Audit - 2007
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ALL PROGRAMS OF THE
SALINA ARTS AND HUMANITIES COMMISSION
Salina, Kansas
COMPILED FINANCIAL STATEMENTS
December 31, 2007
WOODS & DURHAM, CHARTERED
Certified Public Accountants
Salina,Kansas
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, To The Board ot Directors
-'Salina Arts ahd'Humanities Commissi6n' , -
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:' Salina, Kansas ' '; ,
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We have compiled the'accompanYIng staiemeni ofassets,lii'bilities and net assets ,~cash basis,'cit.'
"All Programs 'of the Salina A[ls ~nd Humanities CorTin;ission' (anonprofitorganization)'ascif
December 31,,2007, 'and the related statement of support, revenue' and expenses - modified cash
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basis; for 'the year' then ended, in'acccirdance with Statements on:Standards.for Accounting and', "
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,ReviewSeivices issued by:the Arrierican Institute of,Certified Public Accountants; These financial
,state'ments were prepared cin the modified cash basis ofaccbuniing,whicn is'a comprehensive ,basis
of accounting' other.than generally ;,ccepted accounting piinciJlles, , ' , ",
A compilation is limited tti presenting"in the form of finah"cial statements information"that istne '
representationofmanagerrienl. We hav,e not audited, or reviewed the accompanying ;financial
'statement~ and, accordingly,'do hcit express an opinion or any' other form ot'assurance on them, "
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,%'OodS et <Durnam, Clita::'
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, WOODS & DURHAM: CHiD,
,Ce~ified Publiq Accountants'
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',February 19, 2008
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1619'Klron Avenue'. 'P,O,'Bdx'1516 '~
Fax'785-825'4450 ..
'Salina, Kansas 61'402:1516 ,.'Pho~e785-825-5494'
www,woodsanddurham,com' ,0
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ALL PROGRAMS OF THE
SALINA ARTS AND HUMANITIES COMMISSION
Salina, Kansas
STATEMENT OF ASSETS, LIABILITIES, AND NET ASSETS
MODIFIED. CASH BASIS
December 31, 2007
ASSETS
Current Assets
Cash
Investments
$
8,276
318,504
Total Current Assets
326,780
Other Asset
Beneficial interest in Community Foundation (Note 2)
13,992
Equipment
16,749
TOTAL ASSETS
$
357,521
LIABILITIES AND NET ASSETS
Net Assets
Investment in equipment
Unrestricted
$
16,749
340,772
TOTAL NET ASSETS
$
357,521
The accompanying notes are an integral part of these financial statements.
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ALL PROGRAMS OF THE
SALINA ARTS AND HUMANITIES COMMISSION
Salina, Kansas
STATEMENT OF SUPPORT, REVENUE, AND EXPENSES
MODIFIED - CASH BASIS
Year Ended December 31, 2007
PUBLIC SUPPORT AND REVENUE
Public Support
Government grants
Contracted revenue
Contributions
Total Public Support
$ 391,035
31,975
165,121
Revenue
Program revenue
Investment Return (Note 3)
Miscellaneous
Total Revenue
TOTAL PUBLIC SUPPORT AND REVENUE
EXPENSES
Program Services
Arts programs
Arts services
Total Program Services
274,950
17,035
2,125
583,582
97,094
Supporting Services
General administration
Fund raising
Total Supporting Services
TOTAL EXPENSES
INCREASE OF SUPPORT AND REVENUE OVER EXPENSES
Transfer to City of Salina
Change in Net Assets
NET ASSETS -January 1, 2007
NET ASSETS - December 31, 2007
141,249
44,915
The accompanying notes are an integral part of these financial statements.
$ 588,131
294,110
882,241
680,676
186,164
866,840
15,401
(68,400)
(52,999)
393,771
$ 340,772
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ALL PROGRAMS OF THE
SALINA ARTS AND HUMANITIES COMMISSION
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
This report combines all of the activities of the Salina Arts and Humanities Commission, which are a part of
the Arts and Humanities Department of the City of Salina and financially housed in the Salina Arts and
Humanities Foundation, as of and for the year ended December 31, 2007, including the work of the Salina Arts
and Humanities Commission and its programs - Horizons Program, Smoky Hill River Festival, Community
Cultural Development, and Community Art & Design. The combined financial entity, the Foundation, is exempt
from federal income taxes under Section 501(c)(3) of the Internal Revenue Code and is not identified as a
private foundation within the Code.
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting - The organization prepares its financial statements on the modified cash basis of
accounting, which is a comprehensive basis of accounting other than generally accepted accounting
principles. Under this basis, revenue is recognized when received and expenses are recorded as disbursed. i
Transactions considered as modifications could include the recording of non-cash expenses such as
depreciation, and amounts reflecting certain timing issues related to payments made for periods after the
period under audit.
Property and Equipment - The amount recorded as property and equipment represents equipment
purchased. Such assets are recorded at cost. Depreciation has not been provided on these assets.
Cash and Cash Equivalents - Cash and cash equivalents inciude all monies in banks and highly liquid
investments with maturity dates of three months or less. Fair market value equals carrying amounts.
Investments - The Organization has adopted SFAS No. 124, "Accounting for Certain Investments Held by
Not-for-Profit Organizations." Investments in marketable securities with readily determinable fair values and all
investments in debt securities are reported at their fair values in the statement of assets, liabilities and net
assets. Unrealized gains and losses are reported in the statement of revenue and expenses as increases or
decreases in net assets.
Basis of Presentation - Financial statements presentation follows the recommendations of the Financial
Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS) No. 117, Financial
Statements of Not-for-Profit Organizations. Under SFAS No. 117, the Organization is required to report
information regarding its financial position and activities according to three classes of net assets: unrestricted
net assets, temporarily restricted net assets, and permanently restricted net assets. As of December 31,
2007, there were no donor-imposed restrictions on net assets.
Contributed Services - No amounts have been reported in the financial statements for donated services
because no objective basis is available to measure the value of such service.
Employee salaries and fringe benefits are paid by the City of Salina under a third party reimbursement
program; therefore, they are covered by Kansas Public Employees Retirement System through the City.
Accordingly, no disclosures pertaining to the City's retirement plan is included in these financial statements.
Salaries have been allocated to the Arts Programs and Arts Services based upon an estimate by management
of the time spent by the employees of the particular activities.
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ALL PROGRAMS OF THE
SALINA ARTS AND HUMANITIES COMMISSION
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd.)
Revenue Recognition - The Foundation has adopted SFAS No. 116, "Accounting for Contributions Received
and Contributions Made." In accordance with SFAS No. 116, contributions received are recorded as
unrestricted, temporarily restricted, or permanently restricted support depending on the existence or nature of
any donor restrictions. They are then reclassified to unrestricted net assets upon expiration of time
restrictions or upon meeting program requirements. As of December 31, 2007, there were no donor-imposed
restrictions on contributions received.
Estimates - The preparation of financial statements requires management to make estimates and
assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ
from those estimates.
NOTE 2 - ASSETS TRANSFERRED TO A RECIPIENT ORGANIZATION
The Organization permanently transferred $10,000 to the Greater Salina Community Foundation for its
benefit. The Foundation has variance power and legal ownership over all property in the fund and the income
derived from it. The Foundation may make annual distributions to Salina Arts and Humanities Commission of
an amount up to but not to exceed five percent of the fund's net fair market vaiue. The Organization has
recognized the fair market value of the fund at December 31, 2007, of $13,992, as an other asset in the
accompanying Statement of Assets, Liabilities, and Net Assets.
NOTE 3 - BOARD DESIGNATED FUNDS
The Commission, by Board action, has approved carryover of unrestricted funds as designated funds for
certain programs within the Organization. The Horizons Program has board designated funds in the amount
of $10,732, and the Salina Arts & Humanities Commission has $11,744 of board designated funds for a total
of $22,476. These designated funds are shown on the Statement of Assets, Liabilities, and Net Assets -
Modified Cash Basis as part of Unrestricted Net Assets.
NOTE 4 - DEPOSITS AND INVESTMENTS
As of December 31,2007, the cash balance of the Commission was adequately secured by FDIC Insurance.
The Commission's investments are held at a brokerage firm and are not collateralized by the Federal
government. It is the opinion of management that the solvency of the referenced financial institution is not of
concern at this time. These fund are insured with SIPC.
Investments are stated at fair value and consist of (not inciuding Greater Salina Community Foundation,
presented in Note 2):
Fair Market Unrealized
Cost Value Gain (Loss)
Money Market Funds $ 55,988 $ 55,988 $
Certificates of Deposit 174,537 174,537
Mutual Funds 89,564 87,979 (1,585)
Total $ 320,089 $ 318,504 $ (1,585)
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ALL PROGRAMS OF THE
SALINA ARTS AND HUMANITIES COMMISSION
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
NOTE 4 - DEPOSITS AND INVESTMENTS (Cont'd.)
Investment return is summarized as follows (including Greater Salina Community Foundation):
Interest and Dividend Income
Long-Term Capital Gains
Realized Gain on Investments
Net Unrealized (Loss) on Investment
$ 16,481
7,734
2,034
(9,214)
$ 17,035
T otall nvestment Return
NOTE 5 -.OPERATING LEASE
The Commission entered into a three-year operating lease for office equipment on November 27, 2006,
requiring monthly payments of $390 plus expenses. This lease allows the Foundation to renew monthly after
the three-year term is met. Payments will be made from the following programs:
No. of Monthly Total
Prooram Pavments Pavment Amount
Salina Arts & Humanities Commission 2 $390 $ 780
Horizons 2 $390 780
Smoky Hill River Festival 2 $390 780
$ 2,340
Under this agreement, rent expense for 2007 was $2,340. The City of Salina pays for six of the scheduled
payments. Effective January 1, 2008, the City of Salina will pay all of the copier lease payments.
NOTE 6 - ARTWORK COLLECTION
Since 1977, the Smoky Hill River Festival, a program of the Salina Arts and Humanities Commission, has
purchased selected artwork from each annual festival. These works have been inventoried, and are
displayed around the community in public spaces.
The total of these purchases to date is $42,068. The purchases are charged to expense as acquired.
Accordingly, no "inventory" of artwork is recorded in these financial statements.