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HomeMy Public PortalAbout2011JCCCAudit JEFFERSON CITY AREA CHAMBER OF COMMERCE AND SUBSIDIARIES INDEPENDENT AUDITORS’ REPORT For The Years Ended December 31, 2011 and 2010 TABLE OF CONTENTS PAGE INDEPENDENT AUDITORS' REPORT 1 - 2 FINANCIAL STATEMENTS: Consolidated Statements of Financial Position 3 - 4 Consolidated Statements of Activities 5 Consolidated Statements of Cash Flows 6 - 7 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 8 - 13 ACCOMPANYING SCHEDULES: Consolidating Statement of Financial Position (2011) 14 - 15 Consolidating Statement of Activities (2011) 16 - 17 Consolidating Statement of Cash Flows (2011) 18 Consolidating Statement of Financial Position (2010) 19 - 20 Consolidating Statement of Activities (2010) 21 - 22 Consolidating Statement of Cash Flows (2010) 23 Jefferson City Area Chamber of Commerce: Statements of Financial Position (2011 and 2010) 24 Statements of Activities (2011 and 2010) 25 - 26 JC Chamber 21st Century Land Investment, LLC: Statements of Financial Position (2011 and 2010) 27 Statements of Activities (2011 and 2010) 28 JC Chamber Properties, LLC: Statements of Financial Position (2011 and 2010) 29 Statements of Activities (2011 and 2010) 30 INDEPENDENT AUDITORS' REPORT To the Board of Directors of Jefferson City Area Chamber of Commerce and Subsidiaries Jefferson City, Missouri: We have audited the accompanying consolidated statements of financial position of the Jefferson City Area Chamber of Commerce and Subsidiaries (a nonprofit organization) as of December 31, 2011 and 2010, and the related consolidated statements of activities and cash flows for the years then ended. These consolidated financial statements are the responsibility of the Chamber's management. Our responsibility is to express an opinion on these consolidated 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 consolidated 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 referred to above present fairly, in all material respects, the financial position of the Jefferson City Area Chamber of Commerce and Subsidiaries as of December 31, 2011 and 2010, and its changes in net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. 1 3702 West Truman Boulevard, Suite 213 • Jefferson City, MO 65109 573-893-7700 • Fax 573-893-6649 Our audits were made for the purpose of forming an opinion on the consolidated financial statements taken as a whole. The consolidating information is presented for purposes of additional analysis of the consolidated financial statements rather than to present the financial position, results of operations, and cash flows of the individual companies. Such information has been subjected to the auditing procedures applied in the audits of the consolidated financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the consolidated financial statements taken as a whole. GRAVES AND ASSOCIATES, CPAs, LLC Jefferson City, Missouri March 29, 2012 2 JEFFERSON CITY AREA CHAMBER OF COMMERCE AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL POSITION December 31, 2011 and 2010 2011 2010 ASSETS CURRENT ASSETS Cash and Cash Equivalents 1,052,722$ 1,503,624$ Accounts Receivable, net of allowance for doubtful accounts of $3,691 and $1,544, respectively 29,389 7,750 Accrued Interest 241 445 Prepaid Expenses 7,247 8,629 Total Current Assets 1,089,599 1,520,448 PROPERTY, BUILDING, AND EQUIPMENT Land 15,000 15,000 Building 276,262 276,262 Building and Land Improvements 454,497 455,699 Furniture and Fixtures 159,288 144,662 Less: Accumulated Depreciation (509,639) (482,231) Net Property, Building, and Equipment 395,408 409,392 OTHER ASSETS Investment in Land 3,394,573 3,394,573 Less: Accumulated Depletion (5,232) (5,232) Investment in Speculative Building 1,074,143 1,074,143 Note Receivable - 1,937 Total Other Assets 4,463,484 4,465,421 TOTAL ASSETS 5,948,492$ 6,395,262$ See accompanying Notes to the Consolidated Financial Statements. 3 JEFFERSON CITY AREA CHAMBER OF COMMERCE AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL POSITION December 31, 2011 and 2010 2011 2010 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts Payable and Accrued Expenses 37,163$ 41,573$ Deferred Membership Dues 103,137 110,357 Unapplied Credits 11,309 19,847 Deferred Revenue 48,858 47,210 Total Current Liabilities 200,468 218,987 LONG-TERM LIABILITIES Note Payable - Building 1,000,000 1,000,000 Total Long-Term Liabilities 1,000,000 1,000,000 TOTAL LIABILITIES 1,200,468 1,218,988 NET ASSETS Unrestricted 4,748,024 5,176,274 Total Net Assets 4,748,024 5,176,274 TOTAL LIABILITIES AND NET ASSETS 5,948,492$ 6,395,262$ See accompanying Notes to the Consolidated Financial Statements. 4 JEFFERSON CITY AREA CHAMBER OF COMMERCE AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF ACTIVITIES For The Years Ended December 31, 2011 and 2010 2011 2010 REVENUE Membership Dues 442,479$ 454,760$ Economic Development Support 300,000 300,000 Committees 8,883 12,242 Special Events 222,649 229,346 Leadership Jefferson City 28,891 28,312 Government Relations 15,725 17,475 Publications and Marketing 23,813 16,143 Management Fees 900 900 Other Income 6,498 35,055 Civic Progress 27,235 26,000 Partners in Education 19,340 18,300 Rental Income 6,000 4,800 Royalty Income 35 4,360 Investment Income 5,507 6,244 Total Revenue 1,107,956 1,153,937 EXPENSES Program Expenses Membership Affairs 11,601 10,735 Economic Development 167,549 268,419 Committees 8,936 12,628 Special Events 149,050 149,671 Leadership Jefferson City 13,701 13,535 Government Relations 9,642 16,113 Publications and Marketing 7,394 9,234 Civic Progress 50,053 35,046 Partners in Education 6,771 2,981 Community Development 4,760 2,815 Total Program Expenses 429,457 521,177 General and Administrative 1,106,033 1,216,898 Total Expenses 1,535,490 1,738,075 Change in Net Assets Before Other Income (427,534) (584,137) Other Income (Expense) Gain (Loss) on Sale/Disposal of Assets (714) 1,573,969 Total Other Income (Expense) (714) 1,573,969 Change in Net Assets (428,248) 989,832 Net Assets, Beginning 5,176,274 4,186,442 Net Assets. Ending 4,748,024$ 5,176,274$ See accompanying Notes to the Consolidated Financial Statements. 5 JEFFERSON CITY AREA CHAMBER OF COMMERCE AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2011 and 2010 2011 2010 CASH FLOWS FROM OPERATING ACTIVITIES Change in Net Assets (428,249)$ 989,831$ Adjustments to Reconcile Change in Net Assets Net Cash Provided by Operating Activities Depreciation 31,362 33,531 Depletion - 218 (Gain) Loss on Asset Sale 714 (1,573,969) (Increase) Decrease in: Accounts Receivable, (Net) (21,639) 109 Other Receivables 204 (6) Note Receivable 1,937 1,828 Prepaid Expenses 1,382 11,658 Increase (Decrease) in: Accounts Payable (4,410) 10,943 Deferred Membership Dues (7,220) (4,671) Unapplied Credits (8,538) (25,656) Deferred Revenues 1,648 (7,934) Current Portion Note Payable - Land - (616,307) Total Adjustments (4,558) (2,170,256) Net Cash Provided (Used) by Operating Activities (432,807) (1,180,425) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Assets (18,096) (9,741) Proceeds From Sale of Land - 1,632,629 Net Cash Provided (Used) In Investing Activities (18,096) 1,622,888 CASH FLOWS FROM FINANCING ACTIVITIES Payments on Note Payable - Building - (74,143) Net Cash Provided (Used) by Financing Activities - (74,143) Net Increase (Decrease) in Cash and Cash Equivalents (450,903) 368,320 Cash and Cash Equivalents, Beginning 1,503,624 1,135,304 Cash and Cash Equivalents, Ending 1,052,722$ 1,503,624$ See accompanying Notes to the Consolidated Financial Statements. 6 JEFFERSON CITY AREA CHAMBER OF COMMERCE AND SUBSIDIARIES STATEMENT OF CASH FLOWS For the Years Ended December 31, 2011 and 2010 (Continued) 2011 Cash and Cash Equivalents Beginning of Year End of Year Increase or (Decrease) JCCC Checking and Money Market Accounts 152,352$ 108,379$ (43,973)$ Cafeteria Plan 4,278 5,716 1,438 Certificates of Deposit 644,018 648,555 4,537 Petty Cash 125 125 - JCCC Totals 800,772 762,775 (37,998) 21st Century Land Investment, LLC 699,562 289,883 (409,679) JC Chamber Properties, LLC 3,290 64 (3,226) Subsidiaries' Totals 702,852 289,947 (412,905) Total Cash and Cash Equivalents 1,503,624$ 1,052,722$ (450,902)$ Supplemental Disclosure of Cash Flow Information: Cash paid during the year for: Interest 45,625$ Income Taxes -$ 2010 Cash and Cash Equivalents Beginning of Year End of Year Increase or (Decrease) JCCC Checking and Money Market Accounts 313,439$ 152,352$ (161,087)$ Cafeteria Plan 2,711 4,278 1,567 Certificates of Deposit 426,746 644,018 217,272 Petty Cash 125 125 - JCCC Totals 743,021 800,772 57,752 21st Century Land Investment, LLC 392,179 699,562 307,383 JC Chamber Properties, LLC 104 3,290 3,186 Subsidiaries' Totals 392,283 702,852 310,569 Total Cash and Cash Equivalents 1,135,303$ 1,503,624$ 368,321$ Supplemental Disclosure of Cash Flow Information: Cash paid during the year for: Interest 67,633$ Income Taxes -$ Disclosure of Accounting Policy: For purposes of the statement of cash flows, Jefferson City Area Chamber of Commerce and Subsidiaries considers all highly liquid debt instruments purchased with a maturity of three months or less from the date of purchase to be cash equivalents. See accompanying Notes to the Consolidated Financial Statements. 7 JEFFERSON CITY AREA CHAMBER OF COMMERCE AND SUBSIDARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Years Ended December 31, 2011 and 2010 8 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business The Jefferson City Area Chamber of Commerce (the “Chamber”) is a nonprofit business association. The Chamber was formed to cultivate, promote, and improve the overall business climate of Jefferson City and Cole County. The Chamber provides programs and services which stimulate economic growth and enhance the quality of life for the area. Basis of Accounting The books and records are maintained and the financial statements are prepared on the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred. Basis of Presentation The Chamber is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. Grants and other contributions of cash and other assets are reported as temporarily restricted support if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Contributions received with donor-imposed restrictions that are met in the same year in which the contributions are received are classified as unrestricted contributions. The Chamber had no temporarily or permanently restricted net assets as of the years ended. Principles of Consolidation The consolidated financial statements of the Jefferson City Area Chamber of Commerce and Subsidiaries include the accounts of the JC Chamber 21st Century Land Investment, LLC and JC Chamber Properties, LLC. All material inter-company accounts and transactions have been eliminated. Investment in Land Land held for development is stated at cost. Cost includes the purchase price and all improvement- related expenses. JEFFERSON CITY AREA CHAMBER OF COMMERCE AND SUBSIDARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Years Ended December 31, 2011 and 2010 9 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Advertising Advertising costs are expensed as incurred. The advertising costs incurred for the years ended were $34,181 and $33,592, respectively. Cash and Cash Equivalents The Chamber considers all highly liquid investments, except for those held for long-term investment, with maturities of three months or less when purchased to be cash and cash equivalents. Property and Equipment Property and equipment are carried at cost. The Chamber capitalizes all expenditures for property and equipment in excess of $500. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Depreciation expense for the years ended was $31,361 and $33,530, respectively. Depletion is computed as 5% of royalty income derived from quarried stone tonnage. Depletion expense for the years ended was $0 and $218, respectively. Taxable Status The Chamber is a not-for-profit organization exempt from state and federal income tax under Internal Revenue Code Section 501(c)(6), except for unrelated business income which is taxed at regular corporate rates. JC Chamber 21st Century Land Investment, LLC and JC Chamber Properties, LLC are filed under the umbrella of the Jefferson City Area Chamber of Commerce. Allowance for Doubtful Accounts The Chamber records a monthly allowance for uncollectible memberships. Those accounts determined during the year to be uncollectible are written off against the allowance based on the initial estimate for the year. Throughout the year, the accounts are reviewed and the allowance is adjusted, as necessary. As of the years ended, the allowance for uncollectible accounts totaled $3,691 and $1,544, respectively. Deferred Revenues Membership dues, seminar fees, pledges, and annual meeting registrations collected in advance have been included in deferred revenue and recognized as revenue in the period earned. JEFFERSON CITY AREA CHAMBER OF COMMERCE AND SUBSIDARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Years Ended December 31, 2011 and 2010 10 NOTE 2 – INVESTMENT IN SUBSIDIARIES The JC Chamber 21st Century Land Investment, LLC was formed in 2003 for the purpose of promoting economic development through real estate development and sales in the Jefferson City Area. It is owned and managed by the Jefferson City Area Chamber of Commerce. During the years ended, JC Chamber 21st Century Land Investment, LLC paid $300,000 and $300,000, respectively, to JC Chamber of Commerce for economic development. During the years ended, JC Chamber 21st Century Land Investment, LLC also paid $14,227 and $30,878, respectively, to JC Chamber Properties, LLC for general operations. The Chamber also formed the JC Chamber Properties, LLC in 2003 for the purpose of renting, leasing, and managing property on behalf of the Chamber. It is also owned and managed by the Chamber. During the years ended, JC Chamber Properties, LLC received $14,227 and $30,878, respectively, from JC Chamber 21st Century Land Investment, LLC for general operations. NOTE 3 – PENSION PLAN The Chamber participates in a multiple-employer plan with the American Chamber of Commerce Executives Retirement Plan. The Chamber contributes 8% of the annual wages and year-end bonuses for qualified employees. Contributions are calculated and deposited at each pay period (24 annually). Accumulated benefits and plan assets are not determined or allocated separately by the employer, but by the individual. Employees with one year of service are eligible to participate. Employees are 20% vested after 2 years, 40% after 3 years, 60% after four years, 80% after 5 years, and 100% after six years in the plan. Total contributions made by the Chamber to the plan for the years ended were $48,846 and $53,478, respectively. NOTE 4 – CONCENTRATION OF CREDIT RISK Financial instruments that potentially subject the Chamber to concentrations of credit risk are cash and investments. The Chamber maintains its cash and investment balances at several financial institutions. Accounts, other than mutual funds, government issues, and taxable bonds, are secured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. As of the years ended, the Chamber and its Subsidiaries had $322,149 and $0, respectively, in uninsured deposits. JEFFERSON CITY AREA CHAMBER OF COMMERCE AND SUBSIDARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Years Ended December 31, 2011 and 2010 11 NOTE 5 – INVESTMENT IN LAND Land held for development included the following as of the years ended: 2011 2010 Algoa - West $ 1,142,507 $ 1,142,507 Algoa - East 1,829,251 1,829,251 Speculative Building - Land 237,921 237,921 West Edgewood Development 184,894 184,894 Total $ 3,394,573 $ 3,394,573 NOTE 6 – NOTES PAYABLE The Chamber's notes payable consists of the following: 2011 2010 Note payable to Hawthorn Bank bearing interest at 4.50%. Quarterly interest only payments are required to be made per the loan agreement with the full balance of the loan due at maturity. The loan is collateralized by a speculative building. $ 1,000,000 $ 1,000,000 Interest expense for the years ended was $45,625 and $67,633, respectively. NOTE 7 – COMPENSATED ABSENCES Vacation time is awarded to Chamber employees on January 1st each year. Vacation time earned is based on individual years of service. A balance of 80 hours of vacation time can be carried over to the new calendar year. Sick leave time is earned at 96 hours per year; balances are carried over, with a maximum of 720 hours. The vacation earned, but not yet paid, as of both of the years ended was $20,973, respectively. JEFFERSON CITY AREA CHAMBER OF COMMERCE AND SUBSIDARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Years Ended December 31, 2011 and 2010 12 NOTE 8 – RELATED PARTY TRANSACTIONS Various business owners, officers, and key employees of local businesses and organizations had direct business dealings with the Chamber in the years ended. The highest total of expenditures paid to the business with the most direct benefit to the owner was $74,230 and $50,281, as of the years ended, respectively. During 2011, the Chamber paid fees for services and/or products to three entities for a total of $22,947. Each of these entities had a business owner and/or key employee who also served as a voting member of the Chamber’s Board of Directors during 2011. During 2010, the Chamber paid fees for services and/or products to four entities for a total of $26,876. Each of these entities had a business owner and/or key employee who also served as a voting member of the Chamber’s Board of Directors during 2010. As described in Note 1, JC Chamber 21st Century Land Investment, LLC and JC Chamber Properties, LLC are wholly owned subsidiaries of the Chamber. Separate books and records are maintained for these entities. The Chamber received the following payments from these subsidiaries during the years ended: 2011 2010 21st Century Properties 21st Century Properties Rental Income $ 36,000 $ 29,000 Land Management Fee $ -0- $ 163,263 NOTE 9 - FUNCTIONAL ALLOCATION OF EXPENSES The costs of providing the various programs and other activities have been summarized on a functional basis in the statements of revenues and expenses. Accordingly, certain costs have been allocated among the programs benefited. JEFFERSON CITY AREA CHAMBER OF COMMERCE AND SUBSIDARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Years Ended December 31, 2011 and 2010 13 NOTE 10 – UNCERTAIN TAX POSITIONS: The Chamber is exempt from federal income taxes under Section 501(c)(6) of the Internal Revenue Code and application of state law. The accounting standard on accounting for uncertainty in income taxes addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under that guidance, the Chamber may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities based on the technical merits of the position. Examples of tax positions include the tax-exempt status of the Chamber and various positions related to the potential sources of unrelated business taxable income (UBIT). The Chamber was not subject to UBIT for the years ended. The Chamber files forms 990 in the U.S. federal jurisdiction. The Chamber is generally no longer subject to examination by the Internal Revenue Service three years after the forms were filed. NOTE 11 - EVALUATION OF SUBSEQUENT EVENTS The Chamber has evaluated subsequent events through March 29, 2012, the date which the financial statements were available to be issued. ACCOMPANYING SCHEDULES JE F F E R S O N C I T Y A R E A C H A M B E R O F C O M M E R C E A N D S U B S I D I A R I E S CO N S O L I D A T I N G S T A T E M E N T O F F I N A N C I A L P O S I T I O N De c e m b e r 3 1 , 2 0 1 1 JC C H A M B E R 2 1 s t J C JC C E N T U R Y L A N D C H A M B E R 2 0 1 1 CH A M B E R I N V E S T M E N T , L L C P R O P E R T I E S , L L C E L I M I N A T I O N S C O N S O L I D A T E D AS S E T S CU R R E N T A S S E T S Ca s h a n d C a s h E q u i v a l e n t s 7 6 2 , 7 7 5 $ 2 8 9 , 8 8 3 $ 6 4 $ - $ 1 , 0 5 2 , 7 2 2 $ Ac c o u n t s R e c e i v a b l e , n e t o f a l l o w a n c e f o r d o u b t f u l a c c o u n t s o f $ 3 , 6 9 1 2 9 , 3 8 9 - - - 2 9 , 3 8 9 Ac c r u e d I n t e r e s t 2 4 1 - - - 2 4 1 Pr e p a i d E x p e n s e s 7 , 2 4 7 - - - 7 , 2 4 7 To t a l C u r r e n t A s s e t s 7 9 9 , 6 5 2 2 8 9 , 8 8 3 6 4 - 1 , 0 8 9 , 5 9 9 PR O P E R T Y , B U I L D I N G , A N D E Q U I P M E N T La n d - - 1 5 , 0 0 0 - 1 5 , 0 0 0 Bu i l d i n g - - 2 7 6 , 2 6 2 - 2 7 6 , 2 6 2 Bu i l d i n g a n d L a n d I m p r o v e m e n t s - 1 4 2 , 6 9 2 3 1 1 , 8 0 5 - 4 5 4 , 4 9 7 Fu r n i t u r e a n d F i x t u r e s 1 5 9 , 2 8 8 - - - 1 5 9 , 2 8 8 Le s s : A c c u m u l a t e d D e p r e c i a t i o n ( 1 3 0 , 1 4 7 ) ( 4 5 , 8 1 9 ) ( 3 3 3 , 6 7 2 ) - ( 5 0 9 , 6 3 9 ) Ne t P r o p e r t y , B u i l d i n g , a n d E q u i p m e n t 2 9 , 1 4 0 9 6 , 8 7 3 2 6 9 , 3 9 5 - 3 9 5 , 4 0 8 OT H E R A S S E T S In v e s t m e n t i n S u b s i d i a r i e s 4 , 1 1 9 , 6 9 9 - - ( 4 , 1 1 9 , 6 9 9 ) - In v e s t m e n t i n L a n d - 3 , 3 9 4 , 5 7 3 - - 3 , 3 9 4 , 5 7 3 Le s s : A c c u m u l a t e d D e p l e t i o n - ( 5 , 2 3 2 ) - - ( 5 , 2 3 2 ) In v e s t m e n t i n S p e c u l a t i v e B u i l d i n g - 1 , 0 7 4 , 1 4 3 - - 1 , 0 7 4 , 1 4 3 Du e f r o m O t h e r S u b s i d i a r i e s - 2 0 , 0 0 0 - ( 2 0 , 0 0 0 ) - To t a l O t h e r A s s e t s 4 , 1 1 9 , 6 9 9 4 , 4 8 3 , 4 8 4 - ( 4 , 1 3 9 , 6 9 9 ) 4 , 4 6 3 , 4 8 4 TO T A L A S S E T S 4 , 9 4 8 , 4 9 1 $ 4 , 8 7 0 , 2 3 5 $ 2 6 9 , 4 5 8 $ ( 4 , 1 3 9 , 6 9 9 ) $ 5 , 9 4 8 , 4 9 2 $ 14 JE F F E R S O N C I T Y A R E A C H A M B E R O F C O M M E R C E A N D S U B S I D I A R I E S CO N S O L I D A T I N G S T A T E M E N T O F F I N A N C I A L P O S I T I O N De c e m b e r 3 1 , 2 0 1 1 JC C H A M B E R 2 1 s t J C JC C E N T U R Y L A N D C H A M B E R 2 0 1 1 CH A M B E R I N V E S T M E N T , L L C P R O P E R T I E S , L L C E L I M I N A T I O N S C O N S O L I D A T E D LI A B I L I T I E S A N D N E T A S S E T S CU R R E N T L I A B I L I T I E S Ac c o u n t s P a y a b l e a n d A c c r u e d E x p e n s e s 3 7 , 1 6 2 $ - $ - $ - $ 3 7 , 1 6 2 $ De f e r r e d M e m b e r s h i p D u e s 1 0 3 , 1 3 7 - - - 1 0 3 , 1 3 7 Un a p p l i e d C r e d i t s 1 1 , 3 0 9 - - - 1 1 , 3 0 9 De f e r r e d R e v e n u e 4 8 , 8 5 8 - - - 4 8 , 8 5 8 To t a l C u r r e n t L i a b i l i t i e s 2 0 0 , 4 6 7 - - - 2 0 0 , 4 6 7 LO N G - T E R M L I A B I L I T I E S No t e P a y a b l e - B u i l d i n g - 1 , 0 0 0 , 0 0 0 - - 1 , 0 0 0 , 0 0 0 Du e t o O t h e r S u b s i d i a r i e s - - 2 0 , 0 0 0 ( 2 0 , 0 0 0 ) - T o t a l L o n g - T e r m L i a b i l i t i e s - 1 , 0 0 0 , 0 0 0 2 0 , 0 0 0 ( 2 0 , 0 0 0 ) 1 , 0 0 0 , 0 0 0 TO T A L L I A B I L I T I E S 2 0 0 , 4 6 7 1 , 0 0 0 , 0 0 0 2 0 , 0 0 0 ( 2 0 , 0 0 0 ) 1 , 2 0 0 , 4 6 7 NE T A S S E T S Un r e s t r i c t e d 4 , 7 4 8 , 0 2 4 3 , 8 7 0 , 2 3 5 2 4 9 , 4 5 8 ( 4 , 1 1 9 , 6 9 9 ) 4 , 7 4 8 , 0 1 9 TO T A L N E T A S S E T S 4 , 7 4 8 , 0 2 4 3 , 8 7 0 , 2 3 5 2 4 9 , 4 5 8 ( 4 , 1 1 9 , 6 9 9 ) 4 , 7 4 8 , 0 1 9 TO T A L L I A B I L I T I E S A N D N E T A S S E T S 4, 9 4 8 , 4 9 1 $ 4 , 8 7 0 , 2 3 5 $ 2 6 9 , 4 5 8 $ ( 4 , 1 3 9 , 6 9 9 ) $ 5 , 9 4 8 , 4 9 2 $ 15 JE F F E R S O N C I T Y A R E A C H A M B E R O F C O M M E R C E A N D S U B S I D I A R I E S CO N S O L I D A T I N G S T A T E M E N T O F A C T I V I T I E S Fo r t h e Y e a r E n d e d D e c e m b r 3 1 , 2 0 1 1 JC C H A M B E R 2 1 s t J C JC C E N T U R Y L A N D C H A M B E R 2 0 1 1 CH A M B E R I N V E S T M E N T , L L C P R O P E R T I E S , L L C E L I M I N A T I O N S C O N S O L I D A T E D RE V E N U E Me m b e r s h i p D u e s 4 4 2 , 4 7 9 $ - $ - $ - $ 4 4 2 , 4 7 9 $ Ec o n o m i c D e v e l o p m e n t S u p p o r t 3 0 0 , 0 0 0 - - - 3 0 0 , 0 0 0 Co m m i t t e e s 8 , 8 8 3 - - - 8 , 8 8 3 Sp e c i a l E v e n t s 2 2 2 , 6 4 9 - - - 2 2 2 , 6 4 9 Le a d e r s h i p J e f f e r s o n C i t y 2 8 , 8 9 1 - - - 2 8 , 8 9 1 Go v e r n m e n t R e l a t i o n s 1 5 , 7 2 5 - - - 1 5 , 7 2 5 Pu b l i c a t i o n s a n d M a r k e t i n g 2 3 , 8 1 3 - - - 2 3 , 8 1 3 Ma n a g e m e n t F e e s 9 0 0 - - - 9 0 0 Ot h e r I n c o m e 6 , 4 9 8 - - - 6 , 4 9 8 Ci v i c P r o g r e s s 2 7 , 2 3 5 - - - 2 7 , 2 3 5 Pa r t n e r s i n E d u c a t i o n 1 9 , 3 4 0 - - - 1 9 , 3 4 0 Re n t a l I n c o m e - - 4 2 , 0 0 0 ( 3 6 , 0 0 0 ) 6 , 0 0 0 Ro y a l t y I n c o m e - 3 5 - - 3 5 In v e s t m e n t I n c o m e 5 , 1 6 5 3 4 3 - - 5 , 5 0 7 To t a l R e v e n u e 1 , 1 0 1 , 5 7 8 3 7 8 4 2 , 0 0 0 ( 3 6 , 0 0 0 ) 1 , 1 0 7 , 9 5 6 EX P E N S E S Pr o g r a m E x p e n s e s Me m b e r s h i p A f f a i r s 1 1 , 6 0 1 - - - 1 1 , 6 0 1 Ec o n o m i c D e v e l o p m e n t 1 6 2 , 0 5 5 5 , 4 9 4 - - 1 6 7 , 5 4 9 Co m m i t t e e s 8 , 9 3 6 - - - 8 , 9 3 6 Sp e c i a l E v e n t s 1 4 9 , 0 5 0 - - - 1 4 9 , 0 5 0 Le a d e r s h i p J e f f e r s o n C i t y 1 3 , 7 0 1 - - - 1 3 , 7 0 1 Go v e r n m e n t R e l a t i o n s 9 , 6 4 2 - - - 9 , 6 4 2 Pu b l i c a t i o n s a n d M a r k e t i n g 7 , 3 9 4 - - - 7 , 3 9 4 Ci v i c P r o g r e s s 5 0 , 0 5 3 - - - 5 0 , 0 5 3 Pa r t n e r s i n E d u c a t i o n 6 , 7 7 1 - - - 6 , 7 7 1 Co m m u n i t y D e v e l o p m e n t 4 , 7 6 0 - - - 4 , 7 6 0 To t a l P r o g r a m E x p e n s e s 4 2 3 , 9 6 3 5 , 4 9 4 - - 4 2 9 , 4 5 7 16 JE F F E R S O N C I T Y A R E A C H A M B E R O F C O M M E R C E A N D S U B S I D I A R I E S CO N S O L I D A T I N G S T A T E M E N T O F A C T I V I T I E S Fo r t h e Y e a r E n d e d D e c e m b r 3 1 , 2 0 1 1 JC C H A M B E R 2 1 s t J C JC C E N T U R Y L A N D C H A M B E R 2 0 1 1 CH A M B E R I N V E S T M E N T , L L C P R O P E R T I E S , L L C E L I M I N A T I O N S C O N S O L I D A T E D EX P E N S E S ( C o n t i n u e d ) Ge n e r a l a n d A d m i n i s t r a t i v e 9 7 1 , 7 0 0 $ 9 9 , 8 0 3 $ 7 0 , 5 3 0 $ ( 3 6 , 0 0 0 ) $ 1 , 1 0 6 , 0 3 3 $ To t a l E x p e n s e s 1 , 3 9 5 , 6 6 3 1 0 5 , 2 9 7 7 0 , 5 3 0 ( 3 6 , 0 0 0 ) 1 , 5 3 5 , 4 9 0 Ch a n g e i n N e t A s s e t s B e f o r e O t h e r I n c o m e ( 2 9 4 , 0 8 4 ) ( 1 0 4 , 9 1 9 ) ( 2 8 , 5 3 0 ) - ( 4 2 7 , 5 3 4 ) Ot h e r I n c o m e ( E x p e n s e ) Ga i n ( L o s s ) o n S a l e / D i s p o s a l o f A s s e t s - - ( 7 1 4 ) - ( 7 1 4 ) To t a l O t h e r I n c o m e ( E x p e n s e ) - - ( 7 1 4 ) - ( 7 1 4 ) Ex c e s s o f R e v e n u e O v e r ( U n d e r ) E x p e n s e s B e f o r e Eq u i t y i n S u b s i d i a r i e s ( 2 9 4 , 0 8 4 ) ( 1 0 4 , 9 1 9 ) ( 2 9 , 2 4 4 ) - ( 4 2 8 , 2 4 8 ) Eq u i t y I n N e t I n c o m e o f W h o l l y - O w n e d S u b s i d i a r i e s ( 4 3 4 , 1 6 3 ) - - 4 3 4 , 1 6 3 ( 0 ) Ch a n g e i n N e t A s s e t s B e f o r e O t h e r I n c o m e ( E x p e n s e ) ( 7 2 8 , 2 4 8 ) ( 1 0 4 , 9 1 9 ) ( 2 9 , 2 4 4 ) 4 3 4 , 1 6 3 ( 4 2 8 , 2 4 8 ) NE T A S S E T S , B E G I N N I N G 5 , 1 7 6 , 2 7 2 4 , 2 8 9 , 3 8 1 2 6 4 , 4 7 5 ( 4 , 5 5 3 , 8 5 6 ) 5 , 1 7 6 , 2 7 4 Tr a n s f e r s I n ( O u t ) 3 0 0 , 0 0 0 ( 3 1 4 , 2 2 7 ) 1 4 , 2 2 7 - - NE T A S S E T S , E N D I N G 4 , 7 4 8 , 0 2 4 $ 3 , 8 7 0 , 2 3 5 $ 2 4 9 , 4 5 8 $ ( 4 , 1 1 9 , 6 9 3 ) $ 4 , 7 4 8 , 0 2 4 $ 17 JE F F E R S O N C I T Y A R E A C H A M B E R O F C O M M E R C E A N D S U B S I D I A R I E S CO N S O L I D A T I N G S T A T E M E N T S O F C A S H F L O W S Fo r t h e Y e a r E n d e d D e c e m b e r 3 1 , 20 1 1 JC C H A M B E R 2 1 S T J C JC C E N T U R Y L A N D C H A M B E R 2 0 1 1 CH A M B E R I N V E S T M E N T , L L C P R O P E R T I E S , L L C E L I M I N A T I O N S C O N S O L I D A T E D CA S H F L O W S F R O M O P E R A T I N G A C T I V I T I E S Ch a n g e s i n N e t A s s e t s ( 7 2 8 , 2 4 9 ) $ ( 1 0 4 , 9 1 9 ) $ ( 2 9 , 2 4 4 ) $ 4 3 4 , 1 6 3 $ ( 4 2 8 , 2 4 9 ) $ Ad j u s t m e n t s t o R e c o n c i l e C h a n g e s i n N e t A s s e t s t o N e t C a s h P r o v i d e d b y O p e r a t i n g A c t i v i t i e s De p r e c i a t i o n 1 0 , 3 6 7 9 , 4 6 6 1 1 , 5 2 9 - 3 1 , 3 6 2 (G a i n ) L o s s o n D i s p o s a l / S a l e o f A s s e t - - 7 1 4 - 7 1 4 (I n c r e a s e ) D e c r e a s e i n : Ac c o u n t s R e c e i v a b l e ( n e t ) ( 2 1 , 6 3 9 ) - - - ( 2 1 , 6 3 9 ) Ot h e r R e c e i v a b l e s 2 0 4 - - - 2 0 4 No t e R e c e i v a b l e 1 , 9 3 7 - - - 1 , 9 3 7 Pr e p a i d E x p e n s e s 1 , 3 8 2 - - - 1 , 3 8 2 In c r e a s e ( D e c r e a s e ) i n : Ac c o u n t s P a y a b l e ( 4 , 4 1 0 ) - - - ( 4 , 4 1 0 ) De f e r r e d M e m b e r s h i p D u e s ( 7 , 2 2 0 ) - - - ( 7 , 2 2 0 ) Un a p p l i e d C r e d i t s ( 8 , 5 3 8 ) - - - ( 8 , 5 3 8 ) De f e r r e d R e v e n u e s 1 , 6 4 8 - - - 1 , 6 4 8 To t a l A d j u s t m e n t s ( 2 6 , 2 6 7 ) 9 , 4 6 6 1 2 , 2 4 3 - ( 4 , 5 5 8 ) Ne t C a s h P r o v i d e d ( U s e d ) b y O p e r a t i n g A c t i v i t i e s ( 75 4 , 5 1 6 ) ( 9 5 , 4 5 3 ) ( 1 7 , 0 0 1 ) 4 3 4 , 1 6 3 ( 4 3 2 , 8 0 7 ) CA S H F L O W S F R O M I N V E S T I N G A C T I V I T I E S Pu r c h a s e o f A s s e t s ( 1 7 , 6 4 4 ) - ( 4 5 2 ) - ( 1 8 , 0 9 6 ) (I n c r e a s e ) D e c r e a s e i n I n v e s t m e n t i n S u b s i d i a r i e s 4 3 4 , 1 6 3 - - ( 4 3 4 , 1 6 3 ) - Ne t C a s h P r o v i d e d ( U s e d ) I n I n v e s t i n g A c t i v i t i e s 41 6 , 5 1 9 - ( 4 5 2 ) ( 4 3 4 , 1 6 3 ) ( 1 8 , 0 9 6 ) Ne t I n c r e a s e ( D e c r e a s e ) i n C a s h a n d C a s h E q u i v a l e n t s ( 3 3 7 , 9 9 7 ) ( 9 5 , 4 5 3 ) ( 1 7 , 4 5 3 ) ( 0 ) ( 4 5 0 , 9 0 3 ) Ca s h a n d C a s h E q u i v a l e n t s , B e g i n n i n g 8 0 0 , 7 7 2 6 9 9 , 5 6 2 3 , 2 9 0 - 1 , 5 0 3 , 6 2 4 Tr a n s f e r s I n ( O u t ) 3 0 0 , 0 0 0 ( 3 1 4 , 2 2 7 ) 1 4 , 2 2 7 - - Ca s h a n d C a s h E q u i v a l e n t s , E n d i n g 7 6 2 , 7 7 5 $ 2 8 9 , 8 8 3 $ 6 4 $ ( 0 ) $ 1 , 0 5 2 , 7 2 2 $ 18 JE F F E R S O N C I T Y A R E A C H A M B E R O F C O M M E R C E A N D S U B S I D I A R I E S CO N S O L I D A T I N G S T A T E M E N T O F F I N A N C I A L P O S I T I O N De c e m b e r 3 1 , 2 0 1 0 JC C H A M B E R 2 1 s t J C JC C E N T U R Y L A N D C H A M B E R 2 0 1 0 CH A M B E R I N V E S T M E N T , L L C P R O P E R T I E S , L L C E L I M I N A T I O N S C O N S O L I D A T E D AS S E T S CU R R E N T A S S E T S Ca s h a n d C a s h E q u i v a l e n t s 8 0 0 , 7 7 2 $ 6 9 9 , 5 6 2 $ 3 , 2 9 0 $ - $ 1 , 5 0 3 , 6 2 4 $ Ac c o u n t s R e c e i v a b l e , n e t o f a l l o w a n c e f o r d o u b t f u l a c c o u n t s o f $ 1 , 5 4 4 7 , 7 5 0 - - - 7 , 7 5 0 Ac c r u e d I n t e r e s t 4 4 5 - - - 4 4 5 Pr e p a i d E x p e n s e s 8 , 6 2 9 - - - 8 , 6 2 9 To t a l C u r r e n t A s s e t s 8 1 7 , 5 9 6 6 9 9 , 5 6 2 3 , 2 9 0 - 1 , 5 2 0 , 4 4 8 PR O P E R T Y , B U I L D I N G , A N D E Q U I P M E N T La n d - - 1 5 , 0 0 0 - 1 5 , 0 0 0 Bu i l d i n g - - 2 7 6 , 2 6 2 - 2 7 6 , 2 6 2 Bu i l d i n g a n d L a n d I m p r o v e m e n t s - 1 4 2 , 6 9 2 3 1 3 , 0 0 7 - 4 5 5 , 6 9 9 Fu r n i t u r e a n d F i x t u r e s 1 4 4 , 6 6 2 - - - 1 4 4 , 6 6 2 Le s s : A c c u m u l a t e d D e p r e c i a t i o n ( 1 2 2 , 7 9 4 ) ( 3 6 , 3 5 4 ) ( 3 2 3 , 0 8 3 ) - ( 4 8 2 , 2 3 1 ) Ne t P r o p e r t y , B u i l d i n g , a n d E q u i p m e n t 2 1 , 8 6 8 1 0 6 , 3 3 8 2 8 1 , 1 8 6 - 4 0 9 , 3 9 2 OT H E R A S S E T S In v e s t m e n t i n S u b s i d i a r i e s 4 , 5 5 3 , 8 5 6 - - ( 4 , 5 5 3 , 8 5 6 ) - In v e s t m e n t i n L a n d - 3 , 3 9 4 , 5 7 3 - - 3 , 3 9 4 , 5 7 3 Le s s : A c c u m u l a t e d D e p l e t i o n - ( 5 , 2 3 2 ) - - ( 5 , 2 3 2 ) In v e s t m e n t i n B u i l d i n g - 1 , 0 7 4 , 1 4 3 - - 1 , 0 7 4 , 1 4 3 Du e f r o m O t h e r S u b s i d i a r i e s - 2 0 , 0 0 0 - ( 2 0 , 0 0 0 ) - No t e R e c e i v a b l e 1 , 9 3 7 - - - 1 , 9 3 7 To t a l O t h e r A s s e t s 4 , 5 5 5 , 7 9 4 4 , 4 8 3 , 4 8 4 - ( 4 , 5 7 3 , 8 5 6 ) 4 , 4 6 5 , 4 2 1 TO T A L A S S E T S 5 , 3 9 5 , 2 5 8 $ 5 , 2 8 9 , 3 8 1 $ 2 8 4 , 4 7 5 $ ( 4 , 5 7 3 , 8 5 6 ) $ 6 , 3 9 5 , 2 6 2 $ 19 JE F F E R S O N C I T Y A R E A C H A M B E R O F C O M M E R C E A N D S U B S I D I A R I E S CO N S O L I D A T I N G S T A T E M E N T O F F I N A N C I A L P O S I T I O N De c e m b e r 3 1 , 2 0 1 0 JC C H A M B E R 2 1 s t J C JC C E N T U R Y L A N D C H A M B E R 2 0 1 0 CH A M B E R I N V E S T M E N T , L L C P R O P E R T I E S , L L C E L I M I N A T I O N S C O N S O L I D A T E D LI A B I L I T I E S A N D N E T A S S E T S CU R R E N T L I A B I L I T I E S Ac c o u n t s P a y a b l e a n d A c c r u e d E x p e n s e s 4 1 , 5 7 2 $ - $ - $ - $ 4 1 , 5 7 2 $ De f e r r e d M e m b e r s h i p D u e s 1 1 0 , 3 5 7 - - 1 1 0 , 3 5 7 Un a p p l i e d C r e d i t s 1 9 , 8 4 7 - - - 1 9 , 8 4 7 De f e r r e d R e v e n u e 47 , 2 1 0 - - - 4 7 , 2 1 0 To t a l C u r r e n t L i a b i l i t i e s 2 1 8 , 9 8 7 - - - 2 1 8 , 9 8 7 LO N G - T E R M L I A B I L I T I E S No t e P a y a b l e - B u i l d i n g - 1 , 0 0 0 , 0 0 0 - - 1 , 0 0 0 , 0 0 0 Du e t o o t h e r S u b s i d i a r i e s - - 2 0 , 0 0 0 ( 2 0 , 0 0 0 ) - T o t a l L o n g - T e r m L i a b i l i t i e s - 1 , 0 0 0 , 0 0 0 2 0 , 0 0 0 ( 2 0 , 0 0 0 ) 1 , 0 0 0 , 0 0 0 TO T A L L I A B I L I T I E S 2 1 8 , 9 8 7 1 , 0 0 0 , 0 0 0 2 0 , 0 0 0 ( 2 0 , 0 0 0 ) 1 , 2 1 8 , 9 8 7 NE T A S S E T S Un r e s t r i c t e d 5 , 1 7 6 , 2 7 2 4 , 2 8 9 , 3 8 1 2 6 4 , 4 7 5 ( 4 , 5 5 3 , 8 5 6 ) 5 , 1 7 6 , 2 7 2 TO T A L N E T A S S E T S 5 , 1 7 6 , 2 7 2 4 , 2 8 9 , 3 8 1 2 6 4 , 4 7 5 ( 4 , 5 5 3 , 8 5 6 ) 5 , 1 7 6 , 2 7 2 TO T A L L I A B I L I T I E S A N D N E T A S S E T S 5, 3 9 5 , 2 5 8 $ 5 , 2 8 9 , 3 8 1 $ 2 8 4 , 4 7 5 $ ( 4 , 5 7 3 , 8 5 6 ) $ 6 , 3 9 5 , 2 6 2 $ 20 JE F F E R S O N C I T Y A R E A C H A M B E R O F C O M M E R C E A N D S U B S I D I A R I E S CO N S O L I D A T I N G S T A T E M E N T O F A C T I V I T I E S Fo r t h e Y e a r E n d e d D e c e m b e r 3 1 , 2 0 1 0 JC C H A M B E R 2 1 s t J C JC C E N T U R Y L A N D C H A M B E R 2 0 1 0 CH A M B E R I N V E S T M E N T , L L C P R O P E R T I E S , L L C E L I M I N A T I O N S C O N S O L I D A T E D RE V E N U E Me m b e r s h i p D u e s 4 5 4 , 7 6 0 $ - $ - $ - $ 4 5 4 , 7 6 0 $ Ec o n o m i c D e v e l o p m e n t 3 0 0 , 0 0 0 - - - 3 0 0 , 0 0 0 Co m m i t t e e s 1 2 , 2 4 2 - - - 1 2 , 2 4 2 Sp e c i a l E v e n t s 2 2 9 , 3 4 6 - - - 2 2 9 , 3 4 6 Le a d e r s h i p J e f f e r s o n C i t y 2 8 , 3 1 2 - - - 2 8 , 3 1 2 Go v e r n m e n t R e l a t i o n s 1 7 , 4 7 5 - - - 1 7 , 4 7 5 Pu b l i c a t i o n s a n d M a r k e t i n g 1 6 , 1 4 3 - - - 1 6 , 1 4 3 Ma n a g e m e n t F e e s 1 6 4 , 1 6 3 - - ( 1 6 3 , 2 6 3 ) 9 0 0 Ot h e r I n c o m e 3 5 , 0 5 5 - - - 3 5 , 0 5 5 Ci v i c P r o g r e s s 2 6 , 0 0 0 - - - 2 6 , 0 0 0 Pa r t n e r s i n E d u c a t i o n 1 8 , 3 0 0 - - - 1 8 , 3 0 0 Re n t a l I n c o m e - - 3 3 , 8 0 0 ( 2 9 , 0 0 0 ) 4 , 8 0 0 Ro y a l t y I n c o m e - 4 , 3 6 0 - - 4 , 3 6 0 In v e s t m e n t I n c o m e 5 , 4 0 7 8 3 8 - - 6 , 2 4 4 To t a l R e v e n u e 1 , 3 0 7 , 2 0 3 5 , 1 9 7 3 3 , 8 0 0 ( 1 9 2 , 2 6 3 ) 1 , 1 5 3 , 9 3 7 EX P E N S E S Pr o g r a m E x p e n s e s Me m b e r s h i p A f f a i r s 1 0 , 7 3 5 - - - 1 0 , 7 3 5 Ec o n o m i c D e v e l o p m e n t 2 6 1 , 8 6 7 6 , 5 5 2 - - 2 6 8 , 4 1 9 Co m m i t t e e s 1 2 , 6 2 8 - - - 1 2 , 6 2 8 Sp e c i a l E v e n t s 1 4 9 , 6 7 1 - - - 1 4 9 , 6 7 1 Le a d e r s h i p J e f f e r s o n C i t y 1 3 , 5 3 5 - - - 1 3 , 5 3 5 Go v e r n m e n t R e l a t i o n s 1 6 , 1 1 3 - - - 1 6 , 1 1 3 Pu b l i c a t i o n s a n d M a r k e t i n g 9 , 2 3 4 - - - 9 , 2 3 4 Ci v i c P r o g r e s s 3 5 , 0 4 6 - - - 3 5 , 0 4 6 Pa r t n e r s i n E d u c a t i o n 2 , 9 8 1 - - - 2 , 9 8 1 Co m m u n i t y D e v e l o p m e n t 2 , 8 1 5 - - - 2 , 8 1 5 To t a l P r o g r a m E x p e n s e s 5 1 4 , 6 2 5 6 , 5 5 2 - - 5 2 1 , 1 7 7 21 JE F F E R S O N C I T Y A R E A C H A M B E R O F C O M M E R C E A N D S U B S I D I A R I E S CO N S O L I D A T I N G S T A T E M E N T O F A C T I V I T I E S Fo r t h e Y e a r E n d e d D e c e m b e r 3 1 , 2 0 1 0 JC C H A M B E R 2 1 s t J C JC C E N T U R Y L A N D C H A M B E R 2 0 1 0 CH A M B E R I N V E S T M E N T , L L C P R O P E R T I E S , L L C E L I M I N A T I O N S C O N S O L I D A T E D EX P E N S E S ( C o n t i n u e d ) Ge n e r a l a n d A d m i n i s t r a t i v e 1 , 0 3 1 , 9 4 4 $ 3 0 1 , 7 6 7 $ 7 5 , 4 5 0 $ ( 1 9 2 , 2 6 3 ) $ 1 , 2 1 6 , 8 9 8 $ To t a l E x p e n s e s 1 , 5 4 6 , 5 6 9 3 0 8 , 3 1 9 7 5 , 4 5 0 ( 1 9 2 , 2 6 3 ) 1 , 7 3 8 , 0 7 5 Ch a n g e i n N e t A s s e t s B e f o r e O t h e r I n c o m e ( 2 3 9 , 3 6 6 ) ( 3 0 3 , 1 2 2 ) ( 4 1 , 6 5 0 ) - ( 5 8 4 , 1 3 7 ) Ot h e r I n c o m e ( E x p e n s e ) Ga i n ( L o s s ) o n S a l e / D i s p o s a l o f A s s e t s ( 6 3 2 ) 1 , 5 8 2 , 5 5 8 ( 7 , 9 5 7 ) - 1 , 5 7 3 , 9 6 9 To t a l O t h e r I n c o m e ( E x p e n s e ) ( 6 3 2 ) 1 , 5 8 2 , 5 5 8 ( 7 , 9 5 7 ) - 1 , 5 7 3 , 9 6 9 Ex c e s s o f R e v e n u e O v e r ( U n d e r ) E x p e n s e s B e f o r e Eq u i t y i n S u b s i d i a r i e s ( 2 3 9 , 9 9 8 ) 1 , 2 7 9 , 4 3 6 ( 4 9 , 6 0 7 ) - 9 8 9 , 8 3 2 Eq u i t y I n N e t I n c o m e o f W h o l l y - O w n e d S u b s i d i a r i e s 9 2 9 , 8 2 9 - - ( 9 2 9 , 8 2 9 ) - Ch a n g e i n N e t A s s e t s 6 8 9 , 8 3 2 1 , 2 7 9 , 4 3 6 ( 4 9 , 6 0 7 ) ( 9 2 9 , 8 2 9 ) 9 8 9 , 8 3 2 NE T A S S E T S , B E G I N N I N G 4 , 1 8 6 , 4 4 0 3 , 3 4 0 , 8 2 3 2 8 3 , 2 0 4 ( 3 , 6 2 4 , 0 2 7 ) 4 , 1 8 6 , 4 4 0 Tr a n s f e r I n ( O u t ) 3 0 0 , 0 0 0 ( 3 3 0 , 8 7 8 ) 3 0 , 8 7 8 - - NE T A S S E T S , E N D I N G 5 , 1 7 6 , 2 7 2 $ 4 , 2 8 9 , 3 8 1 $ 2 6 4 , 4 7 5 $ ( 4 , 5 5 3 , 8 5 6 ) $ 5 , 1 7 6 , 2 7 2 $ 22 JE F F E R S O N C I T Y A R E A C H A M B E R O F C O M M E R C E A N D S U B S I D I A R I E S CO N S O L I D A T I N G S T A T E M E N T S O F C A S H F L O W S Fo r t h e Y e a r E n d e d D e c e m b e r 3 1 , 2 0 1 0 JC C H A M B E R 2 1 S T J C JC C E N T U R Y L A N D C H A M B E R 2 0 1 0 CH A M B E R I N V E S T M E N T , L L C P R O P E R T I E S , L L C E L I M I N A T I O N S C O N S O L I D A T E D CA S H F L O W S F R O M O P E R A T I N G A C T I V I T I E S Ch a n g e s i n N e t A s s e t s 6 8 9 , 8 3 1 $ 1 , 2 7 9 , 4 3 6 $ ( 4 9 , 6 0 7 ) $ ( 9 2 9 , 8 2 9 ) $ 9 8 9 , 8 3 1 $ Ad j u s t m e n t s t o R e c o n c i l e C h a n g e s i n N e t A s s e t s t o N e t C a s h P r o v i d e d b y O p e r a t i n g A c t i v i t i e s De p r e c i a t i o n 1 1 , 5 6 8 9 , 4 6 4 1 2 , 4 9 8 - 3 3 , 5 3 1 De p l e t i o n - 2 1 8 - - 2 1 8 Lo s s o n A s s e t S a l e 6 3 2 ( 1 , 5 8 2 , 5 5 8 ) 7 , 9 5 7 - ( 1 , 5 7 3 , 9 6 9 ) (I n c r e a s e ) D e c r e a s e i n : Ac c o u n t s R e c e i v a b l e ( n e t ) 1 0 9 - - - 1 0 9 Ot h e r R e c e i v a b l e s ( 6 ) - - - ( 6 ) No t e R e c e i v a b l e 1 , 8 2 8 - - - 1 , 8 2 8 Pr e p a i d E x p e n s e s 4 , 0 4 9 3 , 1 1 6 4 , 4 9 3 - 1 1 , 6 5 8 Du e F r o m 1 3 , 5 9 4 - ( 1 3 , 5 9 4 ) - In c r e a s e ( D e c r e a s e ) i n : Ac c o u n t s P a y a b l e 1 3 , 9 7 7 - ( 3 , 0 3 4 ) - 1 0 , 9 4 3 Cu r r e n t P r o t i o n N o t e P a y a b l e - L a n d - ( 6 1 6 , 3 0 7 ) - - ( 6 1 6 , 3 0 7 ) De f e r r e d M e m b e r s h i p D u e s ( 4 , 6 7 1 ) - - - ( 4 , 6 7 1 ) Un a p p l i e d C r e d i t s ( 2 5 , 6 5 6 ) - - - ( 2 5 , 6 5 6 ) Du e T o - ( 1 3 , 5 9 4 ) - 1 3 , 5 9 4 - De f e r r e d R e v e n u e s ( 7 , 9 3 4 ) - - - ( 7 , 9 3 4 ) To t a l A d j u s t m e n t s 7 , 4 9 0 ( 2 , 1 9 9 , 6 6 1 ) 2 1 , 9 1 4 - ( 2 , 1 7 0 , 2 5 6 ) Ne t C a s h P r o v i d e d ( U s e d ) b y O p e r a t i n g A c t i v i t i e s : 6 9 7 , 3 2 1 ( 9 2 0 , 2 2 6 ) ( 2 7 , 6 9 3 ) ( 9 2 9 , 8 2 9 ) ( 1 , 1 8 0 , 4 2 5 ) CA S H F L O W S F R O M I N V E S T I N G A C T I V I T I E S Pu r c h a s e o f A s s e t s ( 9 , 7 4 1 ) - - - ( 9 , 7 4 1 ) Pr o c e e d s f r o m L a n d S a l e - 1 , 6 3 2 , 6 2 9 - - 1 , 6 3 2 , 6 2 9 In c r e a s e i n I n v e s t m e n t i n S u b s i d i a r i e s ( 9 2 9 , 8 2 9 ) - - 9 2 9 , 8 2 9 - Ne t C a s h P r o v i d e d ( U s e d ) I n I n v e s t i n g A c t i v i t i e s ( 9 3 9 , 5 7 0 ) 1 , 6 3 2 , 6 2 9 - 9 2 9 , 8 2 9 1 , 6 2 2 , 8 8 8 CA S H F L O W S F R O M F I N A N C I N G A C T I V I T I E S No t e P a y a b l e - B u i l d i n g - ( 7 4 , 1 4 3 ) - - ( 7 4 , 1 4 3 ) Ne t C a s h P r o v i d e d ( U s e d ) b y F i n a n c i n g A c t i v i t i e s - ( 7 4 , 1 4 3 ) - - ( 7 4 , 1 4 3 ) Ne t I n c r e a s e ( D e c r e a s e ) i n C a s h a n d C a s h E q u i v a l e n t s ( 2 4 2 , 2 4 9 ) 6 3 8 , 2 6 2 ( 2 7 , 6 9 3 ) - 3 6 8 , 3 2 0 Ca s h a n d C a s h E q u i v a l e n t s , B e g i n n i n g 7 4 3 , 0 2 1 3 9 2 , 1 7 9 1 0 4 - 1 , 1 3 5 , 3 0 4 Tr a n s f e r s I n ( O u t ) 3 0 0 , 0 0 0 ( 3 3 0 , 8 7 8 ) 3 0 , 8 7 8 - - Ca s h a n d C a s h E q u i v a l e n t s , E n d i n g 80 0 , 7 7 2 $ 6 9 9 , 5 6 3 $ 3 , 2 8 9 $ - $ 1 , 5 0 3 , 6 2 4 $ 23 JEFFERSON CITY AREA CHAMBER OF COMMERCE STATEMENTS OF FINANCIAL POSITION December 31, 2011 and 2010 2011 2010 ASSETS CURRENT ASSETS Cash and Cash Equivalents 762,775$ 800,772$ Accounts Receivable, net of allowance for doubtful accounts of $3,691 and $1,544, respectively 29,389 7,750 Accrued Interest 241 445 Prepaid Expenses 7,247 8,629 Total Current Assets 799,652 817,596 PROPERTY, BUILDING, AND EQUIPMENT Furniture and Fixtures 159,288 144,662 Less: Accumulated Depreciation (130,147) (122,794) Net Property, Building, and Equipment 29,140 21,868 OTHER ASSETS Investment in Subsidiaries 4,119,699 4,553,856 Note Receivable - 1,937 Total Other Assets 4,119,699 4,555,794 TOTAL ASSETS 4,948,491$ 5,395,258 LIABILITIES AND NET ASSETS LIABILITIES Accounts Payable and Accrued Expenses 37,162$ 41,572$ Deferred Membership Dues 103,137 110,357 Unapplied Credits 11,309 19,847 Deferred Revenue 48,858 47,210 TOTAL LIABILITIES 200,467 218,987 UNRESTRICTED NET ASSETS 4,748,024 5,176,272 TOTAL LIABILITIES AND NET ASSETS 4,948,491$ 5,395,258$ 24 JEFFERSON CITY AREA CHAMBER OF COMMERCE STATEMENTS OF ACTIVITIES For The Years Ended December 31, 2011 and 2010 2011 2010 REVENUE Membership Dues 442,479$ 454,760$ Economic Development Support 300,000 300,000 Committees 8,883 12,242 Special Events 222,649 229,346 Leadership Jefferson City 28,891 28,312 Government Relations 15,725 17,475 Publications and Marketing 23,813 16,143 Management Fees 900 164,163 Other Income 6,498 35,055 Civic Progress 27,235 26,000 Partners in Education 19,340 18,300 Investment Income 5,165 5,407 Total Revenue 1,101,578 1,307,203 EXPENSES Program Expenses Membership Affairs 11,601 10,735 Economic Development 162,055 261,867 Committees 8,936 12,628 Special Events 149,050 149,671 Leadership Jefferson City 13,701 13,535 Government Relations 9,642 16,113 Publications and Marketing 7,394 9,234 Civic Progress 50,053 35,046 Partners in Education 6,771 2,981 Community Development 4,760 2,815 Total Program Expenses 423,963 514,625 Management and General Salaries 591,374 645,626 Employee Benefits 127,424 136,833 Payroll Taxes 45,039 48,189 Other Employee Expenses 3,754 5,579 Bad Debts 42,000 44,151 Dues and Subscriptions 3,923 3,873 Insurance 8,530 8,724 Professional Fees 5,191 4,692 Rent 36,000 29,000 Telephone 15,026 16,126 25 JEFFERSON CITY AREA CHAMBER OF COMMERCE STATEMENTS OF ACTIVITIES For The Years Ended December 31, 2011 and 2010 2011 2010 EXPENSES (Continued) Postage 2,902$ 2,817$ Supplies 1,883 1,919 Printing / Stationery 5,215 4,474 Travel and Professional Development 15,268 12,618 Office Machines / Equipment 4,762 6,977 Depreciation Expense 10,367 11,568 Purchased Services 13,156 9,097 Computerization 34,088 34,708 Parking Fees 4,683 4,540 Miscellaneous 1,115 431 Total Management and General Expenses 971,700 1,031,944 Total Expenses 1,395,663 1,546,569 Change in Net Assets Before Other Income (Expense) (294,084) (239,366) Other Income (Expense) Gain (Loss) on Sale/Disposal of Assets - (632) Total Other Income (Expense) - (632) Increase (Decrease) in Net Assets Before Equity in Net Income of Wholly-Owned Subsidiaries (294,084) (239,998) Equity in Net Income of Wholly-Owned Subsidiaries (434,163) 929,829 Change in Net Assets (728,248) 689,832 NET ASSETS, BEGINNING 5,176,272 4,186,440 Transfers In (Out) 300,000 300,000 NET ASSETS, ENDING 4,748,024$ 5,176,272$ 26 JC CHAMBER 21ST CENTURY LAND INVESTMENT, LLC STATEMENTS OF FINANCIAL POSITION December 31, 2011 and 2010 2011 2010 ASSETS CURRENT ASSETS Cash and Cash Equivalents 289,883$ 699,562$ Total Current Assets 289,883 699,562 PROPERTY, BUILDING, AND EQUIPMENT Land Improvements 142,692 142,692 Less: Accumulated Depreciation (45,819) (36,354) Net Property, Building, and Equipment 96,873 106,338 OTHER ASSETS Land 3,394,573 3,394,573 Less: Accumulated Depletion (5,232) (5,232) Speculative Building 1,074,143 1,074,143 Due from JC Chamber Properties, LLC 20,000 20,000 Total Other Assets 4,483,484 4,483,484 TOTAL ASSETS 4,870,235$ 5,289,381$ LIABILITIES AND NET ASSETS LONG-TERM LIABILITIES Note Payable - Building 1,000,000 1,000,000 Total Long-Term Liabilities 1,000,000 1,000,000 TOTAL LIABILITIES 1,000,000 1,000,000 NET ASSETS UNRESTRICTED NET ASSETS Unrestricted Net Assets 3,870,235 4,289,381 Total Unrestricted Net Assets 3,870,235 4,289,381 TOTAL LIABILITIES NET ASSETS 4,870,235$ 5,289,381$ 27 JC CHAMBER 21ST CENTURY LAND INVESTMENT, LLC STATEMENTS OF ACTIVITIES For The Years Ended December 31, 2011 and 2010 2011 2010 REVENUE Quarry Contract 35$ 4,360$ Interest 343 838 Total Revenue 378 5,197 EXPENSES Land Expenses 5,494 6,552 Depreciation Expense 9,465 9,464 Depletion Expense - 218 Interest 45,625 67,633 Insurance 5,902 3,116 Land Management Fee - JCCC - 163,263 Professional fees 11,425 1,472 Taxes 23,269 26,832 Speculative Building 451 1,092 Gas Extension 3,625 25,318 Miscellaneous 41 3,358 Total Expenses 105,297 308,319 Change in Net Assets Before Other Income (104,919) (303,122) Other Income Gain (Loss) on Sale/Disposal of Assets - 1,582,558 Total Other Income - 1,582,558 Change in Net Assets (104,919) 1,279,436 NET ASSETS, BEGINNING 4,289,381 3,340,823 Transfers In (Out) (314,227) (330,878) NET ASSETS, ENDING 3,870,235$ 4,289,381$ 28 JC CHAMBER PROPERTIES, LLC STATEMENTS OF FINANCIAL POSITION December 31, 2011 and 2010 2011 2010 ASSETS CURRENT ASSETS Cash and Cash Equivalents 64$ 3,290$ Total Current Assets 64 3,290 PROPERTY, BUILDING, AND EQUIPMENT Land 15,000 15,000 Building 276,262 276,262 Building and Land Improvements 311,805 313,007 Less: Accumulated Depreciation (333,672) (323,083) Net Property, Building, and Equipment 269,395 281,186 TOTAL ASSETS 269,458$ 284,475$ LIABILITIES AND NET ASSETS LONG TERM LIABILITIES Due to JC Chamber 21st Century Land Investment, LLC 20,000 20,000 Total Long Term Liabilities 20,000 20,000 TOTAL LIABILITIES 20,000 20,000 UNRESTRICTED NET ASSETS Unrestricted Net Assets 249,458 264,475 Total Unrestricted Net Assets 249,458 264,475 TOTAL LIABILITIES NET ASSETS 269,458$ 284,475$ 29 JC CHAMBER PROPERTIES, LLC STATEMENTS OF ACTIVITIES For The Years Ended December 31, 2011 and 2010 2011 2010 REVENUE Rental Income 42,000$ 33,800$ Total Revenue 42,000 33,800 EXPENSES Building Maintenance 8,719 13,574 Depreciation Expense 11,529 12,498 Insurance 4,567 4,493 Professional Fees 1,075 487 Janitorial Service 9,053 9,000 Supplies 3,719 3,566 Trash 956 1,006 Utilities 13,665 13,787 Taxes 11,470 11,534 Lawn Care and Snow Removal 3,205 3,100 Miscellaneous 2,572 2,405 Total Expenses 70,530 75,450 Change in Net Assets Before Other Income (Expense) (28,530) (41,650) Other Income (Expense) Gain (Loss) on Sale/Disposal of Assets (714) (7,957) Total Other Income (Expense) (714) (7,957) Change in Net Assets (29,244) (49,607) NET ASSETS, BEGINNING 264,475 283,204 Transfers In (Out) 14,227 30,878 NET ASSETS, ENDING 249,458$ 264,475$ 30 COMMUNICATION OF AUDIT RESULTS JEFFERSON CITY AREA CHAMBER OF COMMERCE AND SUBSIDIARIES December 31, 2011 March 29, 2012 To the Board of Directors of the Jefferson City Area Chamber of Commerce and Subsidiaries: We have audited the financial statements of Jefferson City Area Chamber of Commerce and Subsidiaries for the year ended December 31, 2011, and have issued our report thereon dated March 29, 2012. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated February 14, 2011. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Chamber are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2011. We noted no transactions entered into by the Chamber during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: Management’s estimate of the useful lives of depreciable assets used to calculate depreciation expense is based on past experience. We evaluated the key factors and assumptions used to develop the useful lives estimate in determining that it is reasonable in relation to the financial statements taken as a whole. Management’s estimate of the allowance for doubtful accounts. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the financial statements taken as a whole. The financial statement disclosures are neutral, consistent, and clear. 3702 West Truman Boulevard, Suite 213 • Jefferson City, MO 65109 573-893-7700 • Fax 573-893-6649 Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. All of the Chamber’s personnel cooperated with us fully during our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated March 29, 2012. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the Chamber’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues Generally accepted accounting principles (GAAP) requires classification of net assets according to the existence of either internal or external restrictions as to how resources may be spent/used. Currently, the Chamber manually tracks funds donated/received for Civic Progress separately from other funds, such as general operating expenses. However, no formal recognition or designation has been made by the Board of Directors as to whether these funds have restrictions as to how they can be spent/used as of the date of this letter. It is our recommendation for the Board of Directors to formally classify these funds according to the definitions set forth by GAAP. The definitions are as follows: Temporarily Restricted: This classification comes from external restriction(s). Net assets are classified as temporarily restricted if their use has been limited by donor stipulations to a specific time period or purpose. Example: The persons providing the support are doing so with the requirement those funds be used only for Civic Progress activities. Unrestricted - Designated: This classification comes from internal restriction(s). Net assets are classified as unrestricted - designated if their use has been limited by a governing body. Example: The Board of Directors determines these funds may be used only for Civic Progress activities. Unrestricted: No restriction(s) to the use of the funds exists. Example: As of the date of this letter, this is how the funds are currently classified. Note: The definition of permanently restricted net assets has been omitted as it is believed it does not apply to this situation. We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Chamber’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. This information is intended solely for the use of the Board of Directors and the management of Jefferson City Area Chamber of Commerce and Subsidiaries and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, GRAVES AND ASSOCIATES, CPAs, LLC Jefferson City, Missouri MANAGEMENT LETTER JEFFERSON CITY AREA CHAMBER OF COMMERCE AND SUBSIDIARIES December 31, 2011 To the Board of Directors and Management of Jefferson City Area Chamber of Commerce and Subsidiaries Jefferson City, Missouri: In planning and performing our audit of the financial statements of Jefferson City Area Chamber of Commerce and Subsidiaries as of and for the year ended December 31, 2011, in accordance with auditing standards generally accepted in the United States of America, we considered Jefferson City Area Chamber of Commerce and Subsidiaries’ internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Chamber’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Chamber’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 3702 West Truman Boulevard, Suite 213 • Jefferson City, MO 65109 573-893-7700 • Fax 573-893-6649 During our audit we became aware of instances for the communication of control deficiencies: Segregation of Duties We are required to assess the internal controls of the Chamber, which includes proper segregation of duties. As in many smaller to medium-sized organizations, it is difficult to obtain optimum segregation of duties due to limited number of employees. We recommend management review these processes and adjust them according to optimize the functionality of internal controls. Oversight of the Financial Reporting Progress Establish internal control over financial statement preparation and review The Chamber’s management is responsible for establishing and maintaining internal control and for the fair presentation of the financial statements, accompanying schedules, and disclosures to the financial statements, in conformity with accounting principles generally accepted in the U.S. The Chamber does not have a system of internal control that would provide management with reasonable assurance that the Chamber’s financial statements, accompanying schedules, and related disclosures are complete and presented in accordance with accounting principles generally accepted in the U.S. As such, management has requested us to draft the financial statements and accompanying schedules from the trial balance, including the related note disclosures. We will review the status of these comments during our next audit engagement. We have already discussed these comments with the appropriate Chamber personnel. We wish to thank management and staff for their support and assistance during our audit. This communication is intended solely for the information and use of management, the Board of Directors, and others within the organization, and is not intended to be and should not be used by anyone other than these specified parties. GRAVES AND ASSOCIATES, CPAs, LLC Jefferson City, Missouri March 29, 2012