,.. I I I I I I I. J(};Mt;J. REGIONAL CITIZENS' ADVISORY COUNCIL, INC. Financial Statements and Schedules. June 30, 1995

Transcription

1 L J(};Mt;J REGONAL CTZENS' ADVSORY COUNCL, NC. Financia Statements and Schedues June 30, 1995,.. (With ndependent Auditors' Report Thereon)

2 i\.",.. supporting Peat Marwick LLP 601 West Fifth Avenue Suite 700 Anchorage. AK ndependent Auditors' Report The Counci Members Regiona Citizens' Advisory Counci, nc.: We have audited the accompanying baance sheet of the Regiona Citizens' Advisory Counci, nc. as of June 30, 1995, and the reated statements of revenues, expenses and changes in fund baance, and cash fows for the six months then ended. These financia statements are the responsibiity of the 'Counci's management. Our responsibiity is to express an opinion on these financia statements based on our audit. We conducted our audit in accordance with generay accepted auditing standards. Those standards require that we pan and perform the audit to obtain reasonabe assurance about whether the financia statements are free of materia misstatement. An audit incudes examining, on a test basis, evidence the amounts and discosures in the financia statements. An audit aso incudes assessing the accounting principes used and significant estimates made by management, as we as evauating the overa financia statement presentation. We beieve that our audit provides a reasonabe basis for our opinion. n our opinion, the financia statements referred to above present fairy, in a materia respects, the financia position of the Regiona Citizens' Advisory Counci, nc. as of June 30, 1995, and the resuts of its operations and its cash fows for the six months then ended in conformity with generay accepted accounting principes. Our audit was made for the purpose of forming an opinion on the basic financia statements taken as a whoe. The suppementary information incuded in Schedues 1 and 2 is presented for purposes of additiona anaysis and is not a required part of the basic financia statements. Such information has been subjected to the auditing procedures appied in the audit of the basic financia statements and, in our opinion, is fairy stated in a materia respects in reation to the basic financia statements taken as a whoe. August 16, 1995

3 r REGONAL CTZENS' ADVSORY COUNCL, NC. Baance Sheet June 30, Assets Cash and cash equivaents Contract receivabe Prepaid expenses and other assets Equipment, fixtures and easehod improvements, net of accumuated depreciation of $202,406 (note 3) Liabiities: Accounts payabe Accrued iabiities Deferred revenue (note 1) Tota iabiities Fund baance Commitments (notes 1 and 2) See accompanying L Liabiities and Fund Baance notes to financia statements. $ 3,303,910 10,386 9,220 85,378 $ 3,408, ,516 64,035 2,642,226 2,815, ,117 $ 3,408,894

4 REGONAL CTZENS' ADVSORY COUNCL, NC. Statement of Revenues, Expenses and Changes in Fund Baance Six months ended June 30, 1995 Revenues: Ayeska Pipeine Service Company income (note 1) nterest income Aaska Department of Environmenta Conservation contract income Tota revenues Expenses: Program: Termina Operations and Environmenta Monitoring Oi Spi Prevention and Response Port Operations and Vesse Traffic Systems Scientific Advisory Committee Community mpacts Long-term Environmenta Monitoring Disabed Tanker Towing Study Communications Tota program Genera and administrative Counci Tota expenses Excess of revenues over expenses Fund baance at beginning of period Fund baance at end of period See accompanying notes to financia statements. $ 1,078,704 80,579 10,386 1,169, , ,293 59,571 36,898 31,798 43,307 5, , , , $ 593! 117

5 REGONAL CTZENS 1 ADVSORY COUNCL, NC. Statement of Cash Fows Six months ended June 30, 1995 Cash fows from operating activities: Excess of revenues over expenses Adjustments to reconcie excess of revenues over expenses to net cash provided by operating activities: Depreciation Loss on disposa of equipment and easehod improvements Changes in assets and iabiities: Decrease in contract receivabe Decrease in prepaid expenses and other assets ncrease in accounts payabe ncrease in accrued iabiities ncrease in deferred revenue Net cash provided by operating activities Cash fows from investing activities - purchase of equipment, fixtures and easehod improvements Net increase in cash and cash equivaents Cash and cash equivaents at beginning of period Cash and cash equivaents at end of period See accompanying notes to financia statements. $ 80,579 29,592 4,841 14,734 11,336 19, ,145,296 1,305,944 (6,753) 1,299,191 2,004,719 $ 3,303,910 L

6 REGONAL CTZENS' ADVSORY COUNCL, NC. Notes to Financia Statements June 30, 1995 (1) Puro=seandSummaro=fSinific=antAc=coTuntinPoicies T e Regiona Citizens' Advisory Counci, nc. (Counci is a nonprofit corporation consisting of representatives throughout Prince Wiiam Sound and the Guf of Aaska. After the Exxon Vadez oi spi and in accordance with its Prince Wiiam Sound Tanker Spi Prevention and Response Pan (Pan), Ayeska Pipeine Service Company (Ayeska) entered into a contract with the Counci to provide funds for oversight, monitoring, assessment and evauation of oi spi prevention, safety and response pans, termina and oi tanker operations, and the environmenta impacts of oi reated operations in Prince Wiiam Sound. On February 8, 1990, the Counci and Ayeska signed a contract which obigates Ayeska to provide the Counci with a minimum of $2,000,000 per year, adjusted annuay for infation. This fund is restricted for use in the review and monitoring of the Pan as we as the invovement and education of citizens in oi spi prevention. The contract wi continue as ong as oi continues to fow through the Trans Aaska Pipeine System. Any unspent and unencumbered Ayeska-provided funds remaining at the termination of this contract sha be returned to Ayeska. n order to accompish the Pan's goas, the Counci has estabished the foowing programs: Termina Operations and Environmenta Monitoring Oi Spi Prevention and Response Port Operations and Vesse Traffic Systems Scientific Advisory Committee Community mpacts ong-term Environmenta Monitoring Disabed Tanker Towing Study Communications On Apri 8, 1993, the Counci and Ayeska amended their contract. The amended contract provides the Counci with $2,224,000 per year for operationa, technica studies and expert support. The amended contract paces certain specific restrictions on the types of obbying activities in which the Counci may participate. (Continued)

7 2 REGONAL CTZENS' ADVSORY COUNCL, NC. Notes to Financia Statements Basis of Presentation The Counci reports in accordance with the American nstitute of Certified Pubic Accountant Statement of Position No (Statement), Accounting Principes and Reporting Practices for Certain Nonprofit Organizations. Consistent with the principes of this Statement and to faciitate the observance of restrictions paced on the use of resources avaiabe to the Counci, the accounts and records are maintained on a fund-accounting basis. Funds are estabished to account for specified activities or objectives, and each fund comprises a sef-baancing group of accounts in which are recorded its assets, iabiities, fund equity, revenue, and expenses. Revenue Recognition Revenues are deemed to be earned when the Counci has incurred eigibe oper ating expenditures, as defined by the contracts between Ayeska, Aaska Department of Environmenta Conservation (ADEC), the United States Coast Guard and Cook net Regiona Citizens Advisory Counci. Amounts received, but not yet earned, are reported as deferred revenue. nterest revenue is recognized as it is earned. EqUipment, Fixtures and Leasehod mprovements Equipment and fixtures are recorded at cost and depreciated by the straight-ine method over their estimated usefu ife, which is generay five years. Leasehod improvements are recorded at cost and depreciated over the ife of the three-year ease. L ncome Taxes The Counci has received a favorabe determination from the nterna Revenue Service and is exempt from federa income taxes under Section SO(c)(3) of the nterna Revenue Code. Administrative Expenses A genera and administrative expenses not specificay identifiabe to a program are recorded in the genera and administrative function. Cash EqUivaents For purposes of the statement of cash fows, short-term investments with a maturity of three months or ess are considered to be cash equivaents. Cash and cash equivaents incude cash on hand, checking accounts, savings accounts, and repurchase agreements. (Continued)

8 3 REGONAL CTZENS' ADVSORY COUNCL, NC. Notes to Financia Statements,..., L (2) Operating ease During 1993 the Counci entered into a three-year noncanceabe operating ease for office space. This ease incudes an option for a three-year extension. The minimum ease payments at June 30, 1995 are: Period ending June 30 Amount 1996 $ 47,040 The Counci rents additiona office space on a month-to-month basis. Rent expense for the six month period ended June 30, 1995 was $33,925. (3) Equipment, Fixtures and easehod mprovements A summary of equipment, fixtures and easehod improvements at June 30, 1995 foows: Equipment Fixtures easehod improvements ess accumuated depreciation $ 199,526 85,670 2, , ,406 $ 85,378

9 - -r T r SchedJe 1 REGONAL CTZENS' ADVSORY COUNCL, NC. Functiona Expenses Six months ended JM'e 30, 1995 Port Tennina Oi Spi Operations Disabed Genera Operations and Prevention and Vesse Scientific Long-tenn Tanker and Environnenta and Traffic Advisory COU" i tv ErNi ronnenta Towing COU"i.inis- Monitoring Res)O"$e Systems Conmittee!!!!!!.i Moni tori!] cations trative COU'Cf Tota Saaries S 65,518 55,379 35,657 27,627 34, , ,015 Payro taxes: FCA 4,716 3,728 2,601 2,005 2,208 11,529 26,787 ESC ,323 3,146 Rent 4,223 5,724 4,223 2,862 2,862 14,031 33,925 Copi er offset (12,745) 02,745) uti ities 5,098 5,680 2,332 1,071 1,091 6,020 5,808 27,100 Conference cas 2,998 4, ,733 21,020 Office S4P ies Equipnent ease Computer software On-ine database 2,897 2, ,478 1,674 2, , , ,815 14,918 4, MoncBpita bed equipment 1,455 2,776 Dues and sbscriptions ,914 AccOU'ting 5,375 5,375 Lega fees 20,897 20,897 Contract abor 1,467 1,250 2,717 Professiona services 314 8, ,681 17,507 Consu tants Advertising En.,oyee edjcation Printing Postage Conference ard c:orwoention Equipnent intenance nsurance Library Deprfeiation ttsceaneous Contracts Trave ard per diem Meetings 64, , , ,473 2,194 1, ,639 18,514 (489) , , ,399 1,292 1,174 41,643 5,038 2, ,346 8,390 1, ,947 1, , ,924 2,845 8,036 3, ,045 4,020 1,555 4, ,627 9,991 4,246 31,459 17,060 6,563 5,924 7,142 -! s 171,084.JZ2 36,89! 31,1'98 3,39r L ,6J7 277, ,034 t, ,368 3,076-1Y ,592 2,448 5, ,742 54,206 4,1}33 1,608 29,592 3, , ,924 6,225

10 Schedue 2 REGONAL CTZENS' ADVSORY COUNCL, NC. Program Expenses by Funding Source Six months ended June 30, 1995 Aaska Ayeska Department of Pipeine Environmenta Service Conservation Company Tota Expenses: Program: Termina Operations and Environmenta Monitoring $ 10, , ,084 Oi Spi Prevention and Response 169, ,293 Port Operations and Vesse Traffic Systems 59,571 59,571 i Scientific Advisory Committee 36,898 36,898 Community mpacts 31,798 31,798 Long-term Environmenta Monitoring 43,307 43,307 Disabed Tanker Towing Study 5,167 5,167 Communications Tota program 10, , ,785 Genera and administrative 277, ,271 Counci Tota expenses $ 10, z