HomeMy WebLinkAboutAudit - Other Publications - Public - Glendale Chamber of Commerce Financial Statements - 10/27/2014
______________________________________________________________________________
1 Glendale Chamber of Commerce
Date: October 27, 2014
To: Brenda S. Fischer, City Manager
From: Candace MacLeod, City Auditor
Subject: Glendale Chamber of Commerce Financial Statements
On July 1, 2013, the City of Glendale (City) entered into a two year Economic
Development and Community Enhancement Agreement (Agreement) with the
Glendale Chamber of Commerce (Chamber). The Agreement is attached as
Appendix A. Under Paragraph 1 of the Agreement, the City would pay the
Chamber a specified amount each year for general membership, membership
in the Chairman’s Circle and services and activities the Chamber agrees to
perform pursuant to the terms of the Agreement. Paragraph 6 of the Agreement
states that the City will make quarterly payments to the Chamber after review of
their financial statements by the City Auditor. Paragraph 7 states that the
Chamber agrees to provide the City with an annual report, including financial
statements no later than May 31 of each year of the Agreement.
On October 22, 2014, Seely, Mullins & Associates provided the City Auditor with
copies of the Chamber’s 2012 and 2013 Financial Statements (Statement of
Assets, Liabilities & Equity and Revenue, Expenses & Other Changes in Net
Assets). The financial statements were reported as being prepared on a cash
basis for each calendar year (January 1st to December 31st). The financial
statements were unaudited. Additionally, it is important to note that the City
Auditor did not audit nor perform any other tests or procedures to ensure the
accuracy or completeness of the Chamber’s financial statements.
A summary of the City Auditor’s general observations on the Chamber’s 2012
and 2013 financial statements is provided below:
Statement of Assets, Liabilities & Equity
Current Assets (Cash/Checking/Savings Accounts) increased $217,763 from
2012 to 2013, primarily due to proceeds from the sale of the Chamber’s
building. The reported ending cash balance as at December 31, 2013 was
$257,289.
Fixed Assets declined $297,053, representing the sale of the Chamber’s
building.
The 2012 reported net loss was ($10,682) and the 2013 net loss was ($74,972).
______________________________________________________________________________
2 Glendale Chamber of Commerce
Revenue, Expenses & Other Changes in Net Assets
Revenue declined $49,487 from 2012 to 2013 in the areas of events, services
and sponsorships.
Expenditures increased $21,266, primarily due to increases in the following line
items:
Hiring expense $11,300
Rent $15,206
Wages $6,595
There were minor increases and decreases in other expense categories, but
these three line items accounted for the largest dollar increases.
As reported above, the annual net loss increased from ($10,682) in 2012 to
($74,972) in 2013.
Please let me know if you have any questions.
cc: Michael D. Bailey, City Attorney
Jennifer Campbell, Assistant City Manager
Tom Duensing, Finance and Technology Director
Brian Friedman, Economic Development Director
Julie Frisoni, Assistant City Manager
Appendix A
Appendix A
Appendix A
Appendix A
Appendix A