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Office of the State Auditor STATE OF MINNESOTA Office of the State Auditor Rebecca Otto State Auditor NOKOMIS EAST NEIGHBORHOOD ASSOCIATION MINNEAPOLIS, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2008 Description of the Office of the State Auditor The mission of the Office of the State Auditor is to oversee local government finances for Minnesota taxpayers by helping to ensure financial integrity and accountability in local governmental financial activities. Through financial, compliance, and special audits, the State Auditor oversees and ensures that local government funds are used for the purposes intended by law and that local governments hold themselves to the highest standards of financial accountability. The State Auditor performs approximately 160 financial and compliance audits per year and has oversight responsibilities for over 3,300 local units of government throughout the state. The office currently maintains five divisions: Audit Practice - conducts financial and legal compliance audits of local governments; Government Information - collects and analyzes financial information for cities, towns, counties, and special districts; Legal/Special Investigations - provides legal analysis and counsel to the Office and responds to outside inquiries about Minnesota local government law; as well as investigates allegations of misfeasance, malfeasance, and nonfeasance in local government; Pension - monitors investment, financial, and actuarial reporting for approximately 730 public pension funds; and Tax Increment Financing - promotes compliance and accountability in local governments’ use of tax increment financing through financial and compliance audits. The State Auditor serves on the State Executive Council, State Board of Investment, Land Exchange Board, Public Employees Retirement Association Board, Minnesota Housing Finance Agency, and the Rural Finance Authority Board. Office of the State Auditor 525 Park Street, Suite 500 Saint Paul, Minnesota 55103 (651) 296-2551 [email protected] www.auditor.state.mn.us This document can be made available in alternative formats upon request. Call 651-296-2551 [voice] or 1-800-627-3529 [relay service] for assistance; or visit the Office of the State Auditor’s web site: www.auditor.state.mn.us. NOKOMIS EAST NEIGHBORHOOD ASSOCIATION MINNEAPOLIS, MINNESOTA For the Year Ended December 31, 2008 Audit Practice Division Office of the State Auditor State of Minnesota This page was left blank intentionally. NOKOMIS EAST NEIGHBORHOOD ASSOCIATION MINNEAPOLIS, MINNESOTA TABLE OF CONTENTS Reference Page Introductory Section Organization Schedule 1 Financial Section Independent Auditor’s Report 2 Financial Statements Statement of Financial Position Exhibit 1 3 Statement of Activity Exhibit 2 4 Statement of Functional Expenses Exhibit 3 5 Statement of Cash Flows Exhibit 4 6 Notes to the Financial Statements 7 Schedule of NRP Activity Schedule 1 12 Management and Compliance Section Schedule of Findings and Recommendations Schedule 2 13 Report on Internal Control Over Financial Reporting and Compliance 16 This page was left blank intentionally. Introductory Section This page was left blank intentionally. NOKOMIS EAST NEIGHBORHOOD ASSOCIATION MINNEAPOLIS, MINNESOTA ORGANIZATION SCHEDULE 2008 Board Members Term Expires Jane Brandt April 2010 Kenneth Brown April 2009 Patti Gaalaas April 2010 Michael Garry April 2010 George Jelatis - Chair April 2009 Betty Jones - Treasurer April 2010 Kent Knopp-Schwyn April 2010 Ron Leurquin - Secretary April 2010 Ryan Marth April 2009 Matt Pettis - Vice Chair April 2010 Tina Sanz April 2008 Marian Streitz April 2010 Richard Streitz April 2010 Jason Stumph April 2009 Kelli Wirth April 2010 Executive Director Rita Ulrich Indefinite Page 1 This page was left blank intentionally. Financial Section This page was left blank intentionally. STATE OF MINNESOTA OFFICE OF THE STATE AUDITOR SUITE 500 (651) 296-2551 (Voice) 525 PARK STREET (651) 296-4755 (Fax) REBECCA OTTO SAINT PAUL, MN 55103-2139 [email protected] (E-mail) STATE AUDITOR 1-800-627-3529 (Relay Service) INDEPENDENT AUDITOR’S REPORT Board of Directors Nokomis East Neighborhood Association We have audited the statement of financial position of the Nokomis East Neighborhood Association (NENA) (a nonprofit corporation) as of December 31, 2008, and the related statements of activity, functional expenses, and cash flows for the year then ended, as listed in the table of contents. These financial statements are the responsibility of the NENA’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 the NENA as of December 31, 2008, 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 made for the purpose of forming an opinion on the financial statements taken as a whole. The Schedule of NRP Activity listed in the table of contents is presented for purposes of additional analysis and is not a required part of the financial statements of the NENA. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly presented in all material respects in relation to the financial statements taken as a whole. /s/Rebecca Otto /s/Greg Hierlinger REBECCA OTTO GREG HIERLINGER, CPA STATE AUDITOR DEPUTY STATE AUDITOR November 12, 2009 Page 2 An Equal Opportunity Employer This page was left blank intentionally. FINANCIAL STATEMENTS This page was left blank intentionally. NOKOMIS EAST NEIGHBORHOOD ASSOCIATION MINNEAPOLIS, MINNESOTA EXHIBIT 1 STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2008 Assets Current assets Cash $ 30,566 Grants receivable 29,860 Prepaid expenses 1,870 Total current assets $ 62,296 Property and equipment Property and equipment net of depreciation 1,414 Total Assets $ 63,710 Liabilities and Net Assets Liabilities Accounts payable $ 14,992 Deferred revenue 28,625 Total Liabilities $ 43,617 Net Assets Restricted $ 227 Unrestricted 19,866 Total Net Assets $ 20,093 Total Liabilities and Net Assets $ 63,710 The notes to the financial statements are an integral part of this statement. Page 3 NOKOMIS EAST NEIGHBORHOOD ASSOCIATION MINNEAPOLIS, MINNESOTA EXHIBIT 2 STATEMENT OF ACTIVITY FOR THE YEAR ENDED DECEMBER 31, 2008 Temporarily Unrestricted Restricted Total Public Support and Other Revenue Public support Government grants Minneapolis Community Planning and Economic Development Department (CPED) $ 2,000 $ - $ 2,000 Neighborhood Revitalization Program (NRP) 151,654 - 151,654 Minnesota Department of Natural Resources 1,540 - 1,540 Other contributions 8,693 - 8,693 Total public support $ 163,887 $ - $ 163,887 Other revenue Miscellaneous 2,243 - 2,243 Total Public Support and Other Revenue $ 166,130 $ - $ 166,130 Expenses Program services CPED $ 2,000 $ - $ 2,000 NRP 152,661 - 152,661 Minnesota Department of Natural Resources 1,540 - 1,540 Total program services $ 156,201 $ - $ 156,201 Support services Management and general 7,308 - 7,308 Total Expenses $ 163,509 $ - $ 163,509 Increase (Decrease) in Net Assets $ 2,621 $ - $ 2,621 Net Assets - January 1 17,245 227 17,472 Net Assets - December 31 $ 19,866 $ 227 $ 20,093 The notes to the financial statements are an integral part of this statement. Page 4 NOKOMIS EAST NEIGHBORHOOD ASSOCIATION MINNEAPOLIS, MINNESOTA EXHIBIT 3 STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2008 Minnesota Management CPED NRP DNR and General Total Expenses Advertising $ 2,000 $ 2,326 $ - $ 175 $ 4,501 Consulting - 6,398 - - 6,398 Depreciation - - - 779 779 Equipment - 242 - - 242 Equipment rental - 161 - - 161 Food and beverages - 504 - 4,176 4,680 Insurance - 1,928 - - 1,928 Internet - 1,340 - - 1,340 Membership - 75 - - 75 Mileage and parking - 395 - - 395 Miscellaneous - 232 - - 232 Newsletter labeling - 518 - - 518 Office supplies - 1,424 - - 1,424 Payroll Salaries - 69,369 - - 69,369 Taxes - 31,120 - - 31,120 Benefits - 11,335 - - 11,335 Performance fees - 1,885 - - 1,885 Photocopies - 2,440 - - 2,440 Postage - 2,032 - - 2,032 Printing - 1,409 - - 1,409 Professional fees - 1,633 - 9 1,642 Project supplies - 1,905 1,540 1,685 5,130 Publications - 40 - - 40 Rent - 10,594 - 280 10,874 Software - 1,071 - 114 1,185 Telephone - 1,096 - - 1,096 Training - 325 - - 325 Volunteer recognition - 684 - - 684 Web page - 180 - 90 270 Total Expenses $ 2,000 $ 152,661 $ 1,540 $ 7,308 $ 163,509 The notes to the financial statements are an integral part of this statement. Page 5 NOKOMIS EAST NEIGHBORHOOD ASSOCIATION MINNEAPOLIS, MINNESOTA EXHIBIT 4 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2008 Cash Flows From Operating Activities Increase (Decrease) in net assets $ 2,621
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