Frontier Country Marketing Association, Inc
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FINANCIAL STATEMENTS AND AUDITORS’ REPORT FOR THE YEAR ENDED JUNE 30, 2016 CCCPA Clothier & Company CPA’s P.C. P.O. Box 1495 * Muskogee, Ok 74402 (918) 687-0189 FAX (918) 687-3594 [email protected] Frontier Country Marketing Association, Inc. Table of Contents June 30, 2016 Description Pg. No. Independent Auditors' Report 2-4 Statement of Financial Position-Modified Cash Basis 5 Statement of Activities-Modified Cash Basis 6 Statement of Functional Expenses 7 Statement of Cash Flows 8 Notes to the Financial Statements 9-11 Independents Auditors' Report on Internal Control over Financial Reporting and on Compliance and other Matters Based on an Audit of Financial Statements Peformed in Accordance with Governmental Auditing Standards 12-13 Other Information 14 Budget to Actual Comparison 15 Supplemental Information 16 OTARD Required Schedules 17 Advertisers 18-28 1 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 To the Board of Directors Frontier Country Marketing Association, Inc. We have audited the accompanying financial statements of Frontier Country Marketing Association, Inc. (a nonprofit organization), which comprise the statement of financial position- modified cash basis as of June 30, 2016, and the related statement of activities, functional expense, and cash flows- modified cash basis for the year 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 the modified cash basis of accounting as described in Note 1, this includes determining that the modified cash basis of accounting is an acceptable basis for the preparation of the financial statements in the circumstances. Management is also responsible 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. Auditors’ Responsibility 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 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 of 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 auditors’ 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 includes evaluating the appropriateness of accounting policies used and the reasonableness of significant 2 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. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Frontier Country Marketing Association, Inc. as of June 30, 2016, and the changes in its net assets and its cash flows for the year then ended in accordance with the modified cash basis of accounting as described in Note 1. Basis of Accounting We draw attention to Note 1 of the financial statements, which describes the basis of accounting. The financial statements are prepared on the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to that matter. Other Matters Supplementary Information The schedule of reconciliation of cash expenditures to amounts claimed, the sources of revenue schedule and the schedule of advertisers are presented for purposes of additional analysis and are not a required part of the financial statements. The schedules are presented for purposes of additional analysis as required by Oklahoma Tourism and Recreation Department, and are also not a required part of the financial statements. The schedules are the responsibility of management and were 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 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 financial statements or to the basic 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 basic financial statements as a whole. Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The budgetary comparison information is presented for purposes of additional analysis and is not a required part of the basic 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 not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. 3 Other Reporting Required by Government Auditing Standards In Accordance with Government Auditing Standards, we have also issued our report dated January 16, 2017, on our consideration of Frontier Country Marketing Association, 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 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 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 Frontier Country Marketing Association, Inc.’s internal control over financial reporting and compliance. Clothier & Company, CPA's, P.C. January 16, 2017 4 Frontier Country Marketing Association, Inc. Statement of Financial Position-Modified Cash Basis June 30, 2016 ASSETS Current Assets Cash and cash equivalents $ 51,250 Total Current Assets 51,250 Fixed Assets Fixed assets 51,336 Accumulated depreciation (46,613) Total Fixed Assets 4,723 Total Assets $ 55,973 LIABILITIES AND NET ASSETS Current Liabilities Accounts payable $ 0 Payroll tax liabilities 3,288 Loans payable-current 59,797 Total Current Libilities 63,085 Long Term Liabilities Loans payable 0 Total Long Term Liabilities 0 Net Assets Unrestricted 3,252 Increase (Decrease) in Net Assets (10,364) Total Net Assets (7,112) Total Liabilities & Net Assets $ 55,973 See accompanying notes and independent auditors' report. 5 Frontier Country Marketing Association, Inc. Statement of Activities-Modified Cash Basis June 30, 2016 UNRESTRICTED NET ASSETS Revenue and Gains Membership dues $ 25,298 Matching funds 173,533 Advertising income 79,685 Brochure distribution 1,895 Coop advertising 141,012 Fundraisers 34,153 Other income 9,202 Discounts given (6,817) Total Revenue and Gains 457,961 Expenses Advertising/promotional 246,569 Administrative expenses 221,756 Total Expenses 468,325 Increase (Decrease) in Unrestricted Net Assets (10,364) TEMPORATILY RESTRICTED NET ASSETS Revenues and Gains 0 PERMANENTLY RESTRICTED NET ASSETS Revenues and Gains 0 Increase (Decrease) in Net Assets $ (10,364) See accompanying notes and independent auditors' report. 6 Frontier Country Marketing Association, Inc. Statement of Functional Expenses June 30, 2016 Program Administrative Total Salaries and payroll taxes $ 0 $ 123,924 $ 123,924 Employee benefits 0 0 0 Insurance 0 3,621 3,621 Travel expense 0 10,509 10,509 Interest/finance charges 0 4,401 4,401 Office/postage expenses 0 16,437 16,437 Professional fees 0 0 0 Repairs and maintenance 0 695 695 Rent/parking 0 18,350 18,350 Utilities/telephone/internet 0 13,487 13,487 Dues and subscriptions 0 2,058 2,058 Miscellaneous 0 19,001 19,001 Education/sponsorship 0 0 0 Printing 270 566 836 Depreciation 0 1,917 1,917 Distribution/publications 0 0 0 Co-op advertising 120,344 0 120,344 Travel shows/conventions 9,627 0 9,627 Newspaper/magazine/media. 52,016 0 52,016 Special events 20,865 5,752 26,617 Guides/coupon book 40,381 0 40,381 Website