...................................................................................................................... MONTANA BUSINESS ASSISTANCE CONNECTION, INC. Audited Financial Statements For Years Ended December 31, 2007 and 2006 ...................................................................................................................... Prepared by Wayne E. Hintz, PSC Certified Public Accountant MONTANA BUSINESS ASSISTANCE CONNECTION, INC. Helena, Montana TABLE OF CONTENTS Board of Directors .................................................................................................................Page 1 Independent Auditor's Report ...............................................................................................Page 2 Statement of Financial Position ............................................................................................Page 3 Statement of Activities and Changes in Net Assets ..............................................................Page 4 Statement of Cash Flows ......................................................................................................Page 5 Notes to Financial Statements ...............................................................................................Page 6-10 Supplemental Information .............................................................................................. ...
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MONTANA BUSINESS
ASSISTANCE CONNECTION, INC.
Audited Financial Statements
For Years Ended December 31, 2007 and 2006
......................................................................................................................
Prepared by
Wayne E. Hintz, PSC
Certified Public Accountant
MONTANA BUSINESS ASSISTANCE CONNECTION, INC.
Helena, Montana
TABLE OF CONTENTS
Board of Directors .................................................................................................................Page 1
Independent Auditor's Report ...............................................................................................Page 2
Statement of Financial Position ............................................................................................Page 3
Statement of Activities and Changes in Net Assets ..............................................................Page 4
Statement of Cash Flows ......................................................................................................Page 5
Notes to Financial Statements ...............................................................................................Page 6-10
Supplemental Information ....................................................................................................Page 11
Statement of Activities – Budget and Actual – 2007 ............................................................Page 12
Statement of Activities – Budget and Actual – 2006 ............................................................Page 13
Statement of Expense Allocations ........................................................................................Page 14-15
Report On Compliance And On Internal Control
Over Financial Reporting Based On An Audit Of
Financial Statements Performed In Accordance
With Government Auditing Standards ..................................................................................Page 16
Report on Prior Years Audit Comments................................................................................Page 17
MONTANA BUSINESS ASSISTANCE CONNECTION, INC.
Helena, Montana
BOARD OF DIRECTORS
January 1, 2007 - December 31, 2007
President Bob Fusie
Vic Prsident KathyErnst
Treasurer Tony Murnion
Secretary Mike Mundt ast President Eric Shindler
Meagher County Commissioner Director Jame Doggett
Broadwater County Commissioner Director Jim Hohn
City of Helena Commissioner Alan Puera
Lewis & Clark County Commissioner Mike Murray of Townsend Mary Alice Upton East Helena Anthony Strainer of Tim Burton
Lewis & Clark County Ron Alles
Elected Members:
Sheila Hogan Pat Schlauch
Michelle Steele Howard Skjervem
Lisa Cordingly John Grant
C. W. “Skip” Hatveldt Mark Huber
Hal Jacobson Steve Mandeville
Patrick E. Melby Bruce Messinger
Ron Merc Jim Maierl
Terry Myhre Thomas J.Trebon, Ph.D. ick Hays Gary Be Spalinger Linda Kindrick
Mignon Waterman Dave Gallik
Jim Cotril im Solheim
Daniel Bingham Andy Fitzghugh im Stipch Mike Grove
Montana Business Assistance Connection, Inc. - 1
INDEPENDENT AUDITOR'S REPORT
Board of Directors
Montana Business Assistance Connection, Inc.
Helena, Montana 59601
I have audited the accompanying financial statements of Montana Business Assistance Connection, Inc.
(a nonprofit organization) as of December 31, 2007 and 2006, as listed in the table of contents. These
financial statements are the responsibility of Montana Business Assistance Connection, Inc.’s
management. My responsibility is to express an opinion on these financial statements based on my
audit.
I conducted my audit in accordance with auditing standards generally accepted in the United States and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that I 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 presentation. I believe that
my audit provides a reasonable basis for my opinion.
In my opinion, the financial statements referred to above, present fairly, in all material respects, the
financial position of Montana Business Assistance Connection, Inc. as of December 31, 2007 and 2006,
and the changes in net assets and cash flows for the years then ended in conformity with generally
accepted accounting principles accepted in the United States of America.
In accordance with Government Auditing Standards, I have also issued my report dated February 9,
2008 on my consideration of Montana Business Assistance Connection, Inc.’s internal control over
financial reporting and my tests of its compliance with certain provisions of laws, regulations, contracts,
and grant agreements and other matters. The purpose of that report is to describe the scope of my testing
of internal control over financial reporting and compliance and the results of that testing and not to
provide an opinion on the internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards and should be
considered is assessing the results of my audit.
Wayne E. Hintz, PSC, CPA
Helena, Montana
February 9, 2008
Montana Business Assistance Connection, Inc. - 2
MONTANA BUSINESS ASSISTANCE CONNECTION, INC.
Helena, Montana
STATEMENT OF FINANCIAL POSITION
December 31, 2007 and 2006
2007 2006
ASSETS
CURRENT ASSETS:
Cash and Cash Equivalents $ 1 ,132,822 $ 788,302
Funded Loan Loss Reserve 5 8,390 49,839
Accounts Receivable 7 1,126 47,247
Accrued Interest Receivable 5 3,003 44,375
Prepaid Assets 4,255 -
Current Portion Loans Receivable 1 ,051,413 771,806
Total Current Assets 2 ,371,008 1,701,569
PROPERTY, PLANT AND EQUIPMENT:
Land 67 ,500 67,500
Building 443 ,152 443,152
Other 32,200 8,381
542,852 519,033
Accumulated Depreciation (191,515) (176,939)
351 ,337 342,094
OTHER ASSETS:
Loans Receivable (Net of Current Portion above) 4 ,335,580 3,830,834
Loan Loss Reserve (221,805) (165,975)
4 ,113,775 3,664,859
TOTAL ASSETS $ 6,836,120 $ 5,708,522
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES:
Accounts Payable $ 2 6,369 $ 30,689
Accrued Expenses 8,802 10,918
Current Portion-Loans Payable 193 ,266 96,765
228 ,437 138,372
LONG TERM LIABILITIES:
Deferred Revenue - DEQ Buydown 929 1,360
Loans Payable 3 ,770,568 3,297,952
TOTAL LIABILITIES 3,999,934 3,437,684
NET ASSETS
Temporarily Restricted 179,785 182,035
Unrestricted 2,656,401 2,088,803
TOTAL NET ASSETS 2,836,186 2,270,838
TOTAL LIABILITIES AND NET ASSETS $ 6,836,120$ 5,708,522
Montana Business Assistance Connection, Inc. - 3
MONTANA BUSINESS ASSISTANCE CONNECTION, INC.
Helena, Montana
STATEMENT OF ACTIVITIES
AND CHANGES IN NET ASSETS
For The Years Ended December 31, 2007 and 2006
2007 2006
PUBLIC SUPPORT AND REVENUES RECEIVED
Grant Revenue $ 579,551 $ 82,747
Membership Dues 55,833 29,050
Rent & Utility Income75,31061,451
Contributions 3,972 3,750
In-Kind Contributions 97,200 79,506
Economic Development Services/Administration 367,030 358,306
Loan Origination fees and Closing Costs 40,851 38,158
Interest Income 431,263 344,263
Miscellaneous Income - 1,101
Total Revenue 1,651,010 998,332
EXPENSES:
Program Expense
Micro Business Development Corporation 102,071 147,848
Small Business Deve 101,808 104,110
Helena Revolving Loan Fund 67,940 53,211
Broadwater Revolving Loan Fund36,23546,134
Lewis & Clark Revolving Loan Fund 18,512 33,727
USDA Intermediary & Revolving Loan Fund #118,88517,779n & Loan Fund #2 57,186 45,247
Wildfire 2,07915,465
DEQ Revolving Loan Fund 19,330 13,288
Board of Investments39,85738,274
Bonvestments II 9,917 -
MBAC, Inc. Revolving Loan Fund 55,214 50,582
EDA Revolving Loan Fund59,241
Building 51,799 44,560
Economic Development Services/Administration 445,588 401,703
TOTAL EXPENDITURES 1,085,662 1,011,928
CHANGE IN NET ASSETS 565,348 (13,596)
Net Assets - Beginning of Year 2,270,838 2,284,434
Net Assets - End of Year $ 2,836,186 $ 2,270,838
Montana Business Assistance Connection, Inc. - 4
MONTANA BUS