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Audit Community Art 2005 SALINA ARTS AND HUMANITIES COMMISSION COMMUNITY ART & DESIGN PROGRAM Salina,Kansas COMPILED FINANCIAL STATEMENTS December 31,2005 WOODS & DURHAM, CHARTERED Certified Public Accountants Salina, Kansas ~ ~fWd .LJLU. public C H ART ERE 0 accountants Salina Arts and Humanities Commission Community Art & Design Program Salina, Kansas We have compiled the accompanying statement of assets, liabilities and net assets - cash basis, of the Salina Arts and Humanities Commission - Community Art & Design Program (a nonprofit organization), as of December 31, 2005, and the related statement of 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. Woods ~ øumam, Clitá. January 19, 2006 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 Current Assets Cash Investments SALINA ARTS AND HUMANITIES COMMISSION COMMUNITY ART & DESIGN PROGRAM Salina,Kansas STATEMENT OF ASSETS, LIABILITIES, AND NET ASSETS CASH BASIS December 31, 2005 ASSETS $ 2,014 18,657 TOTAL ASSETS Net Assets Unrestricted $ 20,671 LIABILITIES AND NET ASSETS $ 20,671 The accompanying notes are an integral part of these financial statements. . , . . SALINA ARTS AND HUMANITIES COMMISSION COMMUNITY ART & DESIGN PROGRAM Salina,Kansas STATEMENT OF REVENUE AND EXPENSES CASH BASIS Year Ended December 31, 2005 PUBLIC SUPPORT AND REVENUE Other Contracted Revenue Private Revenue Investment return (Note 2) Total Support and Revenue EXPENSES Program services Special Projects Community Projects DEFICIENCY OF REVENUE OVER EXPENSES Transfers Transfer from Community Cultural Development Transfer to Smoky Hill River Festival Net Transfers 12,556 (2,500) NET ASSETS - January 1, 2005 NET ASSETS - December 31,2005 The accompanying notes are an integral part of these financial statements. $ 200 655 855 10,512 (9,657) 10,056 20,272 $ 20,671 . . . . SALINA ARTS AND HUMANITIES COMMISSION COMMUNITY ART & DESIGN PROGRAM Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 2005 The Community Art & Design Program was created in 2001 by the Salina Arts and Humanities Commission as a program to promote and support the integration of art in public spaces within the community. Initial funding came through various programs within the Commission. The Community Art & Design Program is a project of the Salina Arts and Humanities Commission. As such, it is exempt from federal income tax under Section 501 of the Internal Revenue Code, and is not considered a private foundation. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Basis of Presentation The accompanying financial statements are presented on the cash basis; revenue is recorded as received and expenditures are recorded as disbursed. B. 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 revenue and expenses as increases or decreases in net assets. consequently, C. Management considers all highly liquid investments available for current use with an initial maturity of three months or less to be cash equivalents. D. 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. 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. G. Management uses estimates and assumptions in preparing financial statements Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenue and expenses. Actual results could differ from these estimates. . . . . SALINA ARTS AND HUMANITIES COMMISSION COMMUNITY ART & DESIGN PROGRAM Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 2005 NOTE 2 - INVESTMENTS Investments are stated at fair value and consist of: Cost $ 18,594 Market $ 18,657 Mutual Fund Investment return is summarized as follows: Interest and Dividend Income Long-Term Capital Gain Net Unrealized Loss on Investment $ 431 365 (141) Total Investment Return $ 655 NOTE 3 - CONCENTRATION OF CREDIT RISK Financial instruments that 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.