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Audit - 2002 ALL PROGRAMS OF THE SALINA ARTS AND HUMANITIES COMMISSION Salina, Kansas COMPILED FINANCIAL STATEMENTS December 31,2002 WOODS & DURHAM Certified Public Accountants Salina,Kansas ~~fi~ .lJu.l.. public C H ART ERE 0 accountants To The Board of Directors Salina Arts and Humanities Commission Salina, Kansas We have compiled the accompanying statement of assets, liabilities and net assets - cash basis, of All Programs of the 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, 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 generally 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 of assurance on them. WoodA. 0\- ~0Jrr\. WOODS & DURHAM Certified Public .A.ccountants 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 ALL PROGRAMS OF THE SALINA ARTS AND HUMANITIES COMMISSION Salina,Kansas STATEMENT OF ASSETS, LIABILITIES, AND NET ASSETS CASH BASIS December 31, 2002 ASSETS Current Assets Unrestricted Cash Investments Total Unrestricted Restricted Investments Total Current Assets Other Asset Beneficial interest in Community Foundation Equipment TOTAL ASSETS LIABILITIES AND NET ASSETS Investment in Equipment Net Assets Restricted Unrestricted Total Net Assets TOTAL LIABILITIES AND NET .ASSETS See accompanying accountant's compilation report and notes to financial statements. $ 128,913 345,193 $ 474,106 5,637 479,743 8,038 10,856 $ 498,637 $ 10,856 46,520 441,261 487,781 $ 498,637 ALL PROGRAMS OF THE 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 Contracted revenue Contributions Total Public Support $ 267,869 53,267 128,583 Revenue Program revenue Investment return Miscellaneous Total Revenue 270,377 8,112 5,907 TOTAL PUBLIC SUPPORT AND REVENUE EXPENSES Program Services Arts programs Arts services Total Program Services 502,939 82,922 Supporting Services General administration Fund raising Total Supporting Services 81,543 44,842 TOTAL EXPENSES TOTAL PUBLIC SUPPORT AND REVENUE OVER EXPENSES Unrealized Loss - Restricted Asset Total Decrease in Net Assets NET ASSETS - January 1, 2002 NET ASSETS - December 31,2002 See accompanying accountant's compilation report and notes to financial statements. $ 449,719 284,396 734,115 585,861 126,385 712,246 21,869 (1,278) 20,591 467,190 $ 487,781 ALL PROGRAMS OF THE SALINA ARTS AND HUMANITIES COMMISSION Salina,Kansas NOTES TO FINANCIAL STATEMENTS December 31,2002 This report combines all of the activities of the Salina Arts and Humanities Commission, which are a part of the Arts and Humanities Department of the City of Salina and financially housed in the Salina Arts and Humanities Foundation, as of and for the year ended December 31, 2002, including the work of the Salina Arts and Humanities Commission and it's programs - Horizons Program, Smoky Hill River Festival, Community Cultural Development, and Community Art & Design. The combined financial entity, the Foundation, 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 expenses 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. 8. Property and Equipment The amount recorded as property and equipment represents equipment purchased. Such assets are recorded at cost. Depreciation has not been provided on these assets. 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. ALL PROGRAMS OF THE SALINA ARTS AND HUMANITIES COMMISSION Salina,Kansas NOTES TO FINANCIAL STATEMENTS December 31,2002 NOTE 1 - SUMMARY OF ACCOUNTING POLICIES (Cont'd.) 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. G. Assets Transferred to a Recipient Orqanization 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. 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 fiscal year. NOTE 3 - INVESTMENTS Investments are stated at fair value and consist of: Money Market Certificates of Deposit Mutual Funds Total $ Cost 13,823 236,455 116,425 366,703 Fair Market Value $ 13,823 236,4~i5 1 00,5~¡2 $ 350,830 $ Investment return is summarized as follows: Interest and Dividend Income Unrealized Loss on Investments Investment Return $ 17,7B6 (9.6i~ 8,112 $ NOTE 4 - CONCENTRATION OF CREDIT RISK Financial instruments which potentially subject the Commission to concentrations of credit risk include cash deposits with commercial banks and a brokerage firm. Cash on deposit with financial institutions exceeded the insured limits by $43,402. The Commission's investments at the brokerage firm are not collateralized.