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Audit Cultural Development 2007 I I I I I I I I I I I I I I I I I I I SALINA ARTS AND HUMANITIES COMMISSION COMMUNITY CULTURAL DEVELOPMENT PROGRAM Salina,Kansas COMPILED FINANCIAL STATEMENTS December 31, 2007 WOODS & DURHAM, CHARTERED Certified Public Accountants Salina, Kansas I ....1 '1 '.1'-. .'1 I I .,' :. I . 1'<,' I, I I 'I"',.' . . , . ,,' I . I , ' ~ ' . ''.', '. J, ,.., CHAR T E R'E,D ;, " ., '. ~.' . ,; " ,. , ,", ,,',_, t". , "~ ,. .' ," <,', '.' ,,' '., .." ~ ';. ~. .' I,', - ,-. ." .. Salina Artsand'Humanities:Com;"is~ion ,Community CulturaL DevEllopment,Prog'ram.: . Salina,Kansas' '" ',' ., '", ,.,' " '. ", . We have. compiled the accompa~ying,statemeniof assets; liabilities and net asseis - cash basis, ,of th.e Salina Arts and Humanities Commission' -CommunitY Cultural Development progra'm (a nonprofit ' organization), as ofDecembe'r 31, 2007;, and the related statement 'of revenue and expenses - cash '. . basis, forthe year then ended, in, accorilance with' StatemEmtson StandardsJor'Accountingand Revie,w, . Services issued by thee; American' Institute of Certified Public Accountants.nlese financial.statements , .' - , .' .",' .' . .' .'.' ,. we're'prepared on the cash.basis,of acco~nting" which is a comprehensive basis, of accounting other' " than generally acceJlted'accountingprinciples. " " ' , .. .,.;. -.,'. , '., .' , , " .. ,. , . Acompilation islimiied to'presentinginthefqrmof financial statements: information that is ,the, '. ,representation' ',of management.. We have, not, audited or .'reviewed the' .accompanying 'financial, ' , .- .'., " ,-,,'.'.' - " .', .' -.' -, -, , . " ,statements and, accordingly, do' not'exp'ress an opinion orany other form of assurance on them: . . , ". .'.'.' ~' ", '. _. .';.' ,'_. '.: '_ . .' "..' ,'0.'.' .'.' - .'. '/'.' ,'.'. _ _, .'.'.' \ -, . ~ ' .' ",' " -.,;; .:.... 'U'oq4 G't(])ur!ia11l, Cftil' ". .,. " . 'c.' .'. , 'WOODS &DURHAM,CHTD. 'Certified Public Accountants' February 19; 2008, c,-, '. ->;'. :" " ,,' ,'1' .t",,' '.' c> or'" .',K' .' ~ '. " ,. ..' ,: .. . . ..,;. ,'. " 1.: ,",' ;,., " " ',)' ," '.'.'. '" '. 1619 E.lro'nAvenue:.P:O. Box-i516'. , ',F~x 785-825,4450. . ,'.' " " . .' " . - Salina; Kansas 67402-1516' ~ Pnone 785,825-5494 .wwW.woodsan.dd.mham.com-.c .: '. ...... . I I I I I I I I I I I I I I I I I I I SALINA ARTS AND HUMANITIES COMMISSION COMMUNITY CULTURAL DEVELOPMENT PROGRAM Salina,Kansas STATEMENT OF ASSETS, LIABILITIES, AND NET ASSETS CASH BASIS December 31,2007 ASSETS Current Assets Investments $ 19,031 Other Assets Beneficial Interest in Community Foundation (Note 1) 13,992 TOTAL ASSETS $ 33,023 LIABILITIES AND NET ASSETS Net Assets Unrestricted 33,023 TOTAL NET ASSETS $ 33,023 The accompanying notes are an integral part of these financial statements. I I I I I I I I I I I I I I I I I I I SALINA ARTS AND HUMANITIES COMMISSION COMMUNITY CULTURAL DEVELOPMENT PROGRAM Salina, Kansas STATEMENT OF REVENUE AND EXPENSES CASH BASIS Year Ended December 31,2007 REVENUE Investment return (Note 2) $ 2,797 Transfers Transfer 10 Salina Arts & Humanities Commission (38,400) Tolal Decrease in Nel Assets (35,603) NET ASSETS - January 1, 2007 68,626 NET ASSETS - December 31,2007 $ 33,023 The accompanying notes are an integral part of these financial statements. I I I I I I I I I I I I I I I I I I I SALINA ARTS AND HUMANITIES COMMISSION COMMUNITY CULTURAL DEVELOPMENT PROGRAM Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 2007 The Community Cultural Development Program was created in 1992 by the Salina Arts and Humanities Commission as a program to collect funds for use in the development and promotion of the cultural arts in the City of Salina. The Community Cultural Development Program is a project of the Salina Arts and Humanities Commission. As such, it is exempt from federal income tax 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 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. Cash and Cash Equivalents - Cash and cash equivalents include 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. 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 value. 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. I I I I I I I I I I I I I I I I I I I SALINA ARTS AND HUMANITIES COMMISSION COMMUNITY CULTURAL DEVELOPMENT PROGRAM Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 2007 NOTE 3 - INVESTMENTS Investments are stated at fair value and consist of (not including Greater Salina Community Foundation, presented in Note 2): Unrealized Cost Market Gain Money Market $ 2 $ 2 $ Mutual Fund 18,878 19,029 151 Total $ 18,880 $ 19,031 $ 151 Investment return is summarized as follows (including Greater Salina Community Foundation): Interest and Dividend Income Long-Term Capital Gains Net Unrealized Loss on Investments Realized Gain on Investments $ 2,471 2,697 (4,458) 2,087 Total Investment Return $ 2,797 Expenses relating to investment revenue amounted to $136, and have been netted against investment revenue in the accompanying statement of revenue and expenses - cash basis. NOTE 4 - CONCENTRATION OF CREDIT RISK Financial instruments that potentially subject the Commission to concentrations of credit risk include cash deposits with commercial banks and a brokerage firm. There were no deposits at risk as of December 31, 2007. The Commission's investments at the brokerage firm 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 funds are insured with SIPC.