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Home My WebLink About2007 PA CONVENTION & TOURIST ASSOCIATION FINANCIAL STATEMENTh - .. y ~~~. n .. n . - - M 3y ~ -V p K SY Tx. - n V ~.. ~ ., d .y 9 . ~~, ~ .~ ~ :a ] rc ~ ~ 0 21~+,.. .~ 4n ~ ''~' ~ a ~ ~ P 4 y ~ d yY.' 5a ,F ,~{.~.i ~ S N 4 Y .C T' ,~ ''~ _. $ ~??}~ ~¢, s ~ 1$..e 'r ~.: p ~~' S tea' i'Ty~ ~{ ~" °` " n ~~ ~'4d~e 444 S[ ~~ ~}q.. ~ •e.. ~ ~ x'Y il1 & E. ~ , ~~ b. : ~ i F~ 45~ ~ ~• ~ p i sr 3' ... ~sl,~'T'. +lc.. ~ ~& - ~~ a ~ ~ #~ ~ r '~r,R' ~ .>. '~ ; ran ~ _ ~ ~ `' ~, '~' F ~... ,,~",gig ~°' ,~ir'3~~ar ~~~ ~ 'an .e. ~ .. gg a - ~ ~ ~~`~ F ~~ ~..~ ~ [. L~~~~l~~%~ ~ R_Y a ii ~ .. ~ ~~3~ ~ ~ £ ~P4 ~..~ .. ~ ~i - '9 x^~ ~ ~,,~ `~ "~~: ~~.~.'IY .~ .,~,~ ,.y~~ ~. ..fir 9 '•'~ 'T'ier '~ ~$ ~':: &' 3~~'~ "+. .E. " ;• d:~ ~ .~: ~"L., ,fi .~ ,~_ ~ ~~ :: }~ g ~}' ~ sx eYa~.» C. rafl'• ~~ s c ~.~F ~ r f`-d~ .per 4.. ~& i. •. y .c _~ .. r ~ ,_. ,.;mow . _ . '*...dt=~' a .. ~*~A~.5iSSii'.... .~ :.. 95. March 6, 2008 Mr. Steve Fitzgibbons, City Manager City of Port Arthur P. O. Box 1089 Port Arthur, Texas 77641-1089 Dear Mr. Fitzgibbons, convention ~ Visitors Bureau 401 Cultural Center Drive Port Arthur, TX 77642 4X (409) 985-5584 1-800-235-7822 www. Aorta rth u rtexas. com (E-Mail) pacvbC~portarthurtexas.com The 2007 financial audit of the Port Arthur Convention and Visitors Bureau has been completed by Brammer, Begnaud and Lattimore and has been copied to your office as well as the office of Rebecca Underhill. Please note that this audit is a 9 month audit. The CVB has changed to a fiscal year to match the city to help ease confusion. There are no comparative columns as it is 9 month versus a full year. The next audit will be a fisca12007/2008 audit. You will find the audit is favorable and that the Bureau remains incompliance with the rules and regulations that govern our,office as well as being fiscally responsible. The Port Arthur Convention and Visitors Bureau Board of Directors reviewed and accepted the audit delivered by Mr. Larry Begnaud, CPA. If any questions arise when reviewing the audit, please call me. The Chairman of the Convention and Visitors Board during 2007 was Mr. Arthur Guidry or Mr. Larry Begnaud would also be available should questions azise. Thank you for your ongoing support of tourism. Sincerel G~ Tammy Kotara- otzur Executive Director cc: Rebecca Underhill, City Finance Officer • (aos) sasaa2z 9I le PORT ARTHUR CONVENTION AND TOURIST ASSOCIATION PORZARTHUR,TEXAS a_ ANNUAL FINArNCI.AL REPORT NINE MONTHS ENDED SEPTEMBER 30, 2007 BOARD OF DIRECTORS Arthur Guidry ~ Chairman Jeanette Sanders Vice-Chairman Bonnie Wilkinson - Secretary-Treasurer Debra Asbury Director. Carol Hebert ~ Director Ronnie Hicks Director Johnnye Williamson. .Director Volney Pinder Director- - Katie Pitre Director Tammy Kotzur Executive Director - I ;;_ Brammer, Begnaua~ ~ @afQimore r~ . r,;,; _ . - -r; i ii 3025 PLAZA CIRCLE 'POR T ARTHUR. TX 77642 _ TEL. 409.983.1669 PAX. 409.983.5828 WWW.BBLC PA_COM INDEPENDENT AUDITORS REPORT January 14, 2008 Board of Directors Port Arthur Convention and Tourist Association Port Arthur, Texas We have audited the accompanying statements of financial position of the Port Arthur Convention and Tourist Association (a non-profit organization) as of September 30, 2007, and the related statements of activities and cash flows for the nine months then ended. These financial statements are the responsibility of the Association'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. 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 audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the fmancial position of the Port Arthur Convention and Tourist Association, as of September 30, 2007, and the changes in its net assets and cash flows for the nine months then ended in conformity with accounting principles generally accepted in the United States of nca. BR~MMER B~& LATTIMORE 1 EXHIBIT "A" ' PORT ARTHUR CONVENTION AND TOURIST ASSOCIATION PORT ARTIIT JR TEXAS STATEMENTS OF FINANCLAL POSITION SEPTEMBER 30, 2007 Assets ~ 2007 Current Assets Cash in bank (including money market funds) $ 133,989.85 Other Receivable 50.00 Accrued Interest Receivable 110.60 Prepaid expenses-insurance 5,214.81 Prepaid expenses-advertising 1,918.80 Total Current Assets ~ ~ $ 141,284.06 Property and Ectuipment-Note 1 Furniture and equipment $ 37,791.81 Less: accumulated depreciation ~ (27,649.90) Net property and equipment $ 10,141.91 Total Assets $ 151.425.97 Liabilities and Net Assets Current Liabilities Accounts payable $ 7,384.87 Deferred Revenue -Grant Proceeds 5,162.29 Total Liabilities-All Current $ 12;547.16 Net Assets Unrestricted-Exhibit "B" $ 138,878.81 Total Liabilities andl~Tet Assets $ 151,425.97 2 The accompanying notes are an integral part of these financial statements EXHIBIT "B" PORT ARTHUR CONVENTION AND TOURIST ASSOCIATION PORT ARTHUR, TEXAS STATEMENT OF ACTNITIES NINE MONTHS ENDED SEPTEMBER 30, 2007 UNRESTRICTED NET ASSETS 2007 Public Support City of Port Arthur hotel occupancy taxes ~ $ 335.999.97 • Total Public Support $ 335,999.97 Revenues Donated Use of Facilities $ 2,814.00 Grant Revenue 29,020.60 Investment income 1.326.49 Total Revenues $ 33,161.09 Total Suvyort and Revenue _ $ 369.161.06 Expenses Program services: Convention attendance and promotion $ 35,779.66 Tour receptions and promotion 23,739.98 Public information-printing and postage 27,434.64 Direct advertising 23,090.00 General tourism promotion ~ 100,698.96 Special Project -Joint County 0.00 Salary-marketing director 26,601.66 Salary--convention sales director 26,601.66 Payroll tax expense 4,225.51 Employee benefits 13,710.33 Total Program Service Expenses $ 281 882.40 Supporting services: Auditing and advisory services $ 7,423.85 Depreciation 1,058.24 Employee benefits " 12,178.27 Insurance 1,120.29 Miscellaneous ~ 667.03 Office supplies and expense 2,877.20 Rental equipment and facilities 5,178.19 Repairs and maintenance contract 596.00 3 The accompanying notes are an integral part of these financial statements EXHIBIT "B" (Continued) PORT ARTHUR CONVENTION AND TOURIST ASSOCIATION PORT ARTHUR; TEXAS STATEMENT OF ACTIVITIES NINE MONTHS ENDED SEPTEMBER 30, 2007 Supporting services: (continued) 2007 Salary-executive director $ 35,303.94 Salary-office manager 19,602.20 _ Taxes-payroll 4,355.23 Telephone 2,051.40 Utilities cost sharing 4,000.00 Total Supporting Services $ 96.411.84 > Total Expenses ~ $ 378.294.24 Increase (Decrease) in Unrestricted Net Assets $ (9,133.18) Unrestricted Net Assets-Beginning 148,011.99 inrestricted Net Assets-Endine $ 138 878 81 4 The accompanying notes are an integral part of these financial statements EXHIBIT "C" PORT ARTHUR CONVENTION AND TOURIST ASSOCIATION PORT ARTHUR, TEXAS STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2007 Cash Flows From Operating Activities Increase (Decrease) in net assets Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation (Increase) Decrease in: Accounts Receivable Prepaid expenses Increase (Decrease) in: Accounts payable Accrued Payroll Deferred Revenue -Grant Proceeds Net Cash Provided (Used By Operating Activities Cash Flows from Investing Activities Purchase of equipment Net Cash (Usedl By Investing Activities Net Increase (Decrease) In Cash And Cash Equivalents Cash and Cash Equivalents-beginning of year Cash and Cash Equivalents-end of year 5 2007 $ (9,133.18) 1,058.24 246.38 (562.70 5,511.25 0.00 (7,562.74) $ (10,442.80) $ j7,206.85) $ (7,206.85) $ (17,649.65) 151,639.50 $ 133.989 85 The accompanying notes are an integral part of these financial statements PORT ARTHUR CONVENTION AND TOURIST ASSOCIATION PORT ARTHUR. TEXAS NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30 2007 The Port Arthur Convention and Tourist Association is annon-profit organization, founded May 24, 1976 under Section 501(c)(6) of the Internal Revenue Code as an un-incorporated trade association. The association was formed for the purpose of promoting tourism and conventions in the City of Port Arthur and vicinity. The Associations board of directors are appointed by the Boazd and approved by a majority vote. Funds for associations operations -are provided through a contractual agreement with the City of Port Arthur. Note 1--Summary of Significant Accounting Policies (A) Accounting Policies The financial statements of the Port Arthur Convention and Tourist Association have been prepazed utilizing the accrual basis of accounting. (B) Cash and Cash Equivalents For purposes of the statements of cash flows, the Association considers all highly liquid investments available for current use with an initial maturity of three months or less to be cash equivalents. (C) Donated Office Space and Services ` Office space provided by the Museum of the Gulf Coast and the Ciry of Port Arthur has been reflected in the financial statements based on estimated rental market values totaling $2,814.00 for nine months. _ ' Due to Hurricane Rita,. the Port Arthur Civic Center was severely damaged and forced the Convention and Tourist Association to relocate to the Museum of the Gulf Coast. The Association agreed to share the utility, maintenance, and communications costs at a rate of $500.00 per month. In July of 2007, the Association returned to their offices in the Port Arthur Civic Center, where they have resumed their previous contract at a payment of $500.00 a month. During the nine months ended September 30, 2007, the value of contributed volunteer services, meeting the requirements for recognition in the financial statements, was not material and has not been recorded. The value of the contributed services for 2007 was $749.98. In addition, many individuals volunteer their time as volunteer step-on tour guides, 6 PORT ARTHUR CONVENTION AND TOURIST ASSOCIATION NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30. 2007 Note 1--Summary of Significant Accounting Policies (C) Donated Office Suace and Services hospitality workers and office clerical help, but these services do, not meet the criteria for recognition as contributed services. (D) Property and Equipment It is the association' s policy to capitalize [he property and equipment over $500.00. Lesser amounts are expensed. Furniture, fixtures and equipment are stated at cost. Depreciation is computed on a straight-line basis over an estirriated useful life of seven to ten years. for furniture and fixtures, and five yeazs for computer equipment and peripherals. Additions to furniture and equipment aze reviewed and approved by board action. (E) Income Tax Status The Association is snot-for-profit organization and is exempt from federal income tax under Section 501(c) (6) of the Internal Revenue Code. Contributions to the Association are not deductible for tax purposes liy the donor as charitable contributions. The Association is not a private foundation. (F) Financial Statement Presentation The Association is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net' assets.- As permitted by SFAS Statement 117, the Association does not use fund accounting. (G) Estimates The prepazation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from'those estimates. 7 ,. PORT ARTHUR CONVENTION AND TOURIST ASSOCIATION NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30. 2007 Note 2~ity of Port Arthur Occupancy Tax Revenue The Association has agreed to an amendment to the contract where the City will allocate Hotel- Motel occupancy tax funds for the Association each year based on a review of the Associations performance and the effectiveness of the marketing efforts of the to Association and its value to tourism in Port Arthur. These funds will be remitted to the Association each month during the period. For the 2006-2007 budget yeaz (October 2006 through September 2007) the City has allocated $400,000.00 and for the 2007-2008 budget the City has allocated $450,000.00. Note 3--Program Service Revenue The~Association conducts many various activities in its efforts to promote tourism. Program Service Revenue results from sales at cost of promotional memorabilia such as t-shirts, post cards, souvenirs, maps, and guides to local attractions. The emphasis toward Program Service Revenue has been reduced in recent years. Note 4--Employee Benefits Employee benefits provided by the Association include medical and dental insurance benefits paid for employees. The Association provides no pension or post-retirement benefits. Compensated absences are provided on a calendar year for employee sick leave, extended disability leaves and vacation. Afrer asix-month- probationary period of employment, 'employees are eligible for vacation leave as follows: Yeazs of Employment Paid Vacation Days 1 to 4. years 10 days 5 to 9 years 15 days 10 to 19 years 20 days 20 to 24 years 25 days 8 PORT ARTHUR CONVENTION AND TOURIST ASSOCIATION NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 Note 4 -- Employee Benefits (continued) With the approval of the director, vacation may be postponed afer earned for a maximum period of 12 calendar months afer the calendar year ends. All vacation leave expires afrer this period. Accrued vacation time payable but not recorded at September 30, 2007 is $11,378.27. Sick leave is granted after the probationary period for 10 working days each calendar year. Unused sick leave may be accumulated up to a maximum of 30 days, accrued one day per month. Sick leave may not be paid as termination or additional pay. Extended disability leave, after sick leave and vacation leave are exhatisted, is allowed as follows: Half Pay for Years of Employment Disability Leave 1 to 4 years No Pay 5 to 9 years 30 Working Days 10 to 15 years 40 Working Days 15 to 20 years, 60 Working Days Holiday leave is granted for the same, official holidays as granted to City of Port Arthur, Texas _ employees. These are considered paid legal holidays. Note 5-- Concentration of Risk Program activity and revenues for the association are directly related to the hotel motel business in and around the City of Port Arthur, Texas. Since the City has .amended the contract; the association is guaranteed certain revenues each year. However those revenues are based on hotel motel occupancy taxes and an evaluation of the results of the associations' impact on influencing the levels of occupancy of the local hotels and motels for the next year' s revenue. 9 PORT ARTHUR CONVENTION. AND TOURIST ASSOCIATION NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 Note 6-Fiscal Year Change Effective the fiscal year beginning October I, 2007, Port Arthur Convention and Tourist Association will change from a calendar year end to a fiscal yeaz end of September 30. A nine month fiscal transition period from January 1, 2007 through September 30, 2007, precedes the start of the new fiscal'-year cycle. 10