1901 Main Street
Suite 1650
PO Box 2227
Columbia, SC 29202
Phone: 803-256-0002
Fax: 803-254-4724
Board of Directors
American Society for Eighteenth-Century Studies
Winston-Salem, North Carolina
We have audited the accompanying statement of assets and net assets - cash basis of American Society for Eighteenth-Century Studies (the Society) as of June 30, 2006 and 2005, and the related statement of revenue, support and expenses - cash basis and cash flows for the year then ended. These financial statements are the responsibility of the Society's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. 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 audit provides a reasonable basis for our opinion.
As described in Note 1, the Society prepares its financial statements on the modified cash basis of accounting which is a comprehensive basis of accounting other than accounting accounting principles generally accepted in the United States of America.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Society as of June 30, 2006 and 2005, and the changes in net assets and cash flows for the year then ended in conformity with the basis of accounting described in Note 1.
Signed Elliott Davis, LLC
August 11, 2006
www.elliottdavis.com
AMERICAN SOCIETY FOR EIGHTEENTH-CENTURY STUDIES
STATEMENT OF ASSETS AND NET ASSETS - CASH BASIS
_________________________________________________________________________________________
ASSETS |
|||
June 30, 2006 |
June 30, 2005 |
||
| CURRENT ASSETS | |||
| Cash and Cash equivalents | $29,272 | $102,872 | |
| Investments | 877,146 | 735,364 | |
| Total assets | $906,418 | $838,236 | |
| ======= | ======= | ||
LIABILITIES AND NET ASSETS |
|||
| LIABILITIES | |||
| Payroll withholdings | $1,613 | ||
| Total liabilities | $1,613 | ||
| NET ASSETS | |||
| Unrestricted | |||
| Board designated net assets | 74,801 | 84,377 | |
| Other unrestricted net assets | 458,682 | 397,617 | |
| Total unrestricted net assets | 533,483 | 481, 994 | |
| Temporarily restricted | 153,886 | 144,305 | |
| Permanently restricted | 219,049 | 210,323 | |
| Total net assets | 906,418 | 836,623 | |
| Total liabilities and net assets | $906,418 | $838,236 | |
| ======= | ======= | ||
See notes to financial statements which are an integral part of these statements. |
|||
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AMERICAN SOCIETY FOR EIGHTEENTH-CENTURY STUDIES
STATEMENT OF REVENUES, SUPPORT, AND EXPENSES - CASH BASIS
Year Ended June 30, 2006
| Temporarily | Permanently | |||
|---|---|---|---|---|
| Unrestricted | Restricted | Restricted | Total | |
| REVENUES AND OTHER SUPPORT | ||||
| Dues | $117,488 | $117,488 | ||
| Annual meeting | 93,613 | 93,613 | ||
| Interest and dividends | 15,262 | 10,522 | 25,784 | |
| Net gain on sale of investments | 9,874 | 6,808 | 16,682 | |
| Royalties | 34,594 | 35,594 | ||
| Contributions | 2,821 | 8,726 | 11,547 | |
| Miscellaneous | 4,362 | 4,362 | ||
| Net assets released from restrictions | 7,750 | (7,750) | ________ | ________ |
| Total revenues and other support | 285,724 | 9,580 | 8,726 | 304,030 |
| EXPENSES AND LOSSES | ||||
| Operating Expenses | ||||
| Salary and benefits | 48,968 | 48,968 | ||
Commissions to Johns Hopkins |
20,339 | 20,339 | ||
| Board Meeting | 7,897 | 7,897 | ||
| ISECS Representative Expense | 2,928 | 2,928 | ||
| Dues and Subscriptions | 6,284 | 6,284 | ||
| Travel and entertainment | 4,574 | 4,574 | ||
| Telephone | 2,356 | 2,356 | ||
| Investment and Bank Charges | 1,210 | 1,210 | ||
| Steering Committee | 3,489 | 3,489 | ||
| Professional Fees | 7,321 | 7,321 | ||
| Affiliate Society Coordinator | 2,445 | 2,445 | ||
| Miscellaneous | 2,121 | 2,121 | ||
Total operating expenses |
109,923 | ________ | ________ | 109,923 |
| Publications Expenses | ||||
| Eighteenth-Century Studies | 21,269 | 21,269 | ||
| Postage | 3,097 | 3,097 | ||
| Printing | 1,640 | 1,640 | ||
| Studies in Eighteenth-Century Culture | 1,200 | ________ | ________ | 1,200 |
Total Publications Expense |
27,206 | ________ | ________ | 27,206 |
| Other Expenses | ||||
| Annual Meeting | 72,231 | 72,231
| ||
| Fellowship Program | 11,075 | 11,075 | ||
| Awards | 9,800 | 9,800 | ||
| Travel Grants | 4,000 | ________ | ________ | 4,000 |
Total Other Expenses |
97,106 | ________ | ________ | 97,106 |
Total expenses and losses |
234,235 | ________ | ________ | 234,235 |
| Change in net assets | 51,489 | 9,580 | 8,726 | 69,795 |
| NET ASSETS, BEGINNING OF YEAR | $481,994 | $144,306 | $210,323 | $836,623 |
| NET ASSETS, END OF YEAR | $533,483 | $153,886 | $219,049 | $906,418 |
| ======= | ======= | ======= | ======= | |
See notes to financial statements which are an integral part of these statements. |
||||
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AMERICAN SOCIETY FOR EIGHTEENTH-CENTURY STUDIES
STATEMENT OF REVENUES, SUPPORT, AND EXPENSES - CASH BASIS
Year Ended June 30, 2005
| Temporarily | Permanently | |||
|---|---|---|---|---|
| Unrestricted | Restricted | Restricted | Total | |
| REVENUES AND OTHER SUPPORT | ||||
| Dues | $138,479 | $138,479 | ||
| Annual meeting | 81,026 | 81,026 | ||
| Interest and dividends | 10,956 | 8,003 | 18,959 | |
| Net gain on sale of investments | 11,288 | 8,244 | 19,532 | |
| Royalties | 31,855 | 31,855 | ||
| Contributions | 3,409 | 12,814 | 16,223 | |
| Miscellaneous | 6,512 | 6,512 | ||
| Net assets released from restrictions | 9,554 | (9,554) | ________ | ________ |
| Total revenues and other support | $293,076 | 6,693 | 12,814 | 312,583 |
| EXPENSES AND LOSSES | ||||
| Operating Expenses | ||||
| Salary and benefits | 49,951 | 49,951 | ||
Commissions to Johns Hopkins |
27,467 | 27,467 | ||
| Board Meeting | 9,000 | 9,000 | ||
| ISECS Representative Expense | 1,900 | 1,900 | ||
| Dues and Subscriptions | 6,306 | 6,306 | ||
| Travel and entertainment | 3,891 | 3,891 | ||
| Telephone | 1,933 | 1,933 | ||
| Investment and Bank Charges | 6,235 | 6,235 | ||
| Steering Committee | 3,785 | 3,785 | ||
| Professional Fees | 5,874 | 5,874 | ||
| Affiliate Society Coordinator | 2,430 | 2,430 | ||
| Miscellaneous | 7,123 | 7,123 | ||
Total
operating expenses |
125,895 | ________ | ________ | 125,895 |
| Publications Expenses | ||||
| Eighteenth-Century Studies | 20,800 | 20,800 | ||
| Postage | 7,678 | 7,678 | ||
| Printing | 2,977 | 2,977 | ||
| Studies in Eighteenth-Century Culture | 1,200 | ________ | ________ | 1,200 |
Total
Publications Expense |
32,655 | ________ | ________ | 32,655 |
| Other Expenses | ||||
| Annual Meeting | 46,148 | 46,148 | ||
| Fellowship Program | 16,640 | 16,640 | ||
| Awards | 7,200 | 7,200 | ||
| Travel Grants | 4,854 | ________ | ________ | 4,854 |
Total
Other Expenses |
74,842 | ________ | ________ | 74,842 |
Total
expenses and losses |
233,392 | ________ | ________ | 233,392 |
| Change in net assets | 59,684 | 6,693 | 12,814 | 79,191 |
| NET ASSETS, BEGINNING OF YEAR | 422,310 | 137,613 | 197,509 | 757,432 |
| NET ASSETS, END OF YEAR | $481,994 | $144,306 | $210,323 | $836,623 |
| ======= | ======= | ======= | ======= | |
See notes to financial statements which are an integral part of these statements. |
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AMERICAN SOCIETY FOR EIGHTEENTH-CENTURY STUDIES
STATEMENT OF CASH FLOWS
For the years ended June 30, |
||
| CASH FLOWS FROM OPERATING ACTIVITIES | 2006 |
2005 |
| Change in net assets | $69,795 | $79,191 |
| Adjustments to reconcile change in net assets to net cash provided by operating activities: | ||
| Realized gain on sale of investments | (16,682) | (19,532) |
| Reinvested dividends | (21,545) | (18,016) |
Changes in deferred and accrued amounts Payroll withholdings |
(1,613) | 1,613 |
Net
cash provided by (used for) operating activities |
29,995 | 43,256 |
| INVESTING ACTIVITIES | ||
| Proceeds from sale of investments | 190,493 | 190,598 |
| Investment purchases | (294,048) | (185,600) |
Net
cash used for investing activities |
(103,555) | (4,998) |
| NET DECREASE IN CASH AND CASH EQUIVALENTS | (73,600) | 48,254 |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 102,872 | 54,618 |
CASH
AND CASH EQUIVALENTS AT END OF YEAR |
$29,272 | $102,872 |
| ====== | ======= | |
| See notes to financial statements which are an integral part of these statements. | ||
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AMERICAN SOCIETY FOR EIGHTEENTH-CENTURY STUDIES
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
The American Society for Eighteenth-Century Studies (the Society) was formed for the encouragement and advancement of studies and research in the history of eighteenth-century culture. The Society promotes the exchange of information and ideas among members of the various scholarly disciplines engaged in eighteenth-century studies through inter-disciplinary meetings, publications, joint research, and other means it may deem appropriate. Specific activities include quarterly publications of the journal Eighteenth-Century Studies (the Journal), an annual publication of Studies in Eighteenth-Century Culture, and an annual meeting.
Basis of Accounting
The accompanying financial statements have been prepared on the cash basis of accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. Under that basis, the only assets recognized are cash and investments and no liabilities are recognized. Non-cash transactions are not recognized. The cash basis differs from accounting principles generally accepted in the United States of America primarily because revenues and related assets are recognized when received rather than when earned and expenses are recorded when paid rather than when the expense is incurred.
Tax status
The Society is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code.
Financial statement presentation
The financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-For-Profit Organizations. Under SFAS No. 117, the Society is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted, temporarily restricted, and permanently restricted.
Investments
The Society's investments in securities are stated at their original cost.
Statements of cash flow
For purposes of the statements of cash flows, the Society considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.
Contributions
Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence and/or nature of any donor restrictions.
Temporarily restricted net assets represent amounts received with donor imposed restrictions on the purposes for which the amounts may be used. These amounts may be expended in their entirety for the purposes specified by the donor. Permanently restricted net assets are those amounts received with donor imposted restrictions requiring that the corpus be maintained into perpetuity and that the income be expended for stated purposes.
(Continued)
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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNT POLICIES, Continued
Contributions, (continued)
Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires or is met in the reporting period in which the support is recognized. All other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets depending on the nature of the restriction. When a restriction expires, temporarily restricted net assets are released to unrestricted net assets.
Reclassification
Certain amounts in the 2005 financial statements have been reclassified to be consistent with the 2006 presentation.
NOTE 2 - INVESTMENTS
Investments consist of the following at June 30:
| 2006 | 2005 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Cost | Market | Cost | Market | |||||||
| Stock funds | $432,157 | $488,129 | $371,129 | $407,659 | ||||||
| Bond funds | 444,989 | 439,599 | 364,235 | 354,348 | ||||||
| $877,146 | $927,728 | $735,364 | $762,207 | |||||||
These investments are subject to market fluctuations that may effect their fair market values. The following schedule summarizes the investment return and its classification in the statement of activities for the year ended June 30, 2005 and 2004.
2006 Temporarily |
|
||
| Unrestricted | Restricted |
Total |
|
Gain on sale of investments |
$9,874 |
$6,808 |
$16,682 |
| Interest income | 2,509 |
1,730 |
4,239 |
| Dividend income | 12,753 |
8,792 |
21,545 |
| Total investment return | $25,136 |
$17,330 |
$42,466 |
2005 Temporarily |
|||
|---|---|---|---|
| Unrestricted | Restricted | Total | |
| Gain on sale of investments | $11,288 | $8,244 | $19,532 |
| Interest income | 545 | 398 | 943 |
| Dividend income | 10,411 | 7,605 | 18,016 |
| Total investment return | $22,244 | $16,247 | $38,491 |
| ====== | ======= | ======= |
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NOTE 3 - RESTRICTION ON NET ASSETS
Substantially all of the restrictions on net assets at June 30, 2006 and 2005 are related to funds raised through the Capital Campaign. Funds raised through the Capital Campaign are restricted to supporting the research and study of the eighteenth-century.
Permanently restricted net assets consist of funds of which the corpus have been restricted by the donor. The income is to be used for various grants, awards, and prizes.
NOTE 4 - SIGNIFICANT CONTRACTUAL AGREEMENT
The Society is provided services under a contractual agreement with the Johns Hopkins University Press (JHUP). Membership dues are collected by the JHUP and forwarded to the Society less a commission for collection services and for printing and publishing the Society's Journal.
NOTE 5 - RELATED PARTIES
The Society has a number of affiliates and related organizations who are allowed certain rights including the opportunity to publish papers is Studies in Eighteenth-Century Culture, the Society's annual journal, use of the Society's mailing labels, and the right to hold a seminar at the annual meeting. There were no direct transactions with related parties during the year ended June 30, 2006 and 2005.
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