Audit MBAC 07

...................................................................................................................... MONTANA BUSINESS ASSISTANCE CONNECTION, INC. Audited Financial Statements For Years Ended December 31, 2007 and 2006 ...................................................................................................................... Prepared by Wayne E. Hintz, PSC Certified Public Accountant  MONTANA BUSINESS ASSISTANCE CONNECTION, INC. Helena, Montana TABLE OF CONTENTS Board of Directors .................................................................................................................Page 1 Independent Auditor's Report ...............................................................................................Page 2 Statement of Financial Position ............................................................................................Page 3 Statement of Activities and Changes in Net Assets ..............................................................Page 4 Statement of Cash Flows ......................................................................................................Page 5 Notes to Financial Statements ...............................................................................................Page 6-10 Supplemental Information ....................................................................................................Page 11 Statement of Activities – Budget and Actual – 2007 ............................................................Page 12 Statement of Activities – Budget and Actual – 2006 ............................................................Page 13 Statement of Expense Allocations ........................................................................................Page 14-15 Report On Compliance And On Internal Control Over Financial Reporting Based On An Audit Of Financial Statements Performed In Accordance With Government Auditing Standards ..................................................................................Page 16 Report on Prior Years Audit Comments................................................................................Page 17  MONTANA BUSINESS ASSISTANCE CONNECTION, INC. Helena, Montana BOARD OF DIRECTORS January 1, 2007 - December 31, 2007 President Bob Fusie Vic Prsident KathyErnst Treasurer Tony Murnion Secretary Mike Mundt ast President Eric Shindler Meagher County Commissioner Director Jame Doggett Broadwater County Commissioner Director Jim Hohn City of Helena Commissioner Alan Puera Lewis & Clark County Commissioner Mike Murray of Townsend Mary Alice Upton East Helena Anthony Strainer of Tim Burton Lewis & Clark County Ron Alles Elected Members: Sheila Hogan Pat Schlauch Michelle Steele Howard Skjervem Lisa Cordingly John Grant C. W. “Skip” Hatveldt Mark Huber Hal Jacobson Steve Mandeville Patrick E. Melby Bruce Messinger Ron Merc Jim Maierl Terry Myhre Thomas J.Trebon, Ph.D. ick Hays Gary Be Spalinger Linda Kindrick Mignon Waterman Dave Gallik Jim Cotril im Solheim Daniel Bingham Andy Fitzghugh im Stipch Mike Grove Montana Business Assistance Connection, Inc. - 1  INDEPENDENT AUDITOR'S REPORT Board of Directors Montana Business Assistance Connection, Inc. Helena, Montana 59601 I have audited the accompanying financial statements of Montana Business Assistance Connection, Inc. (a nonprofit organization) as of December 31, 2007 and 2006, as listed in the table of contents. These financial statements are the responsibility of Montana Business Assistance Connection, Inc.’s management. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that I 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 presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion, the financial statements referred to above, present fairly, in all material respects, the financial position of Montana Business Assistance Connection, Inc. as of December 31, 2007 and 2006, and the changes in net assets and cash flows for the years then ended in conformity with generally accepted accounting principles accepted in the United States of America. In accordance with Government Auditing Standards, I have also issued my report dated February 9, 2008 on my consideration of Montana Business Assistance Connection, Inc.’s internal control over financial reporting and my tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of my testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered is assessing the results of my audit. Wayne E. Hintz, PSC, CPA Helena, Montana February 9, 2008 Montana Business Assistance Connection, Inc. - 2  MONTANA BUSINESS ASSISTANCE CONNECTION, INC. Helena, Montana STATEMENT OF FINANCIAL POSITION December 31, 2007 and 2006 2007 2006 ASSETS CURRENT ASSETS: Cash and Cash Equivalents $ 1 ,132,822 $ 788,302 Funded Loan Loss Reserve 5 8,390 49,839 Accounts Receivable 7 1,126 47,247 Accrued Interest Receivable 5 3,003 44,375 Prepaid Assets 4,255 - Current Portion Loans Receivable 1 ,051,413 771,806 Total Current Assets 2 ,371,008 1,701,569 PROPERTY, PLANT AND EQUIPMENT: Land 67 ,500 67,500 Building 443 ,152 443,152 Other 32,200 8,381 542,852 519,033 Accumulated Depreciation (191,515) (176,939) 351 ,337 342,094 OTHER ASSETS: Loans Receivable (Net of Current Portion above) 4 ,335,580 3,830,834 Loan Loss Reserve (221,805) (165,975) 4 ,113,775 3,664,859 TOTAL ASSETS $ 6,836,120 $ 5,708,522 LIABILITIES AND NET ASSETS CURRENT LIABILITIES: Accounts Payable $ 2 6,369 $ 30,689 Accrued Expenses 8,802 10,918 Current Portion-Loans Payable 193 ,266 96,765 228 ,437 138,372 LONG TERM LIABILITIES: Deferred Revenue - DEQ Buydown 929 1,360 Loans Payable 3 ,770,568 3,297,952 TOTAL LIABILITIES 3,999,934 3,437,684 NET ASSETS Temporarily Restricted 179,785 182,035 Unrestricted 2,656,401 2,088,803 TOTAL NET ASSETS 2,836,186 2,270,838 TOTAL LIABILITIES AND NET ASSETS $ 6,836,120$ 5,708,522 Montana Business Assistance Connection, Inc. - 3  MONTANA BUSINESS ASSISTANCE CONNECTION, INC. Helena, Montana STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS For The Years Ended December 31, 2007 and 2006 2007 2006 PUBLIC SUPPORT AND REVENUES RECEIVED Grant Revenue $ 579,551 $ 82,747 Membership Dues 55,833 29,050 Rent & Utility Income75,31061,451 Contributions 3,972 3,750 In-Kind Contributions 97,200 79,506 Economic Development Services/Administration 367,030 358,306 Loan Origination fees and Closing Costs 40,851 38,158 Interest Income 431,263 344,263 Miscellaneous Income - 1,101 Total Revenue 1,651,010 998,332 EXPENSES: Program Expense Micro Business Development Corporation 102,071 147,848 Small Business Deve 101,808 104,110 Helena Revolving Loan Fund 67,940 53,211 Broadwater Revolving Loan Fund36,23546,134 Lewis & Clark Revolving Loan Fund 18,512 33,727 USDA Intermediary & Revolving Loan Fund #118,88517,779n & Loan Fund #2 57,186 45,247 Wildfire 2,07915,465 DEQ Revolving Loan Fund 19,330 13,288 Board of Investments39,85738,274 Bonvestments II 9,917 - MBAC, Inc. Revolving Loan Fund 55,214 50,582 EDA Revolving Loan Fund59,241 Building 51,799 44,560 Economic Development Services/Administration 445,588 401,703 TOTAL EXPENDITURES 1,085,662 1,011,928 CHANGE IN NET ASSETS 565,348 (13,596) Net Assets - Beginning of Year 2,270,838 2,284,434 Net Assets - End of Year $ 2,836,186 $ 2,270,838 Montana Business Assistance Connection, Inc. - 4  MONTANA BUS