Attached files
TRAINING
DIRECT, LLC
FINANCIAL
STATEMENTS
DECEMBER
31, 2008
TRAINING
DIRECT, LLC
Contents
|
Page
|
|
|
Independent
Auditor's report
|
1
|
|
Financial
Statements
|
|
|
Balance
Sheet
|
|
|
As
of December 31, 2008
|
2
|
|
Statement
of Operations
|
|
|
For
the year ended December 31, 2008
|
3
|
|
Statement
of Members' Equity
|
|
|
For
the year ended December 31, 2008
|
4
|
|
Statement
of Cash Flows
|
|
|
For
the year ended December 31, 2008
|
5
|
|
Notes
to the financial statements
|
6 -
7
|
|
Report
on Internal Control Over Financial Reporting and on Compliance and
Other Matters
|
8 -
9
|
Independent
Auditor's Report
To the
Board of Directors
Training
Direct LLC
Bridgeport,
CT
I have
audited the accompanying balance sheet of Training Direct, LLC as of December
31, 2008, and the related statements of operations, members' equity, and cash
flows for the year then ended. These financial statements are the
responsibility of management. My responsibility is to express an
opinion on these financial statements based on my audit.
I
conducted my audit in accordance with auditing standards generally accepted in
the United States, and Government Auditing Standards issued by the Comptroller
General of the United States. 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
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. I believe
that my audit provides a reasonable basis for my opinion.
In my
opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of Training Direct, LLC as of December
31, 2008, and the results of its operations and its cash flows for the year then
ended in conformity with accounting principles generally accepted in the United
States.
In
accordance with Government Auditing Standards, I have also issued my report
dated April 22, 2009 on my consideration of Training Direct, LLC's internal
control over financial reporting and on my tests of its compliance with certain
provisions of laws, regulations, contracts, grant agreements and other matters.
The purpose of that report is to describe the scope of my testing of internal
control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the internal control over financial reporting
or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be considered in
assessing the results of my audit.
/s/ Steven F. Landau, CPA
Steven F.
Landau, CPA
April 22, 2009
- 1
-
TRAINING
DIRECT, LLC
BALANCE
SHEET
DECEMBER
31, 2008
|
ASSETS
|
||||
|
Current
Assets
|
||||
|
Cash
|
$ | 10,611 | ||
|
Student
tuition receivable, net of allowance
|
||||
|
for
uncollectables of $5,856
|
96,227 | |||
|
Total
current assets
|
106,838 | |||
|
Property
and Equipment, at cost, net of
|
||||
|
accumulated
depreciation of $131,154
|
21,206 | |||
|
Other
Assets
|
||||
|
Security
deposits
|
2,358 | |||
|
Total
assets
|
$ | 130,402 | ||
|
LIABILITIES
AND MEMBERS' EQUITY
|
||||
|
Current
Liabilities
|
||||
|
Accounts
payable
|
$ | 28,409 | ||
|
Accrued
expenses payable
|
7,772 | |||
|
Deferred
tuition revenue
|
20,447 | |||
|
Total
current liabilities
|
56,628 | |||
|
Members'
Equity
|
73,774 | |||
|
Total
liabilities and members' equity
|
$ | 130,402 | ||
See
accompanying notes to the financial statements.
- 2
-
TRAINING
DIRECT, LLC
STATEMENT
OF OPERATIONS
FOR THE
YEAR ENDED DECEMBER 31, 2008
|
Revenues
|
||||
|
Tuition
Revenue
|
$ | 852,288 | ||
|
Less:
tuition refunds
|
(18,609 | ) | ||
|
Net
tuition revenue
|
833,679 | |||
|
Operating
Costs and Expenses
|
||||
|
Student
instructional costs
|
268,965 | |||
|
Recruitment
costs
|
151,804 | |||
|
Occupancy
costs
|
55,986 | |||
|
General
and administrative expenses
|
337,933 | |||
|
Total
operating costs and expenses
|
814,688 | |||
|
Operating
income before depreciation
|
18,991 | |||
|
Depreciation
expense
|
29,241 | |||
|
Net
loss
|
$ | (10,250 | ) | |
See
accompanying notes to the financial statements.
- 3
-
TRAINING
DIRECT, LLC
STATEMENT
OF MEMBERS' EQUITY
FOR THE
YEAR ENDED DECEMBER 31, 2008
|
Balance
- beginning of year
|
$ | 90,861 | ||
|
Capital
distributions
|
(6,837 | ) | ||
|
Net
loss for the year ended December 31, 2008
|
(10,250 | ) | ||
|
Balance
- end of year
|
$ | 73,774 |
See
accompanying notes to the financial statements.
- 4
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TRAINING
DIRECT, LLC
STATEMENT
OF CASH FLOWS
FOR THE
YEAR ENDED DECEMBER 31, 2008
|
Cash
Flows from Operating Activities
|
||||
|
Net
loss
|
$ | (10,250 | ) | |
|
Noncash
item included in net income:
|
||||
|
Depreciation
expense
|
29,241 | |||
| 18,991 | ||||
|
Changes
in operating assets and liabilities
|
||||
|
Decrease
(increase) in assets:
|
||||
|
Student
tuition receivable
|
14,579 | |||
|
Prepaid
expense
|
4,376 | |||
|
Increase
(decrease) in liabilities:
|
||||
|
Accounts
payable
|
(22,378 | ) | ||
|
Accrued
expenses payable
|
5,522 | |||
|
Deferred
tuition revenue
|
(2,563 | ) | ||
| (464 | ) | |||
|
Net
cash provided by operating activities
|
18,527 | |||
|
Cash
Flows from Investing Activities:
|
||||
|
Purchase
of classroom furniture and equipment
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(2,746 | ) | ||
|
Cash
Flows from Financing Activities:
|
||||
|
Capital
distributions to members
|
(6,837 | ) | ||
|
Net
increase in cash
|
8,944 | |||
|
Cash
- beginning of year
|
1,667 | |||
|
Cash
- end of year
|
$ | 10,611 | ||
|
Supplemental
disclosure of cash flow information:
|
||||
|
Cash
paid during the year for interest
|
$ | 1,352 | ||
|
Cash
paid during the year for income taxes
|
$ | 0 | ||
See
accompanying notes to the financial statements.
- 5
-
Training
Direct, LLC
Notes to
Financial Statements
December
31, 2008
Note 1 -
Summary of Significant Accounting Policies
Nature of
Operations
Training
Direct, LLC. (the "Company") was organized as a limited liability company (LLC)
in the State of Connecticut on January 7, 2004 The company owns and
operates Training Direct, a state licensed vocational training school.
The
school provides vocational education and training programs to students in both
traditional classroom and distance education formats.
Revenue
Recognition
The
financial statements of the company are prepared on the accrual basis of
accounting. Tuition billed to students is recognized as revenue,
determined by the percentage of completion method, based on each student's
academic progress.
Concentration
of Credit Risk
The
company deposits its cash with high credit quality institutions. At various
times during the year, cash balances maintained in bank accounts may exceed FDIC
insurable limits. In the normal course of business, the company extends
unsecured credit to its students. Many students receive financial assistance
from community based and government agencies. Collection of student accounts
receivable is reasonably assured provided that the school and students
continuously comply with various financial assistance regulations.
Depreciation
Property
and equipment are recorded at cost. Depreciation is provided on the
straight-line method over the estimated useful lives of the respective
assets. Maintenance and repairs are charged to expense as
incurred.
Income
taxes
The
company is a limited liability company which is treated as a partnership for tax
purposes. Accordingly, the company's members are responsible for
income taxes on their proportionate share of the company's income.
- 6
-
Training
Direct, LLC
Notes to
Financial Statements
December
31, 2008
Note 2 -
Property and Equipment
The major
classifications of property and equipment are summarized below:
|
Estimated
|
||||||||
|
Useful Life
|
||||||||
|
School
materials and curricula
|
5
|
$ | 134,250 | |||||
|
Furniture,
fixtures and equipment
|
7
|
15,610 | ||||||
|
Leasehold
improvements
|
5
|
2,500 | ||||||
| 152,360 | ||||||||
|
Accumulated
depreciation
|
(131,154 | ) | ||||||
|
Net
book value
|
$ | 21,206 | ||||||
Note 3 -
Lease Commitment
The
company currently leases its instructional and office facilities located at 3851
Main Street, Bridgeport, CT under an informal month to month verbal
agreement. The agreement requires monthly payments of $2,550 and
requires the company to pay for repairs, maintenance, taxes, and
insurance.
Note 4 -
Bank Loan
The
company has a $10,000 unsecured bank line of credit. As of December
31, 2008, there were no outstanding loan balances.
- 7
-
TRAINING
DIRECT, LLC
FINANCIAL
STATEMENTS
DECEMBER
31, 2007
TRAINING
DIRECT, LLC
Contents
|
Page
|
|
|
Independent
Auditor's report
|
1
|
|
Financial
Statements
|
|
|
Balance
Sheet
As
of December 31, 2007
|
2
|
|
Statement
of Operations
For
the year ended December 31, 2007
|
3
|
|
Statement
of Members' Equity
For
the year ended December 31, 2007
|
4
|
|
Statement
of Cash Flows
For
the year ended December 31, 2007
|
5
|
|
Notes
to the financial statements
|
6 -
7
|
|
Report
on Internal Control Over Financial Reporting and on Compliance and Other
Matters
|
8 -
9
|
Independent
Auditor's Report
To the
Board of Directors
Training
Direct LLC
Bridgeport,
CT
I have
audited the accompanying balance sheet of Training Direct, LLC as of December
31, 2007, and the related statements of operations, members' equity, and cash
flows for the year then ended. These financial statements are the responsibility
of management. My responsibility is to express an opinion on these financial
statements based on my audit.
I
conducted my audit in accordance with auditing standards generally accepted in
the United States, and Government Auditing Standards issued by the Comptroller
General of the United States. 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 principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. I believe that my audit provides a reasonable basis for
my opinion.
In my
opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of Training Direct, LLC as of December
31, 2007, and the results of its operations and its cash flows for the year then
ended in conformity with accounting principles generally accepted in the United
States.
In
accordance with Government Auditing Standards, I have also issued my report
dated April 24, 2008 on my consideration of Training Direct, LLC's internal
control over financial reporting and on my tests of its compliance with certain
provisions of laws, regulations, contracts, grant agreements and other matters.
The purpose of that report is to describe the scope of my testing of internal
control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the internal control over financial reporting
or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be considered in
assessing the results of my audit.
/s/ Steven F. Landau, CPA
Steven F.
Landau, CPA
April 24,
2008
- 1
-
TRAINING
DIRECT, LLC
BALANCE
SHEET
DECEMBER
31, 2007
|
ASSETS
|
||||
|
Current
Assets
|
||||
|
Cash
|
$ | 1,667 | ||
|
Student
tuition receivable, net of allowance for uncollectables of
$5,474
|
110,806 | |||
|
Prepaid
expense
|
4,376 | |||
|
Total
current assets
|
116,849 | |||
|
Property
and Equipment, at cost, net of accumulated depreciation of
$101,913
|
47,701 | |||
|
Other
Assets
|
||||
|
Security
deposits
|
2,358 | |||
|
Total
assets
|
$ | 166,908 | ||
|
LIABILITIES
AND MEMBERS' EQUITY
|
||||
|
Current
Liabilities
|
||||
|
Accounts
payable
|
$ | 50,787 | ||
|
Accrued
expenses payable
|
2,250 | |||
|
Deferred
tuition revenue
|
23,010 | |||
|
Total
current liabilities
|
76,047 | |||
|
Members'
Equity
|
90,861 | |||
|
Total
liabilities and members' equity
|
$ | 166,908 | ||
See
accompanying notes to the financial statements.
- 2
-
TRAINING
DIRECT, LLC
STATEMENT
OF OPERATIONS
FOR THE
YEAR ENDED DECEMBER 31, 2007
|
Revenues
|
||||
|
Tuition
Revenue
|
$ | 661,699 | ||
|
Less:
tuition refunds
|
(10,097 | ) | ||
|
Net
tuition revenue
|
651,602 | |||
|
Operating
Costs and Expenses
|
||||
|
Student
instructional costs
|
215,638 | |||
|
Recruitment
costs
|
115,062 | |||
|
Occupancy
costs
|
70,883 | |||
|
General
and administrative expenses
|
242,300 | |||
|
Total
operating costs and expenses
|
643,883 | |||
|
Operating
income before depreciation
|
7,719 | |||
|
Depreciation
expense
|
29,045 | |||
|
Net
loss
|
$ | (21,326 | ) | |
See
accompanying notes to the financial statements.
- 3
-
TRAINING
DIRECT, LLC
STATEMENT
OF MEMBERS' EQUITY
FOR THE
YEAR ENDED DECEMBER 31, 2007
|
Balance
- beginning of year
|
$ | 165,457 | ||
|
Capital
distributions
|
(53,270 | ) | ||
|
Net
loss for the year ended December 31, 2007
|
(21,326 | ) | ||
|
Balance
- end of year
|
$ | 90,861 |
See
accompanying notes to the financial statements.
- 4
-
TRAINING
DIRECT, LLC
STATEMENT
OF CASH FLOWS
FOR THE
YEAR ENDED DECEMBER 31, 2007
|
Cash
Flows from Operating Activities
|
||||
|
Net
loss
|
$ | (21,326 | ) | |
|
Noncash
item included in net income:
|
||||
|
Depreciation
expense
|
29,045 | |||
| 7,719 | ||||
|
Changes
in operating assets and liabilities
|
||||
|
Decrease
(increase) in assets:
|
||||
|
Student
tuition receivable
|
33,142 | |||
|
Prepaid
expense
|
(4,376 | ) | ||
|
Increase
(decrease) in liabilities:
|
||||
|
Accounts
payable
|
24,716 | |||
|
Accrued
expenses payable
|
(1,841 | ) | ||
|
Deferred
tuition revenue
|
(8,297 | ) | ||
| 43,344 | ||||
|
Net
cash provided by operating activities
|
51,063 | |||
|
Cash
Flows from Investing Activities:
|
0 | |||
|
Cash
Flows from Financing Activities:
|
||||
|
Capital
distributions to members
|
(53,270 | ) | ||
|
Net
decrease in cash
|
(2,207 | ) | ||
|
Cash
- beginning of year
|
3,874 | |||
|
Cash
- end of year
|
$ | 1,667 | ||
|
Supplemental
disclosure of cash flow information:
|
||||
|
Cash
paid during the year for interest
|
$ | 1,542 | ||
|
Cash
paid during the year for income taxes
|
$ | 0 | ||
See
accompanying notes to the financial statements.
- 5
-
Training
Direct, LLC
Notes to
Financial Statements
December
31, 2007
Note 1 -
Summary of Significant Accounting Policies
Nature of
Operations
Training
Direct, LLC. (the "Company") was organized as a limited liability company (LLC)
in the State of Connecticut on January 7, 2004 The company owns and operates
Training Direct, a state licensed vocational training school.
The
school provides vocational education and training programs to students in both
traditional classroom and distance education formats.
Revenue
Recognition
The
financial statements of the company are prepared on the accrual basis of
accounting. Tuition billed to students is recognized as revenue, determined by
the percentage of completion method, based on each student's academic
progress.
Concentration
of Credit Risk
The
company deposits its cash with high credit quality institutions. At various
times during the year, cash balances maintained in bank accounts may exceed FDIC
insurable limits. In the normal course of business, the company extends
unsecured credit to its students. Many students receive financial assistance
from community based and government agencies. Collection of student accounts
receivable is reasonably assured provided that the school and students
continuously comply with various financial assistance regulations.
Depreciation
Property
and equipment are recorded at cost. Depreciation is provided on the
straight-line method over the estimated useful lives of the respective assets.
Maintenance and repairs are charged to expense as incurred.
Income
taxes
The
company is a limited liability company which is treated as a partnership for tax
purposes. Accordingly, the company's members are responsible for income taxes on
their proportionate share of the company's income.
- 6
-
Training
Direct, LLC
Notes to
Financial Statements
December
31, 2007
Note 2 -
Property and Equipment
The major
classifications of property and equipment are summarized below:
|
Estimated
|
||||||||
|
Useful Life
|
||||||||
|
School
materials and curricula
|
5
|
$ | 134,250 | |||||
|
Furniture,
fixtures and equipment
|
7
|
12,864 | ||||||
|
Leasehold
improvements
|
5
|
2,500 | ||||||
| 149,614 | ||||||||
|
Accumulated
depreciation
|
(101,913 | ) | ||||||
|
Net
book value
|
$ | 47,701 | ||||||
Note 3 -
Lease Commitment
The
company currently leases its instructional and office facilities located at 3851
Main Street, Bridgeport, CT under an informal month to month verbal agreement.
The agreement requires monthly payments of $2,452 and requires the company to
pay for repairs, maintenance, taxes, and insurance.
Note 4 -
Bank Loan
The
company has a $10,000 unsecured bank line of credit. As of December 31, 2007,
there were no outstanding loan balances.
- 7
-