CPA Annual Report: 1990 – 1991–Financial Report

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.