THE COMISSION ON PRESERVATION AND ACCESS
FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 1993
Contents
Independent Auditors' Report
Balance Sheet
Statement of Revenue, Expenses and Changes in Fund Balance
Statement of Cash Flows
Statement of Functional Expenses
Notes to the Financial Statements
BEERS & CUTLER
Certified Public Accountants
1250 Connecticut Avenue NW
Fourth Floor
Washington DC 20036
Facsimile 202-778-0239
Virginia Office
8230 Leesburg Pike
Suite 700
Tysons Corner
Vienna Virginia 22182
Independent Auditors' Report
To the Board of Directors
The Commission on Preservation and Access
Washington, D.C.
We have audited the accompanying balance sheet of The Commission on
Preservation and Access (the Commission) as of June 30, 1993, 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 responsibiliq 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 The
Commission on Preservation and Access as of June 30, 1993, and the
results of its operations and its cash flows for the year then ended in
conformity with generally accepted accounting principles.
[Beers & Cutler]
August 12, 1993
Member Summit International
Associates Inc with
offices in principal US
and International Cities
Member AICPA
Division for Firms-
SEC Practice Section
THE COMMISSION ON PRESERVATION AND ACCESS
BALANCE SHEET
JUNE 30, 1993
(with comparative totals for 1992)
Assets
1993 1992
---- ----
Cash $ 203,438 $ 339,468
Investments, including restricted amounts of $1,801,478
and $788,758 2,486,287 1,679,992
Grants receivable 237,500 300,000
Prepaid expenses and other receivables 24,780 18,557
Furniture, fixtures and equipment, net
of accumulated depreciation of $12,521 and $4,057 16.598 22.962
--------- ---------
Total assets $2,968,603 $2,360,979
Liabilities and Fund Balance
Accounts payable and accrued expenses $ 45,133 $ 35,902
Contracts payable
Unrestricted 28,556 10,179
Restricted 102,978 361,640
Deferred revenue
Unrestricted 238,994 439,612
Restricted 1.801,478 788,758
--------- ---------
Total liabilities 2,217,139 1,636,091
Fund Balance 751,464 724,888
--------- ---------
Total liabilities and fund balance $2,968,603 $2,360,979
The accompanying notes are an integral part of these financial statements.
THE COMMISSION ON PRESERVATION AND ACCESS
STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND BALANCE
YEAR ENDED JUNE 30, 1993
(with comparative totals for 1992)
1993 1992
Total Total
Unrestricted Restricted All Funds All Funds
Revenue
Grant $200,619 $758,021 $ 958,640 $ 923,344
Contributions 170,400 -- 170,400 281,000
Publication sales -- 7,323 7,323 5,070
Interest 32,148 -- 32,148 40,749
------- ------ --------- ---------
Total revenue 403,167 765,344 1,168,511 1,250,163
Expenses
Program
National Preservation Program 143,637 -- 143,637 267,549
Demonstration Projects 125,618 -- 125,618 10,387
International Projects - 305,584 305,584 233,980
Advisory Committees -- 70,651 70,651 57,202
Technology Assessment -- 153,312 153,312 351,140
Text and Image Project - -- -- 51,085
Communications - 168,178 168,178 123,301
Nonprint Materials -- 67,619 67,619 34,583
------- ------- --------- ---------
Total program expenses 269,255 765,344 1,034,599 1,129,227
Administration 107,336 -- 107,336 57,304
Total expenses 376,591 765,344 1,141,935 1,186,531
Excess of Revenue over Expenses 26,576 -- 26,576 63,632
Fund Balance, beginning of year 724,888 -- 724,888 661,256
------- ------- -------- ---------
Fund Balance, end of year $751,464 $ -- $ 751,464 $ 724,888
The accompanying notes are an integral part of these financial statements.
THE COMMISSION ON PRESERVATION AND ACCESS
STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 1993
(with comparative totals for 1992)
1993 1992
Total Total
Unrestricted Restricted All Funds All Funds
Cash Flows from Operating Activities
Excess of revenue over expenses $ 26,576 $ -- $ 26,576 $ 63,632
Adjustments to reconcile excess of revenue over expenses
to net cash (used in) provided by operating activities
Depreciation 8,464 -- 8,464 4,057
Changes in:
Grants receivable 150,000 (87,500) 62,500 (233,333)
Prepaid expenses and other receivables (6,223) -- (6,223) (14,100)
Account payable and accrued ecpenses 9,231 -- 9,231 (3,730)
Contracts payable 18,377 (258,662) (240,285) 18,444
Deferred revenue (200,618) 1,012,720 812,102 (402,104)
--------- --------- --------- ---------
Total adjustments (20,769) 666,558 645,789 (630,766)
Net cash provided by (used in) operating activities 5,807 666,558 672,365 (567,134)
--------- --------- --------- ---------
Cash Flows from Investing Activities
Purchases of investments (3,944,737 (666,558) (4,611,295) (3,279,992)
Sales of investments 3,805,000 -- 3,805,000 1,600,000
Purchase of furniture, fixtures and equipment (2,100) -- (2,100) (27,019)
--------- --------- --------- ---------
Net cash used in investing activities (141,837 (666,558) (808,395) (1,707,011)
--------- --------- --------- ---------
Net Decrease in Cash (136,030) -- (136,030) (2,274,145)
Cash beginning of year 339,468 -- 339,468 2,613 ,613
--------- --------- --------- ---------
Cash end of year $ 203,438 $ -- $ 203,438 $ 339,468
--------- --------- --------- ---------
The accompanying notes are an integral part of these financial statements.
THE COMMISSION ON PRESERVATION AND ACCESS
STATEMENT OF FUNCTIONAL EXPENSES
YEAR ENDED JUNE 30, 1993
(with comparative totals for 1992)
National Demonstration International Advisory Technology Nonprint
Preservation Projects Projects Committeer Assessment Communications Materials Total Totals Totals
Program (Hewlett) (Mellon) (Mellon) (Mellon) (Mellon) (Mellon) Program Administration 1993 1992
Unrestricted
Contracts $ - $ 87,501 $ - $ - $ - $ - $ - $ 87,501 $ - $ 87,501 $ 10,000
Refunds and overappropriations (4,318) - - - - - - (4,318) - (4,318) (6,811)
Staff and travel 57,486 - 9 - - - - - 57,495 83,542 141,037 192,792
Meetings and consultants 285 37,812 - - - - - 38,097 - 38,097 6,722
Board expenses - - - - - - - - 13,247 13,247 10,838
Support services including office expenses 90,188 296 - - - - - 90,480 10,547 101,027 121,699
--------- ------ ---------- --------- -------- ------------ --------- ------- -------- -------- -------
$ 146,637 $125,618 $ $ $ $ $ $ 269,255 $ 107,336 $ 376,591 $ 335,240
--------- ------ ---------- --------- -------- ------------ --------- ------- -------- -------- -------
Restricted
Contracts $ - $ - $ 78,857 $ - $ 75,000 $ - $ 50,000 $ 203,857 $ - $ 203,857 $ 360,937
Refunds and overappropriations - - (805) - (1,436) - - (2,241) - (2,241) -
Staff and travel - - 45,609 29,714 37,905 123,403 - 236,641 - 236,641 160,490
Meetings and consultants - - 33,564 16,482 13,391 - - 63,437 - 63,437 42,691
Board expenses - - 141,106 23,898 27,523 1,301 17,423 211,251 - 211,251 204,306
Support services including office expenses - - 7,523 558 929 43,464 196 52,399 - 52,399 82,867
--------- ------ ---------- --------- -------- ------------ --------- ------- -------- -------- -------
305,584 70,651 153,312 168,178 67,619 765,344 765,344 851,291
--------- ------ ---------- --------- -------- ------------ --------- ------- -------- -------- -------
$ 143,637 $125,618 $ 305,584 $ 70,651 $153,312 168,178 67,619 $1,034,599 $ 107,336 $1,141,935 $1,186,531
--------- ------ ---------- --------- -------- ------------ --------- ------- -------- -------- -------
THE COMMISSION ON PRESERVATION AND ACCESS
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1993
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
colleges, universities and other organizations 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 staternents 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 revenue when awarded.
Interest earned on grant funds received is deferred and included in
deferred grant revenue. Revenue earned on restricted grant funds,
including interest, is 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 ecpense at the time the
contracts are signed. This normally occurs after the Board of Directors
has approved the contracts, which are generally payable within one year.
Cash - Cash consists of demand deposits with a bank, investments with
original maturities of 90 days or less and deposits in a money market
fund which are recorded at cost.
Investments - The Commission invests its excess cash in U.S. treasury
bills, notes, and federal agency securities. These securities typically
mature within 180 days and bear minimal risk. During 1993, The
Commission invested $400,000 in U.S. treasury notes which mature in
October 1994.
Furniture, Fixtures and Equipment - Furniture, fixtures and equipment
are carried at cost. Depreciation is computed using the straight-line
nethod over the estimated useful lives of the assets ranging from three
to five years.
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.
Reclassifications - Where appropriate, the 1992 financial statements
have been reclassified to conform with the 1993 presentation.
THE COMMISSION ON PRESERVATION AND ACCESS
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, I993
3. Changes in Restricted Deferred Revenue
Balance, beginning of year $ 788,758
Additions 1,716,000
Interest earned on unepended grant funds received 54,741
2,559,499
Reductions
Grant revenue 758.021
Balance, end of year $1,801,478
4. Income Taxes
The Commission is exempt from federal income tax under Internal Revenue
Code 501(c)(3) and under applicable regulations of the District of
Columbia.
5. Retirement Plan
All employee are eligible for participation in the Commission's defined
contribution retirement annuity program (the Plan) administered through
the TIAA/CREF insurance companies. Individual contracts issued under the
Plan provide for full and immediate vesting of the Commision's
contributions. The Commission's contributions were approimately $41,000
in fiscal year 1993.
6. Commitments
The Commission has entered into a noncancelable lease agreement for
office space which expires in April, 1998. As part of the lease
agreement, the Commission is assessed an annual charge based on its
proportionate share of the increase in the operating costs of the
building.
The future minimum based lease payment required under the lease as of
June 30, 1993 is as follows:
1994 $ 62,500
1995 62,500
1996 62,500
1997 62,500
Thereafter 52,083
$302,083
For the year ended June 30, I993, rent ecpense on this lease totaled
$62,132
