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HomeMy WebLinkAboutNorth Fork Animal Welfare League the ( RECEWED a. .. eague JUL - 2 2026 North Fork Animal Welfare Loaguo g�uthoad Town Clerk June 30, 2026 Re:Town of Southold RFP We are pleased to submit our proposal in response to the Town of Southold's Request for Proposals for Animal Control Services. The North Fork Animal Welfare League is excited about the opportunity to continue serving the Town of Southold and building upon the strong partnership we have established over many years. Collectively, our team has devoted more than 100 years of service to the Southold community, and we are honored to have the opportunity to continue that commitment. Our proposal outlines how we will meet the Town's objectives efficiently, responsibly, and cost effectively while continuing to provide the highest standards of animal care and public service. As you evaluate the proposals, we would like to highlight several important considerations. First, New York State has implemented significant new shelter mandates and regulatory requirements. Compliance requires substantial investments in training, staffing, documentation, and operational procedures. We encourage the Town to become familiar with these new requirements, as they will have a direct impact on the level of service, manpower, and financial resources necessary to remain fully compliant. Second,throughout our current contract,we have consistently fulfilled our reporting obligations based upon the reporting format requested by previous Town administrations. Should we be selected to continue providing these services, we welcome the opportunity to work collaboratively with the Town Board to redesign our reporting process, so it delivers exactly the information you find most valuable in measuring performance and outcomes. League Borth Fork Animal Welfare League Finally, our greatest strength is our people. Our staff receives continuous professional education throughout the year, including training in shelter best practices, animal control operations, animal welfare laws, sensitivity training, emergency response, and evolving New York State regulations.This ongoing investment enables our team to rescue, rehabilitate, protect, and successfully rehome animals while serving the residents of Southold with professionalism and compassion. Anyone can operate a shelter. What distinguishes the North Fork Animal Welfare League is the experience, dedication, and passion of our Southold team. Every day they strengthen the bond between animals and the people who love them while providing services that extend far beyond the walls of our shelter.That level of commitment is not easily replicated, and it is something we are extraordinarily proud of. With our proven experience, deep understanding of New York State animal welfare laws, and unwavering commitment to innovation and best practices, we believe we are uniquely positioned to continue serving the Town of Southold with excellence. We would also like to extend an invitation to the Town Board and those involved in evaluating this proposal to visit our shelter.We would be honored to provide a tour of our facility, present our capabilities, and demonstrate firsthand the breadth of programs and services we provide to this community every day.We believe there is no better way to understand our commitment than to experience our work in person and meet the dedicated professionals who make it possible. Thank you for your time,your consideration, and your continued commitment to the residents and animals of Southold. We appreciate the opportunity to submit this proposal and look forward to the possibility of continuing to serve our community. Sincerely, L slie Benw President North Fork Anim 1 W Ifare League www.northforka i alwelfareleague.org i RECEIVED North Fork Animal Welfare league JUL - 2 2026 Description of Services Scwth0ld Town Clerk What We Do The North Fork Animal Welfare League operates two of Long Island's premier no-kill animal shelters, providing compassionate, professional care to animals in need while helping them find safe, loving homes across the North Fork and beyond. For decades, we have served as a trusted resource for companion animals and the people who care about them. Guided by best practices in animal welfare and fully aligned with New York State standards for licensed shelters, our work extends far beyond rescue and adoption. We provide lifesaving care, community education, resources for pet owners, and partnerships that strengthen animal welfare throughout our region. Every animal that enters our care is treated as an individual, receiving the medical attention, rehabilitation, and compassion needed to give them a second chance. Every adoption represents a lifelong commitment to creating successful matches between animals and families. Our impact is made possible by an extraordinary community.Thousands of local residents have walked through our doors as volunteers, adopters, donors, and advocates, helping to build an organization rooted in compassion, responsibility,and service. The North Fork Animal Welfare League is a nonprofit organization exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code. Our vision is to remain a recognized leader in animal welfare by bringing together staff, volunteers, supporters, and community partners to promote compassionate stewardship and ensure that companion animals can live safe, healthy, and thriving lives. f � Rescue, Intake&Reunification We take in animals who are lost, abandoned, surrendered, or in need of care. Every animal is evaluated upon arrival, checked for identification, and, whenever possible,we work to reunite them with their owners. Each animal receives an individualized record and care plan from day one. Safe,Comfortable Housing Animals in our care are housed in clean, safe, and thoughtfully designed spaces that support both their physical health and emotional well-being. We maintain separate housing areas based on species, age, and health needs, and provide enriched environments that reduce stress and promote natural behaviors. Daily Care& Enrichment Our team ensures that every animal receives: • Fresh water and nutritious, species-appropriate food every day Daily observation and individualized care • Regular opportunities for exercise, play, and positive human interaction We focus on the whole animal—supporting both physical health and emotional well-being—so they are ready to thrive in a home environment. Veterinary Care All animals receive timely medical evaluation and ongoing veterinary care.This includes: • Health assessments at intake • Vaccinations and parasite prevention • Treatment for illness or injury • Spay/neuter services before adoption We work closely with licensed veterinarians and follow established protocols to ensure every animal receives appropriate, humane care. Behavior&Well-Being Understanding behavior is key to successful adoption.We: • Gather behavioral history whenever possible • Monitor each animal daily • Provide enrichment,training, and socialization • Share important behavioral information with adopters Our goal is to set both animals and families up for long-term success. Adoption & Placement We thoughtfully match animals with adopters and guide them to support a smooth transition into the home.Adopters receive clear information about an animal's health, behavior, and care needs, along with ongoing support resources. Foster Care Program When appropriate, animals are placed in approved foster homes where they can receive individualized attention in a home setting. Foster caregivers are trained and supported by our team to ensure consistent, high-quality care and positive outcomes for the animals. Transportation &Transfers When animals are transported or transferred, we follow strict safety, health, and coordination practices.This ensures that animals are moved securely and humanely, in partnership with organizations that can provide appropriate ongoing care. North Fork Community Programs&Services As part of our commitment to the local community, we offer a range of programs that support both animals and the people who care for them.These include: • Low-cost and accessible spay/neuter services to reduce overpopulation • Community outreach and education on responsible pet ownership • Pet food assistance and support programs for families in need • Volunteer opportunities that engage and educate the public • Partnerships with local organizations to strengthen animal welfare across the North Fork These programs reflect our belief that supporting the community is essential to improving outcomes for animals. Trained Staff&Volunteers Our staff and volunteers receive ongoing training in humane handling, disease prevention, animal behavior, sanitation, and shelter operations.This ensures that every animal is cared for by knowledgeable, compassionate professionals. Clean,Safe, and Accountable Operations We maintain high standards for cleanliness, safety, and accountability across all areas of our operations.This includes: • Routine cleaning and disinfection • Detailed recordkeeping for every animal • Established protocols for care, emergencies, and disease prevention • Ongoing oversight to ensure quality and continuous improvement Pets For Vets We provide a second chance for shelter pets by pairing them with America's veterans.This program is designed to make adoption affordable for approved veterans. At the time of application,the veteran must show a letter from their doctor stating that the veteran will benefit from adopting a companion animal. All veterans who would benefit from an animal companion are eligible.We recognize the sacrifice made by those in the military.The purpose of our program is to support the mutually beneficial relationship and positive benefits of a connection between animals and veterans. Our program allows veterans to connect with animals in unique ways, including constant companion support, pet food and supplies, help (when available), and reduced adoption fees. J UL - 2 2026 Gabby Stroup, Director of Operations, splits time between the Southold and Riv9(he44, Q mun Clle-rk locations. Date of hire: 6/1/2001. Runs daily operations of the shelter. Manages staff and schedules. Maintains records for all animals in our care.ACO calls when needed. Laura Beckendorff,Volunteer coordinator, part-time,time is split between both locations. Date of hire: April 26th,2026. She is in charge of events and making sure all volunteers have proper training within the new New York state guidelines. Maintains time logs for all volunteers. Schedules volunteers to help at our events. Katelyn Knapp,Assistant Manager,Southold. Full-time. Date of hire: August 9th, 2018. Kate runs the office in Southold. She is capable of doing all intakes, adoptions, and redemptions. She makes the vet appointments as needed. She is also amazing on social media,getting many of our long-term dogs/cats adopted. She is always thinking up new ideas for marketing the animals. Matt Valentino, dog trainer, at both locations. He splits his time between the shelters. Date of hire: May 26th,2018. Matt is very valuable as he can playgroups and socialize our dogs.Almost all of our dogs are dog social,which makes them more easily adoptable thanks to his work. He is also great at working with the more difficult dogs, coming up with plans to make them more adoptable. Jake Griffin, Full time kennel attendant. Date of hire: September 17, 2021.Jake is very dependable. He is also punctual. He is a very good dog handler. Paige Starzee, Full-time enrichment and Kennel attendant. Date of hire:April 26th, 2021. Paige is great with the public and does vet runs. Her cleaning is always thorough and done on time. She has done a great job with the enrichment program. She is also learning how to help in the office. Tammy Riddick, Full-time ACO, Cat care and Kennel Attendant.Tammy does it all.She takes care of the cats or dogs as needed. She goes on calls,vet runs, and she also vaccinates and does fecals as needed. She also runs the Southold office on Sundays and when coverage is needed. Grace Miglionico, Kennel attendant full-time. Date of hire: December 9th, 2015. Grace is very compassionate toward any animal. She makes sure that while animals are in our care,they are spoiled. She can handle even the more difficult animals. Robyn McKaskie,full-time cat care and Kennel attendant. Date of hire: March 22"d, 2023. Robyn is very thorough in her cleaning.She also has great knowledge of both the cat and dog populations. She always wants to learn more. Robyn can now do fecal, vet runs, and help on calls. Robyn is great with the public and is always willing to step in where needed. Robyn is also learning office work. Dylan Thompsen, Full-time Kennel attendant, Date of hire May 27, 2022. Dylan is very reliable and always willing to fill in when needed. He does after-hours calls if needed. Dylan is great with i J handling dogs and can also do meet and greets if Matt is not available. Dylan goes on calls and vet runs. Dylan is very thorough in cleaning and organizing. Dylan is on call at night for any calls after hours. RECEIVED JUL - 2 2026 June 22, 2026 SoUthold Town Clerk To Whom It May Concern, I am writing to offer my wholehearted support of the North Fork Animal Welfare League (NFAWL).As a co-founder with my husband David of Ames Feline Adoption &Rescue (AFAR), I have partnered closely with NFAWL since 2010 — beginning with our collaborative feral cat Trap-Neuter-Return program and growing into a broader fundraising mission. Over fifteen years, I have witnessed firsthand NFAWL's unwavering compassion, operational integrity, and extraordinary impact on the animals and people of this community. In 2023, that partnership took a significant new form when we launched Betty's Boutique, a fundraising yard sale with 100% of proceeds benefiting NFAWL. Since then, Betty's Boutique has raised over$210,000 for NFAWL — a figure made possible not by any single donor, but by an entire community that showed up. What distinguishes this work is its power to activate, not merely inform. Betty's Boutique has mobilized volunteers who give their Saturdays, donors who give generously, and local shoppers who experience something far more meaningful than a transaction. Every purchase is a small act of community investment — and NFAWL's trusted reputation is precisely what makes people say yes. This is community-building with a purpose: not just awareness, but genuine, participatory engagement. There is a second dimension to our model worth highlighting. Every item sold through Betty's Boutique is a preloved good — donated by community members and given a second life rather than sent to a landfill. Each purchase is simultaneously an act of generosity toward NFAWL and an act of environmental responsibility. We call it conscious shopping: one purchase, two acts of good. It is a value proposition that resonates across generations, and it channels the community's values directly into the care of animals who need it most. NFAWL has earned its place at the center of this community through years of consistent, compassionate service — responding to emergencies, facilitating adoptions, and operating with full accountability. I recommend this organization without reservation. Supporting NFAWL is supporting the very best of what the North Fork is. With sincere gratitude, Marja Ames Ames Feline Adoption & Rescue(AFAR) &Betty's Boutique RECEIVED To Whom It May Concern, JUL - 2 2 06 I am pleased to offer my strongest recommendation for the North Fork Animal Welfare League and its continued support within the Southold community. Southold Town Clerk The North Fork Animal Welfare League serves as far more than an animal shelter. It is a vital community organization dedicated to the welfare, protection, and advocacy of animals while also providing invaluable support to pet owners and families in need.Their commitment to compassionate, high-quality animal care is evident in every aspect of their work. The organization consistently goes above and beyond to ensure that animals receive not only proper medical attention and shelter, but also the love, enrichment,and individualized care necessary to help them thrive.Their staff and volunteers demonstrate exceptional dedication to improving the lives of vulnerable animals and finding them safe,loving homes. Beyond their shelter operations,the North Fork Animal Welfare League plays a critical role in addressing community animal welfare challenges.Their efforts to manage and reduce feral and stray cat populations through responsible intervention programs help improve both animal welfare and public health.These initiatives provide lasting benefits to the community and reflect a proactive approach to animal care. The League is also deeply engaged in community outreach and education. Through participation in local events, public programs, and community partnerships, they raise awareness about responsible pet ownership, animal welfare, and available resources for pet owners.Their presence throughout the community helps connect people with needed services and strengthens the human-animal bond. Organizations like the North Fork Animal Welfare League are essential.Their work benefits not only animals but also the families, individuals, and communities they serve.They are a compassionate, professional,and highly effective organization that consistently demonstrates excellence in animal welfare and community service. I wholeheartedly support the North Fork Animal Welfare League and recommend them without reservation. Sincerely, Jennifer Muscarello, DVM, CVA, CCRV Emergency Director East End Veterinary Center RECEIVED June 22, 2026 JUL — 2 2026 To whom it may concern, Southold Town Clerk I have been working at Mattituck-Laurel Veterinary Hospital since March 2006 as an associate veterinarian, and am now a part-owner and medical director. Throughout the years, we have worked closely with NFAWL in providing care for the animals in need on the North Fork. The NFAWL is a vital part of our community, providing pets for adoption and assisting in medical care for those in need. Over the years, they have provided financial assistance to countless people who could not otherwise afford to care for their pets in need. We regularly spay and neuter pets at a discounted rate for adopted pets in the community, which mutually benefits both the pets in need of homes and the families who adopt them. While the shelter tries to help as many animals as possible, they work with us to provide care for those that have the best chance at a quality of life. It has been an honor to work with the NFAWL for the last 20 years, and I ask that you renew their contract with the town so that we together might continue to serve the animals and people of the town of Southold. Sincerely, Dr. Beth S. Dunbar, DVM Medical Director, MDVM Mattituck-Laurel Veterinary Hospital Beth.Dunbar(@nva.com - 631-298-1177 MRASER H09PRM. Me�]p A,1 ERICAN O NOOSP�rf'AL NORTH FORK ANIMAL HOSPITAL E3AMIAMN 58605 ROUTE 25 53 NORTH FERRY ROAD SOUTHOLD, N.Y. 11971 SHELTER ISLAND, N.Y, 11964 TELEPHONE 631 - 765-R400 TELEPHONE 631 -749-2506 FAX 631 - 765-2664 FAX 631 - 749-26B7 RECEIVE® JUL - 2 2026 Southold Town Clerk 06/26/26 To Whom It May Concern, I have been providing veterinary care for the North Fork Animal Welfare League for over thirty years. They have always provided compassionate care to all of the shelter pets. It can sometimes be very challenging to find homes for certain pets due to behavioral or medical issues.The NFAWL will always take the extra steps,working with a trainer or our doctors to help each pet find a new home. Having the NFAWL in Southold and Riverhead is a great asset-to our community. I would certainly recommend them to continue providing their much needed services. Sincerely,. tr Robert P. Pisciotta, D.V.M License#006383 ROBERT P. PISCIOTTA, D.V.M. NANCY M. MULLADY, D.V.M. JENNIFER L. CABRAL. D.V.M. DANIEL C. D'AMATO, D.V.M. ' >f i NORTH FORK ANIMAL WELFARE LEAGUE,INC. FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31,2022 AND 2021 (WITH INDEPENDENT AUDITORS'REPORT THEREON) RECEIVED JUL - 2 2026 Southold Town Clerk NORTH FORK ANIMAL WELFARE LEAGUE,INC. TABLE OF CONTENTS DECEMBER 31, 2022 AND 2021 Page(s) Independent Auditors'Report 1-2 Financial Statements: Statements of Financial Position 3 Statements of Activities and Changes in Net Assets 4 Statements of Expenses by Function 5 and Natural Classification Statements of Cash Flows 6 Notes to Financial Statements 7-12 Thomas Jones,CPA Roy Little,CPA Kathleen Galway,CPA Jones,Little&Co.,CPA's,LLP • www.jonesandlittle.com INDEPENDENT AUDITORS'REPORT To the Board of Directors of North Fork Animal Welfare League, Inc. Peconic New York, 11958 Report on Audit of the Financial Statements Opinion We have audited the accompanying financial statements of the North Fork Animal Welfare League, Inc. ("NFAWL'),which comprises the statements of financial position as of December 31,2022 and 2021,and the related statements of activities and changes in net assets,expenses by function and natural classification, and cash flows for the years then ended, and the related notes to the financial statements. In our opinion,the financial statements referred to above present fairly,in all material respects,the financial position of the North Fork Animal Welfare League,Inc.as of December 31,2022 and 2021,and statements of activities and changes in its net assets,expenses by function and natural classification,and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of NFAWL,and to meet our other ethical responsibilities,in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management 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, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about NFAWL's ability to continue as a going concern within one year after the date that the financial statements are available to be issued. 86 West Main Street,Suite 2 5225 Nesconset Highway,Suite 50 186 W.Montauk Highway,Suite D3 East Islip,NY 11730-2323 Port Jefferson Station, NY 11776-2060 Hampton Bays,NY 11946-2347 (631)277-8500-Fax(631)277-8502 (631)473-9500—Fax(631)473-1259 (631)728-4020-Fax(631)728-4649 Auditors'Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,whether due to fraud or error,and to issue an auditors'report that includes our opinion.Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,intentional omissions,misrepresentations,or the override of internal control. Misstatements,including omissions,are considered material if there is substantial likelihood that, individually or in the aggregate, they would influence the judgement made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards,we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,and design and perform audit procedures responsive to those risks. Such procedures include examining,on a test basis,evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on of the effectiveness of NFAWL's internal control. Accordingly,no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgement, there are conditions or events, considered in the aggregate, that raise substantial doubt about the NFAWL's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding,among other matters,the planned scope and timing of the audit,significant audit findings,and certain internal control-related matters that we identified during the audit. �4 -1-41-C'11f-,III Hampton Bays,New York September 5,2023 2 NORTH FORK ANIMAL WELFARE LEAGUE,INC. STATEMENTS OF FINANCIAL POSITION DECEMBER 31,2022 AND 2021 2022 2021 ASSETS CURRENT ASSETS Cash and Cash Equivalents $ 53,559 $ 206,001 Inventory 2,000 4,000 Prepaid Insurance 11,974 3,249 TOTAL CURRENT ASSETS 67,533 213,250 Property and Equipment,Net 3,247,520 2,963,212 OTHER ASSETS Unrestricted Investments $ 1,960,066 2,410,138 Security Deposits 15,000 15,000 TOTAL OTHER ASSETS 1,975,066 2,425,138 TOTAL ASSETS $ 5,290,119 $ 5,601,600 LIABILITIES AND NET ASSETS LIABILITIES CURRENT LIABILITIES Accounts Payable $ 40,843 $ 44,563 Credit Card Payable 2,082 - Accrued Expenses and Payroll Taxes Payable 12,941 16,048 TOTAL CURRENT LIABILITIES 55,866 60,611 TOTAL LIABILITIES 55,866 60,611 NET ASSETS Without Donor Restrictions 5,234,253 5,540,989 TOTAL NET ASSETS 5,234,253 5,540,989 TOTAL LIABILITIES AND NET ASSETS $ 5,290,119 $ 5,601,600 See Accompanying Notes to Financial Statements 3 NORTH FORK ANIMAL WELFARE LEAGUE,INC. STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31,2022 AND 2021 WITHOUT DONOR WITH DONOR RESTRICTIONS RESTRICTIONS 2022 TOTAL 2021 TOTAL REVENUES AND GAINS Contributions $ 852,516 $ - $ 852,516 518,760 Grants 12,210 - 12,210 6,650 Program Services 574,525 - 574,525 513,704 Miscellaneous Revenue 6,555 - 6,555 11,198 Sales 10,941 - 10,941 - TOTAL REVENUES AND GAINS 1,456,747 - 1,456,747 1,050,312 EXPENSES - - Program Services 1,157,601 - 1,157,601 782,979 Management and General 205,853 - 205,853 147,696 Fundraising 4,372 - 4,372 2,077 TOTAL EXPENSES 1,367,826 - 1,367,826 932,752 NONOPERATING ACTIVITIES Gain on Sale of Assets - - - 2,000 SBA PPP Loan - - - 104,837 Income on Long-Term Investments (Net of Investment Fees) 12,590 - 12,590 12,571 Net Realized and Unrealized Gains on Long-Term Investments (408,247) - (408,247) 297,238 TOTAL NONOPERATING ACTIVITIES (395,657) - (395,657) 416,646 CHANGE IN NET ASSETS (306,736) - (306,736) 534,206 NET ASSETS-BEGINNING 5,540,989 - 5,540,989 5,006,783 NET ASSETS-ENDING $ 5,234,253 $ - $ 5,234,253 $ 5,540,989 See Accompanying Notes to Financial Statements 4 NORTH FORK ANIMAL WELFARE LEAGUE,INC. STATEMENTS OF EXPENSES BY FUNCTION AND NATURAL CLASSIFICATION FOR THE YEARS ENDED DECEMBER 31,2022 AND 2021 PROGRAM MANAGEMENT 2022 2021 SERVICES AND GENERAL FUNDRAISING TOTAL TOTAL Salaries and Wages $ 474,181 $ 133,743 $ - $ 607,924 $ 417,331 Payroll Taxes and Fringe Benefits 41,339 9,697 - 51,036 35,934 Health Insurance 19,482 7,577 - 27,059 36,503 Veterinarian Fees 186,490 - - 186,490 108,821 Kennel Supplies 163,989 - - 163,989 98,117 Cat Food and Supplies 9,923 - - 9,923 4,570 Professional Fees 32,118 187 - 32,305 30,673 Dues and Subscriptions - 4,302 - 4,302 - Insurance 31,646 7,911 - 39,557 29,819 Bank Charges and Credit Card Discounts - 4,076 - 4,076 935 Computer Expenses - 5,626 - 5,626 8,900 Advertising 24,777 - 4,372 29,149 13,848 Office Expenses 2,397 9,587 - 11,984 5,380 Postage and Delivery - 2,201 - 2,201 1,787 Automobile Expense 5,062 1,265 - 6,327 5,634 Telephone and Internet 4,687 1,172 - 5,859 4,058 Rubbish Removal 8,627 2,157 - 10,784 9,948 Licenses and Permits - - - - 700 Repairs and Maintenance 22,920 5,730 - 28,650 10,747 Continuing Education - - - - 350 Utilities 30,584 7,646 - 38,230 31,200 Miscellaneous 7,564 2,500 - 10,064 3,811 Travel 1,904 476 - 2,380 6,744 Depreciation Expense 89,911 - - 89,911 66,942 Total $ 1,157,601 $ 205,853 $ 4,372 $1,367,826 $ 932,752 See Accompanying Notes to Financial Statements 5 NORTH FORK ANIMAL WELFARE LEAGUE,INC. STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31,2022 AND 2021 2022 2021 CASH FLOWS FROM OPERATIONS: CHANGE IN NET ASSETS $ (306,736) $ 534,206 ADJUSTMENTS TO RECONCILE CHANGE IN NET ASSETS TO CASH PROVIDED BY (USED IN)OPERATING ACTIVITIES Depreciation 89,911 66,942 Changes in: Inventory 2,000 1,520 Prepaid Insurance (8,725) - Accounts Payable (3,720) 39,775 Credit Card Payable 2,082 - Accrued Expenses and Payroll Taxes Payable (3,107) (6,332) NET CASH PROVIDED BY(USED IN) OPERATING ACTIVITIES (228,295) 636,111 CASH FLOWS FROM INVESTING ACTIVITIES: Improvements (277,450) (1,120,595) Purchase of Fixed Assets (96,769) (2,560) Loss on Investments 512,273 107,675 Proceeds from Sale of Investments 1,001,455 1,349,800 Purchase of Investments (1,063,656) (813,243) NET CASH PROVIDED BY(USED IN) INVESTING ACTIVITIES 75,853 (478,923) CASH FLOWS FROM FINANCING ACTIVITIES: PPP Loan - (104,837) NET CASH USED IN FINANCING ACTIVITIES - (104,837) Net Increase in Cash and Cash Equivalents (152,442) 52,351 Cash and Cash Equivalents-Beginning 206,001 153,650 Cash and Cash Equivalents-Ending $ 53,559 $ 206,001 Supplemental Disclosures of Cash Flow Information: Cash Paid During the Year for: Interest $ 64 $ - Income Taxes $ - $ - See Accompanying Notes to Financial Statements 6 NORTH FORK ANIMAL WELFARE LEAGUE,INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 AND 2021 NOTE 1: NATURE OF ORGANIZATION The North Fork Animal Welfare League,Inc. ("NFAWL")was incorporated on July 19, 1963,in the state of New York.NFAWL was established to care for animals by locating owners of lost animals,by finding homes for homeless animals, and providing home, food, grooming, exercise, and medical treatment. In 1980, the Certificate of Incorporation of NFAWL was amended to enable NFAWL to contract with the Southold Town to manage and operate Southold Animal Shelter. NFAWL now operates two Animal Shelters: Southold and Riverhead,and covers the area from Orient to Riverhead,NY. NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies followed by NFAWL are described below: A. Basis of Presentation The accompanying financial statements have been prepared on the accrual basis of accounting, where revenue is recognized when earned and expenses are recognized when incurred. B. Net Assets NFAWL•is required to report information regarding its financial position and activities according to two classes of net assets: net assets without donor restrictions and net assets with donor restrictions. A. Net Assets Without Donor Restrictions The part of net assets of a not-for profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants). NFAWL's board has designated a portion of its contributions to its capital campaign. B. Net Assets With Donor Restrictions Net assets with donor restrictions of NFAWL are those net assets which have been limited by donor-imposed stipulations that specifies a use for a contributed asset that is more specific than broad limits resulting from either the nature of NFAWL,the environment in which it operates, or purposes specified in its articles of incorporation or bylaws or comparable documents for an unincorporated association. NFAWL's net assets that have donor restrictions are to be used specifically for capital items. C. Cash and Cash Equivalents For the purpose of these financial statements,NFAWL considers all liquid instruments purchased with a maturity of three months or less to be cash equivalents. D. Concentration of Credit Risk Financial instruments that potentially subject NFAWL to concentrations of credit risk consist principally of cash and cash equivalents. NFAWL maintains its cash and cash equivalents in various bank accounts that,at times,may exceed federally insured limits. NFAWL's cash and cash equivalent accounts have been placed with high credit quality financial institutions and has not experienced,nor does it anticipate,any losses with respect to such accounts. E. Merchandise Inventory Merchandise inventory for NFAWL at the end of the reporting period is recorded at the lower of cost or market(first-in,first out). 7 NORTH FORK ANIMAL WELFARE LEAGUE,INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2022 AND 2021 NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) F. Advertising NFAWL's policy is to expense advertising costs as the costs are incurred. Advertising expenses for the years ended December 31,2022 and 2021 was$29,149 and$13,848 respectively. G. Revenue Recognition Contributions and grants are recognized when the donor/grantor makes an unconditional promise to give to the NFAWL or when received,in accordance with accounting standards. H. Fixed Assets Property and equipment is capitalized at cost.Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets or the lease term.The useful lives range from three to thirty- nine years. NFAWL's policy is to capitalize betterments acquired for greater than $1,000 and expense normal repairs and maintenance as incurred. Management periodically evaluates whether events or circumstances have incurred indicating the carrying amount of the long-lived assets may be recovered 1. Fair Value Measurement NFAWL is required to disclose the fair value of certain financial instruments such as cash,pledges receivable, accounts payable and accrued expenses, and current portions of long-term debt. The carrying amount for each of these financial instruments are shown on the financial statements, and their fair value is approximate because of the short-term nature of these instruments. J. Classification of Expenses by Function and Natural Classification The costs of providing the program and other activities of NFAWL have been summarized on a functional basis in the Statement of Expenses by Function and Natural Classification,which include all expenses incurred for the years. Accordingly, certain costs have been allocated based on an analysis of personnel time, space utilized,and other equitable bases for the related activities(50% of management's payroll, payroll taxes, and health insurance; 20% of insurance, auto expense, office, telephone and internet, rubbish removal, repairs and maintenance, miscellaneous, and utilities.) K. Income Tax Status NFAWL is a not-for-profit corporation that is exempt from federal and state income taxes under Section 501(c)(3)of the Internal Revenue Code and is classified as"other than a private foundation." Therefore,no provision for income taxes is reflected in the financial statements. NFAWL does not believe there are any material uncertain tax positions and, accordingly,has not recognized any liability for uncertain tax benefits. For the year ended December 31, 2022, there were no interest or penalties recorded or included in the financial statements.NFAWL's Form 990, Return of Organization Exempt from Income Tax,for the years ending on or after December 31,2019, are subject to examination by the IRS,generally for three years after they were filed. 8 ' NORTH FORK ANIMAL WELFARE LEAGUE,INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 AND 2021 NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) L. Volunteer and Donated Services Volunteers contribute significant amounts of time to NFAWL's program services, administration, and fundraising and development activities. However, the financial statements do not reflect the value of these contributed services because they do not meet recognition criteria prescribed by generally accepted accounting principles. Contributed goods are recorded at fair value at the date of donation. M. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period.Actual results may differ from those estimates. N. Litigation NFAWL is subject to litigation in the ordinary conduct of its affairs.Management does not believe, however,that such litigation,individually or in aggregate,is likely to have a material adverse effect on the financial condition of NFAWL. O. Accounting Pronouncements Recent Accounting Pronouncements The Financial Accounting Standards Board(FASB)has issued certain accounting standard updates effective December 31, 2022. These standards have had no impact on NFAWL's financial statements. New Accounting Pronouncements Not Yet Effective FASB has issued certain accounting standards updates as of December 31, 2022,that will become effective in subsequent periods. Management believes that none of the updates would have significantly affected NFAWL's financial accounting measures or disclosures had they been in effect during the fiscal year ended December 31, 2022 and does not believe that any of those pronouncements will have a significant impact on NFAWL's financial statements at the time that they become effective. NOTE 3: FAIR VALUE INVESTMENTS FASB ASC 820 Fair Value Measurements (FASB ASC 820) establishes a fair value hierarchy that 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 or liabilities (Level 1 measurements)and the lowest priority to unobservable inputs(Level 3 Measurements). The three levels of the fair value hierarchy under FASB ASC 820 are as follows: Level 1 Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that NFAWL has the ability to access at the measurement date; Level 2 Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly,including inputs in markets that are not considered to be active; Level 3 Inputs that are unobservable. 9 NORTH FORK ANIMAL WELFARE LEAGUE,INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 AND 2021 NOTE 3:FAIR VALUE INVESTMENTS(continued) Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk Inputs may include price information, volatility statistics, specific and broad credit data,liquidity statistics, and other factors. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. However,the determination of what constitutes "observable" requires significant judgment by NFAWL. NFAWL considers observable data to be market data which is readily available, regularly distributed or updated,reliable and verifiable,not proprietary,and provided by independent sources actively involved in the relevant market. The categorization of a financial instrument in the hierarchy is based on the pricing transparency of that instrument and does not necessarily correspond to NFAWL's perceived risk of that instrument. The preceding may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although NFAWL believes its valuation is appropriate and consistent with market participants,the use of different methodologies or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table represents NFAWL's fair value hierarchy for those assets measured at fair value as of December 31,2022 and 2021: Assets at Fair Value as of December 31, 2022 Level Level Level Total Investments $ 1,960,066 $ - $ - $ 1,960,066 Assets at Fair Value as of December 31,2021 Level Level Level Total Investments $ 2,410,138 $ - $ - $224109138 NOTE 4:LIQUIDITY AND AVAILABILITY OF RESOURCES The following reflects NFAWL's financial assets as of the Statement of Financial Position date, reduced by amounts not available for general use because of donor-imposed restrictions within one year of the Statement of Financial Position date. 2022 2021 Cash and Cash Equivalents $ 53,559 $ 206,001 Unrestricted Investments 1,960,066 2,410,138 $ 2,013,625 $ 2,616,139 NOTE 5: MAJOR REPAIRS AND REPLACEMENTS In 2020,NFAWL signed a contract with a contracting company for major repairs to the Riverhead Animal Shelter. The repairs were finished in 2022. For the years ended December 31, 2022 and 2021 contract payments totaled$264,677 and$1,120,595,respectively. 10 NORTH FORK ANIMAL WELFARE LEAGUE,INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 AND 2021 NOTE 6: PROPERTY AND EQUIPMENT,NET Property and Equipment,net consisted of the following at December 31,2022 and 2021: 2022 2021 Land $ 242,500 $ 242,500 Land Improvements 11,157 7,319 Building 1,012,259 1,012,259 Building Improvements 2,104,941 1,831,329 Equipment 5,684 4,664 Vehicles 95,749 - 3,472,290 3,098,071 Less:Accumulated Depreciation (224,770) (134,859) Property and Equipment,Net $$3 $2,963,212 Depreciation expense for the years ended December 31,2022 and 2021 was$89,911 and$66,942,respectively. NOTE 7: TOWN CONTRACTS A. Town of Southold NFAWL's agreement with the Town of Southold(the Town)is in effect through February 28,2026. Under this agreement,the Town has agreed to make an annual contribution of$222,484,which is adjusted for the index ratio in the preceding year.NFAWL is not required to pay rent to the Town during the term of the agreement,and NFAWL has not determined or recorded the fair value of the rent.For the years ended December 31,2022 and 2021,NFAWL collected$258,688 and$250,212, respectively, which is included in program revenue on the statement of activities and changes in net assets. B. Town of Riverhead In 2016,NFAWL signed an agreement with the Town of Riverhead(the Town)for the operation of the shelter. In 2019, the agreement was extended through August 2029. Under the agreement, the Town has agreed to make an annual contribution. Effective September 1, 2022, the annual contribution is calculated using the prior year annual payment as the base amount adjusted for the price index. For the years ended December 31, 2022 and 2021,NFAWL collected $285,022 and $271,468, respectively, which is included in program revenue on the statement of activities and changes in net assets. NOTE 8:PAYCHECK PROTECTION PROGRAM In 2020,NFAWL received loan proceeds of$104,837 under the Paycheck Protection Program(PPP). The PPP,established as part of the Coronavirus Aid,Relief and Economic Security Act(CARES Act),provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. On June 30, 2021, NFAWL was notified by the Small Business Administration (SBA) that the entire PPP loan of$104,837 was forgiven.NFAWL does not owe any balance on the PPP loan,nor do they owe any interest. 11 NORTH FORK ANIMAL WELFARE LEAGUE,INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 AND 2021 NOTE 9: SUBSEQUENT EVENTS In connection with the preparation of these financial statements, NFAWL has evaluated events through September 5,2023,the date the financial statements were available to be issued.NFAWL has determined no other subsequent events have occurred during this period that would require adjustment to or disclosure in the financial statements. NFAWL has no responsibility to update these financials for events and circumstances occurring subsequent to September 5, 2023. 12 NORTH FORK ANE%IAL WELFARE LEAGUE,INC FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31,2023 AND 2022 (WITH INDEPENDENT AUDITORS'REPORT THEREON) RECEIVED JUL - 2 2026 Southold Town Clerk NORTH FORK ANIMAL WELFARE LEAGUE,INC. TABLE OF CONTENTS DECEMBER 31,2023 AND 2022 Page(s) Independent Auditors'Report 1 -2 Financial Statements Statements of Financial Position 3 Statements of Activities and Changes in Net Assets 4 Statements of Expenses by Function and 5 Natural Classification Statements of Cash Flows 6 Notes to the Financial Statements 7- 12 Thomas Jones,CPA Roy Little, CPA Kathleen Galway,CPA Jones, Little&Co.,CPA's,LLP Lori LaPonte,CPA www.jonesandlittle.com INDEPENDENT AUDITORS'REPORT To the Board of Directors North Fork Animal Welfare League,Inc Peconic,New York 11958 Report on Audit of the Financial Statements Opinion We have audited the accompanying financial statements of North Fork Animal Welfare League, Inc. ("NFAWL"), which comprises the statements of financial position as of December 31, 2023 and 2022, and the related statements of activities and changes in net assets, expenses by function and natural classification, and cash flows for the years then ended,and the related notes to the financial statements. In our opinion,the financial statements referred to above present fairly,in all material respects,the financial position of the North Fork Animal Welfare League as of December 31, 2023 and 2022, and changes in its net assets, expenses by function and natural classification and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditors'Responsibilities for the Audit of the Financial Statements section of our report.We are required to be independent NFAWL, and to meet our other ethical responsibilities,in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management 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. In preparing the financial statements,management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about NFAWL's ability to continue as a going concern within one year after the date that the financial statements are available to be issued. 86 West Main Street,Suite 2 5225 Nesconset Highway,Suite 50 186 W.Montauk Highway,Suite D3 East Islip, NY 11730-2323 Port Jefferson Station, NY 11776-2060 Hampton Bays,NY 11946-2347 (631)277-8500—Fax(631)277-8502 (631)473-9500—Fax(631)473-1259 (631)728-4020—Fax(631)728-4649 Auditors'Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,whether due to fraud or error,and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements, including omissions, are considered material if there is substantial likelihood that, individually or in the aggregate, they would influence the judgement made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards,we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,and design and perform audit procedures responsive to those risks. Such procedures include examining,on a test basis,evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on of the effectiveness of NFAWL's.internal control. Accordingly,no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgement, there are conditions or events, considered in the aggregate, that raise substantial doubt about NFAWL's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters,the planned scope and timing of the audit,significant audit findings,and certain internal control-related matters that we identified during the audit. lvxt4 / Hampton Bays,New York October 24,2024 2 NORTH FORK ANIMAL WELFARE LEAGUE,INC. STATEMENTS OF FINANCIAL POSITION DECEMBER 31,2023 AND 2022 2023 2022 ASSETS CURRENT ASSETS Cash and Cash Equivalents $ 28,483 $ 53,559 Inventory 2,000 2,000 Prepaid Insurance 12,539 11,974 TOTAL CURRENT ASSETS 43,022 67,533 Property and Equipment,Net 3,269,664 3,247,520 OTHER ASSETS Unrestricted Investments 2,119,958 1,960,066 Security Deposits 15,000 15,000 TOTAL OTHER ASSETS 2,134,958 1,975,066 TOTAL ASSETS $ 5,447,644 $ 5,290,119 LIABILITIES AND NET ASSETS LIABILITIES CURRENT LIABILITIES Accounts Payable $ 54,580 $ 40,843 Credit Card Payable - 2,082 Accrued Expenses and Payroll Taxes Payable 13,445 12,941 TOTAL CURRENT LIABILITIES 68,025 55,866 TOTAL LIABILITIES 69,025 55,866 NET ASSETS Without Donor Restrictions 5,379,619 5,234,253 TOTAL NET ASSETS 5,379,619 5,234,253 TOTAL LIABILITIES AND NET ASSETS $ 5,447,644 $ 5,290,119 See Accompanying Notes to Financial Statements 3 NORTH FORK ANIMAL WELFARE LEAGUE,INC. STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS YEARS ENDED DECEMBER 31,2023 AND 2022 WITHOUT WITH DONOR DONOR 2023 2022 RESTRICTIONS RESTRICTIONS TOTAL TOTAL REVENUES AND GAINS Contributions $ 315,815 $ - $ 315,815 $ 852,516 Grants 454,670 - 454,670 12,210 Program Services 599,838 - 599,838 574,525 Miscellaneous Revenue 16,338 - 16,338 6,555 Fundraising 58,162 58,162 - Sales - - - 10,941 TOTAL REVENUES AND GAINS 1,444,823 - 1,444,823 1,456,747 EXPENSES - - Program Services 1,296,708 - 1,296,708 1,157,601 Management and General 274,414 - 274,414 205,853 Fundraising 15,917 - 15,917 4,372 TOTAL EXPENSES 1,587,039 - 1,587,039 1,367,826 NONOPERATING ACTIVITIES Income on Long-Term Investments (Net of Investment Fees) 15,747 - 15,747 12,590 Net Realized and Unrealized Gains on Long-Term Investments 271,835 - 271,835 (408,247) TOTAL NONOPERATING ACTIVITIES 287,582 - 287,582 (395,657) CHANGE IN NET ASSETS 145,366 - 145,366 (306,736) NET ASSETS-BEGINNING 5,234,253 - 5,234,253 5,540,989 NET ASSETS-ENDING $ 5,379,619 $ - $ 5,379,619 $ 5,234,253 See Accompanying Notes to Financial Statements 4 NORTH FORK ANIMAL WELFARE LEAGUE,INC. STATEMENTS OF EXPENSES BY FUNCTION AND NATURAL CLASSIFICATION YEARS ENDED DECEMBER 31,2023 AND 2022 PROGRAM MANAGEMENT 2023 2022 SERVICES AND GENERAL FUNDRAISING TOTAL TOTAL Salaries and Wages $ 547,559 $ 154,440 $ - $ 701,999 $ 607,924 Payroll Taxes and Fringe Benefits 49,625 11,641 - 61,266 51,036 Health Insurance 26,951 10,481 - 37,432 27,059 Veterinarian Fees 202,062 - - 202,062 186,490 Kennel Supplies 181,986 - - 181,986 163,989 Cat Food and Supplies 3,991 - - 3,991 9,923 Professional Fees 32,709 191 - 32,900 32,305 Credit Card Fees - 7,816 7,816 - Dues and Subscriptions - 5,204 - 5,204 4,302 Insurance 55,810 13,952 - 69,762 39,557 Bank Fees - 561 - 561 4,076 Computer Expenses - 7,396 - 7,396 5,626 Advertising 8,028 - 1,417 9,445 29,149 Office Expenses 2,008 8,036 - 10,044 11,984 Postage and Delivery - 3,593 - 3,593 2,201 Automobile Expense 4,034 1,008 - 5,042 6,327 Telephone and Internet 5,646 1,411 - 7,057 5,859 Rubbish Removal 10,398 2,599 - 12,997 10,784 Licenses and Permits 350 - - 350 - Repairs and Maintenance 17,019 4,255 - 21,274 28,650 Continuing Education - 350 - 350 - Utilities 34,327 8,582 - 42,909 38,230 Miscellaneous 9,450 2,362 - 11,812 7,564 Grant Writer - 30,000 30,000 2,500 Travel 2,145 536 - 2,681 2,380 Fundraising Expense 14,500 14,500 - Depreciation Expense 102,610 - - 102,610 89,911 Total $ 1,296,708 $ 274,414 $ 15,917 $1,587,039 $ 1,367,826 See Accompanying Notes to Financial Statements 5 NORTH FORK ANIMAL WELFARE LEAGUE,INC. STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31,2023 AND 2022 2023 2022 CASH FLOWS FROM OPERATIONS: CHANGE IN NET ASSETS $ 145,366 $ (306,736) ADJUSTMENTS TO RECONCILE CHANGE IN NET ASSETS TO CASH PROVIDED BY (USED IN)OPERATING ACTIVITIES Depreciation 102,610 89,911 Changes in: Inventory - 2,000 Prepaid Insurance (565) (8,725) Accounts Payable 13,737 (3,720) Credit Card Payable (2,082) 2,082 Accrued Expenses and Payroll Taxes Payable 504 (3,107) NET CASH PROVIDED BY(USED IN) OPERATING ACTIVITIES 259,570 (228,295) CASH FLOWS FROM INVESTING ACTIVITIES: Improvements (124,754) (277,450) Purchase of Fixed Assets - (96,769) (Gain)Loss on Investments (205,699) 512,273 Proceeds from Sale of Investments 1,002,197 1,001,455 Purchase of Investments (956,390) (1,063,656) NET CASH PROVIDED BY(USED Il� INVESTING ACTIVITIES (284,646) 75,853 Net Increase in Cash and Cash Equivalents (25,076) (152,442) Cash and Cash Equivalents-Beginning 53,559 206,001 Cash and Cash Equivalents-Ending $ 28,483 $ 53,559 Supplemental Disclosures of Cash Flow Information: Cash Paid During the Year for: Interest $ 1,624 $ 64 Income Taxes $ - $ - See Accompanying Notes to Financial Statements 6 NORTH FORK ANIMAL WELFARE LEAGUE,INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 AND 2022 NOTE 1: NATURE OF ORGANIZATION The North Fork Animal Welfare League,Inc. ("NFAWL")was incorporated on July 19, 1963,in the state of New York.NFAWL was established to care for animals by locating owners of lost animals, by finding homes for homeless animals, and providing home, food, grooming, exercise, and medical treatment. In 1980, the Certificate of Incorporation of NFAWL was amended to enable NFAWL to contract with the Southold Town to manage and operate Southold Animal Shelter. NFAWL now operates two Animal Shelters: Southold and Riverhead, and covers the area from Orient to Riverhead,NY. NOTE 2:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies followed by NFAWL are described below: A. Basis of Presentation The accompanying financial statements have been prepared on the accrual basis of accounting, where revenue is recognized when earned and expenses are recognized when incurred. B. Net Assets NFAWL is required to report information regarding its financial position and activities according to two classes of net assets: net assets without donor restrictions and net assets with donor restrictions. A. Net Assets Without Donor Restrictions The part of net assets of a not-for profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants). NFAWL's board has designated a portion of its contributions to its capital campaign. B. Net Assets With Donor Restrictions Net assets with donor restrictions of NFAWL are those net assets which have been limited by donor-imposed stipulations that specifies a use for a contributed asset that is more specific than broad limits resulting from either the nature of NFAWL,the environment in which it operates, or purposes specified in its articles of incorporation or bylaws or comparable documents for an unincorporated association. NFAWL's net assets that have donor restrictions are to be used specifically for capital items. C. Cash and Cash Equivalents For the purpose of these financial statements,NFAWL considers all liquid instruments purchased with a maturity of three months or less to be cash equivalents. D. Concentration of Credit Risk Financial instruments that potentially subject NFAWL to concentrations of credit risk consist principally of cash and cash equivalents. NFAWL maintains its cash and cash equivalents in various bank accounts that,at times,may exceed federally insured limits. NFAWL's cash and cash equivalent accounts have been placed with high credit quality financial institutions and has not experienced,nor does it anticipate,any losses with respect to such accounts. E. Merchandise Inventory Merchandise inventory for NFAWL at the end of the reporting period is recorded at the lower of cost or market(first-in,first out). 7 NORTH FORK ANIMAL WELFARE LEAGUE,INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 AND 2022 NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) F. Advertising NFAWL's policy is to expense advertising costs as they are incurred. Advertising expenses for the years ended December 31,2023 and 2022 was$9,445 and$29,149,respectively. G. Revenue Recognition NFAWL recognizes revenue in accordance with FASB ASC Topic 606,Revenue from Contracts with Customers. H. Fixed Assets Property and equipment is capitalized at cost. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets or the lease term.The useful lives range from three to thirty- nine years. NFAWL's policy is to capitalize betterments acquired for greater than $1,000 and expense normal repairs and maintenance as incurred.Management periodically evaluates whether events or circumstances have incurred indicating the carrying amount of the long-lived assets may be recovered. I. Fair Value Measurement NFAWL is required to disclose the fair value of certain financial instruments such as cash,pledges receivable, accounts payable and accrued expenses, and current portions of long-term debt. The carrying amount for each of these financial instruments are shown on the financial statements,and their fair value is approximate because of the short-term nature of these instruments. J. Classification of Expenses by Function and Natural Classification The costs of providing the program and other activities of NFAWL have been summarized on a functional basis in the Statement of Expenses by Function and Natural Classification,which include all expenses incurred for the years. Accordingly, certain costs have been allocated based on an analysis of personnel time, space utilized, and other equitable bases for the related activities(50% of management's payroll, payroll taxes, and health insurance; 20% of insurance, auto expense, office, telephone and internet, rubbish removal, repairs and maintenance, miscellaneous, and utilities.) K. Income Tax Status NFAWL is a not-for-profit corporation that is exempt from federal and state income taxes under Section 501(c)(3)of the Internal Revenue Code and is classified as"other than a private foundation." Therefore,no provision for income taxes is reflected in the financial statements. NFAWL does not believe there are any material uncertain tax positions and, accordingly,has not recognized any liability for uncertain tax benefits. For the year ended December 31, 2023, there were no interest or penalties recorded or included in the financial statements.NFAWL's Form 990, Return of Organization Exempt from Income Tax,for the years ending on or after December 31,2020, are subject to examination by the IRS,generally for three years after they were filed. 8 NORTH FORK ANIMAL WELFARE LEAGUE,INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2023 AND 2022 NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) L. Volunteer and Donated Services Volunteers contribute significant amounts of time to NFAWL's program services, administration, and fundraising and development activities. However, the financial statements do not reflect the value of these contributed services because they do not meet recognition criteria prescribed by generally accepted accounting principles. Contributed goods are recorded at fair value at the date of donation. M. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period.Actual results may differ from those estimates. N. Litigation NFAWL is subject to litigation in the ordinary conduct of its affairs.Management does not believe, however,that such litigation,individually or in aggregate,is likely to have a material adverse effect on the financial condition of NFAWL. O. Accounting Pronouncements Recent Accounting Pronouncements The Financial Accounting Standards Board(FASB)has issued certain accounting standard updates effective December 31, 2023. These standards have had no impact on NFAWL's financial statements. New Accounting Pronouncements Not Yet Effective FASB has issued certain accounting standards updates as of December 31,2023,that will become effective in subsequent periods. Management believes that none of the updates would have significantly affected NFAWL's financial accounting measures or disclosures had they been in effect during the fiscal year ended December 31, 2023 and does not believe that any of those pronouncements will have a significant impact on NFAWL's financial statements at the time that they become effective. NOTE 3:FAIR VALUE INVESTMENTS FASB ASC 820 Fair Value Measurements (FASB ASC 820) establishes a fair value hierarchy that 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 or liabilities (Level 1 measurements)and the lowest priority to unobservable inputs(Level 3 Measurements). The three levels of the fair value hierarchy under FASB ASC 820 are as follows: Level 1 Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that NFAWL has the ability to access at the measurement date; Level 2 Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly,including inputs in markets that are not considered to be active; Level 3 Inputs that are unobservable. 9 NORTH FORK ANIMAL WELFARE LEAGUE,INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 AND 2022 NOTE 3:FAIR VALUE INVESTMENTS(continued) Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. However,the determination of what constitutes"observable" requires significant judgment by NFAWL. NFAWL considers observable data to be market data which is readily available, regularly distributed or updated,reliable and verifiable,not proprietary, and provided by independent sources actively involved in the relevant market. The categorization of a financial instrument in the hierarchy is based on the pricing transparency of that instrument and does not necessarily correspond to NFAWL's perceived risk of that instrument. The preceding may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although NFAWL believes its valuation is appropriate and consistent with market participants,the use of different methodologies or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table represents NFAWL's fair value hierarchy for those assets measured at fair value as of December 31,2023 and 2022: Assets at Fair Value as of December 31, 2023 Level Level Level Total Investments $ 2,119,958 $ - $ - $2,119,958 Assets at Fair Value as of December 31, 2022 Level Level Level Total Investments $ 1,960,066 $ - $ - $ 1,960,066 NOTE 4:LIQUIDITY AND AVAILABILITY OF RESOURCES The following reflects NFAWL's financial assets as of the Statement of Financial Position date, reduced by amounts not available for general use because of donor-imposed restrictions within one year of the Statement of Financial Position date. 2023 2022 Cash and Cash Equivalents $ 28,483 $ 53,559 Unrestricted Investments 2,119,958 1,960,066 $ 2,148,441 $ 2,0139625 10 NORTH FORK ANIMAL WELFARE LEAGUE,INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2023 AND 2022 NOTE 5: PROPERTY AND EQUIPMENT,NET Property and Equipment, net consisted of the following at December 31,2023 and 2022: 2023 2022 Land $ 242,500 $ 242,500 Land Improvements 11,157 11,157 Building 1,012,259 1,012,259 Building Improvements 2,229,695 2,104,941 Equipment 5,684 5,684 Vehicles 95,749 95,749 3,597,044 3,472,290 Less:Accumulated Depreciation (327,388) (237,469) Property and Equipment,Net $3,269,656 $3 34 821 Depreciation expense for the years ended December 31, 2023 and 2022 was $102,610 and $89,911, respectively. NOTE 6: TOWN CONTRACTS A. Town of Southold NFAWL's agreement with the Town of Southold(the Town)is in effect through February 28,2026. Under this agreement, the Town has agreed to make an annual contribution of$222,484,which is adjusted for the index ratio in the preceding year.NFAWL is not required to pay rent to the Town during the term of the agreement,and NFAWL has not determined or recorded the fair value of the rent.For the years ended December 31,2023 and 2022,NFAWL collected$277,458 and$258,688, respectively, which is included in program revenue on the statement of activities and changes in net assets. B. Town of Riverhead In 2019, NFAWL's agreement with the Town of Riverhead for the operation of the shelter was extended through August 2029. Under the agreement, the Town has agreed to make an annual contribution.Effective September 1,2022,the annual contribution is calculated using the prior year annual payment as the base amount adjusted for the price index. For the years ended December 31, 2023 and 2022, NFAWL collected $295,297 and $285,023 respectively, which is included in program revenue on the statement of activities and changes in net assets. 11 NORTH FORK ANIMAL WELFARE LEAGUE,INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 AND 2022 NOTE 7: SUBSEQUENT EVENTS In connection with the preparation of these financial statements, NFAWL has evaluated events through October 24, 2024, the date the financial statements were available to be issued. NFAWL has determined no other subsequent events have occurred during this period that would require adjustment to or disclosure in the financial statements. NFAWL has no responsibility to update these financials for events and circumstances occurring subsequent to October 24, 2024. 12 e • NORTH FORK ANIMAL WELFARE LEAGUE,INC FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31,2024 AND 2023 (WITH INDEPENDENT AUDITORS'REPORT THEREON) RECEIVED JUL - 2 2026 Southold Town Clerk NORTH FORK ANIMAL WELFARE LEAGUE,INC. TABLE OF CONTENTS DECEMBER 31,2024 AND 2023 Pa e s Independent Auditors'Report 1 -2 Financial Statements Statements of Financial Position 3 Statements of Activities and Changes in Net Assets 4 Statements of Expenses by Function and 5 Natural Classification Statements of Cash Flows 6 Notes to the Financial Statements 7- 12 Thomas Jones,CPA Roy Little, CPA Kathleen Galway,CPA : Jones,Little&Co.,CPA's,LLP Leanne Poe,CPA www.jonesandlittle.com INDEPENDENT AUDITORS'REPORT To the Board of Directors North Fork Animal Welfare League,Inc Peconic,New York 11958 Report on Audit of the Financial Statements Opinion We have audited the accompanying financial statements of North Fork Animal Welfare League, Inc. ("NFAWL"), which comprises the statements of financial position as of December 31, 2024 and 2023, and the related statements of activities and changes in net assets, expenses by function and natural classification, and cash flows for the years then ended,and the related notes to the financial statements. In our opinion,the financial statements referred to above present fairly,in all material respects,the financial position of the North Fork Animal Welfare League as of December 31, 2024 and 2023, and changes in its net assets, expenses by function and natural classification and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditors'Responsibilities for the Audit of the Financial Statements section of our report.We are required to be independent NFAWL, and to meet our other ethical responsibilities,in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management 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. In preparing the financial statements,management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about NFAWL's ability to continue as a going concern within one year after the date that the financial statements are available to be issued. 86 West Main Street,Suite 2 5225 Nesconset Highway,Suite 50 186 W.Montauk Highway,Suite D3 East Islip, NY 11730-2323 Port Jefferson Station, NY 11776-2060 Hampton Bays,NY 11946-2347 (631)277-8500—Fax(631)277-8502 (631)473-9500—Fax(631)473-1259 (631)728-4020—Fax(631)728-4649 Auditors'Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,whether due to fraud or error,and to issue an auditors'report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements, including omissions, are considered material if there is substantial likelihood that, individually or in the aggregate, they would influence the judgement made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards,we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,and design and perform audit procedures responsive to those risks. Such procedures include examining,on a test basis,evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on of the effectiveness of NFAWL's internal control. Accordingly,no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgement, there are conditions or events, considered in the aggregate, that raise substantial doubt about NFAWL's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding,among other matters,the planned scope and timing of the audit,significant audit findings,and certain internal control-related matters that we identified during the audit. ellf uV Hampton Bays,New York July 31, 2025 2 NORTH FORK ANIMAL WELFARE LEAGUE,INC. STATEMENTS OF FINANCIAL POSITION DECEMBER 31,2024 AND 2023 2024 2023 ASSETS CURRENT ASSETS Cash and Cash Equivalents $ 117,854 $ 28,483 Inventory 2,000 2,000 Prepaid Insurance 16,356 12,539 TOTAL CURRENT ASSETS 136,210 43,022 Property and Equipment,Net 3,183,383 3,269,664 OTHER ASSETS Investments 1,759,742 2,119,958 Security Deposits 15,000 15,000 TOTAL OTHER ASSETS 1,774,742 2,134,958 TOTAL ASSETS $ 5,094,335 $ 5,447,644 LIABILITIES AND NET ASSETS LIABILITIES CURRENT LIABILITIES Accounts Payable $ 81,192 $ 54,580 Accrued Expenses 12,978 13,445 TOTAL CURRENT LIABILITIES 94,170 68,025 TOTAL LIABILITIES 94,170 68,025 NET ASSETS Without Donor Restrictions 5,000,165 5,379,619 TOTAL NET ASSETS 5,000,165 5,379,619 TOTAL LIABILITIES AND NET ASSETS $ 5,094,335 $ 5,447,644 See Accompanying Notes to Financial Statements 3 NORTH FORK ANIMAL WELFARE LEAGUE,INC. STATEMENTS OF ACTMTIES AND CHANGES IN NET ASSETS YEARS ENDED DECEMBER 31,2024 AND 2023 WITHOUT WITH DONOR DONOR 2024 2023 RESTRICTIONS RESTRICTIONS TOTAL TOTAL REVENUES AND GAINS Contributions $ 456,102 $ - $ 456,102 $ 315,815 Grants - - - 454,670 Program Services 605,037 - 605,037 599,838 Miscellaneous Revenue 4,515 - 4,515 16,338 Fundraising 36,312 - 36,312 58,162 TOTAL REVENUES AND GAINS 1,101,966 - 1,101,966 1,444,823 EXPENSES Program Services 1,361,349 - 1,361,349 1,296,708 Management and General 295,899 - 295,899 274,414 Fundraising 19,774 - 19,774 15,917 TOTAL EXPENSES 1,677,022 - 1,677,022 1,587,039 NON-OPERATING ACTIVITIES Income on Long-Term Investments (Net of Investment Fees) 17,484 - 17,484 15,747 Net Realized and Unrealized Gains on Long-Term Investments 178,118 - 178,118 271,835 TOTAL NON-OPERATING ACTIVITIES 195,602 - 195,602 287,582 CHANGE IN NET ASSETS (379,454) - (379,454) 145,366 NET ASSETS-BEGINNING 5,379,619 - 5,379,619 5,234,253 NET ASSETS-ENDING $ 5,000,165 $ - $ 5,000,165 $ 5,379,619 See Accompanying Notes to Financial Statements 4 NORTH FORK ANIMAL WELFARE LEAGUE,INC. STATEMENTS OF EXPENSES BY FUNCTION AND NATURAL CLASSIFICATION YEARS ENDED DECEMBER 31,2024 AND 2023 PROGRAM MANAGEMENT 2024 2023 SERVICES AND GENERAL FUNDRAISING TOTAL TOTAL Salaries and Wages $ 610,944 $ 172,317 $ - $ 783,261 $ 701,999 Payroll Taxes and Fringe Benefits 54,586 12,804 - 67,390 61,266 Health Insurance 25,375 9,868 - 35,243 37,432 Veterinarian Fees 18l,572 - - 181,572 202,062 Kennel Supplies 207,617 - - 207,617 181,986 Cat Food and Supplies 2,870 - - 2,870 3,991 Professional Fees 30,504 178 - 30,682 32,900 Credit Card Fees - - - - 7,816 Dues and Subscriptions - 436 - 436 5,204 Insurance 53,026 13,257 - 66,283 69,762 Bank Fees - 1,516 - 1,516 561 Computer Expenses - 9,620 - 9,620 7,396 Advertising 5,447 - 961 6,408 9,445 Office Expenses 5,562 22,249 - 27,811 10,044 Postage and Delivery - 2,481 - 2,481 3,593 Automobile Expense 3,623 906 - 4,529 5,042 Telephone and Internet 4,950 1,237 - 6,187 7,057 Rubbish Removal 16,066 4,017 - 20,083 12,997 Licenses and Permits 350 - - 350 350 Repairs and Maintenance 11,385 2,846 - 14,231 21,274 Continuing Education - 1,312 - 1,312 350 Utilities 38,510 9,628 - 48,138 42,909 Miscellaneous 4,102 1,026 - 5,128 11,812 Grant Writer - 30,000 - 30,000 30,000 Travel 804 201 - 1,005 2,681 Fundraising Expense - - 18,813 18,813 14,500 Depreciation Expense 104,056 - - 104,056 102,610 Total $ 1,361,349 $ 295,899 $ 19,774 $1,677,022 $ 1,587,039 See Accompanying Notes to Financial Statements 5 NORTH FORK ANIMAL WELFARE LEAGUE,INC. STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31,2024 AND 2023 2024 2023 CASH FLOWS FROM OPERATIONS: CHANGE IN NET ASSETS $ (379,454) $ 145,366 Adjustments to Reconcile Change in Net Assets to Cash (Used in)Provided by Operating Activities: Depreciation 104,056 102,610 Unrealized(Gain)Loss on Investments (23,236) (205,699) Changes in Operating Assets and Liabilities: Prepaid Insurance (3,817) (565) Accounts Payable 26,612 13,737 Credit Card Payable - (2,082) Accrued Expenses (467) 504 NET CASH(USED IN)PROVIDED BY OPERATING ACTIVITIES (276,306) 53,871 CASH FLOWS FROM INVESTING ACTIVITIES: Improvements (14,675) (124,754) Purchase of Fixed Assets (3,100) - Proceeds from Sale of Investments 1,036,185 1,002,197 Purchase of Investments (652,733) (956,390) NET CASH PROVIDED BY(USED IN)INVESTING ACTIVITIES 365,677 (78,947) NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS 89,371 (25,076) CASH AND CASH EQUIVALENTS-BEGINNING 28,483 53,559 CASH AND CASH EQUIVALENTS-ENDING $ 117,854 $ 28,483 SUPPLEMENTAL INFORMATION: Interest $ 887 $ 1,624 Income Taxes $ - $ - See Accompanying Notes to Financial Statements 6 NORTH FORK ANIMAL WELFARE LEAGUE,INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2024 AND 2023 NOTE 1: NATURE OF ORGANIZATION The North Fork Animal Welfare League,Inc. ("NFAWL")was incorporated on July 19, 1963,in the state of New York.NFAWL was established to care for animals by locating owners of lost animals, by finding homes for homeless animals, and providing home, food, grooming, exercise, and medical treatment. In 1980, the Certificate of Incorporation of NFAWL was amended to enable NFAWL to contract with the Southold Town to manage and operate Southold Animal Shelter. NFAWL now operates two Animal Shelters: Southold and Riverhead,and covers the area from Orient to Riverhead,NY. NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies followed by NFAWL are described below: A. Basis of Presentation The accompanying financial statements have been prepared on the accrual basis of accounting, where revenue is recognized when earned and expenses are recognized when incurred. B. Net Assets NFAWL is required to report information regarding its financial position and activities according to two classes of net assets: net assets without donor restrictions and net assets with donor restrictions. Net Assets Without Donor Restrictions-The part of net assets of a not-for profit entity that is not subject to donor-imposed restrictions(donors include other types of contributors,including makers of certain grants).NFAWL's board has designated a portion of its contributions to its capital campaign. Net Assets With Donor Restrictions-Net assets with donor restrictions of NFAWL are those net assets which have been limited by donor-imposed stipulations that specifies a use for a contributed asset that is more specific than broad limits resulting from either the nature of NFAWL, the environment in which it operates, or purposes specified in its articles of incorporation or bylaws or comparable documents for an unincorporated association. NFAWL's net assets that have donor restrictions are to be used specifically for capital items. C. Cash and Cash Equivalents For the purpose of these financial statements,NFAWL considers all liquid instruments purchased with a maturity of three months or less to be cash equivalents. D. Concentration of Credit Risk Financial instruments that potentially subject NFAWL to concentrations of credit risk consist principally of cash and cash equivalents. NFAWL maintains its cash and cash equivalents in various bank accounts that,at times,may exceed federally insured limits. NFAWL's cash and cash equivalent accounts have been placed with high credit quality financial institutions and has not experienced,nor does it anticipate,any losses with respect to such accounts. E. Merchandise Inventory Merchandise inventory for NFAWL at the end of the reporting period is recorded at the lower of cost or market(first-in,first out). 7 NORTH FORK ANIMAL WELFARE LEAGUE,INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2024 AND 2023 NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) F. Prepaid Insurance Prepaid expenses consist of insurance premiums paid in the current fiscal year,which benefit future periods. For the years ended December 31, 2024 and 2023, prepaid insurance was $16,356 and $12,539,respectively. G. Advertising NFAWL's policy is to expense advertising costs as they are incurred. Advertising expenses for the years ended December 31,2024 and 2023 was$6,408 and$9,445,respectively. H. Revenue Recognition NFAWL recognizes revenue in accordance with FASB ASC Topic 606,Revenue from Contracts with Customers. I. Fixed Assets Property and equipment is capitalized at cost.Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets or the lease term.The useful lives range from three to thirty- nine years. NFAWL's policy is to capitalize betterments acquired for greater than $1,000 and expense normal repairs and maintenance as incurred. Management periodically evaluates whether events or circumstances have incurred indicating the carrying amount of the long-lived assets may be recovered. J. Fair Value Measurement NFAWL is required to disclose the fair value of certain financial instruments such as cash,pledges receivable, accounts payable and accrued expenses, and current portions of long-term debt. The carrying amount for each of these financial instruments are shown on the financial statements,and their fair value is approximate because of the short-term nature of these instruments. K. Classification of Expenses by Function and Natural Classification The costs of providing the program and other activities of NFAWL have been summarized on a functional basis in the Statement of Expenses by Function and Natural Classification,which include all expenses incurred for each year. Accordingly, certain costs have been allocated based on an analysis of personnel time, space utilized,and other equitable bases for the related activities (50% of management's payroll, payroll taxes, and health insurance; 20% of insurance, auto expense, office, telephone and internet, rubbish removal, repairs and maintenance, miscellaneous, and utilities.) L. Income Tax Status NFAWL is a not-for-profit corporation that is exempt from federal and state income taxes under Section 501(c)(3)of the Internal Revenue Code and is classified as"other than a private foundation." Therefore,no provision for income taxes is reflected in the financial statements. NFAWL does not believe there are any material uncertain tax positions and, accordingly,has not recognized any liability for uncertain tax benefits. For the year ended December 31, 2024, there were no interest or penalties recorded or included in the financial statements.NFAWL's Form 990, Return of Organization Exemptfrom Income Tax,for the years ending on or after December 31,2021, are subject to examination by the IRS,generally for three years after they were filed. 8 NORTH FORK ANIMAL WELFARE LEAGUE,INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2024 AND 2023 NOTE 2:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued) M. Volunteer and Donated Services Volunteers contribute significant amounts of time to NFAWL's program services, administration, and fundraising and development activities. However, the financial statements do not reflect the value of these contributed services because they do not meet recognition criteria prescribed by generally accepted accounting principles. Contributed goods are recorded at fair value at the date of donation. N. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period.Actual results may differ from those estimates. O. Litigation NFAWL is subject to litigation in the ordinary conduct of its affairs.Management does not believe, however,that such litigation,individually or in aggregate,is likely to have a material adverse effect on the financial condition of NFAWL. P. Accounting Pronouncements Recent Accounting Pronouncements The Financial Accounting Standards Board(FASB)has issued certain accounting standard updates effective December 31, 2024. These standards have had no impact on NFAWL's financial statements. New Accounting Pronouncements Not Yet Effective FASB has issued certain accounting standards updates as of December 31,2024, that will become effective in subsequent periods. Management believes that none of the updates would have significantly affected NFAWL's financial accounting measures or disclosures had they been in effect during the fiscal year ended December 31, 2024 and does not believe that any of those pronouncements will have a significant impact on NFAWL's financial statements at the time that they become effective. NOTE 3: FAIR VALUE INVESTMENTS NFAWL reports investments in accordance with ASC 820 Fair Value Measurements that establishes a framework for measuring fair value which provides a fair value hierarchy that 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 or liabilities(Level 1 Measurements)and the lowest priority to unobservable inputs(Level 3 Measurements). The three levels of the fair value hierarchy under ASC 820 are described below: Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that NFAWL has the ability to access. Level 2 Inputs to the valuation methodology include: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; 9 NORTH FORK ANIMAL WELFARE LEAGUE,INC. NOTES TO FINANCIAL STATEMENTS DECEM 3ER 31, 2024 AND 2023 NOTE 3:FAIR VALUE INVESTMENTS (continued) • Inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset's or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Following is a description of the valuation methodologies used for assets measured at fair value.There have been no changes in the methodologies used at December 31,2024. Investments: Valued at the underlying fair values of the investments in the marketable securities based on quoted market values. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although NFAWL believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table sets forth by level,within the fair value hierarchy,NFAWL's assets at fair value as of December 31,2024 and 2023: Assets at Fair Value as of December 31, 2024 Level Level Level Total Investments $ 1,759,742 $ - $ - $ 1,759,742 Assets at Fair Value as of December 31,2023 Level Level Level Total Investments $ 2,119,958 $ - $ - $2,1192958 NOTE 4:LIQUIDITY AND AVAILABILITY OF RESOURCES The following reflects NFAWL's financial assets as of the Statement of Financial Position date, reduced by amounts not available for general use because of donor-imposed restrictions within one year of the Statement of Financial Position date. 2024 2023 Cash and Cash Equivalents $ 117,854 $ 28,483 Investments 1,759,742 2,119,958 $ 1,877,596 $ 2,148,441 10 NORTH FORK ANIMAL WELFARE LEAGUE,INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2024 AND 2023 NOTE 5: PROPERTY AND EQUIPMENT,NET Property and Equipment,Net consisted of the following at December 31,2024 and 2023: 2024 2023 Land $ 242,500 $ 242,500 Land Improvements 11,157 11,157 Building 1,012,259 1,012,259 Building Improvements 2,244,378 2,229,703 Equipment 8,784 5,684 Vehicles 95,749 95,749 3,614,827 3,597,052 Less:Accumulated Depreciation (431,444) (327,388) Property and Equipment,Net $3,183,383 $ 3,269,664 Depreciation expense for the years ended December 31, 2024 and 2023 was $104,056 and $102,610, respectively. NOTE 6:ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consist of the following at December 31,2024 and 2023: 2024 2023 Accounts Payable -Trade $ 81,192 $ 54,580 Professional Fees 11,650 11,400 NYS Charities Bureau Fee - 275 Payroll Taxes Payable 1,328 1,770 $ 94,170 $ 68,025 NOTE 7: TOWN CONTRACTS A. Town of Southold NFAWL's agreement with the Town of Southold(the Town)is in effect through February 28,2026. Under this agreement, the Town has agreed to make an annual contribution of$232,484,which is adjusted for the index ratio in the preceding year.NFAWL is not required to pay rent to the Town during the term of the agreement,and NFAWL has not determined or recorded the fair value of the rent. For the years ended December 31,2024 and 2023,NFAWL collected$283,915 and$277,458 respectively, which is included in program revenue on the statement of activities and changes in net assets. B. Town of Riverhead In 2019, NFAWL's agreement with the Town of Riverhead for the operation of the shelter was extended through August 2029. Under the agreement, the Town has agreed to make an annual contribution.Effective September 1,2022,the annual contribution is calculated using the prior year annual payment as the base amount adjusted for the price index.For the years ended December 31, 2024 and 2023, NFAWL collected $310,703 and $295,257 respectively, which is included in program revenue on the statement of activities and changes in net assets. 11 NORTH FORK ANIMAL WELFARE LEAGUE,INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2024 AND 2023 NOTE 8:SUBSEQUENT EVENTS In connection with the preparation of these financial statements,NFAWL has evaluated events through July 31, 2025, the date the financial statements were available to be issued.NFAWL has determined no other subsequent events have occurred during this period that would require adjustment to or disclosure in the financial statements.NFAWL has no responsibility to update these financials for events and circumstances occurring subsequent to July 31,2025. 12 DECEIVE® NORTH FORKANIMAL WELFARE LEAGUE JUL ' 2 203 COST OF SERVICES Southold Torun Clerk YEAR AMOUNT 2026(Current). $232,4.84.. At Contract Signing $246,433 2027 $261,219 2028 $266,443 2029 $271,772 2030 $277,207 2031 $282,751 2032 $288,406 2033 $294,174 2034 $300,058 2035 $306,059 2036 $312,180