Please review thefinancial statements for Propel Nonprofit.

Help me to Identify evidence where you believe they have implemented ASC 958 (see pages 305-306 in the textbook) by discussing one specific example.

Also, please make a comment on if you believe this financial reporting change was beneficial for the reader of the financial statement.

PROPEL NONPROFITS STATEMENTS OF FINANCIAL POSITION MARCH 31, 2018 AND 2017 March 31, 2018 March 31, 2017 Without Donor With Donor Without Donor With Donor Restrictions Restrictions Total Restrictions Restrictions Total ASSETS CURRENT ASSETS Cash and Cash Equivalents $ 6,183,379 $ 693,648 $ 6,877,027 $ 4,478,902 $ 2,934,402 $ 7,413,304 Certificates of Deposit 141,489 141,489 Accounts and Grants Receivable, Net of Allowance for Doubtful Accounts of $6,331 in 2018 and $27,200 in 2017 245,704 1,422,895 1,668,599 200,388 1,180, 150 1,380,538 Loans Receivable, Net of Allowance of $433,745 in 2018 and $345,873 in 2017 6,505,029 6,505,029 5,436,931 5,436,931 Loan Interest Receivable 79,504 79,504 33,933 33,933 Prepaids 91,230 91,230 200,783 200,783 Total Current Assets 13,104,846 2, 116,543 15,221,389 10,492,426 4,114,552 14,606,978 NONCURRENT ASSETS Loans Receivable, Net of Allowance of $1,047,257 in 2018 and $593,289 in 2017 15,371,223 15,371,223 12,407,142 12,407, 142 Accounts and Grants Receivable, Net of Discount of $-0- in 2018 and $18,454 in 2017 586,396 586,396 Other Real Estate Owned, Net 60,811 60,811 60,811 60,811 Certificates of Deposit 393,993 393,993 288,487 288,487 Fixed Assets, Net of Depreciation 1,077,752 1,077,752 106, 151 106, 151 Total Noncurrent Assets 16,509,786 393,993 16,903,779 12,862,591 586,396 13,448,987 Total Assets $ 29,614,632 $ 2,510,536 $ 32, 125, 168 $ 23,355,017 $ 4,700,948 $ 28,055,965PROPEL NON PROFITS STATEMENTS OF FINANCIAL POSITION (CONTINUED) MARCH 31, 2018 AND 2017 March 31.2018 March 31.2017 Without Donor With Donor Without Donor With Donor Restrictions Restrictions Total Restrictions Restrictions Total LIABILITIES AND NET ASSETS CURRENT LIABILITIES Notes Payable $ 2.458.207 $ - $ 2.458.207 $ 2.154.176 $ - $ 2.154.176 Accounts Payable and Accrued Expenses 311.173 - 311.173 231.463 - 231.463 Capital Lease Obligation 4.463 - 4.463 2.164 - 2.164 Interest Payable 87.545 - 87.545 36.346 - 36.346 Deferred Revenue 8.875 - 8.875 3.110 - 3.110 Deferred Rent Credit 31.570 - 31.570 - - - Funds Managed for Fiscally Sponsored Clients 996.490 - 996.490 950.381 - 950.381 Total Current Liabilities 3.898.323 - 3.898.323 3.377.640 - 3.377.640 LONG-TERM LIABILITIES Notes Payable 14.909.440 - 14.909.440 10.807.321 - 10.807.321 Capital Lease Obligation 11.274 - 11.274 1.295 - 1.295 Deferred Rent Credit 276.241 - 276.241 - - - Total Long-Term Liabilities 15.196.955 - 15.196.955 10.808.616 - 10,808.616 Total Liabilities 19.095.278 - 19.095.278 14.186.256 - 14,186.256 NET ASSETS Without Donor Restrictions: Undesignated 10.519.354 - 10.519.354 7.168.761 - 7.168.761 Designated by Board for Lending - - - 2.000.000 - 2.000.000 Total Unrestricted Net Assets 10.519.354 - 10.519.354 9.168.761 - 9.168.761 With Donor Restrictions - 2.510.536 2.510.536 - 4.700.948 4.700.948 Total Net Assets 10.519.354 2.510.536 13.029.890 9.168.761 4.700.948 13.869.709 STATEMENTS OF ACTIVITIES YEARS ENDED MARCH 31, 2018 AND 2017 March 31, 2018 March 31, 2017 Without Donor With Donor Without Donor With Donor Restrictions Restrictions Total Restrictions Restrictions Total REVENUES Gifts and Grants $ 383,410 $ 3,336,294 $ 3,719,704 $ 446,813 $ 5,226,554 $ 5,673,367 Loan Interest Income 1,226, 144 1,226, 144 1,091,894 1,091,894 Loan Fee Revenue 121,949 121,949 75,932 75,932 Program Revenue 1,034,244 1,034,244 377, 148 377, 148 Investment Income 21,032 21,032 13,904 13,904 Other Income 31,901 31,901 Contribution from Acquisition 312,321 1,317,537 1,629,858 Net Assets Released from Restrictions 5,526,706 (5,526,706) 2,384,363 (2,384,363) Total Revenues 8,313,485 (2, 190,412) 6, 123,073 4,734,276 4, 159,728 8,894,004 EXPENSES Program Service: Training, Guidance, and Knowledge Sharing 737,823 737,823 725,830 725,830 Lending 1,954,288 1,954,288 1, 176,389 1, 176,389 Strategic Services 470, 101 470, 101 120,733 120,733 Accounting and Finance Services 585,312 585,312 135,535 135,535 FS and Incorporation Services 2,473,614 2,473,614 1,526,639 1,526,639 Program 6,221, 138 6,221, 138 3,685, 126 3,685, 126 Core Mission Support: Management and General 654,879 654,879 471,664 471,664 Core Mission Support: Fundraising 86,875 86,875 44,757 44,757 Total Expenses 6,962,892 6,962,892 4,201,547 4,201,547 CHANGE IN NET ASSETS 1,350,593 (2, 190,412) (839,819) 532,729 4, 159,728 4,692,457 Net Assets - Beginning of Year 9, 168,761 4,700,948 13,869,709 8,636,032 541,220 9, 177,252 NET ASSETS - END OF YEAR $ 10,519,354 $ 2,510,536 $ 13,029,890 $ 9, 168,761 $ 4,700,948 $ 13,869,709PROPEL NON PROFITS STATEMENT OF FUNCTIONAL EXPENSES YEAR ENDED MARCH 31. 2018 Year Ended March 31. 2018 Program Services Core Mission Support Training. Fiscal Guidance. Sponsorship and Accounting and One-Time Knowledge Strategic and Finance Incorporation Merger Management Sharing Lending Services Services Services Subtotal Expenses and General Fundraising Subtotal Total EXPENSES Personnel Expenses 5 414.356 5 577.051 5 243.596 5 420.672 5 176.378 5 1.832.053 3 39.779 5 390.556 5 46.144 5 476.479 $ 2.308.532 Contracted Services 168.033 14.048 61.731 48.613 16.384 308.810 13.952 33.334 32.336 79.622 388.431 Grants to Other Entities 40.000 - 102.700 - 2.225.945 2.368.645 - - - - 2.368.645 Capital Support to Nonprots - 43.333 - - - 43.333 - - - - 43.333 Occupancy 35.538 55.035 26.898 49.686 22.173 189.330 - 44.095 3.637 47.732 237.062 Equipment and Technology Expense 26.566 39.093 20.254 38.565 16.351 140.828 2.468 38.491 2.870 43.829 184.657 Travel Expenses 15.878 10.822 1.974 4.391 1.860 34.926 - 3.677 77 3.755 38.680 Meeting Expenses 12.861 3.082 4.841 940 2.197 23.922 7.636 6.100 89 13.825 37.747 Marketing and Communications Expenses 7.147 3.358 1.604 3.354 1.555 17.019 28.617 1.863 247 30.727 47.746 Other Operating Expenses 17.444 24.691 6.503 16.827 7.310 72.775 5.895 38.240 1.474 45.610 118.385 Interest Expense on Debt - 330.133 - - - 330.133 - - - - 330.133 Provision for Loan Loss Reserve - 845.466 - - - 845.466 - - - - 845.466 Other Filing and Fee Expense - 8.174 - 2.261 3.463 13.898 - 176 - 176 Total Direct Expenses 737.823 1.954.288 470.101 585.312 2.473.614 6.221.138 98.348 556.531 86.875 741.754 Administrative Allocation 101.994 155.243 78.360 146.972 63.002 545.540 - (556.531) 10.991 (545.540) - Fundraising Allocation 18.245 28.552 14.632 25.335 11.101 97.865 - - 97.865! 97.865! - Tme Program Costs 3 858.032 98.348 PROPEL NONPROFITS STATEMENT OF FUNCTIONAL EXPENSES YEAR ENDED MARCH 31, 2017 Year Ended March 31, 2017 Program Services Core Mission Support Training Fisca Guidance, Sponsorship and Accounting and One-Time Knowledge Strategic and Finance Incorporation Merger Management Sharing Lending Services Services Services Subtotal Expenses and General Fundraising Subtotal Total EXPENSES Personnel Expenses $ 372,569 $ 505,568 $ 98,470 $ 105,575 $ 35,932 $ 1, 118, 115 $ $ 280,308 $ 33,494 $ 313,802 $ 1,431,917 Contracted Services 174,569 19,987 9,814 13,540 8.012 225,921 63,089 36,968 7,344 107,402 333,323 Grants to Other Entities 70,000 1,476,248 1,546,248 1,546,248 Capital Support to Nonprofits Occupancy 30, 193 39,890 2,918 5,418 1,439 79,859 6,093 20,889 1,632 28,614 108,473 Equipment and Technology Expense 20,250 24,828 4,087 7,849 1,977 58,990 2,982 19,608 1, 133 23,723 82,713 Travel Expenses 18,626 7,422 874 687 63 27,672 100 2,964 29 3,092 30,764 Meeting Expenses 19,912 1,855 318 34 22, 121 3,779 3,786 25,907 Marketing and Communications Expenses 4.344 4.653 320 601 657 10,575 7,125 62 113 7.299 17,874 Other Operating Expenses 15,365 16,405 3,932 1,832 1,761 39,294 5,083 22,614 1,006 28,703 67,997 Interest Expense on Debt 301,546 301,546 301,546 Provision for Loan Loss Reserve 248,896 248,896 248,896 Other Filing and Fee Expense 5.339 550 5.889 5.889 Total Direct Expenses 725,830 1, 176,389 120,733 135,535 1,526,639 3,685, 126 84,472 387, 192 44,757 516,421 4,201,547 Administrative Allocation 135,533 164,841 28,687 35,077 12,732 376,870 (387, 192) 10,322 (376,870) Fundraising Allocation 19,808 24,091 4, 193 5, 126 1,861 55,079 (55,079) (55,079) True Program Costs 881, 171 $ 1,365,322 $ 153,613 $ 175,738 $ 1,541,231 $ 4, 117,075 $ 84,472 $ $ 84,472 $ 4,201,547Change in Net Assets $ (839,819) $ 4,692,457 Adjustments to Reconcile Change in Net Assets to Net Cash Provided by Operating Activities: Depreciation Expense 138,842 50, 146 Gain on Sale of Other Real Estate Owned 31,901 Gain on Sale of Fixed Assets 1,018 Changes in Assets and Liabilities: Accounts and Grants Receivable 298,335 (1,881,039) Loan Interest Receivable (45,571) 38, 131 Prepaids 109,553 (168,388) Accounts Payable and Accrued Expenses 79,710 120,579 Interest Payable 51, 199 (11,842) Deferred Revenue 5,765 (2,310) Deferred Rent Credit 307,811 Cash Receipts on Behalf of Fiscally Sponsored Clients 2,931,272 1,542,823 Cash Disbursements on Behalf of Fiscally Sponsored Clients (2,885,163) (592,442) Net Cash Provided by Operating Activities 152,952 3,820,016 CASH FLOWS FROM INVESTING ACTIVITIES Loan Receivable Principal Advanced (13,445,498) (9,956,819) Loan Receivable Repayments 8,524,019 11,644,356 Loan Forgiveness - Equity Builder Program 43,333 Loan Receivable Charge Offs 304, 135 191,013 Increase (Decrease) in Allowance for Uncollectable Loan Receivable 541,841 (112, 107) Proceeds from Sale of Other Real Estate Owned 403,296 Purchase of Fixed Assets (1, 111,811) (124,747) Net Change in Certificates of Deposit 35,983 304,829 Net Cash Provided (Used) by Investing Activities (5, 107,998) 2,349,821 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from Issuance of Notes Payable 6,081, 122 4,705,583 Principal Payments on Notes Payable (1,674,974) (5,832,931) Principal Payments on Capital Lease Obligation 12,621 (2,094) Net Cash Provided (Used) by Financing Activities 4,418,769 (1, 129,442) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (536,277) 5,040,395