Loading...
HomeMy WebLinkAboutWRFC Financial Report 2011 and 2010 WILMINGTON REGIONAL FILM COMMISSION, INC, Financial Statements June 3, 2011 and 20 10 WILMINGTON REGIONAL FILM COMMISSION, INC. Table of Contents June 30 2011 and 201 Independent Auditors' Report Statement of Financial Position Statement of Activities and Changes 1 N et A sse ts Statement of Functional Expenses S tatement of Cash Flows Notes to Financial Statements -9 Supplemental Information Budget to Actual Comparison of Support, Revenue and Expenses � � 3 i 3 Goodson CPAs Ell i 1 .e: Y ;r y f ljc i war uw w�' r ,s r' al s . ti rr L; Tr y ,V•- c'yo "•'{- r 11 [,' r4, '',.` f` � . r: �f' r?�ru, GL: o%s:.�rr s ;1n�3 a G�cr `.- .R- C.xs's.'.•;�sff{' I I Cl ement Goodson, CPA 77 S D err l ire. Lynn Saylor, CPA lnde Inde pendent Au �tors' Wilmington, C 23403 Voice 9 Fax 9 To The Board of Directors of Wilmington Re g Tonal Film Comm*ss�on, Inc. rd 1223 North 23 St. Wilmington, North Carolina 28405 We have audited the accompanying statement of financial po itio'n of Wilmington Regional Film Commission, Inc. as of June 30, 2011, and the related statement o. activities and changes in net assets, statement of functional expenses, and cash fl ows for the year then ended. These financial statements are the responsibility of the organizations' management. our responsibility is to express an opinion on these financial statements based on our audit. The financial statements as of .Tune 30, 2010, were audited by another auditor who expressed an unqualified opinion on the financial st atements f or that period of tim We conducted our audit in accordance with aud iting standards generally accepted in the United Mates of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit al includ assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to aloe present fairly, in all material respects, the financial position of Wilmington Regional Film Commission, Inc., as of .Tune 30, 2011, and its statement of activities and changes in net assets and cash flows for the year them ended. Goodson & Taylor, CPAs September 10, 2011 2 i WILMINGTON REGIONAL FILM COMMISSION� INC. STATEMENT OF FINANCIAL POSITION June 3 0, 2011 and 2010 2011 2010 Assets Cash 148,275 145 Prepaid Expenses 11,440 9,007 Property erty and Equipment 4 3 Total Assets 164, 521 158,63 Liabilities and Net Assets Liabilities Accrued Expenses 1 15 Total Liabilities 14527 15,641 Net Assets Unrestricted 1 49 3 994 142 Total Net Assets 149,994 142 �r r Total Liabilities a Net As 164,521 158,6 The accompanying notes are a integral part of this statement. WI REGIONAL FILM COMMISSION INC# STATEM OF ACTIVITIES June 30,2011 and 2010 2011 2010 W Support and Revenue Govennnental service agreements City of Wilmington 109 $ 109,869 New Hanover County 10%585 10%585 Donations 12000 Advertising sales 27,465 34,586 Interest Income 275 681 Net assets released from restrictions 11, Total Support and Revenue 247, 194 277,721 Expense Program setvices 189 227,848 Management and General 29 33,291 Fund Raising 20 23,155 Total Expenses 240,189 284 lerease (Decrease) in Net Assets 1. 7,005 (6,573) Net Assets - Beginning of Year 142 149,562 Net Assets -End of Year $ 1 49 $ 142,989 The accompanying notes are an integral part of this statement. WILMINGTON REGIONAL FILM COMMISSION INC* STATEMENT FUNCTIONAL EXPENSES June 30, 2011 and 2010 2011 Manag meat Prograrn and Fund- Total Total Services General Raising 2011 2010 Compensation and related expenses Compensation Director $ 75,776 9,472- $ %472 94,720 $ 94,614 Production coordinator 183675 3296 21,971 35,526 Employee benefits Retirement ent enefit 7'578 947 947 9,472 11,414 Payroll taxes 8 1,123 832 10 260 11,407 Health insurance 5,826 728 728 7 12 Y " Total compensation and related expenses 116,160 .45,566 11 ,979 143 165,338 Other expenses Production guide expenses 14753 8,095 22,848 26,366 Marketing and promotion 5,723 - 5,723 24,3'72 Lobbying efforts - - - 24po Software annual fees 13,200 - - 13,200 - .ent 11,357 1,103 401 13,361 13,256 Accounting 7,950 7,950 7,700 Vehicle rental and upkeep 2,975 1983 4,958 4,761 Insurance 4,141 460 - 4 3,997 Copier rental ' & maintenance 2,793 147 - 2,940 23579 Telephone and postage 3,632 191 3,523 2,388 Travel and conferences 5,724 - 5 2,232 Location scouting 1 - 1,946 1,575 Legal' expenses 3,582 3, 582 Office expenses 1,176 1,175 2,351 1,370 Policy Board 442 441 - 883 1,263 Computer & website services 1 135 - 1 1 Depreciation expense 1 120 - 1,247 801 Contingency M 1,042 Total Expenses 189,943 $ . 29,771 20,475 .$240 284,294 l r The accompanying notes are an 'Integral part of this statement. { 4. WILMINGTON REGIONAL FILM COMMISSION, INC& STATEMENT OF CASH FLOWS June 30, 2011 and 2010 2011. 2010 Cash Flows from operating Activities Increase (Decrease) in Net Assets 7,005 (17,573) Adjustments to Reconcile Net Assets to Net Cash Provided by Operating Activities Depreciation 1,247 801 (Increase) decrease in operating assets Pledges receivable 11,E Prepaid expenses (2,433) (351) increase (decrease) in operating liabilities Accrued expenses 1 (44,322) Net Cash Provided by Operating Activities 4 (50,445) Cash Plows from Investing Activities Purchase of Capital Assets - Equipment (2,228) (2 Proceeds from sale of equipment 5 Net Cash Used by Investing Activities (2,228) (2,62 1 Net increase in Cash and Cash Equivalents 2,477 (53 Beginning Cash and Cash Equivalents 145798 1 98,64 Ending Cash and Cash. Equivalents $ 148,275 $ 1 45,798 r F Supplemental Information Interest Income 275 The accompanying notes are an integral part of this statement. 5. WILMINGTON REGIONAL FILM COMMISSION, INC. NOTES To FINANCIAL STATEMENTS For the year ended .dune 3 o, 2011 Note I Nature of Activities Wilmington Regional Film Commission, Inc. (the Commission) is a North Carolina nonprofit corporation whose mission is to .improve business conditions for the common interest of the film and video industry in southeastern North Carolina, act as a liaison between the film industry, local governments, and communities in order to attract and facilitate on- location film and video production in the area, and to increase film and video production taking place in southeastern North Carolina and increase the economic impact of the industry on the region. The Commission was established in May 1999. Six projects began production in southeastern North Carolina during the year ended June 3 o, 201 o and the Commission responded to over one hundred and twenty requests for information. Those productions brought in approximately twenty -eight million dollars of revenue into the community through wages paid to local artisans, craftsmen, and trades people, and goods a efforts services purchased locally. The e its off' the Commission .d its staff were influen ing factors in the decision to produce those films or other video productions in' the area. The Commission is supported primarily through support from local governments and sales of advertising in publication of its amival Production Guide. Note Significant Accounting Policies Method of Accounting The financial statements of the Conunission have been prepared utilizing the accrual basis of accounting and accordingly reflect all significant receivables, payales, and other liabilities. • Basis of Presentation Financial . statement presentation follows the recommendations of the Financial Accounting Standards Board in its Statement of Financial Accounting Standard SFAS No. 117, Financial Statements of loot -- for - Profit Organizations. Under SFAS No. 117, the onunaission is required to report information regarding its financial position and activities according to three classes of net assets, unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. • Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires naa"n to name estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates, r WILMINGTON REGIONAL FILM COMMISSION, INC. NO'S'ES To FINANCIAL STATEMENTS For the year ended June 3 o, 2011 Support and Revenu Contributions are generally available for unrestricted use in the year received unless speclf �cally rstricted _ y the donor. Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations that limit the use of the donated assets. Wh en a donor restriction expires, th at's, wh en a stipulated time restriction ends or purpose re strict ion ' is accomplished, temporarily restricted net assets are reclassifie to unrestricte net assets and reported in th e statement of activities as net assets released from restrictions, Income Taxes The Co 1s a. not - for - profit organization that is exempt from inco taxes from activities directly related to its exempt purpose under Section 5 01 c of the Internal Revenue Code. However, profits relating to certain advertising activities of the C ommission are subject to federal & forth Carolina taxation, Tax liability for the fiscal years ended June 3 o, 2011 and 2010 respectively was $0 and $ 0 as a result of these activities. Property and Equipment Property and e quipment are recorded at cost and depreciation is calculated on a straightline basis over the estima use ful lives : of the assets. The Commission follows the p ractice of capitalizing all expenditures for e uip neat in e c of $500. Lesser amounts are typically expensed. property and equipment s of Jane oth consist ofd 2011 2010 Furnishings and fixtures 5,240 5,240 Office equipment 6fi35 4,407 Display booth ; . 2 2,802 Ca 2 2,064 Less: Accumulated Depreciation (11 Total Property and Equipment 4,806 , 2 5 r r 7 WILMINGTON REGIONAL FILM COMMISSION INC@ NOTES To FINANCIAL STATEMENTS For the year ended June 3 0, 2011 Note 3 Concentrations The Commission received over % of its support from New Hanover County and'the City of Wilmington during the year ended June 30, 2011. A total of $219,454 was received from both the City and County combined during each of the years ended June 3 0, 2011 and 2010. Note 4 SEP Retirement Plan The Commission has a simplified employee pension plan co refing all full time employees. The Commission makes a contribution to the plan each year equal to 10% of all participant's compensation. Total expense for the year ended June 3 0, 2 011 and 2010, respectively was $9,472 and $11;414% Note 5 operating Lease Comm itments The Commission leases office space- under an agreement expiring August 2012. This lease may he terminated by either the lessor or the Commission with ninety clays notice. The Commission also has a noncancela le operating lease for office e quipment which expires April 2014. Both leases generally require the Commission to pay all executory costs such as taxes, maintenance, and insurance. Rental expense for the lease of the office equipment consisted of $2,592 and $2,579 for the years ended June 30, 2011 and 2010 respectively. The Commission leases a.vehicle for use by its staff. The lease agreement is a month -to month rental agreement which may be cancelled by either party with thirty clays notice. Lease expense for the years ended June 30, 2011 an 1 Oxespectively was $3,747 and $3,747. Future minimum lease payments under these operating leases that have remaining terms in excess of one year as of June 3 0, 2011 are: Year ending June 30: 2012 $ 15,953- 2013 3,705 2014 ,2,592 . 2015 .: 2016 Total 22250 5 ti L + 8. WILMINGTON REGIONAL FILM COMMISSION, INC. NOTES To FINANCIAL STATEMENTS For the year ended June 30, 2011 Note 6 - Government Service Contracts The Commission has service contract agreements with both the City of Wilmington and New Hanover County. These contracts have a five -year term beginning July 2006 and ending June 2011. Both contracts require the Commission to work diligently to attract film and video production to the City and County, advise and work with each in regard to all matters pertaining to film production, and have a representative from each serving on the Commission's Board of Directors throughout the term of the contracts. The City and County each agree to pay the Commission $90,000 a year for the life of the contracts iffi annum increases based on a Consumer Price Index adjustment. Note 7 Functional Allocation of Expenses The costs of providing the programs and activities have been sununarized on a functional basis in the statement of activities. Accordingly; " ceftai . nc.osts have been allocated among the programs and supporting services benefited. Note 8 Joint Costs of Activities The Commission achieves some of its mission axed . fund - raising goals through the publication of a production guide which 'is a listing of various- local service providers, artists, craftsmen, and technicians to the motion picture industry. In the years ended June 30, 2011, and 2010 the costs of publishing the guide included a total of $26,366 and $26,479 respectively, of j oint costs that 'axe not directly attributable to either the program gram mission or the fund- raising component of the ctl tie . Those joint costs were allocated as follows* 2011 2010 Progra'n $ 14,753 15 Fund Raising 8 10,856 Total $ 22,848 $ 265479 Note.9 Subsequent Events Subsequent events were evaluated through September 12, 2011, which is the date the financial statements were available to be issued. 9. Supplemental Information 10 WILMINGTON REGIONAL FILM COMMISSION, INC. Budget to Actual Comparison fo'r the year ended June 30, 2011 Budget Support and Revenue Budet Actual 'Variance Governmental service agreements City of Wilmington 1 09,869 1 09,869 New Hanover County 109 109,585 - Advertising sales 32,000 27,465 (4,535) Interest Income 600 275 (325) Net assets from previous years 26,536 - 20,536) Total Support and Revenue 278 247,194 X31,396) Compensation and related expenses Compensation Director 94,720 94,720 - Production coordinator 32po .21,971 10 Employee benefits Retirement benefit 12,672 9,472 3 Payroll taxes 11 1 0,260 1,145 Health insurance 14,500 7 7,218 r Total compensation and related expenses , 165,297 143,705 21,592 Other expenses Production guide expenses 25,000 '22,848 2,152 Marketing and promotion .81000 5 5 723 2,277 Software annual fees 14P0 13,200 800 Dent 1305 13,361 504 Accounting 71500 7,950 (450) Vehicle rental and upkeep 4,300 4,958 (658) Insurance :.5,228 4,601 627 Copier rental & maintenance 31000 2,940 6 Telephone and postage 3,000 3,823 (823) Travel and conferences 8 5,724 2,276 Location scouting !P000 11946 2,054 Legal expenses 41000 3,582 418 Office expenses 2,300 2.351 51 Policy Board 4,000 883 3 Computer & rebsite services 1,500 1,347 153 Income tax 100 - 100 Depreciation expense - 1,24'7 (1 5 247) Contingency .5 , 5 Total Expenses 278,590 240,189 38,401 Increase (Decrease) in Net Assets $ 7,005 7,005 Wl MINGTON lc�cfaA we L.F. &ww cftk= MAE= REGIONAL FILM COMMISSION INC. IT �' 1223 NORTH 23rd STREET s WILMINGTON, NC 28AO5 cwt www.wilmington- Film.com • commish @wilmington- film.com HawrW aNShcb ATTACHMENT "D" Member of in ASSOCIATION OF FILM COMMISSIONERS INTERNATIONAL PROPERTY INSURANCE UPDATE The WRFC has property insurance from Hartford through James E. Moore Insurance to cover the contents of the building, leased equipment (copier), computers, and liability of others. Last year WRFC paid $1,076 for this coverage. Historically, the premium increases approximately $50 annually based upon an increase in the replacement cost of contents. We just received a notice of rate increase to $1,529. Our rep at James E. Moore says premiums are increasing in this area due to an increase in wind coverage. In reviewing our options for coverage, it was discovered that the replacement value of our building contents is valued at $81,000. This number is excessive given that our inventory list shows assets valued at $17,000 (furniture, camera, tv, computers). If we reduce our asset coverage to $25,000, Hartford will insure us for $1,003 with a $500 deductible. If we switch carriers to Zurich, they will insure $25,000 of assets for $750 with a $1,000 deductible. My recommendation is that WRFC reduce its amount of insured assets from $81,000 to $25,000 and switch carriers from Hartford to Zurich. This immediate action will result in annual savings initially valued at $779. Wl MINGTON lc�cfaA we L.F. &ww cftk= MAE= REGIONAL FILM COMMISSION INC. IT �' 1223 NORTH 23rd STREET s WILMINGTON, NC 28AO5 cwt www.wilmington- Film.com • commish @wilmington- film.com HawrW aNShcb ATTACHMENT "E" Member of in ASSOCIATION OF FILM COMMISSIONERS INTERNATIONAL FILM COMMISSION DIRECTOR EVALUATION SURVEY COMMISSIONER'S RELATIONSHIP WITH THE BOARD Rate 1-5 (5 bein the hi Comments Keeps Board appropriatel informed about or chan activities and 1 2 3 4 5 status. Consistentl maintains open communication with the Board. 1 2 3 4 5 Proves to be accessible to the Board to discuss concerns, ideas, and items of 1 2 3 4 5 interest. Promptl responds to needs and re of the Board. 1 2 3 4 5 Keeps Board informed about new and impendin le or polic changes 1 2 3 4 5 that affect the film industr Plans and or a s of reports for the Board that provides the most up 1 2 3 4 5 to date information concernin expenditures and revenue. COMMISSIONER'S JOB PERFORMANCE Rate 1-5 (5 bein the hi Comments Effectivel prepares and presents information on advanta of filmin within 1 2 3 4 5 the re to representatives of production companies, television studios, etc. Consistentl coordinates, ne and assists in all aspects of on-location filmin from pre-production throu principle photo and wrap activities 1 2 3 4 5 with both filmmakers and all in-state a municipalities, businesses, and the private sector. Consistenl meets with and escorts all out-of-state filmakin executives 1 2 3 4 5 interested in filmin in the Wilmin area. Efficientl and effectivel prepares and develops the operatin bud for the office reviews and authorizes proposed purchase re invoices and 1 2 3 4 5 pa necessar for the efficient operation of the office. Director successfull derives private fundin for commission in the amount 1 2 3 4 5 a upon b the Board. Displa abilit and skill to interpret and breakdown film scripts in order to find the best suitable locations within the re and effectivel present this 1 2 3 4 5 information to film decision-makin executives. COMMISSIONER'S RELATIONSHIP WITH THE COMMUNITY Rate 1-5 (5 bein the hi Comments Ensures that an accomodatin and courteous attitude is extended to all parties 1 2 3 4 5 involved includin the Board, crew and communit Develops a rapport with elected officials and communit leaders. 1 2 3 4 5 Communicates a positive ima of the WRFC throu the media. 1 2 3 4 5 Displa abilit to establish and maintain effective workin relationships with filmmakin executives and representatives production companies cit state, 1 2 3 4 5 and federal municipalities in-state film and video companies rental e houses technical support crews private businesses and the g eneral public. Effectivel coordinates presentations to in-state media and various or and civic g roups to include state, count and cit municipalities 1 2 3 4 5 throu the re Successfull educates the public on the positive impact of the film industr in 1 2 3 4 5 the Southeast Re 00000OAdditional Comments: Wl MINGTON lc�cfaA we L.F. &ww cftk= MAE= REGIONAL FILM COMMISSION INC. IT �' 1223 NORTH 23rd STREET s WILMINGTON, NC 28AO5 cwt www.wilmington- Film.com • commish @wilmington- film.com HawrW aNShcb ATTACHMENT "F" Member of in ASSOCIATION OF FILM COMMISSIONERS INTERNATIONAL W1 MINGTON Jams LF. Snitl� �� VAN= Vassar, V n REGIONAL FILM COMMISSION, INC. HvnorablaTw ,Jr. 1223 NORTH 23rd STREET • WILMINGTON, NC 28405 cww www.wilmington- film.com • commish @wilmington- film.com How iblfNSdfo WILMINGTON REGIONAL FILM COMMISSION INC. PRIVATE SECTOR SUPPORT ( Production Guide Ad S YEAR AD SALES REVENUE PROFIT 2012 (in progress) $40, $ 12, 000 2011 27 4 2010 34 11 2009 41 15 2008 42 11 2007 36 9 2006 36 11 2005 29 7 2004 32 10 2003 37 11 2002 41 15 2001 47 15 Member of ASSOCIATION OF FILM COMMISSIONERS INTERNATIONAL Wl MINGTON lc�cfaA we L.F. &ww cftk= MAE= REGIONAL FILM COMMISSION INC. IT �' 1223 NORTH 23rd STREET s WILMINGTON, NC 28AO5 cwt www.wilmington- Film.com • commish @wilmington- film.com HawrW aNShcb ATTACHMENT "G" Member of in ASSOCIATION OF FILM COMMISSIONERS INTERNATIONAL W1 MINGTON d� REGIONAL FILM COMMISSION, INC. iMftn V ftw V k& CWh= ,n 1223 NORTH 23rd STREET • WILMINGTON, NC 28405 CNgfJ nes www.wilmington film.com • commish @wilmington- film.com wbbm WILMINGTON REGIONAL FILM COMMISSION, INC. 2011 PRODUCTION TOTALS *AS OF 813112011 YEAR: 2011 TOTAL INQUIRIES 127 TOTAL PRODUCTION EXPENDITURES $ 92,000,000* TITLES FEATURES Journey 2: The Mysterious Island (New Line Cinema) Hick (Independent) Piranha 3DD (Dimension Films) Arthur Newman, Golf Pro (Independent) TELEVISION Cinderella Story: Once Upon A Song (Warner Premier) - MOW Eastbound & Down (HBO) — season 3 - Series One Tree Hill (WBTV) — season 8, 7 episodes - Series One Tree Hill (WBTV) — season 9, 9 episodes - Series Playing With Guns (Lionsgate TV) — Pilot Teen Spirit (ABC Family) - MOW Revenge (ABC Television) — Pilot Hart of Dixie (WBTV) — Pilot Game Time: Tackling The Past (Proctor & Gamble) — MOW Hallmark Hall of Fame Presents - A Smile As Big As It Gets — (McGee Street Productions) - MOW Member of ASSOCIATION OF FILM COMMISSIONERS INTERNATIONAL