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Home My WebLink About2016-06-20 - Agendas - Final ADVERTISING AND PROMOTION COMMISSION June 20, 2016 1:OOpm Location: Fayetteville Town Center, Director's Room 15 West Mountain Street, Fayetteville, Arkansas Members: Matthew Petty, Chairman; Matt Behrend; Tim Freeman; Adella Gray; Ching Mong; Robert Rhoads; Hannah Withers Staff: Kym Hughes, Executive Director A. Call to Order at 1:OOpm B. Consent Agenda 1. Minutes of the May 2016 meeting & Special Meeting. 2. 2015 Audit Presentation — Eric Hoyt, Beall Barclay & Co. PLC. 3. Financial statements. —The distribution of monthly financial statements to the Commission is required by the Bylaws. C. Old Business 1. Walker Stone Report D. New Business 1. Executive Session to discuss the Interim Executive Director Search E. Reports and Presentations 1. Commission Forum — Report questions a. HMR Revenues b. Department Reports c. Sells Agency Advertising Review F. Agenda Additions An item may be added to the agenda with a consensus of the majority of the Commission. G. Announcements Brief announcements of upcoming events, recent awards, etc. Advertising and Promotion Commission March Meeting May 16, 2016 Commissioners Present: Ching Mong, Matt Behrend,Tim Freeman, Robert Rhoades, Hannah Withers, Matthew Petty and Adella Gray Staff Present: Kym Hughes, Sally Fisher and Sandra Bennett Call to Order Chairman Matthew Petty called the meeting of the Fayetteville Advertising and Promotion Commission to order on May 16, 2016 at 12:30 pm. Approval of Minutes Commissioner Matt Behrend moved to approve the April minutes, motion seconded by Commissioner Ching Mong. Motion carried with a vote of 6:0 (Commissioner Tim Freeman was not present for this vote). Old Business No old business. New Business 1. Spring funding request—21 applications were received; the commission may disburse up to $103,508.00. Commission discussed funding applicants. Commissioner Tim Freeman moved to approve funding disbursements, motion seconded by Commissioner Adella Gray. Motion carried with a vote of 7:0. 2. Walker-Stone House sale contract. A draft contract was presented to commissioners. The building was appraised at $975,000.00, but will be sold to the A& P Commission for$750,000.00 with a charitable receipt for the balance. Chairman Petty suggested before moving forward there be an inspection, feasibility study on moving offices, an outline for potential event revenue and appraisal of the Visitors Bureau building. Commissioner Gray moved to have Chairman Petty draft a Letter of intent pursuant to contract price and contingency of appraisal, inspection, charitable gift receipt, motion seconded by Commissioner Hanna Withers. Motion carried with a vote of 7:0. 3. Contract to develop a branding strategy with Blkbox for services related to branding strategy. Chairman Petty suggested waiting until the new interim Director is in place before moving forward. Commissioner Ching Mong moved to amend the contract with the new time line, motion seconded by Commissioner Freeman. Motion carried with a vote of 6:0 (Commissioner Robert Rhoades did not vote). 4. Commissioner Freeman moved to go into executive session to consider resignation of Executive Director, motion seconded by Commissioner Gray. Motion carried with a vote of 7:0. Commissioner Gray moved to accept the resignation of Kym Hughes, Executive Director, choose an interim Executive Director at the June meeting and conduct a national search for a new director. Motion seconded by Commissioner Rhoades. Motion carried with a vote of 7:0. Reports & Presentations None. Departmental Reports None. Agenda Additions None. Announcements None. Urgent Business No urgent business. Chairman Petty adjourned the meeting at 2:00 pm. Respectfully submitted, Sandra Bennett Operations Administrator Advertising and Promotion Commission Special Meeting May 31, 2016 Commissioners Present: Ching Mong, Matt Behrend,Tim Freeman, Robert Rhoades, Hannah Withers, Matthew Petty and Adella Gray Staff Present: Kym Hughes and Sandra Bennett Call to Order Chairman Matthew Petty called the special meeting of the Fayetteville Advertising and Promotion Commission to order on May 31, 2016 at 3:30 pm. Old Business Walker-Stone House sale contract. Chairman Matthew Petty informed Commission there is a draft contract he is working on. For the purchase of the Walker-Stone House, there can be a cash transfer of$750,000.00 and a charitable receipt of$250,000.00. The Visitor's Bureau building was appraised at $735,000.00. The building can be sold or leased for approximately $80,000.00. Chairman Petty's recommendation is to purchase the Walker-Stone House. The Commission discussed architectural changes and a feasibility report. Also discussed was keeping the store front of the Visitor's Bureau and leasing offices, leasing all the visitor's Bureau or subdividing the building for multiple leases. Commissioner Hannah Withers moved to empower Chairman Petty to execute the contract, direct staff to develop the in-house reports on event based revenue and migrating Convention and Visitors Bureau operations and solicit term sheets from local lenders. Motion was seconded by Commissioner Adella Gray. Motion passed with vote of 7:0. New Business None. Reports and Presentations None. Agenda Additions None. Announcements None. Chairman Petty adjourned the meeting at 3:50pm. Respectfully submitted, Sandra Bennett Operations Administrator FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION FINANCIAL STATEMENTS DECEMBER 31, 2015 AND 2014 FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION DECEMBER 31, 2015 AND 2014 CONTENTS Page INDEPENDENT AUDITORS' REPORT...........................................................................1 FINANCIAL STATEMENTS Statements of Assets, Liabilities, and Fund Balance — Modified Accrual Basis ..........................4 Statements of Revenues, Expenditures, and Changes in Fund Balance— ModifiedAccrual Basis ........................................................................................................5 Statements of Revenues and Expenditures — Modified Accrual Basis — Budgetto Actual ...................................................................................................................7 Notesto Financial Statements.....................................................................................................9 INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS..............................................................................19 0BEALL MF BARCLAY Bcall Barclay & Company, PLC INDEPENDENT AUDITORS' REPORT Board of Commissioners Fayetteville Advertising and Promotion Commission Fayetteville, Arkansas Report on the Financial Statements We have audited the accompanying financial statements of the Fayetteville Advertising and Promotion Commission (the "A&PC") as of and for the years ended December 31, 2015 and 2014, and the related notes to the financial statements, which collectively comprise A&PC's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting practices prescribed or permitted by the State of Arkansas (the "State") to demonstrate compliance with the State's regulatory basis of accounting and budget laws. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors'Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the A&PC's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the A&PC's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles As described in Note 1 of the financial statements, the financial statements are prepared by the A&PC on the basis of accounting practices prescribed or permitted by the State to demonstrate compliance with the State's regulatory basis of accounting and budget laws, which is a basis of accounting other than accounting principles generally accepted in the United States of America, to meet the requirements of the State. The effects on the financial statements of the variances between the regulatory basis of accounting described in Note 1 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material. Adverse Opinion on U.S. Generally Accepted Accounting Principles In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles paragraph, the financial statements referred to above do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the A&PC as of December 31, 2015 and 2014, or changes in financial position thereof for the years then ended. Opinion on Regulatory Basis of Accounting In our opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities, and fund balance of the A&PC as of December 31, 2015 and 2014, and its respective revenues, expenditures, and the changes in fund balance and budgetary results for the years then ended, in accordance with accounting practices prescribed or permitted by the State described in Note 1. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have issued a report dated May 9, 2016 on our consideration of A&PC's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the A&PC's internal control over financial reporting and compliance. i5call&-i-clay & coxymfA Pic BEALL BARCLAY & COMPANY, PLC Certified Public Accountants Rogers, Arkansas May 9, 2016 FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION STATEMENTS OF ASSETS, LIABILITIES, AND FUND BALANCE — MODIFIED ACCRUAL BASIS DECEMBER 31, 2015 AND 2014 2015 2014 ASSETS CURRENT ASSETS Cash $ 652,354 $ 398,428 Accounts receivable 19,140 8,366 Due from City of Fayetteville 11,690 11,963 Inventory 10,451 11,209 Investments 1,840,256 1,816,842 Prepaid expenses 21,972 20,257 Total Current Assets 2,555,863 2,267,065 PROPERTY Building 1,497,747 1,453,775 Construction in progress - 9,218 Furniture and fixtures 34,550 34,550 Land 198,621 198,621 Office equipment 262,117 199,387 1,993,035 1,895,551 Less accumulated depreciation 584,990 506,470 1,408,045 1,389,081 Total Assets $ 3,963,908 $ 3,656,146 LIABILITIES AND FUND BALANCE CURRENT LIABILITIES Accounts payable $ 35,327 $ 9,409 Unearned revenue 86,532 87,979 Payroll taxes and benefits withheld and payable 6,746 10,652 Due to City of Fayetteville 5,226 4,731 Total Current Liabilities 133,831 112,771 FUND BALANCE 3,830,077 3,543,375 Total Liabilities and Fund Balance $ 3,963,908 $ 3,656,146 See Independent Auditors' Report and Notes to Financial Statements. -4- FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - MODIFIED ACCRUAL BASIS YEARS ENDED DECEMBER 31, 2015 AND 2014 2015 2014 REVENUES Hotels, motels and restaurant tax $ 3,052,221 $ 2,757,761 Rent income 448,688 455,794 Visitors center store 36,695 45,323 Visitor guide advertising income - 20,781 Parking income 32,831 32,442 Investment income 7,763 13,027 Interest income 2,999 2,431 Miscellaneous event income 189,842 133,484 3,771,039 3,461,043 EXPENDITURES Advertising 791,828 613,179 Automobile expense 4,050 3,600 Bank charges 9,990 8,866 Bond payments 742,528 620,517 Collection expense 61,044 55,155 Contract labor 64,284 64,560 Convention development 61,284 51,541 Depreciation 78,520 63,165 Dues and subscriptions 16,178 13,644 Employee benefits 14,678 13,418 Insurance 114,894 105,242 Repairs and maintenance 187,500 166,809 Miscellaneous 31,092 12,457 Office supplies/printing 20,461 17,052 Payroll taxes 48,465 44,935 Postage 21,834 27,650 Professional services 14,810 10,727 Rent 12,000 12,000 Salaries and wages 604,505 553,815 Security 1,703 3,443 Special projects 333,002 940,821 Supplies 25,866 27,179 Taxes and licenses 22,868 17,772 Training and meetings 63,397 57,404 Utilities 115,236 112,136 Visitor store expense 22,320 21,550 3,484,337 3,638,637 - 5- 2015 2014 EXCESS (DEFICIT) OF REVENUES OVER EXPENDITURES 286,702 (177,594) FUND BALANCE, BEGINNING OF YEAR 3,543,375 3,720,969 FUND BALANCE, END OF YEAR $ 3,830,077 $ 3,543,375 See Independent Auditors' Report and Notes to Financial Statements. - 6 - FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION STATEMENTS OF REVENUES AND EXPENDITURES, AND CHANGES IN FUND BALANCE - MODIFIED ACCRUAL BASIS - BUDGET TO ACTUAL YEAR ENDED DECEMBER 31, 2015 Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Hotels,motels and restaurant tax $ 2,775,419 $ 2,775,419 $ 3,052,221 $ 276,802 Rent income 525,638 525,638 448,688 (76,950) Visitors center store 32,000 32,000 36,695 4,695 Visitors guide advertising income 30,000 30,000 - (30,000) Parking income 12,831 12,831 32,831 20,000 Investment income 11,850 11,850 7,763 (4,087) Interest income 3,044 3,044 2,999 (45) Miscellaneous event income 69,267 69,267 189,842 120,575 3,460,049 3,460,049 3,771,039 310,990 EXPENDITURES Advertising 700,200 700,200 791,828 (91,628) Automobile expense 3,750 3,750 4,050 (300) Bank charges 9,154 9,154 9,990 (836) Bond payments 748,556 748,556 742,528 6,028 Collection expense 53,430 53,430 61,044 (7,614) Contract labor 48,800 48,800 64,284 (15,484) Convention development 58,900 58,900 61,284 (2,384) Depreciation - - 78,520 (78,520) Dues and subscriptions 19,395 19,395 16,178 3,217 Employee benefits 21,523 21,523 14,678 6,845 Insurance 135,717 135,717 114,894 20,823 Repairs and maintenance 288,350 288,350 187,500 100,850 Miscellaneous 10,000 10,000 31,092 (21,092) Office supplies/expense 54,950 54,950 20,461 34,489 Payroll taxes 57,669 57,669 48,465 9,204 Postage 23,260 23,260 21,834 1,426 Professional services 15,000 15,000 14,810 190 Rent 12,000 12,000 12,000 - Salaries and wages 659,610 659,610 604,505 55,105 Security 2,700 2,700 1,703 997 Special projects 304,148 304,148 333,002 (28,854) Supplies 22,374 22,374 25,866 (3,492) Taxes and licenses 7,385 7,385 22,868 (15,483) Training and meetings 65,901 65,901 63,397 2,504 Utilities 119,277 119,277 115,236 4,041 Visitor store expense 18,000 18,000 22,320 (4,320) 3,460,049 3,460,049 3,484,337 (24,288) (DEFICIT)OF REVENUES OVER EXPENDITURES $ - $ - $ 286,702 $ 286,702 See Independent Auditors' Report and Notes to Financial Statements. - 7 - FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION STATEMENTS OF REVENUES AND EXPENDITURES, AND CHANGES IN FUND BALANCE - MODIFIED ACCRUAL BASIS - BUDGET TO ACTUAL YEAR ENDED DECEMBER 31, 2014 Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Hotels,motels and restaurant tax $2,611,138 $ 2,611,138 $2,757,761 $ 146,623 Rent income 440,975 440,975 455,794 14,819 Visitors center store 43,400 43,400 45,323 1,923 Visitors guide advertising income 40,000 40,000 20,781 (19,219) Parking income 18,292 18,292 32,442 14,150 Special event income 32,532 32,532 - (32,532) Investment income 11,850 12,000 13,027 1,027 Interest income 3,600 3,450 2,431 (1,019) Miscellaneous income 21,180 21,180 133,484 112,304 3,222,967 3,222,967 3,461,043 238,076 EXPENDITURES Advertising 600,340 600,340 613,179 (12,839) Automobile expense 3,600 3,600 3,600 - Bank charges 9,500 9,500 8,866 634 Bond payments 675,636 675,636 620,517 55,119 Collection expense 49,648 49,648 55,155 (5,507) Contract labor 48,800 48,800 64,560 (15,760) Convention development 72,954 72,954 51,541 21,413 Depreciation 20,000 20,000 63,165 (43,165) Dues and subscriptions 15,815 15,815 13,644 2,171 Employee benefits 17,269 17,269 13,418 3,851 Insurance 108,936 108,936 105,242 3,694 Repairs and maintenance 281,500 281,500 166,809 114,691 Miscellaneous - - 12,457 (12,457) Office supplies/expense 69,245 69,245 17,052 52,193 Payroll taxes 49,075 49,075 44,935 4,140 Postage 19,080 19,080 27,650 (8,570) Professional services 22,000 22,000 10,727 11,273 Rent 12,000 12,000 12,000 - Salaries and wages 559,957 559,957 553,815 6,142 Security 4,475 4,475 3,443 1,032 Special projects 336,750 336,750 940,821 (604,071) Supplies 40,426 40,426 27,179 13,247 Taxes and licenses 6,600 6,600 17,772 (11,172) Training and meetings 67,148 67,148 57,404 9,744 Utilities 114,213 114,213 112,136 2,077 Visitor store expense 18,000 18,000 21,550 (3,550) 3,222,967 3,222,967 3,638,637 (415,670) EXCESS (DEFICIT)OF REVENUES OVER EXPENDITURES $ - $ - $ (177,594) $ (177,594) See Independent Auditors' Report and Notes to Financial Statements. - 8 - FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2015 AND 2014 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES As discussed further below, these financial statements are presented in accordance with the regulatory basis of presentation as prescribed by Arkansas state law. The Fayetteville Advertising and Promotion Commission (the "A&PC") maintains it records on a modified accrual basis of accounting, as discussed below. The regulatory basis of presentation and the modified accrual basis of accounting differ from accounting principles generally accepted in the United States of America. The significant accounting policies of the A&PC are as follows: Regulatory Accounting The Arkansas Legislature enacted a law in 2005 that requires municipalities to present their financial statements in a prescribed format and also restricts the basis of accounting for this format to one of three methods. The entity's governing body, however, can adopt a resolution annually to adopt GASB Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments (GASB No. 34) as their reporting model in lieu of reporting on this regulatory basis established by Arkansas Code 10-4-412. The Board of Commissioners did not adopt such a resolution for 2015 or 2014. The regulatory presentation is on a fund basis with no distinction being made as to the type of funds (Proprietary, Governmental, etc.) being presented. The required financial statements consist of a balance sheet (or statement of assets, liabilities, and fund balance), statement of revenues, expenditures, and changes in fund balance, and statement of revenues and expenditures - budget to actual. The basis of accounting is limited to cash basis, modified cash basis or modified accrual basis. The A&PC has elected to utilize the modified accrual basis of accounting. Reporting Entity The A&PC is a component unit of the City of Fayetteville, Arkansas (the "City"), established by Ordinance Number 2310 of the City for the purpose of promoting and advertising the City and its environs. The A&PC is presented in the City of Fayetteville's Comprehensive Annual Financial Report as a discretely presented component unit. A commission consisting of seven members governs the A&PC. Four members are owners or managers of hotels, motels or restaurants, and serve for staggered terms of four years. Two members must be members of the governing body of the City, are selected by the council and serve at the will of the council. One member is from the public at large and is nominated by the Commission and approved by the council. All members must reside in the City. Members are voted on by the existing Commissioners and approved by the City Council. The financial statements present only the A&PC, and are not intended to present the financial position and results of operations of the City of Fayetteville, Arkansas, in conformity with accounting principles generally accepted in the United States of America. Operations of the A&PC include the Fayetteville Convention and Visitors Bureau, the Fayetteville Town Center and the Clinton House Museum. - 9 - FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2015 AND 2014 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED Use of Estimates Management used estimates and assumptions in preparing these financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. Basis of Accounting The financial statements are prepared on the modified accrual basis of accounting. As such, revenues are recognized when the underlying exchange takes place and in the accounting period in which the revenue is both measurable and available to finance expenditures of the fiscal period. The A&PC considers all tax revenues measurable and available when collected and exchange revenue when the transaction occurs. Expenditures are recorded when the related liability is incurred. Budgets The A&PC adheres to the following procedures in establishing the budgets reflected in the accompanying financial statements: Prior to December 1, the budget committee proposes an operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. Prior to January 1, the A&PC legally enacts the budget through approval of the commissioners. Budgets are adopted on a basis consistent with accounting practices prescribed or permitted by the State of Arkansas, which practices differ from accounting principles generally accepted in the United States of America. Budgeted revenues and expenditures represent the formal operating budget adopted by the A&PC. Budgetary control is maintained at the operations level. Budgeted amounts not spent by year end lapse. Income Taxes The A&PC is a tax-exempt organization under Section 115 of the Internal Revenue Code. Property Property is carried at historical cost or fair market value at date of donation if the asset was contributed. The A&PC's capitalization policy states that assets with an initial value or cost greater than or equal to $5,000 and an estimated useful life of greater than one year will be capitalized. Depreciation is provided on the straight-line method over the estimated useful lives of the respective assets, which range from 5 to 39 years. - 10 - FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2015 AND 2014 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED Advertising The A&PC expenses advertising, marketing, and promotion costs as incurred. Subsequent Events Subsequent events are evaluated through the date the financial statements were available to be issued, which is the date of the Independent Auditors' Report. Funding The A&PC is funded by a 1% hotel, motel and restaurant tax on all revenue from the renting, leasing, or otherwise furnishing of hotel or motel accommodations for profit in the City. The tax also applies to the gross receipts or gross proceeds received by restaurants, cafes, cafeterias, delis, drive-in restaurants, carry-out restaurants, concession stands, convenience stores, grocery store restaurants, caterers and similar businesses as may be defined from time to time by ordinance from the sale of prepared foods and beverages for on or off premises consumption. The tax does not apply to such gross receipts or proceeds of organizations qualified under Section 501(c)(3) of the Federal Internal Revenue Code. The taxes are due the 20th day of the month following the month in which the taxes were collected. If taxes become delinquent, the City Prosecutor seeks to collect the taxes. Delinquent taxes totaled $23,104 and $39,793 at December 31, 2015 and 2014, respectively. Revenues collected from the taxes are to be used for advertising and promotion in the City and its environs. Revenues are also to be used for the construction, reconstruction, equipment, improvement, maintenance, repair, and operation of a convention center, for the operation of tourist promotion facilities in the City, and for personnel and agencies necessary to conduct the business of the A&PC. Investments Investments of the A&PC represent the portion of a combined investment pool managed by the City allocable to the A&PC. Investments include money market mutual funds, U.S. Treasury obligations, corporate bonds and U.S. Government agency obligations. Money market mutual funds, governmental securities and corporate bonds are recorded at fair market value based on quoted market prices. Income related to investments is recorded when earned. Income earned in the pool is allocated to the various funds and component units weekly. At December 31, 2015 and 2014, the A&PC's proportionate share of the investment pool was approximately 1.80% and 1.85%, respectively. Reclassification Certain accounts in prior year financial statements have been reclassified for comparative purposes to conform with the presentation in the current year financial statements. - 11 - FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2015 AND 2014 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED Accounts Receivable Accounts receivable consist of amounts due from the Fayetteville Town Center customers and the City's Parking Department. For the years ended December 31, 2015 and 2014, accounts receivable were deemed fully collectible; therefore, no allowance for doubtful accounts was considered necessary. If accounts become uncollectible, they will be charged to operations when that determination is made. Determination of uncollectibility is made by management based on knowledge of individual accounts and consideration of such factors as current economic conditions. Accounts are generally uncollateralized. Past-due status is based on contractual terms. Past-due accounts are not charged interest. Inventory Inventory is valued at the lower of cost (first-in, first-out method) or market. Inventory consists of items for sale in the A&PC's gift shop. NOTE 2: COMMITMENTS The A&PC has an agreement with the City to pay $673,000 per year, plus fees, for The Hotel and Restaurant Gross Receipts Tax Bonds, Series 2003, issued by the City to construct and equip the Town Center, a multi-purpose civic center and the related parking facilities. The bonds are secured by a 1% gross receipts tax and the revenues from the operations of the Town Center. The bonds bear interest at coupon rates ranging from 3.2% to 3.55% and were set to mature in 2015. (See Note 6.) These bonds were fully repaid during the year ended December 31, 2014. During the year ended December 31, 2013, a resolution was proposed that recommended to the City the issuance and sale of (1) approximately $1,500,000 of hotel and restaurant gross receipts tax refunding bonds for the purpose of refunding the City's outstanding hotel and restaurant gross receipts tax refunding bonds, series 2003, (2) approximately $6,900,000 of hotel and restaurant gross receipts tax and tourism revenue capital improvement bonds for the purpose of financing certain capital improvements in connection with the proposed Walton Arts Center expansion and renovation, and (3) approximately $3,500,000 of hotel and restaurant gross receipts tax and tourism revenue capital improvement bonds for the purpose of financing certain capital improvements in connection with a proposed regional park. The resolution was approved by the A&PC in May 2013 and approved by the voters in November 2013 in a special election. The bonds were issued in October 2014, will mature in 2039, and bear interest at coupon rates ranging from 2.0% to 5.0%. As a result of the issuance, the City retains $742,528 per year, plus fees, for payments on these bonds. The amount retained for the bond payment would otherwise be remitted to the A&PC. - 12 - FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2015 AND 2014 NOTE 2: COMMITMENTS — CONTINUED In November and December of 2015, the A&PC committed to pay up to $139,000 in funding requests from various Fayetteville, Arkansas organizations for events to be hosted within the City in 2016. NOTE 3: DEPOSITS IN FINANCIAL INSTITUTIONS State law requires that municipal funds be deposited in federally insured banks located in the State of Arkansas. The municipal deposits may be in the form of checking accounts, savings accounts, and time deposits. Public funds may also be invested in direct obligations of the United States of America and obligations, the principal and interest of which, are fully guaranteed by the United States of America. The A&PC maintains separate bank accounts in two banks. Deposits with banks at December 31, 2015 amounted to $819,926, of which $290,481 was insured and the remaining amount was collateralized by securities held in the A&PC's name. The A&PC's portion of investments held by the City amounted to $1,840,256 at December 31, 2015, and is held at one financial institution in the name of the City. Approximately .24% of the pool is insured, 2.85% is collateralized by securities held in the City's name and the remaining balance is invested in direct obligations of the United States of America. NOTE 4: EMPLOYEE BENEFIT PLAN The A&PC offers a SIMPLE IRA plan to all employees who meet the eligibility requirements. The A&PC matches employee contributions up to 3% of compensation, while the employee may contribute up to 10% of their salary. The commission of the A&PC has the authority to amend the plan and contribution rate. The A&PC made contributions in the amount of $14,678 and $13,418 for the years ended December 31, 2015 and 2014, respectively. NOTE 5: CONCENTRATIONS AND RISK OF ACCOUNTING LOSS Interest Rate Risk - As a means of limiting its exposure to fair value losses arising from rising interest rates, the A&PC's investment policy is to attempt to match investment maturities with cash flow requirements. The A&PC's investments are money market mutual funds, U.S. Treasury obligations, corporate bonds and U.S. Government agency obligations. - 13 - FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2015 AND 2014 NOTE 5: CONCENTRATIONS AND RISK OF ACCOUNTING LOSS — CONTINUED Credit Risk - Credit risk is the risk that the issuer or other counterparty to an investment will not fulfill its obligations. It is the A&PC's policy to minimize credit risk losses due to default of security issuers or backers by limiting investments to the safest types of securities in accordance with the City's investment policies. It is the City's policy to invest no more than 20% in corporate debt and securities of a management type investment company or investment trust. The corporate bonds must be rated as Single A minus or better by both Moody's Investor Service and Standard and Poor's at the time of purchase. Investment in commercial paper will be rated A-1/P-1. Investment in management type investment companies or investment trusts is limited to companies with portfolios who are limited to U.S. Government obligations and repurchase agreements with approved collateralization. The City's investments in corporate bonds ranged between A and BBB and the government agencies were ranked AA+ by Standard & Poor's at December 31, 2015 and 2014. Custodial Credit Risk - Custodial credit risk is the risk that, in the event of the failure of the counterparty, the A&PC will not be able to recover the value of its investment or collateral securities that are in the possession of an outside party. (See Note 3). Concentration of Credit Risk- The A&PC's investment policy, in accordance with the City's investment policies, limits investment in any one issuer to 5% of the cost basis of the portfolio and limits concentration in any one business sector to 15% of the cost basis of the portfolio excluding U.S. Treasury securities and collateralized certificates of deposits. The A&PC had no concentration risk as of December 31, 2015 and 2014. Foreign Currency Risk- This risk relates to adverse effects on the fair value of an investment from changes in exchange rates. The City's investment policy doesn't directly address foreign currency risk. The City's investment manager only buys U.S. dollar pay securities. The A&PC had no investments that were denominated in foreign currency at December 31, 2015 and 2014. NOTE 6: RELATED PARTY TRANSACTIONS As stated in Ordinance Number 95-1, the commission of the A&PC consists of seven members, four of which are owners or managers of businesses in the tourism industry which collect the hotel or restaurant taxes levied. Thus, four members of the commission are employed by restaurants or hotels that pay the tax which is the primary funding for the A&PC. During the years ended December 31, 2015 and 2014, the A&PC paid approximately $7,000 and $5,000, respectively, for expenses related to operational services performed by the City for the lease of parking spaces. - 14- FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2015 AND 2014 NOTE 6: RELATED PARTY TRANSACTIONS — CONTINUED The A&PC had amounts due from the City for $11,690 and $11,963 at December 31, 2015 and 2014, respectively, and amounts due to the City for $5,226 and $4,731 at December 31, 2015 and 2014, respectively, for interfund transactions recorded during the year. Furthermore, the A&PC had accounts receivable from the City's Parking Department of $8,933 and $8,366 at December 31, 2015 and 2014, respectively. The A&PC has an agreement to pay the City a collection fee of 2% of the taxes collected. During the years ended December 31, 2015 and 2014, the A&PC paid collection expenses of $61,044 and $55,155, respectively, to the City in exchange for the City collecting tax revenue on behalf of the A&PC. The A&PC has an agreement with the City to pay $673,000 per year, plus fees, for bonds secured by a 1% gross receipts tax. This bond issue was fully repaid during the year ended December 31, 2014. Additionally, the City retains $742,528 per year, plus fees, for payments on the Capital Improvement and Refunding Bonds issued in October 2014. See Note 2. NOTE 7: PROPERTY A summary of changes in property is as follows: December 31, Disposals/ December 31, 2014 Additions Transfers 2015 Building $ 1,453,775 $ 43,972 $ - $ 1,497,747 Construction in progress 9,218 - (9,218) - Furniture and fixtures 34,550 - - 34,550 Land 198,621 - - 198,621 Equipment 199,387 62,730 - 262,117 1,895,551 106,702 (9,218) 1,993,035 Less accumulated depreciation (506,470) (78,520) - (584,990) $ 1,389,081 $ 28,182 $ 9,218 $ 1,408,045 - 15- FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2015 AND 2014 NOTE 7: PROPERTY— CONTINUED December 31, Disposals/ December 31, 2013 Additions Transfers 2014 Building $ 1,403,108 $ 50,667 $ - $ 1,453,775 Construction in progress - 9,218 - 9,218 Furniture and fixtures 34,550 - - 34,550 Land 198,621 - - 198,621 Equipment 134,099 65,288 - 199,387 1,770,378 125,173 - 1,895,551 Less accumulated depreciation (443,305) (63,165) - (506,470) $ 1,327,073 $ 62,008 $ - $ 1,389,081 NOTE 8: INVESTMENTS Investments are stated at fair value. Fair value and unrealized appreciation (depreciation) at December 31, 2015 and 2014, are summarized as follows: December 31, 2015 Unrealized Appreciation Cost Fair Value (Depreciation) Treasuries and U.S. Agency Obligations $ 1,798,193 $ 1,783,418 $ (14,775) Corporate Bonds 13,795 13,487 (308) Money Market 43,351 43,351 - $ 1,855,339 $ 1,840,256 $ (15,083) December 31, 2014 Unrealized Appreciation Cost Fair Value (Depreciation) Treasuries and U.S. Agency Obligations $ 1,569,105 $ 1,566,435 $ (2,670) Corporate Bonds 14,217 14,247 30 Money Market 236,160 236,160 - $ 1 ,819,482 $ 1,816,842 $ (2,640) - 16 - FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2015 AND 2014 NOTE 8: INVESTMENTS — CONTINUED The following schedule summarizes the investment return and its classification in the Statements of Revenues, Expenditures and Changes in Fund Balance for the years ended December 31, 2015 and 2014: 2015 2014 Interest income and realized gains $ 20,206 $11,698 Net unrealized gain (loss) on investments (12,443) 1,329 $ 7,763 $13,027 NOTE 9: FAIR VALUE MEASUREMENTS Financial Accounting Standards Board (FASB) Codification Topic Fair Value Measurements and Disclosures establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the investments fall within different levels of the hierarchy, the categorization is based on the lowest level of input that is significant to the fair value measurement of the investment. Investments recorded in the Statements of Assets, Liabilities and Fund Balance — Modified Accrual Basis based on the inputs to valuation techniques are as follows: Level 1 - These are investments where values are based on unadjusted quoted prices for identical assets in an active market that the A&PC has the ability to access. These investments are comprised of money market mutual funds, corporate bonds, U.S Agency obligations and U.S Treasuries. Level 2 - These are investments where values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the investments. Level 3 - These are investments where values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect assumptions of management about assumptions market participants would use in pricing the investments. - 17 - FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2015 AND 2014 NOTE 9: FAIR VALUE MEASUREMENTS — CONTINUED The following tables present the A&PC's hierarchy for the investments measured at fair value on a recurring basis as of December 31, 2015 and 2014: December 31, 2015 Level Level Level Totals Marketable securities Treasuries and U.S. Agency Obligations $1,783,418 $ - $ - $1,783,418 Corporate Bonds 13,487 - - 13,487 Money Market 43,351 - - 43,351 $ 1,840,256 $ - $ - $1,840,256 December 31, 2014 Level Level Level Totals Marketable securities Treasuries and U.S. Agency Obligations $ 1,566,435 $ - $ - $1,566,435 Corporate Bonds 14,247 - - 14,247 Money Market 236,160 - - 236,160 $ 1,816,842 $ - $ - $1 ,816,842 - 18 - 0BEALL MF BARCLAY Bcall Barclay & Company, PLC INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Commissioners Fayetteville Advertising and Promotion Commission Fayetteville, Arkansas We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the Fayetteville Advertising and Promotion Commission (the "A&PC") as of and for the year ended December 31, 2015 and have issued our report thereon dated May 9, 2016. In our report we expressed an adverse opinion on accounting principles generally accepted in the United States of America because the financial statements are prepared on the basis of accounting practices prescribed or permitted by the State of Arkansas (regulatory basis) and not in accordance with accounting principles generally accepted in the United States of America. In our report, we expressed an unqualified opinion on the regulatory basis of accounting, which is a basis of accounting other than principles generally accepted in the United States of America. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the A&PC's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the A&PC's internal control. Accordingly, we do not express an opinion on the effectiveness of the A&PC's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the A&PC's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. - 19 - Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the A&PC's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the A&PC's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the A&PC's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. &ear/11 co�r�a�rf, Pic BEALL BARCLAY & COMPANY, PLC Certified Public Accountants Rogers, Arkansas May 9, 2016 - 20 - �� a ,a\ ��. �a �` Fayetteville A P Commission Modified Accrual Statement of Budget, Revenue and Expense May 2016 Year-to-Date CONSOLIDATED A& P COMMISSION 2016 May 2016 Year-to-Date 2015 2016 May 2016 Month 2015 Annual Budget Budget Actual YTD Actual Balance of Budget Actual Month Actual Budget Revenue 40000 Hotel,Motel,Restaurant Taxes 2,941,944 1,225,810 1,309,613 1,185,880 1,632,331 245,162 291,712 258]25,575 262 40200 PY Hotel,Motel,Restaurant Tax 18,000 7,500 19,040 20,351 (1,040) 1,500 371 40600 Rental Income 557,331 232,221 192,575 184,194 364,756 46,444 46,047 40601 -Incidentals 30,740 12,808 24,141 20,361 6,599 2,561 2,411 40602-Alcohol Sales 50,000 20,833 11,997 22,946 38,003 4,166 0 4,825 40700 1st Thursday Income 20,000 7,500 17,379 2,483 2,621 2,500 5,613 716 40800 Other Income 2,100 875 4,267 1,825 (2,167) 175 618 350 41000 Parking Revenue 13,561 5,650 3,487 4,156 10,074 1,130 643 756 41001 Parking Lease 19,815 8,255 3,954 5,648 15,861 1,651 3,954 250 41200 Gift Shop Sales 6,781 2,825 1,505 2,321 5,276 565 315 733 41300 Visitor Store 32,830 13,678 6,794 9,553 26,036 2,736 1,355 3,471 41400 Partership Income 2,750 0 0 900 2,750 0 0 300 41600 Admission Revenue 18,674 7,780 7,701 5,776 10,973 1,556 2,140 1,969 41700• Health Reimbursement 0 0 0 1,389 0 0 0 0 42000•Special Projects 21,365 8,900 2,414 5,638 18,951 1,780 0 1,370 42005•Security Income 1,800 840 0 0 1,800 120 0 0 42600• Interest Income Investments 12,000 5,000 5,909 5,726 6,091 1,000 1,334 1,070 42610• Unrealized Gain/Loss 0 0 0 0 0 0 0 0 42800• Interest Income Checking 3,075 1,279 1,594 1,024 1,481 256 312 238 42900•Visitor Guide Ad Income 22,000 22,000 19,100 0 2,900 3,200 1,700 0 43200• LOTO Income 10,300 0 0 0 10,300 0 0 0 98000•Transfer In 1,325,647 554,131 0 0 1,325,647 142,429 0 0 Total Revenue 5,110,713 2,137,885 1,631,470 1,480,171 3,479,243 458,931 358,525 304,101 Cost of Goods Sold 50000-CHM Gift Shop-COGS 0 0 494 0 (494) 0 59 0 50001 -CVB Store-COGS 0 0 2,106 652 (2,106) 0 459 581 Total Cost of Goods Sold 0 0 2,600 652 (2,600) 0 518 581 Gross Profit 1 5,110,713 1 2,137,885 1,628,870 1 1,479,519 1 3,481,843 1 458,931 1 358,007 303,520 Page 1 of 3 Fayetteville A P Commission Modified Accrual Statement of Budget, Revenue and Expense May 2016 Year-to-Date CONSOLIDATED A& P COMMISSION 2016 May 2016 Year-to-Date 2015 2016 May 2016 Month 2015 Annual Budget Budget Actual YTD Actual Balance of Budget Actual Month Actual Budget Expenditures 61000 Signage-Tourism 12,000 5,000 1,569 1,922 10,431 1,000 71 214 61500 Credit Card Fees 10,950 4,563 2,651 3,274 8,299 913 555 864 62500 Advertising&Marketing 860,000 392,667 386,200 213,789 473,800 55,834 54,247 119,603 62600 Printing/Brochures 150,000 62,500 11,056 17,690 138,944 12,500 0 7,118 62700 Website Update 12,000 5,000 2,500 3,335 9,500 1,000 500 1,335 63000 Accounting&Legal Fees 6,500 2,710 3,438 1,945 3,062 542 1,624 1,945 63100 Audit Expense 11,000 9,750 9,700 9,100 1,300 9,750 1,207 9,100 64000 Office Expense 27,600 11,500 9,564 6,456 18,036 2,279 2,078 970 64100 Visitor Store Expense 15,000 6,250 876 4,187 14,124 1,250 20 1,241 64150-Clinton House Gift Shop 3,800 1,581 (62) 2,076 3,862 317 0 0 64500• Insurance-Building 10,000 0 0 0 10,000 0 0 0 64501 -Insurance-Workers Comp 1,750 0 0 0 1,750 0 0 0 64502-Insurance-D&O 2,000 0 1,991 0 9 0 1,991 0 65000 Insurance&Health Benefits 115,640 48,163 37,391 44,550 78,249 9,632 7,478 7,348 65501 Simple IRA Match 19,942 8,301 5,588 5,870 14,354 1,662 970 1,218 66000 Car Allowance 43,600 13,500 1,500 1,950 42,100 4,300 300 300 66500 Telephone Expense/Internet 19,460 8,108 5,458 6,665 14,002 1,623 1,085 737 67000 Postage&Shipping Expense 30,500 12,708 13,121 5,722 17,379 2,541 3,596 2,395 67100 Tracking Software 25,750 15,807 16,939 7,416 8,811 190 75 3,074 68100• Rent 12,000 5,000 5,000 12,000 7,000 1,000 1,000 0 68400• Maintenance/Lawn 17,500 3,000 1,520 498 15,980 1,000 714 459 68500• Repairs&Maintenance Expense 166,300 72,790 45,534 48,076 120,766 12,358 6,120 11,144 68600• Peace Fountain Maintenance 7,500 3,125 1,027 0 6,473 625 182 0 68700• Linens 28,000 13,135 12,304 10,706 15,696 2,500 1,612 1,986 69500• Publication&Dues 18,250 12,979 12,082 12,239 6,168 92 56 0 70000•Travel/Training Expense 95,500 38,944 37,576 29,407 57,924 7,858 10,429 2,888 70500•Taxes&Licenses 21,425 9,234 5,712 6,456 15,713 4,075 2,528 4,187 71000•Collections Expense 63,000 26,250 26,573 24,125 36,427 5,250 5,842 5,167 Page 2 of 3 Fayetteville A P Commission Modified Accrual Statement of Budget, Revenue and Expense May 2016 Year-to-Date CONSOLIDATED A& P COMMISSION 2016 May 2016 Year-to-Date 2015 2016 May 2016 Month 2015 Annual Budget Budget Actual YTD Actual Balance of Budget Actual Month Actual Budget Expenditures(cont.) 72000 Payroll Tax Expense 56,428 23,506 20,308 20,816 36,120 4,701 3,826 3,785 72500 Depreciation Expense 0 0 0 0 0 0 0 0 73000 Convention Development 58,500 29,191 26,516 30,622 31,984 4,208 2,622 3,722 76500 Contract Labor 106,228 43,828 29,188 26,258 77,040 8,975 9,272 6,752 77500 Wages Expense 719,873 299,943 249,331 249,710 470,542 59,989 48,599 48,031 77600-Relocation Expense 0 0 0 5,000 0 0 0 0 78000 Electric Utilities 72,600 26,440 23,247 25,474 49,353 5,965 5,609 5,730 78100 Gas Utility 16,110 9,960 6,769 10,491 9,341 705 582 557 78200 Water Utilitiy 10,934 3,773 4,365 3,544 6,569 768 1,160 846 78500 Security 1,700 925 920 950 780 25 22 22 78600 Airport Advertising 9,000 3,750 3,316 3,375 5,684 750 980 750 78700• Minor Equipment 112,500 48,165 8,009 83,472 104,491 9,158 1,446 2,058 78800•Airport Info Booth 5,000 2,025 1,600 1,200 3,400 425 0 0 89000•Other Expense 20,000 6,000 0 0 20,000 2,000 0 0 94300• LOTO Special Project 23,025 6,250 187 65 22,838 1,250 0 0 95000• Misc.Special Projects-Other 269,865 112,440 85,719 66,546 184,146 22,488 19,226 25,543 95010• 1st Thursday 20,000 11,600 12,051 8,614 7,949 2,600 1,568 3,011 95026-Incidental Expenses 0 0 0 8,786 0 0 0 1,386 95027-Alcohol&Bar Supply Purchases 30,000 12,500 3,954 12,722 26,046 2,500 913 1,299 95028-Public Arts Program 105,000 26,250 0 0 105,000 26,250 0 0 95050-Clinton Activities 450 75 0 125 450 0 0 0 96000-Annual Improvements 234,950 77,485 0 0 234,950 22,495 0 0 96500•Special Funding 0 0 0 0 0 0 0 0 97000• Bond Payments-Town Center 746,556 311,065 290,928 311,065 455,628 62,213 58,186 62,213 97100•Trustee Expense 0 0 0 0 0 0 0 0 99000•Transfer Out 685,027 290,149 0 0 685,027 81,375 0 0 Total Expenditures 5,110,713 2,137,885 1,423,216 1,348,289 3,687,497 458,931 258,291 348,998 Excess of Revenues Over/(Under)Expenditures 0 0 205,654 131,230 (205,654) 0 99,716 (45,478) Page 3 of 3