Audit Cultural Development 2006
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SALINA ARTS AND HUMANITIES COMMISSION
COMMUNITY CULTURAL DEVELOPMENT PROGRAM
Salina, Kansas
COMPILED FINANCIAL STATEMENTS
December 31,2006
WOODS & DURHAM, CHARTERED
Certified Public Accountants
Salina, Kansas
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certified
public
C H ART ERE 0 accountants
Salina Arts and Humanities Commission
Community Cultural Development 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 Cultural Development
Program (a nonprofit organization), as of December 31, 2006, 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 e'l q)ur!ian; Cfzti.
January 18, 2007
WOODS & DURHAM, CHTD.
Certified Public Accountants
( ," 11
1619 E. Iron Avenue · P.O. Box 1516 · Salina, Kansas 67402-1516 . Phone 785-825-5494
Fax 785-825-4450 · www.woodsanddurhatri.com
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SALINA ARTS AND HUMANITIES COMMISSION
COMMUNITY CULTURAL DEVELOPMENT PROGRAM
Salina, Kansas
STATEMENT OF ASSETS, LIABILITIES, AND NET ASSETS
CASH BASIS
December 31, 2006
ASSETS
Current Assets
Investments $
Other Asset
Beneficial Interest in Community Foundation (Note 1)
55,412
13,214
TOTAL ASSETS $
68,626
LIABILITIES AND NET ASSETS
Net Assets
Unrestricted
68,626
TOTAL NET ASSETS $
68,626
The accompanying notes are an integral part
of these financial statements.
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SALINA ARTS AND HUMANITIES COMMISSION
COMMUNITY CULTURAL DEVELOPMENT PROGRAM
Salina, Kansas
STATEMENT OF REVENUE AND EXPENSES
CASH BASIS
Year Ended December 31,2006
REVENUE
Investment return (Note 2)
Transfers
Transfer to Salina Arts & Humanities Commission
Total Decrease in Net Assets
NET ASSETS - January 1, 2006
NET ASSETS - December 31,2006
The accompanying notes are an integral part
of these financial statements.
$ 6,377
(12,000)
(5,623)
74,249
$ 68,626
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SALINA ARTS AND HUMANITIES COMMISSION
COMMUNITY CULTURAL DEVELOPMENT PROGRAM
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
The Community Cultural Development Program was created in 1992 by the Salina Arts and
Humanities Commission as a program to collect funds for use in the development and promotion of the
cultural arts in the City of Salina. The Community Cultural Development 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; consequently, 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.
C. Management 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. 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.
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SALINA ARTS AND HUMANITIES COMMISSION
COMMUNITY CULTURAL DEVELOPMENT PROGRAM
Salina,Kansas
NOTES TO FINANCIAL STATEMENTS
December 31,2006
NOTE 1 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd.)
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, 2006 of $13,214 as an other asset in the
accompanying statement of assets, liabilities and net assets.
NOTE 2 . INVESTMENTS
Investments are stated at fair value and consist of:
Cost Market
Money Market $ 722 $ 721
Certificates of Deposit 17,082 17,082
Mutual Fund 33,005 37,609
Total $ 50,809 $ 55,412
Investment return is summarized as follows:
Interest and Dividend Income
Long-Term Capital Gains
Net Unrealized Gain on Investments
$
1,971
1,178
3,228
Total Investment Return
$
6,377
Expenses relating to investment revenue amounted to $118, and have been netted against
investment revenue in the accompanying statement of revenue and expenses - cash basis.
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, 2006. The Commission's investments at the brokerage firm 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.