September 1990
Coopers
& Lybrand
certified public accountants
Report of Independent Accountants
To the Board of Directors
Commission on Preservation and Access
We have audited the accompanying balance sheet of Commission on
Preservation and Access (the Commission) as of June 30, 1990, and the
related statements of revenue, expenses and changes in fund balance,
cash flows and functional expenses for the year then ended. 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. The financial statements of
the Commission as of June 30, 1989, were audited by other auditors,
whose report dated August 21, 1989, expressed an unqualified opinion on
those statements, from which condensed statements are included for
comparative purposes only. We also reviewed the adjustment described in
Note 5 that was applied to restate the 1989 financial statements. In our
opinion, such adjustment is appropriate and has been properly applied to
the 1989 financial statements.
We conducted our audit in accordance with generally accepted
auditing standards. 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 includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position of
Commission on Preservation and Access as of June 30, 1990, and the
results of its operations and its cash flows for the year then ended in
conformity with generally accepted accounting principles.
Cooper & Lybrand
Washington, D.C.
August 31, 1990
COMMISSION ON PRESERVATION AND ACCESS
BALANCE SHEET
June 30, 1990
(with comparative totals for 1989)
ASSETS
Totals
1990 1989
Cash and cash equivalents, including
restricted amount of $2,429,982
in 1990 and $1,487,308 in 1989 $3,008,549 $1,960,232
Grants receivable (Notes 1, 2 and 4) 283,333 150,000
Prepaid expenses and other receivables 2,337 4,488
Total assets $3,294,219 $2,114,720
LIABILITIES AND FUND BALANCE
Accounts payable and accrued
expenses (Note 4) $ 40,112 $ 58,712
Contracts payable (Note 2):
Unrestricted 39,525 48,250
Restricted 146,555 55,125
Deferred revenue (Notes 1, 2 and 5):
Unrestricted 283,333 200,000
Restricted 2,283,427 1,432,183
Total liabilities 2,792,952 1,794,270
Fund balance - unrestricted (Note 5) 501,267 320,450
Total liabilities and fund
balance $3,294,219 $2,114,720
The accompanying notes are an integral
part of these financial statements.
COMMISSION ON PRESERVATION AND ACCESS
STATEMENT OF REVENUE, EXPENSES AND CHANGES
IN FUND BALANCE
for the year ended June 30, 1990
(with comparative totals for 1989)
Totals Totals
Unrestricted Restricted 1990 1989
Revenue (Notes 2 and 5):
Grant $216,667 $402,756 $ 619,423 $ 634,945
Contributions 325,500 - 325,500 240,075
Interest 54,573 155.180 209,753 97,983
Total revenues 596,740 557,936 1,154 676 973,003
Expenses (Notes 2 and 4):
Program:
National Preservation
Program 281,993 - 281,993 441,189
Research and Publications 76,700 - 76,700 -
International Project - 64,283 64,283 71,059
Advisory Committees - 62,769 62,769 55,837
Technology Assessment - 189,149 189,149 14,081
Seminar on Scholarly
Resources in Art History - - - 19,528
Text and Image Project - 200,000 200,000 -
Communications - 41,735 41,735 -
Total program expenses 358,693 557,936 916,629 601,694
Administration 57,230 - 57,230 50,859
Total expenses 415,923 557,936 973,859 652,553
Excess of revenue over expenses 180,817 - 180,817 320,450
Fund balance, beginning of year 320,450 - 320,450 -
Fund balance, end of year
(Note 5) $501,267 $ - $ 501.267 $ 320,450
The accompanying notes are an integral
part of these financial statements.
COMMISSION ON PRESERVATION AND ACCESS
STATEMENT OF CASH FLOWS
for the year ended June 30, 1990
(with comparative totals for 1989)
Totals
1990 1989
Cash flows from operating activities:
Excess of revenue over expenses $ 180,817 $ 320,450
Adjustments to reconcile excess
of revenue over expenses to
net cash provided by operat-
ing activities:
Increase in grants receivable (133,333) (150,000)
Decrease (increase) in prepaid
expenses and other receivables 2,151 (4,488)
Increase in deferred revenue 934,577 1,632,183
Increase in contracts payable 82,705 103,375
(Decrease) increase in accounts
payable and accrued expenses (18,600) 58,712
Total adjustments 867,500 1,639,782
Net cash provided by
operating activities 1,048,317 1,960,232
Cash and cash equivalents,
beginning of year 1,960,232
Cash and cash equivalents,
end of year $3,008,549 $1,960,232
The accompanying notes are an integral
part of these financial statements.
COMMISSION ON PRESERVATION AND ACCESS
STATEMENT OF FUNCTIONAL EXPENSES
for the year ended June 30, 1990
(with comparative totals for 1989)
National Research and International Advisory Technology Text and Communini-
Preservation Publications Project Committees Assessment Image Project cations Total Admini- Totals Totals
Program (Hewlett) (Mellon) (Mellon) (Mellon) (Getty) (Mellon) Program stration 1990 1989
Unrestricted:
Contracts $ - $71,700 $ - $ - $ - $ - $ - $ 71,700 $ - $ 71,700 $141,650
Staff and travel 180,912 - - - - - - 180,912 33,370 214,282 197,726
Meetings and consultants 1,264 5,000 - - - - - 6,264 - 6,264 742
Board expenses - - - - - - - - 12,803 12,803 9,291
Support services including
office expenses 99,817 - - - - - - 99,817 11,057 110,874 142,639
281,993 76,700 - - - - - 358,693 57,230 415,923 492,048
Restricted
Contracts - - 8,854 5,000 125,555 200,000 - 339,409 - 339,409 55,125
Staff and travel - - 22,288 13,383 22,202 - 14,532 72,405 - 72,405 13,318
Meetings - - 11,543 23,851 16,290 - - 51,684 - 51,684 51,220
Consultants - - 21,504 19,770 25,102 - - 66,376 - 66,367 39,063
Support services including
office expenses - - 94 765 - - 27,203 28,062 - 28,062 1,779
- - 64,283 62,769 189,149 200,000 41,735 557,936 - 557,936 160,505
Total expenses $281,993 $76,700 $64,283 $62,769 $189,149 $200,000 41,735 $916,629 $57,230 $973,859 $652,553
The accompanying notes are an integral
part of these financial statements.
COMMISSION ON PRESERVATION AND ACCESS
NOTES TO FINANCIAL STATEMENTS
1. Organization
The Commission on Preservation and Access (the
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 pur-
poseful collaboration in order to ensure the preservation of
the published and documentary record in all formats and pro-
vide equitable access to that information.
The Commission's operations are financed through
contributions from academic and research institutions, and
through general support grants and restricted grants from
private foundations and other sources. The Commission con-
ducts its work directly through committees and working groups
as well as through contracts with other organizations and
individuals.
2. Summary of significant accounting policies
The significant accounting policies followed in the
preparation of the financial statements are described below:
Grant revenue
Grants to the Commission are recorded in the
balance sheet as grants receivable and as deferred
grant revenues when awarded. Revenues and interest
income earned on restricted grant funds are recog-
nized only to the extent of expenditures that
satisfy the restricted purpose of these grants.
Unrestricted grant revenue is recognized as
income in accordance with the budgeted annual pay-
ments specified by the grantor.
Contributions
Contributions for general support of the Com-
mission are recognized as revenue when received.
COMMISSION ON PRESERVATION AND ACCESS
NOTES TO FINANCIAL STATEMENTS
Contracts payable
Contracts made by the Commission are recorded
in the balance sheet as contracts payable and as an
expense at the time recipients are awarded the
contracts. That normally occurs after the Board of
Directors has approved the contracts, which are
generally payable within one year.
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 approxi-
mates market. Cash equivalents represent invest-
ments with original maturities of 90 days or less.
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 serv-
ices costs have been allocated to programs and
administration on a systematic basis. These costs
primarily include salary, benefits, rent and other
expenses.
3. Income taxes
The Commission is exempt from Federal income tax
under Internal Revenue Code section 501(c)(3).
4. Council on Library Resources, Inc.
During fiscal year 1989, the Commission received
grants totaling approximately $2,267,000 from the Council on
Library Resources, Inc. (the Council). Included in this
amount was a general support grant from the Council totaling
$200,000. The remaining $2,067,000 was the deferred balance
of restricted grants and contributions for support of the
Commission's preservation program received by the Council
prior to the Commission's date of incorporation. At June 30,
1990 and 1989, the Council owed $133,333 and $150,000,
respectively, under the terms of the general support grant.
COMMISSION ON PRESERVATION AND ACCESS
NOTES TO FINANCIAL STATEMENTS
The Commission entered into an agreement with the
Council effective July 1, 1988 under which the Council pro-
vides office space, employee services including benefits,
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
1990, the Commission's share was 25%. The total amount of
expenses and other overhead costs charged to the Commission
for fiscal year 1990 amounted to $356,400. At June 30, 1990
and 1989, the Commission owed the Council $30,173 and
$54,124, respectively, under the terms of this agreement.
5. Prior period adjustment
All of the Commission's current restricted grants
require that any interest earned on the unspent grant awards
held by the Commission be expended for the purposes described
in the grant awards. During fiscal year 1989, the Commission
had earned interest income on one of the undisbursed re-
stricted grant awards and had recorded this interest as
unrestricted interest income. In order to properly reflect
restricted grant revenue for 1989, the following amounts at
June 30, 1989, which are included in this report for compara-
tive purposes only, have been restated:
As Previously
Reported As Restated
Grant revenue - restricted $ 160,505 $ 37,345
Deferred revenue - restricted 1,309,023 1,432,183
Excess of revenue over
expenses 443,610 320,450
Fund balance 443,610 320,450