Audit - 2002
THE SMOKY HILL RIVER FESTIVAL
Salina,Kansas
AUDITED FINANCIAL STATEMENTS
September 30, 2002
WOODS & DURHAM
Certified Public Accountants
Salina, Kansas
THE SMOKY HILL RIVER FESTIVAL
Salina, Kansas
TABLE OF CONTENTS
IndependentAuditor'sReport ....................................
Statement of Assets, Liabilities, and Net Assets -
Cash Basis .................................................
Statement of Support, Revenue and Expenses,
and Changes in NetAssets-Cash Basis ........................
Notes to Financial Statements ...................................
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INDEPENDENT AUDITOR'S REPORT
The Smoky Hill River Festival
Salina, Kansas
We have audited the accompanying statement of assets, liabilities, and net assets - cash basis
of the Smoky Hill River Festival (a nonprofit organization) as of September 30, 2002, and the
related statement of support, revenue and expenses, and changes in net assets - 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 supportin!~ 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 13valuating the
overall financial statement presentation. We believe that our audit provides a realsonable basis
for our opinion.
As described in Note 1, these financial statements were prepared on the cash 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 the Smoky Hill River Festival as of September 30,
2002, 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.
WOÐdA. .. ~0In'l
October 24, 2002
WOODS & DURHAM
Certified Public .A.ccountants
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1619 E. Iron Avenue. P.O. Box 1516 . Salina, Kansas 67402-1516 . Phone 785-825-5494
Fax 785-825-4450 . www.woodsanddurham.com
THE SMOKY HILL RIVER FESTIVAL
Salina,Kansas
STATEMENT OF ASSETS, LIABILITIES, AND NET ASSETS
CASH BASIS
September 30, 2002
ASSETS
Current Assets
Cash
Investments
$ 94,455
59,671
154,126
6,881
$ 161,007
Total Current Assets
Equipment
TOTAL ASSETS
LIABILITIES AND NET ASSETS
Net Assets
Unrestricted
$
161,007
See Independent Auditor's Report and Notes to Financial Statements.
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THE SMOKY HILL RIVER FESTIVAL
Salina,Kansas
STATEMENT OF SUPPORT, REVENUE AND EXPENSES,
AND CHANGES IN NET ASSETS - CASH BASIS
September 30, 2002
SUPPORT AND REVENUE
Public Support
Private Charitable Contributions
Individual donations
Business donations
Sponsorships
Professional fund campaign
Total Public Support
Grants
State of Kansas
Revenue
Program Revenue
Admissions
Fees
Merchandise income
Investment income
Miscellaneous income
Total Revenue
TOTAL SUPPORT AND REVENUE
$ 21,108
5,518
73,725
15,326
$ 115,677
6,322
159,551
98,317
11 ,260
5,603
2,230
276,961
398,960
EXPENSES
Program Services
Special Projects
Arts programs
Marketing
Technical
Merchandise expense
Total Program Services
Supporting Services
General administration
Sales tax
Miscellaneous
Total Supporting Services
TOTAL EXPENSES
171,602
76,394
52,905
9,380
310,281
28,388
10,558
2,770
41,716
351,997
46,963
(15,000)
129,044
$ 161,007
CHANGE IN NET ASSETS
TRANSFERS TO OTHER PROGRAMS
Community Art and Design
NET ASSETS BEGINNING OF YEAR - October 1, 2001
NET ASSETS END OF YEAR - September 30,2002
See Independent Auditor's Report and Notes to Financial Statements.
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THE SMOKY HILL RIVER FESTIVAL
Salina,Kansas
NOTES TO FINANCIAL STATEMENTS
September 30, 2002
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting - The organization maintains its books on the cash basis of
accounting. Consequently, revenue is recorded as received and expenditures are recorded
as disbursed. Accordingly, the accompanying financial statements are not intended to
present financial position and changes in net assets in conformity with generally accepted
accounting principles.
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 Sallina Arts and
Humanities Foundation, is exempt from federal income tax under Section 50'1(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 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 organizêltion, 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, 2002, 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, 2002, the balance of investments of the Festival was $59,671. 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 $59,671 balance, $4,130 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.
The balance reflected is at cost basis, and market value equals cost for these investments.
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