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Audubon Nature Institute, Inc.and Audubon Nature InstituteFoundationConsolidated Financial Statements andAdditional Information as of and for theYear Ended December 31, 2007, andIndependent Auditors' Report
jnder provisions of state law, this report is a publicdocumant. Acopy of the report has been submitted tothe entity and other appropriate public officials. TheDeport is available for public inspection at the BatonRouge office of the Legislative Auditor and, whereappropriate, at the office of the parish clerk of court.
Release Date Iki.
AUDUBON NATURE INSTITUTE, INC. ANDAUDUBON NATURE INSTITUTE FOUNDATION
TABLE OF CONTENTS
Page
INDEPENDENT AUDITORS' REPORT 1
CONSOLIDATED FINANCIAL STATEMENTS AS OF ANDFOR THE YEAR ENDED DECEMBER 31, 2007:
Statement of Financial Position 2
Statement of Activities 3
Statement of Cash Flows 4
Notes to Consolidated Financial Statements 5-11
ADDITIONAL CONSOLIDATING INFORMATION AS OF ANDFOR THE YEAR ENDED DECEMBER 31, 2007: 12
Independent Auditors' Report on Additional Consolidating Information 13
Consolidating Schedule — Statement of Financial Position Information 14
Consolidating Schedule — Statement of Activities Information 15
INDEPENDENT AUDITORS* REPORT ON INTERNAL CONTROLOVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHERMATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTSPERFORMED IN ACCORDANCE WITH GOVERNMENT A UDITING STANDARDS 16
Deloitte Deloitte & Touche LLPSuite 4200701 Poydras StreetNew Orleans, LA 70139-4200USA
Tel: +1 504 581 2727Fax: +1 504 561 7293www.deloitte.com
INDEPENDENT AUDITORS' REPORT
To the Board of Directors ofAudubon Nature Institute, Inc.:
We have audited the accompanying consolidated statement of financial position of Audubon NatureInstitute, Inc. and Audubon Nature Institute Foundation (the "Institute"), as of December 31, 2007, andthe related consolidated statements of activities and cash flows for the year then ended. These financialstatements are the responsibility of the Institute's management. Our responsibility is to express an opinionon these financial statements based on our audit. The prior years summarized comparative informationhas been derived from the Institute's December 31, 2006, consolidated financial statements and, in ourreport dated May 21, 2007, we expressed an unqualified opinion on those consolidated financialstatements.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Audi ting Standards,issued by the Comptroller General of the United States. Those standards require that we plan and performthe audit to obtain reasonable assurance about whether the financial statements are free of materialmisstatement. An audit includes consideration of internal control over financial reporting as a basis fordesigning procedures that are appropriate in the circumstances, but not for the purpose of expressing anopinion on the effectiveness of the Institute's internal control over financial reporting. Accordingly, weexpress no such opinion. An audit also includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements, assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all materialrespects, the financial position of the Institute as of December 31, 2007, and the changes in its net assetsand cash flows for the year then ended in conformity with accounting principles generally accepted in theUnited States of America.
In accordance with Government Auditing Standards, we have also issued our report dated May 23, 2008on our consideration of the Institute' s internal control over financial reporting and on our tests of itscompliance with certain provision of laws, regulations, contracts, and grant agreements and other matters.The purpose of that report is to describe the scope of our testing of internal control over financialreporting and compliance and the results of that testing, and not to provide an opinion on the internalcontrol over financial reporting or on compliance. That report is an integral part of an audit performed inaccordance with Government Auditing Standards and should be considered in assessing the results of ouraudit.
May 23, 2008
Member ofDeloitte Touche Tohmatsu
AUDUBON NATURE INSTITUTE, INC. AND
AUDUBON NATURE INSTITUTE FOUNDATION
CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAS OF DECEMBER 31, 2007 , WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2006
ASSETS
CASH AND CASH EQUIVALENTS
ACCOUNTS AND GRANTS RECEIVABLE
INVESTMENTS
PLEDGES RECEIVABLE
DUE FROM AUDUBON COMMISSION
PREPAIDS AND OTHER ASSETS
EQUIPMENT LESS ACCUMULATED DEPRECIATION OF$83,094 AND $186,227 AT 2007 AND 2006, RESPECTIVELY
RESTRICTED ASSETS — LPFA bonds
TOTAL
LIABILITIES AND NET ASSETS
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
ACCRUED COMPENSATION
LINES OF CREDIT
TERM LOANS
LPFA BONDS
Total liabilities
NET ASSETS:Unrestricted — including Board designatedTemporarily restrictedPermanently restricted
Total net assets
TOTAL
See notes to consolidated financial statements.
2007
50,349
33,335
138,404
3,663,527
1,835,000
6,712,507
2006
$ 2,541,947 $ 5,524,691
917,143 1,364,214
32,051,139 30,118,885
3,247,566
9,538,889
3,153,161
8,009,049
35,337
8,045
139,883
$48,518,772 $48,353,265
$ 166,709 $ 119,822
1,047,271 522,904
2,400,000
4,290,670
2,040,000
9,373,396
16,756,969 15,392,6187,906,115 6,567,016
17,143,181 17,020,235
41,806,265 38,979,869
$48,518,772 $48,353,265
- 2 -
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AUDUBON NATURE INSTITUTE, INC. ANDAUDUBON NATURE INSTITUTE FOUNDATION
CONSOLIDATED STATEMENT OF CASH FLOWSFOR THE YEAR ENDED DECEMBER 31, 2007, WITH COMPARATIVE TOTALSFOR DECEMBER 31, 2006
2007 2006
CASH FLOWS FROM OPERATING ACTIVITIES:Change in net assets for the yearAdjustments to reconcile change in net assets to cash
provided by operations:Realized gains on investmentsUnrealized gains on investmentsReceipt of stock giftsImputed interest on pledgesNew pledges recordedDepreciationPledge paymentsAccounts and grants receivable, due from Audubon Commission,
and other assetsAccounts payable and other liabilities
Net cash provided by operating activities
CASH FLOWS FROM INVESTING ACTIVITIES:Proceeds from sales or maturities of investmentsPurchases of investmentsProperty (additions) disposalsRestricted assets — net
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:Repayments under lines of creditRepayments under term loanIssuance of the Packard Foundation LoanRepayment of bonds
Net cash (used in) provided by financing activities
NET (DECREASE) INCREASE IN CASHAND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS — Beginning of year
CASH AND CASH EQUIVALENTS — End of year
$ 2,826,396 $ 4,903,597
(6,546)(1,126,773)
(71,824)(49,172)
(1,452,526)6,000
1,407,294
(1,097,780)571,250
1,006,319
444,878(1,171,987)
(31,290)1,479
(756,920)
(2,400,000)(627,143)
(205,000)
(3,232,143)
(2,982,744)
5,524,691
$ 2,541,947
(6,226)(3,708,908)(40,820)(113,226)(317,502)12,543
1,731,648
235,078362,562
3,058,746
520,503(918,474)
3,790(5,351)
(399,532)
(300,000)(597,379)3,000,000(205,000)
1,897,621
4,556,835
967,856
$ 5,524,691
See notes to consolidated financial statements.
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AUDUBON NATURE INSTITUTE, INC. ANDAUDUBON NATURE INSTITUTE FOUNDATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTSAS OF AND FOR THE YEAR ENDED DECEMBER 31, 2007
1. DESCRIPTION OF THE ORGANIZATION
Audubon Nature Institute, Inc. is a nonprofit organization incorporated October 31, 1975. The AudubonNature Institute, Inc. is exempt from income tax under Section 501(c)(3) of the United States InternalRevenue Code. The Audubon Nature Institute, Inc. manages and operates the Audubon Commission (the"Commission") facilities located at the Audubon Zoo and Park, the Aquarium and Riverfront Park, theSpecies Survival Center, the Louisiana Nature Center, and the Audubon Insectarium currently underconstruction (the "Facilities") under a contractual management agreement. Facility revenues andexpenses (including salary expense) are recorded by each facility in accordance with this managementagreement. The Facilities had combined operating revenues of approximately $29,310,000 for the yearended December 31, 2007, and combined total assets of approximately $164,670,000 at December 31,2007.
Audubon Nature Institute Foundation (the "Foundation"), is a separate nonprofit organization exemptfrom income tax under Section 501(c)(3) of the United States Internal Revenue Code and wasincorporated February 8, 1991. Its mission is to raise funds to support the education programs and otheractivities managed by the Audubon Nature Institute, Inc. but the Foundation remains a separate legalentity. Since the Audubon Nature Institute, Inc. and the Foundation (collectively referred to herein as theInstitute) are related through common mission, board representation and common management, theaccompanying consolidated financial statements include the accounts of the Audubon NatureInstitute, Inc. and Foundation. The consolidated entity is referred to herein as the "Institute".
The Institute obtains donations, gifts and grants, and conducts fundraising activities in furtherance of itsexempt purpose. The revenues and net assets reflected in these financial statements are the result ofthese activities. Specific grants to the Audubon Commission consist of donations received and grantsobtained by the Audubon Nature Institute, Inc. for operating support and capital improvements of theFacilities discussed above.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation —The fiscal 2007 financial statements presentation follows the requirements ofthe Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS)No. 117, Financial Statements for Not-for-Profit Organizations. Under SFAS No. 117, the Institutereports information regarding its financial position and activities according to three classes of net assets:
Unrestricted — Net assets which are free of donor-imposed restrictions; all revenues, expenses, gains,and losses that are not changes in permanently or temporarily restricted net assets.
Temporarily Restricted — Net assets whose use by the Institute is limited by donor-imposed stipulationsthat either expire by passage of time or that can be fulfilled or removed by actions of the Institutepursuant to those stipulations such as completion of construction projects. In most cases, such actionsrequire the expenditure of personnel effort or other costs before such assets can be released.
- 5 -
Permanently Restricted — Net assets whose use by the Institute is limited by donor-imposed stipulationsthat neither expire with the passage of time nor can be fulfilled or otherwise removed by actions of theInstitute.
The Institute reports gifts of cash and other assets as restricted support if they are received with donorimposed restrictions or requirements that limit the use of the donation. A donor restriction ends when atime restriction is met or a purpose restriction is accomplished. As restrictions are met, assets arereclassified to unrestricted net assets or permanently restricted net assets. The permanently restrictedclassification is also referred to as an endowment fund. Earnings from these assets are periodicallytransferred to the Commission's operating fund.
The consolidated financial statements include certain prior-year summarized comparative information ofthe Institute in total but not by net asset class. Such information does not include sufficient detail toconstitute a presentation in conformity with generally accepted accounting principles. Accordingly, suchinformation should be read in conjunction with the organization's financial statements for the year endedDecember 31, 2006, from which the summarized information was derived.
Use of Estimates — The preparation of financial statements in conformity with accounting principlesgenerally accepted in the United States of America requires management to make estimates andassumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assetsand liabilities at the date of the financial statements and the reported amounts of revenues and expensesduring the reporting period. Actual results could differ from those estimates.
Investments — Investments are carried at fair value which was determined by reference to marketinformation and published sources. At December 31, 2007 and 2006, investments consist of thefollowing:
Audubon Nature Institute Investments
Marketable equity securities
2007 2006
$1,049,596 $531,051
Foundation Investments
Marketable equity securitiesAlternative investmentsMoney market accounts and investment cash
Total investments
2007
$25,546,3545,415,372
39,817
2006
$24,773,5054,782,187
32,142
$31,001,543 $29,587,834
Alternative Investments — Alternative investments include private equity funds and hedge fundsstructured as limited liability corporations or partnerships or trusts. These funds invest in certain types offinancial instruments, including, among others, futures and forward contracts, options, and securitiessold not yet purchased, intended to hedge against changes in the market value of investments. Thesefinancial instruments, which involve varying degrees of off-balance-sheet risk, may result in loss due tochanges in the market (market risk). These investments without readily marketable fair values areaccounted for under the equity method, which approximates fair value.
-6 -
Investment income of the Institute is comprised of the following:
2007 2006
Dividend and interest income $ 702,181 $ 451,420Realized and unrealized gains on securities — net 1,133,319 3,715,134
Total investments $1,835,500 $4,166,554
Board designated assets are unrestricted funds that are invested on a pooled basis with permanentlyrestricted assets in accordance with Board approved plans. These funds are collectively invested as theFoundation's endowment fund. Board designated net assets totaled approximately $14,740,000 and$13,542,000 as of December 31, 2007 and 2006, respectively.
Pledges Receivable and Contributions Received — The Institute recognizes contributions received asrevenue in the period received and as assets, decreases in liabilities or expenses depending on the formof benefits received. Pledges receivable are recorded net of an allowance for uncollectible pledges and atnet present value. A discount factor of 3.1% is applied to scheduled future pledge payments.
Equipment — Equipment is capitalized at cost and depreciated using the straight-line method over aperiod of five to ten years.
Statement of Cash Flows — For purposes of reporting cash flows, the Institute considers allinvestments and other short-term instruments with an original maturity of ninety days or less to be cashequivalents.
New Accounting Pronouncements — In July 2006, the Financial Accounting Standards Board (FASB)issued FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes — an interpretation ofFASB Statement No. 109 ("FIN 48"), which clarifies the accounting and disclosure for uncertain taxpositions, as defined. FIN 48 seeks to reduce the diversity in practice associated with certain aspects ofthe recognition and measurement related to accounting for income taxes. The Institute is required toadopt the provisions of FIN 48 during 2008. The Institute has not yet determined the impact that theadoption of FIN 48 will have on its consolidated financial statements.
In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements ("SFAS No. 157"),which defines fair value, establishes a framework for measuring fair value in generally acceptedaccounting principles and expands disclosures about fair value measurements. This Statement iseffective for financial statements issued for fiscal years beginning after November 15, 2007. TheInstitute has not yet determined the impact that the adoption of SFAS No. 157 will have on itsconsolidated financial statements.
In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets andFinancial Liabilities, including an amendment of FASB Statements No. 115 ("SFAS No. 159"). SFASNo. 159 permits the Institute to choose, at specified election dates, to measure eligible items at fair value(the "fair value option"). The Institute would report unrealized gains and losses on items for which thefair value option has been elected in earnings at each subsequent reporting period. This accountingstandard is effective as of January 1, 2008. The Institute has not yet determined the impact that theadoption of SFAS No. 159 will have on its consolidated financial statements.
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3. PLEDGES RECEIVABLE
Unconditional promises of donors to make contributions to the Institute are included in the financialstatements as pledges receivable and revenue of the temporarily restricted net asset class. Pledges arerecorded after discounting future cash flows to the present value. Pledges receivable for the years endedDecember 31, 2007 and 2006, are expected to be realized as follows:
2007 2006
In one year or less $ 1,668,246 $ 1,676,908Between one and five years 1,712,502 1,658,606
3,380,748 3,335,514
Less discount and allowance for uncollectible pledges (133,182) (182,353)
Pledges receivable $3,247,566 $3,153,161
Pledges receivable for the years ended December 31, 2007 and 2006, have restrictions as follows:
2007 2006
Specific capital projects $ 1,272,857 $ 1,613,296Educational programs 5,000Other — general capital and operating support 1,974,709 1,534,865
Total pledges receivables $3,247,566 $3,153,161
4. TEMPORARILY RESTRICTED NET ASSETS
Temporarily restricted net assets as of December 31, 2007 and 2006, are available for purposes orperiods as follows:
2007 2006
Pledges and grants receivable for periods after year-end $ 4,134,609 $ 3,211,003Capital projects at Audubon Zoo, Park, Insectarium, andAquarium of the Americas 1,584,697 1,817,258
Education programs at the Zoo, Aquarium, and Nature Center 379,530 310,571Operating support for the Insectarium 1,000,000Operating support for the Zoo 807,279 508,380Operating support for Survival Center and Audubon Center
for Research of Endangered Species 719,804
Total temporarily restricted net assets $7,906,115 $6,567,016
5. PERMANENTLY RESTRICTED NET ASSETS
Permanently restricted net assets as of December 31, 2007 and 2006, must be invested in perpetuity, butthe income from these investments is available to support the following:
Permanently Restricted IncomeNet Assets Transferred to
2007 2006 2007 2006
Aquarium of the Americasand Riverfront Park $ 5,324,884 $ 5,305,598 $ 41,052 $ -
Survival Center/Research Center 8,411,081 8,411,081 35,046Audubon Zoo and Park 2,092,474 2,068,359 54,102 44,445Louisiana Nature Center 1,314,742 1,235,197 3,647
Total $17,143,181 $17,020,235 $133,847 $44,445
6. RELATED-PARTY TRANSACTIONS
The Audubon Nature Institute, Inc. and the Commission are related through interaction of their Boardsof Directors and the contractual management agreement under which the Institute manages and operatesCommission facilities. As a result, these entities often engage in operations through one organizationthat benefits the other organization to achieve economies of scale. One example of this is the use ofcommon or central bank accounts. At December 31, 2007 and 2006, the Institute's receivables from andpayables to the Commission are summarized as follows:
2007 2006
Due from Audubon Commission $9,538,889 $8,009,049
Specific gifts and grants provided by the Audubon Nature Institute, Inc. to Commission facilities to payoperating expenses and fund certain capital projects for the years ended December 31, 2007 and 2006,are summarized as follows:
2007 2006
Audubon Zoo and Park $ 868,040 $ 894,775Aquarium of the Americas and Riverfront Park 479,711 749,849Survival Center/Research Center 1,411,201 2,227,444Insectarium 46,459
Total $2,758,952 $3,918,527
7. EMPLOYEE BENEFIT PLANS
The Audubon Nature Institute, Inc. has established a tax-deferred annuity plan for the benefit of all full-time employees. The plan provides for the purchase of annuities which qualify for tax deferral.Employees may participate on an optional basis by contributing between 2% and 15% of their salary, notto exceed limits established by the Internal Revenue Service. The Audubon Nature Institute, Inc.matches employee contributions up to 3% of base salary. Contributions are not subject to Federalincome taxes and accumulate on a tax-deferred basis until withdrawn. The Audubon NatureInstitute, Inc.'s contributions amounted to approximately $5,775 and $2,651 for 2007 and 2006,respectively.
The Audubon Nature Institute, Inc. also has a discretionary 457(f) Executive Retirement Plan for threeof its officers. The plan provides additional compensation based on years of service and estimated pay atretirement. Total contributions for 2007 and 2006 amounted to approximately $448,000 and $249,000,respectively. The liability related to the plan totaled approximately $1,038,000 and $517,000 atDecember 31, 2007 and 2006, respectively and is recorded in accrued compensation in theaccompanying financial statements.
8. BANK LINES OF CREDIT
The Audubon Nature Institute, Inc. has unsecured revolving lines of credit with three commercial banks.One line of credit is for $2,000,000 and the other two are for $1,000,000 each. Standby letters of credittotal $2,323,237. The $2,000,000 line of credit bears interest at the prime rate minus 1.25% (6.25% atDecember 31, 2007), and it expired January 31, 2008 and was renewed. The $ 1,000,000 lines of creditbear interest at the 30 day LIBOR plus 150 basis points (6.74% at December 31, 2007), and these linesof credit expire in 2008 at which time renewal of the lines will be sought. The Institute does not believethere are any conditions that would change its ability to renew the notes. The Institute had $2,400,000outstanding under these revolving lines at December 31, 2006. No amounts were outstanding on thelines at December 31, 2007.
9. TERM LOANS AND LPFA BONDS
Term loans at December 31, 2007 and 2006 are comprised of the following:
2007 2006
Commercial bank term loan of $3,000,000, unsecured,bears interest at fixed rate of 4.8%, due in monthlyinstallments of $52,262 through December 2008 $ 663,527 $ 1,290,670
Packard Foundation loan of $3,000,000, unsecured, bearsinterest at fixed rate of 2%, interest due annually, principaldue annually beginning in May 2008 through May 2010 3,000,000 3,000,000
Term loans $3,663,527 $4,290,670
In May 2006, Audubon Nature Institute, Inc. entered into a program related investment (PRI) agreementwith The David and Lucille Packard Foundation for $3,000,000. Under this arrangement, proceeds fromthe PRI are to be used to rebuild, reopen, and re-market the Audubon Facilities.
The Audubon Nature Institute, Inc. borrowed $3,060,000 under an Equipment and Capital FacilitiesPooled Loan Program in connection with Revenue Bonds Series 200IB issued by the Louisiana PublicFacilities Authority (LPFA). Under this arrangement, proceeds from the note were deposited into aseparate project capital fund maintained on behalf of the Institute by a trustee. The restricted funds werereleased to cover the cost of certain defined capital projects as such project costs were incurred. As ofDecember 31, 2007, approximately $3,060,000 of such funds had been disbursed to cover the cost ofcertain capital projects in process and no amounts remained available for expenditure. Monthly principalpayments of $17,000 plus interest (3.81% at December 31, 2007) are paid into a debt service fund underthe arrangement based on a 15-year amortization; however, bond and interest payments are made tobondholders semi-annually. Bonds are due December 2016. Amounts held in the escrow fund forpayment by the trustee are included in restricted assets at December 31, 2007 and 2006. The balancesoutstanding under the LPFA bonds were $1,835,000 and $2,040,000 at December 31, 2007 and 2006,respectively.
- 1 0 -
Future debt payments due under the above borrowings are as follows:
Years EndingDecember 31
2008 $1,617,5272009 1,204,0002010 1,454,0002011 204,0002012 204,000Thereafter 815,000
Total $5,498,527
10. OTHER TRUSTS
The Audubon Nature Institute, Inc. and the University of New Orleans (the "University") haveestablished four funded trusts to support four endowed chairs at the University. Under an affiliationagreement with the University, the chairholders will conduct research at Audubon Center for Researchof Endangered Species and discharge academic responsibilities at the University. These trusts werefunded by private donations totaling $2,400,000 and combined with $1,600,000 in matching funds fromthe Louisiana Trust Fund for Eminent Scholars. This funding set up four $1,000,000 chairs. The trustassets are not included as Audubon Nature Institute assets. Audubon and the University jointly benefitfrom trust distributions that fund the chairholders' research and academic responsibilities. AtDecember 31, 2007, senior scientists occupied four chairs of the Audubon Center for Research ofEndangered Species.
11. CONTINGENCIES
Certain claims and suits have been filed against the Institute. The majority of these claims are coveredby insurance and, based on all available information and consultation with the Institute's legal counsel,management does not believe the ultimate resolution of these matters will have a significant effect onthe Institute's financial position, results of operations, or cash flows.
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ADDITIONAL CONSOLIDATING INFORMATION
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Deloitte Deloitte & louche LLPSuite 4200701 Poydras StreetNew Orleans, LA 70139-4200USA
Tel: +1 504581 2727Fax; +1 504 561 7293www.deloitte.com
INDEPENDENT AUDITORS' REPORT ON ADDITIONAL CONSOLIDATINGINFORMATION
To the Board of Directors ofAudubon Nature Institute, Inc.:
Our audit was conducted for the purpose of forming an opinion on the basic consolidated financialstatements taken as a whole. The additional consolidating information for 2007 is presented for thepurpose of additional analysis of the basic consolidating financial statements rather than to present thefinancial position and results of operations of the individual companies, and is not a required part of thebasic consolidated financial statements. The additional consolidating information is the responsibility ofthe Institute's management. Such information has been subjected to the auditing procedures applied in ouraudit of the basic 2007 consolidated financial statements and, in our opinion, is fairly stated in all materialrespects when considered in relation to the basic 2007 consolidated financial statements taken as a whole.
May 23, 2008
- 1 3 - Member ofDeloitte louche Tohmatsu
AUDUBON NATURE INSTITUTE, INC. ANDAUDUBON NATURE INSTITUTE FOUNDATION
CONSOLIDATING SCHEDULE — STATEMENT OF FINANCIAL POSITION INFORMATION
AS OF DECEMBER 31, 2007
Audubon AudubonNature Nature Institute
Institute Foundation TotalASSETS
CASH AND CASH EQUIVALENTS
ACCOUNTS AND GRANTS RECEIVABLE
INVESTMENTS
PLEDGES RECEIVABLE
DUE FROM AUDUBON COMMISSION
PREP AIDS AND OTHER ASSETS
EQUIPMENT LESS ACCUMULATED DEPRECIATIONOF $83,094
RESTRICTED ASSETS — LPFA bonds
TOTAL
2,541,947
917,143
1,051,609
2,897,566
9,001,497
50,349
33,335
138,404
30,999,530
350,000
537,392
$ 2,541,947
917,143
32,051,139
3,247,566
9,538,889
50,349
33,335
138,404
$16,631,850 $31,886,922 $48,518,772
LIABILITIES AND NET ASSETS
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
ACCRUED COMPENSATION
LINES OF CREDIT
TERM LOAN
LPFA BONDS
Total liabilities
NET ASSETS:Unrestricted — including Board designatedTemporarily restrictedPermanently restricted
Total net assets
TOTAL
$ 162,753 $ 3,956 $ 166,709
1,047,271 1,047,271
3,663,527
1,835,000
6,708,551
2,017,1847,906,115
9,923,299
3,956
14,739,785
17,143,181
31,882,966
3,663,527
1,835,000
6,712,507
16,756,9697,906,115
17,143,181
41,806,265
$16,631,850 $31,886,922 $48,518,772
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AUDUBON NATURE INSTITUTE, INC. ANDAUDUBON NATURE INSTITUTE FOUNDATION
CONSOLIDATING SCHEDULE — STATEMENT OF ACTIVITIES INFORMATIONFOR THE YEAR ENDED DECEMBER 31, 2007 ___
Audubon AudubonNature Nature Institute
Institute Foundation
REVENUE AND OTHER SUPPORT:Government grantsGifts, exhibit/program sponsorshipsInvestment incomeImputed interest on pledgesFundraising activitiesNet assets released from restrictions —
endowment income transferred to AudubonCommission funds
Total revenue and other support
EXPENSES:Grant expense to the Audubon CommissionDevelopment and fundraising activitiesTermite education grantInterestInvestment expensesOther expenses
Total expenses
CHANGE IN NET ASSETS
NET ASSETS — Beginning of year
NET ASSETS — End of year
> 295,1214,564,270
363,77149,172
912,740
6,185,074
43,5701,471,729
(133,847)
1,381,452
Total
295,1214,607,8401,835,500
49,172912,740
(133,847)
7,566,526
2,758,9521,661,314101,043133,182
24,624
4,679,115
1,505,959
8,417,340
2,758,9521,661,314101,043133,182
61,015 61,01524,624
61,015 4,740,130
1,320,437 2,826,396
30,562,529 38,979,869
$9,923,299 $31,882,966 $41,806,265
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Deloitte Deloitte & louche LLPSuite 4200701 Poydras StreetNew Orleans, LA 70139-4200USA
Tel: +1 504 581 2727Fax: +1 504 561 7293www.deloitte.com
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVERFINANCIAL REPORTING AND ON COMPLIANCE AND OTHERMATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTSPERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITINGSTANDARDS
To the Board of Directors ofAudubon Nature Institute, Inc.:
We have audited the consolidated financial statements of the Audubon Nature Institute, Inc. and AudubonNature Institute Foundation (the "Institute"), as of and for the year ended December 31, 2007, and haveissued our report thereon dated May 23, 2008. We conducted our audit in accordance with auditingstandards generally accepted in the United States of America and the standards applicable to financialaudits contained in Government Auditing Standards, issued by the Comptroller General of the UnitedStates.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Institute's internal control over financialreporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on thefinancial statements, but not for the purpose of expressing an opinion on the effectiveness of theInstitute's internal control over financial reporting. Accordingly, we do not express an opinion on theeffectiveness of the Institute's internal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management oremployees, in the normal course of performing their assigned functions, to prevent or detectmisstatements on a timely basis. A significant deficiency is a control deficiency, or combination ofcontrol deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, orreport financial data reliably in accordance with generally accepted accounting principles such that thereis more than a remote likelihood that a misstatement of the entity's financial statements that is more thaninconsequential will not be prevented or detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results inmore than a remote likelihood that material misstatement of the financial statements will not be preventedor detected by the entity's internal control.
Our consideration of the internal control over financial reporting was for the limited purpose described inthe first paragraph of this section and would not necessarily identify all deficiencies in the internal controlthat might be significant deficiencies or material weaknesses. We did not identify any deficiencies ininternal control over financial reporting that we consider to be material weaknesses, as defined above.
• J o - Member ofDeloitte Touche Tohmatsu
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Institute's consolidated financial statementsare free of material misstatement, we performed tests of its compliance with certain provisions of laws,regulations, contracts, and grant agreements, noncompliance with which could have a direct and materialeffect on the determination of financial statement amounts. However, providing an opinion on compliancewith those provisions was not an objective of our audit, and accordingly, we do not express such anopinion. The results of our tests disclosed no instances of noncompliance that are required to be reportedunder Government Auditing Standards.
This report is intended solely for the information and use of the Board of Directors, management, and theLouisiana Legislative Auditor, and is not intended to be and should not be used by anyone other thanthese specified parties. Under Louisiana Revised Statute 24:513, this report is distributed by theLegislative Auditor as a public document.
May 23, 2008
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