September 1991
FINANCIAL STATEMENTS
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, 1991, and the
related statements of revenue, expenses and changes in fund balance,
cash flows and functional expenses for the year then ended. We
previously audited and reported upon the financial statements of the
Commission for the year ended June 30, 1990, which condensed statements
are included for comparative purposes only. 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 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, 1991, 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.
September 6, 1991
COMMISSION ON PRESERVATION AND ACCESS
BALANCE SHEET
June 30, 1991
(with comparative totals for 1990)
ASSETS
Totals
1991 1990
Cash and cash equivalents, including
restricted amounts of $1,887,503 in
1991 and $2,429,982 in 1990 $2,613,613 $3,008,549
Grants receivable (Notes 1, 2 and 4) 66,667 283,333
Prepaid expenses and other receivables 4.457 2,337
Total assets $2,684,737 $3,294,219
LIABILITIES AND FUND BALANCE
Accounts payable and accrued
expenses (Note 4) $ 39,632 $ 40,112
Contracts payable (Note 2):
Unrestricted 29,679 39,525
Restricted 323,696 146,555
Deferred revenue (Notes 1 and 2):
Unrestricted 66,667 283,333
Restricted 1,563,807 2,283,427
Total liabilities 2,023,481 2,792,952
Fund balance 661,256 501,267
Total liabilities and fund
balance $2,684,737 $3,294,219
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, 1991
(with comparative totals for 1990)
Totals Totals
Unrestricted Restricted 1991 1990
Revenue (Note 2):
Grant $216,666 $719,620 $ 936,286 $ 619,423
Contributions 267,524 - 267,524 325,500
Interest 59,925 151,255 211,180 209,753
Total revenues 544,115 870 875 1,414,990 1,154,676
Expenses (Notes 2 and 4):
Program:
National Preservation
Program 268,575 - 268,575 281,993
Research and Publications 63,666 - 63,666 76,700
International Project - 128,303 128,303 64,283
International Project II - 494,400 494,400
Advisory Committees - 71 763 71,763 62,769
Technology Assessment - 81 052 81,052 189,149
Text and Image Project - 22,758 22,758 200,000
Communications - 72,599 72,599 41,735
Total program expenses 332,241 870,875 1,203,116 916,629
Administration 51,885 - 51,885 57,230
Total expenses 384,126 870,875 1,255,001 973,859
Excess of revenue over expenses 159,989 - 159,989 180,817
Fund balance, beginning of year 501,267 - 501,267 320,450
Fund balance, end of year $661,256 $ - $ 661,256 $ 501,267
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, 1991
(with comparative totals for 1990)
Totals Totals
Unrestricted Restricted 1991 1990
Cash flows from operating activities:
Excess of revenue over expenses $ 159,989 $ - $ 159,989 $ 180,817
Adjustments to reconcile excess
of revenue over expenses to
net cash (used in) provided
by operating activities:
Decrease (increase) in grants
receivable 216,666 - 216,666 (133,333)
(Increase) decrease in prepaid
expenses and other receivables (2,120) - (2,120) 2,151
(Decrease) increase in deferred
revenue (216,666) (719,620) (936,286) 934,577
(Decrease) increase in contracts
payable (9,846) 177,141 167,295 82,705
Decrease in accounts payable and
accrued expenses (480) - (480) (18.600)
Total adjustments (12.446) (542,479) (554,925) 867.500
Net cash provided by (used in)
operating activities 147,543 (542,479) (394,936) 1,048,317
Cash and cash equivalents,
beginning of year 578.567 2,429,982 3,008,549 1,960,232
Cash and cash equivalents,
end of year $ 726,110 $1,887,503 $2,613,613 $3,008,549
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, 1991
(with comparative totals for 1990)
National Research and International International Advisory Technology Text and
Preservation Publications Project Project 11 Committees Assessment Image Project Communications Total Totals Totals
Program (Hewlett) (Mellon) (Mellon) (Mellon) (Mellon) (Getty) (Mellon) Program Administration 1991 1990
Unrestricted:
Contracts $ - $30,179 $ - $ - $ - $ - $ - $ - $ 30,179 $ - $ 30,179 $ 71,700
Refunds and overappropriations (12,917) (5,580) - - - - - - (18,797) - (18,797) -
staff and travel 178,042 223 - - - - - - 178,265 28,961 207,226 214,282
Meetings and consultants - 31,368 - - - - - - 31,368 - 31,368 6,264
Board expenses - 11,111 11,111 12,803
Support services including - -
office expenses 103,450 7,776 - - - - - - 111,226 11,813 123,039 110,874
332,241 51,885 384,126
Restricted:
Contracts - - - 494,400 - 16,000 - - 510,400 - 510,400 339,409
Refunds and overappropriations (9 985) - - (9,985) - (9,985)
Staff and travel - - 23,479 - 13,548 23,447 26 36,339 96,869 - 96,869 72,405
Meetings 27,307 12,957 20,788 - 61,042 - 61,042 51,842
Consultants - - 102,067 - 29,834 37,783 1,941 750 172,375 - 172,375 63,376
Support services including
office expenses - - 2,757 - 1,074 820 13 35,510 40,174 - 40,174 28,062
- - 128,303 494,400 71,763 81,052 22,758 72,599 870,875 - 870,875 557,936
Total expenses $268,575 $63,666 $128,303 $494,400 $71,763 $81,052 $22,758 $72,559 $l,203,116 $51,885 $1,255,001 $973,859
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 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'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 conducts 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:
Basis of accounting
The financial statements of the Commission have been
prepared on the accrual basis.
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 recognized 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 payments specified by the
grantor.
Contributions
Contributions for general support of the Commission are recognized
as revenue when received.
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
approximates market. Cash equivalents represent investments with
original maturities of 90 days or less.
The Commission invests its excess cash in deposits with a major
bank, treasury bills and in money market mutual funds. These
securities typically mature within ninety days and, therefore, bear
minimal risk.
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 directly 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) and under applicable
regulations of the District of Columbia.
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, 1991 the Council owed $66,667 under the
terms of the general support grant.
The Commission entered into an agreement with the
Council effective July 1, 1988 under whiCh the Council provides
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 1991, the Commission's share was 25%. For
fiscal year 1991, direct expenses of $292, 200 and other overhead
costs of $94,400 were charged to the Commission. At June 30, 1991,
the Commission owed the Council $26, 739 under the terms of this
agreement.
