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Audit - 1989 Horizons Program SALINA ARTS AND HUMANITIES COMMISSION HORIZONS PROGRAM Salina, Kansas REPORT ON EXAMINATION December 31, 1989 WOODS & DURHAM Certified Public Accountants Salina, Kansas WOODS & DURHAM CERTIFIED PUBLIC ACCOUNTANTS SALINA, KANSAS 1619 EAST IRON AVE. P.O. BOX 1516 SALINA, KANSAS 67402.1516 AREA 913 825.5494 INDEPENDENT AUDITOR'S REPORT Salina Arts and Humanities Commission Horizons Program Salina, Kansas We have audited the accompanying statement of assets, liabil- ities, and fund balance - cash basis, of the Horizons Program of the Salina Arts and Humanities Commission, as of December 31, 1989, and the related statements of support, revenue, and expenses, and changes in fund balance - cash basis, for the year then ended. These financial statements are the responsibility of the Commission's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. 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, the Commission's policy is to prepare its financial statements on the basis of cash receipts and disburse- ments; consequently, certain revenue and the related assets are recognized when received rather than when earned, and certain ex- penses are recognized when paid rather than when the obligation is incurred. This basis is a comprehensive basis of accounting other than generally accepted accounting principles. In our opinion, the financial statements referred to above pre- sent fairly, in all material respects, the assets, liabilities, and fund balances of the Horizons Program of the Salina Arts and Humanities Commission as of December 31, 1989, and its support, revenue, and expenses, and the changes in fund balances for the year then ended, on the basis of accounting described in Note 1. January 17, 1990 WO&Ü-~ ~~ WOODS & DURHAM Certified Public Accountants SALINA ARTS AND HUMANITIES COMMISSION HORIZONS PROGRAM Salina, Kansas STATEMENT OF ASSETS, LIABILITIES, AND FUND BALANCE December 31, 1989 ASSETS Current Assets Cash - Checking account Savings Investments - Certificate of deposit LIABILITIES AND FUND BALANCE Reserved fund balance - Note 2 Unreserved fund balance See Notes to Financial Statements. $ 18,866 5,838 104,563 $~~~.!.~§'2 ------- $ 16,890 112,377 $~~~.!.~~2 ------- SALINA ARTS AND HUMANITIES COMMISSION HORIZONS PROGRAM Salina, Kansas STATEMENT OF SUPPORT, REVENUE, AND EXPENSES, AND CHANGES IN FUND BALANCE - CASH BASIS For The Year Ended December 31, 1989 PUBLIC SUPPORT AND REVENUE Public Support City of Salina USD 305 Private Charitable Contributions $12,500 750 43,100 Total Public Support Revenue Program Revenue Investment income Miscellaneous 2,680 7,888 77 Total Revenue Total Public Support and Revenue EXPENSES Program Services Evaluator Horizons Grants - Horizons Grants - Horizons 50 Jazz Series 1988 1989 2,531 10,764 14,859 987 4,717 Total Program Services supporting Services General administration Miscellaneous 6,705 225 Total Supporting Services Total Expenses Total Public Support and Revenue Over (Under) Expenses FUND BALANCE January 1, 1989 FUND BALANCE - December 31, 1989 See Notes to Financial Statements. $ 56,350 10,645 66,995 33,858 6,930 40,788 26,207 103,060 $~~~£:~~Z SALINA ARTS AND HUMANITIES COMMISSION HORIZONS PROGRAM Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1989 The Horizons Program was created by the Salina Arts and Humanities Commission in 1986 as a continuing grant program to provide support to the cultural life of the community. Initial funding was provided by the Artist in Residence Program, which was terminated December 31, 1985. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Basis of Presentation - The accompanying financial state- ments are presented on the cash basis; consequently, revenue is recorded as received and expenditures are recorded as disbursed. B. The Horizons Program is a project of the Salina Arts and Humanities Commission. Separate accounting records are maintained, and separate audit reports have been issued for both entities. C. Investments are stated at cost. D. The Horizons Program, as a project of the Salina Arts and Humanities Commission, is exempt from federal income tax under Section 501 of the Internal Revenue Code. E. No amounts have been reported in the financial statements for donated services because no objective basis is avail- able to measure the value of such services. NOTE 2 - RESERVED FUND BALANCE The reserved fund balance of the Horizons Program consists of unpaid balances of 1989 grants.