Page 1

JACKSONVILLE SYMPHONY ASSOCIATION (A NOT-FOR-PROFIT ORGANIZATION) AND

JACKSONVILLE SYMPHONY FOUNDATION (A NOT- FOR -PROFIT ORGANIZATION)

FINANCIAL REPORT YEARS ENDED JUNE 30, 2011 AND 2010


.


JACKSONVILLE SYMPHONY ASSOCIATION (A NOT-FOR-PROFIT ORGANIZATION) AND JACKSONVILLE SYMPHONY FOUNDATION

(A NOT-FOR-PROFIT ORGANIZATION)

TABLE OF CONTENTS

Report of independent certified public accountants

1

Financial statements: Combining statements of financial position

2

Combining statements of activities

3

Combining statements of cash flows

4

Notes to financial statements

5

Supplementary Data: Report of independent certified public accountants on the supplementary data

19

Combining schedules of financial position

20

Combining schedules of activities

22

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

24

Report of independent certified public accountants on the management assertion report

26

Management assertion report

27

Schedule of state financial assistance

28


501 Riverside Avenue, Suite 800 Jacksonville, FL 32202 Phone: 904.396.4015 Fax: 904.399.4012 www.TheLBAGroup.com

LBA CERTIFIED PUBLIC ACCOUNTANTS, PA Report of Independent Certified Public Accountants

To The Board of Directors of Jacksonville Symphony Association and Jacksonville Symphony Foundation Jacksonville, Florida We have audited the accompanying combining statements of financial position of the Jacksonville Symphony Association (a not-for-profit organization) and the Jacksonville Symphony Foundation (a not-for-profit organization) as of June 30, 2011 and 2010, and the related combining statements of activities and cash flows for the years then ended. These financial statements are the responsibility of the Jacksonville Symphony Association and Jacksonville Symphony Foundation’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Jacksonville Symphony Association and the Jacksonville Symphony Foundation as of June 30, 2011 and 2010, and the changes in their net assets and their cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated October 11, 2011, on our consideration of the Jacksonville Symphony Association and Jacksonville Symphony Foundation’s internal control over financial reporting and on our tests of their compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

October 11, 2011

THE LBA GROUP LBA Certified Public Accountants, PA • LBA Wealth Management, LLC LBA Healthcare Consulting Services, LLC • LBA Retirement Plan Services, LLC

1


JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION COMBINING STATEMENT OF FINANCIAL POSITION JUNE 30, 2011 Jacksonville Symphony Association Assets: Cash and cash equivalents Contributions receivable, net Other receivables and accrued interest Investments Property and equipment, net Other assets Total assets Liabilities and net assets: Liabilities: Accounts payable and accrued liabilities Deferred revenue - concert ticket sales and sponsorships Line of credit Total liabilities Net assets: Unrestricted: Undesignated Board designated Total unrestricted Temporarily restricted Total net assets Total liabilities and net assets

$

Jacksonville Symphony Foundation

Total

178,523 603,523 246,125 7,440,541 31,507 220,908

$

6,567,864 -

$

$ 8,721,127

$

6,567,864

$ 15,288,991

$

$

2,060

265,847 1,155,039 468,611 1,889,497

2,060

(2,625,399) 7,899,372 5,273,973 1,557,657 6,831,630 $ 8,721,127

6,565,804 6,565,804 6,565,804 $

6,567,864

$

178,523 603,523 246,125 14,008,405 31,507 220,908

267,907 1,155,039 468,611 1,891,557

(2,625,399) 14,465,176 11,839,777 1,557,657 13,397,434 $ 15,288,991


JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION COMBINING STATEMENT OF FINANCIAL POSITION JUNE 30, 2010 Jacksonville Symphony Association Assets: Cash and cash equivalents Contributions receivable, net Other receivables and accrued interest Investments Property and equipment, net Other assets Total assets Liabilities and net assets: Liabilities: Accounts payable and accrued liabilities Deferred revenue - concert ticket sales and sponsorships Line of credit Total liabilities Net assets: Unrestricted: Undesignated Board designated Total unrestricted Temporarily restricted Total net assets Total liabilities and net assets

$

Jacksonville Symphony Foundation

Total

569,395 682,978 113,147 7,560,195 60,910 180,063

$

5,321,961 -

$

$ 9,166,688

$

5,321,961

$ 14,488,649

$

$

1,030

251,369 1,090,962 500,000 1,842,331

1,030

(2,294,034) 8,041,932 5,747,898 1,576,459 7,324,357 $ 9,166,688

5,320,931 5,320,931 5,320,931 $

5,321,961

$

569,395 682,978 113,147 12,882,156 60,910 180,063

252,399 1,090,962 500,000 1,843,361

(2,294,034) 13,362,863 11,068,829 1,576,459 12,645,288 $ 14,488,649

See accompanying notes to financial statements.

2


JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION COMBINING STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2011

Jacksonville Symphony Association Unrestricted Board Temporarily Undesignated Designated Restricted Revenues and other support: Ticket sales and concert fees Contributions Grants Advertising Fund raising activities Investment income Gain on sale of investments Unrealized investment (loss) gain Other revenue Total revenues and other support

$

2,364,481 103,171 294,191 17,398 121,098 2,900,339

$

381,765 197,519 44,826 (1,861) 622,249

$

3,961,727 373,603 4,335,330

Jacksonville Symphony Foundation

Total $ 2,364,481 4,343,492 373,603 103,171 294,191 214,917 44,826 (1,861) 121,098 7,857,918

Board Designated $

Total

6,806 421,970 1,111,834 1,540,610

$

2,364,481 4,343,492 373,603 103,171 294,191 221,723 466,796 1,109,973 121,098 9,398,528

Net assets released from restricted and board designated

5,315,238

Expenses: Musical productions: Salaries and benefits Advertising and promotion Production expenses Guest artist fees Total musical productions

4,221,348 1,028,383 1,082,251 584,048 6,916,030

-

-

4,221,348 1,028,383 1,082,251 584,048 6,916,030

-

4,221,348 1,028,383 1,082,251 584,048 6,916,030

Supporting services: Interest expense Fund raising activities Administrative salaries and benefits General and administrative expenses Total supporting services Total expenses

7,361 279,074 1,089,719 254,758 1,630,912 8,546,942

68,744 1,057 69,801 69,801

-

7,361 347,818 1,089,719 255,815 1,700,713 8,616,743

29,639 29,639 29,639

7,361 347,818 1,089,719 285,454 1,730,352 8,646,382

1,244,873 5,320,931

752,146 12,645,288

$ 6,565,804

$ 13,397,434

(331,365) (2,294,034)

Change in net assets Net assets, beginning of year Net assets, end of year

$

(2,625,399)

(695,008)

(4,354,132)

(142,560) 8,041,932 $ 7,899,372

(18,802) 1,576,459 $

1,557,657

266,098

(492,727) 7,324,357 $ 6,831,630

(266,098)

-


JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION COMBINING STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2010

Jacksonville Symphony Association Unrestricted Board Temporarily Undesignated Designated Restricted Revenues and other support: Ticket sales and concert fees Contributions Grants Advertising Fund raising activities Investment income Gain on sale of investments Unrealized investment gain Other revenue Total revenues and other support

$

2,775,252 95,334 352,779 509 132,992 3,356,866

$

535,512 230,777 27,418 672,268 1,465,975

$

3,268,550 497,247 3,765,797

Jacksonville Symphony Foundation

Total $ 2,775,252 3,804,062 497,247 95,334 352,779 231,286 27,418 672,268 132,992 8,588,638

Board Designated $

8,520 151,266 527,206 686,992

Total $

2,775,252 3,804,062 497,247 95,334 352,779 239,806 178,684 1,199,474 132,992 9,275,630

Net assets released from restricted and board designated

4,570,453

Expenses: Musical Productions: Salaries and benefits Advertising and promotion Production expenses Guest artist fees Total musical productions

4,090,058 792,128 1,028,322 598,417 6,508,925

-

-

4,090,058 792,128 1,028,322 598,417 6,508,925

-

4,090,058 792,128 1,028,322 598,417 6,508,925

Supporting services: Interest expense Fund raising activities Administrative salaries and benefits General and administrative expenses Total supporting services Total expenses

7,781 393,149 1,076,696 295,151 1,772,777 8,281,702

27,514 15,324 42,838 42,838

-

7,781 420,663 1,076,696 310,475 1,815,615 8,324,540

33,862 33,862 33,862

7,781 420,663 1,076,696 344,337 1,849,477 8,358,402

509,542 6,814,815

407,686 4,913,245

917,228 11,728,060

$ 7,324,357

$ 5,320,931

$ 12,645,288

Change in net assets Net assets, beginning of year Net assets, end of year

$

(449,722)

(354,383) (1,939,651)

973,415 7,068,517

(2,294,034)

$ 8,041,932

(3,875,287)

(109,490) 1,685,949 $ 1,576,459

245,444

(245,444)

-

See accompanying notes to financial statements.

3


JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION COMBINING STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 2011

Cash flows from operating activities: Change in net assets Adjustments to reconcile change in net assets to net cash used by operating activities: Loss on disposal of assets Gain on sale of investments Unrealized investment loss (gain) Investment management fees Depreciation Net changes in: Contributions receivable Other receivables and accrued interest Other assets Accounts payable and accrued liabilities Deferred revenue Net cash used by operating activities

Jacksonville Symphony Association

Jacksonville Symphony Foundation

$

$ 1,244,873

Cash flows from investing activities: Purchases of investments Net decrease (increase) in money market and certificate of deposit investments Proceeds from sales of investments Purchases of property and equipment Net cash provided by investing activities Cash flows from investing activities: Net decrease in line of credit Net decrease in cash and cash equivalents Cash and cash equivalents, beginning of year

(492,727)

Total $

752,146

752 (44,826) 1,861 37,200

(421,970) (1,111,834) 25,527 -

752 (466,796) (1,109,973) 25,527 37,200

79,455 (132,978) (40,845) 14,478 64,077 (513,553)

1,030 (262,374)

79,455 (132,978) (40,845) 15,508 64,077 (775,927)

(1,401,714)

(116,623)

(1,518,337)

9,107 1,555,226 (8,549) 154,070

(20,986) 399,983 262,374

(11,879) 1,955,209 (8,549) 416,444

(31,389)

-

(31,389)

(390,872) 569,395

-

(390,872) 569,395

Cash and cash equivalents, ending of year

$

178,523

$

-

$

178,523

Supplemental disclosure of cash flow information: Interest paid

$

7,361

$

-

$

7,361


JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION COMBINING STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 2010

Cash flows from operating activities: Change in net assets Adjustments to reconcile change in net assets to net cash used by operating activities: Gain on sale of investments Unrealized investment gain Investment management fees Depreciation Net changes in: Contributions receivable Other receivables and accrued interest Other assets Accounts payable and accrued liabilities Deferred revenue Net cash used by operating activities

Jacksonville Symphony Association

Jacksonville Symphony Foundation

$

$

Cash flows from investing activities: Purchases of investments Net decrease in money market and certificate of deposit investments Proceeds from sales of investments Purchases of property and equipment Net cash provided by investing activities

509,542

407,686

Total $

917,228

(27,418) (672,268) 56,541

(151,266) (527,206) 24,400 -

(178,684) (1,199,474) 24,400 56,541

5,557 (32,488) (34,422) (2,161) (219,457) (416,574)

448 1,030 (244,908)

5,557 (32,040) (34,422) (1,131) (219,457) (661,482)

(921,718)

(519,844)

(1,441,562)

173,074 878,660 (20,574) 109,442

401,743 363,009 244,908

574,817 1,241,669 (20,574) 354,350

Cash flows from investing activities: Net increase in line of credit

500,000

-

500,000

Net increase in cash and cash equivalents Cash and cash equivalents, beginning of year

192,868 376,527

-

192,868 376,527

Cash and cash equivalents, ending of year

$

569,395

$

-

$

569,395

Supplemental disclosure of cash flow information: Interest paid

$

7,781

$

-

$

7,781

See accompanying notes to financial statements.

4


JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2011 AND 2010 1.

Organization The Jacksonville Symphony Association (the "Association") is a not-for-profit organization established to encourage and expand musical appreciation in the community. The Jacksonville Symphony Foundation (the “Foundation”) is a not-for-profit organization established to provide financial assistance and support to the Association. The Foundation was fully funded by investments transferred from the Association. The Association and the Foundation are collectively referred to as the “Symphony”.

2.

Summary of Significant Accounting Policies This summary of significant accounting policies of the Symphony is presented to assist in understanding the financial statements. The financial statements and accompanying notes are representations of the Symphony’s management. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the presentation of the financial statements. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that 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 expenses during the reporting period. Actual results could differ from those estimates. Fund Accounting To ensure observance of limitations and restrictions placed on the use of resources available to the Symphony, its accounts are maintained in accordance with the principles of fund accounting. This is the procedure by which resources are classified for accounting purposes into funds established according to their nature and objectives. Separate accounts are maintained for each fund. The assets, liabilities and fund balances of the Symphony are accounted for in self-balancing funds as follows: •

The Operating Fund represents the portion of expendable funds that are available for support of Association operations.

The Endowment Fund represents funds that are either designated for a particular use by the Board of Directors ("Board") or are subject to restrictions by the donor or grantor. Income from endowment investments may be used for support of Association operations.

The Guild Fund, controlled by volunteers of the Jacksonville Symphony Guild, represents the portion of expendable funds that is available for support of Jacksonville Symphony Guild and Association operations.

The Organ Fund represented funds that were designated for the restoration of a pipe organ. The restoration project was completed in fiscal year 2002 and the pipe organ was relinquished to the

5


JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2011 AND 2010 2.

Summary of Significant Accounting Policies (Continued) City of Jacksonville. All funds were then expendable funds available for support of Association operations. In 2011, the Symphony transferred the balance of the Organ Fund to the Operating Fund. •

The Bridge Fund represents funds that are either designed by the Board or were donated by a small group of donors to fund potential operating budgetary shortfalls that may occur in the next fiscal year.

The Foundation Fund represents funds that are designated for a particular use by the Board.

Net Asset Classifications Net assets, revenues, expenses, gains and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and the changes therein are classified as follows: a. Undesignated net assets - Net assets and contributions not subject to donor-imposed stipulations. b. Board designated net assets - Net assets and contributions subject to Board designation. Generally, the income earned on related investments is designated for general or specific purposes. Board designated net assets include investments designated as endowments, certain contributions received and accumulated gains or losses on permanently restricted endowments which are not stipulated by the donor or law for permanent reinvestment. c. Temporarily restricted net assets - Net assets and contributions subject to donor-imposed stipulations that may or will be met by actions of the Symphony and/or the passage of time. After the donor-imposed time or purpose restriction is satisfied, temporarily restricted net assets are reclassified to unrestricted net assets and reported within the combining statement of activities as net assets released from restrictions. There were no permanently restricted net assets at June 30, 2011 and 2010. Revenues are reported as increases in unrestricted net assets unless use of the related assets is limited by donor-imposed restrictions or Board action. Federal and local grants are recognized as unrestricted revenue to the extent expenses have been incurred under the terms of the respective grant agreements. Expenses are reported as decreases in unrestricted net assets. Gains and losses on investments and other assets or liabilities are reported as increases or decreases in Board designated net assets unless their use is restricted by donor stipulation, law, or by Board action. Contributions Contributions, including unconditional promises to give due in future periods, are recognized as revenues in the period made or received. Conditional promises to give, which depend upon specified future and uncertain events, are recognized as revenue when the conditions upon which they depend are substantially met. An allowance for uncollectible contributions receivable is provided based upon management's judgment including such factors as prior collection history, type of contribution, and nature of fundraising activity. It is the Symphony’s policy to charge off uncollectible accounts when management determines the receivable will not be collected. 6


JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2011 AND 2010 2.

Summary of Significant Accounting Policies (Continued) Contributions to be received after one year are discounted at an appropriate discount rate commensurate with the risks involved. Amortization of discounts is recorded as additional contribution revenue in accordance with donor-imposed restrictions, if any, on the contributions. Contributions received with donor-imposed restrictions that are met in the same year as the contribution is received are reported initially as revenues of the temporarily restricted net asset class, and a reclassification to unrestricted net assets is made to reflect the expiration of such restrictions. Contributions of property and equipment without donor stipulations concerning the use of such longlived assets are reported as revenues of the unrestricted net asset class. Contributions of assets other than cash are recorded at their estimated fair value at the date received. Contributions of cash or other assets to be used to acquire property and equipment are reported as revenues of the temporarily restricted net asset class; the restrictions are considered to be released at the time of acquisition of such long-lived assets. A substantial number of volunteers have donated significant amounts of their time to the Symphony. No amounts have been reflected in the statements for contributed services since the contribution of services did not create or enhance non-financial assets or require specialized skills. When professional services are donated, in-kind values are recorded as contributions. Cash and Cash Equivalents The Symphony considers all highly liquid investments purchased with an initial maturity of three months or less to be cash equivalents, except for certain money market and commercial paper investments held within the marketable securities portfolio. The Symphony places its temporary cash investments with FDIC insured institutions. At times, such investments may be in excess of FDIC insurance limits. The Symphony does not believe it is exposed to any significant credit risk with respect to cash and cash equivalents. Investments Investments are carried at fair value (see note 7 for fair value measurements). Fair value is the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Realized and unrealized gains and losses are included in the combining statements of activities. Board Designated Endowment At June 30, 2011 and 2010, the Board of Directors had designated $14,465,176 and $13,362,863 respectively of unrestricted net assets as a general endowment to support the mission of the Symphony. Since that amount resulted from an internal designation and is not donor-restricted, it is classified and reported as unrestricted net assets. The Symphony has a spending policy of appropriating for distribution each year up to 5% of its Board designated endowment’s fair market value at year end. In establishing this policy, the Symphony considered the long-term expected investment return on its endowment. Accordingly, over the long term, the Symphony expects the current spending policy to allow its general endowment fund to grow

7


JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2011 AND 2010 2.

Summary of Significant Accounting Policies (Continued) at an average of 3.5% annually. This is consistent with the Symphony’s objective to maintain, and preferably enhance, the transfer power of its assets in perpetuity. To achieve that objective, the Symphony has adopted an investment policy that attempts to maximize total return consistent with an acceptable level of risk. Endowment assets are invested in a well diversified asset mix, which includes equity and debt securities and certain approved alternative investments, that is intended to result in a consistent inflation-protected rate of return that has sufficient liquidity to make an annual distribution of 5%, while growing the fund if possible. Accordingly, the Symphony expects its endowment assets, over time, to produce an average rate of return of approximately 8.5%. Actual returns in any given year may vary from this amount. Investment risk is measured in terms of the total endowment fund; investment assets and allocation between asset classes and strategies are managed to not expose the fund to unacceptable levels of risk. Property and Equipment Property and equipment with values of $200 or more, and a useful life longer than a year, are capitalized. Property and equipment are stated at cost. Maintenance and repairs are charged to expense as incurred. When items of property and equipment are sold or otherwise disposed of, the asset and related accumulated depreciation accounts are eliminated, and any gain or loss is included in operations. Depreciation is provided over the estimated useful life (3 to 10 years) of the related assets using the straight-line method. The Symphony periodically reviews property and equipment for indicators of potential impairment. If this review indicates that the carrying amount of these assets may not be recoverable, the Symphony estimates the future cash flows expected to result from the operations of the asset and its eventual disposition. If the sum of these future cash flows (undiscounted and without interest charges) is less than the carrying amounts of the asset, the Symphony records an impairment loss based on the fair value of the asset. Deferred Revenue The Symphony records amounts received for the purchase of the following seasons' concert tickets and sponsorships as deferred revenue. These amounts will be recognized as revenue in the related concert year. Income Taxes The Association and the Foundation are not-for-profit organizations as described in Section 501(c)(3) of the Internal Revenue Code and are exempt from federal and state income taxes on related income pursuant to Section 501(a) of the Internal Revenue Code and Chapter 220.13 of the Florida Statutes, respectively. The Symphony evaluates its tax positions for any uncertainties based on the technical merits of the position taken. The Symphony recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be upheld on examination by taxing authorities.

8


JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2011 AND 2010 2.

Summary of Significant Accounting Policies (Continued) Subsequent Events The Symphony has evaluated events through the date of the report of independent certified public accountants, the date the financial statements were available to be issued.

3.

Line of Credit The Symphony has a $3,600,000 line of credit which is due on demand and bears interest at LIBOR plus 0.5% (1.23% at June 30, 2011). The line is secured by investments in Berkshire Hathaway and other corporate stocks, SunTrust cash reserves and various corporate and U.S. Treasury Bonds.

4.

Property and Equipment Property and equipment consisted of the following at June 30: 2011 Furniture and fixtures Instruments Leasehold improvements

$

Total property and equipment Less: accumulated depreciation and amortization Property and equipment, net 5.

734,888 393,597 344,953

2010 $

1,473,438 (1,441,931) $

31,507

734,888 392,567 344,953 1,472,408 (1,411,498)

$

60,910

Operating Lease The Association has a two year lease on its facilities which expires June 30, 2013. Rent expense was $95,998 and $112,752 for the years ended June 30, 2011 and 2010, respectively. Future minimum lease payments under this non-cancelable operating lease amount to $96,330 for each of the years ended June 30, 2013 and 2012. The Association receives rent-free rehearsal space for the Jacksonville Symphony Youth Orchestra as a contribution from an unrelated party. The Association recognized $323,580 and $197,411 for such facilities in the combining statements of activities as both revenue and an expense accordance with authoritative guidance for each of the years ended June 30, 2011 and 2010. These amounts are included as in-kind production expense in Note 8.

9


JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2011 AND 2010 6.

Investments The Association’s Endowment Fund investments consisted of the following at June 30, 2011: Cost Money market funds: SunTrust Merrill Lynch Wells Fargo Regions Certificate of deposit-SunTrust Federal Farm Credit Bank bonds U.S. Treasury notes U.S. Treasury bonds Corporate bonds Corporate stock Mutual funds - fixed income Total investments

Market

$

382,256 89,289 27,204 15,478 1,230,372 50,185 148,689 228,839 1,558,452 1,147,649 1,424,770

$

382,256 89,289 27,204 15,478 1,230,372 53,281 153,492 274,277 1,769,571 2,015,372 1,429,949

$

6,303,183

$

7,440,541

The Foundation Fund investments consisted of the following at June 30, 2011: Cost

Market

Money market funds-Wells Fargo Corporate stock Closed end funds Lone Pine Capital, LLC Semper Vic Partners, L.P.

$

23,978 491,644 69,305 490,305 1,475,000

$

23,978 569,068 102,201 2,577,806 3,294,811

Total investments

$

2,550,232

$ 6,567,864

The Association’s Endowment Fund investments consisted of the following at June 30, 2010: Cost Money market funds: SunTrust Bank of America Wachovia Regions Merrill Lynch Certificate of deposit-SunTrust Federal Farm Credit Bank bonds U.S. Treasury notes U.S. Treasury bonds Corporate bonds Corporate stock Mutual funds - fixed income Total investments

Market

$

419,920 78,890 15,784 15,470 10,373 1,213,269 50,185 199,623 368,120 1,715,631 950,762 1,266,267

$

419,920 78,890 15,784 15,470 10,373 1,213,269 53,938 210,016 450,118 1,919,068 1,833,066 1,340,283

$

6,304,294

$

7,560,195 10


JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2011 AND 2010 6.

Investments (Continued) The Foundation Fund investments consisted of the following at June 30, 2010:

Money market funds-Smith Barney Corporate stock Closed end funds Lone Pine Capital, LLC Semper Vic Partners, L.P.

$

Total investments

$

Cost 2,992 525,687 69,305 490,305 1,475,000 2,563,289

$

$

Market 2,992 488,349 85,176 2,234,758 2,510,686 5,321,961

Lone Pine Capital, LLC’s investment objective is to provide investors with compound annual long-term returns that are superior to the broad market averages while having less risk than the overall stock market. To accomplish this, the partnership invests primarily in public equity securities of U.S. and non-U.S. issuers. The partnership also invests (no more than 5% of partners' capital) in private placement securities, may utilize both over-the-counter and exchange traded instruments (including derivative instruments such as options, swaps, and futures on equities and equity indices and other equity derivatives), invest in other funds and invest in the high yield and convertible fixed income markets. The partnership does not engage in speculative trading in the interest rate, currency or physical commodities markets. Semper Vic Partners, L.P., is a limited partnership whose purpose is to serve as a fund through which the assets of its partners may be utilized in investing, holding and trading in securities, other financial instruments and rights and options relating thereto. 7.

Fair Value Measurements Authoritative guidance provides the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under authoritative guidance are described as follows: Level 1

Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Symphony has the ability to access.

Level 2

Inputs to the valuation methodology include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

11


JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2011 AND 2010 7.

Fair Value Measurements (Continued) Level 3

Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. There have been no changes in the methodologies used at June 30, 2011 and 2010. Following is a description of the valuation methodologies used for assets measured at fair value: Mutual funds, money market funds and closed end funds: Valued at the net asset value of the units reported on the active market on which the individual securities are traded. Corporate stock: Valued at the closing price reported on the active market on which the individual securities are traded. Certificates of deposit: Valued using a third party data service’s specialized certificate of deposit values. Corporate bonds: Valued using matrix pricing. Matrix pricing is a mathematical technique used without relying exclusively on quoted prices for the specific investments, but rather on the investments’ relationship to other benchmark quoted investments. Government bonds and notes: Valued using a third party data pricing service. Private investment partnership: Values of the securities and assets held are determined based on the last sales price, or the last current bid quotation, as applicable. Valuations of assets for which market quotations are not readily available are determined at the discretion of the investment manager. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Symphony believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

12


JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2011 AND 2010 7.

Fair Value Measurements (Continued) The following table sets forth by level, within the fair value hierarchy, the Symphony’s financial instruments at fair value at June 30, 2011: Level 1 1,429,949 102,201

Level 2 $

Level 3 -

$

Total

Mutual funds – fixed income Closed end funds Corporate stocks: Basic materials Consumer goods Consumer services Financials Industrials Oil and gas Technology Certificates of deposit Money market funds U.S. Treasury notes Federal farm credit bank bonds U.S. Treasury bonds Corporate bonds Private investment partnerships

$

-

$

1,429,949 102,201

32,382 136,648 82,778 2,102,765 39,330 140,732 49,805 1,230,372 538,205 153,492 -

53,281 274,277 1,769,571 -

5,872,617

32,382 136,648 82,778 2,102,765 39,330 140,732 49,805 1,230,372 538,205 153,492 53,281 274,277 1,769,571 5,872,617

Total assets at fair value

$ 6,038,659

$ 2,097,129

$ 5,872,617

$ 14,008,405

Level 3 Gains and Losses The following table sets forth a summary of changes in the fair value of the Symphony’s level 3 assets for the year ended June 30, 2011: Private Investment Partnerships Balance, beginning of year Management fees Sale of investment shares Realized and unrealized gains

$ 4,745,444 (25,527) (267,000) 1,419,700

Balance, end of year

$ 5,872,617

13


JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2011 AND 2010 7.

Fair Value Measurements (Continued) The following table sets forth by level, within the fair value hierarchy, the Symphony’s financial instruments at fair value at June 30, 2010: Level 1

Level 2 $

Level 3 -

$

Total

Mutual funds – fixed income Close end funds Corporate stocks: Basic materials Consumer goods Consumer services Financials Industrials Oil and gas Technology Certificates of deposit Money market funds U.S. Treasury notes Federal farm credit bank bonds U.S Treasury bonds Corporate bonds Private investment partnerships

$ 1,340,283 85,176

-

30,870 75,292 74,025 1,913,153 24,815 79,524 123,736 1,213,269 543,429 210,016 -

53,938 450,118 1,919,068 -

4,745,444

30,870 75,292 74,025 1,913,153 24,815 79,524 123,736 1,213,269 543,429 210,016 53,938 450,118 1,919,068 4,745,444

Total assets at fair value

$ 5,713,588

$ 2,423,124

$ 4,745,444

$ 12,882,156

-

$

1,340,283 85,176

Level 3 Gains and Losses The following table sets forth a summary of changes in the fair value of the Symphony’s level 3 assets for the year ended June 30, 2010: Private Investment Partnerships Balance, beginning of year Management fees Realized and unrealized losses

$

4,082,317 (24,400) 687,527

Balance, end of year

$

4,745,444

There were no transfers between Level 1, Level 2, or Level 3 investments during the years ended June 30, 2011 and 2010.

14


JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2011 AND 2010 8.

Contributions Contributions to the Operating Fund include the following in-kind amounts for the years ended June 30: 2011 Production expenses General and administrative costs Advertising and promotions Fundraising activities

2010

$

325,562 4,500 6,102

$

197,411 5,674 20,505 33,320

$

336,164

$

256,910

Contributions receivable consisted of the following at June 30: 2011 Unconditional promises expected to be collected in: Less than one year Between one to five years Total contributions Less: allowance for uncollectible contributions Less: discount to present value

2010

$

548,583 200,500 749,083 (112,212) (33,348)

$

652,284 210,000 862,284 (144,078) (35,228)

$

603,523

$

682,978

Contributions have been discounted by an 8% annual rate of interest. One donor represented 26% and 23% of contributions receivable at June 30, 2011 and 2010, respectively. 9.

Grant Programs City of Jacksonville Appropriations from the City of Jacksonville Cultural Services Grant Program (the “Grant”) for 2011 and 2010 are included in the Operating Fund and are maintained in a separate account at SunTrust Bank. City of Jacksonville Cultural Services Grant – Operating (no grant number) Receipt of Funds City FY 2010-2011

City FY 2009-2010

Amount of award (per city budget ordinance) Actual funds received from city in last audit period Actual amount received this period

$

318,861 (239,146)

$

Amount remaining to be distributed

$

79,715

$

364,747 (266,968) (97,779) -

15


JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2011 AND 2010 9.

Grant Programs (Continued) City FY 2010-2011 Actual 10/1/2010 – 6/30/2011

Budgeted

Actual 7/1/2011 – 9/30/2011

Total Actual

Remaining Balance

Item Artistic salary expenses

$

318,861

$

318,861

$

-

$

318,861

$

-

Total

$

318,861

$

318,861

$

-

$

318,861

$

-

City FY 2009-2010 Actual 10/1/2009 – 6/30/2010

Budgeted

Actual 7/1/2010 – 9/30/2010

Total Actual

Remaining Balance

Item Artistic salary expenses

$

364,747

$

364,747

$

-

$

364,747

$

-

Total

$

364,747

$

364,747

$

-

$

364,747

$

-

State of Florida Appropriations from the State of Florida, Division of Cultural Affairs are included in the Operating Fund. The total grant awards of $7,242 and $25,000 were expended toward guest artist fees during the years ended June 30, 2011 and 2010, respectively. Other Other federal, state and local grant revenues were $47,500 and $107,500 for the years ended June 30, 2011 and 2010, respectively. 10. Commitments The Symphony entered into a collective bargaining agreement beginning January 16, 2008, with its Full and Core Orchestra musicians, which represents 100% of the Symphony's musician labor force. This contract will terminate on August 31, 2012. 11. Fine Arts Investments The Association has three endowment programs (Fine Arts I, Fine Arts II and Fine Arts III) with assets held at Wells Fargo that received matching funds from the State. The Association contributed $360,000 and the State matched $240,000 in each case. The Association is required, at all times, to maintain the $600,000 for each award in these separate accounts.

16


JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2011 AND 2010 11. Fine Arts Investments (Continued) These accounts consisted of the following, and are included in Board designated net assets, at June 30: 2011 Fine Arts 2 Cost Market

Fine Arts 1 Cost Market Money market funds U.S. Treasury notes Corporate bonds Mutual funds fixed income

$

$

1,574 185,979

$

974 151,919

$

974 159,156

$

1,881 98,076 -

$

1,881 103,184 -

411,921

413,364

433,499

435,794

494,987

496,259

65,940

65,008

65,155

64,234

65,155

64,234

$ 656,292

$ 665,925

$ 651,547

$ 660,158

$ 660,099

$ 665,558

Corporate stocks Total

1,574 176,857

Fine Arts 3 Cost Market

2010 Fine Arts 2 Cost Market

Fine Arts 1 Cost Market 2,232 51,109 207,477

$

2,232 61,476 218,765

$

356 88,172 202,953

$

356 107,356 212,072

Fine Arts 3 Cost Market

Money market funds U.S. Treasury bonds U.S. Treasury notes Corporate bonds Mutual funds fixed income

$

$

2,569 149,010 -

$

2,569 157,432 -

366,065

388,979

332,721

347,913

482,480

515,127

Total

$ 626,883

$ 671,452

$ 624,202

$ 667,697

$ 634,059

$ 675,128

12. Restrictions and Limitations on Net Asset Balances Temporarily restricted net assets consisted of gifts and other unexpended revenues and gains available for Operating Fund Program services of $1,557,657 and $1,576,459 at June 30, 2011 and 2010, respectively. 13. Transfers Net Assets Released From Temporary Restrictions Net assets are released from temporary restrictions through the occurrence of expenses satisfying the restricted purposes or by occurrence of events specified by the donors and are summarized as follows for the years ended June 30: 2011

2010

Utilization of time restricted contributions Utilization of purpose restricted contributions

$

3,134,997 1,219,135

$

2,458,504 1,416,783

Net assets released from temporary restrictions

$

4,354,132

$

3,875,287 17


JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2011 AND 2010 13. Transfers (Continued) Net Assets Released from Board Designated The Symphony Board of Directors approved releases of Board designated net assets to undesignated net assets as follows for the years ended June 30: 2011 Bridge Fund Foundation Fund* Endowment Fund * Total release of Board designated net assets

2010

$

317,000 266,098 378,008

$

100,000 245,640 349,526

$

961,106

$

695,166

*These transfers to the Association’s Operating Fund are consistent with the Association’s "Endowment Investment and Spending Policy".

18


SUPPLEMENTARY DATA


501 Riverside Avenue, Suite 800 Jacksonville, FL 32202 Phone: 904.396.4015 Fax: 904.399.4012 www.TheLBAGroup.com

LBA CERTIFIED PUBLIC ACCOUNTANTS, PA

Report of Independent Certified Public Accountants on the Supplementary Data

To the Board of Directors of Jacksonville Symphony Association and Jacksonville Symphony Foundation Jacksonville, Florida We have audited the combining financial statements of Jacksonville Symphony Association and Jacksonville Symphony Foundation (collectively the "Symphony") as of and for the years ended June 30, 2011, and 2010 and have issued our report thereon dated October 11, 2011, which contained an unqualified opinion on those combining financial statements. Our audits were performed for the purpose of forming an opinion on the combining financial statements as a whole. The combining schedules of financial position and activities on pages 20 through 23 are presented for purposes of additional analysis and are not a required part of the combining financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the combining financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the combining financial statements or to the combining financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the combining financial statements as a whole.

October 11, 2011

THE LBA GROUP LBA Certified Public Accountants, PA • LBA Wealth Management, LLC LBA Healthcare Consulting Services, LLC • LBA Retirement Plan Services, LLC

19


JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION

COMBINING SCHEDULE OF FINANCIAL POSITION JUNE 30, 2011

Operating Fund Assets: Cash and cash equivalents Contributions receivable, net Due (to) from other funds Other receivables and accrued interest Investments Property and equipment, net Other assets Total assets Liabilities and net assets: Liabilities: Accounts payable and accrued liabilities Deferred revenue - concert ticket sales and sponsorships Line of credit Total liabilities Net assets Total liabilities and net assets

Bridge Fund

Guild Fund

$

5,829 376,644 (1,029,726) 194,706 31,507 220,324

$

54,394 1,078,040 -

$

172,694 17,036 584

$

(200,716)

$

1,132,434

$

190,314

$

265,847

$

-

$

-

1,146,584 468,611 1,881,042 (2,081,758) $

(200,716)

1,132,434 $

1,132,434

8,455 8,455 181,859 $

190,314


Jacksonville Symphony Association Total

Endowment Fund

Jacksonville Symphony Foundation

Total

$

172,485 (48,314) 34,383 7,440,541 -

$

178,523 603,523 246,125 7,440,541 31,507 220,908

$

6,567,864 -

$

178,523 603,523 246,125 14,008,405 31,507 220,908

$

7,599,095

$

8,721,127

$

6,567,864

$

15,288,991

$

-

$

265,847

$

2,060

$

267,907

7,599,095 $

7,599,095

1,155,039 468,611 1,889,497 6,831,630 $

8,721,127

2,060 6,565,804 $

6,567,864

1,155,039 468,611 1,891,557 13,397,434 $

15,288,991

See accompanying report of independent certified public accountants on the supplementary data.

20


JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION COMBINING SCHEDULE OF FINANCIAL POSITION JUNE 30, 2010

Operating Fund Assets: Cash and cash equivalents Contributions receivable, net Due (to) from other funds Other receivables and accrued interest Investments Property and equipment, net Other assets Total assets Liabilities and net assets: Liabilities: Accounts payable and accrued liabilities Deferred revenue - concert ticket sales and sponsorships Line of Credit Total liabilities Net assets Total liabilities and net assets

Organ Fund

Bridge Fund

$

291,410 289,235 (765,986) 59,817 60,910 179,668

$

11,025 -

$

152,514 913,275 -

$

115,054

$

11,025

$

1,065,789

$

251,269

$

-

$

-

1,085,417 500,000 1,836,686 (1,721,632) $

115,054

-

1,065,789

11,025 $

11,025

$

1,065,789


Guild Fund

Endowment Fund

Jacksonville Symphony Association Total

Jacksonville Symphony Foundation

Total

$

277,985 (110,000) 20 395

$

241,229 (48,314) 53,310 7,560,195 -

$

569,395 682,978 113,147 7,560,195 60,910 180,063

$

5,321,961 -

$

569,395 682,978 113,147 12,882,156 60,910 180,063

$

168,400

$

7,806,420

$

9,166,688

$

5,321,961

$

14,488,649

$

100

$

-

$

251,369

$

1,030

$

252,399

5,545 5,645 162,755 $

168,400

7,806,420 $

7,806,420

1,090,962 500,000 1,842,331 7,324,357 $

9,166,688

1,030 5,320,931 $

5,321,961

1,090,962 500,000 1,843,361 12,645,288 $

14,488,649

See accompanying report of independent certified public accountants on the supplementary data.

21


JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION

COMBINING SCHEDULE OF ACTIVITIES YEAR ENDED JUNE 30, 2011

Undesignated Operating Fund Revenue, gains and other support Ticket sales and concert fees Contributions Grants Advertising Fund raising activities Interest income Gain on sale of investments Unrealized investment (loss) gain Other revenue Total revenue, gains and other support

$

2,364,481 3,959,847 373,603 103,171 59,460 121,098 6,981,660

Board Designated

Organ Fund $

Guild Fund -

$

Endowment Fund

234,731 17,398 252,129

$

197,519 44,826 (1,861) 240,484

11,025 102,557 20,682 266,098 378,008

(11,025) -

(102,557) -

(378,008)

Expenses Musical productions: Salaries and benefits Advertising and promotion Production expenses Guest artist fees Total musical productions

4,221,348 1,028,383 1,082,251 584,048 6,916,030

-

-

-

Supporting activities: Interest expense Fund raising activities Administrative salaries and benefits General and administrative expenses Total supporting activities Total expenses

7,361 148,606 1,089,719 254,758 1,500,444 8,416,474

-

130,468 130,468 130,468

68,744 1,057 69,801 69,801

(11,025)

19,104

(207,325)

-

-

-

(11,025)

19,104

(207,325)

11,025

162,755

Transfers from organ fund Transfers from guild fund Transfers from future year annual fund Transfers from foundation Transfers from endowment fund

Change in net assets before non-recurring transactions

(656,444)

Release from board designated bridge fund for budget shortfall

317,000 (339,444)

Change in net assets

(2,467,814)

Net assets, beginning of year Net assets, end of year

$

(2,807,258)

$

-

$

181,859

7,806,420 $

7,599,095


Board Designated Bridge Fund $

381,765 381,765

$

1,880 1,880

$

-

$

$

6,806 421,970 1,111,834 1,540,610

-

-

4,221,348 1,028,383 1,082,251 584,048 6,916,030

-

4,221,348 1,028,383 1,082,251 584,048 6,916,030

-

-

-

7,361 347,818 1,089,719 255,815 1,700,713 8,616,743

29,639 29,639 29,639

7,361 347,818 1,089,719 285,454 1,730,352 8,646,382

381,765

1,880

1,244,873

752,146

-

-

1,244,873

752,146

5,320,931

12,645,288

6,565,804

$ 13,397,434

(20,682)

1,880

235,512

830,277 $

832,157

(492,727)

-

-

(20,682)

(492,727)

746,182 $

725,500

(266,098) -

$ 2,364,481 4,343,492 373,603 103,171 294,191 221,723 466,796 1,109,973 121,098 9,398,528

-

64,765

266,098 -

Total

-

300,277

(20,682) -

2,364,481 4,343,492 373,603 103,171 294,191 214,917 44,826 (1,861) 121,098 7,857,918

Jacksonville Symphony Foundation

-

(317,000)

$

Jacksonville Symphony Association Total

Temporarily Restricted Net Assets Future Year(s) Bridge Fund Annual Fund

7,324,357 $

6,831,630

$

-

See accompanying report of independent certified public accountants on the supplementary data.

22


JACKSONVILLE SYMPHONY ASSOCIATION AND JACKSONVILLE SYMPHONY FOUNDATION COMBINING SCHEDULE OF ACTIVITIES YEAR ENDED JUNE 30, 2010

Undesignated Operating Fund

Board Designated

Organ Fund

Guild Fund

Endowment Fund

Revenue, gains and other support Ticket sales and concert fees

$

Contributions

2,775,252

$

-

$

-

$

-

3,208,035

-

-

200,000

497,247

-

-

-

Advertising

95,334

-

-

-

Fund raising activities Interest income

83,165 -

-

269,614 509

230,777

-

-

-

27,418

Grants

Gain on sale of investments Unrealized investment gain

-

-

-

672,268

132,992

-

-

-

Total revenue, gains and other support

6,792,025

-

270,123

1,130,463

Transfers from guild fund Transfers from future year annual fund

147,400 116,005

-

(147,400) -

Transfers from foundation

245,640

-

-

Transfers from endowment fund

349,526

-

-

Musical productions: Salaries and benefits Advertising and promotion

4,090,058 792,128

-

-

-

Production expenses Guest artist fees Total musical productions

1,028,322 598,417 6,508,925

-

-

-

7,781 253,468

2,500

137,181

27,514

1,076,696 295,151

-

-

15,324

1,633,096

2,500

137,181

42,838

8,142,021

2,500

137,181

42,838

(2,500)

(14,458)

737,903

Other revenue

(349,722)

Expenses

Supporting activities: Interest expense Fund raising activities Administrative salaries and benefits General and administrative expenses Total supporting activities Total expenses Change in net assets before non-recurring transactions

(491,425)

Release from bridge fund for special marketing initiatives, budget shortfall Transfer from board designated bridge fund for Community Challenge Grant Change in net assets

-

-

-

100,000

-

-

-

(337,425) (2,130,389)

Net assets, beginning of year Net assets, end of year

54,000

$

(2,467,814)

$

(2,500)

(14,458)

13,525

177,213

11,025

$

162,755

737,903 7,068,517 $

7,806,420


Board Designated

Temporarily Restricted Net Assets

Temporarily Restricted Net Assets Future Year(s)

Bridge Fund

Bridge Fund

Annual Fund

$

335,512 -

$

-

-

-

672,268

-

132,992

-

132,992

8,588,638

686,992

9,275,630

-

-

-

60,515

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(116,005)

2,775,252 3,804,062 497,247 95,334 352,779 231,286 27,418

$

Total

-

-

$

Jacksonville Symphony Foundation

60,515 -

335,512

8,520 151,266

$

527,206

245,640

1,199,474

(245,640)

-

4,090,058 792,128 1,028,322 598,417 6,508,925

-

4,090,058 792,128 1,028,322 598,417 6,508,925

-

7,781 420,663

-

7,781 420,663

-

-

1,076,696 310,475

33,862

1,076,696 344,337

-

-

-

1,815,615

33,862

1,849,477

-

-

-

8,324,540

33,862

8,358,402

335,512

60,515

509,542

407,686

917,228

-

-

-

-

-

-

-

-

509,542

407,686

917,228

6,814,815

4,913,245

11,728,060

-

235,512

6,515

-

823,762

235,512

(116,005)

(54,000)

(100,000)

$

830,277

(196)

2,775,252 3,804,062 497,247 95,334 352,779 239,806 178,684

196

-

$

Jacksonville Symphony Association Total

(116,005) 862,187 $

746,182

$

7,324,357

$

5,320,931

$

12,645,288

See accompanying report of independent certified public accountants on the supplementary data.

23


501 Riverside Avenue, Suite 800 Jacksonville, FL 32202 Phone: 904.396.4015 Fax: 904.399.4012 www.TheLBAGroup.com

LBA CERTIFIED PUBLIC ACCOUNTANTS, PA

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

To the Board of Directors of Jacksonville Symphony Association and Jacksonville Symphony Foundation Jacksonville, Florida We have audited the combining financial statements of Jacksonville Symphony Association and Jacksonville Symphony Foundation (collectively the "Symphony") as of and for the year ended June 30, 2011, and have issued our report thereon dated October 11, 2011. We conducted our audit 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. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Symphony’s internal control over financial reporting as a basis for designing our auditing procedures 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 Symphony’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Symphony’s internal control over financial reporting. 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. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above.

THE LBA GROUP LBA Certified Public Accountants, PA • LBA Wealth Management, LLC LBA Healthcare Consulting Services, LLC • LBA Retirement Plan Services, LLC

24


Compliance and Other Matters As part of obtaining reasonable assurance about whether the Symphony’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, 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. This report is intended solely for the information and use of the Board of Directors, management, federal and state awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.

October 11, 2011

25


501 Riverside Avenue, Suite 800 Jacksonville, FL 32202 Phone: 904.396.4015 Fax: 904.399.4012 www.TheLBAGroup.com

LBA CERTIFIED PUBLIC ACCOUNTANTS, PA

Report of Independent Certified Public Accountants on the Management Assertion Report

To the Board of Directors of Jacksonville Symphony Association Jacksonville, Florida We have examined management’s assertion, included in the accompanying Management Assertion Report, that the Jacksonville Symphony Association (the “Association”) complied with the allowable cost requirements established in the grant agreements applicable to grant expenditures identified on the Schedule of State Financial Assistance for the year ended June 30, 2011. Management is responsible for the Association’s compliance with those requirements. Our responsibility is to express an opinion on management’s assertion about the Association’s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Association’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Association’s compliance with specified requirements. In our opinion, management’s assertion that the Association complied with the aforementioned requirements during the year ended June 30, 2011 is fairly stated, in all material respects.

October 11, 2011

THE LBA GROUP LBA Certified Public Accountants, PA • LBA Wealth Management, LLC LBA Healthcare Consulting Services, LLC • LBA Retirement Plan Services, LLC

26


JACKSONVILLE SYMPHONY ASSOCIATION SCHEDULE OF STATE FINANCIAL ASSISTANCE YEAR ENDED JUNE 30, 2011

State Agency And Program Title Florida Department of State, Division of Cultural Affairs: General Program Support Grant

State Contract/Grant Number 11.6.0174

Expenditures $

7,242

28

2011 Audited Finacial Statements  

Financials