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Audubon Nature Institute Inc AUDUBON NATURE INSTITUTE, INC. Audits of Financial Statements December 31, 2020 and 2019 Contents Independent Auditor’s Report 1 - 2 Basic Financial Statements Statements of Financial Position 3 Statements of Activities 4 - 5 Statements of Cash Flows 6 Notes to Financial Statements 7 - 21 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 22 - 23 Schedule of Findings and Responses 24 Summary Schedule of Prior Audit Findings 25 Schedule of Compensation, Benefits, and Other Payments to Agency Head 26 LaPorte, APAC 111 Veterans Blvd. | Suite 600 Metairie, LA 70005 504.835.5522 | Fax 504.835.5535 LaPorte.com Independent Auditor’s Report To the Board of Directors of Audubon Nature Institute, Inc. Report on the Financial Statements We have audited the accompanying financial statements of Audubon Nature Institute, Inc. (the Institute), which comprise the statements of financial position as of December 31, 2020 and 2019, and the related statements of activities and cash flows for the years then ended, and the related notes to the 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. LOUISIANA • TEXAS An Independently Owned Member, RSM US Alliance RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each is separate and independent 1 from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Institute as of December 31, 2020 and 2019, 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. Other Matters Other Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Institute’s basic financial statements. The schedule of compensation, benefits, and other payments to agency head is presented for purposes of additional analysis and is not a required part of the basic financial statements. The schedule of compensation, benefits, and other payments to agency head is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of compensation, benefits, and other payments to agency head is fairly stated, in all material respects, in relation to the basic 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 June 20, 2021, on our consideration of the Institute'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 solely 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 effectiveness of the Institute’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 the Institute’s internal control over financial reporting and compliance. A Professional Accounting Corporation Metairie, LA June 20, 2021 2 AUDUBON NATURE INSTITUTE, INC. Statements of Financial Position December 31, 2020 and 2019 2020 2019 Assets Cash $ 3,646,163 $ 2,771,145 Grants Receivable 162,594 410,193 Promises to Give, Net 3,032,566 3,759,123 Prepaid Expenses - 9,590 Equipment, Net - 715 Investments and Assets Limited as to Use 4,525,154 6,046,106 Due from Audubon Commission 10,076,947 4,760,843 Total Assets $ 21,443,424 $ 17,757,715 Liabilities and Net Assets Liabilities Accounts Payable and Accrued Expenses $ 311,667 $ - Accrued Salaries and Benefits 50,256 27,496 Deferred Revenue 383,673 285,034 Due to Audubon Nature Institute Foundation 4,258,039 396,211 Lines of Credit 5,990,000 3,990,000 Deferred Compensation 4,525,154 6,046,106 Total Liabilities 15,518,789 10,744,847 Net Assets Without Donor Restrictions 48,416 587,513 With Donor Restrictions 5,876,219 6,425,355 Total Net Assets 5,924,635 7,012,868 Total Liabilities and Net Assets $ 21,443,424 $ 17,757,715 The accompanying notes are an integral part of these financial statements. 3 AUDUBON NATURE INSTITUTE, INC. Statement of Activities For the Year Ended December 31, 2020 Without Donor With Donor Restrictions Restrictions Total Revenue and Other Support Government Grants $ 90,300 $ - $ 90,300 Gifts and Exhibit/Program Sponsorships 3,778,233 638,456 4,416,689 Investment Return, Net 363,299 - 363,299 Fundraising Activities 153,442 - 153,442 Net Assets Released from Restrictions 1,187,592 (1,187,592) - Total Revenue and Other Support 5,572,866 (549,136) 5,023,730 Expenses Grant Expense to Audubon Commission 3,889,201 - 3,889,201 Development Expenses 875,548 - 875,548 Fundraising Activities 219,505 - 219,505 Interest 185,745 - 185,745 Other Expenses 941,964 - 941,964 Total Expenses 6,111,963 - 6,111,963 Change in Net Assets (539,097) (549,136) (1,088,233) Net Assets, Beginning of Year 587,513 6,425,355 7,012,868 Net Assets, End of Year $ 48,416 $ 5,876,219 $ 5,924,635 The accompanying notes are an integral part of these financial statements. 4 AUDUBON NATURE INSTITUTE, INC. Statement of Activities For the Year Ended December 31, 2019 Without Donor With Donor Restrictions Restrictions Total Revenue and Other Support Government Grants $ 138,503 $ - $ 138,503 Gifts and Exhibit/Program Sponsorships 2,371,810 3,564,735 5,936,545 Investment Return, Net 944,343 - 944,343 Fundraising Activities 1,529,031 - 1,529,031 Net Assets Released from Restrictions 1,805,623 (1,805,623) - Total Revenue and Other Support 6,789,310 1,759,112 8,548,422 Expenses Grant Expense to Audubon Commission 3,442,931 - 3,442,931 Donation to Audubon Nature Institute Foundation 552,739 - 552,739 Development Expenses 1,582,025 - 1,582,025 Fundraising Activities 613,465 - 613,465 Interest 176,543 - 176,543 Other Expenses 1,569,347 - 1,569,347 Total Expenses 7,937,050 - 7,937,050 Change in Net Assets (1,147,740) 1,759,112 611,372 Net Assets, Beginning of Year 1,735,253 4,666,243 6,401,496 Net Assets, End of Year $ 587,513 $ 6,425,355 $ 7,012,868 The accompanying notes are an integral part of these financial statements. 5 AUDUBON NATURE INSTITUTE, INC. Statements of Cash Flows For the Years Ended December 31, 2020 and 2019 2020 2019 Cash Flows from Operating Activities Change in
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