Audit - 2005
All PROGRAMS OF THE
SALINA ARTS AND HUMANITIES COMMISSION
Salina, Kansas
COMPilED FINANCIAL STATEMENTS
December 31, 2005
WOODS & DURHAM, CHARTERED
Certified Public Accountants
Salina, Kansas
, \Y1xY-k&
TJürnañì certified
.LJLU. 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, 2005, 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.
January 19, 2006
WoodS fft (j)umam, Cftt!.
WOODS & DURHAM, CHTD.
Certified Public Accountants
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 31,2005
ASSETS
Current Assets
Cash
Investments
$
25,256
372,115
Total Current Assets
397,371
Other Asset
Beneficial interest in Community Foundation (Note 2)
11,777
Equipment
16,749
TOTAL ASSETS
$
425,897
LIABILITIES AND NET ASSETS
Investment in Equipment
$
16,749
Net Assets
Restricted
Unrestricted
17,507
391,641
Total Net Assets
409,148
TOTAL LIABILITIES AND NET ASSETS
$
425,897
The accompanying notes are an integral part
of these financial statements.
All PROGRAMS OF THE
SALINA ARTS AND HUMANITIES COMMISSION
Salina,Kansas
STATEMENT OF SUPPORT, REVENUE AND EXPENSES
CASH BASIS
Year Ended December 31,2005
PUBLIC SUPPORT AND REVENUE
Public Support
Government grants -
Contracted revenue
Contributions
Total Public Support
$ 316,031
27,164
154,542
Revenue
Program revenue
Investment return (Note 3)
Miscellaneous
Total Revenue
244,595
11,816
3,790
TOTAL PUBLIC SUPPORT AND REVENUE
EXPENSES
Program Services
Arts programs
Arts services
Total Program Services
620,665
83,081
Supporting Services
General administration
Fund raising
Total Supporting Services
97,623
41,458
TOTAL EXPENSES
DEFICIENCY OF SUPPORT AND REVENUE OVER EXPENSES
NET ASSETS - January 1, 2005
NET ASSETS - December 31,2005
The accompanying notes are an integral part
of these financial statements.
$ 497,737
260,201
757,938
703,746
139,081
842,827
(84,889)
494,037
$ 409,148
All PROGRAMS OF THE
SALINA ARTS AND HUMANITIES COMMISSION
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31,2005
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, 2005, 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.
B. Propertv 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." 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 assets,
liabilities and net assets. Unrealized gains and losses are reported in the statement of revenues
and expenses as increases or decreases in net assets.
E. Financial statement presentation follows the recommendations of the Financial Accounting
Standards Board in its Statement of Financial Accounting Standards (SFAS) No. 117, Financial
Statements of Not-for-Profit Organizations. Under SFAS No. 117, the Organization is required to
report information regarding its financial position and activities according to three classes of net
assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net
assets.
F. 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, 2005
NOTE 1 - SUMMARY OF ACCOUNTING POLICIES (Cont'd.)
G. 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.
H. Assets Transferred to a Recipient Organization
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 the fair
market value of the fund at December 31, 2005, of $11,777, as an other asset in the
accompanying Statement of Assets, Liabilities, and Net Assets.
I. Management uses estimates and assumptions in preparing financial statements. Those
estimates and assumptions affect the reported amount of assets and liabilities, the disclosure
of contingent assets and liabilities, and the reported revenues and expenses. Actual results
could differ from those estimates.
NOTE 2 - RESTRICTED NET ASSETS
The restricted net assets are comprised of programs receiving funding and commitments during
2005 that will not be paid for until the 2006 fiscal year.
NOTE 3 - INVESTMENTS
Investments are stated at fair value and consist of:
Money Market
Certificates of Deposit
Mutual Funds
Total
$
~
20,109
253,749
94,856
368,714
Fair
Market Value
$ 20,109
253,749
98,257
$ 372,115
$
Investment return is summarized as follows:
Interest and Dividend Income
Long-Term Capital Gains
Realized Gain on Investments
Net Unrealized Loss on Investments
Total Investment Return
$
11,244
3,221
287
(2,936)
11,816
$
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. There were no deposits at
risk as of December 31, 2005. The Commission's investments at the brokerage firm are not
collateralized. It is the opinion of management that the solvency of the referenced financial
institution is not of concern at this time.
. .. .
All PROGRAMS OF THE
SALINA ARTS AND HUMANITIES COMMISSION
Salina, Kansas.
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
NOTE 5 - OPERATING lEASE
The Commission entered into a three-year operating lease for office equipment in December
2003, requiring monthly payments of $378. The lease amount per month changed to $391 as of
the December 2004 payment. This lease allows the Commission to renew monthly after the three.
year term is met. Payments were made from the following Programs:
Program
No. of Monthly Total
Payments Payment Amount
2 $391 $ 782
2 $391 782
2 $391 782
$ 2,346
Salina Arts and Humanities Commission
Horizons
Smoky Hill River Festival
Under this agreement, rent expense for 2005 was $2,346. The City of Salina reimbursed the
above Programs for six of the scheduled payments. Future payments will be made as follows for
all Programs, including reimbursements from the City:
Year
2006
Total
Amount
$ 2,346