Audit - 2006
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
SALINA ARTS AND HUMANITIES COMMISSION
Salina, Kansas
AUDITED FINANCIAL STATEMENTS
December 31, 2006
WOODS & DURHAM, CHARTERED
Certified Public Accountants
Salina,Kansas
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
certified
public
C H ART ERE 0 accountants
INDEPENDENT AUDITOR'S REPORT
Commissioners
Salina Arts and Humanities Commission
Salina, Kansas
We have audited the accompanying statement of assets, liabilities, and net assets - cash
basis, of Salina Arts and Humanities Commission (a nonprofit organization), as of December
31, 2006, and the related statement of support, revenue, and expenses - cash basis for the
year then ended. These financial statements are the responsibility of the Commission's
management. 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 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 Salina Arts and Humanities Commission as of
December 31, 2005, and its support, revenue, and expenses for the year then ended, on the
basis of accounting described in Note 1.
WoodS eZ (])urfiam, CfitL
January 18, 2007
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.woodsanddurha~:c~m
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
SALINA ARTS AND HUMANITIES COMMISSION
Salina, Kansas
STATEMENT OF ASSETS, LIABILITIES, AND NET ASSETS
CASH BASIS
December 31, 2006
ASSETS
Current Assets
C~h $
Investments
Total Assets $
LIABILITIES AND NET ASSETS
Net Assets
Unrestricted $
Temporarily Restricted
Total Liabilities and Net Assets $
The accompanying notes are an integral part
of these financial statements.
4,860
12,000
16,860
3,003
13,857
16,860
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
SALINA ARTS AND HUMANITIES COMMISSION
Salina,Kansas
STATEMENT OF SUPPORT, REVENUE, AND EXPENSES
CASH BASIS
Year Ended December 31,2006
PUBLIC SUPPORT AND REVENUE
Public Support
Government Grants
City of Salina
Kansas Arts Commission
Mid America Arts Alliance
Other Contracted Revenue
Public
Private
Total Public Support
Revenue
Program Revenue
Ticket and book sales
Investment Return (Note 3)
Total Revenue
$ 330,400
18,614
2,600
18,950
17,296
$ 387,860
2,214
958
3,172
391,032
TOTAL PUBLIC SUPPORT AND REVENUE
EXPENSES
Program Services
Special Projects
Arts programs
Arts services
Total Program Services
Supporting Services
General administration
Fund raising
Total Supporting Services
165,727
76,015
241,742
70,173
39,466
109,639
TOTAL EXPENSES
351,381
INCREASE OF REVENUE OVER EXPENSES
39,651
Transfers
Transfer to Horizons Program -
from City of Salina support
Transfer from Community Cultural Development
Transfer to City of Salina
Transfer from Smoky Hill River Festival
Net Transfers
(40,000)
12,000
(43,400)
30,000
(41,400)
NET ASSETS - January 1, 2006
18,609
$ 16,860
NET ASSETS - December 31, 2006
The accompanying notes are an integral part
of these financial statements.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
SALINA ARTS AND HUMANITIES COMMISSION
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
The Salina Arts and Humanities Commission was organized to promote the cultural arts in the Salina
Area. Commission programs happen as part of the Arts and Humanities Department of the City of
Salina and its financial activities are housed in the Salina Arts and Humanities Foundation. As such, it
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. ~ Q[ Presentation - The accompanying financial statements are prepared on the cash basis;
consequently, revenue is recorded when received and expenditures 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. A separate audit report has been issued for the Smoky Hill River Festival as of September 30, 2006
and for the Horizons Program as of December 31, 2006. Both are programs of the Salina Arts and
Humanities Commission.
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. Fair market value equals carrying value.
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 revenue 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.
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. 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.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
SALINA ARTS AND HUMANITIES COMMISSION
Salina,Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
NOTE 2 . TEMPORARILY RESTRICTED NET ASSETS
The restricted net assets are comprised of programs receiving funding and commitments during
2006 that will not be paid for until the 2007 calendar year.
NOTE 3 . DEPOSITS AND INVESTMENTS
As of December 31, 2006, the cash balance of the Commission was adequately secured by
FDIC Insurance.
The Commission's investments are held at a brokerage firm and are not collateralized 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. These funds are insured with SIPC.
Investments are stated at fair value and consist of:
Money Market
Cost
$12,000
Market
$12,000
Investment return is summarized as follows:
Interest Income
$ 958
NOTE 4. OPERATING LEASE
The Commission entered into a three-year operating lease for office equipment in December
2003, requiring monthly payments of $391 plus expenses. This lease allows the Commission to
renew monthly after the three-year term is met. Payments will be made from the following
programs:
Program
No. of
Payments
Monthly
Payment
Total
Amount
Salina Arts & Humanities Commission
Horizons
Smoky Hill River Festival
2
2
2
$404
$404
$404
$ 808
808
808
$ 2,424
Under this agreement, rent expense for 2006 was $808 for Salina Arts and Humanities
Commission. The City of Salina reimbursed the above Programs for six of the scheduled
payments. A new contract was negotiated on November 27, 2006, for a term of three years,
requiring monthly payments of $390 plus expenses. Future payments will be made as follows
for all Programs, including reimbursements from the City:
Total
Amount
$ 4,848
$ 4,848
$ 4,848
Year
2007
2008
2009