SAFARI GAME SEARCH FOUNDATION dba WILDLIFE SAFARI FINANCIAL STATEMENTS

YEAR ENDED SEPTEMBER 30, 2015

with Comparative Totals For 2014

SAFARI GAME SEARCH FOUNDATION dba WILDLIFE SAFARI YEAR ENDED SEPTEMBER 30, 2015

TABLE OF CONTENTS

INDEPENDENT AUDITORS' REPORT

1-2

FINANCIAL STATEMENTS: Statement of Financial Position

Statement of Activities

Statement of Functional Expenses

Statement of Cash Flows

Notes to Financial Statements

3-4 5-6

7-8 9 - 10 11 - 20

3'JR NE \'iillcill'ster Post Office Box 2350

wicks

emmett~

Roseburg, OR 97470

CERTIFIED PUBLIC

ACCOUNTANTS

(')41) 673-4423 Fax rS41) 673-0287

www.wicksemmett.com

INDEPENDENT AUDITORS' REPORT

To the Board of Directors Safari Game Search Foundation dba Wildlife Safari Winston, Oregon

We have audited the accompanying financial statements of Safari Game Search Foundation dba Wildlife Safari (a non-profit organization), which comprise the statement of financial position as of September 3D, 2015, and the related statements of activities, functional expenses, and cash flows for the year then ended, and the related notes to the financial statements.

Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion.

1

Basis for Qualified Opinion As explained in Note 6 to the financial statements, the Foundation has not capitalized the value of certain animals on exhibit. In our opinion, accounting principles generally accepted in the United States of America require that such amounts be capitalized in their entirety. The effects on the accompanying financial statements of the failure to capitalize the value of certain animals on exhibit have not been determined.

Qualified Opinion In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements referred to above present fairly, in all material respects, the financial position of Safari Game Search Foundation as of September 30, 2015 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Report on Summarized Comparative Information We have previously audited the Safari Game Search Foundation's 2014 financial statements, and we expressed a qualified opinion on those audited financial statements in our report dated May 20, 2015. In our opinion, the summarized comparative information presented herein as of and for the year ended September 30, 2014, is consistent, in all material respects, with the audited financial statements from which it has been derived. See Note 1 N.

Roseburg, Oregon February 22, 2016

2

FINANCIAL STATEMENTS

SAFARI GAME SEARCH FOUNDATION DBA WILDLIFE SAFARI STATEMENT OF FINANCIAL POSmON SEPTEMBER 30, 2015 With Comparative Totals for 2014 2014

2015 ASSETS CURRENT ASSETS Cash and Cash Equivalents Accounts Receivable Employee Receivables Grants and Pledges Receivable

$

Deferred Payment - Social Media Inventories Prepaid Expenses Cash Held for Investment Purposes Total Current Assets PROPERTY AND EQUIPMENT, NET

250,042 69,013 855 50,000 1,252 201,503 93,208 1,054,315

$

310,863 69,272 (239)

198,285 83,690 26,094

1,720,188

687,965

2,467,580

2,185,450

910,026 2,569 529,363

998,324 1,539,827 529,363

1,441,958

3,067,514

OTHER ASSETS Interest in Assets Held by Oregon Community Foundation Investments Animals on Exhibit Total Other Assets TOTAL ASSETS

$

5,629,726

$

5,940,929

The accompanying notes are an integral part of these financial statements.

3

SAFARI GAME SEARCH FOUNDATION DBA WILDLIFE SAFARI

STATEMENT OF FINANCIAL POSmON (Continued)

SEPTEMBER 30, 2015

With Comparative Totals for 2014

2014

2015 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts Payable - Gift Shop Accounts Payable

$

Payroll and Other Accrued Expenses Compensated Absences Payable Other Payables Gift Cards Outstanding Intern Housing Deposits Secured Note Payable Current Portion Long-Term Debt Total Current Liabilities

21,797 81,108 73,189 42,733 4,492 446 500 26,069 61,894

$

34,432 59,731 74,309 34,909 3,265 450 250,141 54,465

312,228

511,702

228,934

260,778

228,934

260,778

541,162

772,480

4,004,942 1,083,622

3,916,096 1,252,353

5,088,564

5,168,449

LONG-TERM LIABILITIES Long-Term Debt, Net of Current Portion Total Long-Term Liabilities Total Liabilities

NET ASSETS Unrestricted Temporarily Restricted Total Net Assets

TOTAL LIABILITIES AND NET ASSETS

$

5,629,726

$

5,940,929

The accompanying notes are an integral part of these financial statements.

4

SAFARI GAME SEARCH FOUNDATION DBA WILDLIFE SAFARI STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2015 With Comparative Totals for 2014 Temporarily Unrestricted

2014 Totals

2015 Totals

Restricted

REVENUE, GAINS AND OTHER SUPPORT REVENUE Admissions and Auxiliary Activities Membership Revenues Gift Shop, Photos, and Brochure Sales Less: Cost of Goods Sold

$

2,717,420 264,888

$

$

2,717,420 264,888

$

2,392,426 246,369

670,782

670,782

{287 (123)

{287(123)

555,304 {226,286)

383,659

383,659

329,018

371,219 (142,474)

371,219 {142,474)

299,898 {113 (681)

228,745

228,745

186,217

204,697 163,961 117,823 244,661

131,514 168,646 135,450 203,610

40,924 34,846

40,924 34,846

9,462

9,462

39,309 39,665 2,000 33,801

4,411,086

3,908,025

Gross Margin on Gift Shop, Photos and Brochures Food Concession Revenue Less: Cost of Goods Sold Gross Margin on Food Concession

PUBLIC SUPPORT Contributions Special Event Revenue

118,879 64,411

Grants and Contracts In-Kind Revenue

85,818 99,550 117,823 244,661

OTHER GAINS AND REVENUE Investment Income Value of Camp Tickets Redeemed Animal Sales Other Income Revenue, Gains and Other Support

3,863,234

547,852

NET ASSETS RELEASED FROM RESTRICTIONS Satisfaction of Purpose Restrictions Total Revenue, Gains and Other Support

670,430

(670,430)

4,533,664

{122,578)

4,411,086

3,908,025

The accompanying notes are an integral part of these financial statements.

5

SAFARI GAME SEARCH FOUNDATION DBA WILDLIFE SAFARI STATEMENT OF ACTIVmES (Continued) FOR THE YEAR ENDED SEPTEMBER 30, 2015 With Comparative Totals for 2014 Temporarily Unrestricted

2014 Totals

2015 Totals

Restricted

EXPENSES AND LOSSES PROGRAM SERVICES

Public Exhibits Educational Auxiliary Services Indirect Program Services

$

2,304,804 89,705 545,539 576,621

$

-

$

2,304,804 89,705 545,539 576,621

$

1,990,884 90,225 515,261 495,651

SUPPORT SERVICES

Management and General Fundraising Total Operating Expenses INCOME (LOSS) PRIOR TO OTHER GAINS AND LOSSES

625,732 191,972

625,732 191,972

570,177 189,421

4,334,373

4,334,373

3,851,619

199,291

(122,578)

76,713

56,406

(16,293) (78,693)

(8,190) (8,481) 9,325 (38,807)

(24,483) (87,174) 9,325 (41,553) (12,713)

(27,769) 75,735 10,634 108,796 (3,852)

(110,445)

(46,153)

(156,598)

163,544

88,846

(168,731)

(79,885)

219,950

OTHER GAINS AND LOSSES

Investment Expense Realized Gain (Loss) on Investments Endowment Earnings Unrealized Gain (Loss) on Investments (Gain) Loss on Disposal of Assets

(2,746) (12,713)

Total Other Gains and Losses CHANGE IN NET ASSETS NET ASSETS, BEGINNING OF YEAR NET ASSETS, END OF YEAR

3,916,096

$

4,004,942

5,168,449

1,252,353

$

1,083,622

$

5,088,564

4,948,499

$

5,168,449

The accompanying notes are an integral part of these financial statements.

6

SAFARI GAME SEARCH FOUNDATION DBA WILDLIFE SAFARI STATEMENT OF FUNCTIONAL EXPENSES

FOR THE YEAR ENDED SEPTEMBER 30, 2015

With Comparative Totals for 2014

Program Services Public Exhibits

Salaries & Wages Other Personnel Costs Contracts & Services Advertising & Marketing Advertising & Marketing (Non-Cash) Office Expenses Operating Supplies Travel & Conferences Animal Expense Other Program Expense Feed Cups Conservation Gift Developments & Fundraising Special Events & Guest Encounter Expenses Vehicle, Equipment & Maint. Utilities Taxes & Insurance Small Equipment Purchases Depreciation Interest Expense Bad Debt & Credit Card & Other Fees Total Expenses

7

$

910,334 154,462 2,396 364,615 214,200 39,404 21,074 12,583 328,538 9,846

Education

$

61,503 12,968

$

485 716

5,000 110 20,044 48,721 63,408

$

285,378 32,875 144,745 12,015

$

263,993 53,491

3,373 1,368

1,083 (881) 10,511

124 499 8,669

17 16,990 14,507

805 143,690 57,928 365

15,005

40,442 12

89,705

$

545,539

Total Program Services

$

10,000 3,859 2,036

7,395 5,898

110,038 28 2

$ 2,304,804

Indirect Program Services

Auxiliary Services

~

576,621

The accompanying notes are an integral part of these financial statements.

1,521,207 253,796 147,141 377,115 224,200 51,374 29,008 12,583 332,994 10,334 10,511 5,000 110 20,991 209,900 144,513 365 165,485 40 2

$

3,516,669

Su~~ort Services

Management and General

Salaries & Wages Other Personnel Costs Contracts & Services Advertising & Marketing Advertising & Marketing (Non-Cash) Office Expenses Operating Supplies Travel & Conferences Animal Expense Other Program Expense Feed Cups Conservation Gift Developments & Fundraising Special Events & Guest Encounter Expenses Vehicle, Equipment & Maint. Utilities Taxes & Insurance Small Equipment Purchases Depreciation Interest Expense Bad Debt & Credit Card & Other Fees

Total Expenses

$

292,429 93,424 25,145 371 34,153 37 5,403 15,429 (1,902)

62,659 12,290 30,000 1,380 9,045 4,657 41 3,880 29,907 (14)

$

11,479 26,708 4,453 2,946 190

397 2,279 4,001 67,449 4,937 20,022 50,680

$

625,732

3,831

$

191,972

2014 Total Expenses

Ex~enses

Fundraising

$

2015 Total

1,876,296 359,510 202,286 378,866 233,245 90,184 29,086 21,866 378,329 8,418 10,511 16,479 26,818 25,842 215,124 148,704 67,814

$

1,697,503 306,515 188,321 332,487 150,960 71,991 74,109 29,309 333,046 3,763 20,807 6,450 22,335 26,387 152,442 133,486 74,857 1,050 160,465 21,884 43,452

$

3,851,619

174,253 20,062 50,682

$

4,334,373

8

SAFARI GAME SEARCH FOUNDATION DBA WILDLIFE SAFARI STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 2015 With Comparative Totals for 2014 2014

2015 CASH FLOWS FROM OPERATING ACTIVITIES Change in Net Assets Adjustments to Reconcile Increase in Net Assets to Net Cash

$

(79,885)

$

219,950

Provided by (Used in) Operating Activities: Contributed Vehicles, Equipment, and Investments Depreciation

(46,426) 174,253

(96,860) 160,465 1,481

12,713 2,746 78,694

3,852 (46,711) (55,491)

259 (1,094) (9,518) (3,218) (50,000) (1,252) 88,298

12,554 971 14,956 (18,860) 10,000 (43,278)

8,744 (1,121)

13,353 11,065

7,824 1,722

(3,382) 2,685

Bad Debt Expense Forgiveness of Debt Income (Gain) Loss on Disposal of Property Unrealized Net (Gain) Loss on Investments Realized Net (Gain) Loss on Sales of Investments (Increase) Decrease in: Accounts Receivable Employee Receivables Prepaid Expenses Inventories Grants and Pledges Receivable Deferred Payment - Social Media Interest in Assets Held by OCF Increase (Decrease): Accounts Payable Payroll and Other Accrued Expenses Accrued Interest Payable Compensated Absences Payable Other

182,739

186,750

(399,554)

(246,619)

432,912

6,628 112,099

33,358

(127,892)

(224,072) {52,846)

148,935 {46,551)

{276,918)

102,384

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

(60,821)

161,242

CASH AND CASH EQUIVALENTS, Beginning

310,863

149,621

Net Cash Provided By (Used In) Operating Activities

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Capital Assets Proceeds from the Sale of Property Net Cash from Sales (for Purchases) of Investments Net Cash Provided By (Used In) Investing Activities

CASH FLOWS FROM FINANCING ACTIVITIES Net Borrowings (Repayments) of: Secured Note Payable Long-Term Debt Net Cash Provided By (Used In) Financing Activities

CASH AND CASH EQUIVALENTS, Ending

$

250,042

$

310,863

The accompanying notes are an integral part of these financial statements.

9

SAFAR,I GAME SEARCH FOUNDATION DBA WILDLIFE SAFARI STATEMENT OF CASH FLOWS (Continued) FOR THE YEAR ENDED SEPTEMBER 30, 2015 With Comparative Totals for 2014 2014

2015 SUPPLEMENTAL CASH FLOW INFORMATION

Cash Paid During Year for Interest

$

20,065

$

21,670

SCHEDULE OF NON-CASH INVESTING AND FINANCING TRANSACTIONS

Purchase of Equipment through Long-Term Debt

$

28,430

$

10,000

Receipt of Donation of Equipment

$

41,112

$

63,000

Receipt of Donation of Marketable Securities

$

5,314

$

33,860

The accompanying notes are an integral part of these financial statements. 10

NOTES TO FINANCIAL STATEMENTS

SAFARI GAME SEARCH FOUNDATION

NOTES TO FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. NAlURE OF ACITVrnES Safari Game Search Foundation (the Foundation) is a non-profit foundation dedicated to education, research, rehabilitation of native wildlife, and the preservation and breeding of rare and endangered species. The Foundation owns and operates Wildlife Safari, a 600-acre preserve (the Park) located in Winston, Oregon that is accredited by the Association of Zoos and Aquariums. The Foundation also operates a gift shop and snack shop at the preserve site. B. BASIS OF ACCOUNTING The financial statements of the Foundation have been prepared on the accrual basis of accounting, whereby revenues are recognized when earned and expenditures are recognized when incurred.

C. FINANCIAL STATEMENT PRESENTATION Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Accounting Standards Codification 958 (formerly the Statement of Financial Accounting Standards No. 117, Financial Statements ofNot-far-Profit Organizations). The Foundation is required to report information regarding its net assets and revenues, expenses, gains, and losses, which are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets of the Foundation and changes therein are classified and reported as one of three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. A description of the three net asset categories follows: Unrestricted net assets

Net assets that are not subject to donor-imposed stipulations.

Temporarily restricted net assets Net assets subject to donor-imposed stipulations that mayor will be met, either by actions of the Foundation and/or the passage of time. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Permanently restricted net assets Net assets subject to donor-imposed restrictions that they be maintained permanently by the Foundation. No permanently restricted assets were held during the year ended September 30, 2015, and accordingly, these financial statements do not reflect any activity related to this class of assets.

11

SAFARI GAME SEARCH FOUNDATION

NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. CASH AND CASH EQUIVALENTS AND CASH HELD FOR INVESTMENT PURPOSES For purposes of the statement of cash flows, the Foundation considers all highly liquid, debt instruments purchased with an original maturity of three months or less to be cash equivalents. However, all cash and cash equivalents held in the Foundation's investment account with D.A. Davidson has been designated by the board of directors to be for investment purposes, and is excluded from cash and cash equivalents in the statement of cash flows. These assets are presented separately in the other assets section of the statement of financial position, as cash held for investment purposes. E. ALLOWANCE FOR DOUBTFUL ACCOUNTS AND ACCOUNTS PAST DUE The allowance method is used to provide for uncollectible accounts receivable. It is management's opinion that no material uncollectible amounts are included in accounts receivable, grants receivable, or pledges receivable. Therefore, no provision for doubtful accounts has been recorded in these financial statements. At September 30, 2015, the balance of accounts receivable past due ninety days or more was $0. F. GRANTS AND PLEDGES RECEIVABLE Grants receivable represent amounts that have been earned by the Foundation under existing grant agreements and for which purpose or timing restrictions have been met. Pledges receivable represent unconditional promises made by donors to give to the Foundation. Such amounts are recorded as contribution revenue at the time the unconditional promise is made, with an allowance made for estimated uncollectible amounts as considered necessary. The balance of pledges receivable at September 30, 2015 was $0. G. INVENTORIES Inventories consist primarily of gift shop articles. Inventories are stated at lower of cost or market and are expensed using the first-in, first-out method. H. LAND, BUILDINGS AND EQUIPMENT Donations of land, buildings and equipment are recorded as support at the asset's estimated fair value. Such donations are reported as unrestricted support unless the donor has restricted the donated asset to a speCific purpose. Assets donated with explicit restrictions regarding their use and contributions of cash that must be used to acquire property and eqUipment are reported as restricted support. Absent any donor stipulations regarding how long those donated assets must be maintained, the Foundation reports expirations of donor restrictions when the donated or acquired assets are placed in service as instructed by the donor. The Foundation reclassifies temporarily restricted net assets to unrestricted net assets at that time. Purchased land, buildings and equipment are stated at cost, and contributed assets are stated at fair value. The Foundation's policy is to capitalize land, building and equipment additions which exceed $1,000 individually, and which have an estimated useful life of over one year.

12

SAFARI GAME SEARCH FOUNDATION

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) H. LAND, BUILDINGS AND EOUIPMENT (Continued) Expenditures for maintenance, repairs and minor renewals are charged to expense as incurred; major betterments and renewals are capitalized. Upon retirement or sale, the cost of the asset and accumulated depreciation are removed from the accounts and resulting gains or losses are recognized in the statement of activities. Land improvements, buildings and equipment are depreciated using the straight-line method over various lives which range from 3 to 40 years. The amount of depreciation and amortization expense recognized during 2015 was $174,253.

1. DONATED SERVICES AND MATERIALS The Foundation recognizes as revenues in the period received the fair value of donated services requiring specialized skills that are provided by individuals possessing those skills, and that would be purchased if not provided by donation, The Foundation determines the fair value of donated services based on pay scales for comparable paid services. Donated services and materials with a fair value of $244,661 have been received throughout the Foundation's programs and have been recognized as revenue in 2015, The Foundation also receives a significant amount of donated services from unpaid volunteers who assist in a variety of activities. The value of donated volunteer services is not reflected in the accompanying financial statements since the volunteers' time does not meet the criteria necessary for recognition. Volunteer services donated for the year ended September 30, 2015 totaled approximately 24,617 hours, J. INCOME TAX STATUS Under Section 501(c)(3) of the Internal Revenue Code, The Foundation is exempt from taxes on income other than unrelated business income. The Foundation had no unrelated business income during the year ended September 30, 2015, and accordingly, no provision for income taxes has been made. The informational federal Form 990 is filed annually along with an annual state filing required by the Oregon Department of Justice. The Foundation's management is not aware of any uncertain tax positions which could affect their tax-exempt status or lead to a change in their tax liabilities. At September 30, 2015, the federal and state returns for the tax years 2011 through 2014 remained open to examination. K. COMPLIMENTARY TICKET REVENUE Complimentary tickets are distributed by the Foundation to promote attendance and public relations. The tickets are recorded as revenue when redeemed and are offset by recording a corresponding amount for advertising expense. L. ADVERTISING COSTS Advertising costs are expensed as incurred and totaled $612,111 in 2015. This total included in­ kind donations of radiO, television, and billboard advertising valued at $233,245 and the donation of complementary admission tickets valued at $34,846. These in-kind expenses are reported as public exhibits expenses in the statement of functional expenses.

13

SAFARI GAME SEARCH FOUNDATION

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) M. ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures 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. N. COMPARATIVE FINANCIAL INFORMATION The financial statements include certain prior-year summarized comparative information. Such information is presented for comparative purposes only, and does not include sufficient detail to constitute a complete presentation in conformity with certain generally accepted accounting principles relating specifically to nonprofit organizations. Accordingly, such information should be read in conjunction with the Foundation's financial statements for the year ended September 30, 2014, from which the summarized information was derived. O. INVESTMENTS The Foundation's investments at September 30, 2015 consist of stocks and bonds recorded at fair value based on publicly traded security values. These investments are bought and held principally for the purpose of selling them in the near term classifying them as trading securities, with the change in fair value during the period included in earnings. Generally, for all trading securities, fair value is determined by reference to quoted market prices and other relevant information generated by market transactions.

NOTE 2 - CASH AND CASH EQUIVALENTS Cash and cash equivalents consisted of the following at September 30, 2015: Petty Cash Cash on Hand Undeposited Funds Checking Accounts & Demand Deposits

$

1,850 10,000 2,134 236,058

$ 250.042

NOTE 3 - INVENTORIES Inventories consisted of the following at September 30, 2015: Gift Shop - Retail Goods Veterinary Clinic Medicines & Supplies Employee Uniforms Animal Feed - Hay Inventory Restaurant Snack Shack

$ 102,718 36,068 5,715 51,505 4,404 1,093 $ 201.503 14

SAFARI GAME SEARCH FOUNDATION

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

NOTE 4 - LAND. BUILDINGS AND EQUIPMENT Activity related to the land, buildings and equipment and accumulated depreciation accounts consisted of the following for the year ended September 30, 2015: Land & Improvements Buildings Furniture & Equipment North American Expansion Vehicles Construction in Progress Total Assets Less: Accumulated Depreciation

$ 1,798,729 3,088,211 612,183 393,739 293,085 89,199 6,275,146 (3,807,566)

Property and Equipment, Net

$ 2.467,580

NOTE 5 - INTEREST IN ASSETS HELD BY OREGON COMMUNITY FOUNDATION In 2000, the Foundation transferred restricted assets composed of investments to the Oregon Community Foundation ("OCF"), an Oregon nonprofit corporation, in order to establish the Valpiani Cheetah Endowment Fund for the benefit of the Foundation. These assets are restricted in purpose for the Foundation's cheetah programs. Under the Valpiani Endowment trust agreement, OCF shall distribute at least annually an appropriate percentage of the fair market value of the endowments to the Foundation, The percentage distributed shall not be less than a reasonable rate of return. The fair market value of the Foundation's interest in assets held by OCF for the Valpiani Cheetah Endowment Fund totaled $39,298 as of September 30, 2015. The following is a summary of the Valpiani investment account activity: Beginning Balance Grants Approved & Distributed Realized Gains Realized Losses Unrealized Gains/Losses Investment Earnings Investment Expenses Ending Balance

$ 43,331 (2,036) 372 (736) (1,682) 404 (355) $ 39.298

A second endowment fund was created in August 2006, upon the death of Mr. Leonard Goodwin, the sole-surviving grantor of a charitable remainder trust. At that time, the trust terminated and the investments held by OCF were revalued from the net present value of the estimated future benefits to be received at the time of the grantors death to its fair market value as of September 30, 2006. These assets were transferred by the OCF from the Goodwin Charitable Trust into the Leonard and Vivian Goodwin Endowment Fund for the Safari Game Search Foundation. 15

SAFARI GAME SEARCH FOUNDATION

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

NOTE 5 - INTEREST IN ASSETS HELD BY OREGON COMMUNITY FOUNDATION (Continued) The fair market value of the Foundation's interest in assets held by OCF for the Leonard K. and Vivian

Goodwin Endowment Fund totaled $870,728 as of September 30, 2015. The following is a summary

of the Goodwin investment account activity: Beginning Balance Grants Approved & Distributed Realized Gains Realized Losses Unrealized Gains/Losses Investment Earnings Investment Expenses Ending Balance

$ 954,993 (40,110) 8,195 (16,311) (37,124) 8,921 (7,836) $ 870,728

Under the Goodwin Endowment trust agreement, OCF shall distribute at least annually an appropriate percentage of the fair market value of the endowments to the Foundation as needed or desired to further the Foundation's objectives and purposes. The percentage distributed shall not be less than a reasonable rate of return (currently calculated as 4.5% per annum of the Endowment's total assets held by OCF). The Foundation can elect to receive a distribution or can defer receiving the distributions and elect to re-invest the amounts into the Endowment. The distributions may occur semi-annually in June and December. Additional extraordinary distributions from the Endowment are allowed, but subject to the approval of the OCF's board of directors. The investment income and realized and unrealized gains and losses from these endowments are presented as changes in restricted net assets on the Foundation's statement of activities. As trustee of the two endowment funds, OCF may co-mingle the assets held for the Foundation for investment purposes into pooled investment accounts.

NOTE 6 - ANIMALS ON EXHIBIT Animals on exhibit represent breeding herds of various species. These animals were capitalized at appraised cost when the Foundation purchased the collection in January 1981. The balance of this account also includes those animals purchased during 1988 and 1989 to populate the North American expansion. For all other animal transactions, acquisitions have been recognized as a current expense to be netted against proceeds from the sale of animals. Generally accepted accounting principles require that collections be capitalized in their entirety. The amount required to be recorded in order to capitalize the collection has not been determined. In view of the impracticality of placing a value on recurring animal births and deaths, no value is placed on these additions or deletions to the animal collections. The cost or contributed value of animals acquired, other than those acquired for the North American expansion, is netted against proceeds from sales. During the year ended September 30, 2015, there was $61,765 spent on transportation costs for the acquisitions of animals and no proceeds from the sale of animals.

16

SAFARI GAME SEARCH FOUNDATION

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

NOTE 7 - UNRESTRICTED NET ASSETS

The Foundation's unrestricted net assets as of September 30, 2015 consisted of the following: Unrestricted Net Assets: Net book value of fixed assets

$ 2,467,580 1.537,362

Unrestricted - undesignated

$ 4,004,942

Total Unrestricted Net Assets NOTE 8 - TEMPORARILY RESTRICTED NET ASSETS

The Foundation's temporarily restricted net assets as of September 30, 2015 consisted of the following:

Funds restricted for Use in: Educational programs and events Road Improvements Rhino Building & Exhibit Zoo Animal Hospital Equipment Cheetah Fence Conservation Fair Value of Interest in Assets Held by

Oregon Community Foundation:

Valpiani Cheetah Endowment Fund Leonard and Vivian Goodwin Endowment Fund for Safari Game Search Foundation Total available for use in periods after September 30, 2015

$

8,070 20,000 29,941 98,650 609 16,326 39,298 870,728 $ 1.083,622

NOTE 9 - SECURED NOTE PAYABLE

In July 2009, the Foundation established an investment account and a line of credit with the investment firm D.A. Davidson & Co. The note payable on the line of credit is secured by cash, cash equivalents and other investments held by D.A. Davidson & Co. in the Foundation's investment accounts. Borrowings on the line of credit accrue interest at a rate of 2.75% per annum in effect at September 30, 2015. The available balance on the line of credit can be no greater than specified percentages of the totals of the Foundation's investment portfolio categories, with the percentages varying based on the type of investments. Based on these criteria, the maximum borrowing capacity on the line of credit at September 30, 2015 was approximately $1,001,175. At September 30, 2015, the balance of the secured note was $26,069.

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SAFARI GAME SEARCH FOUNDATION

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

NOTE 10 - LONG-TERM DEBT

The long-term debt obligations of the Foundation consisted of the following at September 30, 2015: Mortgage payable to Douglas County Industrial Development Board, payable in monthly installments of $2,600 during the summer and $1,525 in winter, payable in full March 2021; secured by a 2nd deed of trust on real property located in Douglas County, Oregon

$ 251,363

Note payable to CCD Business Development Corporation, payable in nine monthly installments per year of $3,048, including interest at 1% plus prime, currently 5%; payable in full May 2016; secured by inventory, equipment, furniture and 3rd deed of trust (pro-rata with Oregon Economic and Community Development Commission) on real property located in Douglas County, Oregon

9,133

Note payable to Kubota Corp, payable in monthly installments of $208, 0% interest, payable in full April 2018, secured by Kubota RlV

6,458

Note payable to Kubota Corp, payable in monthly installments of $313, 0% interest, payable in full October 2018, secured by Kubota RlV

11,563

Note payable to Kubota Corp, payable in monthly installments of $224, 0% interest, payable in full April 2020, secured by Kubota RlV

12,311

Total Long-term Debt Obligations

290,828

Less: Current Portion

(61,894)

Long-term Debt, Net of Current Portion

$

228,934

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SAFARI GAME SEARCH FOUNDATION

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

NOTE 10 - LONG-TERM DEBT (continued) The following represents the maturities of long-term debt and estimated related interest requirements at September 30, 2015: Year Ending September 30th ,

2016 2017 2018 2019 2020

Principal

61,894 58,136 57,094 52,198 50,768 10,738

$

130

$

290.828

$

130

Thereafter Totals

Interest

$

Total

$62,024 58,136 57,094 52,198 50,768 10,738 $

290.958

During the year ended September 30, 2015, the Foundation incurred interest expense of $20,065.

NOTE 11- EMPLOYEE BENEFIT PLAN The Foundation has established a SIMPLE IRA plan as of April 1, 2014 which covers all employees who earn more than $5,000 during the year. The Foundation matched 100% of the employee's contribution, up to 2% of the employee's compensation. Beginning April 1, 2015, the Foundation increased its contribution and now matches 100% of the employee's contribution, up to 3% of the employee's compensation. The Foundation's contribution to the plan for 2015 was $17,882.

NOTE 12 - RELATED PARTY TRANSACTIONS During the year ended September 30, 2015, the Foundation purchased goods and services from many local and regional bUSinesses, which are either partially or wholly-owned by certain members of the Foundation's Board of Directors or Trustees. The total amount of these transactions was not determined. Many of these same directors or trustees and the related businesses also donated or discounted goods and services provided to the Foundation on a recurring basis throughout the year.

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SAFARI GAME SEARCH FOUNDATION

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

NOTE 13 - PURCHASE COMMITMENTS

On September 28, 2012, the Foundation entered into a purchase commitment with Heska Corporation to purchase a minimum of $4,000 per year in veterinary supplies for the next five years in exchange for free use of a veterinary chemistry analyzer. Purchases under this purchase agreement totaled $10,790 during the year ended September 30, 2015. During the term of the agreement, the equipment shall remain the property of Heska Corporation. If the Foundation meets this minimum purchase agreement, then the Foundation has the option to purchase the equipment at the end of the five-year term for $2,500 or renew the agreement on an annual basis. At September 30, 2015, the Foundation had $28,336 remaining to be paid to Lome Merrifield Construction for the completion of construction contract for a Rhino exhibit. NOTE 14 - SUBSEQUENT EVENTS

In preparing these financial statements, the Foundation's management has evaluated subsequent events and transactions for potential recognition or disclosure through February 22, 2016, which represents the date that the financial statements were available for issuance.

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