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Home My WebLink About2007-08 Ski Ashland Financial Report ~ ~ J~@l1;Jr ocr ' / - < Vfl~!i!J 8 Y: ...~ 2008 /!!/ -...---.. ...... '- ~ l_ MT. ASHLAND ASSOCIATION L REVIEW REPORT '-- For The Years Ended June 30, 2008 and 2007 'L L RICHARD W. BREWSTER, CPA, PC CERTIFIED PUBLIC ACCOUNTANT MEDFORD MT. ASHLAND ASSOCIATION REVIEW REPORT For The Years Ended June 30, 2008 and 2007 RICHARD W. BREWSTER, CPA, PC CERTIFIED PUBLIC ACCOUNTANT MEDFORD MT. ASHLAND ASSOCIATION For the Years Ended June 30,2008 and 2007 TABLE OF CONTENTS Paae Accountants Review Report 1 Financial Statements: Statements of Financial Position 2 Statements of Activities 3 Statements of Cash Flows 4 Notes to Financial Statements 5-11 Supplementary Information Schedules of Functional Expenses 12-13 ACCOUNTANT'S REVIEW REPORT RICHARD W. BREWSTER, CPA, PC CERTIFIED PUBLIC ACCOUNTANT 670 SUPERIOR COURT, #106 MEDFORD, OREGON 97504 (541) 773-1885 · FAX (541) 770-1430 www.rwbrewstercpa.com ACCOUNTANT'S REVIEW REPORT To the Board of Directors of Mt. Ashland Association Ashland, Oregon 97520 I have reviewed the accompanying statement of financial position of Mt. Ashland Association, (a not-for-profit corporation), as of June 30,2008, and the related statements of activities and cash flows for the year then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these financial statements is the representation of the management of Mt. Ashland Association. A review consists principally of inquiries of Association personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit, in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, I do not express such an opinion. Based on my review, I am not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles. The 2007 financial statements of Mt. Ashland Association were reviewed by other accountants, whose report, dated August 29,2007, stated that they were not aware of any material modifications that should be made to those statements in order for them to be in conformity with generally accepted accounting principles. My review was made for the purpose of expressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles. The information included in the accompanying Schedule of Functional Expenses is presented only for supplementary analysis purposes. Such information has not been subjected to inquiry and analytical procedures applied in the review of the basic financial statements, but was compiled from information that is the representation of management, without audit or review. Accordingly, I do not express an opinion or any other form of assurance on the supplementary information. This report is intended solely for the information and use of the Board of Directors, management, and others within the Association, and is not intended to be and should not be used by anyone other than theses specified parties. V Richard W. Brewster Certified Public Accountant September 4, 2008 -1- I~- FINANCIAL STATEMENTS MT. ASHLAND ASSOCIATION Statements of Financial Position June 30, 2008 and 2007 2008 2007 ASSETS Current assets Cash and cash equivalents $ 144,894 $ 170,060 Cash restricted for green chair program 6,636 Investments 114,065 286,996 Accounts receivable 6,214 638 Prepaid rent and deposits 2,250 5,022 Inventory 14,685 14,975 Total current assets 282,108 484,327 Buildings and equipment 4,013,446 4,059,312 Less accumulated depreciation (2,063,385) (2,055,831) Net buildings and equipment 1,950,061 2,003,481 Contributed facilities lease - net 681 ,180 756,735 TOTAL ASSETS $ 2,913,349 $ 3,244,543 LIABILITIES AND NET ASSETS Current liabilities Accounts payable - trade $ 26,739 $ 49,406 Accrued expenses 34,508 47,463 Current portion long-term debt 28,427 25,825 Deferred revenues 303,225 395,082 Total current liabilities 392,899 517,776 Long-term liabilities Note payable 145,393 173,820 Total long-term liabilities 145,393 173,820 TOTAL LIABILITIES 538,292 691,596 NET ASSETS Unrestricted 1,687,241 1,789,576 Temporarily restricted 687,816 763,371 TOTAL NET ASSETS 2,375,057 2,552,947 TOTAL LIABILITIES AND NET ASSETS $ 2,913,349 $ 3,244,543 See accompanying notes and accountant's review report. -2- MT. ASHLAND ASSOCIATION Statements of Activities For the Years Ended June 30,2008 and 2007 2008 2007 REVENUES AND SUPPORT Service fees Ski lifts $ 1,435,021 $ 1,589,758 Ski shop operations 297,607 297,923 Cafe 224,325 224,200 Lodge and bar 162,407 196,253 Ski school 190,154 218,959 Other income 23,369 14,159 Total service fees 2,332,883 2,541,252 Other support Contributions 352,217 316,750 Investment income 8,876 34,555 Unrealized gain on investments (9,871 ) 35,132 Total other support 351,222 386,437 Total revenue and support 2,684,105 2,927,689 EXPENSES Program expenses Ski lifts 1,246,966 1,569,406 Ski shop operations 201,017 280,909 Cafe 221,098 225,667 Lodge and bar 118,621 175,895 Ski school 168,324 156,201 General and administrative 662,538 702,719 Marketing 167,876 214,721 Total expenses 2,786,440 3,325,518 Decrease in unrestricted net assets (102,335) (397,829) Temporarily restricted net assets Contributions 216,850 214,361 Net assets released from restriction (292,405) (283,280) Total decrease in temporarily restricted net assets (75,555) (68,919) Total decrease in net assets (177,890) (466,748) NET ASSETS Beginning of year 2,552,947 3,019,695 End of year $ 2,375,057 $ 2,552,947 See accompanying notes and accountant's review report. -3- -----r--- MT. ASHLAND ASSOCIATION Statements of Cash Flows For the Years Ended June 30,2008 and 2007 2008 2007 CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ (177,890) $ (466,748) Adjustments to reconcile change in net assets to net cash from operating activities Depreciation 233,041 244,667 Amortization of contributed lease facility 75,555 75,555 Unrealized/realized gains on investments (9,871 ) (35,132) Interest and dividends reinvested (8,876) (23,353) (Increase) decrease in accounts receivable (5,576) 3,482 (Increase) decrease in prepaid rent and deposits 2,772 71,870 Increase (decrease) in inventory 290 2,142 Increase (decrease) in accounts payable - trade (22,667) 44,242 Increase (decrease) in accrued expenses (12,955) 28,591 Increase (decrease) in deferred revenue (91,857) (48,731) Total adjustments 159,856 363,333 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (18,034) (103,415) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of investments 191,679 500,000 Cash payments for the purchase of buildings and equipment (179,622) (721,902) NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES 12,057 (221,902) CASH FLOWS FROM FINANCING ACTIVITIES Acquisition of long-term debt 239,598 Payment of long-term debt (25,825) (39,953) NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES (25,825) 199,645 NET INCREASE (DECREASE) IN CASH (31,802) (125,672) CASH AT BEGINNING OF YEAR 176,696 302,368 CASH AT END OF YEAR $ 144,894 $ 176,696 Supplemental Disclosures I nterest paid $ 18,792 $ 12,196 See accompanying notes and accountant's review report. -4- NOTES TO FINANCIAL STATEMENTS MT. ASHLAND ASSOCIATION Notes to Financial Statements (Continued) For the Years Ended June 30,2008 and 2007 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PURPOSE OF THE ORGANIZATION Mt. Ashland Association (the Association) is a not-for-profit organization, established under the laws of the State of Oregon to provide educational and recreational opportunities to the members of the general public in Jackson County, Oregon. The Association offers comprehensive winter recreation services and educational programs to residents of Southern Oregon and Northern California through the operation of the Mt. Ashland Ski Area. Mt. Ashland prides itself on being affordable to families and youth and is host to an average of over 94,000 skier visits per season. Over 2,000 youths participate in Mt. Ashland's after-school programs. The Association provides and continues to develop new ways to contribute to our youth and many educational programs and related benefits to the communities of Southern Oregon and Northern California. The Association expects to continue the following programs and expand on the educational awareness programs of after school youth ski and snowboard, ski/snowboard school, kids club, mountain geology/snow science and environmental/youth summer service. The approximate costs of providing these programs were $242,414 and $250,803 for the years ended June 30,2008 and 2007 respectively. This summary of significant accounting policies of Mt. Ashland Association is presented to assist in understanding the Association's financial statements. The financial statements and notes are representations of the Association's management who is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States, unless otherwise stated, and have been consistently applied in the preparation of the financial statement. BASIS OF ACCOUNTING AND PRESENTATION The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The Association has adopted Statement of Financial Accounting Standards (SFAS) No. 116, "Accounting for Contributions Received and Contributions Made", and (SFAS) No. 117, "Financial Statements of Not-for-Profit Organizations." SFAS No. 117 establishes standards for external financial reporting by not-for-profit organizations, and requires the Association to report information regarding its financial position and activities into three classes of net assets according to externally (donor) imposed restrictions. SFAS No. 116 requires that unconditional promises to give (pledges) be recorded as receivables and revenues, and requires the organization to distinguish between contributions for each net asset category in accordance with donor imposed restrictions. Descriptions of the three net asset categories, as presented on the Statement of Activities, are as follows: 1) Unrestricted net assets have no donor imposed restrictions. 2) Temporarily restricted net assets have donor-imposed restrictions that will expire in the future. 3) Permanently restricted net assets have donor-imposed restrictions, which do not expire. -5- MT. ASHLAND ASSOCIATION Notes to Financial Statements (Continued) For the Years Ended June 30,2008 and 2007 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Unrestricted net assets consist of the general operating fund of the Association and are available for use at the discretion of the Board of Directors. 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 certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. INCOME TAXES The Association is a not-for-profit organization that is exempt from federal income taxes under Section 501 (c)(3) of the U.S. Internal Revenue Code. The Association has also been classified as an entity that is not a private foundation within the meaning of Section 509(a), and qualifies for deductible contributions as provided in Section 170 (b)(1)(A)(iii). There was no unrelated business income for the years ended June 30, 2008 and 2007. BUILDINGS AND EQUIPMENT The Association capitalizes all expenditures for buildings and equipment if they are considered to benefit future periods. Purchased buildings and equipment are carried at cost and are considered to be owned by the Association. Donated buildings and equipment are carried at the approximate fair value at the date of donation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. CASH AND CASH EQUIVALENTS For purposes of the statement of cash flows, the Association considers all unrestricted highly liquid investments, with an initial maturity of three months or less, to be cash equivalents. The carrying value of cash and cash equivalents approximates fair value. INVESTMENTS The Association has invested funds with Strand, Atkinson, Williams & York, Inc. The funds are managed by Steven Nelson, the assigned financial advisor by Strand, Atkinson, Williams & York, Inc. The portfolio assets consist of a bank deposit sweep account. The monies are held in an interest-bearing deposit account at one or more banks. The investment income includes interest income resulting from the investment fund. The cost and the income generated as a result of the investment are reported in the Statement of Activities. ACCOUNTS RECEIVABLE Accounts Receivables are stated at the amount management expect to collect from outstanding balances at year end. Receivables are written off when they are determined to be uncollectible. -6- MT. ASHLAND ASSOCIATION Notes to Financial Statements (Continued) Forthe Years Ended June 30,2008 and 2007 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) INVENTORY Inventory consists of food, beverages and ski area related retail merchandise. Inventory is valued at cost. Cost is determined using a first-in, first-out method of inventory valuation. ADVERTISING Advertising costs are expensed as incurred. Advertising expense for the years ended June 30, 2008 and 2007 totaled $58,555 and $83,867 respectively. REVENUE The Association's revenue is derived primarily from ski operations including season pass sales, lift ticket sales, retail sales, lodge and bar sales, cafe sales, equipment rentals and ski school income. Sales revenue is recognized when purchases are made, with the exception of season pass sales. Season passes sold during the "Spring Pass" promotion cover the entire following ski season. Management defers this revenue, relating to the following season, into the following fiscal year or until earned. Deferred revenue for the years ended June 30,2008 and 2007 was $303,224 and $395,082 respectively. 2. BUILDINGS AND EQUIPMENT The following is a summary of equipment, ski rental equipment, furniture and fixtures, and leasehold improvements, which comprise the buildings and equipment account, stated at cost less accumulated depreciation. Renewals and betterments are charged to the asset accounts, while maintenance and repairs, which do not improve or extend the lives of the respective assets, are expensed in the current period. Depreciation of property and equipment is provided on the straight- line basis over the assets estimated useful life as follows: equipment - 5 to 15 years; buildings - 25 years; leasehold improvements - 5 to 30 years. 2008 2007 Equipment $ 1,570,754 $ 1,721,130 Buildings 42,000 42,000 Leasehold improvements 377,888 373,031 Expansion project - construction in progress 2,022,804 1,923,151 Total buildings and equipment 4,013,446 4,059,312 Less accumulated depreciation (2,063,385) (2,055,831 ) Net buildings and equipment $ 1,950,061 $ 2,003,481 -7- MT. ASHLAND ASSOCIATION Notes to Financial Statements (Continued) For the Years Ended June 30,2008 and 2007 3. OPERATING LEASES The Association leases space for its business office, which expires on July 11, 2008, with options to renew for three one-year extensions, for $1,500 per month. For the year ended June 30,2008 the lease commitment is $18,000 for the Association's business office. The Association also leases certain ski area assets that were purchased from donated funds to the City of Ashland. This lease term expires on June 30,2017. Future minimum lease payments as of June 30,2008, are $1 per year through 2017, for a total lease commitment of $10. A mobile unit is leased by the Association for the amount of $171 per month. This lease expires on April 3, 2009. For the year ended June 30, 2009, the lease commitment is $1,980 for the Associations mobile unit. The City of Ashland received donations from the general public to purchase certain ski area assets on Mt. Ashland which are located on land leased from the U.S. Department of Agriculture/U.S. Forest Service. These ski area assets are leased by the City to the Association for $1 per year. Upon the lease expiration date, June 30, 2017, the Association has the option to extend the lease term for an additional 25 years ending June 30, 2042. This lease requires the Association to maintain the leased ski area assets at an agreed "Minimum Liquidation Value," which was stated at $200,000 in 1992. The "Minimum Liquidation Value," is subject to an escalation provision tied to the Consumer Price Index (CPI). If the Association fails to maintain the leased ski area assets at the "Minimum Liquidation Value" the Association is required to pay the deficiency into a trust fund maintained by the City of Ashland. As of June 30, 2008, no funds have been required to be transferred into this trust fund. In 1994, the Association recorded the lease as a contribution, stated at the ski area assets fair value, for the 25-year term of the lease. This fair value was estimated at $2,833,300 and capitalized. The lease is amortized as Facility Lease Expense over the assets economic life to reflect the relative value of the lease. Amortization expense for the years ended June 30, 2008 and 2007 were $75,555 and $75,555 respectively. The following summarizes the remaining asset value related to the contributed facility lease: Contributed facility lease 2008 $ 2,833,300 2007 $ 2,833,300 Less accumulated amortization Net contributed lease value (2,152,120) $ 681,180 (2,076,565) $ 756,735 The Association also records the approximate yearly value of the lease as temporarily restricted revenue and facility lease expense. The estimated yearly value of facility lease expenses for 2008 and 2007 was $178,920 and $178,920 respectively. The Association assumed the underlying obligation of the City of Ashland's special use permit with the U.S. Department of Agriculture, Forest Service, for the use of the ski area land for the construction, operation and maintenance of a winter sports area. This use permit provides for termination upon breach of any permit condition, or termination at the discretion of the Regional Forester of the Chief of the U.S. Forest Service. The permit expires July 4, 2017, with an annual fee based upon a weighted formula applied to various revenue classifications. The adjusted fees for the years ended June 30,2008 and 2007 were $33,185 and $37,316 respectively. -8- MT. ASHLAND ASSOCIATION Notes to Financial Statements (Continued) Forthe Years Ended June 30,2008 and 2007 4. TEMPORARILY RESTRICTED NET ASSETS As described in Note 1, the Association reports financial information regarding its financial position and activities into three classes of net assets according to externally (donor) imposed restrictions. These classes consist of unrestricted net assets, temporarily restricted net assets and permanently restricted net assets. Temporarily restricted net assets have donor-imposed restrictions that will expire in the future. Upon expiration of the donor-imposed restrictions, funds are released from restriction and expensed categorically to align with their functional category. The activity of these funds is represented on the Statement of Activities. Temporarily restricted net assets consisted of the following at June 30,2008 and 2007: 2008 2007 Contributions Cash contributions Contributed facilities lease $ 37,930 178,920 $ 35,441 178,920 Temporarily restricted contributions 216,850 214,361 Net assets released from restriction Cash released from restriction Contributed facilities lease Contributed facilities lease amortization 37,930 178,920 75,555 28,805 178,920 75,555 Net assets released from restriction 292,405 283,280 Total decrease in temporarily restricted net assets $ (75,555) $ (68,919) 5. FUNCTIONAL ALLOCATION OF EXPENSES The costs of providing various program and supporting services have been summarized on a functional basis in the statement of activities. Accordingly, certain costs have been allocated among the program and supporting services benefited. 6. CONCENTRATION OF RISK Mt. Ashland Association holds all of its cash deposits at Key Bank. The total bank balance at June 30,2008 was $155,791. Of these deposits, $55,791 was not covered by federal depositary insurance. Mt. Ashland Association provides educational recreation opportunities to the members of the general public in Jackson County, Oregon. The Association relies heavily on public support and patronage of outdoor winter recreation, which in turn is dependent upon the overall weather conditions of the Southern Oregon region. -9- MT. ASHLAND ASSOCIATION Notes to Financial Statements (Continued) For the Years Ended June 30,2008 and 2007 7. PENSION PLAN Mt. Ashland Association provides a 401(k) retirement plan for its employees. Employees in Job Classifications 1 and 2 are eligible to participate upon the completion of one year of service and attainment of age 21. Employees may defer a percentage of their compensation, up to the Code 402(g) deferral limit, as described in the company's basic plan document. The Association makes a matching contribution of a minimum of 3% of gross pay per employee, and may make an additional matching contribution at the discretion of the Board of Directors. The contributions for the plan years ended June 30, 2008 and 2007 were $13,553 and $15,285 respectively. 8. DEPOSITS IN EXCESS OF INSURED LIMITS At June 30,2008, the Association had deposits in excess of FDIC insured limits of $148,183. 9. LONG-TERM DEBT Lender Key Equipment Finance Description Interest Rate Note Payable 9.64% Monthly Payments (November through April) Secured by Maturity Date Balance 6/30/08 $ 173,820 173,820 (28,427) $ 145,393 $ 7,386 Equipment April, 2013 Total Less current portion Net long-term debt Note Payable Future principal requirements for years ending June 30, 2009 $ 28,427 2010 31 ,292 2011 34,446 2012 37,917 2013 41 ,738 Total $ 173,820 10. PURCHASE COMMITMENTS Mt. Ashland Association entered into a purchase commitment of Green Tags with the Bonneville Environmental Foundation (BEF) on August 30,2007. Each Green Tag represents the environmental attributes associated with the generation of one megawatt-hour of electricity from electric generating facilities that rely exclusively on wind, solar, geothermal, hydro, and biomass renewable energy sources. Mt. Ashland Association is committed to purchase seven hundred and eighty Green Tags at eight dollars each per year over the lease term. For the year ended June 30, June 2008, the Association purchased $6,240 in Green Tags. The commitment term ends on June 30,2009. The purchase commitment for the year ended June 30,2009 is $6,240. -10- MT. ASHLAND ASSOCIATION Notes to Financial Statements (Continued) Forthe Years Ended June 30,2008 and 2007 11. CONTINGENCIES Mt. Ashland Association is currently involved in two legal disputes centered on their proposed Area Improvement Project. The first is as an intervening party with the U.S. Department of Agriculture (USFS) over the legality of their Record of Decision issued in September of 2004 on the project. The case was heard by and ruled on by the U.S. Ninth Circuit Court of Appeals in September of 2007. They identified three points that they felt needed additional review and remanded the case on those three entities back to the Oregon District court. The USFS has started the process of issuing a Supplemental Environmental Impact Statement on the three issues. A new Record of Decision should be forthcoming by early spring and will then be reviewed at the District court level for compliance with the Ninth Circuit Court of Appeals concerns. If all of this is approved, which they feel strongly will be, construction on the Improvement Project could begin within one month of the court ruling. With regard to the second dispute between Mt. Ashland and the City of Ashland over breach of contract that case is scheduled to be heard in Medford on October 16 and 17, 2008. Mt. Ashland Association believes there is a very remote chance of loss in either of the above disputes. Total expenditures to date that might be affected by these cases are estimated at $1,450,000. These funds have already been expended by Mt. Ashland Association for research, studies, planning and legal costs associated with the Improvement Project. -11- SUPPLEMENTARY INFORMATION MT. ASHLAND ASSOCIATION Schedule of Functional Expenses For the Year Ended June 30, 2008 Ski Lift Ski Shop Cafe Lodge & Bar Operations Operations Operations Operations REVENUES Sales $ 1,433,599 $ 109,003 $ 224,325 $ 162,407 Rental income 184,016 Repair income 4,588 Other income 1,422 Total revenues 1,435,021 297,607 224,325 162,407 EXPENSES Advertising 85 130 Automobile and charter bus 69,578 337 Bank and merchant fees Cost of goods sold 59,955 60,533 113,177 27,536 Depreciation 231,979 29,616 16,750 17,443 Donations and contributions Dues & subscriptions 287 97 Employee benefits 39,336 4,849 (275) Licenses, permits & fees 3,911 300 660 686 Interest expense 9,238 Insurance 62,992 2,488 1,942 1,850 Miscellaneous 355 1,646 Occupancy 2,055 Salaries & wages 490,576 89,711 72,838 35,213 Payroll tax 51,334 9,484 7,639 3,935 Professional fees 410 Repair & maintenance 93,841 2,262 1,501 Supplies 22,722 3,809 3,678 606 Travel & lodging 2,259 444 29,441 Utilities 97,501 Water testing 8,962 Total expenses 1,246,966 201,017 221,098 118,621 INCREASE (DECREASE) IN NET ASSETS $ 188,055 $ 96,590 $ 3,227 $ 43,786 See accountant's review report. -12- Ski School Operations TOTAL $ 190,154 $ 2,119,488 184,016 4,588 1 ,422 190,154 2,309,514 215 69,915 261,201 3,768 299,556 725 1,109 3,139 47,049 260 5,817 9,238 17,071 86,343 2,001 2,055 120,220 808,558 12,701 85,093 410 45 97,649 941 31,756 9,454 41 ,598 97,501 8,962 168,324 1,956,026 $ 21 ,830 $ 353,488 MT. ASHLAND ASSOCIATION Schedule of Functional Expenses For the Year Ended June 30, 2007 Ski Lift Ski Shop Cafe Lodge & Bar Operations Operations Operations Operations REVENUES Sales $ 1,587,811 $ 125,165 $ 224,200 $ 180,129 Rental income 167,313 16,124 Repair income 5,445 Other income 1,947 Total revenues 1,589,758 297,923 224,200 196,253 EXPENSES Advertising 890 Automobile expense 60,870 508 34,422 Communications 9,000 Cost of goods sold 61 ,994 94,876 41 ,952 Depreciation 242,584 22,936 18,352 25,756 Dues and subscriptions 485 25 Education 585 540 Employee benefits 123,817 12,105 6,549 3,816 Licenses, permits and fees 57,838 305 640 784 Interest expense 11 ,748 Meals and entertainment 230 537 Meetings 450 Occupancy 180,855 Salaries & wages 607,802 158,293 89,156 58,491 Payroll tax 61,872 16,554 9,333 6,151 Professional fees 216 Repair and maintenance 114,378 2,989 1,495 1,652 Supplies 40,913 3,110 2,739 1,389 Travel and lodging 2,829 563 Utilities 42,868 2,527 1,266 Water testing 9,842 Total expenses 1,569,406 280,909 225,667 175,895 INCREASE (DECREASE) IN NET ASSETS $ 20,352 $ 17,014 $ (1,467) $ 20,358 See accountant's review report. -13- Ski School Operations TOTAL $ 218,959 $ 2,336,264 183,437 5,445 1,947 218,959 2,527,093 59 949 95,800 9,000 198,822 4,166 313,794 395 905 1,068 2,193 18,866 165,153 59,567 11 ,748 767 450 180,855 115,592 1,029,334 12,444 106,354 216 764 121,278 2,847 50,998 3,392 46,661 9,842 156,201 2,408,078 $ 62,758 $ 119,015