Audit - 2003
THE SMOKY HILL RIVER FESTIVAL
Salina, Kansas
AUDITED FINANCIAL STATEMENTS
September 30, 2003
WOODS & DURHAM, CHARTERED
Certified Public Accountants
Salina, Kansas
THE SMOKY HILL RIVER FESTIVAL
Salina, Kansas
TABLE OF CONTENTS
IndependentAuditor'sReport .,.....,...................,..............
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
1
2
3
4-5
~ ~iricJ
.LJLU. public
C H ART ERE D accountants
INDEPENDENT AUDITOR'S REPORT
The Smoky Hill River Festival
Salina, Kansas
We have audited the accompanying statement of assets, liabilities, and net assets - modified
cash basis of The Smoky Hill River Festival (a nonprofit organization) as of September 30,
2003, 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 accounting principles
generally accepted in the United States of America.
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,
2003, 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.
'Woodš ff£ CDurnam, Clitá.
October 23, 2003
WOODS & DURHAM, CHTD.
Certified Public Accountants
1
1619 E. Iron Avenue. P.O. Box 1516 . Salina, Kansas 67402-1516 . Phone 785.825-5494
Fax 785-825-4450 . www.woodsanddurhal11,col11
THE SMOKY HILL RIVER FESTIVAL
Salina, Kansas
STATEMENT OF ASSETS, LIABILITIES, AND NET ASSETS
MODIFIED CASH BASIS
September 30, 2003
ASSETS
Current Assets
Cash
Investments
TOTAL ASSETS
$ 41,912
142,095
184,007
12,774
$ 196,781
Total Current Assets
Equipment
LIABILITIES AND NET ASSETS
Current Liabilities
Deferred revenue
$
6,800
Net Assets
Unrestricted
189,981
TOTAL LIABILITIES AND NET ASSETS
$
196,781
See Independent Auditor's Report and Notes to Financial Statements.
2
THE SMOKY HILL RIVER FESTIVAL
Salina, Kansas
STATEMENT OF SUPPORT, REVENUE AND EXPENSES,
AND CHANGES IN NET ASSETS - MODIFIED CASH BASIS
September 30, 2003
SUPPORT AND REVENUE
Public Support
Private Charitable Contributions
Individual donations
Business donations
Sponsorships
Professional fund campaign
Total Public Support
$
26,797
5,119
73,475
13,400
Grants
State of Kansas
Revenue
Program Revenue
Admissions
Fees
Merchandise income
Investment income
Miscellaneous income
Total Revenue
158,511
104,576
9,846
3,047
3,846
TOTAL SUPPORT AND REVENUE
EXPENSES
Program Services
Special Projects
Arts programs
Marketing
Technical
Merchandise expense
Total Program Services
201,768
72,171
61,338
7,980
Supporting Services
General administration
Sales tax
Miscellaneous
Total Supporting Services
27,604
560
1,900
TOTAL EXPENSES
CHANGE IN NET ASSETS
NET ASSETS BEGINNING OF YEAR - October 1, 2002
NET ASSETS END OF YEAR - September 30, 2003
See Independent Auditor's Report and Notes to Financial Statements.
3
$
118,791
3,678
279,826
402,295
343,257
30,064
373,321
28,974
161,007
$ 189,981
THE SMOKY HILL RIVER FESTIVAL
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
September 30, 2003
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting - The organization maintains its books 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, 2003, 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 30,2003, the balance of investments of the Festival was $14:2,095. All but
one investment has been made in institutions insured by the FDIC, and all but one investment
balance during the year was fully insured. Of the $142,095 balance, $4,175 is money that is
not covered by insurance provided 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.
4
THE SMOKY HILL RIVER FESTIVAL
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
September 30, 2003
NOTE 3 - DEPOSITS AND INVESTMENTS (CONT'D.)
Investments (Cont'd.)
The following is a listing of investments as of September 30, 2003:
Basis Market
Certificate of Deposit - UMB $ 35,082 $ 35,082
Certificate of Deposit - Bank of Tescott 11 ,432 11 ,432
Certificate of Deposit - Capitol Federal 11,361 11,361
Certificate of Deposit - Capitol Federal 25,000 25,000
Certificate of Deposit - Bennington State Bank 25,000 25,000
Money Market Accounts - AG. Edwards 4,175 4,175
Money Market Accounts - First Bank 30,045 30,045
Total $ 142,095 $ 142,095
NOTE 4 - CONTINGENCIES
In the past, the State of Kansas required non-profit organizations to charge sales tax on
admission buttons to events and festivals such as the Smoky Hill River Festival. During
2003, it was noted that this law had changed and the Festival had historically paid sales tax
on button sales in error. The Festival has retained legal counsel in an attempt to recoup
these funds. Refund claims for three preceding years totaling $27,276.90 have been filed.
As of this date, no refunds have been received, however, it is anticipated that full
reimbursement will occur. This anticipated revenue has not been reflected in these financial
statements.
5