Financial Statements and Independent Auditor's Report
Index Page Independent Auditor's Report 2 Financial Statements Statement of Financial Position 4 Statement of Activities and Changes in Net Assets 5 Statement of Cash Flows 6 7 1
Independent Auditor's Report To the Board of Trustees Jacob's Pillow Dance Festival, Inc. Report on the Financial Statements We have audited the accompanying financial statements of Jacob's Pillow Dance Festival, Inc. (a nonprofit organization), which comprise the statement of financial position as of December 31, 2015, and the related statements of activities and changes in net assets, and cash flows for the period December 1, 2014 to December 31, 2015, 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 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 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 auditors' 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 financial statements referred to above present fairly, in all material respects, the financial position of Jacob's Pillow Dance Festival, Inc. as of December 31, 2015, and the changes in its net assets and its cash flows for the period December 1, 2014 to December 31, 2015 in accordance with accounting principles generally accepted in the United States of America. 2
Correction of an Error As described in Note 11 to the financial statements, the December 1, 2014 beginning net assets have been restated as a result of the correction of errors in classification of net assets as well as failure to record certain accrued liabilities. Our opinion is not modified with respect to these matters. C Hartford, Connecticut March 20, 2017 3
Jacob s Pillow Dance Festival, Inc. Statement of Financial Position Current assets Cash $ 878,577 Unconditional promises to give 1,841,705 Grants receivable 15,180 Inventories 46,780 Prepaid expenses 18,900 Total current assets 2,801,142 Noncurrent assets Investments 13,297,560 Unconditional promises to give, net of current portion 1,950,869 Cash equivalents - restricted for endowments 1,138,425 Property and equipment, net 6,423,825 22,810,679 Total assets $ 25,611,821 Liabilities and Net Assets Current liabilities Accounts payable and accrued liabilities $ 275,275 Deferred revenue 24,005 Commitments Total current liabilities 299,280 Total liabilities 299,280 Net assets Unrestricted 10,950,163 Temporarily restricted 9,998,100 Permanently restricted 4,364,278 Total net assets 25,312,541 Total liabilities and net assets $ 25,611,821 See. 4
Jacob s Pillow Dance Festival, Inc. Statement of Activities and Changes in Net Assets Temporarily Permanently Unrestricted restricted restricted 2015 Revenues and support Ticket sales $ 2,359,381 $ - $ - $ 2,359,381 Tuition, room and board 229,423 - - 229,423 Production income 24,979 - - 24,979 Sales, advertising and other revenue 255,445 - - 255,445 Food and beverage revenue 402,020 - - 402,020 Donations, contributions and other grants 3,084,479 4,333,186 19,590 7,437,255 Special events, net 203,258 - - 203,258 Net assets released from restrictions 1,404,439 (1,404,439) - - Total revenue 7,963,424 2,928,747 19,590 10,911,761 Expenses Program expenses 5,095,349 - - 5,095,349 General and administrative expenses 1,259,571 - - 1,259,571 Fundraising expenses 525,921 - - 525,921 Total expenses 6,880,841 - - 6,880,841 Change in net assets from operations 1,082,583 2,928,747 19,590 4,030,920 Other expenses Net investment loss 24,219 70,644 94,863 Total other expenses 24,219 70,644-94,863 Change in net assets $ 1,058,364 $ 2,858,103 $ 19,590 $ 3,936,057 Beginning net assets, as originally stated $ 10,663,728 $ 1,783,852 $ 9,077,847 $ 21,525,427 Prior period adjustment (771,929) 5,356,145 (4,733,159) (148,943) Beginning net assets, as restated 9,891,799 7,139,997 4,344,688 21,376,484 Change in net assets 1,058,364 2,858,103 19,590 3,936,057 Net assets, end $ 10,950,163 $ 9,998,100 $ 4,364,278 $ 25,312,541 See. 5
Jacob s Pillow Dance Festival, Inc. Statement of Cash Flows Cash flows from operating activities Change in net assets $ 3,936,057 Adjustments to reconcile change in net assets to net cash provided by operating activities Depreciation 448,076 Net realized and unrealized loss on investments 1,056,350 Contribution restricted for long term purposes (310,543) Forgiveness of note payable (300,000) Changes in operating assets and liabilities Unconditional promises to give (3,639,255) Accounts receivable 39,477 Grants receivable 392,500 Inventories (33,542) Prepaid expenses 18,231 Cash - restricted 92,351 Accounts payable and accrued liabilities (13,091) Deferred revenue 1,816 Net cash provided by operating activities 1,688,427 Cash flows from investing activities Purchases of investments (1,910,061) Proceeds from sales of investments 964,340 Purchases of property and equipment (746,643) Net cash used in investing activities (1,692,364) Cash flows from financing activities Proceeds from contributions restricted for long-term purposes 290,953 Contributions restricted for endowment 19,590 Net cash provided by financing activities 310,543 Net increase in cash and cash equivalents 306,606 Cash and cash equivalents, beginning 571,971 Cash and cash equivalents, end $ 878,577 Supplemental cash flow information Cash paid for interest $ - Taxes paid $ - See. 6
Note 1 - Nature of activities and summary of significant accounting policies Nature of activities Founded in 1933, Jacob's Pillow Dance Festival, Inc. (the Organization ) is a nonprofit organization engaged in dance presentation, education and preservation. The Festival is a not-for-profit corporation organized under Chapter 180 of the laws of the Commonwealth of Massachusetts. On May 27, 2003 the Festival was designated a national historic landmark by the National Park Service, U.S. Department of the Interior. Basis of presentation The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The Organization reports information regarding its financial position and activities according to three classes of net assets: unrestricted, temporarily restricted and permanently restricted. They are described as follows: Unrestricted - Net assets that are not subject to explicit donor-imposed stipulations. Unrestricted net assets may be designated for specific purposes by action of the Board of Trustees. Temporarily restricted - Net assets whose use by the Organization is subject to either explicit donor-imposed stipulations or by operation of law that can be fulfilled by actions of the Organization or that expire by the passage of time. Permanently restricted - Net assets subject to explicit donor-imposed stipulations that they be maintained permanently by the Organization and stipulate the use of income and/or appreciation as either unrestricted or temporarily restricted based on donor-imposed stipulations or by operation of law. Cash and equivalents For the purpose of the statement of cash flows, the Organization considers all highly liquid investments purchased with an original maturity of three months or less when acquired to be cash equivalents. Cash equivalents restricted for endowments total $1,138,425 at December 31, 2015. Contributions and grants Unconditional promises to give are recognized as contribution revenue in the period received and as assets, depending on the form of the benefits received. Promises to give are recorded at net realizable value if expected to be collected in one year and at discounted present value if expected to be collected in more than one year. Management provides for probable uncollectible amounts through an allowance for uncollectible pledges. No provision has been made for uncollectible promises to give as of December 31, 2015, as management considers all pledges to be currently collectible. Conditional promises to give are not recognized until they become unconditional, that being when the conditions upon which they depend are substantially met. Grants that are considered exchange transactions are deemed to be earned and reported as revenue and support when the Organization has expended funds which meet the specific restrictions. Unexpended amounts are classified as deferred revenue in the accompanying financial statements. 7
Revenue recognition Revenues consist of ticket sales, tuition, concession sales, advertising, facility rental fees and other items. Revenue is recognized when services are provided. Fees received in advance are deferred until the service is provided. Membership income is recorded when received. Retail shop income is recorded when products are sold. Inventory Inventory, which consists primarily of merchandise held for resale, is stated at the lower of cost or fair value. Cost is determined by the first-in, first-out method (FIFO). Collection The Organization's collection has not been capitalized or reported in the statements of financial position. Each of the items is cataloged, preserved and cared for. Costs of purchasing collection items are recognized as an expense in the year of acquisition; proceeds from sale and insurance recoveries are recognized as revenue in the year of sale or loss. Investments The Organization reports investments at their current fair values and reflects any gains or losses, including unrealized amounts, in the statements of activities. Gains and losses are considered unrestricted unless restricted by donor stipulation or law. Nonmonetary investments received as gifts are immediately sold and recorded at the realized value. Advertising The Organization expenses advertising costs as incurred. Advertising expense was $83,871 for the thirteen months ended December 31, 2015. Property and equipment Property and equipment are stated at cost or, if donated, at their approximate fair value on the date of donation. Depreciation is provided for on a straight-line basis over the estimated useful lives of the assets. The estimated useful lives are as follows: Land and improvements Buildings and improvements Furniture and equipment Vehicles 5-40 years 10-40 years 3-25 years 3-5 years Expenditures for repairs and maintenance are charged to expense as incurred. For assets sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in the statements of activities. Impairment of long-lived assets The Organization reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In performing a review for impairment, the Organization compares the carrying value of the assets with their estimated future undiscounted cash flows. If it is determined that an impairment has occurred, the loss would be recognized during that period. The impairment loss is calculated as the difference between the asset carrying values and fair values. Fair value may be based on the present value of estimated net cash flows or comparable market values, giving consideration to recent operating performance and pricing trends. The Organization does not believe that any impairment occurred related to its long-lived assets. 8
Functional allocation of expenses The costs of providing various programs and other activities have been summarized on a functional basis in the statements of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited. Income taxes The Organization is exempt from federal and state corporation income taxes under the provisions of Internal Revenue Code Section 501(c)(3). However, certain operations of the Organization may qualify as unrelated business activities and to the extent that these activities generate income after expenses, such income will be subject to federal and state taxes. No tax was incurred for the thirteen months ended December 31, 2015. The Organization has no unrecognized tax benefits at December 31, 2015. The Organization's federal information returns prior to fiscal year 2012 are closed and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. If the Organization has unrelated business income taxes, it would recognize interest and penalties associated with any tax matters as part of the income tax provision and include accrued interest and penalties with the related tax liability in the statements of financial position. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Note 2 - Concentrations and other risks and uncertainties Concentrations of credit risk with respect to grants receivable are limited to contractual agreements with various organizations. Unconditional promises to give are limited to pledges from various foundations, businesses and individuals. The Organization maintains its cash and cash equivalents with high-credit quality financial institutions. At times, such amounts may exceed federally insured limits. The Organization invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market and credit risks. Due to the nature of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and those changes could materially affect the amounts reported in the statements of financial position. Management is of the opinion that the diversification of its invested assets among various asset classes should mitigate the impact of changes in any one class. 9
Note 3 - Investments The Organization's investments at December 31, 2015 are presented at fair value and consist of the following: Cash and money markets $ 53,846 Equity mutual funds 5,979,665 Fixed income mutual funds 3,688,528 Global balanced mutual funds 1,280,383 Alternative strategies 2,295,138 Total $ 13,297,560 The following schedule summarizes investment return for the thirteen months ended December 31, 2015: 2015 Investment loss $ 961,487 Net realized gain 123,848 Unrealized loss (1,180,198) Investment return in excess of operating support $ (94,863) Investment returns are classified in the statements of activities based on the purpose of the fund. Investment returns on donor restricted funds are classified as temporarily restricted until the restriction criterion is met. Investment income included in operating revenues reflects interest and dividends earned on unrestricted investments. Note 4 - Fair value measurements The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to unobservable inputs (level 3). The three levels of the fair value hierarchy under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 820 are described as follows: Level 1: Level 2: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Organization has the ability to access. Inputs to the valuation methodology include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; inputs that are derived principally from or corroborated by observable market data by correlation or other means. 10
If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques maximize the use of relevant observable inputs and minimize the use of unobservable inputs. Fair values of assets measured on a recurring basis at December 31, 2015 are as follows: Fair value measurements at reporting date using Quoted prices in active markets Significant for identical other Significant assets/ observable unobservable Fair liabilities inputs inputs value level 1 level 2 level 3 Cash and money markets $ 53,846 $ 53,846 $ - $ - Equity mutual funds US Large Cap 3,537,284 3,537,284 - - Global balanced funds 2,442,381 2,442,381 - - Fixed income mutual funds US 3,031,333 3,031,333 - - International 657,195 657,195 - - Global balanced mutual funds 1,280,383 1,280,383 - - Alternative strategies 2,295,138 - - 2,295,138 $ 13,297,560 $ 11,002,422 $ - $ 2,295,138 The following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the valuation methodologies used at December 31, 2015. Mutual Funds - Investments in equity, fixed income and global balanced mutual funds are valued using market prices on active markets (level 1). Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Mutual funds are valued at the daily closing price as reported by the fund. Mutual funds held by the Organization are open-end mutual funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily net asset value ( NAV ) and to transact at that price. The mutual funds held by the Organization are deemed to be actively traded. Alternative Strategies - The alternative strategies fund invests primarily in equity and debt securities of both US and foreign issuers. There may also be investments in equity options, warrants, commodity contracts, financial futures, stock market index futures, credit default contracts and swaps and other derivative contracts for hedging and nonhedging purposes. The fund does not have any observable public or over-the-counter markets for the Organization s ownership interests in the fund. Their estimated fair value is provided by the funds management and may not necessarily represent the amounts that will be ultimately realized through 11
distribution, sale or liquidation of the investments. As the estimated fair value was provided by a third party without adjustments, the Organization is not required to provide certain quantitative disclosures regarding the valuation methods used because they were unobtainable. The complexity associated in converting the underlying NAV to the Organization s ownership interest is a fund management estimate which is considered a level 3 input. The preceding methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Organization believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The Organization's policy is to recognize transfers in and transfers out as of the actual date of the event or change in circumstance that caused the transfer. There were no transfers in 2015. The following table sets forth a reconciliation of beginning and ending balances of assets within the level 3 fair value hierarchy: Alternative strategies Beginning Gains/ Ending balance Additions Distributions losses balance $ 2,200,421 $ - $ - $ 94,717 $ 2,295,138 The net change in unrealized gains/losses for investments still held at December 31, 2015 was a loss of $94,717. Note 5 - Promises to give Unconditional promises to give as of December 31, 2015 are due to be collected as follows: 2015 Amounts due Within one year $ 1,841,705 One to five years 2,111,434 3,953,139 Less allowance for uncollectible pledges - Less unamortized discount (3%) (160,565) $ 3,792,574 12
Note 6 - Property and equipment consisted of the following: 2015 Land and improvements $ 814,298 Buildings and improvements 10,137,128 Furniture and equipment 1,855,619 Vehicles 125,643 Total 12,932,688 Accumulated depreciation 6,508,863 Property and equipment, net $ 6,423,825 Depreciation expense was $420,720 for the thirteen months ended December 31, 2015. Note 7 - Temporarily restricted net assets Temporarily restricted net assets are comprised of the following: 2015 Earnings from perpetual endowment available for appropriation $ 5,285,501 Restricted by time 3,550,149 Strategic initiatives 266,382 Capital improvements 791,592 Build capital 104,476 Total temporarily restricted net assets $ 9,998,100 Net assets released from restrictions for the thirteen months ended December 31, 2015 consisted of the following: 2015 Program operations $ 383,610 Restricted by time 333,333 Strategic initiatives 18,000 Capital improvements 474,166 Build capital 195,330 Total $ 1,404,439 Note 8 - Endowments Board designated The Board of Trustees had designated certain unrestricted net assets to fund the Neil Chrisman Fund to Support International Dance and the Ella Baff Artistic Initiative Fund as endowment funds to support the mission of the Organization. Since the funds resulted from an internal designation and are not donor-restricted, the funds are classified and reported as unrestricted net assets. 13
Funds with deficiencies From time to time, the fair market value of assets associated with individual donor-restricted endowment funds may fall below the level that the donor or the Massachusetts Chapter 180A Uniform Prudent Management of Institutional Funds (MA UPMIFA), requires the Organization to retain as a fund of perpetual duration. In accordance with accounting principles generally accepted in the United States of America, deficiencies of this nature are reported in unrestricted net assets. There were no deficiencies as of December 31, 2015. Investment return objectives, risk parameters and strategies The Organization has adopted investment and spending policies, approved by the Board of Trustees, for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment funds while also maintaining the purchasing power of those endowment assets over the long-term. Accordingly, the investment process seeks to achieve an after-cost total real rate of return, including investment income as well as capital appreciation, which exceeds the annual distribution with acceptable levels of risk. Strategies employed to achieve objectives Endowment assets are invested in a well-diversified asset mix that is intended to result in a consistent inflation-protected rate of return that has sufficient liquidity to make an annual distribution of up to 5%, while growing the funds if possible. Actual returns in any given year may vary from this amount. Investment risk is measured in terms of the total endowment fund; investment assets and allocation between asset classes and strategies are managed to not expose the fund to unacceptable levels of risk. Spending policy and how the investment objectives relate to spending policy The Board follows a spending policy to utilize a portion of the net asset value of the investment portfolio to support the annual operating budget of the Organization. The present goal of the investment of the Organization's endowment funds ( the Fund ), including the General Endowment Fund, the Scholarship Endowment Fund and the Doris Duke School Endowment Fund, is to achieve a consistent inflation-protected rate of return that has sufficient liquidity to make an annual distribution of up to 5% ("Payout Objective"). The earnings of the Fund will be measured over a rolling period of twelve consecutive calendar quarters prior to the quarter in which any distribution is made. During the final quarter of the Organization s fiscal year, the Finance Committee, in consultation with the Investment Committee, will determine whether and how much, if any, earnings on the General Endowment Fund are available for distribution. The Financial Committee, in consultation with the Investment Committee, will also review the Payout Objective annually, with appropriate reference to any relevant provisions of the Massachusetts General Laws pertaining to the spending of endowment earnings. Endowment The Organization's endowment includes funds designated by the Board of Trustees to function as endowments. As required by FASB ASC 958-205, Presentation of Financial Statements, net assets associated with endowment funds, including funds designated by the Board of Trustees to function as endowments, are classified and reported based on the existence or absence of donor-imposed restrictions. Interpretation of relevant law MA UPMIFA, which except for gift instruments stating otherwise, allows an organization to spend below the funds historical dollar value and does away with the 7% spending limitation. It sanctions application of a reasonable spending rate to all endowment funds. 14
The Board of Trustees of the Organization has interpreted the MA UPMIFA as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the Organization classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time of the accumulation is added to the fund. In accordance with MA UPMIFA, the Organization considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds: (1) the duration and preservation of the various funds, (2) the purposes of the donor-restricted endowment funds, (3) general economic conditions, (4) the possible effect of inflation and deflation, (5) the expected total return from income and the appreciation of investments, (6) other resources of the Organization, and (7) the Organization's investment policies. Endowment net asset composition by type of fund at December 31, 2015: Temporarily Permanently Unrestricted restricted restricted Total Donor-restricted endowment funds $ - $ 5,285,501 $ 4,364,278 $ 9,649,779 Board-designated endowment funds 441,750 - - 441,750 $ 441,750 $ 5,285,501 $ 4,364,278 $ 10,091,529 15
Changes in endowment net assets for the thirteen months ended December 31, 2015: Temporarily Permanently Unrestricted restricted restricted Total Endowment net assets, December 1, 2014, as originally stated $ - $ - $ 9,077,847 $ 9,077,847 Reclassification - prior period adjustment 144,984 5,356,145 (4,733,159) 767,970 Endowment net assets, December 1, 2014, as restated 144,984 5,356,145 4,344,688 9,845,817 Contributions 300,000-19,590 319,590 Investment return Investment income 31,858 695,929-727,787 Net depreciation - realized and unrealized (35,092) (766,573) - (801,665) Appropriation of endowment assets for expenditure - - - - Endowment net assets, December 31, 2015 $ 441,750 $ 5,285,501 $ 4,364,278 $ 10,091,529 Note 9 - Long term debt On March 12, 2013 the Organization received a $300,000 program-related investment (loan) from the Mertz Gilmore Foundation to cover expenses associated with the purchase of the property at 549 George Carter Road. The loan was offered interest free with repayment to begin in December 2016. The Mertz Gilmore Foundation offered a payment reduction plan, in which the Organization could offset up to 100% of the loan by leveraging new dollars through donor incentives such as matching grants, challenge grants, or a planned giving campaign. The Organization met the matching requirements and the loan was fully forgiven during the thirteen month period ended December 31, 2015. 16
Note 10 - Pension plan On October 1, 2015, the Organization adopted a 403(b) deferred compensation plan for employees. Employees who work at least 20 hours per week are eligible to participate in elective deferrals. The organization may match a portion of the employee s elective deferrals for employees over the age of 21 who have at least one year of service with the Organization. Employer contributions vest on a 2-6 year graded schedule. There were no matching contributions made for the thirteen months ended December 31, 2015. Note 11 - Prior period adjustment The Organization determined that its financial statements for the year ended November 30, 2014 were misstated. The Organization did not properly accrue for certain payroll related liabilities as of November 30, 2014. Additionally, the Organization obtained additional gift documentation to clarify donor intent on certain gifts. This process identified some gifts that were not classified properly based on donor restrictions. In addition, unspent earnings on permanently restricted endowments were incorrectly classified as permanently restricted. The December 1, 2014 net assets have been reclassified as follows: As previously reported As restated Change Unrestricted Undesignated $ 7,625,401 $ 6,708,488 $ (916,913) Board designated 3,038,327 3,183,311 144,984 10,663,728 9,891,799 (771,929) Temporarily restricted 1,783,852 7,139,997 5,356,145 Permanently restricted 9,077,847 4,344,688 (4,733,159) $ 21,525,427 $ 21,376,484 $ (148,943) Note 12 - Subsequent event Management has evaluated subsequent events through March 20, 2017, the date the financial statements were available to be issued. On March 18, 2016, the Organization entered into a lease agreement providing a third party the right to the use of its restaurant facilities during the festival. The Organization previously managed its restaurant facilities internally. The term of the lease was June 19, 2016 and terminated on September 2, 2016. No rent was required under the lease. However, the lessor agreed to provide the Organization s employees a discount of 10% for all food, except alcohol, and a 20% discount for all event catering. On February 24, 2016, the Organization entered into a lease agreement providing a third party the right to the use of its café and concession stand during the festival. The Organization previously managed its café and concession stand internally. The term of the lease was June 15, 2016 and terminated on August 28, 2016. No rent was required under the lease. However, the lessor agreed to provide the Organization s employees a discount of 10% for all food, except alcohol, and a 20% discount for all event catering. 17