(,c*_m Ameaica Cwnts on CPAso. Go,RD,oNHffi{ffiEtH WILLIAMSBURG AREA DESTINATION MARKETING COMMITTEE FINANCIAL REPORT

Transcription

1 WILLIAMSBURG AREA DESTINATION MARKETING COMMITTEE FINANCIAL REPORT For the year ended December Go,RD,oNHffi{ffiEtH CERTIFIED PUBLIC AccouruTerur (,c*_m Ameaica Cwnts on CPAso

2 CONTENTS INDEPENDENT AUDITOR'S REPORT r-2 FINANCIAL STATEMENTS Statements of financial position Statements of activities Statements of cash flows NOTES TO FINANCIAL STATEMENTS J SUPPLEMENTARY INFORMATION Schedule of functional expenses 10

3 GonnON F. CHnPPELL CEntrrrEo PUBLIc Accourutnrut INDEPENDENT AUDITOR'S REPORT cm America Counts on To the Board Williamsburg Area Destination Marketing Committee Williamsburg, Virginia I have audited the accompanying financial statements of the Williamsburg Area Destination Marketing Committee which comprise the statement of financial position as of December 3l, 2013 and 2012 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 relevanto the preparation and fair presentation of financial statements that are free of material misstatement. whether due to fraud or error. Auditor's Responsibility My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedureselecte 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, I express no such opinion. An audit also includes evaluating the appropriateness of accounting principles used and the reasonableness of significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Opinion In my opinion, the financial statements refemed to above present fairly, in all material respects, the financial position of the Williamsburg Area Destination Marketing Committee as of December 31, 2013 and2012, and the results of its activities and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. -t-

4 Other Matter My audit was conducted for the purpose of forming an opinion on the basic financial statements of the Williamsburg Area Destination Marketing Committee, taken as a whole. The schedule of functional expenses 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 basic financial statements and accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In my opinion, the information is fairly stated in all material respects in relation to the basic financial statements taken as a whole.,///ml July 31,

5 FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31" 2013 AND 2012

6 WILLIAMSBURG AREA DESTINATION MARKETING COMMITTEE STATEMENTS OF FINANCIAL POSITION As of December 31, 2013 and 2012 ASSETS CURRENT ASSETS Cash and cash equivalents Chesapeake Bank $1,470,026 $ 1,506,905 Accounts receivable 239, ,093 Total Assets $ 1,709,882 $ 1,840,998 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Vendor payables 32,184 25,572 NET ASSETS Unrestricted net assets 1,677,698 1,815,426 Total liabiliiles and net assets $ 1,709,882 $ 1,840,999 See independent audito/s report, The accompanying notes are an integral part of the financial statements.

7 WILLIAMSBURG AREA DESTINATION MARKETING COMMITTEE STATEMENTS OF ACTIVITIES For the year ended Decembqr 31, 2013 and 2012 CHANGES IN NET ASSETS Revenue and support Room tax City of Williamsburg James City County York County Private Investors Commissions Transition Fee lnterest Revenues and support Unrestricted Unrestricted $ 1,181,250 $ 1,231, , ,476 1,039,052 1,085, , ,313 60,820 54, ,000 2,027 2,608 3,838,809 3,79'1,286 Expenses Working Expense Support Expense General and Administrative Increase in net assets Net assets January 1, 3,131, , ,888 3,976,537 (137,728) 1,815,426 3,201, ,046 99,327 3,747,837 43,449 1,77',1,977 Net assets December 31. $_1.'qzzsg!. $l_,g]ff?q See independent auditor's report. The accompanying notes are an integral part of the financial statements. -4-

8 WILLIAMSBURG AREA DESTINATION MARKETING COMMITTEE STATEMENTS OF CASH FLOWS For the years ended December 31, 2013 and 2012 Cash flows from operating activities Increase in net assets Adjustments to reconcile change in net assets to net cash provided from operations (lncrease) in accounts receivable Increase (decrease) in accounts payable Net cash provided by operating activities $ (137,728) $ 43,449 94,237 (50,215) 6,612 23,074 (36,879) 16,308 Cash at beginning of period Cash at end of period 1,506,905 1,490,597 $ 1,470,026 $_lflqpgq See independent auditor's report. The accompanying notes are an integral part of the financial statements.

9 WILLIAMSBURG AREA DESTINATION MARKETING COMMITTEE NOTES TO FINANCIAL STATEMENTS December 31, 2013 and 2012 Note 1. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES Nature of Activities The Williamsburg Area Destination Marketing Committee (WADMC), an entity formed under Virginia Code Section (C), effective July 1,2004, was established to markethe Williamsburg Area as a visitor destination order to increase area visitation and lodging nights. ln conjunction with WADMC, the Marketing Resource Task Force (MRTF) was established to act as the marketing arm of the initiative, with WADMC acting as the governing body. The governing board consists of the following: The governing bodies of the City of Williamsburg, the County of James City, and the County of York shall each designate one of their members to serve as members of the Williamsburg Area Destination Marketing Committee. These three members of the Committee shall have two votes apiece. One member of the Committee shall be selected by the Board of Directors of the Williamsburg Hotel and Motel Association; one member of the Committee shall be from The Colonial Williamsburg Foundation and shall be selected by the Foundation; one member of the Committee shall be an employee of Busch Gardens EuropeAffater Country USA and shall be selected by Busch Gardens EuropeAtVater Country USA; one member of the Committee shall be from the Jamestown-Yorktown Foundation and shall be selected by the Foundation; one member of the Committee shall be selected by the Executive Committee of the Greater Williamsburg Chamber and Tourism Alliance; and one member of the Committee shall be the President and Chief Executive Officer of the Virginia Tourism Authority who shall serve ex officio. Each of these six members of the Committee shall have one vote apiece, The President of the Greater Williamsburg Chamber and Tourism Alliance shall serve ex officio with nonvoting privileges unless chosen by the Executive Committee of the Greater Williamsburg Chamber and Tourism Alliance to serve as its voting representative. The Executive Director of the Williamsburg Hotel and MotelAssociation shall serve ex officio with nonvoting privileges unless chosen by the Board of Directors of the Williamsburg Hotel and Motel Association to serve as its voting representative. The Greater Williamsburg Chamber and Tourism Alliance shall serve as the fiscal agent for WADMC with specific responsibilities to be defined in a contract between such two entities. The contract shall include provisions to reimburse the Greater Williamsburg Chamber and Tourism Alliance for annual audits and any other agreed-upon expenditure. The Williamsburg Area Destination Marketing Committee shall also contract with the Greater Williamsburg Chamber and Tourism Alliance to provide administrative support services as the entitieshall mutually agree. On September 12,2012, WADMC contracted with the Greater Williamsburg Area Chamber and Tourism Alliance to assume responsibility for development and implementation of the marketing plans. This contractual relationship replaced the MRTF volunteer group and relieved MRTF of its responsibilities following MRTF's completion and implementation of the 2013 Marketing Plan. -6-

10 Revenue recognition WILLIAMSBURG AREA DESTINATION MARKETING COMMITTEE NOTES TO FINANCIAL STATEMENTS December 31, 2013 and 2012 The Code of the Commonwealth of Virginia (Subsections and 3822) provides for the imposition of a transient occupancy tax to be collected by local municipalities. An additional transient occupancytax undercode section may be imposed bythe City of Williamsburg, James City County and York County, in the amount of $ 2 per room per night for the occupancy of any overnight guest. All revenues from the Tax shall be designated and expended solely for advertising the Historic Triangle area, which includes all of the City of Williamsburg and the counties of James City and York, as an overnight tourism destination by the members of the Williamsburg Area Destination Marketing Committee of the Greater Williamsburg Chamber and Tourism Alliance. WADMC recognizes revenue earned in the month the funds are received by the municipality and are approved for disbursement to WADMC. All other revenue from private contributions is recorded when received. Contributions are considered unrestricted unless specifically restricted by the donor. However, if the restriction is generally fulfilled in the same calendar year in which the contribution is received the Organization reports the contribution as unrestricted. Restrictions that carry-over for more than one time period are reported as temporarily restricted. lncome taxes WADMC was formed as an entity under the Code of Virginia Section (C) giving the designated municipal government the power to collect an additional transient occupancy tax from local transient hotel and motels. As an agency of the Commonwealth of Virginia, WADMC is exempt from Federal and state income taxes. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires the use of management's estimates. Note 2. CASH AND CASH EQUIVALENTS For financial statement purposes, the Organization considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents as of December 31, 2013 and 2012 consisted of the following: Generalfunds Chesapeake Bank $ 1.470,025 s Note 3. ACCOUNTS RECEIVABLE The per room per night lodging tax collected by the area Hotels/Motels is recoded as earned when the Municipality receives and accounts for the funds. Accounts receivable at December 31, 2013 and 2012 represent the lodging tax collected by each municipality during the months noted: -7-

11 WILLIAMSBURG AREA DESTINATION MARKETING COMMITTEE NOTES TO FINANCIAL STATEMENTS December 31, 2013 and 2012 Note 3. ACCOUNTS RECEIVABLE (Cont'd) City of Williamsburg - December James City County - November James City County - December York County - November York County - December $ 71,846 $ 86,348 75,634 23,658 25,922 68,458 71,814 72,714 71,087 Other accounts receivable ARES Commissions Total accounts receivable Note 4. CONTRACTUAL OBLIGATIONS 236, $ ,805 3,288 $_334J93 WADMC has entered into a contractual agreement with David Potter, sole proprietor, to act as coordinator of the marketing campaign. The term of the agreement commenced on January 1, 2013 and continues for twelve (12) consecutive months ending on the last day of December The agreement may be renewed for a period not to exceed (12) months, subjecto the written agreement of all of the parties. Contractual expense is shown in the statement of activities in the amount of $ 57,372 for2013 and $ 57,372tor2012. Note 5. CONCENTRATIONS Revenue and suoport The lodging tax collected by the three municipalities amounted to 77.5 o/o and 81.0o/o of WADMC's total support for 2013 and 2012 respectively. Contributions in support of WADMC's operations received from private organizations amounted to 17.Qo/o and 17.5o/o for 2Q13 and 2012 respectively. Cash As of December 31, 2013, cash on deposit with The Chesapeake Bank totaled $ 1,470,026 and $ 1,506,905 at December 31,2012. Cash on deposit exceeded the FDIC insured amounts by $ 1,220,026 for 2013 and $ 1,256,905 for Note 6. RELATED PARTIES Members of the Board of Directors of WADMC are either employees or officers of the private organizations who make annual contributions to the Organization. The amount of contributions from the private organizations is presented in the statements of activities in the amount of $ $ 652,413 for the year ended December 31, 2013 and $ 666,313 for the year ended December 91,

12 Note 7. SUBSEQUENT EVENTS Management has evaluated subsequent events through July 31,2014, the date on which the financial statements were available to be issued, There were no subsequent events which had an impact on the financial statements for the year ended December 31,

13 SUPPLEMENTARY IN FO RMATION

14 WILLIAMSBURG AREA DESTINATION MARKETING COMMITTEE SCHEDULE OF FUNCTIONAL EXPENSES For the year ended December 31, 2013 and 2012 Proqram Administrative 2Q13 Total 2012 Total Workinq Expenses Television Media $ 2,028,962 $ 2,028,962 g 2,046,275 Digital-Display 311, , ,507 Digital-Paid Search Print Public Relations Public Relations-DCl Outreach Public Relations-Travel Writer Postage 624,576 15, ,677 8,649 2,969 9, ,576 15, ,677 8,649 2,969 9, ,303 15, ,431 3,131,418 3,131,418 3,201,464 Support Expenses Television Television-Agency Services Television-Media Planning TV Traffic Digital Display Advertising Digital Paid Search Digital Website Management Digital-Web Hosting Ad Serving Ad Serving Research Martin Miscellaneous General and Administrative WADMC Director of Marketing Destination Coordinator Accounting Management Audit WADMC Website Transition Research Web Migration Miscellaneous 70,413 40, ,000 12,374 26,610 81,250 61,504 5,430 15,387 31,383 1, ,231 65,899 57,372 11,400 6, ,000 71,850 4, ,888 Total exoenses $ 3,685, ,888 70,413 40, ,000 12,374 26,610 81,250 61,504 5,430 15,387 31,383 1, ,231 65,899 57,372 11,400 6, ,000 71,850 4, ,888 $ 9p29{92 75,878 40, ,500 5,472 61,755 5,457 6,497 49,978 1, ,046 57,372 11,400 u,ru: 23,805 99,327 $_3147,837 See independent auditor's report. The accompanying notes are an integral part of the financial statements