The Lincoln Park Zoological Society

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The Lincoln Park Zoological Society The Lincoln Park Zoological Society Financial Report March 31, 2019 The Lincoln Park Zoological Society Contents Independent Auditor's Report 1 Financial Statements Statement of Financial Position 2 Statement of Activities and Changes in Net Assets 3 Statement of Functional Expenses 4-5 Statement of Cash Flows 6 Notes to Financial Statements 7-21 Independent Auditor's Report To the Board of Trustees The Lincoln Park Zoological Society We have audited the accompanying financial statements of The Lincoln Park Zoological Society (an Illinois corporation and an organized not-for-profit) (the "Society"), which comprise the statement of financial position as of March 31, 2019 and 2018 and the related statements of activities and changes in net assets, functional expenses, 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. Those standards require that we plan and perform the audits 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. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The Lincoln Park Zoological Society as of March 31, 2019 and 2018 and the changes in its net assets, functional expenses, and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As described in Note 2 to the financial statements, the Society adopted the provisions of Financial Accounting Standards Board Accounting Standards Update (ASU) No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities, as of April 1, 2018. Our opinion is not modified with respect to this matter. June 14, 2019 1 The Lincoln Park Zoological Society Statement of Financial Position March 31, 2019 and 2018 2019 2018 Assets Cash $ 8,712,718 $ 14,485,061 Investments (Note 4) 136,890,649 127,940,608 Investments - Other 10,305,305 5,250,627 Receivables: Pledges and grants - Net (Note 6) 19,435,387 26,747,284 Other 94,529 50,821 Inventories 145,358 445,260 Other assets 536,280 445,611 Property and equipment - Net (Note 7) 2,019,213 2,167,922 Total assets $ 178,139,439 $ 177,533,194 Liabilities and Net Assets Liabilities Accounts payable $ 2,990,479 $ 2,295,754 Annuities payable 385,727 353,483 Accrued compensation 1,832,948 1,868,125 Deferred revenue 533,020 657,313 Accrued expenses - Other 445,782 382,013 Bonds payable - Net of issuance costs (Note 9) 70,088,500 70,017,700 Total liabilities 76,276,456 75,574,388 Net Assets Net assets without donor restrictions 31,287,905 31,927,415 Net assets with donor restrictions 70,575,078 70,031,391 Total net assets 101,862,983 101,958,806 Total liabilities and net assets $ 178,139,439 $ 177,533,194 See notes to financial statements. 2 The Lincoln Park Zoological Society Statement of Activities and Changes in Net Assets Years Ended March 31, 2019 and 2018 2019 2018 Without Donor With Donor Without Donor With Donor Restrictions Restrictions Total Restrictions Restrictions Total Revenue, Gains, and Other Support Contributions, grants, and development $ 9,234,394 $ 9,083,723 $ 18,318,117 $ 8,505,966 $ 13,809,696 $ 22,315,662 Visitor services 7,679,273 - 7,679,273 7,603,779 - 7,603,779 Chicago Park District subsidy 5,590,015 - 5,590,015 5,590,000 - 5,590,000 Event revenue 3,246,223 - 3,246,223 3,328,799 - 3,328,799 Membership dues and activities 1,360,950 - 1,360,950 1,367,994 - 1,367,994 Facility rental revenue 1,039,496 - 1,039,496 948,194 - 948,194 Other income 710,734 - 710,734 633,351 - 633,351 Investment income 2,306,616 1,558,621 3,865,237 6,990,744 4,773,884 11,764,628 Net assets released from restrictions 10,098,657 (10,098,657) - 8,923,538 (8,923,538) - Total revenue, gains, and other support 41,266,358 543,687 41,810,045 43,892,365 9,660,042 53,552,407 Expenses Program services: Exhibits and grounds 14,289,560 - 14,289,560 9,679,499 - 9,679,499 Animal care and conservation 11,178,188 - 11,178,188 10,671,720 - 10,671,720 Learning and community engagement 4,885,789 - 4,885,789 4,794,313 - 4,794,313 Visitor and member services 5,506,588 - 5,506,588 4,738,021 - 4,738,021 Total program services 35,860,125 - 35,860,125 29,883,553 - 29,883,553 Support services: Administration 2,748,603 - 2,748,603 3,113,437 - 3,113,437 Fundraising and development 3,297,140 - 3,297,140 3,326,271 - 3,326,271 Total support services 6,045,743 - 6,045,743 6,439,708 - 6,439,708 Total expenses 41,905,868 - 41,905,868 36,323,261 - 36,323,261 (Decrease) Increase in Net Assets (639,510) 543,687 (95,823) 7,569,104 9,660,042 17,229,146 Net Assets - Beginning of year 31,927,415 70,031,391 101,958,806 24,358,311 60,371,349 84,729,660 Net Assets - End of year $ 31,287,905 $ 70,575,078 $ 101,862,983 $ 31,927,415 $ 70,031,391 $ 101,958,806 See notes to financial statements. 3 The Lincoln Park Zoological Society Statement of Functional Expenses Year Ended March 31, 2019 Program Services Support Services Animal Care Learning and Visitor and Fundraising Exhibits and and Community Member and Grounds Conservation Engagement Services Total Administration Development Total Total Salaries and benefits $ 1,996,541 $ 8,617,239 $ 3,415,232 $ 2,017,520 $ 16,046,532 $ 2,046,575 $ 2,103,012 $ 4,149,587 $ 20,196,119 Professional fees 1,379,016 583,467 600,957 400,561 2,964,001 192,654 74,333 266,987 3,230,988 Contractual services 1,678,269 7,228 85,310 844,121 2,614,928 103,218 108,566 211,784 2,826,712 Insurance 47,506 217,650 39,978 54,822 359,956 50,100 49,363 99,463 459,419 Printing, postage, and shipping 108,644 43,607 118,997 188,589 459,837 16,934 99,491 116,425 576,262 Supplies 239,807 1,046,481 273,929 757,620 2,317,837 39,934 638,583 678,517 2,996,354 Professional development and meetings 44,059 312,496 161,670 11,192 529,417 104,645 38,344 142,989 672,406 Costs of goods sold - - - 849,158 849,158 - - - 849,158 Interest and bank fees 1,826,772 3,261 27,893 173,126 2,031,052 46,710 43,587 90,297 2,121,349 Software and equipment 348,600 253,671 120,273 84,071 806,615 65,423 110,212 175,635 982,250 Occupancy and improvements 6,489,948 8,747 26,205 7,301 6,532,201 39,773 26,305 66,078 6,598,279 Depreciation and amortization 130,398 84,341 15,345 118,507 348,591 42,637 5,344 47,981 396,572 Total functional expenses $ 14,289,560 $ 11,178,188 $ 4,885,789 $ 5,506,588 $ 35,860,125 $ 2,748,603 $ 3,297,140 $ 6,045,743 $ 41,905,868 See notes to financial statements. 4 The Lincoln Park Zoological Society Statement of Functional Expenses Year Ended March 31, 2018 Program Services Support Services Animal Care Learning and Visitor and Fundraising Exhibits and and Community Member and Grounds Conservation Engagement Services Total Administration Development Total Total Salaries and benefits $ 1,980,867 $ 8,354,272 $ 3,209,766 $ 1,812,968 $ 15,357,873 $ 2,365,864 $ 2,076,949 $ 4,442,813 $ 19,800,686 Professional fees 873,339 433,378 658,588 345,713 2,311,018 208,850 77,827 286,677 2,597,695 Contractual services 1,621,987 8,013 70,090 591,520 2,291,610 107,414 104,569 211,983 2,503,593 Insurance 40,228 171,116 27,768 47,717 286,829 45,798 52,257 98,055 384,884 Printing, postage, and shipping 2,070 16,405 183,793 173,986 376,254 21,910 113,423 135,333 511,587 Supplies 196,135 1,127,171 253,618 768,868 2,345,792 57,237 675,645 732,882 3,078,674 Professional development and meetings 27,757 240,778 176,900 16,916 462,351 80,884 28,161 109,045 571,396 Cost of goods sold - - - 665,618 665,618 - - - 665,618 Interest and bank fees 1,272,333 66 16,456 147,293 1,436,148 73,859 41,983 115,842 1,551,990 Software and equipment 55,386 238,722 143,456 71,329 508,893 62,819 108,334 171,153 680,046 Occupancy and improvements 3,524,675 3,874 41,007 6,762 3,576,318 46,811 41,357 88,168 3,664,486 Depreciation and amortization 84,722 77,925 12,871 89,331 264,849 41,991 5,766 47,757 312,606 Total functional expenses $ 9,679,499 $ 10,671,720 $ 4,794,313 $ 4,738,021 $ 29,883,553 $ 3,113,437 $ 3,326,271 $ 6,439,708 $ 36,323,261 See notes to financial statements.
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