Families First Indiana Inc

“Families first established a custodial fund to provide services for certain individual clients requiring assistance with money management. The custodial fund consists of cash received by families first to be held, or disbursed, on behalf of these clients from whom the funds were received. Families first maintains a general bank checking account and separate sub ledgers for each of these clients and makes disbursements from these accounts in payment of authorized expenses incurred by these clients. Custodial funds held for others as of march 31, 2021 are $2,126, and was transferred to firefly children and family alliance as a part of the aquisition effective april 1, 2021.”

“Effective april 1, 2021 the endowment was transferred to firefly children and family alliance. Families first indiana maintains a permanently restricted endowment and three board-designated quasi-endowments, which are maintained as follows: return objectives and risk parameters - families first indiana has adopted investment and spending policies for endowment assets that provides a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasing power of the endowment assets. Endowment assets include those assets of donor-restricted funds that families first indiana must hold in perpetuity, as board - designated funds. Under this policy, as approved by the board of directors, the endowment assets are invested in a manner that is intended to generate a total return and maintain and grow the purchasing power and support at an annual 5% spending rate while assuming a moderately aggressive level of investment risk. Strategies employed for achieving objectives - the purpose of the endowment is to encourage donors to make substantial long-term gifts to families first indiana. In doing so, the endowment fund is able to provide a secure long-term source of funds to ensure the stability of our services, many of which are long-term in nature and not easily withdrawn from clients. Spending policy and how investment objectives relate to spending policy - families first incorporated budgets to achieve its objectives. During the budgeting process, investment policies are incorporated into the budgeted programs to ensure that funding for the programs adhere to spending policies of the investment and also the objective of the programs they are intended to support.”

“Families first is exempt from federal and state income taxes under section 501(c)(3) of the u.s. Internal revenue code. However, families first is subject to federal income tax on unrelated business income. Families first has adopted guidance with respect to accounting for uncertainty in income taxes. A tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. Families first does not have any tax benefits recorded at march 31, 2021, and does not expect that position to significantly change in the next year. Families first would recognize interest and/or penalties related to income tax matters in income tax expense, if applicable. There were no amounts accrued for interest and penalties at march 31, 2021.”

“Additional bad debt as a part of aquisition 507,125.”