HomeMy WebLinkAboutSupplemental Attachments - 12/12/2016 H.W. Grout Trust
Consolidated Financial Statements
June 30, 2016 and 2015
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H.W. Grout Trust
Table of Contents
Independent Auditor's Report I
Consolidated Financial Statements
.. Consolidated Statements of Assets, Liabilities and Net Assets-Modified Cash Basis 3
,., Consolidated Statements of Revenue, Expenses and
Changes in Net Assets—Modified Cash Basis 4
Consolidated Statements of Functional Expenses—Modified Cash Basis 6
Notes to Consolidated Financial Statements 8
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.• Independent Auditor's Report
602 Main Street
Suite 100
Board of Trustees P.O.Box 489
Cedar Falls,IA
H.W. Grout Trust 50613-0026
T 319.268.1715
Waterloo,Iowa F 319.268.1720
Cedar Rapids
27201st Avenue NE
Suite 300
We have audited the accompanying consolidated financial statements of H.W. Grout Trust and P.O.Box 10200
its affiliate, which comprise the consolidated statements of assets, liabilities, and net assets— cedar Rapids,IA
p 52402-0200
modified cash basis as of June 30, 2016 and 2015, and the related consolidated statements of T 319.294.8000
F 319.294.9003
revenue, expenses and changes in net assets—modified cash basis and functional expenses-
- Coralville
modified cash basis for the years then ended, and the related notes to the consolidated financial 2530 Corridor Way
Suite 301
statements. P.O.Box 5267
Coralville,IA
52241-0267
Management's Responsibility for the Financial Statements T 319.248.0367
Management is responsible for the preparation and fair presentation of these consolidated F 319.248.0582
_ financial statements in accordance with the modified cash basis of accounting as described in Des Moines
9207 Northpark Drive
Note 1; this includes determining that the modified cash basis of accounting is an acceptable Johnston,IA
50131-2933
basis for the preparation of the consolidated financial statements in the circumstances. T 515.727.5700
_ Management is also responsible for the design, implementation, and maintenance of internal F 515.727.5800
control relevant to there aration and fair presentation of consolidated financial statements Minneapolis
P p p 3800 American Blvd W
that are free from material misstatement,whether due to fraud or error. site 1000
Bloomington,MN
55431-4420
T 952.563.6800
Auditor's Responsibility F 952.563.6801
Our responsibility is to express an opinion on these consolidated financial statements based on St.Cloud
our audits. We conducted our audits in accordance with auditing standards generally accepted 220 Park Avenue S
P.O.Box 1304
in the United States of America. Those standards require that we plan and perform the audit to St.Cloud,MN
obtain reasonable assurance about whether the consolidated financial statements are free from 5630
T 320..251.251.
7010
material misstatement. F 320.251.1784
Waterloo
100 East Park Avenue
An audit involves performing procedures to obtain audit evidence about the amounts and Suite 300
disclosures in the consolidated financial statements. The procedures selected depend on the P.O.Box 2100
ted
.�. 1� p Waterloo,IA
auditor's judgment, including the assessment of the risks of material misstatement of the 50704-2100
T 319.234.6885
consolidated financial statements,whether due to fraud or error. In making those risk F 319.234.6287
assessments,the auditor considers internal control relevant to the entity's preparation and fair
presentation of the consolidated financial statements in order to design audit procedures that bergankdv.com
are appropriate in the circumstances,but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An
audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating
the overall presentation of the consolidated financial statements.
1
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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our qualified audit opinion.
Basis for Qualified Opinion
As more fully discussed in Note 1 to the consolidated financial statements,property and
equipment have been capitalized by the H. W. Grout Trust,but not depreciated. Property and
equipment should be depreciated over their estimated useful lives in accordance with the
modified cash basis of accounting. The effects on the consolidated financial statements of this
departure from the modified cash basis of accounting have not been determined.
Qualified Opinion
In our opinion, except for the effects of not depreciating property and equipment as described
in the Basis for Qualified Opinion paragraph,the consolidated financial statements referred to
in the first paragraph present fairly, in all material respects,the assets, liabilities, and net assets
of H.W. Grout Trust and its affiliate as of June 30,2016 and 2015, and its support,revenue and
expenses for the years then ended in accordance with the modified cash basis of accounting as
described in Note 1.
Basis of Accounting
We draw attention to Note 1 of the consolidated financial statements, which describes the basis
_ of accounting. The consolidated financial statements are prepared on the modified cash basis of
accounting, which is a basis of accounting other than accounting principles generally accepted
in the United States of America. Our opinion is not modified with respect to this matter.
by i 04.
Waterloo, Iowa
December 13,2016
2
-- H.W. Grout Trust
Consolidated Statements of Assets, Liabilities and Net Assets - Modified Cash Basis
As of June 30,2016 and 2015
2016 2015
Assets
Current assets
Cash and cash equivalents $ 186,328 $ 513,708
Inventory 40,402 42,356
Short-term investments 109,965 123,079
Total current assets 336,695 679,143
Investments 74,668 65,088
Assets held as an endowment 1,228,534 1,344,411
Property and equipment
Land 132,249 132,249
Buildings and improvements 8,083,026 8,044,844
_ Equipment 803,318 760,077
Exhibits 5,244,418 5,076,969
Total 14,263,011 14,014,139
Other assets 35,170 35,170
Total assets $ 15,938,078 $ 16,137,951
Liabilities and Net Assets
Current liabilities
Line of credit $ 379,110 $ -
Accrued liabilities 11,763 3,795
_ Total liabilities 390,873 3,795
Net Assets
Unrestricted
Capital needs 53,964 51,519
Investment in property and equipment 14,263,011 14,014,139
Unappropriated (775,303) (249,805)
Total unrestricted 13,541,672 13,815,853
Temporarily restricted 206,047 518,817
Permanently restricted 1,799,486 1,799,486
Total net assets 15,547,205 16,134,156
Total liabilities and net assets $ 15,938,078 $ 16,137,951
See notes to consolidated financial statements. 3
H.W. Grout Trust
Consolidated Statement of Revenue, Expenses and Changes in Net Assets-Modified Cash Basis
Year Ended June 30,2016
Temporarily Permanently
Unrestricted Restricted Restricted Total
Revenue,Gains and Other Support
Contributions $ 389,674 $ - $ - $ 389,674
Grants 260,208 - - 260,208
Memberships 43,271 - - 43,271
Net investment income 8,554 - - 8,554
Net rental income 33,462 - - 33,462
Admissions 88,333 - - 88,333
Public programming 50,124 - - 50,124
Gift shop 36,593 - - 36,593
Miscellaneous income 43,066 - - 43,066
Net assets released from restrictions 312,770 (312,770) - -
Total revenue,gains and other support 1,266,055 (312,770) - 953,285
Expenses
Programs 464,510 - - 464,510
Exhibits 444,214 - - 444,214
Collections 88,114 - - 88,114
Management and general 328,268 - - 328,268
Fundraising 194,377 - - 194,377
Total expenses 1,519,483 - - 1,519,483
Loss on disposal of assets 20,753 - - 20,753
Change in net assets (274,181) (312,770) - (586,951)
Net assets-beginning of year 13,815,853 518,817 1,799,486 16,134,156
Net assets-end of year $ 13,541,672 $ 206,047 $ 1,799,486 $ 15,547,205
See notes to consolidated financial statements. 4
H.W.Grout Trust
Consolidated Statement of Revenue,Expenses and Changes in Net Assets-Modified Cash Basis
Year Ended June 30,2015
Temporarily Permanently
Unrestricted Restricted Restricted Total
Revenue,Gains and Other Support
Contributions $ 493,536 $ 53,249 $ - $ 546,785
Grants 409,819 365,568 - 775,387
Memberships 50,474 - - 50,474
Net investment income 27,598 - - 27,598
Net rental income 26,659 - - 26,659
Admissions 99,738 - - 99,738
Public programming 50,576 - - 50,576
Gift shop 33,103 - - 33,103
Insurance proceeds 27,449 - - 27,449
Miscellaneous income 52,216 - - 52,216
Net assets released from restrictions 60,252 (60,252) - -
Total revenue,gains and other support 1,331,420 358,565 - 1,689,985
Expenses
Programs 410,408 - - 410,408
Exhibits 379,191 - - 379,191
Collections 95,883 - - 95,883
Management and general 325,905 - - 325,905
Fundraising 154,689 - - 154,689
Total expenses 1,366,076 - - 1,366,076
Loss on disposal of assets 24,317 - - 24,317
Change in net assets (58,973) 358,565 - 299,592
Net assets-beginning of year 13,874,826 160,252 1,799,486 15,834,564
Net assets-end of year $ 13,815,853 $ 518,817 $ 1,799,486 $ 16,134,156
See notes to consolidated financial statements. 5
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H.W. Grout Trust
Notes to Consolidated Financial Statements
NOTE 1 —ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
_ Organization and Principles of Consolidation
The consolidated financial statements of the H. W. Grout Trust and its affiliate (the Organization) include
the accounts of the H. W. Grout Trust(the Trust)and the Grout Museum, Inc. (the Museum). All
significant intercompany and interfacility accounts and transactions have been eliminated.
The Trust operates four museums in Waterloo, Iowa, which are open to the public. The Museum serves as
a conduit for donations to be made to the Trust. The Museum receives most of its support and contributions
in the form of grants, donations and fundraising activities.
Basis of Presentation
The Organization is required to report information regarding its assets, liabilities, net assets, revenues and
expenses according to three classes of net assets: unrestricted, temporarily restricted and permanently
restricted. A description of the three net asset categories follows:
Unrestricted include all net assets which are neither temporarily nor permanently restricted.
Temporarily restricted include contributions for which donor-imposed time and purpose restrictions have
not been met.
Permanently restricted include contributions whose use by the Organization is limited by donor-imposed
stipulations that neither expire by passage of time nor can be fulfilled or otherwise removed by actions of
the Organization.
Basis of Accounting
The accompanying consolidated financial statements have been prepared on the modified cash basis of
accounting; consequently, certain revenue is recognized when received rather than when earned and certain
expenses and purchases of assets are recognized when cash is disbursed rather than when the obligations
are incurred. Financial statements prepared on the modified cash basis of accounting are not intended to
present financial position and results of operations in accordance with accounting principles generally
accepted in the United States of America.
Cash Equivalents
Cash equivalents are recorded at cost plus interest,which approximates market, and have original
maturities of three months or less at the date of purchase.
8
H.W. Grout Trust
Notes to Consolidated Financial Statements
NOTE 1 —ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Concentrations of Credit Risk
Financial instruments which potentially subject the Organization to concentrations of credit risk consist
principally of cash, cash equivalents and investments. The Organization's investments include equity
securities, fixed income securities and mutual funds,and are held with high credit quality financial
institutions. Marketable securities are exposed to various risks, such as interest rate and credit risk, and it is
possible that changes in the near term could impact the amount reported in the financial statements. At
times,the Organization's cash, cash equivalents and investments are in excess of the FDIC insurance limit.
Investments
The Organization carries its investments at fair value. See Note 8 for discussion of fair value
measurements.
Investment Income
Investment income earned on the temporarily and permanently restricted net assets is not restricted by the
donors;therefore, it is included in unrestricted net assets in the year earned.
Inventory
Inventory is stated at the lower of first-in, first-out(FIFO)cost or market.
Property and Equipment
Property and equipment are carried at cost, or fair value, if donated.No depreciation has been charged
against operations which is a departure from the modified cash basis of accounting. The Organization
follows the policy of capitalizing property and equipment expenditures over$500,unless general contract
conditions call for a lower amount.
Collections
The Organization's collections are made up of local and regional artifacts of historical significance,
scientific specimens and art objects that are held for educational,research, scientific and curatorial
purposes. Each of the items is cataloged,preserved and cared for, and activities verifying their existence
and assessing their condition are performed continuously. Proceeds derived from the sale of collections are
used solely to enhance the Organization's collections through new acquisition or for the costs of
conservation and care of existing collections.
_. 9
H.W. Grout Trust
Notes to Consolidated Financial Statements
NOTE 1 —ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Collections (Continued)
Under the modified cash basis of accounting, collections which were acquired through purchases and
contributions since the Organization's inception are not recognized as assets in the statement of assets,
liabilities and net assets—modified cash basis. Purchases of collection items are recorded as decreases in
unrestricted net assets in the year in which the items are acquired or as temporarily or permanently
restricted net assets if the assets used to purchase the items are restricted by the donors. Contributed
collection items are not reflected in the financial statements. Proceeds from deaccessions or insurance
recoveries are reflected as increases in the appropriate net asset classes.
i
Income Taxes
The Trust qualifies as a private foundation under Internal Revenue Code Section 509 and, accordingly, is
subject to an excise tax on its net investment income.
The Museum is a not-for-profit corporation as described in Section 501(c)(3)of the Internal Revenue Code
and is exempt from federal income taxes pursuant to Section 501(a) of the Code.
Restricted and Unrestricted Revenue and Support
Contributions and grant awards that are restricted by the donor are reported as an increase in unrestricted
net assets if the restriction expires in the reporting period in which the support is recognized. All other
.— donor-restricted contributions and grant awards are reported as increases in temporarily or permanently
restricted net assets depending on the nature of the restrictions. When a restriction expires(that is,when a
stipulated time restriction ends or purpose restriction is accomplished),temporarily restricted net assets are
reclassified to unrestricted net assets and reported in the statement of revenues, expenses and changes in net
assets-cash basis as net assets released from restrictions.
Board Designated Net Assets
Net assets that are not subject to donor-imposed stipulations, but have been designated by the Board of
Trustees consist of:
Capital Needs -represents funds which have been designated for future capital acquisitions and
improvements.
Since these net assets are internally designated rather than externally restricted,the Board of Trustees has
-- the right at any time to expend or redesignate these funds.
Expense Allocation
Directly identifiable expenses are charged to programs and supporting services. Expenses related to more
than one function are charged to programs and supporting services on the basis of periodic time and
expense studies. Management and general expenses include those expenses that are not directly identifiable
` with any other specific function but provide for the overall support and direction of the Organization.
.. 10
H.W. Grout Trust
Notes to Consolidated Financial Statements
NOTE 1 —ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Donated Materials and Services
Donated materials are reflected as contributions in the accompanying statements at their estimated fair
market value at date of receipt.
Donated services requiring specific expertise are reflected as contributions in the accompanying
consolidated financial statements at their estimated fair value at the date of receipt. No amounts have been
reflected in the consolidated financial statements for donated services for the years ended June 30, 2016
and 2015. The Organization pays for most services requiring specific expertise. However, many individuals
volunteer their time and perform a variety of tasks that assist the Organization with its operations.
Subsequent Events
Management has evaluated subsequent events through December 13, 2016, the date which the financial
statements were available for issue.
~` NOTE 2—INVESTMENTS
Investments, reported at fair market value, consist of the following as of June 30, 2016 and 2015:
2016 2015
Money market funds $ 114,294 $ 122,548
Corporate bonds 227,437 228,554
Corporate stocks 321,912 334,564
Mutual funds 635,175 732,444
Real estate 114,349 114,468
1,413.167 $ 1,532,578
Investment income for the years ended June 30, 2016 and 2015, consists of the following:
r 2016 2015
Interest and dividends $ 40,863 $ 47,750
Net realized gain(loss) (2,707) 7,668
Net unrealized loss (29,602) (27,820)
8,554 $ 27,598
11
H.W. Grout Trust
Notes to Consolidated Financial Statements
NOTE 3—TEMPORARILY RESTRICTED NET ASSETS
Temporarily restricted net assets as of June 30, 2016 and 2015, are available for the following purposes:
2016 2015
Capital needs $ 130,669 $ 136,648
,�. Information technology 75,378 365,568
Vietnam exhibit - 16,601
Total temporarily restricted 206.047 $ 518,817
NOTE 4—PERMANENTLY RESTRICTED NET ASSETS
The Organization's endowment consists of donor-restricted funds. As required by generally accepted
accounting principles, net assets associated with endowment funds are classified and reported based on
the existence of donor-imposed restrictions.
Absent explicit donor stipulations to the contrary, the Board of Trustees of the Organization has
'— interpreted the State Prudent Management of Institutional Funds Act(SPMIFA) as requiring the
preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment
funds. As a result of this interpretation, the Organization classifies as permanently restricted net assets
(a) the original value of gifts donated to the permanent endowment, (b)the original value of subsequent
gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in
accordance with the direction of the applicable donor gift instrument at the time the accumulation is
added to the fund. The remaining portion of the donor-restricted endowment funds that is not classified
in permanently restricted net assets is classified as temporarily restricted net assets until those amounts
are appropriated for expenditure by the Organization in a manner consistent with the standard of
prudence prescribed by SPMIFA. In accordance with SPMIFA, the Organization considers the following
factors in making a determination to appropriate or accumulate donor-restricted endowment funds: (1)
the duration and preservation of the fund, (2)the purposes of the donor-restricted endowment funds, (3)
general economic conditions, (4) the possible effect of inflation and deflation, (5)the expected total
return from income and the appreciation or depreciation of investments, (6) other resources of the
Organization, and (7)the investment policies of the Organization.
12
-` H.W. Grout Trust
Notes to Consolidated Financial Statements
NOTE 4-PERMANENTLY RESTRICTED NET ASSETS (CONTINUED)
The Organization has adopted investment and spending policies, approved by the Board of Trustees, for
endowment assets. Those policies attempt to provide a predictable stream of funding to programs
supported by its endowment funds while also maintaining the purchasing power of those endowment
assets over the long-term. Accordingly, the investment process seeks to achieve an after-cost total real
rate of return, including investment income as well as capital appreciation, which exceeds the annual
distribution with acceptable levels of risk. Endowment assets are invested in a well-diversified asset
mix, which includes equity and debt securities. Investment risk is measured in terms of the total
endowment fund; investment assets and allocation between asset classes and strategies are managed to
prevent exposing the fund to unacceptable levels of risk.
The Organization's policy is to distribute all or a portion of the annual net investment earnings to
support the Organization's programs which are not self-sufficient while maintaining the fair value of the
original endowment gifts.
,r Endowment net asset composition as of June 30, 2016 and 2015, follows:
Temporarily Permanently
2016 Unrestricted Restricted Restricted Total
Donor-Restricted $ (570.952) 1.799.486 1,228.534
2015
Donor-Restricted $ (455,075) �_ $ 1,799.486 1.344,411
Changes in endowment net assets for the years ended June 30, 2016 and 2015, follows:
Temporarily Permanently
Unrestricted Restricted Restricted Total
—' Endowment net assets,
June 30, 2014 $ (122,869) $ - $ 1,799,486 $ 1,676,617
Investment income,
net of fees
34,186 - - 34,186
Net depreciation
(realized and unrealized) (19,249) - - (19,249)
-- 13
H.W. Grout Trust
Notes to Consolidated Financial Statements
NOTE 4—PERMANENTLY RESTRICTED NET ASSETS (CONTINUED)
Temporarily Permanently
Unrestricted Restricted Restricted Total
Contributions 26,844 - - 26,844
Amounts appropriated
for expenditure (373,987) - - (373,987)
Endowment net assets,
June 30, 2015 (455,075) - 1,799,486 1,344,411
Investment income,
.. net of fees 29,455 - - 29,455
Net depreciation
._ (realized and unrealized) (31,495) - - (31,495)
Contributions 2,099 - - 2,099
., Amounts appropriated
for expenditure _ 115,936) - - (115,936)
Endowment net assets,
June 30,2016 $ (570,952) $ - $ 1,799,486 $ 1,228.534
From time to time, decreases in the fair value of assets associated with individual donor-restricted
endowment funds and continued appropriation for operating deficiencies may cause the donor-restricted
endowment funds to fall below the level that the donor or relevant law requires the Organization to retain
as a fund of perpetual duration. Deficiencies of this nature are reported in temporarily restricted net assets
to the extent accumulated gains are available to absorb such loss, or otherwise unrestricted net assets.
Deficiencies that are reported in unrestricted net assets were $570,952 and$455,075 as of June 30,2016
and 2015,respectively. Subsequent gains and unrestricted contributions that restore the fair value of the
assets of the endowment fund up to the $570,952 in deficiencies as of June 30, 2016 will be classified as an
increase in unrestricted net assets. The Organization's management anticipates that the donors will not
require the contribution to be returned to the donors, and accordingly,no provision has been made for any
liabilities that might arise from such noncompliance.
Management of the Organization has developed a plan to increase net assets through a combination of
additional funding sources along with a reduction of selected expenses. An additional funding source
includes a property tax levy(see Note 9). Management believes these factors will contribute toward
achieving viability from an operating standpoint, and will eliminate the need for future withdrawals from
the individual donor-restricted endowment funds for operating purposes.
14
H.W. Grout Trust
Notes to Consolidated Financial Statements
NOTE 5—LINE OF CREDIT
The Organization has a line of credit with a bank where it can borrow up to $500,000. The line has a
variable interest rate (3.5%as of June 30, 2016)and expires March 21, 2017. As of June 30, 2016,there
was $379,110 outstanding under this line of credit. The outstanding balance is secured by the
Organization's business assets and the property tax levy proceeds.
NOTE 6—RETIREMENT PLAN
The Organization has a Simple IRA plan which covers substantially all employees. Eligible employees may
contribute a portion of their compensation to the plan. The Organization will contribute an amount up to
3% for each eligible employee's compensation based on employee contributions. For the years ended June
30, 2016 and 2015, the Organization charged against income $13,298 and $7,411, respectively,under this
— plan.
NOTE 7—RELATED PARTIES
The Organization has dealings with several related parties, primarily companies whose ownership or
employees include various trustees of the Organization and members of the Organization's board of
directors. None of these transactions are material to the financial statements.
-- NOTE 8—FAIR VALUE MEASUREMENTS
The fair value measurement accounting literature establishes a valuation hierarchy for disclosure of the
inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad
levels as follows:
-� Level 1: inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs are quoted prices for similar assets and liabilities in active markets or inputs that are
-- observable for the asset or liability, either directly or indirectly through market corroboration,
for substantially the full term of the financial instrument.
Level 3: inputs are unobservable inputs based on the Organization's own assumptions used to measure
assets and liabilities at fair value.
A financial asset or liability's classification within the hierarchy is determined based on the lowest level
input that is significant to the fair value measurement.
15
H.W. Grout Trust
Notes to Consolidated Financial Statements
NOTE 8—FAIR VALUE MEASUREMENTS (CONTINUED)
The following tables set forth by level within the fair value hierarchy of the Organization's financial
assets measured at fair value on a recurring basis as of June 30, 2016 and 2015, and indicates the fair
value hierarchy of the valuation techniques utilized by the Organization to determine such value.
Fair Value Measurements at Reporting Date
Using:
Quoted
Prices in
Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
June 30,2016 Total (Level 1) (Level 2) (Level 3)
Money market funds $ 114,294 $ - $ 114,294 $ -
Corporate stocks 321,912 321,912 - -
Mutual funds
Equity 422,972 422,972 - -
Fixed income 212,203 212,203 - -
Real estate 114,349 86,892 - 27,457
Corporate bonds 227,437 - 227,437 -
Total $ 1,413,167 $ 1.043,979 $ 341,731 $ 27,457
June 30, 2015
Money market funds $ 122,548 $ - $ 122,548 $ -
Corporate stocks 334,564 334,564 - -
Mutual funds
— Equity 456,485 456,485 - -
Fixed income 275,959 275,959 - -
Real estate 114,468 87,359 - 27,109
Corporate bonds 228,554 - 228,554 -
Total $ 1,532,578 $ 1,154,367 $ 351,102 $ 27,109
Corporate stocks are valued at the closing price reported in the active markets in which they are traded.
Equity and fixed income mutual funds and certain real estate funds are valued at the net asset value,
based on quoted market prices in active markets, of shares held by the Organization at year end.
16
H.W. Grout Trust
Notes to Consolidated Financial Statements
NOTE 8 -FAIR VALUE MEASUREMENTS (CONTINUED)
Corporate bonds are valued based on yields currently available on comparable securities of issuers with
similar credit ratings. Money market funds are valued at amortized cost, which approximates fair value.
Real estate investments that are not readily marketable are reported based upon discounted cash flow
models and similar valuation techniques.
The following table provides further details of the Level 3 fair value measurements:
-o Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
2016 2015
Beginning balance $ 27,109 $ 24,743
Total gains (realized and
unrealized) included in investment
income 348 2,366
Ending balance $ 27,457 $ 27,109
Gains and losses (realized and unrealized) included in changes in net assets for the years ended June 30,
2016 and 2015, are reported in investment income.
NOTE 9-PROPERTY TAX LEVY
On November 3,2015,voters passed a property tax levy to support the annual operations of the
Organization. The levy covers property in the City of Waterloo and generates 27 cents per$1,000 taxable
.. valuation or approximately$600,000 per year. As of June 30, 2016,no amounts have been received under
the levy.
NOTE 10 - RECLASSIFICATIONS:
Certain reclassifications have been made to the 2015 consolidated financial statements, as previously
-. reported, in order to conform them to the current year's presentation.
17
Grout Museum District Fiscal Year 2017 Budget
INCOME Budget FY17
7/1/16-6/30/17
Earned Revenue $ 349,633.00
Donations $ 400,000.00
Grants $ 270,000.00
Other Government $ 15,000.00
Line of Credit $ 5,657.00
Levy $ 599,343.00
Total Income $ 1,639,633.00
OPERATION
EXPENSES:
Expenses covered by Levy:
Wages & Employee Benefits $ 309,381.00
Charge card fees (MC/VISA) $ 4,760.00
Publications and Dues $ 4,290.00
Travel $ 6,750.00
Office Supplies $ 6,600.00
Legal and Accounting Fees $ 17,325.00
Property Insurance $ 67,150.00
Utilities-Gas, Electric, Phone $ 95,306.00
Postage- mailings and meter $ 10,390.00
Building Maintenance $ 13,200.00
Janitorial and Kitchen supplies $ 9,000.00
Grounds $ 13,400.00
Misc. Expenses $ 1,200.00
Equipment repairs & Computer Maintenance $ 14,000.00
Library $ 889.00
Service Contracts- Building and Machines $ 23,335.00
Archive Services $ 400.00
Preservation $ 1,567.00
Volunteer Costs $ 400.00
Total Expenses covered by Levy $ 599,343.00
Expenses covered other revenues $ 1,040,290.00
Total Operating
Expense $ 1,639,633.00