natives of kodiak, inc. september 20,2014 beth stuart kpmg.com
TRANSCRIPT
Natives of Kodiak, Inc.
September 20,2014
Beth Stuart
kpmg.com
2© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 305084
What is an audit?
We are required to follow professional standards. Procedures performed included:
■ Evaluating accounting policies
■ Reviewing procedures and controls
■ Testing transactions
■ Agreeing revenues to source documents
■ Evaluating expenses for reasonableness
■ Assessing reasonableness of estimates and assumptions
Based on procedures performed, we express an opinion about whether financial statements are presented fairly and in conformity with U.S. generally accepted accounting principles (GAAP)
3© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 305084
Scope and results of our audit
Natives of Kodiak, Inc.
Our audit covers Natives of Kodiak, Inc. and its subsidiaries. All transactions of subsidiaries are included in NOK’s financial statements and audit.
NOK received an unqualified opinion.
Natives of Kodiak Shareholder Permanent Fund Trust
The Shareholder Permanent Fund is a separate legal entity. Separate financial statements were prepared and a separate audit was conducted over the Trust.
The Trust received an unqualified opinion.
4© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 305084
Summary of assets (NOK and Trust)
Investment Securities
Cash & Other Assets
Affiliated Companies
Fixed Assets61%
6%10%
23%
December 31, 2013
5© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 305084
Investment securities(NOK and Trust)
2007 2008 2009 2010 2011 2012 2013$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
Bonds
Stocks
Cash
6© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 305084
Operating results
Corporation 2013 2012 2011
Investment securities $1,375,000 $701,000 $(207,000)
Logging 3,590,000 2,207,000 2,361,000
Contractual services (219,000) 352,000 1,005,000
Investments in affiliates 1,143,000 122,000 558,000
Other 297,000 300,000 369,000
General & administrative costs (2,602,000) (2,510,000) (2,754,000)
Income tax (expense) benefit (25,000) 7,000 (5,000)
Comprehensive income $3,559,000 $1,179,000 1,327,000
7© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 305084
Operating results (continued)
Shareholder trust 2013 2012 2011
Investment securities income $2,530,000 $1,450,000 $(160,000)
Investment management fees (48,000) (61,000) (77,000)
General & administrative costs (58,000) (72,000) (55,000)
Income taxes (521,000) (130,000) (103,000)
Comprehensive income (loss) $1,903,000 $1,187,000 ($395,000)
Combined 2013 2012 2011
Corporation comprehensive income $3,559,000 $1,179,000 $1,327,000
Trust comprehensive income (loss) 1,903,000 1,187,000 (395,000)
Combined comprehensive income $5,462,000 $2,366,000 $932,000
8© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 305084
Settlement trust inflation proofing
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
Inflation-proofed value Actual value
Value of original invest-ment, in current dollars
Actual value, after invest-ment earnings and divi-
dend distributions
$19.4 mil-lion
$14.4 mil-lion
9© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 305084
Equity(NOK and Trust)
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
TrustCorp
Equity per 100 shares:
Trust $ 26,613 Corp 30,174 Total $ 56,787
10© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 305084
Dividends per 100 shares
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
Cumulative NOK dividends of $49,235 per 100 shares
Cumulative Trust distributions of $20,374 per 100 units
11© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 305084
Audit communications
Management has not adopted any questionable or unreasonable accounting policies.
The Company’s accounting staff was stable for the year ending December 31, 2013, which has resulted in a satisfactory internal control environment. We encourage the Company to continue their focus on developing routines and processes.
Thank you to staff and shareholders of Natives of Kodiak!
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 305084
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