Food for the Hungry adjusts 990 amounts for valuation of GIK

Food for the Hungry has prepared pro forma revisions to its 990s for 2007, 2008, and 2009. They are following the suggestion of Charity Navigators to revise the 990 amounts to reflect what would have been reported if the valuations used in 2010 had been applied in prior years. Previous post discussed that briefly.

You can find the revised amounts at their website by clicking the “about us” tab and then clicking the “Finances” tab.

At the bottom of the page you can find the downloadable audit reports and 990s for the last three years. Under the “Charity navigator exhibits” heading you can find an attestation letter from the audit committee here and the restated pro forma amounts for 2005 through 2009 here.  The letter is in PDF format while the pro forma amounts are in an Excel spreadsheet.

I have not had time to analyze the numbers, let alone ponder the implications. Just wanted to get this information out, since it is very fresh. The letter from the audit committee chair is dated August 22.

Here is the total revenue amount, as reported on the 990 and as recalculated on a pro forma basis. The ’07, ’08, and ’09 amounts are from the template. I pulled the ’10 amounts from the tax return. The amount of revision is calculated along with the changed amount as a percentage of reported revenue.

fye 9-07 fye 9-08 fy 9-09 fye 9-10
Revenue per 990   88,806,633    129,940,033   193,512,938    87,417,777
Revised total   85,046,851      92,544,568     91,983,949    87,417,777
Change     3,759,782      37,395,465   101,528,989 no change
% adjustment 4% 29% 52%

The only further analysis I will do for this first glance at the information is to show the functional allocation percentages as-filed and on a pro-forma basis. For each year, the following table pulls the total expenses and program expenses from the FFTH spreadsheet for both the as-filed amount and pro-forma amount. The supporting services are calculated.

I’m not sure, but think there is a clerical error in cell G17 for the amount of program services. You can check it out for yourself. As result I recalculated what the program services would be based on the change in all the other lines.

Since the most consistent way to analyze functional percentages is to look at each category as a percent of total expenses, that’s how I will make the calculation. The last two lines for each year are the program services as a percent of total expenses, and then the supporting services (total of general & administrative plus fundraising) as a percentage of total expenses.

 Here is the as-filed and pro-forma functional info: 

fye 9-30-07
as filed pro forma
Total expenses         91,371,573       87,611,791
Program expenses         83,316,914       79,557,132
Supporting services           8,054,659         8,054,659
Program as % of total expense 91.2% 90.8%
Supporting svc as % of total   expense 9.7% 10.1%
fye 9-30-08
as filed pro forma
Total expenses    126,302,036     88,906,571
Program expenses    116,823,238     79,427,773
Supporting services       9,478,798       9,478,798
Program as % of total expense 92.5% 89.3%
Supporting svc as % of total   expense 8.1% 11.9%
fye 9-30-09
as filed pro forma
Total expenses   193,139,000     91,610,011
Program expenses   183,374,165     81,845,176
Supporting services       9,764,835       9,764,835
Program as % of total expense 94.9% 89.3%
Supporting svc as % of total   expense 5.3% 11.9%

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