Creative Flagstaff Board of Director’s contracted with Loren Cunningham, CPA, PLLC to conduct an independent audit as required by its bylaws. The last audit was conducted for the 2018 Fiscal Year.

The Financial Statements and Independent Auditor’s Report did not report significant risks to the organization.

As a result of the audit the only material adjustment to our financial statements was for estimated PPP Loan Forgiveness. When initially reported to the auditor as an asset with related accrued income, Flagstaff Arts Council was under the impression, based on guidance available for the novel loan/grant program, that PPP Loan Forgiveness was accrued as eligible expenses were incurred. The auditor disagreed with this accounting practice. FAC has updated its revenue recognition procedures should similar forgivable loans be obtained in the future.

After factoring out in-kind rent, Flagstaff Arts Council broke even with a change in net assets of $127. This will be reported on our annual 990 filing.