JOLLEY TROLLEY FINANCIAL STATEMENTS 2005 AND 2004 - AGN
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JOLLEY TROLLEY TRANSPORTATION
OF ClEARWATER, INC.
F~ANC~STATEMENTS
Years Ended September 30, 2005 and 2004
(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 QN COMPLIANCE
AND ON INTERNAl CONTROL OVER FINANCIAL REPORTING
BASeD ON AN AUDIT OF FINANCIAl STATEMENTS
PERFORMEDINACCORDANCEVWTH
GOVERNMENT AUOmNG STANDARDS
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John J. McKnight, Jr., CPA
Robert P. Symanski, CPA
Michael Drabin, CPA
~y"manski.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
To The Board of Directors .
Jolley Trolley Transportation of Clearwater, Inc.
We have audited the accompanying statements of financial position of Jolley Trolley Transportation of
Clearwater, Inc. (a nonprofit organization) as of September 30, 2005 and 2004, 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 is 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 #le standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United states. Those standards require that we pian and
perform 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 well as evaluating the overall financial
statement presentation. We believe OUf audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referted to above present fairly, in all material respects, the
financial position of Jolley Trolley Transportation of Clearwater, Inc. as of September 30, 2005 and 2004,
and the changes in its net assets and its cash flows for the years then ended in. conformity with
accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued a report dated November 28,
2005 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
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Clearwater, Florida
Novembet 28, 2005
170Q McMullen Booth Road, Suite A-6, Clearwater, Florida 33759 . (727) 725-8272 . Fax (727) 669~0252
E-mail: info@symanskimcknight.com
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I JOllEY TROLLEY TRANSPORTATION OF CLEARWATER, .'NC.
I STATEMENTS OF FINANCIAL POSITION
September 30, 2005 and 2004
I Assets
I 2005 2004
Current assets:
J Cash $ 128,734 $ 166,412
Prepaid and other current assets 30,594 24,013
r Total current assets 159,328 190,425
Fixed assets:
I Property and equipment 695,860 689,988
Less accumulated depreciation 606,356 532,4 76
I Net property and equipment 89,504 157,512
r Other assets 482 482
Total assets $ 249.314 $ 348.419
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Liabilities and Net Assets
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Current liabilities:
Accounts payable and accrued expenses $ .27,749 $ 21,760
Deferred revenue 12,224 13,471
total current liabilities 39,973 35,231
Net assets. unrestricted 209,341 313,188
total liabilities and net assets $ 249.314 $ 348.419
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JOLLEY TROLLEY TRANSPORTATION OF CLEARWATER, INC.
STATEMENTS OF ACTIVITiES
Years ended September 30, 2005 and 2004
2005 2004
Support and revenue:
SUPpQrt:
City of Clearwater Operations Grant $ 219,520 $ 229,540
City of Clearwater Vehicle Maintenance Grant 50,000 50,000
City of Clearwater Office Rent Grant 11,700 11 ,700
Total support 281,220 291 .240
Revenue:
Fare revenue 113,544 117,597
Advertising revenue 77,311 67,904
Charter revenue 91,995 65,390
Interest income 1,249 812
Other revenue 3,662 2,910
Total revenue 287,761 254,613
Total support and revenue 568,981 545,853
Expenses:
Salaries - drivers 193,231 179,976
Salaries - administrative 71,448 69,389
Salaries - vehicle maintenance 42,691 36,976
Payroll taxes 33;044 25,736
Worker's compensation insurance 24,387 11,474
Trolley repairs and maintenance 32,375 49,288
Depreciation expense 73,880 81.723
Insurance expense 70.744 70,160
Fuel expense 77,642 60,126
Office supplies and expenses 6,135 3,023
Personnel costs 9,316 11,938
Travel
Utilities 5,833 5,429
Rental expense 23,258 23,597
Professional fees 6,475 5,400
Sales tax and other taxes 2,369 1,966
Bad debt 732
Total expenses 672,828 636,933
Changes in net assets (103,847) (91,080)
Net assets ~ unrestricted, beginning of year 313,188 404,268
Net assets ~ unrestricted, end of year $ 209,341 $ 313,188
See accompanying notes to financial statements.
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JOLLEY TROllEY TRANSPORTATION OF CLEARWATER, INC.
STATEMENTS OF CASH FLOWS
Years ended September 30, 2005 and 2004
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2005 2004
Cash flows from operating activities:
Changes in net assets $ (103,847) $ (91,080)
Adjustments to reconcile excess of support and
revenue over expenses to net cash provided by
operating activities:
Depreciation expense 73,880 81 ,723
(Increase) decrease in prepaid and other current assets (6,581) 795
Increase (decrease) in accounts payable and accrued 5,989 7,531
Increase (decrease) in deterred revenue (1,247) 6,402
Net cash (used) provided by operating activities (31,806) 5,371
Cash flows from investing activities:
Property and equipment expenditures (5,872) (6,110)
Net cash used by.investing activities (5,8n) (6,110)
Net (decrease) in cash (37,678) (739)
Cash at beginning of year 166,412 167,151
Cash at end of year / $ 128.734 ! 166.412
Supplemental disclosure of cash flows information:
Cash paid for interest $ -0- $ -0-
Cash paid for income taxes $ 499 $ -0-
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JOLLEY TROLLEY TRANSPORTATION OF CLEARWATER, INC.
NOTES TO FINANCIAL STATEMENTS
September 30, 2005 and 2004
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Oroanization
Jolley Trolley of Clearwater, Inc. (Organization) is incorporated under the laws of the
State of Florida as a nonprofit corporation. Its purpose is to provide a local and tourist public
transportation system between the islands of Sand Key and Clearwater ~hand the City
of Clearwater.
Basis of Acco"mting
The financial statements of JoUey 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 infonnation according to three
classes of net assets: unrestricted net assets, temporarily restricted net assets and
permanently restricted net assets. The Organization does not have any temporarily restricteci
or permanently restricted net assets.
Revenue Recognition
Revenue from Operations and Vehicle Maintenance Grants (see Note 4) is recognized
over the term of the Grants. All other revenues are recogn~ed when the earnings process
is substantially complete and services have been performed.
Prooe&/ and EauiDment
Property and equipment are stated at cost Depreciation is charged against earnings
over the estimated useful service period 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, 2005 and 2004
SUMMARY OF SIGNifiCANT ACCOUNTING POLICIES (Continued)
Accountinp 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 I~bilities 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 Servi~
No amounts have been reflected in the financial statements for donated services
because the criteria for recognition under SFAS 116 have not been satisfied.
INCOME "(AXES
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, 2005 and 2004 are as follows:
Trolley vehicles
Furniture and office
Signage
Garage equipment
Estimated
years of
useful
?nOfi ?004 ~rvit'.p
$ 672,514 $ 667,491 5
17,230 17,230 5
1,020 1,020 5
5,096 4,247 5
Total property
and equipment
$ 695,860
$ 689.988
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NOTE 4:
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JOLLEY TROllEY TRANSPORTATION OF CLEARWATER, INC.
NOTES TO FINANCIAL ST ATEMSNTS
September 30, 2005 and 2004
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 30,2005 and 2004 was $219,520 and
$229,540, $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 commib'nentortennination 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, 2005 and 2004. The funding
agreement will terminate as of September 30, 2005.
On September 8, 2005 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 2005 through September
2006.
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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 $1,105 through February 16, 2006.
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 50% and 54% of
the Organization's support for the years ended September 30, 2005 and 2004, respectively,
came from City of Clearwater grants.
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John J. McKnight, Jr., CPA
Robert P. Symanski, CPA
Michael Drabin, CPA
~y"manski + 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 JoUey Trotley Transportation of Clearwater, Inc. (A nonprofit
organization) as of and for the years ended September 30,2005 and 2004, and have issued our report
thereon da!~ November 28, 2005. We conducted our audit in accordance with auditing standards
generally accepted in the United States of America and the standards applicable to financial audits
contained in Government Audl1ing Standards, issued by the Comptroller General of the United States.
Compliance
. As part of obtaining reasonable assurance about whether Jolley Trolley Transportation of Clearwater, Inc. 's
'financial statements are free of material misstatement, we performed tests of its compliance with certain
provision of laws, regulations, contracts and grants, noncomplian~ with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion 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 re<tuired to be
reported under Government Auditing Standards.
1700 McMullen Booth Road, Suite A-6, Clearwater, Florida 33759 . (727) 725-8272 . Fax (727) 669-0252
E-mail: info@sym~skimcknight.com
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The Board of Directors
Jolley Trolley Transportation of Clearwater, Inc.
Inlema/Control Over Financial Reoortino
In planning and performing our audit, we considered Jolley Trolley Transportation of Clearwater, rnc. 's
internal control over financial reporting in order to determine our auditing procedures for the purpose of
expressing our opinion on ~ 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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Clearwater, Florida
November 28, 2005
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