Combined Basic Financial Statements
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Combined Basic Financial Statements Jefferson Public Radio & The JPR Foundation, Inc. For the years ending June 30, 2019 and 2018 The accompanying combined basic financial statements represent the financial position of Jefferson Public Radio, a public telecommunications entity owned and operated by Southern Oregon University. These statements include the Jefferson Public Radio related accounts of Southern Oregon University and the JPR related accounts of the JPR Foundation, Inc., a private tax-exempt corporation organized to support Jefferson Public Radio’s public service mission. JEFFERSON PUBLIC RADIO AND JPR FOUNDATION, INC. FINANCIAL REPORT AND SUPPLEMENTARY INFORMATION FOR THE YEARS ENDED JUNE 30, 2019 AND 2018 JEFFERSON PUBLIC RADIO AND JPR FOUNDATION, INC. TABLE OF CONTENTS PAGE NUMBER Independent Auditors’ Report i Combined Basic Financial Statements: Combined Statements of Financial Position 1 Combined Statements of Activities 2 Schedule of Functional Expenses – Program Services for the year ended June 30, 2019 3 Schedule of Functional Expenses – Support Services for the year ended June 30, 2019 4 Combined Statements of Cash Flows 5 Notes to the Combined Basic Financial Statements 6 Supplementary Information: Combining Schedule of Financial Position at June 30, 2019 22 Combining Schedule of Financial Position at June 30, 2018 23 Combining Schedule of Activities for year ended June 30, 2019 24 Combining Schedule of Activities for year ended June 30, 2018 25 Schedule of Expenses by Entity for year ended June 30, 2019 26 Schedule of Expenses by Entity for year ended June 30, 2018 27 Combining Schedule of Activities – KSOR-FM and KNCA-FM 28 for year ended June 30, 2019 Combining Schedule of Activities – KSOR-FM and KNCA-FM 29 for year ended June 30, 2018 PAULY, ROGERS, AND CO., P.C. 12700 SW 72nd Ave. Tigard, OR 97223 (503) 620-2632 (503) 684-7523 FAX www.paulyrogersandcocpas.com September 24, 2019 To JPR Foundation Board of Directors and Southern Oregon University Jackson County, Oregon INDEPENDENT AUDITORS' REPORT Jefferson Public Radio and JPR Foundation, Inc. Jackson County, Oregon Report on the Basic Financial Statements We have audited the accompanying combined statement of financial position of Jefferson Public Radio (a Department of Southern Oregon University) and JPR Foundation, Inc. (JPR Related Accounts) (collectively known as the Organization), as of June 30, 2019 and the combined statements of activities, functional expenses and cash flows, and the related notes to the combined basic financial statements for the years then ended which comprise the combined basic financial statements. Management’s Responsibility for the Basic Financial Statements Management is responsible for the preparation and fair presentation of these combined basic financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal controls relevant to the preparation and fair presentation of basic financial statements that are free from material misstatement, whether due to error or fraud. Auditors’ Responsibility Our responsibility is to express an opinion on these combined basic financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the combined basic financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the basic financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of risks of material misstatement of the basic financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the preparation and fair presentation of the basic 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 internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting estimates made by management, as well as evaluating the overall presentation of the combined basic financial statements. - i - We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Basis for Qualified Opinion Management chose not to include the combined financial position of Jefferson Live! LLC as of June 30, 2019 and 2018 and the related activities and cash flows for the years then ended, and the related notes to the combined basic financial statements. The JPR Foundation is the sole member of Jefferson Live! LLC; therefore, consolidation is required under the generally accepted accounting principles of the United States of America. At June 30, 2019 Jefferson Live! LLCs total assets were about $9,325,000, total liabilities were about $1,385,000, and total net assets were $7,940,000. For the year ended June 30, 2019 total revenues were $2,355,000 and total expenses were $2,150,000. Qualified Opinion In our opinion, except for the effects on the 2019 combined basic financial statements of excluding the Jefferson Live! LLC 2019 combined basic financial statements referred to in the Basis for Qualified Opinion paragraph, the combined basic financial statements referred to above present fairly, in all material respects, the financial position of Jefferson Public Radio and JPR Foundation, Inc. as of June 30, 2019 and the activities, functional expenses, and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. Emphasis of Matter – New Accounting Standard The Organization adopted provisions of FASB ASU No. 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. Emphasis of Matter – The Financial Statements for the Year Ended June 30, 2018 The combined basic financial statements for the year ended June 30, 2018 were audited by other auditors whose report dated October 31, 2018 issued a qualified opinion on those statements. The Organization had not consolidated JPR Foundation, Inc.’s wholly owned subsidiary Jefferson Live! LLC. The JPR Foundation is the sole member of Jefferson Live! LLC; therefore, consolidation is required under the generally accepted accounting principles of the United States of America. If the financial statements for Jefferson Live! LLC had been consolidated with those of the Organization, total assets and total liabilities would have been increased by about $9,600,000 and $1,400,000, respectively, as of June 30, 2018. Change in net assets would have increased by about $1,400,000 for the year then ended. ii Other Matters Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the combined basic financial statements. The supplementary information, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the combined basic financial statements. The supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the combined basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the combined 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 combined basic financial statements or to the combined 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 supplementary information, as listed in the table of contents, is fairly stated, in all material respects, in relation to the combined basic financial statements as a whole. ROY R. ROGERS, CPA PAULY, ROGERS AND CO., P.C. iii COMBINED BASIC FINANCIAL STATEMENTS JEFFERSON PUBLIC RADIO AND JPR FOUNDATION, INC. Combined Statements of Financial Position at June 30, 2019 and 2018 (Restated) 2019 2018 Assets Current Assets Cash and cash equivalents $ 2,032,951 $ 1,708,129 Restricted cash - 253,694 Investments 98,920 93,602 Pledges receivable, net 259,020 267,066 Other receivables, net 52,492 56,895 Prepaid expenses 14,945 49,742 Deposits 1,500 1,500 Total Current Assets 2,459,828 2,430,628 Property and Equipment Land 293,906 293,906 Buildings and equipment, net of accumulated depreciation 3,277,895 3,317,916 Total Property and Equipment 3,571,801 3,611,822 Other Assets Prepaid expenses, non-current 2,370 2,370 Mt. Baldy Communications, LLC 84,060 74,081 Intangible assets 1,964,461 1,964,461 Total Other Assets 2,050,891 2,040,912 Total Assets $ 8,082,520 $ 8,083,362 Liabilities and Net Assets Current Liabilities Accounts payable $ 29,578 $ 252,032 Accrued liabilities 147,947 153,602 Accrued vacation 93,200 78,512 Deferred income 78,287 66,257 Lease deposits 1,000 1,000 Current portion of long-term debt and obligation 45,000 38,422 Total Current Liabilities 395,012 589,825 Long-term debt, net of current