WFIT Radio Station (A Department of Florida Institute of Technology, Inc.)
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WFIT Radio Station (a department of Florida Institute of Technology, Inc.) Financial Statements April 30, 2020 WFIT RADIO STATION (a department of Florida Institute of Technology, Inc.) TABLE OF CONTENTS Page INDEPENDENT AUDITOR’S REPORT 1 FINANCIAL STATEMENTS Statement of Financial Position 3 Statement of Activities 4 Statement of Functional Expenses 5 Statement of Cash Flows 6 Notes to Financial Statements 7 255 S. Orange Ave. Suite 1545 1415 S. Washington Ave. Orlando, FL 32801 www.bermanhopkins.com Titusville, FL 32780 Phone: 407-841-8841 Phone: 321-267-2190 Fax: 407-841-8849 8035 Spyglass Hill Road Fax: 321-268-2272 Melbourne, FL 32940 Phone: 321-757-2020 Fax: 321-242-4844 INDEPENDENT AUDITOR’S REPORT To the Board of Trustees of Florida Institute of Technology, Inc. We have audited the accompanying financial statements of WFIT Radio Station (“the Station”) (a department of Florida Institute of Technology, Inc., a nonprofit organization), which comprise the statement of financial position as of April 30, 2020, and the related statements of activities, functional expenses and cash flows 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 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 audits 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 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. 1 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of WFIT Radio Station as of April 30, 2020, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. October 14, 2020 Berman Hopkins Wright & LaHam Melbourne, Florida CPAs and Associates, LLP 2 WFIT RADIO STATION (a department of Florida Institute of Technology, Inc.) STATEMENT OF FINANCIAL POSITION April 30, 2020 ASSETS Due from University $ 1,003,695 Accounts receivable, net 9,661 Pledges receivable, net 6,744 Long-lived assets, net 1,516,130 TOTAL ASSETS $ 2,536,230 LIABILITIES AND NET ASSETS LIABILITIES Accounts payable $ 1,990 Deferred revenue 79,808 Total Liabilities 81,798 NET ASSETS Without Donor Restrictions 1,174,887 With Donor Restrictions 1,279,545 Total Net Assets 2,454,432 TOTAL LIABILITIES AND NET ASSETS $ 2,536,230 See notes to financial statements. 3 WFIT RADIO STATION (a department of Florida Institute of Technology, Inc.) STATEMENT OF ACTIVITIES YEAR ENDED APRIL 30, 2020 Without Donor With Donor Restrictions Restrictions Total SUPPORT AND REVENUES Corporation for Public Broadcasting Grant $ 114,434 $ - $ 114,434 Underwriting revenues 100,924 - 100,924 Memberships 136,293 - 136,293 Other contributed support 400,212 - 400,212 Net assets released from restrictions 39,370 (39,370) - Total support and revenues 791,233 (39,370) 751,863 EXPENSES Program services Programming and production 259,262 - 259,262 Broadcasting 119,782 - 119,782 Support services Management and general 174,922 - 174,922 Fundraising and development 143,724 - 143,724 Total expenses 697,690 - 697,690 CHANGE IN NET ASSETS 93,543 (39,370) 54,173 NET ASSETS - Beginning of year 1,081,344 1,318,915 2,400,259 NET ASSETS - End of year $ 1,174,887 $ 1,279,545 $ 2,454,432 See notes to financial statements. 4 WFIT RADIO STATION (a department of Florida Institute of Technology, Inc.) STATEMENT OF FUNCTIONAL EXPENSES YEAR ENDED APRIL 30, 2020 Programs Support Programming and Management and Fundraising and production Broadcasting general development Total Salaries $ 110,272 $ 25,514 $ 21,822 $ 81,587 $ 239,195 Benefits 32,372 7,678 6,533 19,224 65,807 Materials and supplies 52,266 38,169 9,906 10,121 110,462 Services and travel 42,183 15,169 4,611 32,792 94,755 Operations and maintenance 22,169 33,252 132,050 - 187,471 Total Expenses $ 259,262 $ 119,782 $ 174,922 $ 143,724 $ 697,690 See notes to financial statements. 5 WFIT RADIO STATION (a department of Florida Institute of Technology, Inc.) STATEMENT OF CASH FLOWS YEAR ENDED APRIL 30, 2020 CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ 54,173 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 55,421 Bad debt expense (recovery) (1,541) Change in assets and liabilities: Due from University (98,931) Accounts receivable 4,449 Pledges receivable 12,803 Accounts payable 1,658 Deferred revenue (28,032) Net cash provided by operating activities - NET CHANGE IN CASH - CASH - Beginning of year - CASH - End of year $ - See notes to financial statements. 6 WFIT RADIO STATION (a department of Florida Institute of Technology, Inc.) NOTES TO FINANCIAL STATEMENTS YEAR ENDED APRIL 30, 2020 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES WFIT Radio Station (the “Station”), a department of Florida Institute of Technology, Inc. (the “University”), is a noncommercial, public radio station licensed to the Florida Institute of Technology, Inc. and operated as a public service to its listening area. The Station is the only locally owned and operated public radio station in Brevard County. The Station’s mission is to enrich the cultural and educational environment and to serve the public interests and needs of the citizens of East Central Florida. The Station provides quality programming that entertains and educates its listening audience. The Station’s sponsorship of local cultural events enriches the lives of thousands on Florida’s Space and Treasure Coasts. The financial statements of the Station are presented on a stand-alone basis as a department of the University and have been prepared on the accrual basis. Because the Station is an integral part of the University, the majority of its expense accruals are included in the general liabilities of the University. Decreases occur in the amounts due from the University at the time of accrual. Basis of Presentation–The Station’s financial statements are formatted into two classes of net assets based on the existence or absence of donor-imposed restrictions. Net assets, revenues, gains and support are classified based on the existence or absence of donor- imposed restrictions. A description of the two classes of net assets follows: Net Assets without Donor Restrictions: They represent the difference between assets and liabilities that are not restricted by donor-imposed stipulations. Net assets which were previously restricted for which the Station has met donor restrictions are released from restriction and reported as Net Assets without Donor Restrictions in the financial statements. Net Assets with Donor Restrictions: They are defined as net assets subject to donor-imposed stipulations that may or will be met either by actions of the Station and/or the passage of time or include perpetual restrictions. Contributions that are restricted by the donor are reported as increases in Net Assets without Donor Restrictions if the restrictions expire within the fiscal year in which the contributions are received. Due From University—For purposes of the statement of cash flows, the asset Due from University includes the Station’s interest in the University’s cash and investments balances. The Station has a Board restricted endowment that is included in the pooled investments within the University. 7 WFIT RADIO STATION (a department of Florida Institute of Technology, Inc.) NOTES TO FINANCIAL STATEMENTS YEAR ENDED APRIL 30, 2020 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Corporation for Public Broadcasting Community Service Grants—The Corporation for Public Broadcasting (the “CPB”) is a private, nonprofit grant-making organization responsible for funding more than 1,000 television and radio stations. The CPB distributes annual Community Service Grants (“CSGs”) to qualifying public broadcasting entities. CSGs are used to augment the financial resources of public broadcasting entities and to enhance the quality of programming and expand the scope of public broadcasting services. Each CSG may be expended over one or two federal fiscal years as described in the Communications Act, 47 United States Code Annotated, Section 396(k)(7). In any event, each grant must be expended within two years of the initial grant authorization. According to the Communications Act, funds may be used at the discretion of recipients for purposes relating primarily to production and acquisition of programming.