BALANCE SHEET WITH FINANCIAL STATEMENTS
- ~.1Ili'r
~,
'.
~' 1
1
II FRAS ER
& Company
Certified Public Accountants
June 30, 1993
----~,-..:
.....W'"~~
I
/'7 /-'''', ,--' ,
;; ~ c ,_ -:: .> ' ,
""'"
~ i
.~"',.....
, ,
I
I
THE CHI CHI RODRIGUEZ YOUTH FOUNDATION, INC.
Table of Contents
~
Independent Auditor's Report on Financial
Statements
1
Financial Statements:
Balance Sheet
2
Statement of Support, Revenue and Expenses
3
Statement of Changes in Fund Balance
4
Statement of Functional Expenses
5
Statement of Cash Flows
6
Notes to Financial Statements
7 - 12
,
'-
-t.~.
, ,
I
I
II
FRAS ER
& Company
Certified Public Accountants
111 Second Avenue N,E,
Suite 800
St Petersburg, FL 33701
Telephone 18131 821-3133
FAX 18131 822-2890
Independent Auditor's Report on Financial Statements
To the Board of Directors
The Chi Chi Rodriguez Youth Foundation, Inc.:
We have audited the accompanying balance sheet of The Chi Chi Rodriguez Youth Foundation,
Inc. (a non-profit organization) as of June 30, 1993, and the related statements of support,
revenue and expenses, changes in fund balance, functional expenses, and cash flows for the year
then ended. These financial statements are the responsibility of the Foundation's management.
Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those
standards require that we plan and perform the audit to obtain. reasonable assurance about
whether the fmancial 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 audit provides a reasonable basis for our opinion.
In our opinion, the fmancial statements referred to above present fairly, in all material respects,
the financial position of The Chi Chi Rodriguez Youth Foundation, Inc. as of June 30, 1993,
and the results of its operations and its cash flows for the year then ended in conformity with
generally accepted accounting principles.
--=t^~~~O
July 29, 1993
Members: American Institute of Certified Public Accountants. Florida Institute of Certified Public Accountants
~
'. ~
-', :1
I
I
THE CHI CHI RODRIGUEZ YOUTH FOUNDATION, INC.
Balance Sheet
June 30, 1993
Unrestricted Plant
Assets Fund Fund I2Ig!
Current Assets:
Cash and cash equivalents (note 2) $547,513 30,000 577,513
Pledges receivable 51,610 51,610
Inventory (note 3) 18,442 18,442
Rent receivable 5,000 5,000
Prepaid expenses 21.244 21 .244
Total current assets 643.809 30.000 673.809
Property and Equipment, at cost (note 4) 4,252,387 4,252,387
Less accumulated depreciation (861.012) (861.012)
Net property and equipment 3.391.375 3.391.375
Other Assets:
Pledges receivable, noncurrent 21,600 21,600
Investments -(note 5) 29,523 29,523
Deposits 5,708 5,708
Loan costs, unamortized 53.082 53.082
Total other assets 56.831 53.082 109.913
$700.640 3.474.457 4.175 .097
See accompanying notes to financial statements.
. .,' -, "--
.-"..'- -..,,-'-.-:
"....--------.-.....,. ----. .----". -....,
. . -, - . ." -, ,,- -', ""
..- _.'........~'--~...-.-._.- -,_.~,------_. --- - ,
,=-
-
. 0 ._
r_"~ _...____.'-____ .___....... 'r'....., '_"0" '.. "-. ..... __.. -, _.0_. ,_';"''-11.;... ..'--
I .
.; .!
I
I
2
Unrestricted Plant
Liabilities and Fund Balance Fund Fund Total
Current liabilities:
Accounts payable $ 40,483 71,635 112,118
Deferred revenue 58,934 58,934
Current portion of note payable 95,826 95,826
Accrued expenses 40.766 40.766
Total current liabilities 140.183 167.461 307.644
Long-term liabilities:
Note payable (note 6) . 2,383,161 2,383,161
Less current portion (95.826) (95 . 826)
Total long-term liabilities 2.287.335 2.287.335
Total liabilities 140.183 2.454.796 2.594.979
Fund balance:
Unrestricted 560,457 543,886
Plant 1.019.661 1.036.232
Total fund balance 560.457 1. 0 1 9 . 661 1.580.118
$700.640 3.474.457 4.175.097
-
-
-"--.--.. ~~,-------_.-=--.....~-
-I
I
THE cm cm RODRIGUEZ YOUTH FOUNDATION, INC.
Excess (deficit) of public support and revenue over
expenses $ 276.202
See accompanying notes to financial statements.
(160.393)
115, 809
3
"'~..~'"-.,...-. -.._"-- :::..:-_"~..irt:..::.:.:8:~_(.'.-
t., '"
I
I
4
THE cm CHI RODRIGUEZ YOUTH FOUNDATION, INC.
Statement of Changes in Fund Balance
Year Ended June 30, 1993
Unrestricted Plant
Fund Fund Total
Fund balance, July 1, 1992 $420,207 1,044,102 1,464,309
Transfers:
Property and equipment acquisitions (48,182) 48, 182
Principal debt service
payments (87,770) 87,770
Excess (deficit) of public support
and revenue over expenses 276.202 (160.393) 115.809
Fund balance, June 30, 1993 $560.457 1.019.661 1.580.118
See accompanying notes to financial ~ta~n;ltts..
;"a .
. .
I
I
THE CHI CHI RODRIGUEZ YOUTH FOUNDATION, INC.
Statement of Functional Expenses
Year Ended June 30, 1993
-
.
........--- -~--~~...~~.".-",,- - - . .' ,'-
I
Supporting Services
Financial Management
Development and
and Campaigns General Total
Total
Expenses
50,704
3,759
552
108,819
8,083
1.188
696,134
51,487
7.568
159,523
11 , 842
1. 740
55,015
118,090
755,189
173,105
1,328 2,855 4,183 18,187
1,155 2,483 3,638 15,817
2,276 4,894 7, 170 31,176
10,190 10,190 117,672
7,822 6,952 14,774 48,870
22,762
5,619 12,084 17,703 76,971
4,916 10,573 15,489 67,345
3,880 8,680 12,560 21,654
12,579 27,053 39,632 495,411
13,094 28,161 41,255 179,368
7,222 7,222 83,401
4.275 9.193 13 .468 58.558
129,371 231 ; 0 18 360,389 1,992,381
16.762 36.050 52.812 229.616
146.133 267.068 413.201 2.221.997
I
-
"0". _
~- -........-
5
I
I
THE cm CHI RODRIGUEZ YOUTH FOUND A TION, INC.
Statement of Cash Flows
Year Ended June 30, 1993
Cash flows from operating activities:
Excess of public support and revenue
over expenses
Adjustments to reconcile excess to net
cash provided by operating activities:
Depreciation expense
Loss on disposal of equipment
Decrease in pledges receivable
Decrease in inventory
Increase in prepaid expenses
Amortization of loan costs
Donated improvements and investments
Increase in other assets
Increase in accounts payable
Increase in accrued. expenses
Decrease in deferred revenue
Net cash provided by operating activities
Cash flows from investing activities:
Acquisition of property and equipment
Construction in progress
Proceeds from sale of equipment
Net cash (used) by investing activities
Cash flows from financing activities:
Net borrowings of note payable
Principal payment on capital1ease obligation
Net cash provided by financing activities
Net increase in cash
Cash, beginning of year
Cash, end of year
Supplemental disclosures:
Cash paid during the year for interest, including 57,873 of
capitalized interest
See accompanying notes to financial statements.
~~,...
6
5115,809
229,616
24,838
17,150
3,680
(3,972)
13,548
(129,046)
(311 )
66,352
29,641
(8.441)
358.858
(59,169)
(485,515)
367
(544.317)
234,560
(19.216)
215.344
29,885
547.628
$577.513
$189.854
I
I
7
THE CHI CHI RODRIGUEZ YOUTH FOUNDATION, INC.
Notes to Financial Statements
June 30, 1993
(1) Summary of Significant Accounting Policies
(a) Or!!anization
The Chi Chi Rodriguez Youth Foundation, Inc. (Foundation) is a not-for-profit
corporation which provides academic and vocational, junior golf, and personal life
management programs for disadvantaged children through its golf course and
classroom facilities. The Foundation has cooperated with numerous community
agencies in working to develop disadvantaged children into socially well-adjusted,
educated and motivated members of society.
(b) Accounting
The fmancial statements have been prepared in accordance with generally accepted
accounting principles and the AICPA Industry Audit Guide, Audits of Voluntary
Health and Welfare Organizations.
To ensure observance of limitations and restrictions placed on the use of resources
available to the Foundation, the accounts are maintained in accordance with the
principles of fund accounting. This is the procedure by which resources for various
purposes are classified for accounting and reporting purposes into funds established
according to their nature and purposes.
Unrestricted Fund - accounts for all unrestricted resources which are available to
carry out the operations of the Foundation.
Plant Fund - accounts for property and equipment used in the operation of the
Foundation and any debt relating thereto. It also includes any unexpended
resources which have been contributed for the purpose of acquiring or replacing
property and equipment.
(c) Cash and Cash Equivalents
For purposes of financial statement presentation, the Foundation considers all
temporary cash investments purchased with a maturity of three months or less to be
cash equivalents.
-'
I
I
8
THE cm CHI RODRIGUEZ YOUTH FOUNDATION, INC.
Notes to Financial Statements
June 30, 1993
(d) Investments
Investments are stated at cost or, if donated, at the fair market value at the date of gift.
(e) Property and Equipment
Property and equipment are stated at cost and donated property and equipment at
estimated fair value at the date of donation. Property and equipment are depreciated
over their estimated useful lives (5 to 21 years) using the straight-line method.
(t) Donated Services
No amounts have been reflected in the statements for donated services inasmuch as no
objective basis is currently available to measure the value of such services.
(g) Plede:es
Pledges are recognized as support and as receivables, in the period in which they are
made, unless the pledge specifies that it is for use in future periods. If a pledge is
designated by the donor as being for use in a future period, it is recorded as a deferred
amount in the balance sheet and recognized as support in the period in which it may
be used. Pledges receivable are carried at net realizable value.
(h) Functional Expenses
Expenses by function have been allocated among program and supporting services
classifications on the basis of salaries paid and on estimates made by the Foundation's
management.
(i) Federal Income Taxes
The Foundation is exempt from federal income tax under Section 501(c)(3) of the
Internal Revenue Code, and has been determined not to be a private foundation.
0) Allowance for Uncollectible Amounts
No allowance for uncollectible ~ounts has been provided since management considers
all accounts to be collectible.
I
~ :~~ ':'u'" ..~,~,:":';;::J:~ ~~'~~.':'~-~~~~~~_.r"~~~~~~~ .-:.~ -~--.~' <..;...---
I
9
THE CHI CHI RODRIGUEZ YOUTH FOUND A nON, INC.
Notes to Financial Statements
June 30, 1993
(2) Concentration of Credit Risk
The Foundation maintains cash balances at institutions insured by the Federal Deposit
Insurance Corporation up to $100,000 per institution. At June 30, 1993, uninsured amounts
held at these institutions total approximately $460,677.
(3) Inventory
Inventory is recorded at cost, using the first-in, first-out method. As of June 30, 1993,
inventory consisted of the following:
Merchandise
Food
$16,964
1.478
$18.442
(4) Property and Equipment
The following is a summary of the components of property and equipment as of June 30,
1993:
Leasehold improvements - Chi Chi Rodriguez Golf Club
Leasehold improvements - Glen Oaks Golf Course
Construction in progress (note 9)
$2,810,742
134,637
485,515
Building and parking lot
Machinery and equipment
Vehicles
Office furniture and equipment
242,432
466,498
43,211
69.352
4,252,387
(861. 0 12)
$3.391.375
Less accumulated depreciation
Net property and equipment
For. assets constructed by the Foundation, costs include interest during the construction
period. During the year ended June 30, 1993, the Foundation capitalized $7,873 of
construction period interest.
I
. c._. . '";~. "~. ~~; '_-:~Y'"~;'1~_.~;-~~:~~~~~,~:';~2-~?2~~};'" ;liiU'-"'~:-
THE cm cm RODRIGUEZ YOUTH FOUNDATION, INC.
10
Notes to Financial Statements
June 30, 1993
(5) Investments
Investment assets consist of donated secuntIes traded on national stock exchanges.
Securities are stated at the donated value.
Market values and unrealized depreciation at June 30, 1993 are summarized as follows:
Donated
Value
Market
Value
Unrealized
Depreciation
Unrestricted
$29 .523
$26.763
$(2.760)
No allowance for the decline in market value has been provided SInce management
considers the decline to be temporary.
(6) Lon~- Term Debt
Long-term debt consists of a note payable to NationsBank of Florida, payable in monthly
installments of $24-,792 including principal and interest of 8.5% until May 28, 1997, when
the entire principal balance outstanding and any accrued interest shall be due in full; the
note is collateralized by all currently owned and future contract rights, real and personal
property and a mortgage assignment of the leasehold interest in Chi Chi Rodriguez Golf
Club and is secured by the Gity of Clearwater's guaranty in the amount of $1,000,000.
The Foundation must meet certain covenants in conjunction with the loan agreement. The
major covenants require the maintenance of an annual debt coverage ratio and the
establishment of reserves for equipment replacement. As of June 30, 1993 the Foundation
is in compliance with these loan covenants.
The required maturities are as follows:
Year ended June 30,
1994
1995
1996
1997
$ 95,826
104,418
113,272
2.069.645
$2.383.161
(7) Leases
I
Land Leases
The Foundation is a party to leases with the City of CleaT'W3Ier as follows:
, ------ ...........--..--..;::.;.;..
L.:. .Jr.' ar
-~._, ....
..6. .:~
~ "
I
I
11
THE CHI CHI RODRIGUEZ YOUTH FOUNDATION, INC.
Notes to Financial Statements
June 30, 1993
(7) Leases (continued)
Glen Oaks Golf Course
The Foundation is committed to a lease on the Glen Oaks Golf Course through January
3, 1994, which may and is expected to be renewed for one five year period upon the
approval of both parties. The lease requires payments of one dollar per year for the life
of the lease. Requirements of the lease include: (1) the Foundation is responsible for
all operating costs related to the golf course, (2) all buildings and other improvements
permanently affixed to the property will become the property of the City at the expiration
or termination of the agreement, and (3) the City retains the right to terminate the lease
for any municipal need consistent with its charter.
Chi Chi Rodriguez Golf Club
The Foundation is committed on a lease of approximately 212 acres of land in the
Countryside area. The lease term is fifteen years, through November 12, 2000, and may
be renewed. However, the maximum of the initial term plus all renewals is limited to
twenty-five years~ As part of the lease, the Foundation agreed to construct educational
and rehabilitative facilities that include an 18 hole regulation size. golf courSe, driving
range and facilities necessary for its education programs. The lease requires payments
of one dollar per year for the life of the lease. Additional requirements of the lease
include: (1) the Foundation is responsible for all operating costs of the facilities, (2) all
buildings and other improvements permanently affixed to the property will become the
property of the City at the expiration or termination of the agreement and (3) the
Foundation may sublease a portion of the property to a commercial enterprise for the
purpose of constructing and operating a driving range.
The golf courses under both of the leases are open to the general public at fees
comparable with other similar golf courses. All fees and charges received from these
operations, including any sublease are retained by the Foundation. The public use of all
facilities, including the golf course, is subject to the requirements of the Foundation's
programs.
Operatin~ Leases and Sublease Income
The Foundation is committed to rent a certain number of golf carts at $97 per golf cart
per month through 1996 for an estimated annual rental commitment of $53,156. The
lease provides for a full service warranty covering all phases of operation and
appearance. The number of golf carts rented may be adjusted based on the Foundation's
actual future needs, and the actual annual rental expense may vary from the lease
estimates. Rental expense for carts of $82,256 was incurred for the current year.
:4
, '
. .,
I
.~.:.. ""_-';>T~;-" -':i:"'-iI~....; ->+~..._ "::"_~":~"!!' ~_~."-
. ." - -,,:~-' -.-
'-=:--'-~r"""!'-
I
12
TIIE CHI CHI RODRIGUEZ YOUTH FOUND A nON, INC.
Notes to Financial Statements
June 30, 1993
(7) Leases (continued)
The Foundation has subleased a portion of the property leased from the City (see Chi Chi
Rodriguez Golf Club above) to an unrelated commercial entity for use as a driving range.
The initial lease term is through the year 2000, and may be extended through the year
2010. Total sublease income included in the accompanying financial statements totaled
$60,000 for the year ended June 30, 1993.
The future minimum operating lease payments for these operating leases as of June 30,
1993 are as follows:
Fiscal Year
Endin~ June 30,
Lease
Expense
Sublease
fncome
1994
1995
$53,156
22,148
60,000
60,000
(8) Contributed Facilities
As discussed in Note 7, the Foundation leases certain property from the City of Clearwater
for a nominal amount. The estimated fair rental value, detennined to be $495,411, is
included in the accompanying financial statements as support and the same amount is also
included as expense.
(9) Commitments
,
The Foundation has entered into a construction agreement for the expansion of the Chi Chi
Rodriguez Golf Club to include a lodge, a learning center and an additional cart storage
facility. The lodge was substantially complete at June 30, 1993. The remaining
construction is scheduled for completion by September 15, 1993 under a cost plus fee
contract. The estimated cost to complete is $98,400.
(10)
Pension Plan
-
The Foundation established a defined contribution retirement savings plan on February 1,
1993. The Foundation's discretionary contribution is based on a unifonn percentage of the
elective deferrals of each employee who is eligible for employer contributions. To be a
participant in the plan, an employee must be at least twenty-one years old and complete one
year of full-time service. The total contributions for the year ended June 30, 1993 was
$2,765.
....
~. r~ .~
TO:
FROM:
COPIES:
SUBJECT:
DATE:
C0-
~ ~lL t)/311'Y-
, ) C IT Y 0 Fe LEA R W ATE R
Interdepartmental Correspondence Sheet
Dan Deignan, Assistant Director, Administrative Ser
Ream Wilson, Director, Parks and
Recreation
Q-
Chi Chi Rodriguez Youth Foundation, Inc.
November 15, 1993
According to our agreements with the Chi Chi Rodriguez
Youth Foundation for the Glen Oaks and Countryside Golf
Courses, the Foundation is required to submit copies of
annual financial statements. I recently received the
attached statements and wanted to provide them for your
review and/or files.
Please contact me if you have any questions.
RW:LB
Attachment
RECEIVEr)
,JAN 131994
CITY CLERK DEFt