Friends of Wwoz, Inc
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FRIENDS OF WWOZ, INC. Audits of Financial Statements August 31, 2019 and 2018 Contents Independent Auditor’s Report 1 - 2 Basic Financial Statements Statements of Financial Position 3 Statements of Activities and Changes in Net Assets 4 Statements of Functional Expenses 5 - 6 Statements of Cash Flows 7 Notes to Financial Statements 8 - 18 Supplementary Information Schedule Schedules of Grant Activity I 20 - 21 Schedule of Compensation, Benefits, and Other Payments II to Agency Head or Chief Executive Officer 22 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 23 - 24 Schedule of Findings and Responses 25 Schedule of Prior Year Findings and Responses 26 Independent Auditor’s Report To the Officers and Board of Directors Friends of WWOZ, Inc. We have audited the accompanying financial statements of the Friends of WWOZ, Inc. (the Station) (a nonprofit organization), which comprise the statements of financial position as of August 31, 2019 and 2018, and the related statements of activities and changes in net assets, functional expenses, and cash flows for the years then ended, and the related notes to the financial statements (collectively, 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 an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from 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. 1 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Friends of WWOZ, Inc. as of August 31, 2019 and 2018, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of a Matter As discussed in Note 1 to the financial statements, for the year ended August 31, 2019, the Station adopted Accounting Standards Update (ASU) 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities. Our opinion is not modified with respect to this matter. Other Matters Other Information Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The schedules of grant activity and the schedule of compensation, benefits, and other payments to agency head or chief executive officer are presented for purposes of additional analysis and are 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 3, 2020, on our consideration of Friends of WWOZ, Inc.’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to solely describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Friends of WWOZ, Inc.’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Friends of WWOZ, Inc.’s internal control over financial reporting and compliance. A Professional Accounting Corporation Metairie, LA January 3, 2020 2 FRIENDS OF WWOZ, INC. Statements of Financial Position August 31, 2019 and 2018 2019 2018 Assets Current Assets Cash $ 946,474 $ 570,105 Grants and Accounts Receivable 27,624 41,484 Prepaid Expenses 12,487 16,042 Total Current Assets 986,585 627,631 Property and Equipment, Net 387,678 532,561 Total Assets $ 1,374,263 $ 1,160,192 Current Liabilities Accounts Payable $ 68,542 $ 32,844 Deferred Revenue 94,575 52,300 Total Current Liabilities 163,117 85,144 Net Assets Without Donor Restrictions Undesignated 823,468 542,487 Designated for Equipment 387,678 532,561 Total Net Assets Without Donor Restrictions 1,211,146 1,075,048 Total Net Assets 1,211,146 1,075,048 Total Liabilities and Net Assets $ 1,374,263 $ 1,160,192 The accompanying notes are an integral part of these financial statements. 3 FRIENDS OF WWOZ, INC. Statements of Activities and Changes in Net Assets For the Year Ended August 31, 2019 and 2018 2019 2018 Revenue and Support Contributions and Membership Fees $ 3,388,537 $ 2,921,758 Foundation and Nonprofit Contributions 1,200,000 1,228,375 Development Production Grants 752,388 802,219 Underwriting 284,805 359,561 Special Events 283,642 212,683 Other Revenues 42,586 15,713 Total Revenue and Support 5,951,958 5,540,309 Expenses Program Services Programming and Production 1,211,390 1,140,449 Broadcasting and Internet Services 715,749 710,089 Total Program Services 1,927,139 1,850,538 Supporting Services Management and General 1,033,828 935,795 Fundraising and Membership Development 2,854,893 2,665,130 Total Supporting Services 3,888,721 3,600,925 Total Expenses 5,815,860 5,451,463 Change in Net Assets 136,098 88,846 Net Assets, Beginning of Year 1,075,048 986,202 Net Assets, End of Year $ 1,211,146 $ 1,075,048 The accompanying notes are an integral part of these financial statements. 4 FRIENDS OF WWOZ, INC. Statement of Functional Expenses For the Year Ended August 31, 2019 Program Services Supporting Services Programming Broadcasting Total Fundraising Total and and Internet Program and Membership Management Supporting Production Services Services Development and General Services Total Expenses Salaries, Payroll Taxes, and Employee Benefits $ 500,508 $ 359,516 $ 860,024 $ 343,946 $ 493,118 $ 837,064 $ 1,697,088 Special Events - - - 1,576,798 - 1,576,798 1,576,798 Jazz Fest Related Expenses 643,461 - 643,461 643,460 - 643,460 1,286,921 Professional Services 43,414 - 43,414 - 141,329 141,329 184,743 Occupancy - 25,143 25,143 57,490 68,012 125,502 150,645 Depreciation - - - - 141,483 141,483 141,483 Telephone - 4,843 4,843 - 87,780 87,780 92,623 Insurance - 79,037 79,037 - - - 79,037 Development and Training - - - 64,257 12,778 77,035 77,035 Website Expense (Digital Deployment) - 72,900 72,900 - - - 72,900 IT Support Services - - - 63,077 8,678 71,755 71,755 Related Business - 64,443 64,443 - - - 64,443 Membership Premiums - - - 63,085 - 63,085 63,085 Operations and Maintenance - 56,719 56,719 - - - 56,719 Financial Fees - - - 41,710 6,497 48,207 48,207 Contract Labor - 45,300 45,300 - - - 45,300 Office Supplies and Postage 5,464 - 5,464 - 22,203 22,203 27,667 Other Expenses - - - - 20,824 20,824 20,824 Printing, Publications, and Graphics - - - 1,070 18,687 19,757 19,757 Program Production 18,543 - 18,543 - - - 18,543 Affiliation Fees - - - - 9,039 9,039 9,039 Mobile Truck - 7,848 7,848 - - - 7,848 Loss on Disposal of Equipment - - - - 3,400