Independent Auditor s Report on the Financial Statements and Supplementary Schedule of Expenditures of Federal Awards

Transcription

1 Independent Auditor s Report on the Financial Statements and Supplementary Schedule of Expenditures of Federal Awards To the Board of Directors Wolf Trap Foundation for the Performing Arts Report on the Financial Statements We have audited the accompanying financial statements of Wolf Trap Foundation for the Performing Arts (the Foundation), which comprise the statements of financial position as of December 31, 2012 and 2011, and the related statements of activities, and cash flows for the years then ended, and the related notes to the financial statements. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility L S t r e e t, N W S u i t e Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from 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 such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Foundation as of December 31, 2012 and 2011, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. 1

2 To the Board of Directors March 29, 2013 Page 2 of 2 Other Matters Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The schedule of expenditures of federal awards, as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, is presented for purposes 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, 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 29, 2013 on our consideration of the Foundation s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Foundation s internal control over financial reporting and compliance. Washington, DC March 29,

3 Statements of Financial Position December 31, Assets Cash and cash equivalents - Note B $ 8,516,083 $ 7,739,892 Investments - Notes B, D, & J 17,906,650 16,553,058 Accounts receivable 89, ,675 Contributions receivable, net - Note C 922, ,906 Prepaid expenses and other assets 209, ,858 Split interest agreements - Notes E & J 147, ,839 Property and equipment, net - Note F 11,906,077 12,447,921 Total assets $ 39,697,839 $ 38,117,149 Liabilities and Net Assets Liabilities Accounts payable and accrued expenses $ 1,104,517 $ 1,886,340 Split interest agreements - Note E 94,384 88,274 Deferred revenue - Note G 4,117,414 4,316,275 Notes payable - Note H 1,079,349 1,439,132 Total liabilities 6,395,664 7,730,021 Net assets Unrestricted 22,665,198 20,596,786 Temporarily restricted 9,503,417 8,878,742 Permanently restricted - Notes I & K 1,133, ,600 Total net assets 33,302,175 30,387,128 Commitments and contingencies - Note L - - Total liabilities and net assets $ 39,697,839 $ 38,117,149 See notes to the financial statements. 3

4 Statements of Activities Year Ended December 31, Unrestricted activities Revenue Program & production $ 15,307,167 $ 13,593,458 Education 1,617,260 1,560,099 Concessions, food & beverage 1,577,664 1,135,577 Operations 1,261, ,527 Communications & marketing 728, ,774 Ticket services 588, ,063 Opera company 557, ,399 General operating support Development and special events 6,506,322 6,180,345 Planning and initiatives 212, ,188 Net assets released from restriction 1,700,941 1,955,346 Total revenue and support 30,057,894 27,385,776 Expense Program services Program & production 11,954,871 10,401,789 Communications and marketing 4,464,821 4,503,247 Education 1,858,792 1,923,683 Opera company 1,303,514 2,095,869 Concessions, food & beverage 1,155, ,605 Ticket services 851, ,638 Total program services 21,588,531 20,699,831 Supporting services General and administrative 4,606,798 4,341,046 Fundraising Development and special events 2,546,266 2,650,791 Planning and initiatives 193, ,561 Total supporting services 7,346,417 7,171,398 Total expense 28,934,948 27,871,229 Change in unrestricted net assets before other activities 1,122,946 (485,453) Wolf Trap National Park improvements (8,951) (27,627) Change in unrestricted net assets from operations 1,113,995 (513,080) Investment income - Note D 954,417 (73,296) Change in unrestricted net assets 2,068,412 (586,376) Temporarily restricted activities Contributions 1,338, ,450 Investment income - Note D 986,666 (1,013) Net assets released from restriction (1,700,941) (1,955,346) Change in temporarily restricted net assets 624,675 (1,449,909) Permanently restricted activities Contributions 221,960 - Change in net assets 2,915,047 (2,036,285) Net assets, beginning of year 30,387,128 32,423,413 Net assets, end of year $ 33,302,175 $ 30,387,128 Certain 2011 amounts have been reclassified for comparative purposes. See notes to the financial statements. 4

5 Statements of Cash Flows Year Ended December 31, Cash flows from operating activities Change in net assets $ 2,915,047 $ (2,036,285) Adjustments to reconcile change in net assets to net cash provided by (used in) operating activities: Depreciation and amortization 825, ,767 Net realized and unrealized (gain) loss on investment activities (1,448,839) 323,518 Donation of public service tickets (60,000) (60,000) Permanently restricted contributions (221,960) - Changes in assets and liabilities: Accounts receivable 415,418 (478,311) Contributions receivable (329,835) 58,730 Prepaid expenses and other assets (68,497) (17,430) Split interest agreements (3,727) 4,456 Accounts payable and accrued expenses (781,823) 574,680 Deferred revenue (198,861) 339,580 Total adjustments (1,872,810) 1,533,990 Net cash provided by (used in) operating activities 1,042,237 (502,295) Cash flows from investing activities Purchases of property and equipment, net (283,470) (57,005) Purchases of investments (1,055,954) (3,927,135) Proceeds from investments 1,151,201 4,239,515 Net cash (used in) provided by investing activities (188,223) 255,375 Cash flows from financing activities Principal payments on note payable (299,783) (299,783) Permanently restricted contributions 221,960 - Net cash used in financing activities (77,823) (299,783) Net increase (decrease) in cash and cash equivalents 776,191 (546,703) Cash and cash equivalents, beginning of year 7,739,892 8,286,595 Cash and cash equivalents, end of year $ 8,516,083 $ 7,739,892 Certain 2011 amounts have been reclassified for comparative purposes. See notes to the financial statements. 5