OHIO HIGH SCHOOL ATHLETIC ASSOCIATION Columbus, Ohio Financial Statements For the years ended July 31, 2012 and 2011 and Independent Auditors’ Report Thereon
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CONTENTS
PAGE
INDEPENDENT AUDITORS’ REPORT
1
FINANCIAL STATEMENTS Statements of Financial Position, July 31, 2012 and 2011
2
Statements for the years ended July 31, 2012 and 2011: Activities and Change in Net Assets
3
Cash Flows
4
Notes to Financial Statements
5
SUPPLEMENTARY FINANCIAL INFORMATION Statement of Financial Position by District, July 31, 2012
18
Statement of Activities by District for the year ended July 31, 2012
20
INDEPENDENT AUDITORS’ REPORT
Board of Directors Ohio High School Athletic Association Columbus, Ohio We have audited the accompanying statement of financial position of the Ohio High School Athletic Association (the Association) as of July 31, 2012 and the related statements of activities and change in net assets and cash flows for the year then ended. These financial statements are the responsibility of the Association's management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of the Association as of and for the year ended July 31, 2011 were audited by other auditors, whose report dated February 14, 2012 expressed an unqualified opinion on those statements. 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. Our audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Association’s internal control over financial reporting. Accordingly, we express no such opinion. 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. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Association as of July 31, 2012 and the change in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The statement of financial position by district as of July 31, 2012 and statement of activities by district for the year ended July 31, 2012 are presented for purposes of additional analysis and are not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.
Schneider Downs & Co., Inc. Columbus, Ohio April 2, 2013 Schneider Downs & Co., Inc. www.schneiderdowns.com
1
1133 Penn Avenue Pittsburgh, PA 15222-4205 TEL 412.261.3644 FAX 412.261.4876
41 S. High Street Suite 2100 Columbus, OH 43215-6102 TEL 614.621.4060 FAX 614.621.4062
OHIO HIGH SCHOOL ATHLETIC ASSOCIATION STATEMENTS OF FINANCIAL POSITION July 31 2012 CURRENT ASSETS Cash and cash equivalents Accounts receivable Prepaid expenses Short-term investments Investments - building fund
$
Total Current Assets PROPERTY AND EQUIPMENT Vehicles Furniture and fixtures Building Land Less: accumulated depreciation Property and equipment, net Total Assets CURRENT LIABILITIES Accounts payable Accrued employee wages and benefits Deferred income Total Current Liabilities
3,973,015 606,096 412,837 714,418 262,092
2011 $
4,106,410 412,956 390,553 705,931 256,631
5,968,458
5,872,481
194,766 1,752,761 1,507,049 44,000 3,498,576 (2,321,126) 1,177,450
173,982 1,467,703 1,293,887 44,000 2,979,572 (2,093,829) 885,743
$
7,145,908
$
6,758,224
$
241,847 262,631 1,018,245 1,522,723
$
317,712 229,169 981,135 1,528,016
LONG-TERM LIABILITIES Pension payable Total Liabilities
2,439,126 3,961,849
1,393,164 2,921,180
NET ASSETS Unrestricted: Board-designated funds: Building fund Fred Durkle scholarship Rossi/Denney scholarship Reserve fund Total Board Designated Funds Undesignated Total Net Assets
262,092 38,144 22,358 265,030 587,624 2,596,435 3,184,059
256,631 36,974 21,446 168,361 483,412 3,353,632 3,837,044
Total Liabilities and Net Assets
$
See accompanying notes to the financial statements. 2
7,145,908
$
6,758,224
OHIO HIGH SCHOOL ATHLETIC ASSOCIATION STATEMENTS OF ACTIVITIES AND CHANGE IN NET ASSETS July 31 2012 REVENUE AND OTHER GAINS Tournament revenue Other revenue Service revenue Realized gains on investments, net Unrealized gains on investment, net
$
Total Unrestricted Income EXPENSES AND OTHER LOSSES Tournament expenses General and administrative expenses Services Other expenses and losses: Loss on sale of property and equipment Contribution/donations Realized losses on investments, net
15,523,566 2,860,085 498,117 4,673 865
2011 $
18,887,306
18,044,412
11,053,439 5,491,358 1,218,132
10,764,348 5,105,713 1,207,002
5,113 3,350
6,880 1,834
-
Total Expenses And Other Losses Change In Net Assets From Operations OTHER CHANGES IN NET ASSETS Pension-related changes other than net periodic pension cost Change In Unrestricted Net Assets
17,771,392
17,085,777
1,115,914
958,635
1,768,899
114,154
(652,985)
NET ASSETS - UNRESTRICTED Beginning of year
844,481
3,837,044 $
End of year
See accompanying notes to the financial statements. 3
14,783,852 2,784,228 452,601 23,731
3,184,059
2,992,563 $
3,837,044
OHIO HIGH SCHOOL ATHLETIC ASSOCIATION STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JULY 31, 2012 AND 2011 2012 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from tournaments, sales and fees Cash paid to suppliers and employees Interest on investments
$
Net Cash Provided By Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment Proceeds from sale of property and equipment Purchase of investments Proceeds from sale of investments Net Cash Used In Investing Activities Net (Decrease) Increase In Cash CASH AND CASH EQUIVALENTS Beginning of year
18,708,993 (18,296,814) 16,745
2011 $
428,924
836,804
(554,829) 920 (94,229) 85,819 (562,319)
(296,571) (184,096) (480,667)
(133,395)
356,137
4,106,410
End of year
18,491,097 (17,664,650) 10,357
3,750,273
$
3,973,015
$
4,106,410
$
1,115,914
$
958,635
RECONCILIATION OF CHANGE IN NET ASSETS FROM OPERATIONS TO NET CASH PROVIDED BY OPERATING ACTIVITIES Change in net assets Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation Unrealized gains on investments, net Realized (gains) losses on investments, net Loss on sale of asset (Increase) decrease in assets: Accounts receivable Prepaid expenses Increase (decrease) in liabilities: Accrued employees wages and benefits payable Accounts payable Deferred income Pension payable
$
Net Cash Provided By Operating Activities See accompanying notes to the financial statements. 4
257,089 (865) (4,673) 5,113
274,698 (23,731) 1,834 -
(193,140) (22,284)
80,875 17,748
33,462 (75,865) 37,110 (722,937)
53,586 12,327 85,016 (624,184)
428,924
$
836,804
OHIO HIGH SCHOOL ATHLETIC ASSOCIATION NOTES TO FINANCIAL STATEMENTS JULY 31, 2012 AND 2011
NOTE 1 - ORGANIZATION The purpose of the Ohio High School Athletic Association (the Association) shall be to regulate, supervise and administer interscholastic athletic competition among its member schools to the end that the interscholastic program be an integral factor in the total educational program of the schools. This shall be accomplished in cooperation with all agencies vitally concerned with the health and educational welfare of high school, middle school and junior high school students; determining qualifications of individual participants, coaches and officials; providing information through literature and other materials to facilitate athletic relations among member schools; establishing standards for sportsmanship and competition; furnishing protection against exploitation of school or student in any manner directed by the member schools. The Columbus office is the administrative and primary office of the Association and is supported by six districts located throughout the state. These financial statements include all districts and the Columbus office.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A summary of significant accounting policies consistently applied by management in the preparation of the accompanying financial statements follows: Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents - The Association considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. The Association maintains, at various financial institutions, cash and cash equivalents that exceed federally insured amounts at times. Accounts Receivable - Accounts receivable are stated at the amount that management expects to collect from outstanding balances. Decisions to charge-off receivables are based on management’s judgment after consideration of facts and circumstances surrounding potential uncollectible accounts. A substantial portion of the Association’s receivables are tournament proceeds owed to them by independent tournament directors and a corporate sponsor. No reserve for uncollectible accounts receivable is deemed to be necessary as of July 31, 2012 and 2011. It is reasonably possible that the Association’s estimate of the reserve for uncollectible accounts will change. Short-Term Investments - Short-term investments are carried at cost, which approximates fair value. At July 31, 2012 and 2011, these investments were primarily interest-bearing bank certificates of deposit with original maturity dates of greater than three months that mature within the next fiscal year. Investments - Building Fund - Building fund investments represent board-designated amounts set aside for the purpose of upgrading, remodeling and replacing significant components of the Columbus office. The Association’s building fund investments consist of mutual funds and corporate bonds, and are recorded at fair value. The Association considers all highly liquid instruments with original maturities of less than a year to be current assets.
5
OHIO HIGH SCHOOL ATHLETIC ASSOCIATION NOTES TO FINANCIAL STATEMENTS JULY 31, 2012 AND 2011
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fair value is the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. Realized and unrealized gains and losses are included in investment income in the accompanying statement of activities. Dividends and interest are recognized when earned. Property and Equipment - Property and equipment are carried at the lower of cost or market. Depreciation is calculated over the estimated useful lives of the related assets. Maintenance and repairs are charged to operations when incurred. Renewals and betterments that materially extend the useful lives of the assets are capitalized. When assets are retired or otherwise disposed of, the assets and related allowance for depreciation are eliminated from the accounts, and any resulting gain or loss is reflected in income. The useful lives and methods used are as follows: DESCRIPTION
USEFUL LIFE
METHOD
Building Furniture and fixtures Vehicles
31-40 years 5-10 years 5 years
Straight-line Straight-line Straight-line
Revenue Recognition - Tournament revenues are recognized at the time the tournaments occur. Officials’ dues are recognized in the period for which the officials have been licensed. Sponsorship revenues are recognized in the period earned. Officials’ dues and sponsorship revenues are included in other support in the statement of activities and change in net assets. Income Taxes - The Association is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code. The Association has not identified any material uncertain tax positions requiring accrual or disclosure in the financial statements. There was no interest or penalties recognized during 2012 or 2011. The Association’s tax years since 2009 remain subject to examination. Basis of Accounting - The Association classifies resources for accounting and reporting purposes into separate net asset classes based on the existence or absence of donor-imposed restrictions. Descriptions of the Association’s net asset categories are as follows: Unrestricted Net Assets - Net assets that are not subject to donor-imposed restrictions or stipulations as to purpose or use. Temporarily Restricted Net Assets - Net assets that are subject to donor-imposed stipulations that may or will be met, either by actions of the Association or by the passage of time. When restrictions expire, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. As of July 31, 2012 and 2011, the Association had no temporarily restricted net assets. Permanently Restricted Net Assets - Net assets whose use is permanently restricted by the donor. As of July 31, 2012 and 2011, the Association had no permanently restricted net assets. 6
OHIO HIGH SCHOOL ATHLETIC ASSOCIATION NOTES TO FINANCIAL STATEMENTS JULY 31, 2012 AND 2011
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Reclassification - Certain prior-year amounts were reclassified to conform to current-year presentation. There was no impact on net assets or changes in net assets as a result of the reclassification.
NOTE 3 - INVESTMENTS Investments by type consist of the following at July 31: 2012 Cost Short-term Investments: Certificates of deposit Investments - building fund: Equity mutual funds Corporate bonds
2011 Fair Value
Cost
Fair Value
$
713,039
$
713,039
$
705,931
$
705,931
$
127,490 112,110
$
141,784 120,308
$
128,526 106,478
$
142,071 114,560
$
239,600
$
262,092
$
235,004
$
256,631
Investment returns for the years ended July 31 consist of the following: 2012 Interest income and dividends Realized gains (losses), net Unrealized gains, net
2011
$
16,745 4,673 865
$
10,357 (1,834) 23,731
$
22,283
$
32,254
NOTE 4 - FAIR VALUE MEASUREMENTS Fair value guidance establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level l measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Association has the ability to access.
7
OHIO HIGH SCHOOL ATHLETIC ASSOCIATION NOTES TO FINANCIAL STATEMENTS JULY 31, 2012 AND 2011
NOTE 4 - FAIR VALUE MEASUREMENTS (Continued) Level 2: Inputs to the valuation methodology include: • • • •
Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in inactive markets; Inputs other than quoted prices that are observable for the asset or liability; Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at July 31, 2012 and 2011. Certificates of Deposit: Valued at cost. Equity Mutual Funds: Valued at the net asset value of the underlying investments. Corporate Bonds: Valued at the closing price for identical assets reported on the active market on which the individual securities are traded. The methods described above might produce a fair value calculation that might not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Association believes its valuation methods are appropriate and consistent, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The fair values of investment securities at July 31, by asset category, are as follows: 2012 Level 1 Short-term Investments: Certificates of deposit Investments - building fund: Equity mutual funds Corporate bonds
Level 2
-
$
713,039
Level 3
Total
-
$
713,039
$
141,784 120,308
-
-
$
141,784 120,308
$
262,092
-
-
$
262,092
8
OHIO HIGH SCHOOL ATHLETIC ASSOCIATION NOTES TO FINANCIAL STATEMENTS JULY 31, 2012 AND 2011
NOTE 4 - FAIR VALUE MEASUREMENTS (Continued) 2011 Level 1 Short-term Investments: Certificates of deposit Investments - building fund: Equity mutual funds Corporate bonds
Level 2
-
$
705,931
Level 3
Total
-
$
705,931
$
142,071 114,560
-
-
$
142,071 114,560
$
256,631
-
-
$
256,631
NOTE 5 - DEFERRED INCOME Annual officials’ dues and fees received prior to the licensing period, an entry fee for student participants in the pre-season cross country invitational held after July 31, and a fee for football schools to participate in a third preseason contest, known as a Jamboree, received prior to the contest are recorded as deferred income. Deferred income amounted to $1,018,245 and $981,135 as of July 31, 2012 and 2011, respectively. NOTE 6 - OPERATING LEASES The Association leases certain office equipment under non-cancellable operating leases, which expire through years ending with 2015. Future minimum lease payments are as follows for the years ending July 31: Year Ending July 31
Amount
2013 2014 2015
$
118,099 58,099 44,476
$
220,674
Total rent expense for the years ended July 31, 2012 and 2011 amounted to $125,030 and $96,844, respectively. NOTE 7 - RETIREMENT AND PENSION PLANS The Association sponsors a defined contribution retirement plan for its current employees and has, in the past, sponsored a defined benefit plan. On July 31, 2006, the Association froze the defined benefit plan to employees of record as of July 31, 2005. On July 31, 2009, the Association ceased accruing additional pension benefits and years of service for employees in the Association’s defined benefit plan. As of August 1, 2005, all employees became eligible to participate in the defined contribution plan sponsored by the Association. 9
OHIO HIGH SCHOOL ATHLETIC ASSOCIATION NOTES TO FINANCIAL STATEMENTS JULY 31, 2012 AND 2011
NOTE 7 - RETIREMENT AND PENSION PLANS (Continued) Defined Benefit Plan The Association’s defined benefit pension plan covers approximately half of its currently employed fulltime employees. The benefits are based on years of service and an employee’s compensation during the last ten years of their employment through July 31, 2009. The Association’s funding policy is to contribute annually the amount determined by the actuary. The Association accounts for the defined benefit pension plan in accordance with FASB ASC 715-20: Defined Benefit Plans. This Topic requires an employer to recognize the overfunded or underfunded status of a defined benefit postretirement plan as an asset or liability in its statement of financial position and to recognize changes in the funded status in the year in which the change occurs through the statement of activities. Defined benefit plan assets and obligations are measured as of the date of the employer's fiscal year-end. Weighted average actuarial assumptions used to determine pension benefit obligations for fiscal years ended July 31 are as follows:
Discount Rate Rate of Compensation Increase
2012
2011
3.50% N/A
5.10% N/A
Weighted average assumptions used to determine pension-related changes:
Discount Rate Expected long-term rate of return on plan assets Rate of Compensation Increase
10
2012
2011
5.10% 6.60% N/A
5.30% 6.80% N/A
OHIO HIGH SCHOOL ATHLETIC ASSOCIATION NOTES TO FINANCIAL STATEMENTS JULY 31, 2012 AND 2011
NOTE 7 - RETIREMENT AND PENSION PLANS (Continued) Information about changes in obligations and plan assets of the defined benefit pension plan for years ended July 31 are as follows: 2012 Change in projected benefit obligation: Beginning projected benefit obligation Service cost Expenses paid Interest cost Actuarial loss Benefits paid
$
2011
6,012,573 $ 2,000 (2,000) 298,882 1,367,241 (338,608)
5,868,294 2,000 (2,000) 303,568 179,319 (338,608)
Ending projected benefit obligation
7,340,088
6,012,573
Change in plan assets, at fair value: Beginning plan assets Actual return (net of expenses) Employer contribution Benefits paid Expenses paid
4,619,409 47,161 575,000 (338,608) (2,000)
3,965,100 544,917 450,000 (338,608) (2,000)
Ending plan assets
4,900,962
4,619,409
Underfunded Status
$
(2,439,126) $
(1,393,164)
The accumulated benefit obligation was $7,340,088 and $6,012,573 for fiscal years ended July 31, 2012 and 2011, respectively. Reconciliation of net periodic benefit cost as of July 31: 2012 Service cost Interest cost Expected return on plan assets Amortization of net gain
$
Net periodic benefit cost
$
2011
2,000 $ 298,882 (310,546) 100,271 90,607
$
2,000 303,568 (305,775) 83,773 83,566
The estimated net loss for the defined benefit pension plan that will be amortized from unrestricted net assets over the next fiscal year approximates $199,065.
11
OHIO HIGH SCHOOL ATHLETIC ASSOCIATION NOTES TO FINANCIAL STATEMENTS JULY 31, 2012 AND 2011
NOTE 7 - RETIREMENT AND PENSION PLANS (Continued) The Association’s pension plan asset allocations and target allocations at July 31, 2012 and 2011, and target allocation for 2012 are as follows:
Asset Category Equity securities Fixed-income mutual funds Cash and cash equivalents Total
Target Allocation 2012
Percentage of Actual Plan Assets 2012 2011
60% 40% 0%
60% 40% 0%
59% 41% 0%
100%
100%
100%
To develop the expected long-term rate of return on assets assumption, the Association considered historical returns and future expectations for returns in each asset class, as well as the target allocation of the pension portfolio.
12
OHIO HIGH SCHOOL ATHLETIC ASSOCIATION NOTES TO FINANCIAL STATEMENTS JULY 31, 2012 AND 2011
NOTE 7 - RETIREMENT AND PENSION PLANS (Continued) The fair values of plan assets at July 31, by asset category, are as follows: 2012 Level 1 Fixed-Income Funds: Stable Asset Fund II Equity Securities: Vanguard Morgan Growth $ Federated Mid - Cap Penn Mutual Investments T Rowe Price Equity - Income Mainstay Map William Blair Intl Growth Total Plan Assets
-
Level 2 $
485,690 966,023 241,429 252,921 501,901 499,600
$ 2,947,564
Level 3
1,953,398
-
$
Total $
-
1,953,398
-
1,953,398 485,690 966,023 241,429 252,921 501,901 499,600
$
4,900,962
2011 Level 1 Fixed-Income Funds: Stable Asset Fund II Equity Securities: Vanguard Morgan Growth $ Federated Mid-Cap Penn Mutual Investments T Rowe Price Equity - Income Mainstay Map William Blair Intl Growth Total Plan Assets
-
Level 2 $
458,948 895,752 225,211 223,786 450,456 469,206
$ 2,723,359
1,896,050 -
$
1,896,050
Level 3 -
Total $
-
1,896,050 458,948 895,752 225,211 223,786 450,456 469,206
$
4,619,409
The Association’s funding policy is to, as a base payment, contribute the minimum amount annually based on actuarial and economic assumptions designed to achieve adequate funding of projected benefit obligations. However, the Association makes pension contributions a priority budget item when formulating the annual budget for the organization. The Association has budgeted $630,000 as the contribution for fiscal year ending July 31, 2013.
13
OHIO HIGH SCHOOL ATHLETIC ASSOCIATION NOTES TO FINANCIAL STATEMENTS JULY 31, 2012 AND 2011
NOTE 7 - RETIREMENT AND PENSION PLANS (Continued) The following benefit payments are expected for the years ending July 31: Year Ending July 31
Amount
2013 2014 2015 2016 2017 2018-2022
$
359,882 351,863 361,532 357,633 349,194 1,976,039
These estimated benefit payments are based on assumptions about future events. Actual benefit payments could vary significantly from these estimates. Defined Contribution Plan The Association’s defined contribution retirement plan is available to all full-time employees. The Association makes an annual contribution of 12% of eligible employee compensation to the plan, which amounted to $284,544 and $203,750 for the years ended July 31, 2012 and 2011, respectively. Employees are eligible to contribute a portion of their salary, up to regulatory contribution ceilings, in addition to the amount contributed by the Association. NOTE 8 - CONCENTRATION OF CREDIT RISK Financial instruments that potentially subject the Association to concentrations of credit risk consist principally of investments. The Association places these investments with financial institutions. The carrying amount of cash shown in the accompanying financial statement includes checking, money market, certificate of deposits and savings amounts with various banks for the years ended July 31, 2012 and 2011. At July 31, 2012 and 2011, the bank balances, including checking, savings and certificate of deposit accounts of the Association, amounted to $5,099,627 and $5,566,244, respectively. Of the total bank balances, $4,448,907 and $5,120,218 was covered by federal depository insurance and $650,720 and $446,026 was uninsured and uncollateralized for the fiscal years ended July 31, 2012 and 2011, respectively. NOTE 9 - BOARD DESIGNATIONS The Association has designated funds as noted in Note 2 for the purpose of upgrading, remodeling and replacing significant components of the building as of July 31, 2012 and 2011 of $262,092 and $256,631, respectively. The Association started the Board Designated Reserve Fund to have a funding source for extraordinary or unforeseen expenditures. The value as of July 31, 2012 and 2011 was $265,030 and $168,361, respectively. Funds have also been designated for the Fred Durkle Scholarship Fund and the Rossi-Denney Scholarship Fund. Scholarship money is presented annually to senior athletes in the name of the late Fred Durkle, John Rossi and Bob Denney. The amount accumulated in this Fred Durkle fund as of July 31, 2012 and 2011 was $38,144 and $36,974, respectively. The amount accumulated in this Denney-Rossi fund as of July 31, 2012 and 2011 was $22,358 and $21,446, respectively. 14
OHIO HIGH SCHOOL ATHLETIC ASSOCIATION NOTES TO FINANCIAL STATEMENTS JULY 31, 2012 AND 2011
NOTE 10 - OHSAA FOUNDATION In 1998, the Association provided the initial funding of $400,000 to start the Ohio High School Athletic Association Foundation (Foundation). The Foundation is a separately formed, controlled and operated not-forprofit organization. The Foundation was formed to provide scholarships and conferences for Ohio student athletes. The Association provides the foundation accounting and clerical services for no charge. As of and for the years ended July 31, 2012 and 2011, the Foundation had the following financial position and activity: 2012 Assets Liabilities Net deficit Revenue Expenses
$
5,843 $ 24,149 (18,306) 72,112 82,408
2011 10,884 18,894 (8,010) 83,272 84,929
NOTE 11 - SUBSEQUENT EVENTS Subsequent events are defined as events or transactions that occur after the statement of financial position date, but before the financial statements are issued or are available to be issued. Management has evaluated subsequent events through April 2, 2013, the date on which the financial statements were available to be issued. The Association transferred $88,300 as the 2012 fiscal year contribution to the Board Designated Reserve Fund on November 13, 2012. Including interest earned, the value as of July 31, 2012 and November 30, 2012 was $265,030 and $353,330, respectively. On October 19, 2012, the Association entered into a purchase agreement to acquire a building and land adjacent to the current Association offices. The property will be used to accommodate operational needs of the Association. The purchase price of the property was $900,000, including a seller-financed note payable in the amount of $750,000. The note payable bears interest at 2% per annum, requires annual payments, and matures in October 2019.
15
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16
SUPPLEMENTARY FINANCIAL INFORMATION
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17
OHIO HIGH SCHOOL ATHLETIC ASSOCIATION STATEMENT OF FINANCIAL POSITION BY DISTRICT AS OF JULY 31, 2012 (With Comparative Totals for 2011)
Columbus CURRENT ASSETS Cash and cash equivalents Short-term investments Prepaid expenses Accounts receivable Investments - building fund Total Current Assets
$
PROPERTY AND EQUIPMENT Vehicles Furniture and fixtures Building Land Less: accumulated depreciation Property and equipment, net
2,909,979 169,668 411,862 730,216 262,092 4,483,817
Central $
194,766 1,716,118 1,507,049 44,000 (2,296,648) 1,165,285
Total Assets CURRENT LIABILITIES Accounts payable Accrued employee wages and benefits Deferred income Total Current Liabilities
-
135,134 50,140 185,274
$
1,695 (1,695)
(4,768)
-
217,693 111,489 975 1,332 331,489
17,763 (11,873) 5,890
4,768
-
-
5,649,102
$
112,462
$
185,274
$
337,379
$
232,444 262,631 1,014,995 1,510,070
$
27,202 27,202
$
24,324 24,324
$
34,797 3,250 38,047
2,439,126 3,949,196
NET ASSETS Board designated funds: Building fund Fred Durkle Scholarship Rossi/Denney Scholarship Reserve fund Total Board Designated Funds Unrestricted Total Net Assets
27,202
24,324
38,047
262,092
-
-
-
-
-
-
-
-
265,030 527,122 1,172,784 1,699,906 $
18
$
Northeast
$
LONG-TERM LIABILITIES Pension payable Total Liabilities
Total Liabilities And Net Assets
100,016 12,446 112,462
East
5,649,102
$
-
-
-
85,260 85,260
160,950 160,950
299,332 299,332
112,462
$
185,274
$
337,379
Northwest $
212,978 5,060 218,038
Southeast $
-
64,424 228,494 1,988 294,906
$
19,406
$
-
19,270
$
-
-
-
-
-
-
277,147 277,147
219,172
$
296,417
7,145,908
$
6,758,224
29,350
$
$
241,847 262,631 1,018,245 1,522,723
$
29,350
(144,946) (144,946)
317,712 229,169 981,135 1,528,016
29,350
(144,946)
-
-
38,144 22,358 60,502 401,196 461,698 $
173,982 1,467,703 1,293,887 44,000 (2,093,829) 885,743
$
-
199,766 199,766
194,766 1,752,761 1,507,049 44,000 (2,321,126) 1,177,450
4,106,410 705,931 390,553 412,956 256,631 5,872,481
(144,946)
19,270
-
$
$
-
19,406
3,973,015 714,418 412,837 606,096 262,092 5,968,458
491,048
19,270
-
$
-
(1,320) 3,630 $
(144,946) (144,946)
-
296,417
19,406
$
4,950
(3,609) 1,511
219,172
Eliminations
-
(1,213) 1,134
$
332,791 154,627 487,418
5,120
-
$
$
2,347
$
Southwest
Total All Funds 2012 2011
491,048
$
(144,946)
See independent auditors' report. 19
$
2,439,126 3,961,849
1,393,164 2,921,180
262,092 38,144 22,358 265,030 587,624 2,596,435 3,184,059
256,631 36,974 21,446 168,361 483,412 3,353,632 3,837,044
7,145,908
$
6,758,224
OHIO HIGH SCHOOL ATHLETIC ASSOCIATION STATEMENT OF ACTIVITIES BY DISTRICT FOR THE YEAR ENDED JULY 31, 2012 (With Comparative Totals for 2011)
Columbus Revenue and Other Gains: Tournament Revenue: Boys basketball Football Girls basketball Soccer Wrestling Track & field Volleyball Baseball Softball Swimming & diving Ice hockey Cross country Bowling Golf Field hockey Gymnastics Tennis Total Tournament Revenue Other Revenue: Officials dues Corporate sponsors T-Shirts fees Other miscellaneous Clinic & meetings Blank shells Books & subscriptions Interest earned Dividends Total Other Revenue Service Revenue: Coaches education Football jamboree Total Service Revenue Total Revenue And Other Gains
$
2,210,237 4,136,915 622,142 395,703 705,580 476,676 257,083 262,536 165,138 72,164 168,273 106,422 12,820 35,080 29,252 12,840 18,482 9,687,343
Central
$
1,237,762 1,117,875 120,334 73,919 77,400 19,887 15,855 4,224 5,814 2,673,070
212,276 91,610 105,444 58,884 40,350 61,373 30,228 26,592 39,111 9,930 9,564 4,104 689,466
East
$
-
Northeast
158,821 82,582 24,060 39,405 18,582 35,334 29,838 30,450 2,490 2,695 424,257
-
6,615 17,021 2,068 10 25,714
9,254 250 198 9,702
$
650,332 259,695 246,448 118,544 87,024 133,559 54,884 37,096 58,476 747 32,918 6,230 1,685,953
Northwest
$
586,798 265,679 121,494 89,220 71,884 140,756 101,136 72,962 29,048 13,164 1,782 1,493,923
44,412 7,110 698 52,220
24,904 19 24,923
426,367 71,750
-
-
-
-
498,117
-
-
-
-
$ 1,738,173
$ 1,518,846
$ 12,858,530
20
$
715,180
$
433,959
Southeast
$
247,454 78,354 29,611 9,959 18,834 33,723 35,621 16,779 825 471,160
Southwest
$
581,368 188,692 207,516 96,134 63,001 93,996 80,838 54,787 42,744 21,870 35,951 4,296 3,060 1,474,253
Eliminations
$ (360,744) (42,045) (402,789)
Total All Funds 2012 2011
$ 4,286,542 4,136,915 1,546,709 1,130,276 1,117,726 776,351 755,824 595,081 403,804 244,033 168,273 138,969 107,937 39,376 29,252 28,016 18,482 15,523,566
$ 4,186,783 3,862,735 1,526,510 1,171,328 1,047,225 713,807 719,412 465,840 339,764 237,499 161,429 134,201 107,448 36,617 28,150 25,764 19,340 14,783,852
2,340 6,361 183 5,034 13,918
26,018 27,939 6,581 60,538
-
1,237,762 1,126,830 248,304 111,488 77,400 19,887 15,855 16,745 5,814 2,860,085
1,161,492 1,164,518 252,215 100,745 47,839 20,598 19,715 10,357 6,749 2,784,228
-
-
-
426,367 71,750
380,351 72,250
-
-
-
498,117
452,601
$ 485,078
$ 1,534,791
$ (402,789)
$ 18,881,768
$ 18,020,681
See independent auditors' report. 21
OHIO HIGH SCHOOL ATHLETIC ASSOCIATION STATEMENT OF ACTIVITIES BY DISTRICT FOR FISCAL YEAR ENDED JULY 31, 2012 (With Comparative Totals for 2011)
Columbus Tournament Expenses: Boys basketball Football Girls basketball Wrestling Track & field Soccer Volleyball Baseball Softball Swimming & diving Cross country Ice hockey Golf Tennis Bowling Bonus to schools Gymnastics Field hockey Special awards Total Tournament Expenses
$
805,782 2,374,621 467,604 528,529 451,969 278,451 178,869 211,135 145,108 78,853 156,130 138,501 44,725 26,243 13,458 23,310 27,020 20,708 5,971,016
General and Administrative Expenses: Salaries and wages Commissioners salaries Payroll taxes & benefits Insurance Consultant fees Board travel & meetings Office expense Depreciation Clinics & meetings Printing Legal fees Miscellaneous expenses Rents & leases Repairs & maintenance Net periodic pension expenses Pension fees Workers compensation Contract labor Audit fees Rule books/officials meetings Other taxes & licenses Interest expenses Total General & Administrative Expenses
908,753 918,861 438,907 400,809 353,488 119,929 245,940 252,763 183,974 174,324 179,959 107,871 123,194 115,670 90,607 68,704 64,948 750 30,600 9,846 5,969 126 4,795,992
Service Expense: Catastrophic and tournament accident insurance Officiating expenses Member service expense Scholar/athlete scholarships Coaches education Cause marketing Respect game respect yourself Total Service Expense
626,950 279,602 178,351 36,000 15,803 4,926 1,141,632
Other (Expense) Income: Contributions/donations Unrealized gains on investments, net Realized gains (losses) on investments, net Loss on sale of assets Total Other (Expense) Income
Central $
$
22
(820,034)
111,172 59,568 22,703 18,623 16,484 20,454 18,969 16,338 2,490 2,486 2,308 790 1,189 293,574
$
4,175 86
8,263
10,557
3,600
8,000
662 116,004
2,799 122,622
-
-
-
95,662
-
3,750
-
25,000
8,000 (200)
(700)
(200)
(700)
(700) (700)
1,697,918 40,255
$
15,750
-
393,686 40,273
-
25,000
-
698,368 16,812
15,750
3,750
-
6,965 -
-
85,123
2,884 500 456
-
-
54,035 7,900 469 13,468 5,272
6,989 613 162
-
2,234 -
100 41,696 4,730 2,349 119 214
495
-
29,480
4,171
-
3,594 1,237
1,511,215 7,631
40,273
539,835 245,879 94,298 73,210 99,134 110,123 76,529 61,091 32,332 12,845 8,778 9,550 3,604 4,835 100 1,372,143
-
30,759 3,925
-
$
54,523
2,996
29,312 2,826
Northwest
-
-
16,812
494,422 222,688 136,797 114,654 165,623 99,684 63,968 56,128 67,003 29,860 13,291 31,397 27,374 33,834 191 1,556,914
39,166
2,532
$
Northeast
-
-
1,768,899
Change In Unrestricted Net Assets
$
33,098
11,909,665 948,865
Pension-related changes other than net periodic pension cost
141,219 79,012 60,139 52,091 67,832 46,062 29,242 22,967 35,000 9,415 26,667 11,603 16,182 7,614 605,045
-
(1,450) 865 4,673 (5,113) (1,025)
Total Expenses & Other Income Change In Net Assets From Operations
East
$
40,255
$
7,631
Southeast $
201,243 68,099 10,596 20,994 14,416 15,291 17,868 12,129 3,652 3,193 4,282 460 372,223
Southwest $
421,845 151,052 87,749 80,218 120,068 69,681 48,593 43,839 72,930 29,386 13,196 18,810 28,139 90,218 7,128 2,461 1,285,313
29,852
47,258
-
2,283
3,615
-
24,997 2,182 518 10,711 5,628
52,638 15,653 990 43,867 4,818
-
8,896
3,786 723
-
5,600
11,940 185,288
90,667 -
6,500
17,500
-
6,500
17,500
-
(300) (300)
469,390 15,688
1,488,401 46,390
$
15,688
$
Total All Funds 2012 2011
Eliminations $
(360,744) (42,045) (402,789)
$
$
2,310,781 2,300,726 1,243,789 902,082 804,069 719,071 528,893 474,283 372,807 295,628 221,314 136,005 107,602 106,651 88,799 -
79,689 27,289 44,870 10,764,348
-
1,142,130 918,861 456,738 400,809 353,588 353,366 283,156 257,089 255,733 191,988 179,959 141,566 125,030 116,374 90,607 68,704 64,948 43,509 30,600 10,508 5,969 126 5,491,358
1,019,540 792,850 392,863 395,435 323,061 348,035 329,248 274,698 179,629 203,802 179,937 89,116 96,844 99,727 83,566 112,109 91,335 50,294 31,400 6,119 6,052 53 5,105,713
-
626,950 279,602 178,351 112,500 15,803 4,926 1,218,132
629,125 271,813 162,682 109,000 33,672 710 1,207,002
-
(3,350) 865 4,673 (5,113) (2,925)
(402,789) -
-
(6,880) 23,731 (1,834) 15,017
17,765,854 1,115,914
46,390
2,354,774 2,374,621 1,251,857 940,811 811,759 762,008 540,164 466,304 357,600 292,260 240,122 138,501 112,158 102,675 90,406 90,218 76,721 27,020 23,460 11,053,439
17,062,046 958,635
1,768,899 $
(652,985)
114,154 $
844,481
See independent auditors' report. 23
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