HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY FINANCIAL STATEMENTS AND AUDITOR'S REPORT FOR THE YEAR ENDED APRIL 30, 2013
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY TABLE OF CONTENTS PAGE INDEPENDENT AUDITOR'S REPORT
3
FINANCIAL STATEMENTS STATEMENT OF FINANCIAL POSITION STATEMENT OF ACTIVITIES
4-5 6
STATEMENT OF CASH FLOWS
7-8
NOTES TO FINANCIAL STATEMENTS
9-25
SUPPLEMENTARY INFORMATION INDEPENDENT AUDITOR'S REPORT ON SUPPLEMENTARY INFORMATION SCHEDULE OF FUNCTIONAL EXPENSES
2
27 28-29
S.W. Hall & Associates, LLC Certified Public Accountants 1291 Jefferson Terrace Macon, GA 31201
Independent Auditor's Report To the Board of Directors of Historic Macon Foundation, Inc. and Subsidiary 935 High St Macon, GA 31201 We have audited the accompanying financial statements of Historic Macon Foundation, Inc. and Subsidiary, (a nonprofit organization), which comprise the statement of financial position as of April 30, 2013, and the related statements of activities and cash flows for the year then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express and opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion the financial statements referred to above present fairly, in all material respects, the financial position of Historic Macon Foundation, Inc. and Subsidiary as of April 30, 2013, and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.
December 11, 2013
Telephone: (478) 741-9966
Email:cpa@swhallcpa.com 3
Fax: (478) 741-1483
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY STATEMENT OF FINANCIAL POSITION APRIL 30, 2013
ASSETS
CURRENT ASSETS Cash on hand Cash in bank Total Cash & Cash Equivalents
$
Investments Inventories Accounts receivable Notes Receivable-Current Portion Total Current Assets
776,418 818 15,020 3,741 1,587,184
PROPERTY AND EQUIPMENT Land and buildings-Preservation Projects, net Property and Equipment, net Total Property and Equipment
618,488 459,712 1,078,200
OTHER ASSETS Prepaid expenses Beneficial interest in assets held by others Notes Receivable Cash restricted for long term purposes Utility Deposits Total Other Assets TOTAL ASSETS
3,543 245,606 183,325 5,087 240 437,801 $
See Auditor's Report And Notes To Financial Statements 4
680 790,507 791,187
3,103,185
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY STATEMENT OF FINANCIAL POSITION APRIL 30, 2013 LIABILITIES AND NET ASSETS
CURRENT LIABILITIES Accounts Payable Facade Loan Disbursement Payable Accrued Vacation Pay Accrued Payroll Liabilities Rental Deposits
$
Total Current Liabilities
17,572 23,333 3,757 1,549 3,150 49,361
LONG TERM LIABILITIES Notes Payable Total Long Term Liabilities
114,667 114,667
Total Liabilities
164,028
NET ASSETS Unrestricted Undesignated Board designated Total Unrestricted Net Assets Temporarily Restricted Permanently Restricted Total Net Assets TOTAL LIABILITIES AND NET ASSETS
See Auditor's Report And Notes To Financial Statements 5
1,326,964 866,400 2,193,364 683,471 62,322 2,939,157 $
3,103,185
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY STATEMENT OF ACTIVITIES FOR THE YEAR ENDED APRIL 30, 2013
Revenues, gains and other support Contributions In-Kind Contributions Membership dues Program service fees and income Special events Interest income Net investment income Change in beneficial interest in assets held by others Rental income Other income
Unrestricted
Temporarily Permanently Restricted Restricted
$
$
20,896 207,647 117,626 135,054 123,584
468,240
$
2,150
2,560 2,942
72,004
Total $ 491,286 207,647 117,626 137,614 123,584 2,942 72,004 22,435 22,100 6,361
13,011
9,425
11,575
1,203,600
11,575
1,203,600
22,100 6,361
Total revenues, gains and other support
705,272
486,753
Total net assets released from restriction Total support, revenue and net assets released from restriction
262,620
(262,620)
967,892
224,133
Expenses and losses Program services Preservation and restoration Sidney Lanier Cottage Education Total program services expenses
282,630 89,078 11,135 382,843
282,630 89,078 11,135 382,843
Support services Management and general Fundraising Membership Development Total support services expenses
61,426 113,811 36,839 212,076
61,426 113,811 36,839 212,076
594,919
594,919
28,567
28,567
623,486
623,486
Total Expenses Loss on sales of restored properties Total Expenses and Losses Change in Net Assets Net Assets - Beginning of Year Net Assets - End of Year
344,406
224,133
11,575
580,113
1,848,958
459,338
50,748
2,359,044
62,322
$ 2,939,157
$ 2,193,364
See Auditor's Report And Notes To Financial Statements 6
$
683,471
$
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED APRIL 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES Change in Net Assets Adjustments to reconcile change in Net Assets to net Cash provided by (used in) operating activities: Depreciation Donated real property Unrealized gains on investments Contributions restricted for long term purposes Unrealized gains on beneficial interest in other assets Realized gains on investments Loss on sales of restored properties (Increase) Decrease in Operating Assets: Accounts receivable Escrow deposit receivable Interest Receivable Inventory Prepaid expenses (Decrease) Increase in Operating Liabilities: Accounts payable Payroll liabilities Accrued vacation Rental Deposits Escrow Deposits Total Adjustments Net Cash Provided By Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of investments Purchases of investments Property improvements-Preservation Projects Cash restricted for long term purposes Disbursements for facade loans Principal repayments from facade loans Proceeds from sales of restored properties Purchases of furniture and equipment Net Cash Provided By Investing Activities
See Auditor's Report And Notes To Financial Statements 7
$ 580,113
18,036 (126,500) (51,940) (2,150) (22,435) (10,975) 28,567 (824) 75,000 582 818 (511) (2,823) 27 (1,086) (2,100) 8,221 (90,092) 490,021
53,539 (39,841) (432,936) 10 (100,000) 56,486 496,200 (13,801) 19,657
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED APRIL 30, 2013
CASH FLOWS FROM FINANCING ACTIVITIES Contributions restricted for long term purposes Notes Payable repayment of principal Net Cash Used By Financing Activities
2,150 (69,428) (67,278)
NET INCREASE IN CASH AND CASH EQUIVALENTS
442,400
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
348,787
CASH AND CASH EQUIVALENTS AT END OF YEAR
SCHEDULE OF SUPPLEMENTAL DISCLOSURES Noncash Investing transactions: During the year the Organization received donations of preservation project property valued at $126,500.
See Auditor's Report And Notes To Financial Statements 8
$ 791,187
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2013
Note
1 Nature of Activities and Significant Accounting Policies Nature of Activities The Historic Macon Foundation, Inc. and Subsidiary is a private, nonprofit organization dedicated "to advocate for Macon’s historic and architectural heritage, to facilitating preservation efforts in our community, and to educate and inspire appreciation for our unique city", according to the organization’s most recent strategic plan. Its current programs include:
Preservation and Restoration: - Educating the public and public officials about revitalization and preservation - Revitalizing entire historic neighborhoods - Operating historic commercial rental property (1083 Washington Ave.) - Restoration of Other Historic District Buildings (Restoration) - Consultation services regarding historic certification of buildings and housing - Operation of revolving loan fund for low interest restoration loans. Education: - Conducting interpretive tours of historic sites - Sponsoring guest lectures with presentations related to literature, preservation and restoration - Publishing digital and print newsletters updating its membership and local officials of preservation efforts, including low-income housing and economic development
Sidney Lanier Cottage - Tours - Rentals - Museum Store - Historically-related events
9
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2013 Basis of Presentation: The financial statements of the Organization have been prepared on the accrual basis of accounting, in conformity with generally accepted accounting principles. Net assets are reported in each of the following three classes: unrestricted net assets, temporarily restricted net asses, and permanently restricted net assets. Unrestricted Net Assets - Net assets that are not subject to donor-imposed restrictions. Temporarily Restricted Net Assets - Net assets subject to donor-imposed 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 Permanently Restricted Net Assets - Net assets subject to donor-imposed stipulations that must be maintained permanently by the Organization. The investment return is available to support operations and preservation projects. Contributions and Grants: Contributions, including unconditional promises to give, are recorded as made. All contributions are available for unrestricted use unless specifically restricted by the donor. Conditional promises to give are recognized when the conditions on which they depend are substantially met. Investments The Organization reports investments in marketable securities with readily determinable fair values and all investments in debt securities are valued at their fair values in the statement of financial position. Unrealized gains and losses are included in the change in net assets. Real estate investments and equity securities without readily determinable fair values are stated at cost. Accounting for Wholly-Owned Subsidiary: The Organization owns a single member Limited Liability Company (LLC) named Historic Macon Properties, LLC to acquire and manage preservation projects until they are sold. The activities of this subsidiary are consolidated into the Organization's financial statements.
10
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2013 Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Income tax status: The Organization is a not-for-profit organization that is exempt from federal and state income tax under Section 501(c)(3) of the Internal Revenue Code. The Organization has also been classified as an entity that is not a private foundation within meaning of Section 509(a) and qualifies for deductible contributions as provided in Section 170(b)(1)(A)(vi). The Organization has evaluated the effect of generally accepted accounting principles for Uncertainty in Income Taxes. The Organization is subject to federal income tax on unrelated business income. Management believes that the Organization continues to satisfy the requirements of tax-exempt organization and therefore had no uncertain income tax positions at April 30, 2013. The Organizations federal returns, form 990, are subject to examination by the IRS, generally for three years after the date they were filed.
Cash and Cash Equivalents: For the purposes of the statement of cash flows, the Organization considers all unrestricted, highly liquid investments with an initial maturity of three months or less to be cash equivalents. Fair Value Measurements The Organization measures and discloses fair value measurements in accordance with authoritative literature. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, the inputs used to measure fair value are prioritized based on a three level hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are a follows: Level 1 - These inputs are based on unadjusted quoted market prices for identical assets or liabilities in an active market the Organization has the ability to access. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
11
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2013 Level 2 - These inputs relate to adjusting information from similar items that are traded in active markets or from identical or similar items in markets that are not active. Level 3 - These are unobservable inputs for the asset or liability, which are typically based on the Organization’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Property, Plant, and Equipment and Depreciation: Property, plant, and equipment assets are stated at cost for purchased items and at fair market value for donated items. Depreciation expense is computed on the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows: Years 40 7-8 15 4-10
Buildings Leasehold improvements Land improvements Furniture, Fixtures, and Equipment Vehicles
5
No depreciation is recognized on the Sidney Lanier Cottage building, as it is considered a historical treasure, with an extraordinary useful life. All costs associated with the properties of neighborhood revitalization projects were capitalized, with the exception of expenses related to properties currently being held for rent.
Advertising Costs: Advertising costs are expensed when incurred. Total advertising costs incurred for the year was $27,529 and is recorded on the schedule of functional expenses.
12
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2013 In-Kind Donations and Contributed Services: Material gifts in-kind items used in the Organization are recorded as support and expense at the time the items are placed into service or distributed. The Organization records various types of in kind support including contributed services. Contributed services are recognized if the services create or enhance non-financial assets or require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donations. Also, many individuals volunteer their time and perform a variety of tasks that assists the Organization with specific programs and various committee assignments throughout the year. Those contributed services do not meet the recognition criteria under generally accepted accounting principles. Collections The Organization's collections consists of letters and personal memorabilia of Sidney Lanier, and various antiques and artwork contributed by Middle Georgians. Each of the items is cataloged, preserved, and cared for, and activities verifying their existence and assessing their condition are performed periodically. The collection items are not capitalized. Purchases of collection items are recorded as decreases in unrestricted or permanently restricted net assets if purchased with donor-restricted assets. Contributions of collection items are recognized in the Statement of Activities based on the absence or existence and nature of donor-imposed restrictions. Expense Allocation Directly identifiable expenses are charged to programs and supporting services. Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies. Management and general expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the Organization.
13
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2013
Note
2 Notes Receivable Notes receivable consisted of the following at year end: The Organization administers a revolving loan fund that was established from various grant funds. Loans in the amounts of $5,000 and $10,000 are made to eligible participants for the restoration and preservation of historic properties. The loans are repayable in monthly installments over five years at an interest rate of 2% per annum. Interest is recognized over the term of the loan and is calculated using the simple interest method. The notes are carried at unpaid principal balances. The Organization has experienced no losses on the loans since the inception of the program in 2010. Therefore no allowance has been established for losses. The loans are secured by the presevation property of the participants.
Note
Notes Receivable Current Portion
$ 183,325 3,741
Total
$ 187,066
3 Beneficial interest in other assets Beneficial interests in assets held by others consisted of the following at year end: The Organization is the beneficiary an endowment fund for the Sidney Lanier Cottage with the Community Foundation of Central Georgia. The Organization has specified that the investment income from the funds be used for the repairs and maintenance of the Sidney Lanier Cottage. The funds are invested in an investment pool consisting of cash and long term securities. Changes in the fair value of these assets are reflected in the statement of activities as gains or losses. The Organization is the beneficiary an endowment fund for the Macon Dog Park with the Community Foundation of Central Georgia. The Organization has specified that the investment income from the funds be used for the repairs and maintenance of the Macon Dog Park. The funds are invested in an investment pool consisting of cash and long term securities. Changes in the fair value of these assets are reflected in the statement of activities as gains or losses.
14
$ 104,876
15,153
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2013 Note
3 Beneficial interest in other assets(continued) The Organization is the beneficiary of an endowment fund established for the Rose Hill Cemetery with the Community Foundation of Central Georgia. The funds are to be used for the repairs and maintenance of the Rose Hill Cemetery. The funds are invested in an investment pool consisting of cash and long term securities. Changes in the fair value of these assets are reflected in the statement of activities as gains or losses. Total
Note
125,577 $ 245,606
4 Temporarily Restricted Net Assets Temporarily restricted net assets are available for the following purposes: Preservation and Restoration Projects Macon Dog Park Facade Loans Education Legal Defense fund Rose Hill Cemetery Sidney Lanier Cottage Garden Vending Machines Total
Note
$ 428,204 18,971 84,523 17,044 6,585 123,145 3,999 1,000 $ 683,471
5 Net assets released from restriction Net assets were released from donor restrictions by incurring expenses satisfying the restricted purpose or by occurrence of other events specified by donors. Purpose restrictions accomplished for the following: Preservation and Restoration Projects Macon Dog Park Facade Loans Education Rose Hill Cemetery Vending Machines Total
$ 147,723 262 95,240 11,660 6,931 804 $ 262,620
15
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2013
Note
6 Permanently Restricted Net Assets Permanently restricted net assets were held for the following endowment purposes: Sidney Lanier Cottage Endowment Preservation Endowment
$ $
Note
58,729 3,593 62,322
7 Investments Capital City Trust Company manages a portfolio of investment securities through a trust arrangement. These funds are stated at fair values as determined by public stock market quotations and consisted of the following at April 30, 2013:
Cost Cash and Cash Equivalents Mutual Funds Stock & Equity Funds Fixed Income Securities
$
$
26,569 30,784 336,921 217,759 612,033
Fair Value $
$
26,569 45,039 480,437 224,373 776,418
Unrealized Appreciation (Depreciation) $ 14,255 143,516 6,614 $ 164,385
These funds represent board-designated amounts set aside in prior years for the purpose of providing an income stream for annual operations. This investment portfolio secures the lines of credit with Capital City Bank that are listed elsewhere in the notes to the financial statements. Investment return from all sources is summarized as follows: Interest Dividends Net Realized Gains and Losses Net Unrealized Gains and Losses
$
$ Less Management Fees Net Gain on Investments
$
16
2,294 12,315 10,975 51,940 77,524 (5,520) 72,004
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2013 Note
8 Land and Buildings-Preservation Projects, Net Land and buildings-preservation projects, net consisted of the following April 30, 2013: Neighborhood Properties Total
Note
$ $
618,488 618,488
9 Land, Property, and Equipment Land, property, and equipment consisted of the following at April 30, 2013: 1083 Washington Avenue $ 240,874 Sidney Lanier Cottage 238,562 Land Improvements 29,501 Furniture, Fixtures, and Equipment 71,870 Leasehold Improvements 4,646 Vehicle 500 Less Accumulated Depreciation (126,241) Total $ 459,712
17
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2013 Note
10 Endowment Funds The Organizations endowment fund consists of individual donor restricted endowment funds and funds designated by the Board of Trustees (“Board”) to function as endowments. The net assets associated with endowment funds, including those funds designated by the Board to function as endowments, are classified and reported based on the existence or absence of donor-imposed restrictions. The Organization has interpreted the State of Georgia’s enacted version of the Uniform Prudent Management of Institutional Funds Act (UPMIFA) as imposing a duty on the Organization to use good faith and prudent care in adopting investment and spending policies to preserve endowment assets while providing income and appreciation to meet the donors’ intention in perpetuity. As a result of this interpretation, the Organization classifies as permanently restricted net assets, (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the Organization in a manner consistent with the standard of prudence prescribed by UPMIFA. The Organization made a decision to allow spending from endowment funds based on the current spending policy and limited the spending, where applicable, to available cash balances and investment return. In accordance with UPMIFA, the Organization considered the following factors in making their determination to appropriate or accumulate endowment funds: 1) The duration and preservation of the fund, 2) The purposes of the Organization and the donor restricted endowment fund, 3) General economic conditions, 4) The possible effect of inflation and deflation, 5) The expected total return from income and appreciation of investments, 6) Other resources of the Organization, and 7) The investment policies of the Organization. Where the Board designates unrestricted funds as endowments, they are classified as unrestricted net assets.
18
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2013 Note
10 Endowment Funds (continued) Investment Return Objectives, Risk Parameters and Strategies. The Organization has adopted investment and spending policies, approved by the Board of Trustees, for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment funds while also maintaining the purchasing power of those endowment assets over the long-term. Accordingly, the investment process seeks to achieve an after-cost total real rate of return, including investment income as well as capital appreciation, which exceeds the annual distribution with acceptable levels of risk. Endowment assets are invested in a well diversified asset mix, which includes equity and debt securities, that is intended to result in a consistent inflation-protected rate of return that has sufficient liquidity to make an annual distribution of 4.75%, while growing the funds if possible. Therefore, the Organization expects its endowment assets, over time, to produce an average rate of return of approximately 8% annually. 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. Endowment funds with deficiencies. From time to time, the fair value of assets associated with individual donor endowment funds may fall below the value of the initial and subsequent donor gift amounts (deficit). When donor endowment deficits exist, they are classified as a reduction of unrestricted net assets. No deficits of this nature were reported in unrestricted net assets as of April 30, 2013. Endowment net asset composition by type of fund as of April 30, 2013 is as follows: Unrestricted Donor-restricted endowment funds Board-designated endowment funds Total Funds
$ $
866,400 866,400
19
Permanently Restricted
Total
$
62,322
$
$
62,322
$
62,322 866,400 928,722
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2013 Note
10 Endowment Funds (continued) Changes in endowment net assets as of April 30, 2013 is as follows:
Unrestricted Endowment net assets, beginning of the year $ Contributions Interest Investment income Market valuation adjustments Endowment Net Assets April 30, 2013
$
794,397
$
2,294 17,769 51,940 866,400
20
Total Net Endowment Assets
Permanently Restricted 50,748 2,150
$
845,145 2,150 2,294 18,676 60,457
$
928,722
907 8,517 $
62,322
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2013 Note
11 Notes Payable Notes payable consisted of the following at April 30, 2013: Capital City Bank - Line of Credit - Neighborhood Properties The Organization has a line of credit with Capital City Bank which matures annually in June. Interest is payable monthly at the J.P. Morgan Chase prime rate. At April 30, 2013 the rate was 4.75%. The line is secured by the portfolio of investments managed by Capital City Trust Company for the Organization. The maximum amount available on this line of credit is $600,000.
$
Capital City Bank - Line of Credit - Other The Organization has a revolving line of credit with Capital City Bank which matures annually in June. Interest is payable monthly at the J.P. Morgan Chase Prime rate. At April 30, 2013 the rate was 4.75%. The line is secured by the portfolio of investments managed by Capital City Trust Company for the Organization. Proceeds from the loan are being used for the various property rehabilitation programs and for working capital. The maximum amount available on this line of credit is $100,000. Historic Hills and Heights Development Corporation The Organization has a promissory note payable to Historic Hills and Heights Development Corporation. Principal and interest is payable upon the sale of the property located at 1311 Ross Street. Proceeds from the loan are being used to construct a single family dwelling at the property. There is a fixed loan fee payable at the time of sale for the amount of $2,207. The promissory note is secured by the above referenced real estate. Construction of the property has been completed and it is available for sale.
114,667
Total Notes Payable
$ 114,667
Future scheduled maturities of notes payable are as follows: Years Ending April 30: 2013
$ 114,667
21
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2013
Note
11 Notes Payable (continued) The Organization expects the short term obligations to be refinanced upon their maturity and has demonstrated the ability to obtain long term financing based on historical information. Therefore all debt obligations have been classified as long term liabilities.
Note
12 Program Service Fees and Income Program service fees and income consisted of the following activities during the year: Sidney Lanier Cottage Tours Gift Shop Sales Rental Income Total Sidney Lanier Cottage
$
5,691 18,171 9,572 33,434
$
715 6,023 2,560 74,082 20,800 104,180 137,614
Other Program Services Publications and Calendar Sales Educational Program Fees Preservation Programs Revitalization project fees Other fees Total-Other Total Program Service Fees and Income Note
$
13 Special Events Special events consisted of the following activities during the year: Flea Market Decorators Showhouse Sidney Lanier Cottage Events Idea House Ingleside Dedication Total
$
$
22
36,982 69,310 7,134 5,658 4,500 123,584
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2013
Note
14 Interest Costs Interest costs incurred and capitalized for the year are summarized as follows:
Note
Interest paid-current year Total interest costs incurred Less interest costs expensed currently
$
1,290 1,290 (1,290)
Capitalized interest-beginning of year Less Capitalized interest included in cost of restored properties sold
$
25,677
Capitalized interest-end of year
$
(142) 25,535
15 Gain (Loss) on Sales of Restored Properties The following is the detail of sales of restored properties during the year ended April 30, 2013: Restoration Costs Property Location Contract Price & Selling Expenses Gain/(Loss) 1069 Elm St. 1078 Ash St. 1116 Ash St 1130-1132 Ash St. 1276 Calhoun St. Total
$
$
2,500 124,900 134,000 99,900 134,900 496,200
23
$
$
(2,092) $ (186,363) (144,105) (91,049) (101,158) (524,767) $
408 (61,463) (10,105) 8,851 33,742 (28,567)
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2013
Note
16 Fair Value Measurement The following table represents the assets and liabilities that were measured on a recurring basis as of April 30, 2013.
Investments Beneficial interest in assets
$
Total
$
Level 1 776,418 776,418
Level 2 $ $
Level 3 $
245,606 245,606
$
The following methods and assumptions were used to determine the fair value of each class of the financial instruments: Investments - Fair values are determined based on the quoted market prices found on the national market or exchanges. (Note 7) Beneficial interest in assets held by others - Valued at the Organization's pro-rata share of the community foundation's investment pools. (Note 3) Note
17 In-Kind Contributions The value of donated materials and services included in the financial statements and the corresponding expenses for the year ended April 30, 2013 are as follows. In-kind Support: Donated materials and services for restoration projects Donated items for Flea Market Donated rent
$ $ $
22,050 35,097 24,000 81,147
Expenses and Losses Advertising expense Rent expense Donated items for Flea Market
$ $
24
22,050 24,000 35,097 81,147
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2013
Note
18 Related Party Transactions and Disclosures A Trustee of the Organization is a licensed real estate agent who is associated with a real estate company that sold restored properties during the year. The real estate company received broker commissions on the sale of properties totaling $20,690.
Note
19 Concentrations of Credit Risk from Excess Cash Deposits The Organization maintains its cash balances at three separate local financial instituions. Accounts at each institution are insured by the Federal Deposit Insurance Corporation up to $250,000. At April 30, 2013, the Organization's uninsured cash balances total $304,855.
Note
20 Evaluation of Subsequent Events Management has evaluated subsequent events through December 11, 2013, the date the financial statements were available to be issued.
25
SUPPLEMENTARY INFORMATION
S.W. Hall & Associates, LLC Certified Public Accountants 1291 Jefferson Terrace Macon, GA 31201
Independent Auditor's Report On Supplementary Information
To the Board of Directors of Historic Macon Foundation, Inc. and Subsidiary 935 High St Macon, GA 31201
We have audited the financial statements of Historic Macon Foundation, Inc. as of and for the year ended April 30, 2013, and have issued our report thereon dated December 11, 2013, which contained an unmodified opinion on those financial statements. Our audit was performed for the purpose of forming an opinion on the financial statements as a whole. The schedule of functional expenses is presented for the purposes of additional analysis and is not a required part of the 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 financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.
December 11, 2013
Telephone: (478) 741-9966
Email:cpa@swhallcpa.com 27
Fax: (478) 741-1483
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY SCHEDULE OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED APRIL 30, 2013 Program Services Sidney Lanier Cottage Education
Preservation and Restoration Payroll Expenses Salaries and wages Payroll taxes Employee benefits
$
Total payroll expenses Other Expenses Advertising and marketing Computer expenses Conferences, workshops and meetings Contract Services Dues and subscriptions Insurance Interest Miscellaneous Museum store purchases Payment processing fees Professional fees Rent Repairs & Maintenance Supplies Sales Tax Travel Truck expense Utilities
133,437 9,855 2,213
$
39,784 2,938 660
145,504
43,382
25,866 7,012 23,004 21,582
1,662
2,567 1,290 1,106
7,898
$
8,882 655 147
Total Program Services
$
9,684
198,570 27,528 7,012 23,004 22,405
823 592
11,057 1,290 1,106 9,779 4,149 5,982
9,779 4,149 5,720
182,103 13,448 3,019
262
37,829 1,351 36 653 1,241 1,375
4,232
317
45,617 7,390 36 653 1,241 5,925
134,781
38,482
909
174,173
Total expenses before depreciation
280,286
81,863
10,594
372,743
Depreciation expense Total expenses
2,345 282,630
7,215 89,078
541 $ 11,135
10,100 382,843
Total other expenses
$
7,788 6,039
$
See Auditor's Report And Notes To Financial Statements 28
$
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY SCHEDULE OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED APRIL 30, 2013 Supporting Services Management and Membership General Fundraising Developmen Payroll Expenses Salaries and wages Payroll taxes Employee benefits
$
Total payroll expenses
25,696 1,898 426
$
28,020
Other Expenses Advertising and marketing Computer expenses Conferences, workshops and meetings Contract Services Dues and subscriptions Insurance Interest Miscellaneous Museum store purchases Payment processing fees Professional fees Rent Repairs & Maintenance Supplies Sales Tax Travel Truck expense Utilities
18,507 1,367 307
$
20,180
10,916 1,243 279
Total Expenses
$
12,438
237,222 17,955 4,031 259,208
1,773 13,316
65,279
17,630
2,222
952
1,481
27,528 7,012 23,004 22,405 1,411 19,744 1,290 1,106 9,779 4,149 12,732 24,000 47,390 103,616 36 653 1,241 10,579
29,618
92,008
21,876
317,674
Total expenses before depreciation
57,638
112,188
34,314
576,883
Depreciation expense Total expenses
3,788 61,426
1,623 113,811
2,525 36,839
18,036 594,919
1,411 4,146
1,777
2,764
6,750 24,000
Total other expenses
$
$
See Auditor's Report And Notes To Financial Statements 29
$
$