Oklahoma Shakespeare in the Park, Inc. Independent Accountant s Report and Financial Statements for the Year Ended September 30, 2012

Transcription

1 Independent Accountant s Report and Financial Statements for the Year Ended September 30, 2012 dwg, inc 1912 N. Drexel Blvd. Phone: Oklahoma City, OK Fax:

2 TABLE OF CONTENTS Independent Auditor s Report 1 Statement of Financial Position 3 Statement of Activities and Changes in Net Assets 4 Statement of Functional Expenses 5 Statement of Cash Flows 6 Notes to Financial Statements 7

3 1912 N Drexel Blvd. Oklahoma City, OK Telephone (405) Facsimile (405) dwg, inc. Certified Public Accountant and Consultant bigdwg@dwgca.com INDEPENDENT AUDITOR'S REPORT The Board of Directors, Oklahoma Shakespeare in the Park, Inc. We have audited the accompanying statement of financial position of Oklahoma Shakespeare in the Park, Inc. (a nonprofit organization) as of September 30, 2012 and the related statements of activities and changes in net assets, functional expenses and cash flows for the year then ended. These financial statements are the responsibility of the management of Oklahoma Shakespeare in the Park, Inc. 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 misstatement. 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. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Oklahoma Shakespeare in the Park, Inc. as of September 30, 2012, and the changes in its net assets, functional expenses and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The schedule of functional expenses on page 5 is presented for purposes of additional analysis and is not a required part of the basic 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 Member of the American Institute of Certified Public Accountants 1

4 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 basic financial statements taken as a whole. dwg, inc. David W. Gandall, CFE, CPA September 11, 2013 Member of the American Institute of Certified Public Accountants 2

5 Statement of Financial Position As of September 30, 2012 ASSETS Cash on hand and demand deposits $ 77,846 Grants receivable 56,161 Furniture, fixtures & equipment 5,464 Accumulated depreciation (5,464) Beneficial interest in assets held by others 11,085 Unrealized gain (loss) on beneficial interest in assets held by others 965 TOTAL ASSETS 146,057 LIABILITIES AND NET ASSETS LIABILITIES Accounts payable 11,321 Payroll liabilities 14,061 Sales taxes payable 3,051 Escheat liability 213 Deferred grant revenue 76,147 TOTAL LIABILITIES 104,793 NET ASSETS Unrestricted 29,214 Temporarily restricted Permanently restricted 12,050 TOTAL NET ASSETS 41,264 TOTAL LIABILITIES AND NET ASSETS $ 146,057 The accompanying notes are an integral part of these financial statements 3

6 Statement of Activities and Changes of Net Assets For the Year Ended September 30, 2012 Temporarily Restricted Permanently Restricted Unrestricted Total REVENUES, GAINS AND OTHER SUPPORT Grants $ 105,832 $ 105,832 Box office sales 42,895 42,895 Donations 34,479 34,479 O.C.C.F. allocation 3,484 3,484 Interest income Other income 2,294 2,294 Total Revenues, Gains and Other Support 189, ,019 EXPENSES Program Services 157, ,013 Management and general 52,923 52,923 Fundraising 4,520 4,520 Total Expenses 214, ,456 CHANGE IN NET ASSETS (25,437) (25,437) BEGINNING NET ASSETS 54,651 10,584 65,235 Increase( decrease) in net assets Change in Unrealized gain (loss) on investment 1,466 1,466 ENDING NET ASSETS $ 29,214 $ 12,050 $ 41,264 The accompanying notes are an integral part of these financial statements 4

7 Schedule of Functional Expenses For the Year Ended September 30, 2012 Management Program & General Fundraising Total Expenses Expenses Expenses Expenses Bank charges $ - $ 1,102 $ - $ 1,102 Contract labor 50,241 50,241 Costume expenses 7,734 7,734 Donations Dues and subscription Insurance - 11,032 11,032 Salaries & taxes 36,826 29,422 66,248 Marketing 2,565 2,565 Fundraiser 4,520 4,520 Office expense 6,118 6,118 Payroll tax penalties 1,726 1,726 Postage Printing 10,901 10,901 Production costs 17,176 17,176 Rent 2,400 2,400 Sales Taxes 3,707 3,707 Set expenses 18,471 18,471 Telephone ,728 Travel 1,631 1,631 Supplies 4,649 4,649 Other Expense 1,688 1,688 Total Expenses $ 157,013 $ 52,923 $ 4,520 $ 214,456 The accompanying notes are an integral part of these financial statements 5

8 Statement of Cash Flows As of September 30, 2012 Cash flows from current activities: Cash received from grants $ 129,024 Cash received from investments 3,519 Cash received for goods and services 42,895 Cash received from donations 34,479 Cash received from miscellaneous sources 2,294 Payments for goods and services (133,835) Payments to employees (53,807) Net cash provided (used) by current activities 24,569 Beginning cash 53,277 Ending cash $ 77,846 Reconciliation of change in net assets to net cash used by operations: Change in net assets $ (25,437) Adjustments to reconcile change in net assets to net cash used by operating activities: Change in assets and liabilities: (Increase) decrease in receivables 19,668 Increase (decrease) in payables 26,813 Increase (decrease) in deferred revenue 3,524 Net cash from current activities $ 24,569 The accompanying notes are an integral part of these financial statements 6

9 Notes to the Financial Statements As of and for the Year Ended September 30, 2012 Note 1 -- Summary of Significant Accounting Policies History of the Organization Oklahoma Shakespeare in the Park, Inc. (the Organization) was incorporated on February 13, 1986, as a non-profit organization under the laws of the State of Oklahoma. It has been granted tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. The mission of the Organization is to encourage growth in the cultural climate of Oklahoma through the production of classic theatrical productions in unique venues at a reasonable admission. To accomplish this, the Organization has developed the following programs: Summer Classics Season, Stage Center Production, Artist in Residence Program and Touring Programs. Basis of Accounting The Organization s books are kept on a cash receipts and disbursements basis during the year. At year-end, the books are converted to the accrual basis. Financial Statement Presentation The financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards ASC (formerly SFAS No. 117). Under ASC , the Organization is required to report information regarding its financials position and activities according to three classes of net assets: unrestricted, temporarily restricted, and permanently restricted. Unrestricted net assets Net assets that are not subject to donor-imposed stipulations. Temporarily restricted net assets Net assets subject to donor-imposed stipulations that will be met either by actions of the Organization and/or the passage of time. Permanently restricted net assets Net assets subject to donor-imposed stipulations that they be maintained permanently by the Organization. The Organization has permanently restricted net assets as stated in Note 5. Revenues are reported as increases in unrestricted net assets unless use of the related assets is limited by donor-imposed restrictions. Expenses are reported as decreases in unrestricted net assets. Gains and losses on assets or liabilities are reported as increases or decreases in unrestricted net assets unless their use is restricted by explicit donor stipulation or by law. Expirations of temporary restrictions on net assets (i.e., the 7

10 Notes to the Financial Statements As of and for the Year Ended September 30, 2012 Note 1 -- Summary of Significant Accounting Policies (continued) donor-stipulated purpose has been fulfilled and/or the stipulated time period has elapsed) are reported as net assets released from restrictions. Use of Estimates 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, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Accordingly, actual results could vary from those estimates. Property and Equipment Property and equipment are reported at cost. Costs of maintenance and repairs are charged to expense while costs of significant renewals and betterments are capitalized. Donated property is recorded at its fair market value at the time of the donation. Assets are depreciated by the straight-line method over various estimated useful lives of five to fifteen years. Fair Value Measurements and Disclosures The Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Section defines the fair value of debt and equity instruments readily determinable if the sales prices or bid and asked quotations for the instruments are currently available on a securities exchange registered with the Securities and Exchange Commission (SEC) or in the over-thecounter market, provided that those prices or quotations for the over-the-counter market are publicly reported by the National Association of Securities Dealers Automated Quotations systems or by Pink Sheets LLC. Oklahoma Shakespeare in the Park, Inc. s at this time does not have any investments that are measurable on a given date by utilizing a sales price or quote available on an acceptable securities exchange. The Financial Accounting Standards Board (FASB) Financial Accounting Statement Number 157, Fair Value Measurements, establishes the framework for measuring fair value in generally accepted accounting procedures used in the United States of America, and expands disclosures about fair value measurements. These measurement standards are market based and classify assets into three levels of valuation. Level One are assets that are measurable at quoted prices in active markets for identical assets that the reporting entity has the ability to access at the financial statement date. Level Two are assets that are measurable at quoted prices in active markets for similar assets or assets that are measurable at quoted prices in inactive markets for identical assets. 8

11 Notes to the Financial Statements As of and for the Year Ended September 30, 2012 Note 1 -- Summary of Significant Accounting Policies (continued) Level Three are assets that are not measurable in active or inactive markets. The fair value is determined by the reporting entity using the best information available at the date of the financial statements. Income Taxes The Organization is a not-for-profit organization as described in Section 501 ( c ) ( 3 ) of the Internal Revenue Code and is exempt from federal and state income taxes. Accordingly, no provision for income taxes has been included in the accompanying financial statements. The Organization has adopted the provisions of FASB Accounting Standards Codification Topic ASC (previously Financial Interpretation No. 48, Accounting for Uncertainty in Income Taxes), on July 1, The implementation of this standard had no impact on the financial statements. As of both the date of adoption, and as of September 30, 2012, the unrecognized tax benefit accrual was zero. The Organization is required to file annual informational returns with the Internal Revenue Service and the Oklahoma Tax Commission. The informational returns are filed after completion of the annual audit. The returns for the current year ended September 30, 2012 will be prepared after the completion of the annual audit. Tax returns for the years ended September 30, 2011, 2010 and 2009 are subject to review by the taxing authorities. Oklahoma Shakespeare in the Park, Inc. has been granted tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. No income tax is payable by the Organization at either the Federal or State level unless the income is unrelated to its exempt purpose. The Organization had no unrelated business income during Cash and Cash Equivalents For purposes of preparing the statement of cash flows, cash includes demand deposits, money market accounts and certificates of deposit with an original maturity date of three months or less. At September 30, 2012, there were no cash equivalents. Contributions, Grants and Promises to Receive Contributions and grants are recognized when the donor makes a promise to give to the Organization that is, in substance, unconditional. The Organization has adopted ASC (Formerly SFAS No. 116), Accounting for Contributions Received and Contributions Made. Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence or nature of any donor restrictions. Support that is restricted by the grantor or donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized. All other restricted support is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. 9

12 Notes to the Financial Statements As of and for the Year Ended September 30, 2012 Note 1 -- Summary of Significant Accounting Policies (continued) When a restriction expires, (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Donated property and equipment, when received, would be reflected as contributions in the financial statements at their estimated values on the date of receipt. No significant donated property was received in the year ending September 30, Note 2 Grants Receivable Grants receivable consist of grants awarded to the Organization prior to September 30, 2012 for use during the 2012 or 2013 season grants are recorded as deferred revenue. All grants are considered fully collectible. Note 3 Temporarily Restricted Net Assets The organization did not have a temporarily restricted net asset balance at September 30, Note 4 Beneficial Interest in Assets Held by Others Oklahoma Shakespeare in the Park, Inc. is the beneficiary of an endowment with the Oklahoma City Community Foundation (the Foundation), and records this interest in accordance with FASB Accounting Standards No , Investments Debt and Equity Securities. The endowment was transferred from the Organization to the Foundation with variance power granted to the Foundation in the following three circumstances: a) The Organization ceases to exist; b) the Organization ceases to qualify under its current exempt status with the IRS; and c) the Organization s mission becomes impractical to fulfill. The current distribution policy of the Foundation is 5% of the market value of the fund at June 30 of each year, averaged over 8 quarters, distributed each October. The cumulative gifts from the Organization have totaled $11,337. The total Oklahoma City Community Foundation General Market Pool market value as of September 30, 2012 is $365,297,925. The Oklahoma Shakespeare in the Park, Inc. s percentage of that investment is.022% or approximate current market value of $81,165. The percentage that is considered The Oklahoma Shakespeare in the Park, Inc. s beneficial interest in these assets is 14.8%, or current market value of $12,050. The Financial Accounting Standards Board (FASB) Financial Accounting Statement Number 157, Fair Value Measurements, establishes the framework for measuring fair value in generally accepted accounting procedures used in the United States of 10

13 Notes to the Financial Statements As of and for the Year Ended September 30, 2012 America, and expands disclosures about fair value measurements. These measurement standards are market based and classify assets into three levels of valuation. Level One are assets that are measurable at quoted prices in active markets for identical assets that the reporting entity has the ability to access at the financial statement date. Level Two are assets that are measurable at quoted prices in active markets for similar assets or assets that are measurable at quoted prices in inactive markets for identical assets. Level Three are assets are not measurable in active or inactive markets. The fair value is determined by the reporting entity using the best information available at the date of the financial statements. Oklahoma Shakespeare in the Park, Inc. s beneficial interest in the assets held by the Oklahoma City Community Foundation is considered Level Three assets. Note 5 Functional Expenses Program services and membership include both direct and indirect costs attributed to the various programs of the Organization. Note 6 Subsequent Events The Organization has adopted FASB ASC , formerly SFAS No. 165, Subsequent Events. The standard reflects the existing principles of current subsequent event accounting guidance and requires disclosure of the date through which subsequent events have been evaluated. As of September 11, 2013 the subsequent events have been evaluated and there are no items that require disclosure. 11