Transcript
STARLIGHT CHILDREN’S FOUNDATION GLOBAL OFFICE Financial Statements December 31, 2013 (With Independent Auditors’ Report Thereon)
STARLIGHT CHILDREN’S FOUNDATION GLOBAL OFFICE Financial Statements December 31, 2013 Table of Contents
Page Independent Auditors’ Report
1
Statement of Financial Position
3
Statement of Activities
4
Statement of Functional Expenses
5
Statement of Cash Flows
6
Notes to Financial Statements
7
KPMG LLP Suite 700 20 Pacifica Irvine, CA 92618-3391
Independent Auditors’ Report
The Board of Directors Starlight Children’s Foundation: Report on the Financial Statements We have audited the accompanying financial statements of Starlight Children’s Foundation (Global Office), which comprise the statement of financial position as of December 31, 2013, and the related statements of activities, functional expenses, and cash flows for the year then ended, and the related notes to the financial statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Starlight Children’s Foundation (Global Office) as of December 31, 2013, and the changes in its net assets and its cash flows for the year then ended in accordance with U.S. generally accepted accounting principles.
KPMG LLP is a Delaware limited liability partnership, the U.S. member firm of KPMG International Cooperative (“KPMG International”), a Swiss entity.
Emphasis of Matter As discussed in note 8 to the financial statements, the Foundation has disclosed certain financial information about unconsolidated domestic chapters which is unaudited. Our opinion is not modified with respect to this matter.
June 19, 2014 Los Angeles, California
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STARLIGHT CHILDREN’S FOUNDATION GLOBAL OFFICE Statement of Financial Position December 31, 2013 Assets Cash and cash equivalents Pledges receivable Inventory Prepaid expenses and other assets Property and equipment (net) Total assets
$
4,219,834 174,697 92,498 599,802 419,343
$
5,506,174
$
533,329 108,722
Liabilities and Net Assets Liabilities: Accounts payable and accrued liabilities Deferred revenue Total liabilities
642,051
Net assets: Unrestricted Temporarily restricted
4,573,327 290,796
Total net assets
4,864,123
Total liabilities and net assets
$
See accompanying notes to financial statements.
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5,506,174
STARLIGHT CHILDREN’S FOUNDATION GLOBAL OFFICE Statement of Activities Year ended December 31, 2013
Unrestricted Revenue and support: Special events: Gross receipts Less direct benefit to donors
$
Temporarily restricted
Total
574,599 (83,341)
— —
574,599 (83,341)
491,258
—
491,258
Contributed goods, services and use of facilities Contributions Revenue from related parties Miscellaneous Net assets released from restrictions
1,359,260 4,022,247 254,123 11,831 294,324
— 186,942 — — (294,324)
1,359,260 4,209,189 254,123 11,831 —
Total revenue and support
6,433,043
(107,382)
6,325,661
4,636,853 594,716 371,341
— — —
4,636,853 594,716 371,341
5,602,910
—
5,602,910
830,133
(107,382)
722,751
3,743,194
398,178
4,141,372
4,573,327
290,796
4,864,123
Net special events revenue
Expenses: Program services Management and general Fundraising Total expenses Change in net assets Net assets – beginning of year Net assets – end of year
$
See accompanying notes to financial statements.
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STARLIGHT CHILDREN’S FOUNDATION GLOBAL OFFICE Statement of Functional Expenses Year ended December 31, 2013
Starlight Fun Centers Advertising Bad debt expense Bank charges Depreciation Donated professional services Donated materials and supplies Donated use of facilities Equipment for program use Equipment rental and repair Facilities rent and parking Fees Grants to affiliates Impairment loss Insurance Membership dues Miscellaneous Office supplies Regulatory and other renewal fees Outside IT Services Postage, shipping and delivery Printing and publications Professional services Renovation expense – Starlight Sites Salaries and employee benefits Telephone Travel and automobile Total functional expenses
Starlight Wish Lists
Starlight Tablets
Program services Starbright Great World Escapes
Starlight Sites
Other programs
Total program services
Supporting services Management and general Fundraising
Total
$
849 — — 43,335 16,058 21,768 43,001 735,423 73,172 8,306 2,722 — — 12,663 4,058 2,241 8,048 1,727 65,167 99,132 5,942 13,355 — 550,859 9,387 9,961
560 — — 28,562 547,424 38,012 28,342 33,028 1,811 5,474 2,206 — — 8,346 2,674 1,541 5,304 1,138 76,114 1,064 3,435 8,802 — 331,792 6,187 6,565
136 — — 6,939 2,571 899 6,886 145,421 440 1,330 436 — — 2,028 650 359 2,390 277 10,436 8,701 835 2,139 — 80,612 1,503 1,595
195 — — 9,946 22,138 531 9,869 — 630 1,906 716 — — 2,906 1,026 534 1,847 396 61,020 398 1,196 4,165 — 271,287 2,154 3,550
299 — — 15,241 5,648 297,237 15,124 — 966 4,498 970 — — 4,454 1,427 2,900 3,070 607 22,920 1,008 1,833 4,697 — 217,580 3,301 3,683
77 — — 3,928 1,456 210 3,898 — 249 753 247 — — 1,148 368 3,336 729 157 5,907 146 639 6,461 79,468 45,631 851 903
164 — — 8,387 28,155 448 8,322 — 532 1,608 612 160,096 — 3,409 785 735 1,558 451 13,064 1,186 1,009 2,585 — 97,429 1,817 1,928
2,280 — — 116,338 623,450 359,105 115,442 913,872 77,800 23,875 7,909 160,096 — 34,954 10,988 11,646 22,946 4,753 254,628 111,635 14,889 42,204 79,468 1,595,190 25,200 28,185
601 1,000 19,042 30,667 11,364 1,550 30,431 — 1,944 5,411 1,926 — 36,298 8,961 2,871 1,586 5,695 1,222 26,682 1,142 3,689 97,269 — 292,015 6,614 6,736
339 — — 15,274 5,660 37,814 15,156 — 1,024 2,695 12,355 — — 4,463 1,430 18,777 2,837 609 16,989 861 8,436 74,530 — 145,441 3,294 3,357
3,220 1,000 19,042 162,279 640,474 398,469 161,029 913,872 80,768 31,981 22,190 160,096 36,298 48,378 15,289 32,009 31,478 6,584 298,299 113,638 27,014 214,003 79,468 2,032,646 35,108 38,278
$
1,727,174
1,138,381
276,583
396,410
607,463
156,562
334,280
4,636,853
594,716
371,341
5,602,910
See accompanying notes to financial statements.
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STARLIGHT CHILDREN’S FOUNDATION GLOBAL OFFICE Statement of Cash Flows Year ended December 31, 2013 Cash flows from operating activities: Change in net assets Adjustment to reconcile change in net assets to net cash provided by operating activities: Donated property and equipment Depreciation and amortization Bad debt expense (Increase) decrease in: Contributions and pledges receivable Related party receivables Inventory Prepaid expenses and other assets Increase (decrease) in: Accounts payable and accrued liabilities Related party payables Deferred revenue
$
722,751 (70,290) 162,279 1,000 5,799 800 (9,904) 257,377 57,855 (18,283) (256,192)
Net cash provided by operating activities
853,192
Cash flows from investing activities: Purchases of property and equipment
(501,162)
Net cash used in investing activities
(501,162)
Net increase in cash and cash equivalents
352,030
Cash and cash equivalents – beginning of year
3,867,804
Cash and cash equivalents – end of year
$
See accompanying notes to financial statements.
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4,219,834
STARLIGHT CHILDREN’S FOUNDATION GLOBAL OFFICE Notes to Financial Statements December 31, 2013
(1)
Organization Since 1982, Starlight Children’s Foundation has dedicated itself to improving the life and health of kids and families around the world. For 32 years, Starlight has grown into a leading global charity partnering with innovators in healthcare, entertainment, and technology to create a unique blend of family centered services from hospital to home. Today, Starlight partners with healthcare facilities and major pediatric hospitals around the world, serving millions of children every year.
Starbright World online community: The first-ever private social network for teens with chronic and life-threatening medical conditions, and their siblings. Members are able to connect globally with others experiencing similar medical journeys.
Starlight Fun Centers mobile entertainment units: Equipped with the latest gaming system that provides bedside entertainment and bring the healing power of play to pediatric patients. For children facing surgery, enduring long outpatient treatments or fighting loneliness after hospital visiting hours have ended, Fun Center units provide a comforting break and fun distraction.
Starlight Tablets: Starlight Tablets are a critical resource for healthcare professionals to support the ongoing needs of kids while in the hospital. Starlight Tablets are iPads with six of Starlight’s award-winning online educational programs pre-loaded on the devices and a connection to Starbright World. Feedback from Child Life Specialists and other healthcare experts indicates that having a Starlight Tablet allows them to deliver superior patient care.
Starlight Sites: A Starlight Site is a beautifully designed, inviting hospital environment created to support the healing of pediatric patients during their hospital stay. Since 1990, Starlight has been transforming designated areas of sterile hospital environments into colorful, entertaining oases that can be enjoyed by young patients and their families. These playrooms, teen lounges, and playgrounds offer a variety of diversions, including video games, computers, toys, crafts, music, and best of all, the company of other children.
Starlight Wish Lists: The world’s first technology platform that allows everyday philanthropists to improve pediatric care, one dollar at a time. This cutting edge technology platform enables donors to fill specific unmet needs directly and efficiently. This platform simplifies philanthropy by connecting donors with partner facilities to fulfill critical needs in pediatric care. Wish Lists were launched in July, 2013. More than $275,000 in support was provided through the Wish List program during its six months of operation at December 31, 2013.
Starlight Children’s Foundation provides ongoing support to children, parents and siblings throughout the United States of America through its Global Office located in Los Angeles, California. Two territories are operated through a domestic chapter: Midwest and NY*NJ*CT. Each chapter is independently governed by a Board of Directors operating under Starlight’s standards and is responsible for its own fundraising, financial reporting and related tax filing obligations. Chapter Agreements entered into between the U.S. Chapters and Starlight Children’s Foundation provide for common purposes and policy direction. The Chapter Agreements also provide Starlight Children’s Foundation with a security interest in the assets of the U.S. Chapters (see note 8). 7
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STARLIGHT CHILDREN’S FOUNDATION GLOBAL OFFICE Notes to Financial Statements December 31, 2013
The Starlight Children’s Foundation previously operated through three other chapters in the MidAtlantic, Colorado and Northwest. During 2013 and through the first part of 2014, the individual board of directors of each of these chapters officially voted to dissolve the respective corporations. The states previously served by these chapters are now served by the Global Office. Starlight Children’s Foundation also provides ongoing support to children, parents and siblings throughout the United Kingdom, Canada and Australia through international affiliates (International Affiliates). Affiliate Agreements entered into between each International Affiliate and Starlight provide for common purposes and policy direction (see note 8). The accompanying financial statements were prepared for the purpose of presenting the separate financial information of Starlight Children’s Foundation (Global Office) (referred to herein as the Foundation). The Foundation has elected not to consolidate the International Affiliates or U.S. Chapters’ financial results into the accompanying financial statements, based on Accounting Standards Codification (ASC) 958-810-25, Consolidation. (2)
Summary of Significant Accounting Policies (a)
Basis of Presentation The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles.
(b)
Net Assets The Foundation’s net assets and changes therein are classified and reported as follows:
Unrestricted. Net assets that are not subject to restrictions imposed by donors or law. The Foundation has $4,573,327 of unrestricted net assets at December 31, 2013.
Temporarily Restricted. Net assets subject to restrictions imposed by donors or law that may be met either by actions of the Foundation or the passage of time. When a donor restriction expires, that is, when a stipulated time restriction ends or the purpose of the restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. The Foundation reports restricted contributions whose restrictions are met in the same reporting period as unrestricted contributions. The Foundation has $290,796 in temporarily restricted net assets at December 31, 2013 (see note 2(d) and note 6).
Permanently Restricted. Net assets subject to donor-imposed restrictions that the principal be maintained in perpetuity. Generally, the donors of these assets permit the Foundation to expend all of the income (or other economic benefits) derived from the donated assets. The Foundation has no permanently restricted net assets at December 31, 2013.
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STARLIGHT CHILDREN’S FOUNDATION GLOBAL OFFICE Notes to Financial Statements December 31, 2013
(c)
Cash and Cash Equivalents The Foundation considers all highly liquid debt instruments purchased with original maturities of three months or less to be cash and cash equivalents. The carrying value of cash and cash equivalents at December 31, 2013 approximates its fair value. The Foundation maintains its cash, cash equivalents and investments in bank deposit accounts and other investment accounts, which, at times, may exceed federally insured limits. The Foundation has not experienced any losses in such accounts. As of December 31, 2013 the Foundation has $4,219,834 in cash and cash equivalents.
(d)
Contributions and Pledges Receivable Contributions, including pledges, representing unconditional promises to give are recorded at estimated fair value, and recognized as revenue in the period received. The Foundation reports unconditional contributions as restricted support if they are received with donor stipulations that limit the use of the donated assets. At December 31, 2013, none of the pledges receivable includes restricted support. Total pledges receivable were $174,697 which are expected to be collected in their entirety within one year from December 31, 2013.
(e)
Inventory Inventory includes Starlight tablets and videogame players, monitors and other electronics that make up the Starlight Fun Centers. Other inventory includes comfort kit back packs and donated tickets and other materials collected for distribution through the Foundation’s programs. Purchased inventory is stated at cost. Donated inventory is recorded at estimated fair value at the time of donation. The Foundation reviews the carrying value of its inventory for possible impairment whenever events or changes in circumstances indicate that the fair value may have declined since it was originally acquired. An impairment loss is recognized when the fair value of the inventory is lower than the carrying amount, in which case a write-down is recorded to reduce the related asset to its estimated fair value. An impairment loss of $36,298 was recognized during the year ended December 31, 2013 for donated materials and supplies.
(f)
Prepaid Expenses and Other Assets Prepaid expenses and other assets primarily include a prepayment to Nintendo of America of $442,784 for Starlight Fun Centers and prepaid operating expenses and insurance of $92,443.
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STARLIGHT CHILDREN’S FOUNDATION GLOBAL OFFICE Notes to Financial Statements December 31, 2013
(g)
Property and Equipment Property and equipment having a useful life of more than one year are recorded at cost if purchased. Donated assets are capitalized at the estimated fair value at the date of receipt and restrictions are released once the asset has been placed into service. Depreciation is computed on the straight-line basis over the estimated useful lives of the related assets. Maintenance and repair costs are charged to expenses as incurred. Property and equipment are capitalized if the cost of an asset is greater than or equal to $5,000. The estimated useful lives of property and equipment are as follows:
Software and computers Furniture and fixtures Office equipment
3 Years 7 Years 5 Years
Leasehold improvements are amortized on the straight-line basis over the term of the lease or the estimated useful life, whichever is shorter. (h)
Long-Lived Assets The Foundation reviews the carrying values of its long-lived assets for possible impairment whenever events or changes in circumstances indicate that the book value of the assets may not be recoverable. An impairment loss is recognized when the sum of the undiscounted future cash flows is less than the carrying amount of the asset, in which case a write-down is recorded to reduce the related assets to its estimated fair value. No impairment losses were recognized during the year ended December 31, 2013.
(i)
Deferred Revenue Deferred revenue is primarily related to advances received by the Foundation from certain affiliates for the future purchase of Fun Centers. As the Fun Centers had not been shipped by the Foundation to the affiliates as of December 31, 2013, the advances were recorded as deferred revenue at year end (see note 8).
(j)
Contributed Goods, Services, and Use of Facilities Contributions of donated noncash assets are recorded at fair value in the period received. Contributions of donated services that create or enhance nonfinancial assets or that require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation, are recorded at fair value in the period received. Contributed goods generally consist of event tickets, toys, videos, DVD’s, and other tangible goods. For the year ended December 31, 2013, the Foundation received $1,359,260 of contributed goods, services and use of facilities (see note 5).
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STARLIGHT CHILDREN’S FOUNDATION GLOBAL OFFICE Notes to Financial Statements December 31, 2013
(k)
Fair Value of Financial Instruments Fair Value Determination The fair value of the Foundation’s financial instruments as of December 31, 2013, represents management’s best estimates of the amounts that would be received to sell those assets in an orderly transaction between market participants at that date. Those fair value measurements maximize the use of observable inputs. However, in situations where there are little, if any, observable inputs, management’s own judgments about the assumptions of market participants were used in pricing the asset. Although the Foundation uses its best judgment in determining the fair value of financial instruments, there are inherent limitations in any methodology. Therefore, the values presented herein are not necessarily indicative of the amount the Foundation could realize in a current transaction. Future confirming events could affect the estimates of fair value and could be material to the financial statements. These events could also affect the amount realized upon liquidation of the investments. Fair Value Hierarchy The Foundation’s fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets (Level I measurements) and the lowest priority measurements involving significant unobservable inputs (Level III measurements). The three levels of the fair value hierarchy are as follows:
Level I inputs are quoted prices (unadjusted) in active markets for identical assets that the Foundation has the ability to access at the measurement date.
Level II inputs are inputs other than quoted prices included within Level I that are observable for the asset, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other observable inputs that can be corroborated by observable market data.
Level III are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset.
The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest-level input that is significant to the fair value measurement in its entirety. Due to the short-term nature of cash equivalents, receivables, other assets, accounts payable and accrued liabilities, fair value approximates carrying value. (l)
Income Taxes The Foundation is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Service Code and corresponding California provisions. However, the Foundation remains subject to income taxes on any net income that is derived from a trade or business, regularly carried on and not in furtherance of the purpose for which it was granted exemption. No income tax 11
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STARLIGHT CHILDREN’S FOUNDATION GLOBAL OFFICE Notes to Financial Statements December 31, 2013
provision has been recorded as the net income, if any, from any unrelated trade or business, in the opinion of management, is not material to the financial statements taken as a whole. ASC Topic 740, Income Taxes (ASC 740), prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and provides guidance on derecognition, classification, interest and penalties, disclosure, and transition. Management believes that there are no such uncertain tax positions for the Foundation at December 31, 2013. (m)
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses as of the date and for the period presented. Actual results could differ from those estimates.
(n)
Functional Allocation of Expenses The costs of providing the Foundation’s programs and other activities have been presented in the statement of functional expenses. Indirect or shared costs are allocated among program and support services by a method that best measures the relative degree of benefit.
(3)
Property and Equipment Property and equipment at December 31, 2013 consist of the following: Software and computers Furniture and fixtures Leasehold improvements
$
621,952 26,555 74,328
Total
722,835
Less accumulated depreciation Property and equipment (net)
(303,492) $
419,343
Depreciation expense was $162,279 for the year ended December 31, 2013.
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STARLIGHT CHILDREN’S FOUNDATION GLOBAL OFFICE Notes to Financial Statements December 31, 2013
(4)
Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities at December 31, 2013 consist of the following:
Accounts payable Accrued payroll Accrued paid time off Accrued warranty reserve – fun centers Other accrued liabilities Total accounts payable and accrued liabilities
$
115,013 31,220 45,746 242,581 98,769
$
533,329
The $242,581 warranty reserve relates to Fun Centers purchased from Nintendo of America. The Foundation is required to repair Fun Centers donated to health care facilities for 3 years after the units are distributed to the respective facilities. (5)
Contributed Goods, Services and Use of Facilities Contributed goods, services, and use of facilities revenues during the year ended December 31, 2013 are as follows:
Donated professional services Donated materials and supplies Donated use of facilities Total (6)
$
778,395 419,836 161,029
$
1,359,260
Temporarily Restricted Net Assets Temporarily restricted net assets are comprised for the following as of December 31, 2013:
Purpose restrictions Time restrictions
(7)
$
146,644 144,152
$
290,796
Defined Contribution Pension Plan The Foundation maintains a 403(b) defined contribution pension plan with no matching contributions.
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STARLIGHT CHILDREN’S FOUNDATION GLOBAL OFFICE Notes to Financial Statements December 31, 2013
(8)
Related Party Disclosures As of and for the year ended December 31, 2013, the combined U.S. Chapters’ financial results (excluding the Foundation, the financial results of which are presented in the accompanying financial statements) were as follows:
Not Covered by Accompanying Independent Auditors’ Report (unaudited) Total assets
$
4,075,784
Total liabilities
$
263,331
Total net assets
$
3,812,453
Total revenues
$
6,065,454
Total expenses
$
6,602,360
The accounts of the Foundation’s International Affiliates are not included in the accompanying 2013 financial statements. The following table summarizes certain financial information from the audited (by other auditors) financial statements of the International Affiliates.
Not Covered by Accompanying Independent Auditors’ Report United Kingdom Affiliate as of and for the year ended March 31, 2013 (GEP)
Australia Affiliate as of and for the year ended December 31, 2013 (AUS)
Canada Affiliates Quebec Ontario Affiliate as Affiliate as of and for the of and for the year ended year ended March 31, September 30, 2013 (CAD) 2013 (CAD)
Total assets
$
12,853,742
£
9,908,812
$
550,054
$
2,434,032
Total liabilities
$
2,064,514
£
303,099
$
222,265
$
646,746
Net assets
$
10,789,228
£
9,605,713
$
327,789
$
1,787,286
Total revenues
$
26,300,409
£
9,946,947
$
1,320,581
$
4,246,579
Total expenses
$
25,607,020
£
10,514,013
$
1,448,538
$
4,027,769
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STARLIGHT CHILDREN’S FOUNDATION GLOBAL OFFICE Notes to Financial Statements December 31, 2013
The Foundation provided Starlight Fun Centers to its U.S. chapters during the year ended December 31, 2013. During this fiscal period, the Foundation received revenue from the U.S. chapters totaling $68,123. Of that amount, $64,800 were for Starlight Fun Centers. There were no receivables or payables to the U.S. Chapters at December 31, 2013. The Foundation had received $36,000 from the New York Chapter as of December 31, 2013 related to future Fun Center purchases which is included in deferred revenue as of December 31, 2013. The Foundation also provides Starlight Fun Centers to its Canadian affiliate. During this fiscal period, the Foundation received revenue for Starlight Fun Centers from the Canadian affiliate totaling $180,000. The Foundation provided services related to Starbright World to the Australian affiliate and received revenue from the Australian affiliate of $6,000. Receivables from and payables to International Affiliates were both zero at December 31, 2013. The Foundation had received $72,000 from its Canadian affiliate as of December 31, 2013 related to future Fun Center purchases which is included in deferred revenue as of December 31, 2013. (9)
Commitments The Foundation leases certain facilities and equipment under long-term operating lease agreements that expire through December, 2016. Future minimum lease payments for leases that have a remaining noncancelable term in excess of one year at December 31, 2013 are as follows.
2014 2015 2016 Total noncancelable lease commitments
$
6,401 5,724 5,717
$
17,840
Rent expense for the period January 1, 2013 to December 31, 2013 was $12,940. The Foundation also has certain commitments to Nintendo of America for the purchase of Fun Centers totaling approximately $333,851 as of December 31, 2013. (10) Subsequent Events The Foundation has evaluated events and transactions occurring subsequent to the statement of financial position date of December 31, 2013 for items that should potentially be recognized or disclosed in these financial statements. The evaluation was conducted through June 19, 2014, the date these financial statements were available to be issued.
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