SARATOGA PERFORMING ARTS CENTER, INC.
AND NATIONAL MUSEUM OF DANCE
NOTES TO COMBINED FINANCIAL STATEMENTS
December 31, 2007 and 2006
Page 11
NOTE H –EMPLOYEE BENEFIT PLAN –Continued
Accumulated benefit obligation was $1,779,517 at December 31, 2007.
Projected benefit payments expected for the next ten years are as follows:
The assumptions used during the year ended December 31, 2007, to develop the net periodic post–
retirement benefit cost and the accumulated post–retirement benefit costs, were:
Discount rate (weighted average) 5.75%
Expected return on assets 7.07%
NOTE I –PROFIT SHARING PLAN
As of January 1, 2006, SPAC adopted a non–contributory defined contribution plan covering
substantially all full–time employees. In order to be eligible, an employee must have completed one
year of service and worked at least 1,000 hours. The intent of the Board was to make an annual
contribution to the plan based on a targeted monthly benefit payable for the life of the participant
starting at age 60. The contribution for each year, starting with 2006, will be calculated as the
SARATOGA PERFORMING ARTS CENTER, INC.
AND NATIONAL MUSEUM OF DANCE
NOTES TO COMBINED FINANCIAL STATEMENTS
December 31, 2007 and 2006
Page 12
NOTE J –TEMPORARILY RESTRICTED NET ASSETS
Temporarily restricted net assets are restricted as follows:
2007
2006
NOTE K –PERMANENTLY RESTRICTED NET ASSETS
Permanently restricted net assets are restricted for the following purposes:
2007
2006
Classical performances
2,500,000
$
2,500,000
$
Other
85,414
2,585,414
$
2,585,414
$
NOTE L –LICENSE AGREEMENT
SPAC entered into a ten–year agreement on February 1, 2000, with a third party which granted to
them the exclusive right and license to book, co–promote, co–produce, and co–present all Touring and
Professional (T&P) events at SPAC during the term of the agreement. In consideration of a
with the promotion, production, and presentation of each T&P event.
–
SARATOGA PERFORMING ARTS CENTER, INC.
AND NATIONAL MUSEUM OF DANCE
NOTES TO COMBINED FINANCIAL STATEMENTS
December 31, 2007 and 2006
Page 13
NOTE M –RELATED PARTY TRANSACTIONS
During 1998, SPAC’s Board of Directors entered into an employment agreement with the then
President of SPAC for a term of eight years. The agreement includes provisions for a variable split
dollar life insurance policy and an estate enhancement program last survivor variable split dollar life
insurance policy. Under the terms of the agreement, SPAC is obligated to pay annual premiums for
2007
2006
Other assets
Insurance premiums receivable 604,702$ 604,702$
BOLLAM, SHEEDY, TORANI & CO. LLP
Certified Public Accountants
Albany, New York
An Independent Member of the RSM McGladrey Network
Page 14
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
ON SUPPLEMENTAL INFORMATION
Boardsof Directors
Saratoga Performing Arts Center, Inc.
and National Museum of Dance
Albany, New York
March 17, 2008
SARATOGA PERFORMING ARTS CENTER, INC.
AND NATIONAL MUSEUM OF DANCE
OTHER OPERATING REVENUES
YearsEnded December 31,
See Report of Independent Certified Public Accountants on Supplemental Information.
Page 15
2007
2006
RESTAURANT
Fees
309,498
$
294,670
$
Less related expenses
151,554
141,568
157,944
153,102
BOX OFFICE SERVICE FEES
35,643
HOUSE PROGRAM AND SOUVENIR ITEMS
6,753
6,652
47,077
1,000,000
1,060,261
30,357
1,337,814
1,357,458
89,104
72,311
Less related expenses
45,275
47,945
43,829
24,366
SARATOGA PERFORMING ARTS CENTER, INC.
AND NATIONAL MUSEUM OF DANCE
PRODUCTION EXPENSES
YearsEnded December 31,
See Report of Independent Certified Public Accountants on Supplemental Information.
Page 16
2007
2006
SALARIES AND WAGES
Stage crew
216,610
$
216,792
$
Security and parking
Theater staff
Other
8,777
340,197
334,349
80,758
72,765
17,718
22,003
99,861
96,004
48,719
47,996
2,023
Piano tuning
1,360
40,875
38,005
20
35,099
67,544
58,426
2,289
195,709
182,836
$
SARATOGA PERFORMING ARTS CENTER, INC.
AND NATIONAL MUSEUM OF DANCE
ADVERTISING AND PUBLICITY EXPENSES
YearsEnded December 31,
See Report of Independent Certified Public Accountants on Supplemental Information.
Page 17
2007
2006
Advertising and publicity
443,417
$
430,199
$
Design of advertising
40,405
Salaries and wages
5,595
773
51,806
51,710
11,715
22,700
22,330
6,386
SARATOGA PERFORMING ARTS CENTER, INC.
AND NATIONAL MUSEUM OF DANCE
BOX OFFICE EXPENSES
YearsEnded December 31,
2007 2006
Salaries and wages 50,983$ 64,809$
Payroll taxes 6,476 5,348
SARATOGA PERFORMING ARTS CENTER, INC.
AND NATIONAL MUSEUM OF DANCE
ADMINISTRATIVE AND GENERAL EXPENSES
YearsEnded December 31,
See Report of Independent Certified Public Accountants on Supplemental Information.
Page 19
2007 2006
Salaries and wages 789,453$ 734,453$
Payroll taxes 65,807 59,493
Employee benefits 210,830 159,888
Insurance 108,915 114,112
Travel and entertainment, Director 19,595 16,286
Development office fund raising 93,805 65,095
Postage 50,729 46,905
SARATOGA PERFORMING ARTS CENTER, INC.
STATEMENT OF FINANCIAL POSITION
December 31, 2007
(with comparative totals for 2006)
2007 2006
Cash and cash equivalents 495,169$ 581,806$
Accounts receivable, net 76,316 81,969
OTHER ASSETS
Investments 4,085,852 3,742,675
Leaseholds and improvements, net 893,510 902,984
Current installments of long-term debt –$ 3,481$
Accounts payable and accrued expenses 205,122 479,269
Accrued pension and other compensation benefits 289,103 469,195
Deferred revenues 683,255 696,342
Due to affiliate 5,613 –
Total current liabilities 1,183,093 1,648,287
Unrestricted
NET ASSETS
ASSETS
CURRENT ASSETS
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
SARATOGA PERFORMING ARTS CENTER, INC.
STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
Year Ended December 31, 2007
(with comparative totals for 2006)
Page 21
Temporarily Permanently 2007 2006
Unrestricted
Restricted
Restricted
Total
Total
OPERATING REVENUES AND GAINS
Ticket sales
2,864,648
$
–
$
–
$
2,864,648
$
2,555,004
$
Restricted by donors for operating purposes
Gifts and grants
979,421
19,512
–
998,933
1,021,996
–
–
83,264
115,136
194,311
–
–
194,311
450,161
1,337,814
–
–
1,337,814
1,357,458
–
–
–
–
5,478,970
5,499,755
OPERATING EXPENSES
Performance costs
Direct talent costs
4,323,110
–
–
4,323,110
3,945,383
Production expenses
899,202
–
–
899,202
893,155
Advertising and publicity
613,910
–
–
613,910
569,113
–
–
5,965,278
5,539,901
Administrative and general
1,567,806
–
–
1,567,806
1,402,062
124,073
–
–
124,073
138,147
–
–
7,657,157
7,080,110
129,056
–
–
129,056
132,250
Operating expenses (over) operating
revenues
(2,179,105)
918
–
(2,178,187)
(1,580,355)
NON-OPERATING REVENUES GAINS
(LOSSES)
Membership revenues
2,050,970
–
–
2,050,970
1,813,910
Gifts and bequests
7,148
–
–
7,148
20,951
Fund raising benefits, net
299,100
–
–
299,100
174,799
–
–
17,997
35,730
–
–
54,645
456,224
–
–
67,501
–
–
OTHER CHANGE IN NET ASSETS
Pension related changes other than net period costs
(187,309)
–
–
(187,309)
3,929
CHANGE IN NET ASSETS 546,746 918 – 547,664 508,321
2,585,414
4,530,100
4,021,779
NATIONAL MUSEUM OF DANCE
STATEMENT OF FINANCIAL POSITION
December 31, 2007
(with comparative totals for 2006)
2007 2006
CURRENT ASSETS
Cash and cash equivalents 41,315$ 21,751$
FIXED ASSETS, net 57,941 66,690
115,812$ 118,098$
CURRENT LIABILITIES
Accounts payable and accrued expenses 25,260$ 22,803$
NET ASSETS
Unrestricted 85,600 54,143
LIABILITIES AND NET ASSETS
ASSETS
NATIONAL MUSEUM OF DANCE
STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
Year Ended December 31, 2007
(with comparative totals for 2006)
Page 23
Temporarily
2007
2006
Unrestricted
Restricted
Total
Total
REVENUES AND GAINS
Admissions
18,982
$
–
$
18,982
$
19,593
$
Service fees
149,719
–
149,719
139,326
Gifts and grants
44,278
–
44,278
133,505
Interest income
740
–
740
238
16,962
–
16,962
18,422
70,484
–
70,484
30,617
–
–
305,897
301,165
341,701
105,122
–
105,122
51,658
323,109
–
323,109
367,943
–
462,711
–
462,711
450,322
FUND RAISING, net
188,271
–
188,271
109,963
CHANGE IN NET ASSETS
31,457
(4,732)
26,725
1,342
85,600
85,600
58,875