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HomeMy WebLinkAbout2003-01-13 - Agendas - Final MEETING NOTICE The Advertising and Promotion Commission will meet on Monday, January 13, 2003, at 2:00 p.m. at the Town Center Conference room. AGENDA ADVERTISING AND PROMOTION COMMISSION January 13, 2003 2:00 p.m. Town Center I. Call to Order A. Election of Chairman for 2003 B. Welcome new commissioners — Dan Coody and David McGeady II. Reports A. Approval of Minutes for December 9, 2002 B. Financial Report 1 . HMR Revenues 2. Financials - Tom Lonon, Scarbrough and Murtishaw 3. Update from City Attorney on Delinquent Tax Collection Efforts C. Director's Report — Marilyn Johnson • D. Convention and Visitor Activity — Allyson Twiggs E. Town Center Activity Report — Denise Bembenek F. Agency Report — Brian Clark, Sells/Clark, Inc. III. Old Business A. Alcohol Service Lease and Contract IV. New Business A. Kaminsky/Bradbury Fountain V. Executive Session for personnel matter - Marilyn Johnson review VI. Adjourn • ADVERTISING AND PROMOTION COMMISSION December 16,2002 JOE FENNEL — Chairman (term expires 4/1/03) Jose's 324 W. Dickson Fayetteville, AR 72701 501 -521-0194 (b) 501 -521 -0337 (answering machine and FAX) DAVID MCGEADY (term expires 4/1/04) Radisson Fayetteville 70 N. East Avenue Fayetteville, AR 72701 501-442-5555 (b) 501 -442-2105 (FAX) CURTIS SHIPLEY (term expires 4/1/05) 1132 E. Ridgeway Fayetteville, AR 72701 501-442-6067 (b) 501 -443-3672 (h) 501 -443-2001 (FAX) • CHING MONG (term expires 4/1/05) Quality Inn 523 S. Shiloh Drive Fayetteville, AR 72701 501 -444-9800 cell 466-9327 501 -521 -9006 (FAX) PAT GAZZOLA (term expires 4/1/06) Catfish Hole 356 E. Fairway Lane Fayetteville, AR 72701 501 -521 -7008 (b) cell 841 -0938 501 -443-7577 (h) 501 -521 -4946 (FAX) BOB DAVIS (term indefinite — appointed 1/01 ) 3257 Autumn Court Fayetteville, AR 72703 501 -521 -2233 (b) 501 -442-5950 (h) 501 -442-3521 (FAX) DAN COODY, MAYOR (term indefinite — appointed 1/03) 113 W. Mountain Fayetteville, AR 72701 501 -575-8330 (b) 501 -443-6758 (h) 501 -575-8257 (FAX) • GROUP: ADVERTISING & PROMOTION COMMISSION DATE: December 9, 2002 PRESENT: Bob Davis, Joe Fennel, Pat Gazzola, Ching Mong, Kevin Santos, Curtis Shipley and Marilyn Johnson. ABSENT: None The December meeting of the Advertising and Promotion Commission was called to order at the Fayetteville Town Center conference room at 2:00 p.m. by Chairman Joe Fennel. MINUTES Moved by Davis, second by Santos to approve the minutes of the November 18, 2002 meeting. Motion carried. FINANCIAL REPORT Marilyn reported that total collections for November $ 135,921 .72 a 12.30% increase. No one was present from the accounting firm to present financials. Commissioners asked that someone be present from Scarbrough to present fourth quarter financials at the January meeting. • City Attorney Kit Williams reported that City Prosecutor collected $ 1 ,729.04 in November and December. Total collections of back taxes over the last 12 months are $96, 196.23 (over $8,000 average per month). DIRECTOR'S REPORT Marilyn Johnson reviewed her activities for the month of November. Inquiries were don for the month and continue to be below last year inquiries. Highlights of the month include a presentation to Siloam Springs Chamber of Commerce regarding HMR tax, a tour of Fayetteville for Wal-Mart recruiters, and presentation to U of A Tourism class on festival organization and promotion. CONVENTION AND VISITORS BUREAU REPORT Allyson Twiggs reviewed CVB activities. Bids are out for ASAE in 2004, Arkansas Cattlemen's Association in 2003 and 2004, and the Narcotics Dog Association in 2004. She is working with Savor the Flavor in Downtown/Dickson in April 2003. Allyson presented an excellent article that appeared in Meetings South magazine based on a reporter interview with Allyson and Marilyn. TOWN CENTER REPORT Denise Bembenek reviewed the Town Center activities. November was a record sales month. Average per event income is $ 1885. 13. The Town Center will participate in the Bridal Expo in Springdale in January and they are awaiting a marketing piece from Sells/Clark. Rocky Jones is • out on FMLA leave until January 2, 2003. She and Marilyn attended a financial compliance meeting with the City as they prepare for the auditors. • AGENCY REPORT Review — Marilyn reviewed activities of Sells Clark during their first year of their contract. Shipley moved, second by Santos to exercise the option to renew the advertising contract with Sells/Clark for a second year. Motion carried. Brian Clark thanked the Commission for their vote of confidence. He said the A & P, Town Center and CVB were great to work with. The Agency had learned the impact of the Internet on travel. We are getting approximately 140 hits per day. Looking ahead, they will be refining the "Worth Remembering" concept. With approval of the marketing plan in December, the A & P will be able to get a jump on the process. Michael Clark said special events were critical for bringing people in to fill the gaps between football games. Attractions that the A & P fund are good for tourism. They presented the 2003 Media Plan with about 83% of the budget being in media placement. Moved by Shipley, second by Davis, to approve the $220,000 marketing plan as presented. Motion carried. OLD BUSINESS Alcohol Lease and Concession Contract A meeting was scheduled for January 6 at 2:00 p.m. for presentations by candidates and to • review proposals. Presenters will be given 15 minutes each. AARproval of 2003 budgets Marilyn reviewed items on Town Center, CVB and A & P budgets for 2003. Moved by Shipley, second by Davis to approve all budgets as presented including special project funding. Motion carried. Appointment of Commissioner to replace John Gilliam Shipley moved, second by Davis, to approve David McGeady, general manager of the Radisson to fill the unexpired term of John Gilliam. Motion carried. Last Meeting for Kevin Santos Commissioners expressed appreciation to Kevin Santos for serving on the A & P Commission. Announcements Holiday Hoops tournament will be held on Thursday, Friday and Saturday. There being no further business, the meeting was adjourned. Respectfully submitted, • o ,,, �MarilynMlyn Johnson Director, Convention and Visitor Development Fayetteville Advertising and Promotion Commission Fayetteville Town Center Fayetteville Convention and Visitors Bureau Financial Statements October 31 , 2002 • • A SCARBROUGH • MURTTSHAW, CERTIFIED PUBLIC ACCOUNTANTS, P.A. 2039 Green Acres Rd., Fayetteville, AR 72703-2619 • Telephone (479) 521.1771 - Fax (479) 442-0082 • Home Pages S-MCPAS.com Wesley D. Murtishaw, CPA Tommy L Lonon, CPA Fayetteville Advertising & Promotion Fayetteville Town Center Fayetteville, Arkansas We have compiled the accompanying balance sheet and income statements of the Fayetteville Advertising and Promotion Commission, the Fayetteville Town Center, and the Convention and Visitors Bureau as of October 31 , 2002, and for the ten months then ended in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. A compilation is limited to presenting in the form of financial statements information that is the representation of management. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or any other form of assurance on them. • Management has elected to omit substantially all of the disclosures and the statements of retained earnings and cash flows ordinarily included in financial statements. If the omitted disclosures and the statements of retained earnings and cash flows were included in the financial statements, they might influence the user's conclusions about the entity's assets, liabilities, equity, income, and expenses. Accordingly, these financial statements are not designed for those who are not informed about such matters. lcarbromji erl 9/6v go r, Scarbrough & Murtishaw, CPAs, P.A. Certified Public Accountants Fayetteville, Arkansas November 22, 2002 • Members, American Institute of CPAs Private Companies Practice Section Arkansas Society of CPAs Fayetteville Advertising and Promotion Commission Balance Sheet • As of October 31 , 2002 ASSETS Current Assets Cash in Bank of Fayetteville - Town Center $ 48,057.92 Cash in Mcllroy Bank - A & P General 111 ,000.99 Cash in Mcllroy Bank - A & P Payroll 3,482.85 Cash in Bank - Conv & Visitor Bureau 81623.04 Investments 11407,048.42 Investment Adjustment to Market 51682.44 Accrued Interest Receivable 10,049.45 Due from City 81038.69 Total Current Assets $ 1 ,601 p983.80 Property, Plant, & Equipment at Cost Furniture and Fixtures 152,637.55 • Building Additions 189,002.04 Equipment 168,229.69 Less: Accumulated Depreciation (55,846.06) Net Property and Equipment 454,023.22 Total Assets $ 21056,007.02 LIABILITIES AND CAPITAL Current Liabilities Payroll Taxes Payable $ 110.51 Due to Other Funds 77,231 .78 Total Current Liabilities $ 77,342.29 Capital Unrestricted Fund Balance 119159016.44 Current Year Earnings 63,648.29 Total Capital 11978,664.73 Total Liabilities and Capital $ 21056,007.02 • See Accountants' Compilation Report. Fayetteville Advertising and Promotion Commission Income Statement • Actual vs. Budget 1 Month Ended 1 Month Ended 10 Months Ended 10 Months Ended October 31 , 2002 October 31 , 2002 October 31 , 2002 October 31 , 2002 Actual Budget Actual Budget Revenue HMR Tax Revenue $ 123,518.08 $ 115,765.00 $ 11402,183.81 $ 11069,827.00 Bus Tours - 11128.50 Other Income - 702.23 Total Revenue 123,518.08 115,765.00 11404,014.54 11069,827.00 Materials and Supplies Materials and Supplies - - 11744.44 Office Supplies/Printing - 905.66 Office Expense 253.53 809.42 Total Materials and Supplies 253.53 31459.52 •General Expenses General Exp.(See Schedule) 65,236.23 67,218.00 590,695.98 544,480.00 Capital Outlay Minor Equipment 11117.95 - Other Income (Expense) Interest Income - Investments 3,407.48 44,700.33 Bonds - CEC (44,905.76) Bond Payments - Arts Center (71084.00) (70,840.00) Bond Payments - Town Center (30,952.71 ) (309953.00) (310,527. 10) (309,530.00) Bond Payments - CEC (317999.97) (21500.00) (317,238. 11 ) (25,000.00) Transfers to Other Funds (509000.00) (50,000.00) Total Other Income (Exp.) (59,545.20) (40,537.00) (6779970.64) (505,370.00) Net Income (Loss) $ (11516.88) $ 81010.00 $ 1309770.45 $ 19,977.00 • See Accountants' Compilation Report. Fayetteville Advertising and Promotion Commission Schedule of General Expenses • Actual vs. Budget 1 Month Ended 1 Month Ended 10 Months Ended 10 Months Ended October 31 , 2002 October 31 , 2002 October 31 , 2002 October 31 , 2002 Actual Budget Actual Budget General Expenses Salaries & Wages $ 4,420.42 $ 6,375.00 $ 44,300.44 $ 63,750.00 Car Allowance 300.00 333.00 31000.00 3,330.00 Bus Tours 714.60 Payroll Tax Expense 336.80 3,684.60 Publications & Dues 100.00 790.00 600.00 Postage 11406.37 11250.00 80581 .17 12,500.00 Insurance 746.72 753.00 9,060.01 3,765.00 Professional Services 11000.00 11000.00 9,638.33 10,000.00 Legal Services 80.00 - Collection Expense 2,625.53 21316.00 24,655.45 19,375.00 Convention Development 833.00 8,780.25 71497.00 Miscellaneous Expense - 180.00 Repairs and Maintenance 2,493.58 401 (k) Company Match 132.62 - 12640.25 New Brochures 15,298.09 12,500.00 73,935.04 50,000.00 Chamber of Commerce - (862.40) - Travel and Training 19081 .94 2,500.00 • Tourism Development 11109.13 833.00 Depreciation Expense 21489.22 24,892.22 Air Museum 13,000.00 - 27,500.00 20,750.00 Bikes, Blues, BBQ - 13,500.00 10,000.00 Botanical Garden Society 9,464.49 16,771 .40 109000.00 Town Center Garden Maint. - 1 ,458.00 113666.66 14,580.00 Committee for Mardi Gras 767.08 11000.00 NCAA Indoor Track & Field/SEC 5,000.00 51000.00 Walton Arts Center 300.00 600.00 11200.00 North Arkansas Symphony - 31000.00 3,000.00 Conference Expenses - B. Ackerm 767.39 1 ,200.00 Northwest Arkansas B.E.S.T. 750.00 H. S. Coaches Clinic 15,000.00 10,000.00 Sturday of Champions 31000.00 2,800.00 State Soccer Championship - 1 ,000.00 Holiday Hoops 8,000.00 8,000.00 Joe Martin Stage Race - 19000.00 1 ,000.00 University of Arkansas Museum - 20,000.00 20,000.00 MidAmerica Youth Basketball Tour - 1 ,000.00 1 ,000.00 All Star Games - - 5,000.00 Ozark Blues Society 1 ,000.00 1 ,000.00 Brumley Gospel Sing - 15,000.00 25,150.00 309000.00 Downtown Dickson Enhancement 10,288.97 - 17,696.13 - • Lights of The Ozarks 3,727 00 5,000.00 3,727.00 5,000.00 Advertising and Marketing 20,000.00 189,747. 16 215,200.00 Airport Information Booth - 6,065.70 3,600.00 Interspace Airport Advertising - 1 ,232.85 - Total General Expenses $ 65,236.23 $ 671218.00 $ 590,695.98 $ 544,480.00 See Accountants' Compilation Report. Fayetteville Town Center Income Statement • Actual vs. Budget 1 Month Ended 1 Month Ended 10 Months Ended 10 Months Ended October 31 , 2002 October 31 , 2002 October 31 , 2002 October 31 , 2002 Actual Budget Actual Budget Sales Rental Income $ 25,455.81 $ $ 200,748.03 $ 64,261 .18 Parking Revenue 1 ,506.00 6,000.00 Service Charge 12,852.00 Daily Parking 11501 .00 Parking Leases 22,053.72 Pay Phone Rebates 9. 16 Other Income 20.70 111 .63 Refunds - (245.00) Sales Tax Expense (33.00) (307.00) - Total Sales 25,443.51 225,377.54 83, 113. 18 • Materials and Supplies Materials and Supplies 21400.00 2,634.05 24,000.00 General Expenses Expenses (See Schedule) 35, 100.02 37,662.00 298, 184.30 358,544.00 Capital Outlay Minor Equipment 2,689.93 Other Income (Expense) Interest Income - Checking 57. 11 733.36 Net Income (Loss) $ (91599.40) $ (40,062.00) $ (77,397.38) $ (465,657. 18) • See Accountants' Compilation Report. • Fayetteville Town Center Schedule of General Expenses • Actual vs. Budget 1 Month Ended 1 Month Ended 10 Months Ended 10 Months Ended October 31 , 2002 October 31 , 2002 October 31 , 2002 October 31 , 2002 Actual Budget Actual Budget General Expenses Salaries & Wages $ 14,851 . 18 $ 16,916.00 $ 124,060.23 $ 152,244.00 Commissions 2,234.80 15,353.13 - Payroll Tax Expense 1 , 193.47 - 12,509.87 Credit Card Discounts 83.34 - 456.81 - Public Notification 52.63 - 99.68 50.00 Office Expense 253.60 - 692.86 Publications & Dues - 125.00 Postage - 50.00 Mileage - - 541 ,87 Water 414.18 250.00 21969.15 21250.00 Gardens Water 40.00 492.97 310.00 Gas 89.32 50.00 51222.66 31800.00 Electricity 3,239.81 41000.00 43,026.24 39,500.00 Cable 5.00 - 360.08 • Telephone 771 .35 600.00 61821 .67 61075.00 Long Distance Telephone - 75.00 325. 19 750.00 Insurance 71360.77 23,713.61 Taxes and Licenses 35.00 - 11535.00 Contract Services 71815.00 75.00 78,150.00 Linens 952.09 11500.00 61624.29 15,000.00 Skirting 500.00 - 5,000.00 Plants 205.00 21152.50 205.00 Other - - 559.34 Repairs and Maintenance 511 .78 41166.00 7,928.70 37,660.00 401 (k) Company Match 357.48 - 3,092.66 Special Projects - 14,031 .37 Advertising and Marketing 11750.00 4,797.94 17,500.00 Travel and Training - - 54.00 Depreciation Expense 21489.22 20,562.48 Total General Expenses $ 352100.02 $ 37,662.00 $ 298, 184.30 $ 358,544.00 • See Accountants' Compilation Report. Fayetteville Convention and Visitors Bureau Income Statement • Actual vs. Budget 1 Month Ended 1 Month Ended 10 Months Ended 10 Months Ended October 31, 2002 October 31 , 2002 October 31 , 2002 October 31 , 2002 Actual Budget Actual Budget Revenue $ - $ - $ $ - Materials and Supplies Materials and Supplies 16.63 200.00 955.65 11600.00 Office Expense 405.21 159.00 2,630.49 633.00 Total Materials and Supplies 421 .84 359.00 31586.14 21233.00 General Expenses General Expenses (See Schedule) 51480.09 91461 .00 27,958.00 36,593.00 • Capital Outlay Fixed Assets 8,100.00 8,300.22 12,150.00 Other Income (Expense) Transfers from Other Funds 50,000.00 50,000.00 Interest Income - Checking 16.14 119.58 - Total Other Income (Expense) 16.14 50,119.58 50,000.00 Net Income (Loss) $ (5,885.79) $ (17,920.00) $ 10,275.22 $ (976.00) • See Accountants' Compilation Report. • Fayetteville Convention and Visitors Bureau • Schedule of General Expenses • Actual vs. Budget 1 Month Ended 1 Month Ended 10 Months Ended 10 Months Ended October 31 , 2002 October 31 , 2002 October 31 , 2002 October 31 , 2002 Actual Budget Actual Budget General Expenses Salaries & Wages $ 21916.66 $ 61883.00 $ 17,340.04 $ 27,532.00 Payroll Tax Expense 443.28 11813.37 - Publications & Dues - 83.00 525.00 332.00 Postage 250.00 34.48 11000.00 Mileage 118.23 - 369.33 Telephone 296.62 579.00 11262.45 2,316.00 Rent 500.00 500.00 19750.00 2,000.00 Insurance 11077.30 2,530.89 - Convention Development 416.00 11896.59 11664.00 • 401 (k) Company Match 75.00 364.85 Advertising and Marketing 500.00 749.00 Travel and Training 53.00 250.00 71 .00 1 ,000.00 Total General Expenses $ 51480.09 $ 9,461 .00 $ 27,958.00 $ 36,593.00 • See Accountants' Compilation Report. Fayetteville Advertising and Promotion Commission Fayetteville Town Center Fayetteville Convention and Visitors Bureau Financial Statements November 30, 2002 • • SCARBROUGH • MURTISHAW, CERTIFIED PUBLIC ACCOUNTANTS, PA 2039 Green Acres Rd., Fayetteville, AR 72703-2619 - Telephone (479) 521-1771 - Fax (479) 442-0082 - Home Page: S-MCPAS.com Wesley D. Murtishaw, CPA Tommy L. Lonon, CPA Fayetteville Advertising & Promotion Fayetteville Town Center Fayetteville, Arkansas We have compiled the accompanying balance sheet and income statements of the Fayetteville Advertising and Promotion Commission, the Fayetteville Town Center, and the Convention and Visitors Bureau as of November 30, 2002, and for the eleven months then ended in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. A compilation is limited to presenting in the form of financial statements information that is the representation of management. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or any other form of assurance on them. • Management has elected to omit substantially all of the disclosures and the statements of retained earnings and cash flows ordinarily included in financial statements. If the omitted disclosures and the statements of retained earnings and cash flows were included in the financial statements, they might influence the user's conclusions about the entity's assets, liabilities, equity, income, and expenses. Accordingly, these financial statements are not designed for those who are not informed about such matters. Sca*ggh gluitfsbw Scarbrough & Murtishaw, CPAs, P.A. Certified Public Accountants Fayetteville, Arkansas December 16, 2002 • Members American Institute of CPAs Private Companies Practice Section Arkansas Society of CPAs Fayetteville Advertising and Promotion Commission • Balance Sheet As of November 30, 2002 ASSETS Current Assets Cash in Bank of Fayetteville - Town Center $ 49,381 .33 Cash in Mcllroy Bank - A & P General 359,302.98 Cash in Mcllroy Bank - A & P Payroll 10,981 . 14 Cash in Bank - Conv & Visitor Bureau 11877.77 Investments 11407,048.42 Investment Adjustment to Market 51682.44 Accrued Interest Receivable 10,049.45 Due from City 92, 159.60 Total Current Assets $ 11936,483. 13 Property, Plant, & Equipment at Cost Furniture and Fixtures 152,637.55 Building Additions 189,002.04 • Equipment 168,229.69 Less: Accumulated Depreciation (60,824.50) Net Property and Equipment 4499044.78 Total Assets $ 21385,527.91 LIABILITIES AND CAPITAL Current Liabilities Payroll Taxes Payable $ 71808.47 Due to Other Funds 77,231 ,78 Total Current Liabilities $ 85,040.25 Capital Unrestricted Fund Balance 11915,016.44 Current Year Earnings 3859471 .22 Total Capital 21300,487.66 • Total Liabilities and Capital $ 2,385,527.91 See Accountants' Compilation Report. Fayetteville Advertising and Promotion Commission Income Statement . Actual vs. Budget 1 Month Ended 1 Month Ended 11 Months Ended 11 Months Ended November 30, 2002 November 30, 2002 November 30, 2002 November 30, 2002 Actual Budget Actual Budget Revenue HMR Tax Revenue $ 210,923.19 $ $ 1 ,613,107.00 $ 11069,827.00 Bus Tours - 1 ,128.50 Other Income 702.23 Total Revenue 210,923.19 1 ,614,937.73 11069,827.00 Materials and Supplies Materials and Supplies 1 ,842.29 3,586.73 Office Supplies/Printing 259.57 11165.23 Office Expense - 809.42 • Total Materials and Supplies 2, 101 .86 - 5,561 .38 General Expenses General Expenses (See Schedule) 26,058.14 33,655.00 6169754.12 5789135.00 Capital Outlay Minor Equipment - 1 ,117.95 Other Income (Expense) Interest Income - Investments 3,263.33 479963.66 Bonds - CEC (44,905.76) Bond Payments - Arts Center (71084.00) (77,924.00) Bond Payments - Town Center (28,202.74) (30,953.00) (338,729.84) (340,483.00) Bond Payments - CEC 172,092.20 (2,500.00) (145, 145.91 ) (27,500.00) Transfers to Other Funds (50,000.00) (50,000.00) Total Other Income (Expense) 147,152.79 (40,537.00) (530,817.85) (495,907.00) Net Income (Loss) $ 329,915.98 $ (74,192.00) $ 460,686.43 $ (4,215.00) • See Accountants' Compilation Report. Fayetteville Advertising and Promotion Commission Schedule of General Expenses Actual vs. Budget 1 Month Ended 1 Month Ended 11 Months Ended 11 Months Ended November 30, 2002 November 30, 2002 November 30, 2002 November 30, 2002 Actual Budget Actual Budget General Expenses Salaries & Wages $ 41420.42 $ 61375.00 $ 48,720.86 $ 701125.00 Car Allowance 300.00 333.00 3,300.00 31663.00 Bus Tours - - 714.60 Payroll Tax Expense 336.80 49021 .40 Publications & Dues 100.00 - 890.00 600.00 Postage 1 ,287.59 1 ,250.00 9,868.76 13,750.00 Company 401 (k) Match 60.00 - 60.00 Insurance 81866.32 - 17,926.33 3,765.00 Professional Services 12000.00 12000.00 109638.33 11 ,000.00 Legal Services - 80.00 Collection Expense 2,536.05 2,406.00 27,191 .50 21 ,781 .00 Convention Development 833.00 8,780.25 8,330.00 Miscellaneous Expense - 180.00 - Repairs and Maintenance - 2,493.58 401 (k) Company Match 132.62 - 11772,87 - New Brochures - - 73,935.04 50,000.00 Chamber of Commerce - (862.40) - Travel and Training - 1 ,081 .94 2,500.00 . Tourism Development - 11109. 13 833.00 Depreciation Expense 21489.22 - 27,381 .44 - Air Museum - 27,500.00 20,750.00 Bikes, Blues, BBC 13,500.00 103000.00 Botanical Garden Society 16,771 .40 10,000.00 Town Center Garden Maintenance 11458.00 11 ,666.66 16,038.00 Committee for Mardi Gras 767.08 11000.00 NCAA Indoor Track & Field/SEC 5,000.00 53000.00 Walton Arts Center 600.00 1 ,200.00 North Arkansas Symphony 3,000.00 3,000.00 Conference Expenses - B. Ackerman 767.39 11200.00 Northwest ArkansasB.E.S.T. 750.00 - H. S. Coaches Clinic 15,000.00 101000.00 Sturday of Champions 3,000.00 20800.00 State Soccer Championship 17000.00 Holiday Hoops 8,000.00 8,000.00 Joe Martin Stage Race 11000.00 1 ,000.00 University of Arkansas Museum 20,000.00 201000.00 MidAmerica Youth Basketball Tourn. 13000.00 11000.00 All Star Games - 51000.00 Ozark Blues Society 11000.00 11000.00 Brumley Gospel Sing - 259150.00 30,000.00 Downtown Dickson Enhancement Pr 41529.12 22,225.25 • Lights of The Ozarks - - 3,727.00 51000.00 Advertising and Marketing 20,000.00 189,747.16 235,200.00 Airport Information Booth - - 6,065.70 31600.00 Interspace Airport Advertising - - 1 ,232.85 - Total General Expenses $ 26,058.14 $ 33,655.00 $ 616,754.12 $ 578,135.00 See Accountants' Compilation Report. Fayetteville Town Center • Income Statement Actual vs. Budget 1 Month Ended 1 Month Ended 11 Months Ended 11 Months Ended November 30, 2002 November 30, 2002 November 30, 2002 November 30, 2002 Actual Budget Actual Budget Sales Rental Income $ 19,602.68 $ - $ 220,350.71 $ 64,261 .18 Parking Revenue 11162.00 21668.00 61000.00 Service Charge 12,852.00 Daily Parking 1 ,501 .00 Parking Leases 7,567.50 - 29,621 .22 - Pay Phone Rebates - 9.16 Other Income 11 .95 123.58 Refunds (245.00) Sales Tax Expense (1 .00) (308.00) Total Sales 28,343.13 - 253,720.67 83,113. 18 Materials and Supplies Materials and Supplies 1 ,370.48 21400.00 4,004.53 26,400.00 General Expenses Expenses (See Schedule) 30,826.44 37,282.00 3290010.74 395,826.00 Capital Outlay Minor Equipment - 2,689.93 Other Income (Expense) Interest Income - Checking 51 .31 784.67 Net Income (Loss) $ (3,802.48) $ (39,682.00) $ (819199.86) $ (339,112.82) See Accountants' Compilation Report. Fayetteville Town Center • Schedule of General Expenses Actual vs. Budget 1 Month Ended 1 Month Ended 11 Months Ended 11 Months Ended November 30, 2002 November 30, 2002 November 30, 2002 November 30, 2002 Actual Budget Actual Budget General Expenses Salaries & Wages $ 15,121 .18 $ 16,916.00 $ 139,181 .41 $ 169,160.00 Commissions 2,455.00 17,808.13 Payroll Tax Expense 11188.87 - 13,698.74 - Credit Card Discounts 2.96 459.77 Public Notification 4.27 103.95 50.00 Office Expense - 692.86 - Publications & Dues - 125.00 - Postage - - 50.00 Mileage - 541 .87 Water 200.00 2,969.15 2,450.00 Gardens Water 10.00 492.97 320.00 Gas 310.64 250.00 5,533.30 41050.00 • Electricity 3,026.46 3,500 00 46,052.70 43,000 00 Cable 63.10 423.18 Telephone - 600.00 6,821 .67 6,675.00 Long Distance Telephone - 75.00 325.19 825.00 Insurance 98.40 23,812.01 - Taxes and Licenses - 1 ,535.00 Contract Services 7,815.00 75.00 85,965.00 Linens 1 ,500.00 6,624.29 16,500.00 Skirting 500.00 - 5,500.00 Plants 3,121 .66 5,274.16 205.00 Other - 559.34 - Repairs and Maintenance 11034.20 4,166.00 8,962.90 41 ,826.00 401 (k) Company Match 357.48 - 3,450.14 Special Projects - 14,031 .37 - Advertising and Marketing 1 ,553.00 11750.00 6,350.94 190250.00 Travel and Training 54.00 Depreciation Expense 2,489.22 23,051 .70 Total General Expenses $ 307826.44 $ 37,282.00 $ 329,010.74 $ 395,826.00 • See Accountants' Compilation Report. Fayetteville Convention and Visitors Bureau • Income Statement Actual vs. Budget 1 Month Ended 1 Month Ended 11 Months Ended 11 Months Ended November 30, 2002 November 30, 2002 November 30, 2002 November 30, 2002 Actual Budget Actual Budget Revenue $ - $ - $ $ Materials and Supplies Materials and Supplies 17.09 200.00 972.74 11800.00 Office Expense 21630.49 633.00 Total Materials and Supplies 17.09 200.00 3,603.23 21433.00 General Expenses General Expenses (See Sch.) 4,177.84 8,961 .00 32,135.84 45,554.00 Capital Outlay • Fixed Assets 8,300.22 12,150.00 Other Income (Expense) Transfers from Other Funds - 50,000.00 50,000.00 Interest Income - Checking 6.73 126.31 Total Other Income (Expense) 6.73 509126.31 50,000.00 Net Income (Loss) $ (4, 188.20) $ (9,161 .00) $ 6,087.02 $ (101137.00) • See Accountants' Compilation Report. Fayetteville Convention and Visitors Bureau • Schedule of General Expenses Actual vs. Budget 1 Month Ended 1 Month Ended 11 Months Ended 11 Months Ended November 30, 2002 November 30, 2002 November 30, 2002 November 30, 2002 Actual Budget Actual Budget General Expenses Salaries & Wages $ 2,916.66 $ 6,883.00 $ 20,256.70 $ 34,415.00 Payroll Tax Expense 413. 16 - 2,226.53 - Publications & Dues - 83.00 525.00 415.00 Postage 250.00 34.48 11250.00 Mileage 127.72 497.05 Telephone - 579.00 11262.45 2,895.00 Rent 500.00 1 ,750.00 2,500.00 Insurance 45.30 21576.19 - Convention Development 600.00 416.00 2,496.59 29080.00 401 (k) Company Match 75.00 - 439.85 - Advertising and Marketing - 749.00 Travel and Training 250.00 71 .00 1 ,250.00 Total General Expenses $ 4,177.84 $ 8,961 .00 $ 32,135.84 $ 45,554.00 See Accountants' Compilation Report. SCARBROUGH • MURTISHAW, CERTIFIED PUBLIC ACCOUNTANTS, P.A. 2039 Green Acres Rd., Fayetteville, AR 72703.2619 • Telephone (479) 521-1771 - Fa (479) 442-0082 • Home Page, S-MCPAS.com Wesley D. Murtishaw, CPA Tommy L. Lonon, CPA Fayetteville Advertising & Promotion Fayetteville Town Center Fayetteville, Arkansas We have compiled the accompanying balance sheet and income statements of the Fayetteville Advertising and Promotion Commission, the Fayetteville Town Center, and the Convention and Visitors Bureau as of December 31 , 2002, and for the twelve months then ended in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. A compilation is limited to presenting in the form of financial statements information that is the representation of management. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or any other form of assurance on them. • Management has elected to omit substantially all of the disclosures and the statements of retained earnings and cash flows ordinarily included in financial statements. If the omitted disclosures and the statements of retained earnings and cash flows were included in the financial statements, they might influence the user's conclusions about the entity's assets, liabilities, equity, income, and expenses. Accordingly, these financial statements are not designed for those who are not informed about such matters. Scarbrough & Murtishaw, CPAs, P.A. Certified Public Accountants Fayetteville, Arkansas January 8, 2003 Memberst American Institute of CPAs Private Companies Practice Section Arkansas Society of CPAs Fayetteville Advertising and Promotion Commission Balance Sheet • As of December 31 , 2002 ASSETS Current Assets Cash in Bank of Fayetteville - Town Center $ 383597.69 Cash in Mcllroy Bank - A & P General 368,022.31 Cash in Mcllroy Bank - A & P Payroll 10,526.29 Cash in Bank - Conv & Visitor Bureau 2,012.78 Investments 11407,048.42 Investment Adjustment to Market 5,682.44 Accrued Interest Receivable 10,049.45 Due from City 929159.60 Total Current Assets $ 11934,098.98 Property, Plant, & Equipment at Cost Furniture and Fixtures 152,637.55 Building Additions 1893002.04 Equipment 168,229.69 • Less: Accumulated Depreciation (65,802.94) Net Property and Equipment 444,066.34 Total Assets $ 29378, 165.32 LIABILITIES AND CAPITAL Current Liabilities Payroll Taxes Payable $ 7,091 .50 Due to Other Funds 77,231 .78 Total Current Liabilities $ 84,323.28 Capital Unrestricted Fund Balance 11915,016.44 Current Year Earnings 3783825.60 Total Capital 2,293,842.04 Total Liabilities and Capital $ 2,378, 165.32 • See Accountants' Compilation Report. Fayetteville Advertising and Promotion Commission Income Statement • Actual vs. Budget 1 Month Ended 1 Month Ended 12 Months Ended 12 Months Ended December 31 , 2002 December 31 , 2002 December 31 , 2002 December 31 , 2002 Actual Budget Actual Budget Revenue HMR Tax Revenue $ 1350777.06 $ - $ 1 ,748,884.06 $ 11069,827.00 Bus Tours 1 ,128.50 - Other Income - 702.23 Total Revenue 135,777.06 19750,714.79 1 ,069,827.00 Materials and Supplies Materials and Supplies 31586.73 Office Supplies/Printing 19165.23 Office Expense 809.42 Total Materials and Supplies 51561 .38 •General Expenses General Expenses (See Schedule) 68,669.09 48,745.00 685,423.21 627,633.00 Capital Outlay Fixed Assets 5,226.45 5,226.45 Minor Equipment - - 1 ,117.95 - Total Capital Outlay 5,226.45 6,344.40 Other Income (Expense) Interest Income - Investments 3,144.66 51 ,108.32 Bonds - CEC (44,905.76) Bond Payments - Arts Center (7,084.00) (85,008.00) Bond Payments - Town Center (31 ,131 .88) (30,953.00) (369,861 .72) (371 ,436.00) Bond Payments - CEC (31 ,381 .67) (2,500.00) (176,527.58) (30,000.00) Transfers to Other Funds (10,000.00) (60,000.00) (50,000.00) Total Other Income (Expense) (69,368.89) (40,537.00) (600,186.74) (536,444.00) Net Income (Loss) $ (7,487.37) $ (89,282.00) $ 453,199.06 $ (94,250.00) • See Accountants' Compilation Report. Fayetteville Advertising and Promotion Commission Schedule of General Expenses • Actual vs. Budget 1 Month Ended 1 Month Ended 12 Months Ended 12 Months Ended December 31 , 2002 December 31 , 2002 December 31 , 2002 December 31 , 2002 Actual Budget Actual Budget General Expenses Salaries & Wages $ 7,452.33 $ 61375.00 $ 56,173.19 $ 76,500.00 Car Allowance 300.00 337.00 39600.00 41000.00 Bus Tours - - 714.60 - Payroll Tax Expense 568.71 4,590.11 - Publications & Dues 81 .28 - 971 .28 600.00 Postage 555.87 1 ,250.00 10,424.63 15,000.00 Company 401 (k) Match 210.00 - 270.00 - Insurance 1 ,480.80 753.00 19,407.13 51271 .00 Professional Services 1 ,000.00 11000.00 11 ,638.33 12,000.00 Legal Services - - 80.00 Collection Expense 2,715.54 11931 .00 29,907.04 23,712.00 Convention Development - 837.00 8,780.25 91167.00 Miscellaneous Expense - 180.00 - Repairs and Maintenance (34.48) 2,459.10 401 (k) Company Match 13,438.46 - 15,211 .33 - New Brochures - 12,500.00 73,935.04 62,500.00 Chamber of Commerce - - (862.40) Travel and Training - 1 ,081 .94 2,500.00 • Tourism Development - - 11109.13 833.00 Depreciation Expense 2,489.22 29,870.66 Air Museum - - 27,500.00 20,750.00 Bikes, Blues, BBQ - 13,500.00 10,000.00 Botanical Garden Society - - 16,771 .40 10,000.00 Town Center Garden Maint. 2,916.66 1 ,462.00 14,583.32 17,500.00 Committee for Mardi Gras - - 767.08 11000.00 NCAA Indoor Track & Field/SEC - - 59000.00 5,000.00 Walton Arts Center - 300.00 600.00 1 ,500.00 North Arkansas Symphony - - 31000.00 3,000.00 Conference Expenses-Ackerman - - 767.39 1 ,200.00 Northwest Arkansas B.E.S.T. - - 750.00 H. S. Coaches Clinic - - 15,000.00 109000.00 Sturday of Champions - 3,000.00 2,800.00 State Soccer Championship - - - 11000.00 Holiday Hoops 8,000.00 8,000.00 Joe Martin Stage Race 11000.00 1 ,000.00 University of Arkansas Museum - - 20,000.00 20,000.00 MidAm Youth Basketball Toum. - - 1 ,000.00 11000.00 All Star Games - - - 5,000.00 Ozark Blues Society - 11000.00 12000.00 Brumley Gospel Sing - - 25,150.00 30,000.00 Downtown Dickson Enhancemen 41461 .59 - 26,686.84 Lights of The Ozarks 1 ,149.63 - 41876.63 5,000.00 • First Night Fayetteville 12,500.00 12,000.00 12,500.00 12,000.00 Advertising and Marketing 17,383.48 10,000.00 207,130.64 245,200.00 Airport Information Booth - - 6,065.70 3,600.00 Interspace Airport Advertising - - 1 ,232.85 - Total General Expenses $ 68,669.09 $ 48,745.00 $ 685,423.21 $ 627,633.00 See Accountants' Compilation Report. Fayetteville Town Center Income Statement 10 Actual vs. Budget 1 Month Ended 1 Month Ended 12 Months Ended 12 Months Ended December 31 , 2002 December 31 , 2002 December 31 , 2002 December 31 , 2002 Actual Budget Actual Budget Sales Rental Income $ 21 ,119.11 $ - $ 241 ,469.82 $ 64,261 .18 Parking Revenue 909.00 39577.00 6,000.00 Service Charge - 12,852.00 Daily Parking 10501 .00 - Parking Leases 29,621 .22 Pay Phone Rebates 9.16 Other Income 123.58 Refunds (245.00) Sales Tax Expense (34.00) // (342.00) • Total Sales 21 ,994.11 275,714.78 83,113.18 Materials and Supplies Materials and Supplies 1 ,259.35 2,400.00 51263.88 28,800.00 General Expenses Expenses (See Schedule) 22,581 .98 44,682.00 351 ,592.72 440,508.00 Capital Outlay Minor Equipment - 2,689.93 Other Income (Expense) Interest Income - Checking 43.14 827.81 Net Income (Loss) $ (11804.08) $ (47,082.00) $ (83,003.94) $ (386,194.82) • See Accountants' Compilation Report. Fayetteville Town Center Schedule of General Expenses • Actual vs. Budget 1 Month Ended 1 Month Ended 12 Months Ended 12 Months Ended December 31 , 2002 December 31 , 2002 December 31 , 2002 December 31 , 2002 Actual Budget Actual Budget General Expenses Salaries & Wages $ $ 16,916.00 $ 139,181 .41 $ 186,076.00 Commissions 1 ,383.43 19,191 .56 - Payroll Tax Expense 904.35 14,603.09 Credit Card Discounts 25.00 484.77 - Public Notification 35.65 139.60 50.00 Office Expense 692.86 Publications & Dues 125.00 - Postage - 50.00 Mileage - - 541 .87 Water 818.68 250.00 3,787.83 2,700.00 • Gardens Water 10.00 492.97 330.00 Gas 21163.58 500.00 71696.88 41550.00 Electricity 31631 .83 41000.00 49,684.53 47,000.00 Cable 130.52 - 553.70 Telephone 11420.88 600.00 8,242.55 7,275.00 Long Distance Telephone 75.00 325.19 900.00 Insurance 7,158.52 6,600.00 30,970.53 60600.00 Taxes and Licenses - 19535.00 Contract Services 7,815.00 75.00 931780.00 Linens 733.07 1 ,500.00 7,357.36 18,000.00 Skirting 151 .73 500.00 151 .73 6,000.00 Plants (21814.16) - 2,460.00 205.00 Other 1 ,625.64 1 ,625.64 Other 559.34 Repairs and Maintenance 55.96 41166.00 91018.86 45,992.00 401 (k) Company Match 418.80 - 31868.94 - Special Projects 14,031 .37 Advertising and Marketing 2,249.28 1 ,750.00 8,600.22 219000.00 Travel and Training - 54.00 Depreciation Expense 2,489.22 - 25,540.92 Total General Expenses $ 22,581 .98 $ 44,682.00 $ 351 ,592.72 $ 440,508.00 • Fayetteville Convention and Visitors Bureau Income Statement • Actual vs. Budget 1 Month Ended 1 Month Ended 12 Months Ended 12 Months Ended December 31 , 2002 December 31 , 2002 December 31 , 2002 December 31 , 2002 Actual Budget Actual Budget Revenue $ $ - $ - $ - Materials and Supplies Materials and Supplies 210.87 200.00 1 ,183.61 2,000.00 Office Expense - - 2,732.86 633.00 Total Materials and Supplies 210.87 200.00 3,916.47 21633.00 General Expenses General Expenses (See Schedule) 71150.15 8,971 .00 39,285.99 540276.00 Capital Outlay Fixed Assets 8,300.22 12,150.00 • Other Income (Expense) Transfers from Other Funds 10,000.00 60,000.00 500000.00 Interest Income - Checking 6.85 133.16 - Total Other Income (Expense) 10,006.85 60, 133.16 50,000.00 Net Income (Loss) $ 21645.83 $ (9,171 .00) $ 80630.48 $ (19,059.00) • See Accountants' Compilation Report. Fayetteville Convention and Visitors Bureau Schedule of General Expenses • Actual vs. Budget 1 Month Ended 1 Month Ended 12 Months Ended 12 Months Ended December 31 , 2002 December 31 , 2002 December 31 , 2002 December 31 , 2002 Actual Budget Actual Budget General Expenses Salaries 8 Wages $ 20916.66 $ 60885.00 $ 23,173.36 $ 41 ,300.00 Payroll Tax Expense 413.16 - 21639.69 Publications & Dues 85.00 525.00 500.00 Postage 250.00 34.48 1 ,500.00 Mileage (45.30) 451 .75 Telephone 549.81 581 .00 1 ,812.26 31476.00 Rent 1 ,000.00 500.00 2,750.00 3,000.00 Insurance 2,162.82 - 4,739.01 - Convention Development 60.00 420.00 2,556.59 2,500.00 Repairs and Maintenance (125.00) - (125.00) - 401 (k) Company Match 200.00 639.85 • Advertising and Marketing - - 500.00 Travel and Training 18.00 250.00 89.00 11500.00 Total General Expenses $ 71150.15 $ 8,971 .00 $ 39,285.99 $ 54,276.00 • See Accountants' Compilation Report.