CPA Annual Report: 1988 – 1989–Financial Report

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%.

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