Art Museum Statements of Financial Assets

b. This statement follows the format illustrated on page 209 and in the Putting it Together example on page 220. (Note the example on page 220 should have classified the net assets.)

Art Museum

Statement of Financial Position

(as of June 30, 20X1 and 20X2)

Totals

2002 2001

Assets:

Cash $1,158,000 $628,000

Contributions

Receivable 355,000 205,000

Investments 1, 600,000 1,100,000

Gift shop inventory 18,000 30,000

Furniture & fixtures 100,000 100,000

Accumulated

Depreciation-furniture

& fixtures (15,000) (10,000)

Museum Building 1,500,000 1,500,000

Accumulated

Depr.-Museum (1,000,000) (950,000)

Land 100,000 100,000

Total Assets $3,816,000 $2,703,000

Liabilities and Net Assets:

Liabilities:

Accounts Payable $ - $10,000

Capital Lease Payable 12,000 16,000

Mortgage Payable 356,000 378,000

Total Liabilities 368,000 404,000

Net Assets:

Unrestricted 1,422,000 1,031,000

Temporarily restricted 522,000 264,000

Permanently restricted 1,504,000 1,004,000

Total net assets 3,448,000 2,299,000

Total liabilities and net assets $3,816,000 $2,703,000

This statement follows the format as illustrated on page 213 in the American Red Cross that classifies accounts as Unrestricted, Temporarily Restricted, and Permanently Restricted. FASB 117 illustrates some acceptable formats for financial statements. FASB indicated in Statement No. 117 that their illustrated formats are only examples and there are many permissible formats for presentation of the not-for-profit financial statements.

Art Museum

Statement of Financial Position

(as of June 30, 20X1 and 20X2)

Temporarily Permanently Totals

Unrestricted Restricted Restricted 2002 2001

Assets:

Cash $1,042,000 $112,000 $4,000 $1,158,000 $628,000

Contributions

Receivable - 355,000 - 355,000 205,000

Investments 45,000 55,000 1,500,000 1, 600,000 1,100,000

Gift shop inventory 18,000 - - 18,000 30,000

Furniture & fixtures 100,000 - - 100,000 100,000

Accumulated

Depreciation-furniture

& fixtures (15,000) - - (15,000) (10,000)

Museum Building 1,500,000 - - 1,500,000 1,500,000

Accumulated

Depr.-Museum (1,000,000) - - (1,000,000) (950,000)

Land 100,000 - - 100,000 100,000

Total Assets $1,790,000 $522,000 $1,504,000 $3,816,000 $2,703,000

Liabilities and Net Assets:

Accounts Payable $ - $ - $ - $ - $ 10,000

Capital Lease Payable 12,000 - - 12,000 16,000

Mortgage Payable 356,000 - - 356,000 378,000

Total Liabilities 368,000 - - 368,000 404,000

Net Assets: 1,422,000 522,000 1,504,000 3,448,000 2,299,000

Total liabilities

and net assets $1,790,000 $522,000 $1,504,000 $3,816,000 $2,703,000

Art Museum

Statement of Activities

for fiscal year-end June 30 20X2

Temporarily Permanently

Unrestricted Restricted Restricted Total

Revenues, Gains & Other Support

Contributions $ - $ 300,000 $500,000 $800,000

Admission Fees 850,000 - - 850,000

Gift Shop Sales $65,000

Less: Cost of

Goods Sold 57,000

Gift Shop Net Income 8,000 - - 8,000

Special Event Revenue $70,000

Cost Direct Benefit

to Donors 15,000

Net revenue from special event 55,000 - - 55,000

Investment Revenue 11,000 108,000 - 119,000

Net Assets released from restrictions:

Satisfaction of time restriction 150,000 (150,000) - -

Total revenues, gains, other support 1,074,000 258,000 500,000 1,832,000

Expenses:

Salaries and Wages $500,000 $ - $ - $500,000

Fringe Benefits 100,000 - - 100,000

Utilities 28,000 - - 28,000

Depreciation 55,000 - - 55,000

Total expenses 683,000 - - 638,000

Change in net assets 391,000 258,000 500,000 1,149,000

Net assets beginning of fiscal year 1,031,000 264,000 1,004,000 2,299,000

Net assets end of fiscal year $1,422,000 $522,000 $1,504,000 $3,448,000

Art Museum

Statement of Cash Flows

For fiscal year ended June 30, 20X2

Cash Flows from Operating Activities:

Admission Fees $850,000

Gift Shop Sales 65,000

Contributions 650,000

Special Events 70,000

Employee Salaries and Wages (500,000)

Employee Fringe Benefits (100,000)

Utilities ( 28,000)

Payment on accounts payable to vendors ( 70,000)

Interest and dividends on investments 119,000

Net cash provided by operating activities 1,056,000

Cash Flows from Investing Activities:

Net cash provided by investing activities (500,000)

Cash Flows from Financing Activities:

Payment of capital lease (4,000)

Payment of mortgage (22,000)

Net cash used by financing activities (26,000)

Net increase in cash and cash equivalents 500,000

Cash and cash equivalents July 1, 20X1 628,000

Cash and cash equivalents June 30, 20X2 $1,158,000

Reconciliation of Change in Net Assets to

Net cash provided by operating activities:

Change in Net Assets $1,149,000

Adjustments to reconcile change in net assets to

net cash provided by operating activities

Depreciation 55,000

Increase in contributions receivable (150,000)

Increase in gift shop inventory 12,000

Increase in accounts payable (10,000)

Net cash provided by operating activities $1,056,000

Art Museum

Statement of Functional Expenses

For fiscal year end, June 30, 20X2

(in thousands)

Program Services Supporting Services

Total Museum Gift Shop Management Fund-Raising

Salaries and Wages $500 $400 $ - $100 $ -

Fringe Benefits 100 80 - 20 -

Utilities 28 28 - - -

Depreciation 55 50 - 5 -

Cost of Goods Sold 57 - 57 - -

Cost of Special Events 15 - - - -

Total $755 $558 $57 $125 $15

Note – the Statement of Functional Expenses is not required for a Museum. This statement prorated the expenses like the example in the text.