THE AMERICAN NUMISMATIC SOCIETY
FINANCIAL STATEMENTS
SEPTEMBER 30, 2002 AND 2001
THE AMERICAN NUMISMATIC SOCIETY
CONTENTS
SEPTEMBER 30, 2002 AND 2001
Page
Independent auditor's report
1
Financial statements:
Statement of financial position
2
Statement of activities, 2002
3 - 4
Statement of activities, 2001
5 - 6
Statement of changes in net assets
7
Statement of cash flows
8
Notes to financial statements
9 - 17
Additional information:
Schedule of changes in unrestricted, temporarily restricted,
and permanently restricted net assets, 2002
19 - 22
Schedule of functional expenses, 2002
23
Schedule of functional expenses, 2001
24
INDEPENDENT AUDITOR'S REPORT
To the Council
The American Numismatic Society
New York, New York
We have audited the accompanying statement of financial position of The American Numismatic Society(a nonprofit corporation) as of September 30, 2002 and 2001, and the related statements of activities,changes in net assets and cash flows for the years then ended. These financial statements are theresponsibility of the Society's management. Our responsibility is to express an opinion on these financialstatements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we plan and perform the audits to obtain reasonableassurance about whether the financial statements are free of material misstatement. An audit includesexamining, 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 bymanagement, as well as evaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, thefinancial position of The American Numismatic Society as of September 30, 2002 and 2001, and thechanges in its net assets and its cash flows for the years then ended in conformity with accountingprinciples generally accepted in the United States of America.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements takenas a whole. The accompanying schedules of changes in unrestricted, temporarily restricted andpermanently restricted net assets and functional expenses are presented for the purpose of additionalanalysis and are not a required part of the basic financial statements. Such information has beensubjected to the auditing procedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basic financial statements taken as awhole.
November 18, 2002
1.
THE AMERICAN NUMISMATIC SOCIETY
STATEMENT OF FINANCIAL POSITION
SEPTEMBER 30, 2002 AND 2001
2002
2001
ASSETS
Cash
$ 132,309
$ 190,409
Pledges receivable
340,932
362,860
Other receivables and prepaid expenses
250,541
235,104
Investments in marketable securities,
at fair value (note 5)
10,585,759
11,572,493
Beneficial interest in perpetual trusts
1,866,330
2,166,932
Society collections
-
-
Property and equipment, net (note 7)
9,082,338
8,744,962
Total assets
$ 22,258,209
$ 23,272,760
LIABILITIES AND NET ASSETS
Liabilities:
Accounts payable
$ 88,594
$ 78,501
Net assets:
Unrestricted:
Undesignated
3,225,683
2,948,030
Designated for property and equipment
8,869,153
8,744,958
Total unrestricted net assets
12,094,836
11,692,988
Temporarily restricted
4,474,980
5,616,267
Permanently restricted
5,599,799
5,885,004
Total net assets
22,169,615
23,194,259
Total liabilities and net assets
$ 22,258,209
$ 23,272,760
See notes to financial statements.
2.
THE AMERICAN NUMISMATIC SOCIETY
STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2002
Unrestricted
Undesignated
Designated
Total
unrestricted
Temporarily
restricted
Permanently
restricted
TotalRevenues, gains and other support:
Contributions
$ 1,193,117
$ -
$ 1,193,117
$ 34,755
$ 15,397
$ 1,243,269Sales, membership dues and other income
235,606
-
235,606
47,381
-
282,987
Rental income
150,000
-
150,000
-
-
150,000Investment income
(121,157)
(3,485)
(124,642)
(554,800)
-
(679,442)
Unrealized gain (loss) in perpetual trusts
-
-
-
-
(300,602)
(300,602)Net assets released from restrictions:
Satisfaction of program restrictions
597,956
-
597,956
(597,956)
-
-Satisfaction of building acquisition and
improvement restrictions
-
70,667
70,667
(70,667)
-
-
Total revenues, gains and other support
2,055,522
67,182
2,122,704
(1,141,287)
(285,205)
696,212
Expenses:
Program services
1,396,255
54,856
1,451,111
-
-
1,451,111Management and general
208,747
-
208,747
-
-
208,747
Fundraising
117,435
-
117,435
-
-
117,435
Total expenses
1,722,437
54,856
1,777,293
-
-
1,777,293
Change in net assets before changes in collection
items not capitalized
333,085
12,326
345,411
(1,141,287)
(285,205)
(1,081,081)
(continued)
3.
THE AMERICAN NUMISMATIC SOCIETY
STATEMENT OF ACTIVITIES
(continued)
YEAR ENDED SEPTEMBER 30, 2002
Unrestricted
Undesignated
Designated
Unrestricted
Temporarily
restricted
Permanently
restricted
Total
Change in net assets before changes in collection
items not capitalized
$ 333,085
$ 12,326
$ 345,411
$ (1,141,287)
$ (285,205)
$ (1,081,081)
Changes in collection items not capitalized:
Sale of collection items
-
86,869
86,869
-
-
86,869Purchase of collection items
(30,432)
-
(30,432)
-
-
(30,432)
Change in net assets
$ 302,653
$ 99,195
$ 401,848
$ (1,141,287)
$ (285,205)
$ (1,024,644)
See notes to financial statements.
4.
THE AMERICAN NUMISMATIC SOCIETY
STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2001
Unrestricted
Undesignated
Designated
Total
unrestricted
Temporarily
restricted
Permanently
restricted
TotalRevenues, gains and other support:
Contributions
$ 163,923
$ 1,000
$ 164,923
$ 1,022,584
$ 218,949
$ 1,406,456Sales, membership dues and other income
362,005
-
362,005
196,910
-
558,915
Investment income
(139,000)
-
(139,000)
(982,560)
-
(1,121,560)Unrealized gain (loss) in perpetual trusts
-
-
-
-
(756,329)
(756,329)
Net assets released from restrictions:
Satisfaction of program restrictions
606,963
-
606,963
(606,963)
-
-Satisfaction of building acquisition and
improvement restrictions
-
147,683
147,683
(147,683)
-
-
Total revenues, gains and other support
993,891
148,683
1,142,574
(517,712)
(537,380)
87,482
Expenses:
Program services
1,149,676
57,244
1,206,920
-
-
1,206,920Management and general
240,109
-
240,109
-
-
240,109
Fundraising
219,919
-
219,919
-
-
219,919
Total expenses
1,609,704
57,244
1,666,948
-
-
1,666,948
Change in net assets before changes in collection
items not capitalized
(615,813)
91,439
(524,374)
(517,712)
(537,380)
(1,579,466)
(continued)
5.
THE AMERICAN NUMISMATIC SOCIETY
STATEMENT OF ACTIVITIES
(continued)
YEAR ENDED SEPTEMBER 30, 2001
Unrestricted
Undesignated
Designated
Unrestricted
Temporarily
restricted
Permanently
restricted
Total
Change in net assets before changes in collection
items not capitalized
$ (615,813)
$ 91,439
$ (524,374)
$ (517,712)
$ (537,380)
$ (1,579,466)
Changes in collection items not capitalized:
Purchase of collection items
(10,881)
-
(10,881)
-
-
(10,881)
Change in net assets
$ (626,694)
$ 91,439
$ (535,255)
$ (517,712)
$ (537,380)
$ (1,590,347)
See notes to financial statements.
6.
THE AMERICAN NUMISMATIC SOCIETY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED SEPTEMBER 30, 2002 AND 2001
Unrestricted
Undesignated
Designated
Total
unrestricted
Temporarily
restricted
Permanently
restricted
Total
Net assets, October 1, 2000
$ 3,594,223
$ 8,634,020
$ 12,228,243
$ 6,133,979
$ 6,422,384
$ 24,784,606
Change in net assets
(626,694)
91,439
(535,255)
(517,712)
(537,380)
(1,590,347)
Transfers
(19,499)
19,499
-
-
-
-
Net assets, September 30, 2001
2,948,030
8,744,958
11,692,988
5,616,267
5,885,004
23,194,259
Change in net assets
302,653
99,195
401,848
(1,141,287)
(285,205)
(1,024,644)
Transfers
(25,000)
25,000
-
-
-
-
Net assets, September 30, 2002
$ 3,225,683
$ 8,869,153
$ 12,094,836
$ 4,474,980
$ 5,599,799
$ 22,169,615
See notes to financial statements.
7.
THE AMERICAN NUMISMATIC SOCIETY
STATEMENT OF CASH FLOWS
YEARS ENDED SEPTEMBER 30, 2002 AND 2001
2002
2001Cash flows from operating activities:
Change in net assets
$ (1,024,644)
$ (1,590,347)Adjustments to reconcile change in net assets to net cash
provided by (used in) operating activities:
Net (gains) losses on marketable securities
795,207
1,365,231Unrealized (gains) losses on perpetual trusts
300,602
756,329
Depreciation and amortization
54,856
57,244Contributions restricted for endowments
(15,397)
(218,949)
(Increase) decrease in operating assets:
Pledges receivable
21,928
150,602Other receivables and prepaid expenses
(15,437)
(80,436)
Increase (decrease) in operating liabilities:
Accounts payable and accrued expenses
10,093
(279,113)
Net cash provided by (used in) operating activities
127,208
160,561
Cash flows from investing activities:
Purchase of marketable securities
(52,898,687)
(35,817,200)Proceeds from sales of marketable securities
53,090,214
35,467,558
Purchase of property and equipment
(392,232)
(168,184)
Net cash (used in) investing activities
(200,705)
(517,826)
Cash flows from financing activities:
Contributions permanently restricted for endowments
15,397
218,949
Net cash provided by financing activities
15,397
218,949
Net (decrease) in cash
(58,100)
(138,316)
Cash, beginning of year
190,409
328,725
Cash, end of year
$ 132,309
$ 190,409
See notes to financial statements.
8.
THE AMERICAN NUMISMATIC SOCIETY
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002 AND 2001
1.
Organization and purpose:
The American Numismatic Society ("the Society") is a nonprofit organization organized in 1858and incorporated in 1865. The mission of the Society is to be the pre-eminent national institutionadvancing the study and public appreciation of coins, medals and related objects of all cultures ashistoric and artistic documents, by maintaining the foremost numismatic collection and library; bysupporting scholarly research and publications; and by sponsoring educational and interpretiveprograms for diverse audiences. Items in the Society collections are available for loan to othermuseums for exhibits on particular themes. The Society's revenues are primarily derived fromcontributions and investment income.
2.
Summary of significant accounting policies:
Basis of accounting:
The accompanying financial statements have been prepared on the accrual basis. Accordingly,revenues and their related assets are recognized when earned, and expenses and their relatedliabilities are recognized when incurred.
Net assets:
The Society reports information regarding its financial position and activities according to threeclasses of net assets: unrestricted net assets, temporarily restricted net assets, and permanentlyrestricted net assets.
Unrestricted net assets are neither permanently restricted nor temporarily restricted by donor-imposed restrictions. As reflected in the accompanying statement of financial position, theSociety has designated its unrestricted net assets into the following two categories:
Undesignated net assets are net assets that are an integral part of the Society's programs andsupporting activities and include realized capital gains and unrealized appreciation onpermanently restricted net assets in the absence of donor imposed restrictions on eitherincome or capital appreciation. These net assets are resources over which the Council hasdiscretionary control to use for operations.
Designated net assets are net assets which the Council has established a restriction forspecified purposes. These net assets are differentiated from temporarily restricted net assetsinasmuch as the Council can remove the restrictions it imposed.
Net assets (continued):
Temporarily restricted net assets contain donor imposed restrictions that permit the Society to useup or expend the donated assets as specified. These restrictions may or will be met either byactions of the Society and/or the passage of time.
9.
THE AMERICAN NUMISMATIC SOCIETY
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002 AND 2001
2.
Summary of significant accounting policies (continued):
Permanently restricted net assets contain donor-imposed restrictions that stipulate the resourcesbe maintained permanently but permit the Society to use or expend part or all of the income fromthe donated assets for specified or unspecified purposes.
Contributions:
Contributions, including promises to give, are recorded as restricted support if they are receivedwith donor stipulations that limit the use of the donated assets. When a donor restriction expires,that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarilyrestricted net assets are reclassified to unrestricted net assets and reported in the statement ofactivities as net assets released from restrictions. It is the Society's policy to record temporarilyrestricted contributions received and expended in the same accounting period in the temporarilyrestricted net asset category.
The Society recognizes contributions restricted by a donor for the acquisition or construction oflong-lived assets as temporarily restricted support and reclassifies such support to unrestricted netassets, as net assets released from restriction, when the asset is acquired or placed in service.
Nonmonetary contributions (stocks, bonds, etc.) are recorded at estimated fair value at date ofreceipt.
Use of estimates in the preparation of financial statements:
The preparation of financial statements in conformity with accounting principles generallyaccepted in the United States of America requires management to make estimates andassumptions that affect the reported amounts of assets and liabilities and disclosure of contingentassets and liabilities at the date of the financial statements and the reported amount of income andexpenses during the reporting period. Actual results could differ from those estimates.
Investments in marketable securities:
The Society carries investments in debt securities and equity securities that have readilydeterminable fair values, at fair value in the statement of financial position and recognizesincreases and decreases in fair values in the statement of activities. Realized gains and losses andunrealized appreciation and depreciation on security transactions are allocated among individualrestricted and unrestricted funds on the basis of the respective percentage share in the fundbalance which exists at the beginning of each quarter in which income and realized and unrealizedgains or losses are earned. Purchases and sales of fixed-income and equity securities arereflected on a trade-date basis. Investment income is recorded on an accrual basis. Dividendsare recorded based upon ex-dividend dates.
10.
THE AMERICAN NUMISMATIC SOCIETY
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002 AND 2001
2.
Summary of significant accounting policies (continued):
Beneficial interest in perpetual trusts held by third parties:
The Society is the beneficiary of certain perpetual trusts under which the trust income is receivedannually for unrestricted use. The assets are held by trustees, which are separate entities. TheSociety's beneficial interest in these perpetual trusts is recorded based on the fair value of theassets held in the trusts as reported by the trustees and is reported as permanently restricted netassets. Annual changes in such amounts are shown as permanently restricted unrealized gains orlosses.
Society collections:
The Society's collections consist primarily of coins, medals and manuscripts. They are cataloged,preserved, and cared for, and activities verifying their existence and assessing their condition areperformed. The Society's collections, acquired through purchase and contributions, are notrecognized as assets on the statement of financial position. Purchases of collection items arerecorded in the year in which the items were acquired as decreases in unrestricted, temporarilyrestricted or permanently restricted net assets if the assets used to purchase the items wererestricted by the donors. Contributed collection items are not reflected in the financial statements.Proceeds from deaccessions, which are reflected as increases in the appropriate net asset class,are used to acquire other items for the collection. Collection items include coins, medals, papercurrency, library books and other objects and documents. The current value of the collections isnot readily determinable.
Property and equipment:
Property and equipment are recorded at cost less accumulated depreciation. The cost ofmaintenance and repairs is charged to expense as incurred. Significant renewals andreplacements which substantially extend the lives of the assets are capitalized.
Depreciation is provided principally using straight-line methods over the estimated useful lives ofthe assets as follows:
Computer equipment
5-10 Years
Furniture and office equipment
5-10 Years
Building - Broadway
100 Years
The estimated useful life of the William Street building will be determined after the completion ofthe renovations and the building is placed in service.
11.
THE AMERICAN NUMISMATIC SOCIETY
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002 AND 2001
2.
Summary of significant accounting policies (continued):
The land underlying the Broadway building was acquired by deed in 1906, 1914 and 1924. Theland has been carried at a nominal value, which amount has not been adjusted in connection withthe adoption of Statement of Financial Accounting Standards No. 116 Accounting forContributions Received and Contributions Made (SFAS No. 116) in 1995. The Societybelieves that the original fair value of the land when deeded is not material to the financialstatements.
Income taxes:
No provision for federal and state income taxes has been provided on the earnings of the Societysince it has received an exemption from income taxes under Section 501(c)(3) of the InternalRevenue Code. The Society has been classified as an organization that is not a private foundationunder Section 509(a)(2) of the Internal Revenue Code.
Donated services:
The Society received donated services from its officers, directors and other volunteers. Noamounts are reflected in the financial statements for these services, as there is no objective basisavailable by which to measure the value of such services.
Wholly-owned subsidiary:
The Society incorporated its wholly-owned subsidiary, NUMSOC Corp. (NUMSOC), to act asthe general contractor on the William Street renovations. Since NUMSOC is acting as an agentfor the Society, all costs incurred by NUMSOC are funded by the Society and as the funds arespent, the appropriate costs are transferred back to the Society and recorded on the books ofthe Society.
3.
Concentrations:
Financial instruments that potentially subject the Society to concentrations of credit risk consistprincipally of cash and money market accounts in financial institutions, which may exceed thefederal depository insurance coverage limit, brokerage accounts, which may exceed insurancecoverage limits, and investments. The Society maintains the cash accounts with high qualityfinancial institutions to minimize risk. Additionally, the Society reviews its investment portfoliosthroughout the year in order to minimize risk.
The Society receives its contributions primarily from its members, Council members, andfoundations interested in its programs. There is no assurance that the funding will continue at itspresent levels in the future.
12.
THE AMERICAN NUMISMATIC SOCIETY
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002 AND 2001
4.
Pledges receivable:
Pledges receivable consist of the following:
2002
2001
Restricted to:
Publications
$ 20,000
$ -
Building purchase and renovation
320,932
362,860
Total
$ 340,932
$ 362,860
Amounts due in:
Less than one year
$ 72,494
$ 175,000
One to five years
260,000
259,075 Six to ten years
100,000
-
432,494
434,075 Less discounts to present value
91,562
71,215
Total pledges receivable
$ 340,932
$ 362,860
A discount rate of 6% was used to determine the net present value of pledges receivable in morethan one year.
5.
Investments in marketable securities:
Marketable securities consist of the following:
2002
2001
Cost
Fair value
Cost
Fair value
Common stocks
$ 6,875,929
$ 6,469,862
$ 8,614,769
$ 9,071,772
Government
agency bonds
1,015,000
1,015,000
760,280
779,581
Corporate bonds
2,409,375
2,434,375
-
-
Mutual funds
-
-
314,432
324,369
Money market
funds
666,522
666,522
1,396,771
1,396,771
$ 10,966,826
$ 10,585,759
$ 11,086,252
$ 11,572,493
13.
THE AMERICAN NUMISMATIC SOCIETY
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002 AND 2001
5.
Investments in marketable securities (continued):
The following is a summary of the relationship between the carrying values and fair values ofinvestment assets:
2002
2001
Cost
Fair value
Excess
(deficiency)
of fair value
over cost
Excess
(deficiency)
of fair value
over cost
Balance, beginning of year
$ 11,086,252
$ 11,572,493
$ 486,241
$ 1,392,273
Balance, end of year
$ 10,966,826
$ 10,585,759
(381,067)
486,241
Net change in fair value
(867,308)
(906,032)
Net realized gains (losses)
on sales of marketable
securities
72,101
(459,199)
Net (loss) on marketable
securities
$ (795,207)
$ (1,365,231)
Investment income for the years ended September 30, 2002 and 2001 consists of the following:
2002 2001
(Loss) on marketable securities, net
$ (795,207) $ (1,365,231) Interest and dividend income
162,087 284,109
Management fees paid
(100,582) (106,946) (733,702) (1,188,068)
Distributions from perpetual trusts
54,260 66,508
$ (679,442) $ (1,121,560)
6.
Society collections (unaudited):
Various coins were lent to the Society by several organizations. The collection of coins lent to theSociety had a current value assigned by the lenders of approximately $36,200 and $36,200 atSeptember 30, 2002 and 2001, respectively, not including coins loaned by the Hispanic Societyof America which have not been valued.
14.
THE AMERICAN NUMISMATIC SOCIETY
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002 AND 2001
6.
Society collections (continued):
The Society also has coins on loan with several organizations. Those coins that were lent tovarious organizations by the Society had a management estimated current value of approximately$20,091,700 and $2,123,000 at September 30, 2002 and 2001, respectively.
7.
Property and equipment:
Property and equipment are summarized as follows:
2002
2001
Building - Broadway and 155th Street $ 911,787
$ 911,787
Building - 140 William Street 4,973,438
4,973,438
Furniture and office equipment 710,320
683,179
Construction in progress 840,513
475,422
7,436,058
7,043,826
Accumulated depreciation
(1,353,721)
(1,298,865)
6,082,337
5,744,961
Land - 140 William Street
3,000,000
3,000,000
Land - Broadway and 155th Street
1
1
Net book value $ 9,082,338
$ 8,744,962
Depreciation and amortization expense amounted to $54,856 and $57,244 for the years endedSeptember 30, 2002 and 2001, respectively.
The building at Broadway and 155th Street is listed on the National Register of Historic Places.In accordance with that listing, approval from the National Park Service is required prior to anysubstantial modifications to the existing building. The Society is examining the possibility of sellingthis building in connection with the proposed relocation to the William Street building.
The Society is performing renovations to the William Street building through NUMSOC.Currently, NUMSOC is negotiating with contractors for the renovation of certain portions of theproperty. The Council has approved expenditures of up to approximately $2,770,000 for therenovations and planned move. As of September 30, 2002, the Society has no commitmentsbeyond the $840,513 previously incurred.
15.
THE AMERICAN NUMISMATIC SOCIETY
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002 AND 2001
8.
Designated unrestricted net assets:
The Council established the following designated funds from the unrestricted net assets as ofSeptember 30, 2002 and 2001:
2002 2001 Property and equipment
$ 8,760,769 $ 8,744,958
Library salary support
108,384 -
$ 8,869,153 $ 8,744,958
During the year ended September 30, 2002, the Council designated a portion of the unrestrictednet assets to fund the salaries of the Society's librarians. The initial amounts transferred into thisfund came from the sale of duplicate items from the library collection and the partial payment tothe Society of $25,000 from the Huntington Free Library settlement (see Note 14).
9.
Temporarily restricted net assets:
As of September 30, 2002 and 2001, temporarily restricted net assets are available for thefollowing purposes:
2002
2001
Coin and medal purchases $ 559,792
$ 615,752
Library purchases 141,984
167,558 Education 305,001
499,988
Departmental support 1,560,156
2,152,517 140 William Street:
Museum renovations 1,880,697
2,180,452 Other 27,350
-
$ 4,474,980
$ 5,616,267
16.
THE AMERICAN NUMISMATIC SOCIETY
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002 AND 2001
10.
Permanently restricted net assets:
As of September 30, 2002 and 2001, permanently restricted net assets are available for thefollowing purposes:
2002
2001
Program activities:
Museum operations
$ 2,191,748
$ 2,478,753 Library purchases
112,668
112,668
Coin purchases
76,701
76,701 Education
640,023
640,023
Computer related activities
780,600
780,600 Medals purchases
8,001
8,001
Curators
1,750,058
1,748,258 Other
40,000
40,000
$ 5,599,799
$ 5,885,004
11.
Retirement plan:
The Society maintains a retirement benefits plan that covers all eligible employees through definedcontributions by the Society for the purchase of individual annuity contracts with TeachersInsurance and Annuity Association/College Retirement Equities Fund. The plan is funded asaccrued, and all full-time employees are eligible to participate. Contributions to the planamounted to $75,571 and $74,518 for the years ended September 30, 2002 and 2001,respectively.
12.
Related party transactions:
The Society paid investment advisory fees of $100,582 and $106,946 for the years endedSeptember 30, 2002 and 2001, respectively, to a firm in which a member of the Council is aprincipal.
13.
Rental income:
In January 2002, the Society leased the first floor of the William Street building to the City ofNew York Economic Development Corporation for a period of six months with an option torenew for an additional six month period at a monthly rental of $18,750 during the initial andoption periods. Rental income for the year ended September 30, 2002 totaled $150,000. Thetenant exercised the renewal option in June. Future rental income under this lease agreementapproximates $75,000.
17.
THE AMERICAN NUMISMATIC SOCIETY
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002 AND 2001
14.
Litigation:
Society collections:
The Society had been involved in litigation to recover early date U.S. cents that were switchedand/or removed illicitly from its possession many years ago. During the year ended September30, 2001, the aforementioned case was settled. As part of the settlement, the Society receivedthe return of 38 coins, 20 other coins were previously sold by the defendant, and a $255,000refund of legal fees, which is included in sales, membership dues and other income. Eighteenillicitly taken coins have been voluntarily returned by others. The Society continues its efforts torecover an additional 53 coins.
Huntington Free Library:
The Huntington Free Library (the "Library") invaded a perpetual trust in which the Society was abeneficiary. The Society agreed to settle with the Library for $75,000, subject to court approval,and received an inital payment of $25,000. Subsequent to year-end, the court rejected thesettlement. Any funds received pursuant to this settlement are designated for the support oflibrary salaries.
18.
THE AMERICAN NUMISMATIC SOCIETY
SCHEDULE OF CHANGES IN UNRESTRICTED, TEMPORARILY RESTRICTED,
AND PERMANENTLY RESTRICTED NET ASSETS
YEAR ENDED SEPTEMBER 30, 2002
Contributions
Investment
income
Other income
Expenses
Transfers
Net change in
fund
Net assets,
October 1,2001
Net assets
September 30,
2002
Unrestricted:
Undesignated
$ 1,193,117
$ (121,157)
$ 472,475
$ (1,154,913)
$ (25,000)
$ 364,522
$ 2,948,030
$ 3,312,552
Designated
Property and equipment
-
-
-
(54,856)
70,667
15,811
8,744,958
8,760,769
Library salary support
-
(3,485)
86,869
-
25,000
108,384
-
108,384
Total designated funds
-
(3,485)
86,869
(54,856)
95,667
124,195
8,744,958
8,869,153
Total unrestricted funds
1,193,117
(124,642)
559,344
(1,209,769)
70,667
488,717
11,692,988
12,181,705
Temporarily restricted:
Designated for coin and medal
purchases:
A. S. Sullivan Medal fund
-
(953)
-
-
-
(953)
12,108
11,155Avery Coin Purchase fund
-
(3,970)
-
-
-
(3,970)
62,911
58,941
Edward P. Groh Memorial fund
-
(789)
-
-
-
(789)
12,502
11,713Fecht Coin Purchase fund
-
(8,130)
-
-
-
(8,130)
128,852
120,722
George H. Clapp Coin Purchase
fund
-
(1,996)
-
-
-
(1,996)
26,634
24,638Gale Coin Purchase fund
-
(4,611)
-
-
-
(4,611)
51,383
46,772
General Coin Purchases including
E.T. Newell Coin Purchase
fund
-
(20,351)
-
(11,600)
-
(31,951)
272,517
240,566J. Sanford Saltus Medal fund
-
(1,535)
-
-
-
(1,535)
19,317
17,782
John & Mary Lhotka Memorial
Purchase fund
-
(661)
-
-
-
(661)
7,903
7,242Memorial Decorations fund
-
(1,006)
-
-
-
(1,006)
15,946
14,940
Revolving Coin Purchase fund
-
(358)
-
-
-
(358)
5,679
5,321
Total designated for coin and
medal purchases
-
(44,360)
-
(11,600)
-
(55,960)
615,752
559,792
19.
THE AMERICAN NUMISMATIC SOCIETY
SCHEDULE OF CHANGES IN UNRESTRICTED, TEMPORARILY RESTRICTED,
AND PERMANENTLY RESTRICTED NET ASSETS
(continued)
YEAR ENDED SEPTEMBER 30, 2002
Contributions
Investment
income
Other income
Expenses
Transfers
Net change in
fund
Net assets,
October 1,2001
Net assets
September 30,
2002
Temporarily restricted (continued):
Designated for library purchases:
Bass Library fund
$ 9,500
$ (11,550)
$ -
$ (18,832)
$ -
$ (20,882)
$ 94,309
$ 73,427W. Gedney Beatty Library fund
-
(2,143)
-
-
-
(2,143)
33,953
31,810
Merritt Library fund
-
(2,018)
-
-
-
(2,018)
31,994
29,976Michael Louis Backowske
Memorial Purchase fund
-
(531)
-
-
-
(531)
7,302
6,771
Total designated for library
purchases
9,500
(16,242)
-
(18,832)
-
(25,574)
167,558
141,984
Designated for education:
Donald Groves fund
-
(7,850)
-
(100,000)
-
(107,850)
124,401
16,551EPN - Education fund
-
(48,164)
-
(19,052)
-
(67,216)
238,274
171,058
Frances M. Schwartz Memorial
fund
-
(5,868)
-
(3,120)
-
(8,988)
52,995
44,007Harry W. Fowler Memorial Lecture
fund
783
(3,423)
-
-
-
(2,640)
3,673
1,033Krause fund
5,000
(1,389)
-
-
-
3,611
4,493
8,104
Roman Studies fund
-
(155)
-
-
-
(155)
2,448
2,293Scher Lecture fund
-
(2,789)
-
(3,944)
-
(6,733)
(5,806)
(12,539)
Sheikh Hamad Islamic Award fund
-
(60)
-
-
-
(60)
944
884Thompson Memorial fund
-
(4,956)
-
-
-
(4,956)
78,566
73,610
Total designated for education
5,783
(74,654)
-
(126,116)
-
(194,987)
499,988
305,001
20.
THE AMERICAN NUMISMATIC SOCIETY
SCHEDULE OF CHANGES IN UNRESTRICTED, TEMPORARILY RESTRICTED,
AND PERMANENTLY RESTRICTED NET ASSETS
(continued)
YEAR ENDED SEPTEMBER 30, 2002
Contributions
Investment
income
Other income
Expenses
Transfers
Net change in
fund
Net assets,
October 1,2001
Net assets
September 30,
2002
Temporarily restricted funds (continued):
Designated for new building:
New Century fund
$ (11,878)
$ (137,749)
$ -
$ (79,461)
$ (70,667)
$ (299,755)
$ 2,180,452
$ 1,880,697
Total designated for new building
(11,878)
(137,749)
-
(79,461)
(70,667)
(299,755)
2,180,452
1,880,697
Departmental support funds:
Eidlitz Building Maintenance fund
-
(15,632)
-
(52,908)
-
(68,540)
247,740
179,200General Publications including E.T.
Newell Publications fund
-
(51,632)
47,381
(82,074)
-
(86,325)
793,260
706,935Harry Bass Endowment for
Computers fund
4,000
(49,381)
-
(90,233)
-
(135,614)
340,821
205,207Margaret Thompson Curator of
Greek Coins fund
-
(99,868)
-
(45,262)
-
(145,130)
664,393
519,263Administrative salary support fund
-
(6,099)
-
-
-
(6,099)
-
(6,099)
U. S. Chair fund
-
(54,135)
-
(91,470)
-
(145,605)
106,923
(38,682)Islamic Chair fund
-
(5,048)
-
-
-
(5,048)
(620)
(5,668)
Total departmental support funds
4,000
(281,795)
47,381
(361,947)
-
(592,361)
2,152,517
1,560,156
Other designations:
Development
-
-
-
-
-
-
-
-Short term special purpose
27,350
-
-
-
-
27,350
-
27,350
Special events
-
-
-
-
-
-
-
-
Total other designations
27,350
-
-
-
-
27,350
-
27,350
Total temporarily restricted funds
34,755
(554,800)
47,381
(597,956)
(70,667)
(1,141,287)
5,616,267
4,474,980
21.
THE AMERICAN NUMISMATIC SOCIETY
SCHEDULE OF CHANGES IN UNRESTRICTED, TEMPORARILY RESTRICTED,
AND PERMANENTLY RESTRICTED NET ASSETS
(continued)
YEAR ENDED SEPTEMBER 30, 2002
Contributions
Investment
income
Other income
Expenses
Transfers
Net change in
fund
Net assets,
October 1,2001
Net assets
September 30,
2002
Permanently restricted:
Operations:
Operations
$ -
$ -
$ -
$ -
$ -
$ -
$ 215,162
$ 215,162 Salary support
Administrative
-
-
-
-
-
-
96,659
96,659 Library
13,597
-
-
-
-
13,597
-
13,597
Perpetual trusts
-
(300,602)
-
-
-
(300,602)
2,166,932
1,866,330Total operations
13,597
(300,602)
-
-
-
(287,005)
2,478,753
2,191,748
Bass Library fund
-
-
-
-
-
-
84,000
84,000EPN - Education fund
-
-
-
-
-
-
525,023
525,023
Frances M. Schwartz Memorial fund
-
-
-
-
-
-
40,000
40,000Gale Coin Purchase fund
-
-
-
-
-
-
21,701
21,701
George H. Clapp Coin Purchase fund
-
-
-
-
-
-
5,000
5,000General Coin Purchases including E. T.
Newell Coin Purchase fund
-
-
-
-
-
-
50,000
50,000General Publications including E. T.
Newell Publications fund
-
-
-
-
-
-
25,000
25,000Harry Bass Endowment fund
-
-
-
-
-
-
780,600
780,600
Harry W. Fowler Memorial Lecture
fund
-
-
-
-
-
-
50,000
50,000John & Mary Lhotka Memorial
Purchase fund
-
-
-
-
-
-
2,568
2,568J. Sanford Saltus Medal fund
-
-
-
-
-
-
5,000
5,000
A. S. Sullivan Medal fund
-
-
-
-
-
-
3,001
3,001Margaret Thompson Curator of Greek
Coins
-
-
-
-
-
-
918,290
918,290Michael Louis Backowske Memorial
Purchase fund
-
-
-
-
-
-
1,100
1,100Scher Lecture fund
-
-
-
-
-
-
50,000
50,000
Krause fund
-
-
-
-
-
-
15,000
15,000U. S. Chair fund
-
-
-
-
-
-
751,000
751,000
Islamic Chair fund
1,800
-
-
-
-
1,800
78,968
80,768Total permanently restricted
15,397
(300,602)
-
-
-
(285,205)
5,885,004
5,599,799
Total
$ 1,243,269
$ (980,044)
$ 606,725
$ (1,807,725)
$ -
$ (937,775)
$ 23,194,259
$ 22,256,484
22.
THE AMERICAN NUMISMATIC SOCIETY
SCHEDULE OF FUNCTIONAL EXPENSES
YEAR ENDED SEPTEMBER 30, 2002
Program services
Management and
general
Fundraising
Total
Salaries, benefits and payroll taxes
$ 881,385
$ 57,720
$ 103,976
$ 1,043,081Professional and consulting fees
46,656
35,623
594
82,873
Supplies
11,110
9,929
3,504
24,543Telephone
8,953
2,502
170
11,625
Postage and shipping
7,423
2,074
391
9,888Occupancy, Broadway
125,870
12,802
-
138,672
Occupancy, William Street
-
73,977
-
73,977Printing and publications
121,398
-
8,317
129,715
Conferences, conventions, meetings and travel
9,788
2,983
483
13,254Membership dues
5,285
-
-
5,285
Awards and grants
3,120
-
-
3,120Rental and maintenance of equipment
12,312
7,287
-
19,599
Depreciation and amortization
54,856
-
-
54,856Exhibition and lecture
162,955
-
-
162,955
Other service fees
-
3,850
-
3,850
$ 1,451,111
$ 208,747
$ 117,435
$ 1,777,293
23.
THE AMERICAN NUMISMATIC SOCIETY
SCHEDULE OF FUNCTIONAL EXPENSES
YEAR ENDED SEPTEMBER 30, 2001
Program services
Management and
general
Fundraising
Total
Salaries, benefits and payroll taxes
$ 840,055
$ 91,518
$ 113,629
$ 1,045,202Employee severance package
-
(17,414)
-
(17,414)
Professional and consulting fees
45,794
35,603
68,052
149,449Supplies
8,225
6,660
26,324
41,209
Telephone
11,376
3,179
216
14,771Postage and shipping
4,295
1,200
96
5,591
Occupancy, Broadway
100,922
7,047
-
107,969Occupancy, William Street
4,577
89,796
-
94,373
Printing and publications
50,166
3,771
6,607
60,544Conferences, conventions, meetings and travel
6,630
8,129
4,995
19,754
Membership dues
4,986
-
-
4,986Awards and grants
3,000
-
-
3,000
Rental and maintenance of equipment
17,109
6,361
-
23,470Depreciation and amortization
57,244
-
-
57,244
Exhibition and lecture
52,541
-
-
52,541Other service fees
-
4,259
-
4,259
$ 1,206,920
$ 240,109
$ 219,919
$ 1,666,948
24.