Audit - 2005
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THE SMOKY HILL RIVER FESTIVAL
Salina, Kansas
AUDITED FINANCIAL STATEMENTS
September 3D, 2005
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WOODS & DURHAM, CHARTERED
Certified Public Accountants
Salina,Kansas
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THE SMOKY HILL RIVER FESTIVAL
Salina, Kansas
TABLE OF CONTENTS
Independent Auditor's Report ..........................................
Statement of Assets, Liabilities, and Net Assets -
Modified Cash Basis ...............................................
Statement of Support, Revenue and Expenses,
and Changes in Net Assets - Modified Cash Basis
Notes to Financial Statements .........................................
Page
Number
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2
3
4-5
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certified
public
C H ART ERE 0 accountants
INDEPENDENT AUDITOR'S REPORT
The Smoky Hill River Festival
Salina, Kansas
We have audited the accompanying statement of assets, liabiliiies, and net assets - modified
cash basis of The Smoky Hill River Festival (a nonprofit organization) as of September 30,
2005, and the related statement of support, revenue and expenses, and changes in net assets
- modified cash basis, for the year then ended. These financial statements are the
responsibility of Salina Arts and Humanities Foundation. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America. Those standards require that we. 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. We believe that our audit provides a reasonable basis
for our opinion.
As described in Note 1, these financial statements were prepared on the modified cash basis
of accounting, which is a comprehensive basis of accounting other than generally accepted
accounting principles.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the assets, liabilities, and net assets of The Smoky Hill River Festival as of September 30,
. 2005, and its support, revenue and expenses, and other changes in net assets for the year
then ended, on the basis of accounting described in Note 1.
October 20, 2005
'WoodS ~ CDurfiam, Cliti
WOODS & DURHAM, CHTD.
Certified Public Accountants
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161<1 E. 1....11 AVI:llll" . 1'.0. Box 1516 . Salina, Kansas 67402-1516 . Phone 785-825-5494
r:ax 7H5-H25~44S() . www.woodsanddurham.com
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THE SMOKY HILL RIVER FESTIVAL
Salina, Kansas
STATEMENT OF ASSETS, LIABILITIES, AND NET ASSETS
MODIFIED CASH BASIS
September 30, 2005
ASSETS
Current Assets
Cash $ 33,953
Investments 140,223
Total Current Assets 174,176
Equipment 12,774
TOTAL ASSETS $ 186,950
LIABILITIES AND NET ASSETS
Net Assets
Unrestrictod
TOTAL LIABILITIES AND NET ASSETS
$
$
186,950
186,950
Soo Independent Audlte(s Report and Notes to Financial Statements.
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THE SMOKY HILL RIVER FESTIVAL
Salina,Kansas
STATEMENT OF SUPPORT, REVENUE AND EXPENSES,
AND CHANGES IN NET ASSETS - MODIFIED CASH BASIS
September 30, 2005
SUPPORT AND REVENUE
Public Support
Private Charitable Contributions
Individual donations
Business donations
Sponsorships
Professional fund campaign
Total Public Support
$ 26,924
4,510
76,963
13,725
Revenue
Program Revonue
Admissions
Fees
Merchandiso income
Investment Income
Miscellaneous incomo
Total Revenuo
137,598
95,429
9,939
3,946
2,594
TOTAL SUPPORT AND REVENUE
EXPENSES
Program Servlcos
Special Projects
Arts programs
Marketing
Technical
Merchandiso uxpunso
Total Program Servlcos
218,777
77,165
67,448
9,043
Supporting Servlcos
General admlnlstrntlon
Sales tax
Miscellaneous
Total Supporting Servlcos
26,837
599
2,826
TOTAL EXPENSES
DECREASE IN UNRESTRICTED NET ASSETS
TRANSFERS FROM OTHER PROGRAMS
Community Art ond Doullln
NET ASSETS BEGINNING OF YEAR - October 1, 2004
NET ASSETS END OF YEAR. September 30, 2005
50u lndupondonl Auditor's Report and Notes to Financial Statements.
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$ 122,122
249,506
371,628
372,433
30,262
402,695
(31,067)
2,500
215,517
$ 186,950
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THE SMOKY HILL RIVER FESTIVAL
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
September 30, 2005
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting - The organization maintains its accounting records on the modified
cash basis of accounting. Consequently, revenue is generally recorded as received and
expenditures are recorded as disbursed. 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 to the Festival for periods after the period
under audit. Accordingly, the accompanying financial statements are not intended to present
financial position and changes in net assets in conformity accounting principles generally
accepted in the United States of America.
The Smoky Hill River Festival is a program of the Salina Arts and Humanities Foundation.
Separate accounting records are maintained by the two entities, and separate audit reports
have been issued.
Property and Equipment- The amount recorded as equipment represents equipment
purchased at cost by the Smoky Hill River Festival. Depreciation has not been provided on
this equipment.
Tax Exempt Status - The Smoky Hill River Festival, as a program of the Salina Arts and
Humanities Foundation, 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.
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.
NOTE 2 - CONTRIBUTED SERVICES
The Festival utilizes the donated services of literally hundreds of volunteers to produce the
Festival. Although these volunteer services are an integral part of the organization, there is
no clearly measurable basis for determining the value of such services. Accordingly, these
financial statements do not reflect financial data pertaining to these services.
NOTE 3 - DEPOSITS AND INVESTMENTS
Deposits
As of September 30, 2005, and for the year then ended, the cash balances of the Festival
were adequately secured by FDIC insurance of the respective banking institutions.
Investments
As of September 30, 2005, the balance of investments of the Festival was $140,223. All but
one investment has boen made in institutions insured by the FDIC, and all but one investment
balance during the year was fully insured. Of the $140,223 balance, $4,525 is not covered by
insurance provided by tho federal government. It is the opinion of management that the
solvency of the referenced financial institution is not of concern at this time.
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THE SMOKY HILL RIVER FESTIVAL
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
September 3D, 2005
NOTE 3 - DEPOSITS AND INVESTMENTS (CONT'D.)
Investments (Cant'd.)
The following is a listing of investments as of September 30, 2005:
Basis Market
Certificate of Deposit - UMB $ 36,271 $ 36,271
Certificate of Deposit - Capitol Federal 11,824 11,824
Certificate of Deposit - Capitol Federal 26,196 26,196
Money Market Account - Sunflower Bank 20,402 20,402
Money Market Account - A.G. Edwards 4,525 4,525
Money Market Account - First Bank 1,005 1,005
Certificate of Deposit - Security Savings 40,000 40,000
Total $ 140,223 $ 140,223
NOTE 4. OPERATING LEASE
The Commission entered into a three-year operating lease for office equipment in December
2003. This lease allows the Commission to renew monthly after the three-year term is met.
Payments for the equipment are made from various programs of the Commission. Under
this agreement, rent expense for 2005 was $1,563. Future payments will be made as
follows:
Total
Year Amount
2006 $ 1,563
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