September 1989
COMMISSION ON PRESERVATION AND
ACCESS
FINANCIAL STATEMENTS
JUNE 30, 1989
1801 K Street N W Telephone 202 833 7932
Washington. DC 20006
Price-Waterhouse
Report of Independent Accountants
August 21, 1989
To the Board of Directors of
Commission on Preservation and Access
In our opinion, the accompanying balance sheet and the related
statements of revenues, expenses and changes in fund balance, of cash
flows and of functional expenses present fairly, in all material
respects, the financial position of the Commission on Preservation and
Access at June 3C, 1989, and the results of its operations, its
functional expenses and its cash flows for the year in conformity with
generally accepted accounting principles. These financial statements are
the responsibility of the Commission's management; our responsibility is
to express an opinion on these financial statements based on our audit.
We conducted our audit of these statements in accordance with generally
accepted auditing standards which require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for the opinion expressed above.
[signed "Price Waterhouse"]
COMMISSION ON PRESERVATION AND ACCESS
BALANCE SHEET
JUNE 30, 1989
ASSETS
Cash and cash equivalents, including restricted
amount of $1,364,148 $1,960,232
Grants receivable (Notes 1 and 2) 150,000
Prepaid expenses and deposits 4,488
Total assets $2,114,720
LIABILITIES AND FUND BALANCE
Deferred revenue (Notes 1 and 2)
Unrestricted $ 200,000
Restricted 1,309,023
Contracts payable (Note 2)
Unrestricted 48,250
Restricted 55,125
Accounts payable and accrued
employee benefits 58,712
Total liabilities 1,671,110
Fund balance 443,610
Total liabilities and fund balance $2,114,720
COMMISSION ON PRESERVATION AND ACCESS
STATEMENT OF REVENUES. EXPENSES AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30. 1989
Total
Unrestricted Restricted 1989
Revenues (Note 2)
Grants $597,600 $160,505 $ 758,105
Contributions 240,075 240,075
Interest 97,983 97,983
------- ------- -------
Total revenues 935,658 160,505 1,096,163
------- ------- ---------
Expenses (Notes 2, 3 and 4)
Program
National Preservation Program 441,189 441,189
International Project 71,059 71,059
Advisory Committees 55,837 55,837
Seminar on Scholarly Resources
in Art History 19,528 19,528
Technology Assessment 14,081 14,081
------- ------ ------
Total program 441,189 160,505 601,694
------- ------- -------
Administration 50,859 50,859
------ ------
Total expenses 492,048 160,505 652,553
------- ------- -------
Excess of revenues over expenses 443,610 443,610
Fund balance, beginning of year - - -
Fund balance, end of year $443.610 $ - $ 443.610
======= ======= ========
COMMISSION ON PRESERVATION AND ACCESS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30. 1989
Cash flows from operating activities:
Excess of revenues over expenses $ 443,610
-------
Adjustments to reconcile excess of revenue over expenses to
net cash provided by operating activities:
Increase in grants receivable (150,000)
Increase in prepaid expenses and deposits (4,488)
Increase in deferred revenue 1,509,023
Increase in contracts payable 103,375
Increase in accounts payable and accrued employee
benefits 58,712
---------
Total adjustments 1,516,622
---------
Net cash provided by operating activities 1,960,232
Cash and cash equivalents, beginning of year -
---------
Cash and cash equivalents, end of year $1.960.232
=========
COMMISSION ON PRESERVATION AND ACCESS
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED JUNE 30, 1989
Seminar on
Scholarly
Inter- Resources
National national Advisory in Technology Total Admin- Total
Preservation Project Committees Art Assessment Program istration
Program History
Unrestricted
Contracts $141,650 $141.650 $141.650
Staff and travel 170,118 170,118 $27.608 197,726
Meetings 742 742 742
Board expenses 9,291 9,291
Communications 3,442 3,442 3,442
Support services 125,237 125,237 13,960 139,197
------- ------ ------ ------ ------ ------ ------ -------
441,189 441,189 50,859 492,048
------- ------ ------ ------ ------ ------ ------ -------
Restricted
Contracts $53.125 $ 2,000 55,125 55,125
Staff and travel 12,784 $ 534 13,318 13,318
Meetings 29,455 18,542 $ 3,223 51,220 51,220
Consultants 17,823 10,382 10,858 39,063 39,063
Support services 111 1,216 452 1,779 1,779
------- ------ ------ ------ ------ ------ ------ -------
71.059 55,837 19,528 14,081 160,505 160,505
------- ------ ------ ------ ------ ------ ------ -------
Total expenses $441,189 $71.059 $55.837 $19.528 $14.081 $601.694 $50.859 $652.553
======= ====== ====== ====== ====== ======= ====== =======
COMMISSION ON PRESERVATION AND ACCESS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1989
NOTE 1 - ORGANIZATION
The Commission on Preservation and Access (Commission) is a non-profit
organization incorporated under the laws of the District of Columbia in
1988 for the purpose of fostering, developing, and supporting systematic
and purposeful collaboration in order to ensure the preservation of the
published and documentary record in all formats and provide equitable
access to that information. The Commission is exempt from Federal income
tax under Internal Revenue Code section 501(c)(3).
During fiscal year 1989, the Commission received grants totalling
approximately $2,267,000 from the Council on Library Resources
(Council). Of these grants, $150,000 and $1,509,023 are recorded as a
grant receivable and as deferred revenue, respectively, at June 30,
1989. The Commission's operations are also financed through
contributions from academic and research institutions, and through
general support grants and restricted grants from private foundations
and other sources. Of the Council grants, $2,067,000 was the deferred
balance of restricted grants and contributions for support of the
preservation program received by the Council prior to the Commission's
date of incorporation. The Commission conducts its work directly through
committees and working groups as well as through contracts with other
organizations and individuals.
Certain members of the Commission's Board of Directors are also members
of the Council's Board of Directors. However, as these members are in
the minority and there are no other elements of managerial or financial
control, these two entities have not been consolidated.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICES
The Commission's financial statements have been prepared on the accrual
basis of accounting except for the costs of office furniture and
equipment which are consistently charged to expense when incurred. The
Commission does not consider such expenditures to be material to warrant
capitalization and depreciation. The significant accounting policies
followed in the preparation of the financial statements are described
below.
Grants
Grants are recorded as receivables and deferred revenue when the
Commission is notified that it has been awarded the funds. Unrestricted
grant revenue is recognized as income in accordance with the budgeted
annual payments specified by the grantor. Restricted grant revenue is
recognized when the related expenses are incurred.
Contract expenses are recorded when the recipients are notified that
they are to receive the funds. Current period expenses are reduced for
contract refunds and overappropriations.
Contributions
Contributions for general support of the Commission are recognized as
revenue when received.
Cash and cash equivalents
Cash and cash equivalents, which primarily consist of treasury bills and
deposits in a money market fund, are recorded at cost which approximates
market. Cash equivalents represent investments with original maturities
of 90 days or less. Interest is not restricted by the related grants and
accordingly is recognized as unrestricted revenue.
Functional allocation of expenses
Costs of providing the various programs of the Commission have been
summarized on a functional basis in the accompanying financial
statements. Certain indirect costs identified as support services costs
have been allocated to Programs and administration on a systematic
basis. These costs primarily include salary, benefits, rent and other
expenses.
NOTE 3 - RETIREMENT PLAN
Commission staff members are employees of the Council and receive the
same benefits as members of the Council. Employees are eligible for
participation in a defined contribution retirement annuity program
administered through the TIAA/CREF insurance companies. Individual
contracts issued under the plan provide for full and immediate vesting
of both the Commission's and employees' contributions. The Commission's
contribution was approximately $26,000 for fiscal year 1989.
NOTE 4 - COMMITMENTS
The Commission entered into an agreement with the Council effective July
1, 1988 under which the Council provides office space, employee
services, equipment, supplies and other overhead items to the
Commission. The percentage of shared overhead costs charged to the
Commission is negotiated annually. For fiscal year 1989, the
Commission's share was 25%.
Contract expenses are recorded when the recipients are notified that
they are to receive the funds. Current period expenses are reduced for
contract refunds and overappropriations.
Contributions
Contributions for general support of the Commission are recognized as
revenue when received.
Cash and cash equivalents
Cash and cash equivalents, which primarily consist of treasury bills and
deposits in a money market fund, are recorded at cost which approximates
market. Cash equivalents represent investments with original maturities
of 90 days or less. Interest is not restricted by the related grants and
accordingly is recognized as unrestricted revenue.
Functional allocation of expenses
Costs of providing the various programs of the Commission have been
summarized on a functional basis in the accompanying financial
statements. Certain indirect costs identified as support services costs
have been allocated to Programs and administration on a systematic
basis. These costs primarily include salary, benefits, rent and other
expenses.
NOTE 3 - RETIREMENT PLAN
Commission staff members are employees of the Council and receive the
same benefits as members of the Council. Employees are eligible for
participation in a defined contribution retirement annuity program
administered through the TIAA/CREF insurance companies. Individual
contracts issued under the plan provide for full and immediate vesting
of both the Commission's and employees' contributions. The Commission's
contribution was approximately $26,000 for fiscal year 1989.
NOTE 4 - COMMITMENTS
The Commission entered into an agreement with the Council effective July
1, 1988 under which the Council provides office space, employee
services, equipment, supplies and other overhead items to the
Commission. The percentage of shared overhead costs charged to the
Commission is negotiated annually. For fiscal year 1989, the
Commission's share was 25%.
