CCCPA Clothier & Company CPA’S P.C
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GREEN COUNTRY MARKETING ASSOCIATION, INC. FINANCIAL STATEMENTS AND AUDITORS’ REPORT FOR THE YEAR ENDED JUNE 30, 2012 CCCPA Clothier & Company CPA’s P.C. P.O. Box 1495 * Muskogee, Ok 74402 (918) 687-0189 FAX (918) 687-3594 [email protected] CCCPA P.O. Box 1495 Clothier & Company CPA’s P.C. Muskogee, Oklahoma 74402 [email protected] 918-687-0189 FAX 918-687-3594 INDEPENDENT AUDITORS’ REPORT Board of Trustees Green Country Marketing Association, Inc. Tulsa, Oklahoma We have audited the accompanying statement of financial position – modified cash basis of Green Country Marketing Association, Inc. (a nonprofit organization), as of June 30, 2012, and the related statements of activities – modified cash basis and cash flows for the year then ended. These financial statements are the responsibility of Green Country Marketing Association, Inc.’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 and the standards applicable to financial audits contained in Governmental 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 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. As described in Note 1, these financial statements were prepared on the modified cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Green Country Marketing Association, Inc. as of June 30, 2012, and the change in net assets and cash flows for the year then ended, on the basis of accounting described in Note 1. In accordance with Government Auditing Standards, we have also issued our report dated August 28, 2012 on our consideration of Green Country Marketing Association, Inc.’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of the audit. Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying Sources of Revenue Schedule, and Reconciliation of Cash Expenditures on pages 10 and 11 are not a required part of the basic financial statements but are supplementary information required by the Oklahoma Tourism and Recreation Department. 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 schedules are fairly stated in all material respects in relation to the financial statements as a whole. Clothier & Company, CPA’s, P.C. August 28, 2018 Green Country Marketing Association, Inc. STATEMENT OF FINANCIAL POSITION Modified Cash Basis June 30, 2012 ASSETS Current Assets Cash and Cash Equivalents $201,531 TotalCurrentAssets 201,531 Property and Equipment PropertyandEquipment 51,168 Website 11,062 Less: Accumulated Depreciation (52,658) NetPropertyandEquipment 9,572 Total Assets $211,103 LIABILITIES AND NET ASSETS Current Liabilities Federal & FICA Taxes Payable $4,562 StateW/H Taxes Payable 622 Unemployment Taxes Payable 1,508 Total Current Liabilities 6,692 Long-Term Liabilities 0 Total Liabilities 6,692 Net Assets UnrestrictedNetAssets 204411 TemporarilyRestrictedNetAssets 0 Restricted Net Assets 0 TotalNetsAssets 204,411 Total Liabilities and Net Assets $211,103 See accompanying notes and independent auditors' report. 2 Green Country Marketing Association, Inc. STATEMENT OF ACTIVIITES - Modified Cash Basis June 30, 2012 Temporaily Permanently Unrestricted Restristed Restricted Total Revenue: Advertising Sales $254,951 $0 $0 $254,951 Membership in Association 26,782 0 0 26,782 Co-op Media Advertising 279,508 0 0 279,508 Events 0 0 0 0 Miscellaneous/Other Income 1,600 0 0 1,600 MatchingFunds 211,398 0 0 211,398 Interest income 1,644 0 0 1,644 TotalRevenue 775,883 0 0 775,883 Expenses: Administrative Not Matched $308,299 $0 $0 $308,299 Depreciation Expense 2,520 0 0 2,520 Advertising & Promotional: Print Production 218,210 0 0 218,210 Media Advertising 182,479 0 0 182,479 Postage/Literature Distribution 41,341 0 0 41,341 Travel Shows 19,273 0 0 19,273 Other Allowable Promotion 0 0 0 0 Admin Matched 0 0 0 0 Other&Misc 9,241 0 0 9,241 Total Expenses 781,363 0 0 781,363 Change in Net Assets (5,480) 0 0 (5,480) Net Assets at Beginning of Year 209,891 0 0 209,891 Net Assets at End of Year $204,411 $0 $0 $204,411 3 See accompanying footnotes and independent auditors' report. Green Country Marketing Association, Inc. STATEMENT OF CASH FLOWS June 30, 2012 Cash Flows From Operating Activities: Net income (loss) ($5,480) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Expense 2,520 (Increase) decrease in other assets 0 Increase (decrease) in accrued expenses 2,306 Net cash provided (used) by operating activities (654) Cash Flows From Investing Activities Purchase of Equipment (7,525) Net cash used by investing activities (7,525) Increase (Decrease) in cash (8,179) Cash and Cash Equivilants, July 1, 2011 209,710 Cash and Cash Equivilants, June 30, 2012 $201,531 See accompanying footnotes and independent auditors' report. 4 Green Country Marketing Association, Inc. NOTES TO THE FINANCIAL STATEMENTS June 30, 2012 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICY Basis of Accounting The financial statements of Green Country Marketing Association, Inc. have been prepared on the modified cash basis of accounting, which is a comprehensive basis of accounting other that generally accepted accounting principles. Modifications to the cash basis of accounting include recording depreciation on property and equipment and accruing for payroll taxes. Basis of Presentation The Association is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. Cash and cash equivalents For purposes of the statement of cash flows, cash and cash equivalents are considered to be highly liquid depository accounts with a maturity of less than three months. 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. Expense Allocation The cost of providing various programs and other activities has been summarized on a functional basis in the Statement of Activities and in the Reconciliation of Cash Expenditures. Accordingly, certain costs have been allocated among the programs and supporting services benefited. Directly identifiable expenses are charged to programs and supporting services. 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 Association. General Statement The Green Country Marketing Association, Inc. is a multi-county organization established under the laws of the State of Oklahoma. The purpose of the Association is to promote and encourage the development of tourism and commerce through various forms of advertising and promotion. The Association derives a significant portion of its income from advertising sales and managed cooperative advertising, as well as contributions and the sale of memberships. These revenues come mainly from business enterprises in the eighteen county area of Oklahoma known as Green Country. The remainder of revenues are derived from the State of Oklahoma and fund raising events. The Organization presents periodic reports to the State showing expenses paid, and the 5 Green Country Marketing Association, Inc. state reimburses the organization for one hundred percent of the allowable expenses limited to the amount allocated to Green Country Marketing Association, Inc. Reimbursements from the state