American - Press - American Paint Horse Association

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Statements of Cash Flows For the Years Ended December 31, 2008 and 2007 Cash Flows from Operating Activities 2008 2007 Increase in net assets $ 1,757 $ 120,884 Adjustments to reconcile the increase in net assets to net cash provided by operating activities Add Depreciation expense 689 1,278 Investment return 85,138 (33,450) Receivables (increase) decrease 2,243 5,909 Prepaid expenses (increase) decrease (7,062) - Payables increase (decrease) 5,931 (4,139) Inventory (increase) decrease - (4,825) Net Cash Provided by Operating Activity 88,696 85,657 Cash Flows From Investing Activity Investment income, net (85,138) 33,450 Investments (increase) decrease, net 98,461 (38,605) Purchase of property and equipment - (141) Net Cash Provided by Investing Activity 13,323 (5,296) Cash Flows From Financing Activity Note payable - related party increase (decrease) (20,943) (20,000) Net Cash Provided from Financing Activity (20,943) (20,000) Net Increase (Decrease) in cash 81,076 60,361 Cash, Beginning ofYear 102,523 42,162 Cash, End of Year $ 183,599 $ 102,523 Notes to Financial Statements For the Years Ended December 31, 2008 and 2007 1. Organization and summary of significant accounting policies Organization The Foundation (Foundation) is organized for the purpose to reward and educate young horsemen and women and to preserve the history of the breed’s accomplishments and artifacts associated with the outstanding bloodlines of the breed and individuals and institutions who contributed to these accomplishments. The Foundation resulted from a merger in 2005 between the American Paint Horse Heritage Foundation and the American Paint Horse Association Youth Development Foundation and was accounted for as a pooling of interest under accounting principles generally accepted in the United States of America. It is chartered as a non-profit corporation in the state of Texas and is exempt under U.S. Internal Revenue Service Revenue Code 501(c)(3) as a charitable publicly supported organization under 509(a)(1). Basis of Presentation Financial statement presentation follows Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. The Foundation is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets; temporarily restricted net assets; and permanently restricted net assets. Contributions received are recorded as unrestricted, temporarily restricted or permanently restricted support depending on the existence and/or nature of any donor restrictions. The financial statements of the Foundation have been prepared on the accrual basis of accounting and, accordingly, reflect all significant receivables, payables, and other liabilities. 48 Cash For purposes of the Statements of Cash Flows, the Foundation considers cash to be amounts in demand accounts and money market accounts. Investments The Foundation carries its investments in debt securities and common stock equities at their fair values in the statement of financial position. Unrealized gains and losses are included in net assets in the accompanying statement of activities. Federal IncomeTax The Foundation is an exempt organization under Section 501(c)(3) of the U.S. Internal Revenue Code. Revenue earned from its Internal Revenue Service exempt purposes is not subject to federal income tax.The Foundation qualifies for the charitable contribution deduction under Section 170(b)(1)(A) and has been classified as an organization that is not a private foundation under Section 509(a)(1). In 2008 and 2007, the Foundation had no unrelated earnings over the statutory $1,000 exclusion. Concentration of Credit Risk Financial instruments that potentially subject the Foundation to concentrations of credit risk consist principally of cash in reputable financial institutions located in Fort Worth, Texas. Use of 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 certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
2. Investments The Foundation has investments in common stock equities through professionally managed funds. The investments held by the Foundation on December 31, 2008: Cost/ Market Carrying Value Dividends Value Mutual funds $ 171,575 $ 10,042 $ 173,992 Bonds and certificates of deposits held by the Foundation on December 31, 2008: Investment Maturity Interest Cost/ Market Description Date Ranges Rate Ranges Carrying Value Value Bonds and 2/27/08 to 4.10% Certificates of deposit 1/15/35 to 5.50% $ 536,470 $ 536,470 The Foundation has investments in common stock equities through professionally managed funds. The investments held by the Foundation on December 31, 2007: Cost/ Market Carrying Value Dividends Value Mutual funds $ 186,474 $ 9,486 $ 286,650 Bonds and certificates of deposits held by the Foundation on December 31, 2007: Investment Maturity Interest Cost/ Market Description Date Ranges Rate Ranges Carrying Value Value Bonds and 2/27/08 to 4.07% Certificates of deposit 3/15/35 to 5.50% $ 522,273 $ 522,273 The following schedule summarizes the Foundation’s investment return and its classification in the Statements of Activities for the years ended December 31, 2008 and 2007 2008 2007 Investment income, interest $ 17,025 $ 21,361 Investment income, dividends 10,042 9,486 Realized gains/(losses), net 1,772 (2,905) Unrealized gains/(losses), net (113,977) 5,508 Total investment return $ (85,138) $ 33,450 3. Property and equipment 2008 2007 Furniture and equipment $ 8,944 $ 8,944 Collectables 366,950 366,950 375,894 375,894 Less accumulated depreciation 7,752 7,063 Property and equipment, net 368,142 368,831 Depreciation expense $ 689 $ 1,278 4. Restrictions on net assets Permanently restricted net assets are to provide a permanent endowment, with investment income restricted for scholarship purposes. At December 31, 2008 and 2007, the permanently restricted net assets balance was $655,676 and $610,519 respectively. 5. Related Party A portion of the Foundation’s day-to-day functions are conducted by employees of the American Paint Horse Association (Association). The Association is a separate corporation (not-for-profit) organized for the purpose of collecting, recording and preserving the pedigree of the Paint Horse. The Foundation is managed by a board of directors which consists of members of the Association. These services and expenses are listed as an unrestricted support contribution and then as corresponding expenses per the criteria for recognition under generally accepted accounting principles. At December 31, 2008 and 2007, the amount was $12,000 and $12,000, respectively. In addition, the Association made unrestricted contributions in 2008 and 2007 of $36,975 and $75,612, respectively. 49
Page 1 and 2: American Paint Horse Association 20
Page 3 and 4: Contents 2 A Message from the Execu
Page 5 and 6: A Message from the President I am p
Page 7 and 8: Williams of Mackay, Queensland, Aus
Page 9 and 10: Corporate Partners The Official Bar
Page 11 and 12: 2008 Board of Directors (continued)
Page 13 and 14: Regional Clubs APHA encourages all
Page 15 and 16: APHA Staff Directory Office Hours:
Page 17 and 18: Norway 91 Germany 1,521 Italy 480 S
Page 19 and 20: Germany 6,132 Italy 1,597 onaco 2 C
Page 21 and 22: Sweden 57 Norway 18 Germany 574 Ita
Page 23 and 24: California 6,430 Membership Distrib
Page 25 and 26: Approved Show Participation APHA-Ap
Page 27 and 28: World Show Participation Championsh
Page 29 and 30: Paint racing “Grips” the nation
Page 31 and 32: 2008 - 2009Youth National Directors
Page 34 and 35: 32 A Message from the American Pain
Page 36 and 37: The Mission of the American Paint H
Page 38 and 39: 36 American Paint Horse Foundation
Page 40 and 41: 38 Legacy of Color Donors Foundatio
Page 42 and 43: 40 Independent Auditor’s Report T
Page 44 and 45: Statements of Activities For the Ye
Page 46 and 47: Federal IncomeTax The Association i
Page 48 and 49: 46 Independent Auditor’s Report T
Page 52: 50 P.O. Box 961023 Fort Worth,Texas

American - Press - American Paint Horse Association

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