Consolidated Financial Statements June 30, 2009
Table of Contents Page Report of Independent Accountants 1 Financial Statements: Consolidated Statement of Financial Position 2 Consolidated Statement of Activities 3 Consolidated Statement of Cash Flows 4 Notes to Consolidated Financial Statements 5 Supplemental Information: Consolidating Schedule - Statement of Financial Position 17 Consolidating Schedule - Statement of Activities 18
REPORT OF INDEPENDENT ACCOUNTANTS Board of Directors, The Richmond Symphony Board of Trustees, The Richmond Symphony Foundation Richmond, Virginia We have audited the accompanying consolidated statement of financial position of The Richmond Symphony and The Richmond Symphony Foundation (collectively, the "Organization") as of June 30, 2009, and the related consolidated statements of activities and cash flows for the year then ended. These consolidated financial statements are the responsibility of the Organization s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of The Richmond Symphony and The Richmond Symphony Foundation as of June 30, 2009, and the changes in their net assets and their cash flows for the year then ended in conformity with accounting principles generally accepted in the United States. As discussed in Note 1 to the financial statements, in fiscal year 2009 the Organization adopted FASB Staff Position 117-1, Endowments for Non-profit Organizations: Net Asset Classification of Funds Subject to an Enacted Version of the Uniform Prudent Management of Institutional Funds Act, and Enhanced Disclosures of All Endowment Funds, and Statement of Financial Accounting Standard Number 157, Fair Value Measurements. Our audit was made for the purpose of forming an opinion on the basic consolidated financial statements taken as a whole. The supplemental information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic consolidated financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic consolidated financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic consolidated financial statements taken as a whole. Glen Allen, VA December 1, 2009 4401 Dominion Boulevard, 2 nd Floor Mailing Address: P.O. Box 32066 210 Ridge-McIntire Road, Suite 500 Glen Allen, Virginia 23060 Richmond, Virginia 23294-2066 Charlottesville, Virginia 22903 804.747.000, FAX 804.747.3632 www.kshgs.com 434.220.2800, FAX 434.220.2802
Consolidated Statement of Financial Position June 30, 2009 Assets Cash and cash equivalents $ 1,141,545 Investments 6,834,194 Pledges receivable 1,536,610 Accounts receivable 25,216 Prepaid expenses and other assets 31,001 Property and equipment, net 98,540 Total assets $ 9,667,106 Liabilities and Net Assets Liabilities: Accounts payable $ 21,616 Accrued expenses 154,071 Other liabilities 27,076 Line of credit 600,000 Annuity obligation 132,288 Deferred revenue 357,560 Total liabilities 1,292,611 Net assets (deficit): Unrestricted (2,822,841) Temporarily restricted 249,999 Permanently restricted 10,947,337 Total net assets 8,374,495 Total liabilities and net assets $ 9,667,106 See accompanying notes to consolidated financial statements. 2
Consolidated Statement of Activities Year ended June 30, 2009 Unrestricted Temporarily Permanently Operating Restricted Restricted Total Revenue: Performance revenue $ 1,023,590 $ - $ - $ 1,023,590 Grants and contributions: Annual fund contributions 1,541,739 150,000-1,691,739 Other contributions 159,662-2,402,809 2,562,471 Grants for service and underwriting 385,107 75,000-460,107 Interest and dividend income 158,467 - - 158,467 Net realized and unrealized loss on investments (298,141) (1,766,371) - (2,064,512) Change in value of annuity obligation 5,774 - - 5,774 Other 540,223 - - 540,223 Net assets released from restrictions 538,167 (538,167) - - Total revenue 4,054,588 (2,079,538) 2,402,809 4,377,859 Expenses: Program: Artistic personnel 2,403,312 - - 2,403,312 Other direct concert costs 1,743,809 - - 1,743,809 Supporting: General and administrative 526,334 - - 526,334 Fundraising 381,664 - - 381,664 Total expenses 5,055,119 - - 5,055,119 Change in net assets (1,000,531) (2,079,538) 2,402,809 (677,260) Net assets (deficit) at beginning of year (45,939) 563,166 8,534,528 9,051,755 Change in accounting principle (1,776,371) 1,766,371 10,000 - Net assets (deficit), beginning of year, restated (1,822,310) 2,329,537 8,544,528 9,051,755 Net assets (deficit) at end of year $ (2,822,841) $ 249,999 $ 10,947,337 $ 8,374,495 See accompanying notes to consolidated financial statements. 3
Consolidated Statement of Cash Flows Year ended June 30, 2009 Cash flows from operating activities: Change in net assets $ (677,260) Adjustments to reconcile change in net assets to cash used in operating activities: Depreciation 28,442 Realized and unrealized loss on investments 1,820,930 Change in operating assets and liabilities: Contributions restricted for long-term investment (2,402,809) Accounts receivable 176,939 Prepaid expenses and other assets 4,749 Accounts payable (137,056) Accrued expenses 16,817 Other liabilities 27,076 Deferred revenue 82,162 Net cash used in operating activities (2,596,620) Cash flows from investing activities: Purchases of investments (7,220,552) Proceeds from sales of investments 7,067,751 Purchases of property and equipment (95,708) Net cash used in investing activities (248,509) Cash flows from financing activities: Proceeds from line of credit, net 330,000 Decrease in annuity obligation (5,156) Contributions restricted for long-term investment 2,402,809 Net cash provided by financing activities 2,727,653 Net decrease in cash and cash equivalents (117,476) Cash and cash equivalents, beginning of year 1,259,021 Cash and cash equivalents, end of year $ 1,141,545 Supplemental disclosure of cash flow information: Cash paid during the year for interest $ 7,581 Non-cash transactions: In-kind $ 121,266 See accompanying notes to consolidated financial statements. 4
Notes to Consolidated Financial Statements 1. Summary of Significant Accounting Policies: Description of Organization: The Richmond Symphony (the Symphony ) was founded in 1957 and is a non-profit organization engaged principally in the production and promotion of musical performances, the organization and sponsorship of musical organizations, and the encouragement and development of the arts. The Symphony is governed by its own independent Board of Directors. The Richmond Symphony Foundation (the Foundation ) was incorporated as an independent not-for-profit, non-stock corporation in 1989 for the purpose of soliciting, receiving, and administering gifts, grants, and contributions for the benefit of the Symphony through the establishment and maintenance of an endowment fund. The articles and bylaws of the Foundation structurally preserve an arms-length relationship between the Foundation and the Symphony, designed to ensure that the restricted funds of the endowment may be protected in perpetuity. The Board of Trustees of the Foundation consists of 13 members; 10 are directors elected by the Board of Trustees of the Foundation and no more than 3 are ex-officio representatives of the Symphony. By this arrangement, the Symphony is prevented from exercising either control or undue influence over decisions made by the Foundation Board. Donations are made by the Foundation to the Symphony each year at the discretion of the trustees of the Foundation. Principles of Consolidation and Basis of Presentation: According to the articles of incorporation and by-laws of the Foundation, the Foundation s purpose is to perform activities described above exclusively for the benefit of the Symphony. For financial reporting purposes, in accordance with Generally Accepted Accounting Principles, the Foundation s financial statements and the Symphony s financial statements have been consolidated. All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States. Net assets and revenues, expenses, gains, and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Unrestricted Net Assets: Net assets that are not subject to donorimposed stipulations. 5
1. Summary of Significant Accounting Policies, Continued: Temporarily Restricted Net Assets: Net assets subject to donorimposed stipulations that may or will be met, either by actions of the Organization and/or the passage of time. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Temporarily restricted net assets consist of contributions that are to be used in future years. Permanently Restricted Assets: Net assets subject to donor-imposed stipulations that they be permanently maintained. Generally, the donors of these assets permit the Organization to use all or part of the income earned on any related investments for general or specific purposes. Use of Estimates: The preparation of financial statements in conformity with Generally Accepted Accounting Principles ( GAAP ) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents: Cash equivalents consisting of interest-bearing money market instruments were $406,070 at June 30, 2009. For purposes of the consolidated statement of cash flows, the Organization considers all highly liquid securities that were purchased with maturity of three months or less to be cash equivalents. Allowance for Doubtful Accounts: The Organization uses the reserve method of accounting for bad debts for financial reporting purposes. The amount of doubtful accounts at June 30, 2009 was immaterial; therefore, no reserve was considered necessary. Investments: Investments are carried at fair value. Realized and unrealized changes in the fair value of investments are reported in the accompanying consolidated statement of activities. Investments received as contributions are recorded at the estimated fair value on the date of the contribution. Interest income is recorded as earned and dividend income is recognized on the record date. Realized gains and losses are determined by the specific identification method. On January 1, 2009, the Organization integrated investments consisting of common stocks, mutual funds, and hedge funds and invested in The Richmond Fund L.P. ( Richmond Fund ). Investments in the Richmond Fund are stated at fair valued based on estimates derived from the investment entity. The Organization believes that the fair values reported by the entities are fairly stated in all material respects (See Note 3). 6
1. Summary of Significant Accounting Policies, Continued: Property and Equipment: Property and equipment is stated on the basis of cost. Property and equipment received as a contribution is recorded at fair value at the date of the contribution. Depreciation is provided using the straight-line method over the estimated useful lives of the related assets as follows: Furniture, fixtures, and equipment Musical instruments Vehicles 3-7 year 5-25 year 5 year Long-Lived Assets: For contributions of long-lived assets (or contributions of cash or other assets restricted for acquisition of long-lived assets), unless donor or grantor restrictions specify how long-lived assets must be maintained, the donor s or grantor s restrictions are considered expired upon placing the assets in service for their intended use. Split-Interest Agreements: The Organization established a gift annuity plan whereby donors may contribute assets to the Organization in exchange for the right to receive a fixed dollar annual return during their lifetimes. A portion of the transfer is considered to be a charitable donation for income tax purposes. The difference between the amount provided for the gift annuity and the liability for future payments, determined on an actuarial basis, is recognized as permanently restricted contribution income at the date of the gift. The liability on the consolidated statement of financial position entitled annuity obligation includes the present value of the life interest payable to the recipients. The annuity liability is revalued annually based upon computed present values. Resulting gain or loss is recorded as other permanently restricted revenue or expense, respectively, in the consolidated statement of activities. Contributions: Contributions are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and/or nature of any grantor or donor restrictions. Support that is restricted by the grantor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized. All other grantor-restricted support is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a restriction expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the consolidated statement of activities as net assets released from restrictions. 7
1. Summary of Significant Accounting Policies, Continued: Donated Services: The Symphony receives donated services from multiple companies. The Symphony received donated services of approximately $121,000 in 2009, which have been expensed in the Statement of Activities. Deferred Revenue: Deferred revenue primarily consists of advance payments related to subscriptions and ticket sales attributable to the next performance season. Income Taxes: The Internal Revenue Service (the IRS ) has determined that the Organization is exempt from Federal income tax under Section 501(c)(3) of the Internal Revenue Code (the IRC or the Code ). Contributions to the Organization are tax deductible as defined by Section 170 of the Code. In addition, the IRS has determined that the Organization is not a private foundation within the meaning of Section 509(a) of the Code. Collective Bargaining Agreement: Substantially all of the performing artists employed by the Symphony are members of the American Federation of Musicians. The current labor contract extends through August 31, 2011. Adoption of New Accounting Principles: During fiscal 2009, the Organization adopted Financial Accounting Standards Board ( FASB ) Staff Position 117-1, Endowments of Non-for-Profit Organizations: Net Asset Classification of Funds Subject to an Enacted Version of the Uniform Prudent Management of Institutional Funds Act, and Enhanced Disclosures of All Endowment Funds ("FSP"). The Foundation adopted the FSP on July 1, 2008, and it resulted in a reclassification of approximately $1,766,371 from unrestricted net assets to temporarily restricted net assets, and $10,000 from unrestricted net assets to permanently restricted net assets. Additionally, the FSP requires expanded disclosures for all endowment funds (see Note 10). The Foundation also adopted for 2009 certain provisions of Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("SFAS 157"), related to disclosures for financial assets and liabilities and any other assets and liabilities that are carried at fair value on a recurring basis in the financial statements (see Note 3). 8
2. Pledges Receivable: Anticipated collections of pledges receivable at June 30, 2009: Pledges receivable to be collected: Within one year $ 1,036,610 In one to five years 500,000 $ 1,536,610 3. Investments: The Foundation adopted for 2009 certain provisions of Statement of Financial Accounting Standard No. 157, Fair Value Measurements ("SFAS 157"), related to financial assets and liabilities and any other assets and liabilities that are carried at fair value on a recurring basis in the financial statements. The provisions of SFAS 157 related to nonrecurring fair value measurements of nonfinancial assets and nonfinancial liabilities, has been deferred to 2010. SFAS 157 provides a framework for measuring fair value under GAAP and defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. SFAS 157 requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. SFAS 157 also establishes a fair value hierarchy which prioritizes the valuation inputs into three broad levels. Based on the underlying inputs, each fair value measurement in its entirety is reported in one of three levels: Level 1 Unadjusted quoted prices that are available in active markets for the identical assets or liabilities at the measurement date. Level 2 Other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including: Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets in non-active markets; Inputs other than quoted prices that are observable for the asset or liability; and Inputs that are derived principally from or corroborated by other observable market data. Level 3 Unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management s estimates of market participant assumptions. 9
3. Investments, Continued: Assets and liabilities measured at fair value on a recurring basis at June 30, 2009, include the following: Fair Value Using Asset Level 1 Level 3 at Fair Value Assets: Richmond Fund $ - $ 6,716,049 $ 6,716,049 Suntrust gift annuity 118,145-118,145 Total assets $ 118,145 $ 6,716,049 $ 6,834,194 The following table provides a reconciliation between the beginning and ending balances of assets measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3). Investments in Level 3 Balance at July 1, 2008 $ 1,460,870 Liquidations (990,744) Purchase of funds in connection with transfer of investments to Richmond Fund 6,411,409 Realized and unrealized losses (165,486) Balance at June 30, 2009 $ 6,716,049 The investments in limited partnerships are valued by general partners of the funds based on several criteria established in the fund agreement. All exchange traded securities are measured at the listed price at a specified time. Financial instruments that are tied to an underlying exchange traded security are valued at the listed price provided that the general partner determines that the price accurately reflects fair value. All other assets and liabilities of the fund are valued based on a calculation of fair value based on supporting information by the general partner. The Foundation reserves the right to adjust the fair value if changes in significant factors influence the fair value of the fund. 10
4. Property and Equipment: A summary of property and equipment and accumulated depreciation at June 30, 2009 follows: Accumulated Cost Depreciation Furniture and fixtures $ 70,322 $ 69,702 Office equipment 198,061 160,682 Musical instruments 196,408 135,867 Vehicles 52,277 52,277 $ 517,068 $ 418,528 Depreciation expense amounted to $28,442 for 2009. 5. Concentrations of Credit Risk: Financial instruments which potentially subject the Organization to concentrations of credit risk consist principally of cash and cash equivalents. The Organization maintains its cash and cash equivalents in several financial institutions located in Virginia. Accounts at each institution are insured by the Federal Deposit Insurance Corporation up to $250,000. At times, balances with FDIC-insured banks may exceed federally insured limits. In addition, the Organization has a money market account with a securities dealer that is insured by the Securities Investor Protection Corporation. Management believes the Organization is not exposed to any significant credit risk related to cash and cash equivalents. 6. Permanently Restricted Net Assets: Permanently restricted net assets which are restricted to ensure the existence of the Symphony were $10,947,337 at June 30, 2009. The principal is required to be invested in perpetuity and the investment income is expendable to fund the operating and administrative costs of the Organization. 11
7. Line of Credit: The Symphony has a line of credit with SunTrust Bank that provides for short-term borrowings of up to $1,000,000 that is guaranteed by the Foundation. The line expires on December 31, 2009. The line is secured by a general assignment of the Symphony s assets, including accounts receivable, property, and equipment. The Symphony and Foundation signed an agreement whereby the Foundation agreed to guarantee the Symphony s obligations and become a co-borrower with the Symphony under this credit line. Borrowings under this line extension are due on demand and bear interest at the 30-day LIBOR rate plus 1.50% (1.81% at June 30, 2009). The outstanding balance on the line was $600,000 at June 30, 2009. 8. Leases: The Symphony has entered into a noncancelable operating lease agreement to lease its administrative office space under a lease that expires in August 2014. The Symphony also leases equipment under an operating lease which expires in July 2012. Future minimum lease payments under non-cancelable operating leases with initial or remaining lease terms in excess of one year as of June 30, 2009 are as follows: 2010 $ 60,925 2011 81,356 2012 83,196 2013 83,796 2014 83,796 $ 393,069 Total office rent expense amounted to $47,789 for the year ended June 30, 2009. 9. Defined Contribution Plan: The Symphony participates in a defined contribution pension plan as part of its collective bargaining agreement with the Richmond Musician s Association, Local 123 American Federation of Musicians. The Symphony will contribute a percentage of base salary or straight time hourly wage for qualified musicians on active payroll on the last day of the plan year. The percentage contribution is determined in the collective bargaining agreement. 12
9. Defined Contribution Plan, Continued: Effective July 1,1999, the Symphony established a Matching Tax Deferred Annuity Plan, 403(b), for its office employees. Employees can defer a portion of their compensation subject to the maximum allowed by the IRC. The Symphony matches 50% of the employee deferral up to a maximum of 6%. Contributions by the Symphony to these plans were $62,891 in 2009. 10. Endowment Funds: There are several endowment funds within the Foundation. These endowment funds are donor-restricted and were established for a variety of purposes. Net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed restrictions. Interpretation of Relevant Law: The Board of Trustees of the Foundation has interpreted the State Prudent Management of Institutional Funds Act ("SPMIFA") as requiring the preservation of the fair value of the original gift of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the Foundation 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 the accumulation is added to the fund. The remaining portion of the donor restricted endowment funds that are not classified as permanently restricted net assets are classified as temporarily restricted net assets until those amounts appropriated for expenditure are disbursed in accordance with the donor restrictions in a manner consistent with the standard of prudence prescribed by SPMIFA. In accordance with SPMIFA, the Foundation considers the following factors in making a determination to appropriate or accumulate funds in the endowment funds designated by the Board of Trustees: The duration and preservation of the fund The purposes of the organization and the donor-restricted endowment fund General economic conditions The possible effect of inflation and deflation The expected total return from income and the appreciation of investments Other resources of the organization The investment policies of the organization 13
10. Endowment Funds, Continued: Funds with Deficits: From time to time, the fair value of assets associated with individual endowment funds may fall below the level that the donor or the SPMIFA requires the Foundation to retain as a fund of perpetual duration. In accordance with GAAP, deficiencies of this nature that are reported in unrestricted net asset were $707,197 as of June 30, 2009. These deficiencies resulted from unfavorable market conditions. Return Objectives and Risk Parameters: The Organization has adopted investment and spending policies for some donor-restricted endowment funds that attempt to provide a predictable stream of funding to the organizations endowed by donorrestricted funds as well as programs supported by the endowment funds of the Foundation, Inc. at the direction of the Board of Trustees. In addition to providing a predictable stream of funding the adopted investment and spending policies also seek to maintain the purchasing power of the endowment assets. Endowment assets include assets of donor-restricted funds that the Foundation must hold in perpetuity or for a donor-specified period(s). Under this policy, as approved by the Board of Trustees, the portfolio is to attain a favorable absolute and relative rate of return consistent with a conservative, balanced portfolio management approach. This return should be sufficient to cover the spending policy obligations over a 3-5 year period consistent with the risk parameters in the policy. Some donor-restricted endowment funds restrict annual distributions to net income. The Organization uses the same investment policies and intends to produce the same investment results as mentioned above for these donor-restricted endowment funds. Strategies Employed for Achieving Objectives: To satisfy its long-term rate-of-return objectives, the Foundation relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). The Foundation targets a diversified asset allocation that places a greater emphasis on equity-based investments to achieve its long-term return objectives within prudent risk constraints. Spending Policy and How the Investment Objectives Relate to Spending Policy: The Organization has a policy of appropriating for distribution each year of up to 5 percent of the endowment funds average fair value, depending on annual budgetary goals. In establishing this policy, the Organization considered the long-term expected return on the endowments. Accordingly, over the long term the Organization expects the current spending policy to allow the endowments to continue to grow annually. This is consistent with objectives to maintain the purchasing power of the endowment assets held in perpetuity or for a specific term as well as to provide additional real growth through new gifts and investment return restrictions. 14
10. Endowment Funds, Continued: The Foundation s endowment net asset composition by type of fund was as follows at June 30, 2009: Temporarily Permanently Unrestricted Restricted Restricted Total Donor restricted endowment funds $ - $ - $ 4,095,068 $ 4,095,068 General endowment - - 6,852,269 6,852,269 General unrestricted (1,485,080) - - (1,485,080) Total $ (1,485,080) $ - $ 10,947,337 $ 9,462,257 Changes in the Foundation s endowment net assets were as follows for the year ended June 30, 2009: Net assets, beginning of year $ 800,605 $ - $ 8,534,528 $ 9,335,133 Reclassification based on change in accounting principle (see Note 1) (1,776,371) 1,766,371 10,000 - Investment return (loss): Investment income 158,467 - - 158,467 Unrealized loss on investments, net (667,781) (1,766,371) - (2,434,152) Total investment return (loss) (509,314) (1,766,371) - (2,275,685) New gifts - - 2,402,809 2,402,809 Net assets, end of year $ (1,485,080) $ - $ 10,947,337 $ 9,462,257 15
11. Functional Expenses: Expenses incurred for the Organization for the year ended June 30, 2009 were as follows: General and Total Program administrative Fundraising Salaries, wages, and benefits $ 3,587,862 $ 3,086,016 $ 250,311 $ 251,535 Services and professional fees 1,101,276 794,401 187,339 119,536 Office and occupancy 143,257 95,888 47,369 - Supplies and travel 166,662 155,985 9,678 999 Depreciation 28,442 4,226 24,216 - Other 27,620 10,605 7,421 9,594 Total expenses $ 5,055,119 $ 4,147,121 $ 526,334 $ 381,664 12. Subsequent Events: Management has evaluated subsequent events through December 1, 2009 and has determined there are no subsequent events to be reported in the accompanying financial statements. 16
Consolidating Schedule Statement of Financial Position June 30, 2009 The Richmond The Richmond Symphony Assets Symphony Foundation Eliminations Consolidated Cash and cash equivalents $ 60,229 $ 1,081,316 $ - $ 1,141,545 Investments - 6,834,194-6,834,194 Pledges receivable 116,053 1,420,557-1,536,610 Accounts receivable 124,489 20,243 (119,516) 25,216 Prepaid expenses and other assets 31,001 - - 31,001 Property and equipment, net 98,540 - - 98,540 Total assets 430,312 9,356,310 (119,516) 9,667,106 Liabilities and Net Assets Accounts payable 21,616 119,516 (119,516) 21,616 Accrued expenses 154,071 - - 154,071 Other liabilities 27,076 - - 27,076 Line of credit 600,000 - - 600,000 Annuity obligation - 132,288-132,288 Deferred revenue 357,560 - - 357,560 Total liabilities 1,160,323 251,804 (119,516) 1,292,611 Net assets (deficit): Unrestricted (980,010) (1,842,831) - (2,822,841) Temporarily restricted 249,999 - - 249,999 Permanently restricted - 10,947,337-10,947,337 Total net assets (deficit) (730,011) 9,104,506-8,374,495 Total liabilities and net assets $ 430,312 $ 9,356,310 $ (119,516) $ 9,667,106 See Report of Independent Accountants. 17
Consolidating Schedule Statement of Activities Year ended June 30, 2009 The Richmond Symphony The Richmond Symphony Foundation Eliminations Consolidated Unrestricted Temporarily Unrestricted Temporarily Permanently Unrestricted Temporarily Permanently Operating Restricted Total Operating Restricted Restricted Total Total Operating Restricted Restricted Total Revenue: Performance revenue $ 1,023,590 $ - $ 1,023,590 $ - $ - $ - $ - $ - $ 1,023,590 $ - $ - $ 1,023,590 Grants and contributions: Annual fund contributions 1,541,739 150,000 1,691,739 - - - - - 1,541,739 150,000-1,691,739 Other contributions 608,164-608,164 10,000-2,402,809 2,412,809 (458,502) 159,662-2,402,809 2,562,471 Grants for service and underwriting 385,107 75,000 460,107 - - - - - 385,107 75,000-460,107 Interest and dividend income - - 158,467 - - 158,467-158,467 - - 158,467 Net realized and unrealized gain - (loss) on investments 488-488 (298,629) (1,766,371) - (2,065,000) - (298,141) (1,766,371) - (2,064,512) Change in value of annuity obligation - - - 5,774 - - 5,774-5,774 - - 5,774 Other 540,223-540,223 - - - - - 540,223 - - 540,223 Net assets released from restrictions 538,167 (538,167) - - - - - - 538,167 (538,167) - - Total revenue 4,637,478 (313,167) 4,324,311 (124,388) (1,766,371) 2,402,809 512,050 (458,502) 4,054,588 (2,079,538) 2,402,809 4,377,859 Expenses: Payout to Richmond Symphony - - - 458,502 - - 458,502 (458,502) - - - - Program: - Artistic personnel 2,403,312-2,403,312 - - - - - 2,403,312 - - 2,403,312 Other direct concert costs 1,743,809-1,743,809 - - - - - 1,743,809 - - 1,743,809 Supporting: General and administrative 419,174-419,174 107,160 - - 107,160-526,334 - - 526,334 Fundraising 204,649-204,649 177,015 - - 177,015-381,664 - - 381,664 Total expenses 4,770,944-4,770,944 742,677 - - 742,677 (458,502) 5,055,119 - - 5,055,119 Change in net assets (133,466) (313,167) (446,633) (867,065) (1,766,371) 2,402,809 (230,627) - (1,000,531) (2,079,538) 2,402,809 (677,260) Net assets (deficit) at beginning of year (846,544) 563,166 (283,378) 800,605-8,534,528 9,335,133 - (45,939) 563,166 8,534,528 9,051,755 Change in accounting principle - - - (1,776,371) 1,766,371 10,000 - - (1,776,371) 1,766,371 10,000 - Net assets, beginning of year, restated (846,544) 563,166 (283,378) (975,766) 1,766,371 8,544,528 9,335,133 - (1,822,310) 2,329,537 8,544,528 9,051,755 Net assets (deficit) at end of year $ (980,010) $ 249,999 $ (730,011) $ (1,842,831) $ - $ 10,947,337 $ 9,104,506 $ - $ (2,822,841) $ 249,999 $ 10,947,337 $ 8,374,495 See Report of Independent Accountants. 18