NEW MEXICO BIOPARK SOCIETY, INC. AUDITED FINANCIAL STATEMENTS Years Ended December 31, 2017 and 2016 8220 San Pedro NE Ste 400 · Albuquerque, New Mexico 87113 Ph: 505-274-7888 · Fax: 505-274-7889 · www.BPWCcpa.com TABLE OF CONTENTS Page INDEPENDENT AUDITORS’ REPORT………………………………………………………………1-2 FINANCIAL STATEMENTS Statements of Financial Position………………………………………………………………… 3 Statements of Activities ………………………………………………………………………… 4-5 Statements of Cash Flows………………………………………………………………………… 6 Notes to Financial Statements…………………………………………………………………… 7-15 INDEPENDENT AUDITORS’ REPORT To the Board of Directors New Mexico BioPark Society, Inc. Albuquerque, New Mexico We have audited the accompanying financial statements of New Mexico BioPark Society, Inc. (a nonprofit organization), which comprise the statements of financial position as of December 31, 2017 and 2016, 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. Auditors’ 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 auditors’ 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 auditors consider 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. Correction of Error As discussed in Note P to the financial statements, an error resulting in the understatement of amounts previously reported for accounts receivable and contribution revenue as well as an error resulting in the overstatement of contributions payable and program expenses were discovered by management during the current year. Accordingly, amounts reported for accounts receivable, contribution revenue, accrued liabilities and program expenses have been restated in the 2016 financial statements now presented. Our opinion is not modified with respect to that matter. 8220 San Pedro NE Ste 400 · Albuquerque, New Mexico 87113 Ph: 505-274-7888 · Fax: 505-274-7889 · www.BPWCcpa.com Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of New Mexico BioPark Society, Inc. as of December 31, 2017 and 2016, 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. BPWC, LLC Albuquerque, New Mexico June 14, 2018 New Mexico BioPark Society, Inc. Statements of Financial Position December 31, 2017 and 2016 2017 2016 ASSETS Cash and cash equivalents $ 6,798,576 $ 5,663,686 Investments - unrestricted 1,039,354 983,971 Accounts receivable 1,080,483 1,063,386 Prepaid expenses 16,611 3,642 Pledges receivable 26,072 82,156 Property and equipment 104,161 113,169 Permanently restricted assets Beneficial interest in assets held by others 2,653,437 2,400,867 Endowment fund investments 75,305 75,305 Investments 100,000 100,000 TOTAL ASSETS $ 11,893,999 $ 10,486,182 LIABILITIES AND NET ASSETS LIABILITIES Accounts payable $ 437,179 $ 335,953 Accrued liabilities 98,153 54,146 Contribution payable to the BioPark 1,173,737 905,476 Contribution payable to the BioPark for capital improvements 676,988 891,329 Deferred membership and sponsorship revenue 760,996 794,615 TOTAL LIABILITIES 3,147,053 2,981,519 NET ASSETS Unrestricted 3,823,115 3,075,061 Temporarily restricted 2,095,092 1,853,433 Permanently restricted 2,828,739 2,576,169 TOTAL NET ASSETS 8,746,946 7,504,663 TOTAL LIABILITIES AND NET ASSETS $ 11,893,999 $ 10,486,182 See accompanying notes to financial statements. -3- New Mexico BioPark Society, Inc. Statement of Activities Year Ended December 31, 2017 Temporarily Permanently Unrestricted Restricted Restricted Total Revenues and other support Special events at the BioPark $ 2,548,641 $ - $ - $ 2,548,641 Membership dues 1,849,900 - - 1,849,900 Contributions 336,421 426,873 - 763,294 Programs 566,690 - - 566,690 Investment income 78,843 44,550 252,570 375,963 Other income 4,989 - - 4,989 Net assets released from restriction 229,764 (229,764) - - Total revenues and other support 5,615,248 241,659 252,570 6,109,477 Expenses Program services Special events at the BioPark 1,359,237 - - 1,359,237 Program and BioPark support 1,070,724 - - 1,070,724 Revenue sharing with BioPark 1,171,474 - - 1,171,474 Total program services 3,601,435 - - 3,601,435 Support services 787,493 - - 787,493 Fund-raising 478,266 - - 478,266 Total expenses 4,867,194 - - 4,867,194 Change in net assets 748,054 241,659 252,570 1,242,283 Net assets, beginning of year 3,075,061 1,853,433 2,576,169 7,504,663 Net assets, end of year $ 3,823,115 $ 2,095,092 $ 2,828,739 $ 8,746,946 See accompanying notes to financial statements. -4- New Mexico BioPark Society, Inc. Statement of Activities Year Ended December 31, 2016 Temporarily Permanently Unrestricted Restricted Restricted Total Revenues and other support Special events at the BioPark $ 2,201,176 $ - $ - $ 2,201,176 Membership dues 1,831,303 - - 1,831,303 Contributions 346,876 488,356 - 835,232 Programs 570,853 - - 570,853 Investment income 37,961 38,130 118,882 194,973 Other income 6,373 - - 6,373 Net assets released from restriction 524,112 (524,112) - - Total revenues and other support 5,518,654 2,374 118,882 5,639,910 Expenses Program services Special events at the BioPark 1,057,148 - - 1,057,148 Program and BioPark support 1,355,079 - - 1,355,079 Revenue sharing with BioPark 1,121,689 - - 1,121,689 Total program services 3,533,916 - - 3,533,916 Support services 792,482 - - 792,482 Fund-raising 393,097 - - 393,097 Total expenses 4,719,495 - - 4,719,495 Change in net assets 799,159 2,374 118,882 920,415 Net assets, beginning of year 2,275,902 1,851,059 2,457,287 6,584,248 Net assets, end of year $ 3,075,061 $ 1,853,433 $ 2,576,169 $ 7,504,663 See accompanying notes to financial statements. -5- New Mexico BioPark Society, Inc. Statements of Cash Flows Years Ended December 31, 2017 and 2016 2017 2016 CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ 1,242,283 $ 920,415 Adjustments to reconcile change in net assets to net cash provided by operating activities Depreciation 27,436 16,035 Loss on sale of property and equipment 3,733 - Net realized and unrealized gain on investments (56,590) (17,531) Net realized and unrealized gain on permanently restricted assets (252,570) (118,882) Changes in operating assets and liabilities: Accounts receivable (17,097) 999,283 Prepaid expenses (12,969) (1,480) Accounts payable 101,226 90,124 Accrued liabilities 44,007 2,887 Contribution payable to the BioPark 53,920 (74,212) Deferred membership revenue (33,619) 63,454 Contributions restricted for long-term purposes Cash contributions (52,222) (27,873) Restricted pledges receivable 56,722 27,873 Amortization of discount on pledges receivable (638) (3,008) Cash provided by operating activities 1,103,622 1,877,085 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments (95,794) (246,306) Proceeds on sale of investments 97,001 238,994 Proceeds on property and equipment 1,100 - Purchases of property and equipment (23,261) (16,220) Cash used by investing activities (20,954) (23,532) CASH FLOWS FROM FINANCING ACTIVITIES Capital campaign pledges received 52,222 27,873 Cash provided by financing activities 52,222 27,873 Change in cash and cash equivalents 1,134,890 1,881,426 Cash and cash equivalents, beginning of year 5,663,686 3,782,260 Cash and cash equivalents, end of year $ 6,798,576 $ 5,663,686 See accompanying notes to financial statements. -6- New Mexico BioPark Society, Inc. Notes to Financial Statements December 31, 2017 and 2016 NOTE A – NATURE OF ORGANIZATION New Mexico BioPark Society, Inc., (NMBPS) is a nonprofit organization founded in 1969. The NMBPS’s purpose and function is to promote the development of the Albuquerque Biological Park (Rio Grande Zoo, Albuquerque Aquarium, Rio Grande Botanic Garden, Tingley Beach), to further community interest in the BioPark, and to assist in raising funds for the continued development and capital improvements of the BioPark. NMBPS raises funds from donations received from private foundations, individuals, businesses, fund-raising events, state lobbying efforts, grants and special fund-raising campaigns.