HomeMy WebLinkAbout01-34 Resolution No . 01-34
RESOLUTION
AUTHORIZING EXECUTION OF A PURCHASE OF SERVICE AGREEMENT WITH
THE ELGIN RECREATION CENTER
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Joyce A. Parker, City Manager, and Dolonna Mecum,
City Clerk, be and are hereby authorized and directed to execute
a Purchase of Service Agreement on behalf of the City of Elgin
with the Elgin Recreation Center for youth and gang intervention
programs, a copy of which is attached hereto and made a part
hereof by reference .
s/ Ed Schock
Ed Schock, Mayor
Presented: February 14, 2001
Adopted: February 14, 2001
Omnibus Vote: Yeas : 7 Nays : 0
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
PURCHASE OF SERVICE AGREEMENT
THIS AGREEMENT is made and entered into this I2r/}day of mA2c./F,2001,by and between
ELGIN RECREATION CENTER,a not-for-profit organization,(hereinafter referred to as the"ERC")and
the CITY OF ELGIN, Illinois, a municipal corporation, (hereinafter referred to as the "City").
WHEREAS,the City of Elgin, Illinois has determined it is in the best interests of the City of Elgin
to discourage criminal activity through the promotion of alternative activities for minors and to aid the
promotion of such activities; and
WHEREAS,the ERC is prepared to continue a program of gang intervention and prevention services
but requires financial assistance; and
WHEREAS,ERC serves an ethnically diverse population of youth from predominately low-income
families; and
WHEREAS,Elgin's low-income,at-risk youth spent approximately 102,000 hours at ERC in 2000.
Now, therefore, in consideration of the mutual promises and covenants contained herein, the
sufficiency of which is hereby acknowledge,the parties hereto hereby agree as follows:
1. ERC shall offer and provide a Gang Intervention Program including, but not limited
to a summer school program component.
2. In addition to other payments provided herein,the City shall pay to ERC the sum of not more than
$124,000 which shall be used for rent, utilities and administrator health insurance. Payment for rent
($108,000) shall be made directly to the facility owner in accordance with the ERC lease agreement.
Payment for administrator health insurance ($2,000) shall be made directly to ERC.. Payment for utilities
($14,000) shall be reimbursed to ERC in April, August and December upon submittal to the City of utility
receipts.
3. The City shall pay$74,000 to ERC for gang intervention programming,including but not limited
to, a summer school program. Payment to ERC shall be made in three equal installments of$24,666.67 in
February, June and October, 2001.
4. ERC shall provide two written reports detailing the disbursement of$34,000. These reports shall
be provided to the City Council by May 31, 2001 and December 31, 2001, and shall include all program
activity. These reports shall be submitted to the City Manager's Office,City Hall, 150 Dexter Court, Elgin,
IL 60120.
5. Provider shall provide City with financial statements relative to the organization's total operations.
These statements shall be provided on or before July 31, 2001 and December 31, 2001.
6. To the fullest extent permitted by law, ERC agrees to indemnify, defend and hold harmless the
City, its officers,employees,boards and commissions from and against any and all claims,suits,judgments,
costs, attorney's fees, damages or other relief arising out of or resulting from or through or alleged to arise
out of any reckless or negligent acts or omissions of ERC's officers,employees or agents in the performance
of this agreement. In the event of any actions
• against the City, its officers, employees, agents, boards or commissions covered by the foregoing duty to
indemnify,defend and hold harmless,such action shall be defended by legal counsel of the City's choosing.
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This agreement shall be subject to and governed by the laws of the State of Illinois. Venue for the
resolution of any disputes or the enforcement of any rights pursuant to this agreement shall be in the Circuit
Court of Kane County, Illinois.
No official, director, officer, agent or employee of the City shall be charged personally or held
contractually liable under any term or provision of this Agreement or because of their execution, approval
or attempted execution of this Agreement.
This Agreement,the documents it incorporates and its attachments constitute the entire Agreement
of the parties on the subject matter hereof and may not be changed,modified,discharged or extended except
by written amendment duly executed by the parties.
7. Funds provided by the City shall not be used directly or indirectly for religious activities; in the
event that a primarily religious entity provides the public services provided for herein, in whole or in part,
it may not discriminate in employment or services on the basis of religion and no religious services shall be
provided.
8. The terms of this agreement shall be severable. In the event any of the terms or provisions of this
agreement are deemed to be void or otherwise unenforceable for any reason,the remainder of this agreement
shall remain in full force and effect.
9. This agreement shall not be construed to create a partnership,joint venture,employment or other
agency relationship between the parties hereto.
10. This Agreement shall be in full force and in effect until December 3 1, 2001.
11. In the event the program for which the City funds provided herein are to be applied is continued
or ERC ceases its operations prior to December 31, 2001, ERC shall refund to the City on a pro rata basis
the funds paid herein for the portion of the year such program or its operations were not conducted.
IN WITNESS WHEREOF,the parties hereto have executed this agreement on the date and year first
written above.
CI ELGIN, a municip corporation
By &-
J ` e Par er, City Manager
Attest:
$136-114"42
City Clerk
ELGIN RECREATION CENTER
a not-for-profit corporation
By`•
Jol Scl y..y
C ir, B��•"of Directors
is Board 'resident
oF ACC'
0="� Agenda Item No.
City of Elgin g
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January 11, 2001 G '
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TO: Mayor and Members of the City Council
l 11-t!i[/ lIC)N AI.1 LIS IJ It 1-
/l N[".GII LT IIii{1L C.1'!'O!t'1 llN ITIL�
FROM: Joyce A. Parker, City Manager C,I1 ALL CITIZEN,
SUBJECT: Elgin Recreation Center 2001
Purchase of Service Agreement
PURPOSE
The purpose of this memorandum is to provide the Mayor and members
of the City Council with information to consider the 2001 Purchase
of Service Agreement with the Elgin Recreation Center.
BACKGROUND
The Elgin Recreation Center provides recreational and educational
programs to at-risk Elgin youth. The Center is located at 1080
East Chicago Street . The Center is drop-in based and also offers
programs such as a bilingual summer school program, weight
training, tutoring, computer classes, GED classes, art programs and
more . Over 150 participants ranging from ages 5 to 35 are served
daily.
Under the Service Agreement, the City' s $198, 000 will be utilized
in the following manner: $124, 000 will be used for operations
assistance; $74, 000 will be used for gang intervention programming
including, but not limited to, a bi-lingual summer school program.
In exchange for this funding, the Elgin Recreation Center will
provide ongoing activities to at-risk youth and offer a minimum of
six cooperative programs with the City Parks and Recreation
Department as well as working cooperatively with the City' s Gang
Intervention Program Supervisor to program community-wide
activities .
In 2000, the following were among the many programs offered at the
Elgin Recreation Center: arts and craft classes, GED program,
computer training, bilingual summer school program, indoor soccer,
basketball, pre-employment skills training, after school tutoring,
pool trips, U-46 Fresh Start Program, and programming for Gifford
Street High School .
Elgin Recreation Center PSA
January 11, 2001
Page 2
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None .
FINANCIAL IMPACT
Sufficient funds are budgeted and available; $24, 000 is included in
the 2001 Boards and Commission Budget, account number 010-0902-
709. 80-23 and $176, 000 is budgeted in the Riverboat Lease Fund,
7 -account number 2 5 0000-791 . 80-23 .
LEGAL IMPACT
*----
one .
• ALTERNATIVES
The City Council could approve the agreement as drafted, edit the
agreement or decline to provide support to Elgin Recreation Center.
RECOMMENDATION
It is recommended that the proposed 2001 Elgin Recreation Center
Agreement be approved to provide $200, 000 of funding toward youth
gang intervention programs .
Respectfully submitted,
Lam--
a • iDa_i_t_k_____
J e A Parker
City Manager
Attachments
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Elgin Recreation Center
1080 E. CHICAGO ST.
2000
GRANT SPENT
ADMINISTRATIVE STAFF $ 13,800.00 $ 34,584.25
SOCIAL WORKER $ 3,360.00 $ 3,378.00
SUMMER TEACHERS $ 6,720.00 $ 6,720.00
ARTS & CRAFTS TEACHER $ 2,944.00 $ 4,669.00
BASKETBALL COACH $ 2,960.00 $ 3,326.00
COMPUTER TEACHER $ 2,500.00 $ 2,629.50
GED TEACHER $ 700.00
OUTREACH WORKERS $ 11,520.00 $ 11,634.00
PEST TEACHER $ 700.00
SOCCER COACH $ 2,432.00 $ 2,923.00
SOCCER ASST. $ 8,000.00 $ 8,116.00
TUTOR $ 1,792.00 $ 2,346.00
PAYROLL TAXES $ 5,218.00 $ 5,218.00
INSURANCE $ 2,000.00 $ 2,474.00
TOTALS $ 64.646.00 $ 88.017.75
RENT $ 110,800.00 $ 113,599.92
UTILITIES $ 14,000.00 $ 17,343.46
SUPPLIES $ 2,588.00 $ 4,976.94
PROFESSIONAL FEES $ 6,000.00 $ 6,195.00
TOTALS $ 198.034.00 $ 230,133 07
Elgin Recreation Center
1080 E. Chicago St.
Elgin, IL 60120
Profit & Loss Statement
1/18/01 January 2000 through December 2000
9:48:53 AM
This Year Last Year $ Difference % Difference
Income
Donations
Church Donations $0.00 $1,743.00 ($1,743.00) (100.0%)
Corporate Donations $850.00 $500.00 $350.00 70.0%
Other Donations $2,225.00 $12,550.00 ($10,325.00) (82.3%)
Total Donations $3,075.00 $14,793.00 ($11,718.00) (79.2%)
Activities Income
SAFE SUMMER $800.00 $450.00 $350.00 77.2%
KIDS &YOUTH TRIPS $570.90 $0.00 $570.90 NA
Kung Fu Lessons $0.00 $1,000.00 ($1,000.00) (100.0%)
Boxing Lessons $4,595.00 $4,548.50 $46.50 1.0%
YOUTH SOCCER $0.00 $650.00 ($650.00) (100.0%)
Basketball Fees $1,350.00 $6,385.59 ($5,035.59) (78.9%)
GYM DAILY $58,994.74 $67,140.61 ($8,145.87) (12.1%)
Total Activities Income $66,310.64 $80,174.70 ($13,864.06) (17.3%)
Concessions
Food & Drink Concessions $22,183.92 $29,635.40 ($7,451.48) (25.1%)
Total Concessions $22,183.92 $29,635.40 {$7,451.48) (25.1%)
City of Elgin Grant $204,986.18 $182,200.01 $22,786.17 12.5%
Other Grants $30,514.78 $57,497.16 ($26,982.38) (46.9%)
UNITED WAY GRANT $9,907.13 $0.00 $9,907.13 NA
Youth Fund $306.00 $1,278.00 ($972.00) (76.1%)
Other Fund $10.00 $1,818.80 ($1,808.80) (99.5%)
Game Income $2,724.65 $4,807.01 ($2,082.36) (43.3%)
RENTAL INCOME $3,720.00 $10,008.04 ($6,288.04) (62.8%)
Miscellaneous Income -
Phone Income $308.54 $868.87 ($560.33) (64.5%)
REIMBURSTMENT $6,058.38 $708.65 $5,349.73 754.9%
Total Income $350,105.22 $383,789.64 ($33,684.42) (8.8%)
Cost of Sales
Gross Profit $350,105.22 $383,789.64 ($33,684.42) (8.8%)
Expenses
Licenses Fees $0.00 $680.00 ($680.00) (100.0%)
CONCESSION INVENTORY STOCK $15,648.11 $16,118.27 ($470.16) (2.9%)
Maintenace Supplies $4,842.86 $3,042.06 $1,800.80 59.2%
Building/Equip. Repair/Maint $17,212.51 $14,733.12 $2,479.39 16.8%
Dep'n - Equip& Leasehold $18,513.00 $20,196.00 ($1,683.00) (8.3%)
Dep'n • Furniture& Fixtures $555.30 $111.06 $411.24 400.0%
ERC EXPENSES $1,699.11 $6,1040.14 ($4,341.03) (71.9%)
KIDS &YOUTH FIELD TRIPS $2,292.65 $0.00 $2,292.65 NA
UNITED WAY YOUTH EXPENSE $2,292.69 $0.00 $2,292.69 NA
YOUTH ACTIVIES $3,637.86 • $6,868.56 ($3,230.70) (47.0%)
Boxing Commission $1,732.50 $2,570.25 ($837.75) (32.6%)
Boxing Supplies $809.76 $1,765.05
Basketball Supplies $1,628.00 $9,724.00 ($8,096.00) (83.3%)
MAINTENCE EMPLOYEES $10,262.39 $10,641.36 ($378.97) (3.6%)
Office Supplies $1,131.54 $4,034.80 {$2,903.26) (72.0%)
COPIER EXPENSE
$1,574.76 $0.00 $1,574.76 NA
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Elgin Recreation Center
Profit & Loss Statement
1/18/01 January 2000 through December 2000
9:48:53 AM
This Year Last Year $ Difference % Difference
Computer Supplies $17,214.09 $1,640.52 $15,573.57 949.3%
Computer Technical Support $0.00 $393.75 ($393.75) (100.0%)
DSL INTERNET LINE $1,623.27 $0.00 $1,623.27 NA
Grant
Soccer Coach $2,923.00 $1,723.00 $1,200.00 69.6%
PROGRAM SUPPLIES $2,993.47 $3,192.26 ($198.79) (6.2%)
Summer Supplies $1,883.72 $2,212.77 ($329.05) (14.9%)
Soccer Asst. $8,116.00 $5,428.00 $2,688.00 49.5%
Administravtive Staff $4,200.00 $15,300.00 ($11,100.00) (72.5%)
Arts &Crafts (ASP) $2,583.00 $4,559.14 ($1,976.14) (43.3%)
Tutor/AIDS $2,346.77 $5,706.50 ($3,359.73) (58.9%)
Basketball Coach $3,326.00 $7,306.35 ($3,980.35) (54.5%)
Computer Teacher $2,629.50 $1,660.50 $969.00 58.4%
Total Grant $31,001.46 $47,088.52 ($16,087.06) (34.2%)
Outreach Workers $11,634.00 $13,854.74 ($2,220.74) (16.0%)
SOCIAL WORKER $3,378.00 $0.00 $3,378.00 NA
SUMMER TEACHERS $6,720.00 $12,684.00 ($5,964.00) (47.0%)
MANAGERS PAYROLL $34,584.25 $30,140.04 $4,444.21 14.7%
PROGRAM LEADERS _ $7,338.00 $3,545.00 $3,793.00 107.0%
FRONT DESK $19,104.03 $14,342.75 $4,761.28 33.2%
ARTS & CRAFTS (SUMMER) $2,086.00 $672.00 $1,414.00 210.4%
ASP TEACHERS $1,110.50 $3,488.00 ($2,377.50) (68.2%)
Outside Services $8,701.34 $7,559.98 $1,141.36 15.1%
Meals and entertainment $1,097.04 $2,276.85 ($1,179.81) (51.8%)
Employees Remiburstment $325.13 $1,974.49 ($1,649.36) (83.5%)
Celluar PETTY CASHe $1,509.42 $812.59 $696.83 85.8%
$2,672.17 $0.00 $2,672.17 NA
Meeting or Conferences $793.00 $0.00 $793.00 NA
New Account $45.00 $0.00 $45.00 NA
Equipment Rental Expense
RENTAL EXPENSE $148.00 $2,007.95 ($1,859.95) (92.6%)
Insurance
Health Insurance $2,474.00 $1,785.00 $689.00 38.6%
Late Fees Paid $0.00 $7,873.21 ($7,873.21) (100.0%)
General &Liablity Insurance $12,030.20 $4,837.66 $7,192.54 148.7%
Professional Services
Legal &Accounting $6,195.00 $6,539.99 ($344.99) (5.3%)
Payroll Service/Advantage $1,238.77 $2,643.55 ($1,404.78) (53.1%)
Bank Charges $60.00 $197.00 ($137.00) (69.5%)
Total Professional Services $7,493.77 $9,380.54 ($1,886.77) (20.1%)
Total Payroll
Payroll $4,299.56 $0.00 $4,299.56 NA
NETPAY $175.89 $0.00 $175.89 NA
Payroll Taxes $10,601.32 $10,981.67 ($380.35) (3.5%)
Postage& Shipping $110.70 $0.00 $110.70 NA
Rent $98,046.44 $106,200.00 ($8,153.56) (7.7%)
Telephone $5,709.59 $4,874.63 $834.96 17.1%
Utilities
Gas $3,346.19 $4,475.04 ($1,128.85) (25.2%)
Electricity $10,430.08
$10,5C2.42 ($72.34) (0.7%)
Water $0.00 $237.00 ($237.00) (100.0%)
Trash Removal $1,381.00 $1,353.56 $27.44 2.0%
Vehicles & Maintenance $0.00 $311.10 ($311.10) (100.0%)
Elgin' Recreation Center
Profit & Loss Statement
1/18/01 January 2000 through December 2000
9:48:54 AM
This Year Last Year $ Difference % Difference
School Reimburstment $0.00 $111.00 ($111.00) (100.0%)
Total Expenses $391,016.48 $401,928.68 ($10,912.20) (2.7%)
Operating Profit ($40,911.26) ($18,139.04) ($22,772.22) 125.5%
Other Income
Interest Income $0.00 $2.16 ($2.16) (100.0%)
Total Other Income $0.00 $2.16 ($2.16) (100.0%)
Other Expenses
Interest Expense $0.00 $410.58 ($410.58) (100.0%)
Total Other Expenses $0.00 $410.58 ($410.58) (100.0%)
Net Profit/ (Loss) ($40,911.26) ($18,547.46) ($22,363.80) 120.6%
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ELGIN RECREATION CENTER, INC.
Audited Financial Statements
Years ended December 31, 1999 and 1998
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CONTENTS
Page
Independent Auditor's Report I
Statement of Assets, Liabilities and Net Assets
Arising From Cash Transactions 2
Statement of Activities (Cash Basis) and
Changes in Net Assets 3
Statement of Functional Expenses 4
Statement of Cash Flows 5
Notes to Financial Statements 6-9
MICHAEL C. WALSH & ASSOCIATES, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
Michael C. Walsh, C.P.A. 1595 Weld Road
Brenda L. Reynolds, C.P.A. Elgin, IL 60123
(847) 695-2700
INDEPENDENT AUDITORS' REPORT 200 Hillcrest Avenue
Yorkville. IL 60560
(630) 553-6566
The Board of Directors
Elgin Recreation Center, Inc.
Elgin, Illinois 60120
We have audited the accompanying statement of assets, liabilities, and net assets-cash
basis of Elgin Recreation Center, Inc. as of December 31, 1999 and 1998, and the related
statements of activities-cash basis, functional expenses and cash flows for the years then
ended. These financial statements are the responsibility of the Organization's
management. Our responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our
opinion.
As described in note 1, these financial statements were prepared on the cash basis of
accounting, which is a comprehensive basis of accounting other than generally accepted
accounting principles.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the assets, liabilities and net assets of Elgin Recreation Center, Inc. as of
December 31, 1999 and 1998, and the revenue received and expenditures disbursed for
the year then ended on the basis of accounting described in Note 1.
Elgin, Illinois
May 24, 2000
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ELGIN RECREATION CENTER, INC.
Statement of Assets, Liabilities and Net Assets Arising From Cash Transactions
December 31, 1999 and 1998
ASSETS Permanently 1999 1998
Unrestricted Restricted Total Total
Current Assets:
Cash and cash equivalents $ 29,071 - 29,071 32,333
Grants receivable(Note 1) 13,136 - 13,136 -
Total current assets 42,207 - 42,207 32,333
Equipment and Leasehold Improvements:
Leasehold improvements - 44,732 44,732 44,732
Equipment - 119,151 119,151 111,519
Less accumulated depreciation - (57,962) (57,962) (35,096)
- 105,921 105,921 121,155
Other assets:
Security deposit 6,000 - 6,000 6,000
$ 48,207 105,921 154,128 _ 159,488
LIABILITIES AND NET ASSETS
Current Liabilities:
Payroll taxes and accrued expenses $ 210 - 210 1,075
Current maturities of Long-term debt - 1,023 1,023 -
Loans payable (Note 2) - - - -
Total current liabilities 210 1,023 1,233 1,075
Long-term debt(Note 2) - 967 967 -
Net Assets:
Unrestricted 47,997 - 47,997 37,258
Permanently restricted - 103,931 103,931 121,155
Total net assets 47,997 103,931 151,928 158,413
$ 48,207 105,921 154,128 159,488
The accompanying notes are an integral part of the financial statements.
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ELGIN RECREATION CENTER, INC.
Statement of Activities and Changes in Net Assets (Cash Basis)
For The Year Ended December 31, 1999 and 1998
Permanently 1999 1998
Unrestricted Restricted Total % Total
Revenue Collected:
Game and Concession Income $ 33,302 - 33,302 8.4 34,223 10.4
Donations 15,882 - 15,882 4.0 5,900 1.8
Fees 102,954 - 102,954 26.0 69,363 21.0
Rental Income 9,800 - 9,800 2.5 12,700 3.8
Other Income 1,691 - 1,691 0.4 309 0.1
Grant - City of Elgin 196,869 - 196,869 49.8 208,091 62.9
Grants -other 35,000 - 35,000 8.8 - -
Total Income 395,498 - 395,498 100.0 330,586 100.0
Cost of Sales: - -
Purchases of Concessions 18,723 - 18,723 4.7 17,794 5.4
Gross Margin 376,775 - 376,775 95.3 312,792 94.6
Administrative Costs: - -
Program Supplies 26,363 - 26,363 6.7 7,032 2.1
Direct Labor 139,458 - 139,458 35.3 96,971 29.3
Administrative Expenses 13,454 - 13,454 3.4 19,441 5.9
Insurance 8,357 - 8,357 2.1 4,778 1.4
Office Expense and Postage 7,262 - 7,262 1.8 5,419 1.6
Professional Fees 7,565 - 7,565 1.9 5,169 1.6
Rent 107,733 - 107,733 27.2 103,133 31.2
Repairs and Maintenance 17,883 - 17,883 4.5 7,765 2.3 C,
Rubbish Removal 988 - 988 0.2 1,340 0.4
Payroll Taxes 11,380 - 11,380 2.9 8,012 2.4 .i j
Telephone 4,171 - 4,171 1.1 2,778 0.8 .I
Utilities 14,977 - 14,977 3.8 15,737 4.8
Total Administrative Costs 359,591 - 359,591 90.9 277,575 84.0
Income (Loss) from Operations 17,184 - 17,184 4.3 35,217 10.7
Interest Expense 410 393 803 0.2 (226) (0.1)
Depreciat an.Expense - 22,866 22,866 5.8 (21,878) (6.6)
Net Change in Assets 16,774 (23,259) (6,485) (1.6) 13,113 4.0
Net Assets, January 1 37,258 121,155 158,413 145,300
Loan proceeds for fixed assets 2,983 (2,983) -
Loan payments for fixed assets (1,386) 1,386 -
Fixed Asset Additions (7,632) 7,632 - -
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Net Assets, December 31 $ 47,997 103,931 151,928 158,413 ,
The accompanying notes are an integral part of the financial statements.
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ELGIN RECREATION CENTER, INC.
Statement of Functional Expenses
For The Year Ended December 31, 1999 and 1998
1999 1998
Program General and Total Total
Services Administrative Expenses Expenses
Expenses:
Program Supplies and Expenses $ 26,363 - 26,363 7,032
Direct Labor 139,458 - 139,458 96,971
General Administrative Expenses 10,090 3,364 13,454 19,441
Insurance 1,785 6,572 8,357 4,778
Office Expense and Postage 5,447 1,815 7,262 5,419 •
Professional Fees 5,674 1,891 7,565 5,169
Rent 96,960 10,773 107,733 103,133
Repairs and Maintenance 16,095 1,788 17,883 7,765
Rubbish Removal 889 99 988 1,340
Payroll Taxes 11,380 - 11,380 8,012 t
Telephone 3,128 1,043 4,171 2,778 .
Utilities 13,479 1,498 14,977 15,737
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Total Expenses Before Interest
and Depreciation 330,748 28,843 359,591 277,575
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Interest Expense 803 - 803 226
Depreciation Expense 22,866 - 22,866 21,878 ''-,
Total Expenses $ 354,417 28,843 383,260 299,679 r`
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. The accompanying notes are an integral part of the financial statements.
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ELGIN RECREATION CENTER, INC.
Statement of Cash Flows
For The Year Ended December 31, 1999 and 1998
1999 1998
Cash provided by operations:
Change in net assets $ (6,485) 13,113
Add: Expenditures not requiring an outlay of cash:
Depreciation 22,866 21,878
Increase (Decrease)in non-cash components of working capital:
(Increase) Decrease in Grants receivable (13,136) -
Increase (Decrease) in payroll taxes payable
and accrued expenses (865) (1,189)
Cash provided by operations 2,380 33,802
Capital investment activities:
Purchase of equipment and leasehold improvements (4,649) (6,208)
Total capital investment (4,649) (6,208)
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nancing activities:
Payment of debt (993) (7,195)
Total financing (993) (7,195)
Increase in cash (3,262) 20,399
Cash and cash equivalents, January 1 32,333 11,934
Cash and cash equivalents, December 31
29,071 32,333
� II
Supplemental information:
Interest paid - $803
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The accompanying notes are an integral part of the financial statements.
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ELGIN RECREATION CENTER, INC.
l Notes to Financial Statements
For The Year Ended December 31, 1999
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Background
Elgin Recreation Center, Inc.is a not-for-profit Corporation which provides youth service
to inner city youth and young adults. A summary of the significant accounting policies of
the agency is presented below to assist the reader in evaluating the accompanying
financial statements.
Basis of Accounting
The agency maintains their accounting records on the cash basis of accounting where
revenues are recorded when received and expenditures are recorded when paid. This
method of accounting does not reflect the Agency's statement of Financial Position and
Statement of Activities in accordance with generally accepted accounting principles.
Equipment and Leasehold Improvements
Equipment and Leasehold Improvements are recorded at cost. Depreciation is provided
using the straight line method of accounting over a useful life of seven years. For the
year ended December 31, . 1999 and 1998 depreciation of $22,866 and $21,878
respectively was reflected as an expenditure in the accompanying Statement of Activities.
Fixed Asset Balance Balance
Summary 01/01/1999 Increase Decrease 12/31/1999
Leasehold Impr. 44,732 - - 44,732
Equipment 111,519 7,632 - 119,151
156,251 7,632 - 163,883
Accum. Depn. (35,096) (22,866) - (57,962)
Book Value 121.155 (15,670) - 105,921
Tax Status
The Agency was granted exempt status by the Internal Revenue Service under code
section 501(c)(3) and accordingly, no provision for income taxes is reflected in the
accompanying financial statements.
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ELGIN RECREATION CENTER, INC.
Notes to Financial Statements (Cont'd)
For The Year Ended December 31, 1999
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Financial Statement Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities at the date of the financial statements and
reported amounts of revenues and expenses during the reported period. Actual results
could differ from those estimates.
Cash and Cash Equivalents
The Agency considers all highly liquid investments with a maturity of three months or
less when purchased to be cash equivalents. Cash and cash equivalents for purposes of
the statement of cash flows exclude permanently restricted cash and cash equivalents.
The Agency does not have permanently restricted cash.
Support and Revenue
Elgin Recreation Center, Inc.'s primary funding source is a grant from the City of Elgin
totaling $196,869 for 1999 and $208,091 for 1998. At December 31, 1999 the City of
Elgin owed the agency$13,136 kr utility expenses incurred during 1999.
Fair Value of Financial Instruments
At December 31, 1999, the carrying value of financial instruments such as cash,
certificate of deposit and accounts receivable, approximated their fair value.
Functional Allocation of Expenses
The costs of providing various programs and other activities have been summarized on a
functional basis in the statement of activities. Accordingly, certain costs have been
allocated amo
ng the �'ro ams and supporting services benefited.
P
Risk Management
Significant losses are covered by commercial insurance. There have been no significant
reductions in insurance coverage. Settlement amounts, if any, have not exceeded
insurance coverage for the current year or three prior years.
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ELGIN RECREATION CENTER, INC.
1 Notes to Financial Statements (Cont'd)
For The Year Ended December 31, 1999
NOTE 2 —LOAN PAYABLE & LONG-TERM DEBT
In 1999 the Agency purchased a telephone system on credit. The equipment cost $2,923.
Monthly payments of $117 (including interest) are paid on the lease purchase
arrangement over a 36 month period. The balance due at December 31, 1999 is $1,990.
The amount expected to be paid on the principal in the next twelve months is $1,023 and
is characterized as current portion of long-term debt.
NOTE 3 —RELATED PARTIES
In 1997, the Agency split into two entities — Elgin Recreation Center, Inc. and God's
Gym. Elgin Recreation Center, Inc. operates the recreational programs such as weight
training, soccer, etc. God's Gym provides spiritual and religious services and programs.
Both Agencies will operate within the same building; however, each will have separate
area of responsibility and separate Board of Directors. God's Gym will pay rent to Elgin
Recreation Center, Inc.
NOTE 4—OPERATING LEASE
Elgin Recreation Center, Inc. entered into a lease on September 1, 1995 for the premises
located in the upper level of the building at 1080 E. Chicago Street, Elgin, IL. The
Center will occupy 20,000 square feet. The term of the lease is five years ending August
31, 2000. The lease required a security deposit of$6,083.33 of which $6,000.00 has been
paid.
Lease Obligation
Lease Year Annual Base Rent Monthly Installment
9/1/95 to 8/31/96 63,874.97 6,083.33
9/1/96 to 8/31/97 97,200.00 8,100.00
9/1/97 to 8/31/98 101,600.04 8,466.67
9/1/98 to 8/31/99 106,200.00 8,850.00
9/1/99 to 8/31/00 110,799.96 9,233.33
Elgin Recreations Center, Inc. is required to pay insurance, maintenance, and utility cost
during the term of the lease.
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IELGIN RECREATION CENTER, INC.
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Notes to Financial Statements (Cont'd)
For The Year Ended December 31, 1999
NOTE 4 —OPERATING LEASE (CONT'D)
During the calendar years 1999 and 1998, Elgin Recreation Center, Inc. acquired a grant
from the City of Elgin in which $107,733 and$108,796 respectively was paid directly to
the landlord for rent and utilities as follows:
1998
Rent - Jan 98 - Aug 98 (8 x $8,466.67) $ 67,733
Sept 98 -Dec 98 (8 x$8,850.00) 35,400
Utilities 5,663
$ 108,796
1999
• Rent- Jan 99 -Aug 99 (8 x $8,850.00) $ 70,800
Sept 99 - Dec 99 (4 x$9,233.33) 36,933
Utilities -
$ 107,733
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