Loading...
HomeMy WebLinkAbout2010-11 Mt Ashland Review Report t ' MT. ASHLAND ASSOCIATION ' REVIEW REPORT For The Years Ended June 30, 2011 and 2010 1 1 t t 1 1 t 1 ' RICHARD W. BREWSTER, CPA, PC CERTIFIED PUBLIC ACCOUNTANT MEDFORD MT. ASHLAND ASSOCIATION For the Years Ended June 30, 2011 and 2010 ' TABLE OF CONTENTS ' Page Independent Accountants Review Report 1 Financial Statements: ' Statements of Financial Position 2 Statements of Activities 3 ' Statements of Cash Flows 4 Notes to Financial Statements 5-12 Supplementary Information ' Schedules of Functional Expenses 13-14 1 1 1 INDEPENDENT ACCOUNTANT'S REVIEW REPORT 1 1 1 1 1 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 INDEPENDENT ACCOUNTANT'S REVIEW REPORT To the Board of Directors of Mt. Ashland Association Ashland, Oregon 97520 1 have reviewed the accompanying statements of financial position of Mt. Ashland Association, (a not-for-profit corporation), as of June 30, 2011, and 2010, and the related statements of activities and cash flows for the years then ended. A review includes primarily applying analytical procedures to management's financial data and making inquiries of Organization management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, I do not express such an opinion. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. ' My responsibility is to conduct the review in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. Those standards require me to perform procedures to obtain limited assurance that there are no ' material modifications that should be made to the financial statements. I believe that the results of my procedures provide a reasonable basis for my report. 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. ' My review was made for the purpose of expressing a conclusion that there are no material modifications that should be made to the financial statements in order for them to be in conformity ' with accounting principles generally accepted in the United States of America. The information included in the accompanying Schedule of Functional Expenses is presented only for purposes of additional analysis and has been subjected to the inquiry and analytical procedures applied in the review of the basic financial statements, and I am (we are) not aware of any material modifications that should be made thereto. Richard W. Brewster ' Certified Public Accountant August 22, 2011 -1 1 1 i FINANCIAL STATEMENTS t MT. ASHLAND ASSOCIATION Statements of Financial Position , June 30, 2011 and 2010 2011 2010 , ASSETS Current assets Cash and cash equivalents $ 171,895 $ 124,797 ' Investments 16,862 210,851 Accounts receivable 51,168 1,500 Prepaid rent and deposits 2,250 7,420 , Inventory 8,970 11,627 Total current assets 251,145 356,195 Buildings and equipment 4,192,311 4,092,010 Less accumulated depreciation (2,449,392) (2,439,157) ' Net buildings and equipment 1,742,919 1,652,853 Contributed facilities lease- net 454,515 530,070 ' TOTAL ASSETS $ 2,448,579 $ 2,539,118 ' LIABILITIES AND NET ASSETS Current liabilities Accounts payable-trade $ 13,284 $ 3,424 ' Accrued expenses 45,254 44,538 Current portion long-term debt 66,108 34,446 Deferred revenues 494,433 533,482 , Total current liabilities 619,079 615,890 Long-term liabilities , Note payable 150,068 79,655 i Total long-term liabilities 150,068 79,655 TOTAL LIABILITIES 769,147 695,545 ' NET ASSETS Unrestricted 1,202,281 1,296,867 Temporarily restricted 477,151 546,706 ' TOTAL NET ASSETS 1,679,432 1,843,573 TOTAL LIABILITIES AND NET ASSETS $ 2,448,579 $ 2,539,118 ' See accompanying notes and independent accountant's review report. ' -2- ' MT. ASHLAND ASSOCIATION Statements of Activities For the Years Ended June 30, 2011 and 2010 ' REVENUES AND SUPPORT 2011 2010 Service fees Sales $ 1,911,457 $ 1,701,841 Rental income 171,590 175,319 Other income 6,704 7,920 ' Total service fees 2,089,751 1,885,080 Other support Contributions 117,553 137,700 Sale of assets 26,800 Investment income 644 626 Total other support 144,997 138,326 Total revenue and support 2,234,748 2,023,406 ' EXPENSES Program expenses Tickets 169,717 150,215 Ski lifts 308,364 283,066 Ski patrol 84,933 67,482 Vehicles 320,767 173,606 ' Grooming - 51,661 Buildings and grounds 175,083 151,434 Slopes 1,149 2,924 Lodge 39,716 32,546 Cafe 164,271 162,030 Bar 46,515 39,349 Retail 50,763 47,002 ' Rental shop 57,642 64,135 Skischool 141,775 116,752 Development 44,179 49,697 ' Youth and education 7,020 7,338 General and administrative 623,679 590,337 Marketing 93,761 99,799 ' Total expenses 2,329,334 2,089,373 Decrease in unrestricted net assets (94,586) (65,967) ' Temporarily restricted net assets Contributions 209,390 214,288 Net assets released from restriction (278,945) (279,843) ' Total decrease in temporarily restricted net assets (69,555) (65,555) Total decrease in net assets (164,141) (131,522) NET ASSETS Beginning of year 1,843,573 1,975,095 ' End of year $ 1,679,432 $ 1,843,573 See accompanying notes and independent accountant's review report. ' -3- ' MT. ASHLAND ASSOCIATION Statements of Cash Flows For the Years Ended June 30, 2011 and 2010 tCASH FLOWS FROM OPERATING ACTIVITIES 2011 2010 t Change in net assets $ (164,141) $ (131,522) Adjustments to reconcile change in net assets to net cash from operating activities Depreciation 158,287 153,204 Amortization of contributed lease facility 75,555 75,555 Interest and dividends reinvested 5 (30) (Increase)decrease in accounts receivable (49,668) 2,136 ' (Increase) decrease in prepaid rent and deposits 5,170 23,688 Increase (decrease) in inventory 2,657 5,839 Increase (decrease) in accounts payable-trade 9,860 (21,307) ' Increase (decrease) in accrued expenses 716 13,697 Increase (decrease) in line of credit (29,000) Increase (decrease) in deferred revenue (39,049) 269,984 ' Total adjustments 163,533 493,766 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (608) 362,244 ' CASH FLOWS FROM INVESTING ACTIVITIES (Increase) decrease from investments or transfers to and from investments 193,989 (200,357) ' Purchase of buildings and equipment (248,358) (6,315) NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (54,369) (206,672) ' CASH FLOWS FROM FINANCING ACTIVITIES Payment of long-term debt (34,446) (31,291) Proceeds from long-term debt 136,521 ' NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES 102,075 (31,291) ' NET INCREASE (DECREASE) IN CASH 47,098 124,281 CASH AT BEGINNING OF YEAR 124,797 516 ' CASH AT END OF YEAR $ 171,895 $ 124,797 ' Supplemental Disclosures Interest paid $ 20,218 $ 18,208 1 See accompanying notes and independent accountant's review report. -4- 1 1 NOTES TO FINANCIAL STATEMENTS 1 1 MT. ASHLAND ASSOCIATION Notes to Financial Statements , For the Years Ended June 30, 2011 and 2010 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 80,000 skier visits per season. Over 1,000 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 $190,051 and $254,910 for the years ended June 30, 2011, and 2010, 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 ' statements. 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 accompanying financial statements have been prepared in accordance with FASB Accounting Standards Codification (ASC) 958-205 and its subsections. ASC 958-205 establishes standards for external financial reporting for 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. In addition, it 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- 1 ' MT. ASHLAND ASSOCIATION Notes to Financial Statements (Continued) For the Years Ended June 30, 2011 and 2010 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). Currently, the Association does not believe there are any material uncertain tax positions and, accordingly, it will not recognize any ' liability for the years ended June 30, 2011, and 2010. 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. tCASH 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 Investments consist primarily of a money market account. The Association accounts for ' investments in accordance with FASB ASC 958-320 and subsections. This standard requires that investments in be measured at fair value in the statement of financial position. Fair value for the Association's investments is based on quoted market prices. ' Investments are exposed to various risks such as significant world events, interest rate, credit, and overall market volatility risks. Due to the level of risk associated with certain investments securities, it is reasonably possible that changes in the fair value of investments will occur in the near term and that such changes could materially affect the amounts reported in the statement of financial position. -6- MT. ASHLAND ASSOCIATION , Notes to Financial Statements (Continued) For the Years Ended June 30, 2011 and 2010 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) ' The Association has invested funds with Stifel Nicolaus. The funds are managed by Steven , Nelson, the assigned financial advisor by Stifel Nicolaus. 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. For , the year ended June 30, 2011, $1,300 of the accounts receivable was considered over 90 days. 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, 2011, ' and 2010 totaled $34,651 and $42,174, respectively. REVENUE ' The Association's revenue is derived primarily from ski operations including season pass sales, lift ticket sales, lodge sales, 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, 2011, and 2010 was $494,433 and $533,482, respectively. CONTRIBUTIONS ' The accompanying financial statements have been prepared in accordance with FASB Accounting ' Standards Codification (ASC) 958-205 and subsections formerly Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. ASC 958-205 requires the Association to present net assets, revenue and gains based upon the existence or ' absence of donor imposed restrictions into these classes: unrestricted, temporarily restricted, and permanently restricted. 1 -7- ' MT. ASHLAND ASSOCIATION Notes to Financial Statements (Continued) ' For the Years Ended June 30, 2011 and 2010 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) ' All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. Amounts received that are designated for future periods or restricted by the donor for specific purposes are reported as temporarily restricted or permanently restricted support that ' increases those net asset classes. When a temporary restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. r2. 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. 2011 2010 ' Equipment $ 1,665,217 $ 1,583,081 Buildings 42,000 42,000 Leasehold improvements 450,730 435,636 ' Expansion project - construction in progress 2,034,364 2,031,293 Total buildings and equipment 4,192,311 4,092,010 ' Less accumulated depreciation (2,449,392) (2,439,157) ' Net buildings and equipment $ 1,742,919 $ 1,652,853 Depreciation expense for the years ended June 30, 2011, and 2010 was $158,287 and $153,204, ' respectively. 3. OPERATING LEASES 1 The Association leases space for its business office for $1,500 per month. This lease was renewed on August 9, 2011, for one year and includes an option to renew for one additional one-year extensions. For the year ended June 30, 2011, 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, 2011, are $1 per year through 2017, for a total lease commitment of$6. A mobile unit is leased by the Association for the amount of$171.25 per month. This lease expires on April 3, 2012. For the year ended June 30, 2011, the lease commitment is $2,055 for the Associations mobile unit. 1 8 MT. ASHLAND ASSOCIATION ' Notes to Financial Statements (Continued) For the Years Ended June 30, 2011 and 2010 3. OPERATING LEASES (Continued) , 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, 2011, 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, 2011, and 2010 were $75,555 and $75,555 respectively. The following summarizes the remaining asset value related to the contributed facility lease: ' 2011 2010 Contributed facility lease $ 2,833,300 $ 2,833,300 , Less accumulated amortization (2,378,785) (2,303,230) Net contributed lease value $ 454,515 $ 530,070 , The Association also records the approximate yearly value of the lease as temporarily restricted i revenue and facility lease expense. The estimated yearly value of facility lease expenses for 2011 and 2010 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, 2011, and 2010 were $31,130 and $33,569, respectively. 1 1 -9- ' MT. ASHLAND ASSOCIATION Notes to Financial Statements (Continued) ' For the Years Ended June 30, 2011 and 2010 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, 2011, and 2010: 2011 2010 ' Contributions Cash contributions $ 30,470 $ 35,368 Contributed facilities lease 178,920 178,920 ' Temporarily restricted contributions 209,390 214,288 Net assets released from restriction Cash released from restriction 24,470 25,368 ' Contributed facilities lease 178,920 178,920 Contributed facilities lease amortization 75,555 75,555 Net assets released from restriction 278,945 279,843 Total decrease in temporarily restricted net assets $ (69,555) $ (65,555) 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 PremierWest Bank. The total bank balance ' at June 30, 2011 was $183,178. All of these deposits were 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. 1 -10- MT. ASHLAND ASSOCIATION Notes to Financial Statements (Continued) For the Years Ended June 30, 2011 and 2010 7. PENSION PLAN ' Mt. Ashland Association provides a 401(k) retirement plan for its employees. Employees in Job t Classifications 1 and 2 are eligible to participate upon the completion of 30 days of service. 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 may make an additional matching ' contribution at the discretion of the Board of Directors. There were no contributions for the plan for the years ended June 30, 2011, and 2010, respectively. 8. LONG-TERM DEBT ' Interest Monthly Maturity Balance , Lender Rate Payments Secured by Date 6130111 Key Equipment Finance Note payable 9.64% $ 7,386 ' Equipment April, 2013 $ 79,655 , PremierWest Bank Note Payable 8.50% 4,466 ' Equipment April, 2015 91,660 GMAC Finance ' Note Payable 6.64% 493 Vehicle Dec., 2003 22,584 Note Payable ' 6.64% 487 Vehicle Dec., 2003 22,277 Total 216,176 ' Less current portion (66,108) Net long-term debt $ 150,068 ' Note Payable Future principal requirements for years ending June 30, , 2012 $ 66,108 2013 72,260 2014 33,031 ' 2015 39,997 2016 4,780 Total $216,176 , Payments are made from November through April 1 -11- 1 MT. ASHLAND ASSOCIATION Notes to Financial Statements (Continued) For the Years Ended June 30, 2011 and 2010 ' 10. PURCHASE COMMITMENTS ' Mt. Ashland Association entered into a purchase commitment of Green Tags with the Bonneville Environmental Foundation (BEF) on August 10, 2009. This commitment is for the period of September 1, 2009, through August 31, 2012. Each Green Tag represents the environmental attributes associated with the generation of one megawatt-hour of electricity from electrical generating facilities that rely exclusively on wind, solar, geothermal, hydro, and biomass renewable energy sources. Mt. Ashland Association is committed to purchase 1,380 Green Tags at eight dollars each per year over the lease term. For the year ended June 30, 2011, the Association ' purchased $3,680 in Green Tags. 11. CONTINGENCIES ' Mt. Ashland Association is currently involved in one legal dispute centered on our proposed Area Improvement Project. This 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 USFS. The USFS issued a Final Supplemental Environmental Impact Statement and associated Record of Decision on the three issues in April of 2011. The decision is currently in the Administrative Appeals period and the final decision is due out September 1, 2011. If all of this is approved, which we feel strongly will be, construction on the ' Improvement Project could begin by early April, 2012. Mt. Ashland Association believes there is a very remote chance of loss in the above dispute. 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. ' Mt. Ashland Association is not named, or has not been put on notice of any other legal disputes. ' 12. SUBSEQUENT EVENTS ' Mt. Ashland has evaluated subsequent events through August 22, 2011. August 22, 2011, which is the date of the Independent Accountant's Review Report. 1 -12- 1 1 SUPPLEMENTARY INFORMATION MT. ASHLAND ASSOCIATION Schedule of Functional Expenses ' For the Year Ended June 30, 2011 Ski Ski Buildings , Tickets Lifts Patrol Vehicles Grooming &Grounds Slopes Lodge REVENUES Sales $ 1,286,763 $ 298 $ 30,916 Rental income - Contributions t Investment income Gain on sale of assets Other income 50 Total revenues 1,286,763 - - 348 - - - 30,916 ' EXPENSES Salaries&wages 69,279 $ 193,011 $ 56,790 96,575 - $ 27,724 17,499 Payroll tax 7,764 22,294 6,926 10,331 - 3,154 2,221 Employee benefits 5,203 16,008 2,631 10,406 - 5,228 , 82,246 231,313 66,347 117,312 - 36,106 - 19,720 Cost of goods sold 64,606 - - Amorbution and depreciation 5,101 36,951 61,464 4,921 $ 1,149 10,975 Advertising - - , Automobile and charter bus - 71,500 Bank and merchant fees Dues&subscriptions - - 214 - 75 Licenses,permits&fees - - - 989 - 1,109 - Interest expense - ' Insurance 796 19,347 5,615 9,619 - 2,784 1,763 Miscellaneous - - - Occupancy - 2,055 - - - Postage 39 Professional fees - ' Repair&maintenance - 20,185 289 58,700 - 20,079 - Supplies 8,329 - 10,413 - - 1,127 - 7,258 Travel&lodging - 568 - 1,183 - 250 - - Utilities 8,600 103,784 , Waste products Water testing - 4,848 Total expenses 169,717 308,364 84,933 320,767 - 175,083 1,149 39,716 INCREASE(DECREASE) , IN NET ASSETS $ 1,117,046 $ (308,364) $ (84,933) $ (320,419) •$ $ (175,083) $ (1,149) $ (8,800) 1 See independent accountant's review report. ' -13- 1 ' Rental Ski Youth& Cats Bar Retail Shop School Development Education Admin Marketing TOTAL $ 201,995 $ 124,901 $ 88,363 $ 140,098 $ 28,861 $ 9,262 $ 1,911,457 $ 171,590 171,590 $ 43,010 4,988 47,998 644 644 26,800 26,800 6,654 6,704 201,995 124,901 88,363 171,590 140,098 43,010 - 67,947 9,262 2,165,193 53,544 10,161 - 27,543 103,697 30,889 $ 5,513 186,312 49,676 928,213 6,588 1,906 = 3,240 11,879 2,826 652 18,492 5,157 103,430 1,831 5,203 3,394 17,790 67,694 61,963 12,067 30,783 120,779 37,109 6,165 222,594 54,833 1,099,337 89,889 31,243 48,231 233,969 ' 4,818 66 378 21,459 505 948 84,438 669 233,842 34,651 34,651 71,500 31,486 31,486 890 - - 6,307 - 7,486 ' 725 553 = 278 - - - 2,582 - 6,236 20,218 20,218 829 156 475 10,423 103 548 117,350 167 169,975 2,559 2,559 - - 54,832 56,887 ' 62 151 1,549 1,801 341 44,143 44,484 1,958 750 1,382 81 103,424 2,738 1,060 1,515 3,158 1,707 5,594 307 16,946 - 60,152 ' - - 384 45 7,390 274 - 1,005 1,146 12,245 17,670 2,295 132,349 1,351 279 255 1,865 4,848 164,271 46,515 50,763 57,642 141,775 44,179 7,020 623,679 93,761 2,329,334 ' $ 37,724 $ 78,386 $ 37,600 $ 113,948 $ (1,677) $ (1,169) $ (7,020) $ (555,732) $ (64,499) $ (164,141) 1 MT. ASHLAND ASSOCIATION Schedule of Functional Expenses ' For the Year Ended June 30, 2010 Ski Ski Buildings ' Tickets Lifts Patrol Vehicles Grooming &Grounds Slopes Lodge REVENUES Sales $ 1,106,900 $ 96 $ 30,939 Rental income 13,781 Contributions ' Investment income Other income 1,810 Total revenues 1,120,681 1,906 30,939 EXPENSES ' Salaries&wages 69,822 $ 165,279 $ 50,970 49,637 $ 39,844 $ 27,183 16,001 Payroll tax 7,772 18,343 5,827 4,976 4,537 2,990 1,853 Employee benefits 4,814 12,268 2,200 6,278 2,999 5,054 82,408 195,890 58,997 60,891 47,380 35,227 - 17,854 ' Cost of goods sold 47,194 - - Amortization and depreciation 6,260 54,957 29,963 2,527 $ 1,877 12,898 Advertising - - Automobile and charter bus - 50,550 t Bank and merchant fees Dues&subscriptions - - 220 - 75 Licenses,permits&fees - - - 486 - 1,209 - Interest expense - Insurance 182 18,096 5,608 5,428 4,251 2,916 1,794 ' Miscellaneous - - 93 Occupancy - 2,055 - - Postage - Professional fees Repair&maintenance 886 13,428 35 26,288 - 6,517 459 Supplies 6,315 195 567 - 30 600 588 - Travel&lodging - 500 - - - 125 - Utilities 6,970 91,372 Waste products ' Water testing - 4,573 Total expenses 150,215 283,066 67,482 173,606 51,661 151,434 2,924 32,546 INCREASE(DECREASE) IN NET ASSETS $ 970,466 $ (283,066) $ (67,482) $ (171,700) $ (51,661) $ (151,434) $ (2,924) $ (1607) , i 1 See independent accountant's review report. ' -14- 1 1 iCa16 Bar Retail Shop School Development Education Admin Marketing TOTAL $ 195,234 $ 106,191 $ 78,760 $ 143,275 $ 30,807 $ 9,639 $ 1,701,841 $ 161,538 175,319 i $ 63,850 8,295 72,145 626 626 6,110 7,920 195,234 106,191 78,760 161,538 143,275 63,850 - 45,838 9,639 1,957,851 1 52,103 8,275 - 31,511 86,934 37,598 $ 5,818 176,965 48,567 866,507 5,986 956 3,631 9,941 3,720 676 17,576 4,839 93,625 2,196 (603) 2,995 5,775 (122) 10,577 725 55,156 60,285 9,233 - 34,539 99,870 47,093 6,372 205,116 54,131 1,015,288 i 83,686 27,329 45,175 203,384 8,294 66 378 25,403 249 693 84,309 885 228,759 - 17 42,157 42,174 i 50,550 34,973 34,973 665 6,422 7,382 725 564 - 480 - - - 378 - 3,842 18,208 18,208 1 1,078 177 - 669 9,534 154 647 93,861 203 144,598 3,789 3,882 57,598 59,653 - 438 1,809 2,247 389 979 48,290 49,658 1 2,351 822 69 349 - - 620 - 51,824 4,152 686 1,050 2.975 615 105 319 10,871 295 35,563 317 5,470 235 5,890 196 12,727 18,184 1,932 118,458 1,459 83 88 1,630 i 4,573 162,030 39,349 47,002 64,135 176,752 49,697 7,338 590,337 99,799 2,089,373 $ 33,204 $ 66,842 $ 31,758 $ 97,403 $ 26,523 $ 14,153 $ (7,338) $ (544,499) $ (90,160) $ (131,522) 1 1 i 1 1 i 1 1