REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT
Members of the Executive Board And Advisory Council
The Renaissance Society of America
I have audited the statements of financial position of The Renaissance Society of America (a New York nonprofit organization) as of December 31, 2003 and 2002, and the related statements of activity and cash flows for the years then ended. These financial statements are the responsibility of the Society's management. My responsibility is to express an opinion on these financial statements based on my audit.
I conducted my audits in accordance with generally accepted auditing standards. 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 also 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. 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 The Renaissance Society of America as of December 31, 2003 and 2002, and the results of its activity and cash flows for the years then ended, in conformity with generally accepted accounting principles.
THE RENAISSANCE SOCIETY OF AMERICA STATEMENTS OF FINANCIAL POSITION FOR THE YEARS ENDED DECEMBER 31, 2003 2002 ASSETS Cash $ 152,319 $ 20,705 Deferred annual meeting costs 10,958 9,334 Prepaid salaries and benefits 29,810 31,000 Investment securities 1,563,184 1,373,288 Property and equipment, net 5,628 8,965 Total Assets 1,761,899 1,443,292 LIABILITIES Accounts payable and accrued expenses 6,000 5,900 Deferred memberships 114,907 65,150 Deferred subscriptions 60,740 76,788 Deferred conference registration 122,575 73,930 Total Liabilities 304,222 221,768 NET ASSETS Unrestricted 1,412,842 1,176,709 Temporarily restricted - - Permanently restricted 44,815 44,815 Total Net Assets 1,457,657 1,221,524 Total Liabilities and Net Assets $ 1,761,879 $ 1,443,292 See Notes to Financial Statements THE RENAISSANCE SOCIETY OF AMERICA STATEMENTS OF ACTIVITIES FOR THE YEARS ENDED DECEMBER 31, 2003 2002 UNRESTRICTED NET ASSETS Support: Memberships and subscriptions $277,366 $231,715 Use of donated facilities 36,000 36,000 Contributions 23,141 10,615 Grants - 5,500 Investment return 230,093 (290,843) Total Support 566,600 (7,013) Revenue: Annual Meetings 92,393 88,260 Advertising 12,950 9,200 Air Freight 460 390 Publication 19,191 15,781 Mailing list rental 1,517 2,133 Cranz microfilm corpus 9,100 - Other 910 129 Total Revenue 136,521 115,893 Net assets released from restrictions - - Total Support and Revenue 703,121 108,880 Expenses: Program Services Renaissance Quarterly 120,400 132,691 Newsletter publication 5,046 9,567 Publication subsidies 4,500 4,000 Renaissance text series 8,345 3,335 Cranz microfilm corpus 7,832 - Grants 22,000 25,000 Iter 24,000 39,000 Web page 15,332 6,156 Other program services 50,666 82,575 Total Program Services 258,121 302,324 Supporting services 208,867 291,249 Total Expenses $466,988 $593,573 Increase (Decrease) in Unrestricted Net Assets $236,133 $(484,693) TEMPORARILY RESTRICTED NET ASSETS (Decrease) Increase in Temporarily Restricted Net Asset - - PERMANENTLY RESTRICTED NET ASSETS Endowment investment return 1,600 2,200 Endowment expenses: William Nelson Prize (600) (600) Bennett Memorial Prize (1,000) (1,600) Total endowment expense (1,600) (2,200) Increase in Permanently Restricted Net Assets - - TOTAL INCREASE IN NET ASSETS 236,133 (484,693) NET ASSETS, beginning of year 1,221,524 1,706,217 NET ASSETS, end of year $1,457,657 $1,221,524 See Notes to Financial Statements THE RENAISSANCE SOCIETY OF AMERICA STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2003 2002 CASH FLOW FROM OPERATING ACTIVITIES Increase (decrease) in net assets $236,133 $(484,693) Adjustment to reconcile increase in net assets to net cash used by operations Depreciation 3,337 4,476 (Gain) loss on sales of investments 44,252 46,550 Unrealized (gain) loss on investment securities (236,891) 280,394 Decrease (increase) in operating assets: Prepaid expenses 1,190 (31,000) Deposits - 4,329 Deferred annual meeting costs (1,624) 8,122 Increase (decrease) in operating liabilities: Accounts payable and accrued expenses 100 (7,204) Deferred memberships and subscriptions 33,709 32,999 Deferred conference registration 48,645 (1,988) NET CASH PROVIDED BY OPERATING ACTIVITIES 128,851 (148,015) CASH FLOWS FROM INVESTING ACTIVITIES Acquisitions of property and equipment - (2,100) Purchase of investment securities (546,465) (832,617) Proceeds from redemptions and sales of investments 549,228 938,817 NET CASH USED BY INVESTING ACTIVITIES 2,763 104,100 INCREASE (DECREASE) IN CASH 131,614 (43,915) CASH, beginning of year 20,705 64,620 CASH, end of year $152,319 $20,705 See Notes to Financial Statements
THE RENAISSANCE SOCIETY OF AMERICA NOTES TO FINANCIAL STATEMENTS
NOTE A--NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNT POLICIES
Nature of Activities
The Renaissance Society of America is a not-for-profit organization incorporated under the laws of New York State. …