THE TINY MIRACLES FOUNDATION, INC. (A NOT-FOR-PROFIT

THE PROFESSIONAL ASSOCIATES, P.C., CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS

THE TINY MIRACLES FOUNDATION, INC.(A NOT-FOR-PROFIT ORGANIZATION)

Financial Statements

Years Ended December 31, 2019 and 2018

INDEPENDENT AUDITOR'S REPORT

To the Board of Directors

The Tiny Miracles Foundation, Inc.

Darien, Connecticut

We have audited the accompanying financial statements of The Tiny Miracles Foundation, Inc. (a nonprofit organization), which comprise the statement of financial position as of December 31, 2019, 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 accounting principles generally accepted in the United States of America; 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.

Auditor’s 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 of 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 auditor’s 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 The Tiny Miracles Foundation, Inc. as of December 31, 2019, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Report on Summarized Comparative Information

We have previously audited The Tiny Miracles Foundation, Inc.’s 2018 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated May 20, 2019. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2018, is consistent, in all material respects, with the audited financial statements from which it has been derived.

The Professional Associates, P.C.Stamford, Connecticut

April 24, 2020


Statements of Financial Position

December 31, 2019 and 2018

____________________________________________________________________________________

See accompanying notes and independent auditor’s report.


2019 2018

CURRENT ASSETS

Cash and cash equivalents 646,119$ 643,951$

Investments at fair market value 78,398 -

Accounts receivable 19,693 21,188

Pledge receivable 1,250 50,000

Prepaid expenses 8,416 9,886

TOTAL CURRENT ASSETS 753,876 725,025

PROPERTY AND EQUIPMENT - NET 2,630 3,084

TOTAL ASSETS 756,506$ 728,109$

CURRENT LIABILITIES

Accounts payable and accrued expenses 3,053$ 953$

Payroll taxes payable 6,531 8,499

TOTAL CURRENT LIABILITIES 9,584 9,452

NET ASSETS

Without donor restrictions 662,396 599,822

With donor restrictions 84,526 118,835

TOTAL NET ASSETS 746,922 718,657

TOTAL LIABILITIES AND NET ASSETS 756,506$ 728,109$

LIABILITIES AND NET ASSETS

ASSETS


Statements of Activities

Year Ended December 31, 2019 withComparative Totals for the Year Ended December 31, 2018

_____________________________________________________________________________________________



2019 2018

Without Donor

Restrictions

With Donor

Restrictions Total TotalREVENUES Direct public support 144,123$ 140,250$ 284,373$ 459,427$ Donated services 2,352 - 2,352 30,500 Interest and dividend income 8,462 - 8,462 1,865 Unrealized gains on investments 5,257 5,257 Special events revenue 331,312 - 331,312 308,062 Less: Cost of direct donor benefit (65,029) - (65,029) (70,145) TOTAL REVENUES 426,477 140,250 566,727 729,709

NET ASSETS RELEASED FROM RESTRICTIONS 174,559 (174,559) - -

TOTAL REVENUES AND NET ASSETS RELEASED FROM RESTRICTIONS 601,036 (34,309) 566,727 729,709

FUNCTIONAL EXPENSES Program service 334,718 - 334,718 321,204 Management and general 67,816 - 67,816 58,135 Fundraising 135,928 - 135,928 92,349 TOTAL FUNCTIONAL EXPENSES 538,462 - 538,462 471,688

NET CHANGE IN NET ASSETS 62,574 (34,309) 28,265 258,021

NET ASSETS - BEGINNING OF YEAR 599,822 118,835 718,657 460,636

NET ASSETS - END OF YEAR 662,396$ 84,526$ 746,922$ 718,657$


Statement of Functional Expenses

Year Ended December 31, 2019

____________________________________________________________________________________________________________________________



Parent

Network

Resource

Room

Family Aid

Program

Tiny

Treasures

Total

Program

Services

Management

and General Fundraising

Total

Support

Services

Total

Expenses

Salaries and related exenses:Salaries 46,316$ 16,081$ 30,122$ 20,070$ 112,589$ 32,225$ 46,311$ 78,536$ 191,125$ Payroll taxes and benefits 5,641 1,548 3,213 2,014 12,416 2,814 4,057 6,871 19,287

Total salaries and related expenses 51,957 17,629 33,335 22,084 125,005 35,039 50,368 85,407 210,412

Other expenses:Contract services 874 874 874 874 3,496 874 45,214 46,088 49,584 Professional services 15,155 167 167 167 15,656 5,917 5,162 11,079 26,735 Program materials 11,299 7,463 75,595 30,355 124,712 - - - 124,712 Website design 691 665 717 691 2,764 691 8,634 9,325 12,089 Office expense 484 142 41 97 764 4,578 877 5,455 6,219 Postage 768 282 666 282 1,998 341 2,052 2,393 4,391 Printing 1,796 774 774 992 4,336 1,112 6,479 7,591 11,927 Telephone 535 535 535 535 2,140 815 535 1,350 3,490 Conference and training 160 - - - 160 71 - 71 231 Corporate insurance 1,163 - - - 1,163 3,083 - 3,083 4,246 Travel 2,325 - - 23 2,348 48 - 48 2,396 Rent 4,830 4,823 4,830 8,368 22,851 6,442 4,830 11,272 34,123 Public relations 5,796 4,202 3,916 2,831 16,745 229 9,072 9,301 26,046 Service charges - - - - - 619 - 619 619 Dues and subscriptions 821 571 571 571 2,534 1,944 2,269 4,213 6,747 Food 5,561 1,024 185 275 7,045 3,410 185 3,595 10,640 Donated expense - - - - - 2,352 - 2,352 2,352 Total expenses before depreciation 104,215 39,151 122,206 68,145 333,717 67,565 135,677 203,242 536,959 Depreciation 250 250 250 251 1,001 251 251 502 1,503

TOTAL EXPENSES 104,465$ 39,401$ 122,456$ 68,396$ 334,718$ 67,816$ 135,928$ 203,744$ 538,462$

Program Services Supporting Services


Statement of Functional Expenses

Year Ended December 31, 2018

_______________________________________________________________________________________________________________________



Parent

Network

Resource

Room

Family Aid

Program

Tiny

Treasures

Total

Program

Services

Management

and General Fundraising

Total

Support

Services

Total

Expenses

Salaries and related exenses:Salaries 62,440$ 21,000$ 29,141$ 22,908$ 135,489$ 23,304$ 36,547$ 59,851$ 195,340$ Payroll taxes and benefits 7,214 1,802 2,711 2,044 13,771 1,859 2,953 4,812 18,583

Total salaries and related expenses 69,654 22,802 31,852 24,952 149,260 25,163 39,500 64,663 213,923

Other expenses:Contract services 1,063 1,063 1,063 1,063 4,252 1,333 1,063 2,396 6,648 Professional services 183 183 183 183 732 6,933 16,028 22,961 23,693 Program materials 3,668 18,123 54,712 26,101 102,604 - - - 102,604 Website design 734 734 734 734 2,936 734 7,457 8,191 11,127 Office expense 554 307 74 278 1,213 1,999 2,366 4,365 5,578 Postage 493 248 395 248 1,384 289 2,075 2,364 3,748 Printing 1,123 965 966 1,619 4,673 1,037 7,518 8,555 13,228 Telephone 465 465 465 465 1,860 465 465 930 2,790 Conference and training 218 18 18 18 272 118 - 118 390 Corporate insurance 1,167 - - - 1,167 3,004 - 3,004 4,171 Travel 1,006 - 79 - 1,085 - 220 220 1,305 Rent 4,697 4,688 4,697 6,219 20,301 6,680 4,716 11,396 31,697 Public relations 690 595 595 695 2,575 552 3,197 3,749 6,324 Service charges - - - - - 747 - 747 747 Dues and subscriptions 361 287 287 287 1,222 486 1,720 2,206 3,428 Food 2,605 1,253 215 265 4,338 3,090 579 3,669 8,007 Donated expense 5,150 5,000 5,000 5,000 20,150 5,200 5,150 10,350 30,500 Total expenses before depreciation 93,831 56,731 101,335 68,127 320,024 57,830 92,054 149,884 469,908Depreciation 295 295 295 295 1,180 305 295 600 1,780

TOTAL 94,126$ 57,026$ 101,630$ 68,422$ 321,204$ 58,135$ 92,349$ 150,484$ 471,688$

Program Services Supporting Services


Statements of Cash Flows

Years Ended December 31, 2019 and 2018

________________________________________________________________________



2019 2018

CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets 28,265$ 258,021$ Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 1,503 1,780 Unrealized gain on investments (5,257) - (Increase) decrease in operating assets: Accounts receivable 1,495 (18,500) Pledge receivable 48,750 (50,000) Prepaid expenses 1,470 1,483 Increase (decrease) in operating liabilities: Accounts payable 2,100 (4,857) Payroll taxes payable (1,968) (82) Total adjustments 48,093 (70,176) NET CASH PROVIDED BY OPERATING ACTIVITIES 76,358 187,845

CASH FLOWS FROM INVESTING ACTIVITIES

Cash paid for purchase of investments (73,141) -

Cash paid for purchase of equipment (1,049) (809)

NET CASH USED BY INVESTING ACTIVITIES (74,190) (809)

NET CHANGE IN CASH 2,168 187,036

CASH - BEGINNING OF YEAR 643,951 456,915

CASH - END OF YEAR 646,119$ 643,951$


Notes to Financial Statements


____________________________________________________________________________________


Note A - Organization

The Tiny Miracles Foundation, Inc. (“TTMF”) was incorporated on January 24, 2004 as a not-for-profit organization in the State of Connecticut. TTMF purpose is to (a) operate a network within Fairfield County, Connecticut of mentors to provide support, inspiration and encouragement to parents enduring the premature birth of a child, (b) provide educational, informational and inspirational materials to parents of premature infants through their website and in-hospital resource rooms, (c) present families preparing for their child’s homecoming with welcome and home care supplies useful for caring for their premature infants at home, (d) give financial assistance to needy families to defray the costs of caring for their premature infants, and (e) donate funds to help local hospitals obtain the best equipment, staff and educational services to improve the lives of premature infants and their families.

Note B - Summary of Significant Accounting Policies

1. Basis of Accounting.

The financial statements of TTMF have been prepared under the accrual method of accounting and accordingly reflect all significant receivables, prepaid expenses, payables and other accrued expenses. The significant accounting policies followed are described below to enhance the usefulness of the financial statements to the reader.

2. Financial Statement Presentation.

The financial statements of the Organization have been prepared on the accrual basis of accounting. The Organization reports information regarding its financial position and activities according to two classes of net assets: net assets without donor restriction and net assets with donor restriction.

Net Assets Without Donor Restriction—Net assets that are not subject to or are no longer subject to donor-imposed stipulations. The governing board has designated, from net assets without donor restrictions, net assets for an operating reserve and board-designated endowment.

Net Assets With Donor Restriction—Net assets whose use is limited by donor-imposed time and/or purpose restrictions. Some donor-imposed restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Donor-imposed restrictions are released when a restriction expires, that is, when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both.

Revenues are reported as increases in net assets without donor restriction unless use of the related assets is limited by donor-imposed restrictions. Expenses are reported as decreases in net assets without donor restriction. Other assets or liabilities are reported as increases or decreases in net assets without donor restrictions unless their use is restricted by explicit donor stipulation or by law.




____________________________________________________________________________________


Note B - Summary of Significant Accounting Policies – (continued)

3. Cash and Cash Equivalents.

Cash and cash equivalents consist of cash in interest and non-interest bearing depository accounts, a certificate of deposit and money market funds. TTMF considers all short-term investments with an original maturity of three months or less to be a cash equivalent.

4. Investments at fair value.

Investments consist of mutual funds which are adjusted to their fair market value at the Statement of Financial Position date, resulting in either an unrealized gain or loss. Investment income is recognized when earned and consists of interest and dividends. Dividends are recorded on the ex-dividend date. Purchases and sales are recorded on a trade-date basis.

5. Fair value measurements and disclosures.

Accounts Standards Codification (ASC) 820, Fair Value Measurement, clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of fair value measurements. ASC 820 defines fair value as the price to sell an asset or transfer a liability (i.e., the exit price) in an orderly transaction between market participants. Additionally, ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset developed based on market data obtained from sources independent of TTMF. Unobservable inputs are inputs that reflect TTMF'sassumptions about the assumptions market participants would use in pricing the asset based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of inputs as follows:

Level 1 -Observable inputs are unadjusted, quoted prices for identical assets or liabilities in active market at the measurement date. Level 1 securities include highly liquid U.S. Treasury securities, certain commons stocks and mutual funds.

Level 2 -Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with market data at the measurement date. Most debt securities, preferred stocks, certain equity securities, short-term investments and derivatives are model priced using observable inputs and are classified as Level 2.

Level 3 -Unobservable inputs that reflect management's best estimate of what market participants would use in pricing the asset or liability at the measurement date. Examples of Level 3 assets include investments in limited partnerships.

There are no financial assets or liabilities classified as Level 2 or 3.




____________________________________________________________________________________


Note B - Summary of Significant Accounting Policies - (continued)

6. Prepaid Expenses.

Prepaid expenses are shown net of amortization incurred during the fiscal year.

7. Contributions.

All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. Amounts received that are designated for future periods or restricted by the donor for specific purposes are reported as temporarily restricted or permanently restricted support that increases those net asset classes. When a temporary restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions.

8. Donated services and In-Kind Support.

The Organization records various types of in-kind contributions. Contributed services are recognized at fair value if the services received (a) create or enhance long-lived assets or (b) require specialized skills, are provided by individuals processing those skills, and would typically need to be purchased if not provided by donation. The Organization received contributed professional services for video production, legal fees and hosting meetings during the year ended December 31, 2019 and 2018, with a fair value on the date of donation of $2,352 and $30,500, respectively.

9. Income Taxes.

The Organization is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code. However, income from certain activities not directly related to the Organization's tax-exempt purpose is subject to taxation as unrelated business income. In addition, the Organization qualifies for the charitable contribution deduction under Section 170(b)(1)(A) and has been classified as an organization other than a private foundation under Section 509(a)(2).

10. Uncertain Tax Position.

Management has determined that the Organization does not have any uncertain tax positions and associated unrecognized benefits or liabilities that materially impact the financial statements or related disclosures. Since tax matters are subject to some degree of uncertainty, there can be no assurance that the Organization's tax returns will not be challenged by the taxing authorities and that the Organization will not be subject to additional tax, penalties, and interest as a result of such challenge. Generally, the Organization's tax returns remain open for three years for federalincome tax examination.

11. Accounts Receivable.

Accounts receivable are stated at the amount management expects to be collected. Management considers its receivables to be fully collectible; accordingly, no allowance for uncollectible accounts is required. If amounts become uncollectible, the related receivable will be charged to operations when that determination is made.




____________________________________________________________________________________



12. Capitalization and Depreciation.

Furniture and equipment are recorded at cost. Furniture and equipment are capitalized, while expenditures for maintenance and repairs are charged to expense as incurred. Upon disposal of depreciable property, the appropriate accounts are reduced by the related costs and accumulated depreciation.

Depreciation is provided for in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives of 5-7 years under the straight-line method. The estimated service life of the assets for depreciation purposes may be different than their actual economic useful lives.

13. Functional Allocation of Expenses.

The Statements of Activities reports expenses by both natural and functional classification. Certain categories of expenses are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. Costs are directly applied to the related program or supporting service category when identifiable and possible. General operating costs across nearly all natural categories are allocated on the basis of estimates of time and effort.

14. Estimates.

Management uses estimates and assumptions in preparing financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. On an ongoing basis, management evaluates the estimates and assumptions based on new information. Management believes that the estimates and assumptions are reasonable in the circumstances; however, actual results could differ from those estimates.

15. Subsequent Events Measurement Date

The Organization monitored and evaluated subsequent events for footnote disclosures or adjustments required in its financial statements for the year ended December 31, 2019 throughApril 24, 2020 the date on which financial statements were available to be issued.

In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) as a pandemic. COVID-19 has caused significant disruption in the national and global economy. TTMF’s operating activities, liquidity, and cash flows may be adversely affected by this global pandemic. While the disruption is currently expected to be temporary, there is uncertainty related to the duration. Therefore, while TTMF expects this matter to negatively impact the organization, the related financial impact cannot be reasonably estimated at this time.




____________________________________________________________________________________



16. Comparative Financial Information.

The financial statements include certain prior-year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the Organization’s financial statements for the year ended December 31, 2018, from which the summarized information was derived.

Note C - Cash and Cash Equivalents

The Organization's cash and cash equivalents are as follows at December 31, 2019 and 2018:

2019 2018

Cash 524,541$ 553,786$ Board designated endowment 30,425 50,026

Money market funds 91,153 40,139646,119$ 643,951$

Note D - Investments at Fair Value

Investments at December 31, 2019 at fair value are summarized below:

Cost Fair Value

Mutual Funds 73,141$ 78,398$

The fair value of the investments detailed above is determined by reference to market quotations at December 31, 2019.

TTMF’s holdings in equities consist entirely of mutual funds which are carried at their aggregate market values as determined by the quoted market prices at the end of each business day. TTMFincludes these prices in the amounts disclosed in Level 1 of the hierarchy. The following tables present TTMF's assets at December 31, 2019 that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy.

Total

Quoted Prices in

Active Markets

for Identical

Assets (Level 1)

Significant

Other

Observable

Inputs (Level

2)

Significant

Unobservable

Inputs (Level

3)

Mutual Funds 78,398$ 78,398$ -$ -$




____________________________________________________________________________________


Note E - Concentration of Credit Risk

Financial instruments, which potentially subject TTMF to concentration of credit risk, consist primarily of cash and cash equivalents. At times, TTMF has cash deposits at financial institutions which exceed the Federal Deposit Insurance Corporation (FDIC) insurance limits.

Note F - Property and Equipment

The following is a summary of property and equipment, at cost, less accumulated depreciation, at December 31, 2019 and 2018:

2019 2018

Equipment 12,668$ 11,619$ Furniture and fixtures 2,786 2,786Leasehold Improvements 4,212 4,212

19,666 18,617 Less accumulated depreciation 17,036 15,533

Property and equipment - net $ 2,630 $ 3,084

Depreciation expense amounted to $1,504 and $1,780 for the years ended December 31, 2019 and 2018, respectively.

Note G - Net Assets

Net assets without donor restrictions at December 31, 2019 and 2018, is comprised of the following:

2019 2018Undesignated 553,573$ 549,796$ Board-designated for operations 108,823 50,026

662,396$ 599,822$

Net assets with donor restrictions at December 31, 2019 and 2018, is comprised of the following:

2019 2018Purpose-restricted net assets 83,276$ 68,835$ Time-restricted net assets 1,250 50,000

84,526$ 118,835$

Note H - Effect of Current Economic Conditions on Contributions

The Organization depends heavily on contributions and grants for its revenue. The ability of theOrganization’s contributors and grantors to continue giving amounts comparable with prior years maybe dependent upon current and future economic conditions and the continued deductibility for incometax purposes of contributions and grants to the Organization. While the Organization’s Board ofDirectors believes that economic conditions such as tax deductibility are stable enough for theOrganization to continue its programs, its ability to do so and the extent to which it continues may bedependent on the above factors (See Note B.15).




____________________________________________________________________________________


Note I - Board-designated Endowment

As of December 31, 2019, the Board of Directors had designated $108,823 of unrestricted net assets as a general endowment fund to support the mission of the Organization. Since that amount resulted from an internal designation and is not donor-restricted, it is classified and reported as unrestricted net assets. The Organization has a holding policy for an initial period of three years, neither the principal nor the interest of the Fund may be used. Subsequent to the three-year period, interest may be withdrawn based upon a majority vote of a quorum of the Board. In the event of extraordinarycircumstances, the capital may be used based upon a super majority vote of 75% of a quorum of the Board.

Composition of and changes in endowment net assets for the year ended December 31, 2019 were as follows:

Board-designated endowment net assets,beginning of year 50,026$

Contribution 50,000 Investment income 3,540 Net appreciatoin 5,257

Board-designated endowment net assets,end of year 108,823$

Note J - Liquidity and Availability of Financial Assets

The Organization’s primary sources of support are contributions and fundraising events. Some of that support is required to be used in accordance with the purpose restrictions imposed by the donors. The Organization’s objective is to maintain liquid financial assets without donor restrictions to provide reasonable assurance that long-term obligations will be discharged. The following table reflects the Organization’s financial assets as of December 31, 2019 and 2018, reduced by amounts not available for general expenditures within one year.

2019 2018Financial assets:

Cash and cash equivalents 646,119$ 643,951$

Investments at fair market value 78,398 -$ Accounts receivable 19,693 21,188 Pledge receivable 1,250 50,000

Financial assets, at year-end 745,460 715,139

Less those unavailable for general expenditure within one year, due to:

Board-designated endowment (108,823) (50,026)

Financial assets available to meet cash needs for general expenditures within one year 636,637$ 665,113$




____________________________________________________________________________________


Note K - Lease Commitments

In July 2019, the Organization renewed its lease for office space, extending its current lease term for two years through July 31, 2021 at a rate of $2,465 per month. Total expense for rental of space, under operating leases, was $29,075 and $28,014 for the years ended December 31, 2019 and 2018, respectively. Future minimum annual rental commitments under the non-cancelable operating leases at December 31, 2019 are as follows:

Year Ending Amount

2020 29,580$ 2021 29,580

Total 59,160$

Documents

THE TINY MIRACLES FOUNDATION, INC. (A NOT-FOR-PROFIT