Introduction The Great Salt Lake Council desires to be transparent to its volunteers, members and donors and have posted our Audited Consolidated Financial Statements, most current IRS form 990 and current budget here on our website. Along with those documents a short explanation is provided for certain significant transactions. The Year ending December 31, 2011 was another solid financial year for the Council with a net increase in net assets in the unrestricted portion of the Operating Fund of $311,863. Revenues came in $347,349 over budget primarily due to two main drivers. The first was unbudgeted in-kind donations of $142,220 versus a budget of only $20,000 a positive variance of $122,220. The second driver was the World Jamboree, which had a budget but it wasn’t part of the Council approved budget and brought in $183,092 in donations and $121,269 in additional Activity Fees. Those overages were sufficient to offset shortages in Other Donations and Popcorn sales. This positive variance was partially offset by expenses being over budget by $237,603 but this was primarily attributable to the expenses related to the in-kind donations of $142,220 and expenses for the World Jamboree of $307,104. Actual increase in net assets of $311,863 was $109,746 above the budget increase of only $202,117. For the first time since 2008 the unrestricted net assets at the end of the year had a positive balance of $19,196, which enable the Council to be recognized as a Gold Council nationally. The Capital Fund had fixed assets additions of over $330,000. Major renovations at the Tracy Lodge including a new roof, carpet, painting, furnace and bathroom fixtures were completed during the year. Also, a new dining and shower house at Camp Evergreen in addition to work at Rendezvous Meadows on the kitchen and pavilion were started and almost completed. The Endowment Fund had a respectable return on investment in a difficult investment environment while distributing to the Operating Fund over $132,000 of unrestricted operating support. If there are further questions about these documents you are welcome to contact Brian P. Sheets, CPA (the Council’s Chief Financial Officer) at brian.sheets@scouting.org. Audited Consolidated Financial Statements Great Salt Lake Council Audited Consolidated Financial Statement Explanations To assist you in better understanding the Audited Consolidated Financial Statements for the Great Salt Lake Council, BSA for the year ending December 31, 2011 the following major points of explanation are made below. 1. Boy Scout Financial Policy requires all Councils to report in a three fund format. The funds are: - General Operating Fund, which includes all normal day to day operations of the Council for the year.
- Capital Fund, which includes all of the fixed assets for the Council based on their Capitalization Policy. It also includes the Capital Campaign income and expenses and any construction in progress for fixed assets the Council is going to keep.
- Endowment Fund, which holds funds that are to be invested, made up of unrestricted, temporarily restricted and permanently restricted funds with the interest, dividends and gains used to support the Boy Scout programs in the Operating Fund.
2. The Audited Consolidated Financial Statements are made up of 6 basic sections. The operations of the Council are consolidated with the operations of Teton Whitewater, LC a for–profit subsidiary. Those 6 sections are: - Independent Auditors Report page 1, which gives the Great Salt Lake Council, BSA an unqualified opinion and was a clean audit, which means the Council Consolidated Financial Statements for the year ending December 31, 2011, presents fairly, in all material respects, the financial position of the Council. The Audit Committee of the Council approved the audit by Mayer, Hoffman & McCann, PC at there meeting on May 17, 2012.
- Consolidated Statement of Financial Position, page 2, which reflects all of the Assets, Liabilities and Net Assets (i.e. equity or retained earnings) for all three funds for the year ending December 31, 2011.
- Consolidated Statement of Changes in Net Assets, pages 3-5, which show the income and expenses for all three funds broken out by the type of restrictions placed on the revenue i.e. unrestricted, temporarily restricted and permanently restricted.
- Consolidated Statement of Cash Flows, page 6, shows the changes in cash for all three funds broken into three major sections of Cash Flows from Operations, Cash Flows from Investing Activities and Cash Flows from Financing Activities.
- Consolidated Statement of Functional Expenses, page 7 reflects the functional expenses of Program Services, Management and General and Fund Raising broken down to their natural classifications.
- Notes to Consolidated Financial Statements, page 8-24, which represents 18 notes giving further details on various aspects of the Consolidated Audited Financial Statements.
- Additional Information, page25-27 presents program expenses for the year categorized by the major programs they are associated with.
3. Significant Transactions during the Year December 31, 2011 - The Camping area had another strong year being over budget for the year by $57,727, while camping 29,096 Cub and Boys Scouts for the year.
- The Friends of Scouting campaign came in close to budget being under by $10,177 on a budget of $2,328,548.
- Due to adequate cash flow the Council did not have to access their line of credit at all during the year.
- With the increase in unrestricted net assets in the Operating Fund of $311,863 the ending balance in that fund was positive by $19,196 for the first time since December 31, 2007
- The long-term debt of the Council was reduced by $157,066 aided by being able to make an extra prepayment on the Teton Whitewater LC debt principal in the amount of $52,803
- The Council had fixed assets additions of over $330,000 in 2011 with the bulk of those costs associated with our camping properties specifically a remodel of the Tracy Lodge, Evergreen Camp and Rendezvous Meadows kitchen and pavilion. For 2012 there are funds in the bank of over $553,000 for continued camp properties improvement.
December 31, 2012 Budget Budgeting Process The budgeting process for a year begins in the spring of 2011 and usually concludes in November of that year when the Board of Directors approves the upcoming year’s operating budget. The Budget was approved by the Board at their meeting on November 30, 2011. - Volunteers and Professionals together prepare initial budgets in the Summer
- Those are reviewed by their Supervisors, the Accounting Department and put into the accounting system.
- The Budget is then compiled and reviewed by the Cabinet, made up of the Scout Executive, Director of Support Services, Director of Development, Director of Field Services and the Chief Financial Officer.
- Changes recommended and approved by the Cabinet are implemented into the budget and the paperwork is prepared to present the budget to the Budget Committee.
- The Budget Committee meets and reviews the budget and further changes are usually recommended and, once made, the budget is approved by them.
- The Budget is presented to the Officers for approval and once they approve it, usually during the first part of November and the full Board approves it later that month.
- The Budget is monitored throughout the year by staff, Officers and Board.
IRS Form 990
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