greater shreveport chamber of...

Greater Shreveport Chamber of CommerceShreveport, Louisiana

Financial Statements

As of and for the Year Ended December 31,2007With Supplemental Information Schedules

Under provisions of state law, this report is a publicdocument, A copy of the report has been submitted tothe entity and other appropriate public officials. Thereport is available for public inspection at the BatonRouge office of the Legislative Auditor,and, whereappropriate, at the office of theyparish erk of court.

Release Date


Table of Contents

Page No.

Independent Auditors' Report 1

Financial Statements:

Combined Statement of Financial Position 2

Combined Statement of Activities 3

Combined Statement of Functional Expenses 4

Combined Statement of Cash Flows 5

Notes to Financial Statements 6-11

Combining Schedules:

Combining Schedule of Financial Position 12

Combining Schedule of Activities 13

Report on Internal Control Over Financial Reporting and on Complianceand Other Matters Based on An Audit of Financial StatementsPerformed in Accordance With Government Auditing Standards 14 -15

Summary Schedule of Audit Findings 16

COOK&MOREHART

Certified Public Accountants

1215 HAWN AVENUE - SHREVEPORT, LOUISIANA 71107 • P.O. BOX 78240 • SHREVCPQRT, LOUISIANA 71137-8240

TRAVIS H. MOREHART. CPA TELEPHONE (318) 213-5415 FAX pl8) 222-5441A. EDWARD BALL CPAVICKIE O. CASE, C?A

MEMBERAMCfcJCAN INSTITUTE

C BRYAN COYLE, CPA CERTIFIED PUBLIC ACCOUNTANTS

SOCIETY OP LOUISIANACERTIFIED PUBLIC ACCOUNTANTS

Independent Auditors' Report

To the Board of DirectorsGreater Shreveport Chamber of CommerceShreveport, Louisiana

We have audited the accompanying combined statement of financial position of the Greater ShreveportChamber of Commerce as of December 31, 2007, and the related combined statements of activities,functional expenses and cash flows for the year then ended. These combined financial statements are theresponsibility of the Greater Shreveport Chamber of Commerce's management. Our responsibility is toexpress an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued bythe Comptroller General of the United States. Those standards require that we plan and perform the audit toobtain reasonable assurance about whether the combined financial statements are free of material misstatement.An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the combinedfinancial statements. An audit also includes assessing the accounting principles used and significant estimatesmade by management, as well as evaluating the overall financial statement presentation. We believe that ouraudit provides a reasonable basis for our opinion.

In ouropinion, the combined financial statements referred to above present fairly, in all material respects, thefinancial position of the Greater Shreveport Chamber of Commerce as of December 31, 2007, and thechanges in Its net assets and its cash flows for the year then ended, in conformity with accounting principlesgenerally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated June 8,2008, onour consideration of the Greater Shreveport Chamber of Commerce's internal control over financial reportingand on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreementsand other matters. The purpose of that report is to describe the scope of our testing of internal control overfinancial reporting and compliance and the results of that testing, and not to provide an opinion on the internalcontrol over financial reporting or on compliance. That report is an integral part of an audit performed inaccordance with Government Auditing Standards and important for assessing the results of our audit

The accompanying supplemental schedules shown on pages 12-13 are presented for the purpose ofadditional analysis and are not a required part of the financial statements of the Greater Shreveport Chamberof Commerce. Such information has been subjected to the procedures appNed in the audit of the financialstatements and, in our opinion, is fairly stated in all material respects in relation to the financial statementstaken as a whole.

Cook and MorehartCertified Public AccountantsJune 8, 2008


Combined Statement of Financial PositionDecember 31,2007

(with comparative amounts for 2006)

Assets 2007 2006

Current assets:Cash arid cash equivalents $ 238,830 $ 183,988Investments 780,163 1,060,012Grant receivable 56,422 24,249Other receivables 46,813 89,037Unconditional promises to give 399,660 286,114Prepaid expenses 43,422 31.003

TotaJ current assets 1.565.310 1.677.403

Noncurrent assets:Investment held for endowment purposes 349,444 349,461Investment held for land development 114,720 103,472Unconditional promises to give 1,041,988 902,696Land held for development 1,854,741 1,868,163Property and equipment net 643,381 676,056

Total noncurrent assets 4,004,274 3,899,848

Total Assets $ 5.569,584 $ 5,577.251

Liabilities and Net Assets

Current liabilities:Accounts payable and accrued expenses $ 403,953 $ 331,922Deferred revenue 18,857 97,906

Total current liabilities 422.810 429.828

Net assetsUnrestricted:

Operating 761,368 973,124Designated 96,237 91,854Fixed assets 643,381 676,056Land held for industrial park 1,854,741 1,868,163

Temporarily restricted 1,498,248 1,245,427Permanently restricted 292.799 292,799

TotaJ net assets 5,146.774 5,147,423

TotaJ Liabilities and Net Assets $ 5,569,584 $ 5.577.251

The accompanying notes are an integral part of the financial statements.

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Combined Statement of Cash FfowsFor the Year Ended December 31, 2007

(with comparative amounts for 2006)

2007 2006Operating Activities

Changes in net assetsAdjustments to reconcile change in net assets to

net cash provided by operating activities:DepreciationLoss on DisposalNet realized and unrealized (gains)/losses on investments

Interest and dividends restricted for investment In endowment(Increase) decrease in operating assets:

Grants receivableOther receivablesUnconditional promises to givePrepaid expenses

increase (decrease) in operating liabilities:Accounts payable and accrued expensesDeferred revenue

Discount on unconditional promisesNet cash provided (used) by operating activities

Investing Activities

Proceeds from sale of investmentsPurchase of investmentsPayments for property and equipment

Net cash provided (used) by investing activities

Financing Activities

Interest and dividends restricted for investment in endowment

Net decrease in cash and cash equivalents

Cash and cash equivalents as of beginning of year

Cash and cash equivalents as of end of year

(649) $

19,095

51,842

186,988

884.113

65,43410,716

(24,511)

(19,095)

(32,173)42,224

(349,691)(12,419)

72,031(79,049)96,653

(230,329)

71,472

(100,455)

(18,632)

16,467(17,165)

(1,257,470)10,339

(23,980)10,423

174,863(250,025)

350,438(54,603)(32,759)263,076

229,264(57,496)(13,210)158,558

18,632

(72,835)

259.823

238,830 $ 186,988

The accompanying notes are an integral part of the financial statements.


Notes to Financial StatementsDecember 31,2007

{1) Summary of Significant Accounting Policies

A. Principles of Combination

The accompanying financial statements reflect the combined financial statements of the GreaterShreveport Chamber of Commerce (the Chamber) and all related entities as described below.The members of the Chamber elect the board of directors of the Chamber, and the ExecutiveCommittee of the Chamber serves as the board of Northwest Louisiana Economic DevelopmentFoundation, Inc. The Chamber board of directors also serves as the board of directors for theGreater Shreveport Industrial Park Development Foundation, Inc. The Chamber and these otherentities share common facilities and personnel. Material interorganization transactions andbalances have been eliminated.

B. Nature of Activities

The Greater Shreveport Chamber of Commerce - This Is a nonprofit organization incorporatedunder the laws of the State of Louisiana and is exempt from federal income tax under Section501(c)6 of the Internal Revenue Code. Activities within this entity are accounted for in three funds.

General fund - accounts for the general operations and activities of the Chamber.

Minority Business Council & Women's Business Council - provide professional programsthat inform women and minorities in business about current business conditions.

I-49 North Coalition - raise money to lobby for the completion of 1-49 to Arkansas-Louisiana state line.

Northwest Louisiana Economic Development Foundation. Inc. - Ttiis is a non-profit organizationincorporated under the laws of the State of Louisiana and is exempt from federal income tax underSection 501 (c)3 of the Internal Revenue Code. Activities within this entity are primarily related toeconomic development and education.

Greater Shreveport Industrial Park Development Foundation. Inc. - This is a non-profitorganization incorporated under the laws of the State of Louisiana and is exempt from federalincome tax under Section 501 (c)3 of the Internal Revenue Code. Activities within this entity areprimarily related to industrial park development.

C. Basis of Accounting

The financial statements of the Chamber have been prepared on the accrual basis of accounting.

D. Use of Estimates

Management uses estimates and assumptions in preparing financial statements. Those estimatesand assumptions affect the reported amounts of assets and liabilities, the disclosure of contingentassets and liabilities, and reported revenues and expenses. Actual results could differ from thoseestimates.

(Continued)

Greater Shreveport Chamber of CommerceShreveport. Louisiana


(Continued)

E. Basis of Presentation

Financial statement presentation follows the recommendations of the Financial AccountingStandards Board in its Statement of Financial Accounting Standards (SFAS) No. 117. FinancialStatements of Not-for-Profit Organizations. Under SFAS No. 117, the Organization is required toreport information regarding its financial position and activities according to three classes of netassets: unrestricted net assets, temporarily restricted net assets, and permanently restricted netassets.

F. Deferred Revenue

Income from membership dues and other Chamber events is deferred and recognized over theperiods to which the dues and events relate.

G. Cash and Cash Equivalents

For purposes of the Statement of Cash Flows, the Chamber considers all un restricted highly liquidinvestments with an initial maturity of three months or less to be cash equivalents.

H. Promises to Give

Unconditional promises to give are recognized as revenues or gains in the period the promise togive is received and as assets, decreases of liabilities, or expenses depending on the form of thebenefits received. Conditional promises to give are recognized when the conditions on which theydepend are substantially met

I. Investments

The Chamber carries investments in marketable securities with readily determinate fair values attheir fair values in the statement of financial position. Unrealized gains and losses are included inthe change in net assets in the accompanying statement of activities.

J. Property and Equipment

Property, equipment, and leasehold improvements are carried at cost or, if donated, at theapproximate fair value at the date of donation. Depreciation is provided on the straight-fine methodover the estimated useful lives of the assets. Amortization of leasehold improvements is providedon the straight-line method over the remaining term of the lease or the useful life of theimprovement, whichever is shorter. The Chamber has adopted a policy of capitalizing all assetswith a unit value of $1.000 or more.

K. Restricted and Unrestricted Revenue and Support

Support that Is restricted by the donor is reported as an increase in unrestricted net assets if therestriction expires in the reporting period in which the support is recognized. Ail other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets,depending on the nature of the restriction. When a restriction expires {that is, when a stipulatedtime restriction ends or purpose restriction is accomplished), temporarily restricted net assets arereclassifiecf to unrestricted net assets and reported in the statement of activities as net assetsreleased from restrictions.

(Continued)

7



(Continued)

L. Advertising Costs

The Chamber uses advertising to promote its services among the community It serves. The costsof advertising are expensed as incurred. During 2007, advertising costs totaled $225,053. TheChamber was reimbursed $73.248 under a contract with the City of Shreveport to plan andimplement a comprehensive marketing program to recruit new businesses, encourage job growthin primary growth industries, promote the entertainment industry for downtown Shreveport, andenhance the area economy.

M. Comparative Financial Information

The financial statements include certain prior-year summarized comparative information In totalbut not by net asset class. Such information does not include sufficient detail to constitute apresentation in conformity with generally accepted accounting principles. Accordingly, suchinformation should be read In conjunction with the Chamber's financial statements for the yearended December 31, 2006, from which the summarized information was derived.

(2) Concentrations of Credit Risk

Concentrations of credit risk with respect to promises to give are limited due to the large number ofcontributors comprising the Chamber's contributor base and their dispersion across different industries.As of December 31, 2007, the Chamber had no significant concentrations of credit risk in relation topromises to give.

The Chamber maintains cash balances at several financial institutions located in the Shreveport area.Accounts at each institution are insured by the Federal Deposit Insurance Corporation (FDIC) up to$100,000. At December 31, 2007, total cash balances held at financial institutions was $250,112. Ofthis amount $239,717 was secured by FDIC, and $10,395 was unsecured.

(3) Cash and Cash Equivalents

Cash and cash equivalents consist of the following:Cash, non-interest bearing $ 104,150Cash, interest bearing, daily simple interest 134.680

S 238.830

(4) Investments

Investments as of December 31,2007 consisted of the following:

2007Fair Value Cost

Equities $ 559,999 $ 501,306Corporate bonds 316,687 315,262Other 18.197 18.197

S 894.883 $ 834.765

Of this amount $114,720 is shown as a noncurrent asset and is held for land development Investmentreturn for the year ended December 31,2007 was $64,782, which consisted of $35,508 interest anddividends, $24,013 unrealized toss, and $53,287 realized gain.

(Continued)



(Continued)

(5) Investment Held for Endowment Purposes

investments held for endowment purposes as of December 31, 2007 consisted of the following:

2007Fair Value Cost

Money fund $ 20,829 $ 20,829Corporate bonds 328.615 328.637

S 349.444

Investment return for the year ended December 31, 2007 was $23,388, which consisted of $19,096interest and dividends and $4,292 unrealized gain.

(6) Grants Receivable

The Chamber receives a federal grant that provides reimbursement of allowable costs under contract.This balance represents amounts due from the funding agency at December 31,2007, but not receiveduntil after that date.

(7) Other Accounts Receivable

The other accounts receivable balance at December 31, 2007 is comprised of membership dues,riverboat boarding fees, and other miscellaneous amounts due at December 31,2007 but not receiveduntil after that date. The other accounts receivable are shown net of a reserve for uncollectibleaccounts of $42,316.

(8) Promises to Give

The Chamber began a new economic development campaign in 2006 entitled Forward NorthLouisiana. Promises to give are restricted to payment of costs associated with economic developmentprojects and projects supporting the economic growth of Shreveport and Northwest Louisiana. Thepromises to give are shown net of an allowance for uncollectible promises to give of $271.500. Long-term promises to give are discounted at a rate of 3%.

Unconditional promises to give at December 31, 2007 were as follows:

Receivable in less than one year $ 399.660

Receivable in one to five years 1,138,841Less discount on promises ( 96.853i

Net long-term 1.041.988

Net unconditional promises to give atDecember 31, 2007

(Continued)

9


Notes to Financial StatementsDecember 31, 2007

(Continued)

(9) Land Held for Development

This represents $951,105 of land purchased in Caddo Parish to develop an industrial park, as well as$903,636 of development expenses. A portion of the land was purchased with city, state, and parishfunds through cooperative endeavor agreements that provide certain restrictions on the property's saleor transfer.

(10) Property and Equipment

Property and equipment at December 31,2007, with estimated depreciable life, are summarized asfollows:

Land N/A $ 100,000Leasehold Improvements 30 years 1,247,382Furniture, fixtures, equipment 5-10 years 376,658Idle property 9.532

1,733,572Accumulated Depreciation ( 1.090.1911

£ 643.381

Depreciation expense for the year ended December 31, 2007 was $65,434.

(11} Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses at December 31, 2007, consisted of the following:

Accounts payable $ 51,561Wages payabfe 89,421Payroll taxes payable 14,814Accrued leave payable 134,425Other payables 113.732

(12) Restrictions on Net Assets

Temporarily restricted net assets are available for the following purposes, or periods:

For subsequent year's activities - capital campaign $ 1,441,648Earnings on investment - endowment 56.600

S 1.498.248

Permanently restricted net assets consist of a donation received by the Chamber to establish and fundthe J. Pat Beaird Memorial Industry of the Year Award. The donor specified that the funds were to beInvested by the Chamber and the annual income derived therefrom is to be used to underwrite theexpenses of this annual award ceremony,

(13) Designated Net Assets

Unrestricted net assets of the Chamber at December 31, 2007 are designated for the following:

Building reserves

(Continued)

10


Notes to Financial StatementsDecember 31, 2007

(Continued)

(14) Employee Benefit Plans

Effective April 1,1999, the Chamber began participating in a 401 (k) profit-sharing plan whereby theChamber makes contributions to the Plan each year equal to 8% of participating employee'scompensation. Total expense for the year ended December 31, 2007, was approximately $80,690.

(15) Operating Leases

The Chamber leases a building from the City of Shreveport requiring monthly payments of $2,250 forthirty years with the option to renew for five successive ten year periods. The lease may be canceledat the lessor's option at any time with a partial reimbursement to the Chamber for leaseholdimprovements. The primary term of the lease expires in February, 2012. During 2003, the Chamberdiscontinued paying the monthly rent to the City in lieu of building repairs paid for by the Chamber TheChamber resumed making monthly payments to the City in September 2006, after costs of repair workhad been recouped. The total lease payments paid on this lease for the year ended December 31,2007 was $27,000.

The Chamber leases a phone system requiring monthly payments of $293 for five years. The (easepayments paid on this lease for the year ended December 31, 2007 was $2,193. In July 2007 theChamber purchased the phone system for $4,447.

The Chamber leases a postage machine requiring monthly payments of $186 for three years. Thelease payments paid on this lease for the year ended December 31, 2007 was $2,671.

The future minimum lease payments under the operating leases are as follows:

2008 29,2282009 29,0432010 27,0002011 27,0002012 27,000Thereafter 2.250

S 141.521

(16) Sub-Lease Revenue

During 2003, the Chamber began leasing office space to a third party. Total rental revenue under thelease agreement was $28,260 for 2007.

The future rental receipts under existing lease agreements, are as follows:

Years ending December 31.

2008 S 11.775

(17) Subsequent Event

Beginning January 1,2008, the Northwest Louisiana Economic Development Foundation (Foundation)established a board independent of the Greater Shreveport Chamber of Commerce. As a result, theFoundation will not be combined with the Greater Shreveport Chamber of Commerce after December31,2007.

11


Combined Schedule of Financial PositionDecember 31,2007

Assets

Current assets:Cash and cash equivalentsInvestmentsGrant receivableOther receivablesUnconditional promises to givePrepaid expenses

Total current assets

Noncurrent assets:Investment held for endowment purposesInvestment held for land developmentUnconditional promises to giveLand held for developmentProperty and equipment, net

Total noncLirrerrt assets

Total Assets

Liabilities and Net Assets

Current liabilities:Accounts payable and accrued expense $Deferred revenue

Total current liabilities

Net assetsUnrestricted:

Operating, undesignatedOperating, designatedFixed assetsLand held for industrial park

Temporarily restrictedPermanently restricted

Total net assets

Total Liabilities and Net Assets

GeneralFund NLEDF, Inc. GSIPDF. Inc.

$

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$

> $

$

217,480 $50,00056,42220,071

42,422

386,395

269,342

269,342

655,737 $

289,234 $18,857

308,091

(17,933)96,237

269,342

347,646

655,737 $

18,946 $ 2,404 $30,163 700,000

13,992 12,750399,660

1,000

463,761 715,154

349,444114,720

1,041,9881.854.74T

374,039

1,880,191 1,854,741

2,343,952 $ 2,569,895 $

384 $ 114,335 $

384 114,335

178,482 600.819

374,0391,854,741

1,498,248292,799

2,343,568 2,455,560

2,343,952 $ 2,569,895 $

Totals

238,830780,16356,42246,813

399,66043,422

1,565,310

349.444114,720

1.041,9881,854,741

643,381

4,004,274

5,569,584

403,95318,857

422,810

761,36896,237

643,3811,854,7411,498,248

292,799

5.146,774

5,569,584

12


Combined Schedule of ActivitiesFor the Year Ended December 31, 2007

Revenues, gains, and supportMembership duesPrograms and projectsRent and royaltiesGrants and contractsContributions and donationsInterest and dividendsInvestment returnMiscellaneous

Total revenues, gains, and support

Expenses and Tosses:

Supporting servicesGeneral and administrativeMarketing and fund raising

Programs servicesPublic RelationsGovernment relationsMembership servicesEconomic developmentGovernment procurement center

Total expenses

Change in net assets, before transfers

Interfund Transfers:

Operating transfers inOperating transfers out

Change in net assets

Net assets, beginning of year

Net assets, end of year

GeneralFund

$ 611,275233,20329,790

243,4355,2501,260

64,782124,342

1,313,337

738,514109,161

70,446202,591401,558727,015209,188

2,458,473

(1,145,138)

1,254,799

109,663

237,983

$ 347,646

NLEDF, Inc. GSIPDF, Inc.

$ 10,565 $ $

319,469 40,423244,960803,143

1,10323,3888.842

1,411,470 40,423

10,3369,000

288,070

297,070 10,336

1,114,400 30,087

(1,095,799) (159,000)

18.601 (128,913)

2,324,967 2,584,473

$ 2,343,568 $ 2,455,560 $

Totals

621,840233,203389.682488,395808,393

2t36388.170

133,184

2,765,230

748,850118,161

70.446202.591401,558

1.015,085209,188

2,765,879

(649)

1,254,799(1,254,799)

(649)

5,147,423

5,146.774

13

COOK & MOREHART

Certified Public Accountantsms HAWN AVENUE • SHREVEPQRT, LOUISIANA 7u w • P.O. BOX TWO - SHREVEPQRT, LOUISIANA Tim-azw

TRAVIS H. MOREHART. CPA TELEPHONE (318) 222-54IS FAX (318) 222-5441A. EDWARD BALL, CPAVICKIE D. CASE. CPA

MEMBERAMERICAN INSTITUTE

C. BRYAN C0YLE. CPA CERTIFIED PUBLIC ACCOUNTANTS

SOCIETY OFLOUIS1ANACERTIFIED PUBLIC ACCOUNTANTS

Report on Internal Control Over Financial Reporting and onCompliance and Other Matters Based on An Audit of Financial

Statements Performed in Accordance With Government Auditing Standards

To the Board of DirectorsGreater Snreveport Chamber of CommerceShreveport, Louisiana

We have audited the financial statements of Greater Shreveport Chamber of Commerce as of and for the yearended December 31,2007, and have issued our report thereon dated June 8,2008. We conducted our auditin accordance with auditing standards generally accepted in the United States of America and the standardsapplicable to financial audits contained in Government Auditing Standards, issued by the Comptroller Generalof the United States.

Internal Control Over Financial ReportingIn planning and performing our audit, we considered Greater Shreveport Chamber of Commerce's internalcontrol over financial reporting as a basis for designing our auditing procedures for the purpose of expressingour opinion on the financial statements, but not for the purpose of expressing an opinion on the effectivenessof the Greater Shreveport Chamber of Commerce's internal control over financial reporting. Accordingly, wedo not express an opinion of the effectiveness of the Greater Shreveport Chamber of Commerce's internalover financial reporting.

A control deficiency exists when the design or operation of a control does not allow management oremployees, in the normal course of performing their assigned functions, to prevent or detect misstatements ona timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, thatadversely affects the organizations' ability to initiate, authorize, record, process, or report financial data reliablyin accordance with generally accepted accounting principles, such that there is more than a remote likelihoodthat a misstatement of the organizations' financial statements that is more than inconsequential will not beprevented or detected by the organizations' internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in morethan a remote likelihood that a material misstatement of the financial statements will not be prevented ordetected by the organizations1 internal control.

Our consideration of internal control over financial reporting was for the limited purpose described in the firstparagraph of this section and would not necessarily identify all deficiencies in internal control that might besignificant deficiencies or material weaknesses. We did not identify any deficiencies in internal control overfinancial reporting that we consider to be material weaknesses, as defined above.

14

Compliance and Other MattersAs part of obtaining reasonable assurance about whether Greater Shreveport Chamber of Commerce'sfinancial statements are free of material misstatement, we performed tests of its compliance with certainprovisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a directand material effect on the determination of financial statement amounts. However, providing an opinion oncompliance with those provisions was not an objective of our audit, and accordingly, we da not express suchan opinion. The results of our tests disclosed no instances of noncompliance or other matters that arerequired to be reported under Government Auditing Standards.

This report is intended solely for the information and use of management and others within the organization andis not intended to be and should not be used by anyone other than these specified parties.

Cook & MorehartCertified Public AccountantsJune 8, 2008


Summary Schedule of Audit FindingsDecember 31, 2007

Summary Schedule of Prior Audit Findings

There were no findings or questioned costs for the prior year audit for the year ended December 31, 2006.

There was one management letter comment for the prior year audit for the year ended December 31,2006, as follows:

Report Reconciliation

Improvement noted.

Corrective Action Plan for Current Year Audit Findings

There are no findings, questioned costs, or management letter comments for the current year audit for theyear ended December 31, 2007.

16

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