HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY FINANCIAL STATEMENTS AND AUDITOR'S REPORT FOR THE YEAR ENDED APRIL 30, 2012
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 SCHEDULE OF FUNCTIONAL EXPENSES
2
27-28
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 statement of financial position of Historic Macon Foundation, Inc. and Subsidiary, (a not-for-profit organization) as of April 30, 2012, and the related statements of activities and cash flows for the year then ended. These financial statements are the responsibility of the Organization's management. Our responsibility is to express an 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 includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion the 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, 2012, 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. Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The schedule of functional expenses on pages 27 and 28, is presented for 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 the 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 28, 2012
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, 2012
ASSETS
CURRENT ASSETS Cash on hand Cash in bank Total Cash & Cash Equivalents
$
Investments Inventories Accounts receivable Total Current Assets
680 348,107 348,787 727,651 1,637 14,195 1,092,270
PROPERTY AND EQUIPMENT Land and buildings-Preservation Projects, net Property and Equipment, net Total Property and Equipment
575,403 463,948 1,039,351
OTHER ASSETS Prepaid expenses Escrow deposit Beneficial interest in assets held by others Notes Receivable Cash restricted for long term purposes Utility Deposits Total Other Assets TOTAL ASSETS
3,235 75,000 228,063 147,026 5,077 240 458,640 $
See Auditor's Report And Notes To Financial Statements 4
2,590,261
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY STATEMENT OF FINANCIAL POSITION APRIL 30, 2012 LIABILITIES AND NET ASSETS
CURRENT LIABILITIES Accounts Payable Facade Loan Disbursement Payable Lease Payable Accrued Vacation Pay Accrued Payroll Liabilities Rental Deposits Escrow Deposits
$
Total Current Liabilities
20,395 8,333 1,899 4,843 1,522 5,250 4,881 47,123
LONG TERM LIABILITIES Notes Payable Total Long Term Liabilities
184,095 184,095
Total Liabilities
231,218
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
1,054,561 794,397 1,848,958 459,338 50,748 2,359,043 $
2,590,261
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY STATEMENT OF ACTIVITIES FOR THE YEAR ENDED APRIL 30, 2012
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 Total revenues, gains and other support
Unrestricted
Temporarily Permanently Restricted Restricted
$
$
3,534 50,133 117,060 117,154 60,242 9,641 24,882
236,689
$
1,872 13,788
24,321 505 407,472
252,349
Total
3,156
$ 243,379 50,133 117,060 117,154 60,242 11,512 24,882 (514) 13,275 24,321 505
2,642
662,463
2,642
662,463
Total net assets released from restriction Total support, revenue and net assets released from restriction
16,933
(16,933)
424,405
235,416
Expenses and losses Program services Preservation and restoration Sidney Lanier Cottage Education Total program services expenses
275,662 91,406 10,959 378,027
275,662 91,406 10,959 378,027
Support services Management and general Fundraising Membership Development Total support services expenses
63,295 80,348 38,214 181,857
63,295 80,348 38,214 181,857
559,884
559,884
421
421
560,305
560,305
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
(135,900)
235,416
2,642
102,158
1,984,858
223,922
48,106
2,256,886
50,748
$ 2,359,044
$ 1,848,958
See Auditor's Report And Notes To Financial Statements 6
$
459,338
$
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED APRIL 30, 2012
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 Unrealized gains on investments Contributions restricted for long term purposes Unrealized losses (gains)on beneficial interest in other assets Realized gains on investments Loss on sales of restored properties (Increase) Decrease in Operating Assets: Accounts receivable Interest Receivable Inventory Prepaid expenses (Decrease) Increase in Operating Liabilities: Accounts payable Accrued interest Payroll liablities Accrued vacation Rental 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 Principal repayments from other loans Proceeds from sales of restored properties Beneficial interest in assets held by others Net Cash Provided By Investing Activities
See Auditor's Report And Notes To Financial Statements 7
$ 102,158
15,772 (11,364) (2,655) 2,173 (11,958) 421 12,496 582 (1,637) (934) 13,987 317 (1,902) (1,175) 3,450 17,573 119,731
134,048 (126,399) (1,149,115) 29 (88,333) 25,382 215,000 1,156,850 (116,218) 51,244
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED APRIL 30, 2012
CASH FLOWS FROM FINANCING ACTIVITIES Contributions restricted for long term purposes Notes Payable borrowings Notes Payable repayment of principal Net Cash Used By Financing Activities
2,655 618,180 (920,681) (299,846)
NET DECREASE IN CASH AND CASH EQUIVALENTS
(128,871)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR
See Auditor's Report And Notes To Financial Statements 8
477,657 $ 348,787
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2012
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 advocating for Macon’s historic and architectural heritage, to facilitating preservation efforts in our community, and to educating and inspiring 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, 2012 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, 2012 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, 2012. The Organizations federal retrurns, 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, 2012 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 $5,817 and is recorded on the statement of functional expenses.
12
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2012 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, 2012
Note
2 Notes Receivable Notes receivable consisted of the following at year end:
Note
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.
$ 147,026
Total
$ 147,026
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
$
97,302
15,153
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2012
The Organization is the beneficiary of an endowment fund established fund 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
115,609 $ 228,064
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
$ 130,544 17,484 176,526 8,204 6,578 114,199 3,999 1,804 $ 459,338
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 Legal Defense fund Rose Hill Cemetery Total
$
$
15
10,794 7 3,670 58 29 2,375 16,933
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2012 Note
6 Permanently Restricted Net Assets Permanently restricted net assets were held for the following endowment purposes: Sidney Lanier Cottage Endowment Preservation Endowment
$ $
Note
47,155 3,593 50,748
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, 2012:
Cost Cash and Cash Equivalents Mutual Funds Stock & Equity Funds Fixed Income Securities
$
$
23,992 31,220 342,235 218,042 615,489
Fair Value $
$
23,992 39,188 439,093 225,378 727,651
Unrealized Appreciation (Depreciation) $ 7,968 96,858 7,336 $ 112,162
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
2,472 12,958 12,043 2,691 30,164 (5,282) 24,882
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2012 Note
8 Land and Buildings-Preservation Projects, Net Land and buildings-preservation projects, net consisted of the following April 30, 2012: Neighborhood Properties Total
Note
$ $
575,403 575,403
9 Land, Property, and Equipment Land, property, and equipment consisted of the following at April 30, 2012: 1083 Washington Avenue $ 240,874 Sidney Lanier Cottage 238,562 Land Improvements 29,501 Furniture, Fixtures, and Equipment 58,069 Leasehold Improvements 4,646 Vehicle 500 Less Accumulated Depreciation (108,204) Total $ 463,948
17
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2012 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, 2012 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 5%, 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, 2012. Endowment net asset composition by type of fund as of April 30, 2012 is as follows: Unrestricted Donor-restricted endowment funds Board-designated endowment funds Total Funds
$ $
794,397 794,397
19
Permanently Restricted
Total
$
50,748
$
$
50,748
$
50,748 794,397 845,145
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2012 Note
10 Endowment Funds (continued) Changes in endowment net assets as of April 30, 2012 is as follows:
Unrestricted Endowment net assets, beginning of the year $ Contributions Interest Investment income Market valuation adjustments Amounts appropriated for expenditure Endowment Net Assets April 30, 2012
$
809,005 1,250 2,741 19,719 864
Total Net Endowment Assets
Permanently Restricted $
48,105 3,156
$
1,660 (2,173)
(39,182) 794,397
20
857,110 4,406 2,741 21,379 (1,309) 39,182
$
50,748
$
845,145
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2012 Note
11 Notes Payable Notes payable consisted of the following at April 30, 2012: 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, 2012 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.
$
57,668
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, 2012 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.
11,760
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
$ 184,095
Future scheduled maturities of notes payable are as follows: Years Ending April 30: 2013
$ 184,095
21
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2012
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 Museum Store Sales Rental Income Total Sidney Lanier Cottage
$
5,466 14,572 15,830 35,868
$
90 3,995 389 71,991 4,821 81,286 117,154
Other Program Services Publications and Calendar Sales Historical and Architectural Tour and Lecture Fe 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 Sidney Lanier Cottage Events Ingleside Dedication Total
$ $
22
29,398 11,294 19,550 60,242
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2012
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 Total interest capitalized current year
$
$
16,980 16,980 (7,213) 9,767
Capitalized interest-beginning of year Less Capitalized interest included in cost of restored properties sold Capitalized interest-end of year
$
25,677
$
(8,118) 27,326
15 Gain (Loss) on Sales of Restored Properties The following is the detail of sales of restored properties during the year ended April 30, 2012: Restoration Costs Property Location Contract Price & Selling Expenses Gain/(Loss) 1030 Elm St. 1035 Elm St. 1326 Ross St. 1039 Elm St. 1216 Ross St. 1260 Calhoun St. 1342 Ross St. 923 Washington Ave. Total
$
$
113,000 126,900 127,900 71,000 159,900 108,250 139,900 310,000 1,156,850
23
$
$
(118,687) $ (144,072) (148,042) (73,748) (153,585) (107,395) (131,515) (280,227) (1,157,271) $
(5,687) (17,172) (20,142) (2,748) 6,315 855 8,385 29,773 (421)
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2012
Note
16 Fair Value Measurement The following table represents the assets and liabilities that were measured on a recurring basis as of April 30, 2012.
Investments Beneficial interest in assets
$ Total $
Level 1 727,651 727,651
Level 2 $ $
Level 3 $
228,064 228,064
$
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, 2012 are as follows. In-kind Support: Donated items for Flea Market Donated rent
$ $
26,133 24,000 50,133
$
24,000 26,133 50,133
Expenses and Losses Rent expense Donated items for Flea Market
24
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS APRIL 30, 2012
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 $55,005.
Note
19 Evaluation of Subsequent Events Management has evaluated subsequent events through December 28, 2012, the date the financial statements were available to be issued.
25
SUPPLEMENTARY INFORMATION
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY SCHEDULE OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED APRIL 30, 2012 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 Bank charges Computer expenses Conferences, workshops and meetings Contract Services Dues and subscriptions Insurance Interest Miscellaneous Museum store purchases Professional fees Rent Repairs & Maintenance Supplies Taxes Travel Truck expense Utilities
108,190 8,356 1,663
$
36,868 2,846 567
118,209
40,281
1,701 2,959 4,194 10,015 86,078
4,115
$
8,638 667 133
Total Program Services
$
9,438
167,928 5,816 2,959 4,194 10,015 87,507
1,429
3,215 6,890 5,322
9,892 322
153,697 11,869 2,362
742
13,848 7,213 5,322 7,826 340
7,826 340 28,179 2,074 128 1,194 1,784 1,328
10,770 6,376
4,087
307
38,949 8,450 128 1,194 1,784 5,722
155,403
44,816
1,048
201,267
Total expenses before depreciation
273,612
85,097
10,486
369,195
Depreciation expense Total expenses
2,050 275,662
6,309 91,406
473 $ 10,959
8,832 378,027
Total other expenses
$
$
See Auditor's Report And Notes To Financial Statements 27
$
HISTORIC MACON FOUNDATION, INC. AND SUBSIDIARY SCHEDULE OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED APRIL 30, 2012 Supporting Services Management and Membership General Fundraising Development Payroll Expenses Salaries and wages Payroll taxes Employee benefits
$
Total payroll expenses
22,306 1,723 343
$
24,372
Other Expenses Advertising and marketing Bank charges Computer expenses Conferences, workshops and meetings Contract Services Dues and subscriptions Insurance Interest Miscellaneous Museum store purchases Professional fees Rent Repairs & Maintenance Supplies Taxes Travel Truck expense Utilities
17,323 1,339 266
$
18,928
15,757 1,217 242
Total Expenses
$
17,216
209,083 16,147 3,214 228,444
7,309 11,951
32,855
13,897
2,146
920
1,430
5,816 2,959 4,194 10,015 87,507 1,982 24,729 7,213 5,322 7,826 7,371 24,000 46,258 67,153 128 1,194 1,784 10,217
35,611
60,000
18,790
315,668
Total expenses before depreciation
59,983
78,928
36,006
544,112
Depreciation expense Total expenses
3,312 63,295
1,419 80,348
2,208 38,214
15,772 559,884
1,982 5,193
2,226
3,462
7,031 24,000
Total other expenses
$
$
See Auditor's Report And Notes To Financial Statements 28
$
$