Not-for-profit Entity: Man in the Mirror, Government Entity for CAFR project: Calvert County, MD

1) What public accounting firm performed the audit of the entity’s financial statements?

Carr, Riggs & Ingram, LLC was the firm that audited the entity's financial statements.

2) Is it possible to determine which firm/individual prepared the form 990.  If so, who? Is it the same organization for both documents (990 and audited financials)?

Yes, Carr, Riggs & Ingram, LLC. They are the same firm who prepared the financial statements for Man in the Mirror, INC.

3) Does the form 990 have a schedule A.  Does it identify the reason for the charity  status?  What is the reason?

Yes, as an organization that normally receives a substantial part of its support from a governmental unit or from the general public described in Section 170(b)(1)(A)(iv).

Financials

1) On the audited financials, what “Program” accounted for the largest expense?  Is this what you would have expected.

Leadership community had the largest expense for FY 2016, with a total of 2,639,498. I expected this to be so because, the organization is focused on spreading the Christian gospel. This program specifically helps churches disciple men through the journey to biblical manhood. A flexible process that combines the principles of no man left behind. Church events, small group curricula, bible study, and more. Located throughout the country, they serve as local mens' discipleship experts to any church that wants help. They also coordinate a local coalition for men's discipleship, made up of churches and leaders committed to the cause.

2) Does the organization have temporarily and permanently restricted net assets? What is the nature of these restrictions?

Man in the Mirror, INC., has temporarily restricted net assets, depending on the existence and/or nature of any donor restrictions. These restrictions can be a stipulated time or purpose. 

Ratios/performance

1) What is the program expense ratio of this organization? Program expense ratio = program service expenses/ total expenses.  Calculate this number using both the audited financials and the form 990.  Are the ratios different? Why?

Audited Financials

Program expense ratio = 89%

3,552,077 / 3,979,179 = 0.8926

IRS Form 990

Program expense ratio = 87%

3,285,179 / 3,765,112 = 0.8725

I believe the ratios are different because there is a difference reported within program expenses on the IRS Form 990 due to tax purposes. 

2) What are the proportion of resources being used for fundraising activities (fundraising expenses divided by total expenses)? Please show us the numbers  you used in your calculations.

5% of the resources are being used for fundraising activities. 

205,683 / 3,979,179 = 0.0516

3) What are your thoughts on the financial condition of this organization? You can look at liquidity, size of its liabilities, where is the entity receiving its revenue and support, its access to other fiscal resources.

Overall, I would say the financial condition of Man in the Mirror, INC., appears to be in a solid position. They receive most of their revenues from contributions, which was $342,982 more than FY 2015. However, they had $911,380 temporarily restricted by donors for Leadership Community. Also, they purchased a building in March 2016, and the building was placed in service in December 2016. They had in increase in net assets of $386,258. 

The Organization entered into an operating lease for office space. The lease called for monthly payments of approximately $5,800 through December 2016. The Organization also leased a postage machine with monthly payments of $146 through July 2018. Lease expense related to all operating leases was approximately $69,900 and $65,700 for 2016 and 2015, respectively. The following is a schedule of future minimum lease payments under these operating lease agreements as of December 31: 

2017          $1,752

2018            1,022

Total minimum lease payments 2,774