Audit - 2002
SALINA ARTS AND HUMANITIES COMMISSION
Salina, Kansas
AUDITED FINANCIAL STATEMENTS
December 31, 2002
WOODS & DURHAM
Certified Public Accountants
Salina, Kansas
~ ~ifiOO
LJLU. public
C H ART ERE D accountants
INDEPENDENT AUDITOR'S REPORT
Commissioners
Salina Arts and Humanities Commission
Salina, Kansas
We have audited the accompanying statement of assets, liabilities, and net assets - cash
basis, of Salina Arts and Humanities Commission (a nonprofit organization), as of December
31, 2002, and the related statement of support, revenue, and expenses - 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 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 Gash basis of
accounting, which is a comprehensive basis of accounting other than generally accepted
accounting principles.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the assets, liabilities, and net assets of Salina Arts and Humanities Commission as of
December 31, 2002, and its support, revenue, and expenses for the year then ended, on the
basis of accounting described in Note 1.
WoodA. "- ~0Irrl
WOODS & DURHAM
Certified Public Accountants
January 23, 2003
1619 E. Iron Avenue. P.O. Box 1516 . Salina, Kansas 67402-1516 . Phone 785-825-5494
Fax 785-825-4450 . www.woodsanddurham.com
SALINA ARTS AND HUMANITIES COMMISSION
Salina,Kansas
STATEMENT OF ASSETS, LIABILITIES, AND NET ASSETS
CASH BASIS
December 31, 2002
ASSETS
Current Assets
Cash
Investments
Total Assets
LIABILITIES AND NET ASSETS
Net Assets
Unrestricted
Restricted
Total Liabilities and Net Assets
See Notes to Financial Statements.
$
33,998
31,115
$
65,113
$
32,268
32,845
$
65,113
SALINA ARTS AND HUMANITIES COMMISSION
Salina, Kansas
STATEMENT OF SUPPORT, REVENUE, AND EXPENSES
CASH BASIS
Year Ended December 31,2002
PUBLIC SUPPORT AND REVENUE
Public Support
Government Grants
City of Salina
Kansas Arts Commission
Other Contracted Revenue
Public
Private
Contributions
Total Public Support
Revenue
Program Revenue
Ticket and book sales
Investment Return
Transfer from CCD
Transfer from SHRF
Miscellaneous
Total Revenue
$ 246,729
17.462
18,700
27,796
100
949
1,668
9,330
6,000
4,271
TOTAL PUBLIC SUPPORT AND REVENUE
EXPENSES
Program Services
Special Projects
Arts programs
Arts services
Total Program Services
Supporting Services
General administration
Transfer to Horizons Program -
from City of Salina support
Fund raising
Total Supporting Services
134,190
63,565
47,850
40,000
31,109
TOTAL EXPENSES
TOTAL PUBLIC SUPPORT AND REVENUE OVER EXPENSES
NET ASSETS - January 1, 2002
NET ASSETS - December 31, 2002
See Notes to Financial Statements.
$ 310,787
22,218
333,005
197,755
118,959
316,714
16,291
48,822
$ 65,113
SALINA ARTS AND HUMANITIES COMMISSION
Salina,Kansas
NOTES TO FINANCIAL STATEMENTS
December 31,2002
The Salina Arts and Humanities Commission was organized to promote the cultural arts in the Salina
Area. Commission programs happen as part of the Arts and Humanities Department of the City of
Salina and its financial activities are housed in the Salina Arts and Humanities Foundation. As such, it
is exempt from federal income taxes under Section 501 of the Internal Revenue Code, and is not
classified as a private foundation.
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Basis of Presentation - The accompanying financial statements are prepared on the cash basis;
consequently, revenue is recorded when received and expenditures are recognized when
disbursed. However, programs of the Commission do not necessarily happen within one calendar
year. Therefore, revenue received during a fiscal year is often not expended until the next fiscal
year.
B. A separate audit report has been issued for the Smoky Hill River Festival as of September 30,
2002, and for the Horizons Program as of December 31, 2002. Both are programs of the Salina
Arts and Humanities Commission.
C. The Commission considers all highly liquid investments available for current use with an initial
maturity of three months or less to be cash equivalents.
D. 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.
E. Employee salaries and fringe benefits are paid by the City of Salina under a third party
reimbursement program; therefore, they are covered by Kansas Public Employees Retirement
System through the City. Accordingly, no disclosures pertaining to the City's retirement plan is
included in these financial statements. Salaries have been allocated to the Arts Programs and Arts
Services based upon an estimate by management of the time spent by the employees of the
particular activities.
F. No amounts have been reported in the financial statements for donated services because no
objective basis is available to measure the value of such services.
SALINA ARTS AND HUMANITIES COMMISSION
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
NOTE 2 - RESTRICTED NET ASSETS
The restricted net assets are comprised of programs receiving funding and commitments
during 2002 that will not be paid for until the 2003 calendar year.
NOTE 3 - INVESTMENTS
Investments are stated at fair value and consist of:
Certificates of Deposit
Cost
$ 31,115
Market
$ 31,115
Investment return is summarized as follows:
Interest Income
$
1,668