04.07 Consider BLADC's 2002 & 2003 Audit

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BRAINERD LAKES AREA DEVELOPMENT CORPORATION NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2003 AND 2002 NOTE 7 DONATED SERVICES AND FACILITIES Below is a summary of donated services and facilities that were received during the years ended September 30,2003 and 2002. These amounts have been recorded as support and revenue with a related amount charged to the corresponding expense account. 2003 2002 Use of office space/rent $ 362 Accounting and audit services $ 550 Other 2,613 2,646 -0' 16 Total NOTE 8 LEASES , The Organization leases space from the Brainerd Lakes Area Chamber of Commerce. The lease is on a month-to-month basis. Monthly lease payments are$338, which is less than fair rental value. The difference between the cash rent paid and the fair rental value is recorded as support and revenue. Total lease expense for the years ended September 30,2003 and 2002 amounted to$4,269 and $4,228 respectively. NOTE 9 RETIREMENT PLAN The Organization sponsors a tax sheltered annuity program qualified under section 403(b)of the Internal Revenue Code covering all eligible employees. The plan is funded entirely through employee contributions. The Organization sponsors a Simplified Employee Pension Plan (SEP)covering substantially all of its employees. The Organization's contribution is 3%of eligible employees' compensation, and amounted to$2,814 and$2,597 for the years ended September 30, 2003 and 2002, respectively. NOTE 10 MAJOR CONTRIBUTORS The Organization receives approximately 65%of its support and revenue from three local government units.