FEDERAC1ON PUERTORRIQl'ENA DE FUTBOL, INC.

FINANCIAL STATEMENTS
DECEMBER 31, 2011 AND 2010

FEDERAC1ON PUERTORRIQIJENA DE FUTBOL, INC.

FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER31,2011 AND 2010
AND INDEPENDENT AUDITOR'S REPORT

TABLE OF CONTENT

Page
INDBPKNDRNT AUDITOR'S RFPORT

FINANCIAL ST'ATKMLNTS:
Statement of Finaneial Position

Statement ol Operations and Change in Net Assets

Statement of Cash Flows

Notes to Financial Statements

5-8

VAZQUEZ - HERNANDEZ & ASSOC.

certified PuUc Jccortrtund Consultants

INDEPENDENT AUDITOR'S REPORT

Board of Directors
Federation Puertorriquena de Futbol, Inc.
San Juan, Puerto Rico
I have audited the accompanying statements of financial position of Federacion
Puertorriquena de Futbol, Inc., a non-profit organization, as of December 31, 2011 and 2010,
and the related statements of operations and changes in net assets, and cash flows for the
years then ended. These financial statements are responsibility of the organization. My
responsibility is to express an opinion on these financial statements based on my audits.
I conducted my audits in accordance with the auditing standards generally accepted in the
United States of America. Those standards require that I plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes assessing the accounting
principle used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. I believe that my audits provide a reasonable basis
for my opinions.
In my opinion the financial statements referred above present fairly, in all material respects,
the financial position of Federacion Puertorriquena de Futbol, Inc., as of December 31, 2011
and 2010, and the results of its operations and its cash flows for the years then ended, in
conformity with accounting principles generally accepted in the United States of America.

Juan C. Vazquez-Hernandez
Certified Public Accountant
License number 2704

M+*

s? \ f ,
'

L'

II
CT

Stamp number E 1 32 1 7 was affixed

to original report

San Juan, Puerto Rico

March 26, 2011

352 SAN CLAUDIO AVENUE, SUITE 221, SAN JUAN, PUERTO Rico 00926-4107
PHONE (787) 294-0633 / 294-0634 1:AX (787) 294-0635
www.vazquezhernandezcpa.com

FEDERACION PUERTORRIQl ENA DF FUTBCJL, INC.

STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, 2011 AND 2010

Temporary
Restricted

Unrestricted

Totals

2011

2010

ASSETS
CURRENT ASSETS
Cash
Accounts receivable
Accounts receivable- other
Due from HAP fund
Inventories

29.133

29.133
PROPERTY AND EQUIPMENT
Equipment
Furniture and fixtures

Less: Accumulated depreciation

TOTAL ASSETS $

4,89^
15.204
2.281
823
1,386
24,591

S 34,030
15.204
2,281
823
1,386
53,724

19.309
2,600
21,909
18,044
3,865

19,309
2,600
21,909
18,044
3,865

85,556
4,615
6.501
96.672
14,295
2,600
16,895
16,200
695

20,133

28,456

$ 57,589

97,367

21,844
823
22,667

44,82.1
44.821

$ 66,665
823
67,488

80,593

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES
Accounts payable and accrued liabilities
5>
Due to local fund
TOTAL CURRENT LIABILITIES
NET ASSETS
Net assets- Restricted
Net assets- Unrestricted
TOTAL NET ASSETS
TOTAL LIABILITIES AND NET ASSETS $

See accompanying notes to financial statements

(16.365)
(16,365)

6.466
6.466
29.133

28,456

80,593

6,466
(16,365)
(9,899)
S 57,589

74.496
(57.722)
16.774
$

97,367

FEDERAt'ION PUERTORRIQUENA DE I UTBOL, INC.

STATEMENTS OF OPERATIONS A N D CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010

Temporary
Restricted
REVENUES
Contributions received from l ; ll ; A- FAP
Contributions received from FIFA- WIN
Affiliation fees
Contributions
Other revenues

TOTAL REVENUES
OPERA! ING EXPENSES
Male Tournaments
Female Tournaments
General and administrative
infrastructure improvements and utilities
Office supplies, lease equipment and miscellaneous
Travel and lodging
Technical development, commissions and trainings
Professional services
Marketing and communication-,
Fulsal/ lieach football
Insurance
[ 'niforms, rewards and trophies
Memberships and affiliations
Bad debt expense
Bank charges and miscellaneous expenses
TOTAL OPERATING EXPENSES

Totals

675.1)0(1
675,000

228,625
64,601
161.545
13.538
3.640
29,231
74.531
143,455
1.845
2,536
.

2010

55,900
58.313
13,679
127.892

$ 675.000
55.900
58,313
13,679
802,892

$ 375,000
400.000
129.952
-

10.863
3,977

95,670
50.370
176,309
50.003
42 602
1 6 1 .839
97.473
79.309
13.451
8.974
8,067
30.669
13,507
75.437
23.149
924.829

904.952

6,264
!2,792
424
743.030

983
(645)
2,213
123,910

239,488
68,581
161.545
27,282
13,729
50.027
1 02.6 1 3
158.825
20.033
2,786
7,247
12,147
2.637
866,940

74.U130

1.844
125,754

1.844
868,784

2.672
927.501

13.744
1 fl.089
20.796
28,082
15.370
18.188
250

Depreciation o.petise
TOTAL EXPENSES

2011

Unrestricted

168.030)

2,138

(65.892)

(22.549)

NET ASSETS AT B E G I N N I N G OF Y E 4 R

74,496

1 57.722 i

16.774

39.323

PRIOR PERIOD ADJUSTMENT

39.219

39,2 1 ')

INCREASE/ (DECREASE) IN NET ASSETS

NET ASSETS AT END OK YEAR

See accompanying notes to financial statements

6/166

(16.365)

(9.899) $

16.774

FFDERACION PUERTORRIQUENA DF FUTBOL, INC.

STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2011 AM) 20! 0

CASH FLOWS FROM OPERATING ACTIVITIES

Decrease in net assets

2011

2010

$ (65,892)

S (22,549)

Adjustments to reconcile change in n^i

assets to net cash provided by operating activities:
Depreciation expense
Bad debt expense
Changes in operating assets and liabilities:
(Increase)/ Decrease in accounts receivable
Increase in inventory
Increase/(Decrease) in accounts payable

,.844

NET CASH USED IN OPERATING ACTIVITIES

CASH FLOWS FROM INVESTING ACTIVITIES
Acquistion of equipment
NET CASH USED IN INVESTING ACTIVITIES

2,672
73,437

(7,192)
(1.386)
26,114

l'80.450'i

(46,512)

(2 5,6921

(5,014)

(934i

(5,014)

(934)

1,198

CASH FLOWS FROM INVESTING ACTIVITIES

Payments to loan payable

(20,000)

NET CASH USED IN INVESTING ACTIVITIES

NET DECREASE IN CASH

(20.000)
(51,526)

(46,6261

85,556

CASH AT B E G I N N I N G OF YEAR
CASH AT END OF Y E A R $

Sec accompanying notes to financial statements

-4-

34,030

85,556

FEDERACION PUERTORRIQUENA DE FUTBOL, INC.

NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2011 AND 2010

NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization
The "Fcdcracion Puertorriqucna de Futbol, Inc." (hereinafter referred to as the "FPF") is a private
associative organization incorporated as a non- profit organization organized under the laws of the
Commonwealth of Puerto Rico on 1970 to develop, promote, register, affiliate, regulate, facilitate and
motivate the soccer in Puerto Rico. The FPF is member of the Puerto Rico Olympic Committee.
The FPF supervise and control all the soccer games and tournaments, national and international,
celebrate in Puerto Rico. The FPF it's responsible for the organization and preparation of the Puerto Rico
Soccer National Team for a good representation of Puerto Rico on international tournaments.
Among other things, the FPF is also responsible to create the economics process needs to reach their
goals, including marketing and promoting the soccer in Puerto Rico.

Summary of significant accounting policies

Basis of accounting
The FPF adopted the provisions of Statements of Financial Accounting Standards (SFAS) No. 116.
Accounting for Contributions Received and Contributions Made, and (SFAS) No. 117, Financial
Statements for Non-for-Profit Organizations.
Under these provisions, net assets and revenues, expenses, gains and losses are classified based on the
existence or absence of donor-imposed restrictions. Accordingly, the net assets of the Organization and
changes therein are classified and reported as follows:
Unrestricted Net Assets - Net assets that are not subject to donor-imposed stipulations.
Temporarily Restricted Net Assets - Net assets subject to donor-imposed stipulations that they may
or will be met either transactions of the Organization and/or the passage of time.
Permanently Restricted Net Assets - Net assets subject to donor-imposed stipulations that they be
maintained permanently by the Organization. Generally, the donors of these assets permit the
Organization to use all or part of the income earned on related investments for general or specific
purposes.
Revenues are reported as increase in unrestricted net assets unless use of the related assets is limited by
donor-imposed restrictions. F^xpenses are reported as decreases in unrestricted net assets. Gains and
losses on other assets or liabilities arc reported as increases or decreases in unrestricted net assets unless
their use is restricted by explicit donor stipulation or by law. Expiration of temporary restrictions on net

-5-

FEDERACION PUERTORRIQUENA 1)E FUTBOL, INC.

NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2011 AND 2010

NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICTEScontinucd

assets (i.e.. the donor stipulated purpose has been fullllled and/or the stipulated time period has elapsed)
is reported as ^classifications between the applicable classes of net assets.
Contributions including unconditional promises to give are recogni/ed as revenues in the period
received. Contributions with donor-imposed restrictions that arc met in the same year as received are
reported as revenues of the unrestricted net assets class. Conditional promises to give arc not recogni/ed
until they become unconditional, that is. when the conditions on which they depend are substantially met.
Contributions of assets other than cash are recorded at their estimated fair value. Contributions to be
received after one year are discounted, if practicable, at an appropriate discount rate commensurate w i t h
the risks involved. Amorti/ation of discounts is recorded as additional contributions. An allowance for
uncollectible contributions receivable is provided, if necessary, based upon management's judgment
including such factors as prior collection history, type of contribution and nature of the activity.

Property and Equipment

Property and equipment are slated at cost at the date of acquisition, or fair market value at date of
donation in the case of gifts. Upon purchase, since donor restrictions have been met, the !:PI: reclassifies
the corresponding temporary restricted net asset to unrestricted net assets.
Depreciation is provided by the straight-line method over the useful live of the related assets.

Use of Estimates
The preparation of llnancial statements in conformity with generally accepted accounting principles in
the United States of America, requires management to make estimates and assumptions that affect the
recorded amounts of net assets at the date of the financial statements and reported amounts or revenues
and expenses during the reporting period. Accordingly, actual results could differ from those estimates.

Income Tuxes
The FPF is exempt from Income. Municipal and other local taxes under Section 1101 (6) oi'lhe amended
Puerto Rico Internal Revenue Code of 1994.

-6-

FEDERACION PUERTORRIQUENA DE FUTBOL, INC.

NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2011 AND 2010

NOTE B- UNRESTRICTED NET ASSETS PROGRAMS

During the year ended December 3 1. 2011 the FPF received funds from the following sources:
1. FIFA ("Fcdcracion Internale de Football Association")
During the year ended December 31. 2011. the FPF received $250.000 in contributions from
the FIFA pursuant to Financial Assistant Program (FAP). Additionally, the FIFA contributed
$425,000 as a bonus.
2. Affiliate fees
The FPF records affiliation fees from soccer clubs and associations as revenues when billed,
during the year ended December 31, 2011.
3. Contributions
The FPF records contributions from private corporations when received.
4. Other revenues
The funds received from other sources like: sale oftiekcts from games, sale of merchandise
and other miscellaneous were recorded when collected.

NOTE C- RELATED PARTIES TRANSACTIONS

During the year ended December 31. 2011. the amounts paid by FPF to two members of the board of
directors are summarized below:
Position
President
Secretary

Amount Paid
$ 49,080.00
24.729.00
$ 73,809^00

Other expenses as travel, meals, telephone and others were reimbursed to members of the board of
directors.

-7-

FEDERACION PUERTORRIQUENA DE FUTBOL, INC.

NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2011 AND 2010

NOTE D- CONCENTRATION OF CREDIT RISK

Financial instruments that potentially subject the FPF to concentrations of credit risk consist principally
of contributions receivable. During the year ended December 31, 2011. the FPF received approximately
84% of its revenues from FIFA contributions.

-8-