Report of Independent Certified Public Accountants

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Members of the Executive Board and Advisory Council The Renaissance Society of America

We have audited the statements of financial position of The Renaissance Society of America (a New York nonprofit organization) as of December 31, 1998 and 1997, 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. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing standards. 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 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. We believe that our audits provide 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 The Renaissance Society of America as of December 31, 1998 and 1997, and the results of its activity and cash flows for the years then ended, in conformity with generally accepted accounting principles.

New York, New York

February 24, 1999

                    THE RENAISSANCE SOCIETY OF AMERICA
                     STATEMENTS OF FINANCIAL POSITION
                     FOR THE YEARS ENDED DECEMBER 31,
                                     1998       1997
ASSETS
  Cash                             $  66,184  $ 126,522
  Accounts receivable                    835      1,365
  Prepaid expenses                     2,862      3,010
  Prepaid electronic bibliography      8,000        -0-
  Investment securities            1,849,426  1,499,909
  Deposits                             1,124      5,304
  Property and equipment, net         12,535     14,383
     Total Assets                  1,940,966  1,650,493
LIABILITIES
  Accounts payable and accrued
     expenses                          5,050      9,250
  Deferred memberships                29,000     61,528
  Deferred subscriptions              73,291     55,329
  Deferred revenue                    16,100      7,348
     Total Liabilities               123,441    133,455
NET ASSETS
  Unrestricted                     1,772,710  1,437,223
  Temporarily restricted                 -0-     35,000
  Permanently restricted              44,815     44,815
     Total Net Assets              1,817,525  1,517,038
     Total Liabilities and
       Net Assets                 $1,940,966 $1,650,493
                    THE RENAISSANCE SOCIETY OF AMERICA
                          STATEMENTS OF ACTIVITY
                     FOR THE YEARS ENDED DECEMBER 31.
                                        1998      1997
UNRESTRICTED NET ASSETS
 Support:
   Iter subscriptions                 $   4,155 $     -0-
   Memberships                          192,945   193,496
   Use of donated facilities             18,000    18,000
   Contributions                         23,635    35,360
   Investment return                    350,239   237,453
    Total Support                       588,974   484,309
 Revenue:
   Annual Meetings                       58,303     1,905
   Advertising                            9,350    10,863
   Air Freight                            2,775     2,100
   Publication                            7,663     8,820
   Mailing list rental                    4,359     3,669
   Cranz microfilm corpus                 1,982    17,125
   Other                                  4,808     3,236
    Total Revenue                        89,240    47,718
Net assets released from restrictions   156,240    65,313
   Total Support and Revenue            834,454   597,340
Expenses:
 Program services
   Renaissance Quarterly                 92,973    61,358
   Newsletter publication                 7,588    11,055
   Publication subsidies                  2,582     8,289
   Cranz microfilm corpus                 1,482    10,449
   Renaissance education                144,275    11,056
   On line bibliography                   2,846    73,194
   Web page                               1,674       225
   Other program services                69,526     9,585
    Total Program Services              322,946   185,211
 Supporting services                    176,021   180,573
   Total Expenses                     $ 498,967 $ 365,784
Increase in Unrestricted Net Assets   $ 335,487  $ 231,556
TEMPORARILY RESTRICTED NET ASSETS
  Grant support                         121,240    100,313
  Net assets released from donor
    restrictions                      (156,240)   (65,313)
  (Decrease) Increase in Temporarily
    Restricted Net Asset               (35,000)     35,000
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                              -0-        -0-
TOTAL INCREASE IN NET ASSETS            300,487    266,556
NET ASSETS, beginning of year         1,517,038  1,250,482
NET ASSETS, end of year              $1,817,525 $1,517,038
                    THE RENAISSANCE SOCIETY OF AMERICA
                         STATEMENTS OF CASH FLOWS
                     FOR THE YEARS ENDED DECEMBER 31,
                                       1998      1997
CASH FLOW FROM OPERATING ACTIVITIES
 Increase in net assets              $ 300,487 $ 266,556
 Adjustments to reconcile increase
 in net assets to net cash used by
 operations
  Depreciation                           5,892     6,560
  Decrease (increase) in operating
  assets:
   Accounts receivable                     530     (398)
   Prepaid electronic bibliograph      (8,000)     -
   Prepaid expenses                        148   (1,366)
   Deposits                              4,180    17,663
 Increase (decrease) in operating
 liabilities:
   Accounts payable and accrued
    expenses                           (4,200)   (5,020)
   Deferred memberships and
    subscriptions                     (14,566)  (13,068)
   Deferred revenue                       -        7,348
   Deposits                              8,752   (6,815)
 NET CASH PROVIDED BY OPERATING        293,223   271,460
  ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
 Acquisitions of property and
  equipment                            (4,043)   (5,429)
 Purchase of investment securities   (686,862) (721,218)
 Proceeds from redemptions and
  investments                          337,344   453,344
  NET CASH USED BY INVESTING
   ACTIVITIES                        (353,561) (273,303)
  (DECREASE) INCREASE IN CASH         (60,338)   (1,843)
  CASH, beginning of year              126,522   128,365
  CASH, end of year                   $ 66,184 $ 126,522
                    THE RENAISSANCE SOCIETY OF AMERICA
                     SCHEDULES OF SUPPORTING SERVICES
                     FOR THE YEARS ENDED DECEMBER 31,
                                    1998      1997
Supporting services:
  Salaries                         $ 42,543  $ 41,192
  Payroll taxes and benefits         11,468    10,856
  Deferred compensation               6,000     6,000
  Advertising                           -0-       197
  Bank charges                          216       316
  Bookkeeping and other
    clerical services                 3,276     4,187
  Credit card fees                    3,719     1,959
  Depreciation                        5,892     6,560
  Dues and subscriptions              2,080     2,660
  Electronic bibliography             8,000     8,000
  Honoria                            18,000    18,500
  Insurance                           2,140     2,602
  Investment management fees         15,665    12,860
  Legal                                 750       500
  Accounting                          7,600     9,250
  Miscellaneous                       2,225     2,917
  Postage                             8,028    10,321
  Stationary, printing and office
    supplies                          2,916     3,621
  Telephone                           2,835     4,044
  Travel                              9,802     9,470
  Office rent                        18,000    18,000
  Board expenses                      4,866     6,561
                                  $ 176,021 $ 180,573