Visit Corpus Christi Annual Audit 2022 - 2023

CORPUS CHRISTI CONVENTION & VISITORS BUREAU and AFFILIATE Combined Audited Financial Statements and Supplementary Information September 30, 2023 and 2022

CORPUS CHRISTI CONVENTION & VISITORS BUREAU and AFFILIATE September 30, 2023 and 2022 Table of Contents Page Independent Auditor’s Report

1-2

Combined Statements of Financial Position as of September 30, 2023 and 2022

3

Combined Statements of Activities for the Years ended September 30, 2023 and 2022

4

Statement of Functional Expenses for the Year ended September 30, 2023

5

Statement of Functional Expenses for the Year ended September 30, 2022

6

Combined Statements of Cash Flows for the Years ended September 30, 2023 and 2022

7

Notes to Combined Financial Statements

8-13

Supplementary Information Combining Statements of Financial Position as of September 30, 2023 and 2022

15-16

Combining Statements of Activities for the Years ended September 30, 2023 and 2022

17-18

Independent Auditor’s Report January 18, 2024 To the Board of Directors Corpus Christi Convention & Visitors Bureau and Affiliate Corpus Christi, Texas Opinion We have audited the combined financial statements of the Corpus Christi Convention & Visitors Bureau and Affiliate, which comprise the combined statements of financial position as of September 30, 2023 and 2022 and the related combined statements of activities, functional expenses, and cash flows for the years then ended, and the related notes to the combined financial statements.

In our opinion, the accompanying combined financial statements present fairly, in all material respects, the combined financial position of Corpus Christi Convention & Visitors Bureau and Affiliate as of September 30, 2023 and 2022, and the changes in their net assets, and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Corpus Christi Convention & Visitors Bureau and Affiliate and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Corpus Christi Convention & Visitors Bureau and Affiliate ability to continue as a going concern for one year after the date that the financial statements are issued.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the combined financial statements, as a whole, are free from material misstatement, whether due to fraud or error, and to 1

issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the combined financial statements.

In performing an audit in accordance with GAAS, we:  



 

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.

Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Obtain an understanding of internal control relevant to the audit 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 Corpus Christi Convention & Visitors Bureau and Affiliate’s internal controls. Accordingly, no such opinion is expressed.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the combined financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Corpus Christi Convention & Visitors Bureau and Affiliate’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

Report on Supplementary Information Our audit was conducted for the purpose of forming an opinion on the combined financial statements as a whole. The accompanying supplementary combining information included on pages 15-18 is presented for purposes of additional analysis and 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 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 information is fairly stated in all material respects in relation to the combined financial statements as a whole.

Adamson & Company, LLC 2

CORPUS CHRISTI CONVENTION & VISITORS BUREAU AND AFFILIATE Combined Statements of Financial Position September 30, 2023 2022 ASSETS Current Assets Cash and Cash Equivalents Certificates of Deposit Accounts Receivable, Net Prepaid Expenses

$ 3,120,660 20,224 169,314

$ 2,362,627 456,149 89,093 207,502

Total Current Assets

3,310,198

3,115,371

352,163 474,555

221,080 -

826,718

221,080

$ 4,136,916

$ 3,336,451

Noncurrent Assets Depreciable and Intangible Assets, Net (Note 3) Right-of-Use Assets Under Operating Leases (Note 4) Total Noncurrent Assets Total Assets

LIABILITIES AND NET ASSETS Current Liabilities Accounts Payable Accrued Expenses Deferred Revenue Current Portion of Obligations Under Operating Leases (Note 4)

$

290,113 64,663 215,847

$

372,147 60,474 202,017

153,820

-

Total Current Liabilities

724,443

634,638

Long-Term Liabilities Obligations Under Operating Leases, Less Current Portion (Note 4)

328,198

-

1,052,641

634,638

3,075,278

2,692,816

8,997

8,997

Total Net Assets

3,084,275

2,701,813

Total Liabilities and Net Assets

$ 4,136,916

$ 3,336,451

Total Liabilities Net Assets Net Assets Without Donor Restrictions: Undesignated Net Assets With Donor Restrictions: VCC Cares Program

See Notes to Combined Financial Statements

3

CORPUS CHRISTI CONVENTION & VISITORS BUREAU AND AFFILIATE Combined Statements of Activities

Year Ended September 30, 2023 2022 Revenues Without Donor Restrictions City of Corpus Christi Contract (Note 5) Group Incentive Program (Note 5) Community Revenue, Sponsorships and Donations Cooperative Advertising and Trade Shows Sales at Visitor Center Interest Income PPP Loan Forgivemess (Note 6) Miscellaneous Income Net Assets Released from Restrictions

$ 7,100,423 589,794 10,370 33,862 43,464 78,031 2,977 -

$ 6,594,471 380,051 46,964 30,261 22,654 4,719 228,853 50,000

Total Revenues Without Donor Restrictions

7,858,921

7,357,973

Revenues With Donor Restrictions (Note 7) With Donor Restrictions - Christmas Tree Net Assets Released from Restrictions Total Revenues With Donor Restrictions Total Revenues Expenditures Program Services Advertising Charitable Giving Community Events Conference Sales Visiting Services Supporting Services Management and General Total Expenditures Increase in Net Assets Net Assets, Beginning of Year Net Assets, End of Year

-

50,000 (50,000)

-

-

7,858,921

7,357,973

4,115,511 5,000 1,197,701 577,440

3,739,992 30,913 1,148,518 636,923

1,580,806

798,375

7,476,459

6,354,721

382,462

1,003,252

2,701,813

1,698,561

$ 3,084,275

$ 2,701,813

See Notes to Combined Financial Statements

4

CORPUS CHRISTI CONVENTION & VISITORS BUREAU AND AFFILIATE Combined Statement of Functional Expenses Year Ended September 30, 2023

Program Services Charitable Conference Giving Sales

Advertising Marketing and Promotional Bad Debts Community Relations Convention Commitments Dues & Subscriptions Giveaway Promotions Local Meetings/Events Market Research Meals & Entertainment Media Advertising Printed Collateral Materials Public Relations Special Projects Sponsorship and Awards Staff Development Trade Shows/Missions Travel-Conference Meals VCC Ambassador VIC Cost of Goods Sold Website & Digital Assets

Administrative Bank Fees Board Meeting Expense Computer Expense Depreciation/Amortization Insurance Local Meetings/Events Maintenance & Repair Miscellaneous Expense Office Supplies Payroll Expense Professional Fees Rent & Utilities Staff Development

Total Expenses

$

1,124 47,019 6,293 315,958 2,692,409 392 79,545 248,568 492 17 112,318

$

5,000 -

$

589,122 2,033 46,907 25,042 419 28,816 20,542

Visiting Services

$

8,627 50 19,156 1,131 1,662 64,422 872 47,452 42,415 -

Supporting Services Management and General

$

3,000 64,236 51,431 10,783 126,161 18,352 13,825 150 -

Total

$

3,000 72,863 590,245 100,533 72,355 1,131 341,000 12,445 2,692,409 65,233 80,417 422,181 5,000 18,352 29,308 13,841 150 42,415 132,860

3,504,134

5,000

712,880

185,787

287,937

4,695,739

663 1,709 540,999 4,375 63,631

-

146 5,492 2,214 461,372 3,300 12,296

6,976 12,097 327,056 29,304 16,221

2,556 7,532 42,587 93,730 10,099 1,449 145 9,489 52,450 711,211 133,599 166,399 61,623

2,556 7,532 42,733 93,730 10,099 7,605 7,121 9,489 68,470 2,040,639 133,599 203,378 153,771

611,377

-

484,821

391,654

1,292,869

2,780,720

5,000

$ 1,197,701

$ 4,115,511

$

$

See Notes to Combined Financial Statements

577,440

$

1,580,806

$

7,476,459

5

CORPUS CHRISTI CONVENTION & VISITORS BUREAU AND AFFILIATE Combined Statement of Functional Expenses Year Ended September 30, 2022

Advertising Marketing and Promotional Community Relations Convention Commitments Dues & Subscriptions Giveaway Promotions Market Research Marketing Projects Media Advertising Printed Collateral Materials Public Relations Staff Development Trade Shows/Missions Travel VIC Cost of Goods Sold Website & CRM

$

Administrative Bank Fees Board Meeting Expense Computer Expense Depreciation/Amortization Insurance Local Meetings/Events Maintenance & Repair Office Supplies Payroll Expense Professional Fees Rent & Utilities Staff Development

Total Expenses

$

5,029 38,649 1,675 280,871 357,095 2,204,472 1,404 126,028 204 3,702 6,366 81,495

Program Services Community Conference Events Sales

$

28,883 67 1,963 -

$

1,524 375,483 95,106 9,800 22,297 2,386 82 111,850 71 45,042

Visiting Services

$

4,645 45,100 527 42,031 4,211 116,343 13,549 (557) 30,346 -

Supporting Services Management and General

$

37,649 95,848 15,389 1,204 14,630 23,900 15,213 80

Total

$

77,730 420,583 230,130 53,574 318,557 362,510 2,204,472 122,095 126,028 14,916 153,002 21,094 30,346 126,617

3,106,991

30,913

663,641

256,195

203,915

4,261,655

(165) 38 885 591,856 3,425 36,962

-

1,876 11,628 413 447,402 2,200 21,358

838 4,803 7,520 320,632 31,834 15,101

983 12,995 47,886 56,693 10,534 870 4,307 43,675 159,486 111,111 101,922 43,999

983 14,871 47,721 56,693 10,534 13,373 9,109 52,493 1,519,376 111,111 139,381 117,421

633,001

-

484,877

380,729

594,460

2,093,066

30,913

$ 1,148,518

3,739,992

$

$

See Notes to Combined Financial Statements

636,923

$

798,375

$

6,354,721

6

CORPUS CHRISTI CONVENTION & VISITORS BUREAU AND AFFILIATE Combined Statements of Cash Flows Year Ended September 30, 2023 2022 Cash Flows from Operating Activities Increase in Net Assets Adjustments to Reconcile Changes in Net Assets to Net Cash Provided by Operating Activities: Depreciation and Amortization PPP Loan Forgiveness Changes in Operating Assets and Liabilities: Accounts Receivable Prepaid Expenses Accounts Payable Accrued Expenses Deferred Revenue

$

Net Cash Provided by Operating Actvities Cash Flows from Investing Activities Purchases of Depreciable and Intangible Assets Reinvestment of Interest Maturity of Certificates of Deposit Net Cash Provided (Used) by Investing Actvities Net Increase in Cash Beginning Cash Ending Cash

$

See Notes to Combined Financial Statements

382,462

$

1,003,252

93,730 -

56,693 (228,853)

68,869 38,188 (82,034) 11,652 13,830

140,239 50,854 71,271 (1,649) 202,017

526,697

1,293,824

(224,813) 456,149

(167,773) (650) -

231,336

(168,423)

758,033

1,125,401

2,362,627

1,237,226

3,120,660

$

2,362,627

7

CORPUS CHRISTI CONVENTION & VISITORS BUREAU and AFFILIATE Notes to the Combined Financial Statements September 30, 2023 and 2022 Note 1 – Summary of Significant Accounting Policies Nature of Activities The Corpus Christi Convention & Visitors Bureau (CVB) was established to market Corpus Christi, Texas and surrounding areas as a year-round convention and visitor destination. Services include marketing, support services to conventions, advice to local municipalities regarding the development of area activities, education about local tourism, and the operation of a visitor center.

The CVB is supported mostly by contractual payments of hotel occupancy taxes from the City of Corpus Christi in exchange for marketing services provided. The City of Corpus Christi also appoints the Board of Directors for the CVB. CVB operates under an assumed name of “Visit Corpus Christi” (VCC) that appears on marketing materials and websites.

The CVB created a separate organization, the Corpus Christi CVB Heritage Society (Heritage Society), as a non-profit organization that would organize, market and host festivals and events for the Corpus Christi area. The name of the Heritage Society was changed to the Gulf Coast Capital Tourism Foundation (Foundation) in March 2022.

These financial statements represent combined financial information of the CVB and the Foundation.

For the years ended September 30, 2023 and 2022, the CVB and the Foundation were under common control and governance. All significant inter-organization transactions and balances between the CVB and the Foundation have been eliminated in combination.

Basis of Presentation The accompanying combined financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America.

Cash and Cash Equivalents The CVB and the Foundation consider all highly liquid investments, purchased with a maturity of three months or less, to be cash equivalents. Cash received from the City of Corpus Christi in relation to hotel occupancy tax funds are required to be held in a separate account.

Certificates of Deposit The CVB held several certificates of deposit with varying maturity dates throughout the fiscal year ended September 30, 2022. As of September 30, 2023, all the certificates of deposit held by the CVB have matured.

8

CORPUS CHRISTI CONVENTION & VISITORS BUREAU and AFFILIATE Notes to the Combined Financial Statements September 30, 2023 and 2022 Note 1 – Summary of Significant Accounting Policies (continued) Accounts Receivable The CVB and the Foundation expect accounts receivable to be collected within one year. The allowance method is used to account for uncollectible accounts receivable. No allowance for doubtful accounts has been deemed necessary as of September 30, 2023, and 2022.

Depreciable and Intangible Assets Depreciable and intangible assets are recorded at cost when purchased or put into use. Management chooses to expense any depreciable or intangible assets under $5,000. Repairs and maintenance which do not extend the useful life of an asset are expensed as incurred.

Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets as follows: Building Improvements Furniture and Fixtures Machinery and Equipment Intangible Assets

Years 10 10 5-10 3

Deferred Revenue Sponsorship funds received for future events are reported as deferred revenue. Revenue is recognized when the related event occurs.

Revenues from Contract with the City of Corpus Christi The CVB receives, from the City, a portion of the hotel occupancy tax collected within the city limits. In exchange, the CVB provides the City with professional marketing services. The City pays 44% of the hotel occupancy tax it receives to the CVB, not including tax revenues from certain areas of the City. The contract with the City is considered to be an exchange transaction and not a contribution. The CVB would be significantly impacted should the City materially change their tax revenue agreement with the CVB. Program Service Revenue The CVB and the Foundation receive revenue through various other program services including operation of a Visitors’ Information Center, festivals and events held throughout the City of Corpus Christi, and various other partnerships and trade shows held throughout the area with local businesses. Revenue is recognized as services are performed.

Income Taxes The CVB is exempt from federal income taxes under Section 501(c)(6) of the Internal Revenue Code and has been classified as an organization that is not a private foundation. The Foundation is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code.

Accordingly, no provision for federal income taxes has been made.

9

CORPUS CHRISTI CONVENTION & VISITORS BUREAU and AFFILIATE Notes to the Combined Financial Statements September 30, 2023 and 2022 Note 1 – Summary of Significant Accounting Policies (continued) Financial Statement Presentation The CVB and the Foundation report information regarding its financial position and activities according to two classes of net assets: net assets without donor restriction and net assets with donor restrictions.

Net Assets without Donor Restrictions – Net assets that are not subject to or are no longer subject to donor-imposed stipulations and represent resources derived from membership, contributions, and other revenue. These resources are used for transactions relating to the operations of the entity and may be used at the discretion of the governing board to meet current expenses.

Net Assets with Donor Restrictions – Net assets whose use is limited by donor-imposed time and/or purpose restrictions.

Employees The CVB utilizes the services of a staff leasing company as needed. The company provides the CVB with employees and invoices CVB for hired employees. The Foundation employs no staff and instead utilizes services of the CVB staff. The CVB have developed a Human Resource Operation to manage from onboarding to offboarding internally.

Media Advertising Media advertising costs are expensed in the period incurred. For the years ended September 30, 2023 and 2022, media advertising expenses were $2,689,408 and $2,204,472, respectively.

Functional Expenses The cost of providing certain activities of CVB and the Foundation has been summarized on a functional basis in the statements of functional expenses. Accordingly, costs have been allocated amongst the program and supporting services benefited if such cost cannot be directly identified with the program or supporting services to which they related. All allocable expenses are allocated based on the percentage of direct costs for each program.

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 certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Concentrations The CVB maintains its cash and certificate of deposit balances at local financial institutions.

Accounts held by banks are insured by the Federal Deposit Insurance Corporation up to $250,000 per bank. As of September 30, 2023 and 2022, uninsured bank balances amounted to approximately $468,665 and $2,554,104, respectively. Funds held in money-market funds totaled $2,399,572 at September 30, 2023, and are insured in part by the Securities Investor Protection Corporation.

10

CORPUS CHRISTI CONVENTION & VISITORS BUREAU and AFFILIATE Notes to the Combined Financial Statements September 30, 2023 and 2022 Note 1 – Summary of Significant Accounting Policies (continued) Concentrations (continued) The CVB is supported mostly by the City of Corpus Christi through contractual payments and additional funding. For the years ended September 30, 2023 and 2022, the city accounted for 90% and 90%, respectively, of the CVB’s revenue through contractual agreements and various additional funding.

During the years ended September 30, 2023 and 2022, 63% and 97%, respectively, of media advertising expenditures were paid to one vendor.

Date of Management’s Review Subsequent events have been evaluated through January 18, 2024, the date the financial statements were available to be issued.

Note 2 – Liquidity and Availability of Resources As of September 30, 2023, CVB has $3,140,056 of financial assets available for general expenditures within one year, consisting of $3,119,932 in cash and cash equivalents, as well as $20,124 in accounts receivable. These financial assets are not subject to any donor or other contractual restrictions to make them unavailable for general expenditures within one year of the combined statement of financial position date. CVB manages its liquidity by operating with a prudent range of financial stability and maintaining adequate liquidity to fund near-term operations.

Note 3 – Depreciable and Intangible Assets A summary of depreciable and intangible assets at September 30, 2023 and 2022 is as follows: Depreciable Assets

2023

2022

Furniture and Fixtures Building Improvements Vehicles Equipment and Software

$ 294,787 72,207 71,503 38,374 476,871

$120,064 72,207 71,503 31,421 295,195

Accumulated Depreciation

(129,854)

(107,656)

Net Depreciable Assets

347,017

187,539

85,171 (80,025)

85,171 (51,630)

5,146

33,541

$352,163

$221,080

Intangible Assets Website Accumulated Amortization Net Intangible Assets Depreciable and Intangible Assets, Net 11

CORPUS CHRISTI CONVENTION & VISITORS BUREAU and AFFILIATE Notes to the Combined Financial Statements September 30, 2023 and 2022 Note 3 – Depreciable and Intangible Assets (continued) Depreciation and amortization expense amounted to $93,730 and $56,693 for the years ended September 30, 2023 and 2022, respectively.

Note 4 – Lease Commitments New Accounting Standard - Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) intended to improve financial reporting regarding leasing transactions. The new standard affects all organizations that lease assets. The standard will require organizations to recognize on the statement of financial condition the assets and liabilities for the rights and obligations created by those leases if the lease terms are more than 12 months. The guidance also will require qualitative and quantitative disclosures providing additional information about the amounts recorded in the financial statements. This standard was implemented effective fiscal years beginning after December 15, 2021. The effect of implementation was to establish right-to-use assets of $474,555 and related lease obligations of $474,555.

CVB has elected to use a risk-free discount rate of 3% to measure the lease liability at the present value of the lease payment not yet paid on the office space facility.

Leasing Arrangements The CVB leases office suites at 400 Mann Street in Corpus Christi, TX, and space for the visitor’s center at 309 N. Water Street in Corpus Christi, TX. The office suites and visitor center leases have terms expiring at various dates through October 2026.

At September 30, 2023, maturities for the operating lease liabilities for office suites and visitor center combined are as follows: Year Ending September 30, 2024 2025 2026 2027

$166,186 168,776 157,213 12,737

Total Payments

504,912

Less: Interest

22,894

Present Value of Lease Liability

$482,018

Rent expense for real property and office equipment for the years ended September 30, 2023 and 2022 is $144,673 and $80,129 respectively.

12

CORPUS CHRISTI CONVENTION & VISITORS BUREAU and AFFILIATE Notes to the Combined Financial Statements September 30, 2023 and 2022 Note 5 – Related Party Transactions The CVB and the Foundation are supported mostly by the City of Corpus Christi through contractual payments. For the years ended September 30, 2023, and 2022, CVB and the Foundation had $7,690,217 and $7,015,054, respectively, in revenue recognized from the City of Corpus Christi of which, $589,794 and $380,051, respectively, is recognized as Group Incentive Program revenue in the statement of activities.

Note 6 - Covid-19 Paycheck Protection Program Note Payable On February 25, 2021, the organization applied for and was approved for a $228,852 loan under the Paycheck Protection Program created as part of the relief efforts related to COVID-19 and administered by the Small Business Administration. The loan accrues interest at 1% per annum but payments are not required to begin for six months after the funding of the loan. The Organization is eligible for loan forgiveness of up to 100% of the loan, upon meeting certain requirements. The loan is collateralized and is fully guaranteed by the Federal government.

On December 8, 2021, the organization was granted 100% forgiveness of the loan.

Note 7 – Revenues with Donor Restrictions In November 2018, the Heritage Society board of directors voted to take out a loan of $150,000 to purchase a large holiday tree. During each of the years ended September 30, 2018 through 2022, the Foundation has received a $50,000 contribution from a donor (a total of $250,000) restricted for the purchase and maintenance of the Christmas tree.

In October 2020, possession of the holiday tree was transferred to the Corpus Christi Downtown Management District through January 2023. In conjunction with the transfer, the Foundation borrowed $100,000 from CVB to pay off a note payable to a bank for the purchase of the tree and to provide funds to the Corpus Christi Downtown Management District for the storage and maintenance of the tree. This $100,000 intercompany loan has been repaid by the Foundation to CVB using the remaining two $50,000 installments due from the donor referred to above.

Note 8 – Retirement Plan The CVB sponsors a retirement plan that provides employees the ability to defer up to 98% of their compensation. The CVB may also make additional discretionary contributions. All employees are eligible to participate in the plan on the first day of the calendar month, coincident with or next following the date they attain age 18. Each employee directs their own investments.

Contributions made by the CVB are subject to graduated vesting, with 100% vesting after six years of service. Plan expenses paid by the CVB for the years ended September 30, 2023 and 2022 totaled $32,347 and $2,825, respectively.

13

SUPPLEMENTARY INFORMATION

CORPUS CHRISTI CONVENTION & VISITORS BUREAU AND AFFILIATE Combining Statements of Financial Position September 30, 2023

Convention & Visitors Bureau

ASSETS Current Assets Cash and Cash Equivalents Certificates of Deposit Accounts Receivable, Net Prepaid Expenses

$ 3,087,556 20,224 169,314

Total Current Assets

3,277,094

Noncurrent Assets Depreciable and Intangible Assets, Net Right-of-Use Asset Under Operating Lease Total Noncurrent Assets Total Assets

LIABILITIES AND NET ASSETS Current Liabilities Accounts Payable Accrued Expenses Deferred Revenue Current Portion of Obligation Under Operating Leases Total Liabilities Long Term Liabilities Obligations Under Operating Leases Less Current Portion Net Assets Net Assets Without Donor Restrictions: Undesignated Net Assets With Donor Restrictions: VCC Cares Program

Foundation

Eliminations

$

$

33,104 -

Total

-

$ 3,120,660 20,224 169,314

33,104

-

3,310,198

352,163 474,555

-

-

352,163 474,555

826,718

-

-

826,718

-

$ 4,136,916

$ 4,103,812

$

Convention & Visitors Bureau

Foundation

Eliminations

$

$

$

290,113 64,663 215,847

33,104

-

$

-

Total

$

290,113 64,663 215,847

153,820

-

-

153,820

724,443

-

-

724,443

328,198

-

-

328,198

3,051,171

24,107

-

3,075,278

8,997

-

8,997

33,104

-

3,084,275

-

$ 4,136,916

-

Total Net Assets

3,051,171

Total Liabilities and Net Assets

$ 4,103,812

$

See Independent Auditor's Report

33,104

$

15

CORPUS CHRISTI CONVENTION & VISITORS BUREAU AND AFFILIATE Combining Statements of Financial Position (continued) September 30, 2022

Convention & Visitors Bureau

ASSETS Current Assets Cash and Cash Equivalents Certificates of Deposit Accounts Receivable, Net Prepaid Expenses

$ 2,324,560 456,149 89,093 207,502

Total Current Assets

3,077,304

Depreciable and Intangible Assets, Net

221,080

LIABILITIES AND NET ASSETS Current Liabilities Accounts Payable Accrued Expenses Deferred Revenue Current Portion of Obligation Under Operating Leases Total Liabilities Long Term Liabilities Obligations Under Operating Leases, Less Current Portion Total Liabilities Net Assets Net Assets Without Donor Restrictions: Undesignated Net Assets With Donor Restrictions: VCC Cares Program

Foundation

Eliminations

$

$

38,067 -

-

$ 2,362,627 456,149 89,093 207,502

38,067

-

3,115,371

-

-

221,080

-

$ 3,336,451

$ 3,298,384

$

Convention & Visitors Bureau

Foundation

Eliminations

$

$

$

372,147 60,474 202,017

Total

38,067

-

$

-

Total

$

372,147 60,474 202,017

-

-

-

-

634,638

-

-

634,638

-

-

-

-

634,638

-

-

634,638

2,663,746

29,070

-

2,692,816

8,997

-

8,997

38,067

-

2,701,813

-

Total Net Assets

2,663,746

Total Liabilities and Net Assets

$ 3,298,384

$

38,067

See Independent Auditor's Report

$

-

$ 3,336,451

16

CORPUS CHRISTI CONVENTION & VISITORS BUREAU AND AFFILIATE Combining Statements of Activities Year Ended September 30, 2023

Convention & Visitors Bureau Revenues Without Donor Restrictions City of Corpus Christi Contract Group Incentive Program Community Revenue, Sponsorships and Donations Cooperative Advertising and Trade Shows Sales at Visitor Center Interest Income Miscellaneous Income Net Assets Released from Restrictions

$ 7,100,423 589,794 10,370 33,862 43,464 77,994 2,977 -

Total Revenues Without Donor Restrictions

7,858,884

Foundation

Eliminations

$

$

-

$ 7,100,423 589,794 10,370 33,862 43,464 78,031 2,977 -

37

-

7,858,921

-

-

-

-

-

-

-

-

7,858,884

37

-

7,858,921

4,115,511 1,197,701 577,440

5,000 -

-

4,115,511 5,000 1,197,701 577,440

1,580,806

-

-

1,580,806

7,471,459

5,000

-

7,476,459

Increase (Decrease) in Net Assets

387,425

(4,963)

-

382,462

Net Assets, Beginning of Year

2,663,746

38,067

-

2,701,813

-

$ 3,084,275

Revenues With Donor Restrictions With Donor Restrictions - Christmas Tree Net Assets Released from Restrictions Total Revenues With Donor Restrictions Total Revenues Expenditures Program Services Advertising Charitable Giving Community Events Conference Sales Visiting Services Supporting Services Management and General Total Expenditures

Net Assets, End of Year

$ 3,051,171

$

See Independent Auditor's Report

37 -

Total

33,104

$

17

CORPUS CHRISTI CONVENTION & VISITORS BUREAU AND AFFILIATE Combining Statements of Activities (continued) Year Ended September 30, 2022

Convention & Visitors Bureau Revenues Without Donor Restrictions City of Corpus Christi Contract Group Incentive Program Community Revenue, Sponsorships and Donations Sales at Visitor Center Cooperative Advertising and Trade Shows Interest Income PPP Loan Forgiveness Net Assets Released from Restrictions

$ 6,594,471 375,483 46,964 22,654 30,261 4,696 228,853 -

Total Revenues Without Donor Restrictions

7,303,382

Revenues With Donor Restrictions With Donor Restrictions - Christmas Tree Net Assets Released from Restrictions Total Revenues With Donor Restrictions Total Revenues Expenditures Program Services Advertising Charitable Giving Community Events Conference Sales Visiting Services Supporting Services Management and General Total Expenditures Increase in Net Assets Net Assets, Beginning of Year Net Assets, End of Year

Foundation

Eliminations

$

$

50,000

-

$ 6,594,471 380,051 46,964 22,654 30,261 4,719 228,853 50,000

54,591

-

7,357,973

-

50,000 (50,000)

-

50,000 (50,000)

-

-

-

-

7,303,382

54,591

-

7,357,973

3,739,992 30,913 1,148,518 636,923

-

-

3,739,992 30,913 1,148,518 636,923

796,575

1,800

-

798,375

6,352,921

1,800

-

6,354,721

950,461

52,791

-

1,003,252

1,713,285

(14,724)

-

1,698,561

-

$ 2,701,813

$ 2,663,746

$

See Independent Auditor's Report

4,568 23

38,067

$

-

Total

18