FORT WORTH ART ASSOCIATION

Transcription

1 CONSOLIDATED FINANCIAL STATEMENTS Years Ended June 30, 2015 and 2014 with Report of Independent Auditors

2 CONSOLIDATED FINANCIAL STATEMENTS Years Ended June 30, 2015 and 2014 Table of Contents Report of Independent Auditors... 1 Audited Consolidated Financial Statements: Consolidated Statements of Financial Position... 2 Consolidated Statements of Activities and Changes in Net Assets... 3 Consolidated Statements of Cash Flows... 5 Notes to Consolidated Financial Statements... 6

3 Fort Worth Offi ce 1400 West 7th Street Suite 400 Fort Worth, Texas Main REPORT OF INDEPENDENT AUDITORS whitleypenn.com To the Board of Trustees of Fort Worth Art Association We have audited the accompanying consolidated financial statements of the Fort Worth Art Association and its affiliated organization, which comprise the consolidated statements of financial position as of June 30, 2015 and 2014, and the related consolidated statements of activities and changes in net assets 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 consolidated 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 consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits 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 opinion. Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Fort Worth Art Association and its affiliated organization as of June 30, 2015 and 2014, and the consolidated results of their activities and changes in net assets and their cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Fort Worth, Texas April 29, 2016 An Independent Member of Dallas Fort Worth Houston

4 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION June 30, Assets Cash and cash equivalents $ 3,477,850 $ 2,182,993 Restricted cash 1,278, ,129 Pledge receivable, net 780,959 30,000 Due from Fort Worth Art Association Endowment Foundation - 1,235,005 Accounts receivable 549,311 14,891 Inventory 198, ,743 Prepaid expenses and other assets 475, ,068 Property and equipment, net 3,333,700 3,614,173 Collections Art 1 1 Library 1 1 Interest in the net assets of the MPA Foundation 54,978,705 56,671,862 Interest in the net assets of the Fort Worth Art Association Endowment Foundation 102,607,460 99,707,824 Income only interest in perpetual trusts 28,914,723 29,143,156 Total assets $ 196,595,509 $ 193,996,846 Liabilities and Net Assets Liabilities: Accounts payable $ 275,859 $ 187,696 Accrued expenses 142, ,832 Note payable 416, ,645 Total liabilities 834, ,173 Net assets: Unrestricted 7,199,952 6,769,700 Temporarily restricted 147,295, ,962,815 Permanently restricted 41,264,725 41,493,158 Total net assets 195,760, ,225,673 Total liabilities and net assets $ 196,595,509 $ 193,996,846 See accompanying notes to consolidated financial statements. 2

5 CONSOLIDATED STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS Year ended June 30, 2015 Temporarily Permanently Unrestricted Restricted Restricted Total Revenue and other support: Contributions from Fort Worth Art Association Endowment Foundation $ 3,178,301 $ - $ - $ 3,178,301 Museum contributions and pledges at present value 2,602,045 1,195,304-3,797,349 Artwork sales Product sales (net of expenses of $322,285) 145, ,795 Exhibitions 380, ,559 Memberships 849, ,546 Other income 136, ,788 Dividend and interest income 9,110 6,659-15,769 Education tuition 18, ,458 Income from interest in perpetual trusts 3,595, ,595,925 Decrease in carrying value of interest in perpetual trusts - - (228,433) (228,433) Decrease in the net assets of the MPA Foundation - (1,693,157) - (1,693,157) Increase in the net assets of the Fort Worth Art Association Endowment Foundation - 2,899,636-2,899,636 Net assets released from restrictions 75,400 (75,400) - - Total revenue and other support 10,992,228 2,333,042 (228,433) 13,096,837 Expenses: Program services Exhibitions 826, ,833 Art and library accessions 1,199, ,199,031 Education and publications 201, ,592 Memberships 405, ,494 Total program expenses 2,632, ,632,950 General and administrative 7,912, ,912,341 Fundraising 16, ,685 Total expenses 10,561, ,561,976 Change in net assets 430,252 2,333,042 (228,433) 2,534,861 Net assets at beginning of year 6,769, ,962,815 41,493, ,225,673 Net assets at end of year $ 7,199,952 $ 147,295,857 $ 41,264,725 $ 195,760,534 See accompanying notes to consolidated financial statements. 3

6 CONSOLIDATED STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS Year ended June 30, 2014 Temporarily Permanently Unrestricted Restricted Restricted Total Revenue and other support: Contributions from Fort Worth Art Association Endowment Foundation $ 3,849,793 $ - $ - $ 3,849,793 Museum contributions and pledges at present value 2,771, ,160-2,963,703 Artwork Sales - 289, ,771 Product sales (net of expenses of $341,556) 157, ,987 Exhibitions 356, ,242 Memberships 954, ,944 Other income 408, ,159 Dividend and interest income 878 3,665-4,543 Education tuition 18, ,465 Income from interest in perpetual trusts 3,742, ,742,102 Increase in carrying value of interest in perpetual trusts - - 2,974,543 2,974,543 Decrease in the net assets of the MPA Foundation - (1,656,187) - (1,656,187) Increase in the net assets of the Fort Worth Art Association Endowment Foundation - 10,319,534-10,319,534 Net assets released from restrictions 76,479 (76,479) - - Total revenue and other support 12,336,592 9,072,464 2,974,543 24,383,599 Expenses: Program services Exhibitions 1,225, ,225,985 Art and library accessions 697, ,867 Education and publications 230, ,756 Memberships 311, ,450 Total program expenses 2,466, ,466,058 General and administrative 7,668, ,668,720 Fundraising 96, ,116 Contributions to Fort Worth Art Association Endowment Foundation 21, ,889 Total expenses 10,252, ,252,783 Change in net assets 2,083,809 9,072,464 2,974,543 14,130,816 Net assets at beginning of year 4,685, ,890,351 38,518, ,094,857 Net assets at end of year $ 6,769,700 $ 144,962,815 $ 41,493,158 $ 193,225,673 See accompanying notes to consolidated financial statements. 4

7 CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended June 30, Cash flows from operating activities: Change in net assets $ 2,534,861 $ 14,130,816 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation and amortization 525, ,184 Discount on pledge receivable 19,041 - Loss on disposal of assets - 16,313 Restricted contributions (414,345) (192,160) Art and library accessions 1,199, ,867 Investment income restricted for acquisition of art objects (6,659) (3,665) Decrease in the net assets of the MPA Foundation 1,693,157 1,656,187 Increase in interest in the net assets of the Fort Worth Art Association Endowment Foundation (2,899,636) (10,319,534) Decrease (increase) in carrying value of interest in perpetual trusts 228,433 (2,974,543) Changes in operating assets and liabilities: Due from Fort Worth Art Association Endowment Foundation 1,235,005 (1,235,005) Accounts receivable (534,420) 63,739 Contributions receivable (770,000) 42,500 Inventory 7,646 48,802 Prepaid expenses and other assets (217,901) 80,192 Due to Fort Worth Art Association Endowment Foundation - (71,530) Accounts payable and accrued expenses 100,812 8,113 Net cash provided by operating activities 2,700,354 2,393,276 Cash flows from investing activities: Increase in restricted cash (345,604) (409,117) Purchases of property and equipment (244,856) (906,870) Art and library collection accessions (1,199,031) (697,867) Net cash used in investing activities (1,789,491) (2,013,854) Cash flows from financing activities: Investment income restricted for acquisition of art objects 6,659 3,665 Restricted contributions 414, ,160 Payments made on long-term debt (37,010) (35,721) Net cash provided by financing activities 383, ,104 Net increase in cash and cash equivalents 1,294, ,526 Cash and cash equivalents at beginning of year 2,182,993 1,643,467 Cash and cash equivalents at end of year $ 3,477,850 $ 2,182,993 Supplemental Disclosures of Cash Flow Information Cash paid during the year for interest $ 15,503 $ 16,792 See accompanying notes to consolidated financial statements. 5

8 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2015 and 2014 A. Nature of Activities The Fort Worth Art Association (the Association ), a Texas non-profit corporation, was established to acquire a collection of works of modern art of the highest quality and to promulgate and maintain a program of art activities and art education in Fort Worth, Texas, for public use and benefit. The Association strives to provide educational enjoyment in modern art, to preserve the art holdings of the Association and to create public appreciation for such art by its appropriate display. The Fort Worth Modern Art Museum Association (the Museum Association ), a Texas non-profit corporation, was established to administer certain real property utilized by the Association and its employees and to solicit and receive donations for the benefit of, to perform the functions of, and to carry out the purposes of the Association. A separate entity, the Fort Worth Art Association Endowment Foundation (the Endowment Foundation ), was established to operate exclusively for the benefit of the Association. The Endowment Foundation is responsible for the administration of the long-term investments held for the benefit of the Association. The interest in the Endowment Foundation is recorded on the books of the Association at the fair value of the net assets of the Endowment Foundation in accordance with accounting principles generally accepted in the United States of America ( GAAP ). Another separate entity, the MPA Foundation ( MPA ), was established to raise funds and build an exhibition facility (the Modern Art Museum Building ) for the Association. The Association has no control over the selection of the MPA s board of trustees and has only a leasehold interest in the Modern Art Museum Building of MPA. B. Summary of Significant Accounting Policies A summary of the Association s significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements follows. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Association and the Museum Association, since they are financially interrelated organizations. All significant intercompany transactions have been eliminated in consolidation. Basis of Accounting The accompanying consolidated financial statements are presented on the accrual basis of accounting in accordance with the recommendations of GAAP. Under GAAP, the Association 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. 6

9 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) B. Summary of Significant Accounting Policies continued Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates and assumptions. Membership Dues Membership dues are recognized when received. Certain benefits are available to members throughout the calendar year in which the membership was purchased; however, the utilization of such benefits and the cost of providing them are minimal. As a result, these memberships are considered, in substance, contributions. Pledge Receivable Pledges receivable are recorded as revenue in the year made. Unconditional promises to give that are expected to be collected in future years are recorded at the present value of their estimated future cash flows. The discount on those amounts is computed using risk-adjusted interest rates applicable to the years in which the promises are expected to be received. Amortization of the discount is included in contribution revenue. Conditional promises to give are recognized when the conditions on which they depend are substantially met. Management provides for probable uncollectible pledges through a charge to contributions and a credit to an allowance for uncollectible pledges based on its assessment of the current status of individual pledges. Balances still outstanding after management has used reasonable collection efforts are written off through a charge to the allowance for uncollectible pledges and a credit to pledges receivable. Restricted and Unrestricted Revenue and Support Contributions received are recorded as unrestricted, temporarily restricted or permanently restricted support, depending on the existence and/or nature of any donor restrictions. Donor-restricted support is reported as an increase in temporarily or permanently restricted net assets. When a restriction expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities and changes in net assets as net assets released from restrictions. Donated Assets and Services Donated assets are recorded at their estimated fair value (as determined by management) at the date of donation. Donated services are recognized as contributions if the services, (a) create or enhance non-financial assets, or (b) require specialized skills, and are performed by people with those skills, and would otherwise be purchased by the Association. Volunteers provide many hours of service throughout the year that are not recognized as contributions in the consolidated financial statements because the recognition criteria under GAAP were not met. The Association pays for most services requiring specialized skills. No contributed assets or services were recognized during the years ended June 30, 2015 and

10 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) B. Summary of Significant Accounting Policies continued Cash and Cash Equivalents The Association considers all highly-liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Association maintains deposits primarily in two financial institutions, which may at times exceed amounts covered by insurance provided by the U.S. Federal Deposit Insurance Corporation ("FDIC") and Securities Investor Protection Corporation ("SIPC"). The Association has not experienced any losses related to amounts in excess of FDIC and SIPC limits. Inventory Inventory is comprised of finished goods which are stated at the lower of cost or market on a first-in, first-out basis. Federal Income Taxes The Association and the Museum Association are exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code, as organizations other than a private foundation. The Association and the Museum Association file a Form 990 in the United States federal jurisdiction. At June 30, 2015, the Association s tax returns related to the years ended June 30, 2012 through June 30, 2014 remain open to possible examination by the tax authorities. No tax returns are currently under examination by any tax authorities. Property and Equipment Property and equipment is recorded at cost or, if donated, at its estimated market value at the date of donation. Repairs and maintenance costs are expensed as incurred, while expenditures for major expansion, renewals and betterments of property and equipment are capitalized. Depreciation is computed using the straight-line method over the following estimated useful lives: Furniture, fixtures and equipment Building improvements Building 3-12 years years 31.5 years Collections The art and library collections, which were acquired through purchases and contributions since the Association s inception, are not recognized as assets in the consolidated statement of financial position. Purchases of collection items are recorded as art and library accessions in the year of acquisition. Contributed collection items are not reflected in the consolidated financial statements. Proceeds from deaccessions or insurance recoveries are reflected as increases in the appropriate net asset classes and must be used only to acquire other collection objects. 8

11 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) B. Summary of Significant Accounting Policies continued Collections continued The collections are made up of artifacts of literary and art objects that are held for educational and curatorial purposes. Each of the items is cataloged, preserved, and cared for, and activities verifying their existence and assessing their condition are performed continuously. Interest in the Net Assets of the MPA Foundation The interest in the net assets of MPA consists of the Association s rights to use the Modern Art Museum Building that is wholly owned by MPA. As required by GAAP, the value of the net assets of MPA is recorded on the books of the Association as temporarily restricted net assets. Interest in the Net Assets of the Fort Worth Art Association Endowment Foundation The interest in the net assets of the Endowment Foundation consists of the Association s interest in assets that have been previously transferred to the Endowment Foundation. Certain income from the Endowment Foundation is paid to the Association and gains (losses) are retained in the Endowment Foundation. The Association has no control over investment decisions regarding these assets and has no right to use any of these assets for any purposes; nor are these assets available under any circumstances to creditors of the Association. However, the Association s interest in the net assets of the Endowment Foundation is required by GAAP to be recorded on the books of the Association as temporarily and permanently restricted net assets. Income Only Interest in Perpetual Trusts The income only interest in perpetual trusts consists of investments held in trusts by outside trustees with the Association as the perpetual income beneficiary. Certain income from the perpetual trusts are paid to the Association and gains (losses) are retained by the perpetual trusts. The Association has no control over investment decisions regarding these assets and has no right to use any of these assets for any purposes; nor are these assets available under any circumstances to creditors of the Association. However, the Association s interests in the perpetual trusts are required by GAAP to be recorded on the books of the Association as a permanently restricted net asset. The carrying values of the beneficial interests in the perpetual trusts are reported at the estimated fair values of the perpetual trusts underlying investments. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. 9

12 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) C. Pledge Receivable, Net The pledge receivable is due as follows at June 30, 2015: Less than 1 year $ 200, years 600,000 More than 5 years - Total pledge receivable 800,000 Unamortized discount to adjust pledge to net present value (19,041) Net pledge receivable $ 780,959 The discount rate used by the Association to calculate the present value of the pledge receivable at June 30, 2015 was 1.63%. D. Property and Equipment Property and equipment consisted of the following at June 30: Land $ 746,101 $ 746,101 Building and building improvements 2,676,805 2,640,536 Furniture, fixtures and equipment 2,631,015 2,299,646 Construction in progress - 122,783 6,053,921 5,809,066 Accumulated depreciation (2,720,221) (2,194,893) Total property and equipment, net $ 3,333,700 $ 3,614,173 E. Note Payable In a prior year, the Association executed a loan agreement with a financial institution for the purchase of a warehouse. The loan agreement requires the Association to make monthly payments of approximately $4,400, including interest at the prime rate (3.25% at June 30, 2015). The maturity date of the note is October 19, The note payable is collateralized by the related warehouse. The future annual maturities of the note payable are as follows: 2016 $ 38, , , , ,395 Thereafter 209,393 Total note payable $ 416,635 10

13 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) F. Temporarily Restricted Net Assets Temporarily restricted net assets are designated as follows at June 30: Interest in the net assets of MPA $ 54,978,705 $ 56,671,862 Interest in the net assets of the Endowment Foundation 90,257,460 87,357,824 Time restricted 780,959 30,000 Other 1,278, ,129 Total temporarily restricted net assets $147,295,857 $144,962,815 The temporarily restricted interest in the net assets of the Endowment Foundation is comprised of the accumulated earnings in the following Funds: The Friends of Art Endowment Fund - This fund consists of investments, the income from which may only be used to acquire works of fine art. The General Operations Fund - This fund consists of investments, a portion of which may be used solely for the operations of the Association. The Anne Marion Endowment Fund - This fund consists of investments which may be used at the sole discretion of Anne Marion for the benefit of the Museum. The Burnett Foundation Endowment Fund - This fund consists of investments, the income from which may be used to acquire works of fine art and for the compensation of certain Association staff. The Sid W. Richardson Foundation Fund - This fund consists of investments, the income from which may be used for the operations of the Association and/or to acquire works of fine art. The Perry and Nancy Lee Bass Endowment Fund - This fund consists of investments which may be used for the capital maintenance and replacement of the building systems of the Modern Art Museum Building. The General Acquisitions Fund - This fund consists of investments, the income from which may only be used to acquire works of fine art. 11

14 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) G. Permanently Restricted Net Assets Permanently restricted net assets are designated as follows at June 30: Income only interest in perpetual trusts $ 28,914,723 $ 29,143,156 Interest in the net assets of the Endowment Foundation 12,350,000 12,350,000 Collections 2 2 Total permanently restricted net assets $ 41,264,725 $ 41,493,158 The income only interest in perpetual trusts consists of the following three trusts: In accordance with the will of Gwendolyn P. Tandy, the Gwen Tandy Art Trust was established to relieve temporary financial crises of the Association, including the acquisition of art. The Association, as the sole beneficiary of this trust, receives distributions from the trust s assets at the discretion of its trustee. The use of the trust s assets cannot be budgeted and must be judiciously controlled by its trustee. The carrying value of the Association's beneficial interest in this trust s assets was $2,119,546 and $2,164,918 at June 30, 2015 and 2014, respectively. The Benjamin J. Tillar Trust was established to provide for art and library acquisitions, maintenance, insurance and certain research expenses. At the trustee's sole discretion, the corpus may be invaded and utilized for building galleries and housing facilities. The Association, as the sole beneficiary of this trust, receives distributions from the trust s assets at the discretion of its trustee. The carrying value of the Association's beneficial interest in this trust s assets was $2,118,585 and $2,220,490 at June 30, 2015 and 2014, respectively. The Association became the beneficiary under four charitable trusts, Chloe A. Nail Trust, Jewel Nail Bomar Trust, William P. Bomar, Jr. Testamentary Trust and Nail/Bomar Trusts Joint Account, (collectively, the Bomar/Nail Trusts), in accordance with the will of William P. Bomar. The Bomar/Nail Trusts were established with the Association as a 50% beneficiary. The Association shares equally in the discretionary distributions made from the Bomar / Nail Trusts assets with an unrelated beneficiary. Effective October 2014, the Chloe A, Nail Trust, William P. Bomar, Jr. Testamentary Trust and Nail/Bomar Trusts Joint Account merged with the Jewel Nail Bomar Trust. As of the effective date, each of these trusts ceased to exist and were succeeded by the new trust (collectively, the Merger ). The terms of the Merger are administered in accordance with the terms of the former Jewel Nail Bomar Trust. The carrying value of 50% of the Association's beneficial interest in the Bomar/Nail Trusts assets was $24,676,592 and $24,757,748 at June 30, 2015 and 2014, respectively. 12

15 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) G. Permanently Restricted Net Assets continued The permanently restricted interest in the net assets of the Endowment Foundation is comprised of the following at June 30: Burnett Foundation Endowment Fund $ 5,000,000 $ 5,000,000 Sid W. Richardson Foundation Endowment Fund 5,500,000 5,500,000 General Acquisitions Fund 1,850,000 1,850,000 Total permanently restricted interest in the net assets of the Endowment Foundation $ 12,350,000 $ 12,350,000 H. Lease Commitments The Association leases office equipment for general and administrative purposes. Future minimum lease payments due on these operating leases at June 30, 2015 are approximately as follows: 2016 $ 24, , , , Thereafter 22 Total $ 53,705 I. Related Party Transactions The Association leases the Modern Art Museum Building from MPA for $10 per year under an operating lease arrangement that expires August 31, MPA was established to raise funds and to build the facility used by the Association. The Association received contributions of $3,178,301 and $3,849,793 from the Endowment Foundation to fund the acquisition of art and other operating expenses during the years ended June 30, 2015 and 2014, respectively. The Association made contributions of excess cash to the Endowment Foundation $21,889 during There were no such contributions made to the Endowment Foundation during

16 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) I. Related Party Transactions continued During 2015, certain members of the Association s management team traveled to Japan in relation to an ongoing project. The MPA Foundation reimbursed the Association for these travel expenses subsequent to June 30, As such, there is a related party receivable of approximately $54,000 recorded in accounts receivable as of June 30, The Association recorded receivables from the Endowment Foundation in the amount of $1,235,005 at June 30, 2014, for certain capital expenditures and maintenance expenses paid on the Endowment Foundation s behalf. There were no such receivables from the Endowment Foundation at June 30, As a condition of the Director of the Modern Art Museum s employment, she is required to live at the residence owned by the Museum Association and make the residence available to the Association from time to time as required by the board of trustees for special events. The Association is paying all care, maintenance, repair and upkeep expenses of the residence. J. Retirement Plan The Association maintains a defined contribution retirement plan that is qualified under Section 401(k) of the Internal Revenue Code. Under the plan, employees may voluntarily contribute a percentage of their pretax compensation to the plan, and the Association has defined and discretionary matching provisions. The plan covers all employees who have completed one year of service, which requires at least 1,000 hours, and have reached 21 years of age. Total contributions to the plan included in the expenses of the Association were approximately $273,000 and $237,000 for the years ended June 30, 2015 and 2014, respectively. K. Subsequent Events In preparing the consolidated financial statements, management has evaluated all subsequent events and transactions for potential recognition or disclosure through April 29, 2016, the date the consolidated financial statements were available for issuance. 14