Fy2013 2012 jax symphony audited financial statements by Design Extensions

JACKSONVILLE SYMPHONY ASSOCIATION (A NOT-FOR-PROFIT ORGANIZATION) AND

JACKSONVILLE SYMPHONY FOUNDATION (A NOT-FOR-PROFIT ORGANIZATION)

FINANCIAL REPORT YEARS ENDED JUNE 30, 2013 AND 2012

JACKSONVILLE SYMPHONY ASSOCIATION (A NOT-FOR-PROFIT ORGANIZATION) AND

JACKSONVILLE SYMPHONY FOUNDATION (A NOT-FOR-PROFIT ORGANIZATION)

TABLE OF CONTENTS

Report of independent certified public accountants

Combined Financial statements: Combined statements of financial position with combining information

Combined statements of activities with combining information

Combined statements of cash flows with combining information

Notes to combined financial statements

Supplemental schedules: Combining schedules of financial position

Combining schedules of activities

Report of independent certified public accountant on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards

Report of independent certified public accountants on the management assertion report

Management assertion report

Schedule of state financial assistance

The G RO U P

Accountants Consultants Wealth Advisors

LBA Certified Public Accountants, PA

Report of Independent Certified Public Accountants

To The Board of Directors of Jacksonville Symphony Association and Jacksonville Symphony Foundation Jacksonville, Florida Report on the Financial Statements We have audited the accompanying combined financial statements of the Jacksonville Symphony Association (a not-for-profit organization) and the Jacksonville Symphony Foundation (a not-for-profit organization) which comprise the combined statements of financial position as of June 30, 2013 and 2012, and the related combined statements of activities and cash flows for the years then ended, and the related notes to the combined financial statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these combined 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 combined 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 combined financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the combined financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the combined financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the combined 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 combined 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

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The G RO U P

Accountants Consultants Wealth Advisors

accounting estimates made by management, as well as evaluating the overall presentation of the combined 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 combined financial statements referred to above present fairly, in all material respects, the financial position of the Jacksonville Symphony Association and the Jacksonville Symphony Foundation as of June 30, 2013 and 2012, and the changes in their net assets and their cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Other Matters Other Information Our audits were conducted for the purpose of forming an opinion on the combined financial statements as a whole. The combining information on pages 3, 4, 5, 20, 21, 22 and 23 is presented for purposes of additional analysis of the combined financial statements rather than to present the financial position, changes in net assets and cash flows of the individual organizations or funds, and it is not a required part of the combined financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the combined financial statements. The combining information has been subjected to the auditing procedures applied in the audit of the combined financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the combined financial statements or to the combined financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining information is fairly stated in all material respects in relation to the combined financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 7, 2013, on our consideration of the Jacksonville Symphony Association and Jacksonville Symphony Foundationâ&#x20AC;&#x2122;s internal control over financial reporting and on our tests of their compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Jacksonville Symphony Association and Jacksonville Symphony Foundationâ&#x20AC;&#x2122;s internal control over financial reporting and compliance.

October 7, 2013

JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION COMBINED STATEMENT OF FINANCIAL POSITION WITH COMBINING INFORMATION JUNE 30, 2013

Assets: Cash and cash equivalents Contributions receivable, net Other receivables and accrued interest Investments Property and equipment, net Other assets Total assets Liabilities and net assets: Liabilities: Accounts payable and accrued liabilities Deferred revenue - concert ticket sales and sponsorships Line of credit Total liabilities Net assets: Unrestricted: Undesignated Board designated Total unrestricted Temporarily restricted Total net assets Total liabilities and net assets

Jacksonville Symphony Association $

Jacksonville Symphony Foundation

Total

226,953 848,341 140,785 8,073,212 69,766 243,544

629 7,976,832 -

$ 9,602,601

7,977,461

$ 17,580,062

366,586 1,236,117 2,291,239 3,893,942

(3,527,771) 8,151,529 4,623,758 1,084,901 5,708,659 $ 9,602,601

7,977,461 7,977,461 7,977,461 $

7,977,461

226,953 848,341 141,414 16,050,044 69,766 243,544

366,586 1,236,117 2,291,239 3,893,942

(3,527,771) 16,128,990 12,601,219 1,084,901 13,686,120 $ 17,580,062

JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION COMBINED STATEMENT OF FINANCIAL POSITION WITH COMBINING INFORMATION JUNE 30, 2012

Jacksonville Symphony Association Assets: Cash and cash equivalents Contributions receivable, net Other receivables and accrued interest Investments Property and equipment, net Other assets Total assets Liabilities and net assets: Liabilities: Accounts payable and accrued liabilities Deferred revenue - concert ticket sales and sponsorships Line of credit Total liabilities Net assets: Unrestricted: Undesignated Board designated Total unrestricted Temporarily restricted Total net assets Total liabilities and net assets

Jacksonville Symphony Foundation

Total

178,208 1,317,242 148,906 7,492,458 61,222 264,683

32 6,804,459 -

$ 9,462,719

6,804,491

$ 16,267,210

352,055 1,249,033 1,787,789 3,388,877

(3,129,311) 7,801,993 4,672,682 1,401,160 6,073,842 $ 9,462,719

6,804,491 6,804,491 6,804,491 $

6,804,491

178,208 1,317,242 148,938 14,296,917 61,222 264,683

352,055 1,249,033 1,787,789 3,388,877

(3,129,311) 14,606,484 11,477,173 1,401,160 12,878,333 $ 16,267,210

See accompanying notes to combined financial statements.

JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION COMBINED STATEMENT OF ACTIVITIES WITH COMBINING INFORMATION YEAR ENDED JUNE 30, 2013

Jacksonville Symphony Association Unrestricted Board Temporarily Undesignated Designated Restricted

Jacksonville Symphony Foundation Board Designated

Total

Revenues, gains and other support: Ticket sales and concert fees

$ 2,671,380

Contributions

2,671,380 -

17,925

3,785,534

3,803,459

250,000

2,671,380 4,053,459

Grants

416,091

Advertising

100,926

Fundraising activities

189,765

165

145,597

145,762

8,208

153,970

58,724

401,112

459,836

142,391

729,634 -

729,634 142,391

909,628 -

1,639,262 142,391

Total revenues, gains and other support

3,104,627

951,880

4,201,625

8,258,132

1,568,948

9,827,080

Net assets released from restriction

4,517,884

Investment income Realized gain on sale of investments Unrealized investment gain Other revenue

(4,517,884)

Expenses: Musical productions: Salaries and benefits

4,223,755

Advertising and promotion

1,005,824

Production expenses

1,473,225 658,823

7,361,627

Guest artist fees Total musical productions Supporting services: Interest expense Fundraising activities Administrative salaries and benefits General and administrative expenses Total supporting services Total expenses Net assets released by board Net assets transferred by board Change in net assets Net assets, beginning of year Net assets, end of year

21,788

211,618

1,132,139 263,740

9,817

1,132,139 273,557

18,564

1,132,139 292,121

1,629,285

9,817

1,639,102

18,564

1,657,666

8,990,912

9,817

9,000,729

18,564

9,019,293

(603,861)

366,080

(366,080)

11,334

(11,334)

969,941 (398,460)

349,536

(3,129,311)

7,801,993

$ (3,527,771)

$ 8,151,529

(316,259)

1,172,970

807,787

1,401,160

6,073,842

(365,183)

6,804,491

12,878,333

1,084,901

$ 5,708,659

$ 7,977,461

$ 13,686,120

JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION COMBINED STATEMENT OF ACTIVITIES WITH COMBINING INFORMATION YEAR ENDED JUNE 30, 2012

Jacksonville Symphony Association Unrestricted Board Temporarily Undesignated Designated Restricted

Jacksonville Symphony Foundation Board Designated

Total

Revenues, gains and other support: Ticket sales and concert fees

Contributions Grants

2,796,517

$ 2,796,517

2,796,517

24,099

3,949,263

3,973,362

389,530

Advertising

105,640

Fundraising activities

267,371

Investment income

3,584

145,067

148,651

4,939

153,590

Realized gain on sale of investments

60,638

243,544

304,182

Unrealized investment gain

181,302

341,286

522,588

134,983

Total revenues, gains and other support

3,308,095

411,106

4,338,793

8,057,994

589,769

8,647,763

Net assets released from restriction

4,495,290

4,471,163

984,980

Other revenue

(4,495,290)

Expenses: Musical Productions: Salaries and benefits Advertising and promotion Production expenses Guest artist fees Total musical productions

1,326,033

700,405

7,482,581

14,434

Supporting services: Interest expense Fundraising activities Administrative salaries and benefits General and administrative expenses Total supporting services Total expenses

304,680

1,093,928

240,204

4,075

244,279

26,962

271,241

1,653,246

4,075

1,657,321

26,962

1,684,283

9,135,827

4,075

9,139,902

26,962

9,166,864

Net assets released by board

852,595

(528,475)

324,120

Net assets designated by board

(24,065)

24,065

(503,912)

(97,379)

Change in net assets Net assets, beginning of year Net assets, end of year

(2,625,399)

7,899,372

(3,129,311)

$ 7,801,993

(156,497)

(757,788)

(324,120) 238,687

(519,101)

1,557,657

6,831,630

6,565,804

13,397,434

1,401,160

$ 6,073,842

$ 6,804,491

$ 12,878,333

See accompanying notes to combined financial statements.

JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION COMBINED STATEMENT OF CASH FLOWS WITH COMBINING INFORMATION YEAR ENDED JUNE 30, 2013

Cash flows from operating activities: Change in net assets Adjustments to reconcile change in net assets to net cash used by operating activities: Realized gain on sale of investments Unrealized investment gain Investment management fees Depreciation Net changes in: Contributions receivable Other receivables and accrued interest Other assets Accounts payable and accrued liabilities Deferred revenue Net cash used by operating activities

Jacksonville Symphony Association

Jacksonville Symphony Foundation

$ 1,172,970

Cash flows from investing activities: Purchases of investments Net decrease in money market and certificate of deposit investments Proceeds from sales of investments Purchases of property and equipment Net cash provided by investing activities

(365,183)

Total $

807,787

(58,724) (729,634) 25,019

(401,112) (909,628) 15,600 -

(459,836) (1,639,262) 15,600 25,019

468,901 8,121 21,139 14,531 (12,916) (628,746)

(597) (122,767)

468,901 7,524 21,139 14,531 (12,916) (751,513)

(797,771)

(679,158)

(1,476,929)

223,019 782,356 (33,563) 174,041

5,298 796,627 122,767

228,317 1,578,983 (33,563) 296,808

Cash flows from financing activities: Net increase in line of credit

503,450

Net increase in cash and cash equivalents Cash and cash equivalents, beginning of year

48,745 178,208

Cash and cash equivalents, ending of year

226,953

Supplemental disclosure of cash flow information: Interest paid

21,788

JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION COMBINED STATEMENT OF CASH FLOWS WITH COMBINING INFORMATION YEAR ENDED JUNE 30, 2012

Jacksonville Symphony Association

Jacksonville Symphony Foundation

Cash flows from investing activities: Purchases of investments Net (increase) decrease in money market and certificate of deposit investments Proceeds from sales of investments Purchases of property and equipment Net cash provided by investing activities Cash flows from financing activities: Net increase in line of credit

(757,788)

(519,101)

(60,638) (181,302) 21,472

(243,544) (341,286) 25,277 -

(304,182) (522,588) 25,277 21,472

(713,719) 97,219 (43,775) 86,208 93,994 (1,458,329)

(32) (2,060) (322,958)

(713,719) 97,187 (43,775) 84,148 93,994 (1,781,287)

(650,122)

(415,536)

(1,065,658)

(11,351) 851,496 (51,187) 138,836

18,440 720,054 322,958

7,089 1,571,550 (51,187) 461,794

1,319,178

Net decrease in cash and cash equivalents Cash and cash equivalents, beginning of year

238,687

Total

(315) 178,523

1,319,178

(315) 178,523

Cash and cash equivalents, ending of year

178,208

Supplemental disclosure of cash flow information: Interest paid

14,434

See accompanying notes to combined financial statements.

JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2013 AND 2012 1.

Organization The Jacksonville Symphony Association (the "Association") is a not-for-profit organization established to encourage and expand musical appreciation in the community. The Jacksonville Symphony Foundation (the “Foundation”) is a not-for-profit organization established to provide financial assistance and support to the Association. The Foundation was fully funded by investments transferred from the Association. The Association and the Foundation are collectively referred to as the “Symphony.”

Summary of Significant Accounting Policies This summary of significant accounting policies of the Symphony is presented to assist in understanding the combined financial statements. The combined financial statements and accompanying notes are representations of the Symphony’s management. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the presentation of the combined financial statements. Use of Estimates The preparation of combined financial statements in conformity with accounting principles generally accepted in the United States of America 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 combined financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Principals of Combination The accompanying combined financial statements include the accounts of the Association and the Foundation, which are under common control. Significant intercompany transactions and balances have been eliminated in the combination. Fund Accounting To ensure observance of limitations and restrictions placed on the use of resources available to the Symphony, its accounts are maintained in accordance with the principles of fund accounting. This is the procedure by which resources are classified for accounting purposes into funds established according to their nature and objectives. Separate accounts are maintained for each fund. The assets, liabilities and fund balances of the Symphony are accounted for in self-balancing funds as follows: 

The Operating Fund represents the portion of expendable funds that are available for support of Association operations.



The Endowment Fund represents funds that are either designated for a particular use by the Board of Directors ("Board") or are subject to restrictions by the donor or grantor. Income from endowment investments may be used for support of Association operations. 6

JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2013 AND 2012 2.

Summary of Significant Accounting Policies (Continued) 

The Guild Fund, controlled by volunteers of the Jacksonville Symphony Guild, represents the portion of expendable funds that is available for support of Jacksonville Symphony Guild and Association operations.



The Bridge Fund represents funds that are either designated by the Board or were donated by a small group of donors to fund potential operating budgetary shortfalls that might have occurred through the 2012 fiscal year. In 2012, the Symphony transferred the balance of the temporarily restricted Bridge Fund to the Operating Fund. The Board designated Bridge Fund dollars were transferred to the Operating Fund to cover 2013 budgetary shortfalls.



The Foundation Fund represents funds that are designated for a particular use by the Board.

Net Asset Classifications Net assets, revenues, expenses, gains and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and the changes therein are classified as follows: a. Undesignated net assets - Net assets and contributions not subject to donor-imposed stipulations. b. Board designated net assets - Net assets and contributions subject to Board designation. Generally, the income earned on related investments is designated for general or specific purposes. Board designated net assets include investments designated as endowments, certain contributions received and accumulated gains or losses on restricted endowments which are not stipulated by the donor or law for permanent reinvestment. c. Temporarily restricted net assets - Net assets and contributions subject to donor-imposed stipulations that may or will be met by actions of the Symphony 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 combined statement of activities as net assets released from restrictions. There were no permanently restricted net assets at June 30, 2013 and 2012. Revenues are reported as increases in unrestricted net assets unless use of the related assets is limited by donor-imposed restrictions or Board action. Federal and local grants are recognized as unrestricted revenue to the extent expenses have been incurred under the terms of the respective grant agreements in the combined statement of activities. Expenses are reported as decreases in unrestricted net assets. Gains and losses on investments and other assets or liabilities are reported as increases or decreases in Board designated net assets unless their use is restricted by donor stipulation, law or by Board action. Contributions Contributions, including unconditional promises to give due in future periods, are recognized as revenues in the period made or received. Conditional promises to give, which depend upon specified future and uncertain events, are recognized as revenue when the conditions upon which they depend are substantially met.

JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2013 AND 2012 2.

Summary of Significant Accounting Policies (Continued) An allowance for uncollectible contributions receivable is provided based upon management's judgment including such factors as prior collection history, type of contribution, and nature of fundraising activity. It is the Symphonyâ&#x20AC;&#x2122;s policy to charge off uncollectible accounts when management determines the receivable will not be collected. Contributions to be received after one year are discounted at an appropriate discount rate commensurate with the risks involved. Amortization of discounts is recorded as contribution revenue in accordance with donor-imposed restrictions, if any, on the contributions. Contributions received with donor-imposed restrictions that are met in the same year as the contribution is received are reported initially as revenues of the temporarily restricted net asset class, and a reclassification to unrestricted net assets is made to reflect the expiration of such restrictions. For the purposes of the combining schedule of activities those contributions received with donor-imposed restrictions that are met in the same year are reported as undesignated net assets. Contributions of property and equipment without donor stipulations concerning the use of such longlived assets are reported as revenues of the unrestricted net asset class. Contributions of assets other than cash are recorded at their estimated fair value at the date received. Contributions of cash or other assets to be used to acquire property and equipment are reported as revenues of the temporarily restricted net asset class; the restrictions are considered to be released at the time of acquisition of such long-lived assets. A substantial number of volunteers have donated significant amounts of their time to the Symphony. No amounts have been reflected in the statements for contributed services since the contribution of services did not create or enhance non-financial assets or require specialized skills. When professional services are donated, in-kind values are recorded as contributions. The Symphony recognized $275,000 and $42,000 in donated legal services during 2013 and 2012, respectively. These amounts are included as in-kind production expense in Note 8. Cash and Cash Equivalents The Symphony considers all highly liquid investments purchased with an initial maturity of three months or less to be cash equivalents, except for certain money market and commercial paper investments held within the marketable securities portfolio. The Symphony places its temporary cash investments with FDIC insured institutions. At times, such investments may be in excess of FDIC insurance limits. The Symphony does not believe it is exposed to any significant credit risk with respect to cash and cash equivalents. Investments Investments are carried at fair value (see note 7 for fair value measurements). Fair value is the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Realized and unrealized gains and losses are included in the combined statements of activities.

JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2013 AND 2012 2.

Summary of Significant Accounting Policies (Continued) Board Designated Endowment At June 30, 2013 and 2012, the Board of Directors had designated $16,128,990 and $14,606,484, respectively of unrestricted net assets as a general endowment to support the mission of the Symphony. Since that amount resulted from an internal designation and is not donor-restricted, it is classified and reported as unrestricted net assets. The Symphony has a spending policy of appropriating for distribution each year of no less than 5% and no more than 7% of its Board designated endowmentâ&#x20AC;&#x2122;s fair market value at year end. The transfer rate is based on a five year average return. In establishing this policy, the Symphony considered the longterm expected investment return on its endowment. Accordingly, over the long term, the Symphony expects the current spending policy to allow its general endowment fund to grow at an average of 3% annually. This is consistent with the Symphonyâ&#x20AC;&#x2122;s objective to maintain, and preferably enhance, the transfer power of its assets in perpetuity. To achieve that objective, the Symphony has adopted an investment policy that attempts to maximize total return consistent with an acceptable level of risk. Endowment assets are invested in a well diversified asset mix, which includes equity and debt securities and certain approved alternative investments, that is intended to result in a consistent inflation-protected rate of return that has sufficient liquidity to make an annual distribution of 7%, while growing the fund if possible. Accordingly, the Symphony expects its endowment assets, over time, to produce an average rate of return of approximately 10%. 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. Property and Equipment Property and equipment with values of $200 or more, and a useful life longer than a year, are capitalized. Property and equipment are stated at cost. Maintenance and repairs are charged to expense as incurred. When items of property and equipment are sold or otherwise disposed of, the asset and related accumulated depreciation accounts are eliminated, and any gain or loss is included in operations. Depreciation is provided over the estimated useful life (3 to 10 years) of the related assets using the straight-line method. The Symphony periodically reviews property and equipment for indicators of potential impairment. If this review indicates that the carrying amount of these assets may not be recoverable, the Symphony estimates the future cash flows expected to result from the operations of the asset and its eventual disposition. If the sum of these future cash flows (undiscounted and without interest charges) is less than the carrying amounts of the asset, the Symphony records an impairment loss based on the fair value of the asset. Deferred Revenue The Symphony records amounts received for the purchase of the following seasons' concert tickets and sponsorships as deferred revenue. These amounts will be recognized as revenue in the related concert year.

JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2013 AND 2012 2.

Summary of Significant Accounting Policies (Continued) Income Taxes The Association and the Foundation are not-for-profit organizations as described in Section 501(c)(3) of the Internal Revenue Code and are exempt from federal and state income taxes on related income pursuant to Section 501(a) of the Internal Revenue Code and Chapter 220.13 of the Florida Statutes, respectively. The Symphony evaluates its tax positions for any uncertainties based on the technical merits of the position taken in accordance with authoritative guidance. The Symphony recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be upheld on examination by taxing authorities. The Symphony has analyzed the tax positions taken and has concluded that as of June 30, 2013 and 2012, there were no uncertain tax positions taken, or expected to be taken, that would require recognition of a liability or disclosure in the combined financial statements. Management is required to analyze all open tax years, as defined by the Statute of Limitations, for all major jurisdictions, including federal and certain state taxing authorities. At June 30, 2013, the Symphony is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by taxing authorities for years before 2010. As of and for the years ended June 30, 2013 and 2012, the Symphony did not have a liability for any unrecognized taxes. The Symphony has no examinations in progress and is not aware of any tax positions for which it is reasonable possible that the total amounts of unrecognized tax liabilities will significantly change in the next twelve months. Reclassifications Certain 2012 amounts have been reclassified to conform to the 2013 presentation. Subsequent Events The Symphony has evaluated events through the date of the report of independent certified public accountants, the date the financial statements were available to be issued.

Line of Credit The Symphony has a $3,600,000 line of credit which is due on demand and bears interest at LIBOR plus 0.5% (1.18% at June 30, 2013). The line is secured by investments in Berkshire Hathaway and other corporate stocks, SunTrust cash reserves and various corporate and U.S. Treasury Bonds.

JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2013 AND 2012 4.

Property and Equipment Property and equipment consisted of the following at June 30: 2013 Furniture and fixtures Instruments Leasehold improvements

Total property and equipment Less: accumulated depreciation and amortization Property and equipment, net 5.

796,473 416,761 344,953

2012 $

780,284 399,387 344,953

1,558,187

1,524,624

(1,488,421)

(1,463,402)

69,766

61,222

Operating Lease The Association had a two year lease on its facilities which expired on June 30, 2013. Rent expense was $100,183 and $99,220 for the years ended June 30, 2013 and 2012, respectively. The Symphony is currently in the negotiation process for the terms of a new lease and is currently leasing its facility on a month-to-month basis. The Association receives rent-free rehearsal space for the Jacksonville Symphony Youth Orchestra as a contribution from an unrelated party. The Association recognized $338,043 for such facilities in the combined statements of activities as both revenue and expense in accordance with authoritative guidance for each of the years ended June 30, 2013 and 2012. These amounts are included as in-kind production expense in Note 8.

Investments The Associationâ&#x20AC;&#x2122;s Endowment Fund investments consisted of the following at June 30, 2013: Cost Money market funds: Merrill Lynch Regions SunTrust Wells Fargo Bank of America EverBank U.S. Treasury bonds Certificate of deposit - SunTrust Corporate bonds Mutual funds - fixed income Corporate stock Total investments

Market

10,214 15,513 32,750 47,323 78,344 101,528 228,839 1,247,256 1,093,803 1,912,654 1,271,804

10,214 15,513 32,750 47,323 78,344 101,528 273,565 1,247,256 1,305,942 1,885,749 3,075,028

6,040,028

8,073,212

JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2013 AND 2012 6.

Investments (Continued) The Foundation Fund investments consisted of the following at June 30, 2013: Cost Money market funds - Wells Fargo Closed end funds Corporate stock Mutual funds - fixed income Lone Pine Capital, LLC Semper Vic Partners, L.P.

240 39,665 176,080 578,582 490,305 1,475,000

Total investments

2,759,872

Market 240 47,644 249,496 568,270 2,686,236 4,424,946 7,976,832

The Association’s Endowment Fund investments consisted of the following at June 30, 2012: Cost Money market funds: Merrill Lynch Regions Wells Fargo Bank of America EverBank SunTrust Federal Farm Credit Bank bonds U.S. Treasury bonds Mutual funds – fixed income Certificate of deposit - SunTrust Corporate bonds Corporate stock Total investments

Market

10,270 15,511 22,749 78,641 100,769 294,509 50,185 228,839 1,150,611 1,233,499 1,473,188 1,507,350

10,270 15,511 22,749 78,641 100,769 294,509 51,633 294,563 1,146,760 1,233,499 1,722,499 2,521,055

6,166,121

7,492,458

The Foundation Fund investments consisted of the following at June 30, 2012: Cost

Market

Money market funds - Wells Fargo Mutual funds - fixed income Closed end funds Corporate stock Lone Pine Capital, LLC Semper Vic Partners, L.P.

5,538 50,000 49,545 149,729 490,305 1,475,000

5,538 50,000 77,595 172,323 2,808,404 3,690,599

Total investments

2,220,117

6,804,459

JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2013 AND 2012 6.

Investments (Continued) Lone Pine Capital, LLCâ&#x20AC;&#x2122;s investment objective is to provide investors with compound annual long-term returns that are superior to the broad market averages while having less risk than the overall stock market. To accomplish this, the partnership invests primarily in public equity securities of U.S. and non-U.S. issuers. The partnership also invests (no more than 5% of partners' capital) in private placement securities, may utilize both over-the-counter and exchange traded instruments (including derivative instruments such as options, swaps, and futures on equities and equity indices and other equity derivatives), invest in other funds and invest in the high yield and convertible fixed income markets. The partnership does not engage in speculative trading in the interest rate, currency or physical commodities markets. Semper Vic Partners, L.P., is a limited partnership whose purpose is to serve as a fund through which the assets of its partners may be utilized in investing, holding and trading in securities, other financial instruments and rights and options relating thereto.

Fair Value Measurements Authoritative guidance provides the framework for measuring fair value. That framework 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 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under authoritative guidance are described as follows: Level 1

Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Symphony has the ability to access.

Level 2

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. 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 assetâ&#x20AC;&#x2122;s or liabilityâ&#x20AC;&#x2122;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 used need to maximize the use of observable inputs and minimize the use of unobservable inputs. There have been no changes in the methodologies used at June 30, 2013 and 2012. Following is a description of the valuation methodologies used for assets measured at fair value: Mutual funds, money market funds and closed end funds: Valued at the net asset value of the units reported on the active market on which the individual securities are traded.

JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2013 AND 2012 7.

Fair Value Measurements (Continued) Corporate stock: Valued at the closing price reported on the active market on which the individual securities are traded. Certificates of deposit: Valued using a third party data service’s specialized certificate of deposit values. Corporate bonds: Valued using matrix pricing. Matrix pricing is a mathematical technique used without relying exclusively on quoted prices for the specific investments, but rather on the investments’ relationship to other benchmark quoted investments. Government bonds and notes: Valued using a third party data pricing service. Private investment partnership: Values of the securities and assets held are determined based on the last sales price, or the last current bid quotation, as applicable. Valuations of assets for which market quotations are not readily available are determined at the discretion of the investment manager. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Symphony 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 following table sets forth by level, within the fair value hierarchy, the Symphony’s financial instruments at fair value at June 30, 2013: Level 1 Mutual funds - fixed income Closed end funds Corporate stocks: Basic materials Consumer goods Consumer services Financials Industrials Oil and gas Technology Certificates of deposit Money market funds U.S. Treasury bonds Corporate bonds Private investment partnerships

Total assets at fair value

2,454,019 47,644

Level 2 $

17,970 252,342 30,936 2,749,664 50,523 162,251 60,838 1,247,256 285,912 7,359,355

Level 3 -

273,565 1,305,942 $

1,579,507

Total -

2,454,019 47,644

7,111,182

17,970 252,342 30,936 2,749,664 50,523 162,251 60,838 1,247,256 285,912 273,565 1,305,942 7,111,182

7,111,182

$ 16,050,044

JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2013 AND 2012 7.

Fair Value Measurements (Continued) Level 3 Gains and Losses The following table sets forth a summary of changes in the fair value of the Symphony’s level 3 assets for the year ended June 30, 2013: Private Investment Partnerships Balance, beginning of year Management fees Transfers out Realized and unrealized gains

6,499,003 (15,600) (627,223) 1,255,002

Balance, end of year

7,111,182

The following table sets forth by level, within the fair value hierarchy, the Symphony’s financial instruments at fair value at June 30, 2012: Level 1 1,196,760 77,595

Level 2 $

Level 3 -

Total

Mutual funds - fixed income Closed end funds Corporate stocks: Basic materials Consumer goods Consumer services Financials Industrials Oil and gas Technology Certificates of deposit Money market funds U.S. Treasury notes U.S. Treasury bonds Corporate bonds Private investment partnerships

1,196,760 77,595

29,106 168,232 36,428 2,230,938 61,729 93,665 73,280 1,233,499 527,987 -

51,633 294,563 1,722,499 -

6,499,003

29,106 168,232 36,428 2,230,938 61,729 93,665 73,280 1,233,499 527,987 51,633 294,563 1,722,499 6,499,003

Total assets at fair value

$ 5,729,219

$ 2,068,695

$ 6,499,003

$ 14,296,917

JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2013 AND 2012 7.

Fair Value Measurements (Continued) Level 3 Gains and Losses The following table sets forth a summary of changes in the fair value of the Symphonyâ&#x20AC;&#x2122;s level 3 assets for the year ended June 30, 2012: Private Investment Partnerships Balance, beginning of year Management fees Realized and unrealized gains

5,872,617 (25,277) 651,663

Balance, end of year

6,499,003

There were no transfers between Level 1, Level 2 or Level 3 investments during the years ended June 30, 2013 and 2012. 8.

Contributions Contributions to the Operating Fund include the following in-kind amounts for the years ended June 30: 2013 Production expenses Advertising and promotions Fundraising activities

2012

638,042 126,736 10,643

380,043 16,176

775,421

396,219

Contributions receivable consisted of the following at June 30: 2013 Unconditional promises expected to be collected in: Less than one year Between one to five years

Total contributions Less: allowance for uncollectible contributions Less: discount to present value

477,773 410,250

2012 $

888,023 (31,013) (8,669) $

848,341

792,746 579,500 1,372,246 (35,163) (19,841)

1,317,242

Contributions have been discounted by an 8% annual rate of interest. One donor represented 23% of contributions receivable at June 30, 2013. Two donors represented 21% and 14% of contributions receivable at June 30, 2012.

JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2013 AND 2012 9.

Grant Programs City of Jacksonville Appropriations from the City of Jacksonville Cultural Services Grant Program for 2013 and 2012 are included in the Operating Fund and are maintained in a separate account at SunTrust Bank. City of Jacksonville Cultural Services Grant – Operating (no grant number) Receipt of Funds City FY 2012-2013

City FY 2011-2012

Amount of award (per city budget ordinance) Actual funds received from city in last audit period Actual amount received this period

327,380 (245,535)

323,724 (242,793) (80,931)

Amount remaining to be distributed

81,845

City FY 2012-2013 Actual 10/1/2012 – 6/30/2013

Budgeted

Actual 7/1/2013 – 9/30/2013

Total Actual

Remaining Balance

Item Artistic salary expenses

327,380

Total

327,380

City FY 2011-2012 Actual 10/1/2011 – 6/30/2012

Budgeted

Actual 7/1/2012 – 9/30/2012

Total Actual

Remaining Balance

Item Artistic salary expenses

323,724

Total

323,724

State of Florida Appropriations from the State of Florida, Division of Cultural Affairs are included in the Operating Fund. The total grant awards of $41,211 and $18,306 were expended toward guest artist fees during the years ended June 30, 2013 and 2012, respectively. Other Other federal, state and local grant revenues were $47,500 for each of the years ended June 30, 2013 and 2012. 17

JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2013 AND 2012 10. Commitments The Symphony entered into a collective bargaining agreement beginning January 27, 2013, with its Full and Core Orchestra musicians, which represents 100% of the Symphony's musician labor force. This contract will terminate on August 31, 2014. 11. Fine Arts Investments The Symphony has three endowment programs (Fine Arts I, Fine Arts II and Fine Arts III) with assets held at Wells Fargo that received matching funds from the State. The Symphony contributed $360,000 and the State matched $240,000 in each case. The Symphony is required, at all times, to maintain the $600,000 for each award in these separate accounts. If the funds fall below $600,000 the Symphony would be required to refund the State portion. These accounts consisted of the following, and are included in Board designated net assets, at June 30: 2013 Fine Arts II Cost Market

Fine Arts I Cost Market $

125 123,109

125 184,913

Fine Arts III Cost Market

Money market funds Corporate bonds Mutual funds fixed income

$ 19,179 120,847

$ 19,179 179,255

556,732

546,986

637,085

626,783

568,494

563,171

Total

$ 696,758

$ 745,420

$ 760,319

$ 811,821

$ 699,666

$ 756,833

2012 Fine Arts II Cost Market

Fine Arts I Cost Market

5,294 125,878

5,294 188,368

Fine Arts III Cost Market

Money market funds Corporate bonds Mutual funds fixed income Corporate stocks

$ 15,821 176,857

$ 15,821 179,929

$ 14,978 151,919

$ 14,978 153,015

2,956 -

296,933 178,109

296,451 208,519

296,525 212,452

295,978 227,589

470,995 200,472

468,759 196,017

Total

$ 667,720

$ 700,720

$ 675,874

$ 691,560

$ 674,423

$ 667,732

12. Restrictions and Limitations on Net Asset Balances Temporarily restricted net assets consisted of gifts and other unexpended revenues and gains available for future Operating Fund Program services of $1,084,901 and $1,401,160 at June 30, 2013 and 2012, respectively.

JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2013 AND 2012 13. Transfers Net Assets Released From Temporary Restrictions Net assets are released from temporary restrictions through the occurrence of expenses satisfying the restricted purposes or by occurrence of events specified by the donors and are summarized as follows for the years ended June 30: 2013

2012

Utilization of time restricted contributions Utilization of purpose restricted contributions

3,128,794 1,389,090

3,242,185 1,253,105

Net assets released from temporary restrictions

4,517,884

4,495,290

Net Assets Released from Board Designated The Symphony Board of Directors approved releases of Board designated net assets to undesignated net assets as follows for the years ended June 30: 2013 Bridge Fund Foundation Fund* Endowment Fund* Total release of Board designated net assets

2012

200,767 366,080 403,094

150,000 328,393 374,202

969,941

852,595

*These transfers to the Association’s Operating Fund are consistent with the Association’s "Endowment Investment and Spending Policy."

SUPPLEMENTAL SCHEDULES

JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION COMBINING SCHEDULE OF FINANCIAL POSITION JUNE 30, 2013

Operating Fund Assets: Cash and cash equivalents Contributions receivable, net Due from (to) other funds Other receivables and accrued interest Investments Property and equipment, net Other assets Total assets Liabilities and net assets: Liabilities: Accounts payable and accrued liabilities Deferred revenue - concert ticket sales and sponsorships Line of credit Total liabilities Net assets Total liabilities and net assets

Endowment Fund

Guild Fund

737,010 101,503 112,136 69,766 242,946

226,953 (39,840) 598

111,331 (61,663) 28,649 8,073,212 -

1,263,361

187,711

8,151,529

366,586

1,221,522 2,291,239 3,879,347 (2,615,986) $

1,263,361

14,595 14,595 173,116 $

187,711

8,151,529 $

8,151,529

Jacksonville Symphony Association Total

Jacksonville Symphony Foundation

Total

226,953 848,341 140,785 8,073,212 69,766 243,544

629 7,976,832 -

226,953 848,341 141,414 16,050,044 69,766 243,544

9,602,601

7,977,461

17,580,062

366,586

1,236,117 2,291,239 3,893,942 5,708,659 $

9,602,601

7,977,461 $

7,977,461

1,236,117 2,291,239 3,893,942 13,686,120 $

17,580,062

JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION COMBINING SCHEDULE OF FINANCIAL POSITION JUNE 30, 2012

Operating Fund Assets: Cash and cash equivalents Contributions receivable, net Due (to) from other funds Other receivables and accrued interest Investments Property and equipment, net Other assets Total assets Liabilities and net assets: Liabilities: Accounts payable and accrued liabilities Deferred revenue - concert ticket sales and sponsorships Line of credit Total liabilities Net assets Total liabilities and net assets

Guild Fund

Bridge Fund

1,146,856 (107,226) 116,983 61,222 264,683

27,302 155,540 -

178,208 -

1,482,518

182,842

178,208

351,655

400

1,244,013 1,787,789 3,383,457 (1,900,939) $

1,482,518

182,842 $

182,842

5,020 5,420 172,788 $

178,208

Endowment Fund

Jacksonville Symphony Association Total

143,084 (48,314) 31,923 7,492,458 -

178,208 1,317,242 148,906 7,492,458 61,222 264,683

32 6,804,459 -

178,208 1,317,242 148,938 14,296,917 61,222 264,683

7,619,151

9,462,719

6,804,491

16,267,210

352,055

7,619,151 $

7,619,151

Jacksonville Symphony Foundation

1,249,033 1,787,789 3,388,877 6,073,842 $

9,462,719

Total

6,804,491 $

6,804,491

1,249,033 1,787,789 3,388,877 12,878,333 $

16,267,210

JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION COMBINING SCHEDULE OF ACTIVITIES YEAR ENDED JUNE 30, 2013

Undesignated

Operating Fund Revenue, gains and other support: Ticket sales and concert fees Contributions Grants Advertising Fundraising activities Interest income Gain on sale of investments Unrealized investment gain Other revenue Total revenue, gains and other support

2,671,380 3,785,534 416,091 100,926 99,739 142,391 7,216,061

Board Designated

Guild Fund $

90,026 165 90,191

Endowment Fund

Bridge Fund

39,840 366,080 403,094

Expenses: Musical productions: Salaries and benefits Advertising and promotion Production expenses Guest artist fees Total musical productions

4,223,755 1,005,824 1,473,225 658,823 7,361,627

21,788 161,595 1,132,139 263,740 1,579,262

50,023 50,023

9,817 9,817

8,940,889

50,023

9,817

328 -

532,378 -

17,925 -

Total expenses Change in net assets before non-recurring transactions Release from future years annual fund Release from board designated bridge fund for budget shortfall

(915,814) 316,259 200,767

Change in net assets Net assets, beginning of year Net assets, end of year

11,334 (403,094)

17,925 17,925

Transfers from guild fund Transfers from foundation Transfers from endowment fund

Supporting activities: Interest expense Fundraising activities Administrative salaries and benefits General and administrative expenses Total supporting activities

(39,840) -

145,597 58,724 729,634 933,955

(200,767)

(398,788)

328

532,378

(182,842)

(3,302,099)

172,788

7,619,151

(3,700,887)

173,116

8,151,529

182,842 $

Temporarily Restricted Jacksonville Symphony Association Total

Future Year(s) Annual Fund $

Total

250,000 8,208 401,112 909,628 1,568,948

377,414 -

4,223,755 1,005,824 1,473,225 658,823 7,361,627

21,788 211,618 1,132,139 273,557 1,639,102

18,564 18,564

21,788 211,618 1,132,139 292,121 1,657,666

9,000,729

18,564

9,019,293

1,172,970 -

807,787 -

(365,183) -

(316,259)

(365,183)

1,401,160 1,084,901

(377,414) -

2,671,380 4,053,459 416,091 100,926 189,765 153,970 459,836 1,639,262 142,391 9,827,080

(316,259)

2,671,380 3,803,459 416,091 100,926 189,765 145,762 58,724 729,634 142,391 8,258,132

Jacksonville Symphony Foundation

6,073,842 $

5,708,659

1,172,970

807,787

6,804,491

12,878,333

7,977,461

13,686,120

JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION COMBINING SCHEDULE OF ACTIVITIES YEAR ENDED JUNE 30, 2012

Undesignated

2,796,517 3,946,355 389,530 105,640 110,985 134,983 7,484,010

Guild Fund $

62,068 328,393 374,202

Transfers from guild fund Transfers from foundation Transfers from endowment fund

Board Designated

Endowment Fund

156,386 3,584 159,970

(62,068) -

15,599 145,067 60,638 181,302 402,606

Bridge Fund $

(4,273) (374,202)

8,500 8,500 -

Expenses: Musical productions: Salaries and benefits Advertising and promotion Production expenses Guest artist fees

4,471,163 984,980 1,326,033 700,405

Total musical productions

7,482,581

Supporting activities: Interest expense Fundraising activities Administrative salaries and benefits General and administrative expenses

14,434 197,707 1,093,928 240,204

106,973 -

4,075

Total supporting activities

1,546,273

106,973

4,075

9,028,854

106,973

4,075

20,056

8,500

Total expenses Change in net assets before non-recurring transactions Release from temporarily restricted to board designated bridge fund Time restricted to future years annual fund Release from board designated bridge fund for budget shortfall Release from temporarily restricted bridge fund for budget shortfall Change in net assets

(780,181) (675,660)

24,065 -

150,000

(150,000)

811,000

(494,841)

(9,071)

(2,807,258)

Net assets, beginning of year Net assets, end of year

(9,071)

(3,302,099)

20,056

181,859 $

172,788

(117,435)

7,599,095 $

7,619,151

300,277 $

182,842

Temporarily Restricted Net Assets Future Year(s) Annual Fund

Bridge Fund $

Jacksonville Symphony Foundation

2,796,517 3,973,362 389,530 105,640 267,371 148,651 60,638 181,302 134,983 8,057,994

324,120 -

4,471,163 984,980 1,326,033 700,405

7,482,581

14,434 304,680 1,093,928 244,279

26,962

14,434 304,680 1,093,928 271,241

1,657,321

26,962

1,684,283

9,139,902

26,962

9,166,864

2,908

(757,788)

4,939 243,544 341,286 589,769

Total

2,908 2,908

(24,065) -

(324,120) -

238,687

$ 2,796,517 3,973,362 389,530 105,640 267,371 153,590 304,182 522,588 134,983 8,647,763 -

(519,101)

675,660

(811,000)

(832,157)

675,660

832,157

725,500

Jacksonville Symphony Association Total

1,401,160

(757,788)

238,687

(519,101)

6,831,630

6,565,804

13,397,434

6,073,842

$ 6,804,491

$ 12,878,333

The G RO U P

Accountants Consultants Wealth Advisors

LBA Certified Public Accountants, PA

Report of Independent Certified Public Accountant on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards To the Board of Directors of Jacksonville Symphony Association and Jacksonville Symphony Foundation Jacksonville, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the combined financial statements of Jacksonville Symphony Association (a not-for-profit organization) and Jacksonville Symphony Foundation (a not-forprofit organization) (collectively the "Symphony") which comprise the combined statement of financial position as of June 30, 2013, and the related combined statements of activities, and cash flows for the year then ended, and the related notes to the combined financial statements and have issued our report thereon dated October 7, 2013. Internal Control Over Financial Reporting In planning and performing our audit of the combined financial statements, we considered the Symphony’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statement, but not for the purpose of expressing an opinion on the effectiveness of the Symphony’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Symphony’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

501 Riverside Avenue, Suite 800, Jacksonville, FL 32202-4939 904.396.4015 904.399.4012 www.TheLBAGroup.com

The G RO U P

Accountants Consultants Wealth Advisors

Compliance and Other Matters As part of obtaining reasonable assurance about whether the Symphonyâ&#x20AC;&#x2122;s combined financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of combined financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Symphonyâ&#x20AC;&#x2122;s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Symphonyâ&#x20AC;&#x2122;s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

October 7, 2013

The G RO U P

Accountants Consultants Wealth Advisors

LBA Certified Public Accountants, PA

Report of Independent Certified Public Accountants on the Management Assertion Report

To the Board of Directors of Jacksonville Symphony Association Jacksonville, Florida We have examined management’s assertion, included in the accompanying Management Assertion Report, that the Jacksonville Symphony Association (the “Association”) complied with the allowable cost requirements established in the grant agreements applicable to grant expenditures identified on the Schedule of State Financial Assistance for the year ended June 30, 2013. Management is responsible for the Association’s compliance with those requirements. Our responsibility is to express an opinion on management’s assertion about the Association’s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Association’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Association’s compliance with specified requirements. In our opinion, management’s assertion that the Association complied with the aforementioned requirements during the year ended June 30, 2013 is fairly stated, in all material respects.

October 7, 2013

501 Riverside Avenue, Suite 800, Jacksonville, FL 32202-4939 904.396.4015 904.399.4012 www.TheLBAGroup.com

JACKSONVILLE SYMPHONY ASSOCIATION SCHEDULE OF STATE FINANCIAL ASSISTANCE YEAR ENDED JUNE 30, 2013

State Agency and Program Title

State Contract/Grant Number

Florida Department of State, Division of Cultural Affairs: General Program Support Grant

13.6.102.245

Expenditures $

41,211