Wildlife Safari Financial Statements 2015

SAFARI GAME SEARCH FOUNDATION
dba WILDLIFE SAFARI
FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2015 with Comparative Totals For 2014 SAFARI GAME SEARCH FOUNDATION
dba WILDLIFE SAFARI
YEAR ENDED SEPTEMBER 30, 2015
TABLE OF CONTENTS
INDEPENDENT AUDITORS' REPORT
1-2
FINANCIAL STATEMENTS:
Statement of Financial Position Statement of Activities Statement of Functional Expenses Statement of Cash Flows Notes to Financial Statements 3-4
5-6
7-8
9 - 10
11 - 20
3'JR NE \'iillcill'ster
Post Office Box 2350
wicks
emmett~
Roseburg, OR 97470
CERTIFIED PUBLIC ACCOUNTANTS (')41) 673-4423
Fax rS41) 673-0287
www.wicksemmett.com
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
Safari Game Search Foundation
dba Wildlife Safari
Winston, Oregon
We have audited the accompanying financial statements of Safari Game Search Foundation dba
Wildlife Safari (a non-profit organization), which comprise the statement of financial position as of
September 3D, 2015, and the related statements of activities, functional expenses, and cash flows
for the year then ended, and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express 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
of America. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity's preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express
no such opinion. An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of significant accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our qualified audit opinion.
1
Basis for Qualified Opinion
As explained in Note 6 to the financial statements, the Foundation has not capitalized the value of
certain animals on exhibit. In our opinion, accounting principles generally accepted in the United
States of America require that such amounts be capitalized in their entirety. The effects on the
accompanying financial statements of the failure to capitalize the value of certain animals on
exhibit have not been determined.
Qualified Opinion
In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion
paragraph, the financial statements referred to above present fairly, in all material respects, the
financial position of Safari Game Search Foundation as of September 30, 2015 and the changes in
its net assets and its cash flows for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Report on Summarized Comparative Information
We have previously audited the Safari Game Search Foundation's 2014 financial statements, and
we expressed a qualified opinion on those audited financial statements in our report dated May 20,
2015. In our opinion, the summarized comparative information presented herein as of and for the
year ended September 30, 2014, is consistent, in all material respects, with the audited financial
statements from which it has been derived. See Note 1 N.
Roseburg, Oregon
February 22, 2016
2
FINANCIAL STATEMENTS SAFARI GAME SEARCH FOUNDATION DBA WILDLIFE SAFARI
STATEMENT OF FINANCIAL POSmON
SEPTEMBER 30, 2015
With Comparative Totals for 2014
2014
2015
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents
Accounts Receivable
Employee Receivables
Grants and Pledges Receivable
$
Deferred Payment - Social Media
Inventories
Prepaid Expenses
Cash Held for Investment Purposes
Total Current Assets
PROPERTY AND EQUIPMENT, NET
250,042
69,013
855
50,000
1,252
201,503
93,208
1,054,315
$
310,863
69,272
(239)
198,285
83,690
26,094
1,720,188
687,965
2,467,580
2,185,450
910,026
2,569
529,363
998,324
1,539,827
529,363
1,441,958
3,067,514
OTHER ASSETS
Interest in Assets Held by Oregon Community
Foundation
Investments
Animals on Exhibit
Total Other Assets
TOTAL ASSETS
$
5,629,726
$
5,940,929
The accompanying notes are an integral part of these financial statements.
3
SAFARI GAME SEARCH FOUNDATION DBA WILDLIFE SAFARI STATEMENT OF FINANCIAL POSmON (Continued) SEPTEMBER 30, 2015 With Comparative Totals for 2014 2014
2015
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts Payable - Gift Shop
Accounts Payable
$
Payroll and Other Accrued Expenses
Compensated Absences Payable
Other Payables
Gift Cards Outstanding
Intern Housing Deposits
Secured Note Payable
Current Portion Long-Term Debt
Total Current Liabilities
21,797
81,108
73,189
42,733
4,492
446
500
26,069
61,894
$
34,432
59,731
74,309
34,909
3,265
450
250,141
54,465
312,228
511,702
228,934
260,778
228,934
260,778
541,162
772,480
4,004,942
1,083,622
3,916,096
1,252,353
5,088,564
5,168,449
LONG-TERM LIABILITIES
Long-Term Debt, Net of Current Portion
Total Long-Term Liabilities
Total Liabilities
NET ASSETS
Unrestricted
Temporarily Restricted
Total Net Assets
TOTAL LIABILITIES AND NET ASSETS
$
5,629,726
$
5,940,929
The accompanying notes are an integral part of these financial statements.
4
SAFARI GAME SEARCH FOUNDATION DBA WILDLIFE SAFARI
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2015
With Comparative Totals for 2014
Temporarily
Unrestricted
2014 Totals
2015 Totals
Restricted
REVENUE, GAINS AND OTHER SUPPORT
REVENUE
Admissions and Auxiliary Activities
Membership Revenues
Gift Shop, Photos, and Brochure Sales
Less: Cost of Goods Sold
$
2,717,420
264,888
$
$
2,717,420
264,888
$
2,392,426
246,369
670,782
670,782
{287 (123)
{287(123)
555,304
{226,286)
383,659
383,659
329,018
371,219
(142,474)
371,219
{142,474)
299,898
{113 (681)
228,745
228,745
186,217
204,697
163,961
117,823
244,661
131,514
168,646
135,450
203,610
40,924
34,846
40,924
34,846
9,462
9,462
39,309
39,665
2,000
33,801
4,411,086
3,908,025
Gross Margin on Gift Shop, Photos and
Brochures
Food Concession Revenue
Less: Cost of Goods Sold
Gross Margin on Food Concession
PUBLIC SUPPORT
Contributions
Special Event Revenue
118,879
64,411
Grants and Contracts
In-Kind Revenue
85,818
99,550
117,823
244,661
OTHER GAINS AND REVENUE
Investment Income
Value of Camp Tickets Redeemed
Animal Sales
Other Income
Revenue, Gains and Other Support
3,863,234
547,852
NET ASSETS RELEASED FROM RESTRICTIONS
Satisfaction of Purpose Restrictions
Total Revenue, Gains and Other Support
670,430
(670,430)
4,533,664
{122,578)
4,411,086
3,908,025
The accompanying notes are an integral part of these financial statements.
5
SAFARI GAME SEARCH FOUNDATION DBA WILDLIFE SAFARI
STATEMENT OF ACTIVmES (Continued)
FOR THE YEAR ENDED SEPTEMBER 30, 2015
With Comparative Totals for 2014
Temporarily
Unrestricted
2014 Totals
2015 Totals
Restricted
EXPENSES AND LOSSES
PROGRAM SERVICES
Public Exhibits
Educational
Auxiliary Services
Indirect Program Services
$
2,304,804
89,705
545,539
576,621
$
-
$
2,304,804
89,705
545,539
576,621
$
1,990,884
90,225
515,261
495,651
SUPPORT SERVICES
Management and General
Fundraising
Total Operating Expenses
INCOME (LOSS) PRIOR TO OTHER GAINS
AND LOSSES
625,732
191,972
625,732
191,972
570,177
189,421
4,334,373
4,334,373
3,851,619
199,291
(122,578)
76,713
56,406
(16,293)
(78,693)
(8,190)
(8,481)
9,325
(38,807)
(24,483)
(87,174)
9,325
(41,553)
(12,713)
(27,769)
75,735
10,634
108,796
(3,852)
(110,445)
(46,153)
(156,598)
163,544
88,846
(168,731)
(79,885)
219,950
OTHER GAINS AND LOSSES
Investment Expense
Realized Gain (Loss) on Investments
Endowment Earnings
Unrealized Gain (Loss) on Investments
(Gain) Loss on Disposal of Assets
(2,746)
(12,713)
Total Other Gains and Losses
CHANGE IN NET ASSETS
NET ASSETS, BEGINNING OF YEAR
NET ASSETS, END OF YEAR
3,916,096
$
4,004,942
5,168,449
1,252,353
$
1,083,622
$
5,088,564
4,948,499
$
5,168,449
The accompanying notes are an integral part of these financial statements.
6
SAFARI GAME SEARCH FOUNDATION DBA WILDLIFE SAFARI
STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2015 With Comparative Totals for 2014 Program Services
Public
Exhibits
Salaries & Wages
Other Personnel Costs
Contracts & Services
Advertising & Marketing
Advertising & Marketing (Non-Cash)
Office Expenses
Operating Supplies
Travel & Conferences
Animal Expense
Other Program Expense
Feed Cups
Conservation Gift
Developments & Fundraising
Special Events & Guest Encounter Expenses
Vehicle, Equipment & Maint.
Utilities
Taxes & Insurance
Small Equipment Purchases
Depreciation
Interest Expense
Bad Debt & Credit Card & Other Fees
Total Expenses
7
$
910,334
154,462
2,396
364,615
214,200
39,404
21,074
12,583
328,538
9,846
Education
$
61,503
12,968
$
485
716
5,000
110
20,044
48,721
63,408
$
285,378
32,875
144,745
12,015
$
263,993
53,491
3,373
1,368
1,083
(881)
10,511
124
499
8,669
17
16,990
14,507
805
143,690
57,928
365
15,005
40,442
12
89,705
$
545,539
Total
Program
Services
$
10,000
3,859
2,036
7,395
5,898
110,038
28
2
$ 2,304,804
Indirect
Program
Services
Auxiliary
Services
~
576,621
The accompanying notes are an integral part of these financial statements.
1,521,207
253,796
147,141
377,115
224,200
51,374
29,008
12,583
332,994
10,334
10,511
5,000
110
20,991
209,900
144,513
365
165,485
40
2
$
3,516,669
Su~~ort Services
Management
and
General
Salaries & Wages
Other Personnel Costs
Contracts & Services
Advertising & Marketing
Advertising & Marketing (Non-Cash)
Office Expenses
Operating Supplies
Travel & Conferences
Animal Expense
Other Program Expense
Feed Cups
Conservation Gift
Developments & Fundraising
Special Events & Guest Encounter Expenses
Vehicle, Equipment & Maint.
Utilities
Taxes & Insurance
Small Equipment Purchases
Depreciation
Interest Expense
Bad Debt & Credit Card & Other Fees
Total Expenses
$
292,429
93,424
25,145
371
34,153
37
5,403
15,429
(1,902)
62,659
12,290
30,000
1,380
9,045
4,657
41
3,880
29,907
(14)
$
11,479
26,708
4,453
2,946
190
397
2,279
4,001
67,449
4,937
20,022
50,680
$
625,732
3,831
$
191,972
2014
Total
Expenses
Ex~enses
Fundraising
$
2015
Total
1,876,296
359,510
202,286
378,866
233,245
90,184
29,086
21,866
378,329
8,418
10,511
16,479
26,818
25,842
215,124
148,704
67,814
$
1,697,503
306,515
188,321
332,487
150,960
71,991
74,109
29,309
333,046
3,763
20,807
6,450
22,335
26,387
152,442
133,486
74,857
1,050
160,465
21,884
43,452
$
3,851,619
174,253
20,062
50,682
$
4,334,373
8
SAFARI GAME SEARCH FOUNDATION DBA WILDLIFE SAFARI
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
With Comparative Totals for 2014
2014
2015
CASH FLOWS FROM OPERATING ACTIVITIES
Change in Net Assets
Adjustments to Reconcile Increase in Net Assets to Net Cash
$
(79,885)
$
219,950
Provided by (Used in) Operating Activities:
Contributed Vehicles, Equipment, and Investments
Depreciation
(46,426)
174,253
(96,860)
160,465
1,481
12,713
2,746
78,694
3,852
(46,711)
(55,491)
259
(1,094)
(9,518)
(3,218)
(50,000)
(1,252)
88,298
12,554
971
14,956
(18,860)
10,000
(43,278)
8,744
(1,121)
13,353
11,065
7,824
1,722
(3,382)
2,685
Bad Debt Expense
Forgiveness of Debt Income
(Gain) Loss on Disposal of Property
Unrealized Net (Gain) Loss on Investments
Realized Net (Gain) Loss on Sales of Investments
(Increase) Decrease in:
Accounts Receivable
Employee Receivables
Prepaid Expenses
Inventories
Grants and Pledges Receivable
Deferred Payment - Social Media
Interest in Assets Held by OCF
Increase (Decrease):
Accounts Payable
Payroll and Other Accrued Expenses
Accrued Interest Payable
Compensated Absences Payable
Other
182,739
186,750
(399,554)
(246,619)
432,912
6,628
112,099
33,358
(127,892)
(224,072)
{52,846)
148,935
{46,551)
{276,918)
102,384
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(60,821)
161,242
CASH AND CASH EQUIVALENTS, Beginning
310,863
149,621
Net Cash Provided By (Used In) Operating Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Capital Assets
Proceeds from the Sale of Property
Net Cash from Sales (for Purchases) of Investments
Net Cash Provided By (Used In) Investing Activities
CASH FLOWS FROM FINANCING ACTIVITIES
Net Borrowings (Repayments) of:
Secured Note Payable
Long-Term Debt
Net Cash Provided By (Used In) Financing Activities
CASH AND CASH EQUIVALENTS, Ending
$
250,042
$
310,863
The accompanying notes are an integral part of these financial statements.
9
SAFAR,I GAME SEARCH FOUNDATION DBA WILDLIFE SAFARI
STATEMENT OF CASH FLOWS (Continued)
FOR THE YEAR ENDED SEPTEMBER 30, 2015
With Comparative Totals for 2014
2014
2015
SUPPLEMENTAL CASH FLOW INFORMATION
Cash Paid During Year for Interest
$
20,065
$
21,670
SCHEDULE OF NON-CASH INVESTING AND FINANCING TRANSACTIONS
Purchase of Equipment through
Long-Term Debt
$
28,430
$
10,000
Receipt of Donation of Equipment
$
41,112
$
63,000
Receipt of Donation of Marketable Securities
$
5,314
$
33,860
The accompanying notes are an integral part of these financial statements.
10
NOTES TO FINANCIAL STATEMENTS SAFARI GAME SEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. NAlURE OF ACITVrnES
Safari Game Search Foundation (the Foundation) is a non-profit foundation dedicated to
education, research, rehabilitation of native wildlife, and the preservation and breeding of rare
and endangered species. The Foundation owns and operates Wildlife Safari, a 600-acre preserve
(the Park) located in Winston, Oregon that is accredited by the Association of Zoos and
Aquariums. The Foundation also operates a gift shop and snack shop at the preserve site.
B. BASIS OF ACCOUNTING
The financial statements of the Foundation have been prepared on the accrual basis of accounting,
whereby revenues are recognized when earned and expenditures are recognized when incurred.
C. FINANCIAL STATEMENT PRESENTATION
Financial statement presentation follows the recommendations of the Financial Accounting
Standards Board in its Accounting Standards Codification 958 (formerly the Statement of Financial
Accounting Standards No. 117, Financial Statements ofNot-far-Profit Organizations).
The Foundation is required to report information regarding its net assets and revenues, expenses,
gains, and losses, which are classified based on the existence or absence of donor-imposed
restrictions. Accordingly, net assets of the Foundation and changes therein are classified and
reported as one of three classes of net assets: unrestricted net assets, temporarily restricted net
assets, and permanently restricted net assets. A description of the three net asset categories
follows:
Unrestricted net assets Net assets that are not subject to donor-imposed stipulations. Temporarily restricted net assets
Net assets subject to donor-imposed stipulations that mayor will be met, either by actions of the
Foundation and/or the passage of time. When a restriction expires, temporarily restricted net
assets are reclassified to unrestricted net assets and reported in the statement of activities as net
assets released from restrictions.
Permanently restricted net assets
Net assets subject to donor-imposed restrictions that they be maintained permanently by the
Foundation. No permanently restricted assets were held during the year ended September 30,
2015, and accordingly, these financial statements do not reflect any activity related to this class
of assets.
11
SAFARI GAME SEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. CASH AND CASH EQUIVALENTS AND CASH HELD FOR INVESTMENT PURPOSES
For purposes of the statement of cash flows, the Foundation considers all highly liquid, debt
instruments purchased with an original maturity of three months or less to be cash equivalents.
However, all cash and cash equivalents held in the Foundation's investment account with D.A.
Davidson has been designated by the board of directors to be for investment purposes, and is
excluded from cash and cash equivalents in the statement of cash flows. These assets are
presented separately in the other assets section of the statement of financial position, as cash
held for investment purposes.
E. ALLOWANCE FOR DOUBTFUL ACCOUNTS AND ACCOUNTS PAST DUE
The allowance method is used to provide for uncollectible accounts receivable. It is management's
opinion that no material uncollectible amounts are included in accounts receivable, grants receivable,
or pledges receivable. Therefore, no provision for doubtful accounts has been recorded in these
financial statements. At September 30, 2015, the balance of accounts receivable past due ninety
days or more was $0.
F. GRANTS AND PLEDGES RECEIVABLE
Grants receivable represent amounts that have been earned by the Foundation under existing
grant agreements and for which purpose or timing restrictions have been met. Pledges receivable
represent unconditional promises made by donors to give to the Foundation. Such amounts are
recorded as contribution revenue at the time the unconditional promise is made, with an
allowance made for estimated uncollectible amounts as considered necessary. The balance of
pledges receivable at September 30, 2015 was $0.
G. INVENTORIES
Inventories consist primarily of gift shop articles. Inventories are stated at lower of cost or
market and are expensed using the first-in, first-out method.
H. LAND, BUILDINGS AND EQUIPMENT
Donations of land, buildings and equipment are recorded as support at the asset's estimated fair
value. Such donations are reported as unrestricted support unless the donor has restricted the
donated asset to a speCific purpose. Assets donated with explicit restrictions regarding their use
and contributions of cash that must be used to acquire property and eqUipment are reported as
restricted support. Absent any donor stipulations regarding how long those donated assets must
be maintained, the Foundation reports expirations of donor restrictions when the donated or
acquired assets are placed in service as instructed by the donor. The Foundation reclassifies
temporarily restricted net assets to unrestricted net assets at that time. Purchased land, buildings
and equipment are stated at cost, and contributed assets are stated at fair value. The
Foundation's policy is to capitalize land, building and equipment additions which exceed $1,000
individually, and which have an estimated useful life of over one year.
12
SAFARI GAME SEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
H. LAND, BUILDINGS AND EOUIPMENT (Continued)
Expenditures for maintenance, repairs and minor renewals are charged to expense as incurred;
major betterments and renewals are capitalized. Upon retirement or sale, the cost of the asset
and accumulated depreciation are removed from the accounts and resulting gains or losses are
recognized in the statement of activities. Land improvements, buildings and equipment are
depreciated using the straight-line method over various lives which range from 3 to 40 years. The
amount of depreciation and amortization expense recognized during 2015 was $174,253.
1. DONATED SERVICES AND MATERIALS
The Foundation recognizes as revenues in the period received the fair value of donated services
requiring specialized skills that are provided by individuals possessing those skills, and that would
be purchased if not provided by donation, The Foundation determines the fair value of donated
services based on pay scales for comparable paid services. Donated services and materials with a
fair value of $244,661 have been received throughout the Foundation's programs and have been
recognized as revenue in 2015,
The Foundation also receives a significant amount of donated services from unpaid volunteers
who assist in a variety of activities. The value of donated volunteer services is not reflected in the
accompanying financial statements since the volunteers' time does not meet the criteria necessary
for recognition. Volunteer services donated for the year ended September 30, 2015 totaled
approximately 24,617 hours,
J. INCOME TAX STATUS
Under Section 501(c)(3) of the Internal Revenue Code, The Foundation is exempt from taxes on
income other than unrelated business income. The Foundation had no unrelated business income
during the year ended September 30, 2015, and accordingly, no provision for income taxes has been
made. The informational federal Form 990 is filed annually along with an annual state filing required
by the Oregon Department of Justice. The Foundation's management is not aware of any uncertain
tax positions which could affect their tax-exempt status or lead to a change in their tax liabilities. At
September 30, 2015, the federal and state returns for the tax years 2011 through 2014 remained
open to examination.
K. COMPLIMENTARY TICKET REVENUE
Complimentary tickets are distributed by the Foundation to promote attendance and public
relations. The tickets are recorded as revenue when redeemed and are offset by recording a
corresponding amount for advertising expense.
L. ADVERTISING COSTS
Advertising costs are expensed as incurred and totaled $612,111 in 2015. This total included in­
kind donations of radiO, television, and billboard advertising valued at $233,245 and the donation
of complementary admission tickets valued at $34,846. These in-kind expenses are reported as
public exhibits expenses in the statement of functional expenses.
13
SAFARI GAME SEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
M. ESTIMATES
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could differ from those
estimates.
N. COMPARATIVE FINANCIAL INFORMATION
The financial statements include certain prior-year summarized comparative information. Such
information is presented for comparative purposes only, and does not include sufficient detail to
constitute a complete presentation in conformity with certain generally accepted accounting
principles relating specifically to nonprofit organizations. Accordingly, such information should be
read in conjunction with the Foundation's financial statements for the year ended September 30,
2014, from which the summarized information was derived.
O. INVESTMENTS
The Foundation's investments at September 30, 2015 consist of stocks and bonds recorded at
fair value based on publicly traded security values. These investments are bought and held
principally for the purpose of selling them in the near term classifying them as trading securities,
with the change in fair value during the period included in earnings. Generally, for all trading
securities, fair value is determined by reference to quoted market prices and other relevant
information generated by market transactions.
NOTE 2 - CASH AND CASH EQUIVALENTS
Cash and cash equivalents consisted of the following at September 30, 2015:
Petty Cash
Cash on Hand
Undeposited Funds
Checking Accounts & Demand Deposits
$
1,850
10,000
2,134
236,058
$ 250.042
NOTE 3 - INVENTORIES
Inventories consisted of the following at September 30, 2015:
Gift Shop - Retail Goods
Veterinary Clinic Medicines & Supplies
Employee Uniforms
Animal Feed - Hay Inventory
Restaurant
Snack Shack
$ 102,718
36,068
5,715
51,505
4,404
1,093
$ 201.503
14
SAFARI GAME SEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 4 - LAND. BUILDINGS AND EQUIPMENT
Activity related to the land, buildings and equipment and accumulated depreciation accounts
consisted of the following for the year ended September 30, 2015:
Land & Improvements
Buildings
Furniture & Equipment
North American Expansion
Vehicles
Construction in Progress
Total Assets
Less: Accumulated Depreciation
$ 1,798,729
3,088,211
612,183
393,739
293,085
89,199
6,275,146
(3,807,566)
Property and Equipment, Net
$ 2.467,580
NOTE 5 - INTEREST IN ASSETS HELD BY OREGON COMMUNITY FOUNDATION
In 2000, the Foundation transferred restricted assets composed of investments to the Oregon
Community Foundation ("OCF"), an Oregon nonprofit corporation, in order to establish the Valpiani
Cheetah Endowment Fund for the benefit of the Foundation. These assets are restricted in purpose
for the Foundation's cheetah programs.
Under the Valpiani Endowment trust agreement, OCF shall distribute at least annually an appropriate
percentage of the fair market value of the endowments to the Foundation, The percentage
distributed shall not be less than a reasonable rate of return. The fair market value of the
Foundation's interest in assets held by OCF for the Valpiani Cheetah Endowment Fund totaled
$39,298 as of September 30, 2015. The following is a summary of the Valpiani investment account
activity:
Beginning Balance
Grants Approved & Distributed
Realized Gains
Realized Losses
Unrealized Gains/Losses
Investment Earnings
Investment Expenses
Ending Balance
$ 43,331
(2,036)
372
(736)
(1,682)
404
(355)
$ 39.298
A second endowment fund was created in August 2006, upon the death of Mr. Leonard Goodwin, the
sole-surviving grantor of a charitable remainder trust. At that time, the trust terminated and the
investments held by OCF were revalued from the net present value of the estimated future benefits to
be received at the time of the grantors death to its fair market value as of September 30, 2006.
These assets were transferred by the OCF from the Goodwin Charitable Trust into the Leonard and
Vivian Goodwin Endowment Fund for the Safari Game Search Foundation.
15
SAFARI GAME SEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 5 - INTEREST IN ASSETS HELD BY OREGON COMMUNITY FOUNDATION (Continued)
The fair market value of the Foundation's interest in assets held by OCF for the Leonard K. and Vivian Goodwin Endowment Fund totaled $870,728 as of September 30, 2015. The following is a summary of the Goodwin investment account activity:
Beginning Balance
Grants Approved & Distributed
Realized Gains
Realized Losses
Unrealized Gains/Losses
Investment Earnings
Investment Expenses
Ending Balance
$ 954,993
(40,110)
8,195
(16,311)
(37,124)
8,921
(7,836)
$ 870,728
Under the Goodwin Endowment trust agreement, OCF shall distribute at least annually an appropriate
percentage of the fair market value of the endowments to the Foundation as needed or desired to
further the Foundation's objectives and purposes. The percentage distributed shall not be less than a
reasonable rate of return (currently calculated as 4.5% per annum of the Endowment's total assets
held by OCF). The Foundation can elect to receive a distribution or can defer receiving the
distributions and elect to re-invest the amounts into the Endowment. The distributions may occur
semi-annually in June and December. Additional extraordinary distributions from the Endowment are
allowed, but subject to the approval of the OCF's board of directors.
The investment income and realized and unrealized gains and losses from these endowments are
presented as changes in restricted net assets on the Foundation's statement of activities.
As trustee of the two endowment funds, OCF may co-mingle the assets held for the Foundation for
investment purposes into pooled investment accounts.
NOTE 6 - ANIMALS ON EXHIBIT
Animals on exhibit represent breeding herds of various species. These animals were capitalized at
appraised cost when the Foundation purchased the collection in January 1981. The balance of this
account also includes those animals purchased during 1988 and 1989 to populate the North American
expansion. For all other animal transactions, acquisitions have been recognized as a current expense
to be netted against proceeds from the sale of animals. Generally accepted accounting principles
require that collections be capitalized in their entirety. The amount required to be recorded in order to
capitalize the collection has not been determined.
In view of the impracticality of placing a value on recurring animal births and deaths, no value is
placed on these additions or deletions to the animal collections. The cost or contributed value of
animals acquired, other than those acquired for the North American expansion, is netted against
proceeds from sales. During the year ended September 30, 2015, there was $61,765 spent on
transportation costs for the acquisitions of animals and no proceeds from the sale of animals.
16
SAFARI GAME SEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 7 - UNRESTRICTED NET ASSETS
The Foundation's unrestricted net assets as of September 30, 2015 consisted of the following:
Unrestricted Net Assets:
Net book value of fixed assets
$ 2,467,580
1.537,362
Unrestricted - undesignated
$ 4,004,942
Total Unrestricted Net Assets
NOTE 8 - TEMPORARILY RESTRICTED NET ASSETS
The Foundation's temporarily restricted net assets as of September 30, 2015 consisted of the
following:
Funds restricted for Use in:
Educational programs and events
Road Improvements
Rhino Building & Exhibit
Zoo Animal Hospital Equipment
Cheetah Fence
Conservation
Fair Value of Interest in Assets Held by Oregon Community Foundation: Valpiani Cheetah Endowment Fund
Leonard and Vivian Goodwin Endowment
Fund for Safari Game Search
Foundation
Total available for use in periods after
September 30, 2015
$
8,070
20,000
29,941
98,650
609
16,326
39,298
870,728
$ 1.083,622
NOTE 9 - SECURED NOTE PAYABLE
In July 2009, the Foundation established an investment account and a line of credit with the
investment firm D.A. Davidson & Co. The note payable on the line of credit is secured by cash, cash
equivalents and other investments held by D.A. Davidson & Co. in the Foundation's investment
accounts. Borrowings on the line of credit accrue interest at a rate of 2.75% per annum in effect at
September 30, 2015. The available balance on the line of credit can be no greater than specified
percentages of the totals of the Foundation's investment portfolio categories, with the percentages
varying based on the type of investments. Based on these criteria, the maximum borrowing capacity
on the line of credit at September 30, 2015 was approximately $1,001,175. At September 30, 2015,
the balance of the secured note was $26,069.
17
SAFARI GAME SEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 10 - LONG-TERM DEBT The long-term debt obligations of the Foundation consisted of the following at September 30, 2015:
Mortgage payable to Douglas County
Industrial Development Board, payable
in monthly installments of $2,600 during
the summer and $1,525 in winter, payable
in full March 2021; secured by a 2nd deed
of trust on real property located in Douglas
County, Oregon
$ 251,363
Note payable to CCD Business Development
Corporation, payable in nine monthly
installments per year of $3,048, including
interest at 1% plus prime, currently 5%;
payable in full May 2016; secured by inventory,
equipment, furniture and 3rd deed of trust
(pro-rata with Oregon Economic and
Community Development Commission)
on real property located in Douglas County, Oregon
9,133
Note payable to Kubota Corp, payable in
monthly installments of $208, 0% interest,
payable in full April 2018, secured by Kubota RlV
6,458
Note payable to Kubota Corp, payable in
monthly installments of $313, 0% interest,
payable in full October 2018, secured by Kubota RlV
11,563
Note payable to Kubota Corp, payable in
monthly installments of $224, 0% interest,
payable in full April 2020, secured by Kubota RlV
12,311
Total Long-term Debt Obligations
290,828
Less: Current Portion
(61,894)
Long-term Debt, Net of Current Portion
$
228,934
18
SAFARI GAME SEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 10 - LONG-TERM DEBT (continued)
The following represents the maturities of long-term debt and estimated related interest requirements at
September 30, 2015:
Year Ending
September 30th ,
2016
2017
2018
2019
2020
Principal
61,894
58,136
57,094
52,198
50,768
10,738
$
130
$
290.828
$
130
Thereafter
Totals
Interest
$
Total
$62,024
58,136
57,094
52,198
50,768
10,738
$
290.958
During the year ended September 30, 2015, the Foundation incurred interest expense of $20,065.
NOTE 11- EMPLOYEE BENEFIT PLAN
The Foundation has established a SIMPLE IRA plan as of April 1, 2014 which covers all employees who
earn more than $5,000 during the year. The Foundation matched 100% of the employee's contribution,
up to 2% of the employee's compensation. Beginning April 1, 2015, the Foundation increased its
contribution and now matches 100% of the employee's contribution, up to 3% of the employee's
compensation. The Foundation's contribution to the plan for 2015 was $17,882.
NOTE 12 - RELATED PARTY TRANSACTIONS
During the year ended September 30, 2015, the Foundation purchased goods and services from many
local and regional bUSinesses, which are either partially or wholly-owned by certain members of the
Foundation's Board of Directors or Trustees. The total amount of these transactions was not
determined. Many of these same directors or trustees and the related businesses also donated or
discounted goods and services provided to the Foundation on a recurring basis throughout the year.
19
SAFARI GAME SEARCH FOUNDATION NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 13 - PURCHASE COMMITMENTS
On September 28, 2012, the Foundation entered into a purchase commitment with Heska Corporation
to purchase a minimum of $4,000 per year in veterinary supplies for the next five years in exchange
for free use of a veterinary chemistry analyzer. Purchases under this purchase agreement totaled
$10,790 during the year ended September 30, 2015. During the term of the agreement, the
equipment shall remain the property of Heska Corporation. If the Foundation meets this minimum
purchase agreement, then the Foundation has the option to purchase the equipment at the end of
the five-year term for $2,500 or renew the agreement on an annual basis.
At September 30, 2015, the Foundation had $28,336 remaining to be paid to Lome Merrifield
Construction for the completion of construction contract for a Rhino exhibit.
NOTE 14 - SUBSEQUENT EVENTS
In preparing these financial statements, the Foundation's management has evaluated subsequent
events and transactions for potential recognition or disclosure through February 22, 2016, which
represents the date that the financial statements were available for issuance.
20