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Annual Report - 2013 • VI‘A • kille TELEVISION of SALINA Community Access Television of Salina 2014 Annual Report 215 N. 9th P. 0. Box 645 Salina, KS 67402-645 785-823-2500 0 www.salinatv.org 1 01/(11MI W Community Access Television of Salina, 416 Inc. 215 N. 9th P. O. Box 645 Q Salina, KS 67402-0645 785-823-2500 TELEVISION oF SALINA www.salinatv.org Board of Directors Chair February 2014 Linda Smith Dear Members, Independent Producers, and Volunteers, Vice Chair Welcome to the 2013 Annual meeting. We are pleased Michael Lamia to give you an overview of the services, programing, and financials, which made up our year. Secretary Carol Clark This year the goals for Community Access Television are to increase community involvement, members, Treasurer volunteers, sponsors, and programs. This will be Ed Baldwin achieved through various methods: creating new programs developed to engage community members, • Mike Wilson outreach to organizations, schools, non-profits and Doug Kempton businesses. In addition creating local partnerships. Jung Oh We want to go back to our roots. Community Access Executive Director Television was originally designed to help people in Salina and Saline County to get a message out to Marine Rhein community. This is an exciting year of hope and change at Staff Community Access Television! Operation Manger Sincerely, Aaron Carter Marnie Rhein Office Manger Donna Lawson-Hams Production Assistant MISSION STATEMENT James "Cash" Curti Access Television of Salina is a leading public access media center that enables a vibrant and diverse community to express its creativity, explain its ideas, share its cultures and • foster the individual's right to freedom of speech. Access TV supports and creates community-driven media through education, production resources and distribution on cable television and the Web. L. • • • — 2013 PROGRAMMING NUMBERS mom - Total shows on both channels — Combined: 584 I .... J i `� - Community Access Channel 20: 192 ' �"`' I • a Public Access Channel 21: 392 I � r Arts/ Entertainments: 27 1-' r Children: 6 �a�� EDU Meeting: 34 Educational: 6 General: 190 GOV Local: 7 GOV Meeting: 156 NUMBERS OF CLASSES GOV Other: 7 Health/ Fitness: 9 • ORIENTATION TO COMMUNITY ACCESS TV: 30 Political: 13 • CAMERA: 25 Promo: 29 • EDITING: 20 PSA: 13 • TRICASTER: 5 Religious: 148 • STUDIO: 12 Sports: 15 2013 Members: 143 ill • ancial Highlights ese are preliminary financials from the 2013 fiscal year. To obtain financial statement for Community Access Television, for the year ending December 31, 2013, contact the office at 785-823-2500 or via email at mrhein @salinatv.org. Condense Balance Sheet 12-31-2013 Revenue & Expense Assets Where we got Our Dollar: Cash Petty $ 109.07 City/ County revenue $ 231,762.14 Cash-Sunflower Operating $41,942.36 Production Service $ 1,837.50 Cash-Sunflower MM $44,979.89 Membership, Sponsorship & Monetary Contribution $ 3,697.07 Investment $ 51.12 Total Asset $87,031.32 Merchandise Sales $ 81.83 Total Revenue $237,429.66 Liabilities & Net Asset How we spend our Dollars Employee Payable $ 1393.77 Unrestricted $85.637.55 Personnel $169,266.72 Total Liabilities & Operating $ 30,787.53 Net Assets $87,031.32 Office $ 14,401.42 Outreach $ 15,754.67 Production $ 34,606.76 • Professional Service S 21,824.25 Increase (Decrease) in Unrestricted Net Assets $(49,211.74) I 1 1 1 COMMUNITY ACCESS TELEVISION OF SALINA, INC. Salina, Kansas 1 1 1 FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT December 31, 2013 and 2012 1 I 1 CLUBINE AND RETTELE, CHARTERED CERTIFIED PUBLIC ACCOUNTANTS SALINA, KANSAS e 1 I I e 1 COMMUNITY ACCESS TELEVISION OF SALINA, INC. Salina, Kansas 1 INDEX• 1 Page INDEPENDENT AUDITORS' REPORT 1 STATEMENTS OF ASSETS, LIABILITIES AND NET ASSETS - MODIFIED CASH BASIS - Exhibit I 2 I STATEMENTS OF REVENUES, EXPENSES AND OTHER CHANGES IN NET ASSETS - MODIFIED CASH BASIS - Exhibit II 3 STATEMENTS OF CASH FLOWS - MODIFIED CASH BASIS - Exhibit III 4 ISTATEMENTS OF FUNCTIONAL EXPENSES —MODIFIED CASH BASIS— Exhibit IV 5 NOTES TO THE FINANCIAL STATEMENTS 6-7 1 1 1 1 I I 1 1 1 I CLUBINE INDEPENDENT AUDITORS' REPORT .i Tr L To: The Board of Directors I CHARTERED Community Access Television of Salina, Inc. Certified Public Accountants We have audited the accompanying financial statements - modified cash basis of • Community Access Television of Salina, Inc. (a nonprofit organization), which comprise the 1 statements of assets, liabilities and net assets— modified cash basis as of December 31, " 2013 and 2012, and the related statements of revenues, expenses and other changes in I rg • net assets— modified cash basis, cash flows— modified cash basis, and functional expenses—modified cash basis, for the years then ended and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial Robert I. Clubine,CPA statements in accordance with the modified cash basis of accounting which is an other David A. ,CPA comprehensive basis of accounting other than accounting principles generally accepted in Jay D. Langley,CPA, CGMA Jon K. Bell,CPA the United States of America; this includes the design, implementation, and maintenance 1 . Leslie M. Corbett,CPA of internal control relevant to the preparation and fair presentation of financial statements Stacy J.Osner,CPA that are free from material misstatement, whether due to fraud or error. Marti K. Fox, CPA Auditors' Responsibility Linda A.Svelter,CPA Our responsibility is to express an opinion on these financial statements based on our Valerie K. Linenberger,CPA Johnna R.Vosseller, CPA 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. 1 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. , 1 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 1 Opinion 218 South Santa Fe In our opinion, the financial statements referred to above present fairly, in all material P.O. Box 2267 respects, the financial position of Communit y Access Television of Salina, Inc. as of 1 Salina, Kansas 67402-2267 p p December 31, 2013 and 2012, and the changes in its net assets and cash flows for the years then ended, in conformity with the modified cash basis of accounting. Salina Other Matter 785/825-5479 As described in Note 2, these financial statements were prepared on the modified cash Salina Fax 785/825-2446 basis of accounting. This basis is a comprehensive basis of accounting other than 785 generally accepted accounting principles. Ellsworth 785/472 3915 CLUBINE AND RETTELE, CHARTERED /,� Ellsworth Fax �Q / r/ u'KV`f _/ 785/472-5478 ��( G{ /1 iaa'j`(� a--t (/l May 15, 2014 Salina, Kansas (1) I 1 COMMUNITY ACCESS TELEVISION OF SALINA, INC. Salina, Kansas Exhibit I STATEMENTS OF ASSETS, LIABILITIES AND NET ASSETS 1 MODIFIED CASH BASIS December 31, 2013 and 2012 ASSETS I 2013 2012 Current Assets Cash in bank $ 87,031 $ 136,639 Donated facilities, current portion 81,800 84,300 Total Current Assets 168,831 220,939 1 Property and Equipment, at cost Building improvements 186,103 186,103 Equipment 397,050 371,140 • 583,153 557,243 Deduct-Accumulated depreciation (453,623) (421,012) Total Property and Equipment 129,530 136,231 Other Assets Donated facilities, less current portion - 81,800 1 Total $ 298,361 $ 438,970 LIABILITIES AND NET ASSETS Current Liabilities Accrued payroll taxes and withholdings $ 1,393 $ 1,790 1 Net Assets Unrestricted 215,168 271,080 1 Temporarily restricted - . 81,800 166,100 Total Net Assets 296,968 437,180 1 Total $ 298,361 $ 438,970 1 • 1 1 1 See accompanying notes which are an integral part of the financial statements. (2) I 1 . COMMUNITY ACCESS TELEVISION OF SALINA, INC. I Salina, Kansas Exhibit II • STATEMENTS OF REVENUES, EXPENSES AND OTHER CHANGES IN NET ASSETS-MODIFIED CASH BASIS I For the Years Ended December 31, 2013 and 2012 Changes in Unrestricted Net Assets Revenue and Reclassifications 2013 2012 I Revenue City ordinance $ 230,022 $ 236,510 County revenue 1,740 14,700 Contributions 3,452 1,355 I Merchandise/Duplication 81 255 Membership/Sponsorship 245 680 Interest 51 830 I Production services, Underwriting 1,170 3,484 Government meeting reimbursement 668 2,750 Donated facilities 5,400 1,900 Loss on disposal of equipment - (14,843) ITotal Revenue 242,829 247,621 Net Assets Released From Restrictions I Satisfaction of facility usage restriction Total Re 84,300 87,700 Revenue and Reclassifications 327,129 335,321 Program Expenses • I Accounting 8,065 7,840 Legal 200 Office supplies 6,335 8,341 I Postage and mailing 982 641 Printing 2,116 739 Repairs and maintenance 8,994 22,940 • Production supplies 11,158 10,088 Telephone and cable 5,178 3,170 Dues and publications 1,503 1,726 Bank fees 551 924 I Community relations 12,747 6,024 Advertising 18,571 3,869 Contract Labor 7,013 4,500 Wages 136,738 134,716 I Payroll taxes 12,708 12,539 Retirement plan 2,383 2,884 Health insurance 10,425 5,360 Staff development 844 3,118 I Underwriting usage • - 612 Insurance 13,759 19,846 Travel and recruitment 660 2,364 I Depreciation 32,611 27,427 Donated facilities rent 89,700 89,600 Total Program Expenses 383,041 369,468 I Total Changes in Unrestricted Net Assets (55,912) (34,147) Changes in Temporarily Restricted Net Assets Net assets released from restrictions (84,300) (87,700) I Change in Net Assets (140,212) (121,847) Net Assets at Beginning of Year 437,180 559,027 I Net Assets at End of Year $ 296,968 $ 437,180 See accompanying notes which are an integral part of the financial statements. I (3) 1 COMMUNITY ACCESS TELEVISION OF SALINA, INC. 1 Salina, Kansas Exhibit III STATEMENTS OF CASH FLOWS MODIFIED CASH BASIS IFor the Years Ended December 31, 2013 and 2012 2013 2012 Cash Flows From Operating Activities Cash received from cable contracts and others $ 237,378 $ 259,734 I Interest received 51 830 Cash paid to suppliers and others (261,127) (254,068) - Net Cash (Used) Provided by Operating Activities (23,698) 6,496 1 Net Cash Used by Investing Activities Purchase of property and equipment (25,910) (95,896) Net Decrease in Cash (49,608) (89,400) Cash at Beginning of Year 136,639 226,039 1 Cash at End of Year $ 87,031 $ 136,639 I RECONCILIATION OF DECREASE IN NET ASSETS TO NET CASH (USED) PROVIDED BY OPERATING ACTIVITIES Decrease in Net Assets $ (140,212) $ (121,847) IAdjustments to reconcile decrease in net assets to net cash (used) provided by operating activities I Depreciation 32,611 27,427 Decrease in donated facilities 84,300 87,700 Decrease in accrued payroll taxes and withholdings (397) (1,627) I Loss on disposal of equipment - 116,514 14,843 Total Adjustments 4 128,343 1 Net Cash (Used) Provided by Operating Activities $ (23,698) $ 6,496 I I I 1 See accompanying notes which are an integral part of the financial statements. 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Nature of Activities: 1 Community Access Television of Salina, Inc. was organized as a Kansas not-for-profit corporation with exempt status under Internal Revenue Code Section 501(c)(3) on April 15, 1991. The organization operates cable television channels to distribute noncommercial, educational, community-based media programs and information to local citizens and provides equipment and technical knowledge for local citizens who produce the programs. 2. Significant Accounting Policies: • 1 A. The accounting records are maintained and the financial statements prepared on the modified cash basis of accounting. Under the cash basis, receipts are recognized when collected and disbursements are recognized when paid rather than when incurred. This method is modified to include a provision for depreciation of property and equipment and for accrued payroll taxes. B. For the purposes of the Statements of Cash Flows- Modified Cash Basis, cash equivalents include bank checking accounts and a money market account. 1 C. Property and equipment are recorded at cost. Depreciation is determined using•the straight-line method over estimated lives of 5 to 15 years. Expenditures resulting in an asset having an estimated useful life that extends beyond the year of acquisition and a cost greater than $500 are capitalized. D. The preparation of financial statements in conformity with the modified cash basis of accounting requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. E. Non-direct response advertising and marketing costs are charged to expense when incurred. 3. City of Salina Contract: 1 A contract with the City of Salina dated April 2, 2007, provided for funds to be paid to Community Access Television of Salina, Inc. in exchange for providing the services in Note 1. The agreement term commenced April 4, 2007 and terminated December 31, 2011. A new contract was signed November 28, 2011, with a term commencing January 1, 2012, and ending December 31, 2014. The contract may be renewed by mutual agreement for additional three year periods. The organization must submit a letter of intent requesting renewal by July 1st of the last year of the contract term. The City of Salina must respond to the letter by October 1st if the City intends to refuse to renew the agreement. The terms of the new contract are similar to those of the old contract. Under the terms of the agreement, the City of Salina furnishes a building and utilities for the operations of Community Access Television of Salina, Inc. The estimated fair rental value for the life of the new contract was estimated to be $253,800, and was recognized as temporarily restricted revenue in 2011. In 2013 and 2012, the revenue released from restrictions was $84,300 and $87,700, respectively, and is shown as a reclassification. The expense for the years ended 2013 and 2012 of$89,700 and $89,600, respectively, is shown under the caption "Donated Facilities" on the Statement of Revenues, Expenses and Other-Changes in Net Assets - Modified Cash Basis, in accordance with FASB ASC 958-605, Revenue Recognition. The $5,400 difference for 2013 and $1,900 difference for 2012 represents the discounted portion of donated facilities not recognized in I 2011. The City of Salina maintains a security interest in all assets and upon termination of the agreement, all real estate, equipment, deposit accounts or other assets become the property of the City of Salina. (6) 1 1 4. City of Salina Revenue: Revenues from the city ordinance represent a percentage of fees paid to the City of Salina by the cable franchisee. These are remitted quarterly to Community Access Television of Salina, Inc. The fourth quarter payment for 2013 of$56,628, and 2012 of$56,819, was not payable until after year-end. 1 From time to time, additional funds may be provided by the City of Salina for equipment purchases at the request of Community Access Television of Salina, Inc. This revenue is recorded under the caption "City equipment reserve"when received. In 2013 and 2012, no such funds were received. All of the revenues from.the City of Salina are subject to the perpetuity of the contract mentioned in Note 2. 5. Compensated Absences: Certain employees of the organization are entitled to paid vacation and sick days depending on various factors which can be carried over to following years up to certain limits. The liability for these compensated absences at 1 December 31, 2013 and 2012, is estimated to be $7,500 and $5,631, respectively. This estimated liability has not been reflected in these financial statements. 6. Retirement Plan: The organization sponsors a Simple IRA Plan for eligible employees which began January 1, 1999. Contributions to the pension plan were$2,383 and $2,884 for the years ended December 31, 2013 and 2012, respectively. 7. Income Taxes - Uncertain Tax Positions: The organization is exempt from federal income taxes under IRS Code Section 501(c)(3) except on net income derived from unrelated business activities. The Organization believes that it has no reportable unrelated business activities, and as such, does not have any uncertain tax positions that are material to the financial statements. All required tax filings are up to date. Tax returns filed for years ending after December 31, 2010 are considered open tax years and subject to examination by the IRS. I 8. Subsequent Events: Community Access Television of Salina, Inc.'s management has evaluated events and transactions occurring after December 31, 2013 through May 15, 2014. The aforementioned date represents the date the financial statements were available to be issued. • 1 1 1 1 (7) 1