Audit Cultural Development 2008
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SALINA ARTS AND HUMANITIES COMMISSION
COMMUNITY CULTURAL DEVELOPMENT PROGRAM
Salina, Kansas
COMPILED FINANCIAL STATEMENTS
December 31, 2008
WOODS & DURHAM, CHARTERED
Certified Public Accountants
Salina, Kansas
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certified
public
C H ART ERE D accountants
Salina Arts and Humanities Commission
Community Cultural Development Program
Salina, Kansas
We have compiled the accompanying statement of assets, liabilities and net assets - cash basis, of the
Salina Arts and Humanities Commission - Community Cultural Development Program (a nonprofit
organization), as of December 31, 2008,. am:! the related statement of revenue and expenses - cash
basis, for the year then ended, in accordance with Statements on Standprds for Accounting and Review
Services issued by the American Institute of Certified Public Accountants. These financial statements
were prepared on the cash basis of accounting, which is a comprehensive basis of accounting other
than generally accepted accounting principles.
A compilation is limited to presenting in the form of financial statements information that is the
representation of management. We have not audited or reviewed the accompanying financial
statements and, accordingly, do not express an opinion or any other form of assurance on them.
WoodS et (])urliam, Cfitd:
February 11, 2009
WOODS & DURHAM, CHTD.
Certified Public Accountants
1619 E. Iron Avenue . P.O. Box 1516 · Salina, Kansas 67402-1516 · Phone 785-825-5494
Fax 785-825-4450 · .www.woodsanddurham.com
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SALINA ARTS AND HUMANITIES COMMISSION
COMMUNITY CULTURAL DEVELOPMENT PROGRAM
Salina, Kansas
STATEMENT OF ASSETS, liABILITIES, AND NET ASSETS
CASH BASIS
December 31,2008
ASSETS
Current Assets
Investments
$
13,002
Other Assets
Beneficial Interest in Community Foundation (Note 1)
9,827
TOTAL ASSETS
$
22,829
LIABILITIES AND NET ASSETS
Net Assets
Unrestricted
22,829
TOTAL NET ASSETS
$
22,829
The accompanying notes are an integral part of these financial statements.
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SALINA ARTS AND HUMANITIES COMMISSION
COMMUNITY CULTURAL DEVELOPMENT PROGRAM
Salina, Kansas
STATEMENT OF REVENUE AND EXPENSES
CASH BASIS
Year Ended December 31, 2008
REVENUE
Investment return (Note 2) $ (8,694)
Transfers
Transfer to Salina Arts & Humanities Commission (1,500)
Deficiency of Revenue Over Expense (10,194)
NET ASSETS - January 1, 2008 33,023
NET ASSETS - December 31,2008 $ 22,829
The accompanying notes are an integral part of these financial statements.
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SALINA ARTS AND HUMANITIES COMMISSION
COMMUNITY CULTURAL DEVELOPMENT PROGRAM
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Operations - 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.
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 accountingl 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,
2008, 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, 2008 of $9,827 as an other
asset in the accompanying statement of assets, liabilities and net assets.
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SALINA ARTS AND HUMANITIES COMMISSION
COMMUNITY CULTURAL DEVELOPMENT PROGRAM
Salina,Kansas
NOTES TO FINANCIAL STATEMENTS
December 31,2008
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 (Loss)
Money Market $ 2 $ 2 $
Mutual Fund 17,176 13,000 (4,176)
Total $ 17,178 $ 13,002 $ (4,176)
Investment return is summarized as follows (including Greater Salina Community Foundation):
Interest and Dividend Income
Net Unrealized Loss on Investments
Realized (Loss) on Investments
$
359
(8,493)
(560)
(8,694)
Total Investment Return
$
Expenses relating to investment revenue amounted to $143, and have been netted against investment
revenue in the accompanying statement of revenue and expenses - cash basis.
A portion of the Foundation'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 funds are insured with SIPC. These investments are
exposed to various risks such as interest rate, market and credit risks. Due to the level of risk associated
with certain investment securities, it is reasonably possible that changes in values of investment securities
will occur in the near term.