pdf 10.7 mb - Multnomah Athletic Club

2008 Financial Statements
STaTemenTS Of ChangeS In
UnreSTrICTeD neT aSSeTS (ClUB eqUITy)
Board-designated
Facility Undesig-
Replacement Property nated Total
Balance, December 31, 2006 $ 9,912,221 $ 32,840,685 $ 801,234 $ 43,554,140
Change in unrestricted
net assets from operations - - (2,108,603) (2,108,603)
Designated revenues and
expenses:
Initiation fees - 1,832,437 - 1,832,437
Interest on investments 601 66,996 116,549 184,146
Realized gain on investment 363,149 - - 363,149
Unrealized gain on investment 389,958 - - 389,958
Uncollectible initiation fees - (18,600) 18,600 -
Gain on sale of property,
plant and equipment - 6,960 - 6,960
Taxes on unrelated
business income (135,897) (25,030) (118,993) (279,920)
Allocation of depreciation
in accordance with the
Club’s financial policy - (1,686,967) 1,686,967 -
Board transfers - 450,000 (450,000) -
Board transfers (per
Club policy) 1,000,000 (1,000,000) - -
Balance, December 31, 2007 11,530,032 32,466,481 (54,246) 43,942,267
Change in unrestricted net
assets from operations - - (1,406,361) (1,406,361)
Designated revenues and
expenses:
Initiation fees - 1,635,469 - 1,635,469
Interest on investments (374) 31,201 29,357 60,184
Realized gain on investment 340,647 - - 340,647
Unrealized loss on investment (3,237,833) - - (3,237,833)
Gain on curtailment of
pension plan - - 199,896 199,896
Gain on sale of property,
plant and equipment - 500 - 500
Taxes on unrelated business
income (84,745) (9,451) (66,208) (160,404)
Allocation of depreciation
in accordance with the
Club’s financial policy - (1,506,901) 1,506,901 -
Board transfers (per
Club policy) 300,000 (300,000) - -
Balance, December 31, 2008 $ 8,847,727 $ 32,317,299 $ 209,339 $ 41,374,365
See accompanying notes.
accompanying statements of activities.
The Club adopted the provisions of Statement of Financial Accounting Standards
(SFAS) No. 157, “Fair Value Measurements” effective January 1, 2008.
SFAS 157 defines fair value as the price that would be received to sell an asset or
paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between
market participants at the measurement date.
SFAS No. 157 establishes a hierarchy for inputs used in measuring fair value
that maximizes the use of observable inputs and minimizes the use of unobservable
inputs by requiring that the observable inputs be used when available. The
hierarchy is segregated into three levels based on the reliability of inputs as follows:
level 1 – Valuations based on quoted prices in active markets for identical assets
or liabilities that the Club has the ability to access. Valuation adjustments
and block discounts are not applied to Level 1 instruments. Since valuations
are based on quoted prices that are readily and regularly available in an active
market, valuation of these products does not entail a significant degree of
judgment. All of the Club’s investments are considered Level 1.
level 2 – Valuations based on quoted prices in markets that are not active or
STaTemenTS Of CaSh flOwS
for the years ended December 31, 2008 and 2007
Cash flows from operating activities:
Cash received from members
Cash paid to suppliers and employees
Interest received
Taxes paid on unrelated business
income
Net cash from operating activities
Cash flows from investing activities:
Purchases of investments
Purchases of property, plant and
equipment
Proceeds from investments
Proceeds from the sale of property
and equipment
Net cash from investing
activities
net decrease in cash and cash
equivalents
Cash and cash equivalents, beginning
of year
Cash and cash equivalents, end
of year
See accompanying notes.
2008 2007
$ 28,333,787
(25,363,146)
60,184
(216,804)
2,814,021
(482,649)
(3,438,253)
340,647
5,944
(3,574,311)
(760,290)
2,413,261
$ 1,652,971
$ 26,243,310
(23,471,545)
184,146
(285,692)
2,670,219
(1,245,482)
(2,681,560)
363,149
10,179
(3,553,714)
(883,495)
3,296,756
$ 2,413,261
reconciliation of change in
unrestricted net assets to net cash
from operating activities:
Change in unrestricted net assets $ (2,567,902) $ 388,127
Adjustments to reconcile change in
unrestricted net assets to net
cash from operating activities:
Depreciation
Gain on sale of property,
3,921,073 3,749,407
plant and equipment
(500) (6,960)
Realized gain on investments
Unrealized loss (gain) on
(340,647) (363,149)
investments
Changes in assets and liabilities:
Prepaid taxes on unrelated
3,237,833 (389,958)
business income
Accounts receivable, net
Inventories
Prepaid expenses
Accounts payable and accrued
(44,907)
-
(125,709) (346,591)
79,646 (13,840)
(98,442) 29,697
expenses
Accrued pension liability
Accrued taxes on unrelated
24,805 (112,351)
(595,211)
-
business income
Initiation fees received in
advance and other
(56,400) (5,772)
deferred revenue
Net cash from operating
(619,618) (258,391)
activities
$ 2,814,021 $ 2,670,219
for which all significant inputs are observable, directly or indirectly.
level 3 – Valuations based on inputs that are unobservable and significant to
the overall fair value measurement.
During the latter half of 2008, the credit and liquidity crisis in the United
States and other countries has resulted in substantial volatility in world financial
markets and the banking system. Several large banking and financial institutions
have been acquired by the federal government; granted government loan
guarantees; taken over by federal regulators; sold in overnight auctions; or, have
initiated bankruptcy proceedings. These and other events have had a significant
negative impact on foreign and domestic financial markets. As a result, the Club’s
investment portfolio has incurred significant volatility and unrealized losses due
to depreciation in fair value since December 31, 2007. Additionally, the values of
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February 2009 • The Winged M • 23