Kopernik Solutions

Financial Statements & Audit Report
For the Year Ended December 31, 2016

TABLE OF CONTENTS

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Independent Accountant’s Audit Report …………….…….………........................... 1
Financial Statements:
Statement of Financial Position ............................................................................. 2
Statement of Activities ........................................................................................... 3
Statement of Cash Flows ...................................................................................... 4
Statement of Functional Expenses ........................................................................ 5
Notes to Financial Statements ............................................................................... 6

155 Bay Ridge Avenue - Brooklyn - NY - 11220
www.JVCPAPLLC.com(718) 491-1241

Independent Auditor’s Report
To the Board of Directors
Kopernik Solutions
We have audited the accompanying financial statements of Kopernik Solutions, a Not-for-Profit
Corporation, which comprise the statement of financial position as of December 31, 2016, and the related
statements of activities, functional expenses, and cash flows for the year then ended, and the related
notes to the financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements inaccordance 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 fairpresentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.
OpinionIn our opinion, the financial statements referred to above present fairly, in all material respects, thefinancial position of the organization as of December 31, 2016, and the changes in its net assets and its
cash flows for the year then ended in accordance with accounting principles generally accepted in the
United States of America.

Brooklyn, New York
November 03, 2017

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Kopernik Solutions
Statement of Financial Position
December 31, 2016

ASSETSCash and cash equivalents$ 1,408,011

Grants receivable

364,770

Accounts receivable

7,313

Prepaid expenses

4,689

Fixed assets (net)-Other assets

12,684

Total Assets$ 1,797,467

LIABILITIES & NET ASSETS

Accrued expenses$

19,742

Deferred revenue

35,200Total Liabilities

54,942

Net Assets
Unrestricted

1,377,494

Temporarily restricted

365,031

Permanently restricted-

Total Net Assets
Total Liabilities and Net Assets

1,742,525$ 1,797,467

See independent auditor's report.
The accompanying notes are an integral part of these financial statements.

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Kopernik Solutions
Statement of Activities
For year ended December 31, 2016

Unrestricted

Temporarily
Restricted$ 1,597,402$ 365,031

Permanently
Restricted

Total

Revenues and other support
General contributions$-$1,962,433

ENERGIA program grant154,246--

154,246

Program service revenue

31,933--31,933

Interest income

1,118

-

-

1,118

In-kind support

11,250--

11,2501,795,949

365,031-2,160,980

Satisfaction of time and purpose restrictions

625,000(625,000)-

Total revenues, other support and net assets
released from restrictions

2,420,949(259,969)-

2,160,980

1,040,443--

1,040,443

Management and general

108,228--108,228

Fundraising

36,859--36,859Total expenses

1,185,530--

1,185,530

Changes in net assets

1,235,419(259,969)-

975,450

142,075

625,000-

767,075$ 1,377,494$ 365,031-$1,742,525

Total revenues and other support
Net assets released from restrictions-

Expenses
Program services

Net assets at beginning of year
Net assets at end of year$

See independent auditor's report.
The accompanying notes are an integral part of these financial statements.

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Kopernik Solutions
Statement of Cash FlowsFor year ended December 31, 2016

CASH FLOW FROM OPERATING ACTIVITIES:

Changes in Net Assets$

975,450

Adjustments to reconcile change in net assets to net cash
provided (used) in operating activities:
Changes in operating assets and liabilities
Decrease/(increase) in assets:
Grants receivable(364,770)

Accounts receivable

6,871

Prepaid expenses(2,081)Other assets(884)(Decrease)/increase in liabilities:
Accrued expenses

4,136

Deferred revenue(38,941)

Net cash provided by/(used in) operating activities

579,781

CASH FLOW FROM INVESTING ACTIVITIES:

None

--

Net cash provided by/(used in) investing activities-

CASH FLOW FROM FINANCING ACTIVITIES:

None

-

Net cash provided by/(used in) financing activities-

NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS

579,781

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

828,230

CASH AND CASH EQUIVALENTS AT END OF YEAR

$ 1,408,011

SUPPLEMENTAL CASH FLOWS INFORMATION:

See independent auditor's report.
The accompanying notes are an integral part of these financial statements.

None

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Kopernik Solutions
Statement of Functional Expenses
For year ended December 31, 2016

ProgramServices

Grants$Compensation and benefits
Professional fees

Management
and General

931,564$-

Fundraising

$

-

Total

$

931,564

76,06851,98418,066

146,118-

20,531-

20,531

623

879

1,542

Office expense

40

Information technology

-

434

434

868

Conference and travel

13,42913,42911,94038,798Staff Development

2,293

-

-

2,293

Communications

4,724

2,835

1,890

9,449

Foreign exchange loss-

12,252-

12,252

License, dues and fees

1,075

6,140

3,650

10,865

1,029,193

108,228

36,8591,174,280

11,250--

11,250

Expenses before in-kind

Services (in-kind)
Total Expenses$ 1,040,443$

108,228$

36,859See independent auditor's report.
The accompanying notes are an integral part of these financial statements.

$

1,185,530

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Kopernik Solutions
Notes to Financial Statements
December 31, 2016

Note 1 - Description of Organization
Kopernik Solutions (the “Organization) is a not-for-profit organization incorporated on
September 18, 2009 in New York State.
The organization was formed for the charitable purpose of providing developmental
assistance to poor and disadvantaged communities in the world through the use oftechnology or innovative products, services and solutions designed to improve the quality of
their lives.
Support for the organization’s programs is derived from foundation grants and generalcontributions. The Organization is exempt from federal income taxes as an organization (nota private foundation) formed for charitable purposes under Section 501(c) (3) of the Internal
Revenue Code. Donors may deduct contributions made to the Organization within Internal
Revenue Code requirements.

Note 2 - Significant Accounting Policies
The organization prepares its financial statements in accordance with generally accepted
accounting principles promulgated in the United States of America (U.S. GAAP) for not-forprofit organizations on an accrual basis. The significant accounting and reporting policies
used by the organization are described below.
Unrestricted Net Assets: Unrestricted net assets are resources available to support
operations. The only limits on the use of unrestricted net assets are the broad limits resulting,from the nature of the organization, the environment in which it operates, the purposes
specified in its corporate documents and its application for tax-exempt status, and any limits
resulting from contractual agreements with creditors and others that are entered into in thecourse of its operations. Board-designated funds represent unrestricted funds which may,from time to time, be designated by the board of directors for specific purposes.
Temporarily Restricted Net Assets: Temporarily restricted net assets are resources that are
restricted by a donor for use for a particular purpose or in a particular future period. The
organization's unspent contributions are classified in this class if the donor limited their use,
as are the unspent appreciation of its donor-restricted endowment funds.
When a donor's restriction is satisfied, either by using the resources in the manner specified
by the donor or by the passage of time, the expiration of the restriction is reported in thefinancial statements by reclassifying the net assets from temporarily restricted to unrestricted
net assets. Net assets restricted for acquisition of buildings or equipment (or less commonly,
the contribution of those assets directly) are reported as temporarily restricted until the
specified asset is placed in service by the organization, unless the donor provides more
specific directions about the period of its use.

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Kopernik Solutions
Notes to Financial Statements
December 31, 2016

Permanently Restricted Net Assets: Permanently restricted net assets are resources whose
use by the organization is limited by donor-imposed restrictions that neither expire by being
used in accordance with a donor's restriction nor by the passage of time. The portion of theorganization's donor-restricted endowment funds that must be maintained in perpetuity areclassified in this net asset class, as is the organization's beneficial interest in a perpetualcharitable trust held by a bank trustee.
All revenues and net gains are reported as increases in unrestricted net assets in thestatement of activities unless the use of the related resources is subject to temporary or
permanent donor restrictions. All expenses and net losses other than losses on endowment
investments are reported as decreases in unrestricted net assets. Net losses on endowment
investments reduce temporarily restricted net assets to the extent that net gains of the fundfrom prior years are unspent and classified there; remaining losses are classified as
decreases in unrestricted net assets. If an endowment fund has no net gains from prioryears, such as when a fund is newly established, net losses are classified as decreases inunrestricted net assets.
Cash Equivalents: Cash equivalents are short term, interest bearing, highly liquid investmentswith original maturities of three months or less, unless the investments are held for meeting
restrictions of a capital or endowment nature.
Contributions (Pledges) Receivable: Contributions receivable are unconditional promises togive that are recognized as contributions when the promise is received. Contributions
receivable that are expected to be collected in less than one year are reported at net
realizable value. Contributions receivable that are expected to be collected in more than one
year are recorded at fair value at the date of promise. That fair value is computed using apresent value technique applied to anticipated cash flows. Amortization of the resulting
discount is recognized as additional contribution revenue. The allowance for uncollectible
contributions receivable is determined based on management’s evaluation of the collectabilityof individual promises. Promises that remain uncollected more than one year after their due
dates are written off unless the donors indicate that payment is merely postponed. All
pledges receivable are expected by management to be collected during the next year.
Land, Buildings, Property and Equipment: Land, buildings, property and equipment arereported in the statement of financial position at cost, if purchased, and at fair value at thedate of donation, if donated. All land and buildings are capitalized. Equipment is capitalized if
it has a cost of $3,000 or more and a useful life when acquired of more than 1 year. Repairs
and maintenance that do not significantly increase the useful life of the asset are expensed
as incurred. Depreciation is computed using the straight-line method over the estimateduseful lives of the assets.
Accounting for Contributions: Contributions, including unconditional promises to give, arerecognized when received. All contributions are reported as increases in unrestricted net
assets unless use of the contributed assets is specifically restricted by the donor. Amounts
received that are restricted by the donor to use in future periods or for specific purposes are
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Kopernik Solutions
Notes to Financial Statements
December 31, 2016

reported as increases in either temporarily restricted or permanently restricted net assets,consistent with the nature of the restriction. Unconditional promises with payments due in
future years have an implied restriction to be used in the year the payment is due, and therefore are reported as temporarily restricted until the payment is due unless the contribution isclearly intended to support activities of the current fiscal year or is received with permanent
restrictions. Conditional promises, such as matching grants, are not recognized until they
become unconditional, that is, until all conditions on which they depend are substantially met.
Contributions received with temporary restrictions that are met in the same reporting period
are reported as unrestricted support and increase unrestricted net assets.
Gifts-in-Kind (Non-Cash Contributions): The organization periodically receives contributions
in a form other than cash or investments. If the organization receives a non-cash
contribution, the contributed asset is recognized as an asset at its estimated fair value at thedate of gift, provided that the value of the asset and its estimated useful life meets theorganization's capitalization policy. Donated supplies are recorded as contributions at thedate of gift and as expenses when the donated items are placed into service or distributed.
Expense Recognition and Allocation: The cost of providing the organization's programs andother activities is summarized on a functional basis in the statement of activities andstatement of functional expenses. Expenses that can be identified with a specific program or
support service are charged directly to that program or support service. Costs common tomultiple functions have been allocated among the various functions benefited. General andadministrative expenses include those costs that are not directly identifiable with any specificprogram, but which provide for the overall support and direction of the organization.
Fundraising costs are expensed as incurred, even though they may result in contributions
received in future years. The organization generally does not conduct its fundraising
activities in conjunction with its other activities.
Use of Estimates: The preparation of financial statements requires management to makeestimates and assumptions that affect the reported amounts of revenues and expenses
during the reporting period and the reported amounts of assets and liabilities at the date of
the financial statements. On an ongoing basis, the organization's management evaluates theestimates and assumptions based upon historical experience and various other factors andcircumstances. The organization's management believes that the estimates and assumptions
are reasonable; however, the actual results could differ from those estimates.

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Kopernik Solutions
Notes to Financial Statements
December 31, 2016

Note 3 - Fixed Assets
The details of fixed assets and useful life are as follows:
Website (5 Years)
Less accumulated depreciation
Net$ 9,830(9,830)$-0-.Note 4 - ENERGIA Grant
In September 2014, Kopernik entered into a cooperation agreement with The ENERGIAInternational Network on Gender and Sustainable Energy (part of ETC Foundation). Basedon the specifications, management has determined this agreement to a cost reimbursement
award. For grants determined to be cost reimbursement awards, grant revenue is recognized
as costs are incurred and funds received in excess of costs incurred are recorded as deferred
revenue. The total award amount is $585,000. The contract term is 36 months commencing
on September 1, 2014 and ending on August 31, 2017.
The details for the award are as follows:

Wonder Women
East Indonesia
Project

Advocacy Project

Total

Balance 01/01/2014
Funds received
Project expenditures
Balance 12/31/2014

125,177(45,558)
79,619-125,177(45,558)
79,619Balance 01/01/2015
Funds received
Project expenditures
Balance 12/31/2015

79,619
153,781(213,332)
20,068

119,956(65,883)
54,07379,619273,737(279,215)
74,141

Balance 01/01/2016
Funds received
Project expenditures
Exchange gain (loss)
Balance 12/31/2016

20,068134,297(145,085)
8,123
17,40354,073
19,949(60,464)
4,239
17,797

74,141
154,246(205,549)
12,36235,200Page

9Kopernik Solutions
Notes to Financial Statements
December 31, 2016

Note 5 - Major Contributor
During 2016, the Organization had one major contributor that accounted for approximately
69% of the Organization’s total revenues. Management believes that the Organization is not
exposed to any significant concentration risk in the near term.
Note 6 - Restricted Net Assets
The organization had no permanently restricted net assets at December 31, 2016. The
details for the temporarily restricted net assets for the year ending December 31, 2016 are as
follows:
Tem porarily
restricted
contributions

Balance
beginning of year

Net assets
released fromrestrictions

Balanceend of year

Nam e

Restriction Details

Exxonmobil
Foundation

These funds are restricted for use in a
future period

Ford Foundation

These funds w ere restricted for use in a
future period

125,000-(125,000)-

Light Up Aqaba

This project helps connect solar lights to
Syrian refugees in Aqaba camp, Jordan,and ease their cost of living w hilst
providing clean and safe lighting.

-

15,031-

15,031(625,000) $365,031

Total

$

$

500,000

625,000$$

350,000

365,031$$(500,000) $350,000

Note 7 - In-kind Services
In-kind contributions are reflected as contributions at their fair value at date of donation andare reported as unrestricted support unless explicit donor stipulations specify how donatedassets must be used. For the year ending December 31, 2016, the Organization benefited
from donated technology services which were valued by the organization at $11,250. The
donated services were utilized in the Organization’s program services.
Note 8 - Affiliated Organizations
Kopernik Solutions works with affiliated organizations in Indonesia and Japan, which aregoverned by separate boards of directors in those countries. These affiliates, although notcommonly controlled, share an overall mission to reduce poverty through the distribution of
simple technology to people in need in developing countries.
Yayasan Kopernik is registered as an Indonesian Foundation (Yayasan) with the Indonesian
Ministry of Law and Human Rights. Kopernik Japan is registered as a General Incorporated
Association in Japan. Neither affiliate is controlled by, or in control of, the Organization and
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Kopernik Solutions
Notes to Financial Statements
December 31, 2016

therefore, the accompanying financial statements do not include the accounts of Yayasan
Kopernik or Kopernik Japan. Transactions with Yayasan Kopernik and Kopernik Japan are
included as part of operations as program activities. See the note below – Related Party
Transactions.

Note 9 - Related Party Transactions
The Organization’s Indonesian affiliate, Yayasan Kopernik, is a legally separate entity and notunder common control. The Organization has made grants to Yayasan Kopernik to further theOrganization’s mission. Grants in the amount of $ $853,766 were made for the year ending
December 31, 2016.

Note 10 - Volunteer Services
The volunteer services the Organization receives are essential to helping fulfill its mission.
Although substantial, these services do not meet the criteria for recording as revenue andexpense under accounting principles generally accepted in the United States of America.

Note 11 - Contingencies
The Organization receives funds from a cost reimbursement contract that has a co-finance(matching) provision, which are subject to audit by the grantee. Management believes thesematters will not have a significant effect on the organization’s financial position.

Note 12 - Concentrations of Risk
The Organization maintains its cash deposits with quality financial institutions which are
insured by the Federal Deposit Insurance Corporation up to limits set by law. As of December
31, 2016, the uninsured portion of this balance was $1,157,711. Management believes theorganization is not exposed to significant credit risk on amounts in these institutions.

Note 13 - Subsequent Events
Subsequent events have been evaluated through November 03, 2017, which is the date thefinancial statements were available to be issued.

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