Downtown San Mateo Association
REVIEWED FINANCIAL STATEMENTS
AND
SUMMARIZED FINANCIAL STATEMENTS
FOR FISCAL YEARS ENDED JUNE 30, 2024 & 2025
TABLE OF CONTENTS
• Independent Financial Review Report
• Executive Financial Summary
• Statement of Activities – Financial Overview
• Statement of Financial Position – Financial Overview
• Statement of Cash Flows – Financial Overview
• Notes on Financial Statements
o Organization
o Summary of Significant Accounting Policies
o Liquidity and Availability of Financial Assets
o Concentration of Credit Risk
o Subsequent Events
INDEPENDENT FINANCIAL REVIEW REPORT
Overview of Financial Review
Pettinelli Financial Partners has reviewed the accompanying financial statements of the Downtown San Mateo Association (“DSMA”), which include the Statement of Financial Position as of June 30, 2025, and the related Statements of Activities and Cash Flows for the fiscal years ended June 30, 2025 and June 30, 2024.
This management financial review was conducted for the purpose of providing DSMA’s Board of Directors and key stakeholders with a clear, accurate, and transparent overview of the organization’s financial position, operating performance, and liquidity. This review is substantially less in scope than an audit or accountant’s review and does not express an opinion or provide assurance regarding the financial statements.
Management’s Responsibility for the Financial Statements Management of the Downtown San Mateo Association 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 applicable to nonprofit organizations.
This responsibility includes:
• The design, implementation, and maintenance of internal controls relevant to the preparation of financial statements that are free from material misstatement, whether due to fraud or error
• The selection and consistent application of appropriate accounting policies • The preparation of accounting estimates that are reasonable in the circumstances
Pettinelli Financial Partners’ Responsibility
Our responsibility as the financial review team is to perform a management-level financial review of DSMA’s financial statements and supporting schedules based on information provided by management.
Our review procedures consisted primarily of:
• Reviewing internally prepared financial statements for consistency across reporting periods
• Comparing year-over-year financial results to identify material variances and trends • Evaluating the reasonableness of reported balances based on historical patterns and supporting documentation
• Reviewing cash activity and balance sheet changes to ensure internal consistency across statements
This financial review does not include performing audit procedures, testing internal controls, confirming balances with third parties, or expressing an opinion or any level of assurance on the financial statements.
Based on our review, we are not aware of any material misstatements that require modification to the accompanying financial statements in order for them to be presented fairly, in all material respects, for the periods reviewed.
EXECUTIVE FINANCIAL SUMMARY
Financial Position
As of June 30, 2025, the Downtown San Mateo Association reported total assets of $409,243, consisting primarily of cash and cash equivalents. Total liabilities declined significantly to $401, resulting in total net assets of $408,842. The organization continues to maintain a strong liquidity position with minimal liabilities.
Operating Results
Total income decreased to $393,342 in fiscal year 2025 compared to $443,174 in fiscal year 2024. Total expenses increased to $332,408 from $293,976 over the same period. Net income totaled $64,038 in fiscal year 2025, reflecting a year-over-year decrease of approximately 57% following a strong surplus in fiscal year 2024.
Liquidity and Cash Flow
Net cash provided by operating activities totaled $63,904 in fiscal year 2025. Despite lower operating cash flow compared to fiscal year 2024, DSMA continued to generate positive cash from operations, supporting ongoing programs and administrative activities.
Summary
Overall, DSMA remains financially stable with strong liquidity, declining liabilities, and positive operating cash flow. The organization is well positioned to meet its ongoing operational needs while managing revenue variability and expense trends.
STATEMENT OF ACTIVITIES
Financial Overview
The Statement of Activities summarizes DSMA’s operating performance for the fiscal years ended June 30, 2025, and June 30, 2024.
Total income decreased from $443,174.19 in fiscal year 2024 to $393,342.24 in fiscal year 2025, driven primarily by sponsorship and program-related revenues. Total expenses increased from $293,975.52 to $332,408.21, reflecting higher overall operating costs. The increase in operating costs is primarily related to marketing, business development, and downtown clean-up expenses.
Net income declined from $149,886 in fiscal year 2024 to $64,038 in fiscal year 2025, representing a decrease of approximately 57% year over year. This decline reflects normalization following a strong prior-year surplus rather than deterioration in core operations.
Downtown San Mateo Association
Statement of Activities
Fiscal Year End June 30
Support & Revenue 2024 2025 Change
Bid Income/ Assessments $ 431,225.53 $ 389,723.58 $ (41,501.95) Donations $ 11,350.00 $ - $ (11,350.00) Sponsorships/Events $ 500.00 $ 3,618.66 $ 3,118.66 Unapplied Cash payment Income $ 98.66 $ - $ (98.66) Total Income $ 443,174.19 $ 393,342.24 $ (49,831.95) Cost of Sales $ - $ - Gross Profit $ 443,174.19 $ 393,342.24 $ (49,831.95) Expenses
Administration Expense $ 3,660.61 $ 3,922.26 $ 261.65 Banners $ 7,473.73 $ 8,987.23 $ 1,513.50 Board Expense $ 1,126.13 $ 954.69 $ (171.44) Depreciation Expense $ 287.00 $ - $ (287.00) Downtown Clean-Up $ 79,518.89 $ 99,397.71 $ 19,878.82 Event Expense $ 12,433.85 $ 21,086.85 $ 8,653.00 Gifts $ 767.90 $ - $ (767.90) Insurance Expense $ 1,312.00 $ 5,759.00 $ 4,447.00 Online Marketing $ 16.98 $ - $ (16.98) Meals & Entertainment $ 649.83 $ - $ (649.83) Marketing & Business Development $ 18,406.44 $ 35,038.61 $ 16,632.17 Education Expense $ 150.00 $ 750.00 $ 600.00 Taxes & Licenses $ 836.82 $ 1,048.00 $ 211.18 Payroll Expense $ 144,330.34 $ 150,851.36 $ 6,521.02 Professional Services Expense $ 18,885.00 $ 4,612.50 $ (14,272.50) Repair & Maintenance $ 1,620.00 $ - $ (1,620.00) Sponsorship $ 2,500.00 $ - $ (2,500.00) Total Expenses $ 293,975.52 $ 332,408.21 $ 38,432.69
Net Operating Income $ 149,198.67 $ 60,934.03 $ (88,264.64)
Other Income $ 687.50 $ 3,104.24 $ 2,416.74 Other Expenses $ - $ - $ -
Net Income $ 149,886.17 $ 64,038.27 $ (85,847.90)
STATEMENT OF FINANCIAL POSITION
Financial Overview
The Statement of Financial Position presents the financial condition of DSMA as of June 30, 2025, and June 30, 2024.
Total assets increased to $409,530 as of June 30, 2025, compared to $355,167 as of June 30, 2024. Assets consist primarily of cash and cash equivalents.
Total liabilities declined from $10,363 in fiscal year 2024 to $401 in fiscal year 2025. Total net assets increased accordingly to $408,842.
Cash and cash equivalents are maintained across two Heritage Bank of Commerce (HBOC) accounts and one TCBK account.
Downtown San Mateo Association
Statement of Activities and Changes in Assets & Liabilities Fiscal Year End June 30
Assets 2024 2025 Change
Current Assets
Cash and Cash Equivalents $ 317,871.16 $ 381,774.95 $ 63,903.79 Accounts Receivable $ 36,155.48 $ 26,327.96 $ (9,827.52) Inventory $ 1,427.28 $ 1,427.28 $ - Prepaid Expenses $ - $ - $ - Total Current Assets $ 355,453.92 $ 409,530.19 $ 54,076.27 Property & Equipment
Depreciation $ (287.00) $ (287.00) $ - Total Assets $ 355,166.92 $ 409,243.19 $ 54,076.27
Liabilities
Current Liabilities
Accounts Payable $ 10,363.20 $ 100.00 $ (10,263.20) Total Accounts Payable $ 10,363.20 $ 100.00 $ (10,263.20) Credit Cards
TCBK Visa $ - $ 301.20 $ 301.20 Total Credit Cards $ - $ 301.20 $ 301.20 Total Liabilities $ 10,363.20 $ 401.20 $ (9,962.00)
Equity
Unrestricted $ 194,917.55 $ 344,803.72 $ 149,886.17 Net Income $ 149,886.17 $ 64,038.27 $ (85,847.90)
Total Equity $ 344,803.72 $ 408,841.99 $ 64,038.27
Total Equity & Liabilities $ 355,166.92 $ 409,243.19 $ 54,076.27
NOTES TO FINANCIAL STATEMENTS
ORGANIZATION
The Downtown San Mateo Association (“DSMA”) is a nonprofit organization organized as a California public benefit corporation and operates as a 501(c)(6) nonprofit entity.
DSMA is a coalition of San Mateo businesses whose mission is to promote business activity, community engagement, and economic vitality within the Downtown San Mateo Business Improvement District. Businesses located within the district’s geographic boundaries are automatically enrolled through an assessment fee on their business license. DSMA is additionally supported by associate members, community partners, sponsorships, and programmatic initiatives.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America applicable to nonprofit organizations.
Financial Statement Presentation
DSMA reports its financial position and activities within one class of net assets: Net Assets Without Donor Restrictions, representing resources over which the Board of Directors has discretionary control.
Revenue Recognition
Revenue consists primarily of membership assessments, sponsorships, program revenues, and other operating income. Revenue is recognized when earned and collection is reasonably assured.
Cash and Cash Equivalents
Cash and cash equivalents include highly liquid investments and operating cash balances with original maturities of three months or less.
Use of Estimates
The preparation of financial statements requires management to make estimates and assumptions that affect reported amounts. Actual results may differ from those estimates.
LIQUIDITY AND AVAILABILITY OF FINANCIAL ASSETS
As of June 30, 2025, DSMA had financial assets of $409,530, substantially all of which consisted of cash and cash equivalents available for general operating expenditures within one year.
The organization maintains sufficient liquidity to support ongoing operations and has no material donor-imposed or contractual restrictions limiting asset availability.
CONCENTRATION OF CREDIT RISK
DSMA maintains cash balances at financial institutions that may, at times, exceed federally insured limits. Management does not believe the organization is exposed to significant credit risk related to these balances.
SUBSEQUENT EVENTS
Management evaluated subsequent events and transactions for potential recognition or disclosure through the date this management financial review was completed. No subsequent events were identified that would materially affect the financial statements.
Cooper Grady
Partner & Director of Financial Planning
Pettinelli Financial Partners
555 Veterans Blvd. Ste. 100
Redwood City, CA 94063