Page 32 - 2020 Annual Report

INDEPENDENT AUDITOR’S REPORT

We have audited the accompanying modified cash basis financial state- standards require that we plan and perform the audit to obtain reasonable OPINION
ments of Dekko Foundation, Inc. (Foundation), which comprise the state- assurance about whether the financial statements are free from material In our opinion, the financial statements referred to above present fairly, in
ments of financial position as of August 31, 2020 and 2019, and the related misstatement. all material respects, the financial position of Dekko Foundation, Inc. as of
statements of activities and functional expenses for the years then ended, August 31, 2020 and 2019, and the changes in its net assets for the years
and the related notes to the financial statements. An audit involves performing procedures to obtain audit evidence about then ended in accordance with the modified cash basis of accounting
the amounts and disclosures in the financial statements. The procedures described in Note 1.
MANAGEMENT’S RESPONSIBILITY selected depend on the auditor’s judgment, including the assessment of
FOR THE FINANCIAL STATEMENTS the risks of material misstatement of the financial statements, whether due to BASIS OF ACCOUNTING
Management is responsible for the preparation and fair presentation of fraud or error. In making those risk assessments, the auditor considers inter- We draw attention to Note 1 of the financial statements, which describes
these financial statements in accordance with the modified cash basis of ac- nal control relevant to the Foundation’s preparation and fair presentation of the basis of accounting. The financial statements are prepared on the
counting described in Note 1; this includes determining that the modified the financial statements in order to design audit procedures that are appro- modified cash basis of accounting, which is a basis of accounting other
cash basis of accounting is an acceptable basis for the preparation of the priate in the circumstances, but not for the purpose of expressing an opinion than the accounting principles generally accepted in the United States of
financial statements in the circumstances. Management is also responsible on the effectiveness of the entity’s internal control. Accordingly, we express America. Our opinion is not modified with respect to this matter.
for the design, implementation and maintenance of internal control relevant no such opinion. An audit also includes evaluating the appropriateness of
to the preparation and fair presentation of financial statements that are free accounting policies used and the reasonableness of significant accounting
from material misstatement, whether due to fraud or error. estimates made by management, as well as evaluating the overall presenta-
tion of the financial statements.
AUDITOR’S RESPONSIBILITY Fort Wayne, Indiana | November 16, 2020
Our responsibility is to express an opinion on these financial statements We believe that the audit evidence we have obtained is sufficient and ap-
based on our audits. We conducted our audits in accordance with audit- propriate to provide a basis for our audit opinion.
ing standards generally accepted in the United States of America. Those

STATEMENTS OF FINANCIAL POSITION STATEMENTS OF ACTIVITIES
August 31, 2020 and 2019 Modified Cash Basis Years Ended August 31, 2020 and 2019 Modified Cash Basis
2020 2019
ASSETS 2020 2019 RECEIPTS TOTAL % OF TOTAL TOTAL % OF TOTAL
Cash and cash equivalents $4,931,868 $5,249,202 Contributions $319,903 1.78% $319,903 1.89%
Investments $197,617,738 $195,536,456 Interest and dividend income $3,824,927 21.22% $4,145,971 24.52%
Note receivable, net $4,500,000 $1,000,000 Net realized gains on investments $13,874,744 76.99% $12,413,760 73.42%
Property and equipment, net $171,079 $105,768 Other $1,995 0.01% $28,443 0.17%
TOTAL ASSETS $207,220,685 $201,891,426 TOTAL RECEIPTS $18,021,569 100.00% $16,908,077 100.00%

LIABILITIES DISBURSEMENTS & EXPENSES
Payroll tax withholdings $4,770 $4,963 Grants $10,721,022 84.45% $10,797,904 85.30%
NET ASSETS WITHOUT Administrative $839,372 6.61% $809,266 6.39%
DONOR RESTRICTIONS $207,215,915 $201,886,463
Library $948 0.01% $858 0.01%
TOTAL LIABILITIES $207,220,685 $201,891,426 Depreciation $11,508 0.09% $11,508 0.09%
AND NET ASSETS
Utilities $20,292 0.16% $18,431 0.15%
Office supplies $3,350 0.03% $6,867 0.05%
Equipment $269 0.01% $3,052 0.02%
continued on next page

32