CENTRAL FLORIDA ZOOLOGICAL SOCIETY, INC. FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REPORT JUNE 30, 2019 AND 2018 CENTRAL FLORIDA ZOOLOGICAL SOCIETY, INC. TABLE OF CONTENTS Independent Auditors' Report ......................................................................................................... 3 Statements of Financial Position .................................................................................................... 5 Statements of Activities and Changes in Net Assets ..................................................................... 6 Statements of Functional Expenses ............................................................................................... 8 Statements of Cash Flows ............................................................................................................ 10 Notes to Financial Statements ...................................................................................................... 11 SUPPLEMENTAL INFORMATION Schedules of Earnings Before Interest, Depreciation and Amortization (EBIDA) ....................... 27 Greene, Dycus & Co., P.A. Certified Public Accountants 205 North Elm Ave., Sanford, FL 32771 407-322-0561 / Fax: 407-322-0663 / www.gdccpa.net Member: American Institute of Certified Public Accountants Member: Florida Institute of Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Board of Trustees of the Central Florida Zoological Society, Inc. Lake Monroe, Florida We have audited the accompanying financial statements of the Central Florida Zoological Society, Inc. (the “Society”), a nonprofit organization, which comprise the statement of financial position for the years ended June 30, 2019 and 2018, 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 audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. 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 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. Robert Kimelman, CPA Thomas J. Frank, CPA 3 William T. Royster, CPA (Retired) Jack I. Greene, CPA (Deceased) James R. Dycus, CPA (Deceased) 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 Society as of the years then ended June 30, 2019 and 2018, 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. Supplemental Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The Schedule of Earnings Before Interest, Depreciation and Amortization is presented for purposes of additional analysis and is not a required part of the 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 been subjected to the auditing procedures applied in the audit of the 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 financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Professional Association Certified Public Accountants Sanford, Florida October 21, 2019 4 CENTRAL FLORIDA ZOOLOGICAL SOCIETY, INC. STATEMENTS OF FINANCIAL POSITION AS OF JUNE 30, Assets: 2019 2018 Cash & cash equivalents Unrestricted $ 669,054 $ 144,133 Board/Management designated reserves 318,826 175,000 Restricted for capital improvement 134,491 50,000 Restricted for endowment - 110,000 Cash & cash equivalents - total 1,122,371 479,133 Accounts receivable 14,384 116,620 Contribution receivable, net of unamortized discount of $8,558,722 and $8,822,341 3,281,978 3,290,559 Inventory 27,624 24,059 Prepaid expense and other assets 57,592 51,342 Botanical collection 43,338 43,338 Property, equipment and animals, net of accumulated depreciation 8,678,647 8,561,651 Total Assets $ 13,225,934 $ 12,566,702 Liabilities and Net Assets: Liabilities: Accounts payable $ 157,386 $ 188,543 Accrued salaries 35,271 26,934 Other liabilities 88,651 158,103 Unearned annual pass-holder fees 298,828 291,189 Equipment notes payable 431,270 70,615 Line of credit 50,958 - Mortgage payable 572,040 642,093 Total Liabilities 1,634,404 1,377,477 Net Assets: Without donor restrictions 8,175,061 7,738,666 With donor restrictions 3,416,469 3,450,559 Total Net Assets 11,591,530 11,189,225 Total Liabilities and Net Assets $ 13,225,934 $ 12,566,702 The accompanying notes are an integral part of these financial statements. 5 CENTRAL FLORIDA ZOOLOGICAL SOCIETY, INC. STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2019 Without Donor With Donor Restrictions Restrictions Total Revenues, Gains and Other Support: Gate receipts $ 2,682,109 $ - $ 2,682,109 Guest services, net of cost of $105,689 304,645 - 304,645 Educational programs 308,126 - 308,126 Seminole County Tourist Development Council 341,250 - 341,250 State and Local Government Grants 258,759 - 258,759 Contributions: Cash contributions 466,902 127,309 594,211 In kind 13,596 - 13,596 Pass-holder subscriptions 601,143 - 601,143 Promotional events, net of costs of $134,256 161,818 - 161,818 Facilities rental fees, net of costs $33,827 136,507 - 136,507 Net assets released from restrictions: Restrictions satisfied by payments 8,581 (8,581) - Investment earnings 2,636 - 2,636 Seminole Aerial Adventures 231,368 231,368 Train and carousel income 197,086 - 197,086 Other operating income 192,959 - 192,959 Amortization-discount on contribution receivable 278,360 - 278,360 Insurance proceeds 64,791 - 64,791 Total Revenues, Gains and Other Support 6,250,636 118,728 6,369,364 Expenses Program Services: Zoological park 2,788,662 - 2,788,662 Guest services 1,142,127 - 1,142,127 Education 715,576 - 715,576 OCIC 265,053 - 265,053 Total Program Services 4,911,418 - 4,911,418 Support Services: Management and general 639,626 - 639,626 Fund raising 263,197 - 263,197 Total Support Services 902,823 - 902,823 Total Expenses 5,814,241 - 5,814,241 Funding of Endowment at CFF - (152,818) (152,818) Change in net assets 436,395 (34,090) 402,305 Net Assets - Beginning of Year 7,738,666 3,450,559 11,189,225 Net Assets - End of Year $ 8,175,061 $ 3,416,469 $ 11,591,530 The accompanying notes are an integral part of these financial statements. 6 CENTRAL FLORIDA ZOOLOGICAL SOCIETY, INC. STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2018 Without Donor With Donor Restrictions Restrictions Total Revenues, Gains and Other Support: Gate receipts $ 2,363,073 $ 2,363,073 Guest services, net of cost of $77,790 208,584 208,584 Educational programs 275,352 275,352 Seminole County Tourist Development Council 325,000 325,000 State and Local Government Grants 147,811 147,811 Contributions: Cash contributions 326,044 160,000 486,044 In kind 5,000 5,000 Pass-holder subscriptions 593,391 593,391 Promotional events, net of costs of $74,375 124,534 124,534 Facilities rental fees, net of costs $56,820 46,913 46,913 Net assets released from restrictions: Restrictions satisfied by payments 291,935 (291,935) - Investment earnings 240 240 Train and carousel income 163,348 163,348 Other contractual income 60,928 60,928 Amortization-discount on contribution receivable 264,268 264,268 Other 120,925 120,925 Total Revenues, Gains and