BOULDER COMMUNITY BROADCAST ASSOCIATION, INC. KGNU FINANCIAL STATEMENTS. for the year ended September 30, 2017

Transcription

1 BOULDER COMMUNITY BROADCAST ASSOCIATION, INC. KGNU FINANCIAL STATEMENTS for the year ended September 30, 2017

2 Table of Contents Independent Auditor s Report...2 Statement of Financial Position Statement of Activities...5 Statement of Cash Flows...6 Statement of Functional Expenses 7-8 Notes to Financial Statements

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4 BOULDER COMMUNITY BROADCAST ASSOCIATION, INC STATEMENT OF FINANCIAL POSITION September 30, 2017 and 2016 See Independent Auditor's Report ASSETS CURRENT ASSETS Cash and Equivalents $ 376,989 $ 342,401 Accounts Receivable 1,400 - Prepaid Expenses 20,614 19,088 TOTAL CURRENT ASSETS $399,003 $ 361,489 FIXED ASSETS Building 1,150,071 1,150,071 Equipment and Furniture 1,073,680 1,073,680 2,223,751 2,223,751 Less: Accumulated Depreciation (1,534,643) (1,483,586) NET FIXED ASSETS 740, ,108 INTANGIBLE ASSETS AM Signal 4,100,000 4,100,000 Less: Accumulated Amortization 3,553,329 (3,279,996) 546, ,004 Land 350, ,000 TOTAL ASSETS $ 1,984,782 $ 2,271,658 See accompanying notes to financial statements 3

5 BOULDER COMMUNITY BROADCAST ASSOCIATION, INC STATEMENT OF FINANCIAL POSITION September 30, 2017 and 2016 See Independent Auditor's Report LIABILTIES CURRENT LIABILITIES Accounts Payable $ 13,014 $ 15,426 Prepaid Memberships 97,713 72,222 Taxes Payable 4,847 4,287 Current Portion of Long Term Debt 43,541 52,812 TOTAL CURRENT LIABILITIES $ 159,115 $ 144,747 LONG TERM DEBT Mortgages & Notes Payable (Note 7) 1,275,701 1,359,242 Less: Current Portion (43,541) (52,812) 1,232,160 1,306,430 NET ASSETS Unrestricted 593, , ,507 TOTAL NET ASSETS 820,481 TOTAL LIABILITIES AND NET ASSETS $ 1,984,782 $ 2,271,658 See accompanying notes to financial statements 4

6 BOULDER COMMUNITY BROADCAST ASSOCIATION, INC STATEMENT OF ACTIVITES September 30, 2017 and 2016 See Independent Auditor's Report UNRESTRICTED NET ASSETS Support and Revenue Memberships $ 566,572 $ 485,343 Bequests 10,000 Underwriting 49,700 37,285 Capital Campaign - (Note 8) 14,800 2,105 Auctions, Benefits, and Events 36,424 48,675 Federal Government Grants 99,874 94,672 Other Grants 87,850 37,900 Program Guide 4, Interest and Dividends Miscellaneous 37,650 42,429 Total Cash Support 898,139 $ 898,139 $ 760,200 Restricted Revenue (65,888) (65,888) In Kind Support Goods and Services 78,802 78,802 86,353 Total Support and Revenue (Unrestricted) 911, , ,553 Total Support and Revenue (Restricted) 65,888 65,888 Total Support and Revenue 976, ,941 Expenses Programming and Production 373, ,021 Broadcasting 491, ,432 Program Information 32,174 4,142 Total Program Expenses 897, ,595 Support Services Fundraising and Memberships 124, ,454 Underwriting and Grants 38,184 22,357 Management and General 143, ,623 Total Support Services 306, ,434 Total Expenses 1,203,915 1,129,029 (Decrease) IN UNRESTRICTED NET ASSETS (226,974) (282,486) NET ASSETS AT BEGINNING OF YEAR 820,481 1,102,967 NET ASSETS AT END OF YEAR $ 593,507 $ 820,481 See accompanying notes to financial statements 5

7 BOULDER COMMUNITY BROADCAST ASSOCIATION, INC STATEMENT OF CASH FLOWS September 30, 2017 and 2016 See Independent Auditor's Report Net Cash provided (used) by operating activities $ (226,974) $ (282,486) Excess (Deficit) of Support over Expenses - - Adjustment to reconcile operating activities to cash: - Depreciation and Amortization 324, ,384 Changes in operating assets and liabilities: Decrease (Increase) in Assets: Accounts Receivable (1,400) 720 Prepaid Expenses (1,526) 535 Increase (Decrease) in Liabilities: Accounts Payable (2,412) (1,834) Prepaid Memberships 25,491 (6,475) Payroll Taxes Payable 560 (270) Short Term Debt (9,271) 653 NET CASH PROVIDED BY OPERATING ACTIVITIES 108,858 44,227 Net cash provided (used) by investing activities: Purchase of Equipment and Furniture & Lease - (7,468) Mortgage for Land and Building (74,270) (83,339) INCREASE (DECREASE) IN CASH 34,588 (46,580) Cash at beginning of period, October 1, ,401 0 Cash at September 30, 2017 $ 376,989 $ 342,401 See accompanying notes to financial statements 6

8 Boulder Community Broadcast Functional Expenses October 2016 September 2017 DEPT 1 DEPT 2 DEPT 3 DEPT 4 DEPT 5 DEPT 6 DEPT 7 Programming Broadcast Program Management Fundraising Underwriting Capital Asset Oct '16 - Sep 17 & Production Information & General & Membership & Grants Improvement Total Expense Bank Charges 8, , , , Cash Reserves/Debt Service Commissions Underwriting 9, , , Volunteer Training 3, , , Total Commissions 12, Dues & Subscriptions 6, , , Employee Benefits 52, , , , , , , Employee Search Equipment Lease Fund Drive & Premium 5, , , Hospitality 1, , , Information Technology General IT 3, Web Hosting 4, Streaming 7, Total Information Technology 15, , , , , Insurance 15, , , , , Interest Expense 48, , , Janitorial 2, , , Labor Ticketing 2, , , News Director Pledge Drive/Office 1, , , Satellite Feeds Total Labor 4, Mortgage Interest 14, , , Office Supplies Computer - Equipment General Office Supplies 8, , , Ink-Toner-Paper 1, , , Printing/Membership 5, , , Office Supplies - Other Total Office Supplies 15, Outreach/Promotion 52, , , , , Postage 6, , , Production Supplies 3, , , Professional Development 5, , , Professional Fees Accounting 19, , , Computer Systems 3, , , , Engineering 2, , , Legal 18, , , Total Professional Fees 43, Program Acquisition BBC 14, , , Independent 3, , , Pacifica 3, , ,500.00

9 PRI 2, , , RMCR 3, , , Satellite Interconnect 10, , , Total Program Acquisition 38, Program Guide Expense Commissions Postage 1, , , Printing & Distribution 6, , , Program Guide Expense - Other Total Program Guide Expense 8, Rent - AM Tower 32, , , Rent - FM Tower 19, , , Rent - Denver Studio 7, , , Rent - Ft Collins Translator 2, , , Repairs & Maintenance 10, , , , Salaries 356, , , , , , , Storage Taxes - Other Taxes - Payroll 28, , , , , , Telephone 17, , , , , Utilities 15, , , , , Total Expense 855, Other Expense 0.00 Capital Campaign - Building Exp 0.00 Public Ballot Initiative 3, , , Total Capital Campaign - Building Exp 3, Grants - Restricted 0.00 Arts in Society BCAA 3, , , Breastfeeding Friendly Employer 1, , , Connecting the Drops 3, , , DPS Internship 1, , , Voqal Total Grants - Restricted 8, Total Other Expense 12, Total Expenses 867, , , , , , , , Amortization 273, , Depreciation 51, , Special Events 12, , Total 1,203, , , , , , , ,203,

10 BOULDER COMMUNITY BROADCAST ASSOCIATION, INC. NOTES TO FINANCIAL STATEMENTS September 30, 2017 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Boulder Community Broadcast Association, Inc., (the Organization ) have been prepared on the accrual basis. The significant accounting policies followed are described below. Organization Boulder Community Broadcast Association, Inc. is a nonprofit Colorado Corporation which operates a noncommercial public radio station (KGNU-FM) in Boulder, Colorado, 1390 AM in Denver Colorado, 98.7 FM in Fort Collins, and 93.7FM in Nederland. Cash Equivalents Cash equivalents are short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Fund Accounting The assets, liabilities and fund balances of the Organization are reported in the one selfbalancing Operating Fund, which includes unrestricted and restricted resources that are available for the support of the Organizations operations. Endowment Funds During 1993 and 1994 the Organization received several donations totaling $309,370 which were used to create an endowment fund for the purpose of purchasing a building. On September 30, 2000 the organization purchased a building with these funds. Additionally, $30,000 was contributed by the seller as a price reduction. This building now houses KGNU. Revenue Recognition Contributions, pledges, and grants that are unrestricted are recorded as revenue in the statement of activity when received. 9

11 BOULDER COMMUNITY BROADCAST ASSOCIATION, INC. NOTES TO FINANCIAL STATEMENTS Continued September 30, 2017 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. Financial Statement Presentation Under SFAS No. 117, Financial Statements of Not-For-Profit Organizations, 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. Note 2 - Contributions Under SFAS No. 116, Accounting for Contributions Received and Contributions Made, contributions received are recorded as unrestricted, temporarily restricted or permanently restricted net assets, depending on the existence or nature of any donor restrictions. The Corporation for Public Broadcasting contributed $ 99,874 and $ 94,672 for fiscal years 2017 and 2016 respectively, of which $ 26,038 and $ 31,914 was temporarily restricted in 2017 and 2016 respectively. The full amount contributed in 2017 and 2016 were spent in the fiscal years received. Restrictions on Net Assets Unrestricted net assets can generally be used in a manner to report the Organization s purpose and general activities. Temporarily restricted assets consist of contributions and other inflows which have donorimposed stipulations limiting their use. These restrictions expire with either the passage of time or by actions of the Organization. Permanently restricted assets consist of endowment funds received from donors to be held indefinitely. The income from these assets is to be used in a manner designated by the donors. Note 3 PROPERTY AND EQUIPTMENT Fixed assets are recorded at cost or, in the case of donated property, at their estimated fair value at date of receipt. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets, which range from five to thirty-nine years. Depreciation for 2017 and 2016 was $51,057 and $60,051, respectively. Costs of repairs and maintenance are charged to operating expenses as they are incurred. Note 4 INTANGIBLE ASSETS In 2004, the organization purchased AM signal 1390 in Denver Colorado. Amortization is calculated on this asset over 15 years using the straight-line method. Amortization for 2017 and 2016 is $273,333 and $273,333, respectively. 10

12 BOULDER COMMUNITY BROADCAST ASSOCIATION, INC. NOTES TO FINANCIAL STATEMENTS Continued September 30, 2017 Pledges Pledges are not recorded until received. Memberships, when received, are recorded as prepaid memberships and recognized as income over the following twelve months. Donated Personal Services of Volunteers Donated personal services of volunteers are recorded as revenue and expense in the accompanying statement of financial activity at estimated fair market value. The expenses and income for the current year were for legal, accounting, architectural design and computer services donated by various individuals. Donated services totaled $78,802 and $86,353 for periods ended September 30, 2017 and 2016 respectively, and were recorded as in-kind contributions in the statement of financial activity. Note 5 INCOME TAXES The Organization is exempts from Federal Income Taxes under Section 501(c)(3) of the Unread States Internal Revenue Code. The Organization is also exempt from the State of Colorado Income Taxes. Note 6 LAND AND BUILDINGS On September 30, 2000 the organization purchased land and a building which is the home of the organization. Depreciation is calculated by the straight-line method over the estimated useful life of thirty-nine years. The organization moved into the building in Note 7 LONG TERM DEBT A. Mortgage Payable Bank As of September 30, 2017, and 2016, the organization has a mortgage payable to Centennial Lending, in the amount of $320,701 and $334,242 respectively. This mortgage is secured by the building which houses the organization. This note is amortized over 25 years at an interest rate of 5.25%. The monthly payment is $1, B. Mortgage Payable Individuals and Institutions The organization borrowed money from individuals and institutions that are non interest bearing with no immediate payment terms. 11

13 The parties agreed to contribute the money to the organization in order for the organization to pay off banks and save interest on the original notes for the purchase of the 1390 AM signal. Presently, there are two required payments of $ 30,000 annually. A loan that required an annual $ 10,000 payment was paid in full in April The other balances and payments are negotiated yearly. $2,125,000 of this note is secured by the 1390 AM signal. The balances as of September 30, 2017 and 2016 are $955,000 and $ $1,025,000 respectively. Note 8 SUBSEQUENT EVENTS AND COMMITMENTS Subsequent to the fiscal year end of September 30, 2004, the company entered into an asset purchase agreement to purchase the FCC authorizations, tangible assets, assumed contracts, and records of commercial radio station KJME (AM) 1390 KHZ, Denver, CO. The total purchase price was $4,100,000. Note 9 FORGIVNESS OF DEBT In 2005 various private individuals loaned the company money to purchase the AM signal 1390 in Denver, Colorado. Total debt forgiveness was $ 1,125,000. One lender forgave their entire $ 250,000 portion of the debt in $ 50,000 increments over five years (2010 to 2014), another lender forgave their $ 150,000 portion of their debt in unequal portions from 2006 to 2011, another lender forgave $ 700,000 in 2011 and another lender forgave $ 25,000 in