ACADEMY OF SCIECE FIACIAL STATEMETS DECEMBER 31, 28
ACADEMY OF SCIECE DECEMBER 31, 28 COTETS IDEPEDET AUDITORS' REPORT 1 h&c. FIACIAL STATEMETS Statemts of Financial Position 2 Statemts of Activities 3-4 Statemts of Cash Flows 5 Statemts of Functional Expses 6-7 otes to Financial Statemts 8-12
an AOA BERGMA. SCHRAIER&CO. AP A PROFESSIOAL CORPORATIO CERTIFIED PUBLIC ACCOUTATS 9666 Olive Blvd., Suite 71 St. Louis, Missouri 63132-326 (314) 432-22 (8) 627-22 FAX (314) 432-64 www.bergman-schraier.corn IDEPEDET AUDITORS' REPORT Board of Directors Academy of Scice We have audited the accompanying statemts of financial position of the Academy of Scice as of December 31, 28 and 27, and the related statemts of activities, cash flows and functional expses for the years th ded. These financial statemts are the responsibility of the Academy of Scice's managemt. Our responsibility is to express an opinion on these financial statemts based on our audits. We conducted our audits in accordance with auditing standards gerally 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 statemts are free of material misstatemt. An audit includes examining, on a test basis, evidce supporting the amounts and disclosures in the financial statemts. An audit also includes assessing the accounting principles used and significant estimates made by managemt, as well as evaluating the overall financial statemt prestation. We believe that our audits provide a reasonable basis for our opinion. In our opinion the financial statemts referred to above prest fairly, in all material respects, the financial position of the Academy of Scice as of December 31, 28 and 27, and the changes in its net assets and cash flows for the years th ded in conformity with accounting principles gerally accepted in the United States of America. St. Louis, MO May 29, 29 Be49mda, &Aiwa e a., p.e. Members of the American Institute of Certified Public Accountants, the Missouri Society of Certified Public Accountants, and the Private Company Practice Section of the American Institute of Certified Public Accountants.
ACADEMY OF SCIECE STATEMETS OF FIACIAL POSITIO DECEMBER 31, 28 AD 27 ASSETS 28 27 CURRET ASSETS Cash and equivalts $ 16,834 $ 79,938 Accounts receivable 2,675 1,475 Pledge receivable 125 5 Pledge receivable - rt 4,668 4,668 Prepaid expses 6,18 6,443 Total Currt Assets 156,482 129,24 IVESTMETS 48,14 74,16 PLEDGE RECEIVABLE - RET 83,194 843,862 EQUIPMET AD IMPROVEMETS 3,968 321,428 TOTAL ASSETS $ 1,668,784 $ 1,998,42 LIABILITIES AD ET ASSETS CURRET LIABILITIES Accounts payable $ 82,59 $ 76,127 Accrued payroll 14,76 14,68 Accrued compsated absces 11,212 11,339 Total Currt Liabilities 18,562 12,146 ET ASSETS Unrestricted 644,31 942,194 Temporarily restricted 93,862 944,53 Permantly restricted 12,5 9,55 Total et Assets 1,56,222 1,896,274 TOTAL LIABILITIES AD ET ASSETS $ 1,668,784 $ 1,998,42 The accompanying notes should be read in conjunction with the financial statemts. - 2 -
ACADEMY OF SCIECE STATEMET OF ACTIVITIES FOR THE YEAR EDED DECEMBER 31, 28 Temporarily Restricted Permantly Restricted Unrestricted Total SUPPORT, REVEUE, AD IVESTMET LOSS Public Support Grant revue $ 168,23 $ 6, $ $ 228,23 Contributions 46,92 2,5 48,592 Membership dues 113,726 113,726 Donated goods and services 4,435 4,435 Total Public Support 368,483 6, 2,5 43,983 Revue and Investmt Loss Special evts 86,37 86,37 Investmt loss (239,111) (239,111) Other income 671 671 Total Revue and Investmt Loss (152,43) (152,43) et assets released from restrictions 1,668 (1,668) Total Support, Revue, and Investmt Loss 316,748 (4,668) 2,5 278,58 EXPESES Progam services 446,848 446,848 Managemt and geral 64,94 64,94 Fund raising 12,844 12,844 Total Expses 614,632 614,632 ET ASSETS Change in et Assets (297,884) (4,668) 2,5 (336,52) Beginning of the year 942,194 944,53 9,55 1,896,274 End of year $ 644,31 $ 93,862 $ 12,5 $ 1,56,222 The accompanying notes should be read in conjunction with the financial statemts. - 3 -
ACADEMY OF SCIECE STATEMET OF ACTIVITIES FOR THE YEAR EDED DECEMBER 31, 27 Temporarily Restricted Permantly Restricted Unrestricted Total SUPPORT, REVEUE, AD IVESTMET ICOME Public Support Grant revue $ 141,169 $ 6, $ $ 21,169 Contributions 27,17 1,8 28,97 Membership dues 16,25 16,25 Donated goods and services 38,474 38,474 Total Public Support 312,955 6, 1,8 374,755 Revue and investmt Income Special evts 82,957 82,957 Investmt income 55,482 55,482 Other Income 1,927 1,927 Total Revue and Investmt Income 14,366 14,366 et assets released from restrictions 1,668 (1,668) Total Support, Revue, and Investmt Income 553,989 (4,668) 1,8 515,121 EXPESES Program services 456,44 456,44 Managemt and geral 55,917 55,917 Fund raising 16,765 16,765 Total Expses 618,726 618,726 ET ASSETS Change in et Assets (64,737) (4,668) 1,8. (13,65) Beginning of the year 1,6,931 985,198 7,75 1,999,879 End of year $ 942,194 $ 944,53 $ 9,55 $ 1,896,274 The accompanying notes should be read in conjunction with the financial statemts. - 4 -
ACADEMY OF SCIECE STATEMETS OF CASH FLOWS FOR THE YEARS EDED DECEMBER 31, 28 AD 27 28 27 OPERATIG ACTIVITIES Change in net assets $ (336,52) $ (13,65) Adjustmts to reconcile change in net assets to net cash used in operating activities: Depreciation 24,459 24,88 Realized and Unrealized (gains) losses on investmts 264,56 (25,956) (Increase) Decrease in operating assets: Accounts receivable (1,2) 565 Pledges receivable 375 21,625 Pledge receivable - rt 4,668 4,668 Prepaid expses 264 (444) Increase (Decrease) in operating liabilities: Accounts payable 6,463 15,375 Accrued payroll 8 2,425 Accrued compsated absces (127) 3,288 et Cash Used in Operating Activities (51) (21,251) IVESTIG ACTIVITIES Proceeds from sales of investmts 5, 841,572 Investmts bought (18,595) (832,855) Equipmt purchased (3,999) (8,897) et Cash Provided by (Used in) Investing Activities 27,46 (18) CASH AD EQUIVALETS et increase (decrease) 26,896 (21,431) Beginning of year 79,938 11,369 End of year $ 16,834 $ 79,938 SUPPLEMETAL IFORMATIO on-cash Operating Activities: Revues from in-kind contributions recorded in the statemts of activities with an offsetting amount to the respective expse accounts $ 81,13 $ 79,142 The accompanying notes should be read in conjunction with the financial statemts. - 5 -
V) a.? 1 y E- V) in cn 7 z cn in - ', tir; r. 44 WI CA.1. n n ssr,c) In - Ge/ CO. V. O CO fl,c,.-.--. C \ in. co O O.1. m t,45. et, eq. n 'et 1 ni 1.. ' t. n In In I. 1/-1. 1.--- et, CT In. et 1 =or n In tr.) O %. rt tfl et. et.. dr co /, tan CO. et. n err et. 1.... L a.--.. nt.- VD CO el, O t- S o 'et t d d te, *--.C?. 4. cei e E e.5) "za de p.1. OO W. CI C. an co. D 4.1. / an, vzt 4 m 4_ de mzn -1 vz.., cc Ci O el. et m al! E- 2 le) Vt 4,.--. et oo co.--, I---. VI 1 M O vl I. ct.. r-1 et I--1 '7, ti. r I. 1/4.. el S to de co (--- `O.r - --, 'I' cr.--, n.-, ev ' 4n dr 4, O P "71- I-- `,:t al el. tn. Tit O 1..--. ed. In r ' cl cn ' cr. cr,.. / M P 14 t,t) r... VD V> - CID ei "te trn. I., in et O,r.Tr a cc, nsa ol to r cal >1 ' t:t U 41 64 5.9 4 Z III z (-) P4 z 14 2 rd ' S te,.. e. 1- O. t Os t-- ' 3 Cr. I M Ci 2 v.. rx1 o S In 1 S z E. '2 Cdi 44 e < W. CO F ton P O Cn in VI el I-- w c' et o. co!. n - F el co. cc q. et V) < CA LV. c/a et e t V1 on O / / I--. tel e. I.-.. in C in, vl ( In r- el.11 et 1. I-- I-- O CV an sr) M _fl el to. S n de n,..! in.-..e. a'. a. S ' n g.1 CO P n n (- qq O 4 In /-. 4 47; ' ', CO O O Ci O. 41. co vl Ci O r4 4 so In 3.s.T5 2 :a. 2 74 5 vz,2 2 _s to.= z et co, ' M, in. 1-. ". --..1--- ' e to P WI 1 4. VI 1-..; I de -, _..1 tn Lel - so
38 ece op 4 a: in t--- CI O S S et. co 'OO 1 tn in 1 O, er er es I3. et 1 It nie / in io 1. `. co - et el '-' et r- t et c.. r... I'.- 1. co, te, ca.5 r, 3 to E2 1 Emc, GO cn c c e 4g ce E 2 CO -4 ltr I O Ie. oo co to. I"- CC. n et o. Cs r--; CO I-- O. _ - DO. 1...6 sir c et. in -, - S S eet.. -4 ' n CD ni. O in. S S -:. --1 '.- vl - C4,--, ' et '.-4 co i In - a, in c,.. 1, oo., ēi ' 1-1. 1 1 -' S Ce. S -? - n.--.. to <4. in, ' ni. 1 - O DO -.4..-. s e IS S -! 3-2 g ; Vt at S. r e.. t-- Ct E 8 1 a cs, t '...- CP CI..4.... --4 Lin "t - r---,-, '. 3/4-, o r-- Crs 1.. S S et O n el. S.. S S S -' ea 1 CI. in,.., t-- --..........-. r- t- 1. e 1/4 Ch el s ri,,,. - n ' e. - '... 1. tei O.... r-- Os n VI (I) a t.4 " I-- ' OC CI... ' ' O in ' ' tn r-- '.-s 1 ' O ' z p n `..... tri (--. ci, 4 VI d'.--..--. 'Et co PG U p4.e A 122. cc ae Z < u ' C:' ' as Lel 1 1 E Os Os cn t er".. O er, ntcc.. as Crs Pg. U n C.4 ti --. =o z.= r- o g ;4 ' ' CO ' 1 1- x co 3 ' ' n ' tn... ' '.r, Z.5 1-- Cri...,, t-- CI ' C.4 ' ' --. ' cc DO CP 1 nr co r oo i. -, sir cd; S - - '6 >. c2-9.,.4 U >" b.) 41 F g C.4 ' '..1. ' ' 'JD t-- vl ' ' '.1. ' '. CO `4, -n f -- -. O. ooco.-.. 5. cr S.- ea es3 ci o.7 ct cn - ' VD l'.. n. 4.--... t... c..,.1. 1... 4. 6. - r--- 1 n C.4.,,,.. sr- s trn r-... e CO,... CC lel el, 1 / n sa Ott On n S in -._. CS IS 4,1 Vt --. op In 8. 14 4/3 ' - ier, CI rt el ' -- ' ' ' 1 CI ul. eq.--i =...,,.1. ' '. - ' n,, 69
ACADEMY OF SCIECE OTES TO FIACIAL STATEMETS DECEMBER 31, 28 AD 27 1. ATURE OF ACTIVITIES AD SUMMARY OF SIGIFICAT ACCOUTIG POLICIES ature of Activities The Academy of Scice (Academy/Organization), a not-for-profit agcy, dedicates their efforts to improve scitific literacy in the St. Louis region. Summary of Significant Accounting Policies The following summary of significant accounting policies of the Academy is prested to assist in the understanding of the Organization's financial statemts. The financial statemts and notes are represtations of the Academy's managemt, who is responsible for their integrity and objectivity. Basis of Accounting The financial statemts of the Organization are prepared on the accrual basis of accounting. Cash and Equivalts For the purpose of the statemts of cash flows, the Organization considers certificates of deposit with a maturity of three months or less to be cash equivalts. The Academy maintains its cash deposits at high quality financial institutions. Balances, at times, may exceed federally insured limits. Managemt believes no risk of loss exists. Revue Recognition Pledges, including unconditional promises to give in future periods, are recognized as revues in the period the pledge is received. Conditional pledges, which depd upon specific future and uncertain evts, are recognized as revue wh the conditions upon which they depd are substantially met. All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. Unconditional promises to give cash and other assets are accrued at estimated fair value at the date each promise is received. Gifts are reported as temporarily or permantly restricted support if they are received with donor's stipulations that limit the use of the donated assets. Wh a donor's restriction is satisfied, temporarily restricted net assets are released and reported as an increase in unrestricted net assets. The Organization's policy is to record restricted contributions as unrestricted if the restriction is met within the reporting period. Gifts of long-lived assets received without stipulation are also recorded as unrestricted support. - 8 -
Grants are recognized as unrestricted revue to the extt expses have be incurred under the terms of the respective grant agreemts. Expses are reported as decreases in unrestricted net assets. Investmt income (loss) is reported as an increase or decrease in unrestricted net assets unless its utilization is restricted by donor stipulation or by law. et Asset Classifications The financial statemts are prepared to focus on the Organization as a whole and to prest balances and transactions according to the existce or absce of donorimposed restrictions. This is accomplished by classifying beginning net assets and currt year transactions into three classes of net assets: unrestricted, temporarily restricted, or permantly restricted. Unrestricted et Assets et Assets over which the Board of Directors has discretionary control. Designated amounts represt those revues the Board set aside for a particular purpose. Temporarily Restricted et Assets et assets subject to donor-imposed stipulations that may or may not be met by actions of the Organization and/or the passage of time. After the donor-imposed time or purpose restriction is satisfied, temporarily restricted net assets are reclassified to unrestricted net assets and reported within the statemt of activity as net assets released from restrictions. Permantly Restricted et Assets et assets subject to donor-imposed stipulations requiring that they be maintained permantly by the Organization. Gerally, the donors of these assets permit the Organization to use all or part of the income earned on related investmts for specific purposes. Accounts Receivable The Organization states accounts receivable at the amount managemt expects to collect from individual balances outstanding at year d. Pledges Receivable Legally forceable pledges are recorded as receivable in the year made. Managemt expects to collect all pledges receivable within approximately one year; therefore, they did not consider an allowance for uncollectible pledges necessary as of December 31, 28 and 27, respectively. - 9 -
Investmts The Organization accounts for investmts under the provisions of the Statemt of Financial Accounting Standards o. 124, Accounting for Certain Investmts Held by ot-for Profit Organizations (FASB 124). Investmts in equity and debt securities are measured at fair value in the statemt of financial position. Investmt income or loss (including realized/unrealized gains and losses on investmts, interest, and dividds) is included in the statemt of activities as increases or decreases in unrestricted net assets unless the income or loss is restricted by donor or law. Equipmt and Improvemts Equipmt and improvemts are recorded at cost. Donated equipmt is recorded at the fair market value at the date of the donation. Additions and replacemts are capitalized in the period they are placed in service. Maintance and repairs, which do not improve or extd the lives of the respective assets, are charged against earnings. Depreciation is provided on a straight-line basis over the estimated lives of the respective assets ranging from three to twty five years. Functional Allocation of Expses The costs of providing various programs and other activities have be summarized on a functional basis in the statemts of functional expses. Accordingly, certain costs have be allocated among the program services, managemt and geral, and fund raising. Costs common to several functions are allocated using various statistical bases. Use of Estimates The preparation of financial statemts in conformity with gerally accepted accounting principles requires managemt to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statemts and the reported amounts of revues and expses during the reporting period. Actual results could differ from those estimates. Donated Services Donated services are recorded as public support only if they create or hance nonfinancial assets, require specialized services, or represt an integral part of the Organization's programs A substantial number of unpaid volunteers contributed their time to develop the Academy's program services and fiindraising campaigns. The value of these services are not reflected in the financial statemts since they are not susceptible to an objective measuremt of their valuation. Income Tax Status The Academy remains tax-exempt under Section 51(c)(3) of the Internal Revue Code. As such, the Organization can only be taxed on the income from any activities unrelated to its charitable purposes. The Organization did not participate in unrelated business activities for the years ded December 31, 28 and 27; therefore the statemts do not include a provision for income taxes. -1-
28 27 2. IVESTMETS Investmts consist of publicly traded mutual funds. Cost basis $ 721,174 $ 692,818 Market value $ 48,14 $ 74,16 Interest and dividds $ 25,449 $ 29,526 Realized and unrealized gains (losses), net (264,56) 25,956 Total Investmt Income (Loss) $ (239,111) $ 55,482 3. EQUIPMET AD IMPROVEMETS Equipmt $ 68,93 $ 64,94 Improvemts 341,46 341,46 49,553 45,554 Accumulated depreciation 18,585 84,126 et Book Value $ 3,968 $ 321,428 4. TEMPORARILY RESTRICTED ET ASSETS Temporarily restricted net assets available for the following activities at December 31, 28 and 27: Scice fair program $ 6, $ 6, Pledge receivable - rt 843,862 884,53 Total Temporarily Restricted et Assets $ 93,862 $ 944,53
5. ET ASSETS RELEASED FROM DOOR RESTRICTIOS 28 27 The Organization releases net assets from donor restrictions as they incur expses satisfying the restrictions imposed or by occurrce of other evts specified by donors or time. Restrictions satisfied: In-kind occupancy $ 4,668 $4,668 Scice fair 6, 6, Total $ 1,668 $ 1,668 6. PERMAETLY RESTRICTED ET ASSETS The income gerated by dowmt fund investmts, in perpetuity, supports the unrestricted fund. 7. DOATED SERVICES In accordance with Statemt of Financial Accounting Standards umber 116, the Academy recorded $81,13 and $79,142 for contributed services involving a variety of activities for the years ded December 31, 28 and 27, respectively. Program services $ 48,77 $ 56,342 Supporting services 32,396 22,8 Total Donated Expses $ 81,13 $ 79,142 8. LEASE The Academy of Scice leases its office space under a 25 year lease agreemt with the St. Louis Scice Cter for $1 per year. The lease agreemt carries no restrictions on the Academy; therefore the tire fair value for rt has be recorded as a currt and long term pledge receivable - rt and is included in temporarily restricted net assets. The Organization calculated fair value of the rt utilizing an inflation factor and a discount rate for prest value over the life of the lease. The effect of these two factors represts the annual occupancy expse reported in the statemt of activities. During the lease term, the Academy transfers the annual lease value to unrestricted net assets. Donated rt expse totaled $4,668 for the years ded December, 31, 28 and 27, and will remain $4,668 annually over the life of the lease. - 12 -