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CLEARWATER MARINE AQUARIUM/RECOMMENDATIONS FOR SPECIAL EVENTS GRANTS FUNDING PILOT PROGRAM ~- tel' ~~ ~ ~(" ~ 7:. ..... . f::J V ~ Aquarium tf April 9, 1998 Ms. Jean Sherry City Manager's Office City of Clearwater 100 S. Osceola Avenue P.O. Box 4748 Clearwater, FL 33758-4748 Dear Ms. Sherry: .,.' ., Enclosed is the Clearwater Marine Aquarium's application for a City of Clearwater Grant to expand our special event, Art for the Animals, on November 14, 1998. We held this event for the first time in 1997 and it was well-received; this year, we would like to triple the number of artists involved (from 15 to 45) and triple the attendance (from 135 to 400-500 people). We feel this is a very realistic goal that can be attained through a strong and creative marketing plan. We respectfully request a grant in the amount of $5000.00 from the City of Clearwater to be used for marketing purposes. Art for the Animals will provide citizens of Clearwater with a stimulating recreational event combining art, culture, music, and of course, our beautiful marine environment. The target audience is diverse: young professionals, artists, naturalists, families, students and seniors will all find fun at Art for the Animals. In addition to the beautiful artwork available by silent auction, there will also be live music, food and beverages, guest celebrities and presentations by our very own "stars," the dolphins, otters, sea turtles and stingrays here at the Clearwater Marine Aquarium! This event will benefit Clearwater citizens culturally, environmentally and recreation ally; it will also benefit the Aquarium, as proceeds will be used to enlarge and enhance our many exhibits. And, as one of Clearwater's premier attractions, continuous improvement of the Aquarium provides significant benefits to our all-important tourism industry. We hope that the City of Clearwater agrees and will support Art for the Animals through a special events grant. Please feel free to call me with any questions; I look forward to hearing from you soon and hopefully working together on Art for the Animals! Sincerely, ~< /f'~ cK:~1~ Marianne Klingel Director of Public Relations Dedicated to marine animal rescue and rehabilitation, environmental education and marine research . 50l(C) (3) Not For Profit 249 Windward Passage. Clearwater, FL 34630-2250 . Phone (813) 447-0980 . Fax (813) 442-9466 - CITY OF CLEARWATER SPECIAL EVENTS GRANT FUNDING APPLICATION For Assistance Phone: (813) 462-6596 Print or type. If necessary, use additional sheets of paper to complete the application. 1. EVENT TITLE: Art for the Animals 2. APPLICATION INFORMATION: Organization: Address: Clearwater Marine Aquarium 249 Windward Passage Clearwater, FL 33767 Marianne Klingel Director of Public Relations (813) 441-1790, ext. 21 (home) (work) (813) 442-9466 (fax) Contact person: Title: Telephone: e Legal Name: Clearwater Marine Aquarium Year of Incorporation 1972 or Date of Application Charter Number: 722979 Check if SOIc3 X Month and year organization was created: 1972 Describe the organization's major activities Envirnnmpnt".<Il Education. marine research, and the rescue, rehabilitiation and release of marine animals. e Describe event management experience: CMA has been actively involved in fundraising through special events such as festivals,art shows, etc., for the past 25 years. These attaclunents must be provided: A. Most recent Financial Statement B. Certification of non-profit status C. Letter(s) of Commitment for matching funds D. Listing of current Board of Directors E. Proposed Event Marketing plan F. Preliminary Application for Special Event, if applicable;'] ~ j2~- ;?;({I~-~ ~/-{~J~~/-J-z/~.Z:; Signature Authorized Board Member Y/f/ft,5/' Date The City of Clearwater reserves the right to reject or fund applicants at a level lower than requested. e City of Clearwater Special Events Grant Funding Application Page 2 3. EVENT INFORMATION: A. Event Description and purpose: Art for the Animals is an evening event which will feature the work of 40-50 artists available by silent auction, along with food, beverages, music and animal presentations. The purpose of the event is to provide an enjoyable ~v~nt to thp public while generating public awarenpss ;'lnrl rpvpnl1P for f"hp A'luari'lUl B. c. e D. E. Primary Objective of the Event: To provide Clearwater citizens with a fun cultural event that is also marine-oriented and very entertaining. Also to raise fund for the Aquarium and increase the public's awareness of our facility, which in turn leads to increased patronage and tourism. Primary Benefits to the Citizens of Clearwater: There are recreational benefits (having a good time) and also cultural benefits (increased interaction with art and artists) and tourism benefits (positive exuereince for visitors in the area who attend, as well as positive publicity through marketing.) Has this event been held in the past? X yes no Ifso,when? Nov. 1997 Where? CMA Why was it successful? excellent feedback from attendees; raised $3000 for CMA How will these grant funds expand this event? Marketing efforts will generate many attendees and more income. We will have 3X number of artists and artwork this year so the attendees will have a great show to choose from. Date(s) of planned event: November 14, 1998 F. Location(s) of pI armed event: Clearwater Marine Aquarium, second floor, inside building and outside on our new waterfront sundeck Go Anticipated number of attendees: 500 H. Target Audience (age group, ethnic diversity, geographic reach): Young professionals, students, artists. naturalists. seniors. tourists I. Jo e Who will be managing this event and what are their qualifications (attach resume Of 10 bl) flarianne Klingel, Director of Publi.c Relations I app lca e: resume attached What other organizations will be involved in this event: local art centers, Crab House Restaurant, Tommy Duff's Irish Aviation Pub K. How will profits from this event be used: To enhance and improve exhibits and animal habitats in the Clearwater Marine Aquarium 2 e City of Clearwater Special Events Grant Funding Application Page 3 5. GRANT REQUEST (Funds) A. Amount of funding requested (not to exceed $10,000): $5000.00 B. Describe in detail what these funds will be used for: Note: Exhibit I lists available City services. Marketing: an aggressive campaign to really establish this event as an annual fund raiser that is fun to attend! See attached Marketing Plan. C. Date that the City funding will be needed September 1, 1998 6. MATCHING FUNDS REQUIREMENT e A. e Describe in detail the source of matching funds which must be at least 50% of the grant request (in-kind and/or cash with a minimum of one-half in cash) and how the funds will be used: Cash Match of $1250.00 from Clearwater Marine Aquarium to be used for art display equipment construction/rental, signage, program printing, and screen printing t-shirts. In-kind match value $1440.00 from Clearwater Marine Aquarium C'onsisting of staff time (15 staff working 8 hours @ 12.00 hr = $1440.00) 7. ADDITIONAL INCOME / RESOURCES A. List any known or expected additional grants or sponsors and their contributions in support of this event: Artwork from 40-50 artists (donated) approx. value: $4000 Crab House Restaurant, food sponsor approx. value: 1000 Beverages: $600 Music: $350 B. List all sources of anticipated event revenue: City Grant Ticket sales Beverage sales t-shirt sales Sunset Sam feeding raffle memberships silent auction gift shop sales donations c. List volunteer resources 30 of CMA' s volunteers will each contribute four hours to the event = 120 vol. hours 3 e City of CleaIWater Special Events Grants Funding Application Page 4 8. TOTAL EVENT BUDGET Item Marketing Food Beverages Artwork Display equipment Program printing T-shirt printing Signage/permits Staff salaries e Total Cost Source City Grant Ticket sales Silent allct-ion Beverage sales T-shirt sales Gift shop sales Raffle Memberships/Donations EXPENSES Cost $ 5000 1000 600 4000 250 400 500 100 1440 $ 13,290 INCOME e Total Income 4 Funding Source City Grant Corpor~tp ~rnn~nr " tI Individual sponsors Applir~nt cash " " " " " " Applic~nt in-kind Amount (Cash or In-kind) $ 5000 ]].2')0 11,000 1.000 800 400 700 1')0 $ 22,800 e e e 'j).ter l...~~~ ~ I:::J!II:. ..... . t::J o ~ Aquarium April 9, 1998 Ms. Jean Sherry City Manager's Office City of Clemwater 100 S. Osceola Avenue P.O. Box 4748 Clemwater, FL 33758-4748 Dear Ms. Sherry: Please accept this letter of commitment for a $1250.00 cash match from the Clearwater Marine Aquarium to the city of Clemwater Special Events Grant Fund to help finance the event Art for the Animals, to be held on November 14, 1998. We will use our cash match to build art display equipment, print programs, create signage, and screen print commemorative t-shirts. The Clemwater Marine Aquarium will also provide an in-kind match of $1440.00 in staff time to the event (15 staff members working 8 hours @ 12.00 hr = $1440.00). If you have any further questions about our matching funds or the Art for the Animals event, please feel free to contact me at 441-1790, ext. 28. Thank you; I look forward to working with you on tins event soon! Sincerely, Dennis Kellenberger Executive Director Dedicated to marine animal rescue and rehabilitation, environmental education and marine research . 501(C) (3) Not For Profit 249 Windward Passage . Clearwater, FL 34630-2250 . Phone (813) 447-0980 . Fax (813) 442-9466 e e e Internal Revenue Service Department of the Treasury Dlstrlct- Director .31 Hopkins Plaza. Baltimore. Md. 21201 Person to Contact: EP/EOTax Examiner Baltimore District t>. Telephone Number: (410) 962-6058 CLEARWATER MARINE AQUARIUM 249 WINDWARD PASSAGE CLAERWATER, FL 34630-2250 Refer Reply to: EP/EO:CSU Room 817 Date: JUNE 3, 1996 Dear Sir/Madam: m~u~~~~~~~ ~%~ This is in response to your inquiry dated 04/22/96 requesting a . copy of the letter which granted tax exempt status to the above named organization. Our records show that the organization w~s granted exemption from Federal Income Tax under section SOI(c)()l of the Internal Revenue Code effective NOVEMBER, 1973. We ha\.:e also determined that the organization is not a private foundation because it is described In section S09(a)(2). Donors may deduct contributions to you under section 170 of the Code. As of January 1. 1984. you are liable for taxes under the Federal Insurance Contributions Act (social security taxes) on remuneration of $100 or more you pay to each of your employees during a calendar year. You are not liable for the tax imposed under the Federal Unemployment Tax Act (FUTA). You are required to file Form 990, Return of Organization Exempt From Income . Tax, only if your gross receipts each year are normally more than $25.000. However, if you receive a Form 990 package in the mail, please file the return even if you do not exceed the gross receipts test. If you are not required to file. simply attach the label provided. check the box in the heading to indicate that your annual gross receipts are normally $25.000 or less, and sign the l-eturn. A copy of our letter certifying the status of the organization is not available. ho....'ever. this letter r.lay be used to verify your tax-exempt status. Because this letter could help resolve any questions about your exempt status. it should be kept in your permanent records. Sincerely yours. ~~ Paul M. Harrington District Director CLEARWATER MARINE AQUARIUM BOARD MEMBERS tit OFFICERS * Ralph H Howes, President 2438 Enterprise Rd #2626 ,Clearwater, FL 34623 * Jim Graham, Vice President 28100 US 19 N. Suite 305, Clearwater, FL 34621 * Gany Moore, SecretaIy 1460 Gulf Blvd. Bldg 3 #405 Clearwater, FL 34630 * Al Priest, 2nd V.P. Dev. 723 Ponce de Leon, Belleair, FL 34616 * Don A Wilson, Treasuer 260 Edmore Rd. West Palm Beach, FL 33405 * Emma Whitney, Corr. Sec. 756 Eldorado Av., Clearwater, FL 34630 __ DIRECTORS Mary Blackmon 830 Gulfview Blvd # 1104, Clearwater, F L 33767 -7748 Adelle Blackman 2985 164th Ave N. Clearwater, FL 34620 Dorothy Brewer 660 Island Way #606 Clearwaater FI 33767 Buck Davidson 12111 S. Betty Lane Clearwater, FL 34616 Charlotte Endler 700 Island Way #506 Clearwater FL 33767 Mike Passmore 1118 State Rd 584 PO Box 3000 Oldsmar, FL 34677 Les Qual PO Box 67122, St. Petersburg, FL 33736-7122 Ken Rosenow 421 Gulfview Blvd. Clearwater, FL 34630 Jeff Sellers 1462 Crestview, Dunedin Fl 34689 WFFICIO OFFICER Dennis Kellenberger 1547 S. Betty Lone Cleorl"/ater FL 34616-2273 March 20, 1998 797-8399 (0) 791-3320 733-2419 FAX 791-3887 517-0179 (0) 443-0657 585-8004 (561) 833-1631 (407) 676-3449 442-5610 587-7887 536-9634 441-8900 854-2171 367-9426 447-3464 (0) 446-831 7 447-5597 442-9414 (O)~~] -1790 e e e MARIANNE KLINGEL 58 HIGHLAND AVENUE DUNEDIN, FL 34698 (813) 738-8438 EMPLOYMENT 1992- P .'esen t Director of Public Relations, Clearwater Marine Aquarium, Clearwater, FL. '" '" Coordinate all aspects of public relations for nonprofit marine facility. Responsibilities include: writing press releases, brochures, freelance articles and a weekly environmental column; editing the CMA newsletter; coordinating media visits; conducting fundraising events and networking with community leaders. 1992 - Present Recreational TherapistlDirector, Full Circle Program, Clearwater Marine Aquarium, Clearwater, FL. '" '" 1991 '" '" '" Developed a marine animal-assisted therapy program for children with physical or mental disabilities. Responsibilities include: client assessment and selection; therapy design, evaluation and documentation; fundraising and proposal writing; media coordination; networking and conference presentations; supervision of volunteers and interns; creation of program publications and brochures. Intern, Manatee Palms Adolescent Specialty Hospital, Bradenton, FL. (Paid internship during graduate work), Participated in and led recreational therapy activities including: aerobics, crafts, mask- making, and ropes course. Evaluated and documented patients through progress notes and full participation in treatment team meetings. Conducted an animal-assisted therapy program which combined patients with dogs from Southeastern Guide Dogs. e e e 1986 =-1990 Education Coordinator, Mote Marine Laboratory, Sarasota, FL. . . . * Led marine science summer camp for teenagers. Taught adult education marine science classes. Created educational brochures and exhibits. Coordinated community relations, special events and tours. EDUCATION 1991 M.S. Recreational Studies, Therapeutic Emphasis, University of Florida, Gainesville, Florida. 1986 B.A. Psychology, University of South Florida, Tampa, Florida. 1976 A.A., Brevard Community College, Cocoa, Florida. VOLUNTEER EXPERIENCE 1991 * 1990 * HCA Grant Center Hospital, Miami, Florida, and Theater of the Sea, Islamorada, Florida. Coordinated "Dolphincare," a recreational therapy program which provided emotionally disturbed adolescents with opportunities to learn about and interact with dolphins. Florida Horsemanship for the Handicapped, Gainesville, Florida. Assisted persons with disabilities with therapeutic grooming, walking, and riding activities. 1990 University Nursing Care Center, Gainesville, Flol'jda. * Led patients in recreational therapy activities. Conducted animal-assisted therapy sessions with patients. * e e e Art for the Animals Proposed Event Marketing Plan The Clearwater Marine Aquariwn will use the City of Clearwater grant funds to market Art for the Animals (November 14, 1998) through the following venues: June, 1998: Purchase advertisements for November issues: Tampa Bay Magazine, Florida Living Magazine, Accent Magazine July, 1998: Feature article in CMA newsletter August, 1998 Advance listings in Chamber of Commerce special events calendars and newsletters and Event Guide Magazine Notices to all art centers and galleries in Clearwater and surrounding communities September, 1998: Notices to all civic association and church newsletters October, 1998: Press releases to all media contacts (see attached list) PAS to radio stations, television stations and cable companies Flyers and posters designed and printed Mailed to CMA members/donors (approx. #2000) November, 1998: Advertisements purchased in papers: Beacon Leader Bee, Beach Views, Event Magazine, St. Petersburg Times, Tampa Tribune Feature stories, photo opportunities generated for papers listed above, specifically "Weekend" sections, and television stations Interviews on AM and FM radio stations Flyers/posters distributed throughout the Clearwater community HP OfficeJet Speed Dial/One-Touch Report Personal Printer/Fax/Copier Clearwater Marine Aquarium e Feb-05-98 11:57 AM Speed Dial Code Number Name FAX Number ~ 01 Channel 8 WFLA 225-2770 ~ 02 Bay News 9 437-2034 ~ 03 Channel 10 WTSP 576-6924 ~04 Channel 13FoxWTVT 871-3135 ~ 05 Channel 28 ABC 870-2828 ~ 06 Channel 44 WTOG 576-3942 ~ 07 Beach Bee 397-5900 ~ 08 Beach Views 593-3138 ~09 St. Pete Times 445-4119 ~1O Tampa Tribune 259-7676 11 Citrus C. Cbron. 1-352-563-3280 12 Fla. Suncoast Out. 298-0332 13 Ft. Meyers News. 1-941-334-0708 14 Senior Voice 595-0789 15 St. Pete Times 893-8675 e 16 Suncoast News 847-2902 17 Tampa Tribune 791-6826 18 Tampa Tribune 938-6479 19 Event Magazine 443-1544 20 Bradenton Herald 745-7097 21 Daily Planet 289-8010 22 Latino Internal. 1-813-931-9179 23 Ocala Star-Banner 1-904-867 -40 18 24 Orlando Sentinal 420-5286 25 City of Clearwater 562-4697 26 Paragon Cable 579-4981 27 Peninsula Cable. 397-6854 28 TCI Cablevision 734-9362 29 Vision Cable/Pine 791-1668 30 WCTV 1-813-854-2974 31 Time Warner Cable 578-1705 32 Sarasota Herald 1-941-957-5276 33 Spring Hill News 1-904-683-5011 34 St. Pete. Times 869-6233 35 St. Pete. Times 1-352-754-6133 36 St. Pete. Times 1-352-795-6876 e 37 Tropical Breeze 725-5290 38 Tampa Tribune 823-9163 39 CNN Atlanta 1 -404-827-1593 40 Accent Magazine 576-0622 41 Event Magazine 443-1544 42 Focus Entertain. 867 -4499 43 Fla. Living Mag. 1-904-730-7781 -- -------- 44 People 1-212-522-0794 45 Tampa Bay Mag. 281-1920 e 46 Weekly Planet 289-8010 47 88.1 wns JOY FM 1-914-753-2963 48 92 WDBO 1-402-291-4879 49 92.5 WYUU 579-9111 50 STAR 97 WRBQ 261-2851 51 JACOR Broadcast. 839-0234 52 98 ROCK 573-5418 53 99 WQYK 577 -1324 54 102.5 THE POINT 578-2477 55 WGUL 781-4375 56 WARM 94.9 576-809 8 57 METRO Network 876-5125 58 1500 AM WPSO 724-5997 59 WKES 397 -6425 60 WTAN 1340 AM 934-0051 group 61 Top 10 Mix ..01 Channel 8 WFLA 225-2770 .. 02 Bay News 9 437-2034 .. 03 Channel 10 WTSP 576-6924 e ..04 Channel 13 FoxWTVT 871-3135 .. 05 Channel 28 ABC 870-2828 ..06 Channel 44 WTOG 576-3942 .. 07 Beach Bee 397 - 5900 .. 08 Beach Views 593-3138 ..09 St. Pete Times 445-4119 ..10 Tampa Tribune 259-7676 group 62 Rest/Press 11 Citrus C. ChrOD. 1-352-563-3280 12 Fla. Suncoast Out. 298-0332 13 Ft. Meyers News. 1-941-334-0708 14 Senior Voice 595-0789 15 St. Pete Times 893-8675 16 Suncoast News 847-2902 19 Event Magazine 443-1544 17 Tampa Tribune 791-6826 18 Tampa Tribune 938-6479 38 Tampa Tribune 823-9163 group 63 Rest Press 20 Bradenton Herald 745-7097 21 Daily Planet 289-8010 e 23 Ocala Star-Banner 1-904-867 -4018 24 Orlando Sentinal 420-5286 32 Sarasota Herald 1-941-957-5276 33 Spring Hill News 1-904-683- 5011 34 St. Pete. Times 869-6233 35 St. Pete. Times 1-352-754-6133 36 St. Pete. Times 1-352-795-6876 37 Tropical Breeze 725-5290 group 64 Mise TV/Cable e 25 City of Clearwater 562-4697 26 Paragon Cable 579-4981 27 Peninsula Cable. 397-6854 28 TCI Cablevision 734-9362 29 Vision Cable/Pine 791-1668 30 WCTV 1-813-854-2974 31 Time Warner Cable 578-1705 39 CNN Atlanta 1-404-827 -1593 group 65 Top 10 Radio ~ Note: The first ten Speed Dial codes (01 through 10) may be accessed by pressing a One-Touch Speed-Dialing key. 1.2.0 H - e e - e You are invited to visit the Clearwater Marine Aquarium! Come experience the wonder of Florida wildlife at oW" "halfway house" for injured sea creatures. Located one mile from beautiful Clearwater beach, the Clearwater Marine Aquarium offers guests a unique opportunity to learn about our local marine environment and the animals who live in it The Clearwater Marine Aquarium is a non-profit facility dedicated to the rescue, rehabilitation and release of whales, dolphins, sea turtles and otters. We release many animals back to the wild; handicapped animal~ are provided with a permanent home at the Aquarium. Our many resident animals include SWJ.Set Sam, an Atlantic bottlenose dolphin; Webster and Garth, the whimsical river otters; and many species of sea turtles. You will enjoy watching oW" staff and volunteers care for the animals and share their inspiring stories with you. If you're in the mood to get wet, you'll love Stingray Beach, where you can touch sting rays, hemrit crabs, snails and starfish! You'll also want to visit our two story, 55,000 gallon mangrove/seagrass tank, where you will have a "fish-eye" view of the wide variety of fish, such as trout, grouper, snook, snapper and sharks which inhabit our local waters. And don't forget to browse through CMA' s marine-theme gift shop to fmd a present for that SPeCial someone on your list ... or maybe even for yourself1 The Clearwater Marine Aquarium is decidedly different. If you love the sea and all its creatures, you'll enjoy visiting us! We invite you to stop by and experience some of the most naturally wonderful things about F1orida. We're here to make sure they're around for a long, long time ... won't you join us? The Clearwater Marine Aquarium 249 Windward Passage Clearwater, FL 34630 (813) 441-1790 A CMA trainer interacts with orphaned otters. ,- ~il: Marine mammal stranding team helps dolphins. 1/'-"- Education program provides hands-on learning. CMA biologist examines an injmed sea turtle. I Child and dolphin meet in therapy ~ession. e CONTENTS e Independent Auditor's Report Financial Statements Statement of Financial Position Statement of Activity Statement of Cash Flows Notes to Financial Statements e e e e RICHARD j. JONES, JR., CPA PAULJ. CRAWFORD, CPA Crawford & J (())ne~ o CERTIFIED PUBLIC ACCOUNTANTS MEMBERS: AMERICAN INSTITUTE OF CPAs FLORIDA INSTITUTE OF CPAs INDEPENDENT AUDITOR'S REPORT December 18, 1997 To The Board of Directors Clearwater Marine Aquarium, Inc: Clearwater, FL 34630 We have audited the accompanying statement of financial position of Clearwater Marine Aquarium, Inc. (a nonprofit organization) as of September 30, 1997 and 1996, and the related statements of activity and cash flows for the years then ended. These financial statements are the responsibility of Clearwater Marine Aquarium'S management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial 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 audits provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Clearwater Marine Aquarium, Inc., as of September 30, 1997 and 1996 and the changes in its net assets and its cash flows for the years then ended in conformity with generally accepted accounting principles. CRAWFORD & JONES, CPA'S 1227 ROGERS STREET, SUITE F · CLEARWATER, FLORIDA 33756 (813)441-9435. FAX(S13)441-4233 e e e CLEARWATER MA~:~E AQUARIUM, INC. STATEMENT OF FINANCIAL POSITION September 30, 1997 and 1996 Assets: Cash Accounts Receivable Nonmenetary Donations At Estimated Realizable Value Inventory Prepaid Expenses Investments Property, Equipment, And Improvements, Net of Depreciation Other Assets 1997 1996 $ 6,294 $ 8,185 12,752 36,373 94,500 39,500 17,397 15,542 9,375 11,843 94 65,734 1,998,297 1,887,131 8,420 9,191 $2,147,129 $2,073,499 Total Assets Liabilities: Accounts Payable And Accrued Expenses Notes Payable Guarantor Liability $ 36,269 20,000 317,751 374,020 $ 45,632 90,602 317,751 453,985 Total Liabilities Net Assets: Unrestricted: Undesignated 1,773,109 1,536,173 Temporarily Restricted 83,341 1,619,514 $2,073,499 Total Net Assets 1,773,109 $2,147,129 Total Liabilities And Net Assets See notes to financial statements e e e CLEARWATER MARI~S ~QUARIUM, INC. STATEMENT OF ACTIVITY Year Ended September 30, 1997 and 1996 unrestricted Net Assets: Support And Revenue: Admissions Donations Sales - Gift Shop Turtle Watch Revenue Tuition And Memberships Other Income 1997 1996 $ 366,758 $ 334,916 327,803 287,689 151,590 141,246 74,300 74,300 54,351 40,530 1, 033 3,260 975,835 881,941 505,657 490,470 137,498 124,627 103,010 76,963 74,305 73,597 1, 770 6,995 822,240 772,652 Total Support and Revenue Expenses: Program Services Management And General Fund Raising Cost Of Sales - Gift Shop Interest Expense Total Expenses Increase In Unrestricted Net Assets 153,595 109,289 83,341 83,341 153,595 192,630 147,996 153,595 340,626 1,619,514 1,278,888 $1, 773,109 $1,619,514 Temporairily Restricted Net Assets: Contributions Increase In Temporarily Restricted Net Assets Increase In Net Assets Before Extraordinary Item Extraordinary Item Increase In Net Assets Net Assets At Beginning Of Year Net Assets At End Of Year See notes to financial statements CLEARWATER MAkINE AQUARIUM, INC. STATEMENT OF'CASH FLOWS Year Ended September 30, 1997 and 1996 e Cash Flows From Operating Activities: Change In Net Assets Adjustments To Reconcile Change In Net Assets To Net Cash From Operating Activities: Depreciation Expense Extraordinary Item (Increase)/Decrease In Operating Assets: Accounts Receivable Prepaid Expenses Nonmonetary Donations At Estimated Realizable Value Inventory Investments Other Assets Increase/(Decrease) In Operating Liabilities: Accounts Payable And Accrued Expenses Net Cash Provided by Operating Activities e Cash Flows From Investing Activities Purchase Of Equipment And Improvements Book Value Of Fixed Assets Sold Net Cash Used By Investing Activities Cash Flows From Financing Activities: Proceeds From Short-Term Borrowings Payments On Note Payable Payments On Installment Loans Net Cash Used By Financing Activities Net (Decrease)/Increase In Cash Cash At Beginning Of Year Cash At End Of Year Supplemental Disclosure: Interest Paid During The Year Ended September 30, 1997 and 1996 e 1997 $ 153,595 52,471 23,621 2,468 (55,000) ( 1,855) 65,640 771 (9,363) 232,348 (170,637) 7,000 (163,637) (64,090) (6,512) (70,602) $ (1,891) 8,185 6,294 $ 1,770 See notes to financial statments 1996 $ 340,626 47,340 (147,996) (20,200) (5,424) (24,400) 2,059 (64,774) 6,060 9,087 142,378 (71,668) 1, 605 (70,063) 10,810 (69,851) (7,375) (66,416) 5,899 2,286 $ 8,185 $ 6,995 e e e CLEARWATER MARINE AQUARIUM, INC. NOTES TO FINANCIAL STATEMENTS Year Ended September 30, 1997 and 1996 1. Nature of Organization and Significant Accounting Policies Nature of Organization The Clearwater Marine Aquarium, Inc. (The Center), a not-for profit Corporation was organized under the laws of the state of Florida in 1972. The organization was formed as a multi-purpose marine museum to promote education and research through public exhibits and outreach programs. In carrying out the basic purpose, the Center has established facilities that promote conservation including rescue and rehabilitation services. The facilities also are used for educational activities related to the Center's purpose. The siqnificant accountinq policies are as follows: Method of accounting: The financial statements of the Center have been prepared utilizing the accrual basis of accounting. Financial statement presentation: The Center adopted Statement of Financial Accounting Standards (SF AS) No. 117, "F inancial Statements of Not-for-Profi t Organizations. " Under SFAS No. 117, the Center is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted, temporarily restricted, and permanently restricted. In addition, the Center is required to present a statement of cash flows. The Center has discontinued its use of fund accounting and, accordingly, has reclassified its financial statements to present the three classes of net assets. Contributions: The Center adopted SFAS No. 116, "Accounting for Contributions Received and Contribution Made," whereby contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence and/or nature of any donor restrictions. Restricted net assets are reclassified to unrestricted net assets upon satisfaction of the time or purpose of the restrictions. Restricted net assets are reported as unrestricted support if the restrictions are met in the same reporting period. Investments: The Center adopted SFAS No. 124, "Accounting for Certain Investments held by Not-for-Profit Organizations." Under SFAS No. 124, investments in marketable securities with readily determinable fair values and all investments in debt securities are valued at their fair values in the statement of financial position. Unrealized gains and losses are included in the change in net assets. e -e e 1. Nature of Organization and Significant Accounting Policies (con't) Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Inventory: Inventory is stated at lower of cost or market value, using the first-in, first-out method. Property, equipment and improvements: Property, equipment and improvements are carried at cost. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. Income tax status: The Center is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code. 2. Investments Investments are stated at fair value and are summarized as follows as of September 30, 1997 and 1996 Cost Fair Value Carrying Value 1997 Money Market Funds 94 94 94 1996 Money Market Funds $ 65,734 $ 65,734 $ 65,734 3. Property, Equipment, and Improvements Property, equipment, and improvements consist of the following: 1997 1996 Land Buildings and improvements Furniture, fixtures, and equipment Other 1,301,610 756,354 201,824 114,819 2,374,607 (376,310) $1,998,297 $1,301,610 623,520 187,879 100,961 2,213,970 ( 326,839) $1,887,131 . Less accumulated depreciation 4. Notes Payable e Promissory note, due on demand with interest at 10%, guaranteed by third parties. 1997 $ 20,000 1996 $ 20,000 Installment Loan, payable in monthly payments of $930. 6,512 Bank loan with interest at 8.25%, payable in monthly payments of $1,361, including interest; secured by real property. Total Notes Payable $20,000 64,090 S 90,602 5. Temporarily Restricted Net Assets Temporarily restricted net assets are available for the following purposes: Capital Improvements Sara Cooper Wing 1997 1996 $ 83,341 $ 6. Contributed Services e A substantial number of unpaid volunteers have made significant contributions of their time to develop the Center's programs principally in membership development, educational programs, fund raising and daily operations. The value of this contributed time is not reflected in these financial statements since it is not susceptible to objective valuation. The total hours contributed per the Center's records is approximately 30,000. 7. Land and Buildings The City of Clearwater donated the land and buildings presently occupied by the Center. The property is used for current operations. The assigned book value is based upon the fair market value of the land excluding buildings at the date of donation, September 12, 1986. This value was determined by a MAl appraisal dated September 22, 1986. A deed restriction exists which authorizes the Center to borrow up to $600,000 using the property as collateral only for purposes of facility expansion and development. (See Note 4) 8. Land e On December 21, 1989, a parcel of land in Crystal Beach, Florida was donated to the Center. The market value of the property based upon a MAl appraisal dated December 27, 1989, was $400,000. A restriction was placed on the gift providing that the Center keep the land in its natural and unimproved state with an exception for improvements such as trails, boardwalks, piers and buildings used in the operation of the Center's programs. No residential or commercial use of the property is permitted. Due to these restrictions, the land is included in these financial statements at $1.00. 9. Bank Loan Deficiency e On June 14, 1988 certain properties which had been acquired ln conjunction with the facility expansion project were conveyed by general warranty deed in lieu of a foreclosure. The properties were encumbered by a single payment promissory note in the amount of $1,539,594. The properties were sold for less than the appraisal value. However, the Bank established the deficiency based on the fair market value as estimated in the appraisal of all properties. The deficiency computation by the Bank is as follows: Note principal Accrued interest Expenses Sales commission $1,539,594 231,466 34,101 125,000 Total Due Appraised value Deficiency amount 1,930,161 (1,370,000) $ 560,161 The Center recorded a deficiency in the amount of $515,725. The difference of $44,436 relates to interest accrued by the Bank from June 14, 1988, date of conveyance, to October 28, 1988, date of sale. e There is a reasonable possibility that the additional interest may have been incurred, however no accrual has been made for this contingency. On April 6, 1989 certain Guarantors agreed to pay the bank $367,728 to reduce the Bank Loan Deficiency to $147,997. The Center entered into agreements with the Guarantors for repayment. As of September 30, 1991, donations to the Center by the Guarantors of $49,977 reduced the repayment liability to $317,751. The reimbursement agreement with the Guarantors requires repayment of principal without interest. The bank loan deficiency in the amount of $147,997 was deemed to be extinguished as a matter of law during the fiscal year ended September 30, 1996. The applicable statute of limitations for enforcement of this debt under Florida Law lapsed. The amount is reported in the statement of activities as an extraordinary item. 10. Functional Allocation of Expenses The costs of providing the various programs and supporting services have been reported on a functional basis in the statement of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited. e -- e e