HomeMy WebLinkAbout2021-02-03 - Agendas - FinalFayetteville Advertising and
Promotion Commission
February 3, 2021
2:00 p.m.
Location: Virtual Public Meeting, Via Zoom. Register in advance for this webinar:
Commissioners: Matthew Petty, Chairperson, City Council Representative
Katherine Kinney, Tourism & Hospitality Representative
Todd Martin, Tourism & Hospitality Representative
Chrissy Sanderson, Tourism & Hospitality Representative
Robert Rhoads, Commissioner at -large
Sarah Bunch, City Council Representative
Staff: Molly Rawn, Chief Executive Officer
Agenda
Call to order at 2:00 p.m.
Old Business
A. Review and approval of December 2020 minutes
III. New Business
A. Vote. Appointment of a commission chairperson. In accordance with our by-
laws, a chairperson must be voted on by the active commissioners at the first
meeting of every year. The chair serves a one-year term.
B. Presentation of the 2019 audited financials by BKD. Typically, the audit is
presented in quarter 2 of the following year, we are presenting it now due to pandemic
related delays. Audit report included under seperate cover.
C. Vote: Engagement letter for 2020 audit. Staff is recommending signing and
engagement letter with BKD for the 2020 audit and filing the Clinton House Museum's
990 for a budgetary impact of $23, 000. Memo attached.
D. Vote. Submitting a loan application through the Paycheck Protection Program
(PPP), approximately $246,000. Fayetteville Advertising and Promotion
Commission is now eligible for this assistance through PPP. Memo attached.
E. Vote. Approving a quote for $75,785 with West Pro Construction for repair to
the Town Center airwall. This is one of the capital improvements presented in the
2021 budget. Memo attached.
F. Vote. Approving a quote for $21,834 from Multi -Craft Contractors for
replacement of a Town Center roof -top HVAC unit. This is one of the capital
improvements presented in the 2021 budget. Memo attached.
G. Vote. Renewal of annual contract with Sells Agency to serve as agency of
record through December 31, 2021. This contract amount will vary based on the
amount of media placement and agency services we utilize based on our budget.
Rates are included in proposed contract. Memo attached.
IV. Announcements:
A. Fayetteville Advertising and Promotion Commission will soon have two open
seats.
i. Commissioner Martin's tourism and hospitality seat and Commissioner
Rhoads's at -large seat both expire on March 31 st. Both are eligible to
re -apply.
ii. Applications are due on February 19tn
iii. I recommend the commissioners not re -applying schedule a special
meeting in late February to conduct interviews and either
• vote upon their recommendations at the March commission
meeting OR
• send their recommendations directly to the city council for
approval
V. Adjourn.
Fayetteville Advertising and Promotion Commission
Minutes from December 14, 2020 Meeting
Virtual Public Meeting, Via Zoom
Commissioners Present: Matthew Petty, Chairperson; Todd Martin; Chrissy Sanderson; Katherine
Kinney; Sarah Bunch; Robert Rhoads
Staff: Molly Rawn, Chief Executive Officer and Jennifer Walker, Vice President
of Finance
Chairperson Petty called the meeting to order at 2:OOpm, acknowledging that all
commissioners were present.
II. Old Business
a. Commissioner Martin moved to approve the November 2020 minutes with
Commissioner Kinney offering a second. The motion passed with a roll call vote.
III. New Business
a. UCI Letter of Credit:
CEO Rawn began by the first item, a vote to provide a bank guarantee with a
value of 70,000 swiss francs. First Security Bank is able to provide the letter of
credit (LOC). The funds for the letter would be secured by a savings account
established at First Security bank. The terms are as follows:
1. The LOC has a 1.5% fee for an 18-month term, totaling $1,200 dollars.
2. The savings account earns .4%
3. Should the letter default, the finance rate would be 2.4% on the default
ii. Commissioner Rhoads made a motion to authorize CEO Rawn to execute loan
documents for the Letter of Credit and to open an associated savings account at
First Security Bank and to serve as the authorized signer on the account.
iii. The motion was seconded by Commissioner Kinney. The motion passed
unanimously via roll call vote.
b. Vote to appoint Elvis Moya to the vacant A & P Commission seat
i. There is a vacant tourism seat on the commission with a partial term ending in
2022. Four applications were received. A committee was formed to interview
the applicants: Commissioners Kinney and Sanderson, Molly Rawn, and Hazel
Hernandez.
ii. Elvis Moya was selected to be recommended to the commission. Chair Petty
asked Rawn to talk about Moya's experience than would serve our team well.
iii. Commissioner Martin made a motion to accept the committee's
recommendation and send Elvis's name to the city council for approval.
iv. The motion was seconded by Commissioner Bunch. The motion passed
unanimously.
c. 2021 Budget Presentation.
i. CEO Rawn presented the budget stating the assumptions made when compiling
it.
1. Our revenues match expenses.
2. Revenues represent a 7% decrease from 2019.
3. She stated that the percent change reflected in 2021, was relative to
2019 actuals as 2020 numbers represent quite the anomaly.
4. Jennifer Walker, VP of Finance, began presenting our fund balances and
stated that she and Rawn would be creating financial policies on
restricting a portion of the fund balances and presenting those policies
to the commission during the first quarter of 2021.
S. Walker turned it over for questions and comments. There were no
questions but several comments of appreciation for how well the
budget was presented.
ii. Before the budget was voted on, Commissioner Sanderson asked if there was an
update on the possibility of CARES funding for us. Rawn noted that she has been
in contact about this and has not been notified but with the December 315T
deadline approaching, is staying on top of this possibility.
iii. With no further questions, Commissioner Martin made a motion to approve the
budget as is.
iv. Commissioner Bunch seconded the motion. The motion passed unanimously
with a roll call vote.
d. With no further business, Commissioner Petty gave a reminder that the commission
would not meet in January and would meet the second Monday in February due to the
third Monday being Presidents Day, a city holiday. He adjourned the meeting at 3:03
pm.
Minutes submitted by Amy Stockton, Director of Operations
Fayetteville A&P Commission
Balance Sheet
As of December 31, 2020
ASSETS
Current Assets
Cash
1st Security A&P/EF
627,152.45
1st Security Fayetteville TC
381,162.78
1st Security Clinton House
3,988.91
1st Security Cyclocross
684,365.88
1st Security Money Market Account
80,003.50
Arvest Payroll Account
47,886.69
EF/CVB Cash in Register
150.00
TC Cash on Hand
1,000.00
CHM Cash In Register
100.00
Subtotal: Cash
1,825,810.21
Investments
Investments
844,171.03
Investments: Adjust to Market
3,198.95
Subtotal: Investments
847,369.98
Accounts Receivable
Accounts Receivable - City Parking
5,089.70
Accounts Receivable (Due from Vendors)
169,283.52
Accounts Receivable (TC)
55,993.85
HMR Funds Due from City
194,790.10
Total Accounts Receivable
425,157.17
Prepaid Expenses
29,168.08
Deposits
30,617.00
Visitors Guide Trade
4,088.59
Inventory Asset - EF/CVB
9,336.86
Inventory Asset - CHM
2,728.66
Total Current Assets
3,174,276.55
Other Assets
Capital Assets
Furniture & Fixtures
96,640.63
Equipment
498,897.03
EF/CVB Building
940,410.32
EF/CVB Land
198,621.00
Building Additions
971,952.08
Walker -Stone House
1,167,217.53
Accumulated Depreciation
(1,221,294.43)
Total Capital Assets
2,652,444.16
Total Other Assets
2,652,444.16
TOTAL ASSETS
5,826,720.71
Fayetteville A&P Commission
Balance Sheet
As of December 31, 2020
LIABILITIES AND EQUITY
Current Liabilities
Accounts Payable
49,787.90
Payroll Liabilities
21,120.10
Accrued Expenses
995.02
Sales Tax Payable
778.42
Unearned Revenue 2021
104,133.59
Unearned Revenue 2022
4,530.00
Subtotal: Current Liabilities
181,345.03
Total Liabilities
181,345.03
Equity
Fund Balance 4,866,429.81
Temporarily Restricted Funds 766,783.95
Net Revenue
Gain/(Loss) on Investments (60,777.42)
Net Revenue without Cyclocross 72,939.34
Net Revenue for Cyclocross 0.00 12,161.92
Total Equity 5,645,375.68
TOTAL LIABILITIES AND EQUITY 5,826,720.71
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
CONSOLIDATED
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining % of
Budget
Revenue
Hotel, Motel, Restaurant Taxes Revenue
CYHMRTaxes
2,975,851.53
2,369,024
606,827.53
-25.62%
PY HMR Taxes
33,096.78
30,000
3,096.78
-10.32%
Subtotal Hotel, Motel, Restaurant Taxes Revenue
3,008,948.31
2,399,024
609,924.31
Rental Revenue
Facility Rental
110,400.38
160,000
(49,599.62)
31.00%
Rental Items
15,907.77
24,000
(8,092.23)
33.72%
Alcohol Sales
29,631.09
55,000
(25,368.91)
46.13%
Rental Services
24,430.00
40,000
(15,570.00)
38.93%
Subtotal Rental Revenue
180,369.24
279,000
(98,630.76)
Event Revenue
First Thursday Income
5,000.00
0
5,000.00
-100.00%
LOTO Income
1,500.00
3,500
(2,000.00)
57.14%
Other Event Income
25,282.84
600
24,682.84
-4113.81%
Subtotal Event Revenue
31,782.84
4,100
27,682.84
Clinton House Museum Revenue
Museum Store Sales
3,079.67
2,700
379.67
-14.06%
Admission Revenue
0.00
0
0.00
Donations
2,120.01
5,000
(2,879.99)
57.60%
Membership
Subtotal Clinton House Museum Revenue
5,199.68
7,700
(2,500.32)
Visitor Center Store Revenue
Visitor Store Sales
Regular Store Sales
13,482.30
9,000
4,482.30
-49.80%
Consignment Sales
1,006.00
4,000
(2,994.00)
74.85%
Subtotal Visitor Center Revenue
14,488.30
13,000
1,488.30
Parking Revenue
Parking Machine Revenue
5,879.50
10,000
(4,120.50)
41.21%
Parking Lease Revenue
14,450.00
13,800
650.00
-4.71%
Subtotal Parking Revenue
20,329.50
23,800
(3,470.50)
Advertising Revenue
Visitor Guide Ad Income
25,125.00
15,000
10,125.00
-67.50%
Banner Income
900.00
2,000
(1,100.00)
55.00%
Subtotal Advertising Revenue
26,025.00
17,000
9,025.00
Other Revenue
Other Revenue
1,292.25
0
1,292.25
-100.00%
WFF Cycling Coordinator Grant
53,316.00
53,316
0.00
0.00%
WFF Cyclocross Grant
Cyclocross Grant Funds
0.00
540,736
(540,736.00)
100.00%
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
CONSOLIDATED
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining % of
Budget
Cyclocross Events Revenue
0.00
0
0.00
100.00%
Cultural Arts Corridor
5,000.00
5,000
0.00
100.00%
Clinton House Museum Grants
3,000.00
0
3,000.00
100.00%
Cares Act Grant
146,683.52
0
146,683.52
100.00%
Subtotal Other Revenue
209,291.77
599,052
(389,760.23)
Interest and Investment Revenue
Investment Account Interest
13,866.60
9,900
3,966.60
-40.07%
Checking Account Interest
6,404.53
7,900
(1,495.47)
18.93%
Subtotal Interest and Investment Revenue
20,271.13
17,800
2,471.13
Total Revenue
3,516,705.77
3,360,476
156,229.77
Expenses
Operating Expenses
Rental Expenses
Facility Rental Expenses
0.00
0
0.00
100.00%
Linens
4,261.87
9,500
(5,238.13)
55.14%
Alcohol & Bar Supply Expenses
Alcohol
5,215.91
24,000
(18,784.09)
78.27%
Bar Supply Expenses
1,265.27
5,000
(3,734.73)
74.69%
Rental Services
5,799.00
15,000
(9,201.00)
61.34%
Subtotal Rental Expenses
16,542.05
53,500
(36,957.95)
Event Expenses
First Thursday Expenses
1,250.00
0
1,250.00
-100.00%
LOTO Expenses
5,302.90
5,500
(197.10)
3.58%
Other Event Expenses
30,547.03
1,100
29,447.03
-2677.00%
Subtotal Event Expenses
37,099.93
6,600
30,499.93
Clinton House Museum
Other Event Expenses
2,854.40
3,500
(645.60)
18.45%
Museum Store Expenses
Goods for Sale
3,252.77
4,500
(1,247.23)
27.72%
Store Supplies
504.28
650
(145.72)
22.42%
Programs
Group Visits
0.00
500
(500.00)
100.00%
Honoraria
750.00
500
250.00
-50.00%
General Program
134.10
1,000
(865.90)
86.59%
First Ladies Garden
13,129.48
13,000
129.48
Exhibit Expenses
4,910.65
5,000
(89.35)
1.79%
Fundraising
2,529.50
2,530
(0.50)
0.02%
Subtotal Clinton House Museum
28,065.18
31,180
(3,114.82)
Visitor Center Store
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
CONSOLIDATED
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining % of
Budget
Goods for Sale
13,026.26
4,500
8,526.26
-189.47%
Store Supplies
1,047.26
2,500
(1,452.74)
58.11%
Consignment Expenses
925.20
2,500
(1,574.80)
62.99%
Subtotal Visitor Center Store
14,998.72
9,500
5,498.72
Marketing Expenses
Advertising Expense
Agency Advertising
241,262.44
250,000
(8,737.56)
3.50%
Non -Agency Advertising
15,332.97
29,000
(13,667.03)
47.13%
Agency Fees
179,550.00
179,550
0.00
0.00%
Promotion
Promotion Expenses
86,202.53
103,800
(17,597.47)
16.95%
Signage-Tourism
0.00
1,500
(1,500.00)
100.00%
Banners
2,456.38
3,900
(1,443.62)
37.02%
Printing
Visitors Guide Expense
31,552.10
14,400
17,152.10
-119.11%
Other Brochures
6,628.62
9,100
(2,471.38)
27.16%
Website
7,899.92
9,700
(1,800.08)
18.56%
Mailings
5,500.00
6,000
(500.00)
8.33%
Sales and Development
Promotional Items
596.03
5,500
(4,903.97)
89.16%
Groups
2,286.35
2,000
286.35
-14.32%
Sports
20,171.06
11,640
8,531.06
-73.29%
Meetings
53.69
2,100
(2,046.31)
97.44%
Memberships
30,611.70
22,900
7,711.70
-33.68%
Tourism & Client Development
14,165.04
22,100
(7,934.96)
35.90%
Subtotal Marketing Expenses
644,268.83
673,190
(28,921.17)
4.30%
Payroll
Wages Expense
859,499.83
838,759
20,740.83
-2.47%
Payroll Tax Expense
Federal (941) Payroll Taxes
62,190.80
69,200
(7,009.20)
10.13%
SUTA
2,349.55
2,600
(250.45)
9.63%
Benefits
Health and Other Emp Insurance
122,278.26
135,063
(12,784.74)
9.47%
Company Ret Contributions
21,346.04
29,323
(7,976.96)
27.20%
Car Allowance
2,708.29
1,041
1,667.29
-160.16%
Contract Labor
14,340.88
33,700
(19,359.12)
57.45%
Payroll Processing Fees
6,048.01
6,675
(626.99)
Subtotal Payroll Expenses
1,090,761.66
1,116,361
(25,599.34)
Office and Administrative Expenses
Office Expenses
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
CONSOLIDATED
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining % of
Budget
Office Supplies
4,488.01
9,600
(5,111.99)
53.25%
Office Equipment Leases
5,986.97
8,200
(2,213.03)
26.99%
Office Equipment Purchases
1,101.63
1,800
(698.37)
38.80%
Subscriptions
525.06
1,100
(574.94)
52.27%
Employee Relations
4,499.39
4,700
(200.61)
4.27%
Training
2,232.78
6,700
(4,467.22)
66.67%
Postage and Shipping
1,372.99
1,400
(27.01)
1.93%
Fees
Bank Service Charges
511.94
750
(238.06)
31.74%
Credit Card Fees
2,794.57
6,900
(4,105.43)
59.50%
Business Taxes and Licenses
9,894.31
15,000
(5,105.69)
34.04%
Accounting, Audit, & Legal Fees
Accounting Fees
9,000.00
12,000
(3,000.00)
25.00%
Audit Fees
22,100.00
24,000
(1,900.00)
7.92%
Legal Fees
2,889.60
2,500
389.60
-15.58%
Collection Expense
60,178.94
47,980
12,198.94
-25.43%
Travel
Lodging
6,424.60
8,150
(1,725.40)
21.17%
Mileage
711.06
1,350
(638.94)
47.33%
Transportation
3,050.27
4,800
(1,749.73)
36.45%
Meals Out of Town
1,528.13
3,600
(2,071.87)
57.55%
IT Expenses
Computer Hardware
3,817.96
15,252
(11,434.04)
74.97%
Software Purchases and Subs
28,397.35
25,400
2,997.35
-11.80%
IT Support and Consulting
48,446.36
38,600
9,846.36
-25.51%
Insurance
Insurance - Building & Contents
15,447.00
15,000
447.00
-2.98%
Insurance - W/C
1,148.00
1,400
(252.00)
18.00%
Facilities
Rent
41,220.00
39,720
1,500.00
-3.78%
Internet/Telephone
33,218.94
34,080
(861.06)
2.53%
Utilities
Electric
61,136.27
68,477
(7,340.73)
10.72%
Gas
12,796.76
13,060
(263.24)
2.02%
Water
10,160.99
15,500
(5,339.01)
34.45%
Repairs and Maintenance
50,324.54
61,015
(10,690.46)
17.52%
Janitorial Supplies
19,911.06
35,500
(15,588.94)
43.91%
Maintenance Contracts
39,295.95
39,500
(204.05)
0.52%
FFE & Improvements
1,377.19
9,513
(8,135.81)
85.52%
Subtotal Office and Administrative Expenses
505,988.62
572,547
1 (66,558.38)
11.62%
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
CONSOLIDATED
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining % of
Budget
Other Expenses
Bond Payments
701,098.04
707,000
(5,901.96)
0.83%
Grants Awarded
Current Year Spring
65,440.00
70,000
(4,560.00)
6.51%
Theatre5quared Contribution
200,000.00
200,000
0.00
0.00%
Cyclocross Events
0.00
0
0.00
Total Other Expenses
966,538.04
977,000
(10,461.96)
0.01
Total Operating Expenses
3,304,263.03
3,439,878
(135,614.97)
Net Income/(Loss) Before Other Revenue and Expenses
212,442.74
(79,402)
291,844.74
Other Income
Unrealized Gain/(Loss) on Investments
(60,777.42)
Total Other Income
(60,777.42)
Other Expenses
Depreciation Expense
148,330.58
Cost of Goods Sold
(443.02)
Bad Debt Expense
852.88
0
852.88
-100.00%
Total Other Expenses
148,740.44
0
148,740.44
Net Income/(Loss) (without Cyclocross Grants)
2,924.88
(79,402)
143,104.30
Unrealized Gain/(Loss) on Investments
(60,777.42)
Net Income/(Loss) Without Cyclocross Events
63,702.30
Net Income/(Loss) for Cyclocross Events
9,237.04
Total Net Income/(Loss)
12,161.92
Changes to Assets and Capital Improvements
Expenditures Reclassified to Fixed Assets
114,219.86
114,220
Construction in Progress Capitalized
77,693.23
Total Additions to Fixed Assets
191,913.09
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
Experience Fayetteville
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining %of
Budget
Revenue
Hotel, Motel, Restaurant Taxes Revenue
CY HMR Taxes
2,975,851.53
2,369,024
606,827.53
-25.62%
PYHMRTaxes
33,096.78
30,000
3,096.78
-10.32%
Subtotal Hotel, Motel, Restaurant Taxes Revenue
3,008,948.31
2,399,024
609,924.31
Rental Revenue
Facility Rental
Rental Items
Alcohol Sales
Rental Services
Subtotal Rental Revenue
Event Revenue
First Thursday Income
5,000.00
0
5,000.00
-100.00%
LOTO Income
1,500.00
3,500
(2,000.00)
57.14%
Other Event Income
20,000.00
Subtotal Event Revenue
26,500.00
3,500
23,000.00
Clinton House Museum Revenue
Museum Store Sales
Admission Revenue
Donations
Membership
Subtotal Clinton House Museum Revenue
Visitor Center Store Revenue
Visitor Store Sales
Regular Store Sales
13,482.30
9,000
4,482.30
-49.80%
Consignment Sales
1,006.00
4,000
(2,994.00)
74.85%
Subtotal Visitor Center Revenue
14,488.30
13,000
1,488.30
Parking Revenue
Parking Machine Revenue
Parking Lease Revenue
Subtotal Parking Revenue
Advertising Revenue
Visitor Guide Ad Income
25,125.00
15,000
10,125.00
-67.50%
Banner Income
900.00
2,000
(1,100.00)
55.00%
Subtotal Advertising Revenue
26,025.00
17,000
9,025.00
Other Revenue
Other Revenue
245.00
0
245.00
-100.00%
WFF Cycling Coordinator Grant
53,316.00
53,316
0.00
0.00%
WFF Cyclocross Grant
Cyclocross Grant Funds
0.00
540,736
(540,736.00)
100.00%
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
Experience Fayetteville
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining %of
Budget
Cyclocross Events Revenue
0.00
0
0.00
100.00%
Cultural Arts Corridor
5,000.00
5,000
0.00
100.00%
Clinton House Museum Grants
Cares Act Grant
146,683.52
0
Subtotal Other Revenue
205,244.52
599,052
(540,491.00)
Interest and Investment Revenue
Investment Account Interest
13,866.60
9,900
3,966.60
-40.07%
Checking Account Interest
3,922.16
4,900
(977.84)
19.96%
Subtotal Interest and Investment Revenue
17,788.76
14,800
2,988.76
Total Revenue
3,298,994.89
3,046,376
105,935.37
Expenses
Operating Expenses
Rental Expenses
Facility Rental Expenses
Linens
Alcohol & Bar Supply Expenses
Alcohol
Bar Supply Expenses
Rental Services
Subtotal Rental Expenses
Event Expenses
First Thursday Expenses
1,250.00
0
1,250.00
-100.00%
LOTO Expenses
5,302.90
5,500
(197.10)
3.58%
Other Event Expenses
27,982.64
1,100
26,882.64
-2443.88%
Subtotal Event Expenses
34,535.54
6,600
27,935.54
Clinton House Museum
Other Event Expenses
Museum Store Expenses
Goods for Sale
Store Supplies
Programs
Group Visits
Honoraria
General Program
First Ladies Garden
Exhibit Expenses
Fundraising
Subtotal Clinton House Museum
Visitor Center Store
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
Experience Fayetteville
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining %of
Budget
Goods for Sale
13,026.26
4,500
8,526.26
-189.47%
Store Supplies
1,047.26
2,500
(1,452.74)
58.11%
Consignment Expenses
925.20
2,500
(1,574.80)
62.99%
Subtotal Visitor Center Store
14,998.72
9,500
5,498.72
Marketing Expenses
Advertising Expense
Agency Advertising
241,262.44
250,000
(8,737.56)
3.50%
Non -Agency Advertising
11,740.48
21,000
(9,259.52)
44.09%
Agency Fees
179,550.00
179,550
0.00
Promotion
Promotion Expenses
83,452.16
95,000
(11,547.84)
12.16%
Signage-Tourism
0.00
1,500
(1,500.00)
100.00%
Banners
2,456.38
3,900
(1,443.62)
37.02%
Printing
Visitors Guide Expense
31,552.10
14,400
17,152.10
-119.11%
Other Brochures
6,516.96
5,000
1,516.96
-30.34%
Website
6,748.36
8,200
(1,451.64)
17.70%
Mailings
5,500.00
6,000
(500.00)
8.33%
Sales and Development
Promotional Items
419.70
2,500
(2,080.30)
83.21%
Groups
2,286.35
2,000
286.35
-14.32%
Sports
20,171.06
11,640
8,531.06
-73.29%
Meetings
53.69
2,000
(1,946.31)
97.32%
Memberships
28,426.50
20,000
8,426.50
-42.13%
Tourism & Client Development
13,984.66
18,000
(4,015.34)
22.31%
Subtotal Marketing Expenses
634,120.84
640,690
(6,569.16)
Payroll
Wages Expense
537,259.13
498,308
38,951.13
-7.82%
Payroll Tax Expense
Federal (941) Payroll Taxes
38,631.83
42,000
(3,368.17)
8.02%
SUTA
1,257.41
1,200
57.41
-4.78%
Benefits
Health and Other Emp Insurance
84,472.26
89,000
(4,527.74)
5.09%
Company Ret Contributions
14,245.85
19,860
(5,614.15)
28.27%
Car Allowance
2,708.29
1,041
1,667.29
-160.16%
Contract Labor
1,925.50
2,000
(74.50)
3.73%
Payroll Processing Fees
3,623.80
4,000
(376.20)
9.41%
Subtotal Payroll Expenses
684,124.07
657,409
26,715.07
Office and Administrative Expenses
Office Expenses
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
Experience Fayetteville
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining %of
Budget
Office Supplies
2,060.09
3,500
(1,439.91)
41.14%
Office Equipment Leases
3,597.09
4,500
(902.91)
20.06%
Office Equipment Purchases
297.42
1,000
(702.58)
70.26%
Subscriptions
511.90
700
(188.10)
26.87%
Employee Relations
4,273.96
2,500
1,773.96
-70.96%
Training
1,525.00
1,500
25.00
-1.67%
Postage and Shipping
793.23
900
(106.77)
11.86%
Fees
Bank Service Charges
303.44
500
(196.56)
39.31%
Credit Card Fees
696.73
2,000
(1,303.27)
65.16%
Business Taxes and Licenses
2,471.04
2,800
(328.96)
11.75%
Accounting, Audit, & Legal Fees
Accounting Fees
9,000.00
12,000
(3,000.00)
25.00%
Audit Fees
20,000.00
21,000
(1,000.00)
4.76%
Legal Fees
2,889.60
2,500
389.60
-15.58%
Collection Expense
60,178.94
47,980
12,198.94
-25.43%
Travel
Lodging
5,070.28
6,000
(929.72)
15.50%
Mileage
468.41
800
(331.59)
41.45%
Transportation
2,304.39
3,500
(1,195.61)
34.16%
Meals Out of Town
1,130.49
2,800
(1,669.51)
59.63%
IT Expenses
Computer Hardware
6,202.37
5,252
950.37
-18.10%
Software Purchases and Subs
20,398.71
18,000
2,398.71
-13.33%
IT Support and Consulting
45,986.36
36,800
9,186.36
-24.96%
Insurance
Insurance - Building & Contents
11,878.00
11,800
78.00
-0.66%
Insurance - W/C
1,148.00
1,400
(252.00)
18.00%
Facilities
Rent
960.00
120
840.00
-700.00%
Internet/Telephone
13,363.19
13,600
(236.81)
1.74%
Utilities
Electric
7,278.33
7,177
101.33
-1.41%
Gas
1,586.65
660
0.00
-140.40%
Water
1,369.05
1,400
(30.95)
2.21%
Repairs and Maintenance
24,726.12
10,000
14,726.12
-147.26%
Janitorial Supplies
999.04
3,500
(2,500.96)
71.46%
Maintenance Contracts
2,789.05
2,000
789.05
-39.45%
FFE & Improvements
1,163.56
10,000
(8,836.44)
88.36%
Subtotal Office and Administrative Expenses
257,420.44
238,189
18,304.79
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
Experience Fayetteville
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining %of
Budget
Other Expenses
Bond Payments
701,098.04
707,000
(5,901.96)
Grants Awarded
Current Year Spring
65,440.00
70,000
(4,560.00)
6.51%
TheatreSquared Contribution
200,000.00
200,000
0.00
0.00%
Cyclocross Events
0.00
0
0.00
Total Other Expenses
966,538.04
977,000
(10,461.96)
0.01
Total Operating Expenses
2,591,737.65
2,529,388
71,884.96
Net Income/(Loss) Before Other Revenue and Expenses
707,257.24
516,988
34,050.41
Other Income
Unrealized Gain/(Loss) on Investments
(60,777.42)
Total Other Income
(60,777.42)
Other Expenses
Depreciation Expense
78,541.66
Cost of Goods Sold
(5,072.38)
Bad Debt Expense
852.88
0
852.88
-100.00%
Total Other Expenses
74,322.16
0
74,322.16
Net Income/(Loss) (without Cyclocross Grants)
572,157.66
516,988
(40,271.75)
Unrealized Gain/(Loss) on Investments
Net Income/(Loss) Without Cyclocross Events
Net Income/(Loss) for Cyclocross Events
Total Net Income/(Loss)
Changes to Assets and Capital Improvements
Expenditures Reclassified to Fixed Assets
5,748.42
5,748
Construction in Progress Capitalized
Total Additions to Fixed Assets
5,748.42
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
Town Center
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining %of
Budget
Revenue
Hotel, Motel, Restaurant Taxes Revenue
CY HMR Taxes
PY H MR Taxes
Subtotal Hotel, Motel, Restaurant Taxes Revenue
Rental Revenue
Facility Rental
110,400.38
160,000
(49,599.62)
31.00%
Rental Items
15,907.77
24,000
(8,092.23)
33.72%
Alcohol Sales
29,631.09
55,000
(25,368.91)
46.13%
Rental Services
24,430.00
40,000
(15,570.00)
38.93%
Subtotal Rental Revenue
180,369.24
279,000
(98,630.76)
Event Revenue
First Thursday Income
LOTO Income
Other Event Income
5,282.84
0
5,282.84
-100.00%
Subtotal Event Revenue
5,282.84
0
5,282.84
Clinton House Museum Revenue
Museum Store Sales
Admission Revenue
Donations
Membership
Subtotal Clinton House Museum Revenue
Visitor Center Store Revenue
Visitor Store Sales
Regular Store Sales
Consignment Sales
Subtotal Visitor Center Revenue
Parking Revenue
Parking Machine Revenue
5,879.50
10,000
(4,120.50)
41.21%
Parking Lease Revenue
14,450.00
13,800
650.00
-4.71%
Subtotal Parking Revenue
20,329.50
23,800
(3,470.50)
Advertising Revenue
Visitor Guide Ad Income
Banner Income
Subtotal Advertising Revenue
Other Revenue
Other Revenue
697.25
0
697.25
-100.00%
WFF Cycling Coordinator Grant
WFF Cyclocross Grant
Cyclocross Grant Funds
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
Town Center
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining %of
Budget
Cyclocross Events Revenue
Cultural Arts Corridor
Clinton House Museum Grants
Cares Act Grant
Subtotal Other Revenue
697.25
0
697.25
Interest and Investment Revenue
Investment Account Interest
Checking Account Interest
2,453.62
3,000
(546.38)
18.21%
Subtotal Interest and Investment Revenue
2,453.62
3,000
(546.38)
Total Revenue
209,132.45
305,800
(96,667.55)
Expenses
Operating Expenses
Rental Expenses
Facility Rental Expenses
0
0.00
100.00
Linens
4,261.87
9,500
(5,238.13)
55.14%
Alcohol & Bar Supply Expenses
Alcohol
5,215.91
24,000
(18,784.09)
78.27%
Bar Supply Expenses
1,265.27
5,000
(3,734.73)
74.69%
Rental Services
5,799.00
15,000
(9,201.00)
61.34%
Subtotal Rental Expenses
16,542.05
53,500
(36,957.95)
Event Expenses
First Thursday Expenses
LOTO Expenses
Other Event Expenses
2,564.39
0
2,564.39
-100.00%
Subtotal Event Expenses
2,564.39
0
2,564.39
Clinton House Museum
Other Event Expenses
Museum Store Expenses
Goods for Sale
Store Supplies
Programs
Group Visits
Honoraria
General Program
First Ladies Garden
Exhibit Expenses
Fundraising
Subtotal Clinton House Museum
Visitor Center Store
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
Town Center
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining %of
Budget
Goods for Sale
Store Supplies
Consignment Expenses
Subtotal Visitor Center Store
Marketing Expenses
Advertising Expense
Agency Advertising
Non -Agency Advertising
260.51
3,000
(2,739.49)
-100.00%
Agency Fees
Promotion
Promotion Expenses
2,750.37
8,500
(5,749.63)
67.64%
Signage-Tourism
Banners
Printing
Visitors Guide Expense
Other Brochures
0.00
2,100
(2,100.00)
100.00%
Website
224.99
800
(575.01)
71.88%
Mailings
Sales and Development
Promotional Items
176.33
2,500
(2,323.67)
92.95%
Groups
Sports
Meetings
Memberships
1,442.50
2,350
(907.50)
38.62%
Tourism & Client Development
180.38
4,000
(3,819.62)
95.49%
Subtotal Marketing Expenses
5,035.08
23,250
(18,214.92)
Payroll
Wages Expense
247,674.73
260,202
(12,527.27)
4.81%
Payroll Tax Expense
Federal (941) Payroll Taxes
18,011.31
21,000
(2,988.69)
14.23%
SUTA
940.70
1,200
(259.30)
21.61%
Benefits
Health and Other Emp Insurance
28,188.53
35,421
(7,232.47)
20.42%
Company Ret Contributions
5,452.92
7,500
(2,047.08)
27.29%
Car Allowance
Contract Labor
10,661.20
31,000
(20,338.80)
65.61%
Payroll Processing Fees
2,280.71
2,500
Subtotal Payroll Expenses
313,210.10
358,823
(45,393.61)
Office and Administrative Expenses
Office Expenses
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
Town Center
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining %of
Budget
Office Supplies
1,814.29
5,100
(3,285.71)
64.43%
Office Equipment Leases
2,389.88
3,700
(1,310.12)
35.41%
Office Equipment Purchases
207.52
800
(592.48)
74.06%
Subscriptions
0.00
200
(200.00)
100.00%
Employee Relations
172.08
2,000
(1,827.92)
91.40%
Training
296.55
3,500
(3,203.45)
91.53%
Postage and Shipping
176.63
350
(173.37)
49.53%
Fees
Bank Service Charges
Credit Card Fees
1,440.44
4,100
(2,659.56)
64.87%
Business Taxes and Licenses
7,423.27
12,200
(4,776.73)
39.15%
Accounting, Audit, & Legal Fees
Accounting Fees
Audit Fees
Legal Fees
Collection Expense
Travel
Lodging
0.00
750
(750.00)
100.00%
Mileage
118.45
250
(131.55)
52.62%
Transportation
171.29
700
(528.71)
75.53%
Meals Out of Town
27.74
300
(272.26)
90.75%
IT Expenses
Computer Hardware
(2,466.78)
6,000
(8,466.78)
141.11%
Software Purchases and Subs
7,629.18
6,800
829.18
-12.19%
IT Support and Consulting
2,460.00
1,800
660.00
-36.67%
Insurance
Insurance - Building & Contents
3,179.00
2,850
329.00
-11.54%
Insurance - W/C
Facilities
Rent
24,000.00
24,000
0.00
0.00%
Internet/Telephone
16,913.19
17,680
(766.81)
4.34%
Utilities
Electric
52,985.67
60,100
(7,114.33)
11.84%
Gas
10,178.42
11,400
(1,221.58)
10.72%
Water
6,848.18
11,700
(4,851.82)
41.47%
Repairs and Maintenance
25,170.15
47,015
(21,844.85)
46.46%
Janitorial Supplies
17,204.48
30,000
(12,795.52)
42.65%
Maintenance Contracts
36,243.50
37,000
(756.50)
2.04%
FFE & Improvements
213.63
(487)
700.63
143.87%
Subtotal Office and Administrative Expenses
214,796.76
289,808
(75,011.24)
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
Town Center
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining %of
Budget
Other Expenses
Bond Payments
Grants Awarded
Current Year Spring
TheatreSquared Contribution
Cyclocross Events
Total Other Expenses
0.00
0
0.00
0.00
Total Operating Expenses
552,148.38
725,381
(173,013.33)
Net Income/(Loss) Before Other Revenue and Expenses
(343,015.93)
(419,581)
76,345.78
Other Income
Unrealized Gain/(Loss) on Investments
Total Other Income
Other Expenses
Depreciation Expense
69,788.92
Cost of Goods Sold
Bad Debt Expense
Total Other Expenses
69,788.92
0
69,788.92
Net Income/(Loss) (without Cyclocross Grants)
(412,804.85)
(419,581)
6,556.86
Unrealized Gain/(Loss) on Investments
Net Income/(Loss) Without Cyclocross Events
Net Income/(Loss) for Cyclocross Events
Total Net Income/(Loss)
Changes to Assets and Capital Improvements
Expenditures Reclassified to Fixed Assets
108,471.44
108,472
Construction in Progress Capitalized
77,693.23
Total Additions to Fixed Assets
186,164.67
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
Clinton House
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining %of
Budget
Revenue
Hotel, Motel, Restaurant Taxes Revenue
CY HMR Taxes
PY H MR Taxes
Subtotal Hotel, Motel, Restaurant Taxes Revenue
Rental Revenue
Facility Rental
Rental Items
Alcohol Sales
Rental Services
Subtotal Rental Revenue
Event Revenue
First Thursday Income
LOTO Income
Other Event Income
0.00
600
(600.00)
100.00%
Subtotal Event Revenue
0.00
600
(600.00)
Clinton House Museum Revenue
Museum Store Sales
3,079.67
2,700
379.67
-14.06%
Admission Revenue
0.00
0
0.00
Donations
2,120.01
5,000
(2,879.99)
57.60%
Membership
Subtotal Clinton House Museum Revenue
5,199.68
7,700
(2,500.32)
Visitor Center Store Revenue
Visitor Store Sales
Regular Store Sales
Consignment Sales
Subtotal Visitor Center Revenue
Parking Revenue
Parking Machine Revenue
Parking Lease Revenue
Subtotal Parking Revenue
Advertising Revenue
Visitor Guide Ad Income
Banner Income
Subtotal Advertising Revenue
Other Revenue
Other Revenue
350.00
0
350.00
-100.00%
WFF Cycling Coordinator Grant
WFF Cyclocross Grant
Cyclocross Grant Funds
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
Clinton House
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining %of
Budget
Cyclocross Events Revenue
Cultural Arts Corridor
Clinton House Museum Grants
3,000.00
0
3,000.00
-100.00%
Cares Act Grant
Subtotal Other Revenue
3,350.00
0
3,350.00
Interest and Investment Revenue
Investment Account Interest
Checking Account Interest
28.75
0
28.75
-100.00%
Subtotal Interest and Investment Revenue
28.75
0
28.75
Total Revenue
8,578.43
8,300
278.43
Expenses
Operating Expenses
Rental Expenses
Facility Rental Expenses
Linens
Alcohol & Bar Supply Expenses
Alcohol
Bar Supply Expenses
Rental Services
Subtotal Rental Expenses
Event Expenses
First Thursday Expenses
LOTO Expenses
Other Event Expenses
Subtotal Event Expenses
Clinton House Museum
Other Event Expenses
2,854.40
3,500
(645.60)
18.45%
Museum Store Expenses
Goods for Sale
3,252.77
4,500
(1,247.23)
27.72%
Store Supplies
504.28
650
(145.72)
22.42%
Programs
Group Visits
0.00
500
(500.00)
100.00%
Honoraria
750.00
500
250.00
-100.00%
General Program
134.10
1,000
(865.90)
-100.00%
First Ladies Garden
13,129.48
13,000
129.48
-1.00%
Exhibit Expenses
4,910.65
5,000
(89.35)
1.79%
Fundraising
2,529.50
2,530
(0.50)
0.02%
Subtotal Clinton House Museum
28,065.18
31,180
(3,114.82)
Visitor Center Store
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
Clinton House
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining %of
Budget
Goods for Sale
Store Supplies
Consignment Expenses
Subtotal Visitor Center Store
Marketing Expenses
Advertising Expense
Agency Advertising
Non -Agency Advertising
3,331.98
5,000
(1,668.02)
33.36%
Agency Fees
Promotion
Promotion Expenses
0.00
300
(300.00)
100.00%
Signage-Tourism
Banners
Printing
Visitors Guide Expense
Other Brochures
111.66
2,000
(1,888.34)
94.42%
Website
926.57
700
226.57
-32.37%
Mailings
Sales and Development
Promotional Items
0.00
500
(500.00)
100.00%
Groups
Sports
Meetings
0.00
100
(100.00)
100.00%
Memberships
742.70
550
192.70
-35.04%
Tourism & Client Development
0.00
100
(100.00)
100.00%
Subtotal Marketing Expenses
5,112.91
9,250
(4,137.09)
Payroll
Wages Expense
74,565.97
80,249
(66,123.88)
7.08%
Payroll Tax Expense
Federal (941) Payroll Taxes
5,547.66
6,200
(652.34)
10.52%
SUTA
151.44
200
(48.56)
24.28%
Benefits
Health and Other Emp Insurance
9,617.47
10,642
(1,024.53)
9.63%
Company Ret Contributions
1,647.27
1,963
(315.73)
16.08%
Car Allowance
Contract Labor
1,754.18
700
1,054.18
-150.60%
Payroll Processing Fees
143.50
175
(31.50)
18.00%
Subtotal Payroll Expenses
93,427.49
100,129
(67,142.36)
Office and Administrative Expenses
Office Expenses
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
Clinton House
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining %of
Budget
Office Supplies
613.63
1,000
(386.37)
38.64%
Office Equipment Leases
Office Equipment Purchases
596.69
Subscriptions
13.16
200
(186.84)
93.42%
Employee Relations
53.35
200
(146.65)
73.33%
Training
411.23
1,700
(1,288.77)
75.81%
Postage and Shipping
403.13
150
253.13
-168.75%
Fees
Bank Service Charges
208.50
250
(41.50)
16.60%
Credit Card Fees
657.40
800
(142.60)
17.83%
Business Taxes and Licenses
Accounting, Audit, & Legal Fees
Accounting Fees
Audit Fees
2,100.00
3,000
(900.00)
100.00%
Legal Fees
Collection Expense
Travel
Lodging
1,354.32
1,400
(45.68)
3.26%
Mileage
124.20
300
(175.80)
58.60%
Transportation
574.59
600
(25.41)
4.24%
Meals Out of Town
369.90
500
(130.10)
26.02%
IT Expenses
Computer Hardware
82.37
4,000
(3,917.63)
97.94%
Software Purchases and Subs
369.46
600
(230.54)
38.42%
IT Support and Consulting
Insurance
Insurance - Building & Contents
390.00
350
40.00
-11.43%
Insurance - W/C
Facilities
Rent
16,260.00
15,600
660.00
-4.23%
Internet/Telephone
2,942.56
2,800
142.56
-5.09%
Utilities
Electric
872.27
1,200
(327.73)
27.31%
Gas
1,031.69
1,000
31.69
-3.17%
Water
1,943.76
2,400
(456.24)
19.01%
Repairs and Maintenance
428.27
4,000
(3,571.73)
89.29%
Janitorial Supplies
1,707.54
2,000
(292.46)
14.62%
Maintenance Contracts
263.40
500
(236.60)
47.32%
HE & Improvements
Subtotal Office and Administrative Expenses
33,771.42
44,550
(11,375.27)
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
Clinton House
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining %of
Budget
Other Expenses
Bond Payments
Grants Awarded
Current Year Spring
TheatreSquared Contribution
Cyclocross Events
Total Other Expenses
0.00
0
0.00
Total Operating Expenses
160,377.00
185,109
(85,769.54)
Net Income/(Loss) Before Other Revenue and Expenses
(151,798.57)
(176,809)
86,047.97
Other Income
Unrealized Gain/(Loss) on Investments
Total Other Income
Other Expenses
Depreciation Expense
Cost of Goods Sold
4,629.36
Bad Debt Expense
Total Other Expenses
4,629.36
0
4,629.36
Net Income/(Loss) (without Cyclocross Grants)
(156,427.93)
(176,809)
81,418.61
Unrealized Gain/(Loss) on Investments
Net Income/(Loss) Without Cyclocross Events
Net Income/(Loss) for Cyclocross Events
Total Net Income/(Loss)
Changes to Assets and Capital Improvements
Expenditures Reclassified to Fixed Assets
Construction in Progress Capitalized
Total Additions to Fixed Assets
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
Cyclocross Events
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining %of
Budget
Revenue
Hotel, Motel, Restaurant Taxes Revenue
CY HMR Taxes
PY H MR Taxes
Subtotal Hotel, Motel, Restaurant Taxes Revenue
Rental Revenue
Facility Rental
Rental Items
Alcohol Sales
Rental Services
Subtotal Rental Revenue
Event Revenue
First Thursday Income
LOTO Income
Other Event Income
Subtotal Event Revenue
Clinton House Museum Revenue
Museum Store Sales
Admission Revenue
Donations
Membership
Subtotal Clinton House Museum Revenue
Visitor Center Store Revenue
Visitor Store Sales
Regular Store Sales
Consignment Sales
Subtotal Visitor Center Revenue
Parking Revenue
Parking Machine Revenue
Parking Lease Revenue
Subtotal Parking Revenue
Advertising Revenue
Visitor Guide Ad Income
Banner Income
Subtotal Advertising Revenue
Other Revenue
Other Revenue
WFF Cycling Coordinator Grant
WFF Cyclocross Grant
Cyclocross Grant Funds
353,196.00
540,736
(187,540.00)
34.68%
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
Cyclocross Events
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining %of
Budget
Cyclocross Events Revenue
7,500.00
0
7,500.00
0.00%
Cultural Arts Corridor
Clinton House Museum Grants
Cares Act Grant
Subtotal Other Revenue
360,696.00
540,736
(180,040.00)
Interest and Investment Revenue
Investment Account Interest
Checking Account Interest
1,737.04
0
1,737.04
-100.00%
Subtotal Interest and Investment Revenue
1,737.04
0
1,737.04
Total Revenue
362,433.04
540,736
(178,302.96)
Expenses
Operating Expenses
Rental Expenses
Facility Rental Expenses
Linens
Alcohol & Bar Supply Expenses
Alcohol
Bar Supply Expenses
Rental Services
Subtotal Rental Expenses
Event Expenses
First Thursday Expenses
LOTO Expenses
Other Event Expenses
Subtotal Event Expenses
Clinton House Museum
Other Event Expenses
Museum Store Expenses
Goods for Sale
Store Supplies
Programs
Group Visits
Honoraria
General Program
First Ladies Garden
Exhibit Expenses
Fundraising
Subtotal Clinton House Museum
Visitor Center Store
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
Cyclocross Events
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining %of
Budget
Goods for Sale
Store Supplies
Consignment Expenses
Subtotal Visitor Center Store
Marketing Expenses
Advertising Expense
Agency Advertising
Non -Agency Advertising
Agency Fees
Promotion
Promotion Expenses
1,958.62
0
1,958.62
100.00%
Signage-Tourism
Banners
Printing
Visitors Guide Expense
Other Brochures
Website
Mailings
Sales and Development
Promotional Items
3,005.13
Groups
Sports
Meetings
Memberships
Tourism & Client Development
Subtotal Marketing Expenses
4,963.75
0
4,963.75
Payroll
Wages Expense
Payroll Tax Expense
Federal (941) Payroll Taxes
SUTA
Benefits
Health and Other Emp Insurance
Company Ret Contributions
Car Allowance
Contract Labor
Payroll Processing Fees
Subtotal Payroll Expenses
Office and Administrative Expenses
Office Expenses
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
Cyclocross Events
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining %of
Budget
Office Supplies
274.70
0
274.70
-100.00%
Office Equipment Leases
Office Equipment Purchases
Subscriptions
Employee Relations
Training
Postage and Shipping
93.00
Fees
Bank Service Charges
1,283.00
0
1,283.00
-100.00%
Credit Card Fees
Business Taxes and Licenses
Accounting, Audit, & Legal Fees
Accounting Fees
Audit Fees
Legal Fees
150.00
Collection Expense
Travel
Lodging
Mileage
Transportation
Meals Out of Town
IT Expenses
Computer Hardware
Software Purchases and Subs
IT Support and Consulting
Insurance
Insurance - Building & Contents
Insurance - W/C
Facilities
Rent
Internet/Telephone
Utilities
Electric
Gas
Water
Repairs and Maintenance
Janitorial Supplies
Maintenance Contracts
FFE & Improvements
Subtotal Office and Administrative Expenses
1,800.70
0
1,557.70
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ December 31, 2020
Cyclocross Events
Year -to -Date
Actual
Budget
Over/(Under)
Budget
Remaining %of
Budget
Other Expenses
Bond Payments
Grants Awarded
Current Year Spring
TheatreSquared Contribution
Cyclocross Events
346,431.55
540,736
(194,304.45)
35.93%
Total Other Expenses
346,431.55
540,736
(194,304.45)
Total Operating Expenses
353,196.00
540,736
6,521.45
Net Income/(Loss) Before Other Revenue and Expenses
9,237.04
0
(184,824.41)
Other Income
Unrealized Gain/(Loss) on Investments
Total Other Income
Other Expenses
Depreciation Expense
Cost of Goods Sold
Bad Debt Expense
Total Other Expenses
Net Income/(Loss) (without Cyclocross Grants)
9,237.04
0
(184,824.41)
Unrealized Gain/(Loss) on Investments
Net Income/(Loss) Without Cyclocross Events
Net Income/(Loss) for Cyclocross Events
Total Net Income/(Loss)
Changes to Assets and Capital Improvements
Expenditures Reclassified to Fixed Assets
0.00
0
0.00
Construction in Progress Capitalized
Total Additions to Fixed Assets
Memo
To: Molly Rawn, CEO, Fayetteville Advertising and Promotion Commission
Fayetteville Advertising and Promotion Commissioners
From: Jennifer Walker, VP Finance, Fayetteville Advertising and Promotion
Commission
Date: February 1, 2021
Re: 2020 Financial Audit Engagement Letter with BKD
Background:
Fayetteville Advertising and Promotion Commission contracted with BKD, LLP to perform audit
services for the years ending 2018 and 2019. This agreement including filing the IRS Form 990
for the Clinton House Museum.
The fee for auditing the 2020 financials is estimated to be $21,000 for the audit and $2,300 for
preparation of the Form 990. The 2021 operating budget allocated $24,000 for the audit and
$3,000 for the Form 990 preparation.
The 2020 engagement letter is attached for reference.
Recommendation:
The CEO recommends the commission vote to:
1. Authorize CEO Molly Rawn to execute an engagement letter with BKD, LLP for 2020 audit
services estimated at $23,300.
BKDLLp
CPAs & Advisors
III
December 31, 2020
Board of Commissioners
Ms. Molly Rawn, CEO
Fayetteville Advertising and Promotion Commission
21 South Block Avenue, Suite 100
Fayetteville, AR 72701
809 S. 52nd Street, Suite A 11 P.O. Box 189311 Rogers, AR 72757-1893
Q 479.845.027011 fax 479.845.084011 bkd.com
We are pleased to confirm the arrangements of our engagement and the nature of the services we
will provide to Fayetteville Advertising and Promotion Commission.
ENGAGEMENT OBJECTIVES AND SCOPE
We will audit the basic financial statements of Fayetteville Advertising and Promotion
Commission as of and for the year ended December 31, 2020, and the related notes to the
financial statements.
Our audit will be conducted with the objectives of -
Expressing an opinion on the conformity of your financial statements, in all material respects,
with accounting practices permitted by Arkansas Code Section 10-4-202, which is a regulatory
basis of accounting that differs from accounting principles generally accepted in the United
States of America
✓ Issuing a report on your compliance based on the audit of your financial statements.
✓ Issuing a report on your internal control over financial reporting based on the audit of your
financial statements.
OUR RESPONSIBILITIES
We will conduct our audit in accordance with auditing standards generally accepted in the United
States of America (GAAS) 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 rather than absolute
assurance about whether the financial statements are free of material misstatement, whether
caused by fraud or error.
Praxi fx�:
NEWER
GLOBAL ALLIANCE OF
1NOEPENOENT FIRMS
Board of Commissioners
Ms. Molly Rawn, CEO
Fayetteville Advertising and Promotion Commission
Page 2
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to error or fraud. 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.
Because of the inherent limitations of an audit, together with the inherent limitations of internal
control, an unavoidable risk that some material misstatements or noncompliance having a direct
and material effect may not be detected exists, even though the audit is properly planned and
performed in accordance with GAAS.
In making our risk assessments, we consider internal control relevant to the entity'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 entity's internal control. However, we will communicate to you in writing
concerning any significant deficiencies or material weaknesses in internal control relevant to the
audit of the financial statements that we have identified during the audit. Also, in the future,
procedures could become inadequate because of changes in conditions or deterioration in design
or operation. Two or more people may also circumvent controls, or management may override
the system.
We are available to perform additional procedures with regard to fraud detection and prevention
at your request, subject to completion of our normal engagement acceptance procedures. The
actual terms and fees of such an engagement would be documented in a separate letter to be
signed by you and BKD.
Cynthia Burns, Director is responsible for supervising the engagement and authorizing the
signing of the report or reports.
We will issue a written report upon completion of our audit of Fayetteville Advertising and
Promotion Commission's financial statements. Our report will be addressed to the Board of
Commissioners of Fayetteville Advertising and Promotion Commission. You are responsible to
distribute our reports to other officials who have legal oversight authority or those responsible
for acting on audit findings and recommendations, and to others authorized to receive such
reports. We cannot provide assurance that an unmodified opinion will be expressed.
Circumstances may arise in which it is necessary for us to modify our opinion, add an emphasis
of matter or other matter paragraph(s), or withdraw from the engagement. If we discover
conditions that may prohibit us from issuing a standard report, we will notify you as well. In
such circumstances, further arrangements may be necessary to continue our engagement.
Board of Commissioners
Ms. Molly Rawn, CEO
Fayetteville Advertising and Promotion Commission
Page 3
YOUR RESPONSIBILITIES
Our audit will be conducted on the basis that management acknowledges and understands that
they have responsibility:
1. For the preparation and fair presentation of the financial statements in accordance
with the regulatory basis of accounting permitted by the State of Arkansas;
2. 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;
3. For identifying and ensuring compliance with the laws, regulations, contracts and
grants applicable to your activities; and
4. To provide us with:
a. Access to all information of which management is aware that is relevant to the
preparation and fair presentation of the financial statements such as records,
documentation and other matters;
b. Additional information that we may request from management for the purpose
of the audit; and
c. Unrestricted access to persons within the entity from whom we determine it
necessary to obtain audit evidence.
As part of our audit process, we will request from management written confirmation
acknowledging certain responsibilities outlined in this engagement letter and confirming:
• The availability of this information
• Certain representations made during the audits for all periods presented
• The effects of any uncorrected misstatements, if any, resulting from errors or fraud
aggregated by us during the current engagement and pertaining to the latest period
presented are immaterial, both individually and in the aggregate, to the financial
statements taken as a whole
The results of our tests of compliance and internal control over financial reporting performed in
connection with our audit of the financial statements may not fully meet the reasonable needs of
report users. Management is responsible for obtaining audits, examinations, agreed -upon
procedures or other engagements that satisfy relevant legal, regulatory or contractual
requirements or fully meet other reasonable user needs.
Board of Commissioners
Ms. Molly Rawn, CEO
Fayetteville Advertising and Promotion Commission
Page 4
OTHER SERVICES
We will prepare the following return. If there are other tax returns you expect us to prepare,
please inform us as soon as possible.
Form 990, Return of Organization Exempt From Income Tax
You may be required to file returns in additional jurisdictions, and you are ultimately responsible
for meeting your filing requirements. We are not responsible for any returns other than those
listed above. However, we are available for consultation regarding your filing responsibilities.
Generally, all U.S. persons are required to file FinCEN Form 114, Report of Foreign Bank and
Financial Accounts (FBAR), annually if they have a financial interest in or signature authority
over, financial accounts, including bank, securities or other types of financial accounts in a
foreign country and the aggregate value of these financial accounts exceeded $10,000 at any time
during the calendar year. Failure to file an FBAR when required may potentially result in civil
penalties, criminal penalties or both. We have not been engaged to prepare your FBAR.
However, we are available to assist you in meeting this filing obligation at your request. If you
wish to engage us to assist with your FBAR filing, additional fees at our standard billing rates
will apply. It is your responsibility to inform us of all financial interests in or signature authority
over foreign financial accounts.
Management has the final responsibility for the income tax returns and representations therein
and, therefore, should review them carefully before signing. Management is also responsible for
timely filing of returns and timely payment of any amounts due.
It is your responsibility to provide all the information required for the preparation of complete
and accurate returns. You should retain all the documents, canceled checks and other data that
form the basis of income and deductions. These may be necessary to prove the accuracy and
completeness of your returns to a taxing authority.
Your returns may be selected for review by the taxing authorities. Any proposed adjustments by
the examining agent are subject to certain rights of appeal. In the event of such government tax
examination, we will be available upon request to assist you and will render additional invoices
for the time and expenses incurred.
While preparing your returns, we will inform you of any material tax positions of which we are
aware that, in our judgment, do not meet thresholds established by law or professional standards.
Tax law or professional standards may require disclosure of such position(s) as a part of your
federal tax return. You agree to inform us of any tax positions of which you are aware would
likely not succeed in the event of a challenge by taxing authorities.
Board of Commissioners
Ms. Molly Rawn, CEO
Fayetteville Advertising and Promotion Commission
Page 5
The law provides for a penalty as high as $200,000 per transaction for failure to adequately
disclose certain transactions the U.S. Department of Treasury designates as "reportable
transactions." A description of these transactions is available at https://www.bkd.com/services/
reportable -transactions, or you may request a paper version from us. Unless notified in writing,
we will prepare your return with the assumption you have not engaged in any reportable
transaction.
This engagement does not include any tax services not specifically stated above. However, we
would be pleased to research and/or consult with you regarding other income tax matters, such as
proposed or completed transactions or income tax projections. We will render additional
invoices for such services at our standard billing rates.
We will provide you with the following nonattest services:
• Preparing a draft of the financial statements and related notes
In addition, we may perform other services for you not covered by this engagement letter. You
agree to assume full responsibility for the substantive outcomes of the services described above
and for any other services that we may provide, including any findings that may result. You also
acknowledge that those services are adequate for your purposes and that you will establish and
monitor the performance of those services to ensure that they meet management's objectives.
Any and all decisions involving management responsibilities related to those services will be
made by you, and you accept full responsibility for such decisions. We understand that you will
designate a management -level individual to be responsible and accountable for overseeing the
performance of those services, and that you will have determined this individual is qualified to
conduct such oversight.
ENGAGEMENT FEES
Our fees will be $21,000 for the audit and $2,200 for the preparation of the Form 990.
Our fees do not consider additional efforts related to the SARS-CoV-2 virus and the incidence of
COVID-19 environment and the impact of accounting and auditing issues such as going concern,
collectibility of receivables, inventory valuation, compliance with debt agreements. Such
amounts will be billed based on time expended.
Our pricing for this engagement and our fee structure are based upon the expectation that our
invoices will be paid promptly. We will issue progress billings during the course of our
engagement, and payment of our invoices is due upon receipt. Interest will be charged on any
unpaid balance after 30 days at the rate of 10% per annum, or as allowed by law at the earliest
date thereafter, and highest applicable rate if less than 10%.
Board of Commissioners
Ms. Molly Rawn, CEO
Fayetteville Advertising and Promotion Commission
Page 6
Our engagement fee does not include any time for post -engagement consultation with your
personnel or third parties, consent letters and related procedures for the use of our reports in
offering documents, inquiries from regulators or testimony or deposition regarding any
subpoena. Charges for such services will be billed separately.
Our fees may also increase if our duties or responsibilities are increased by rulemaking of any
regulatory body or any additional new accounting or auditing standards.
If our invoices for this or any other engagement you may have with BKD are not paid within 30
days, we may suspend or terminate our services for this or any other engagement. In the event
our work is suspended or terminated as a result of nonpayment, you agree we will not be
responsible for any consequences to you.
OTHER ENGAGEMENT MATTERS AND LIMITATIONS
BKD is not acting as your municipal advisor under Section 15B of the Securities Exchange Act
of 1934, as amended. As such, BKD is not recommending any action to you and does not owe
you a fiduciary duty with respect to any information or communications regarding municipal
financial products or the issuance of municipal securities. You should discuss such information
or communications with any and all internal or external advisors and experts you deem
appropriate before acting on any such information or material provided by BKD.
Our workpapers and documentation retained in any form of media for this engagement are the
property of BKD. We can be compelled to provide information under legal process. In addition,
we may be requested by regulatory or enforcement bodies to make certain workpapers available
to them pursuant to authority granted by law or regulation. You agree that we have no legal
responsibility to you in the event we provide such documents or information.
You agree to indemnify and hold harmless BKD and its personnel from any claims, liabilities,
costs and expenses relating to our services under this agreement attributable to false or
incomplete representations by management, except to the extent determined to have resulted
from the intentional or deliberate misconduct of BKD personnel.
You agree that any dispute regarding this engagement will, prior to resorting to litigation, be
submitted to mediation upon written request by either party. Both parties agree to try in good
faith to settle the dispute in mediation. The American Arbitration Association will administer
any such mediation in accordance with its Commercial Mediation Rules. The results of the
mediation proceeding shall be binding only if each of us agrees to be bound. We will share any
costs of mediation proceedings equally.
Board of Commissioners
Ms. Molly Rawn, CEO
Fayetteville Advertising and Promotion Commission
Page 7
Either of us may terminate these services at any time. Both of us must agree, in writing, to any
future modifications or extensions. If services are terminated, you agree to pay us for time
expended to date. In addition, you will be billed travel costs and fees for services from other
professionals, if any, as well as an administrative fee of 4% to cover items such as copies,
postage and other delivery charges, supplies, technology -related costs such as computer
processing, software licensing, research and library databases and similar expense items.
If any provision of this agreement is declared invalid or unenforceable, no other provision of this
agreement is affected and all other provisions remain in full force and effect.
This engagement letter represents the entire agreement regarding the services described herein
and supersedes all prior negotiations, proposals, representations or agreements, written or oral,
regarding these services. It shall be binding on heirs, successors and assigns of you and BKD.
We may from time to time utilize third -party service providers, e.g., domestic software
processors or legal counsel, or disclose confidential information about you to third -party service
providers in serving your account. We remain committed to maintaining the confidentiality and
security of your information. Accordingly, we maintain internal policies, procedures and
safeguards to protect the confidentiality of your information. In addition, we will secure
confidentiality agreements with all service providers to maintain the confidentiality of your
information. In the event we are unable to secure an appropriate confidentiality agreement, you
will be asked to provide your consent prior to the sharing of your confidential information with
the third -parry service provider.
You agree to assume full responsibility for maintaining your original data and records and that
BKD has no responsibility to maintain this information. You agree you will not rely on BKD to
provide hosting, electronic security or backup services, e.g., business continuity or disaster
recovery services, to you unless separately engaged to do so. You understand that your access to
data, records and information from BKD's servers, i.e., BKDconnect, can be terminated at any
time and you will not rely on using this to host your data and records.
We will, at our discretion or upon your request, deliver financial or other confidential
information to you electronically via email or other mechanism. You recognize and accept the
risk involved, particularly in email delivery as the internet is not necessarily a secure medium of
communication as messages can be intercepted and read by those determined to do so.
You agree you will not modify these documents for internal use or for distribution to third
parties. You also understand that we may on occasion send you documents marked as draft and
understand that those are for your review purpose only, should not be distributed in any way and
should be destroyed as soon as possible.
Board of Commissioners
Ms. Molly Rawn, CEO
Fayetteville Advertising and Promotion Commission
Page 8
The entity may wish to include our report on these financial statements in an exempt offering
document. The entity agrees that the aforementioned auditor's report, or reference to our firm,
will not be included in any such offering document without notifying us. Any agreement to
perform work in connection with an exempt offering document, including providing agreement
for the use of the auditor's report in the exempt offering document, will be a separate
engagement.
Any exempt offering document issued by the entity with which we are not involved will clearly
indicate that we are not involved by including a disclosure such as, "BKD, LLP, our independent
auditor, has not been engaged to perform and has not performed, since the date of its report
included herein, any procedures on the financial statements addressed in that report. BKD, LLP,
also has not performed any procedures relating to this offering document."
You agree to notify us if you desire to place these financial statements or our report thereon
along with other information, such as a report by management or those charged with governance
on operations, financial summaries or highlights, financial ratios, etc., on an electronic site. You
recognize that we have no responsibility as auditors to review information contained in
electronic sites.
Any time you intend to reference our firm name in any manner in any published materials,
including on an electronic site, you agree to provide us with draft materials for our review and
approval before publishing or posting such information.
BKD is a registered limited liability partnership under Missouri law. Under applicable
professional standards, partners of BKD, LLP have the same responsibilities as do partners in a
general accounting and consulting partnership with respect to conformance by themselves and
other professionals in BKD with their professional and ethical obligations. However, unlike the
partners in a general partnership, the partners in a registered limited liability partnership do not
have individual civil liability, directly or indirectly, including by way of indemnification,
contribution, assessment or otherwise, for any debts, obligations or liabilities of or chargeable to
the registered limited liability partnership or each other, whether arising in tort, contract or
otherwise.
Government Auditing Standards require that we provide you with a copy of our most recent
external peer review report and any letter of comment, and any subsequent peer review reports
and letters of comment received during the period of the contract. Our most recent peer review
report accompanies this letter.
Board of Commissioners
Ms. Molly Rawn, CEO
Fayetteville Advertising and Promotion Commission
Page 9
Please sign and return the attached copy of this letter to indicate your acknowledgement of, and
agreement with, the arrangements for our audit of the financial statements including our
respective responsibilities. If the signed copy you return to us is in electronic form, you agree
that such copy shall be legally treated as a "duplicate original" of this agreement.
BKD, LLP
Acknowledged and agreed to on behalf of
FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
M.
Molly Rawn - CEO
DATE
Memo
To: Molly Rawn, CEO, Fayetteville Advertising and Promotion Commission
Fayetteville Advertising and Promotion Commissioners
From: Jennifer Walker, VP Finance, Fayetteville Advertising and Promotion
Commission
Date: February 2, 2021
Re: Paycheck Protection Program (PPP) Loan and Forgiveness Program
Background:
In April 2020, the US Small Business Administration (SBA) and the US Department of Treasury
were authorized under the Paycheck Protection Program (PPP) Loan and Forgiveness
program to provide loans to small businesses at very low interest rates in order to cover basic
operating costs primarily focused on payroll costs. Other authorized expenditures include rent,
mortgage, and utility payments.
The Advertising and Promotion Commission was not included in the original definition of
businesses for which this loan program was available. On December 27, 2020 the Economic
Aid to Hard Hit Small Businesses, Nonprofits, and Venues Act was enacted, revising certain
PPP requirements, and extending the authority to make loans through March 31, 2021.
This new act enables our organization to participate in the original program (not to be confused
with the "second draw" program also happening).
Experience Fayetteville staff have calculated that our organization could request a loan amount
up to approximately $246,000 through the SBA loan program. These funds would be used to
cover current payroll costs, with any extra available funds going towards rent and utilities
payments. These funds cannot and would not be used for any marketing or operations
activities.
Staff proposes applying for the loan through our existing operating bank — First Security Bank.
This is the most expedient route for loan approval, and many banks require an existing
customer relationship in order to apply for the SBA loan.
This loan would be forgivable in part, or in whole, through the PPP Loan Forgiveness Program.
The guidelines have fluctuated since December 27 and are still changing. Because our
organization made severe reductions to staff due to closures, we would be able to get a portion
of the loan forgiven and could apply under "Safe Harbors" for the remaining amount forgiven.
But, this is not a guarantee.
There are strong advocacy actions happening now to encourage complete forgiveness of the
loans for organizations of our type, but we do not know what the outcome of these actions will
be.
If the loan were not 100% forgiven, the interest rate would be very low at 1 % interest over five
years. The organization is in a position to pay back any unforgiven loan amount, and we
believe it prudent to proceed with the loan application while continuing to monitor the advocacy
actions happening and changes to the guidance as it is issued.
Recommendation:
Given the tight deadlines for application, staff recommends the commission vote to:
1. Authorize CEO Molly Rawn to apply for the SBA/PPP Loan program in an amount not to
exceed $246,000 through First Security Bank.
2. To proceed with the Loan Forgiveness program application process once funds are
received.
Memo
To: Molly Rawn, CEO, Fayetteville Advertising and Promotion Commission;
Fayetteville Advertising and Promotion Commissioners
From: Tyler Wilson, General Manager, Fayetteville Town Center
Miletus Callahan-Barile, Facilities Manager, Fayetteville Town Center
Date: January 28, 2021
Re: Airwall Repair and Refinish at Fayetteville Town Center
Background:
The Fayetteville Town Center must repair and refinish the vinyl coverage and internal
functioning equipment within the meeting room airwalls. Our airwalls are high quality
but original to the building. Full replacement would cost closer to $400,000; this repair
will extend the life of our current walls for several years.
Due to this specialized equipment's nature and the lack of technicians within this
area, two additional bids were not requested for The Fayetteville Town Center project.
The repair requires technicians with the appropriate certifications to service the
product and West Pro Construction meets this threshold.
This is one of the capital improvements presented in the 2021 budget.
The quote outlining the project's full scope and itemized cost is attached.
Recommendation:
Authoroze the CEO to accept the quote provided by West Pro Construction in the
amount of $75,785.
WestPro
CONSTRUCTION SOLUTIONS
Formerly Western Fireproofing Co.
PROJECT: Fayetteville Town Center Dec. 28, 2020
Fayetteville, AR
OPERABLE PANEL PARTITIONS:
WE OFFER TO REFINISH, SERVICE AND REPAIR THE EXISTING OPERBLE PARTITIONS IN THE
MEETING ROOM. 1 run @ 105' x 24', two runs @ 50' x 24' including storage pocket doors approx.
THIS WORK TO INCLUDE;
-Existing panels and storage pocket doors to be recovered with heavy duty vinyl wall covering. Owner to select
from numerous colors and patterns
-Panels to be adjusted, leveled and plumb
-Any loose trim, hinges etc. to be adjusted to as new condition as possible
-Track to be cleaned and lightly lubricated
-Repair up to three panic hardware sets
-Replace up to 4 carriers if necessary
-Replace up to 20 escutcheons
-Replace up to 4 complete rubber bullnoses
-Repair up to 10 mechanical bottom seals
WE QUOTE THE SUM OF...........................................including tax ................... $ 75,785.00
Notes
-Quote is valid for work to be done first quarter 2021
-All work to be done during normal working hours M-F. Overtime, weekend or holiday work is not included.
-Owner to provide one electrically operated man lift for our use
WestPro Construction Services
David Sullivan
816-744-8476
davida,westproconstruction.com
Accepted by:
signature
name and title
phone and address
for invoicing
816.561.7667 ��
WestProConstruction.com 2850 Fairfax Trafficwav Kansas City, KS 66115
Memo
To: Molly Rawn, CEO, Fayetteville Advertising and Promotion Commission;
Fayetteville Advertising and Promotion Commissioners
From: Tyler Wilson, General Manager, Fayetteville Town Center
Miletus Callahan-Barile, Facilities Manager, Fayetteville Town Center
Date: January 28, 2021
Re: RTU 4 Unit Replacement at Fayetteville Town Center
Background:
The Fayetteville Town Center must replace an HVAC unit due to age; further repair would not
be prudent.
The quote from Multi -Craft Contractors includes complete install of the new RTU 4 Unit and
removal of the malfunctioning unit. Two additional bids were not requested due to the existing
Preventative Maintenance contract between The Fayetteville Town Center and Multi -craft
Contractors, approved by the commission in 2019.
The quote from Multi -Craft Contractors outlining the project's full scope and itemized costs and
the contract is attached.
This purchase is included in the 2021 budget as a capital improvement.
Recommendation:
Authorize the CEO to accept the quote for $21,834 from Multi -Craft Contractors for
replacement of RTU 4.
January 5, 2021
Fay. Town Center
15 W Mountain Street
Fayetteville, AR 72701
RE: RTU 4 Replacement
MCC _'11
MULTI -CRAFT CONTRACTORS, INC.
From Concept to Complednn
■
Quote: 11S01051239
Attn: Mr. Miletus Callahan-Barile
PH: 479-935-4551
miletus@twncenter.com
The Service division of Multi -Craft Contractors, Inc. is pleased to present the following proposal.
Scope of work:
• Complete JSA (Job Site Safety Analysis) before work begins.
• Disable and Lock Out corresponding electrical circuit.
• Provide necessary permits for closing off of South Block Ave for crane access.
• Provide hauling, crane, and rigging req's for removing and installing of RTU(s).
• Disconnect electrical, plumbing, and controls; remove and dispose of unit per EPA standards.
• Provide and install NEW 12.5 ton Rooftop unit with necessary roof curb adapter.
• Provide and install and configure factory economizer sectional option.
• Provide and install factory condensing coil hail guards option.
• Provide all material(s) and component(s) to connect all necessary controls, electrical, and
plumbing services.
• Perform startup and verify proper equipment and control(s) operation.
Exclusions:
• All other RTU
Warranty:
• Provided equipment and components to come with standard manufacturer warranties.
• MCC to provide 1 year labor warranty.
Parts: $ 14,645.00 plus applicable taxes
Labor: $ 3,243.00
Crane/rentals/permits: $ 1,830.00 plus applicable taxes
Total Price: $ 21,834.00 all taxes included
This price is based upon all work being performed during normal daytime business hours. Above stated
price is valid through February 4, 2021.
We appreciate this opportunity to be of service to you
Sincerely,
Tony Chavez
Project Manager
Multi -Craft Contractors, Inc.
Office: (479) 751-4330
Cell: (479) 236-8443
If you have any questions, please contact us.
Page 1 of 2 Initials_
Notice to Proceed
Please provide written acceptance of this proposal via approval signature below, or purchase order referencing the proposal
number herein.
Payment Terms
On contracts exceeding $5,000, a 25% down payment will be required upon acceptance. Monthly progress payments may be
required depending on the length of the project at MCC's discretion. Progress payments will not exceed 90% of the total
contract amount. The final 10% will be invoiced upon completion. Purchaser agrees to pay Multi -Craft Contractors, Inc. (MCC)
for the performance of the work as set forth herein, subject to revision via written change orders signed by both parties. Credit
card payments will be subject to added 3% convenience fee. Payments due in full no later than 30 days from invoice date.
Payments due and invoices unpaid shall bear interest at the maximum lawful rate. Terms as follows:
• Balance due net 30 days
Warranty and Exclusions
A. Customer will provide and permit reasonable access to all necessary areas. MCC will be allowed to start and stop equipment as necessary
to perform its services and be permitted access to existing facilities and building services covered under this Agreement.
B. In the unlikely event of failure to perform its obligations, MCC's liability is limited to repair or replacement at its option. Under no
circumstances will MCC be responsible for loss of use, loss of profits, or increased operating claims of the customer, or any special,
indirect or consequential damages.
C. The agreement does not include responsibility for system design deficiencies, such as, but not limited to poor air distribution, water flow
imbalances, etc. It does not include responsibility for system, equipment and component obsolescence, electrical failures, unserviceable
equipment, and operating the system(s).
D. MCC will not be liable for delays or failure to obligate due to fire, flood, freezing, unavailability of material, riots, acts of God, or any cause
beyond reasonable control.
E. This agreement does not include any services occasioned by improper operation, negligence except the negligence of MCC, vandalism, or
alterations, modifications, abuse, or misuse, or repairs to equipment not performed by MCC. Also excluded is the furnishing of materials
and supplies for painting or refurbishing equipment.
F. MCC shall not be required to furnish any items of equipment, labor, or make special tests recommended or required by insurance
companies, Federal, State, Municipal or other authorities except as otherwise included in this Agreement.
G. In the event either party must commence a legal action in order to enforce any rights under this contract, the successful party shall be
entitled to all court costs and reasonable attorney's fees as determined by the court for prosecuting and defending the claim, as the case
may be.
H. MCC shall not be liable for the operation of the equipment nor for injuries to persons or damage to property, except those directly due to
the negligent acts or omissions of its employees and in no event shall it be liable for consequential or speculative damages. MCC shall not
be liable for expense incurred in removing, replacing or refinishing any part of the building structure necessary to the execution of this
Agreement. MCC shall not be held liable for any loss by reason of delays in transportation, delays caused by priority or preference rating,
or orders or regulations established by any government, authority, or agency.
I. In the event of additional freight, labor, or material costs resulting from the customer's request to avoid delays with respect to equipment
warranties, or accelerated delivery of parts and supplies, the customer agrees to pay these additional costs.
J. MCC's service shall not include the identification, detection, abatement, encapsulation or removal of asbestos or products or materials
containing asbestos or similar hazardous substances. In the event MCC encounters such material in performing its work, MCC will have
the right to discontinue work and remove its employees until the hazard is corrected or its determined no hazard exists.
K. This Agreement contains the entire Contract and the parties hereby agree that this Agreement has been agreed to and the entire
Agreement is then accepted and approved by an authorized person for both parties, and no statement, remark, agreement or,
understanding, oral or written, not contained herein, will be recognized or enforced.
L. This agreement does not include the disposal of hazardous waste. Any charges incurred for their proper disposal will be borne by the
customer as an extra to the contract price.
Disputes
Disputes arising out of or in relation to this document that cannot be resolved first through direct discussion between parties involved, shall be
decided by arbitration at the location of the project or Multi -Craft Contractors Inc.'s office at Multi -Craft Contractors Inc.'s discretion, and shall
be governed by Arkansas law. This agreement is severable, and any part deemed unenforceable shall not render the remaining parts
unenforceable.
Authorized Purchaser & Title
Acceptance Date
Fay. Town Center 11SO1051239
Purchase Order Number
If accepted please sign and fax to 479-751-0316
Page 2 of 2 Initials
Memo
To: Fayetteville Advertising and Promotion Commissioners
From: Molly Rawn, CEO, Fayetteville Advertising and Promotion Commission
Date: January 28, 2021
Re: Contract Extension, Sells Agency
Background:
The Sells Agency serves as our marketing and advertising agency of record. Their
current contract expired on December 31, 2020.
Recommendation:
It is the recommendation of the CEO and the staff that we extend the contract for one
more year, to terminate December 31, 2021. The advertising, public relations, and
agency service fees are included in the approved 2021 budget.
The contract extension is attached.
ADDENDUM
CONTRACT RENEWAL
AGENCY OF RECORD AGREEMENT ADDENDUM
SELLS AGENCY & FAYETTEVILLE ADVERTISING & PROMOTION COMMISSION
January 1, 2021
This addendum to the Agency of Record Agreement dated January 1, 2018 confirms that
both parties, Sells Agency and the Fayetteville Advertising & Promotion Commission,
agree to invoke the option of renewing the original contract for a term of one year
beginning on January 1, 2021 and concluding on December 31, 2021.
Agency billing rates, will remain unchanged. The monthly retainer amount was revised
and approved by Molly Rawn and Mike Sells in December 2018 to $14,962.50. This
revised monthly retainer amount will continue with the approval of this addendum.
Please sign two (2) copies of this Addendum and return one copy to the Agency as soon
as possible and retain the other for your files.
In WITNESS WHEREOF, the parties hereto have executed this Amendment this day
of January, 2021.
THE SELLS AGENCY, INC.
By: 0%�'k Date: Jan 25. 2021
Mike Sells, Chief Executive Officer
THE FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
By: Date:
Molly Rawn, Executive Director
MARKETING CLARITY
7 401 W Capitol Ave, St. 400
Little Rock, AR 72201
501.666.8926
112 W Center, St. 503
Fayetteville, AR 72701
479.695.1760
www.sellsagency.com
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Independent Auditor's Report and Financial Statements
December 31, 2019 and 2018
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
December 31, 2019 and 2018
Contents
Independent Auditor's 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
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 —Independent
Auditor's Report ...............................................................................................................19
BKDUP
CPAs & Advisors
Board of Commissioners
809 S. 52nd Street, Suite A 11 P.O. Box 189311 Rogers, AR 72757-1893
Q 479.845.027011 fax 479.845.0840116kd.cvm
Independent Auditor's Report
Fayetteville Advertising & Promotion Commission
Fayetteville, Arkansas
Report on the Financial Statements
We have audited the accompanying financial statements of the Fayetteville Advertising and Promotion
Commission, a component unit of the City of Fayetteville, Arkansas, as of and for the years ended
December 31, 2019 and 2018, and the related notes to the financial statements, which collectively
comprise the Commission'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 the financial reporting provisions of A.C.A. § 10-4-412, as described in Note 1.
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.
Auditor's Responsibility
Our responsibility is to express opinions 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 auditor's 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 auditor considers internal control relevant to the entity'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 entity'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.
Praxity-
MEMBER
GLOBAL ALLIANCE OF
INOEPEN➢ENT FIRMS
Board of Commissioners
Fayetteville Advertising & Promotion Commission
Page 2
Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
As described in Note I of the financial statements, the financial statements are prepared by the
Commission on the basis of accounting practices prescribed or permitted by the State of Arkansas 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 Commission as of December 31, 2019 and 2018, or changes in
financial position thereof for the years then ended.
Unmodified 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 Commission as of December 31, 2019 and 2018, and its respective
revenues, expenditures, and the changes in fund balance and budgetary results for the years then ended, in
accordance with the basis of accounting practices prescribed or permitted by the State described in
Note 1.
Other Matters
Management has omitted the management's discussion and analysis information that accounting
principles generally accepted in the United States of America require to be presented to supplement the
basic financial statements. Such missing information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic or historical context. Our opinion on the basic financial statements is not affected
by this missing information.
Board of Commissioners
Fayetteville Advertising & Promotion Commission
Page 3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we also have issued our report dated
December 4, 2020, on our consideration of the Commission's internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements and other matters. The purpose of that report is solely 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 effectiveness of the Commission's 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 Commission's internal control over financial reporting and
compliance.
Rogers, Arkansas
December 4, 2020
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Statements of Assets, Liabilities, and Fund Balance -
Modified Accrual Basis
December 31, 2019 and 2018
2019 2018
Assets
Cash and cash equivalents
$ 1,461,970
$ 1,019,456
Investments
1,152,237
1,131,313
Accounts receivable
43,799
42,940
Deposits
30,617
30,617
Inventory
11,622
14,610
Prepaid expense
33,630
19,951
Capital Assets
Buildings
3,014,963
2,888,921
Furniture and fixtures
96,641
96,640
Land
198,621
198,621
Office Equipment
371,601
362,257
Construction in progress
77,693
5,538
Less accumulated depreciation
(1,072,964)
(935,311)
Total assets
$ 5,420,430
$ 4,875,553
Liabilities
Accounts payable
$ 114,190
$ 130,414
Accrued expenses
6,875
7,288
Unearned revenue
48,620
58,390
Accrued payroll
18,460
19,163
Total liabilities
188,145
215,255
Fund Balance
Unassigned
4,866,430
4,660,298
Restricted
365,855
-
Total fund balance
5,232,285
4,660,298
Total liabilities and fund balance
$ 5,420,430
$ 4,875,553
See Notes to Financial Statements 4
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Statement of Revenues, Expenditures and
Changes in Fund Balances - Modified Accrual Basis
Years Ended December 31, 2019 and 2018
Revenues
Hotel, motel and restaurant taxes
Rental income
Visitors center store
Visitor guide advertising income
Parking income
Investment income, net
Grant income
Miscellaneous event income
Total revenues
Expenditures
Advertising
Automobile expense
Bank charges
Bond payments
Collection expense
Contract labor
Convention development
Depreciation
Dues and subscriptions
Employee benefits
Insurance
Miscellaneous
Office supplies and printing
Payroll taxes
Postage
Professional services
Rent
Repairs and maintenance
Salaries and wages
Special projects and events
Taxes and licenses
Training and meetings
Utilities
Visitor center store expense
Total expenditures
2019 2018
$ 3,701,187
742,509
23,602
18,250
33,594
27,326
565,310
116,203
$ 3,554,808
770,051
34,160
29,022
23,106
49,807
5,227,981 4,460,954
832,431
3,600
6,639
696,586
74,024
89,710
171,800
137,653
27,127
25,793
142,038
116,641
23,151
75,691
11,831
41,423
39,888
181,799
967,827
749,119
13,828
72,826
129,514
25,055
4,655,994
778,590
3,600
6,829
704,774
71,625
107,724
178,999
148,314
29,132
21,189
127,984
77,279
21,632
73,048
8,942
17,878
30,300
177,990
888,091
616,004
9,830
75,996
134,897
26,900
4,337,547
See Notes to Financial Statements 5
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Statement of Revenues, Expenditures and
Changes in Fund Balances — Modified Accrual Basis (Continued)
Years Ended December 31, 2019 and 2018
Change in Fund Balance
Fund Balance
Beginning of year
End of year
2019 2018
$ 571,987 $ 123,407
660,298 4,536,891
$ 5,232,285 $ 4,660,298
See Notes to Financial Statements 6
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Statement of Revenues, Expenditures -
Modified Accrual Basis - Budget to Actual
Year Ended December 31, 2019
Variance
Favorable
Original Budget Final Budget Actual (Unfavorable)
Revenues
Hotel, motel and restaurant taxes
$ 3,571,688
$ 3,571,688
$ 3,701,187
$ 129,499
Rental income
867,500
867,500
742,509
(124,991)
Visitors center store
26,000
26,000
23,602
(2,398)
Visitor guide advertising income
20,000
20,000
18,250
(1,750)
Parking income
28,000
28,000
33,594
5,594
Investment income, net
16,700
16,700
27,326
10,626
Grant Income
565,310
565,310
565,310
-
Miscellaneous event income
81,100
81,100
116,203
35,103
Total revenues
5,176,298
5,176,298
5227,981
51,683
Expenditures
Advertising
839,500
839,500
832,431
7,069
Automobile expense
3,600
3,600
3,600
-
Bank charges
8,200
8,200
6,639
1,561
Bond payments
707,000
707,000
696,586
10,414
Collection expense
70,318
70,318
74,024
(3,706)
Contract labor
72,633
72,633
89,710
(17,077)
Convention development
151,050
151,050
171,800
(20,750)
Depreciation
-
-
137,653
(137,653)
Dues and subscriptions
30,847
30,847
27,127
3,720
Employee benefits
33,776
33,776
25,793
7,983
Insurance
161,335
161,335
142,038
19,297
Miscellaneous
119,100
119,100
116,641
2,459
Office supplies and printing
26,900
26,900
23,151
3,749
Payroll taxes
92,918
92,918
75,691
17,227
Postage
9,850
9,850
11,831
(1,981)
Professional services
45,700
45,700
41,423
4,277
Rent
38,400
38,400
39,888
(1,488)
Repairs and maintenance
352,775
352,775
181,799
170,976
Salaries and wages
1,094,796
1,094,796
967,827
126,969
Special projects
541,120
541,120
749,119
(207,999)
Taxes and licenses
9,050
9,050
13,828
(4,778)
Training and meetings
57,247
57,247
72,826
(15,579)
Utilities
127,020
127,020
129,514
(2,494)
Visitor center store expense
22,750
22,750
25,055
(2,305)
Total expenditures/expenses
4,615,885
4,615,885
4,655,994
(40,109)
Excess of Revenues Over Expenditures
$ 560,413
$ 560,413
$ 571,987
$ 11,574
See Notes to Financial Statements 7
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Statement of Revenues, Expenditures -
Modified Accrual Basis - Budget to Actual
Year Ended December 31, 2018
Variance
Favorable
Original Budget Final Budget Actual (Unfavorable)
Revenues
Hotel, motel and restaurant taxes
$ 3,501,655
$ 3,501,655
$ 3,554,808
$ 53,153
Rental income
769,500
769,500
770,051
551
Visitors center store
26,500
26,500
34,160
7,660
Visitor guide advertising income
20,000
20,000
-
(20,000)
Parking income
25,500
25,500
29,022
3,522
Investment income, net
12,967
12,967
23,106
10,139
Miscellaneous event income
42,600
42,600
49,807
7,207
Total revenues
4,398,722
4,398,722
4,460,954
62,232
Expenditures
Advertising
808,900
808,900
778,590
30,310
Automobile expense
3,600
3,600
3,600
-
Bank charges
6,500
6,500
6,829
(329)
Bond payments
707,000
707,000
704,774
2,226
Collection expense
68,940
68,940
71,625
(2,685)
Contract labor
105,900
105,900
107,724
(1,824)
Convention development
155,195
155,195
178,999
(23,804)
Depreciation
-
-
148,314
(148,314)
Dues and subscriptions
26,500
26,500
29,132
(2,632)
Employee benefits
26,632
26,632
21,189
5,443
Insurance
115,422
115,422
127,984
(12,562)
Miscellaneous
88,700
88,700
77,279
11,421
Office supplies and printing
20,600
20,600
21,632
(1,032)
Payroll taxes
64,588
64,588
73,048
(8,460)
Postage
118,466
118,466
8,942
109,524
Professional services
21,500
21,500
17,878
3,622
Rent
15,300
15,300
30,300
(15,000)
Repairs and maintenance
468,184
468,184
177,990
290,194
Salaries and wages
820,649
820,649
888,091
(67,442)
Special projects
551,500
551,500
616,004
(64,504)
Taxes and licenses
5,100
5,100
9,830
(4,730)
Training and meetings
59,722
59,722
75,996
(16,274)
Utilities
111,824
111,824
134,897
(23,073)
Visitor center store expense
28,000
28,000
26,900
1,100
Total expenditures
4,398,722
4,398,722
4,337,547
61,175
Excess of Revenues Over Expenditures
$
$ -
$ 123,407
$ 123,407
See Notes to Financial Statements 8
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Notes to the Financial Statements
December 31, 2019 and 2018
Note 1: Nature of Operations and 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 Commission) maintains its 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 Commission 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 10-4412. The Board of
Commissioners did not adopt such a resolution for 2019 or 2018.
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 Commission has elected to utilize the modified accrual basis of accounting.
Nature of Operations
The Commission 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 Commission 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 Commission. 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 City Council and serve at the will of the City
Council. One member is from the public at large and is nominated by the Commission and
approved by the City 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 Commission, 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 Commission include the Fayetteville Convention
and Visitors Bureau, the Fayetteville Town Center and the Clinton House Museum.
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Notes to the Financial Statements
December 31, 2019 and 2018
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 and Presentation
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 Commission 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 Commission 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 Commission 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
Commission. Budgetary control is maintained at the operations level. Budgeted amounts not spent
by year end lapse.
Investments
Investments of the Commission represent the portion of a combined investment pool managed by
the City allocable to the Commission. 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, 2019
and 2018, the Commission's proportionate share of the investment pool was approximately 0.65%
and 0.85%, respectively.
10
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Notes to the Financial Statements
December 31, 2019 and 2018
The Commission's portion of investments held by the City amounted to $1,152,237 and $1,131,313
at December 31, 2019 and 2018, respectively, and is held at one financial institution in the name of
the City. Approximately 90.65% and 91.71 % of the pool is invested in direct obligations of the
United States of America. The remainder is either insured or collateralized.
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, 2019 and 2018, 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 uncollectability 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 Commission's gift shop.
Capital Assets
Capital assets are carried at historical cost or acquisition value at date of donation if the asset was
contributed. The Commission'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.
Funding
The Commission 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 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
$30,918 and $31,041 at December 31, 2019 and 2018, respectively.
11
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Notes to the Financial Statements
December 31, 2019 and 2018
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 Commission.
Advertising
The Commission expenses advertising, marketing and promotion costs as incurred.
Income Taxes
The Commission is a tax-exempt organization under Section 115 of Internal Revenue Code.
Fund Balance — Governmental Funds
The fund balances for the Commission's funds are displayed in two components:
Restricted — Restricted fund balances may be spent only for the specific purposes stipulated by
external resource providers. Restrictions may be changed or lifted only with the consent of resource
providers. Funds are externally restricted by contributors.
Unassigned — Unassigned fund balance includes all amounts not restricted.
The Commission considers restricted amounts to have been spent when an expenditure incurred for
purposes for which both restricted and unassigned fund balance is available. The Commission
applies restricted amounts first, and then unassigned amounts when an expenditure is incurred for
purposes for which amounts in any of those unrestricted fund balance classifications could be used.
Note 2: Commitments
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 Commission 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 $707,313 per year, plus fees, for payments on
these bonds. The amount retained for the bond payment would otherwise be remitted to the
Commission.
12
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Notes to the Financial Statements
December 31, 2019 and 2018
Note 3: Deposits, Investments and Investment Income
Deposits
Custodial 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 Commission maintains separate bank accounts in two banks. Deposits with banks at
December 31, 2019 and 2018 amounted to $1,540,553 and $1,061,806, respectively, of which
$304,091 and $297,199 was insured and the remaining amount was collateralized by securities
held in the Commission's name.
Investments
The Commission may legally invest in direct obligations of the U.S. Government and agencies,
collateralized certificates of deposit, prerefunded municipal bonds, corporate bonds, collateralized
repurchase agreements, treasury money markets, local government trusts and savings accounts.
At December 31, 2019 and 2018, the Commission had the following investments and maturities:
December 31, 2019
Maturities in Years
Less More
Type Fair Value than 1 1-5 6-10 than 10
Money market mutual funds $ 416,574 $ 416,574 $ - $ - $ -
U.S. agencies obligations 735,662 206,230 529,432 - -
$1,152,236 $ 622,804 $ 529,432 $ - $ -
December 31, 2018
Maturities in Years
Less More
Type Fair Value than 1 1-5 6-10 than 10
Money market mutual funds $ 403,300 $ 403,300 $ - $
U.S. agencies obligations 728,013 447,164 280,849
$1,131,313 $ 850,464 $ 280,849 $ - $ -
13
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Notes to the Financial Statements
December 31, 2019 and 2018
Interest Rate Risk - As a means of limiting its exposure to fair value losses arising from rising
interest rates, the Commission's investment policy is to attempt to match investment maturities
with cash flow requirements. The Commission's investments are money market mutual funds and
U.S. Government agency obligations.
Credit Risk — Credit risk is the risk that the issuer or other counterparty to an investment will not
fulfill its obligations. It is the Commission's policy to invest no more than 20% in corporate debt
or in securities of a management type investment company or investment trust. It is the
Commission's policy to limit its investments in corporate bonds to issues that are rated investment
grade by Standard & Poor's and Moody's Investors Service and shall maintain an A- average rating
or better for Standard & Poor's and an A3 average rating or better for Moody's Investors Service.
Investment in commercial paper will berated A-1/P-1. At December 31, 2019, the Commission's
investments in U.S. agencies obligations and corporate bonds were rated an average rate of AA by
Standard & Poor rating and an average rate of Aal by Moody's Investors Service.
Custodial Credit Rick — Custodial credit risk is the risk that, in the event of the failure of the
counterparty, the Commission will not be able to recover the value of its investment or collateral
securities that are in the possession of an outside party.
Concentration of Credit Risk — The Commission's policy states that investments shall be
diversified by limiting investments to avoid concentration in securities from a specific issuer less
than or equal to 5% of the cost basis of the Commission's portfolio at the time of purchase.
In compliance with GASB 72, the Commission categorizes its fair value measurements within the
fair value hierarchy established by generally accepted accounting principles. The hierarchy is
based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted
prices in active markets for identical assets; Level 2 inputs are significant other observable inputs;
Level 3 inputs are significant unobservable inputs.
The Commission had the following recurring fair value measurements:
• U.S. agencies obligations of $735,662 and $728,013 as of December 31, 2019 and 2018,
respectively, are valued using the option -adjusted discounted cash flow model (Level 2
inputs).
• Money market mutual funds of $416,574 and $403,300 as of December 31, 2019 and 2018,
respectively, are valued using quoted market prices (Level 1 inputs).
14
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Notes to the Financial Statements
December 31, 2019 and 2018
Summary of Carrying Values
The carrying values of deposits and investments shown above are included in the statement of net
position as follows:
2019
2018
Carrying value
Deposits
$ 1,460,770
$1,018,256
Cash on hand
1,200
1,200
Investments
1,152,237
1,131,313
$ 2,614,207
$2,150,769
Included in the following statement of net position captions
Cash and cash equivalents
$ 1,461,970
$ 1,019,456
Investments
1,152,237
1,131,313
$ 2,614,207 $ 2,150,769
Investment Income
Investment income (loss) for the year ended December 31, 2019, consisted of-
2019 2018
Interest and dividend income $ 30,525 $ 20,504
Net increase (decrease) in fair value of investments (3,199) 2,602
$ 27,326 $ 23,106
15
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Notes to the Financial Statements
December 31, 2019 and 2018
Credit Risk - Credit risk is the risk that the issuer or other counterparty to an investment will not
fulfill its obligations. It is the Commission'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 berated 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 government agencies were ranked AA+ by
Standard & Poor's at December 31, 2019 and 2018.
Custodial Credit Risk - Custodial credit risk is the risk that, in the event of the failure of the
counterparty, the Commission will not be able to recover the value of its investment or collateral
securities that are in the possession of an outside party.
Concentration of Credit Risk - The Commission'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 Commission had no
concentration risk as of December 31, 2019 and 2018.
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 Commission had no
investments that were denominated in foreign currency at December 31, 2019 and 2018.
Note 4: Employee Benefit Plan
The Commission offers a SIMPLE IRA plan to all employees who meet the eligibility
requirements. The Commission matches employee contributions up to 3% of compensation, while
the employee may contribute up to 10% of his or her salary. The Board of Commissioners of the
Commission has the authority to amend the plan and contribution rate. The Commission made
contributions in the amount of $18,981 and $16,746 for the years ended December 31, 2019 and
2018, respectively.
16
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Notes to the Financial Statements
December 31, 2019 and 2018
Note 5: Related Party Transactions
As stated in Ordinance Number 95-1, the board of the Commission 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 board are employed by restaurants or hotels
that pay the tax which is the primary funding for the Commission.
During the years ended December 31, 2019 and 2018, the Commission paid approximately $5,000,
for expenses related to operational services performed by the City for the lease of parking spaces.
The Commission had accounts receivable from the City's Parking Department of $9,245 and
$7,500 at December 31, 2019 and 2018, respectively.
The Commission has an agreement to pay the City a collection fee of 2% of the taxes collected.
During the years ended December 31, 2019 and 2018, the Commission paid collection expenses of
$74,024 and $71,625, respectively, to the City in exchange for the City collecting tax revenue on
behalf of the Commission.
Note 6: Capital Assets
A summary of changes in capital assets is as follows:
2019
Beginning
Ending
Balance
Additions Disposals
Balance
Building
$ 2,888,921
$ 126,042 $ -
$ 3,014,963
Furniture and fixtures
96,640
- -
96,641
Land
198,621
- -
198,621
Equipment
362,257
9,343 -
371,601
Construction in progress
5,538
72,155 -
77,693
3,551,977
207,540 -
3,759,519
Less accumulated
depreciation
935,311
137,653 -
1,072,964
$ 2,616,666
$ 69,887 $ -
$ 2,686,555
17
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Notes to the Financial Statements
December 31, 2019 and 2018
Building
Furniture and fixtures
Land
Equipment
Construction in progress
Less accumulated
depreciation
2018
Beginning Ending
Balance Additions Disposals Balance
$ 2,500,437 $ 388,484 $ - $ 2,888,921
85,600 11,040 - 96,640
198,621 - - 198,621
279,872 82,385 - 362,257
- 5,538 - 5,538
3,064,530 487,447 - 3,551,977
786,997 148,314 - 935,311
$ 2,277,533 $ 339,133 $ - $ 2,616,666
Note 7: Subsequent Events
As a result of the spread of the SARS-CoV-2 virus and the incidence of COVID-19, economic
uncertainties have arisen which may negatively affect the financial position and changes in
financial position of the Commission. The duration of these uncertainties and the ultimate financial
effects cannot be reasonably estimated at this time.
18
BKDUP
CPAs & Advisors
809 S. 52nd Street, Suite A 11 P.O. Box 189311 Rogers, AR 72757-1893
Q 479.845.0270l1 fax 479.845.084011 bkd.cvm
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
Independent Auditor's Report
Board of Commissioners
Fayetteville Advertising & 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
Fayetteville Advertising and Promotion Commission (the Commission), a component unit of the
City of Fayetteville, Arkansas, which comprise the statement of assets, liabilities, and fund balance
— modified accrual basis as of December 31, 2019, and the related statements of revenues,
expenditures, and changes in fund balance — modified accrual basis and revenues and expenditures
— modified accrual basis — budget to actual for the year then ended, and the related notes to the
financial statements, and have issued our report thereon dated December 4, 2020, which expressed
an adverse opinion on U.S. Generally Accepted Accounting Principles and an unmodified opinion
on the Regulatory Basis of Accounting.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Commission'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
Commission's internal control. Accordingly, we do not express an opinion on the effectiveness of
the Commission'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 entity'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.
Praxity-
MEMBER
GLOBAL ALLIANCE OF
INOEPEN➢ENT FIRMS
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 Commission's financial statements are
free from 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
entity'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 entity's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Rogers, Arkansas
December 4, 2020
20