CPA Annual Report: 1989 – 1990–Financial Report

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