PALM BEACH COUNTY SPORTS COMMISSION, INC.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2022, AND 2021

NOTE 6 – COMMITMENTS (Cont’d)

Operating lease expense totaled $13,800 and $15,407 for the years ended September 30, 2022 and 2021, respectively, recorded within Facility Expense on the accompanying statement of functional expenses.

The Commission entered into a multi-year agreement with NorthStar Travel Media LLC to host the TEAMS Conference and Expo to be held October 2 – 5, 2023, in West Palm Beach, Florida. This conference provides multi-year branding opportunities for the Commission as part of the agreement. Total amounts paid amounted to $40,000 for the year ended September 30, 2022.

Under the contract, the Commission is committed to additional payments for as follows: a payment in 2023, in the amount of $20,000 for sponsorship and marketing benefits. Additional funding will come in the form of a grant from the Commission, in the amount of $150,000 to be paid in two equal installments of $75,000. One payment is scheduled in 2023, and another scheduled to be paid on November 15, 2023, as per the agreement.

A Florida Sports Foundation grant, secured by the Commission, in the amount of $30,000 to be paid no later than November 15, 2023.

NOTE 7 - IN-KIND CONTRIBUTIONS

Donated goods and services that meet the criteria for recognition are reflected as in-kind contributions on the accompanying statement of activities. During the fiscal year, the County paid grants, indirect operating expenses, telephone, tax collector commissions, and inspector general fees on behalf of the Commission.

The Commission receives the use of donated facilities of its administrative offices provided by the County. The fair value of office space rent, common area maintenance, and related overhead costs are calculated by the County and are included within the Indirect Operating Expenses line item in the statement of activities.

Several business entities have donated goods and services including supplies, advertising, and professional services. These goods and services are recorded at their estimated fair value. In-kind contributions for the years ended September 30, 2022, and 2021 are as follows: