COLLAGE DANCE COLLECTIVE, INC.

Transcription

1 Financial Statements For the Years Ended June 30, 2016 and 2015

2 COLLAGE DANCE COLLECTIVE. INC. Table of Contents For years ended June 30, 2016 and 2015 Page Independent Auditors Report Financial Statements Statements of Financial Position... 4 Statements of Activities and Changes in Net Assets... 5 Statements of Cash Flows... 6 Statements of Functional Expenses... 7 Notes to the Financial Statements

3 INDEPENDENT AUDITORS REPORT Board of Directors Collage Dance Collective, Inc. Memphis, Tennessee We have audited the accompanying statements of financial position of Collage Dance Collective, Inc. (a nonprofit organization) as of June 30, 2016 and 2015, and the related statements of activities and changes in net assets, functional expenses, and cash flow 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 Our responsibility is to express opinions 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 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 opinions.

4 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of Collage Dance Collective, Inc., as of June 30, 2016 and 2015, 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. August 12, 2016 Bartlett, Tennessee

5 Statements of Financial Position June 30, 2016 and 2015 ASSETS Cash $ 545 $ 9,953 Property and equipment, net of accumulated depreciation 35,242 36,146 Deposits 4,000 4,000 Total assets $ 39,787 $ 50,099 LIABILITIES AND NET ASSETS Liabilities Accounts payable $ 10,311 $ 865 Unearned revenue 44,328 32,680 Long-term debt 7,018 8,127 Total liabilities 61,657 41,672 Net assets Unrestricted (21,870) 8,428 Total liabilities and net assets $ 39,787 $ 50,099 See notes to the financial statements 4

6 Statements of Activities and Changes in Net Assets Years ended June 30, 2016 and Support and revenue Foundation grants $ 196,000 $ 38,450 Tuition 192, ,888 Donations 184,787 60,787 Special events 150,945 91,604 Ticket sales 58,854 64,458 Professional services 33,741 16,370 Merchandise 26,351 21,122 Other income 17,401 19,205 Space rental 15,896 2,579 Corporate sponsorships 8,500 3,500 Total support and revenue 884, ,963 Expenses Program services 816, ,597 Fundraising 39,070 19,498 Management and general 59,905 32,306 Total expenses 915, ,400 Increase (decrease) in net assets (30,298) (34,437) Net assets at beginning of year 8,428 42,865 Net assets at end of year $ (21,870) $ 8,428 See notes to the financial statements 5

7 Statements of Cash Flows Years ended June 30, 2016 and Cash flows from operating activities Increase in net assets $ (30,298) $ (37,287) Adjustments to reconcile decrease in net assets to net cash provided by (used in) operating activities: Depreciation 7,604 8,557 - Changes in operating assets and liabilities: Inventory - 10,501 Accounts payable 9,446 2,579 Deferred revenue 11,649 32,679 Net cash provided (used) by operating activities (1,599) 17,029 Cash flows from investing activities Purchases of property and equipment (6,700) (26,422) Net cash used in investing activities (6,700) (26,422) Cash flows from financing activities Proceeds from note payable 8,786 Payments on note payable (1,109) (659) Net cash provided (used) by financing activities (1,109) 8,127 Increase (decrease) in cash and cash equivalents (9,408) (1,266) Cash and cash equivalents at beginning of year 9,953 11,219 Cash and cash equivalents at end of year $ 545 $ 9,953 Interest paid for year end June 30, $614 $641 See notes to the financial statements 6

8 Statements of Functional Expenses Years ended June 30, 2016 and Management Management Program Fundraising and General Total Program Fundraising and General Total Compensation - artistic $ 208,217 $ 11,075 $ 2,215 $ 221,507 $ 146,611 $ 7,798 1, ,970 Contract labor 127, ,454 68, ,280 Travel 106, ,852 58, ,031 Merchandise 61, ,835 47, ,596 Office 42,969 2,865 11,458 57,292 19,196 1,280 5,119 25,595 Meals and entertainment 42,076 2,630 7,889 52,595 46,310 2,894 8,683 57,887 Occupancy 47,050-5,228 52,278 37,479-4,164 41,643 Compensation - Executive Director 22,887 6,242 12,484 41,613 6,483 1,768 3,536 11,788 Theatre rental 32,457 3,606-36,063 27,766 3,085-30,851 Contract services 22,322 22,322 22, ,643 Graphic design and marketing 21, ,432 8, ,919 Printing and reproduction 20, ,848 15, ,645 Employee benefits 16,940-2,989 19,929 1, ,182 Payroll taxes 10,272 2,802 5,603 18, Other fundraising expense - 9,032-9,032-1,926-1,926 Telephone 4, ,948 8,773 4, ,145 9,211 Depreciation 5, ,521 7,604 4, ,141 5,706 Automobile 7, ,411 5, ,279 Insurance 6, ,569 3, ,176 Other program expenses 5, ,278 9, ,532 Legal and professional fees - - 3,865 3, ,775 2,775 Information technology 2, ,401 2, ,870 Donations - - 2,024 2, Interest Total $ 816,320 $ 39,070 $ 59,905 $ 915,295 $ 536,597 $ 19,498 $ 32,306 $ 588,400 See notes to the financial statements 7

9 Notes to the Financial Statements Note 1 Organization and nature of activities Collage Dance Collective, Inc. is a non-profit ballet conservatory in Memphis, Tennessee which was founded in 2009 with the mission of making outstanding ballet instruction more widely accessible. With the city s depth of talent and strong commitment to the arts, Memphis was chosen as the home for the ballet conservatory which utilizes a unified curriculum inspired by various classical techniques. In addition to a nationally recognized dance company, the company also offers a variety of dance workshops, summer intensives, master classes, and residencies for dancers and non-dancers of varying skill levels. Note 2 Summary of significant accounting policies Basis of presentation The accompanying financial statements have been prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Accordingly, net assets and changes therein are classified as reported as follows: Unrestricted net assets Gifts and cash and other assets that are not subject to donor-imposed restrictions. Temporarily restricted net assets Net assets subject to donor-imposed restrictions that will be met either by actions of the organization or by the passage of time. Permanently restricted net assets Net assets subject to donor-imposed restrictions which stipulate that the principal be maintained permanently by the organization, but permit the Conservatory to expend part or all of the income and gains derived from the donated assets. Revenues and other gains and losses are reported as changes in unrestricted net assets unless limited by explicit donor-imposed restrictions or by law. Expenses are reported as decreases in unrestricted net assets. When a time restriction ends or when a 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. Cash contributions are recognized as revenue when received. Cash and cash equivalents For purposes of reporting cash flows, the Conservatory considers all highly liquid investments available for current use with an initial maturity of three months or less to be cash equivalents. Property and equipment Property and equipment is stated at fair market value at the date of the contribution if contributed or at cost if purchased. The Conservatory capitalizes any purchased assets greater than $500. Depreciation is determined by using the straight-line method over the estimated useful lives of the assets, generally three to fifteen years. Revenue recognition The Organization s revenues primarily come from foundation grants, corporate sponsors, donations, performances, and tuitions. Tuition revenues received in advance of the class sessions are deferred and recognized as revenue in the period the class session begins. 8

10 Notes to the Financial Statements (continued) Note 2 Summary of significant accounting policies (continued) Functional allocation of expenses The costs of providing programs and supporting services are summarized in the statement of functional expenses. Certain costs are allocated among the program and supporting services benefited. Income taxes The Conservatory is a non-profit corporation organized under the laws of the State of Delaware. It is recognized by the United States Treasury Department as an exempt organization under section 501(c)(3) of the Internal Revenue Code. The Conservatory Forms 990, Return of Organization Exempt from Income Tax, for the years ended June 30, 2013, 2014, and 2015 are subject to examination by the Internal Revenue Service, generally three year after they were filed. Advertising costs Advertising costs are expensed as incurred. Advertising costs were $21,432 and $8,919 for the years ended June 30, 2016 and 2015 respectively. 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 and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Changes in the economic environment, financial markets, and any other parameters used in determining these estimates and assumptions could cause actual results to differ. Note 3 Lease commitment The Conservatory leases property on a five year lease through October of The sound system for the Organization has also been leased for 60 months through February of Minimum lease commitments are as follows: Lease Commitments June 30, 2017 $ 28, , , ,023 $ 40,396 Note 4 Deferred revenues Deferred revenues consist of tuition collected before Summer Intensive and August classes begin. Advance collections for the years ended June 30, 2016 and 2015 are $44,328 and $32,679 respectively. 9

11 Notes to the Financial Statements (continued) Note 5 Long-Term Debt The organization s long-term debt consists of the following: Note payable to Chase Bank, due in monthly installments of $160 and secured by the organizations vehicle. June 30, $7,018 $8,127 Less: current maturities (1,436) (1,214) $5,582 $6,912 Future scheduled maturities of long-term debt are as follows: June 30, 2017 $1, $7,018 Note 6 - Property and equipment Property and equipment consists of the following at June 30: Vehicle $ 25,969 $ 23,969 Furniture and equipment 18,563 13,863 Leasehold improvements 6,870 6,870 51,402 44,702 Less: Accumulated depreciation (16,160) (8,556) Property and equipment, net $ 35,242 $ 36,146 Depreciation expense $ 7,604 $ 5,706 10

12 Notes to the Financial Statements (continued) Note 7 Reclassification Certain amounts have been reclassified to conform to June 30, 2016 financial statement presentation. The reclassification did not have an effect on the prior period increases (decreases) in net assets. Note 8 Subsequent events Subsequent events were evaluated through August 12, 2016, the date the financial statements were available for issuance. 11