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Audit- 2013/2012 • SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas • FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT December 31, 2013 and 2012 CLUBINE AND RETTELE, CHARTERED CERTIFIED PUBLIC ACCOUNTANTS SALINA, KANSAS SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas TABLE OF CONTENTS Page INDEPENDENT AUDITORS' REPORT 1-2 STATEMENTS OF FINANCIAL POSITION - Exhibit I 3 STATEMENTS OF ACTIVITIES - Exhibit II 4 STATEMENTS OF CASH FLOWS - Exhibit III 5 STATEMENT OF FUNCTIONAL EXPENSES - Exhibit IV 6-7 NOTES TO FINANCIAL STATEMENTS 8-11 SCHEDULES OF PROGRAM REVENUES 12 SCHEDULES OF DIRECT PROGRAM EXPENSES 13-15 SCHEDULES OF REVENUES AND EXPENSES UNDER AGREEMENT WITH THE CITY OF SALINA, SALINE COUNTY AND THE SALINA AIRPORT AUTHORITY TO PROVIDE ECONOMIC DEVELOPMENT SERVICES 16-18 SCHEDULES OF REVENUES AND EXPENSES UNDER CONTRACT WITH THE CITY OF SALINA TO PROVIDE CONVENTION AND TOURISM SERVICES 19-20 CLUBINE 1 1 LL INE INDEPENDENT AUDITORS' REPORT RE 1lC D Certified Public Aammtmas • To: The Board of Directors rigir Salina Area Chamber of Commerce, Inc. Salina, Kansas We have audited the accompanying financial statements of Salina Area Chamber of Commerce, Inc. (a nonprofit organization)which comprise the statements of financial position as of December 31, 2013 and 2012, and the related statements of activities, functional expenses and cash flows for the years then ended, and the related notes to Robert I.Clubine,CPA the financial statements. David A.Rettele,CPA Jay D.Langley,CPA,COMA Management's Responsibility for the Financial Statements Jon K.Bell,CPA Leslie M.Corbett,CPA Management is responsible for the preparation and fair presentation of these financial Stacy J.Osner,CPA statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of Marci K Fox,CPA internal control relevant to the preparation and fair presentation of financial statements Linda A.Svelter,CPA that are free from material misstatement, whether due to fraud or error. Johnna R.Vosseller,CPA Valerie K.Linnenberger,CPA Auditor's Responsibility • Our responsibility is to express an opinion on these financial statements based on our audits. 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 involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no 218 South Santa Fe such opinion. An audit also includes evaluating the appropriateness of accounting P.O. Box 2267 policies used and the reasonableness of significant accounting estimates made by Salina, Kansas management, as well as evaluating the overall presentation of the financial statements. 67402-2267 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Salina Opinion 785/825-5479 Salina Fax In our opinion, the financial statements referred to above present fairly, in all material 785/825-2446 respects, the financial position of Salina Area Chamber of Commerce, Inc. as of December 31; 2013 and 2012, and the changes in its net assets and its cash flows for Ellsworth the years then ended in conformity with accounting principles generally accepted in the 785/472-3915 United States of America. Ellsworth Fax 785/472-5478 (1) Other Matters Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The supplemental information, contained in pages 12 through 20, is presented for the purpose of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements • themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. c4../ . . /lac,., caAr .t- • Clubine and Rettele, Chartered Salina, Kansas March 26, 2014 (2) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas Exhibit I STATEMENTS OF FINANCIAL POSITION For the Year Ended December 31; 2013 2012 ASSETS Cash and cash equivalents $ 1,232,200 $ 1,300,323 Accounts receivable 138,435 89,341 Unconditional promises to give, net (Note 6) 9,700 - Prepaid expenses 67,754 81,390 Land, building and equipment, net (Note 2) 560,013 591,426 Investment land at market value (Note 3) . 100,000 100,000 Total Assets $ 2,108,102 $ 2,162,480 LIABILITIES AND NET ASSETS Liabilities Accounts payable 5 33,462 $ 25,833 Accrued taxes and other liabilities 284,452 234,661 Dues collected in advance 34,466 14,556 Program income collected in advance 151,475 192,097 Total Liabilities 503,855 467,147 Net Assets Unrestricted Net Assets Designated for fixed assets 660,012 691,426 Designated for convention and tourism 77,357 35,000 Undesignated 857,178 968,907 Total Unrestricted Net Assets 1,594,547 1,695,333 Temporarily Restricted Net Assets 9,700 - Total Net Assets 1,604,247 1,695,333 Total Liabilities and Net Assets $ 2,108,102 $ 2,162,480 SEE THE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. (3) • SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas Exhibit II STATEMENTS OF ACTIVITIES • For the Year Ended December 31, - 2013 2012 Change in Unrestricted Net Assets Support and Revenue Membership dues $ 353,998 $ 331,395 Program revenue 450,645 245,811 • Economic development 297,180 162,057 Convention and tourism 762,491 733,256 Facility rental 7,500 10,125 Interest 4,880 7,119 Miscellaneous 9,391 16,540 Total Unrestricted Support and Revenue 1,886,085 1,506,303 Net Assets Released from Restriction 7,300 126,496 Total Unresricted Support and Revenue 1,893,385 1,632,799 Expenses Program Services Agriculture 61,394 59,595 Community development 183,666 18,584 Iritemal affairs 173,273 146,190 Chamber Program Services 418,333 224,369 Economic development 189,200 122,226 Convention and tourism 273,611 262,657 Total Program Services 881,144 609,252 Supporting Services Administrative and general expenses 100,801 101,814 Staff expenses 917,697 890,062 Building operation expenses 94,529 91,640 Total Supporting Services 1,113,027 1,083,516 Total Expenses 1,994,171 1,692,768 Decrease in Unrestricted Net assets (100,786) (59,969) Change in Temporarily Restricted Net Assets Economic development strategic plan contributions 17,000 - Net Assets Released From Restriction (7,300) (126,496) Increase (Decrease) in Temporarily Restricted Net Assets 9,700 (126,496) . Decrease in Net Assets (91,086) (186,465) Beginning Net Assets 1,695,333 1,881,798 Ending Net Assets $ 1,604,247 $ 1,695,333 SEE THE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. (4) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas Exhibit III STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2013 2012 Cash Flows From Operating Activities Cash received from dues and projects S 1,087,123 S 920,030 Cash received from government entities 735,397 719,764 Cash received from other operating activities 16,891 26,665 Interest received 4,880 7,119 Cash paid to employees and suppliers (1,907,708) (1,549,033) Net Cash Provided (Used) by Operating Activities (63,417) 124,545 Net Cash Used by Investing Activities Purchase of equipment (4,706) (11,690) Net Increase (Decrease) in Cash and Cash Equivalents (68,123) 112,855 Cash and Cash Equivalents at Beginning of Year 1,300,323 1,187,468 Cash and Cash Equivalents at End of Year S 1,232,200 S 1,300,323 RECONCILIATION OF INCREASE (DECREASE) IN NET ASSETS ' TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Decrease in net assets $ (91,086) S (186,465) Adjustments to reconcile decrease in net assets to net cash provided (used) by operating activities Depreciation 36,119 36,120 Decrease (Increase) in accounts receivable (49,094) 40,779 Decrease (Increase) in promises to give (9,700) 166,911 Decrease (Increase) in prepaid expenses 13,636 (24,124) Increase in accounts payable and accrued expenses 57,420 32,361 Decrease in dues collected in advance (14,556) (5,052) Increase (Decrease) in program income collected in advance (6,156) 64,015 Total Adjustments 27,669 311,010 Net Cash Provided by Operating Activities $ (63,417) S 124,545 SEE THE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. (5) SALINA AREA CHAMBER OF COMMERCE, INC. - Salina, Kansas Exhibit IV a STATEMENT OF FUNCTIONAL EXPENSES For the Year Ended December 31, 2013 Economic Develop- Convention Chamber ment Tourism Total Direct Program Expenses $ 418,333 $ 189,200 $ 273,611 $ 881,144 Administrative and General Expenses Professional services 2,812 1,897 2,951 7,660 Travel expense 4,298 5,443 1,645 11,386 Office supplies 5,594 3,377 5,265 14,236 Postage 1,414 1,657 1,480 4,551 Communications 2,235 1,548 2,413 6,196 Computer services 4,488 3,117 4,863 12,468 Equipment services 5,404 3,746 5,842 14,992 Dues and subscriptions 4,887 2,890 2,837 10,614 Insurance 555 385 601 1,541 Contingency fund 14,648 980 1,529 17,157 Total Administrative and General Expenses 46,335 25,040 29,426 100,801 Staff Expenses Salaries 160,690 257,603 293,304 711,597 Payroll taxes 11,287 18,798 20,413 50,498 Contract labor - - Group medical insurance 23,887 24,291 37,216 85,394 Medical reimbursement 1,261 2,165 2,567 5,993 Group wellness 560 817 957 2,334 Retirement 8,487 14,424 17,640 40,551 Group life insurance (19) (172) 722 531 Cafeteria plan 323 278 490 1,091 Disability 1,067 1,567 1,869 4,503 Unemployment tax 916 1,682 1,966 4,564 Workers compensation insurance 278 493 535 1,306 Professional development 2,621 4,077 2,637 9,335 Total Staff Expenses 211,358 326,023 380,316 917,697 Building Operation Expenses Property insurance 1,785 1,239 1,934 4,958 Utilities 5,532 3,801 5,924 15,257 Taxes 7,022 4,868 7,592 19,482 Maintenance and janitorial 6,817 4,652 7,244 18,713 Depreciation 13,002 9,030 14,087 36,119 Total Building Operation Expenses 34,158 23,590 36,781 94,529 Total Expenses $ 710,184 $ 563,853 $ 720,134. $ 1,994,171 SEE THE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. (6) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas Exhibit IV b STATEMENT OF FUNC11ONAL EXPENSES For the Year Ended December 31, 2012 - Economic Develop- Convention Chamber ment Tourism Total Direct Program Expenses $ 224,369 $ 122,226 $ 262,657 $ 609,252 Administrative and General Expenses Professional services 3,007 1,850 2,853 7,710 Trawl expense 6,751 6,881 2,460 16,092 Office supplies 5,806 3,679 5,510 14,995 Postage 1,792 1,102 1,700 4,594 Communications 2,473 1,550 2,302 6,325 Computer services 4,865 2,993 4,614 12,472 Equipment services 6,452 3,970 6,121 16,543 Dues and subscriptions 4,380 2,470 2,379 9,229 Insurance 1,067 657 1,012 2,736 Contingency fund 4,113 2,891 4,114 11,118 Total Administrative and General Expenses 40,706 28,043 33,065 101,814 Staff Expenses Salaries 158,259 205,885 284,131 648,275 Payroll taxes 10,955 14,645 19,458 45,058 Contract labor - 28,800 250 29,050 Group medical insurance 21,787 28,009 51,960 101,756 Medical reimbursement 291 762 404 1,457 Group wellness 691 940 1,134 2,765 Retirement 8,194 12,722 16,944 37,860 Group life insurance 70 507 998 1,575 Cafeteria plan 330 381 528 1,239 Disability 984 1,474 1,878 4,336 Unemployment tax 904 1,286 1,820 4,010 Workers compensation insurance 712 953 1,328 2,993 Professional development 2,609 2,887 4,192 9,688 - Total Staff Expenses 205,786 299,251 385,025 890,062 Building Operation Expenses Property insurance 2,431 1,496 2,306 6,233 Utilities 5,613 3,454 5,325 14,392 Taxes 7,737 4,761 7,340 19,838 Maintenance and janitorial 5,872 3,614 5,571 15,057 Depreciation 14,086 8,669 13,365 36,120 Total Building Operation Expenses 35,739 21,994 33,907 91,640 Total Expenses $ 506,600 $ 471,514 $ 714,654 $ 1,692,768 SEE THE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART HEREOF. • (7) • SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 2013 and 2012 • 1. Nature of Organization and Significant Accounting Policies A. Nature of Organization - Salina Area Chamber of Commerce, Inc. (the"Chamber") is a nonprofit organization located in Salina, Kansas. Its purpose is to administer various activities advancing the general welfare and prosperity of the Salina area especially in the areas of economic development and tourism. B. Income Tax Exemption The Organization is a not-for-profit organization that is exempt from income taxes under Section 501(c)(6) • of the Internal Revenue Code. The Organization's Forms 990, Return of Organization Exempt from Income Tax, for the years ending 2010, 2011, and 2012 are subject to examination by the IRS, generally for three years after they were filed. C. Accounting Method The books of the Chamber are maintained and these financial statements were prepared on the accrual method of accounting. Under this method revenues are recognized when earned and expenses are recognized when incurred. D. Net Assets The Chamber has no permanently restricted net assets and therefore all net assets are classified as either temporarily restricted or unrestricted. Temporarily restricted net assets consist of contributions to the Organization's Economic Development Strategic plan that are not yet expended at year end. The Chamber has established a policy of dividing unrestricted net assets into three components: designated for fixed assets, designated for convention and tourism and undesignated. Unrestricted net assets designated for fixed assets is an amount equal to the Chamber's investment in building, furniture, fixtures, equipment, land improvements and land less accumulated depreciation. Unrestricted net assets designated for convention and tourism is the excess income over expenditures of the convention and tourism program. Unrestricted net assets in excess of that designated for fixed assets, economic development and convention and tourism are undesignated. E. Cash and Cash Equivalents For the purpose of the statements of cash flows, the Chamber considers all short-term investment securities purchased with a maturity of three months or less to be cash equivalents. The Chamber maintains checking, certificate of deposit, and deposits under repurchase agreements with eight financial institutions in Salina, Kansas. The amount not covered by F.D.I.C. insurance totaled 3468,765, however, this amount was held under repurchase agreements at Sunflower Bank and is secured by direct or indirect obligations of the United States Government. F. Accounts Receivable Accounts receivable are considered to be fully collectible. Accordingly, the allowance for doubtful accounts is zero. G. Inventories Purchases of supplies that might be considered as inventory are expensed when purchased. Actual amounts on hand are considered immaterial. (8) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 2013 and 2012 H. Membership Dues and Program Income Membership dues and program income are recognized as revenue in the year in which they are earned. The Chamber bills dues in December for the coming membership year, consequently a significant amount of dues are collected in advance and recorded as dues collected in advance in the financial statements. Program revenues are sometimes received in the year preceding the actual event, consequently these 'revenues are recorded as deferred income in the financial statements. I. Contributions Unconditional promises to give, are recognized in the period received. Conditional promises to give are not recognized until they become unconditional; that is, when the conditions on which they depend are substantially met. Contributions to be received after one year are discounted at an appropriate discount rate commensurate with the risks involved. Amortization of discounts is recorded as additional contribution revenue in accordance with donor-imposed restrictions, if any, on the contributions. J. Allocation of expenses The basis for allocation of expenses to specific programs is determined by management. Expenses that can be directly identified with specific programs are charged to that program. Other expenses are allocated using predetermined percentages. K. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. L. Products and services received in payment of dues are recorded at estimated market value by the Chamber. 2. Land, Building and Equipment can be summarized as follows: 2013 2012 Land, Building and Equipment Buildings S 689,787 $ 689,787 Fumiture, fixtures and equipment 435,616 430,910 Land improvements 15,280 15,280 Land 192,691 192,691 1,333,374 1,328,668 Less: Accumulated depreciation (773,362) (737,242) Total Land, Building and Equipment (net) $ 560,012 $ 591,426 Land, building and equipment are carried at cost. Depreciation of the building and equipment is computed on a straight-line basis over the estimated useful lives of the respective assets. The building, parking lot and landscaping are depreciated over their estimated useful lives which range from 8 to 35 years and the estimated useful lives of the furniture, fixtures and equipment range from 3 to 10 years. 3. Investment Land The Chamber purchased land on May 31, 1985 for$335,382. One-half of this land was used to construct the building which now serves as the Chamber's office and remains on the books at its original cost. The remaining east half of the land was recorded as investment land and is not an integral part of Chamber operations. Subsequent to its original purchase, it was-appraised for$100,000 and consequently written down to its fair market value. • (9) • • SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 2013 and 2012 4. Agreement Relating to Economic Development In 2013 and 2012, the Chamber received contributions from the City of Salina, Saline County and the Salina Airport Authority (Grantors) to help fund a program, the purpose of which is to encourage economic development in the Salina/Saline County area. The agreement provided that the Chamber will expend funds received on programs and services that the parties to this agreement believe will enhance the economic development of the area. 5. Agreement Relating to Convention and Tourism The Chamber has entered into an agreement with the City of Salina to provide convention and tourism programs to encourage, promote and solicit conventions and tourism for the City of Salina, and the City has appointed a Convention and Tourism Advisory Committee to recommend to the Chamber, programs in connection with this agreement. Under this agreement the City makes contributions to the Chamber of a portion of the proceeds of the local transient guest tax levied on hotel and motel guests. The Chamber board has designated excess income over expenditures for 2013 and 2012 in the amount of $77,357 and $35,000 respectively, as a reserved net asset for convention and tourism in order to fund future contracted obligations. 6. Promises to give Unconditional promises to give at December 31, are as follows: Promises to give expected to be collected in: 2013 • 2012 • Receivable within 1 year S 4,600 S - Receivable beyond 1 year but within 5 years 5,100 9,700 - Less allowance for uncollectibles - - Less discount on promises to give - - Net unconditional promises to give S 9,700 S - 7. Retirement Plan The Chamber has established a defined contribution retirement plan covering substantially all qualified employees. Qualified employees are at least 21 years of age and have completed one year of service. Contributions are made by the Chamber equal to 6% of eligible compensation. The total expense under the plan was $40,551 and $37,860 for the years ended December 31, 2013 and 2012, respectively. • (10) • • • SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 2013 and 2012 8. Compensated Absences The Chamber grants annual paid vacations to its full time employees based on the following schedule: Annual Vacation Years of Service Allowance 1-9 10 days • 10 or more 15 days Vacation days earned must be used within one year and do not accumulate. 9. Leases • The Chamber leases an automobile used in its operations. Total lease expense for the years ended December 31, 2013 and 2012 is $5,855 and $5,734, respectively. The following is a schedule of future minimum lease payments required under these operating leases as of December 31, 2013: • Year Ended December 31, 2014 $ 3,684 2015 3,684 2016 307 10. Economic Development Strategic Plan The following information sets forth the amount of temporarily restricted contributions received and expended in relation to the Chambers Economic Development Strategic Plan. 2013 2012 Beginning Temporarily Restricted Net Assets $ - $ 126,496 Contributions 17,000 - Expenditures (7,300) (126,496) Ending Temporarily Restricted Net Assets $ 9,700 $ - 11. Investment Income: Interest income was earned on repurchase accounts and certificate of deposits in the amount of$4,880 and $7,119 for the years ending December 31, 2013 and 2012. 12. Subsequent Events Salina Area Chamber of Commerce, Inc.'s management has evaluated events and transactions occurring after December 31, 2013 through March 26, 2014. The aforementioned date represents the date the financial statements were available to be issued. (11) SUPPLEMENTAL INFORMATION SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas SCHEDULES OF PROGRAM REVENUES For the Year Ended December 31, • 2013 2012 Program Revenues Farm show $ 99,790 $ 98,114 Dairy show 12,275 11,816 Leadership Salina 17,800 17,650 International trip 158,466 - Membership meetings 27,330 21,106 • Website sponsorships 3,619 4,200 Chamber- Net 4,745 4,130 . Legislative action 1,200 • 1,200 Gift certificate sponsorship 1,200 1,200 Annual meeting 124,220 86,395 Total Program Revenues $ 450,645 $ 245,811 (12) • SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas - SCHEDULES OF DIRECT PROGRAM EXPENSES For the Year Ended • December 31, 2013 2012 Chamber Direct Program Expenses Agriculture Farm show $ 48,292 $ 46,751 Agriculture development 874 941 Dairy show 12,228 11,903 Total Agriculture Direct Program Expenses 61,394 59,595 Community Development Leadership Salina 16,350 - 17,765 International trip 157,642 271 All America team/Arts 195 548 Salina Makes Sense 9,479 Total Community Development Direct Program Expenses 183,666 18,584 Internal Affairs Ambassadors 5,222 6,931 Membership services 3,957 . 3,058 Plans and directors 1,531 1,656 Communication and image 22,069 23,274 Chamber- Net 4,153 4,316 Legislative action - 346 49 Membership meetings 24,881 20,550 Annual meeting 111,114 86,356 Total Internal Affairs Direct Program Expenses 173,273 146,190 Total Chamber Direct Program Expenses 418,333 224,369 Economic Development Program Expenses • Business Retention and Expansion Marketing 3,028 29,242 Research 816 353 Computer hardware/software 767 1,946 Professional membership dues - 158 Total Business Retention and Expansion 4,611 31,699 New Business Attraction - Advertising 2,908 - Marketing 14,698 23,829 - Project development support 28,265 Printed collateral materials 992 • Travel/call trips and trade shows 1,457 Research 17,249 4,050 Computer hardware/software 911 990 Professional membership dues 1,345 683 Total New Business Attraction 67,825 29,552 (13) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas SCHEDULES OF DIRECT PROGRAM EXPENSES (Continued) For the Year Ended December 31, • 2013 2012 Commercial Development Marketing 87 126 Research 701 Professional membership dues - 334 Total Commercial Development 788 460 Workforce Development STC/web services/seminars 452 (1,277) Travel/employee recruitment/job fairs/dues 278 10 HR local events 125 25 Marketing 5,080 10,566 Workforce housing 100,000 - SAYP/YPN . 372 172 Total Workforce Development 106,307 9,496 Legislative Action 148 2,277 Military Affairs 9,371 6,187 Miscellaneous 150 11,777 Total Economic Development Direct Program Expenses 189,200 122,226 Convention and Tourism Direct Program Expenses Advertising 71,671 57,432 Convention marketing 7,280 12,160 Convention services 9,747 8,517 Tourism Marketing Marketing 18,528 15,658 1-70 association 4,791 4,754 TIAK 2,542 1,231 Total Tourism Marketing 25,861 21,643 • (14) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas SCHEDULES OF DIRECT PROGRAM EXPENSES - (Continued) For the Year Ended December 31, 2013 2012 Sporting Events Special events 10,733 10,196 High school basketball 3,000 3,117 High School wrestling 836 755 High school football 25,620 20,561 High school baseball/softball 21,757 23,634 NJCAA women's basketball . 86,415 91,706 ASA & AFA softball 724 2,819 Total Commercial Development 149,085 152,788 Special Projects Hospitality services 654 934 Smoky Hill River Festival 5,000 5,000 Visit Salina organization dues/art 1,865 1,650 Calendar of events 2,400 2,400 Miscellaneous 48 133 Total Special Projects 9,967 10,117 Total Convention and Tourism Direct Program Expense 273,611 262,657 Total Direct Program Expenses S 881,144 $ 609,252 (15) • • • SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas SCHEDULES OF REVENUES AND EXPENSES UNDER AGREEMENT WITH THE CITY OF SALINA, SALINE COUNTY AND THE SALINA AIRPORT AUTHORITY TO PROVIDE ECONOMIC DEVELOPMENT SERVICES For the Year Ended December 31, 2013 2012 • - Revenues City of Salina $ 125,100 5 85,000 Saline County 30,633 15,000 Salina Airport Authority 15,000 15,000 • Economic development strategic plan 17,000 - Grant services 15,300 15,300 Program revenue 111,147 31,757 Total Revenues S 314,180 $ 162,057 Expenses - Program expenses (Schedule 1A) $ 189,200 $ 122,226 Administrative and general expenses (Schedule 2A) 25,040 28,043 Staff expenses (Schedule 3A) 326,023 299,251 Building operation expenses (Schedule 4A) 23,590 21,994 Total Expenses $ 563,853 $ 471,514 • • (16) S ALINA AREA CHAMBER OF COMMERCE, INC. - Salina, Kansas SCHEDULES OF REVENUES AND EXPENSES UNDER AGREEMENT WITH THE CITY OF SALINA, SALINE COUNTY AND THE SALINA AIRPORT AUTHORITY TO PROVIDE ECONOMIC DEVELOPMENT SERVICES For the Year Ended December 31, 2013 2012 Schedule 1A - Program Expenses Business retention and expansion $ 4,611 $ . 31,699 New business attraction 67,825 29,552 Commercial development 788 460 Workforce development 106,307 9,496 Uncollectible pledges - 30,778 Legislative action 148 2,277 Military affairs 9,371 6,187 Miscellaneous 150 11,777 Total Program Expenses $ 189,200 $ 122,226 Schedule 2A -Administrative and General Expenses Professional services 5 1,897 $ 1,850 Travel expense 5,443 6,881 Office supplies 3,377 3,679 Postage 1,657 1,102 Communications 1,548 1,550 Computer services 3,117 2,993 Equipment services 3,746 3,970 Dues and subscriptions 2,890 2,470 Insurance 385 657 Contingency fund 980 2,891 Total Administrative and General Expenses 5 25,040 $ 28,043 Schedule 3A - Staff Expenses Salaries $ 257,603 $ 205,885 Payroll taxes 18,798 14,645 Contract labor - 28,800 Group medical insurance 24,291 28,009 Medical reimbursement 2,165 762 Group wellness 817 940 Retirement 14,424 12,722 Group life insurance (172) 507 Cafeteria plan 278 381 Disability 1,567 1,474 Unemployment tax 1,682 1,286 Workers compensation insurance 493 953 Professional development 4,077 2,887 Total Staff Expenses $ 326,023 $ 299,251 (17) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas SCHEDULES OF REVENUES AND EXPENSES UNDER AGREEMENT WITH THE CITY OF SALINA, SALINE COUNTY AND THE SALINA AIRPORT AUTHORITY TO PROVIDE ECONOMIC DEVELOPMENT SERVICES (Continued) For the Year Ended December 31, 2013 2012 Schedule 4A -Building Operation Expenses Property insurance S 1,239 $ 1,496 Utilities 3,801 3,454 Taxes 4,868 4,761 Maintenance and janitorial 4,652 3,614 Depreciation 9,030 8,669 Total Building Operation Expenses $ 23,590 S 21,994 (18) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas SCHEDULES OF REVENUES AND EXPENSES UNDER CONTRACT WITH THE CITY OF SALINA TO PROVIDE CONVENTION AND TOURISM SERVICES • For the Year Ended December 31, 2013 2012 • Revenues • City of Salina - - s 630,480 $ 604,764 NJCAA women's basketball 75,498 79,323 . High school sports 52,532 48,409 Special functions 3,981 760 Total Revenues $ 762,491 $ 733,256 Expenses Program expenses (Schedule 1B) $ 273,611 $ 262,657 Administrative and general expenses (Schedule 2B) 29,426 33,065 Staff expenses (Schedule 3B) 380,316 385,025 Building operation expenses (Schedule 4B) 36,781 33,907 Total Expenses $ 720,134 $ 714,654 • (19) SALINA AREA CHAMBER OF COMMERCE, INC. Salina, Kansas SCHEDULES OF REVENUES AND EXPENSES UNDER CONTRACT WITH THE CITY OF SALINA TO PROVIDE CONVEN11ON AND TOURISM SERVICES For the Year Ended December 31, 2013 2012 - Schedule 1B - Program Expenses Advertising - $ 71,671 $ 57,432 Convention marketing 7,280 12,160 Convention services 9,747 - , 8,517 • Tourism marketing 25,861 21,643 • Sports 149,086 152,788 Special projects 9,966 10,117 Total Program Expenses $ 273,611 $ 262,657 Schedule 2B -Administration and General Expenses Professional services $ 2,951 $ 2,853 Travel expense 1,645 2,460 Office supplies 5,265 5,510 Postage 1,480 1,700 Communications 2,413 2,302 • Computer services 4,863 4,614 Equipment services 5,842 6,121 • Dues and subscriptions 2,837 2,379 Insurance 601 1,012 Contingency fund 1,529 4,114 Total Administration and General Expenses $ 29,426 $ 33,065 Schedule 3B -Staff Expenses - Salaries S 293,304 $ 284,131 Payroll tax 20,413 19,458 Contract labor - 250 Group medical insurance 37,216 51,960 Medical reimbursement 2,567 404 Group wellness 957 1,134 Retirement 17,640 16,944 Group life insurance 722 998 Cafeteria plan . 490 528 Disability 1,869 1,878 Unemployment tax 1,966 1,820 Workers compensation insurance 535 1,328 Professional development 2,637 4,192 Total Staff Expenses 5 380,316 $ 385,025 Schedule 4B - Building Operation Expenses Property insurance $ 1,934 $ 2,306 Utilities 5,924 5,325 Taxes 7,592 7,340 Maintenance and janitorial 7,244 5,571 Depreciation 14,087 13,365 Total Building Operation Expenses $ 36,781 $ 33,907 (20)