Audit - 2009
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
COMMUNITY ACCESS TELEVISION OF SALINA, INC.
Salina, Kansas
FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT
December 31, 2009
CLUBINE AND RETTELE, 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
COMMUNITY ACCESS TELEVISION OF SALINA, INC.
Salina, Kansas
IN 0 EX
Paqe
INDEPENDENT AUDITORS' REPORT
1.
STATEMENT OF ASSETS, LIABILITIES AND NET ASSETS -
- MODIFIED CASH BASIS - Exhibit I
2
STATEMENT OF REVENUES, EXPENSES AND OTHER CHANGES
IN NET ASSETS - MODIFIED CASH BASIS - Exhibit II
STATEMENT OF CASH FLOWS - MODIFIED CASH BASIS - Exhibit III
3
4
NOTES TO THE FINANCIAL STATEMENTS
5-6
I
I
I
I
CLUBlNE&
RETTELE
CHARfERED
Certified Public Accountants
",
I
Robert I. Clubine, C.P.A.
I David A. Rettele, C.P.A.
Jay D. Langley, C.P.A.
Jon K. Bell, C.P.A.
Leslie M. Corbett, C.P.A.
I Stacy J. Osner, C.P.A.
I
I
Marci K. Fox, C.P .A.
John T. Millikin, C.PA
Linda A. Suelter, C.P.A.
I
I
I
I
I
I
I
I
I
I
218 South Santa Fe
P.O. Box 2267
Salina, Kansas
67402-2267
Salina
785/825-5479
Salina Fax
785/825-2446
Ellsworth
785/472-3915
Ellsworth Fax
785/472-5478
INDEPENDENT AUDITORS' REPORT
To: The Board of Directors
Community Access Television of Salina, Inc.
We have audited the accompanying statement of assets, liabilities and net assets -
modified cash basis of Community Access Television of Salina, Inc. as of December 31,
2009, and the related statements of revenues, expenses and other changes in net assets -
modified cash basis, and cash flows - modified cash basis, for the year then ended. These
financial statements are the responsibility of Community Access Television of Salina, Inc.'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
misstatements. 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 2, these financial statements were prepared on the modified cash
basis of accounting. This basis 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 Community Access Television of Salina,
Inc. as of December 31,2009, and its revenues collected and expenses paid for the year
then ended, on the basis of accounting described in Note 2.
~::J~
June 17, 2010
(1)
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
COMMUNITY ACCESS TELEVISION OF SALINA, INC.
Salina, Kansas
STATEMENT OF ASSETS, LIABILITIES AND NET ASSETS
MODIFIED CASH BASIS
December 31, 2009
Current Assets
Cash in bank
Donated facilities, current portion
Total Current Assets
Property and Equipment, at cost
Building improvements
Equipment
Deduct - Accumulated depreciation
Total Property and Equipment
Other Assets
Donated facilities, less current portion
Total
Current Liabilities
Accrued payroll taxes and withholdings
Net Assets
Unrestricted
Temporarily restricted
Total Net Assets
Total
ASSETS
LIABILITIES AND NET ASSETS
See accompanying notes which are an integral part
of the financial statements.
(2)
Exhibit I
$
205,270
78,600
283,870
174,420
907,083
1,081,503
(969,519)
111,984
76,800
$
472,654
$
272
316,982
155,400
472,382
$
472,654
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
COMMUNITY ACCESS TELEVISION OF SALINA, INC.
Salina, Kansas
Exhibit II
STATEMENT OF REVENUES, EXPENSES AND OTHER CHANGES
IN NET ASSETS - MODIFIED CASH BASIS
For the Year Ended December 31, 2009
Changes in Unrestricted Net Assets
Revenue and Reclassifications
Revenue
City ordinance
County revenue
Contributions
Tapes
Sponsorship
Fees and classes
Interest
Miscellaneous
Donated facilities
Total Revenue
Net Assets Released From Restrictions
Total Revenue and Reclassifications
Program Expenses
Accounting
Legal
Office supplies '
Postage and mailing
Printing
Repairs and maintenance
Production supplies
Telephone and cable
Dues and publications
Miscellaneous
Tapes and expendables
Community relations
Advertising
Wages
Payroll taxes
Retirement plan
Health insurance
Continuing education
Underwriting usage
Insurance
Travel and recruitment
Depreciation
Donated facilities rent
Total Program Expenses
Total Changes in Unrestricted Net Assets
Changes in Temporarily Restricted Net Assets
Net assets released from restrictions
Capital improvements revenue
Donated facilities
Total Changes in Temporarily Restricted Net Assets
Change in Net Assets
Net Assets at Beginning of Year
Net Assets at End of Year
$ 336,690
15,000
2,821
2,035
2,957
2,921'
2,584
1,863
7,800
374,671
111,800
486,471
7,262
1,734
6,815
1,256
4,044
11,025
25,393
3,909
969
1,534
2,097
9,452
8,166
213,932
17,277
4,213
12,217
2,523
1,072
14,669
6,109
32,561
89,600
477,829
8,642
$
(30,000)
(81,800)
(111,800)
(103,158)
575,540
472,382
See accompanying notes which are an integral part
of the financial statements.
(3)
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
COMMUNITY ACCESS TELEVISION OF SALINA, INC.
Salina, Kansas
Exhibit III
STATEMENT OF CASH FLOWS
MODIFIED CASH BASIS
For the Year Ended December 31, 2009
Cash Flows From Operating Activities
Cash received from cable contracts and others
Interest received
Cash paid to suppliers and others
Net Cash Provided by Operating Activities
Cash at End of Year
$ 364,612
2,584
(355,593)
11,603
(37,979)
(26,376)
231,646
$ 205,270
Net Cash Used by Investing Activities
Purchase of property and equipment
Net Decrease in Cash
Cash at Beginning of Year
RECONCILIATION OF DECREASE IN NET ASSETS TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Decrease in Net Assets
$
(103,158)
Adjustments to reconcile decrease in net assets
to net cash provided by operating activities
Decrease in employee receivable
Increase in accrued payroll taxes and with holdings
Donated facilities, net
Depreciation
Total Adjustments
325
75
81,800
32,561
114,761
Net Cash Provided by Operating Activities
$
11,603
See accompanying notes which are an integral part
of the financial statements.
(4)
1
1
11.
1
1 2
1
1
1
1
1
1
1
1
1
1
1
I
I
I
COMMUNITY ACCESS TELEVISION OF SALINA, INC.
Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Nature of Activities:
Community Access Television of Salina, Inc. was organized as a Kansas not-for-profit corporation with exempt
status under Internal Revenue Code Section 501 (c)(3) on April 15, 1991. The organization operates cable
television channels to distribute noncommercial, educational, community-based media programs and information
to local citizens and provides equipment and technical knowledge for local citizens who produce the programs.
Significant Accounting Policies:
A. The accounting records are maintained and the financial statements prepared on the modified cash basis of
accounting. Under the cash basis, receipts are recognized when collected and disbursements are
recognized when paid rather than when incurred. This method is modified to include a provision for
depreciation of property and equipment and for accrued payroll taxes.
B. The organization's expenses are primarily program related with an insignificant amount of expenses related
to administration and fund raising. Thus, the Statement of Functional Expenses is not presented.
C. For the purposes of the Statement of Cash Flows - Modified Cash Basis, cash equivalents include bank
checking accounts, certificates of deposit and a money market account.
D. Property and equipment are recorded at cost. Depreciation is determined using the straight-line method over
estimated lives of 5 to 15 years.
E. The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements and reported
amounts of revenues and expenses during the reporting period. Actual results could .differ from those
estimates.
3.
City of Salina Contract:
A contract with the City of Salina dated April 2, 2007, provided for funds to be paid to Community Access
Television of Salina, Inc. in exchange for providing the services in Note 1. The agreement term commences April
4,2007 and terminates December 31,2011. The contract may be renewed for periods of five years at a time.
In 2007 and subsequent years, revenue will be substantially reduced under the new contract with the City of
Salina. The reduction is due to Kansas legislation passed in 2006 which eliminated local franchise relationships
between municipalities and video service providers. This contract contains a declining revenue provision as
follows: 70% for April 4, 2007 through December 31, 2007, 65% for 2008, 60% for 2009, 55% for 2010 and 50%
for2011.
Under the terms of the agreement, the City of Salina furnishes a building and utilities for the operations of
Community Access Television of Salina, Inc. The estimated fair rental value for the life of the new contract ofthis
facility, including utilities, was estimated to be $388,500, and recognized as restricted revenue in 2007. For 2009,
the revenue released from restrictions of $81,800 is shown as a reclassification and the expense of $89,600 is
shown under the caption "Donated Facilities" on the Statement of Revenues, Expenses and Other Changes in Net
Assets - Modified Cash Basis, in accordance with FASS ASC 958-605, Revenue Recognition. The $7,800
difference represents the discounted portion of donated facilities not recognized in 2007. The remaining portion of
donated facilities recognized in 2007 is shown as temporarily restricted net assets on the Statement of Assets,
Liabilities and Net Assets - Modified Cash Basis.
The City of Salina maintains a security interest in all assets and upon termination of the agreement, all real estate,
equipment, deposit accounts or other assets become the property of the City of Salina.
(5)
I 4.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
City of Salina Revenue:
Revenues from the city ordinance. represent a percentage of fees paid to the City of Salina by the cable
franchisee. These are remitted quarterly to Community Access Television of Salina, Inc. The fourth quarter
payment for 2009 of $81,453 was not payable until after year-end.
From time to time, additional funds may be provided by the City of Salina and the cable franchisee for equipment
purchases at the request of Community Access Television of Salina, Inc. This revenue is recorded under the
caption "City equipment reserve" when received. In 2009, no such funds were received.
All of the revenues from the City of Salina are subject to the perpetuity of the contract mentioned in Note 2.
5.
Compensated Absences:
Certain employees of the organization are entitled to paid vacation and sick days depending on various factors
which can be carried over to following years up to certain limits. The liability for these compensated absences at
December 31,2009, is estimated to be $15,635. This estimated liability has not been reflected in these financial
statements.
6. Retirement Plan:
The organization sponsors a Simple IRA Plan for eligible employees which began January 1, 1999. Contributions
to the pension plan were $4,213 for the year ended December 31,2009.
7. Capital Improvements:
The Net Assets Released from Restriction includes $30,000 in capital improvements revenue. This amount was
received in 2008 for expenditures made in 2009.
8. Income Taxes - Uncertain Tax Positions:
The Organization is exempt from federal income taxes except on .net income derived from unrelated business
activities. The Organization believes that it has no unrelated business activities, and as such, does not have any
uncertain tax positions that are material to the financial statements.
The Organization's federal Exempt Organization Business Income Tax Returns (Form 990) for 2007,2008 and
2009 are subject to examination by the IRS, generally for three years after they were filed.
9. Subsequent Events:
Community Access Television of Salina, Inc.'s management has evaluated events and transactions occurring after
December 31,2009 through June 17, 2010. The aforementioned date represents the date the financial
statements were available to be issued.
(6)