Audit - 2006
THE SMOKY HILL RIVER FESTIVAL
Salina, Kansas
AUDITED FINANCIAL STATEMENTS
September 30, 2006
WOODS & DURHAM, CHARTERED
Certified Public Accountants
Salina, Kansas
,
THE SMOKY HILL RIVER FESTIVAL
Salina, Kansas
TABLE OF CONTENTS
Page
Number
Independent Auditor's Report .......................................... 1
Statement of Assets, Liabilities, and Net Assets _
Modified Cash Basis .........................
2
Statement of Support, Revenue and Expenses,
and Changes in Net Assets - Modified Cash Basis
3
. . . . . . . . . . . . . . . . . . . . . . . .
Notes to Financial Statements
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4-5
,
certified
[JUblic
C H ART ERE 0 accountants
INDEPENDENT AUDITOR'S REPORT
The Smoky Hill River Festival
Salina, Kansas
We have audited the accompanying statement of assets, liabilities, and net assets _ modified
cash basis of The Smoky Hill River Festival (a nonprofit organization) as of September 30,
2006, and the related statement of support, revenue and expenses, and changes in net assets
- modified 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 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 modified 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,
2006, 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.
October 24, 2006
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WOODS & DURHAM, CHTD.
Certified Public Accountants
1619 E. Iron Avenue · P.O. Box 1516 · Salina, Kansas 67402-1516 . Phone 785-825-5494
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THE SMOKY HILL RIVER FESTIVAL
Salina, Kansas
STATEMENT OF ASSETS, LIABILITIES, AND NET ASSETS
MODIFIED CASH BASIS
September 30, 2006
ASSETS
Current Assets
Cash $ 19,235
Investments 129,258
Total Current Assets 148,493
Equipment 12,774
TOTAL ASSETS $ 161,267
LIABILITIES AND NET ASSETS
Net Assets
Unrestricted
$
161,267
TOTAL LIABILITIES AND NET ASSETS
$
161,267
See Independent Auditor's Report and Notes to Financial Statements.
2
THE SMOKY HILL RIVER FESTIVAL
Salina, Kansas
STATEMENT OF SUPPORT, REVENUE AND EXPENSES,
AND CHANGES IN NET ASSETS - MODIFIED CASH BASIS
September 30, 2006
SUPPORT AND REVENUE
Public Support
Private Charitable Contributions
Individual donations
Business donations
Sponsorships
Professional fund campaign
Foundation support
Total Public Support
$ 26,186
3,707
74,245
13,850
4,500
Revenue
Program Revenue
Admissions
Fees
Merchandise income
Investment income
Miscellaneous income
Total Revenue
154,027
99,531
9,650
4,311
4,811
TOTAL SUPPORT AND REVENUE
EXPENSES
Program Services
Special Projects
Arts programs
Marketing
Technical
Merchandise expense
30th Anniversary
Total Program Services
211,360
79,326
63,100
9,586
24,078
Supporting Services
General administration
Sales tax
Miscellaneous
Total Supporting Services
28,453
545
5,207
TOTAL EXPENSES
DECREASE IN UNRESTRICTED NET ASSETS
TRANSFERS FROM OTHER PROGRAMS
Community Art and Design
NET ASSETS BEGINNING OF YEAR - October 1, 2005
NET ASSETS END OF YEAR - September 30, 2006
See Independent Auditor's Report and Notes to Financial Statements.
3
$ 122,488
272,330
394,818
387,450
34,205
421,655
(26,837)
1,154
186,950
$ 161,267
THE SMOKY HILL RIVER FESTIVAL
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
September 30, 2006
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting - The organization prepares its financial statements on the modified
cash basis of accounting, which is a comprehensive basis of accounting other than generally
accepted accounting principles. Consequently, revenue is generally recorded as received
and expenditures are recorded as disbursed. Transactions considered as modifications could
include the recording of non-cash expenses such as depreciation, and amounts reflecting
certain timing issues related to payments made to the Festival for periods after the period
under audit.
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 Salina Arts and
Humanities Foundation, is exempt from federal income tax under Section 501 (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 market value
equals carrying amounts.
Revenue Recognition - The Foundation has adopted SFAS No. 116, "Accounting for
Contributions Received and Contributions Made." In accordance with SFAS No. 116,
contributions received are recorded as unrestricted, temporarily restricted, or permanently
restricted support depending on the existence or nature of any donor restrictions. They are
then reclassified to unrestricted net assets upon expiration of time restrictions or upon
meeting program requirements. As of September 30, 2006, there were no donor-imposed
restrictions on contributions received.
Basis of Presentation - 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-far-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.
Estimates - The preparation of financial statements requires management to make
estimates and assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from those estimates.
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THE SMOKY HILL RIVER FESTIVAL
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
September 30, 2006
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 organization, 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, 2006, 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, 2006, the balance of investments of the Festival was $148,433. 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 $148,433 balance, $30,468 is
not covered by insurance provided by the federal government, but are insured with SIPe.
The following is a listing of investments as of September 30, 2006:
Certificate of Deposit - UMB
Certificate of Deposit - Capitol Federal
Certificate of Deposit - Capitol Federal
Money Market Account - A.G. Edwards
Money Market Account - First Bank
Certificate of Deposit - Security Savings
Basis
$ 37,493
12,256
27,055
30,468
1,018
20,968
Market
$ 37,493
12,256
27,055
30,468
1,018
20,968
Total
$ 129,258
$ 129,258
NOTE 4 - OPERATING LEASE
The Foundation entered into a three-year operating lease for office equipment in December
2003. This lease allows the Foundation to renew monthly after the three-year term is met.
Payments for the equipment are made from various programs of the Foundation. Under this
agreement, rent expense for 2006 was $808.
The Commission is in the process of negotiating a new three-year lease.
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