the Organization that is neither permanently restricted nor
temporarily restricted by donor-imposed stipulations.
Temporarily restricted net assets are
those whose use by the Organization have been limited by donors to a specific
time period or purpose.
Permanently restricted net assets have
been restricted by donors to be maintained by the Organization in perpetuity.
The Blood Bank
has no temporarily restricted or permanently restricted net assets.
13.
Concentrated
Risk
The Blood Bank
conducts business with two hospitals and the American Red Cross LA/Pomona that
comprise over 69% of its annual products and services sold. These hospitals and their related percentage
of sales are:
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St. Joseph Hospital
|
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Annual Sales
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$1,267,717
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26%
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Stanford Hospital
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|
Annual Sales
|
1,035,903
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21%
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ARC
LA/Pomona
|
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Annual Sales
|
1,094,998
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22%
|
The loss of any of
the above organizations would have a significant impact on the operations of
the Blood Bank.
The Blood Bank
holds cash deposits in excess of federal insured amounts with Umpqua Bank,
Redwood Capital Bank and Patelco Credit Union.
14.
Accrued
Paid Time Off
The Blood Bank
maintains a Paid Time Off (PTO) program which combines vacation, holiday and
sick benefits into a single PTO bank.
All regular and part time employees are eligible and accruals are based
on lengths of service.
15.
Bad
Debts
The Blood Bank
uses an allowance for doubtful accounts.
Based on prior years experience, management has determined that the
allowance for doubtful accounts should be zero.
Any debts or bad check realized above this level are immediately
recognized as an expense.
