2012 audit report, historic macon

HISTORIC MACON FOUNDATION, INC.AND SUBSIDIARY

FINANCIAL STATEMENTS ANDAUDITOR'S REPORT

FOR THE YEAR ENDED APRIL 30, 2012

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TABLE OF CONTENTS

PAGE

INDEPENDENT AUDITOR'S REPORT 3

FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL POSITION 4-5

STATEMENT OF ACTIVITIES 6

STATEMENT OF CASH FLOWS 7-8

NOTES TO FINANCIAL STATEMENTS 9-25

SUPPLEMENTARY INFORMATION

SCHEDULE OF FUNCTIONAL EXPENSES 27-28

S.W. Hall & Associates, LLCCertified Public Accountants

1291 Jefferson TerraceMacon, GA 31201

Telephone: (478) 741-9966 Email:[email protected] Fax: (478) 741-14833

Independent Auditor's Report

To the Board of Directors ofHistoric Macon Foundation, Inc. and Subsidiary

935 High St

Macon, GA 31201

We have audited the accompanying statement of financial position of Historic Macon Foundation, Inc. and Subsidiary, (a not-for-profit organization) as of April 30, 2012, and the related statements of activities and cash flows for the year then ended. These financial statements are the responsibility of the Organization's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit 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 financial position of Historic Macon Foundation, Inc. and Subsidiary as of April 30, 2012, and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The schedule of functional expenses on pages 27 and 28, is presented for purposes of additional analysis and is not a required part of the 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 financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or the the 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 financial statements as a whole.

December 28, 2012


STATEMENT OF FINANCIAL POSITION APRIL 30, 2012

See Auditor's ReportAnd Notes To Financial Statements

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ASSETS

CURRENT ASSETS

Cash on hand $ 680Cash in bank 348,107

Total Cash & Cash Equivalents 348,787

Investments 727,651Inventories 1,637Accounts receivable 14,195

Total Current Assets 1,092,270

PROPERTY AND EQUIPMENTLand and buildings-Preservation Projects, net 575,403Property and Equipment, net 463,948

Total Property and Equipment 1,039,351

OTHER ASSETS

Prepaid expenses 3,235Escrow deposit 75,000Beneficial interest in assets held by others 228,063Notes Receivable 147,026Cash restricted for long term purposes 5,077Utility Deposits 240

Total Other Assets 458,640

TOTAL ASSETS $ 2,590,261


STATEMENT OF FINANCIAL POSITION APRIL 30, 2012


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LIABILITIES AND NET ASSETS

CURRENT LIABILITIESAccounts Payable $ 20,395Facade Loan Disbursement Payable 8,333Lease Payable 1,899Accrued Vacation Pay 4,843Accrued Payroll Liabilities 1,522Rental Deposits 5,250Escrow Deposits 4,881

Total Current Liabilities 47,123

LONG TERM LIABILITIESNotes Payable 184,095

Total Long Term Liabilities 184,095

Total Liabilities 231,218

NET ASSETS

UnrestrictedUndesignated 1,054,561Board designated 794,397

Total Unrestricted Net Assets 1,848,958

Temporarily Restricted 459,338Permanently Restricted 50,748

Total Net Assets 2,359,043

TOTAL LIABILITIES ANDNET ASSETS $ 2,590,261


STATEMENT OF ACTIVITIES FOR THE YEAR ENDED APRIL 30, 2012


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Temporarily PermanentlyUnrestricted Restricted Restricted Total

Revenues, gains and other supportContributions $ 3,534 $ 236,689 $ 3,156 $ 243,379In-Kind Contributions 50,133 50,133Membership dues 117,060 117,060Program service fees and income 117,154 117,154Special events 60,242 60,242Interest income 9,641 1,872 11,512Net investment income 24,882 24,882Change in beneficial interest in assets held by others 13,788 (514) 13,275Rental income 24,321 24,321Other income 505 505

Total revenues, gains and other support 407,472 252,349 2,642 662,463

Total net assets released from restriction 16,933 (16,933)

Total support, revenue and net assets released from restriction 424,405 235,416 2,642 662,463

Expenses and lossesProgram services

Preservation and restoration 275,662 275,662Sidney Lanier Cottage 91,406 91,406Education 10,959 10,959

Total program services expenses 378,027 378,027

Support servicesManagement and general 63,295 63,295Fundraising 80,348 80,348Membership Development 38,214 38,214

Total support services expenses 181,857 181,857

Total Expenses 559,884 559,884

Loss on sales of restored properties 421 421

Total Expenses and Losses 560,305 560,305

Change in Net Assets (135,900) 235,416 2,642 102,158

Net Assets - Beginning of Year 1,984,858 223,922 48,106 2,256,886

Net Assets - End of Year $ 1,848,958 $ 459,338 $ 50,748 $ 2,359,044


STATEMENT OF CASH FLOWS FOR THE YEAR ENDED APRIL 30, 2012


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CASH FLOWS FROM OPERATING ACTIVITIESChange in Net Assets $ 102,158Adjustments to reconcile change in Net Assetsto net Cash provided by(used in) operating activities:

Depreciation 15,772Unrealized gains on investments (11,364)Contributions restricted for long term purposes (2,655)Unrealized losses (gains)on beneficial interest in other assets 2,173Realized gains on investments (11,958)Loss on sales of restored properties 421

(Increase) Decrease in Operating Assets:Accounts receivable 12,496Interest Receivable 582Inventory (1,637)Prepaid expenses (934)

(Decrease) Increase in Operating Liabilities:Accounts payable 13,987Accrued interest 317Payroll liablities (1,902)Accrued vacation (1,175)Rental Deposits 3,450

Total Adjustments 17,573Net Cash Provided By Operating Activities 119,731

CASH FLOWS FROM INVESTING ACTIVITIESProceeds from sale of investments 134,048Purchases of investments (126,399)Property improvements-Preservation Projects (1,149,115)Cash restricted for long term purposes 29Disbursements for facade loans (88,333)Principal repayments from facade loans 25,382Principal repayments from other loans 215,000Proceeds from sales of restored properties 1,156,850Beneficial interest in assets held by others (116,218)

Net Cash Provided By Investing Activities 51,244


STATEMENT OF CASH FLOWS FOR THE YEAR ENDED APRIL 30, 2012


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CASH FLOWS FROM FINANCING ACTIVITIESContributions restricted for long term purposes 2,655Notes Payable borrowings 618,180Notes Payable repayment of principal (920,681)

Net Cash Used By Financing Activities (299,846)

NET DECREASE IN CASH AND CASH EQUIVALENTS (128,871)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 477,657

CASH AND CASH EQUIVALENTS AT END OF YEAR $ 348,787


NOTES TO FINANCIAL STATEMENTSAPRIL 30, 2012

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Note 1 Nature of Activities and Significant Accounting Policies

Nature of Activities

The Historic Macon Foundation, Inc. and Subsidiary is a private, nonprofit organization dedicated "to advocating for Macon’s historic and architectural heritage, to facilitating preservation efforts in our community, and to educating and inspiring appreciation for our unique city", according to the organization’s most recent strategic plan. Its current programs include:

Preservation and Restoration:- Educating the public and public officials about revitalization and preservation- Revitalizing entire historic neighborhoods- Operating historic commercial rental property (1083 Washington Ave.)- Restoration of Other Historic District Buildings (Restoration)- Consultation services regarding historic certification of buildings and housing- Operation of revolving loan fund for low interest restoration loans.

Education: - Conducting interpretive tours of historic sites

- Sponsoring guest lectures with presentations related to literature, preservation and restoration- Publishing digital and print newsletters updating its membership and local officials of preservation efforts, including low-income housing and economic development

Sidney Lanier Cottage

- Tours- Rentals- Museum Store- Historically-related events



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Basis of Presentation:

The financial statements of the Organization have been prepared on the accrual basis of accounting, in conformity with generally accepted accounting principles.

Net assets are reported in each of the following three classes: unrestricted net assets, temporarily restricted net asses, and permanently restricted net assets.

Unrestricted Net Assets - Net assets that are not subject to donor-imposed restrictions.

Temporarily Restricted Net Assets - Net assets subject to donor-imposed stipulations that may or will be met, either by actions of the Organization and/or the passage of time. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released

Permanently Restricted Net Assets - Net assets subject to donor-imposed stipulations that must be maintained permanently by the Organization. The investment return is available to support operations and preservation projects.

Contributions and Grants:

Contributions, including unconditional promises to give, are recorded as made. All contributions are available for unrestricted use unless specifically restricted by the donor. Conditional promises to give are recognized when the conditions on which they depend are substantially met.

Investments

The Organization reports investments in marketable securities with readily determinable fair values and all investments in debt securities are valued at their fair values in the statement of financial position. Unrealized gains and losses are included in the change in net assets. Real estate investments and equity securities without readily determinable fair values are stated at cost.

Accounting for Wholly-Owned Subsidiary:The Organization owns a single member Limited Liability Company (LLC) named Historic Macon Properties, LLC to acquire and manage preservation projects until they are sold. The activities of this subsidiary are consolidated into the Organization's financial statements.



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Use of Estimates:The preparation of financial statements in conformity with 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.

Income tax status:

The Organization is a not-for-profit organization that is exempt from federal and state income tax under Section 501(c)(3) of the Internal Revenue Code. The Organization has also been classified as an entity that is not a private foundation within meaning of Section 509(a) and qualifies for deductible contributions as provided in Section 170(b)(1)(A)(vi). The Organization has evaluated the effect of generally accepted accounting principles for Uncertainty in Income Taxes. The Organization is subject to federal income tax on unrelated business income. Management believes that the Organization continues to satisfy the requirements of tax-exempt organization and therefore had no uncertain income tax positions at April 30, 2012. The Organizations federal retrurns, form 990, are subject to examination by the IRS, generally for three years after the date they were filed.

Cash and Cash Equivalents:

For the purposes of the statement of cash flows, the Organization considers all unrestricted,highly liquid investments with an initial maturity of three months or less to be cash equivalents.

Fair Value Measurements

The Organization measures and discloses fair value measurements in accordance with authoritative literature. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, the inputs used to measure fair value are prioritized based on a three level hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are a follows:

Level 1 - These inputs are based on unadjusted quoted market prices for identical assets orliabilities in an active market the Organization has the ability to access. An activemarket is a market in which transactions occur with sufficient frequency andvolume to provide pricing information on an ongoing basis.



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Level 2 - These inputs relate to adjusting information from similar items that are traded inactive markets or from identical or similar items in markets that are not active.

Level 3 - These are unobservable inputs for the asset or liability, which are typically based on the Organization’s own assumptions about the assumptions market participants would use in pricing the asset or liability.

Property, Plant, and Equipment and Depreciation:

Property, plant, and equipment assets are stated at cost for purchased items and at fair market value for donated items. Depreciation expense is computed on the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows:

YearsBuildings 40Leasehold improvements 7-8Land improvements 15Furniture, Fixtures, and Equipment 4-10

Vehicles 5

No depreciation is recognized on the Sidney Lanier Cottage building, as it is considered a historical treasure, with an extraordinary useful life. All costs associated with the properties of neighborhood revitalization projects were capitalized, with the exception of expenses related to properties currently being held for rent.

Advertising Costs:

Advertising costs are expensed when incurred. Total advertising costs incurred for the year was $5,817 and is recorded on the statement of functional expenses.



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In-Kind Donations and Contributed Services:

Material gifts in-kind items used in the Organization are recorded as support and expense at the time the items are placed into service or distributed. The Organization records various types of in kind support including contributed services. Contributed services are recognized if the services create or enhance non-financial assets or require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donations. Also, many individuals volunteer their time and perform a variety of tasks that assists the Organization with specific programs and various committee assignments throughout the year. Those contributed services do not meet the recognition criteria under generally accepted accounting principles.

Collections

The Organization's collections consists of letters and personal memorabilia of Sidney Lanier, and various antiques and artwork contributed by Middle Georgians. Each of the items is cataloged, preserved, and cared for, and activities verifying their existence and assessing their condition are performed periodically. The collection items are not capitalized. Purchases of collection items are recorded as decreases in unrestricted or permanently restricted net assets if purchased with donor-restricted assets. Contributions of collection items are recognized in the Statement of Activities based on the absence or existence and nature of donor-imposed restrictions.

Expense Allocation

Directly identifiable expenses are charged to programs and supporting services. Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies. Management and general expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the Organization.



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Note 2 Notes Receivable

Notes receivable consisted of the following at year end:

The Organization administers a revolving loan fund that was established from various grant funds. Loans in the amounts of $5,000 and $10,000 are made to eligible participants for the restoration and preservation of historic properties. The loans are repayable in monthly installments over five years at an interest rate of 2% per annum. $ 147,026

Total $ 147,026

Note 3 Beneficial interest in other assets

Beneficial interests in assets held by others consisted of the following at year end:

The Organization is the beneficiary an endowment fund for the Sidney Lanier Cottage with the Community Foundation of Central Georgia. The Organization has specified that the investment income from the funds be used for the repairs and maintenance of the Sidney Lanier Cottage. The funds are invested in an investment pool consisting of cash and long term securities. Changes in the fair value of these assets are reflected in the statement of activities as gains or losses. $ 97,302

The Organization is the beneficiary an endowment fund for the Macon Dog Park with the Community Foundation of Central Georgia. The Organization has specified that the investment income from the funds be used for the repairs and maintenance of the Macon Dog Park. The funds are invested in an investment pool consisting of cash and long term securities. Changes in the fair value of these assets are reflected in the statement of activities as gains or losses. 15,153



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The Organization is the beneficiary of an endowment fund established fund for the Rose Hill Cemetery with the Community Foundation of Central Georgia. The funds are to be used for the repairs and maintenance of the Rose Hill Cemetery. The funds are invested in an investment pool consisting of cash and long term securities. Changes in the fair value of these assets are reflected in the statement of activities as gains or losses. 115,609

Total $ 228,064

Note 4 Temporarily Restricted Net Assets

Temporarily restricted net assets are available for the following purposes:

Preservation and Restoration Projects $ 130,544Macon Dog Park 17,484Facade Loans 176,526Education 8,204Legal Defense fund 6,578Rose Hill Cemetery 114,199Sidney Lanier Cottage Garden 3,999Vending Machines 1,804Total $ 459,338

Note 5 Net assets released from restriction

Net assets were released from donor restrictions by incurring expenses satisfying the restricted purpose or by occurrence of other events specified by donors.

Purpose restrictions accomplished for the following:

Preservation and Restoration Projects $ 10,794Macon Dog Park 7Facade Loans 3,670Education 58Legal Defense fund 29Rose Hill Cemetery 2,375Total $ 16,933



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Note 6 Permanently Restricted Net Assets

Permanently restricted net assets were held for the following endowment purposes:

Sidney Lanier Cottage Endowment $ 47,155Preservation Endowment 3,593

$ 50,748

Note 7 Investments

Capital City Trust Company manages a portfolio of investment securities through a trust arrangement. These funds are stated at fair values as determined by public stock market quotations and consisted of the following at April 30, 2012:

Unrealized Appreciation

Cost Fair Value (Depreciation)

Cash and Cash Equivalents $ 23,992 $ 23,992 $Mutual Funds 31,220 39,188 7,968Stock & Equity Funds 342,235 439,093 96,858Fixed Income Securities 218,042 225,378 7,336

$ 615,489 $ 727,651 $ 112,162

These funds represent board-designated amounts set aside in prior years for the purpose of providing an income stream for annual operations.

This investment portfolio secures the lines of credit with Capital City Bank that are listed elsewhere in the notes to the financial statements.

Investment return from all sources is summarized as follows:

Interest $ 2,472Dividends 12,958Net Realized Gains and Losses 12,043Net Unrealized Gains and Losses 2,691

$ 30,164Less Management Fees (5,282)Net Gain on Investments $ 24,882



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Note 8 Land and Buildings-Preservation Projects, Net

Land and buildings-preservation projects, net consisted of the following April 30, 2012:

Neighborhood Properties $ 575,403Total $ 575,403

Note 9 Land, Property, and Equipment

Land, property, and equipment consisted of the following at April 30, 2012:1083 Washington Avenue $ 240,874Sidney Lanier Cottage 238,562Land Improvements 29,501Furniture, Fixtures, and Equipment 58,069Leasehold Improvements 4,646Vehicle 500Less Accumulated Depreciation (108,204)

Total $ 463,948



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Note 10 Endowment Funds

The Organizations endowment fund consists of individual donor restricted endowment funds and funds designated by the Board of Trustees (“Board”) to function as endowments. The net assets associated with endowment funds, including those funds designated by the Board to function as endowments, are classified and reported based on the existence or absence of donor-imposed restrictions.

The Organization has interpreted the State of Georgia’s enacted version of the Uniform Prudent Management of Institutional Funds Act (UPMIFA) as imposing a duty on the Organization to use good faith and prudent care in adopting investment and spending policies to preserve endowment assets while providing income and appreciation to meet the donors’ intention in perpetuity. As a result of this interpretation, the Organization classifies as permanently restricted net assets, (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund.

The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the Organization in a manner consistent with the standard of prudence prescribed by UPMIFA. The Organization made a decision to allow spending from endowment funds based on the current spending policy and limited the spending, where applicable, to available cash balances and investment return. In accordance with UPMIFA, the Organization considered the following factors in making their determination to appropriate or accumulate endowment funds: 1) The duration and preservation of the fund, 2) The purposes of the Organization and the donor restricted endowment fund, 3) General economic conditions, 4) The possible effect of inflation and deflation, 5) The expected total return from income and appreciation of investments, 6) Other resources of the Organization, and 7) The investment policies of the Organization.

Where the Board designates unrestricted funds as endowments, they are classified as unrestricted net assets.



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Note 10 Endowment Funds (continued)

Investment Return Objectives, Risk Parameters and Strategies. The Organization has adopted investment and spending policies, approved by the Board of Trustees, for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment funds while also maintaining the purchasing power of those endowment assets over the long-term. Accordingly, the investment process seeks to achieve an after-cost total real rate of return, including investment income as well as capital appreciation, which exceeds the annual distribution with acceptable levels of risk. Endowment assets are invested in a well diversified asset mix, which includes equity and debt securities, 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 funds if possible. Therefore, the Organization expects its endowment assets, over time, to produce an average rate of return of approximately 8% annually. 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.

Endowment funds with deficiencies. From time to time, the fair value of assets associated with individual donor endowment funds may fall below the value of the initial and subsequent donor gift amounts (deficit). When donor endowment deficits exist, they are classified as a reduction of unrestricted net assets. No deficits of this nature were reported in unrestricted net assets as of April 30, 2012.

Endowment net asset composition by type of fund as of April 30, 2012 is as follows:

Permanently Unrestricted Restricted Total

Donor-restricted endowment funds $ $ 50,748 $ 50,748Board-designated endowment funds 794,397 794,397

Total Funds $ 794,397 $ 50,748 $ 845,145



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Note 10 Endowment Funds (continued)

Changes in endowment net assets as of April 30, 2012 is as follows:

Total NetPermanently Endowment

Unrestricted Restricted Assets

Endowment net assets, beginning of the year $ 809,005 $ 48,105 $ 857,110Contributions 1,250 3,156 4,406Interest 2,741 2,741Investment income 19,719 1,660 21,379Market valuation adjustments 864 (2,173) (1,309)Amounts appropriated for expenditure (39,182) 39,182

Endowment Net Assets April 30, 2012 $ 794,397 $ 50,748 $ 845,145



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Note 11 Notes Payable

Notes payable consisted of the following at April 30, 2012:

Capital City Bank - Line of Credit - Neighborhood Properties

The Organization has a line of credit with Capital City Bank which matures annually in June. Interest is payable monthly at the J.P. Morgan Chase prime rate. At April 30, 2012 the rate was 4.75%. The line is secured by the portfolio of investments managed by Capital City Trust Company for the Organization. The maximum amount available on this line of credit is $600,000. $ 57,668

Capital City Bank - Line of Credit - Other

The Organization has a revolving line of credit with Capital City Bank which matures annually in June. Interest is payable monthly at the J.P. Morgan Chase Prime rate. At April 30, 2012 the rate was 4.75%. The line is secured by the portfolio of investments managed by Capital City Trust Company for the Organization. Proceeds from the loan are being used for the various property rehabilitation programs and for working capital. The maximum amount available on this line of credit is $100,000. 11,760

Historic Hills and Heights Development Corporation

The Organization has a promissory note payable to Historic Hills and Heights Development Corporation. Principal and interest is payable upon the sale of the property located at 1311 Ross Street. Proceeds from the loan are being used to construct a single family dwelling at the property. There is a fixed loan fee payable at the time of sale for the amount of $2,207. The promissory note is secured by the above referenced real estate. Construction of the property has been completed and it is available for sale. 114,667

Total Notes Payable $ 184,095

Future scheduled maturities of notes payable are as follows:Years Ending April 30:

2013 $ 184,095



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Note 11 Notes Payable (continued)

The Organization expects the short term obligations to be refinanced upon their maturity and has demonstrated the ability to obtain long term financing based on historical information. Therefore all debt obligations have been classified as long term liabilities.

Note 12 Program Service Fees and Income

Program service fees and income consisted of the following activities during the year:

Sidney Lanier Cottage

Tours $ 5,466Museum Store Sales 14,572Rental Income 15,830

Total Sidney Lanier Cottage 35,868

Other Program Services

Publications and Calendar Sales $ 90Historical and Architectural Tour and Lecture Fe 3,995Preservation Programs 389Revitalization project fees 71,991Other fees 4,821

Total-Other 81,286Total Program Service Fees and Income $ 117,154

Note 13 Special Events

Special events consisted of the following activities during the year:

Flea Market $ 29,398Sidney Lanier Cottage Events 11,294Ingleside Dedication 19,550

Total $ 60,242



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Note 14 Interest Costs

Interest costs incurred and capitalized for the year are summarized as follows:

Interest paid-current year $ 16,980

Total interest costs incurred 16,980

Less interest costs expensed currently (7,213)

Total interest capitalized current year $ 9,767

Capitalized interest-beginning of year $ 25,677Less Capitalized interest included in cost of restored properties sold (8,118)

Capitalized interest-end of year $ 27,326

Note 15 Gain (Loss) on Sales of Restored Properties

The following is the detail of sales of restored properties during the year ended April 30, 2012:

Restoration CostsProperty Location Contract Price & Selling Expenses Gain/(Loss)

1030 Elm St. $ 113,000 $ (118,687) $ (5,687)1035 Elm St. 126,900 (144,072) (17,172)1326 Ross St. 127,900 (148,042) (20,142)1039 Elm St. 71,000 (73,748) (2,748)1216 Ross St. 159,900 (153,585) 6,3151260 Calhoun St. 108,250 (107,395) 8551342 Ross St. 139,900 (131,515) 8,385923 Washington Ave. 310,000 (280,227) 29,773Total $ 1,156,850 $ (1,157,271) $ (421)



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Note 16 Fair Value Measurement

The following table represents the assets and liabilities that were measured on a recurring basis as of April 30, 2012.

Level 1 Level 2 Level 3Investments $ 727,651 $ $Beneficial interest in assets 228,064

Total $ 727,651 $ 228,064 $

The following methods and assumptions were used to determine the fair value of each class of the financial instruments:

Investments - Fair values are determined based on the quoted market prices found on the national market or exchanges. (Note 7)

Beneficial interest in assets held by others - Valued at the Organization's pro-rata share of the community foundation's investment pools. (Note 3)

Note 17 In-Kind Contributions

The value of donated materials and services included in the financial statements and the corresponding expenses for the year ended April 30, 2012 are as follows.

In-kind Support:

Donated items for Flea Market $ 26,133Donated rent 24,000

$ 50,133

Expenses and LossesRent expense 24,000Donated items for Flea Market 26,133

$ 50,133



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Note 18 Related Party Transactions and Disclosures

A Trustee of the Organization is a licensed real estate agent who is associated with a real estate company that sold restored properties during the year. The real estate company received broker commissions on the sale of properties totaling $55,005.

Note 19 Evaluation of Subsequent Events

Management has evaluated subsequent events through December 28, 2012, the date the financial statements were available to be issued.

SUPPLEMENTARY INFORMATION


SCHEDULE OF FUNCTIONAL EXPENSESFOR THE YEAR ENDED APRIL 30, 2012


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Program ServicesPreservation Sidney Total

and Lanier ProgramRestoration Cottage Education Services

Payroll ExpensesSalaries and wages $ 108,190 $ 36,868 $ 8,638 $ 153,697Payroll taxes 8,356 2,846 667 11,869Employee benefits 1,663 567 133 2,362

Total payroll expenses 118,209 40,281 9,438 167,928

Other ExpensesAdvertising and marketing 1,701 4,115 5,816Bank charges 2,959 2,959Computer expenses 4,194 4,194Conferences, workshops and meetings 10,015 10,015Contract Services 86,078 1,429 87,507Dues and subscriptionsInsurance 3,215 9,892 742 13,848Interest 6,890 322 7,213Miscellaneous 5,322 5,322Museum store purchases 7,826 7,826Professional fees 340 340RentRepairs & Maintenance 28,179 10,770 38,949Supplies 2,074 6,376 8,450Taxes 128 128Travel 1,194 1,194Truck expense 1,784 1,784Utilities 1,328 4,087 307 5,722

Total other expenses 155,403 44,816 1,048 201,267

Total expenses before depreciation 273,612 85,097 10,486 369,195

Depreciation expense 2,050 6,309 473 8,832

Total expenses $ 275,662 $ 91,406 $ 10,959 $ 378,027




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Supporting ServicesManagement

and Membership TotalGeneral Fundraising Development Expenses

Payroll ExpensesSalaries and wages $ 22,306 $ 17,323 $ 15,757 $ 209,083Payroll taxes 1,723 1,339 1,217 16,147Employee benefits 343 266 242 3,214

Total payroll expenses 24,372 18,928 17,216 228,444

Other ExpensesAdvertising and marketing 5,816Bank charges 2,959Computer expenses 4,194Conferences, workshops and meetings 10,015Contract Services 87,507Dues and subscriptions 1,982 1,982Insurance 5,193 2,226 3,462 24,729Interest 7,213Miscellaneous 5,322Museum store purchases 7,826Professional fees 7,031 7,371Rent 24,000 24,000Repairs & Maintenance 7,309 46,258Supplies 11,951 32,855 13,897 67,153Taxes 128Travel 1,194Truck expense 1,784Utilities 2,146 920 1,430 10,217

Total other expenses 35,611 60,000 18,790 315,668

Total expenses before depreciation 59,983 78,928 36,006 544,112

Depreciation expense 3,312 1,419 2,208 15,772

Total expenses $ 63,295 $ 80,348 $ 38,214 $ 559,884

2012 audit report, historic macon

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