THE ANTIQUARIAN LANDMARKS SOCIETY, INC. CONNECTICUT LANDMARKS INDEPENDENT REPORT AND FINANCIAL STATEMENTS MARCH 31, 2013 AND 2012 THE ANTIQUARIAN LANDMARKS SOCIETY, INC. d/b/a CONNECTICUT LANDMARKS Contents March 31, 2013 and 2012 Independent Auditors? Report 1 Statements of Financial Position 2 Statements of Activities 3 Statement of Functional Expenses 4 - 5 Statements of Cash Flows 6 Notes to Financial Statements 7 - 16 WHITTLESEY HADLEY, RC. ?12 Certi?ed Public Accountants/Consultants 147 Charter Oak Avenue Hartford, Connecticut 06106 INDEPENDENT AUDITORS REPORT 8 60. 522.3 1 11 (voice) To the Board of Trustees of 3605244475 (fax) The Antiquarian and Landmarks Society, Inc. d/b/a Connecticut Landmarks We have audited the accompanying ?nancial statements of The Antiquarian and Landmarks Society, Inc. dfbfa Connecticut Landmarks, which comprise the statement of ?nancial position as of March 31, 2013, and the related statements of activities, ?mctional expenses, and cash flows for the year then ended, and the related notes to the ?nancial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these ?nancial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these ?nancial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the ?nancial statements. The procedures selected depend on the auditor?s judgment, including the assessment of the risks of material misstatement of the ?nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the ?nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the ?nancial statements. We believe that the audit evidence we have obtained is suf?cient and appropriate to provide a basis for our audit Opinion. Opinion In our opinion, the ?nancial statements referred to above present fairly, in all material respects, the ?nancial position of The Antiquarian and Landmarks Society, Inc. d/b/a Connecticut Landmarks as of March 31, 2013, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Report on Summarized Comparative Information We have previously audited The Antiquarian and Landmarks Society, Inc.?s 2012 ?nancial statements, and our report dated June 20, 2012, expressed an unr?odi?ed opinion on those audited ?nancial statements. In our opinion, the summarized comparative information presented herein as of and for the year ended March 31, 2013, is consistent, in all material respects, with the audited ?nancial statements from which is has been derived. W7 747%244, ?c June 19, 2013 THE ANT IQUARIAN LANDMARKS SOCIETY, INC. d/b/a CONNECTICUT LANDMARKS Statements of Financial Position March 31, 2013- (with comparative totals for 2012) Assets: Cash and equivalents Marketable securities, at market value Grants and accounts receivable Prepaid expenses Bene?cial interest in trusts Property and equipment, net Total assets Liabilities and Net Assets: Liabilities: Accounts payable and accrued expenses Net-assets: Unrestricted: Designated by Board for endowment purposes Designated for property and equipment Undesignated Total unrestricted Temporarily restricted Permanently restricted Total net assets Total liabilities and net assets The accompanying notes are an integral part of the ?nancial statements 2 2013 2012 1,087,632 1,230,190 10,442,277 10,092,899 140,952 273,391 24,639 23,701 3,021,745 2,927,007 14,825 12,395 14,732,070 14,559,583 77,934 72,871 6,538,648 6,330,802 14,825 12,395 441,885 461,851 6,995,358 6,805,048 3,614,363 3,732,013 4,044,415 3,949,651 14,654,136 14,486,712 14,732,070 14,559,583 THE ANTIQUARIAN LANDMARKS SOCIETY, INC. d/b/a CONNECTICUT LANDMARKS Statements of Activities For the year ended March 31, 2013 (with comparative totals for the year ended March 31, 2012) 2013 2012 Temporarily Permanently Unrestricted Restricted Restricted Total Total Operating revenues: Investment return designated for current operations 8 377,922 - - 377,922 379,938 Bene?cial trust distributions 100,103 - - 100,103 127,599 Ferriday fund 127,500 - - 127,500 127,500 Contributions grants 186,284 72,671 258,955 155,986 Restoration/renovations investment distributions 23,905 74,304 - 98,209 73,728 Restoration/renovations contributions grants - 391,303 - 391,303 617,703 Special event programs (net of expenses) 20,255 5,000 - 25,255 12,542 Admissions sales 75,297 - - 75,297 56,298 Overseer payments 32,868 - - 32,868 27,714 Membership dues 12,480 - - 12,480 13,957 Interest and other income 1,349 - - 1,349 41,399 De?accession income 500 - 500 - Net assets released ?orn restrictions 785,509 (785,509) - - Total operating revenues 1,743,472 (241,731) - 1,501,741 1,63 4,364 Operating expenses: Museum services 818,720 - - 818,720 709,761 Restoration and renovation 650,562 - - 650,562 530,327 Administration 154,884 - - 154,884 144,629 Fundraising 145,392 - - 145,392 108,157 Total operating expenses 1,769,558 - - 1,769,558 1,492,874 Change in net assets from operations (26,086) (241,731) - (267,817) 141,490 Other changes in net assets: Investment return, less amounts designated for current operations 225,273 124,080 - 349,353 (283,817) Net change in market value of_bene?cial interest in trusts - 94,765 94,765 (94,736) Depreciation (8,877) - - (8,877) (8, 828) Net other changes in net assets 216,396 124,080 94,765 435,241 (387,381) Total change in net assets 190,310 (117,651) 94,765 167,424 (245,891) Net assets, beginning of year 6,805,048 3,732,014 3,949,650 14,486,712 14,732,603 Net assets, end ofyear 6,995,358 3,614,363 4,044,415 14,654,136 14,486,712 The accompanying notes are an integral part of the ?nancial statements 3 THE ANTIQUARIAN LANDMARKS SOCIETY, INC. dfbla CONNECTICUT LANDMARKS Statement of Functional Expense For the year ended March 31, 2013 Salaries and bene?ts Personnel costs Staff travel Insurance Professional Legal Of?ce rent Of?ce Postage Promotion and publicity Newsletter Education programs Collection care and management Building and grounds maintenance Utilities Security Real estate taxes Capital projects Totals Program Services Museum Restoration Services Renovation Administration 8 431,507 41,368 111,064 5,438 - 1,832 20,692 - 610 59,172 - 2,632 32,085 - 26,338 194 - 856 30,135 - 5,61 1 24,315 - 3,799 2,820 - 258 22,21 1 - 10,498 - 48,879 - - 5,405 - - 53,387 443,189 - 60,798 - 1,884 6,185 - - 4,999 - - 166,005 154,884 818,720 3 650,562 3 The accompanying notes are an integral part of the ?nancial statements Fundraising 109,3 69 745 1,438 238 10,727 6,239 8,444 649 5,413 145,392 Total 693,308 3,015 22,740 62,042 69,150 1,050 41,935 36,558 3,727 27,624 10,493 48,879 5,405 496,576 64,312 6,185 4,999 166,005 1,769,558 THE ANTIQUARIAN LANDMARKS SOCIETY, INC. dlbla CONNECTICUT LANDMARKS Statement of Functional Expense For the year ended March 31, 2012 Salaries and bene?ts Personnel costs Staff travel Insurance Professional Legal Office rent Of?ce Postage Promotion and publicity Newsletter Education programs Collection care and management Building and grounds maintenance Utilities Security Real estate taxes Capital proj ects Totals Program Services Museum Restoration 86 Services Renovation Administration undraising 375,184 43,258 96,463 83,229 6,683 - 2,289 921 22,364 - 660 1,555 59,203 2,717 303 10,314 - 21,538 3,448 2,445 10,797 - 30,135 - 5,611 6,239 16,005 - 2,526 5,175 2,759 251 635 18,885 - - 4,631 5,766 - 24,225 - - 877 - 74,888 454,779 52,499 - 1,777 2,021 5,895 - - 1,634 - - 32,290 - 709,761 53 0,327 144,629 108,157 The accompanying notes are an integral part of the ?nancial statements Total 598,134 9,893 24,579 62,223 35,300 13,242 41,985 23,706 3,645 23,516 5,766 24,225 877 529,667 56,297 5,895 1,634 32,290 1,492,874 THE ANTIQUARIAN LANDMARKS SOCIETY, INC. d/b/a CONNECTICUT LANDMARKS Statements of Cash Flows For the year ended March 31, 2013 (with comparative totals for the year ended March 31,2012) Cash ?ows from operating activities: Change in net assets Adjustments to reconcile change in net assets to net change in cash from operating activities: Unrealized and realized losses/(gains) on investments Depreciation Increase/decrease in: Prepaid expenses Grants and accounts receivable Accounts payable and accrued expenses Net change in cash from operating activities Cash flows from investing activities: Purchases of ?xed assets Sales of marketable securities Purchases of marketable securities Net change in cash from investing activities Change in cash Cash and equivalents, beginning of year Cash and equivalents, end of year 2013 2012 167,424 (245,891) (695,266) 64,597 8,877 8,828 (938) 988 132,439 (71,083) 5,063 25,021 (382,401) (217,540) (11,307) (9,700) 7,478,845 9,563,947 (7,227,695) (9,249,991) 239,843 304,256 (142,558) 86,716 1,230,190 1,143,474 1,087,632 ?8 1,230,190 The accompanying notes are an integral part of the ?nancial statements 6 THE ANTIQUARIAN LANDMARKS SOCIETY, INC. dlb/a CONNECTICUT LANDNIARKS Notes to Financial Statements March 31, 2013 and 2012 NOTE 1 SIGNIFICANT ACCOUNTING POLICIES Operations - The Society, d/b/a Connecticut Landmarks, maintains and conserves twelve historic properties in Connecticut. Basis of Accounting - The ?nancial statements have been prepared on the accrual basis except for investment income, which is recorded as received. To the extent that current funds are used to ?nance non- historic capital assets, amounts so provided have been accounted for as expenditures. Financial Statement Presentation - Financial statement presentation follows the requirements of the Financial Statements of Not-for-Pro?t Organizations topic of the FASB Accounting Standards Codi?cation. Following these requirements, the Society is required to report information regarding its ?nancial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. Cash and Equivalents - The Society considers all highly liquid investments purchased with a maturity date of three months or less at the date of purchase to be cash equivalents. Unrestricted Net Assets - Unrestricted net assets are for the general activities of the Society. Temporarily Restricted Net Assets - Temporarily restricted net assets are gifts that are restricted by the donor for a speci?c purpose or income derived from permanently restricted net assets that is restricted by the donor for a speci?c purpose. The Society expends temporarily restricted net assets in accordance with the donor?s intent. Permanently Restricted Net Assets - Permanently restricted net assets represent gifts that are restricted for perpetuity by the donor and the Society?s interest in the Francis A. McCook, Anson T. McCook, Sumner Fuller, Mary Dana Wells 1988 Trusts, and the Arnold arid Mary Carlson and Hempsted Heritage Funds. Marketable Securities - Investments are stated at market value as of the end of the year. Endowment Assets and Investment Policies - The Society complies with Endowments of Notfor?Pro?t Organizations: Net Asset Classification of Funds Subject to an Enacted Version of the Uniform Prudent Management of Institutional unds Act, and Enhanced Disclosures for All Endowment Funds topic of the FASB Codi?cation. This topic provides guidance on the net asset classi?cation of donor-restricted endowment funds for not-for-profit organizations that IS subject to the Uniform Prudent Management of Institutional Funds Act of 2006 The Board of Directors of the Society have adepted spending policies for investment returns from the endowments to be utilized to support the annual operating activities of the Society. All spending policies are based on 5% of the previous twelve quarters average market value of the investments. Fair Value Measurements - The Society follows the Fair Value Measurements topic of the FASB Codi?cation, which de?nes fair value and establishes a framework for measuring fair value in generally accepted accounting principles. It de?nes fair value as the exchange price that would be received for an asset, or paid to transfer a liability (exit price) in principal, or most advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date. It also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs that may be used to measure fair values: NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Level 1 Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 - Signi?cant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 Signi?cant unobservable inputs that re?ect the Society?s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Valuation techniques based on unobservable inputs are highly subjective and require judgments regarding signi?cant matters, such as the amount and timing of future cash ?ows and the selection of discount rates that may appropriately re?ect market and credit risks Changes in these judgments often have a material impact on the fair value estimates. In addition, since these estimates are as of a speci?c point in time, they are susceptible to material near-term changes. Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at March 31, 2013 and 2012. Short term investments and equity funds are valued by reference to quoted market prices and other relevant information generated by market transactions. Historic Propertie The Society follows the Revenue Recognition topic of the FASB Codi?cation. In accordance with the topic, the Society does not capitalize the cost or appraisal value or the costs of restorations and renovations of any historic assets/properties or recognize them as revenues or gains. These assets/properties, which are signi?cant in value, have been acquired by the Society from bequests and subsequently restored. The topic provides that such donations need not be recognized if they are added to collections that are held for public exhibition, education, or research in furtherance of public service rather than ?nancial gain; are protected, kept unencumbered, cared for, and preserved. Proper_ty and Equipment - The Society owns computer software, furniture, and equipment, which are being depreciated using the straight-line method over a useful life of three and ?ve years, respectively. Acquisitions of of?ce equipment in excess of $2,500, real property in excess of $50,000, and repairs and improvements in excess of $10,000 are capitalized. Use of Estimates The preparation of ?nancial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the fmancial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Income Taxes The Society is exempt under Section 501(c)3 of the Intemal Revenue Code. The Society implemented the accounting guidance for uncertainty in income taxes. Tax positions initially need to be recognized in the ?nancial statements when it is more likely than not that the position will be sustained upon examination by tax authorities. As of March 31, 2013 and 2012, the Society has no uncertain tax positions that qualify for either recognition or disclosure in the ?nancial statements and believes that it has appropriate support for mcome tax positions taken in its tax returns. Currently, the Society?s federal information returns for ?scal years 2010- 2012 remain open to inspection by the IRS. Credit Risk - The Society maintains cash in bank accounts which, at times, may exceed federally insured limits, has not experienced losses in such accounts and believes it is not exposed to signi?cant credit risk. Commitments - Grants require the ful?llment of certain conditions as set forth in the instrument of the grant. Failure to ful?ll the conditions could result in the return of funds to grantors. Subsequent Events Measurement Date The Society monitored and evaluated any subsequent events for footnote disclosures or adjustments required in its ?nancial statements for year ended March 31, 2013 through June 19, 2013, the date on which ?nancial statements were available to be issued. NOTE 2 -- PROPERTIES The following is a listing of the properties that the Society maintains and conserves in Connecticut: Joshua Hempsted House New London, CT Buttolph-Williams House Wethers?eld, CT Nathan Hale Homestead Covently, CT Phelps-Hathaway House Su??ield, CT Amasa Day House Moodus, CT Butler-McCook Homestead Hartford, CT Nathaniel Hempsted House New London, CT Isham-Terry House Hartford, CT Forge Farm Stonington, CT The Hay (Bellamy-Ferriday Estate) Bethlehem, CT Palmer-Warner House East Haddam, CT Amos Bull House Hartford, CT NOTE 3 -- MARKETABLE SECURITIES Purchased by the Society, 1942 Purchased by the Society, 1942 Bequest of George Dudley Seymour, 1945 Gift of Claudine Fuller Ackroyd, Elizabeth Fuller Carter and Laurens Fuller Vinette, 1962 Bequest of Katherine Chaffee Roberts, 1967 Bequest of Frances A. and Anson T. McCook, 1971 Purchased by the Society, 1971 Bequest of Julia and Charlotte Isham, 1980 Bequest of Charles T. and Virginia Berry, 1982 Bequest of Caroline Ferriday, 1990 Gift of Howard Metzger, 1993 Gift of State of Connecticut, 2008 The spending policy is applied to the following endowment ?Jnds at March 31: Unrestricted Consolidated restricted Judith Dana Thorne Total 2013 2012 2,316,667 13 2,23 8,849 6,454,273 6,23 6,385 1,671,337 1,617,665 8 10,442,277 8 10,092,899 NOTE 3 MARKETABLE SECURITIES (CONTINUED) Marketable securities were comprised of the following at March 31: Stocks Bonds Short-term investments Total 2013 2012 C_os_1: Market Value _C_o_st Market Value 5,123,549 5,840,784 4,431,737 4,920,844 3,634,992 3 ,73 0,321 3,697,044 3,697,925 843,672 871,172 1,459,212 1,474,130 8 9,602,213 8 10,442,277 A summary of the Society?s investment return is presented below: Interest and dividends Realized gains/(losses) Unrealized gains/(losses) Total return on investments Less: Total used per operating spending policy capital spending policy Less: Amounts temporarily restricted Investment return, less amounts designated for current operations Interest and dividends Realized gains/(losses) Unrealized gains/(losses) Total return on investments Less: Total used per operating spending policy capital spending policy Less: Amounts temporarily restricted Investment return, less amounts designated for current operations 8 9,587,993 8 10,092,899 March 3 1, 2013 Temporarily Permanently Unrestricted Restricted Restricted 165,278 97,992 35,187 298,457 125,999 74,767 156,453 357,219 210,433 124,726 . 2,888 338,047 501,710 297,485 194,528 993,723 (276,43 7) (173,405) (99,763) (549,605) (74,304) - - (74,304) 150,969 124,080 94,765 369,814 74,304 - - 74,304 225,273 124,080 94,765 8 444,118 March 31, 2012 Temporarily Permanently Unrestricted Restricted Restricted To_ml 136,075 84,506 72,951 293,532 (19,840) (11,292) 132,620 101,488 6,881 (3,460) (169,506) (166,085) 123,116 69,754 36,065 228,935 (186,812) (289,875) (130,801) . (607,488) (73 ,728) - - (73,728) (13 7,424) (220,121) (94,73 6) (452,281) 73 ,728 - - 73,728 (63,696) (220,121) (94,736) (378,553) 10 NOTE 3 MARKETABLE SECURITIES (CONTINUED) The reconciliation of the Society?s endowment by net asset category is as follows: Temporarily Permanently Unrestricted Restricted Restricted Total March 31, 2011 6,394,499 2,959,574 4,044,386 13,398,459 Interest and dividends 186,872 1 16,328 91,238 394,43 8 Realized (loss) (19,840) (11,292) 98,470 67,33 8 Unrealized (loss) 6,881 (3,460) (169,506) (166,085) Contributions, grants and distributions - - - - Endowment distributions (267,282) (173,130) (130,544) (570,956) Net additions 80,469 (116,745) 33,892 (2,384) Investment fees (50,797) (31,822) (18,285) (100,904) March 31, 2012 8 6,330,802 2,739,453 3,949,651 13,019,906 Interest and dividends 217,771 129,269 62,799 409,839 Realized gain 125,999 74,766 154,452 3 55,217 Unrealized gain 210,433 124,725 2,888 33 8,046 Contributions, grants and distributions - - Endowment distributions (276,411) (173,404) (100,13 8) (549,953) Net additions (26) - 2,3 76 2,350 Investment fees (52,493) (31,277) (27,613) (1 1 1,383) March 31, 2013 6,556,075 2,863,532 4,044,415 13,464,022 NOTE 4 FAIR VALUE MEASUREMENTS Fair values of assets and liabilities measured on a recurring basis is as follows at March 31: 2013 Fair Value Level 1 Level 2 Level 3 Short-term investments 8 173,243 173,243 - Equity funds 10,269,034 10,269,034 - - 8 10,442,277 8 10,442,277 - 2012 Fair Value Level 1 Level 2 Level 3 Short?term investments 1,276,877 1,276,877 - - Equity funds 8,816,022 8,816,022 - - 8 10,092,899 8 10,092,899 - - All level II assets, which are comprised of U.S. Small Cap, Investment Grade Taxable Bond Funds and Real Estate Investment Trusts, is standard treatment for such ?mds. NOTE 5 BENEFICIAL INTEREST IN TRUSTS The Society is named as the bene?ciary of several trusts. For the years ended March 31, the Society received the following distributions from its bene?cial interest in trusts: 2013 2012 Market Value Distribution Market Value Distribution Anson Francis A McCook 2,138,843 67,826 2,072,957 94,119 McCook Trust Reserve 51,250 - 51,277 - Mary Dana Wells 1998 Trust 441,804 16,159 424,319 16,573 Sumner Fuller Trust 322,571 13,727 315,009 14,463 The Hempsted Heritage Fund 62,101 2,219 56,949 2,254 Arnold Mary Carlson 5,176 172 6,496 190 8 3,021,745 8 100,103 8 2,927,007 8 127,599 11 NOTE 5 BENEFICIAL INTEREST IN TRUSTS (CONTINUED) The Society received distributions for the following purposes for the years ended March 31: 2013 2012 For operations 8 100,103 117,231 For restorationlrenovations - 10,368 100,103 127,599 NOTE 6 FERRIDAY FUND - CHARITABLE TRUST The Society maintains and conserves The Hay (Bellamy-Ferriday Estate) received through the bequest of Caroline Feniday. Caroline Ferriday also established the Ferriday Fund Charitable Trust, from which the Society receives, upon the discretion of the Trustees, an annual distribution for the care, maintenance and preservation of the property. The Society received the following distributions for the years ended March 31: 2013 2012 For operations 8 127,500 127,500 For restoration/renovations - . 127,500 127,500 NOTE 7 PROPERTY AND EQUIPMENT Property and equipment was as follows as of March 31: 2013 2012 Computers and software 8 52,750 48,936 Furniture and equipment 36,144 28,651 88,894 77,587 Less: accumulated depreciation (74,069) (65,192) 14,825 12,395 NOTE 8 - DESIGNATED BY BOARD FOR ENDOWMENT The market value of the investments designated by the Board for endowment purposes, as a component of unrestricted net assets, was comprised of the following speci?c components as of March 31: 2013 201 2 Unrestricted Endowment (General Operations) 8 2,3 16,667 8 2,23 8,849 Margaret Fitch Brewster (General Operations) 274,533 265,766 Marcella Rockwell Putnam (General Operations) 578,904 560,417 Frederick Palmer (General Operations) 3,671 3,554 Frederick Palmer Memorial Fund (Palmer Warner) 1,373,448 1,334,685 Buttolph-Williams Holcombe (Buttolph-Williams) 157,647 152,613 Main Street History Center (Butler?McCook) 162,441 157,253 Judith Dana Thorne (Restoration) 1,671,337 1,617,665 6,538, 48 ,33 :3 2 '12 NOTE 9 TEMPORARILY RESTRICTED AND PERMANENTLY RESTRICTED NET ASSETS The market value of the temporarily restricted and permanently restricted net assets was comprised of the following speci?c components as of March 31: Designated for Endowment Katherine Chaffee Roberts Memorial (Amasa Day House) Palmer Accumulated Surplus Fund (Palmer-Warner House) Sumner Fuller (Hatheway House) Phelps Hatheway (Hathaway House) Nathan Hale (Hale Homestead) John Brush Hempsted (Hempsted Houses) Dorothy Clark Archibald (Nathaniel Hempsted House) Mary Dana Wells (Joshua Hempsted House) Ruth W. Newcomb (Joshua Hempsted House) Charles T. Berry Residuary Trust (Forge Farm) Charles T. Berry - Marital Trust (Forge Farm) Virginia Berry (Forge Farm) Charlotte lsham (Isham-Terry House) Julia Isham (lsham-Terry House) Isham-Teny Accumulated Surplus Subtotal designated for endowment Bene?cial Interest in Trusts Anson T. and Francis A. McCook Trusts (Butler-McCook Homestead) Trust Reserve (Butler-McCook Homestead) Mary Dana Wells 1988 Trust (Palmer-Warner House) Sumner Fuller Trust (Hatheway House) The Hempsted Heritage Fund (Hempsted Houses) Arnold and Mary Carlson (Hale Homestead) Subtotal bene?cial interest in trusts Desi snated for Operations 2013 2012 Temporarily Permanently Temporarily Permanently Restricted Restricted Restricted Restricted 277,122 100,000 265,079 100,000 42,165 - 40,818 - 146,064 100,000 138,205 100,000 21,743 - 21,054 - 191,936 50,000 184,209 50,000 67,524 27,801 64,479 27,801 13 8,819 105,000 131,032 105,000 15,313 10,000 14,505 10,000 72,842 - 70,516 - 478,091 261,961 454,458 261,961 316,690 306,576 348,659 86,838 334,751 86,838 287,658 151,945 273,620 151,945 401,953 180,375 383,356 180,375 5,700 - 5,518 - 2,812,284 1,073,920 2,688,176 1,073,920 - 2,13 8,843 - 2,072,957 51,250 - 51,277 - 441,804 - 424,319 - 322,571 - 315,009 - 62,101 - 56,949 - 5,176 - 6,497 51,250 2,970,495 51,277 2,875,731 750,829 992,560 - 3,614,363 4,044,415 8 3,732,013 3,949,651 l3 NOTE 10 - CONTRIBUTIONS AND GRANTS Contributions and grants were received from the following benefactors during the year ended March 31: 2013 2012 Contributions and Grants for Education' Collections Care and Management; and ODerations: 1772 Foundation 8 3,000 Barnwood Foundation 5,000 5,000 Charles Robinson Foundation 2,000 - Community Foundation of Eastern Connecticut - 880 Connecticut Community Foundation 250 350 Donated Goods and Services 11,479 9,416 Edward Ann Roberts Foundation 5 i000 - Ensworth Charitable Foundation 5,000 5,000 First National Bank of Suf?eld 1,000 - Fisher Foundation 1,500 1,500 Frank Palmer Fund 10,000 3,000 George A Grace Long Foundation 2,500 2,000 Greater Hartford Arts Council 15,733 12,667 Hartford Foundation for Public Giving (I-IFPG) 3,220 10,553 Family Fund 2,000 - Trust 5,000 Family Fund 1,000 - I-IFPG/Goodwin Fund 3,000 - HFPG/Richard Gamany Fund 10,000 5,000 Howard Metzger Bequest 2,000 - Individuals 60,876 53,406 Institute of Museum and Library Services 82,952 20,833 Knox Foundation 1,5 00 New Alliance Bank - 1,000 Other 4,995 3,381 SBM Charitable Foundation 13,500 12,500 Society of Cincinnati in Connecticut 750 500 Sue Hart Foundation 5,000 1,500 Thomaston Savings Bank 200 500 U11, Corporation 5,000 2,500 76 258,955 155,986 14 NOTE 11 CONTRIBUTIONS AND GRANTS Restorationlrenovation contributions were received from the following benefactors during the year ended March 31: 2013 2012 1772 Foundation 8 - 1 1,000 Amiel Zak Foundation 10,000 - Berkshire Bank Foundation 1,000 - CBT Chartiable Trust - 1,000 Connecticut Natural Gas 12,895 17,651 Connecticut Trust for Historic Preservation 5,850 18,000 Department of Economic Development 158,594 269,865 Donated Goods and Services - 450 Fund for Greater Hartford 10,000 - Greater Hartford Arts Council 30,500 - HFPG/Auerbach Foundation - 100,000 Trust - 5,000 HFPG/Richard Garmany Fund - 5,000 Individual Contributions 7,280 62,170 Institute of Museum Library Services 3,887 9,666 I Gladwin Cannon Trust - 3,000 Last Green Valley - 10,000 Newman's Own Foundation 35,000 - Northeast Utilities 4,297 8,826 Other - 575 SBM Charitable Trust 20,000 20,000 Sue Hart Foundation 7,000 - Suf?eld Friends, Inc. - 500 Suf?eld Garden Club 10,000 - The Hartford Insurance 50,000 50,000 Travelers Foundation 25,000 25,000 391,303 617,703 There are contingent grants and pledges outstanding of approximately $1,389,000 and $890,000 for the years ended March 31, 2013 and 2012, respectively. NOTE 12 For the year ended March 31, 2013 and 2012, the Society spent $650,562 and $530,327, reapectively, on major restoration and renovation for the Amos Bull/Butler McCook Campus renovation project, Nathan Hale Homestead visitor services improvement project, and prioritized property preservation needs at all sites. NOTE 13 PENSION PLAN The Society maintains a money purchase pension plan. All full-time employees who are at least 21 years Old are eligible to participate on the month following the completion of three months service. All eligible participants become 100% vested immediately. All contributions are made by the Society at an amount equivalent to 7.5% of the eligible participants? annual compensation. Total contributions for the years ended March 31, 2013 and 2012 were $14,850 and $15,766, respectively. 15 NOTE 14 OPERATING LEASES The Society rents of?ce space under a lease that expires on December 31, 2013. Of?ce rental expense was $41,985 and $41,985 for the years ended March 31, 2013 and 2012, respectively. Future minimum lease payments are as follows for the ?scal year ending March 31: 2013 27,000 NOTE 15 ?Lossns FROM NATURAL DISASTERS During the year ended March 31, 2012, several of the properties suffered damage due to weather related events. The cost of the cleanup and repairs was approximately $27,700 and was recorded as operating expenses. The cleanup costs of these natural disasters resulted in a change in net assets from operations of $(25,290) for the March 31, 2012 ?scal year. 16 THE ANTIQUARIAN LANDMARKS SOCIETY, INC. CONNECTICUT LANDMARKS INDEPENDENT REPORT AND FINANCIAL STATEMENTS MARCH31, 2014AND2013 THE ANTIQUARIAN LANDMARKS SOCIETY, INC. dlb/a CONNECTICUT LANDMARKS Contents March 31, 2014 and 2013 Independent Auditors? Report ..1 Statements of Financial Position ..2 Statements of Activities ..3 Statement of Functional Expenses .. 4 - 5 Statements of Cash Flows ..6 Notes to Financial Statements .. 7 - 16 WHITTLESEY HADLEY, P.C. Certi?ed Public Accountants/Consultants 280 Trumbull Street, 24th Floor Hartford, Connecticut 06103-3509 INDEPENDENT REPORT 350.522.3111 (voice) 860.728.0232 (fax) To the Board of Trustees of The Antiquarian and Landmarks Society, Inc. dfb/a Connecticut Landmarks Report on the Financial Statements We have audited the accompanying ?nancial statements of The Antiquarian and Landmarks Society, Inc. dfb/a Connecticut Landmarks, which comprise the statement of ?nancial position as of March 31, 2014, and the related statements of activities, ?mctional expenses, and cash flows for the year then ended, and the related notes to the ?nancial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these ?nancial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of ?nancial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these ?nancial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the ?nancial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the ?nancial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the ?nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the ?nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of signi?cant accounting estimates made by management, as well as evaluating the overall presentation of the ?nancial statements. We believe that the audit evidence we have obtained is suf?cient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the ?nancial statements referred to above present fairly, in all material respects, the ?nancial position of The Antiquarian and Landmarks Society, Inc. d/b/a Connecticut Landmarks as of March 31, 2014, and the results of its operations and its cash ?ows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Report on Summarized Comparative Information We have previously audited The Antiquarian and Landmarks Society, Inc.?s 2013 ?nancial statements, and our report dated June 19, 2013, expressed an unmodi?ed opinion on those audited ?nancial statements. In our opinion, the summarized comparative information presented herein as of and for the year ended March 31, 2014, is consistent, in all material respects, with the audited ?nancial statements from which is has been derived. W7 7 4477,96 August 18, 2014 THE ANTIQUARIAN LANDMARKS SOCIETY, INC. dlb/a CONNECTICUT LANDMARKS Statements of Financial Position March 31, 2014 (with comparative totals for 2013) Assets: Cash and equivalents Marketable securities, at market value Grants and accounts receivable Prepaid expenses Beneficial interest in trusts Property and equipment, net Total assets Liabilities and Net Assets: Liabilities: Accounts payable and accrued expenses Net assets: Unrestricted: Designated by Board for endowment purposes Designated for property and equipment Undesignated Total unrestricted Temporarily restricted Permanently restricted Total net assets Total liabilities and net assets The accompanying notes are an integral part of the fmancial statements 2 2014 2013 977,212 1,087,632 10,999,573 10,442,277 519,620 140,952 18,815 24,639 3,163,153 3,021,745 9,516 14,825 15,687,889 14,732,070 32,627 77,934 6,909,759 6,538,648 9,516 14,825 467,449 441,885 7,386,724 6,995,358 4,082,604 3,614,363 4,185,934 4,044,415 15,655,262 14,654,136 15,687,889 14,732,070 THE ANTIQUARIAN LANDMARKS SOCIETY, INC. d/b/a CONNECTICUT LANDMARKS Statements of Activities For the year ended March 3 1, 2014 (with comparative totals for the year ended March 31, 2013) Operating revenues: Investment return designated for current operations Bene?cial trust distributions Ferriday fund Contributions grants Restoration/renovations investment distributions Restorationfrenovations contributions grants Special event programs (net of expenses) Admissions sales Overseer payments Membership dues Interest and other income De-accession income Net assets released ?'om restrictions Total operating revenues Operating expenses: Museum services Restoration and renovation Administration Fundraising Total operating expenses Change in net assets from operations Other changes in net assets: Investment return, less amounts designated for current operations Net change in market value of bene?cial interest in trusts Depreciation Net other changes in net assets Total change in net assets Net assets, beginning of year Net assets, end of year The accompanying notes are an integral part of the ?nancial statements 3 2014 2013 Temporarily Permanently Unrestricted Restricted Restricted Total Total 414,529 - 414,529 8 377,922 124,640 - - 124,640 100,103 130,052 - - 130,052 127,500 133,627 222,878 - 356,505 258,955 13,060 65,300 - 78,360 98,209 20,000 1,458,120 - 1,478,120 391,303 18,668 94,650 - 113,318 25,255 82,346 - - 82,346 75,297 44,689 - - 44,689 32,868 14,477 - - 14,477 12,480 1,497 - 1,497 1,349 - 32,617 - 32,617 500 1,608,853 (1,608,853) - - - 2,606,438 264,712 - 2,871,150 1,501,741 822,583 - - 822,583 818,720 1,431,713 - - 1,431,713 650,562 158,366 - - 158,366 154,884 150,755 - 150,755 145,392 2,563,417 - - 2,563,417 1,769,558 43,021 264,712 - 307,733 (267,817) 353,654 203,529 - 557,183 349,353 - - 141,519 141,519 94,765 (5,309) - (5,303 (8,877) 348,345 203,529 141,519 693,393 435,241 391,366 468,241 141,519 1,001,126 167,424 6,995,358 3,614,363 4,044,415 14,654,136 14,486,712 7,386,724 4,082,604 4,185,934 15,655,262 14,654,136 THE ANTIQUARIAN LANDMARKS SOCIETY, INC. dfb/a CONNECTICUT LANDMARKS Statement of Functional Expense For the year ended March 31, 2014 Program Services Museum Restoration Services Renovation Adminisn'ation Fundraising Total Salaries and bene?ts 445,241 36,470 108,665 118,458 708,834 Personnel costs 5,953 - 1,618 989 8,560 Staff travel 6,3 70 - 188 443 7,001 Insurance 64,415 - 2,947 324 67,686 Professional 28,058 - 31,207 9,381 68,646 Legal 469 - 2,070 - 2,539 Of?ce rent 30,135 - 5,611 6,239 41,985 Of?ce 22,996 - 3 ,719 8,187 34,902 Postage 1,8 82 - 172 43 3 2,487 Promotion and publicity 10,019 - - 3,820 13,839 Newsletter 8,767 - - 8,767 Education programs 45 ,942 - - - 45,942 Collection care and management 1,456 - - 1,456 Building and grounds maintenance/restoration 62,763 1,395,243 - - 1,458,006 Utilities 77,430 - 2,169 2,481 82,080 Security 5,950 - - - 5,950 Real estate taxes 4,737 - - - 4,737 Totals 822,583 1,431,713 8 158,3 66 150,755 2,563,417 The accompanying notes are an integral part of the ?nancial statements THE ANTIQUARIAN LANDMARKS SOCIETY, INC. d/b/a CONNECTICUT LANDMARKS Statement of Functional Expense For the year ended March 31, 2013 Program Services Museum Restoration Services Renovation Administration Fundraising Total Salaries and bene?ts 431,507 41,368 111,064 109,369 693,308 Personnel costs 5,43 8 - 1,832 745 8,015 Staff travel 20,692 - 610 1,438 22,740 Insurance 5 9,172 - 2,632 23 8 62,042 Professional 32,085 - 26,338 10,727 69,150 Legal 194 856 - 1,050 Of?ce rent 30,135 - 5,61 1 6,239 41,985 O?ice 24,3 15 - 3 ,799 8,444 36,558 Postage 2,820 - 25 8 649 3,727 Promotion and publicity 22,21 1 - - 5,413 27,624 Newsletter 10,498 - - - 10,498 Education programs 48,879 - - - 48,879 Collection care and management 5,405 - - 5,405 Building and grounds maintenance/restoration 53,3 87 609,194 - - 662,581 Utilities 1 60,798 - 1,884 2,130 64,812 Security 6,185 - - 6,185 Real estate taxes 4,999 - - 4,999 Totals 8 818,720 650,562 154,884 145,392 1,769,558 The accompanying notes are an integral part of the ?nancial statements THE ANTIQUARIAN LANDMARKS SOCIETY, INC. d/b/a CONNECTICUT LANDMARKS Statements of Cash Flows For the year ended March 31, 2014 (with comparative totals for the year ended March 31, 2013) 2014 2013 Cash ?ows from operating activities: Change in net assets 1,001,126 167,424 Adjustments to reconcile change in net assets to net change in cash from operating activities: Unrealized and realized losses/(gains) on investments (975,115) (695,266) Depreciation 5,309 8,877 Increase/decrease in: Prepaid expenses 5,824 (93 8) Grants and accounts receivable (378,668) 132,439 Accounts payable and accrued expenses (45,307) 5,063 Net change in cash from operating activities (386,831) (3 82,401) Cash ?ows from investing activities: Purchases of ?xed assets - (11,307) Sales of marketable securities 7,406,867 7,478,845 Purchases of marketable securities (7,130,456) (7,227,695) Net change in cash from investing activities 276,411 239,843 Change in cash (110,420) (142,558) Cash and equivalents, beginning of year 1,087,632 1,230,190 Cash and equivalents, and of year 977,212 1,087,632 The accompanying notes are an integral part of the ?nancial statements 6 THE ANTIQUARIAN LANDMARKS SOCIETY, INC. d/b/a CONNECTICUT LANDMARKS Notes to Financial Statements March 31, 2014 and 2013 NOTE 1 SIGNIFICANT ACCOUNTWG POLICIES Operations - The Society, dfb/a Connecticut Landmarks, maintains and conserves twelve historic properties in Connecticut. Basis of Accounting The ?nancial statements have been prepared on the accrual basis except for investment income, which is recorded as received. To the extent that current funds are used to ?nance historic capital assets, amounts so provided have been accounted for as expenditures. Financial Statement Presentation - Financial statement presentation follows the requirements of the Financial Statements of Not-for?Pro?t Organizations topic of the FASB Accounting Standards Codi?cation. Following these requirements, the Society is required to report information regarding its ?nancial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. Cash and Equivalents - The Society considers all highly liquid investments purchased with a maturity date of three months or less at the date of purchase to be cash equivalents. Unrestricted Net Assets - Unrestricted net assets are for the general activities of the Society. Temporarilv Restricted Net Assets - Temporarily restricted net assets are gifts that are restricted by the donor for a speci?c purpose or income derived from permanently restricted net assets that is restricted by the donor for a speci?c purpose. The Society expends temporarily restricted net assets in accordance with the donor?s intent. Permanently Restricted Net Assets - Permanently restricted net assets represent gifts that are restricted for perpetuity by the donor and the Society?s interest in the Francis A. McCook, Anson T. McCook, Sumner Fuller, Mary Dana Wells 1988 Trusts, and the Arnold and Mary Carlson and Hempsted Heritage Funds. Marketable Securities - Investments are stated at market value as of the end of the year. Endowment Assets and Investment Policie - The Society complies with Endowments of Not-?ir-Pro?t Organizations: Net Asset Classyicaiion of Funds Subject to an Enacted Version of the Uniform Prudent Management of Institutional Funds Act, and Enhanced Disclosures for All Endowment Funds topic of the FASB Codi?cation. This topic provides guidance on the net asset classi?cation of donor?restricted endowment funds for not-for-pro?t organizations that is subject to the Uniform Prudent Management of Institutional Funds Act of 2006 The Board of Directors of the Society have adopted spending policies for investment returns from the endowments to be utilized to support the annual operating activities of the Society. All spending policies are based on 5% of the previous twelve quarters average market value of the investments. Fair Value Measurements - The Society follows the Fair Value Measurements topic of the FASB Codi?cation, which de?nes fair value and establishes a framework for measuring fair value in generally accepted accounting principles. It de?nes fair value as the exchange price that would be received for an asset, or paid to transfer a liability (exit price) in principal, or most advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date. It also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs that may be used to measure fair values: NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 Signi?cant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 - Signi?cant unobservable inputs that re?ect the Society?s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Valuation techniques based on unobservable inputs are highly subjective and require judgments regarding signi?cant matters, such as the amount and timing of future cash flows and the selection of discount rates that may appropriately re?ect market and credit risks. Changes in these judgments often have a material impact on the fair value estimates. In addition, since these estimates are as of a speci?c point in time, they are susceptible to material near?term changes. Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at March 31, 2014 and 2013. Short term investments and equity funds are valued by reference to quoted market prices and other relevant information generated by market transactions. Historic Propertie The Society follows the Revenue Rewgnirion topic of the FASB Codi?cation. In accordance with the topic, the Society does not capitalize the cost or appraisal value or the costs of restorations and renovations of any historic or recognize them as revenues or gains. These assets/properties, which are signi?cant in value, have been acquired by the Society from bequests and subsequently restored. The topic provides that such donations need not be recognized if they are added to collections that are held for public exhibition, education, or research in ?irtherance of public service rather than ?nancial gain; are protected, kept unencumbered, cared for, and preserved. Property and Equipment - The Society owns computer software, furniture, and equipment, which are being depreciated using the straight-line method over a useful life of three and ?ve years, respectively. Acquisitions of office equipment in excess of $2,500, real property in excess of $50,000, and repairs and improvements in excess of $10,000 are capitalized. Use of Estimates - The preparation of ?nancial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the ?nancial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Income Taxes - The Society is exempt under Section 501(c) 3 of the Internal Revenue Code. The Society implemented the accounting guidance for uncertainty in income taxes. Tax positions initially need to be recognized in the ?nancial statements when it is more likely than not that the position will be sustained upon examination by tax authorities. As of March 31, 2014 and 2013, the Society has no uncertain tax positions that qualify for either recognition or disclosure in the ?nancial statements and believes that it has appropriate support for income tax positions taken in its tax returns. Currently, the Society?s federal information returns for fiscal years 2011 - 2013 remain open to inspection by the IRS. Credit Risk - The Society maintains cash in bank accounts which, at times, may exceed federally insured limits, has not experienced losses in such accounts and believes it is not exposed to signi?cant credit risk. Commitments - Grants require the ful?lhnent of certain conditions as set forth in the instrument of the grant. Failure to ful?ll the conditions could result in the return of ?inds to grantors. Subsequent Events Measurement Date - The Society monitored and evaluated any subsequent events for footnote disclosures or adjustments required in its ?nancial statements for year ended March 31, 2014 through August 18, 2014, the date on which financial statements were available to be issued. NOTE 2 PROPERTIES Joshua Hempsted House New London, CT Buttolph?Williams House Wethers?eld, CT Nathan Hale Homestead Coventry, CT Phelps-Hatheway House Suf?eld, CT Amasa Day House Moodus, CT Butler-McCook Homestead Hartford, CT Nathaniel Hempsted House New London, CT Isham-Terry House Hartford, CT Forge Farm Stonington, CT The Hay (Bellamy-Ferriday Estate) Bethlehem, CT Palmer?Warner House East Haddam, CT Amos Bull House Hartford, CT NOTE 3 MARKETABLE SECURITIES Unrestricted Consolidated restricted Judith Dana Theme The following is a listing of the properties that the Society maintains and conserves in Connecticut: Purchased by the Society, 1942 Purchased by the Society, 1942 Bequest of George Dudley Seymour, 1945 Gift of Claudine Fuller Ackroyd, Elizabeth Fuller Carter and Laurene Fuller Vinette, 1962 Bequest of Katherine Chaffee Roberts, 1967 Bequest of Frances A. and Anson T. McCook, 1971 Purchased by the Society, 1971 Bequest of Julia and Charlotte Isham, 1980 Bequest of Charles T. and Virginia Berry, 1982 Bequest of Caroline Ferriday, 1990 Gift of Howard Metzger, 1993 Gift of State of Connecticut, 2008 The spending policy is applied to the following endowment funds at March 31: 2014 2013 2,442,626 2,316,667 6,797,011 6,454,273 1,759,936 1,671,337 10,999,573 10,442,577 NOTE 3 MARKETABLE SECURITIES (CONTINUED) Marketable securities were comprised of the following at March 31: Stocks Bonds Short-term investments Total A summary of the Society?s investment return is presented below: Interest and dividends Realized gains/(losses) Unrealized gainsl(losses) Total return on investments Less: Total used per operating spending policy capital spending policy Bene?cial trust distributions Additional distributions Less: Amounts temporarily restricted Investment return, less amounts designated for current operations Interest and dividends Realized gains/(losses) Unrealized gains/(losses) Total return on investments Less: Total used per operating spending policy capital spending policy Less: Amounts temporarily restricted Investment return, less amounts designated for current operations 2014 2013 goat, Market Value Market Value 5,748,951 6,852,717 5,123,549 5,840,784 3,227,961 3,279,988 3,634,992 3,730,321 888,988 866,868 843,672 871,172 8 9,865,900 8 10,999,573 8 9,602,213 8 10,442,277 March 31, 2014 Temporarily Permanently Unrestricted Restricted Restricted Lia; 187,874 SB 111,163 21,808 320,845 283,218 167,846 61,601 512,665 184,252 109,3 54 168,844 462,450 655,344 388,363 252,253 1,295,960 (118,961) (184,834) (110,734) (414,529) (13,060) (65,300) - (78,3 60) (124,641) - (124,641) (58,088) - - (58,088) 340,594 138,229 141,519 620,342 13,060 65,300 - 78,360 353,654 203,529 141,519 698,702 March 31, 2013 Temporarily Permanently Unrestricted Restricted Restricted Trial 165,278 97,992 35,187 298,457 125,999 74,767 156,453 3 57,219 210,433 124,726 2,888 338,047 501,710 297,485 194,528 993,723 (276,437) (173,405) (99,763) (549,605) (74,304) - - (74,304) 150,969 124,080 94,765 369,814 74,3 04 - 74,304 225,273 124,080 94,765 444,118 10 NOTE 3 NIARKETABLE SECURITIES (CONTINUED) The reconciliation of the Society?s endowment by net asset category is as follows: Temporarin Permanently Unrestricted Restricted Restricted Total March 31, 2012 6,330,802 2,739,453 3,949,651 13,019,906 Interest and dividends 217,771 129,269 62,799 409,839 Realized gain 125,999 74,766 154,452 355,217 Unrealized gain 210,433 124,725 2,888 338,046 Contributions, grants and distributions - - - - Endowment distributions (293,864) (155,977) (100,138) (549,979) Net additions - - 2,3 76 2,376 Investment fees (52,493) (31,277) (27,613) (111,383) March 31, 2013 8 6,538,648 8 2,880,959 4,044,415 ?8 13,464,022 Interest and dividends 222,704 131,944 57,280 411,928 Realized gain 283,218 167,846 55,432 506,496 Unrealized gain 184,252 109,354 168,844 462,450 Contributions, grants and distributions - - 10,3 65 10,365 Endowment distributions (284,233) (202,289) (126,860) (613,3 82) Net additions - - 1 1,930 11,930 Investment fees (3 4,830) (20,781) (35,472) (91,083) March 31, 2014 6,909,759 3,067,033 4,185,934 14,162,726 NOTE 4 FAIR VALUE MEASUREMENTS Fair values of assets and liabilities measured on a recurring basis is as follows at March 31: 2014 Fair Value Level 1 Level 2 Level 3 Short-term investments 124,664 124,664 - - Equity funds 10,874,909 10,874,909 - - 8 10,999,573 8 113,999,573 75 - - 2013 Fair Value Level 1 Level 2 Level 3 Short-term investments 8 173,243 173,243 - - Equity funds 10,269,034 10,269,034 - - W?T?omz, 77 W242, 77 - T, - NOTE 5 BENEFICIAL INTEREST IN TRUSTS The Society is named as the bene?ciary of several trusts. The Society received the following distributions from its bene?cial interest in trusts for the years ended March 31: 2014 2013 Market Value Distribution Market Value Distribution Anson Francis A McCook 2,217,979 8 87,880 2,138,843 67,826 McCook Trust Reserve 51,139 - 51,250 - Mary Dana Wells 1998 Trust 489,026 16,088 441,804 16,159 Sumner Fuller Trust 330,460 20,493 322,571 13,727 The Hempsted Heritage Fund 68,876 - 62,101 2,219 Arnold Mary Carlson 5,673 179 5,176 172 3,163,153 124,640 8 3,021,745 8 100,103 11 NOTE 5 BENEFICIAL INTEREST IN TRUSTS (CONTINUED) The Society received distributions for the following purposes for the years ended March 31: 2014 2013 For operations 124,640 100,103 For restoration/renovations 124,640 100,103 NOTE 6 FERRIDAY FUND - CHARITABLE TRUST The Society maintains and conserves The Hay (Bellamy?Ferriday Estate) received through the bequest of Caroline Ferriday. Caroline Ferriday also established the Ferriday Fund Charitable Trust, from which the Society receives, upon the discretion of the Trustees, an annual distribution for the care, maintenance and preservation of the property. The Society received the following distributions for the years ended March 31: 2014 2013 For operations 130,052 127,500 For restoration/renovations - - 13 52 127,500 NOTE 7 PROPERTY AND EQUIPMENT Property and equipment was as follows as of March 31: 2014 2013 Computers and software 8 52,544 52,750 Furniture and equipment 35,481 36,144 88,025 88,894 Less: accumulated depreciation (78,509) (74,069) 9,516 14,825 NOTE 8 DESIGNATED BY BOARD FOR The market value of the investments designated by the Board for endowment purposes, as a component of unrestricted net assets, was comprised of the following speci?c components as of March 31: 2014 2013 Unrestricted Endowment (General Operations) 2,442,626 2,316,667 Margaret Fitch Brewster (General Operations) 288,919 274,533 Marcella Rockwell Putnam (General Operations) 609,239 578,904 Frederick Palmer (General Operations) 3,864 3,671 Frederick Palmer Memorial Fund (Palmer Warner) 1,468,284 1,373,448 Buttolph-Williams Holcombe (Buttolph-Williams) 165,908 157,647 Main Street History Center (Butler-McCook) 170,983 162,441 Judith Dana Thorne (Restoration) 1,759,936 1,671,337 8 6,909,759 8 6,538,648 12 NOTE 9 TEMPORARILY RESTRICTED AND PERMANENTLY RESTRICTED NET ASSETS The market 1value of the temporarily restricted and permanently restricted net assets was comprised of the following speci?c components as of March 31: Desigated for Endowment Katherine Chaffee Roberts Memorial (Amasa Day House) Palmer Accumulated Surplus Fund (Palmer-Warner Heuse) Sumner Fuller (Hatheway House) Phelps Hatheway (Hatheway House) Nathan Hale (Hale Homestead) John Brush Hempsted (Hempsted Houses) Dorothy Clark Archibald (Nathaniel Hempsted House) Mary Dana Wells (Joshua Hempsted House) Ruth W. Newcomb (Joshua Hempsted House) Charles T. Berry - Residuary Trust (Forge Farm) Charles T. Berry - Marital Trust (Forge Farm) Virginia Berry (Forge Farm) Charlotte Isham (Isham-Terry House) Julia Isham (Isham-Ten'y House) Isham-Terry Accumulated Surplus Subtotal designated for endowment Bene?cial Interest in Trusts Anson T. and Francis A. McCook Trusts (Butler-McCook Homestead) McCook Trust Reserve G3ut1er?McCook Homestead) Mary Dana Wells 1988 Trust (Palmer-Warner House) Sumner Fuller Trust (Hatheway House) The Hempsted Heritage Fund (Hempsted Houses) Arnold and Mary Carlson (Hale Homestead) Subtotal bene?cial interest in trusts Designated for Operations 2014 2013 Temporarily Permanently Temporarily Permanently Restricted Restricted Restricted Restricted 296,884 100,000 277,122 100,000 44,3 74 - 42,155 158,957 100,000 146,064 100,000 22,888 - 21,748 - 204,613 50,000 191,936 50,000 72,519 27,801 67,524 27,801 151,595 105,000 138,819 105,000 16,639 10,000 15,313 10,000 76,659 72,842 - 516,871 261,961 478,091 261,961 333,285 316,690 371,479 86,83 8 348,659 86,838 310,694 151,945 287,658 151,945 432,468 180,375 401,953 180,3 75 5,999 - 5,700 - 3,015,924 1,073,920 2,812,284 1,073,920 2,217,979 - 2,138,843 51,139 - 5 1,250 - 489,026 - 441,804 - 330,460 - 322,571 - 68,876 - 62,101 5,673 - 5,176 51,139 3,112,014 51,250 2,970,495 1,015,541 - 750,829 - 4,082,604 4,185,934 3,614,363 4,044,415 13 NOTE 10 CONTRIBUTIONS AND GRANTS Contributions and grants were received from the following benefactors during the year ended March 31: 2014 2013 Contributions and Grants for Education; Collections Care and Management; and Operations: Barnwood Foundation 2,500 5,000 Charles Robinson Foundation 2,500 2,000 Connecticut Community Foundation - 250 Connecticut Department of Economic Development 49,500 - Donated Goods and Services 7,147 11,479 Edward Ann Roberts Foundation 5,000 5,000 EW Preston Trust 3,000 - Ensworth Charitable Foundation - 5,000 First National Bank of Suf?eld - 1,000 Fisher Foundation 1,500 1,500 Frank Palmer Fund 35,000 10,000 George A Grace Long Foundation - 2,500 Greater Hartford Arts Council 44,215 15,733 Hartford Foundation for Public Giving (HFPG) - 3,220 Family Fund - 2,000 HFPG/Coburn Trust 5,000 5,000 Family Fund 1,000 1,000 I-IFPG/Goodwin Fund - 3,000 I-IFPG/Richard Garmany Fund 2,500 10,000 Howard Metzger Bequest - 2,000 Individuals 78,688 60,876 Institute of Museum and Library Services 80,655 82,952 Litch?led Garden Club 800 - New Alliance Bank 3,500 - Other - 4,995 Program Sponsors 1,500 SBM Charitable Foundation 30,000 13,500 Society of Cincinnati in Connecticut - 750 Sue Hart Foundation - 5,000 Thomaston Savings Bank - 200 UIL Corporation 2,500 5,000 356,505 8 258,955 14 NOTE 1] - CONTRIBUTIONS AND GRANTS Restoration/renovation contributions were received from the following benefactors during the year ended March 31: 2 014 20 13 Amiel Zak Foundation 33 8,000 10,000 Berkshire Bank Foundation - 1,000 City of Hartford 500,000 - Connecticut Natural Gas 1 1,753 12,895 Connecticut Trust for Historic Preservation - 5,850 Department of Economic Development - 158,594 Ensworth Charitable Trust 25,000 - Ferriday Fund 12,500 - Fund for Greater Hartford - 10,000 Greater Hartford Arts Council - 30,500 Hartford Foundation for Public Giving 438,893 - Individual Contributions - 7,280 Institute of Museum Library Services 30,056 3,887 Mortensen Foundation 176,500 - Newman's Own Foundation 35,000 Northeast Utilities 3,918 4,297 SBM Charitable Trust 20,000 20,000 State of Connecticut: Commission on Culture and Tourism 176,500 - Sue Hart Foundation - 7,000 Suf?eld Garden Club - 10,000 The Hartford Insurance 50,000 50,000 Travelers Foundation 25,000 25,000 1,478,120 391,303 There are contingent grants and pledges outstanding of approximately $472,000 and $1,389,000 for the years ended March 31, 2014 and 2013, respectively. In addition, the Society has received a contingent funding commitment of $750,000 from the State of Connecticut (DECD) for restoration of the barns at the Nathan Hale Homestead. The William and Alice Mortensen Foundation committed $176,500 to the Amos Bull/Butler?McCook Campus Renovation Project to be paid to the Society at a rate of $3 0,000 per year over the next six years. This grant was approved on June 20, 2013. $30,000 was received as of March 31, 2014. NOTE 12 - For the years ended March 31, 2014 and 2013, the Society spent $1,431,713 and $650,562, respectively, on major restoration and renovation for the Amos Bull/Butler McCook Campus renovation project, Nathan Hale Homestead visitor services improvement project, and prioritized property preservation needs at all sites. NOTE l3 PENSION PLAN The Society maintains a money purchase pension plan. All full-time employees who are at least 21 years old are eligible to participate on the month following the completion of three months service. All eligible participants become 100% vested immediately. All contributions are made by the Society at an amount equivalent to 7.5% of the eligible participants? annual compensation. Total contributions for the years ended March 31, 2014 and 2013 were $14,414 and $14,850, respectively. 15 NOTE 14 OPERATING LEASES The Society rents of?ce space under a month to month lease. Office rental expense was $41,985 and $41,985 for the years ended March 31, 2014 and 2013, respectively. In April 2014 the lease was terminated when the Society moved their headquarters into the Amos Bull House. NOTE 15 LINE OF CREDIT On January 17, 2014, the Society entered into an agreement for a secured and revolving line of credit with a bank that allowed for borrowings up to $1,000,000. Total borrowings are restricted by the Board of Trustees to a maximum of $600,000. The purpose of the line of credit is to assist in the funding of the construction of the Amos Bull House. Interest accrues at a rate per annum equal to the greater of the Rate plus 1.75%. The line of credit is secured by certain unrestricted endowment funds in the securities account and had no outstanding balance at March 31, 2014. Subsequent to year end, $55,000 was drawn. on the line of credit and repaid. There are no anticipated further drawings for the purpose designated by the Board of Trustees. 16 TI-IE ANTIQUARIAN LANDMARKS SOCIETY, INC. CONNECTICUT LANDMARKS INDEPENDENT REPORT AND FINANCIAL STATEMENTS MARCH31, 2015 AND2014 THE ANT IQUARIAN LANDMARKS SOCIETY, INC. d/b/a CONNECTICUT LANDMARKS Contents March 31, 2015 and 2014 Independent Auditors? Report ..1 Statements of Financial Position ..2 Statements of Activities ..3 Statements of Functional Expenses .. 4 - 5 Statements of Cash Flows ..6 Notes to Financial Statements .. 7 - 16 WHITTLESEY HADLEY, P.C. Certi?ed Public Accountants/Consultants 280 Trumbull Street, 24th Floor 7' INDEPENDENT AUDITORS: REPORT Hartford, Connecticut 06103-3509 860.522.3111 To the Board of Trustees of The Antiquarian and Landmarks Society, Inc. dfb/a Connecticut Landmarks Report on the Financial Statements We have audited the accompanying ?nancial statements of The Antiquarian and Landmarks Society, Inc. d/b/a Connecticut Landmarks, which comprise the statement of ?nancial position as of March 31, 2015, and the related statements of activities, ?inctional expenses, and cash ?ows for the year then ended, and the related notes to the ?nancial statements. Management's Responsibility for the Financial Statements Management is reSponsibIe for the preparation and fair presentation of these ?nancial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of ?nancial statements that are free from material misstatement, whether due to fraud or error. Auditor's ReSponsibility Our responsibility is to express an opinion on these ?nancial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the ?nancial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the ?nancial statements. The procedures selected depend on the auditors? judgment, including the assessment of the risks of material misstatement of the ?nancial statements, whether due. to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the ?nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of signi?cant accounting estimates made by management, as well as evaluating the overall presentation of the ?nancial statements. We believe that the audit evidence we have obtained is suf?cient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the ?nancial statements referred to above present fairly, in all material respects, the ?nancial position of The Antiquarian and Landmarks Society, Inc. d/b/a Connecticut Landmarks as of March 31, 2015, and the results of its operations and its cash ?ows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Report on Summarized Comparative Information We have previously audited The Antiquarian and Landmarks Society, Inc?s 2014 ?nancial statements, and our report dated August 18, 2014, expressed an unmodi?ed opinion on those audited ?nancial statements. In our opinion, the summarized comparative information presented herein as of and for the year ended March 31, 2014, is consistent, in all material respects, with the audited ?nancial statements from which is has been derived. W7 3? Hartford, Connecticut June 24, 2015 O?ices in Hartford, Connecticut Holycke, Massachusetts 1 THE ANTIQUARIAN LANDIVIARKS SOCIETY, INC. d/bfa CONNECTICUT LANDMARKS Statements of Financial Position March 31, 2015 (with comparative totals for 2014) 201 2014 Assets: Cash and equivalents 990,401 977,212 Marketable securities, at market value 10,954,781 10,999,573 Grants and accounts receivable 260,595 519,620 Prepaid expenses 18,139 18,815 Bene?cial interest in trusts 3,141,816 3,163,153 Property and equipment, net 8,144 9,516 Total assets 33 15,373,876 Liabilities and Net Assets: 15,687,889 Liabilities: Accounts payable and accrued expenses 53,411 32,627 Net assets: Unrestricted: Designated by Board for endowment purposes 6,883,371 6,909,759 Designated for property and equipment 8,144 9,516 Undesignated 421,49 8 467,449 Total unrestricted 7,313,013 7,3 86,724 Temporarily restricted 3,843,068 4,082,604 Permanently restricted 4,164,3 84 4,1 85,934 Total net assets 15,320,465 15,655,262 Total liabilities and net assets 8 15,3 73,876 15,687,889 The accompanying notes are an integral part of the ?nancial statements 2 THE ANTIQUARIAN LANDMARKS SOCIETY, INC. d/b/a CONNECTICUT LANDMARKS Statements of Activities For the year ended March 31, 2015 (with comparative totals for the year ended March 31, 2014) Operating revenues: Investment return designated for current operations Bene?cial trust distributions Ferriday ?md Contributions grants Restoration/renovations investment distributions Restoration/renovations contributions grants Special event programs (net of expenses) Admissions St sales Overseer payments Membership dues Interest and other income Deaccession income Net assets released from restrictions Total operating revenues Operating expenses: Museum services Restoration and renovation Administration Fundraisng Total operating expenses Change in net assets ?'om operations Other changes in net assets: Investment return, less amounts designated for current operations Net change in market value of bene?cial interest in trusts Depreciation Net other changes in net assets Total change in net assets Net assets, beginning of year Net assets, end of year 2015 2014 Temporarily Permanently Unrestricted Restricted Restricted Total Total 426,217 - - 426,217 414,529 135,131 - - 135,131 124,640 131,328 19,800 - 151,128 130,052 160,473 105,944 266,417 356,505 - 81,060 - 81,060 78,360 - 185,990 - 185,990 1,478,120 25,670 - - 25,670 113,318 75,273 - 75,273 82,346 47,974 - - 47,974 44,689 11,569 11,569 14,477 5,497 - - 5,497 1,497 - - - 32,617 613,904 (613,904) - - - 1,633,036 (221,110) - 1,411,926 2,871,150 947,592 - - 947,592 822,583 412,725 - - 412,725 1,431,713 182,557 - 182,557 158,366 133,568 - - 133,568 150,755 1,676,442 - - 1,676,442 2,563,417 (43,406) @1210) - (264,516) 307,733 (26,155) (18,426) - (44,581) 557,183 - - (21,550) (21,550) 141,519 (4,150) - - (4,150) (5,309) (30,305) (18,426) (21,550) (70,281) 693,393 (73,711) (239,536) (21,550) (334,797) 1,001,126 7,386,724 4,082,604 4,185,934 15,655,262 14,654,136 7,313,013 3,843,068 4,164,384 15,320,465 15,655,262 The accompanying notes are an integral part of the ?nancial statements 3 ANT IQUARIAN LANDMARKS SOCIETY, INC. d/b/a CONNECTICUT LANDMARKS Statement of Functional Expenses For the year ended March 31, 2015 Salaries and bene?ts Personnel costs Staff travel Insurance Professional Of?ce rent Of?ce Postage Promotion and publicity Newsletter Education programs Building and grounds maintenance/restoration Utilities Security Real estate taxes Totals Program Services Museum Services 8 419,637 4,529 13,820 68,293 74,583 4,226 28,471 1,898 41,303 11,846 53,489 132,979 66,263 21,721 4,534 947,592 The accompanying notes are an integral part of the ?nancial statements Restoration Renovation 4 34,210 378,515 412,725 Administration 101,415 29,521 408 3,142 40,233 787 4,900 173 182,557 133,568 Total 643,022 34,611 15,189 71,792 139,752 5,888 43,822 2,508 46,295 1 1,846 53,489 51 1,494 70,479 21,721 4,534 1,676,442 THE ANT IQUARIAN LANDMARKS SOCIETY, INC. dfb/a CONNECTICUT LANDMARKS Statement of Functional Expenses For the year ended March 31, 2014 Salaries and bene?ts Personnel costs Staff travel Insurance Professional Legal Of?ce rent Office Postage Promotion and publicity Newsletter Education programs Collection care and management Program Services Restoration Renovation Museum Services 8 445,241 5,953 6,370 64,415 28,058 469 30,135 22,996 1,882 10,019 8,767 45,942 1,456 Building and grounds maintenance/restoration 62,763 Utilities Security Real estate taxes Totals 77,430 5,950 4,737 822,5 83 The accompanying notes are an integral part of the ?nancial statements 5 36,470 1,395,243 1,431,713 Administration 8 108,665 1,618 188 2,947 31,207 2,070 5,61 1 3,719 172 158,366 Fundraisng 118,458 989 443 324 9,381- 6,239 8,187 433 3,820 150,755 Total 708,834 8,560 7,001 67,686 68,646 2,539 41,985 34,902 2,487 13,839 8,767 45,942 1,456 1,458,006 82,080 5,950 4,737 2,563,417 ANTIQUARIAN LANDMARKS SOCIETY, INC. d/b/a CONNECTICUT LANDNIARKS Statements of Cash Flows For the year ended March 31, 2015 (with comparative totals for the year ended March 31, 2014) 2015 2014 Cash ?ows from operating activities: Change in net assets (334,797) 1,001,126 Adjustments to reconcile change in net assets to net change in cash from operating activities: Unrealized and realized (gains) on investments (197,120) (975,115) Depreciation 4,150 5,3 09 Increase/decrease in: Prepaid expenses 676 5,824 Grants and accounts receivable 259,025 (378,668) Accounts payable and accrued expenses 20,784 (45,307) Net change in cash from operating activities (247,282) (386,831) Cash ?ows from investing activities: Purchases of ?xed assets (2,778) - Sales of marketable securities 13,43 7,274 7,406,867 Purchases of marketable securities (13,174,025) (7,130,456) Net change in cash from investing activities 260,471 276,411 Change in cash 13,189 (1 10,420) Cash and equivalents, beginning of year 977,212 1,087,632 Cash and equivalents, end of year 990,401 977,212 The accompanying notes are an integral part of the ?nancial statements 6 THE ANTIQUARIAN LANDMARKS SOCIETY, INC. d/bla CONNECTICUT LANDMARKS Notes to Financial Statements March 31, 2015 and 2014 NOTE 1 SIGNIFICANT ACCOUNTING POLICIES Operations - The Society, d/b/a Connecticut Landmarks, maintains and conserves twelve historic properties in Connecticut. Basis of Accounting - The ?nancial statements have been prepared on the accrual basis except for investment income, which is recorded as received. To the extent that current ?mds are used to ?nance historic capital assets, amounts so provided have been accounted for as expenditures. Financial Statement Presentation Financial statement presentation follows the requirements of the Financial Statements of Notfor-Pro?t Organizations topic of the FASB Accounting Standards Codi?cation. Following these requirements, the Society is required to report information regarding its ?nancial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. Cash and Euivalents The Society considers all highly liquid investments purchased with a maturity date of three months or less at the date of purchase to be cash equivalents. Unrestricted Net Assets - Unrestricted net assets are for the general activities of the Society. Temporarily Restricted Net Assets - Temporarily restricted net assets are gifts that are restricted by the donor for a speci?c purpose or income derived from permanently restricted net assets that is restricted by the donor for a speci?c purpose. The Society expends temporarily restricted net assets in accordance with the donor?s intent. Permanently Restricted Net Assets - Permanently restricted net assets represent gifts that are restricted for perpetuity by the donor and the Society?s interest in the Francis A. McCook, Anson T. McCook, Sumner Fuller, Mary Dana Wells 1988 Trusts, and the Arnold and Mary Carlson and Hempsted Heritage Funds. Marketable Securities - Investments are stated at market value as of the end of the year. Endowment Assets and Investment Policies - The Society complies with Endowments of Not-for?Pro?t Organizations: Net Asset Classification of Funds Subject to an Enacted Version of the Uniform Prudent Management of Institutional Funds Act, and Enhanced Disclosures for All Endowment Funds topic of the FASB Codi?cation. This topic provides guidance on the net asset classi?cation of donor-restricted endowment funds for not-for-pro?t organizations that is subject to the Uniform Prudent Management of Institutional Funds Act of 2006 The Board of Directors of the Society have adopted spending policies for investment returns from the endowments to be utilized to support the annual operating activities of the Society. All spending policies are based on 5% of the previous twelve quarters average market value of the investments. Fair Value Measurements - The Society follows the Fair Value Measurements topic of the FASB Codi?cation, which de?nes fair value and establishes a framework for measuring fair value in generally accepted accounting principles. It de?nes fair value as the exchange price that would be received for an asset, or paid to transfer a liability (exit price) in principal, or most advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date. It also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs that may be used to measure fair values: NOTE I SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 - Signi?cant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 - Signi?cant unobservable inputs that re?ect the Society?s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Valuation techniques based on unobservable inputs are highly subjective and require judgments regarding signi?cant matters, such as the amount and timing of future cash ?ows and the selection of discount rates that may appropriately re?ect market and credit risks. Changes in these judgments often have a material impact on the fair value estimates. In addition, since these estimates are as of a speci?c point in time, they are susceptible to material near-term changes. There have been no changes in the valuation methodologies used for assets measured at fair value at March 31, 2015 and 2014. Short term investments and equity funds are valued by reference to quoted market prices and other relevant information generated by market transactions. Historic Propertie - The Society follows the Revenue Recognition topic of the FASB Codi?cation. In accordance with the topic, the Society does not capitalize the cost or appraisal value or the costs of restorations and renovations of any historic assets/properties or recognize them as revenues or gains. These assets/properties, which are signi?cant in value, have been acquired by the Society from bequests and subsequently restored. The topic provides that such donations need not be recognized if they are added to collections that are held for public exhibition, education, or research in furtherance of public service rather than financial gain; are protected, kept unencumbered, cared for, and preserved. Pronertv and Equipment - The Society owns computer so?ware, furniture, and equipment, which are being depreciated using the straight-line method over a useful life of three and ?ve years, respectively. Acquisitions of of?ce equipment in excess of $2,500, real property in excess of $50,000, and repairs and improvements for non-historic properties in excess of $1 0,000 are capitalized. Use of Estimates - The preparation of ?nancial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the ?nancial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Income Taxes - The Society is exempt under Section 501(c) 3 of the Internal Revenue Code. The Society implemented the accounting guidance for uncertainty in income taxes. Tax positions initially need to be recognized in the ?nancial statements when it is more likely than not that the position will be sustained upon examination by tax authorities. As of March 31, 2015 and 2014, the Society has no uncertain tax positions that qualify for either recognition or disclosure in the fmancial statements and believes that it has appropriate support for income tax positions taken in its tax returns. Currently, the Society?s federal information returns for ?scal years 2012 - 2014 remain open to inspection by the IRS. Credit Risk - The Society maintains cash in bank accounts which, at times, may exceed federally insured limits, has not experienced losses in such accounts and believes it is not exposed to signi?cant credit risk. Commitments Grants require the ful?llment of certain conditions as set forth in the instrument of the grant. Failure to ?ilfill the conditions could result in the return of ?mds to grantors. Subsequent Events Measurement Date - The Society monitored and evaluated any subsequent events for footnote disclosures or adjustments required in its ?nancial statements for year ended March 31, 2015 through June 24, 2015, the date on which ?nancial statements were available to be issued. NOTE 2 PROPERTIES Joshua Hempsted House New London, CT Buttolph-Williams House Wethers?eld, CT Nathan Hale Homestead Coventry, CT Phelps?Hatheway House Suf?eld, CT Amasa Day House Moodus, CT Butler-McCook Homestead Hartford, CT Nathaniel Hempsted House New London, CT Isham-Terry House Hartford, CT Forge Farm Stonington, CT The Hay (Bellamy-Ferriday Estate) Bethlehem, CT Palmer-Warner House East Haddam, CT Amos Bull House Hartford, CT NOTE 3 MARKETABLE SECURITIES Unrestricted Consolidated restricted Judith Dana Thorns The following is a listing of the properties that the Society maintains and conserves in Connecticut: Purchased by the Society, 1942 Purchased by the Society, 1942 Bequest of George Dudley Seymour, 1945 Gift of Claudine Fuller Ackroyd, Elizabeth Fuller Carter and Laurens Fuller Vinette, 1962 Bequest of Katherine Chaffee Roberts, 1967 Bequest of Frances A. and Anson T. McCook, 197 1 Purchased by the Society, 1971 Bequest of Julia and Charlotte Isham, 1980 Bequest of Charles T. and Virginia Berry, 1982 Bequest of Caroline Ferriday, 1990 Gift of Howard Metzger, 1993 Gift of State of Connecticut, 2008 The spending policy is applied to the following endowment funds at March 31: 2015 2014 2,434,417 2,442,626 6,767,670 6,797,01 1 1,752,694 1,759,936 10,954,781 10,999,573 NOTE 3 MARKETABLE SECURITIES (CONTINUED) Marketable securities were comprised of the following at March 31: Stocks Bonds Short-term investments Total A summary of the Society?s investment return is presented below: Interest and dividends Realized gains/(losses) Unrealized gains/(losses) Total return on investments Less: Total used per operating spending policy capital spending policy Bene?cial trust distributions Additional distributions Less: Amounts temporarin restricted Investment return, less amounts designated for current operations Interest and dividends Realized gains/(losses) Unrealized gains/(losses) Total return on investments Less: Total used per operating spending policy capital spending policy Bene?cial trust distributions Additional distributions Less: Amounts temporarily restricted Investment return, less amounts designated for current operations 2015 2014 gag Market Value Cost Market Value 6,302,588 6,627,495 5,748,951 8 6,852,717 3,517,927 3,468,867 3,227,961 3,279,988 898,449 858,419 888,988 866,868 $10,718,964 $10,954,781 9,865,900 March 31, 2015 Temporarily Permanently Unrestricted Restricted Restricted To_tal 212,819 125,698 17,549 356,066 641,526 379,552 41,988 1,063,066 (564,248) (333,757) 32,059 (865,946) 290,097 171,493 91,596 553,186 (123,152) (189,919) (113,146) (426,217) (81,060) - (81,060) (135,131) - - (135,131) (57,969) - - (57,969) (26,155) (99,486) (21,550) (147,191) - 81,060 - 81,060 (26,155) (18,426) (21,550) (66,131) March 3 1, 2014 Temporarily Permanently Unrestricted Restricted Restricted by; 187,874 111,163 21,808 320,845 283,218 167,846 61,601 512,665 184,252 109,354 168,844 462,450 655,3 44 388,363 252,253 1,295,960 (118,961) (184,834) (110,734) (414,529) (13,060) (65,300) - (78,360) (124,640) - - (124,640) (58,089) - - (58,089) 340,594 138,229 141,519 620,342 13,060 65,300 78,3 60 353,654 203,529 141,519 698,702 10 NOTE 3 MARKETABLE SECURITIES (CONTINUED) The reconciliation of the Society?s endowment by net asset category is as follows: Temporarily Permanently Unrestricted Restricted Restricted March 31, 2013 6,538,648 2,880,959 4,044,415 13,464,022 Interest and dividends 222,704 131,944 57,280 411,928 Realized gain 283,218 167,846 55,432 506,496 Unrealized gain 184,252 109,354 168,844 462,450 Contributions, grants and distributions - - 10,365 10,365 Endowment distributions (284,233) (202,289) (126,860) (613,3 82) Net additions - 11,930 1 1,930 Investment fees (34,830) (20,781) (35,472) (91,083) March 31, 2014 6,909,759 8 3,067,033 4,185,934 14,162,726 Interest and dividends 252,919 149,781 51,985 454,685 Realized gain 641,526 379,552 20,137 1,041,215 Unrealized gain (564,248) (333,757) 32,059 (865,946) Contributions, grants and distributions - 4,221 4,221 Endowment distributions (316,234) (189,943) (134,928) (641,105) Net additions (l 8) 23 39,41 1 39,416 Investment fees (40,333) (23,847) (34,435) (98,615) March 31, 2015 6,883,371 3,048,842 4,164,384 14,096,597 NOTE 4 FAIR VALUE MEASUREMENTS Fair values of assets and liabilities measured on a recurring basis is as follows at March 31: 2015 Fair Value Level 1 Level 2 Level 3 Short-term investments 54,128 5 4,128 - Equity funds 10,900,653 10,900,653 - - Bene?cial interest in trusts 3,141,816 - 3,141,816 ,09 ,597 T10,954,7s1 - 3 3,141,816 2014 Fair Value Level 1 Level 2 Level 3 Short-term investments 124,664 124,664 - Equity funds 10,874,909 10,874,909 - - Beneficial interest in trusts 3,163,153 - - 3,163,153 3 14,162,726 3 10,999,573 8 - 8 3,163,153 NOTE 5 BENEFICIAL INTEREST IN TRUSTS The Society is named as the bene?ciary of several trusts. The Society received the following distributions from its bene?cial interest in trusts for the years ended March 31: 2015 2014 Market Value Distribution Market Value Distribution Anson Francis A MoCook 2,181,816 98,043 2,217,979 87,880 McCook Trust Reserve 5 1,3 52 - 51,139 - Mary Dana Wells 1998 Trust 504,394 23,530 489,026 16,088 Sumner Fuller Trust 326,221 13,355 330,460 20,493 The Hempsted Heritage Fund 72,348 - 68,876 0 Arnold Mary Carlson 5,685 203 5,673 179 3,141,816? '3 135,131 3,163,153 124,640 11 NOTE 5 BENEFICIAL INTEREST IN TRUSTS (CONTINUED) The Society received distributions for the following purposes for the years ended March 31: 2015 2014 For operations 13 5,13 1 124,640 For restoration/renovations 135,131 124,640 NOTE 6 FERRIDAY FUND - CHARITABLE TRUST The Society maintains and conserves The Hay (Bellamy-Ferriday Estate) received through the bequest of Caroline erriday. Caroline Ferriday also established the Ferriday Fund Charitable Trust, from which the Society receives, upon the discretion of the Trustees, an annual distribution for the care, maintenance and preservation of the property. The Society received the following distributions for the years ended March 31: 2015 - 2014 For operations 131,328 130,052 For restoration/renovations 19, 800 - 151,128 130,052 NOTE 7 PROPERTY AND EQUIPMENT Property and equipment was as follows as of March 31: 2015 2014 Computers and software 8 55,527 52,544 Furniture and equipment 3 6,144 3 5,481 91 ,671 88,025 Less: accumulated depreciation (83,527) (78,509) 8,144 9,516 NOTE 8 DESIGNATED BY BOARD FOR ENDOVVMENT The market value Of the investments designated by the Board for endowment purposes, as a component of unrestricted net assets, was comprised of the following speci?c components as of March 31: 20 15 20 14 Unrestricted Endowment (General Operations) 2,434,417 2,442,626 Margaret Fitch Brewster (General Operations) 287,620 288,919 Marcella Rockwell Putnam (General Operations) 606,499 609,239 Frederick Palmer (General Operations) 3,846 3,864 Frederick Palmer Memorial Fund (Palmer Warner) 1,462,949 1,468,284 Buttolph-Williams Holcombe (Buttolph~Williams) 165,162 165,908 Main Street History Center (Butler-McCook) 170,184 170,983 Judith Dana Theme (Restoration) 1,752,694 1,759,936 6,883,371 8 6,909,759 12 NOTE 9 TEMPORARILY RESTRICTED AND PERMANENTLY RESTRICTED NET ASSETS The market value of the temporarily restricted and permanently restricted net assets was comprised of the following speci?c components as of March 31: Designated for Endowment Katherine Chaffee Roberts Memorial (Amasa Day House) Palmer Accumulated Surplus Fund (Palmer-Warner House) Sumner Fuller (Hatheway House) Phelps Hatheway (Hatheway House) Nathan Hale (Hale Homestead) John Brush Hempsted (Hempsted Houses) Dorothy Clark Archibald (Nathaniel Hempsted House) Mary Dana Wells (Joshua Hempsted House) Ruth W. Newcomb (Joshua Hempsted House) Charles T. Berry - Residuary? Trust (Forge Farm) Charles T. Berry - Marital Trust (Forge Farm) Virginia Berry (Forge Farm) Charlotte Isham (Isham?Terry House) Julia Isham (Isharn-Terry House) Isham?Terry Accumulated Surplus Subtotal designated for endowment Bene?cial Interest in Trusts Anson T. and Francis A. McCook Trusts (Butler-McCook Homestead) McCook Trust Reserve (Butler-McCook Homestead) Mary Dana Wells 1988 Trust (Palmer-Warner House) Sumner Fuller Trust (Hatheway House) The Hempsted Heritage Fund (Hempsted Houses) Arnold and Mary Carlson (Hale Homestead) Subtotal bene?cial interest in trusts Designated for Operations 2015 2014 Temporarily Permanently Temporarily Permanently Restricted Restricted Restricted Restricted 295,099 100,000 296,884 100,000 44,175 - 44,3 74 - 157,793 100,000 15 8,957 100,000 22,785 - 22,888 - 203,468 50,000 204,613 50,000 72,067 27,801 72,519 27,801 150,441 105,000 151,595 105,000 16,520 10,000 16,639 10,000 76,3 14 76,659 - 513,368 261,961 516,871 261,961 331,786 - 333,285 - 369,418 86,83 8 371,479 86,838 308,613 151,945 310,694 151,945 429,712 180,375 432,468 1 80,3 75 5,972 5,999 - 2,997,531 1 ,07 3,920 3,015,924 1,073,920 - 2,181,816 2,217,979 51,3 52 - 51,139 - - 504,394 - 489,026 - 326,221 330,460 - 72,348 - 68,876 - 5,685 - 5,673 51,352 3,090,464 51,139 3,112,014 794,185 - 1,015,541 - 3,843,068 4,164,384 4,082,604 4,185,934 13 NOTE 10 CONTRIBUTIONS AND GRANTS Contributions and grants were received from the following benefactors during the year ended March 31: Contributions and Grants for Education; Collections Care and Management; and Operations: Barnwood Foundation Beverly David Eaton Trust Bodenwein Charles Robinson Foundation City of New London Connecticut Community Foundation Connecticut Department of Economic Development Connecticut Humanities Council Donated Goods and Services Edward Ann Roberts Foundation Preston Trust Fisher Foundation Frank Palmer Fund George A Grace Long Foundation Greater Hartford Arts Council Harkness Family Fund Hartford Foundation for Public Giving (HF PG) I-lFPG/Coburn Trust Family Fund I-IFPG/Richard Garmany Fund Fund Individuals Institute of Museum and Library Services Litch?led Garden Club New Alliance Bank Program Sponsors SBM Charitable oundaticn Corporation 14 2015 2014 5,000 2,500 2,496 - 2,000 - 3,000 2,500 3,571 - 181 - 14,659 49,500 18,644 - - 7,147 - 5,000 3,500 3,000 1,000 1,500 - 35,000 2,500 - 37,793 44,215 500 - 6,485 - - 5,000 - 1,000 6,000 2,500 6,000 - 81,974 78,688 42,664 80,655 . 800 - 3,500 950 1,500 25,000 30,000 2,500 2,500 26 7 T73 NOTE 11 CONTRIBUTIONS AND GRANTS Restoration/renovation contributions were received from the following benefactors during the year ended March 31: 201 5 2014 1772 Foundation 7,250 - Amiel Zak Foundation 5,000 8,000 City of Hartford - 500,000 Connecticut Natural Gas 11,753 Ensworth Charitable Trust 25,000 Ferriday Fund - 12,500 Hartford Foundation for Public Giving 89,631 43 8,893 Individual Contributions 14,109 - Institute of Museum Library Services - 30,056 Mortensen Foundation - 176,500 Northeast Utilities - 3,918 SBM Charitable Trust 20,000 20,000 State of Connecticut: Commission on Culture and Tourism - 176,500 The Hartford Insurance 50,000 50,000 Travelers Foundation 25,000 185,990 1,478,120 There are contingent grants and pledges outstanding of approximately $191,000 and $472,000 for the years ended March 31, 2015 and 2014, respectively. In addition, the Society has received a contingent funding commitment of $750,000 ?'om the State of Connecticut (DECD) for restoration of the barns at the Nathan Hale Homestead. The William and Alice Mortensen Foundation committed $176,500 to the Amos Bull/Butler-McCook Campus Renovation Project to be paid to the Society at a rate of $3 0,000 per year over the next six years. Thisgrant was approved on June 20, 2013. As of March 31, 2015 and 2014 the cumulative amount received was $60,000 and $30,000, respectively. NOTE 12 - For the years ended March 31, 2015 and 2014, the Society spent $412,725 and $1,431,713, respectively, on major restoration and renovation for the Amos Bull/Butler McCook Campus renovation project and prioritized property preservation needs at all sites. NOTE 13 PENSION PLAN The Society maintains a money purchase pension plan. All full?time employees who are at least 21 years old are eligible to participate on the month following the completion of three months service. All eligible participants become 100% vested immediately. All contributions are made by the Society at an amount equivalent to 7.5% of the eligible participants? annual compensation. Total contributions for the years ended March 31, 2015 and 2014 were $11,852 and $14,414, respectively. 15 NOTE 14 OPERATING LEASES The Society rented of?ce space under a month to month lease that was terminated in April 2014 the lease when the Society moved their headquarters into the Amos Bull House. Of?ce rental expense was $5,888 and $41,985 for the years ended March 31, 2015 and 2014, respectively. NOTE 15 LINE OF CREDIT On January 17, 2014, the Society entered into an agreement for a secured and revolving line of credit with a bank that allowed for borrowings up to $1,000,000. Total borrowings are restricted by the Board of Trustees to a maximum of $600,000. The purpose of the line of credit is to assist in the funding of the construction of the Amos Bull House. Interest accrues at a rate per annum equal to the greater of the LIBOR Rate plus 1.75%. The line of credit is secured by certain unrestricted endowment funds in the securities account and had no outstanding balance at March 31, 2015 and 2014. During the year ended March 31, 2015, $55,000 was drawn on the line of credit and repaid. There are no anticipated further drawings for the purpose designated by the Board of Trustees. l6 THE ANTIQUARIAN LANDMARKS SOCIETY, INC. CONNECTICUT LANDMARKS INDEPENDENT REPORT AND FINANCLAL STATEMENTS THE ANTIQUARIAN LANDMARKS SOCIETY, INC. d/bfa CONNECTICUT LANDMARKS Contents March 31, 2016 and 2015 Independent Auditors? Report 1 Statements of Financial Position 2 Statement of Activities 3 - 4 Statements of Functional Expenses 5 - 6 Statements ofCash Flows 7 Notes to Financial Statements 8 - 17 WHITTLESEY HADLEY, P.C. Certi?ed Public Accountants/Consultants 280 Trumbull Street, 24th Floor Hartford, Connecticut 06103-3509 INDEPENDENT REPORT 860.522.3111 (voice) To the Board of Trustees of 860.728.0232 (fax) The Antiquarian and Landmarks Society, Inc. d/b/a Connecticut Landmarks WV-WhCPaeom Report on the Financial Statements We have audited the accompanying ?nancial statements of The Antiquarian and Landmarks Society, Inc. d/b/a Connecticut Landmarks, which comprise the statement of ?nancial position as of March 31, 2016, and the related statements of activities, functional expenses, and cash ?ows for- the year then ended, and the related notes to the ?nancial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these ?nancial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of ?nancial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these ?nancial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the ?nancial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the ?nancial statements. The procedures selected depend on the auditors? judgment, including the assessment of the risks of material misstatement of the ?nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the ?nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of signi?cant accounting estimates made by management, as well as evaluating the overall presentation of the fmancial statements. We believe that the audit evidence we have obtained is suf?cient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the ?nancial statements referred to above present fairly, in all material respects, the ?nancial position of The Antiquarian and Landmarks Society, Inc. dfb/a Connecticut Landmarks as of March 31, 2016, and the changes in its net assets and its cash ?ows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Report on Summarized Comparative Information We have previously audited The Antiquarian and Landmarks Society, Inc.?s 2015 ?nancial statements, and our report dated June 24, 2015, expressed an unmodi?ed opinion on those audited ?nancial statements. In our opinion, the summarized comparative information presented herein as of and for the year ended March 31, 2015, is consistent, in all material respects, with the audited ?nancial statements from which is has been derived. pf. Hartford Hamden 0 Holyoke 1 Hartford, Connecticut June 29, 2016 THE ANTIQUARIAN LANDMARKS SOCIETY, INC. d/b/a CONNECTICUT LANDMARKS Statements of Financial Position March 31, 2016 and 2015 . Assets: Cash and equivalents Marketable securities, at market value Grants and accounts receivable Prepaid expenses Bene?cial interest in trusts Property and equipment, net Total assets Liabilities and Net Assets: Liabilities: Accounts payable and accrued expenses Net assets: Unrestricted: Designated by Board for endowment purposes Designated for proPerty and equipment Undesignated Total unrestricted Temporarily restricted Permanently restricted Total net assets Total liabilities and net assets The accompanying notes are an integral part of the ?nancial statements 2016 2015 1,079,346 990,401 10,157,146 10,954,781 228,589 260,595 29,757 18,139 2,895,821 3,141,816 21,203 8,144 14,411,862 15,373,876 169,814 53,411 6,400,643 6,883,371 21,203 8,144 410,123 421,498 6,831,969 7,313,013 3,491,991 3,843,068 3,918,088 4,164,384 14,242,048 15,320,465 14,411,862 15,373,876 THE ANT IQUARIAN LANDMARKS SOCIETY, INC. d/b/a CONNECTICUT LANDMARKS Statement of Activities For the year ended March 31, 2016 (with comparative totals for the year ended March 31, 2015) 2016 2015 Unrestricted Temporarily Permanently Operating Non-Operating Total Restricted Restricted Total Total Operating revenues: Investment return 8 442,260 - 442,260 3 - 3 442,260 426,217 Bene?cial trust distributions 136,725 - 136,725 - 136,725 135,131 Ferriday fund 131,328 - 131,328 - 131,328 151,128 Contributions grants 166,827 - 166,827 116,500 - 283,327 266,417 Restorationlrenovations investment distributions - 84,288 - 34,288 81,060 Restoration/renovations contributions grants - 15,000 15,000 84,952 - 99,952 185,990 Special event programs (net of expenses) 24,508 - 24,508 - - 24,508 25,670 Admissions sales 87,253 - 87 ,253 - - 87,253 75,273 Overseer payments 52,041 - 52,041 - - 52,041 47,974 Membership dues 9,341 - 9,341 - - 9,341 11,569 Interest other income 584 - 584 - 584 5,497 Net assets released ?-orn restrictions 132,757 189,442 322,199 (322,199) - - - Total operating revenues 1,183,624 204,442 1,388,066 (36,459) - 1,351,607 1,411,926 Operating expenses: Museum services 893,912 893,912 - - 893,912 947,592 Restoration and renovation - 183,928 183 ,928 - 183 ,928 412,725 Administration 173,973 - 173,973 - - 173,973 182,557 Fundraising 122,124 - 122,124 - - 122,124 133,568 Total operating expenses 1,190,009 183,928 1,373,937 - 1,373,937 1,676,442 Changeinnet assets from operations 55 (6,385) 20,514 3 14,129 (36,459) - (22,330) (264,516) The accompanying notes are an integral part of the ?nancial statements 3 THE ANTIQUARIAN LANDMARKS SOCIETY, INC. d/b/a CONNECTICUT LANDMARKS Statement of Activities (continued) For the year ended March 31, 2016 (with comparative totals for the year ended March 31, 2015) Other changes in net assets: Investment return Net change in market value of bene?cial interest in trusts Bad debts Depreciation Net other changes in net assets Total change in net assets Net assets, beginning of year Net assets, end of year 20 6 Unrestricted Temporarily Permanently Operating Non-Operating Total Restricted Restricted - (482,717) (482,717) $614,618) - - - (246,296) (5,000) (5,000) - - - (7,456) (7,456) - (5,019 (490,173) (495,173) (314,618) (246,296) (11,385) 8 (469,659) (481,044) 8 (351,077) (246,296) 7,313,013 3,843,068 4,164,384 $6,831,969 $3,491,991 $3,918,088 The accompanying notes are an integral part of the ?nancial statements 4 Total 3 (797,335) (246,296) (5,000) (7,456) (1,056,087) (1,078,417) 15,320,465 $14,242,048 2015 Total 8 (44,581) (21,550) (4,150) (70,281) (334,797) 15,655,262 $15,320,465 THE ANTIQUARIAN SOCIETY, INC. dlb/a CONNECTICUT LANDNIARKS Statement of Functional Expenses For the year ended March -3 l, 2016 Salaries and bene?ts Personnel costs Staff travel Insurance Professional Of?ce rent Of?ce Postage Promotion and publicity Newsletter Education programs Collection care and management Building and grounds maintenance/restoration Utilities Security Real estate taxes Totals The accompanying notes are an integral part of the ?nancial statements Program Services Museum Services 8 453,268 3,802 10,358 73,677 49,383 322 26,679 2,540 28,975 1 1,338 56,618 40,150 72,430 50,426 8,865 5,081 893,912 Restoration Renovation 8 5 32,324 183,928 Administration 68,834 1,991 421 3,335 92,679 59 4,433 231 173,973 55 Fundraising 80,762 414 991 361 19,601 66 11,538 581 5,542 122,124 Total 635,188 6,207 1 1,770 77,373 161,663 447 42,650 3,352 34,517 1 1,338 56,618 40,150 224,034 54,684 8,865 5,081 1,373,937 ANTIQUARIAN LANDMARKS SOCIETY, INC. d/b/a CONNECTICUT LANDMARKS Statement of Functional Expenses For the year ended March 31, 2015 Salaries and bene?ts Personnel costs Staff travel Insurance Professional Of?ce rent Of?ce Postage Promotion and publicity Newsletter Education programs Building and grounds maintenance/restoration Utilities Security Real estate taxes Totals Program Services Museum Services 8 419,637 4,529 13,820 68,293 74,583 4,226 28,471 1,898 41,303 1 1,846 53,489 132,979 66,263 21,721 4,534 947,592 The accompanying notes are an integral part of the ?nancial statements Restoration 6 Renovation 34,210 378,515 412,725 Administration 8 101,415 29,521 408 3,142 40,233 787 4,900 173 182,557 Fundraising 87,760 5 61 961 357 24,936 875 10,451 437 4,992 133,568 Total 643,022 34,61 1 15,189 71,792 139,752 5,888 43,822 2,508 46,295 1 1,846 53,489 511,494 70,479 21,721 4,534 1,676,442 THE ANTIQUARIAN LANDMARKS SOCIETY, INC. d/b/a CONNECTICUT LANDMARKS Statements of Cash Flows For the year ended March 31, 2016 and 2015 Cash ?ows from operating activities: Change in net assets Adjustments to reconcile change in net assets to net change in cash from operating activities: Unrealized and realized losses/(gains) on investments Depreciation Increase/decrease in: Prepaid expenses Grants and accounts receivable Accounts payable and accrued expenses Net change in cash from operating activities Cash ?ows from investing activities: Purchases of fixed assets Sales of marketable securities Purchases of marketable securities Net change in cash from investing activities Change in cash Cash and equivalents, beginning of year Cash and equivalents, and of year The accompanying notes are an integral part of the ?nancial statements 7 2016 (1,078,417) 2015 (334,797) 628,940 (197,120) 7,456 4,150 (11,618) 676 32,006 259,025 1 16,403 20,784 (305,230) (247,282) (20,515) (2,778) 5,212,435 13,437,274 (4,797,745) (13,174,025) 394,175 260,471 88,945 13,189 990,401 977,212 1,079,346 990,401 THE ANTIQUARIAN LANDMARKS SOCIETY, INC. d/b/a CONNECTICUT LANDMARKS Notes to Financial Statements March 31, 2016 and 2015 NOTE 1 SIGNIFICANT ACCOUNTING POLICIES Operation - The Antiquarian and Landmarks Society, Inc., (the ?Society?) dfb/a Connecticut Landmarks, maintains and conserves twelve historic properties in Connecticut. Basis of Accounting The ?nancial statements have been prepared on the accrual basis except for investment income, which is recorded as received. To the extent that current funds are used to ?nance historic capital assets, amounts so provided have been accounted for as expenditures. Financial Statement Presentation Financial statement presentation follows the requirements of the Financial Statements ofNot?for?Pro?t Organizations topic of the FASB Accounting Standards Codi?cation. Following these requirements, the Society is required to report information regarding its ?nancial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. Unrestricted Net Assets - Unrestricted net assets are for the general activities of the Society. Temporarily Restricted Net Asset - Temporarily restricted net assets are gifts that are restricted by the donor for a speci?c purpose or income derived from permanently restricted net assets that is restricted by the donor for a speci?c purpose. The Society expends temporarily restricted net assets in accordance with the donor?s intent. Pennanentlv Restricted Net Assets Permanently restricted net assets represent gifts that are restricted for perpetuity by the donor and the Society?s interest in the Francis A. McCook, Anson T. McCook, Sumner Fuller, Mary Dana Wells 1988 Trusts, and the Arnold and Mary Carlson and Hempsted Heritage Funds. Cash and Equivalents The Society considers all highly liquid investments purchased with a maturity date of three months or less at the date of purchase to be cash equivalents. Marketable Securities - Investments are stated at market value as of the end of the year. Endowment Assets and Investment Policies The Society complies with Endowments of Not?for-Pro?t Organizations: Net Asset Classification of Funds Subject to an Enacted Version of the Uniform Prudent Management of Institutional Funds Act, and Enhanced Disclosures for All Endowment Funds topic of the FASB Codi?cation. This topic "provides guidance on the net asset classi?cation of donor-restricted endowment funds for not-for-profit organizations that is subject to the Uniform Prudent Management of Institutional Funds Act of 2006 The Board of Directors of the Society have adopted spending policies for investment returns from the endowments to be utilized to support the annual operating activities of the Society. All spending policies are based on 5% of the previous twelve quarters average market value of the investments. Fair Value Measurements - The Society follows the Fair Value Measurements topic of the FASB Codi?cation, which de?nes fair value and establishes a ?arnework for measuring fair value in generally accepted accounting principles. It de?nes fair value as the exchange price that would be received for an asset, or paid to transfer a liability (exit price) in principal, or most advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date. It also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs that may be used to measure fair values: 8 NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 - Signi?cant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 - Signi?cant unobservable inputs that re?ect the Society?s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Valuation techniques based on unobservable inputs are highly subjective and require judgments regarding signi?cant matters, such as the amount and timing of future cash ?ows and the selection of discount rates that may appropriately reflect market and credit risks. Changes in these judgments often have a material impact on the fair value estimates. In addition, since these estimates are as of a speci?c point in time, they are susceptible to material near-term changes. There have been no changes in the valuation methodologies used for assets measured at fair value at March 31, 2016 and 2015. Short term investments and equity funds are valued by reference to quoted market prices and other relevant information generated by market transactions. Historic Propertie - The Society follows the Revenue Recognition topic of the FASB Codi?cation. In accordance with the topic, the Society does not capitalize the cost or appraisal value or the costs of restorations and renovations of any historic assets/properties or recognize them as revenues or gains. These assets/properties, which are signi?cant in value, have been acquired by the Society ?'om bequests and subsequently restored. The topic provides that such donations need not be recognized if they are added to collections that are held for public exhibition, education, or research in furtherance of public service rather than ?nancial gain; are protected, kept unencumbered, cared for, and preserved. Property and Equipment - The Society owns computer software, furniture, and equipment, which are being depreciated using the straight-line method over a useful life of three and ?ve years, respectively. Acquisitions of of?ce equipment in excess of $2,500, real property in excess of $50,000, and repairs and for non-historic properties in excess of $10,000 are capitalized. Use of Estimates - The preparation of ?nancial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the ?nancial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Income Taxes - The Society is exempt under Section 501(c) 3 of the Internal Revenue Code and is not subject to federal and state taxes. Credit Risk - The Society maintains cash in bank accounts which, at times, may exceed federally insured limits, has not experienced losses in such accounts and believes it is not exposed to signi?cant credit risk. Commitments - Grants require the ?ll?llment of certain conditions as set forth in the instrument of the grant. Failure to ful?ll the conditions could result in the return of funds to grantors. Subsequent Events Measurement Date - The Society monitored and evaluated any subsequent events for footnote disclosures or adjustments required in its ?nancial statements for year ended March 31, 2016 through June 29, 2016, the date on which ?nancial statements were available to be issued. NOTE 2 - PROPERTIES The following is a listing of the properties that the Society maintains and conserves in Connecticut: Joshua Hempsted House New London, CT Buttolph-Williams House Wethers?eld, CT Nathan Hale Homestead Coventry, CT Phelps-Hatheway House Suf?eld, CT Amasa Day House Moodus, CT Butler-McCook Homestead Hartford, CT Nathaniel Hempsted House New London, CT Isham-Terry House Hartford, CT Forge Farm Stonington, CT The Hay (Bellarny-Ferriday Estate) Bethlehem, CT Palmer-Warner House East Haddam, CT Amos Bull House Hartford, CT NOTE 3 MARKETABLE SECURITIES Purchased by the Society, 1942 Purchased by the Society, 1942 Bequest of George Dudley Seymour, 1945 Gift of Claudine Fuller Ackroyd, Elizabeth Fuller Carter and Laurene Fuller Vinette, 1962 Bequest of Katherine Chaffee Roberts, 1967 Bequest of Frances A. and Anson T. McCook, 1 97 1 Purchased by the Society, 1971 Bequest of Julia and Charlotte Isham, 1980 Bequest of Charles T. and Virginia Berry, 1982 Bequest of Caroline Ferriday, 1990 Gift of Howard Metzger, 1993 Gift of State of Connecticut, 2008 The spending policy is applied to the following endowment funds at March 31: Unrestricted Consolidated restricted Judith Dana Theme Total 10 2016 2015 2,263,841 2,434,417 6,263,554 6,767,670 1,629,751 1,752,694 '?onszm NOTE 3 NIARKETABLE SECURITIES (CONTINUED) Marketable securities were comprised of the following at March 3 1: Stocks Bonds Short-term investments Total 2016 2015 E: Market Value Market Value 6,035,531 6,176,872 6,302,588 6,627,495 3,598,005 3,510,099 3,517,927 3,468,867 470,175 470,175 898,449 858,419 10,103,711 10,157,146 A summary of the Society?s investment return is presented below: Interest and dividends Realized (losses) Unrealized (losses) Total return on investments Less: Total used per operating spending policy capital spending policy Bene?cial trust distributions Additional distributions Less: Amounts temporarily restricted Investment return, loss amounts designated for current operations Interest and dividends Realized gains Unrealized gains/(losses) Total return on investments Less: Total used per .operating spending policy capital spending policy Bene?cial trust distributions Additional distributions Less: Amounts temporarily restricted Investment return, less amounts designated for current operations 8 10,718,964 8 10,954,781 March 3 1, 2016 Temporarily Permanently Unrestricted Restricted Restricted Io_tal 140,511 83,172 34,624 258,307 (174,079) (102,147) (14,610) (290,83 6) (118,247) (69,801) (150,057) (338,105) (151,815) (88,776) (130,043) (370,634) (100,165) (225,842) (116,253) (442,260) - (84,288) - (84,28 8) (136,725) - (136,725) (94,012) - (94,012) (482,717) (398,906) (246,296) (1,127,919) - 84,288 84,288 (482,717) (314,618) (246,296) (1,043,631) March 31, 2015 Temporarily Permanently Unrestricted Restricted Restricted LE 212,819 125,698 17,549 356,066 641,526 379,552 41,988 1,063,066 (564,248) (333,757) 32,059 (865,946) 290,097 171,493 91,596 553,186 (123,152) (189,919) (113,146) (426,217) - (81,060) - (81,060) (135,131) - - (135,131) (57,969) - - (5 7,969) (26,155) (99,486) (21,550) (147,191) 81,060 - 81,060 (26,155) (18,426) (21,550) (66,131) 11 NOTE 3 NIARKETABLE SECURITIES (CONTINUED) The reconciliation of the Society?s endowment by net asset category is as follows: Temporarily Permanently Unrestricted Restricted Restricted Total March 31, 2014 6,909,759 3,067,033 4,185,934 14,162,726 Interest and dividends 252,919 149,7 81 51,985 454,685 Realized gains 641,526 379,552 20,137 1,041,215 Unrealized gains/(losses) (564,248) (333,757) 32,059 (865,946) Contributions, grants and distributions - - 4,221 4,221 Endowment distributions (316,234) (189,943) (134,928) (641,105) Net additions (18) 23 39,41 1 39,416 Investment fees (40,333) (23,847) (34,435) (98,615) March 31, 2015 6,883,371 3,048,842 4,164,384 14,096,597 Interest and dividends 174,145 102,709 70,496 347,350 Realized (losses) (174,079) (102,147) (14,610) (290,836) Unrealized (losses) (1 18,257) (69,789) (150,057) (338,103) Contributions, grants and distributions - - - - Endowment distributions (330,902) (225,842) (278,956) (835,700) Net additions - - 162,703 162,703 Investment fees (33 ,635) (19,53 7) (3 5,872) (89,044) March 31, 2016 6,400,643 2,734,236 3,918,088 13,052,967 NOTE 4 FAIR VALUE NIEASUREMENTS Fair values of assets and liabilities measured on a recun'ing basis is as follows at March 31: 2016 Fair Value Level 1 Level 2 Level 3 Short-term investments 469,054 469,054 - - Equity funds 9,688,092 9,688,092 - Bene?cial interest in trusts 2 895 821 - - 2,895,821 8 13,052,967 10,157,146 - 8 2,895,821 2015 Fair Value Level 1 Level 2 Level 3 Short?term investments 54,128 54,128 - - Equity funds 10,900,653 10,900,653 - Bene?cial interest in trusts - 3,141,816 314,096,597 $10,954,781 - 3,141,816 NOTE 5 BENEFICIAL INTEREST IN TRUSTS The Society is named as the bene?ciary of several trusts. The Society received the following distributions from its bene?cial interest in trusts for the years ended March 31: 2016 2015 Market Value Distribution Market Value Distribution Anson Francis A McCook 1,991,923 90,814 2,181,816 98,043 McCook Trust Reserve 51,653 - 51,3 52 Mary Dana Wells 1998 Trust 486,947 25,220 504,394 23,530 Sumner Fuller Trust 297,176 13,045 326,221 13,355 The Hempsted Heritage Fund 62,846 7,444 72,348 - Arnold Mary Carlson $276 202 5,685 203 2,895,821 73 136,725 1 3,141,816 135,131 12 NOTE 5 - BENEFICIAL INTEREST IN TRUSTS (CONTINUED) The Society received distributions for the following purposes for the years ended March 31: . 2016 2015 For operations 38 136,725 135,131 For restoration/renovations - - 136,725 135,131 NOTE 6 - FERRIDAY FUND - CHARITABLE TRUST The Society maintains and conserves The Hay (Bellamy-Ferriday Estate) received through the bequest of Caroline Ferriday. Caroline Ferriday also established the Ferriday Fund Charitable Trust, from which the Society receives, upon the discretion of the Trustees, an annual distribution for the care, maintenance and preservation of the property. The Society received the following distributions for the years ended March 31: 2016 2015 For operations 53 131,328 131,328 For restoration/renovations - 19,800 131,328 151,128 NOTE 7 PROPERTY AND EQUIPMENT Property and equipment was as follows as of March 31: 2016 20 15 Computers and software 33 65,719 55,527 Furniture and equipment 36,144 36,144 101,863 91,671 Less: accumulated depreciation (80,660) (83,527) 21,203 8 8,14? NOTE 8 DESIGNATED BY BOARD FOR ENDOWMENT The market value of the investments designated by the Board for endowment purposes, as a component of unrestricted net assets, was comprised of the following specific components as of March 31: 20 16 201 5 Unrestricted Endowment (General Operations) 2,2 63,841 2,434,417 Margaret Fitch Brewster (General Operations) 267,370 287,620 Marcella Rockwell Putnam (General Operations) 563,800 606,499 Frederick Palmer (General Operations) 3,575 3,846 Frederick Palmer Memorial Fund (Palmer Warner) 1,3 60,569 1,462,949 Buttolph-Williams Holcombe (Buttolph-Williams) 153 ,534 165,162 Main Street History Center (Butler-McCook) 158,203 170,184 Judith Dana Thorne (Restoration) 1,629,751 1,752,694 8 6,400,643 8 6,883,371 13 NOTE 9 - TEMPORARILY RESTRICTED AND PERMANENTLY RESTRICTED NET ASSETS The market value of the temporarily restricted and permanently restricted net assets was comprised of the following Speci?c components as of March 31: Designated for Endowment Katherine Chaffee Roberts Memorial (Amasa Day House) Palmer Accumulated Surplus Fund (Palmer-Warner House) Sumner Fuller (Hathaway House) Phelps Hathaway (Hatheway House) Nathan Hale (Hale Homestead) John Brush Hempsted (Hempsted Houses) Dorothy Clark Archibald (Nathaniel Hempsted House) Mary Dana Wells (Joshua Hempsted House) Ruth W. Newcomb (Joshua Hempsted House) Charles T. Berry - Residuary Trust (Forge Farm) Charles T. Berry - Marital Trust (Forge Farm) Virginia Berry (Forge Farm) Charlotte Isham (Isham-Terry House) Julia Isham (Isham-Terry House) Isham-Terry Accumulated Surplus Subtotal designated for endowment Bene?cial Interest in Trusts Anson T. and Francis A. McCook Trusts (Butler-McCook Homestead) Trust Reserve (Butler-McCook Homestead) Mary Dana Wells 1988 Trust (Palmer-Warner House) Sumner Fuller Trust (Hatheway House) The Hempsted Heritage Fund (Hempsted Houses) Arnold and Mary Carlson (Hale Homestead) Subtotal bene?cial interest in trusts Designated for Operations 2016 2015 Temporarily Permanently Temporarily Permanently Restricted Restricted Restricted Restricted 267,283 100,000 295,099 100,000 41,065 . 44,175 139,643 100,000 157,793 100,000 21,181 - 22,785 - 185,623 50,000 203,468 50,000 65,036 27,801 72,0 67 27,801 132,457 105,000 150,441 105,000 14,653 10,000 16,520 10,000 70,941 - 76,3 14 - 449,348 261,961 513,368 261,961 298,992 331,786 327,86? 86,838 369,418 86,838 276,189 151,945 308,613 151,945 386,759 180,375 429,712 180,375 5,5 51 - 5,972 - 2,682,582 1,073,920 2,997,531 1,073,920 - 1,991,923 - 2,181,816 51,653 - 51,352 486,947 - 504,394 297,176 - 326,221 62,846\ - 72,348 - 5,276 - 5,685 51,653 2,844,168 51,352 3,090,464 757,756 - 794,185 - 3,491,991 3,918,088 3,843,068 4,164,384 l4 NOTE 10 CONTRIBUTIONS AND GRANTS Contributions and grants were received from the following benefactors during the year ended March 31: 2016 2015 Contributions and Grants for Education: Collections Care and Management: and Operations: Barnwood Foundation 3 5,000 5,000 Beverly David Eaton Trust - 2,496 Bodenwein - 2,000 Charles Robinson Foundation 4,000 3,000 Chester Kitchings Foundation 35,000 - City of New London 2,500 3,571 Connecticut Community Foundation 3 50 181 Connecticut Department Of Economic Development - 14,659 Connecticut Humanities Council - 18,644 Donated Goods and Services 750 - Edward Ann Roberts Foundation 2,000 - EW Preston Trust 4,500 3,500 Fisher Foundation - 1,000 Frank Palmer Fund 15,000 - George A Grace Long Foundation 3,000 2,5 00 Greater Hartford Arts Council 15,825 37,793 Harkness Family Fund - 500 Hartford Foundation for Public Giving 11,400 6,485 Fund 2,000 - HFPG/Coburn Trust 5,000 - HFPG/Fisher Fund 1,000 I-IFPG/Holcombe Fund 1,322 - Ellsworth Grant Fund 405 - Garmany Fund - 6,000 HFPG/Walker Fund 10,000 6,000 Individuals 63,23 6 81,974 Institute of Museum and Library Services 72,539 42,664 Gladwin Cannon Trust 3,500 - Program Sponsors 1,000 950 SBM Charitable Foundation 20,000 25,000 Society of Cincinnati in Connecticut 2,000 - Suf?eld Friends, Inc. 1,000 - UIL Corporation - 2,500 Woodbury Bethlehem Community Music Foundation 1,000 283,327 266,417 15 NOTE 11 CONTRIBUTIONS AND GRANTS Restoration/renovation contributions were received from the following benefactors during the year ended March 31: 2016 2015 1772 Foundation 8? - 7,250 Amiel Zak Foundation 5,000 5,000 Connecticut Natural Gas 3, 741 - Hartford Foundation for Public Giving - 89,631 Individual Contributions 1,21 1 14,1 09 SBM Charitable Trust - 20,000 State of Connecticut: Historic Preservation Of?ce 15,000 - The Hartford Insurance 50,000 50,000 TraveIers Foundation 25,000 99,952 185,990 There are contingent grants and pledges outstanding of approximately $169,500 and $191,000 for the years ended March 31, 2016 and 2015, respectively. In addition, the Society has received a contingent funding commitment of $750,000 from the State of Connecticut (DECD) for restoration of the barns at the Nathan Hale Homestead. The William and Alice Mortensen Foundation committed $176,500 to the Amos BullfButler?McCook Campus Renovation Project to be paid to the Society at a rate of $3 0,000 per year over the next six years. This grant was approved on June 20, 2013. As of March 31, 2016 and 2015 the cumulative amount received was $90,000 and $60,000, respectively. NOTE 12 RESTORATIONIRENOVATIONS For the year ended March 31, 2016 the Society spent $183,928 on prioritized property preservation needs at all sites. For the year ended March 31, 2015 the Society spent $412,725 on major restoration and renovation for the Amos Bull/Butler McCook Campus renovation project and prioritized property preservation needs at all sites. NOTE 13 PENSION PLAN The Society maintains a money purchase pension plan. All full-time employees who are at least 21 years old are eligible to participate on the month following the completion of three months service. All eligible participants become 100% vested immediately. All contributions are made by the Society at an amount equivalent to 7.5% of the eligible participants? annual compensation. Total contributions ?for the years ended March 31, 2016 and 2015 were $15,466 and $11,852, respectively. NOTE 14 OPERATING LEASES The Society rented of?ce Space under a month to month lease that was terminated in April 2014, when the Society moved their headquarters into the Amos Bull House. Of?ce rental expense was and $5,888 for the years ended March 31, 2016 and 2015, respectively. 16 NOTE 15 LINE OF CREDIT On January 17, 2014, the Society entered into an agreement for a secured and revolving line of credit with a bank that allowed for borrowings up to $1,000,000. Total borrowings are restricted by the Board of Trustees to a maximum of $600,000. The purpose of the line of credit was to assist with cash ?ow for renovation of the Amos Bull House. Interest accrues at a rate per annmn equal to the greater of the LIBOR Rate plus 1.75%. The line of credit is secured by certain unrestricted endowment funds in the securities account and had no outstanding balance at March 31, 2016 and 2015. During the year ended March 31, 2015, $55,000 was drawn on the line of credit and repaid. The Society did not draw on the line of credit during the year ended March 31, 2016. 17 THE ANTIQUARIAN LANDMARKS SOCIETY, INC. CONNECTICUT LANDMARKS INDEPENDENT REPORT AND FINANCLAL THE ANTIQUARIAN LANDMARKS SOCIETY, INC. d/bfa CONNECTICUT LANDMARKS Contents March 31, 2016 and 2015 Independent Auditors? Report ..1 Statements of Financial Position ..2 Statement of Activities .. 3 - 4 Statements of Functional Expenses .. 5 - 6 Statements of Cash Flows ., ..7 Notes to Financial Statements .. 8 - 17 WHITTLESEY HADLEY, P.C. Certi?ed Public Accountants/Consultants 280 Trumbull Street, 24th Floor Hartford, Connecticut 06103-3509 INDEPENDENT REPORT 860.522.3111 (voice) To the Board of Trustees of 860.728.0232 (fax) The Antiquarian and Landmarks Society, Inc. d/b/a Connecticut Landmarks War-whopan Report on the Financial Statements We have audited the accompanying ?nancial statements of The Antiquarian and Landmarks Society, Inc. d/b/a Connecticut Landmarks, which comprise the statement of ?nancial position as of March 31, 2016, and the related statements of activities, functional expenses, and cash ?ows for- the year then ended, and the related notes to the ?nancial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these ?nancial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of ?nancial statements that are free from material misstatement, whether due to fraud or error. Auditor's ReSponsibility Our responsibility is to express an opinion on these ?nancial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the ?nancial statements are free ?om material misstatement. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the ?nancial statements. The procedures selected depend on the auditors? judgment, including the assessment of the risks of material misstatement of the ?nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the ?nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of signi?cant accounting estimates made by management, as well as evaluating the overall presentation of the ?nancial statements. We believe that the audit evidence we have obtained is suf?cient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the ?nancial statements referred to above present fairly, in all material respects, the ?nancial position of The Antiquarian and Landmarks Society, Inc. dfb/a Connecticut Landmarks as of March 31, 2016, and the changes in its net assets and its cash ?ows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Report on Summarized Comparative Information We have previously audited The Antiquarian and Landmarks Society, Inc.?s 2015 ?nancial statements, and our report dated June 24, 2015, expressed an unmodi?ed opinion on those audited ?nancial statements. In our opinion, the summarized comparative information presented herein as of and for the year ended March 31, 2015, is consistent, in all material respects, with the audited ?nancial statements from which is has been derived. 2 pf. Hartford Hamden 0 Holyoke 1 Hartford, Connecticut June 29, 2016 THE ANTIQUARIAN LANDMARKS SOCIETY, INC. d/b/a CONNECTICUT LANDMARKS Statements of Financial Position March 31, 2016 and 2015 . Assets: Cash and equivalents Marketable securities, at market value Grants and accounts receivable Prepaid expenses Bene?cial interest in trusts Property and equipment, net Total assets Liabilities and Net Assets: Liabilities: Accounts payable and accrued expenses Net assets: Unrestricted: Designated by Board for endowment purposes Designated for proPerty and equipment Undesignated Total unrestricted Temporarily restricted Permanently restricted Total net assets Total liabilities and net assets The accompanying notes are an integral part of the ?nancial statements 2016 2015 1,079,346 990,401 10,157,146 10,954,781 228,589 260,595 29,757 18,139 2,895,821 3,141,816 21,203 8,144 14,411,862 15,373,876 169,814 53,411 6,400,643 6,883,371 21,203 8,144 410,123 421,498 6,831,969 7,313,013 3,491,991 3,843,068 3,918,088 4,164,384 14,242,048 15,320,465 14,411,862 15,373,876 THE ANT IQUARIAN LANDMARKS SOCIETY, INC. d/b/a CONNECTICUT LANDMARKS Statement of Activities For the year ended March 31, 2016 (with comparative totals for the year ended March 31, 2015) 2016 2015 Unrestricted Temporarily Permanently Operating Non-Operating Total Restricted Restricted Total Total Operating revenues: Investment return 8 442,260 - 442,260 3 - 3 442,260 426,217 Bene?cial trust distributions 136,725 - 136,725 - 136,725 135,131 Ferriday fund 131,328 - 131,328 - 131,328 151,128 Contributions grants 166,827 - 166,827 116,500 - 283,327 266,417 Restorationlrenovations investment distributions - 84,288 - 34,288 81,060 Restoration/renovations contributions grants - 15,000 15,000 84,952 - 99,952 185,990 Special event programs (net of expenses) 24,508 - 24,508 - - 24,508 25,670 Admissions sales 87,253 - 87,253 - - 87,253 75,273 Overseer payments 52,041 - 52,041 - - 52,041 47,974 Membership dues 9,341 - 9,341 - - 9,341 11,569 Interest other income 584 - 584 - 584 5,497 Net assets released ?-orn restrictions 132,757 189,442 322,199 (322,199) - - - Total operating revenues 1,183,624 204,442 1,388,066 (36,459) - 1,351,607 1,411,926 Operating expenses: Museum services 893,912 893,912 - - 893,912 947,592 Restoration and renovation - 183,928 183 ,928 - 183 ,928 412,725 Administration 173,973 - 173,973 - - 173,973 182,557 Fundraising 122,124 - 122,124 - - 122,124 133,568 Total operating expenses 1,190,009 183,928 1,373,937 - 1,373,937 1,676,442 Changeinnet assets from operations 55 (6,385) 20,514 3 14,129 (36,459) - (22,330) (264,516) The accompanying notes are an integral part of the ?nancial statements 3 THE ANTIQUARIAN LANDMARKS SOCIETY, INC. d/b/a CONNECTICUT LANDMARKS Statement of Activities (continued) For the year ended March 31, 2016 (with comparative totals for the year ended March 31, 2015) Other changes in net assets: Investment return Net change in market value of bene?cial interest in trusts Bad debts Depreciation Net other changes in net assets Total change in net assets Net assets, beginning of year Net assets, end of year 20 6 Unrestricted Non-Operating Permanently Restricted Temporarily Total Restricted Operating - (482,717) (482,717) $614,618) - - - (246,296) (5,000) - - (7,456) - (5,000) - (7,456) (510% (11,335) 3 (490,173) (495,173) (314,613) (246,296) (469,659) (431,044) 3 (351,077) (246,296) 7,313,013 3,843,068 4,164,384 $6,831,969 $3,491,991 $3,918,088 The accompanying notes are an integral part of the ?nancial statements 4 Total (797,335) (246,296) (5,000) (7,456) (1,056,037) (1,073,417) 15,320,465 314,242,043 2015 Total (44,531) (21,550) (4,50) (70,231) (334,797) 15,655,262 $15,320,465 THE ANTIQUARIAN SOCIETY, INC. dlb/a CONNECTICUT LANDNIARKS Statement of Functional Expenses For the year ended March -3 l, 2016 Salaries and bene?ts Personnel costs Staff travel Insurance Professional Of?ce rent Of?ce Postage Promotion and publicity Newsletter Education programs Collection care and management Building and grounds maintenance/restoration Utilities Security Real estate taxes Totals The accompanying notes are an integral part of the ?nancial statements Program Services Museum Services 8 453,268 3,802 10,358 73,677 49,383 322 26,679 2,540 28,975 1 1,338 56,618 40,150 72,430 50,426 8,865 5,081 893,912 Restoration Renovation 3 5 32,324 183,928 Administration 68,834 1,991 421 3,335 92,679 59 4,433 231 173,973 55 Fundraising 80,762 414 991 361 19,601 66 11,538 581 5,542 122,124 Total 635,188 6,207 1 1,770 77,373 161,663 447 42,650 3,352 34,517 1 1,338 56,618 40,150 224,034 54,684 8,865 5,081 1,373,937 ANTIQUARIAN SOCIETY, INC. d/b/a CONNECTICUT LANDMARKS Statement of Functional Expenses For the year ended March 31, 2015 Salaries and bene?ts Personnel costs Staff travel Insurance Professional Of?ce rent Of?ce Postage Promotion and publicity Newsletter Education programs Building and grounds maintenance/restoration Utilities Security Real estate taxes Totals Program Services Museum Services 8 419,637 4,529 13,820 68,293 74,583 4,226 28,471 1,898 41,303 1 1,846 53,489 132,979 66,263 21,721 4,534 947,592 The accompanying notes are an integral part of the ?nancial statements Restoration 6 Renovation 34,210 378,515 412,725 Administration 8 101,415 29,521 408 3,142 40,233 787 4,900 173 182,557 Fundraising 87,760 5 61 961 357 24,936 875 10,451 437 4,992 133,568 Total 643,022 34,61 1 15,189 71,792 139,752 5,888 43,822 2,508 46,295 1 1,846 53,489 511,494 70,479 21,721 4,534 1,676,442 THE ANTIQUARIAN LANDMARKS SOCIETY, INC. d/b/a CONNECTICUT LANDMARKS Statements of Cash Flows For the year ended March 31, 2016 and 2015 Cash ?ows from operating activities: Change in net assets Adjustments to reconcile change in net assets to net change in cash from operating activities: Unrealized and realized losses/(gains) on investments Depreciation Increase/decrease in: Prepaid expenses Grants and accounts receivable Accounts payable and accrued expenses Net change in cash from operating activities Cash ?ows from investing activities: Purchases of fixed assets Sales of marketable securities Purchases of marketable securities Net change in cash from investing activities Change in cash Cash and equivalents, beginning of year Cash and equivalents, and of year The accompanying notes are an integral part of the ?nancial statements 7 2016 (1,078,417) 2015 (334,797) 628,940 (197,120) 7,456 4,150 (11,618) 676 32,006 259,025 1 16,403 20,784 (305,230) (247,282) (20,515) (2,778) 5,212,435 13,437,274 (4,797,745) (13,174,025) 394,175 260,471 88,945 13,189 990,401 977,212 1,079,346 990,401 THE ANTIQUARIAN LANDMARKS SOCIETY, INC. d/b/a CONNECTICUT LANDMARKS Notes to Financial Statements March 31, 2016 and 2015 NOTE 1 SIGNIFICANT ACCOUNTING POLICIES Operation - The Antiquarian and Landmarks Society, Inc., (the ?Society?) dfb/a Connecticut Landmarks, maintains and conserves twelve historic properties in Connecticut. Basis of Accounting The ?nancial statements have been prepared on the accrual basis except for investment income, which is recorded as received. To the extent that current funds are used to ?nance historic capital assets, amounts so provided have been accounted for as expenditures. Financial Statement Presentation Financial statement presentation follows the requirements of the Financial Statements ofNot?for?Pro?t Organizations topic of the FASB Accounting Standards Codi?cation. Following these requirements, the Society is required to report information regarding its ?nancial position and activities according to three classes of net aSSets: unrestricted net assets, temporarin restricted net assets, and permanently restricted net assets. Unrestricted Net Assets - Unrestricted net assets are for the general activities of the Society. Temporarily Restricted Net Asset - Temporarily restricted net assets are gifts that are restricted by the donor for a speci?c purpose or income derived from permanently restricted net assets that is restricted by the donor for a speci?c purpose. The Society expends temporarily restricted net assets in accordance with the donor?s intent. Pennanentlv Restricted Net Assets Permanently restricted net assets represent gifts that are restricted for perpetuity by the donor and the Society?s interest in the Francis A. McCook, Anson T. McCook, Sumner Fuller, Mary Dana Wells 1988 Trusts, and the Arnold and Mary Carlson and Hempsted Heritage Funds. Cash and Equivalents The Society considers all highly liquid investments purchased with a maturity date of three months or less at the date of purchase to be cash equivalents. Marketable Securities - Investments are stated at market value as of the end of the year. Endowment Assets and Investment Policies The Society complies with Endowments of Not?for-Pro?t Organizations: Net Asset Classification of Funds Subject to an Enacted Version of the Uniform Pmdent Management of Institutional Funds Act, and Enhanced Disclosures for All Endowment Funds topic of the FASB Codi?cation. This topic "provides guidance on the net asset classi?cation of donor-restricted endowment funds for not-for-pro?t organizations that is subject to the Uniform Prudent Management of Institutional Funds Act of 2006 The Board of Directors of the Society have adopted spending policies for investment returns from the endowments to be utilized to support the annual operating activities of the Society. All spending policies are based on 5% of the previous twelve quarters average market value of the investments. Fair Value Measurements - The Society follows the Fair Value Measurements topic of the FASB Codi?cation, which de?nes fair value and establishes a ?arnework for measuring fair value in generally accepted accounting principles. It de?nes fair value as the exchange price that would be received for an asset, or paid to transfer a liability (exit price) in principal, or most advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date. It also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs that may be used to measure fair values: 8 NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 - Signi?cant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 - Signi?cant unobservable inputs that re?ect the Society?s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Valuation techniques based on unobservable inputs are highly subjective and require judgments regarding signi?cant matters, such as the amount and timing of future cash ?ows and the selection of discount rates that may appropriately reflect market and credit risks. Changes in these judgments often have a material impact on the fair value estimates. In addition, since these estimates are as of a speci?c point in time, they are susceptible to material near-term changes. There have been no changes in the valuation methodologies used for assets measured at fair value at March 31, 2016 and 2015. Short term investments and equity funds are valued by reference to quoted market prices and other relevant information generated by market transactions. Historic Propertie - The Society follows the Revenue Recognition topic of the FASB Codi?cation. In accordance with the topic, the Society does not capitalize the cost or appraisal value or the costs of restorations and renovations of any historic assets/properties or recognize them as revenues or gains. These assets/properties, which are signi?cant in value, have been acquired by the Society ?'om bequests and subsequently restored. The topic provides that such donations need not be recognized if they are added to collections that are held for public exhibition, education, or research in furtherance of public service rather than ?nancial gain; are protected, kept unencumbered, cared for, and preserved. Property and Equipment - The Society owns computer software, furniture, and equipment, which are being depreciated using the straight-line method over a useful life of three and ?ve years, respectively. Acquisitions of of?ce equipment in excess of $2,500, real property in excess of $50,000, and repairs and for non-historic properties in excess of $10,000 are capitalized. Use of Estimates - The preparation of ?nancial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Income Taxes - The Society is exempt under Section 501(c) 3 of the Internal Revenue Code and is not subject to federal and state taxes. Credit Risk - The Society maintains cash in bank accounts which, at times, may exceed federally insured limits, has not experienced losses in such accounts and believes it is not exposed to signi?cant credit risk. Commitments - Grants require the ?ll?llment of certain conditions as set forth in the instrument of the grant. Failure to ful?ll the conditions could result in the return of funds to grantors. Subsequent Events Measurement Date - The Society monitored and evaluated any subsequent events for footnote disclosures or adjustments required in its ?nancial statements for year ended March 31, 2016 through June 29, 2016, the date on which ?nancial statements were available to be issued. NOTE 2 - PROPERTIES Joshua Hempsted House New London, CT Buttolph-Williams House Wethers?eld, CT Nathan Hale Homestead Coventry, CT Phelps-Hatheway House Suf?eld, CT Amasa Day House Moodus, CT Butler-McCook Homestead Hartford, CT Nathaniel Hempsted House New London, CT Isham-Terry House Hartford, CT Forge Farm Stonington, CT The Hay (Bellarny-Ferriday Estate) Bethlehem, CT Palmer-Warner House East Haddam, CT Amos Bull House Hartford, CT The following is a listing of the properties that the Society maintains and conserves in Connecticut: Purchased by the Society, 1942 Purchased by the Society, 1942 Bequest of George Dudley Seymour, 1945 Gi? of Claudine Fuller Ackroyd, Elizabeth Fuller Carter and Laurene Fuller Vinette, 1962 Bequest of Katherine Chaffee Roberts, 1967 Bequest of Frances A. and Anson T. McCook, 97 1 Purchased by the Society, 1971 Bequest of Julia and Charlotte Isham, 1980 Bequest of Charles T. and Virginia Berry, 1982 Bequest of Caroline Ferriday, 1990 Gift of Howard Metzger, 1993 Gift of State of Connecticut, 2008 NOTE 3 MARKETABLE SECURITIES The spending policy is applied to the following endowment funds at March 31: 2016 2015 Unrestricted 2,263 ,841 2,434,417 Consolidated restricted 6,263,554 6,767,670 Judith Dana Thorne 1,629,751 1,752,694 Total 10,157,146 10,954,781 10 NOTE 3 NIARKETABLE SECURITIES (CONTINUED) Marketable securities were comprised of the following at March 3 1: Stocks Bonds Short-term investments Total 2016 2015 E: Market Value Market Value 6,035,531 6,176,872 6,302,588 6,627,495 3,598,005 3,510,099 3,517,927 3,468,867 470,175 470,175 898,449 858,419 10,103,711 10,157,146 A summary of the Society?s investment return is presented below: Interest and dividends Realized (losses) Unrealized (losses) Total return on investments Less: Total used per operating spending policy capital spending policy Bene?cial trust distributions Additional distributions Less: Amounts temporarin restricted Investment return, less amounts designated for current operations Interest and dividends Realized gains Unrealized gains/(losses) Total return on investments Less: Total used per .operating spending policy capital spending policy Bene?cial trust distributions Additional distributions Less: Amounts temporarily restricted Investment return, less amounts designated for current operations 8 10,718,964 8 10,954,781 March 3 1, 2016 Temporarily Permanently Unrestricted Restricted Restricted Io_tal 140,511 83,172 34,624 258,307 (174,079) (102,147) (14,610) (290,83 6) (118,247) (69,801) (150,057) (338,105) (151,815) (88,776) (130,043) (370,634) (100,165) (225,842) (116,253) (442,260) - (84,288) - (84,28 8) (136,725) - (136,725) (94,012) - (94,012) (482,717) (398,906) (246,296) (1,127,919) - 84,288 84,288 (482,717) (314,618) (246,296) (1,043,631) March 31, 2015 Temporarily Permanently Unrestricted Restricted Restricted 212,819 125,698 17,549 356,066 641,526 379,552 41,988 1,063,066 (564,248) (333,757) 32,059 (865,946) 290,097 171,493 91,596 553,186 (123,152) (189,919) (113,146) (426,217) - (81,060) - (81,060) (135,131) - - (135,131) (57,969) - - (5 7,969) (26,155) (99,486) (21,550) (147,191) 81,060 - 81,060 (26,155) (18,426) (21,550) (66,131) 11 NOTE 3 NIARKETABLE SECURITIES (CONTINUED) The reconciliation of the Society?s endowment by net asset category is as follows: Temporarily Permanently Unrestricted Restricted Restricted Total March 31, 2014 6,909,759 3,067,033 4,185,934 14,162,726 Interest and dividends 252,919 149,7 81 51,985 454,685 Realized gains 641,526 379,552 20,137 1,041,215 Unrealized gains/(losses) (564,248) (333,757) 32,059 (865,946) Contributions, grants and distributions - - 4,221 4,221 Endowment distributions (316,234) (189,943) (134,928) (641,105) Net additions (18) 23 39,41 1 39,416 Investment fees (40,333) (23,847) (34,435) (98,615) March 31, 2015 6,883,371 3,048,842 4,164,384 14,096,597 Interest and dividends 174,145 102,709 70,496 347,350 Realized (losses) (174,079) (102,147) (14,610) (290,836) Unrealized (losses) (1 18,257) (69,789) (150,057) (338,103) Contributions, grants and distributions - - - - Endowment distributions (330,902) (225,842) (278,956) (835,700) Net additions - - 162,703 162,703 Investment fees (33 ,635) (19,53 7) (3 5,872) (89,044) March 31, 2016 6,400,643 2,734,236 3,918,088 13,052,967 NOTE 4 FAIR VALUE NIEASUREMENTS Fair values of assets and liabilities measured on a recun'ing basis is as follows at March 31: 2016 Fair Value Level 1 Level 2 Level 3 Short-term investments 469,054 469,054 - - Equity funds 9,688,092 9,688,092 - Bene?cial interest in trusts 2 895 821 - - 2,895,821 3 13,052,967 10,157,146 - 2,895,821 2015 Fair Value Level 1 Level 2 Level 3 Short?term investments 54,128 54,128 - - Equity funds 10,900,653 10,900,653 - Bene?cial interest in trusts - 3,141,816 314,096,597 $10,954,781 - 3,141,816 NOTE 5 BENEFICIAL INTEREST IN TRUSTS The Society is named as the bene?ciary of several trusts. The Society received the following distributions from its bene?cial interest in trusts for the years ended March 31: 2016 2015 Market Value Distribution Market Value Distribution Anson Francis A McCook 1,991,923 90,814 2,181,816 98,043 McCook Trust Reserve 51,653 - 51,3 52 Mary Dana Wells 1998 Trust 486,947 25,220 504,394 23,530 Sumner Fuller Trust 297,176 13,045 326,221 13,355 The Hempsted Heritage Fund 62,846 7,444 72,348 - Arnold Mary Carlson $276 202 5,685 203 2,895,821 73 136,725 1 3,141,816 135,131 12 NOTE 5 - BENEFICIAL INTEREST IN TRUSTS (CONTINUED) The Society received distributions for the following purposes for the years ended March 31: .2016 2015 For operations 38 136,725 135,131 For restoration/renovations 136,725 135,131 NOTE 6 - FERRIDAY FUND - CHARITABLE TRUST The Society maintains and conserves The Hay (Bellamy-Ferriday Estate) received through the bequest of Caroline Ferriday. Caroline Ferriday also established the Ferriday Fund Charitable Trust, from which the Society receives, upon the discretion of the Trustees, an annual distribution for the care, maintenance and preservation of the property. The Society received the following distributions for the years ended March 31: 2016 2015 For operations 53 131,328 131,328 For restoration/renovations 19,800 131,328 151,128 NOTE 7 PROPERTY AND EQUIPMENT Property and equipment was as follows as of March 31: 2016 2015 Computers and software 33 65,719 55,527 Furniture and equipment 36,144 36,144 101,863 91,671 Less: accumulated depreciation (80,660) (83,527) 21,203 8 8,14? NOTE 8 DESIGNATED BY BOARD FOR ENDOWMENT The market value of the investments designated by the Board for endowment purposes, as a component of unrestricted net assets, was comprised of the following speci?c components as of March 31: 20 16 201 5 Unrestricted Endowment (General Operations) 2,2 63,841 2,434,417 Margaret Fitch Brewster (General Operations) 267,370 287,620 Marcella Rockwell Putnam (General Operations) 563,800 606,499 Frederick Palmer (General Operations) 3,575 3,846 Frederick Palmer Memorial Fund (Palmer Warner) 1,3 60,569 1,462,949 Buttolph-Williams Holcombe (Buttolph-Williams) 153 ,534 165,162 Main Street History Center (Butler-McCook) 158,203 170,184 Judith Dana Thorne (Restoration) 1,629,751 1,752,694 8 6,400,643 8 6,883,371 13 NOTE 9 - TEMPORARILY RESTRICTED AND PERMANENTLY RESTRICTED NET ASSETS The market value of the temporarily restricted and permanently restricted net assets was comprised of the following Speci?c components as of March 31: Designated for Endowment Katherine Chaffee Roberts Memorial (Amasa Day House) Palmer Accumulated Surplus Fund (Palmer-Warner House) Sumner Fuller (Hathaway House) Phelps Hathaway (Hathaway House) Nathan Hale (Hale Homestead) John Brush Hempsted (Hempsted Houses) Dorothy Clark Archibald (Nathaniel Hempsted House) Mary Dana Wells (Joshua Hempsted House) Ruth W. Newcomb (Joshua Hempsted House) Charles T. Berry - Residuary Trust (Forge Farm) Charles T. Berry - Marital Trust (Forge Farm) Virginia Berry (Forge Farm) Charlotte Isham (Isham-Terry House) Julia Isham (Isham-Terry House) Isham-Terry Accumulated Surplus Subtotal designated for endowment Bene?cial Interest in Trusts Anson T. and Francis A. McCook Trusts (Butler-MeCook Homestead) Trust Reserve (Butler-McCook Homestead) Mary Dana Wells 1988 Trust (Palmer-Warner House) Sumner Fuller Trust (Hatheway House) The Hempsted Heritage Fund (Hempsted Houses) Arnold and Mary Carlson (Hale Homestead) Subtotal bene?cial interest in trusts Designated for Operations 2016 2015 emporarily Permanently Temporarily Permanently Restricted Restricted Restricted Restricted 267,283 100,000 295,099 8 100,000 41,065 . 44,175 139,643 100,000 157,793 100,000 21,181 - 22,785 - 185,623 50,000 203,468 50,000 65,036 27,801 72,0 67 27,801 132,457 105,000 150,441 105,000 14,653 10,000 16,520 10,000 70,941 - 7 6,3 14 - 449,348 261,961 513,368 261,961 298,992 331,786 327,86? 86,838 369,418 86,838 276,189 151,945 308,613 151,945 386,759 180,375 429,712 180,375 5,5 51 - 5,972 - 2,682,582 1,073,920 2,997,531 1,073,920 - 1,991,923 - 2,181,816 51,653 - 51,352 486,947 - 504,394 297,176 - 326,221 62,846\ - 72,348 - 5,276 - 5,685 51,653 2,844,168 51,352 3,090,464 757,756 - 794,185 - 3,491,991 3,918,088 3,843,068 4,164,384 14 NOTE 10 CONTRIBUTIONS AND GRANTS Contributions and grants were received from the following benefactors during the year ended March 31: 2016 2015 Contributions and Grants for Education: Collections Care and Management: and Operations: Barnwood Foundation 3 5 ,000 5,000 Beverly David Eaton Trust - 2,496 Bodenwein - 2,000 Charles Robinson Foundation 4,000 3,000 Chester Kitchings Foundation 35,000 - City of New London 2,500 3,571 Connecticut Community Foundation 3 50 181 Connecticut Department of Economic Development - 14,659 Connecticut Humanities Council - 18,644 Donated Goods and Services 750 - Edward Ann Roberts Foundation 2,000 - EW Preston Trust 4,500 3,500 Fisher Foundation - 1,000 Frank Palmer Fund 15,000 - George A Grace Long Foundation 3,000 2,500 Greater Hartford Arts Council 15,825 37,793 Harkness amin Fund - 500 Hartford Foundation for Public Giving 11,400 6,485 Fund 2,000 - HFPG/Coburn Trust 5,000 - HFPG/Fisher Fund 1,000 I-IFPG/Holcombe Fund 1,322 - Ellsworth Grant Fund 405 - Garmany Fund - 6,000 HFPG/Walker Fund 10,000 6,000 Individuals 63,23 6 81,974 Institute of Museum and Library Services 72,539 42,664 Gladwin Cannon Trust 3,500 - a Program Sponsors 1,000 950 SBM Charitable Foundation 20,000 25,000 Society of Cincinnati in Connecticut 2,000 - Suf?eld Friends, Inc. 1,000 - UIL Corporation - 2,500 Woodbury Bethlehem Community Music Foundation 1,000 283,327 266,417 15 NOTE 11 CONTRIBUTIONS AND GRANTS Restoration/renovation contributions were received from the following benefactors during the year ended March 31: 2016 2015 1772 Foundation 58 - 7,250 Amiel Zak Foundation 5,000 5,000 Connecticut Natural Gas 3, 741 - Hartford Foundation for Public Giving - 89,631 Individual Contributions 1,21 1 14,1 09 SBM Charitable Trust - 20,000 State of Connecticut: Historic Preservation Of?ce 15,000 - The Hartford Insurance 50,000 50,000 TraveIers Foundation 25,000 99,952 185,990 There are contingent grants and pledges outstanding of approximately $169,500 and $191,000 for the years ended March 31, 2016 and 2015, respectively. In addition, the Society has received a contingent funding commitment of $750,000 from the State of Connecticut (DECD) for restoration of the barns at the Nathan Hale Homestead. The William and Alice Mortensen Foundation committed $176,500 to the Amos BullfButler?McCook Campus Renovation Project to be paid to the Society at a rate of $3 0,000 per year over the next six years. This grant was approved on June 20, 2013. As of March 31, 2016 and 2015 the cumulative amount received was $90,000 and $60,000, respectively. NOTE 12 RESTORATIONIRENOVATIONS For the year ended March 31, 2016 the Society spent $183,928 on prioritized property preservation needs at all sites. For the year ended March 31, 2015 the Society spent $412,725 on major restoration and renovation for the Amos Bull/Butler McCook Campus renovation project and prioritized property preservation needs at all sites. NOTE 13 PENSION PLAN The Society maintains a money purchase pension plan. All full-time employees who are at least 21 years old are eligible to participate on the month following the completion of three months service. All eligible participants become 100% vested immediately. All contributions are made by the Society at an amount equivalent to 7.5% of the eligible participants? annual compensation. Total contributions 'for the years ended March 31, 2016 and 2015 were $15,466 and $11,852, respectively. NOTE 14 OPERATING LEASES The Society rented of?ce Space under a month to month lease that was terminated in April 2014, when the Society moved their headquarters into the Amos Bull House. Of?ce rental expense was and $5,888 for the years ended March 31, 2016 and 2015, respectively. 16 NOTE 15 LINE OF CREDIT On January 17, 2014, the Society entered into an agreement for a secured and revolving line of credit with a bank that allowed for borrowings up to $1,000,000. Total borrowings are restricted by the Board of Trustees to a maximum of $600,000. The purpose of the line of credit was to assist with cash ?ow for renovation of the Amos Bull House. Interest accrues at a rate per annum equal to the greater of the LIBOR Rate plus 1.75%. The line of credit is secured by certain unrestricted endowment funds in the securities account and had no outstanding balance at March 31, 2016 and 2015. During the year ended March 31, 2015, $55,000 was drawn on the line of credit and repaid. The Society did not draw on the line of credit during the year ended March 31, 2016. 17