Technical College of the Lowcountry Foundation, Inc. Annual Financial Report
For the Year Ended June 30, 2025
Table of Contents
Independent Auditor’s Report
Statement of Financial Position
Statement of Activities
Statement of Functional Expenses
Statement of Cash Flows
Notes to Financial Statements
Independent Auditor’s Report
To the Board of Directors
Technical College of the Lowcountry Foundation, Inc.
Opinion
We have audited the accompanying financial statements of Technical College of the Lowcountry Foundation, Inc. (a nonprofit organization), which comprise the statement of financial position as of June 30, 2025, and the related statements of activities, functional expenses and cash flows for the year then ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Technical College of the Lowcountry Foundation, Inc. as of June 30, 2025, 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.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Technical College of the Lowcountry Foundation, Inc.’s ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards, we:
- Exercise professional judgment and maintain professional skepticism throughout the audit.
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Technical College of the Lowcountry Foundation, Inc.’s internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Technical College of the Lowcountry Foundation, Inc.’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Crowley Wechsler & Associates LLC
Beaufort, South Carolina
September 10, 2025
Statement of Financial Position
June 30, 2025
Assets
| Current Assets | Amount |
|---|---|
| Cash and Cash Equivalents | $978,447 |
| Cash Restricted | $1,612,808 |
| Accounts Receivable | $2,548 |
| Total Current Assets | $2,593,803 |
Noncurrent Assets
| Noncurrent Assets | Amount |
|---|---|
| Investments | $2,330,246 |
| Pledges Receivable | $86,400 |
| Lease Receivable | $2,696,192 |
| Total Noncurrent Assets | $5,112,838 |
Total Assets: $7,706,641
Liabilities and Net Assets
Current Liabilities
| Current Liabilities | Amount |
|---|---|
| Accounts Payable | $8,816 |
| Current Portion of Long-Term Liabilities | $809,000 |
| Total Current Liabilities | $817,816 |
Noncurrent Liabilities
| Noncurrent Liabilities | Amount |
|---|---|
| Bond Payable | $3,500,000 |
| Total Noncurrent Liabilities | $3,500,000 |
Total Liabilities: $4,317,816
Net Assets
| Net Assets | Amount |
|---|---|
| Without Donor Restriction | $317,028 |
| With Donor Restriction | $3,071,797 |
| Total Net Assets | $3,388,825 |
Total Liabilities and Net Assets: $7,706,641
Statement of Activities
For the Year Ended June 30, 2025
Without Donor Restrictions
Revenues and Support
| Revenue Source | Amount |
|---|---|
| Contributions of Cash | $101,528 |
| Contributions of Nonfinancial Assets | $219,647 |
| Investment Income | $33,883 |
| Net Assets Released from Restrictions | $515,190 |
| Total Revenues and Support | $870,248 |
Functional Expenses
| Expense Category | Amount |
|---|---|
| Scholarships | $202,516 |
| Assistance to Technical College | $465,883 |
| General and Administrative | $85,740 |
| Fundraising | $136,671 |
| Total Functional Expenses | $890,810 |
Changes in Net Assets Without Donor Restrictions: ($20,562)
With Donor Restrictions
| Revenue Source | Amount |
|---|---|
| Contributions and Other Increases | $251,952 |
| Investment Income | $211,659 |
| Special Events | $194,435 |
| Less Direct Costs of Fundraising | ($39,308) |
| Net Assets Released from Restrictions | ($515,190) |
| Changes in Net Assets With Donor Restrictions | $103,548 |
Overall Change in Net Assets
| Item | Amount |
|---|---|
| Change in Net Assets | $82,986 |
| Net Assets, Beginning of Year | $3,305,839 |
| Net Assets, End of Year | $3,388,825 |
Statement of Functional Expenses
For the Year Ended June 30, 2025
| Expense | Scholarships | Assistance to Technical College | General & Administrative | Fundraising | Total |
|---|---|---|---|---|---|
| Accounting Fees | $5,861 | – | $3,908 | $5,861 | $15,630 |
| Event Supplies | – | – | – | $8,104 | $8,104 |
| General Insurance | $961 | – | $641 | $961 | $2,563 |
| Grants | – | $2,484 | – | – | $2,484 |
| Office Expense | $18,527 | – | $12,352 | $18,527 | $49,406 |
| Postage and Shipping | $200 | – | $132 | $200 | $532 |
| Printing | $221 | – | $147 | $221 | $589 |
| Rent | $11,250 | – | $7,500 | $11,250 | $30,000 |
| Scholarships | $73,782 | – | – | – | $73,782 |
| Staff Development | $669 | – | $445 | $669 | $1,783 |
| TCL Employee Compensation | $88,352 | – | $58,902 | $88,352 | $235,606 |
| Student Assistance | – | $11,560 | – | – | $11,560 |
| College Assistance | – | $422,559 | – | – | $422,559 |
| TCL President – Supplement | – | $29,280 | – | – | $29,280 |
| Travel and Meeting | $2,526 | – | $1,684 | $2,526 | $6,736 |
| Trustees and Bank Fees | $167 | – | $29 | – | $196 |
| Total Functional Expenses | $202,516 | $465,883 | $85,740 | $136,671 | $890,810 |
Statement of Cash Flows
For the Year Ended June 30, 2025
Cash Flows From Operating Activities
| Activity | Amount |
|---|---|
| Cash Received without Donor Restriction | $132,863 |
| Cash Received with Donor Restriction | $646,938 |
| Cash Paid for Operating Expenses | ($676,036) |
| Net Cash Provided (Used) by Operating Activities | $103,765 |
Cash Flows From Investing Activities
| Activity | Amount |
|---|---|
| Interest and Dividends Reinvested | ($45,308) |
| Investment Fees | $16,330 |
| Gains/Losses Reinvested | ($182,685) |
| Contributions to Investment Account | ($150,000) |
| Withdrawals from Investment Account | $153,124 |
| Net Cash Provided (Used) by Investing Activities | ($208,539) |
Cash Flows From Financing Activities
| Activity | Amount |
|---|---|
| Lease Receivable for Culinary Institute | ($713,654) |
| Principal Paid on Bond | $785,000 |
| Investment Earnings on Project Account | $73,605 |
| Project Disbursements | ($144,951) |
| Net Cash Provided (Used) by Financing Activities | $0 |
Net Change in Cash
| Item | Amount |
|---|---|
| Net Increase (Decrease) in Cash | ($104,774) |
| Cash at Beginning of Year | $1,083,221 |
| Cash at End of Year | $978,447 |
Reconciliation of Change in Net Assets to Net Cash Provided (Used) by Operating Activities
| Item | Amount |
|---|---|
| Change in Net Assets | $82,986 |
| (Increase) Decrease in Accounts Receivable | $25,652 |
| Increase (Decrease) in Accounts Payable | ($4,873) |
| Total Adjustments | $20,779 |
| Net Cash Provided (Used) by Operating Activities | $103,765 |
Notes to Financial Statements
June 30, 2025
Note 1 – Summary of Significant Accounting Policies
Nature of Activities
The Technical College of the Lowcountry Foundation, Inc. (Foundation) is a South Carolina not-for-profit organization incorporated in 1983. The Foundation is a legally separate, tax-exempt component unit of the Technical College of the Lowcountry (College).
The Foundation is constituted for charitable and educational purposes, specifically to solicit, receive, administer, and donate funds and property for the encouragement, support, and furtherance of the educational and professional goals of the Technical College of the Lowcountry located in Beaufort, South Carolina.
Because the resources held by the Foundation can only be used by, or for the benefit of, the College, the Foundation is considered a component unit of the College.
Basis of Presentation
The Foundation prepares its financial statements on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America.
The Financial Accounting Standards Board (FASB) establishes the FASB Accounting Standards Codification as the source of authoritative United States generally accepted accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with generally accepted accounting principles. This authoritative guidance has been applied in the preparation of the Foundation’s financial statements.
The following accounting policies are presented to facilitate the understanding of information presented in the financial statements.
The financial statements of the Organization have been prepared according to the FASB issued Accounting Standards Update 2016-14, Not-for-Profit (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities. This guidance was intended to improve the presentation of financial statements and disclosures of not-for-profit organizations by providing more relevant information about their resources and changes in those resources to donors, grantors, creditors, and other users.
The guidance requires not-for-profit entities to present the amount for each of two classes of net assets:
- Net assets with donor restrictions
- Net assets without donor restrictions
Contributions
Contributions received, including unconditional pledges, are recognized as revenue when donors’ commitments are received. Pledges made and collected in the same reporting period are recorded when received in the appropriate net asset category.
Annual campaign contributions are generally available for unrestricted use in the related campaign year unless specifically restricted by the donor.
Grants and other contributions of cash and other nonfinancial assets are reported as with donor restricted support if they are received with donor stipulations that limit the use of the donated assets.
When a donor restriction expires, net assets with donor restrictions are reclassified to net assets without donor restrictions and reported in the Statement of Activities as net assets released from restrictions.
Endowment contributions and investments are permanently restricted by the donor. Interest and dividends are recorded in net assets without donor restrictions. Investment earnings with donor restrictions are recorded in net assets with donor restrictions based on the nature of the restrictions.
Cash and Cash Equivalents
The Foundation considers cash in operating bank accounts, cash on hand, certificates of deposit, U.S. Treasury bills, and all highly liquid debt instruments purchased with a maturity of three months or less to be cash and cash equivalents.
Note 1 – Summary of Significant Accounting Policies (Continued)
Fair Value Measurements
The Financial Accounting Standards Board (FASB) guidance on fair value measurements establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).
The three levels of the fair value hierarchy are:
Level 1
Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Foundation has the ability to access.
Level 2
Inputs to the valuation methodology include:
- Quoted prices for similar assets or liabilities in active markets.
- Quoted prices for identical or similar assets or liabilities in inactive markets.
- Inputs other than quoted prices that are observable for the asset or liability.
- Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially that full term of the asset or liability.
Level 3
Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
Equipment
Donated property and equipment is recorded at fair value at the date of the donation. All other equipment is recorded at cost. Depreciation is provided using the straight-line method over the estimated useful lives of the assets, set at five years.
Functional Allocation of Expenses
Functional expenses are specifically allocated whenever practical or are allocated based on program and service utilization.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Spending Policy
The Board has adopted a formal spending policy governing the Endowment and Special Scholarship Funds. Up to 4.5% for scholarships and 0.5% for administrative expenses of the average market value over the preceding three years may be expended in any fiscal year.
Income Tax Status
The Foundation is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code.
In addition, the Foundation qualifies for the charitable contribution deduction under Section 170(b)(1) and has been classified as an organization other than a private foundation under Section 509(e).
In accordance with financial accounting standards, the Foundation evaluated all tax positions that could have a significant effect on the financial statements and determined the Foundation had no uncertain tax positions. Generally, the Foundation’s tax returns remain open for three years subsequent to filing for examination by government authorities.
Note 2 – Cash and Investments
Concentration of Credit Risk
Deposits of the Foundation are maintained in demand deposit accounts at three financial institutions.
For the purposes of collateralizing deposits, the Foundation utilizes a combination of:
- Insured Cash Sweep (ICS) accounts
- Federal Deposit Insurance Corporation (FDIC) coverage
Restricted cash of $1,612,808 was collateralized by the South Carolina Public Funds Deposit Program.
The Foundation maintains its investments at one brokerage firm. Accounts maintained at the brokerage firm are insured up to $500,000 for securities, including a limit of $250,000 on claims for cash, under the Securities Investor Protection Corporation (SIPC).
At June 30, 2025, total cash and securities were $2,330,246.
Management believes that the Foundation’s investments do not represent significant concentrations of market risk. The Foundation’s investment portfolio is adequately diversified among issuers, and management believes that the Foundation has the ability to hold its investment portfolio during periods of temporary market decline.
Investments
Investments in marketable equity securities with readily determinable fair values and all investments in debt securities are carried at fair value.
Unrealized gains and losses are included in the change in net assets in the Statement of Activities.
Fair Value Measurement of Investments as of June 30, 2025
| Asset Type | Level 1 | Level 2 | Level 3 |
|---|---|---|---|
| Cash and Deposit Accounts | $51,377 | – | – |
| Fixed Income | $261,552 | – | – |
| Stocks, Options, and ETFs | $1,586,125 | – | – |
| Mutual Funds | $431,192 | – | – |
| Total | $2,330,246 | – | – |
Note 2 – Cash and Investments (Continued)
Unrealized Gains from Investments as of June 30, 2025
| Investment Type | Fair Value | Cost Basis | Unrealized Gains (Losses) |
|---|---|---|---|
| Cash and Deposit Accounts | $51,377 | $51,377 | $0 |
| Fixed Income | $261,552 | $266,797 | ($5,245) |
| Equity Securities | $1,586,125 | $930,791 | $655,334 |
| Other Assets | $431,192 | $394,000 | $37,192 |
| Total | $2,330,246 | $1,642,965 | $687,281 |
Investment Income for the Year Ended June 30, 2025
| Source | Amount |
|---|---|
| Investment Gains (Losses) | $182,685 |
| Interest and Dividends | $45,308 |
| Investment Fees | ($16,334) |
| Total Investment Income | $211,659 |
Note 3 – Pledges Receivable
Pledges receivable as of June 30, 2025, are summarized below.
| Pledges Receivable | Amount |
|---|---|
| Programs Receivable in Less Than One Year | $28,200 |
| Programs Receivable in Two or More Years | $58,200 |
| Total Receivables | $86,400 |
Note 4 – Property and Equipment
Property and equipment as of June 30, 2025, consisted of the following.
| Property and Equipment | Amount |
|---|---|
| Computer Equipment | $887 |
| Less Accumulated Depreciation | ($887) |
| Total Property and Equipment, Net of Depreciation | $0 |
Depreciation for the year ended June 30, 2025, was $0.
Note 5 – Accounts Payable
Accounts payable as of June 30, 2025, are summarized below.
| Payables | Amount |
|---|---|
| Credit Cards | $8,816 |
| Total Payables | $8,816 |
Note 6 – Net Assets with Donor Restrictions
Net Assets with Donor Restrictions at June 30, 2025
| Category | Amount |
|---|---|
| Scholarship Funds | $1,354,234 |
| TCL Academic Programs | $882,178 |
| Endowment Funds | $835,385 |
| Total Net Assets with Donor Restriction | $3,071,797 |
The Foundation has several endowment funds, the principal of which is subject to donor restrictions. Realized and unrealized earnings on these funds are available to provide scholarships.
Endowment Funds
The Foundation’s endowment funds at June 30, 2025, are summarized below.
| Endowment Fund | Amount |
|---|---|
| Angus Cotton Endowment | $42,865 |
| Family Resources Fund | $63,976 |
| G. Thomas Upshaw Endowed Scholarship Fund | $50,000 |
| Hodges Endowment Fund | $12,375 |
| Norman Harberger Endowment Fund | $25,000 |
| Coleman NR Signage | $50,000 |
| Clist Endowed Scholarship | $25,000 |
| Clancy Endowed Scholarship | $27,000 |
| Frieda Endowed Scholarship | $25,000 |
| Kilpatrick Memorial Fund | $33,735 |
| Lou Gast Endowed Educational Scholarship | $50,000 |
| Public Contributions | $15,194 |
| Verity Memorial Fund | $85,221 |
| Helen McCan Thompson | $10,000 |
| Wilson Memorial Fund | $150,019 |
| Beaufort Trust Fund | $170,000 |
| Total Net Assets with Donor Restriction – Endowment | $835,385 |
Note 6 – Net Assets with Donor Restrictions (Continued)
Net Assets Released from Restrictions
Net assets were released from donor restrictions by incurring expenses satisfying the restricted purposes or by the occurrence of other events specified by donors.
The following net assets with donor restrictions were released during the year ended June 30, 2025.
| Category | Amount |
|---|---|
| Scholarships | $85,342 |
| College Academic Programs | $429,848 |
| Total Net Assets Released from Restrictions | $515,190 |
Note 7 – Related Party Transactions
During the year ended June 30, 2025, the Foundation paid and accrued expenses for scholarships, grants, special events, and other assistance totaling $542,149 to the College.
The Foundation is provided office space on the campus of the College at no charge. The College has estimated the fair value of the rent received to be $30,000 per year using a Level 3 fair market valuation.
The Foundation also received managerial and accounting services from three College employees. Effective September 2016, the College pays the entire salary of the staff assigned to the Foundation.
The salaries and benefits contributed to the Foundation for the year ended June 30, 2025, totaled $189,647.
Contributions of Nonfinancial Assets
The following summarizes the amounts recorded as contributions of nonfinancial assets and related expenses for the year ended June 30, 2025.
| Item | Unrestricted Revenues | Scholarships | General & Administrative | Fundraising |
|---|---|---|---|---|
| Rent | $30,000 | $11,250 | $7,500 | $11,250 |
| Salaries and Benefits | $189,647 | $71,118 | $47,411 | $71,118 |
| Total | $219,647 | $82,368 | $54,911 | $82,368 |
Culinary Arts Institute and Interpretive Center Financing
The Foundation entered into an agreement with the College to act as a conduit for the construction and financing of a Culinary Arts Institute and Interpretive Center (Culinary Center) in Bluffton, South Carolina, in the amount of $11,243,000.
The project financing consists of:
- An $8,000,000 South Carolina Jobs–Economic Development Authority (JEDA) Economic Development Revenue Bond through BB&T.
- Approximately $1,243,000 in local hospitality taxes contributed by Beaufort County.
- Approximately $2,000,000 from the College’s capital reserves.
The bond is payable in ten annual installments of approximately level payments and is secured by:
- Amounts annually provided by Beaufort County, the Town of Bluffton, and the Beaufort County School District.
- Approximately $2,000,000 in local hospitality taxes previously contributed by Beaufort County and deposited into a bond reserve fund.
Beaufort County, acting on behalf of itself, the Town of Bluffton, and the Beaufort County School District, has committed to annually provide $800,000 in available revenues over a ten-year period (for a total of $8,000,000), subject to annual appropriations, to the College.
Pursuant to a lease between the College and the Foundation, the College has agreed to make ten annual lease payments of $800,000 (totaling $8,000,000), subject to annual appropriations. These lease payments are intended to be used by the Foundation for repayment of the bond.
The College agreed to undertake the construction and financial administration of the project.
At June 30, 2025, the Foundation had a lease receivable of $2,696,192 from the College.
Culinary Center Project Activity
During the year ended June 30, 2025:
- TCL Bond Reserve and TCL Project Account investment earnings totaled $73,605.
- Culinary Center project disbursements of $144,951 were paid to the College.
- On June 30, 2025, the Foundation was holding $1,612,808 in funds for the Culinary Center Project.
JEDA Construction Bond
The South Carolina Jobs–Economic Development Authority (JEDA) construction bond for the construction of the TCL Culinary Institute:
- Original Bond Amount: $8,000,000
- Interest Rate: 3.14%
- Term: 10 years
- Outstanding Balance at June 30, 2025: $4,309,000
Bond Maturity Schedule
| Year Ended June 30 | Amount |
|---|---|
| 2026 | $809,000 |
| 2027 | $835,000 |
| 2028 | $861,000 |
| 2029 | $888,000 |
| 2030 | $916,000 |
| Total | $4,309,000 |
Note 8 – Liquidity and Availability of Resources
The Foundation had $978,447 in financial assets available within one year of the Statement of Financial Position date to meet cash needs for general expenditures. These financial assets consist of cash and cash equivalents.
Financial assets subject to donor or other contractual restrictions that make them unavailable for general expenditure within one year totaled $3,071,797.
The Foundation has established a goal of maintaining financial assets sufficient to meet approximately 60 days of normal operating expenses, which average about $75,000 per month.
As part of its liquidity management, the Foundation has a policy to structure its financial assets so they are available as general expenditures, liabilities, and other obligations become due. The Foundation also invests cash in excess of its daily operating needs in investment accounts.
Note 9 – Unrecognized Donated Land
The Foundation is in possession of 0.87 acres of donated land for which an appraisal was not provided.
Beaufort County appraised the land in 2022 with a value of $13,100.
It is the Foundation’s intention to donate this land to the College or to another nonprofit organization.
Due to the uncertainty in the market for this type of land, the Foundation has not recognized a value for the land in the financial statements.
Note 10 – Subsequent Events
The Foundation evaluated subsequent events through September 10, 2025, in connection with the preparation of these financial statements, which is the date the financial statements were available to be issued.
No events occurred that require disclosure in the financial statements.
End of Annual Financial Report
Technical College of the Lowcountry Foundation, Inc.
Annual Financial Report
For the Year Ended June 30, 2025