American Society of Eighteenth Century Studies

Report on Financial Statements
For the Years Ended June 30, 2006 and 2005

 

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REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

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
University Press

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
University Press

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)

-6-

 


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
====== ======= =======

-7-

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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