AUDIT

Dm1624

Informations

• Publié par: Kunum
• Nombre de lectures: 24
• Langue: English

Extrait

BROOKLYN PUBLIC LIBRARY AND BROOKLYN PUBLIC LIBRARY FOUNDATION

CONSOLIDATED FINANCIAL STATEMENTS

JUNE

30, 2006

and 2005

INDEPENDENT AUDITORS' REPORT

Board of Trustees Brooklyn Public Library and Brooklyn Public Library Foundation Brooklyn, New York

We have audited the accompanying consolidated statements of financial position of the Brooklyn Public Library and the Brooklyn Public Library Foundation (collectively, the "Library") as of June 30 2006 and 2005, and the related consolidated statements of activities, functional expenses and cash flows for the years then ended. These financial statements are the responsibility of the Library'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 audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial statements enumerated above present fairly, in all material respects, the financial position of the Brooklyn Public Library and the Brooklyn Public Library Foundation as of June 30, 2006 and 2005, and the changes in their net assets and their cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

New York, New York September 15, 2006

BROOKLYN PUBLIC LIBRARY AND BROOKLYN PUBLIC LIBRARY FOUNDATION Consolidated Statements of Financial Position

ASSETS Cash and cash equivalents Receivables, net Investments Property and equipment, net Other assets

LIABILITIES AND NET ASSETS Accounts payable, accrued expenses and adv ances Accrued wages and related liabilities Total liabilities Commitments and contingencies (Notes F and J) Net assets: Unrestricted: Corporate Board-designated for use in next fiscal year Board-designated for Cash Management Plan Board-designated for Plaza Auditorium Project Board-designated for library material acquisitions Total unrestricted Temporarily restricted Permanently restricted Total net assets

See notes to consolidated financial statements

June 30, 2006 2005

$ 2,443,412 $ 1,713,605 9,280,288 8,094,519 26,577,766 24,951,730 9,156,574 7,004,892 437,717 412,543 $ 47,895,757 $ 42,177,289 $ 4,866,312 $ 3,825,530 9,955,366 9,262,806 14,821,678 13,088,336

22,688,883 12,157,635 1,234,848 1,627,944 6,800,000 1,412,078 1,118,968 1,232,210 1,232,210 26,568,019 22,936,757 4,507,543 4,223,679 1,998,517 1,928,517 33,074,079 29,088,953 $ 47,895,757 $ 42,177,289

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BROOKLYN PUBLIC LIBRARY AND BROOKLYN PUBLIC LIBRARY FOUNDATION Consolidated Statements of Activities

Revenue and support: City of New York State of New York Federal government Contribution income Purchase discount reimbursement contribution Contributed facilities and utilities Net investment income Contributed goods and services Special events, net of direct benefit to donors of $67,054 and $74,152 in 2006 and 2005, respectively Fines, royalties and other revenue Net assets released from restrictions Total revenue and support Expenses: Program services: Central library Neighborhood libraries Special programs Total program services Supporting services: Management and general Fund-raising Total supporting services Total expenses Change in net assets Net assets - July 1 Net assets - June 30

See notes to consolidated financial statements

Year Ended June 30, 2006 2005 Temporarily Permanently Temporarily Permanently Total Unrestricted Restricted Restricted Total Unrestricted Restricted Restricted Net Assets

$ 77,574,529 $ 77,574,529 $ 72,222,306 $ 72,222,306 8,791,328 8,791,328 7,522,739 7,522,739 1,223,409 1,223,409 403,928 403,928 1,606,104 $ 1,729,392 $ 70,000 3,405,496 1,465,968 $ 1,403,955 $ 10,100 2,880,023 928,541 928,541 2,357,989 2,357,989 34,385,416 34,385,416 33,967,176 33,967,176 2,670,700 2,670,700 619,635 619,635 276,837 276,837 470,399 470,399

293,110 2,142,257 129,892,231 1,729,392 1,445,528 (1,445,528) 131,337,759 238,864

30,225,585 83,487,228 7,258,264 120,971,077

293,110 321,809 2,142,257 2,169,479 70,000 131,691,623 121,521,428 1,403,955 0 1,590,003 (1,590,003) 70,000 131,691,623 123,111,431 (186,048)

30,225,585 28,916,460 83,487,228 78,936,451 7,258,264 6,884,228 120,971,077 114,737,139

321,809 2,169,479 10,100 122,935,483 0 10,100 122,935,483

28,916,460 78,936,451 6,884,228 114,737,139

5,519,492 5,519,492 5,749,416 5,749,416 1,215,928 1,215,928 1,309,040 1,309,040 6,735,420 6,735,420 7,058,456 7,058,456 127,706,497 127,706,497 121,795,595 121,795,595 3,631,262 283,864 70,000 3,985,126 1,315,836 (186,048) 10,100 1,139,888 22,936,757 4,223,679 1,928,517 29,088,953 21,620,921 4,409,727 1,918,417 27,949,065 $ 26,568,019 $ 4,507,543 $ 1,998,517 $ 33,074,079 $ 22,936,757 $ 4,223,679 $ 1,928,517 $ 29,088,953

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BROOKLYN PUBLIC LIBRARY AND BROOKLYN PUBLIC LIBRARY FOUNDATION Consolidated Statement of Functional Expenses Year Ended June 30, 2006 (with comparative totals for June 30, 2005)

Salaries Payroll taxes Employee health and retirement benefits Total salaries and related expenses Professional fees and contract service payments Supplies Telephone and telecommunications Postage and shipping Occupancy Donated rent and utilities Contributed PSA Printing Advertising and public service messages Conferences, meetings, travel and subsistence Subscriptions and reference publications Books and public library materials Insurance Repairs and maintenance Staff development/training Interest, bank and lockbox fees Amortization and depreciation Scholarship fund and staff recognition Direct mail costs Miscellaneous Special events Bad debt expense Total expenses

See notes to consolidated financial statements

Program Services Supporting Services Total Management Total Central Neighborhood Special Program and Fund- Supporting Total Expenses Library Libraries Programs Services General Raising Services 2006 2005

$ 9,501,751 $ 33,029,897 $ 2,714,786 $ 45,246,434 $ 2,489,383 $ 616,591 $ 3,105,974 $ 48,352,408 $ 46,096,752 809,734 2,814,789 231,353 3,855,876 212,095 52,951 265,046 4,120,922 3,860,164 2,932,035 10,192,313 837,724 13,962,072 768,223 191,794 960,017 14,922,089 12,170,349 13,243,520 46,036,999 3,783,863 63,064,382 3,469,701 861,336 4,331,037 67,395,419 62,127,265 639,996 2,224,750 182,856 3,047,602 631,559 104,898 736,457 3,784,059 3,897,475 331,709 1,153,085 94,774 1,579,568 342,869 21,465 364,334 1,943,902 1,446,853 325,383 1,131,092 92,966 1,549,441 521,894 735 522,629 2,072,070 2,208,904 48,214 167,601 13,775 229,590 13,091 3,911 17,002 246,592 338,092 398,672 1,385,858 113,906 1,898,436 18,532 37 18,569 1,917,005 1,940,497 12,042,596 20,279,695 2,063,125 34,385,416 34,385,416 33,967,176 33,600 116,800 9,600 160,000 160,000 6,242 21,698 1,783 29,723 6,862 5,922 12,784 42,507 114,608 62,835 218,426 17,953 299,214 42,641 40,163 82,804 382,018 253,699 78,339 272,322 22,383 373,044 34,508 4,453 38,961 412,005 307,007 8,073 28,062 2,306 38,441 21,619 1,037 22,656 61,097 47,821 2,242,144 7,794,121 640,613 10,676,878 10,676,878 11,103,707 116,508 405,004 33,288 554,800 143,353 143,353 698,153 739,345 315,959 1,098,333 90,274 1,504,566 164,294 41,906 206,200 1,710,766 1,648,175 70,944 246,614 20,270 337,828 44,989 10,830 55,819 393,647 356,003 9,544 33,178 2,727 45,449 21,686 6,574 28,260 73,709 81,632 195,974 681,242 55,992 933,208 933,208 646,753 22,934 79,722 6,553 109,209 13,309 206 13,515 122,724 193,839 20,387 20,387 20,387 40,583 4,220 14,669 1,205 20,094 26 201 227 20,321 29,903 28,179 97,957 8,052 134,188 28,559 91,867 120,426 254,614 284,258 22,000 $ 30,225,585 $ 83,487,228 $ 7,258,264 $ 120,971,077 $ 5,519,492 $ 1,215,928 $ 6,735,420 $ 127,706,497 $ 121,795,595

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BROOKLYN PUBLIC LIBRARY AND BROOKLYN PUBLIC LIBRARY FOUNDATION Consolidated Statement of Functional Expenses Year Ended June 30, 2005

Program Services Supporting Services Total Management Total Central Neighborhood Special Program and Fund- Supporting Library Libraries Programs Services General Raising Services Total Salaries $ 8,997,683 $ 31,277,662 $ 2,570,767 $ 42,846,112 $ 2,616,841 $ 633,799 $ 3,250,640 $ 46,096,752 Payroll taxes 754,454 2,622,627 215,558 3,592,639 219,029 48,496 267,525 3,860,164 Employee health and retirement benefits 2,370,529 8,240,412 677,294 11,288,235 714,791 167,323 882,114 12,170,349 Total salaries and related expenses 12,122,666 42,140,701 3,463,619 57,726,986 3,550,661 849,618 4,400,279 62,127,265 Professional fees and contract service payments 643,779 2,237,897 183,937 3,065,613 689,616 142,246 831,862 3,897,475 Supplies 234,631 815,623 67,038 1,117,292 310,637 18,924 329,561 1,446,853 Telephone and telecommunications 352,936 1,226,874 100,839 1,680,649 519,866 8,389 528,255 2,208,904 Postage and shipping 65,341 227,137 18,669 311,147 10,679 16,266 26,945 338,092 Occupancy 402,265 1,398,350 114,933 1,915,548 24,917 32 24,949 1,940,497 Donated rent and utilities 11,954,766 19,974,379 2,038,031 33,967,176 33,967,176 Printing 11,628 40,423 3,322 55,373 22,955 36,280 59,235 114,608 Advertising and public service messages 45,960 159,764 13,131 218,855 17,856 16,988 34,844 253,699 Conferences, meetings, travel and subsistence 44,829 155,833 12,808 213,470 89,443 4,094 93,537 307,007 Subscriptions and reference publications 6,020 20,927 1,720 28,667 18,079 1,075 19,154 47,821 Books and public library materials 2,331,779 8,105,706 666,222 11,103,707 11,103,707 Insurance 124,725 433,569 35,636 593,930 145,415 145,415 739,345 Repairs and maintenance 313,079 1,088,322 89,451 1,490,852 147,705 9,618 157,323 1,648,175 Staff development/training 54,509 189,484 15,574 259,567 88,117 8,319 96,436 356,003 Interest, bank and lockbox fees 5,249 18,245 1,500 24,994 35,153 21,485 56,638 81,632 Amortization and depreciation 135,818 472,130 38,805 646,753 646,753 Scholarship fund and staff recognition 35,437 123,184 10,125 168,746 25,093 25,093 193,839 Direct mail costs 40,583 40,583 40,583 Miscellaneous 2,273 7,894 648 10,815 19,049 39 19,088 29,903 Special events 28,770 100,009 8,220 136,999 34,175 113,084 147,259 284,258 Bad debt expense 22,000 22,000 22,000 Total expenses $ 28,916,460 $ 78,936,451 $ 6,884,228 $ 114,737,139 $ 5,749,416 $ 1,309,040 $ 7,058,456 $ 121,795,595

See notes to consolidated financial statements

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BROOKLYN PUBLIC LIBRARY AND BROOKLYN PUBLIC LIBRARY FOUNDATION Consolidated Statements of Cash Flows

Cash flows from operating activities: Change in net assets Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation and amortization Donated investments Unrealized losses (gains) on investments Net realized gains on sales of investments Contributions to permanently restricted net assets Bad debt expense Deferred rent expense Changes in: Receivables Other assets Accounts payable and accrued expenses and advances Accrued wages and related liabilities Net cash provided by operating activities Cash flows from investing activities: Proceeds from sales of investments Purchases of investments Purchases of property and equipment Net cash used in investing activities Cash flows from financing activities: Contributions to permanently restricted net assets Net change in cash and cash equivalents Cash and cash equivalents - July 1 Cash and cash equivalents - June 30

See notes to consolidated financial statements

Year Ended June 30, 2006 2005 $ 3,985,126 $ 1,139,888 933,208 646,753 (1,434) (70,110) 341,210 (479,141) (57,211) (70,000) (10,100) 22,000 31,694 77,453 (1,185,769) 3,332,909 (25,174) (197,699) 1,009,088 (1,281,460) 692,560 992,163 4,821,482 5,004,472 96,410,694 53,560,797 (97,487,479) (53,385,971) (3,084,890) (3,943,432) (4,161,675) (3,768,606) 70,000 10,100 729,807 1,245,966 1,713,605 467,639 $ 2,443,412 $ 1,713,605

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BROOKLYN PUBLIC LIBRARY AND BROOKLYN PUBLIC LIBRARY FOUNDATION Notes to Consolidated Financial Statements June 30, 2006 and 2005

N OTE A - O RGANIZATION AND S UMMARY OF S IGNIFICANT A CCOUNTING P OLICIES [1] Organization: The Brooklyn Public Library was founded in 1897 and serv es more than 2.4 million Brooklynites with a Central Library, a Business Library and 58 branch libraries. The Brooklyn Public Library receives significant support through governmental appropriations (primarily New York City and New York State), and its continuing operations are dependent upon such gov ernment support. The consolidated financial statements of the Brooklyn Public Library include all of its assets, liabilities and net assets, as well as those of its related organization, the Brooklyn Public Library Foundation (the Foundation"). The Foundation, which operates under the direction of a separate Board of Trustees, exists " solely to raise funds for the Brooklyn Public Library's programs. The Brooklyn Public Library and the Foundation (referred to herein as the "Library") are exempt from federal income taxes under Section 501(c)(3) of the U.S. Internal Revenue Code (the "Code"), and from state and local taxes under comparable laws and have been classified as organizations that are not private foundations as defined in Sections 509(a)(1) and (3) of the Code. [2] Financial reporting: (a) Basis of accounting: The accompanying consolidated financial statements of the Library hav e been prepared using the accrual basis of accounting and conform to accounting principles generally accepted in the United States of America, as applicable to not-for-profit organizations. (b) Cash and cash equivalents: The Library considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. Included in cash and cash equivalents at June 30, 2006 and 2005 is restricted cash for $101,000. These funds are restricted for disbursement to entities involved in the NetWorking.NYC program. At June 30, 2006 and 2005, substantially all cash and cash equivalents were on deposit with one financial institution. (c) Investments: Investments in marketable securities, debt securities and mutual funds are recorded at their fair values, with investment income and realized and unrealized gains and losses reported in the accompanying consolidated statements of activities as unrestricted income (unless there are restrictions that hav e been imposed by donors or grantors). Donated securities are recorded at their fair values on the dates of the gifts. (d) Property and equipment: Property and equipment are stated at their costs at the dates of acquisition or at their fair values at the dates of donation. Depreciation is provided using the straight-line method over the estimated useful lives of the assets, ranging from 5 to 40 years. Amortization of leasehold improv ements is provided on the straight-line basis over the estimated useful lives of the improvements or the remaining life of the lease, whichever is shorter.

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BROOKLYN PUBLIC LIBRARY AND BROOKLYN PUBLIC LIBRARY FOUNDATION Notes to Consolidated Financial Statements June 30, 2006 and 2005

N OTE A - O RGANIZATION AND S UMMARY OF S IGNIFICANT A CCOUNTING P OLICIES ( CONTINUED ) [2] Financial reporting: (continued) (d) Property and equipment: (continued) Effective July 1, 2004, property and equipment purchased with funds provided to the Library through appropriations from New York City are capitalized, as the Library retains an ultimate ownership interest in such items and their ultimate disposition would benefit the Library. (e) Collections: The Library has collections of non-circulating library materials, including books, periodicals and other items. These collections are maintained by the Library under curatorial care and held for research, education and public exhibition in furtherance of public service. Proceeds from the sales of collections are used to acquire other items for collections. The cost of collections purchased by the Library is expensed in the year of purchase. The value of the Library's collections, for financial statement purposes, cannot be determined. The costs of circulating books and other library materials are not recorded as collections, but are recorded as an expense in the year purchased because the useful lives of such items are relatively short. (f) Donated services: A number of volunteers, including the members of the Board of Trustees, hav e made significant contributions of time to the Library's policy-making, program and support functions. The v alue of the contributed time does not meet the criteria for recognition of contributed services under generally accepted accounting principles and, accordingly, is not reflected in the accompanying consolidated financial statements. (g) Contributed facilities: The Library occupies the majority of its branch libraries, as well as the Central Library, under rent -free arrangements with New York City. The estimated value of the use of those premises (including utility costs, which are paid by the City) is reported as contributed facilities support, offset by an equal amount of rental expense, in the accompanying consolidated financial statements. The Library estimates the value of those contributed facilities based upon market rental rates for properties in the same locations as branch libraries and discounts such rates for the limited-use nature of the branch library facilities. (h) Net assets: The net assets of the Library and the changes therein are classified and reported as follows: (i) Unrestricted: Unrestricted net assets represent those resources that are not subject to donor restrictions. The Library's board-designated funds represent the portion of expendable funds that is available for support of the Library's operations, at the discretion of the Library's Board. At June 30, 2006 and 2005, the Board has designated amounts for the subsequent fiscal year's operations, Plaza Auditorium Project and for library material acquisitions.

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BROOKLYN PUBLIC LIBRARY AND BROOKLYN PUBLIC LIBRARY FOUNDATION Notes to Consolidated Financial Statements June 30, 2006 and 2005

N OTE A - O RGANIZATION AND S UMMARY OF S IGNIFICANT A CCOUNTING P OLICIES ( CONTINUED ) [2] Financial reporting: (continued) (h) Net assets: (continued) (ii) Temporarily restricted: Temporarily restricted net assets represent those resources that hav e been restricted by donors and grantors for specified program-related activities or for use in specific time periods. Net assets released from restrictions represent the satisfaction of the restricted purposes specified by the grantors. (iii) Permanently restricted: Permanently restricted net assets represent those resources the use of which has been permanently restricted by donors or grantors. The income from permanently restricted net assets is unrestricted. (i) Revenue recognition: Contributions to the Library are recorded as revenue at the earlier of the receipt of an unconditional pledge or the receipt of cash or other assets. Contributions are considered av ailable for unrestricted use, unless they are restricted by the donors on either a temporary or permanent basis. (j) Functional allocation of expenses: The costs of providing program and supporting serv ices have been reported on a functional basis in the accompanying consolidated statements of activities. Accordingly, certain costs hav e been allocated among the program and supporting services in reasonable ratios determined by management, as reported in the accompanying consolidated statements of functional expenses. (k) Use of estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, as well as the disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

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BROOKLYN PUBLIC LIBRARY AND BROOKLYN PUBLIC LIBRARY FOUNDATION Notes to Consolidated Financial Statements June 30, 2006 and 2005

N OTE B - R ECEIVABLES At each fiscal year-end, the Library's receivables consisted of the following: June 30, 2006 2005 New York State appropriations and grants $ 4,454,442 $ 3,725,238 New York City appropriations and grants 1,949,214 1,037,017 Contributions receivable 1,888,537 2,296,012 Purchase discount reimbursement contributions receivable 800,740 902,349 Other receivables 187,355 133,903 $ 9,280,288 $ 8,094,519 Subsequent to each year-end, substantially all New York State and New York City appropriations and grants receivable were collected. Other receivables are expected to be collected within one year, except for certain contributions receivable which are expected to be collected in one to three years. Based on prior experience, management expects to collect the receivables in full, and accordingly, has not established an allowance for uncollectible amounts for fiscal-years 2006 and 2005. Purchase discount reimbursement contributions arise from an agreement between the Library and the Universal Service Fund ("USF"), a not-for-profit organization, whereby USF grants to the Library an amount equal to an agreed-upon percentage of expenditures made by the Library in connection with certain public access/information technology initiatives (75% for telecommunications, Internet access and internal connections in fiscal-year 2006 and 85% for telecommunications, Internet access and internal connections in fiscal-year 2005). Items and services are purchased by the Library from vendors specified in the agreement and, consequently, a contribution at the specified level is made by USF to the Library. Total expenditures related to the agreement were approximately $1,238,000 and $2,779,000 for fiscal-years 2006 and 2005, respectively.

N OTE C - I NVESTMENTS At each fiscal year-end, the Library's investments consisted of the following, at market v alue: June 30, 2006 2005 $ 12,322,070 $ 10,628,446 7,276,598 7,456,450 6,979,098 6,866,834 $ 26,577,766 $ 24,951,730

Marketable equity securities Corporate and U.S. government debt obligations Mutual funds-bond fund

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