CPA Annual Report: 1992 – 1993–Financial Report

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