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Audit - 1985 THE SMOKY HILL RIVER FESTIVAL Salina, Kansas REPORT ON EXAMINATION September 30, 1985 WCODS & DURHAM Certified Public Accountants Salina, Kansas WOODS & DURHAM CERTIAED PUBLIC ACCOUNTANTS SALINA, KANSAS 605 W. NORTH STREET P.O. BOX 1516 SALINA, KANSAS 67402-1516 AREA 913 825-5494 Smoky Hill River Festival Salina, Kansas We have examined the statement of assets, liabilities, and fund balances arising from cash transactions of the Smoky Hill River Festival as of September 30, 1985, and the related statements of receipts, disbursements and changes in fund balance for the year then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. As described in Note 1, the cormnission' s policy is to prepare its financial statements on the basis of cash receipts and disbursements; consequently, certain revenue and the related assets are recognized when received rather than when earned, and certain expenses are recognized when paid rather than when the obligation is incurred. Accordingly, the accompanying financial statements are not intended to present financial position and results of operations in conformity with generally accepted accounting principles. In our opinion, the financial statements referred to above present fairly the assets and liabilities arising from cash transactions of the Smoky Hill River Festival as of September 30, 1985, and the revenues collected and disbursements made during the year then ended, on the basis of accounting described in Note 1, which has been applied in a manner consistent with that of the preceding year. ~ ,;/ ÅlwJ,7~ I , October 15, 1985 WOODS & DURHAM THE SMOKY HILL RIVER FESTIVAL Salina, Kansas STATEMENT OF ASSETS, LIABILITIES, AND FUND BALANCES September 30, 1985 ASSETS Cash Investments Restricted assets Cash Investments Equipment $ 23,333 107,073 (Note 2) 14,645 5,492 1,587 $152,130 LIABILITIES AND FUND BALANCE Fund Balance (Note 2) Unrestricted Restricted - Festival Currents Program $131,993 20,137 $152,130 See Notes to Financial Statements. THE SMOKY HILL RIVER FESTIVAL Salina, Kansas STATEMENT OF RECEIPTS, DISBURSEMENTS, AND CHANGES IN UNRESTRICTED FUND BALANCE September 30, 1985 OPERATING RECEIPTS General Government Grants and Contracts Saline County Private Charitable Contributions Individual donations Business donations Sponsorships Art Auction Miscellaneous Earned Revenue Admissions Fees Shirt sales $10,814 6,300 6,535 18,190 5,384 436 82,200 21,817 7,330 TOTAL OPERATING RECEIPTS $159,006 $ 6,344 79,455 27,839 23,390 4,994 3,288 1,795 1,960 10,000 159,065 (59) 10,143 10,084 121,909 $131,993 OPERATING DISBURSEMENTS General Administration Special Projects Arts programs Marketing and promotion Technical Shirt Expenses Sales Tax Art Auction Expenses Miscellaneous Festival Currents Program TOTAL OPERATING DISBURSEMENTS OPERATING INCOME (LOSS) Interest Income TOTAL INCOME UNRESTRICTED FUND BALANCE - October 1, 1984 UNRESTRICTED FUND BALANCE - September 30, 1985 See Notes to Financial Statements. THE SMOKY HILL RIVER FESTIVAL Salina, Kansas FESTIVAL CURRENTS PROGRAM STATEMENT OF RECEIPTS, DISBURSEMENTS, AND CHANGES IN RESTRICTED FUND BALANCE September 30, 1985 RECEIPTS Smoky Hill River Festival Interest income DISBURSEMENTS Salina Symphony Salina Arts Center Salina Community Theatre Kansas Wesleyan Miscellaneous RECEIPTS OVER (UNDER) DISBURSEMENTS RESTRICTED FUND BALANCE - October 1, 1984 RESTRICTED FUND BALANCE - September 30,1985 See Notes to Financial Statements. $10,000 1,060 $ 497 1,500 1,247 601 49 $11,060 3,894 7,166 12,971 $20,137 THE SMOKY HILL RIVER FESTIVAL Salina, Kansas NOTES TO FINANCIAL STATEMENTS September 30, 1985 NOTE 1 - SUMMARY OF ACCOUNTING POLICIES A. Basis of Presentation - The accompanying financial statements are presented on the cash basis, where revenue is recorded as received and expenditures are recorded as disbursed. B. The Smoky Hill River Festival is a program of the Salina Arts and Humanities Commission. Separate accounting records are maintained by the two entities, and separate audi t reports have been issued. C. Property, Plant and Equipment The amount recorded as equipment represents equipment purchased by the Smoky Hill Ri ver Festival. Depreciation has not been provided on this equipment. D. Investments are stated at cost. E. The Smoky Hill River Festival, as a program of the Salina Arts and Humanities Commission, is exempt from federal income tax under Section 501 of the Internal Revenue Code. NOTE 2 - FESTIVAL CURRENTS PROGRAM The Festival Currents Program is funded through a $10,000 budgeted transfer from the Smoky Hill River Festival. The Festi val Currents Program was created to supplement and expand various arts programs in the Salina area. Disbursement of these funds is restricted for those purposes. The Currents Program will end as of July, 1986. The remaining funds will be transferred into the "Horizons Program". Horizons is a special projects grant program of the Salina Arts and Humanities Commission that provides support to the cultural life of this community.