CONSOLIDATED FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION Year Ended December 31, 2015
TABLE OF CONTENTS December 31, 2015 Independent Auditors Report 1 Consolidated Financial Statements Consolidated Statement of Financial Position 3 Consolidated Statement of Activities 4 Consolidated Statement of Cash Flows 5 Notes to Consolidated Financial Statements 6 Additional Information Independent Auditors Report on Additional Information 12 Consolidating Statement of Financial Position 13 Consolidating Statement of Activities 14 Consolidating Statement of Cash Flows 20 Consolidated Schedule of Support, Revenues and Expenses - Budget and Actual 22 Page
CONSOLIDATED STATEMENT OF FINANCIAL POSITION December 31, 2015 With Comparative Amounts for December 31, 2014 ASSETS 2015 2014 Cash and Cash Equivalents $ 13,511,287 $ 8,935,139 Certificates of Deposit 27,409 27,058 Receivables (Net) 447,051 578,570 Prepaid Expenses 570,153 1,088,728 Inventories 2,558 3,664 Property and Equipment (Net) 1,120,712 1,224,291 Deferred Tax Asset 218,836 220,687 TOTAL ASSETS $ 15,898,006 $ 12,078,137 LIABILITIES AND NET ASSETS Liabilities Accounts Payable and Accrued Expenses $ 952,612 $ 737,707 Refundable Advances 3,363,786 3,394,701 Total Liabilities $ 4,316,398 $ 4,132,408 Net Assets Unrestricted $ 6,270,505 $ 5,509,237 Temporarily Restricted 5,311,103 2,436,492 Total Net Assets $ 11,581,608 $ 7,945,729 TOTAL LIABILITIES AND NET ASSETS $ 15,898,006 $ 12,078,137 The accompanying notes are an integral part of the financial statements. - 3 -
CONSOLIDATED STATEMENT OF ACTIVITIES Year Ended December 31, 2015 With Comparative Amounts for the Year Ended December 31, 2014 Temporarily Totals Totals Unrestricted Restricted 2015 2014 Support and Revenues Public Support Local Governments $ $ 23,422,063 $ 23,422,063 $ 22,926,651 Grants and Promotions 6,859,662 6,859,662 5,657,379 Volume Based Member Contributions 1,146,014 1,146,014 1,083,731 Membership Dues 2,629,701 2,629,701 2,470,841 Advertising Sales 3,027,820 3,027,820 3,428,134 Member Services 900 900 500 Programs and Events 291,283 291,283 220,358 Other Revenue 2,222,561 2,222,561 3,120,866 Total Support and Revenues $ 9,318,279 $ 30,281,725 $ 39,600,004 $ 38,908,460 Net Assets Released From Restrictions $ 27,407,114 $ (27,407,114) $ $ Expenses Programs $ 30,110,447 $ $ 30,110,447 $ 32,651,353 Personnel 3,699,028 3,699,028 3,461,858 Operating 1,727,168 1,727,168 1,488,183 Facility 284,554 284,554 319,849 Other Expenses 141,077 141,077 74,659 Total Expenses $ 35,962,274 $ $ 35,962,274 $ 37,995,902 Increase (Decrease) in Net Assets Before Income Taxes $ 763,119 $ 2,874,611 $ 3,637,730 $ 912,558 Provision for Income Taxes (Expense) Deferred Taxes (1,851) (1,851) (179,349) Increase (Decrease) in Net Assets $ 761,268 $ 2,874,611 $ 3,635,879 $ 733,209 Net Assets - Beginning 5,509,237 2,436,492 7,945,729 7,212,520 Net Assets - Ending $ 6,270,505 $ 5,311,103 $ 11,581,608 $ 7,945,729 The accompanying notes are an integral part of the financial statements. - 4 -
CONSOLIDATED STATEMENT OF CASH FLOWS Year Ended December 31, 2015 With Comparative Amounts for the Year Ended December 31, 2014 2015 2014 Cash Flows From Operating Activities Increase in Net Assets $ 3,635,879 $ 733,209 Adjustments to Reconcile Increase (Decrease) in Net Assets to Net Cash and Cash Equivalents Provided (Used) by Operating Activities Depreciation 127,773 160,708 Decrease in Receivables (Net) 137,846 6,111 (Increase) Decrease in Prepaid Expenses 518,575 (823,103) (Increase) Decrease in Inventories 1,106 (3,325) Decrease in Deferred Tax Asset 1,851 179,349 Increase (Decrease) in Accounts Payable and Accrued Expenses 208,578 (150,308) Increase (Decrease) in Refundable Advances (30,915) 196,129 Net Cash and Cash Equivalents Provided by Operating Activities $ 4,600,693 $ 298,770 Cash Flows From or (Used) by Investing Activities Purchases of Certificates of Deposit $ (27,409) $ (27,058) Maturities of Certificates of Deposit 27,058 26,936 Purchases of Property and Equipment (24,194) (13,263) Net Cash and Cash Equivalents Used by Investing Activities $ (24,545) $ (13,385) 385) Cash Flows From or (Used) by Financing Activities Proceeds from Notes Payable $ 2,000,000 $ 4,000,000 Repayments of Notes Payable (2,000,000) (4,000,000) Net Cash and Cash Equivalents From or (Used) by Financing Activities $ $ Net Increase in Cash and Cash Equivalents $ 4,576,148 $ 285,385 Cash and Cash Equivalents - Beginning 8,935,139 8,649,754 Cash and Cash Equivalents - Ending $ 13,511,287 $ 8,935,139 Supplemental Cash Flow Disclosure Interest Incurred and Paid $ 4,304 $ 7,778 The accompanying notes are an integral part of the financial statements. - 5 -
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2015 Page 1 of 6 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation: The consolidated financial statements include the accounts of the Myrtle Beach Area Chamber of Commerce (the Chamber) and its wholly-owned subsidiary, the Myrtle Beach Area Commerce Center, Inc. (the Commerce Center). All material intercompany transactions and balances have been eliminated in the consolidation. Nature of Activities: The Chamber is a nonprofit organization whose purpose is to provide community leadership in the promotion of economic development, including tourism. The Chamber receives revenue primarily through state and local government grants, contributions and membership dues. The Chamber operates under the following divisions: finance/administration, membership and program services, festivals and special events, marketing, convention bureau and leadership grand strand. The Commerce Center s operations include an advertising agency and publication activities. The Commerce Center receives revenue primarily through the production and sale of promotional materials and services. Basis of Accounting: The accompanying consolidated financial statements have been prepared on the accrual basis of accounting. Basis of Presentation: The consolidated financial statement presentation follows the recommendations of the Financial Accounting Standards Board for Not-for-Profit Organizations. Under generally accepted accounting principles for not-for-profit organizations, the Chamber 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. Currently, the Chamber has no permanently restricted net assets, but the Board of Directors has designated reserves on a recurring basis as disclosed in Note 2. 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 directly affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates. Concentration of Credit Risk: The Organization maintains bank accounts with various financial institutions. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (FDIC insured) up to $250,000. At December 31, 2015, the bank s balances totaled $13,809,533 with an uninsured balance of $1,281,579, and the remaining balance of $12,527,954 is protected by the pledge of government securities held in the name of the financial institution for the Organization under certain overnight repurchase agreements utilized by the Organization. Cash Equivalents: The Organization considers all demand deposits, money market accounts and other highly liquid investments with original maturities of three months or less to be cash equivalents. Receivables consist primarily of support and amounts due in conjunction with the Organization s programs, services and events. All amounts are due during the year ending December 31, 2016. The Organization utilizes the allowance method to account for uncollectable accounts receivable. The Organization s estimate is based on historical collection experience and a review of the current status of specific accounts. Concentrations of credit risk with regard to receivables are limited due to the large number of accounts and their dispersion across different industries. - 6 -
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2015 Page 2 of 6 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Prepaid Expenses are recognized when payments have been made for products or services that will not be used in operations until the following year. For the years ending December 31, 2015 and 2014, the prepaid expenses consist primarily of prepaid marketing and advertising. Inventories consist of merchandise held for resale, which are valued at cost on a first-in, first-out basis. Property and Equipment: All acquisitions of property and equipment in excess of $5,000 and all expenditures for repairs, maintenance, renewals and betterments that materially prolong the useful lives of assets are capitalized. Property and equipment are carried at cost or, if donated, at the approximate fair value at the date of donation. Depreciation is computed using primarily the straight-line method over the estimated useful lives of the related assets which are as follows: Land Land Improvements Buildings and Improvements Furnishings, Fixtures and Equipment N/A 15 years 31 to 39 years 3 to 8 years Investment in Internet Co-Op, LLC: The Organization has a 44% membership interest in the Myrtle Beach Area Internet Marketing Co-Op, LLC which is accounted for by the equity method. Under the equity method, the original cost of the investment is adjusted annually for the Organization s proportionate share of undistributed earnings or losses. As of December 31, 2015, the original cost of the investment has been adjusted to $0. Refundable Advances: The Organization receives advanced fees for services and programs. Such fees are subject to being refunded (in whole, or in part) prior to the date of service or event. Accordingly, these amounts have been reported as refundable advances at year-end. Support: Under generally accepted accounting principles for not-for-profit organizations, contributions are deemed to have been earned when the cash or other assets including securities, land, buildings, use of facilities, materials and supplies, intangible assets, services or unconditional promises to give such items in the future are received. An unconditional promise to give is a promise that is not dependent on the occurrence of a specified future event in order to bind the promisor. Contributions received and unconditional promises to give are measured at their fair values and are reported as an increase in net assets. All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. The Organization reports gifts of cash and other assets as restricted support if they are received with donor stipulations that limit the use of the donated assets, or if they are designated as support for future periods. When a donor restriction expires, that is, when a stipulated time restriction ends or the purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Donor-restricted contributions whose restrictions are met in the same reporting period are reported first as temporarily restricted net assets. Membership Dues are recognized when received. Payments received by the Organization for the subsequent year are recorded as temporarily restricted net assets. - 7 -
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2015 Page 3 of 6 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Income Taxes: The Chamber is a nonprofit organization as described in Section 501(c)(6) of the United States Internal Revenue Code and is exempt from federal and state income taxes. Activities of the Commerce Center are subject to federal and state income taxes. The Chamber s wholly owned subsidiary is a taxable corporation that incurs income tax expense when its revenues from advertising sales exceed the costs of those taxable activities. In accounting for income taxes, the Organization follows generally accepted accounting principles. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Prior-Year Information: The consolidated financial statements include prior-year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the Organization s consolidated financial statements for the year ended December 31, 2014, from which the summarized information was derived. Note 2 - BOARD DESIGNATED RESERVES The following net assets have been designated by the Board of Directors for the following purposes at December 31, 2015: Marketing $ 6,000,000 Operating Fund 4,000,000 Medical Claims 550,000 Capital Projects 350,000 Contingencies 347,823 Leadership Grand Strand Alumni 45,441 Leadership Grand Strand 31,427 Leadership Grand Strand Scholarship Fund 2,276 $ 11,326,967 Note 3 - RECEIVABLES (NET) Receivables consisted of the following at December 31, 2015: Volume Based Member Contributions $ 108,269 Program, Service and Event Related Amounts 347,782 $ 456,051 Allowance for Doubtful Accounts (9,000) $ 447,051-8 -
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2015 Page 4 of 6 Note 4 - PROPERTY AND EQUIPMENT (NET) Property and equipment consisted of the following at December 31, 2015: Land and Improvements $ 352,294 Buildings and Improvements 2,081,857 Furnishings, Fixtures and Equipment 872,811 $ 3,306,962 Accumulated Depreciation (2,186,250) $ 1,120,712 Note 5 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consisted of the following at December 31, 2015: Trade Accounts $ 590,440 Accrued Salaries and Wages 108,015 Compensated Absences 254,157 $ 952,612 Note 6 - LINES OF CREDIT The Chamber has in place, two lines of credit with a total maximum available financing of $7,750,000, each with a variable interest rate based upon the 30 day Libor rate plus 1.75%. There are no outstanding balances on these credit lines at December 31, 2015. Interest expense for the lines of credit amounted to $4,304 during the year ended December 31, 2015. Note 7 - TEMPORARILY RESTRICTED NET ASSETS At December 31, 2015, temporarily restricted net assets consisted of the following: Local Government Funds $ 348,670 State Grants 4,962,433 $ 5,311,103-9 -
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2015 Page 5 of 6 Note 7 - TEMPORARILY RESTRICTED NET ASSETS (continued) During the year ended December 31, 2015, net assets were released from restrictions by incurring expenses satisfying the purpose specified by the donors or by satisfaction of the time restrictions by the donors as follows: Satisfaction of Project / Program Restrictions Local Government Support Project and Program Services $ 23,324,230 Contingency Funds 28,312 South Carolina Department of Parks, Recreation and Tourism SCATR and Regional Tourism 159,843 State Proviso Matching Grant 3,894,729 Total Net Assets Released From Restrictions $ 27,407,114 Note 8 - LOCAL GOVERNMENT CONTINGENCY AGREEMENTS The Organization reserves approximately five percent of accommodations tax revenues received from the respective local governments. These amounts are to be used for future program (advertising and promotion of tourism) expenditures related to the specific funding locality. Activity within the local government contingency accounts during the year ended December 31, 2015, was as follows: Balance Balance 12/31/14 Additions Expenditures 12/31/15 City of Myrtle Beach, SC $ 250,280 $ 96,655 $ 27,500 $ 319,435 Town of Surfside Beach, SC 21,884 7,316 812 28,388 $ 272,164 $ 103,971 $ 28,312 $ 347,823 Note 9 - OPERATING LEASES The Organization leases real property and personal property under operating leases expiring in various years through 2016. Lease expense charged to operations for all significant operating leases was $42,137 for the year ended December 31, 2015. Minimum future rental payments under significant non-cancelable operating leases as of December 31, 2015 are as follows: Year Ending December 31, 2016 5,907 $ 5,907 Note 10 - RETIREMENT PLAN The Organization has an Internal Revenue Code Section 401(k) plan for its eligible full-time employees who have been with the Organization for twelve months. Employer contributions to the plan during the year ended December 31, 2015 were $94,036, which represents a matching contribution of up to 5.0% of covered employees salaries. - 10 -
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2015 Page 6 of 6 Note 11 - INCOME TAXES Effective January 1, 2009, the Organization implemented the new accounting requirements associated with uncertain tax positions using the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740, Income Taxes. That guidance provides that a tax benefit from an uncertain tax position may be recognized when it is more-likely-than-not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more-likely-than-not recognition threshold at the effective date to be recognized upon the adoption of the guidance and in subsequent periods. The Organization believes it has no uncertain tax positions as of December 31, 2015, and accordingly, no liability has been accrued. The Organization is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. Management believes it is no longer subject to income tax examinations for years prior to December 31, 2012. The Organization s deferred tax asset at December 31, 2015 arose from a net operating loss generated by the Commerce Center. Net operating losses can be carried forward for a total of twenty years. The Organization s net operating loss carryforward initially arose during the year ended December 31, 2010 and the total net operating loss carryforward at December 31, 2015 amounted to $643,635. Since the net operating loss carryforward is anticipated to be absorbed by taxable income prior to expiration, no valuation allowance has been established. Note 12 LITIGATION During its normal course of business, the Chamber is subject to potential claims and litigation. As of December 31, 2015, no litigation or lawsuits were pending. Additionally, although certain investigations are ongoing, the attorneys representing the Chamber advise that there are no unasserted claims or assessments for potential loss that need to be reported. Note 13 SUBSEQUENT EVENTS Subsequent events were evaluated through February 5, 2015, which is the date the financial statements were available to be issued. - 11 -
ADDITIONAL INFORMATION
CONSOLIDATING STATEMENT OF FINANCIAL POSITION December 31, 2015 ASSETS Myrtle Beach Myrtle Beach Consolidating Area Chamber Area Commerce & Eliminating Consolidated of Commerce Center, Inc. Adjustments Totals Cash and Cash Equivalents $ 12,736,357 $ 774,930 $ $ 13,511,287 Certificates of Deposit 27,409 27,409 Receivables (Net) 432,506 14,545 447,051 Due from Chamber 158,497 (158,497) Prepaid Expenses 570,153 570,153 Inventories 2,558 2,558 Property and Equipment (Net) 1,120,712 1,120,712 Investment in Commerce Center (424,729) 424,729 Deferred Tax Asset 218,836 218,836 TOTAL ASSETS $ 14,464,966 $ 1,166,808 $ 266,232 $ 15,898,006 LIABILITIES AND NET ASSETS / SHAREHOLDER'S EQUITY Liabilities Accounts Payable and Accrued Expenses $ 938,067 $ 14,545 $ $ 952,612 Due to Commerce Center 158,497 (158,497) Refundable Advances 1,786,794 1,576,992 3,363,786 Total Liabilities $ 2,883,358 $ 1,591,537 $ (158,497) $ 4,316,398 Net Assets Unrestricted $ 6,270,505 $ $ $ 6,270,505 Temporarily Restricted 5,311,103 5,311,103 Total Net Assets $ 11,581,608 $ $ $ 11,581,608 Shareholder's Equity Common Stock $ $ 1,000 $ (1,000) $ Retained Earnings (425,729) 425,729 Total Shareholder's Equity $ $ (424,729) $ 424,729 $ TOTAL LIABILITIES AND NET ASSETS / SHAREHOLDER'S EQUITY $ 14,464,966 $ 1,166,808 $ 266,232 $ 15,898,006-13 -
CONSOLIDATING STATEMENT OF ACTIVITIES Year Ended December 31, 2015 Myrtle Beach Area Chamber of Commerce Temporarily Unrestricted Restricted Total Support and Revenues Public Support Local Governments $ $ 23,422,063 $ 23,422,063 Grants and Promotions 6,859,662 6,859,662 Volume Based Member Contributions 1,146,014 1,146,014 Membership Dues 2,629,701 2,629,701 Advertising Sales Member Services Programs and Events 291,283 291,283 Other Revenue 2,222,561 2,222,561 Subsidiary Income 3,593 3,593 Total Support and Revenues $ 6,293,152 $ 30,281,725 $ 36,574,877 Net Assets Released From Restrictions $ 27,407,114 $ (27,407,114) $ Expenses Program Expenses Government - Designated Funds $ 28,312 $ $ 28,312 Advertising and Promotions 26,119,948 26,119,948 Publications 1,619,957 1,619,957 Programs and Events 430,721 430,721 Member Services 23,974 23,974 Convention and Group Sales 1,565,894 1,565,894 Retail 1,106 1,106 Total Program Expenses $ 29,789,912 $ $ 29,789,912 Personnel Expenses Salaries and Wages $ 2,805,449 $ $ 2,805,449 Contract Labor 14,497 14,497 Payroll Taxes 189,733 189,733 Benefits 689,349 689,349 Cost Allocation (1,389,169) (1,389,169) Total Personnel Expenses $ 2,309,859 $ $ 2,309,859-14 -
Page 1 of 3 Myrtle Beach Consolidating Area Commerce & Eliminating Consolidated Center, Inc. Adjustments Totals $ $ $ 23,422,063 6,859,662 1,146,014 2,629,701 3,511,539 (483,719) 3,027,820 900 900 291,283 2,222,561 (3,593) $ 3,512,439 $ (487,312) $ 39,600,004 $ $ $ $ $ $ 28,312 483,719 (483,719) 26,119,948 1,619,957 430,721 2,883 26,857 317,652 1,883,546 1,106 $ 804,254 $ (483,719) $ 30,110,447 $ $ $ 2,805,449 14,497 189,733 689,349 1,389,169 $ 1,389,169 $ $ 3,699,028-15 -
CONSOLIDATING STATEMENT OF ACTIVITIES Year Ended December 31, 2015 Myrtle Beach Area Chamber of Commerce Temporarily Unrestricted Restricted Total Expenses (continued) Operating Expenses Supplies and Equipment $ 70,391 $ $ 70,391 Postage and Freight 42,639 42,639 Telecommunications 85,041 85,041 Travel and Entertainment 210,378 210,378 Dues and Subscriptions 45,954 45,954 Meetings and Conferences 24,378 24,378 Training and Development 27,084 27,084 Professional and Contractual Services 307,879 307,879 Other Operating Expenses 74,986 74,986 Cost Allocation (348,556) (348,556) Total Operating Expenses $ 540,174 $ $ 540,174 Facility Expenses Utilities $ 45,407407 $ $ 45,407407 Facility Services 83,147 83,147 Lease and Rental Expenses 42,137 42,137 Insurance 66,657 66,657 Property Tax and Licenses 47,206 47,206 Cost Allocation (78,000) (78,000) Total Facility Expenses $ 206,554 $ $ 206,554 Other Expenses Depreciation $ 127,773 $ $ 127,773 Interest Expense 4,304 4,304 Bad Debt Expense 9,000 9,000 Cost Allocation (48,578) (48,578) Total Other Expenses $ 92,499 $ $ 92,499 Total Expenses $ 32,938,998 $ $ 32,938,998-16 -
Page 2 of 3 Myrtle Beach Consolidating Area Commerce & Eliminating Consolidated Center, Inc. Adjustments Totals $ $ $ 70,391 832,279 874,918 85,041 210,378 45,954 24,378 27,084 307,879 6,159 81,145 348,556 $ 1,186,994 $ $ 1,727,168 $ $ $ 45,407407 83,147 42,137 66,657 47,206 78,000 $ 78,000 $ $ 284,554 $ $ $ 127,773 4,304 9,000 48,578 $ 48,578 $ $ 141,077 $ 3,506,995 $ (483,719) $ 35,962,274-17 -
CONSOLIDATING STATEMENT OF ACTIVITIES Year Ended December 31, 2015 Myrtle Beach Area Chamber of Commerce Temporarily Unrestricted Restricted Total Increase (Decrease) in Net Assets / Retained Earnings Before Income Taxes $ 761,268 $ 2,874,611 $ 3,635,879 Provision for Income Taxes Increase (Decrease) in Net Assets / Retained Earnings $ 761,268 $ 2,874,611 $ 3,635,879 Net Assets / Retained Earnings - Beginning 5,509,237 2,436,492 7,945,729 Net Assets / Retained Earnings - Ending $ 6,270,505 $ 5,311,103 $ 11,581,608-18 -
Page 3 of 3 Myrtle Beach Consolidating Area Commerce & Eliminating Consolidated Center, Inc. Adjustments Totals $ 5,444 $ (3,593) $ 3,637,730 (1,851) (1,851) $ 3,593 $ (3,593) $ 3,635,879 (429,322) 429,322 7,945,729 $ (425,729) $ 425,729 $ 11,581,608-19 -
CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2015 Myrtle Beach Area Chamber Cash Flows From Operating Activities Increase (Decrease) in Net Assets / Retained Earnings $ 3,635,879 Adjustments to Reconcile Increase (Decrease) in Net Assets / Retained Earnings to Net Cash and Cash Equivalents Provided (Used) by Operating Activities Depreciation 127,773 (Gain) From Investment in Subsidiary (3,593) (Increase) Decrease in Receivables (Net) 146,064 Decrease in Due from Chamber Decrease in Prepaid Expenses 518,575 Decrease in Inventories 1,106 Decrease in Deferred Tax Asset Increase in Accounts Payable and Accrued Expenses 200,360 (Decrease) in Due to Commerce Center (318,987) Increase (Decrease) in Refundable Advances 62,704 Net Cash and Cash Equivalents Provided (Used) by Operating Activities $ 4,369,881 Cash Flows From Investing Activities Purchases of Certificates of Deposit $ (27,409) Maturities of Certificates of Deposit 27,058 Purchases of Property and Equipment (24,194) Net Cash and Cash Equivalents Used by Investing Activities $ (24,545) Cash Flows From Financing Activities Proceeds from Notes Payable $ 2,000,000 Repayments of Notes Payable (2,000,000) Net Cash and Cash Equivalents Used by Financing Activities $ Net Increase in Cash and Cash Equivalents $ 4,345,336 Cash and Cash Equivalents - Beginning 8,391,021 Cash and Cash Equivalents - Ending $ 12,736,357-20 -
Myrtle Beach Consolidating Area Commerce & Eliminating Consolidated Center, Inc. Adjustments Totals $ 3,593 $ (3,593) $ 3,635,879 127,773 3,593 (8,218) 137,846 318,987 (318,987) 518,575 1,106 1,851 1,851 8,218 208,578 318,987 (93,619) (30,915) $ 230,812 $ $ 4,600,693 $ $ $ (27,409) 27,058 (24,194) $ $ $ (24,545) $ $ $ 2,000,000 (2,000,000) $ $ $ $ 230,812 $ $ 4,576,148 544,118 8,935,139 $ 774,930 $ $ 13,511,287-21 -
CONSOLIDATED SCHEDULE OF SUPPORT, REVENUES AND EXPENSES - BUDGET AND ACTUAL Year Ended December 31, 2015 Page 1 of 2 Variance Budget Positive Budget Allocation Actual (Negative) Support and Revenues Public Support Local Governments $ 22,858,475 $ $ 23,422,063 $ 563,588 Grants and Promotions 5,652,000 6,859,662 1,207,662 Volume Based Member Contributions 1,000,000 1,146,014 146,014 Membership Dues 4,464,866 1 (2,065,111) 2,629,701 229,946 Advertising Sales 1,102,200 2,065,111 1 3,027,820 (139,491) Member Services 900 900 Programs and Events 240,200 291,283 51,083 Other Revenue 303,500 1,874,842 2 2,222,561 44,219 Total Support and Revenues $ 35,621,241 $ 1,874,842 $ 39,600,004 $ 2,103,921 Expenses Program Expenses Government - Designated Funds $ 111,870 $ $ 28,312 $ 83,558 Advertising and Promotions 24,820,600 1,874,842 2 26,119,948 575,494 Publications 1,456,916 1,619,957 957 (163,041) Programs and Events 493,650 430,721 62,929 Member Services 21,780 26,857 (5,077) Convention and Group Sales 2,188,998 1,883,546 305,452 Retail 900 1,106 (206) Total Program Expenses $ 29,094,714 $ 1,874,842 $ 30,110,447 $ 859,109 Personnel Expenses Salaries and Wages $ 2,781,942 $ $ 2,805,449 $ (23,507) Contract Labor 7,500 14,497 (6,997) Payroll Taxes 215,745 189,733 26,012 Benefits 573,472 689,349 (115,877) Total Personnel Expenses $ 3,578,659 $ $ 3,699,028 $ (120,369) 1 The budget as stated does not differentiate between the CVB dues and the advertising portion of the CVB dues. Therefore a budget allocation adjustment is needed to show a more accurate reflection of the budget to actual variances. $2,065,111 is the advertising portion of the CVB dues allocated to the Commerce Center. 2 The budget does not take into account certain private contributions and the related qualifying expenditures incurred in conjunction with other nonprofits in the South Carolina Department of Parks, Recreation and Tourism State Proviso Matching Grant. Accordingly, $1,874,842 in "Other Revenue" and $1,874,842 in "Program" Expenses - Advertising and Promotions, are presented in the Schedule of Support, Revenues and Expenses. Per the budget, these items are presented as net funding. - 22 -
CONSOLIDATED SCHEDULE OF SUPPORT, REVENUES AND EXPENSES - BUDGET AND ACTUAL Year Ended December 31, 2015 Page 2 of 2 Variance Budget Positive Budget Allocation Actual (Negative) Expenses (continued) Operating Expenses Supplies and Equipment $ 77,275 $ $ 70,391 $ 6,884 Postage and Freight 799,105 874,918 (75,813) Telecommunications 93,995 85,041 8,954 Travel and Entertainment 239,140 210,378 28,762 Dues and Subscriptions 58,365 45,954 12,411 Meetings and Conferences 27,100 24,378 2,722 Training and Development 35,200 27,084 8,116 Professional and Contractual Services 163,900 307,879 (143,979) Other Operating Expenses 73,126 81,145 (8,019) Total Operating Expenses $ 1,567,206 $ $ 1,727,168 $ (159,962) Facility Expenses Utilities $ 46,995 $ $ 45,407 $ 1,588 Facility Services 112,155 83,147 29,008 Lease and Rental Expenses 50,660 42,137 8,523 Insurance 72,980 66,657 6,323 Property Tax and Licenses 61,990 47,206 14,784 Total Facility Expenses $ 344,780 $ $ 284,554 $ 60,226 Other Expenses Depreciation $ 136,000 $ $ 127,773 $ 8,227 Interest Expense 9,250 4,304 4,946 Bad Debt Expense 9,000 (9,000) Total Other Expenses $ 145,250 $ $ 141,077 $ 4,173 Total Expenses $ 34,730,609 $ 1,874,842 $ 35,962,274 $ 643,177 Increase in Net Assets Before Income Taxes $ 890,632 $ $ 3,637,730 $ 2,747,098-23 -