FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2004 AND 2003
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JOLLEY TROLLEY TRANSPORTATION
OF CLEARWATER, INC.
FINANCIAL STATEMENTS
Years Ended September 30, 2004 and 2003
(With Independent Auditor's Report Thereon)
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JOLLEY TROLLEY TRANSPORTATION OF CLEARWATER, INC.
TABLE OF CONTENTS
PAGE
INDEPENDENT AUDITOR'S REPORT
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FINANCIAL STATEMENTS
Statements of Financial Position
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Statements of Activities
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Statements of Cash Flows
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Notes to Financial Statements
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INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE
AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING
BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
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John J, McKnight, Jr., CPA
Robert P. Symanski, CPA
5.Y-manski+ McKnight, P.A.
Certified Public Accountants
and Business Advisors
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Members
Florida Institute Of
Certified Public Accountants
American Institute Of
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
To The Board of Directors
Jolley Trolley Transportation of ClealWater, Inc.
We have audited the accompanying statements offinancial position of Jolley Trolley Transportation of
ClealWaterr Inc. (a nonprofit organization) as of September 30r 2004 and 2003 , and the related
statements of activities and cash flows for the years then ended. These financial statements are the
responsibility of the Organization's management Our responsibility i~ to express an opinion on these
financial statements based on our audits, '
We conducted our audits in accordance with auditing standardS generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing standards.
issued by the Comptroller General of the United States, Those standards require that we plan and
perfonn our audit to' obtain reasonable' assurance about whether the financial statements are free of
material misstatements. 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 wen as evaluating the overall financial
statement presentation. We believe our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fainy, in all material respects, the
financial position of Jolley Trolley Transportation of ClealWater, Inc. as of September 30. 2004 and 2003.
and the changes in its net assets and its cash flows for the years then ended in conformity with
accounting principles generatly accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued a report dated November 26,
2004 on our consideration of the Organization's internal control over financial reporting and our tests of
its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral
part of an audit performed in accordance with Government Auditing Standards and should be read in
conjunction with this report in considering the results of our audit.
-5r.J: I FJ1~;:1
ClealWater, Florida
November 26, 2004
1700 McMullen Booth Road. Suite A-6, Clearwater. Florida 33759 . (727) 725-8272 . Fax (727) 669-0252
1301 Seminole Blvd,. Suite 138, Largo, Florida 33770. (727) 584-8186. Fax (727) 584-9139
E-mail: info@symanskimcknight.com
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I JOLLEY TROLLEY TRANSPORTATION OF CLEARWATER, INC.
I STATEMENTS OF FINANCIAL POSITION
September 30, 2004 and 2003
I Assets
I 2004 2003
Current assets:
I Cash $ 166,412 $ 167,151
Prepaid and other current assets 24,013 24,808
I Total current assets 190,425 191,959
Fixed assets:
I Property and equipment 689,988 686,817
Less accumulated depreciation 532,476 453r692
I Net property and equipment 157,512 233,125
Other assets 482
I Total assets ~ 348.419 ~ 425,084
I Liabilities and Net Assets
I current liabilities:
I Accounts payable and accrued expenses $ 21,760 $ 14,229
Deferred revenue 13,471 7,069
I Total current liabilities 35,231 21 ,298
Net assets - unrestricted 313,188 404,268
I T otalliabilities and net assets ~ 348.41 ~ ~ 425.566
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I JOLLEY TROLLEY TRANSPORTATION OF CLEARWATER, INC,
STATEMENTS OF ACTIVITIES
I Years ended September 30, 2004 and 2003
2004 2003
I Support and revenue:
Support:
City of Clearwater operations Grant $ 229,540 $ 244,970
I City of Clearwater Vehicle Maintenance Grant 50,000 50,000
City of Clearwater Office Rent Grant 11,700 11 ,700
Total support 291,240 306,670
I Revenue:
Fare revenue 117,597 102,022
I Advertising revenue 67,904 54,113
Charter revenue 65r39O 68,469
Interest Income 812 1.359
Other revenue 2,910 359
I Total revenue 254,613 226,322
I Total support and revenue 545,853 532,992
Expenses:
Salaries - drivers 179,976 166,055
I Salaries - administrative 69,389 78.175
Salaries - vehicle maintenance 36,976 33,792
Payroll taxes 25,736 20,807
I Worker's compensation insurance 11,474 16r111
Trolley repairs and maintenance 49,288 52,792
Depreciation expense 81,723 94,023
Insurance expense 70.160 56,044
I Fuel expense 60,126 39,759
Office supplies and expenses 3,023 9,270
Personnel costs 11,938 11,608
Travel
I Utilities 5,429 5,208
Rental expense 23,597 22,206
Professional fees 5,400 4,750
I Sales tax and other taxes 1,966 2,149
Bad debt 732
I Total expenses 636,933 613,349
Changes in net assets (91.080) (80,357)
I Net assets - unrestricted, beginning of year 404,268 484,625
I Net assets - unrestricted. end of year $ 313,188 $ 404.268
I See accompanying notes to financial statements.
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JOLLEY TROLLEY TRANSPORTATION OF CLEARWATER, INC.
STATEMENTS OF CASH FLOWS
Years ended September 30, 2004 and 2003
2004 2003
Cash flows from operating activities:
Changes in net assets $ (91,080) $ (80,357)
Adjustments to reconcile excess of support and
revenue over expenses to net cash provided by
operating activities:
Depreciation expense 81 ,723 94,023
(Increase) decrease in prepaid and other current assets 795 (15,642)
Increase (decrease) in accounts payable and accrued 7,531 (5,302)
Increase (decrease) in deferred revenue 6,402 6,320
Net cash (used) provided by operating activities 5,371 (958)
Cash flows from investing activities:
Property and equipment expenditures (6,110) (14,989)
Net cash used by investing activities (6,110) (14,989)
Net (decrease) in cash (739) (15,947)
Cash at beginning of year 167,151 183,098
Cash at end of year $ 166.412 $ 197.129
Supplemental disclosure of cash flows information:
Cash paid for interest $ -0- $ -0-
Cash paid for income taxes $ -0- $ 233
See accompanying notes to financial statements.
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JOLLEY TROLLEY TRANSPORTATION OF CLEARWATER, INC,
NOTES TO FINANCIAL STATEMENTS
September 30, 2004 and 2003
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Oraanization
Jolley Trolley of Clearwater, Inc. (Organization) is incorporated under the laws of the
State of Flortda as a nonprofit corporation. Its purpose is to provide a local and tourist public
transportation system between the islands of Sand Key and Clearwater Beach and the City
of Clearwater,
Basis of Accounting
The financial statements of Jolley Trolley Transportation of Clearwater, Inc. are
presented on the accrual basis.
Basis of Presentation
The Statement of Financial Accounting Standards (SFAS) No, 117. "Financial
Statements of Not-for-Profit Organizations," establishes standards for general purpose
external financial statements provided by a not-for-profit organization. It specifies that those
statements include a statement of financial position. a statement of activities and a statement
of cash flows. The financial position and activities will report information according to three
classes of net assets: unrestrtcted net assets, temporartly restrtcted net assets and
permanently restrtcted net assets. The Organization does not have any temporarily restricted
or permanently restricted net assets.
Revenue Recoanition
Revenue from Operations and Vehicle Maintenance Grants (see Note 4) is recognized
over the term of the Grants. All other revenues are recognized when the earnings process
is substantially complete and services have been performed.
Property and Eauipment
Property and equipment are stated at cost. Depreciation is charged against earnings
over the estimated useful service pertod of the assets using the straight-line method.
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NOTE 1:
NOTE 2:
NOTE 3:
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JOLLEY TROLLEY TRANSPORTATION OF CLEARWATER, INC.
NOTES TO FINANCIAL STATEMENTS
September 30, 2004 and 2003
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accountina Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure 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.
Donated Services
No amounts have been reflected in the financial statements for donated services
because the criteria for recognition under SF AS 116 have not been satisfied.
INCOME TAXES
In June 1995, the Organization received a favorable determination from the Internal
Revenue Service as to its federal income tax exemption status under Section 501 (a) of the
Internal Revenue Code.
PROPERTY AND EQUIPMENT
Property and equipment at September 30,2004 and 2003 are as follows:
Trolley vehicles
Furniture and office
Signage
Garage equipment
Estimated
years of
useful
2004 2003 service
$ 667,491 $ 662,519 5
17,230 16,581 5
1,020 1,020 5
4,247 6,697 5
Total property
and equipment
~ 689.988
~ 686.817
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JOLLEY TROLLEY TRANSPORTATION OF CLEARWATER, INC.
NOTES TO FINANCIAL STATEMENTS
September 30, 2004 and 2003
NOTE 4: GRANTS
The City of Clearwater has annual Funding Agreements to the Jolley Trolley Transportation of
Clearwater, Inc., subject to an annual budgetary appropriation approved by the City of
Clearwater Commission. The funding of the Operations Grant, Vehicle Maintenance Grant
and Office Rent Grant for the years ended September 30, 2004 and 2003 was $229,540 and
$244,970, $50,000 and $50,000 and $11,700 and $11,700, respectively.
Amounts received under the above grants require the fulfillment of certain conditions as
set forth in the grant instruments, Failure to fulfill the conditions could result in the return of
the funds to the grantor, reduction of funding commitment or termination of agreement. The
Board of Directors is of the opinion that Jolley Trolley Transportation of Clearwater, Inc. has
complied with all significant provisions of the grants as of September 30,2004 and 2003. The
funding agreement will terminate as of September 30, 2004.
On September 7, 2004 a one year funding agreement was approved by the City of
Clearwater which provides $219,520 for providing trolley service, $50,000 for maintaining the
trolley vehicles and $11,700 for the lease of office space. The funding monies are payable to
the Organization in 12 equal monthly installments beginning October 2004 through September
2005.
NOTE 5: RENT
The Organization rents a garage facility on a month-to-month basis for $642 per month.
It has a one year lease for office space at $1,076.25 per month which began on February 17,
2003 and was extended on February 12, 2004 for a one year extension through February 16,
2005,
NOTE 6: CONCENTRATION OF RISK
The Organization maintains cash balances with its banking institutions, Cash amounts
at these banks are insured by the FDIC for up to $100,000, Approximately 54% and 58% of
the organization's support for the years ended September 30,2004 and 2003, respectivelYr
came from City of Clearwater grants,
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John J, McKnight, Jr., CPA
Robert P. Symanski, CPA
.$xmanski+ McKnight, P.A.
Certified Public Accountants
and Business Advisors
Members
Florida Institute Of
Certified Public Accountants
American Institute Of
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE
AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING
BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
The Board of Directors
Jolley Trolley Transportation of Clearwater, Inc.
We have audited the financial statements of Jolley Trolley Transportation of Clearwaterr Inc. (A nonprofit
organization) as of and for the years ended September 30, 2004 and 2003, and have issued our report
thereol) dated November 26, 2004. We conducted our audit in accordance with auditing standards
generally accepted)1l the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United States,'
Compliance
As part of obtaining reasonable assurance about whether Jolley Trolley Transportation of Clearwater~lnc;.'s
financial statements are free of material misstatement, we performed tests of its compliance with certain
provision of laws, regulations, contracts and grants, noncompliance with which could have a direetand
material effect onthe determination of financial statement amounts. However, providing anopioioo on
compliance with those provisions was not an objective of our audit and, accordingly, we do not express such
an opinion. The results of our tests disclosed no instances of noncompliance that are required to' be
reported under Government Auditing standards.
1700 McMullen Booth Road, S~ite A-6, Clearwater, Florida 33759 . (727) 725-8272 . Fax (727) 669-0252
1301 Semmole Blvd., SUite 138, Largo, Florida 33770. (727) 584-8186. Fax (727) 584-9139
E-mail: info@symanskimcknight.com
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The Board of Directors
Jolley Trolley Transportation of Clearwater, Inc.
Internal Control Over Financial RePOrting
In planning and performing our audit, we considered Jolley Trolley Transportation of Clearwater, Inc.'s
internal control over financial reporting in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and not to provide assurance on the internal control over
financial reporting. Our consideration of the internal control over financial reporting would not necessarily
disclose all matters in the internal control over financial reporting that might be material weaknesses. A
material weakness is a condition in which the design or operation of one or more of the internal control
components does not reduce to a relatively low level the risk that misstatements in amounts that would be
material in relation to the financial statements being audited may occur and not be detected within a timely
period by employees in the normal course of performing their assigned functions. We noted no matters
involving the internal control over financial reporting and its operation that we consider to be material
weaknesses.
This report is intended for the information of the board of directors, management and others within the
Organization and is not intended to be and should not be used by anyone other than these specified parties.
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Clearwaterr Florida
November 26. 2004
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