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Audit Cultural Develop 2003 SALINA ARTS AND HUMANITIES COMMISSION COMMUNITY CULTURAL DEVELOPMENT PROGRAM Salina, Kansas COMPILED FINANCIAL STATEMENTS December 31,2003 WOODS & DURHAM Certified Public Accountants Salina, Kansas ~~ifid .LJLU. l)uhlic 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, 2003, and the related statement of revenue and expenses - cash basis, for the year then ended, in accordance with Statements on Standards 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 genBrally 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 0¡F assurance on them. Woods e:t ([)urñam, Cftt!. WOODS & DUHHAM Certified Public Accountants January 22, 2004 1619 E. Iron Avenue. P.O. Box 1516 . Salina, Kansas 67402-1516 . Phone 785-825-5494 Fax 785-825-4450 . wwvv.woodsanddurham.com Current Assets Investments SALINA ARTS AND HUMANITIES COMMISSION COMMUNITY CULTURAL DEVELOPMENT PROGRAM Salina, Kansas STATEMENT OF ASSETS, LIABILITIES, AND NET ASSETS CASH BASIS December 31,2003 ASSETS Other Asset Beneficial Interest in Community Foundation (see Note 1) TOTAL ASSETS Net Assets Restricted Unrestricted LIABILITIES AND NET ASSETS TOTAL NET ASSETS See accompanying accountant's compilation report and notes to financial statements. 5) 5) 5) 118,959 9,982 $ 128,941 9,982 118,959 128,941 SALINA ARTS AND HUMANITIES COMMISSION COMMUNITY CULTURAL DEVELOPMENT PROGRAM Salina, Kansas STATEMENT OF REVENUE AND EXPENSES CASH BASIS Year Ended December 31,2003 REVENUE Investment return EXPENSE Program Support Transfer to Salina Arts & Humanities Commission General Administration Total Expenses DEFICIENCY OF REVENUE OVER EXPENSES Unrealized Gain - Restricted Asset Total Decrease in Net Assets NET ASSETS - January 1, 2003 NET ASSETS - December 31, 2003 See accompanying accountant's compilation report and notes to financial statements. $ 10,175 19,400 5 19,405 (9,230) 1,944 (7,286) 136,227 $ 128,941 SALINA ARTS AND HUMANITIES COMMISSION COMMUNITY CULTURAL DEVELOPMENT PROGRAM Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31,2003 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 incomH tax under Section 501 of the Internal Revenue Code, and is not considered a private foundation. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Basis of Presentation The accompanying financial statements are presented on the cash basis; consequently, revenue is recorded as received and expenditures are recorded as disbursed. B. Investments The Organization has adopted SFAS No. 124, "Accounting for Certain Investments Held by Not-for. Profit Organizations." Under SFAS No. 124, 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 financial position. Unrealized gains and losses are included in the change in net assets. Investment income and gains restricted by a donor are reported as increases in unrestricted net assets if the restrictions are met (either by passage of time or by use) in the reporting period in which the income and gains are recognized. C. Management considers all highly liquid investments available for current use with an initial maturity of three months or less to be cash equivalents. D. Assets Transferred to a Recioient 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 $10,000 as an Other Asset in the accompanying Statement of Assets, Liabilities and Net Assets, including an adjustment to market value as a decrease to this asset. SALINA ARTS AND HUMANITIES COMMISSION COMMUNITY CULTURAL DEVELOPMENT PROGRAM Salina, Kansas NOTE 2 - INVESTMENTS NOTES TO FINANCIAL STATEMENTS December 31,2003 Investments are stated at fair value and consist of: Cost Market Money Market $ 65 $ 65 Certificates of Deposit 72,574 72,574 Mutual Fund 45,199 46,320 Total $ 117,838 $ 118,959 = Investment return is summarized as follows: Interest Income Dividends reinvested Net unrealized gain Realized loss on sale Investment Return $ 2,071 1,135 8,880 (1,911) $ 10,175