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Louisiana Legislative Auditor an D Is Not Intended to Be and Should Not Be Used by Anyone Other Th an These Specified Parties

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Louisiana Legislative Auditor an D Is Not Intended to Be and Should Not Be Used by Anyone Other Th an These Specified Parties A U D U B O N C O M M ISS IO N M anagem ent's Discussion and AnaJysis, Financial Statem ents as of and for the Year Ended Decem ber 31, 2002 and Independent A uditors' Report Under provisions of state law doc , this re~ort is a pub!ic um ent A :o~: y ,',f ~ ~ repor~ ~,:, b the eq~i':V ~!!qd " ~ ' " ;e ,'-~.~ ,~,~, r:, J to . eli:er approp:'Fete P repotti ,,b c o~:fi,-,..:[~, The s ~v~;i~ We ~.,.,, , .:.. } . ~'~atOrl Rotor o~:gr~cF h~=l~ , appropriate sl the o[iJce of file ps rish clerk of court . Release Da te \~ .~ ~ A UD U BO N CO M M ISSIO N TABLE O F CO NTENTS Page M ANA GEM EN T'S DISCU SSION AN D AN ALY SIS 1 IND EPEND ENT AUD ITORS' REPORT 9 GEN ERA L-PU RPO SE FIN AN CIAL STA TEM ENTS Com bining Balance Sheet 11 Com bining Statem ent of Re,,enues, Expenses and Changes in N et A ssets 13 Com bining Statem ent of Cash Flow s 14 N otes to General-Purpose Financial Statem ents 15 IN D EPEND EN T AUD ITORS' REPORT ON COM PLIAN CE AND ON INTERN AL CONTROL OVER FIN AN CIAL REPORTIN G BASED ON AN AUD IT O F FIN AN CIA L STA TEM EN TS PERFORM ED IN A CCORD AN CE W ITH G O VERNM EN T A UDIT1N G STANDARDS M A NAG EM ENT'S DISCUSSIO N A ND A NA LYSIS The discussion and analysis of the Audubon Commission's (the "Commission") financial performance provides an overall revi ew of th e Com m ission's fin ancial activities for the year ended D ecem ber 31, 2002. It should be read in conjunction with the combining financial statements in this report. O verview of the Financial Statem ents Th is annual report consists of four components - the M anagement's Discussion and Analysis (this section), the Independent Auditors' Rep ort, the Combining Financial Statements, and the Auditors Report on Com pliance and on Internal Control over Finan cial Rep orting. Th e Combining Financial Statements of the Comm ission report the combining financial position of the Comm ission and th e combin ing results of its operations and its cash flows. Th e com binin g financial statem ents are prepared on th e accrual basis of accoun ting. Th e Combining Balance Sheet includes all of the Comm ission's assets and liabilities an d provides information about the Commission's investments in resources (assets) an d its obligations to the Com ission's creditors (liabilities). It also provides inform ation on the capital structure of the Comm ission, and the liquidity and financial flexibility of the Comm ission. Th e Combining Statement of Revenues, Expenses and Changes in Net Assets rep orts on the current year's perform ance of the C om m ission's operations. The Combining Statement of Cash Flows provides information on the Commission's cash from operations, investing and finan cin g activities. The Notes to Financial Statements provide inform ation th at is essential in order to gain a full un derstanding of the data in the com bining financial sta tem ents. The last section, the Independent Auditors' Report on Compliance and on lnternal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards, briefly discusses the Com m ission's com pliance and intern al control that could affect the financial sta tem ents am ounts. Financial H ighlights ~ N et Assets increased $4,706,380 or 6.0% over 2001 due to 2002 net incom e. N et incom e in 2001 totaled $1,391,200, ~ Restricted Assets increased $924,932 over 2001 and Restricted Liabilities in creased $224,299 over 2001, primarily due to capital projects at the Audubon Zoo an d Audubon Golf Course. ~ Additions to Capital Assets totaled $9,859,514 in 2002. A detailed analysis is included for your review . Current Liabilities increased $1,731,442 partly due to an increase in the payable due to the Audubon N ature Institute Inc. The Institu te m anages and operates the A udubon Com m ission under contractu al m anagem ent agreem ents. Com m on or central bank accounts are used to achieve econom ies of scale. The balance of th e increase is due to increases in Current Accounts Payable and A ccrued Liabilities over prior year. Long-term Liabilities decreased by $2,469,923 or 4.3% over 2001 due to paym ents of debt service on bonds payable. A udubon Com m ission O perating Facilities Net Results for the year ended Decem ber 31, 2002* W ith Prior Year and Budget Com parisons (In Thousands) Actua Actual Budget 2002 2001 VA RIA NCE 2002 VA RIA N CE Aquarium /IM AX W oldenberg Riverfront Park $3,824 $ 3,553 $ 271 $ 3,757 $ 67 Audubon Zoo and Park & Audubon Golf Course (2,845) (2,491) (354) (3,040) 195 Research Center/Species Survival Center (80) (96) 46 (126) Nature Center (86) (32) (63) (23) TOTA L O PERATIO NS * Excludes capital revenues and expenditures, and the depreciation associated with buildings and fixed exhibitry. ~ There were no significant variances between actu al and budget net results for the year 2002 ~ The Research Center/Species Survival Center variance is m ainly due to gr ants and donations revenue deficit. - 2 - Condensed Statem ent of Revenues, Expenses, and Changes in Net Assets Year ended Decem ber 31 2002 2001 Change Operating Revenues $ 25,659,712 $25,738,881 $ (79,169) O perating Expenses 35.283.909 34,033,750 1,250,159 O perating Loss (9,624,197) (8,294,869) (1,329,328) Non Operating Revenues, nat 14.330.577 9.686.089 4,644,488 Net Incom e $ 3.315.160 Com m ents on Condensed Statem ent of Revenues, Expenses and Changes in Net A ssets O perating R evenues and Expenses ~ Admissions Revenue of $12,540,991 was less than prior year by $326,134. Overall visits for 2002 of approxim ately 2.3 m illion visitors trailed prior year by 2% . ~ M iscellaneous operating revenues exceeded prior year by approxim ately $270,000 ~ The increase in operating expenses can be m ainly attributed to salaries and benefits. The following factors contributed to this increase: o Additional staf due to th e re-opening of the Audubon Golf Course o Higher m edical and other em ployee benefit costs. o Salary adjustments in various departments to allow for cost of living increases and also to match sim ilar industry salary and w age rates. o The A udubon A quarium of the Am ericas opened a food court in m id 2001. Th e 2002 financial statem ents include salary an d ben efits expenses for a com plete year. N on-O perating R evenues ~ Private and government grants and donations for capital projects, education programs and operating support exceeded prior year by $3,640,345. Th e increase can be attributed to additional gr an ts received in 2002 for capital projects at Audubon Zoo and Audubon Golf Course. ~ Tax M illage revenue exceeded prior year 's total by $381,670 - 3 - A udubon C om m ission-Net Capital A ssets Beginning Depreciation/ Ending Balance Retirem ents Balance 2002 Additions 2002 2002 Aquarium and Riverfront Park $ 65,873,480 $ 1,100,585 $(3,152,743) $ 63,821,322 Audubon Zoo & Park 41,526,684 1,916,272 (2,127,788) 41,315,168 Audubon G olf Course 1,943,058 6,463,140 (31,438) 8,374,760 Survival Center/Research Center 15,845,357 174,962 (850,239) 15,170,080 743,403 Louisiana Nature Center .~ _{253,274) . 694,684 Total $(6.415.482) $J29,376.014 Audubon Park Golf Course com pleted its renovations and re-opened to rave review s in October 2002. Golf publications and other m edia have recognized it am ong the best courses in the south. Tee tim es are booked constantly; from a fm ancial standpoint, the cour se is perform ing well ahead of initial projections. W ith native plantings and careful managemen t practices in place to attract w ildlife, the golf course is on track to receive design ation as a sign ature course by Audubon International. Audubon Louisiana N ature Center opened a totally renovated D iscovery Loft, sponsored by The Booth -Bricker Fund, in M ay 2002. A ll-new interactive exhibits, including a life-sized tree and live an im als, encourage visitors of all ages--especially our youngest guests- to use all five senses as they explore nature. Audubon Aquarium of the Am ericas opened an exhibit showcasing the w onders of the Flower Garden Banks N ational M arine Sanctuary , a very unusual coral reef in the G ulf of M exico-----400 m iles from the Caribbean where these anim als are typically found. The Aquarium also opened a com pletely rem odeled food court featu ring well-known franchises operated by A udubon N ature Institu te. Fabrication began on four major exhibits in Audubon Insectarium: the Field Camp, Life Underground, Louisiana Sw am p, and Form osan Subterran ean Term ites. Film in g- in High D efinition form at- began for the Aw ards N ight m ulti-sensory th eater experience. Th e Insectarium will open in 2004.
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